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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13810 Folder ID Number: 13810-005 Folder Title: Charlotte [NC] Bush/Quayle 4/27/92 [OA 7572] [2] Stack: Row: Section: Shelf: Position: G 26 22 4 7 To Michele Date Time 10:50 WHILE YOU WERE OUT M Mr. Spruell of OSD RCSCIVE Affairs Phone 703 695 - 7459 Area Code Number Extension TELEPHONED PLEASE CALL CALLED TO SEE YOU WILL CALL AGAIN WANTS TO SEE YOU URGENT RETURNED YOUR CALL Message Bobby Operator AMPAD EFFICIENCY® 23-021 CARBONLESS Letters 5,405 Reservists from kids 2,501 National Guard from NC 7,906 TOTAL North Carolina Rachel Hoefflin York Ridge apts - #828 12904 york Ridge Dr. Charlott, Nc. 28273 Dear President Bush, cl have never written to you before, but it has been my dream to write to you! My name is Rachel Hoefflin and cl have a friend named wes Uamasek. We think that we have found out the mistery of the Bermuda triangle. We think that the current is the main soulition to the Bermuda triangle mistery. We think that because when people deep on the Bermuda Islands, during the might the current takes them away. so thats howthe sailboats diseapear. / It's the same way with airplanes. One way to lose carger is to have the ships run into iceburgs! Dr you think we solved the Bermuda treamgle mistery? Yes or Ro? swrite on another piece of paper) T.V. September 5,1991 Dear President Bush, l think you are right about kids watching too much T.V. d have a rule about watching T.V. This is my rule. You may watch T.V. for Saturday. 30 minutes erreryday except for your friend Sarah Law. P.S. What can ldo to help? ( ( Hara September 19, 1989 Dear President Bush, l think that children should have school at their homes. lecause it would be be easier? When you are sick easier that way. How it would you could still have school at that would be easier would be home in your bed. O ther things that Rids could sleep late and have a longer day at school, and on vacations will still have school at home. mome and Dads can help you if they 're at home and if not someone else can help you. your school day would be shorter because you don't P.S. Please answer me soon ! have art, P.E., etc., etc... from your fifth grader, write me at 5519 Knob View Drive Jonathan Ryan Becan this address Winston - Salem North Carolina 27104 over - 36 131 Gould Rd. Jacksonvill, nc 28540 Sept. 3, 1991 Dear President Bush, My name is Elena Saro, l have blue eyes and blonde hair I love school school and sometimes I wish school was on the weekends. l watched your speech yesterday Sept. 3, l thought it was great Will you send me a picture of you and Mre Burh? Do you have kids or petr What's it like to bea president? Dr it hard are eary? If l marrid a president l would help kids read and write and even If d don't marry a president l would still help them, dam going to be a doctor when d grow up, Well l will always watch your speecher. I'll write you soon. By: Elene Sincerely, Daro Dear President Bush I like when my teacher reads my class some books. because every bad of gets sleepy from Haruka APR-06-1992 15:25 FROM US ED DEPT PUBLIC AFFAIRS TO 94566218 P.02 NC has endorsed Am2000 UNITED STATES DEPARTMENT OF EDUCATION ITALINITY STATES SAMPLE PUBLIC AFFAIRS 8 April 6, 1992 MEMORANDUM To: Jeanie Bunton From: Jay Diskey 401-0570 Subject: AMERICA 2000 editorials Dozens of newspapers have endorsed AMERICA 2000 and here is a partial list of some those. We are continuing to build the list. I will send you an update when we have one. Baltimore Sun Chattanooga News Free Press Christian Science Monitor The Columbus Dispatch Daily Herald (Columbia, Tenn.) Dallas Morning News Kansas City Star Memphis Commerical Appeal Memphis Business Journal Nashville Banner The New York Times Omaha World-Herald Philadelphia Inquirer The Seattle Times Sioux city Journal Tullahoma News (Tullahoma, Tenn.) Note: I am also sending along a recent copy of the AMERICA 2000 newsletter and a copy of the field report. I think both will help you with your work. I'll talk to you soon, Jeanie. 400 MARYLAND AVE.. S.W. WASHINGTON, D.C. 20202-0131 (202) 401-1576 APR-06-1992 15:29 FROM US ED DEPT PUBLIC AFFAIRS TO 94566218 P.07 AMERICA 2000 FIELD REPORT March 30, 1992 I. STATE 2000 ANNOUNCED State Governor Kickoff Date 1. COLORADO Roy Romer (D) June 17, 1991 2. WYOMING Mike Sullivan (D) June 21, 1991 3. OREGON Barbara Roberts (D) August 22, 1991 4. AMERICAN SAMOA Peter Coleman (R) August 30, 1991 5. MAINE John McKeman (R) September 3. 1991 6. MARYLAND William Schaefer (D) September 5, 1991 7. NEBRASKA Ben Nelson (D) September 5, 1991 8. LOUISIANA Edwin Edwards (D) September 9, 1991 9. MINNESOTA Arne Carlson (R) September 12, 1991 10. DELAWARE Michael Castle (R) September 19, 1991 11. VERMONT Howard Dean (D) September 20, 1991 12. NORTH CAROLINA James Martin (R) September 27, 1991 13. INDIANA Evan Bayh (D) October 1, 1991 14. NEW MEXICO Bruce King (D) October 7, 1991 15. ALASKA Walter Hickel (I) October 17, 1991 16. GEORGIA Zell Miller (D) October 18, 1991 17. PENNSYLVANIA Robert Casey (D) October 18, 1991 18. MASSACHUSETTS William Weld (R) October 24, 1991 19. TENNESSEE Ned McWherter (D) October 25, 1991 20. IOWA Terry Branstad (R) October 27, 1991 21. MISSOURI John Ashcroft (R) October 29, 1991 22. KANSAS Joan Finney (D) October 29, 1991 23. ALABAMA Guy Hunt (R) October 31, 1991 24. MICHIGAN John Engler (R) November 13, 1991 25. SOUTH CAROLINA Carroll Campbell (R) November 20, 1991 26. WISCONSIN Tommy Thompson (R) November 21, 1991 27. OHIO George Voinovich (R) November 25, 1991 28. UTAH Norm Bangerter (R) December 10, 1991 29. MONTANA Stan Stephens (R) December 11, 1991 30. ARIZONA Fife Symington (R) December 12, 1991 31. NEW HAMPSHIRE Judd Gregg (R) December 17, 1991 32. DIST. of COLUMBIA Sharon Pratt Kelly (D) December 19, 1991 33. SOUTH DAKOTA George Mickelson (R) December 19, 1991 34. OKLAHOMA Dave Walters (D) December 19, 1991 35. HAWAII John Waihee (D) January 28, 1992 36. MISSISSIPPI Kirk Fordice (R) February 10, 1992 37. ILLINOIS Jim Edgar (R) February 11, 1992 38. WASHINGTON Booth Gardner (D) February 28, 1992 39. TEXAS Ann Richards (D) March 5, 1992 40. NEVADA Bob Miller (D) March 9, 1992 41. ARKANSAS Bill Clinton (D) March 18, 1992 II. UPCOMING STATE 2000 KICKOFFS State Governor Kickoff Date CALIFORNIA Pete Wilson (R) April 10, 1992 NEW JERSEY Jim Florio (D) April 13, 1992 NORTH DAKOTA George Sinner (D) TBD PUERTO RICO Rafael Hernandez-Colon (PDP) TBD VIRGINIA Doug Wilder (D) TBD APR-06-1992 15:29 FROM US ED DEPT PUBLIC AFFAIRS TO 94566218 P.08 AMERICA 2000 FIELD REPORT March 30, 1992 I. BIG CITY 2000 ANNOUNCED City Kickoff Date 1. MEMPHIS, TN July 23, 1991 2. TULSA, OK August 1, 1991 3. CHARLOTTE, NC August 19, 1991 4. OMAHA, NE September 5, 1991 5. EL PASO, TX October 8, 1991 6. RICHMOND, VA October 22, 1991 7. NASHVILLE, TN October 25, 1991 8. SAN ANTONIO, TX October 30, 1991 9. MOBILE, AL October 31, 1991 10. DETROIT, MI November 13, 1991 11. LOUISVILLE, KY December 3, 1991 12. WASHINGTON, DC December 19, 1991 13. FRESNO, CA February 18, 1992 14. DAYTON, OH February 20, 1992 15. HOUSTON, TX March 3, 1992 II. UPCOMING KICKOFFS City Kickoff Date NEW ORLEANS, LA March 31, 1992 SAN JOSE. CA April 10, 1992 APR-06-1992 15:24 FROM US ED DEPT PUBLIC AFFAIRS TO U.S. DEPARTMENT OF EDUCATION Office of Public Affairs Room 2089 400 Maryland Avenue, S.W. UNITED STATES of AMOUNT Washington, D.C. 20202 Telephone: (202) 401-1576 FAX Number: (202) 401-3130 Date: 4/6/92 Jeanie Bunton TO: FAX NUMBER: 456-6218 FROM: Jay A. Diskey (202) 401-0570 direct MESSAGE: Page 1 of 8 Services of Mead Data Central, Inc. PAGE 19 5TH STORY of Level 1 printed in FULL format. Copyright (c) 1987 The Washington Post September 27, 1987, Sunday, Final Edition SECTION: SUNDAY TRAVEL; PAGE E1 LENGTH: 1401 words HEADLINE: CHARLOTTE BYLINE: Jim Dumbell, Special to The Washington Post BODY: Here in Charlotte, N.C., you can't go down to Front Street and watch the ships come in, since you're 180 miles from the coast. (The mountains are about half that distance away.) Nor is there a Central Park right downtown where you can sit and people-watch, although the first two blocks of South Tryon Street make a good place for that. As you might gather from this, Charlotte's setting among the rolling hills of western North Carolina does not qualify as dramatic except perhaps in spring when the hills are abloom with azaleas. However, you can with a little effort find enough in this city of 350,000-plus to occupy a few hours, several times over. Charlotte is a modern, New South city 240 miles north of Atlanta that depends heavily on banking and distribution. It is growing rapidly as a regional headquarters for national corporations whose people fan out over the nation from Monday to Friday. And if you question that, drop by the airport on a Sunday afternoon or Monday morning and try to get a seat out of town. It is a place of agreeable contrasts where historians boast loudly of a significant document that's never been found. You will find opera and stock car racing, drama and rasslin'. Sometimes you wonder if the banks measure success by the height of their buildings rather than the amount of their deposits. But these steel-and-glass towers are set in counterpoint to broad sidewalks lined by leafy trees. (In fact, the city has its own arborist, and he and his crew have catalogued nearly every tree in town.) Charlotte was settled in 1748 by a handful of Scotch-Irish colonists who named it after England's Queen Charlotte, wife of King George III. That's the same George who a quarter of a century later was the least likely of candidates for any more such honors in the rebellious American colonies. On May 20, 1775, a group of local patriots purportedly signed the Mecklenburg (County) Declaration of Independence. To this day, you'll find fervent believers who contend the Meck Dec, as it is called, predates some similar paper signed in Philadelphia a year later. The believers are not dismayed by the fact that the Meck Dec has not shown up; they know it will be found one of these days. Cornwallis, the British commander, attempted to invade Charlotte during the Revolutionary War but was forced into retreat, calling the place a "hornet's nest's," a label it has worn with pride ever since. LEXIS'NEXIS'LEXIS'NEXIS Services of Mead Data Central, Inc. PAGE 20 (c) 1987 The Washington Post, September 27, 1987 In 1799, gold was discovered here in such quantities that a branch of the U.S. Mint was built downtown. It stills stands -- in a new incarnation -- and there are abandoned gold mines under the downtown streets to this day. Today, Charlotte fans out from The Square, which is the junction of Trade and Tryon streets, right at the center of downtown. The Square determines whether crossing streets become north, south, east or west. Touring by stagecoach may be the most unique way to get a feel for the city, although hot-air balloons vie for the position, but you can also choose bus or van, surrey or Amish carriage. To my mind, however, the best way to see Charlotte is on foot. Tryon Street from First to Seventh streets has become an interesting thoroughfare, with broad, tree-lined sidewalks set off by benches and bus shelters. Stroll north past the square and you will come to two of Charlotte's oldest churches -- St. Peter's Catholic and St. Peter's Episcopal -- as well as small shops juxtaposed against gleaming high rises, the public library and two stops that are absolute musts: Spirit Square and Discovery Place. Discovery Place has been called one of the country's Top 10 science museums. Such is the fascination of the place that you can turn the crankiest kids loose here and not hear a peep out of them for a whole afternoon. Spirit Square is a downtown center for the visual arts and features classes and workshops for both children and adults. It also hosts cultural performances. (In fact, Charlotte is heavily into attractions for children, and another --- one of the oldest and best - is the Nature Museum, south of the downtown area on Sterling Road. Kids are inevitably engrossed for hours by its collection of small mammals, reptiles, aquatic life and geologic exhibits.) A bit further north on Tryon, at Eighth or Ninth street, take a left for two blocks and you'll find yourself in Charlotte's restored historic area, Fourth Ward. In this primarily residential area - although there are occasional shops scattered here and there -- Victorian houses have been restored to a condition that in some cases is probably better than new. Even the newly built condos have been carefully planned to blend in tastefully. The area has become a popular and somewhat trendy neighborhood for hundreds of young professionals who work uptown. The arts have seen a resurgence in Charlotte in the last few years. The anchor of the resurgence is the Mint Museum. (Now you know what happened to the old federal Mint. It was moved to the Eastover section of town, southeast of downtown, and transformed into an excellent art museum, with collections of European and American art from the Renaissance to today. There are also pottery, pre-Columbian and African exhibits and period costumes.) In addition, a number of galleries have recently opened in the three or four blocks of Tryon Street just north of The Square. The Charlotte Symphony Orchestra, which recently returned from a two-week European tour, has a 41-week season of classical, educational and pops concerts. And Opera Carolina, the largest professional opera company between Washington and Miami, presents four productions a year. The Oratorio Singers of Charlotte comprises more than 150 members, and they will join the Charlotte Symphony for performances during the coming season. LEXIS'NEXIS'LEXIS'NEXIS Services of Mead Data Central, Inc. PAGE 21 (c) 1987 The Washington Post, September 27, 1987 Among dramatic groups that take to the boards in cooler weather are the Little Theatre of Charlotte, ACE-Repertory Theatre, a professional Equity group; the Golden Circle Theatre; and the Tarradiddle Players. Central Piedmont Community College also has an active theater group. For true escapism, there are two low-key spots that consistently draw visitors: Wing Haven, a three-acre garden in residential Myers Park, south of the city, was begun by Elizabeth and Edwin Clarkson in their back yard in 1927. It became widely known not only for its beauty as a garden, but also as a sanctuary for more than 130 species of birds. The Clarksons have given the garden to a foundation, which opened it to the public not long ago. Tall hedges divide different gardens, creating a sense of privacy, and gravel paths wind among them. The botanical gardens on the campus of the University of North Carolina's Charlotte branch -- eight miles northeast of downtown -- are also a haven from noise, hustle and bustle. These are some of the Southeast's best-known rhododendron gardens, and they include a greenhouse that has, among other things, an outstanding orchid collection. The gardens are open daily, the greenhouse on request. For those who find gardens too static and opera too dull, there is professional wrestling at the Charlotte Coliseum "about every other weekend," a spokeswoman says. And another draw for those who like their action occasionally violent is the Charlotte Motor Speedway, about 15 miles north of town on U.S. Rte. 29. Rabid stock-car fans have been known to take a cab out just to look at the track even when nothing was doing. Finally, if you can spare an extra day or two in Charlotte, there is a wide selection of accommodations beyond the major chains and hotel groups, some attractively offbeat. In the restored Fourth Ward section of downtown, there's the Fourth Ward Bed and Breakfast, an 1890s Victorian home that takes you back in time and is within walking distance of everything. Another newly restored old-timer is the Homeplace, which dates back to 1902. It's on the edge of southeast Charlotte and you'll need a cab or car, but it's in a beautiful part of town. Not far from it is the Inn on Providence, which has a pool and is furnished in antiques. But to really put on the dog, as they say, Hampton Manor, also nearby on Carmel Road, might be the place. It is pretty nifty digs, with tennis court, Jacuzzi and pool. And -- to start you off right -- its Rolls-Royce will pick you up at the airport. Jim Dumbell is a travel writer for The Charlotte Observer. TYPE: FEATURE SUBJECT: TRAVEL AND TOURISM; NORTH CAROLINA ORGANIZATION: CHARLOTTE LEXIS'NEXIS'LEXIS`NEXIS NEW YORK CITY "But now the famed Figaro coffeehouse [in was grand blue benediction, and beneath it the won- Greenwich Village], where more talented people derful air of New York tasted like fine dry cham- wasted their talents talking over caffeine than at any pagne." other place in New York, has made way for a Blimpie Claude McKay sandwich shop and Bleecker [Street] has become a Home to Harlem parody of its former Bohemianism." 1928 Helen Hayes and Anita Loos Other Places Twice Over Lightly 1972 Central Park: "Greenwich Village is the only spot in New York "To the park, accordingly and to the (Central) Park where you can go out for the Sunday newspaper in only, hitherto, the aesthetic appetite had had to your pajamas and bare feet and nobody pays you any address itself, and the place has therefore borne the attention." brunt of many a peremptory call, acting out year after Helen Hayes and Anita Loos Twice Over Lightly year the character of the cheerful, capable, bustling, 1972 even if overworked, hostess of the one inn, some- where, who has to take all the travel, who is often at her wits' end to know how to deal with it, but who "Way down South in Greenwich Village, none the less, has, for the honor of the home, never That's the field for culture's tillage. once failed of hospitality." There they have artistic ravings, Henry James Tea and other awful cravings. The American Scene But then the inspiration stops. 1907 You'll find them anywhere Round Washington Square." Improvised song Lower New York: Quoted by Helen Ramsey More Pious Friends and Drunken Companions "Every evening is Pamplona in lower New York. 1928 John Steinbeck Travels with Charley Harlem 1962 [After coming to New York City from the South]: "Then at the street intersection I had the shock of NORTH seeing a black policeman directing traffic-and there were white drivers who obeyed his signals as though CAROLINA it was the most natural thing in the world This really was Harlem." Ralph Ellison Invisible Man 1947 "Lenox Avenue, Honey. Midnight, And the gods are laughing at us." Langston Hughes Capital: Raleigh "Lenox Avenue: MIDNIGHT" Entered the union (with rank): Nov. 21, 1789 The Weary Blues State motto: Esse quam videri (To be rather tha 1926 seem) State flower: Dogwood "Light open coats prevailed and the smooth bare State bird: Cardinal throats of brown girls were a token as charming as State song: "The Old North State" the first pussywillows. Far and high over all, the sky State tree: Pine 362 NORTH CAROLINA diction, and beneath it the won- Nicknames: Old North State, Tar Heel State Strolling with my girlie where the dew is pearly ork tasted like fine dry cham- Origin of state name: Latinized honorific for King early in the morning" Charles I of England Walter Donaldson Claude McKay "Carolina in the Morning" From the barrier islands of the Outer Banks to the 1922 Home to Harlem heart of the Smoky Mountains, North Carolina cuts 1928 through a rich slice of eastern American geography, history and character. The state has three distinct "I, come from North Carolina, and it is true that if sections: the sandy coastal counties, the flat pied- you come from North Carolina and mention that fact mont and the mountains of the west. to anybody anywhere else, you will get this reply: Each section has its own personality. The coastal 'Oh, yes, I have an aunt who lives in Charleston.' folks are the state's most conservative and typically Charles Kuralt lingly and to the (Central) Park Southern-religious, agrarian, concerned with local Dateline America aesthetic appetite had had to e place has therefore borne the affairs. North Carolina's urban and urbane communi- 1979 aptory call, acting out year after ties lie in the piedmont. They are more progressive, the cheerful, capable, bustling, more cosmopolitan than the rest of the state. Raleigh, hostess of the one inn, some- Durham, Chapel Hill and Charlotte are places of "If North Carolina were a jigsaw puzzle, the person ke all the travel, who is often at educational excellence, intense. commercialism and putting it together might have difficulty convincing how to deal with it, but who, the kind of Sunbelt lifestyle that marks the "new" himself that all the pieces were part of a single whole." or the honor of the home, never South. The mountains are bluegrass country, lumber- ing country, moonshine country. The farther reaches John Phillips dity." Fodor's South Henry James of these mountains hide towns as close to the feel of 1979 The American Scene the original American settlements as anything still in 1907 existence. Traditional folk crafts abound and the accents of Scotland, Germany and other homelands "North Carolina was said to be 'the valley of humili- still tinge the speech. ation between two mountains [Virginia and South Assorted communities sprang up along Carolina's Carolina] of arrogance.' coast before the British formally took over in 1729. An old saying quoted by T.H. White implona in lower New York." The state was little touched by the Revolution and America At Last John Steinbeck fought, with some doubts, for the Confederacy dur- 1965 Travels with Charley ing the Civil War. 1962 Today North Carolina is famous for its furniture, paper, tobacco and for the modern brand of evangeli- "If you call Long Island behind the times, I don't cal Christianity-cum-politics espoused by its elected know what you'd call North Carolina. It has been officials and TV preachers. rightly termed Rip Van Winkle." Sarah Williams, a New Yorker married to a North Carolinian 'NA THE STATE Letter Nov. 7, 1853 "In the Comparative State Elections Project, one question read, 'All things considered, would you say "What good was state pride, anyhow? She [North that (your state) is the best state in which to live?' For Carolina] began life as a tail to Thomas Jefferson's the entire United States, 62.6 percent agreed. In kite, and was quite willing to do the work and let North Carolina, a positive response came from 82.3 Virginia have the glory." percent, higher than in any other state." Robert Watson Winston Jack Bass and Walter De Vries These United States The Transformation of Southern Politics 1924 1977 *** :th rank): Nov. 21, 1789 (12) "Nothing could be finer than to be in Carolina in THE LANDSCAPE am videri (To be rather than to the morning. No one could be sweeter than my Sweetie when I "Indeed, it would seem as if nature had selected this od meet her in the morning. region [tableland of the Blue Ridge] for the display of Where the morning glories twine around the door her fantastic power in uplifting the earth, and giving North State" Whispering pretty stories I long to hear once more. to it strange shapes and startling contrasts-in im- 363 NORTH CAROLINA parting curious physiognomies to the mountains and plenty and a warm sun confirm them in their disposi- business evoking melody from the waterfalls." tion to laziness for their whole lives." busines: F.G. DeFontaine William Byrd, writing in 1728 Picturesque America History of the Dividing Line and Other Tracts 1872 1866 *** *** "It is winter on the Outer Banks [of North Carolina]. "In North Carolina, everyone does what seems best At this time of year you can walk nearly 100 miles in his own eyes." "I will down the wild barrier beaches without meeting an- William Byrd, writing in 1728 earth of other living soul. Hunch your back against the wind, History of the Dividing Line and Other Tracts where th put your hands in your pockets, and ponder, as you 1866 redder at walk, the mystery of the first Europeans to know this *** a big far coast." "There is no man whose residence is in the state Charles Kuralt [North Carolina] who is recognized by the world as Dateline America an authority on anything. Since time began, no man 1979 or no woman who lived there has ever written a book *** that has taken place in the permanent literature of the " 'Repr country. Not a man has ever lived and worked there "And how fair is this same [North Carolina] forest in sive' giv who fills 25 pages in any history of the United is a state late autumn The damp earth is elastic under your States. Not a scientific discovery has been made and be cited feet; the high blades of grass do not stir; long threads worked out and kept its home in North Carolina that which si lie shining on the blanched turf, white with dew. You has ever become famous for the good it did the breathe tranquilly; but there is a strange tremor in the developr soul. You walk along the forest's edge, look after world. It is the laughing stock among the States.' tioned b) Walter Hines Page, newspaper owner and author lina CODE your dog, and meanwhile loved forms, loved faces Quoted by Burton J. Hendrick except 1 dead and living, come to your mind; long, long, slumbering impressions unexpectedly awaken; the The Training of an American new can 1928 trial wo fancy darts off and soars like a bird; and all moves so *** week-a clearly and stands out before your eyes. The heart at one time throbs and beats, plunging passionately [On a reporter speaking to a Chinese man]: "He Mississi forward; at another it is drowned beyond recall in employed English as clearly and as simply as it is many re possible for a native of North Carolina to speak." educatio memories. Your whole life, as it were, unrolls lightly and rapidly before you: a man at such times pos- H. Allen Smith North C sesses all his past, all his feelings and his powers-all "New York is Mostly People' and the his soul; and there is nothing around to hinder him- 1943 West Vi no sun, no wind, no sound " tucky, i Carolina Ivan Turgenev more m A Sportsman's Sketches but in 1852 margin, WAY OF LIFE sized m "I believe this [the settlement of Edenton] is the only PEOPLE metropolis in the Christian or Mahometan [sic] world, where there is neither church, chapel "They [the people of North Carolina] have not the mosque, synagogue, or any other place of public "North aristocratic complacency of their northern neighbor worship of any sect or religion whatsoever. What panacea nor the careless self-satisfaction of their southern little devotion there may happen to be is much more 19th ce neighbor. They are progressive, industrious and am- private than their vices." other S bitious." William Byrd, writing in 1728 employ Pearl S. Buck History of the Dividing Line and Other Tracts jobs, th America 1866 has not 1971 hoped 1 *** *** "To speak the truth, 'tis a thorough aversion to labor "I'd say nearly everybody in a 50-mile radius of here that makes people file off to North Carolina, where [North Carolina hill country] was in the whiskey 364 NORTH CAROLINA sun confirm them in their disposi business at one time or another. H'it was just a their whole lives." business "The late Governor Aycock summed up the educa- Junior Johnson, stock car driver tional status in these words: "Thank God for South William Byrd, writing in 1728 Dividing Line and Other Tracts Quoted by Tom Wolfe Carolina! She keeps North Carolina from the foot of 1866 That Kandy-Kolored, Tangerine-Flake, the column of illiteracy.' Streamline Baby Robert Watson Winston 1965 These United States everyone does what seems best *** 1924 "I will never forget the first time I saw the black * * * William Byrd, writing in 1728 earth of Illinois. I was a boy from North Carolina, Dividing Line and Other Tracts where the sky is bluer and richer, but where the dirt is "Current economic development policy relies heav- 1866 redder and a whole lot poorer, and where 100 acres is ily on industrialization as a means to increase income in North Carolina. Yet, while this policy has been in a big farm." whose residence is in the state Charles Kuralt effect we have seen North Carolina shift from a poor ho is recognized by the world as Dateline America agricultural state to a poor industrial state. We have thing. Since time began, no man 1979 experienced industrialization without development." ived there has ever written a book Report *** North Carolina Fund in the permanent literature of the 'Repression' is not the right word, but 'progres- 1 has ever lived and worked there sive' gives North Carolina too much credit. For this 1967 S in any history of the United is a state of paradoxes: behind every fact which can ific discovery has been made and be cited as proof of its progressiveness lurks another it its home in North Carolina that which suggests just the opposite. Take industrial famous for the good it did the development, one of the progressive factors men- ghing stock among the States tioned by [political scientist V.O.] Key. North Caro- HISTORY AND POLITICS ge, newspaper owner and author lina continues to lead all southern and border states Quoted by Burton J. Hendrick except Texas in value-added by manufacturers and "And, in North Carolina, the sturdy Scotch-Irish The Training of an American new capital expenditures. Yet North Carolina indus- Will prove at King's Mountain [Revolutionary War 1928 trial workers in 1971 earned a pathetic $104 a battle] the metal they are." *** week-a figure lower than in any other state but Stephen Vincent Benet aking to a Chinese man]: "He Mississippi North Carolina is proud, and in "Southern Ships and Settlers" as clearly and as simply as it is many respects justly so, of its system of public 1933 e of North Carolina to speak. education But after years of effort, most adult * H. Allen Smith North Carolinians have not finished the 11th grade, and the state ranks near the bottom, ahead only of [On marking the borders between Virginia and North "New York is Mostly People Carolina]: "Some borderers, too, had a great mind to 1943 West Virginia, Arkansas, South Carolina, and Ken- know where the line would come out, being for the tucky, in terms of school years completed. North Carolina likes to think of itself as more sophisticated, most part apprehensive lest their lands should be taken into Virginia. In that case they must have more mature than other southern and border states; submitted to some sort of order and government; but in 1973 it still voted down, and by a large whereas, in North Carolina, every one does what margin, liquor-by-the-glass (while supporting a fair- FE seems best in his own eyes." sized moonshine industry in the hills)." William Byrd, writing in 1728 Neal R. Peirce The Border South States History of the Dividing Line and Other Tracts settlement of Edenton] is the only 1866 Christian or Mahometan [sic] 1975 *** ere is neither church, chapel, *** e, or any other place of public "North Carolina has reached for, and gained, the "Provisions here [North Carolina] are extremely et or religion whatsoever. What panacea of the visionaries of a New South in the late cheap, and extremely good, so that people may live may happen to be is much more 19th century. It has industrialized-more than any plentifully at trifling expense. Nothing is dear but ices." other state. In the early 1970s, 40 percent of all law, physic, and strong drink, which are all bad in William Byrd, writing in 1728 employed North Carolinians held manufacturing their kind, and the last they get with so much Dividing Line and Other Tracts jobs, the highest level in the nation. Yet the panacea difficulty, that they are never guilty of the sin of 1866 has not produced the bounteous society that was suffering it to sour upon their hands." hoped for." William Byrd, writing in 1728 *** Neal R. Peirce History of the Dividing Line and Other Tracts ybody in a 50-mile radius of here The Border South States 1866 II country] was in the whiskey 1975 365 NORTH CAROLINA "Surely there is no place in the world where the scarce meet a man whose lips are not parched and inhabitants live with less labor than in North Caro- chapped or blistered with drinking this poison." lina." Alexander Wilson William Byrd, writing in 1728 Natural History of the United States The History of the Dividing Line and Other Tracts 1828 1866 "When Bancroft wrote that North Carolina was the "There in tall timber you [Revolutionary war sol- freest of the free he might have added 'the slowest of diers] will bear free the slow.' She got into the Union too late to vote for As were your fathers once when Tryon raged George Washington, she got out too late to vote for In Carolina hunting Regulators, Jefferson Davis. Until recently she was provincial Or Tarleton rode to hang the old-time Whigs." and proud of it." Donald Davidson Robert Watson Winston "Sanctuary" These United States 1938 1924 "The farther you get from North Carolina, the more CITIES progressive it looks." Ferrel Guillory, columnist Winston-Salem The Transformation of Southern Politics 1977 "In North Carolina [around 1900] grimy, tobacco- stinking Winston was reaching out to swallow up the *** quiet old center of Moravian piety, Salem; obscure "Let any man whose mind is not hardened by some Durham was lifting up its head and pouring its name wornout theory of politics or of ecclesiasticism go to around the world with the smoke of the cigarette; the country in almost any part of the state and make a Gastonia was raising its medieval towers." study of life there, especially of the life of the W.J. Cash women. He will see them thin and wrinkled in youth The Mind of the South from ill-prepared food, clad without warmth or 1941 grace, living in untidy houses, working from daylight *** till bedtime at the dull round of weary duties, the "Winston-Salem [is] a hilly city of 145,000, whose slaves of men of equal slovenliness, the mothers of lives have been transformed by a cultural revolution. joyless children-all uneducated if not illiterate." Over the past 30 years, the city has become an arts Walter Hines Page, newspaper owner and editor empire that includes museums, theater groups, a Speech, Greensboro, N.C. symphony orchestra, four colleges, a dance com- 1897 pany, an opera group and an artists' colony of about 500." *** U.S. News and World Report [A comment on North Carolina's being distracted 1980 from its real problems by aging Confederate aristo- crats]: "What North Carolina needs is a few first- class funerals." NORTH DAKOTA Walter Hines Page, newspaper owner and editor Raleigh State Chronicle Mid-1880s "North Carolina was always a turbulent and disor- derly colony, unable to enforce law and justice even in the long-settled districts." Theodore Roosevelt The Winning of the West 1912 Capital: Bismarck [On the drinking of apple brandy by settlers]: "You Became a territory: March 2, 1861 366 301 S. Brevard St. Charlotte NC 28202 Phone: (704) 376-9541 Fax: (704) 376-1243 FOUNDATIONFOR Wall St Journal THECAROLINAS A18 4/14/92 April 14, 1992 Editorial /What shld we do about Ms. Janice Crouse Sounds the Poor Room 122 O.E.O.B. Pusident like Culture, behavior, Washington, DC 20500 Dear Janice: I hope the enclosed material will be of help. The current issue of Business North Carolina has some profile data that you might find of interest. The reports from Fortune and Inc. have complementary information on Charlotte. I've also enclosed our annual report and several releases and reports on our projects that you may find of interest. I think if it fits President Bush's speech, it would be appropriate to recognize that Charlotte and the region have a very strong work and volunteer spirit. The energy that goes into the local United Way, Arts & Science Council Drive and all the organizations they help fund is way above average. Our local Habitat organization, for example, I believe has now built more homes than any in the country. I have enclosed a couple of newsletters as an example of how dynamic this organization is. We, of course, have our problems in North Carolina. Our growing urban area is fighting with problems of crime, drug abuse and the breakdown of the family. Some of the work we are doing through the Foundation is trying to provide some models for response, but solutions are going to be a long time coming. North Carolina, as a Sunbelt State, has enjoyed a period of growth and prosperity, but there are still major gaps between the affluent and the poor and a great difference in wealth and resources in urban and rural counties. Having lived in Kentucky for a while, you will understand what I mean in this respect. If you need more detail, or if I can help you round up a particular detail, let me know. Sincerely, Bill William L. Spencer WLS/sc CITIES/COVER STORIES THE BEST CITIES FOR BUSINESS With companies squeezing costs tighter than ever. locations that give you the most for your money are hot. Here's where to find America's outstanding values. by John Huey FLY DELTA MIDA 0196 Butler St William Houston St Besievard Downt Carter.Conter girt United gift Growing, restless, endlessly self-promoting, and all about making a buck: Atlanta is in an economic slowdown, which makes it all the more eager for your business. hen FORTUNE set out to find W 1991 are those offering the best value. By more on California's plight, see page 89). America's best cities for busi- that criterion the winner is clear: It's Atlan- An increasingly competitive global envi- ness this year, a trend was un- ta, followed by its Sunbelt rival Dallas and a ronment has made "cost containment mistakable: Cost has become couple of towns where snow actually falls, with an emphasis on quality an impera- far more important than it was in the Eight- Pittsburgh and Kansas City. tive," says Karen Gerard, senior vice pres- ies. What companies want in a city hasn't The loser for value: almost anyplace in ident of relocation consultants Moran changed much in the three years since this California. Reasons include expensive en- Stahl & Boyer, which surveyed more than survey began; the twist is that in this stag- vironmental regulations, water shortages, 600 executives for FORTUNE. With MS&B, nant economy business is getting much the $14 billion state budget shortfall, we determined value on a sort of balance tougher about demanding it all at the right pollution, the cost of living, and conges- sheet that weighs a city's assets, as mea- price. Thus, the best cities for business in tion. Corporate flight from the Golden sured in the survey, against the price of REPORTER ASSOCIATE Laurie Kretchmar State is approaching a stampede (for doing business there, as reflected in the 52 FORTUNE NOVEMBER 4, 1991 PHOTOGRAPH BY MICHAEL SCHWARZ-GAMMA/LIAISON THE TOP TEN FORTUNE CITIES 1. Atlanta muffled hometown boosterism-and 2. Dallas/Fort Worth socioeconomically," says Joseph Musolino, struck a balance between perception and vice chairman of NCNB Texas, formerly 3. Pittsburgh reality-by separating respondents' satis- First Republic. "But now that we're coming 4. Kansas City faction with their own cities from their out of it we're healthier because we're opinions of other cities. Atlanta stood out 5. Nashville more linked to the national economy." Va- in both measures. It was by far the most cant office space and stagnant job growth 6. Salt Lake City popular choice among outsiders, and its ex- may spell bad news for businesses depen- 7. Charlotte ecutives had a more favorable opinion of dent on the Atlanta or Dallas economies, their town than did those of any other place 8. Orlando but to the prospective outsider they spell in the top ten except Kansas City. As for better value today than in the heady days 9. Austin costs, Atlanta is the 15th-least-expensive gone by. 10. Phoenix city among America's 50 largest. That com- bination of quality and moderate cost was LREADY headquarters to 19 the best of the bunch, leading to Atlanta's No. 1 ranking. A FORTUNE 500 and Service 500 companies, Atlanta has quieted The attributes executives most demand the competing crowd with several in a city are simple and sensible. They are, recent monster home runs in the game of in order: economic development. The snaring of the A flexible, high-quality work force. 1996 Summer Olympics has powered a Proximity to markets. quantum boost in overseas image and A strong local pro-business attitude. should eventually stop Japanese visitors A good public education system. from asking for directions to the casinos Convenient air service to key cities. (they think they're in Atlantic City). Costs-housing, labor, facilities, and Several recent corporate headquarters taxes. relocations mean cash on the barrelhead An efficient highway system. today. Holiday Inn's North American oper- A whole host of intangibles amounting to ation is shifting to Atlanta from Memphis; "quality of life." Saab is transplanting its U.S. base to Atlan- While companies are looking harder for ta from Connecticut. Some of the city's savings these days, they are not willing to most visible existing headquarters compa- sacrifice these attributes to lower their nies-Coca-Cola, Turner Broadcasting, costs. So the top ten for value is not just a bargain basement honor roll. The five least expensive cities in the top 50-Birming- ham, San Antonio, Jacksonville, Memphis, ANN STATES-SABA and Norfolk-all missed the top ten for val- ue because executives didn't rate them highly enough on quality. The two top-ranked cities are once- booming, now-surviving service economy capitals that have always ranked high on FORTUNE'S list. Like Atlanta, Dallas/Fort Worth is a moderate cost area (16th least expensive) with high crime and poor schools. (Bear in mind that while the MS&B survey encompasses metropolitan Office space is in oversupply, housing a bargain. areas rather than core cities, problems of Relaxing after work in the Southern boomtown those core cities tend to taint the image of costs of labor, facilities, utilities, construc- an entire area.) One advantage these two Home Depot-have forged ahead or at tion, and taxes. In fine-tuning the top ten, share over many cities is familiarity; if you least held their own in a troubled national FORTUNE editors also drew on inter- haven't been to a convention in Dallas or economy. views with dozens of business leaders in Atlanta, you've no doubt passed through Dallas/Fort Worth-home to 31 FOR- many of the cities and with experts, in- their mega-airports. TUNE 500 or Service 500 companies-has cluding MS&B consultants and other Another favorable factor: Both places in recent years lured J.C. Penney and Ex- authorities. are a little more eager for your business xon headquarters to town, and the city What's on Atlanta's balance sheet? The these days, Atlanta having finally been hit hopes to become the center of Mexican- main liabilities are a high crime rate and by an economic slowdown and Dallas still U.S. trade should a North American free- notably poor public schools-yet the city trying to shake off the Texas crash of the trade pact become reality. Kent Foster, was a blowout winner in the survey of exec- Eighties. "Dallas has been through a gut- president of GTE's telephone operations, utives. MS&B's Gerard says the survey wrenching experience, financially and moved his outfit to the Dallas area in NOVEMBER 4, 1991 FORTUNE 53 CITIES ROBB Dallas are synthetic cities, but that is what suits them for the 21st century, in which the economy is certain to be driven by synthetic services supported by such synthetic indus- tries as telecommunications and informa- tion technology. Unlike most major, shall we say organic, cities, which grew up on natural harbors or at intersections of rivers or atop piles of coal and oil, neither Atlanta nor Dallas has the faintest natural raison d'être. Both sprang up as residue from the currents of commerce. They started as railroad towns: Atlanta was called Terminus because it was where the tracks ended, and local leaders in Dallas paid the railroad to come 40 miles out of its way. Ever since these synthetic be- ginnings, both cities have been trying to talk the rest of the world into joining them, primarily for the purpose of doing business. As early as 1895-only 30 years after Sher- man burned it to the ground-Atlanta at- tracted 1.9 million people to its own version of a World's Fair, the Cotton States and In- ternational Exposition, a far more impres- GTE's Kent Foster in Las Colinas, near the Dallas airport: "It's close to everything-it makes life easy." sive feat for its day than whatever the 1996 Olympics turns out to be. 1989. "A central geographic location was Texans would rather listen to the price of critical to us," he says, "and the local gov- oil drop than sit through a presentation O FEED THE RAILROADS in ernment leaders here treat you like cus- by a Dallas booster. Fort Worth says it is both cities, highways had to be tomers and make sure your needs are where the West begins, and Dallas is T built, and they were; when inter- met." where the East peters out. Maybe it's the states came along, Atlanta and newness of these cities. Their society can Dallas were natural places for them to in- USINESS MAY love Atlanta and B be nouveau, pretentious, and tacky, which tersect, and they did, bringing over-the- Dallas, but lots of other people somehow makes people of old means in road trucks with them. Both cities foresaw don't. For FORTUNE'S two top cit- genteel, paint-chipped places like Little the future of air travel and built airports ies, some critics reserve the kind Rock and the Mississippi Delta feel as that expanded until they redefined the of scorn that New York filmmaker Woody though they can look down on them. whole concept, becoming-along with Chi- Allen heaps on Los Angeles ("a city where All these high-minded cago-hubs to which you flew the only cultural advantage is that you can knocks on Atlanta and Dallas regardless of your final desti- make a right turn on a red light"). To them, are fair enough-if you don't In ultra- nation. Atlanta is home to such new cities-with all their glass and have to work for a living. But Delta, Dallas to American. concrete and sprawl-are formless blobs of if you do, few places are more smug Austin, Southern native son Jimmy synthetic culture, trying but failing to opportune over the long haul. What they lack in refinement, true Texans Carter deregulated interna- achieve the cultural cohesion of Boston or tional gateways, and now San Francisco. The Economist has called they overcompensate for with would rather jumbo jets from Lufthansa, Dallas the ugliest city in North America, energy, mostly directed to- Swissair, KLM, British Air- while the Wall Street Journal characterized ward turning a buck. "It's listen to the ways, JAL, and others swoop Atlanta as "an archipelago of shopping hard to define why a person or price of oil down over the piney woods malls and condominiums with an atrophied a city or a company has charis- and mesquite prairies onto downtown, snarled traffic, and a fading ma," says George Berry, a for- the runways outside Atlanta sense of community." mer Georgia commissioner of drop than sit and Dallas. To which the objects of this spirited de- industry, trade, and tourism. rision have responded with even more vig- "But with Atlanta I think it's through a When package delivery giant United Parcel Service orous boosterism. Atlanta and Dallas are because folks know this is presentation set out looking for a new probably the two best image marketers in where you can come and home-driven from Connect- America. If Atlanta could suck as hard as make money. That's what At- by a Dallas icut by housing prices-its it can blow, say folks down in the snooty lanta represents: success, new- booster. choice soon narrowed to three coastal Georgia city of Savannah, it would ness, energy, and the profit cities: Atlanta, Dallas, and be a port city. In ultra-smug Austin, true motive." Yes, Atlanta and Baltimore. With more than 54 FORTUNE NOVEMBER 4, 1991 CITIES 18,000 commercial air trips a year out of Charlotte owes much of headquarters and expansion designs on the its current credibility with European market, the company calculated American business to one WILL MCINTYRE that it could save two man-years of travel man: Hugh McColl, the time annually by picking Atlanta over take-no-prisoners chair- Dallas/Fort Worth. man of what will likely be- In a thorough selection process, 12 top come, through Patton- UPS executives took an anonymous tour esque takeovers, the by chartered plane of the three finalist cit- nation's fourth-largest ies. Then CEO Kent Nelson asked each to bank, NCNB (soon to be give him a written recommendation of his NationsBank). "McColl's first choice. All 12 chose Atlanta, says Nel- attitude is Charlotte's atti- son, who admits that his own first choice tude," says Ray Shaw, the going into the exercise was Dallas. In the former president of Dow end, he says, "I think it was the trees and Jones, who moved to the rolling hills. They reminded everybody Charlotte to run Ameri- of Connecticut." can City Business Jour- nals, a chain of regional RAINS AND TRUCKS and business newspapers. T planes helped make Atlanta, but as "He's tough. He's optimis- 20th-century industrial evolution tic. And he knows how to softened-and telecommunica- get a job done." Whether tions links took on the status of railroads in by jingoistic design or di- the 19th century-both cities knew instinc- vine irony, the diminutive, tively what to do. Atlanta and Dallas have brash Charlottean now become significant centers for the telecom- controls-and has re- NCNB's Hugh McColl has altered Charlotte's skyline and attitudes. munications industry, Atlanta in particular. named after his compa- When British Telecom announced it would ny-two of the banks that were most banking scene in Pittsburgh, where the open a North American unit to serve multi- associated with Atlanta and Dallas in their name Mellon may not be as catchy as Na- national corporations, it said Atlanta was earlier go-go years: C&S in Atlanta and tionsBank but still has quite a bit of what the logical choice because it has 29 fiber- Republic Bank in Dallas. the marketers call trademark equity. Home optic telephone paths, VS. only eight in New In both cities it has been a bitter pill to to two of the nation's top 25 banks and 15 York. No problem if they need more; At- swallow, this financial colonization by up- other FORTUNE 500 or Service 500 compa- lanta is always eager to dig up its streets for start Charlotte. As a lifelong capital colo- nies, Pittsburgh has more than its share of progress. It is AT&T's third-largest em- ny, Atlanta probably handles the invasion weighty corporate cachet: Westinghouse, ployment center, with over 19,000 jobs, and of North Carolina banks with a little more PPG, H.J. Heinz, Alcoa, Sony. Sony? Yes. is headquarters for Bell South, with more grace than the Texans do. NCNB, Wacho- After searching the U.S. for a place to build than 11,000. GTE, Sprint, Northern Tele- via, and First Union have bought three At- its picture-tube plant, Sony chose Pitts- com, and MCI account for another 6,000. lanta banks, leaving only one locally burgh, a city that ranked near the top in Many of the same companies controlled name-brand bank nearly every category of the MS&B sur- provide thousands of jobs in (SunTrust) and making it Dallas as well. For all vey-availability of high-quality labor, pro- tougher for Atlanta to call it- business attitude, education, affordable For all its success, Atlanta is its old self the South's financial capi- housing, overall satisfaction of its residents. annoyed to look over its tal with a straight face. But at The category where it ranked poorly was shoulder and see a smaller, money, the least Atlantans sold their effect of a city on a company's image. hungrier boomtown springing banks more out of greed than up in its own image and in its reborn Pitts- desperation. Dallas bankers ND FOR THOSE who remember own backyard: Charlotte, burgh is not long ago were more arro- N.C. If the MS&B survey A the smoky, carbon-black, shot- gant than Los Angeles junk and-beer steel town of just a little turned up any little city that focused on bond dealers, and they fell more than a decade ago-the one might, this is the one. The just as hard. Today, incredible Frank Lloyd Wright recommended aban- fourth-cheapest city in the top economic as it seems, the Dallas skyline doning-no image could be more out of ten, Charlotte drew favorable boasts not a single indigenous date. For starters, today's Pittsburgh is ac- scores from residents and out- development major bank. Dallasites try to tually beautiful. Its sturdy old skyline is siders and beat Atlanta for pro-business attitude. and hospi- be polite about it, but many nicely complemented by a restrained new still spit sand when they try one. Framed as it is by Mount Washington Once a sleepy stock-car- tality to to say NCNB-much less and the watery conflux where the Monon- racing town whose main con- NationsBank. gahela and the Allegheny form the Ohio, tribution to American culture outsiders. No such Johnny-come-late- the downtown is one of America's most was Jim and Tammy Bakker, ly jealousy has afflicted the European in appearance. When the city 58 FORTUNE NOVEMBER 4, 1991 CITIES tives feel about it (they love and here we do. We've got the Hall Family WADER NHO it) and the opinions of out- Foundation [started by the owners of Hall- siders (it doesn't come up mark], the H&R Block Foundation, and the much). "Kansas City Greater Kansas City Community Founda- doesn't brag. It's a quiet tion." Kauffman says he's "especially proud town, gentle, not pushy," of the voters of Kansas City [70% white] for says Betsey Solberg, execu- electing a black mayor" and helping bring tive vice president of the community together. Fleishman-Hillard, a public That mayor, Emanuel Cleaver, says, relations firm. If that "We're the only major city that's really out sounds a little like a Hall- front struggling to do something about pub- mark greeting card, well, lic education." The claim may be hyperbole, Hallmark is the town's big- but K.C. is certainly the only city in the coun- gest privately owned em- try investing some $600 million in capital im- ployer and one of the provements to its inner-city school system. companies that call the And even though the expenditures were or- shots. Another is Marion dered by a federal court in a desegregation Merrell Dow laboratories, suit brought by Cleaver and others before he the pharmaceutical giant became mayor, the initial results are eye- Pittsburgh plays up high tech, like Carnegie Mellon's robots partly created by self-made popping. The brand-new $32 million Cen- billionaire Ewing Kauff- tral High School, built in an inner-city black was in danger of going to its grave with the man, or "Mr. K.," who owns the Royals neighborhood, attracts a student body that steel industry in the early Eighties, the baseball team and heads a foundation is 25% white. The magnet school offers a town's venerable old-money crowd dug that supports drug prevention programs, computer for every student, robotics train- into its deep foundation pockets and made stay-in-school projects, self-esteem ing, the largest indoor swimming pool in sure that Pittsburgh emerged as an Ameri- courses, and more than 1,000 disadvan- Missouri, and a Jesuit-inspired curriculum can city with a first-rate quality of life. taged students in college. that includes Greek, Latin, and Olympic "I think the Nineties are going to be the "All kinds of businesses are welcome sports training. With the school just opened, era of the big little city," says Frank Ca- here," says Kauffman, "as long as they learn it's too early to judge results. houet, chairman and CEO of Mellon Bank the principles of social responsibility under Transplants to Kansas City love to talk and a transplanted California banker from which we operate. A corporation owes more about the work ethic. "I've worked on both Security Pacific and Crocker. "Pittsburgh is to the community than just jobs. To be spe- coasts and in Atlanta," says Tom Sprott, a an appealing place to live because it has the cific, 3% of their profits should go to charity. general manager for IBM, "and I've never amenities of a small city but the cultural Things come up that need attention. Social seen the values toward getting the job done benefits and business environment of a lot problems, floods. Business has to do its part, that I see here. There's really no compari- of large cities." Cahouet and others stress that, for all while Kansas City offers robotics study and much else in an impressive new inner-city school. its old money, the reborn Pittsburgh (pop. two million) is focused on economic de- velopment and the hospitality to outsiders that game requires. "We lost 60% of our industrial base and more than 100,000 heavy manufacturing jobs," recalls Wesley ROBB von Schack, chairman and CEO of Du- quesne Light Co., Pittsburgh's electric utility. He moved there from Vermont in 1984. "With those kinds of numbers it wasn't hard to get people focused on eco- nomic development." Drawing heavily on the technical resources of Carnegie Mel- lon University and the University of Pitts- burgh, the city has rebuilt employment around high-tech manufacturing, medical, and biotechnology jobs. The city is happy with modest growth. Von Schack says, "If you don't boom, you don't bust." Similarly conservative views prevail in Kansas City. Another more traditional burg, its survey results reveal an extraordi- nary gap between the way resident execu- 62 FORTUNE NOVEMBER 4. 1991 CITIES son." Kansas City has suffered labor prob- tive for a variety of technology Nashville is tals. New York, through a lems in the past, but Bob Dineen, president operations. combination of size, culture, of Marley Co., which has plants in Louis- Salt Lake City continues to perhaps the and concentration of power, ville, Memphis, Houston, and other cities, enjoy an excellent reputation remains America's one true says, "That labor reputation is 15 years out for its labor force along with sleeper on international city and a bar- of date. We have fewer problems here than low costs and a notably low crime rate. the list, a gain compared with Tokyo, anywhere else. You get a full day's work in Paris, and several others. Los Kansas City." Nashville is perhaps the newcomer to Angeles is the world's enter- Each of FORTUNE'S remaining top ten sleeper on the list, a new- tainment capital and retains brings to the table a different combination comer to the top ten and a city the top ten important ties to Mexico and of attributes that add up to value: likely to take off in years to the Pacific Rim. San Francis- Phoenix is strategically located near the come. Why? "Location, loca- and a city co, if you can afford it, offers dense Southern California market and of- tion, location," says MS&B's likely to an alluring blend of charm fers a high-quality work force at much lower Karen Gerard. "It is well posi- and metropolitan sophistica- costs than California. tioned to serve markets in the take off. tion. Like England, there will Orlando is relatively inexpensive, right in South, Midwest, and East, always be a Boston. For a true the center of one of the country's fastest- three interstate highways in- metropolis with a central loca- growing markets. tersect there, and it is developing into a ma- tion, Chicago is top dog. For Latin America, Austin is the least expensive of the top ten jor hub for American Airlines." fly Miami. But in the cost-conscious Nine- and has the most relaxed lifestyle. Though The new emphasis on value should not ties, the top ten for value will continue to somewhat isolated, its high-tech orientation suggest that American business is on the give all of these cities, and each other, a and the University of Texas make it attrac- verge of abandoning all its traditional capi- good run for their money. F THE TOP TEN CITIES Rankings on access to quality labor and on pro-business attitude come from ties. We and MS&B conducted extensive Interviews and visits. The average Moran Stahl & Boyer's survey of executives in America's 50 largest metro- U.S. manufacturing salary is $26,700; for clerical jobs it is $18,600. The politan areas. A rank of 1 is best, and 50 the worst; duplicate rankings reflect average lease rate in the surveyed cities is $21.25 per square foot. DALLAS/ ATLANTA FORT WORTH Population 1991 2,913,797 Population 1991 3,973,542 Office lease rate sq. ft. $23.50 Office lease rate sq. ft. $18 Tax max. corp. income 6% Tax mox. corp. income rates mox. personal income 6% rates max. personal income None Average manufacturing $27,000 Average salaries manufacturing $29,300 clerical $19,900 salaries clerical $19,500 Access to quality labor rank 17 Access to quality labor rank 4 Pro-business attitude rank 2 JAY BROUSSEAU-IMAGE BANK Pro-business attitude rank 13 CODY-WESTLIGHT The bad news: For a change, If you can't find a good deal Atlanta is actually experienc- on office space in Dallas/ ing ill effects from the national Fort Worth, you shouldn't be al- The most famous employer economy, the worst blow having Las Colinas lowed to go to the grocery store come with the shutdown of East- alone. Things are stabilizing after ern Airlines, a provider of 10,000 jobs. The good news: The the real estate and banking crash of the Eighties, but the city slowdown makes the city more of a value than ever for busi- has a ton of office space and housing left on its plate. Negoti- ness. Class A office space is abundant, and a bunch more is ate, negotiate, negotiate. As with Atlanta, crime and schools about to hit the market. The price of traditional luxury are rough in the city, okay in the suburbs. Also like Atlanta, houses is soft; UPS says housing is roughly half what it costs Dallas/Ft. Worth offers terrific air access and a natural hub in Connecticut. Air access is excellent but not cheap. Atlan- for regional markets. No personal income taxes steal bites ta is a natural choice for reaching regional markets, and all from the pie. Texans score high for "pro-bidness" atti- Real Estate Markets; fox rates, Commerce Clearing House; wages for monufacturing, County Business Patterns; wages for clerical, BLS. SOURCES: Pop., National Planning Dolo Corp.; lease rates in central business districts, Comparative Statistics of Industrial and Office those young workers who have flocked to the Southern tude and have lately added humility to the mix. As Dallas/ boomtown still need jobs to make BMW payments. Subur- Ft. Worth recovers, it is building a diversified service econo- ban schools are fine, but many execs in the city choose pri- my tied more to the nation's than to the state's energy cycle, vate education for their kids. Crime is high. Golf is great. and it is well situated for Mexican-American commerce Atlanta has more trees than any other major city. should North American trade barriers fall. *Texas imposes a franchise tax based on net worth and profits. 64 FORTUNE NOVEMBER 4, 1991 CITIES PITTSBURGH KANSAS CITY Population 1991 2,043,118 Population 1991 1,586,993 Office lease rate sq. ft. $20 Office lease rate sq. ft. $19 Tax max. corp. income 12.25% Tax max. corp. income 6% rates mox. personal income 5.98% rates mox. personal income 7% Average manufacturing $30,300 Average salaries manufacturing $28,100 clerical $18,000 salaries clerical $18,100 Access to quality labor rank 4 Access to quality labor rank 1 Pro-business attitude rank 8 Pro-business attitude rank 10 W.CODY-WESTLIGHT The Lazarus of American cities, Pittsburgh has every- ELIREICHMANN Of all the top ten cities, Kan- sas City is the most beloved thing going for it but an up-to- by its own resident executives, Actually beautiful date image. Low crime, high- World-class barbecue who rate it high in virtually every quality public education, and a category: tax structure, labor skilled work force add up to one of the very best values for costs, quality of labor, housing costs. Its central location ap- business-especially among older cities outside the Sunbelt. peals to many, but air connections could be better. Hall- Carnegie Mellon University helps attract businesses in the mark, one of the biggest games in town, and Marion Merrell biotech industry. A good work ethic and a central location Dow pharmaceuticals, another heavy hitter, are both are especially appealing to light manufacturers such as strongly committed to civic involvement. Kansas City has Sony, which chose Pittsburgh as the site for its North Ameri- more of a story to tell than most when it comes to the plight can picture tube factory. Housing is a bargain, air is clean, of its inner-city schools; it is spending $600 million to re- and commutes are short. Cultural institutions stay healthy build the whole system, bringing computers and exotic cur- with heavy involvement from the old-line corporate com- ricula to the ghetto. A black mayor, elected by a white munity. Something that wouldn't happen in Atlanta: When majority, has launched a new era of race relations. The city a new building replaced Forbes Field, the outfield wall and deserves its reputation for great food, especially steaks and home plate were preserved. barbecue. NASHVILLE SALT LAKE CITY Population 1991 1,003,474 Population 1991 1,084,847 Office lease rate sq. ft. $21.50 Office lease rate sq. ft. $18 Tax max. corp. income 6% Tax rates max. personal income max. corp. income 5.0% 6%' rates max. personal income 7.2% Average manufacturing $24,300 salaries Average manufacturing $24,300 clerical $18,300 salaries clerical $16,700 Access to quality labor rank 7 rank 2 Pro-business attitude rank 4 JIM RICHARDSON-WESTUGHT Access to quality labor Pro-business attitude rank 13 Location. Location. Loca- GARY LAYDA Everything is still clean, high tion. Nashville's got it, and it quality, safe, and inexpen- is beginning to pay off. On the sive in Salt Lake City, an unmis- Music at the airport important criterion of proximity In Temple Square takable location of great value to markets, Nashville ranked No. with a bonus for skiers-city bus- 1 in the top ten. It's convenient to the South, the Midwest, es go to several resorts. Taxes are moderate, literacy is ex- and much of the Eastern seaboard. American Airlines oper- traordinarily high, crime is low, and one of America's most ates a growing hub out of the city, giving it the potential to qualified work forces takes home wages below the national challenge Atlanta and Dallas for ease of transportation. The average. Nor is the place as isolated as everyone seems to quality of the work force ranks high, which was instrumental think; it is within 850 miles of Phoenix, Denver, Seattle, and in decisions by Nissan and GM's Saturn division to locate all major California cities, and a Delta hub gives the city auto plants in the vicinity. Those workers command high more flights than most cities its size. Highways are excellent pay. Nashville would like to build on its sizable health care and housing costs attractive. Downsides? Utah boasts only industry and nurture a budding telecommunications sector. three FORTUNE 500 headquarters, so you have to catch other City business promoters have only recently decided to play execs visiting on holiday. And some residents report that up, rather than distance themselves from, its predominant Salt Lake's Mormon influence can be a bit much for the sec- image worldwide: Music City USA. ular community. *Tax on unearned income. 66 FORTUNE NOVEMBER 4, 1991 CITIES CHARLOTTE, ORLANDO, NORTH CAROLINA FLORIDA Population 1991 1,184,099 Population 1991 1,110,442 Office lease rate sq. ft. $18.75 Office lease rate sq. ft. $21.25 Tax max. corp. income 7.00% Tax rates max. personal income 7.75% max. corp. income 5.5% rates max. personal income None Average manufacturing $21,900 salaries Average clerical $18,500 manufacturing $25,400 salaries clerical $17,300 Access to quality labor rank 14 Access to quality labor rank 36 Pro-business attitude rank 1 Pro-business attitude rank 10 What this upstart North Car- Relatively inexpensive and olina city lacks in polish it BUD LEE smack in the center of one of makes up for in one all-important The NCNB tower the country's fastest-growing mar- intangible: pro-business attitude, A tourism juggernaut kets, Orlando is Florida's boom- a category in which it ranks first, town answer to Atlanta and even ahead of Atlanta. Like Atlanta and Dallas, Charlotte Dallas. Like the Sunbelt's big two, Orlando has convenient suffers from high crime and public education woes. But air service, and the reason is obvious: Disney World is thanks largely to the efforts of NCNB's acquisitive CEO, Hugh McColl, the city is gaining a reputation as a financial America's No. 1 tourist destination. After pausing for the center that is eclipsing Atlanta's. Low manufacturing wages recession, this tourism juggernaut is expected to keep right on exploding. Wages are below the U.S. average, and, as in -a reflection of the area's furniture- and textile-making all of Florida, there's no personal income tax. Success has its past-are attractive to industry. The city stresses its quality of life, but a major threat to that quality looms: traffic. For some price: Orlando ranks worst in the top ten for traffic prob- lems. It also ranks low for cultural activities and presence of reason this stock-car-racing town hasn't built an adequate highway system. Like some other smaller cities, Charlotte has quality universities, but the Florida lifestyle gets big points. a terrific back-office reputation, which helps attract such The city is a short drive from the beach and is surrounded by natural lakes and citrus groves, now transforming into resi- newcomers as Hearst Magazines' accounting operations. dential communities. AUSTIN, TEXAS PHOENIX Population 1991 802,413 Population 1991 2,183,438 Office lease rate sq. ft. $16 Office lease rate sq. ft. $20 Tax max. corp. income rates Tax max. personal income None max. corp. income 9.3% rates max. personal income 7.0% Average manufacturing $29,500 salaries clerical $17,000 Average manufacturing $27,700 salaries clerical $17,800 Access to quality labor ronk 24 STEVE CHENN-WESTLIGHT Access to quality labor rank 7 Pro-business attitude rank 13 Pro-business attitude rank 21 The smallest and least ex- Phoenix offers a combination pensive of the top ten cities, REED RAHN of particularly high-quality Austin is a bit isolated and in a The Capitol labor at near-average costs; union- category of its own. Its casual Hill Gateway Center ization is notably low. It boasts Country lifestyle is legendary. While lacking some elements of traditional business loca- good schools and a large commu- nity college system to train workers. As in Atlanta and Dal- tions-such as proximity to markets-it has become some- las, office space is plentiful and inexpensive in the wake of thing of an alternative Silicon Valley. Many major names- Eighties overbuilding. The city is strategically located near IBM, Motorola, Apple, Advanced Micro Devices, Texas In- the dense and lucrative Southern California market, but it struments-are represented there, as are hundreds of entre- preneurial high-tech companies nurtured by the University is beginning to suffer from some of the same urban prob- of Texas's Austin Technology Incubator. MCC and Sema- lems: traffic, air pollution, urban sprawl. New freeway con- tech, two high-tech consortia, also call Austin home. In ad- struction has eased traffic, but water shortages could dition to Lake Travis, country music, and barbecue, Austin eventually stunt growth. When problems come up, Phoeni- (like the rest of Texas) demands no personal income tax. A cians like to talk about the weather: On average the sun shines 85% of daylight hours, and the average annual tem- major drawback: The city lacks good nonstop airline service to many other key cities. perature is 72° F., which explains the proliferation of golf and other resorts. *Texas imposes a franchise tax based on net worth and profits. 70 FORTUNE NOVEMBER 4, 1991 Charlotte CHAMBER Economic Overview of Charlotte, NC While most of the country suffered through a recessionary slowdown, Charlotte was able to flourish. Overall, 1991 economic growth was very positive in the Charlotte-Mecklenburg area, reconfirming the region's status as a desirable place for business expansion and relocation. Much of this success is due to the Charlotte Chamber, which continued to market the Charlotte region as a potential site for national and international facilities. Ranked by Fortune magazine as the seventh best place to do business, Charlotte received favorable marks from outsiders and residents alike. The magazine's November issue weighed the cities assets against the price of doing business, as reflected in the cost of labor, facilities, utilities, construction, and taxes. Charlotte was also ranked as having the number one pro-business attitude. In the first three quarters of 1991, 650 firms announced new or expanded operations within Charlotte. This is the largest number of announcements in the past five years. The firms will create a record number of 8,025 new jobs; investing over $235.4 million and occupying 5.6 million square feet. The Chamber's Economic Development Division participated in 51 committed projects this year, representing a total capital investment of $104 million, 2.5 million square feet, and 3,213 new jobs. Some of the well-recognized companies attracted to Charlotte include Alcoa/Kobe, AT&T, BASF, GE Plastics, Hearst Corp., Moody's Investors' Service, Murata Wiedemann Inc., Northwest Fabrics & Crafts, Pacific Hemostasis, Pass & Seymour Inc., Sprint Services, Baxter and Kodak. Of major significance to the region is the relocation of the Hearst Corporation Service Center from New York to Charlotte. This powerful, diversified communications company will employ 250 people and occupy some 100,000 square feet of space. The Hearst announcement indicates a confidence in Charlotte from what is generally considered a first-tier corporation and may draw renewed interest from other corporations in that top category. Charlotte international community continues to increase its size as witnessed by the constant increase of foreign firms in Charlotte. Presently, there are 260 international companies located in the Charlotte area, representing eighteen different countries. Current prospect activity is also high both for Charlotte and the region. Significant events continue to keep Charlotte in the spotlight such as the phenomenal success of the NBA Charlotte Hornets. With the 23,900 seat Charlotte Coliseum as one of the largest facilities in the NBA, the Hornets continue to lead the league in attendance, number of season ticket holders and volume of merchandising. Charlotte also hosted the NBA All-Star Weekend in February, attracting major media attention to the region. 129 West Trade Street Post Office Box 32785 Charlotte, NC 28232 Telephone (704) 377-6911 Fax 374-1903 Charlotte CHAMBER NFL expansions hopes continue on track with a highly successful NFL exhibition game in Columbia, South Carolina, which drew over 71,000 fans to watch the Washington Redskins play the New York Jets. Barring any major controversy, the NFL should pick two expansion sites in 1993, one of which is expected to be Charlotte. A major boost to the Charlotte economy came with the recent announcement of the proposed merger of NCNB bank, headquartered in Charlotte, with C & S Soveran Bank of Atlanta. The merger will create NationsBank, one of the five largest banks in the country. Prior to the announced merger, banking ties between NCNB and the NFL were strengthened when NCNB and the NFL announced agreement on a nearly $1 billion line of credit for the league. Meanwhile, the Carolinas Partnership, a 13-county regional marketing effort, completed its $8.1 million fundraising effort, and has begun targeting international business and selected national industries. The Partnership has also announced the establishment of a 20-station regional computer network linking the member economic development organizations with state economic development officials. The computer system will inventory available sites, building and assets for prospects and will coordinate the activities of the economic development specialists in each of the surrounding counties. Charlotte is truly a city on the rise. It is a community built on the energy of its people, and the cooperation of both the private and public sectors. Together, Charlotteans will continue to provide the best employment opportunities and an enriched quality of life for its residents, clearing the way for the region's growth, nationally and globally. 129 West Trade Street Post Office Box 32785 Charlotte, NC 28232 Telephone (704) 377-6911 Fax 374-1903 aullion invent imaginary friends OF to themselves into fantasy characte (and GEORGE BREISACHER/Staff says Dr. Michael Lewis, profess assion of pediatrics and psychiatry at Robert Wood Johnson Medi By DIANE SUCHETKA School in New Brunswick, N.J. is a WHAT ARE Staff Writer "Kids have wonderful imagin and Ga as o, Charlotte got a little bad press this tions, and this is natural," he say we h. .A agail week when Newsweek wrote about our Lewis says a pretend playmal skyrocketing murder rate. or fantasy character allows chu fire twent No big deal. dren some control over events and king THEY SAYING If you worried that the Queen City their environment. what to the is becoming another Cleveland, don't "Even the most normally light? Haw sweat it. e adjusted child has very little con ain. water listen Just last month, we celebrated our trol," Lewis says. "That's: the sactly. ttist's Pretty Of hipness when New Yorker magazine nature of being a child. Someone is bout IS- ABOUT told its readers that Charlotte kids don't always telling them what to eat. sit at home watching "Hee Haw" with when to eat and SO on." Pa. They go the Pterodactyl, the May 6 article said, "and dance 1? to better music than anyone who frequents the Roxy ever One of the first things to do, says does." Sandey Thompson of Statesville, is un ik- We read every magazine and newspaper article we could determine the role of imaginary to find that mentioned Charlotte over the past few years. And you friends in your child's life. know. not one referred to Charlotte as the Spam capital of "If the mother would find out America. Instead, we found compliment after compliment in what these friends contribute magazines we'd never even heard of, like Public Management the child's life and interests, they and Discount Store News. Heck, they make us look like Came- maybe she could deal with lot. whether this is a normal situation, In April, House Beautiful listed Wing Haven in Myers Park as says Thompson. one of five fine public gardens in America where the everyday As soon as parents decide there SS gardener can find inspiration. is nothing wrong. Lewis says they Despite a few pans, And Newsweek itself called us one of "America's Hot Cities" can join in the fun. a couple of years ago. Its Feb. 6, 1989, article praised Char- That's what G.W. Poncin of ake most national lotte's wholesome ambience. The "Huck Finn Factor" News- Coral Gables, Fla., did. week called it. "Some of my fondest memories magazines are fans Those stories - in big-circulation magazines - get lots of are those of my youngest daugh- attention. But much has been written about Charlotte in ter's talk of visits with imaginary smaller, specialty publications and newspapers, too. friends and trips on her flying American City & County bestowed its 1988 Award of Merit carpet," Poncin says. on Charlotte's Renaissance Park on Tyvola Road. "What had And most children give up hav re. once been a languishing region in Charlotte has been turned ing imaginary friends when they find something else more interest Please see Charlotte/next page ing, Lewis says. From The Charlotte Observer PS IE 6-7-91 America's true top dog: The mutt Dear readers: harlotte resident Sylvia Hauser was raped in 1989. In Sunday's Observer, she writes of the nightmarish By MIKE CAPUZZO ASPCA in New York. At least 60% of the 30,000 Knight-Ridder Newspapers attack and how it changed her life. dogs at the ASPCA last year "came in under the "My rapist had total control of my life he American Kennel Club recently name 'shepherd mix. Many black-and-tans for three hours and 25 minutes," Hauser announced the 10 most popular dogs: don't have a drop of shepherd blood. writes. "He has had partial control for cocker spaniel, Labrador retriever, poodle, The black dog. The Labrador retriever's poor almost 2½ years. That man stole ME golden retriever, rottweiler, German shep- distant cousin, the "lab mix," is number two. from me. He ripped my personality out herd, chow chow, dachshund, beagle and "Usually it's black, sometimes blond with tips for them, or questions or your own, please call the toll- says R.I. of Hollywood, Fla. Some of the kids are begin- The Largest Collection of free hot line anytime at (800) 827-1092. Or write to Child ning to call him a crybaby, and Grandfather Clocks Ever Seen In Life, 1437 Madison St., Hol- which probably he is How North and South Carolina. lywood, Fla. 33020 can we help him overcome DIFFERENT STYLES: What that? If any of the other par Spinets, Consoles, Studios, Grands, do you do when parents dis- ents have come up with any Digitals, and Player Pianos! agree about the way a child thing, we'd like to know. A SALE SO LARGE WE rosy outlook. One of these quietly Charlotte booming regions is metropolitan HAD TO RENT AN ARMORY! Charlotte " (Financial World, June 26, 1990.) MANY BRANDS REPRESENTED! "Other cities soar and crash: National magazines RENTAL RETURNS REPOS GR/ Charlotte keeps a steady course. NEW USED like what they see With hard times ahead, that's the sort of market you should set your sights on." (Builder, May 1989.) Including Baldwin, Wurlitzer, Kawai, Kimball, AT NE From preceding page "Only the naive tell this city Kohler & Campbell, Story & Clark, around," it said. named for King George III's wife And Public Management maga- that it cannot be a player in major Lowrey, Everett, Estey, Steinway. zine lauded Charlotte for its inno- league sports." (The Washington vative housing in October 1989. Post, February, 1991.) Here's what some others said "Last year alone 113 compa- about the Bible Belt town that nies started in or expanded or N.C. NATIONAL GUARD ARMO loves NASCAR, ketchup and relocated to Charlotte. One Beanee Weenee: effect of the recession: Charlotte 5825 TERMINAL RD. & WEST BLVD. "If you think that Charlotte is a companies aren't placing quite SO sleepy Southern town, where busi- many help-wanted ads in West CHARLOTTE, NC ness is done with a wink and a Virginia newspapers." (INC., June yawn, think again. In the streets 1991.) FRIDAY JUNE 7 11AM TO 9PM of Charlotte, you can feel it - a "While Mayor Sue Myrick sets contagious, can-do enthusiasm, broad policy, Charlotte is run by SATURDAY JUNE 8 9AM TO 9PM the confidence of entrepreneurial the city manager, (). Wendell SUNDAY JUNE 9 IPM TO 6PM pluck." (Management Review, White, one of the best public October 1989.) sector CEOs in the nation." (Busi- "Because Charlotte has more ness Month, June 1989.) - NO DEALERS PLEASE - jobs than people, even fast-food And if that Newsweek story that restaurants pay at least $5 an hour says "something is unraveling in ALL WILL BE SOLD THIS WEEKEND (Discount Store News, May 8, Charlotte" is still bothering you, *Availability Subject To Prior Sale 1989.) take some advice from the folks "No longer a sleepy mill town who've been getting bad publicity for years. RD. dependent upon the fortunes of the surrounding textile and furni- "Clevelanders are used to read- is a WASHINGTON LOOK FOR THE ing about negative things," says 111 ture industries, Charlotte BALDWIN TR dynamic financial, manufacturing Michael Polensek, a Cleveland city and transportation center." (The councilman for the past 14 years. Los Angeles Times, June, 1991.) "As a result of that, they've Baldu WEST BLVD. "While some sections of the really made up their mind to (HWY 160) U.S. are mired in what has been improve the town. labeled a 'rolling recession, others 'And, I say, if it keeps some of continue to enjoy prosperity, the nuts from moving here, maybe healthy growth and a remarkably I'm better off." American Demographics BUSINESS REPORTS JANUARY 1992 Sports says Larry Henson of the Memphis Chamber of Commerce. "This isn't a re- gion that we just made up." MID-SIZE CITIES BLITZ But these new mega-regions aren't enough to convince the NFL, says NFL FOR NEW FRANCHISE Stanford University economics professor Roger Noll. If population alone was the ELEVEN U.S. CITIES ARE NOW TRY- for a new football team, the "Carolinas." basis for a decision, New York could sup- ing to score a National Football League "A city limit, county, or MSA is not as port 12 NFL teams, Noll says. Anyway, expansion team. But if they try to sell relevant to the fundamental question of it's unlikely that fans would drive three themselves as another Green Bay, Wis- how many people would come," says hours to Charlotte or Memphis to watch consin, they will get sacked. A city the size Muhleman. "I couldn't use existing market football. "Tickets normally go to people of Green Bay could never snag a profes- boundaries to make that case." who live within a half hour of the stadium," sional football team today. Memphis was just as bold. It turned a he says. Two new NFL franchises will be an- metro area of 982,000 into a 3.8 million- It's more important that NFL fran- nounced in 1992. In their efforts to come person market. The new boundary is the chises capture a large TV market, because up with market profiles that will appeal to Mid-South Common Market, a recognized every team shares in the league's br the NFL, some of the candidates are play- trade area that also stretches out about cast revenues. That's why Memp ing fast and loose with the facts. 150 miles from downtown. pushed up its TV ranking from the 39th- A franchise candidate should start with "Memphis has a formal organization largest market in the nation to the 7th by a population of at least 1.5 million people, a that's been in existence for a long time," applying the boundaries of the Mid-South per capita income near the U.S. average, and a healthy economy, according to NFL spokesman Greg Aiello. Cities should have AIDS Decade fans who are willing to buy season tickets at several hundred dollars apiece, corpora- Ten years ago, AIDS didn't have a name. Today, about 187,000 Americans have been diagnosed with the disease. tions ready to lease $40,000-plus luxury (AIDS cases diagnosed during six-month intervals, 1980-90) "skyboxes," and a lucrative TV market that is guaranteed to keep the NFL 20,000 wealthy. A number of mid-sized cities are too ea- ger to pay. Two good examples are Char- 15,000 lotte, North Carolina (population 396,000), and Memphis, Tennessee (population 610,000). Promoters of Charlotte's NFL 10,000 bid have transformed the city into a region of 9.7 million people, despite the fact that 5,000 the Charlotte metropolitan area has only 1.2 million residents. Sports marketer Max Muhleman counted everyone within 0 150 miles of Charlotte as a potential fan Before Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- '81 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun '81 '81 '82 '82 '83 '83 '84 '84 '85 '85 '86 '86 '87 '87 '88 '88 '89 '89 '90 Source: Centers for Disease Control, Atlanta American Demographics / January 1992 BUSINESS REPORTS Common Market. Charlotte made its TV Diversity market jump from 31st to 4th by combin- ing contiguous markets in its 150-mile area. But Charlotte's claim to a huge TV MULTILINGUAL MARKETERS market includes Raleigh-Durham, which is 143 miles away and fighting for its own WORK FOR THE POLICE NFL expansion team. The NFL has no formal guidelines on AMERICAN ENTREPRENEURS CAN "The citizen can be speaking in a lan- choosing a location for an expansion team, can learn from the local police, particularly guage we don't even recognize, and we'll says league spokesman Greg Aiello. Ac- if they live in large diverse cities like Los call up the service. They will determine cording to Noll, the bottom line is money. Angeles. In the 1990s, police officers stalk what language the citizen is speaking and "The secret of success these days is selling the front lines of a diverse culture. transfer the call to the proper inter- skyboxes and large numbers of season "A Los Angeles resident dials 911. Her preter," LAPD's Ellison says. During the tickets to business. Are there a number of baby is choking, only she's speaking Farsi, first month of service, LAPD dispatchers wealthy individuals or corporations that SO we don't understand her," says Kathi called Language Line four times a day, on are willing to pay?" Ellison, an LAPD communications special- average, and requested help in 16 differ- Both Charlotte and Memphis can boast ist. "What do we do?". ent languages, including Punjabi, Hungar- more than 100 large companies located in For a police department that receives ian, Vietnamese, Armenian, and Russian. their 150-mile "markets." But in a recent up to 6 million 911 phone calls a year, the Language demands for police depart- Charlotte Observer study, only 11 percent language barrier is no small problem. In ments and hospitals are immediate, but April 1991, LAPD found a solution in Call they are no less urgent for businesses, Charlotte's claim Incorporated, an interpreting service that says Phil Speciale, Language Line's mar- to a huge TV was quickly bought by AT&T. Now called keting director. At least 20 million Ameri- market includes AT&T Language Line Services, the inter- cans now count some language other than pretation and translation business handles Raleigh-Durham, English as their mother tongue. "We 140 languages 24 hours a day. found an increasing need for business to 143 miles away. of the residents of North and South Caro- Where Is the Doctor? lina were willing to pay more than $30 for a ticket (the projected NFL ticket price). Between 1986 and 2000, the number of medical doctors for every 100,000 U.S. residents is expected to increase 15 percent, Despite their intense marketing, Char- from 216 to 248. But nine states should have fewer doctors lotte and Memphis "may be just pawns in per 100,000 residents in 2000. the game," says Ed Garvey, former execu- (percent change in number of professionally active medical doctors per 100,000 residents, 1986-2000) tive director of the National Football League Players Association. He says that the NFL is likely to expand to bigger met- ropolitan areas with bigger established TV markets, such as Baltimore or St. Louis. Garvey and Noll also suspect that expan- sion decisions usually come down to crite- ria less obvious than demographics-such as personality, politics, and the whims of team owners. 30 percent or more "There's another agenda," Garvey says. 15 to 29.9 percest "There are factors that they're not going 0 to 14.9 parcent to tell you about." Less -Laura Zelenko Source: U.S. Congress, Office of Technology Assessment, Health Care in Rural America, OTA-H-434, September 1990 10 American Demographics / January 1992 THEINC. 1991 METRO REPORT Where the Page every GROWTH Is business for in 200 WHAT A DIFFERENCE A PLACE MAKES. Jackson Jobs Gre from region to region." Today's fax-and- Summit Corners tan Boston's theme song these days could be Roseville 549 Snedekerville East computer communications networks may Smit "Brother, Can You Spare a Dime?" In a Springfield only intensify the disparities between the Austroville grim reprise of its mid-1970s blues, the city Columbia haves and the have-nots. Red Rose Graphics Mansfield Sylvania Cross BIR ADFO has lost tens of thousands of jobs, its unem- Burli Ltd., of Lancaster, Pa., for example, is open- ployment rate nosing toward double digits. If you ing its second branch office in fast-growing Residents of Charlotte, N.C., by contrast, Florida rather than in slower-growing areas are whistling while they work. Sure, there's closer to home, in part because work in know which a recession on-meaning that Charlotte's process can easily be sent back and forth jobless rate has crept up to a still-tight 4%. electronically. Between 1988 and 1990 the Charlotte area Certainly the current recession has been signs gained 26,000 new jobs. drastically tilted toward the Northeast. Disparities of such magnitude spill into "New England alone will account for one every corner of the business world, affecting out of every five job losses nationally," pre- to follow, the health of existing companies and the life dicts Beth Burnham Mace, an economist prospects of new ones. A stark symbol of the with DRI/McGraw-Hill Inc., the eco- difference: Blackstone Bank & Trust Co., a you'll nomic-forecasting and consulting firm. four-year-old Boston start-up designed as a "Yet the region has only 6% of the nation's high-service community bank, recently jobs." While the Boston-to-Washington find went belly-up, its deposits transferred to a megalopolis staggers, plenty of cities are larger competitor. Charlotte's not-quite- growing apace-and not just in Florida and two-year-old Bank of Mecklenburg, California. Seattle gained 23,000 jobs be- thriving founded on much the same concept, has tween 1988 and 1990, Dallas 66,000, with grown to $52 million in assets; cofounder only modest letups in more recent months. John Ketner is predicting a profitable 1991, Even the Midwest has held its own, with markets based mainly on loans to small and midsize regional capitals such as Indianapolis and companies. Quick: which city would you the Twin Cities pausing only slightly from rather be doing business in? all over the rapid recovery of the late 1980s. "Indi- The United States has always been a anapolis must have one of the strongest collection of local and regional markets economies in America," brags Scott L. America rather than one big one, and business condi- Toussaint, whose temporary-help business tions have always varied from place to place. is enjoying its best year ever. "If I weren't "People talk about regional recessions as if already in this city, I'd run, not walk, here." they're unusual," says Stanley Duobinis, se- Growth-minded entrepreneurs are al- nior vice-president with The WEFA Group, ways tempted to-run to where business is BY JOHN CASE an economics consulting firm in Bala best, whether it's to start a new company or Cynwyd, Pa. "But you can go back to 1946 expand an existing one. Before you do any and you won't find one that doesn't vary running of your own, however, remember 66 INC./JUNE 1991 MAPS: COPYRIGHT © 1991 BY H.M. GOUSHA, A DIVISION OF SIMON & SCHUSTER Dallas that the nation's metro areas are as your company's health. What you supply of labor and move in. Even in volatile as they are different. Not so need to know is what separates the Florida, the influx of residents no long ago the New York City area was winners from the losers. longer consists mainly of retirees. The poised for several years of growth, working-age population in Fort Myers while Dallas-though few knew it- PEOPLE and Fort Pierce, for example, has been was on the edge of collapse. Today A growing economy requires a grow- growing at more than four times the Dallas is sailing out of the economic ing population. That's a truism, but national rate. doldrums, and New York is sinking it's been given a twist by the demo- Birch's argument also explains why into them. But how long will either graphics of America in the 1990s. In "edge cities' such as Riverside, in the city continue on its current course? the past workers went where the jobs so-called Inland Empire just east of And how long will Charlotte or Indi- were, leaving Mississippi or Ap- Los Angeles, have been thriving. "Peo- anapolis or Seattle stay on the fast palachia for Chicago and Detroit. In ple came in because of the lower costs track? As mavens of any marketplace todav's labor-short economy. argues here," says André Richards of the know, the past is seldom an adequate MIT researcher David L. Birch, jobs Riverside County Economic Develop- guide to the future-particularly when have to follow workers. ment Agency. "As the population there's a recession on. "The demographics cut in sharply boomed businesses began noticing this Faced with such uncertainty. Inc. in the mid-1980s," Birch explains. newly forming market and began this year is forgoing its customary top- "That's when the baby boom was fi- moving in themselves." A similar phe- to-bottom ranking of metro areas. In- nally absorbed into the labor force and nomenon is visible in the otherwise stead, we've assembled a variety of data we began seeing unemployment rates sluggish Northeast. Though New York indicating not only which cities are down around 3% and 4%. Today the City itself isn't growing much, the growing, but why, and which can ex- work force can dictate the location of city's northern New Jersey suburbs are pect to do best in the future. One employment." Economic growth is bursting at the seams. And the healthi- result of this investigation: a list of top thus beginning to follow population est outlying cities are those such as performers no businessperson can af- movement rather than vice versa. Lancaster, Pa., where a low-cost, high- ford to ignore. (See "Editors' Choice," "The places that are doing well are the quality stvle of life attracts and holds a page 78.) These are cities-two in places people want to be. steady stream of new residents. Moral: every region of the country-that are That, says Birch, is why Sun Belt the place to start or expand a business outpacing their neighbors during the cities such as Las Vegas and Fort these days is where the people are. current slowdown and are best poised Myers, Fla., perennially top the popu- Marketers. take note: in general, to take advantage of the recovery when lation-growth charts. Forget jobs: peo- population growth translates into it comes. If awards were handed out pie move away from the high costs and growth in a metro area's total earnings, for solid, long-term growth, these are cold of the North to places that look which is a pretty good proxy for what the cities that would win the ribbons. cheaper and more pleasant, and feel a region's residents have to spend. But you don't need to live in a confident they'll find work once they Rank U.S. cities by earnings growth. best-of-show region to understand the get there. Businesses then spring up to and leading the list will be many of the importance of your city's health to serve them; others spot an abundant same Florida and California cities that 68 INC./JUNE 199 PHOTOGRAPH: MARK SEGAL/TSW top the population rankings. In city- That is a clear and present danger Gelatt d Alford 370 Orson 247 Priceville to-city comparisons, places with grow- for places like the Vallejo/Fairfield re- Gibson Burn- Rock Lake 670 gion just north of San Francisco, Kingsley wood ing populations outpace their neigh- 171 S. 374 371 Niagara Gibson Pleasant Rileyville bors economically. Metro Cleveland where construction employment grew Lenox W omo Mount Cold lost residents between 1988 and 1990, by 14% between 1988 and 1990. But MOST JOB GROWTH and its earnings grew only a little. The real estate overheating has plagued cit- 1988 TO 1990 Twin Cities in Minnesota gained peo- ies from New Hampshire to New FORT PIERCE, FLA. 10.7% ple-and the area's earnings grew five WEST PALM BEACH/ Mexico. In Minneapolis, says Norwest 10.4% BOCA RATON, FLA. times as much as Cleveland's. Corp. economist Larry Wipf, an oth- ANAHEIM/SANTA ANA, CALIF. 9.8% erwise healthy economy is haunted by FORT LAUDERDALE/ MUSCULAR ECONOMIES HOLLYWOOD, FLA. 9.1% the specter of four big office towers SANTA ROSA/PETALUMA, CALIF. 8.5% Though an expanding population now under construction. "We'll end OXNARD/ fuels local markets, population growth up with a glut of space we'll have to VENTURA, CALIF. 8.0% LAS VEGAS, NEV. 7.8% alone is no protection against col- work through," says Wipf with a sigh. OCALA, FLA. 7.6% lapse-ask the thousands who flocked "Construction employment will dip, MIDDLESEX/SOMERSET/ 7.6% and that will retard the recovery as we HUNTERDON, N.J. Oakland 171 Hancock SANTA CRUZ, CALIF. 7.4% Susquebanma 370 97 come out of the recession." Brushville Starrucca Starlight Stockport Iford Delaware It trades-in part-on a specialty. MOST RETAIL SALES Shehawken TONI hompson Lake oEquinue Big cities, like big companies, used to GROWTH 1988 TO 1990 think of themselves as conglomerates, MOST POPULATION FORT LAUDERDALE/ 18.2% GROWTH each metro business world a micro- HOLLYWOOD, FLA. 1988 TO 1990 cosm of the national economy. No ANAHEIM/SANTA ANA, CALIF. 17.9% RIVERSIDE/ more. The most prosperous areas are SANTA ROSA/PETALUMA, CALIF. 16.6% ORLANDO, FLA. 16.4% SAN BERNARDINO, CALIF. 10.9% those that specialize in at least one SANTA CRUZ, CALIF. LAS VEGAS, NEV. 16.1% 10.9% industry, which they then "export" to ATLANTIC CITY, N.J. NAPLES, FLA. 16.0% 9.6% WEST PALM BEACH/ FORT PIERCE, FLA. 8.7% the surrounding region, nation, or BOCA RATON, FLA. 15.6% FORT MYERS/CAPE CORAL, FLA. 8.5% world. Examples? Think of San Jose's SAN JOSE, CALIF. 15.0% technology, Los Angeles's movies, OXNARD/ MOST PERSONAL- VENTURA, CALIF. 14.0% EARNINGS GROWTH Orlando's Disney-based tourism. BURLINGTON, VT. 13.9% 1988 TO 1990 Charlotte may be a second-tier city, FORT PIERCE, FLA. 11.2% WEST PALM BEACH/ but it is a top-level banking center, the BOCA RATON, FLA. 11.1% fourth largest (by bank assets) in the ing and financial center as well as the ANAHEIM/SANTA ANA, CALIF. 11.1% nation. A key specialty for some cities world's entertainment capital. In- FORT LAUDERDALE/ HOLLYWOOD, FLA. 10.0% these days is internationally traded dianapolis boasts a thriving insurance SANTA ROSA/PETALUMA, CALIF. 9.9% goods and services. Most economists business as well as plenty of industrial figure that export growth will fuel the employers. And who could fault the recovery, which in turn will boost any- flourishing economy of Lancaster, Pa., to Houston in the early 1980s, just in one who's doing business overseas. which has done well across a lot of time to watch the region's oil-based Yet it's diversified enough to weather boards? Lancaster's metro area may be economy crumble. So how do you sep- a downturn. The one blot on Seattle's small, but it's a regional leader in agri- arate flash-in-the-pan booms from sol- robust growth of recent years is the culture, manufacturing, and-thanks idly based growth? Experts point to area's dependence on The Boeing Co.: to the Amish-tourism. "We're on the three characteristics of a truly muscular the city fell with Boeing two decades tail end of recessions generally because metro economy: ago and rose with it in the '80s. Today we're so diversified," says Sam Lom- It's more than just an overheated real the company still has a huge backlog of bardo, chief executive of a $5.5- estate sector. In some of the nation's orders, from both U.S. and foreign million insurance agency in the city. fastest-growing regions, growth itself is customers. But turbulence in the air- "And when the recovery comes to the the major industry; the hottest compa- line industry could affect Boeing's rest of the country, I think Lancaster nies are in real estate development, order book, and the reverberations will begin to spread its wings." construction, and finance. But "con- would shake the region. "Everyone struction is a weird sector," points out watches to see what happens with Boe- NEW BUSINESS WEFA's Duobinis. "To have growth, ing," says Phil LeDuc, vice-president The one growth factor no metro area you can't just be adding new build- of $1.6-million LeDuc Packaging can ignore is new and growing busi- ings; you have to add more new build- Enterprises Inc. ness. "One of the things we've noticed ings than before." When the pace of Other cities, by contrast, are less is the number of small and medium- expansion slows, construction workers dependent on their key industries, let sized manufacturing companies that are suddenly out of work, property alone on any one company. Los Ange- have expanded their operations and values plummet, and credit dries up. les has become a growing manufactur- created jobs here," says an appreciative INC./JUNE 1991 69 Fort Lauderdale Timothy Monger, president of the In- ments, which is why most of the "busi- which illustrate the dynamics of boom dianapolis Economic Development ness starts" leaders on the accompany- and bust in today's economy. Corp., pointing out that large manu- ing charts are also growing in pop- For Boston, the Massachusetts Mir- facturers have generally been down- ulation. But every now and then acle came to an abrupt end: after years sizing. Among the upstarts: 11-year- entrepreneurship sprouts in some un- of expansion the region suddenly old Pure Corp., a manufacturer of expected places, giving a boost to a found itself an economic basket case. industrial cleaners, which so far has metro area that would otherwise be What happened? "A whole bunch of barely noticed the recession. "We've unremarkable. Greater Philadelphia cycles came together at once," says experienced annual growth rates of probably houses more biotech start- Stanley Duobinis, "and they were all about 20%,' says CEO Ted Schen- ups than any other place east of San berg, "and we expect another 15% Francisco Bay. Akron has christened 52 Clifford spring Forest Creamton dSikc Roval: 247 gain in 1991. Things look pretty itself Polymer Valley and has spawned nwood City 170 670 ICE 247 Dyberry bright in Indianapolis. dozens of new. growing plastics- Vandling Betnany 235) PROMPTON Beach Fleetville 247 71 Writ large, entrepreneurial bullish- Waymart* Lake related enterprises. Carbon 652 ness of this sort translates into the Then there's the unlikely case of the MOST BUSINESS STARTS creation of whole new industries, Utica-Rome metro area in central 1988 TO 1990 which in turn lay the groundwork for New York State. Like the rest of its LAS VEGAS, NEV. 1.7% future metro specialties. Orlando has region, Utica has seen grim times in ORLANDO, FLA. 1.4% spawned a budding film- and video- CHARLOTTE. N.C. recent years; factories have been clos- 1.3% ATLANTA, GA. 1.2% production industry, swelling from ing, people leaving. The city's earnings HICKORY, N.C. 1.2% $2.5 million worth of activity in 1986 growth between 1988 and 1990 was CHARLESTON, S.C. 1.2% NASHVILLE, TENN. to more than $82 million last year. 1.2% less than half the national average. But EL PASO, TEX. 1.2% The Seattle area (Microsoft, Aldus) staying behind, explains one resident, RIVERSIDE/ and Salt Lake City area (WordPerfect, are "hard-core Uticans," who have SAN BERNARDINO. CALIF. 1.1% GREENVILLE/SPARTANBURG.S. 1.1% Novell) have developed booming soft- created a healthy number of high- ware industries. Burlington, Vt.- growth businesses. Among them, MOST HIGH-GROWTH thanks to an enabling state law-has Conmed Corp.. a producer of medical COMPANIES recently become home to some 215 1988 TO 1990 devices and disposable products, is up SAN JOSE, CALIF. "captive" insurance companies, self- 8.1% to an estimated S35 million in sales UTICA/ROME. N.Y. 7.1% insuring subsidiaries of large corpora- this year, from less than $20 million WASHINGTON. D.C. 6.9% tions or trade associations. The effect HICKORY, N.C. 6.7% two years ago. TERRE HAUTE/ on entrepreneurship: most of the cap- BLOOMINGTON, IND. 6.6% tives have hired newly formed man- A TALE OF TWO CITIES LANCASTER. PA. 6.5% WILlIAMSPORT/ agement companies to handie their All those factors play off one another, STATE COLLEGE. PA. 6.4% paperwork. of course, creating virtuous (or vicious) BURLINGTON. VT. 6.4% As a statistical matter. new-basiness cycles of growth (or decline). Take the RENO. NEV. 6.4% TALLAHASSEE. FLA. creation follows population move- 6.3% examples of Boston and Charlotte. 72 INC./JUNE 1991 OGRAPH J. MESSERSCHMIDTTSW Seattle negative." Housing and commercial lenburg County grew by nearly 12% factor in capital-hungry Cogentrix's real estate were overbuilt. When the between 1985 and 1990, with em- early growth was the fancy financial market turned, banks from tiny Black- ployment up 22%. resources it could find close to home. stone to giant Bank of New England The result of all that development: "We'd call investment bankers in New found themselves insolvent. Mean- a cascade of economic benefits, each York, and they wouldn't even return while, defense spending was shrinking one feeding the other. Earnings up 5% our calls," says project manager Robin and the minicomputer industry, head- and retail sales up 10% in the last two Spinks with a laugh. "Our banking quartered in eastern Massachusetts, years, both figures well above the na- relationship with NCNB was ver im- was in the tank. The result: rising un- tional average. More foreign compa- portant to us in our early days." employment, shrinking credit, and a nies locating in the region, thanks in And what of the future? One big state-government fiscal crisis, all feed- part to a fast-growing international strike against Boston, say economists, ing an increasingly sour outlook on the airport. And yes, the region's economy part of consumers and businesspeople. was the high rents and wage rates gen- is increasingly diversified. Despite erated during its boom years. And one Berween 1988 and early 1991, The Charlotte's specialization in banking big attraction of Charlotte has been its Conference Board's widely watched and distribution, manufacturing em- relatively low costs. In time-but consumer-confidence index for New ployment has increased nearly 10% probably not for several vears-those England fell more than 75%. since 1985. The city is also emerging factors will tend to equalize. Ulti- Charlotte's story in recent vears was as a major regional health-care center. mately, each city will have to trade on different in every particular. For dec- Maybe not surprisingly, Charlotte its long-term assets: Boston on its re- ades the city was a sleepy financial and has become a great place to start a commercial center for the cotton and search universities and highly educated company, ranking third nationally in textile industries, serving the Pied- work force, Charlotte on its sunny cli- the number of start-ups and 11th in mate and strategic location. What's mont region and not much more. As proportion of fast-growing businesses. likely to make the difference is how the Southeast grew, however, Char- Ten-year-old Broadway & Seymour, a lotte was well situated to cash in. Its many people choose to build busi- $37-million software developer that biggest banks, solidly based in cotton nesses in either city. counts banks among its major clients, At the moment, the odds favor and textiles-and already operating has been growing by more than 30% a statewide-began moving into other Charlotte. But metro areas have given year. John Ketner's new Bank of parts of the region. National manufac- us more than a few surprises over the Mecklenburg has crept into a local- years, as policymakers and business- turers and wholesalers began locating banking niche vacated by ever-expand- people have learned to invent or take warehouse and distribution facilities ing giants such as First Union Na- around the city, taking advantage of its advantage of new strengths. The top tional Bank and NCNB National strategic location on I-77 and I-85. performers on the following pages Bank. Power-plant operator Cogentrix Today Charlotte is number four na- weren't always the best cities for busi- Inc., twice the top-ranked company ness, and they may not be so forever. tionally in banking (as measured by on Inc.'s annual listing of the 500 assets) and number six in wholesaling. Still, right now, they're the places fastest-growing private businesses in to be. The population of surrounding Meck- America, is based in Charlotte. One (METRO REPORT continued on page 78) 74 INC./JUNE 1991 PHOTOGRAPH CLIFF HOLLENBECK/TSW USH JOHNS Buffalo Mifflinburg Fiedler Woodward Kapp Riverside CATANISMA Nuremberg Mines burg NorthamberJand 487 339 924 Zion Beaver Jim 903 Bel 304 Winfield. 54 McAdoo Meadows 93 Brodheads heim Numidia Grove Shepp Thorpe Ros 4 STATE THEINC. 1991 METRO REPORT Nesquehoning Kresgeville villa -ton 309 Durn Wind Gap donville Forest inn parata Port Ann Hummels Whart ansfore Beltzvilie 104 Paxinos Troxelville Selinsgrove Barnes town Lehighton Lake Kunkletown Augustaville Gap Carmel.,Centralia City Middleburg Kulpmont vilie Summit902 33 Painte Gilber Atlas Tamaqua Coal HiM ton 248 946 ated out of Atlanta have set up facili- ties in Orlando, at the center of what's Editors' now the fourth-most-populous state. New industries include film produc- tion, military simulation and training, and laser-optic technologies. CHOICE America's best cities for growing a business RUNNER-UP: charlotte, N.C. Last year alone 413 companies started NORTHEAST ment maker. Such variety, says finance in or expanded or relocated to Char- blue RIBBON: professor Gary Leinberger, has spared lotte, investing $266 million and cre- burlington, VT. the city the fate of its less diversified ating 6,800 new jobs. One effect of the Escaping New England's gloom neighbors. The prototypical Lancaster recession: Charlotte companies aren't entrepreneur: S. Dale High, whose placing quite so many help-wanted ads SCORECARD (1988 TO 1990) family-owned High Industries Inc. has in West Virginia newspapers. expanded from steel fabrication and Population growth: 3.1% New jobs: 5,300 concrete production into real estate, New companies: 35 hotels, food services, and compact-disc midwest High-growth companies: 43 manufacturing. Burlington's recession has been kinder SOUTHEAST and gentler than the rest of New Eng- land's. The difference? The city is BLUE RIBBON: ORLANDO, FLA. home to stable employers such as IBM; its breathtaking Lake Cham- Oranges and tourists? No longer plain location ensures a steady stream of well-educated newcomers; and its SCORECARD (1988 TO 1990) proximity to Montreal attracts Quebec Population growth: 7.6% companies seeking a U.S. foothold. A New jobs: 40,800 blue RIBBON: second factor: astute public policies. INDIANAPOLIS New companies: 276 Vermont's strict development laws, for High-growth companies: 223 Middle America's best-kept secret example, shielded the area's banks from a real estate boom and bust. Talk about your big, stable industries: SCORECARD (1988 TO 1990) "The isolation doesn't hurt us," says Orlando is home to Walt Disney World, Universal Studios Florida, and Population growth: 1.6% Holographics North founder John dozens of other theme parks and at- New jobs: 12,800 Perry. "We're only five minutes from the airport. Heck, everybody's only tractions; it boasts the most hotel New companies: 239 five minutes from the airport." rooms of any U.S. city. Even so, busi- High-growth companies: 181 ness travelers at Orlando International The old jokes told of "Naptown" and Airport now outnumber tourists 56 to RUNNER-UP: "India-no-place." Just don't laugh too 44. Growing manufacturers such as LANCASTER, PA. hard. For while Rustbelt neighbors Florida Polymers have sprung up (or Lancaster's biggest employers are an have scrambled to stave off hard times, moved in) to take advantage of the interior-furnishings manufacturer, a Indianapolis has sailed into the '90s city's expanding work force. Distribu- printer, a hospital, and a farm-equip- with a well-diversified economy. Tra- tors and wholesalers that once oper- ditional smokestack employers have 78 INC./JUNE 1991 PHOTOGRAPHS: (TOP) ROGER BALL/PICTURESQUE: (BOTTOM) CATHLYN MELLOAN/TSW Bannerville Beavertown Belltown SNYDER 147 Mahanoy City Middleport 443 BOSIA Beaver Sprs. Port 35 Rolls Sistedale Batb New Mabel Minersville Snyders Laurys Sta. Trevorton SMcClure Leck Killo Claif Philadelphia Worthampton Newb Independence Herndon 895 Gap 901 Carbon 309 parata OWagner Richfield Lynnport Neffs 512 Alto New 329 Am 235 Meiserville Mandata 125 Hegins (568) Valley View Pottsville Ringgold New Schnecks Catasapous 225 Orwigsburg Tripoli 145 33 Paintersville 9 McAlisterville. Seven Stars Dalmatias Newtown 100 ville 25 Kemoton Orefield 235 Cressona Deer Lake 137 863 Prountain Hillo been supplemented by buttoned- tion, with the 10 biggest companies be labeled a recession here," says down newcomers such as discount alone employing more than 50,000 Douglas H. Pedersen, an economist at broker Charles Schwab, which re- people. Among the up-and-comers is Security Pacific Bank Washington. cently sited a branch there. Certainly SRX Inc., which recently signed a con- Seattle doesn't rank high for new- the local marketplace has been good to tract with Motorola to market a newly company formation; more than some Technical Resource Group, an execu- developed emergency 911 hardware- cities, it's dependent on one big em- tive-search firm that's grown to $2 and-software system. The company's ployer, Boeing. But entrepreneurs who million in just five years. "It's because anticipated 1991 sales: about $25 do put down roots there find the soil of the industries we trade in-engi- million. fertile. Annie Searle, a Midwest native neering, health services, insurance," who moved to Seattle 14 years ago, is says president Roger Brummett. now CEO of $1.5-million Delphi "We've really been insulated from the Computers & Peripherals. "Frankly, effects of the recession." our company's on a growth trajectory RUNNER-UP: that's compounding, not slowing MINNEAPOLIS/ST. PAUL down," says Searle. Let company own- Factor out an overheated construction ers in other regions worry about cau- industry and you'll' still find the tious bankers and credit crunches. "I Twin Cities spawning small-com- don't have any problems at all getting pany growth. One happy company money." owner: McRae Anderson, head of a RUNNER-UP: RUNNER-UP: $1-million interior landscape design SALT LAKE CITY RIVERSIDE, CALIF. and maintenance business in St. Paul. Like Dallas, Salt Lake City went into a The Inland Empire-50 miles east of "Our sales were up last year," says slump a few years ago-and now, says downtown Los Angeles-is one of the Anderson. "They will be this year, William A. Maasberg, CEO of soft- fastest-growing metro areas in the too." ware developer Libra Corp., "we're country, meaning there are plenty of going to lead the way out. We've got a people to staff (and buy from) new SOUTHWEST lot of good, solid new industry here." companies. Compared with much of BLUE RIBBON: Much of it is close to Maasberg's pro- Southern California, it's cheap. "We DALLAS/FORT WORTH fessional heart: the area has 450 com- had a lot of employees who couldn't On the way back puter and software-related companies, afford more than an apartment," says many started in the last several years. Darrell Ratliff of Natives Sportswear SCORECARD (1988 TO 1990) Inc., a clothing manufacturer that re- WEST COAST Population growth: 4.2% cently moved there from Orange New jobs: 66,400 BLUE RIBBON: County. "When we relocated here, SEATTLE New companies: 883 they could afford to buy their first Everybody's favorite city home." High-growth companies: 686 Five years ago, says University of Texas SCORECARD (1988 TO 1990) Behind the Numbers professor Donald Hicks, the Dallas/ DATA ON POPULATION, EARNINGS, Fort Worth "metroplex" was in "free Population growth: 5.0% employment, and retail sales were pro- fall." But rents and land prices in the New jobs: 22,600 vided by Woods & Poole Economics Inc., New companies: 414 in Washington, D.C. Data on business area got so low that-surprise!- High-growth companies: 368 starts and high-growth companies were businesses began to move in. Last year compiled by Cognetics Inc., in Cam- Dallas ranked first nationally in the Seattle is Miss Popularity among cities. bridge, Mass. The business-starts rate is number of new or expanded corporate Places Rated Almanac ranks it number the number of companies with 10 or more facilities. And the hard years of the employees founded between January 1988 one. Company CEOs polled by real and July 1990, as a percentage of all busi- recent past have left companies of all estate specialists Cushman & Wake- nesses in the area. High-growth com- sizes in fighting trim. "We had a good field say it's the best place to locate a panies are those whose employment year," says Aggie Jordan-DeLaurenti, business. The city's only problem? growth, in both absolute and percentage who runs a $14.5-million technical- terms, exceeds a certain threshold. The Too many people. "It's becoming a percentage figure indicates the number of training company. "But I've learned to victim of its own appeal," reports The high-growth companies as a proportion of be real careful about expenses." One New York Times Magazine. Problems all young companies in the region. engine for future development: the like that we all should have. "Growth The data were assembled and edited area's fast-growing telecommunica- may be slowing, but I don't think by Special Projects Editor Sara Baer- tions industry, number two in the na- Sinnott. Research assistance was provided we're going to see anything that could by Alessandra Bianchi. PHOTOGRAPH: JOHN ELK/TSW; MAPS: COPYRIGHT © 1991 BY H.M. GOUSHA, A DIVISION OF SIMON & SCHUSTER INC./JUNE 1991 79 Information COST OF LIVING INDEX CITIES OF 300,000 TO 600,000 POPULATION 3RD QUARTER 1991 RANK CITY ALL ITEMS INDEX 1 Omaha, NE 89.9 2 Nashville, TN 91.7 3 Ft. Worth, TX 93.4 4 New Orleans, LA 93.5 5 Tulsa, OK 94.7 6 Wichita, KS 95.5 7 Oklahoma City, OK 96.0 8 El Paso, TX 96.4 9 Kansas City, MO 97.0 10 St. Louis, MO 97.7 11 Albuquerque, NM 99.1 12 Denver, CO 100.0 13 Charlotte, NC 100.1 14 Atlanta, GA 100.1 15 Tucson, AZ 104.2 16 Cincinnati, OH 105.8 17 Sacramento, CA 106.1 18 Toledo, OH 106.1 19 Portland, OR 108.0 20 Seattle, WA 111.9 21 Miami, FL 112.2 21 Cleveland, OH 114.3 23 Fresno, CA 118.4 24 Long Beach, CA 124.6 SOURCES: US Department of Commerce - Bureau of Census, 1991; American Chamber of Commerce Researchers Association - Cost of Living Index, 1991 NOTE: Eight cities within this population range did not report Cost of Living data to ACCRA. 129 West Trade Street, Post Office Box 32785, Charlotte, NC 28232, Phone (704) 377-6911 FAX (704) 374-1903 SELECTED SOUTHERN CITIES COST OF LIVING, 3RD QUARTER 1991 ALL ALL MIS. GOODS ITEMS ITEMS GROCERY HOUSING UTILITIES TRANS. HEALTHCARE & SERV. RANK CITY INDEX INDEX RANK INDEX RANK INDEX RANK INDEX RANK INDEX RANK INDEX RANK 1 Nashville, TN 91.7 93.2 1 90.9 2 91.0 2 93.9 3 75.5 1 94.6 2 2 New Orleans, LA 93.5 100.5 13 83.1 1 98.8 6 98.2 8 85.0 3 95.2 5 3 Greenville, SC 94.0 96.7 7 91.5 4 103.3 9 94.1 4 75.8 2 95.1 3 4 Raleigh, NC 96.4 95.9 4 98.7 7 104.8 10 91.9 1 96.9 7 93.9 1 5 Columbia, SC 97.1 96.4 6 99.1 8 86.0 1 98.0 6 95.6 6 100.0 7 6 Winston-Salem, NC 98.3 93.9 2 100.2 11 95.8 4 93.5 2 95.1 5 103.1 9 7 Greensboro, NC 98.9 95.5 3 95.5 6 96.7 5 98.1 7 87.5 4 107.0 14 8 Charlotte, NC 100.1 97.6 9 101.7 12 95.7 3 95.5 5 101.3 9 103.6 10 9 Atlanta, GA 100.1 98.1 1 99.2 10 114.1 13 98.9 9 108.8 13 95.1 4 10 Orlando, FL 100.6 96.0 5 104.3 13 101.7 8 105.7 12 104.6 11 96.8 6 11 Birmingham, AL 101.4 96.8 8 95.2 5 110.1 11 100.3 10 100.4 8 106.0 12 12 Houston, TX 102.6 105.8 15 91.4 3 100.8 7 115.1 15 103.5 10 103.9 11 13 Dallas, TX 104.7 102.0 14 100.0 9 117.1 14 108.8 14 112.4 14 101.4 8 14 Richmond, VA 105.5 100.4 12 104.6 14 112.4 12 104.8 11 107.0 12 106.4 13 15 Miami, FL 112.2 97.9 10 117.7 15 127.5 15 108.4 13 129.4 15 108.4 15 SOURCE: American Chamber of Commerce Researchers Association Inter-City Cost of Living Indicators 2nd Quarter 1991. Information 1991 Economic Review 129 West Trade Street, Post Office Box 32785, Charlotte, NC 28232, Phone (704)377-6911 FAX (704) 374-1903 New and Expanded Business (# of Firms) 900 860 800 700 649 621 600 Number of Firms 500 462 413 382 383 400 300 200 100 0 1985 1986 1987 1988 1989 1990 1991 Years New and Expanded Business (Employment) 12,000 10,895 10,376 9,412 10,000 7,418 8,000 6,789 Employment 6,031 6,000 5,177 4,000 2,000 0 1985 1986 1987 1988 1989 1990 1991 Years 1 New and Expanded Business (Investment) 1,200 1,017.7 1,000 800 Millions of Dollars 627.5 600 509 440.4 400 266.0 272.2 215 200 0 1985 1986 1987 1988 1989 1990 1991 Years New and Expanded Business (Square Feet) 13.3 14 11.9 12 9.5 10 Millions of Square Feet 8 6.6 6.5 5.7 6 5.3 4 2 0 1985 1986 1987 1988 1989 1990 1991 Years 2 Total Construction Permits 11,637 12,000 11,194 11,314 10,220 10,484 9,748 9,740 10,000 Construction Permits 8,000 6,000 4,000 2,000 0 1985 1986 1987 1988 1989 1990 1991 Years Construction Permits 1991 9,740 1990 10,484 1989 11,314 1988 11,637 1987 11,194 1986 10,220 1985 9,748 3 Residential Units 10,000 8,000 Number of Units 6,000 Multi-family 4,000 2,000 Single family 0 1985 1986 1987 1988 1989 1990 1991 Years Residential Units Single Multi- Family Family Total 1991* 3,413 874 4,282 1990 3,873 1,962 5,835 1989 4,622 5,139 9,761 1988 4,597 3,139 7,736 1987 4,597 3,652 8,249 1986 4,436 3,017 7,453 1985 4,141 5,305 9,446 4 Construction Value 1,200 1,000 800 Millions of Dollars 600 Non-residential 400 200 Residential 0 1985 1986 1987 1988 1989 1990 1991 Years Construction Value (Millions of Dollars) Non- Residential Residential Total 1991 $364.7 $385.3 $750.0 1990 $424.3 $528.0 $952.3 1989 510.5 422.1 932.6 1988 419.9 510.8 930.7 1987 402.1 391.9 794.0 1986 383.6 456.1 839.7 1985 380.6 398.8 779.4 5 Office Space Rentable Sq. Feet 20 Absorbed Sq. Feet Occupied 15 Millions of Square Feet 10 5 0 1985 1986 1987 1988 1989 1990 1991 Years Office Space (December Survey) Millions of Square Feet Rentable Occupied Absorbed 1991 20.8 16.3 0.4 1990 20.0 15.8 0.5 1989 19.7 15.4 1.6 1988 17.1 13.8 0.4 1987 16.7 13.4 0.7 1986 16.4 12.7 0.9 1985 14.9 11.8 1.8 Source: Charlotte Chamber 6 Population Growth 1,400,000 1,200,000 Charlotte-Gastonia- Rock Hill MSA 1,000,000 800,000 Population 600,000 Mecklenburg 400,000 Charlotte 200,000 0 1960 '65 '70 '75 '80 '85 '90 1992 Years Population Charlotte Mecklenburg Charlotte-Gastonia Rock Hill MSA 1992 421,990 538,373 1,206,672 1990 395,934 511,433 1,162,093 1985 349,949 457,851 1,066,742 1980 315,473 404,270 971,391 1975 278,263 379,463 898,706 1970 241,420 354,656 840,347 1965 221,498 313,384 771,365 1960 201,564 272,111 702,383 7 Mecklenburg Employment 400,000 Employment 300,000 200,000 100,000 0 1985 1986 1987 1988 1989 1990 1991 Years Place of Work Place of Residence Mecklenburg Employment Place of Place of Work Residence 1991 362,720 275,300 1990 360,560 274,270 1989 358,010 272,910 1988 345,450 267,160 1987 334,930 261,480 1986 312,600 244,790 1985 292,130 235,250 Note: "Place of Work" consists of employees based on the location of their jobs. "Place of Residence" consists of employees based on the location of their residences. Source: N.C. Employment Security Commission 8 Mecklenburg Employment 400,000 300,000 Employment 200,000 100,000 0 1985 1986 1987 1988 1989 1990 1991 Non-Manufacturing Manufacturing Mecklenburg Employment Total Manufacturing 1991 362,720 51,260 1990 360,560 51,760 1989 358,010 50,790 1988 345,450 50,300 1987 334,930 50,000 1986 312,600 49,400 1985 292,130 47,480 Source: N.C. Employment Security Commission 9 Air Passenger Enplanements Enplanements in Millions 0 1 2 3 4 5 6 7 8 9 8.4 1991 7.8 1990 7.7 1989 7.2 1988 Years 6.5 1987 6.0 1986 5.3 1985 4.3 1984 3.9 1983 2.8 1982 Source: Charlotte/Dougias International Airport 10 Foreign Firms 260 260 249 250 200 164 147 Number of Firms 150 100 60 50 18 0 1960 1970 1980 1985 1990 1991 Years Foreign Firms 1991 260 1990 249 1985 164 1980 147 1970 60 1960 18 11 Charlotte IN DETAIL Today'sExecutive Should Know More About Power ThanThis. The Power Tie You should know how to use electric power more effi- million a year. And a major retail chain decided to go ciently, which can lower your company's energy costs. But all-electric after we demonstrated how they could reduce if you don't, that's okay. Duke Power's Energy Specialists maintenance costs while cutting yearly energy expenses are ready to help. by $7,000 per store. Our Energy Specialists will analyze your company's Chances are, we can do the same for your company. So energy requirements free of charge. Then they'll provide give your local Duke Power office a call today, and ask to talk you with cost-effective solutions tailored specifically to with one of our Energy Specialists. Because as you've no your company's needs. doubt realized, there's For example, our Specialists recently designed a a lot more to power DUKE POWER program that's saving a local textile company over $2 than meets the eye. Smart People With Energy Since May 1991 Over 1,000,000 sq.ft. Under Construction CBD I-77 SHELTON AT&T COMPANY SC EQUIR HARMS 2 UNIVERSITY, CITY UNCC 77 Strategic Investment Quality 85/ : Location Value Environment 85 CENTRAL BILLY GRAHAM BUSINESS PKWY DISTRICT CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT CHARLOTTE COLISEUM Twin Lakes business park A 365 Acre Master Planned Business Park Competitively Priced Land with All Utilities in Place Conveniently Located to: I-77/I-85, Airport, Downtown Twin Lakes business park Developer: The Keith Corporation 6060 St. Albans Street, Suite 600, Charlotte, North Carolina 28287 (704) 552-1010 Fax (704) 552-9793 Designing For Charlotte's Future 388581 17/11/11 The New Charlotte Convention Center The FWA Group Architecture Planning Interior Design Graphic Design Landscape Design 220 North Trvon Street . Charlotte, North Carolina 28202 704-332-7004 Charlotte IN DETAIL Charlotte: The center of the nation's new heartland for business and industry. A dynamic city of American ideals. A city comfortable with its historic past, certain of its present direction and prepared for the 21st Century's golden opportunities and possibilities. Charlotte: A city insistent of American values; an outstanding quality of life, work ethic, responsive government and prudent taxation. A city appreciative of the family, arts and education. Charlotte: Chosen by more of the nation's top business leaders for future business location than any other because of its business, government and higher education harmony and environment. Charlotte: A major financial center, home for two of the nation's largest banks; a major transportation center with one of the world's ranking international airports; a major cultural center with its own opera company, an internationally known orchestra, a ranking science museum and new, state-of-the-art Performing Arts Center. And the NBA's Charlotte Hornets play the world's best basketball here. Charlotte: A city for the future. The world knows about it. You can, too. Charlotte: In Detail Charlotte P.O. Box 32785 129 West Trade Street Charlotte, N.C. 28232 704/377-6911 FAX 704/374-1903 10/91/8M POPULATION City of Mecklenburg Households, Mecklenburg County, 1/1/91 205,200 Year Charlotte County MSA Average Household Effective Buying Income $38,153 1960 201,564 272,111 702,383 1970 241,420 354,656 840,347 Percent of Households 1980 315,473 404,270 971,391 by Effective Buying Income Group Percent 1990 395,934 511,433 1,162,093 1992 421,990 538,373 1,206,672 $10,000 $19,999 19.6 U.S. (population) rank, City of Charlotte, 1992 33 $20,000 $34,999 26.6 U.S. (population) rank, MSA 42 $35,000 $49,999 18.5 $50,000 and over 21.8 Percent of Population by Age Group, Mecklenburg County 1/1/91 Percent Mecklenburg County Population Projections (growth rate is projected at 2.65% per year) 0 17 years 24.3 Year Population 18 24 years 11.3 25 34 years 20.4 1995 581,466 35 49 years 22.7 2000 661,091 50 years and over 21.3 Median Age of Population 32.1 Migration, Mecklenburg County Racial Composition, Mecklenburg County Percent 1975 1980 Annualized White 71.3 In migrants 84,277 16,855 Black 26.3 Out migrants 79,141 15,028 Other 2.4 Net in migrants 5,136 1,027 COST OF LIVING Cities of 300,000 to 600,000 Population 2nd Quarter 1991 RANK CITY ALL ITEMS INDEX RANK CITY ALL ITEMS INDEX 1 Omaha, NE 90.7 13 Charlotte, NC 100.4 2 Nashville, TN 92.3 14 Albuquerque, NM 100.6 3 Oklahoma City, OK 94.5 15 Denver, CO 101.9 4 Wichita, KS 94.6 16 Sacramento, CA 104.5 5 El Paso, TX 95.2 17 Minneapolis, MN 104.6 6 Kansas City, MO 97.6 18 Cincinnati, OH 106.8 7 New Orleans, LA 97.7 19 Portland, OR 110.4 8 Tulsa, OK 98.1 20 Miami, FL 111.6 9 Tucson, AZ 98.6 21 Buffalo, NY 112.7 10 St. Louis, MO 98.8 21 Seattle, WA 112.7 11 Austin, TX 99.2 23 Cleveland, OH 115.1 12 Atlanta, GA 99.7 24 Fresno, CA 116.1 Selected Southern Cities Cost of Living, 2nd Quarter 1991 ALL ALL MIS. GOODS ITEMS ITEMS GROCERY HOUSING UTILITIES TRANS. HEALTHCARE & SERV. RANK CITY INDEX INDEX RANK INDEX RANK INDEX RANK INDEX RANK INDEX RANK INDEX RANK 1 Greenville, SC 95.7 98.4 6 95.8 3 104.0 4 93.9 2 75.7 1 96.6 4 2 Raleigh, NC 96.2 96.3 3 103.2 8 105.4 5 90.0 1 90.6 3 91.5 1 3 New Orleans, LA 97.7 101.6 10 88.7 1 118.0 9 98.9 7 89.6 2 96.0 3 4 Atlanta, GA 99.7 94.0 1 102.0 5 115.4 7 98.6 6 110.1 10 93.4 2 5 Winston-Salem, NC 99.8 95.3 2 103.1 7 96.3 3 96.5 3 95.0 4 103.6 9 6 Charlotte, NC 100.4 97.4 5 103.0 6 96.2 2 96.7 4 107.0 9 101.9 6 7 Houston, TX 101.0 106.3 11 91.9 2 93.0 1 111.8 11 103.3 7 102.3 7 8 Birmingham, AL 102.8 96.4 4 101.8 4 114.7 6 98.5 5 98.5 5 105.5 10 9 Dallas, TX 105.1 99.4 7 105.5 9 118.9 10 110.2 10 101.1 6 101.6 5 10 Richmond, VA 109.9 101.2 9 110.4 10 116.3 8 101.8 8 104.7 8 116.7 11 11 Miami, FL 111.6 100.6 8 121.3 11 127.9 11 107.5 9 125.2 11 103.2 8 SOURCE: American Chamber of Commerce Researchers Association Inter-City Cost of Living Indicators 2nd Quarter 1991. QUALITY OF LIFE Communications Climatological Summary °F Major Daily Newspapers 1 Annual Average Temperature 61 degrees Television Stations 6 Lowest Monthly Average (January) 42 degrees Local Radio Stations 20 Highest Monthly Average (July) 79 degrees Telephone Services 2 Long Distance Services 17 Records °F Telegraph Services 6 Highest Temperature 105 degrees Weekly Newspapers 5 Lowest Temperature -5 degrees Cable Television Services 2 Precipitation Annual Average 43 inches Education 1991-92 Annual Snow Accumulation Average 6 inches Charlotte/Mecklenburg School System Average Number of Days with Sunshine 241 Number of Schools Relative Humidity Total Number of Schools 105 February 62% Elementary Schools 73 August 75% Middle Schools 5 Junior High Schools 16 High Schools 11 COMMUNITY FACILITIES Special Programs 9 Churches Protestant 400+ Enrollment Catholic 9 Total Number of Students 77,897 Jewish 3 Grades K-3 26,803 Other 10 Grades 4-6 16,466 Grades 7-9 16,830 Medical Grades 10-12 13,927 Acute Care Hospitals 5 Special Education 1,001 Specialty Care Hospitals 7 Long-Term Care Facilities 19 Class Size Total Hospital Beds 2,498 Grades K-9 26 Student average Nursing Schools 5 Grades 10-12 30 student average Doctors 1,300 Average daily attendance 98% Dentists 300 Recreational Hotels and Motels, Mecklenburg County, 1991 City & County Parks 149 Total Number of Hotels and Motels 130 Country Clubs 13 Total Number of Rooms 16,037 Swimming Pools 985 Hotels Under Construction or Planned 7 Tennis Courts 100 Rooms Under Construction or Planned 811 Golf Courses 24 Total Number of Rooms - Existing, Shopping Centers 139 Under Construction or Planned 16,848 Higher Learning in the Charlotte Area, 1991-92 Name of Institution Location Zip Code Students Faculty Type Barber-Scotia College Concord, NC 28025 497 41 C Belmont Abbey College Belmont, NC 28012 1,020 91 C Catawba College Salisbury, NC 28144 953 71 C Central Piedmont Community College Charlotte, NC 28235 25,553 1,385 CC Davidson College Davidson, NC 28036 1,556 157 C Gaston College Dallas, NC 28034 3,807 256 CC Johnson C. Smith University Charlotte, NC 28216 1,244 100 U King's College Charlotte, NC 28204 310 21 V Livingstone College Salisbury, NC 28144 613 65 C NC Center for Applied Textile Belmont, NC 28102 2,100 10 V Pfeiffer College Misenheimer, NC 28109 958 70 C Queens College Charlotte, NC 28274 1,648 114 C Rowan-Cabarrus CC Salisbury, NC 28144 2,900 150 CC UNC at Charlotte Charlotte, NC 28223 15,058 817 U Wingate College Wingate, NC 28174 1,690 92 C Winthrop College Rock Hill, SC 29733 5,300 438 C York Technical College Rock Hill, SC 29730 2,979 200 T Code: U - University C - Four Year College T - Technical Institute CC - Community College V - Vocational School GOVERNMENT & TAXES Form of City Government Council-Mayor and Manager SOURCES OF CITY REVENUE Form of County Government Commissioners and Manager Police Districts, City of Charlotte 9 1. Property and Other Taxes $186,938,077 28.9% Police Personnel (city) 820 2. Water and Sewer 66,141,790 10.2 Police Personnel (county) 235 3. Airport 44,486,074 6.9 Fire Stations, City of Charlotte 29 4. Intergovernmental 60,123,989 9.3 Fire Personnel (full-time, city) 812 5. Bond Funds 244,651,538 37.8 Volunteer Fire Stations, Mecklenburg County 21 6. Other 44,186,121 6.8 Fire Personnel (volunteer, county) 690 Total Revenue $646,527,589 100.0% Public Libraries 1 main, 19 branches Total Volumes Held 1,233,936 1991-92 COUNTY BUDGET IN BRIEF 1. Social Services $230,194,880 40.2% 1991-92 CITY BUDGET IN BRIEF 2. Public Schools 110,698,277 19.3 3. Health & Hospitals 36,379,996 6.3 4. Mental Health 30,054,736 5.2 1. Police and Fire $ 80,920,431 8.3% 5. Public Safety / Judicial 35,879,385 6.3 2. Debt Retirement 121,023,438 12.3 6. Community Development 36,170,230 6.3 3. Public Works 64,229,133 6.6 7. Public Business 21,408,117 3.7 4. Leisure Services 16,147,653 1.6 8. Debt Retirement 42,362,499 7.4 5. Public Transportation 20,467,733 2.1 9. Other 29,791,997 5.2 6. Airport 44,486,074 4.5 TOTAL BUDGET $572,940,117 100.0% 7. Water and Sewer 66,141,790 6.7 8. Community Development 5,915,142 0.6 9. General Government 47,554,617 4.9 10. Employment and Training 2,616,568 0.3 11. Municipal Services Districts 965,693 0.1 12. Insurance and Risk Management 915,692 0.1 County Budget in Brief - 1991-92 13. Less Interfund Transfers ($164,566,738) 9 Sub-Total Operating Budget $306,817,226 48.0% 14. Capital Projects $339,710,363 52.0% 8 TOTAL BUDGET $646,527,589 100.0% 7 1 6 City Budget in Brief 1991-92 1 5 2 4 3 3 2 14 Note: Numbers refer to above categories 4 SOURCES OF COUNTY REVENUE 1. Property Taxes $237,465,338 41.4% 2. State 5 65,787,618 11.5 3. Federal 128,140,149 22.4 4. Other(Including ABC 6 Revenues, Sales Tax) 141,547,012 24.7 TOTAL BUDGET $572,940,117 100.0% 7 8 10-13 9 Charlotte/Mecklenburg County Tax Note: Numbers refer to above categories Assessed Valuation- Tax Levy- Rate Billions Millions 1987 $1.2165 $26.4 $279.5 1988 1.2545 25.9 279.7 1989 1.2875 27.0 311.3 1990 1.335 29.0 338.0 1991 1.205 36.9 376.0 LABOR Mecklenburg County, August 1991 Top 10 In-Commuting Counties Total Labor Force 293,440 278,470 Rank County Total In-Commuters Employed 14,970 1 Gaston 11,631 Unemployed 5.1% 2 Union 9,118 Unemployment Rate 3 Cabarrus 8,463 4 York, SC 8,057 Mecklenburg County Employment Trends 5 Iredell 3,263 Employment Unemployment 6 Lincoln 2,642 Place of Place of 7 Lancaster, SC 1,639 Work Residence Total Rate 8 Rowan 1,431 1990 358,100 277,530 8,410 3.0% 9 Stanly 1,346 1989 354,130 280,570 8,319 2.7% 10 Catawba 560 1988 345,500 269,540 7,518 3.6% Total In-Commuters 55,523 1987 334,930 261,480 8,887 3.4% 1986 312,600 244,790 9,815 4.0% Charlotte Area Salary Survey, 1990 Job Title Median Non-Supervisory Employees Monthly Salary Bookkeeper $1,850 Charlotte Area Wage Survey, 1990 Clerk, Accounting 1,734 Clerk, File 1,392 Job Title Median Computer Operator 1,880 Engineer, Entry Level 2,780 Assembler D $6.05 Key Punch Operator 1,322 Assembler F 6.00 Switchboard Receptionist 1,351 Machine Operator 8.51 Secretary A 2,056 Electrician (Maint.) A 15.44 Secretary B 1,546 Electrician (Maint.) B 12.95 Typist 1,385 Machinist (Maint.) A 15.87 Machinist (Maint.) B 13.28 Welder, Arc 10.72 Staff and Technical Supervisors Tool, Die or Gauge Maker A 10.96 Office Manager $2,786 Tool, Die or Gauge Maker B 12.65 Personnel Manager 3,570 Fork Lift Operator 7.50 Engineer, Industrial 2,772 Material Handler 8.10 Engineer, Chief, Industrial 3,409 Shipping/Rec. Clerk 7.89 Maintenance Supervisor 2,650 Heavy Equipment Diesel & Gasoline Mech. (inside) 10.70 Machine Shop Supervisor 2,825 Electronic Technician A 12.72 Production Supervisor (any industry) A 2,526 Electronic Technician C 10.32 Production Supervisor (any industry) B 1,773 Electronic, Assembler A 8.88 Plant Manager 4,583 Electronic, Assembler C 6.10 Shipping & Receiving Supervisor 2,050 Total Labor Force Thousands Total Employment Thousands 283 281 273 274 275 267 270 261 255 245 244 235 229 218 1984 1985 1986 1987 1988 1989 1990 1984 1985 1986 1987 1988 1989 1990 Total Unemployment Force Thousands Unemployment Rate Percent 11 10 9 8 8 8 7 4.6 3.5 3.8 3.3 2.7 2.9 3.0 1984 1985 1986 1987 1988 1989 1990 1984 1985 1986 1987 1988 1989 1990 CORPORATE NEIGHBORS Charlotte Industrial Firms Retail Sales Billions of Dollars Industrial Category Number of Firms Headquarters Printing and Publishing 219 198 Machinery 140 109 Fabricated Metals 104 87 Chemicals and Allied Products 8.8 8.9 78 46 33 7.3 8.0 8.7 Textiles 40 7.5 Food Products 6.7 36 20 Apparel 43 37 Instruments 41 36 Rubber and Plastics 34 20 Furniture and Fixtures 19 19 Paper and Allied Products 31 16 Lumber & Wood Products 36 30 1984 1985 1986 1987 1988 1989 1990 Electrical Machinery Equipment 26 19 Stone, Clay and Glass 30 18 Year Total Sales Miscellaneous 32 32 1986 $7,526,725,298 Transportation Equipment 24 15 1987 8,016,747,464 Primary Metals 18 13 1988 8,756,275,980 Petroleum 5 4 1989 8,915,710,228 1990 8,720,625,299* Business Mix * Reflects change in reporting auto tax # of Annual Category Firms Employment Payroll 1990 Retail Sales (000) Agriculture 212 1,652 $29,126 Apparel $294,989,467 Mining Automotive 14 216 5,431 1,469,664,048 Construction Food 1,531 27,007 634,179 1,475,120,607 Furniture Manufacturing 1,057 55,991 1,430,331 408,310,483 Gen. Merchandise Transportation 581 43,190 1,319,009 1,979,448,117 Wholesale Trade 2,434 35,467 1,083,545 Lumber/Bldg. Mat. 919,595,195 Retail Trade Unclassified 3,563 58,350 715,162 1,700,004,259 Finance, Insurance, RE 1,696 32,925 868,148 Services 5,240 76,847 1,415,287 Wholesale Sales, Cities with $12 billion or more in sales Source: County Business Patterns Rank City Sales (000) Charlotte's Largest Employers 1991 1 New York, NY $186,440,971 Employer Number Employed 2 Houston, TX 63,645,691 3 Los Angeles, CA 53,109,496 Charlotte-Mecklenburg Schools 9,400 4 Chicago, IL 32,702,141 Duke Power Company 9,000 5 Dallas, TX 31,010,980 Charlotte-Mecklenburg Hospital Authority 7,153 6 Charlotte, NC 21,127,181 USAir 6,800 7 Memphis, TN 18,447,612 State of North Carolina 4,956 8 Jacksonville, FL 14,795,978 City of Charlotte 4,922 9 Portland, OR 14,411,160 IBM Corporation 4,800 10 Pittsburgh, PA 14,132,813 First Union Corporation 4,754 NCNB Corporation 4,213 U.S. Government 3,922 Foreign Firms Represented in Charlotte Mecklenburg County 3,670 Presbyterian Health Services Corporation 3,500 Country 1991 1990 1985 1980 1970 Southern Bell 2,800 Germany 77 68 54 41 22 U.S. Postal Service 2,400 Great Britain 37 35 25 20 9 Belk's 2,325 Japan 32 29 18 19 3 Harris-Teeter, Inc. 1,990 Switzerland 31 31 17 20 8 Lance, Inc. 1,900 Italy 17 19 5 2 0 General Tire 1,807 France 15 14 9 11 4 Central Piedmont Community College 1,800 Canada 14 16 6 11 4 Netherlands 10 11 8 9 6 Charlotte/Mecklenburg Fortune 500 Companies Sweden 8 8 7 3 2 Total (Industrial) 212 Belgium 7 6 5 2 1 Total (Service) 149 Finland 3 2 0 0 0 Denmark 2 3 2 3 0 New & Expanded Business Activity Spain 2 2 0 0 0 Ireland 1 1 0 0 0 Square Ft. Investment Israel 1 1 2 1 0 Year #Firms Employment (Millions) (Millions) Kuwait 1 1 1 1 0 1990 413 6,789 5.3 $266.0 South Africa 1 1 1 0 0 1989 383 7,418 9.5 627.5 Taiwan 1 0 1 3 1 1988 462 6,031 5.7 440.4 Venezuela 0 1 0 0 0 1987 649 10,895 13.3 1,017.7 Australia 0 1 2 1 0 1986 621 9,412 11.9 509.1 Totals 260 249 164 147 60 TRANSPORTATION Commercial Airport Charlotte/Douglas International Top 30 markets served by Charlotte/Douglas 21st largest in nation and International Airport 1990 33rd largest in the world TOTAL RANK DESTINATION PASSENGERS Major Airlines 7 Number of Flights Daily 484 1 New York 386,754 Direct/Nonstop Flights to More than 150 cities 2 Atlanta 201,826 Air Freight Services Yes 3 Chicago 139,357 Air Cargo (annually) 150.2 (mil.lbs.) enplaned 4 Philadelphia 120,669 149.4 (mil.lbs.) deplaned 5 Boston 107,310 6 Dallas/Ft. Worth 110,522 Air Passenger Enplanements Millions 7 Washington D.C. 97,893 8 Los Angeles 84,753 9 Orlando 77,745 10 Miami 73,803 11 Tampa 72,343 12 Detroit 70,664 7.7 7.8 13 Baltimore 67,890 7.2 14 Raleigh-Durham 66,722 6.5 15 Pittsburgh 55,991 6.0 16 SanFrancisco 55,772 17 Cleveland 55,334 5.3 18 Nashville 54,385 4.3 19 Ft. Lauderdale 49,567 20 Houston 54,312 21 Denver 48,253 22 St. Louis 45,698 23 Hartford 44,822 24 Minneapolis 40,442 25 New Orleans 37,011 26 Memphis 36,885 27 Norfolk 35,770 1984 1985 1986 1987 1988 1989 1990 28 Wilmington 32,120 29 Jacksonville 31,098 30 Indianapolis 29,492 Year Enplanements 1984 4,307,535 Highways Serving Area 1985 5,268,627 U.S. Primary 21, 29, 52, 74, 521, 601 1986 6,001,459 State Primary 16, 24, 27, 49, 51, 73, 160 1987 6,483,262 Interstate I-85, I-77 1988 7,231,169 1989 7,658,842 Certified Motor Freight Carriers 1990 7,800,953 Total Number of Firms 200 Rail Service On-Line Railroads Norfolk Southern and Charlotte International Air Passenger Traffic CSX Transportation Off-Line Railroads Amtrak, Kansas City Southern, and Louisiana Inbound & % Change Outbound Percent From 1985 and Arkansas Railway Geographic Area Trains through Charlotte weekly 275 Caribbean 38,810 29 93 % Europe 35,620 26 14 Bus Service Canada 28,400 21 61 Central/South America 10,860 8 218 Provided by Greyhound/Trailways Pacific/Orient 10,020 7 43 In-City Service yes Charter Services 21 Mexico 8,780 6 72 Middle East/Africa 3,100 2 -9 United States 810 1 42 Delivery Services Total 62 TOTAL 136,400 100 % 55 % Source: U.S. Department of Transportation Data Bank, 1988 Waterways Inland Port opened in 1984, currently handling more than 17,500 containers annually - offering shippers easy accessibility to N.C. ports. 1990 # of entries into Charlotte 50,000 $100 mil. duties/$1.5 bil. worth of merchandise REAL ESTATE Construction Value-Millions Total Permits Residential Non-Residential Total 1983 8,647 $280.7 $253.7 $534.4 1984 8,789 348.1 332.2 680.3 1985 9,748 380.6 398.8 779.4 1986 10,220 383.6 456.1 839.7 1987 11,194 402.1 391.9 794.0 1988 11,637 419.9 510.8 930.1 1989 11,314 510.5 422.0 932.5 1990 10,484 424.3 528.0 952.3 New Residential Units Permitted Sales of Residential Units Single Family Multi-Family Total Units Sold Average Value Total Value 1983 3,792 3,341 7,133 1983 5,810 $72,322 $403,761,594 1984 3,714 4,400 8,114 1984 7,216 76,800 537,564,531 1985 4,141 5,305 9,446 1985 8,340 83,492 671,055,000 1986 4,436 3,017 7,453 1986 9,462 88,126 807,913,793 1987 4,597 3,652 8,249 1987 6,302 101,784 641,442,868 1988 4,597 3,139 7,736 1988 8,597 106,802 877,775,352 1989 4,622 5,139 9,761 1989 8,979 113,921 972,169,530 1990 3,873 1,962 5,835 1990 9,076 113,570 991,720,444 Total Construction Permits Construction Value - Residential/Non-Residential Millions/Dollars 12,000 1,200 11,000 1,100 10,000 11,194 11,637 11,314 1,000 9,000 9,748 10,220 10,484 900 8,000 800 930.7 932.6 952.3 7,000 700 839.7 779.4 794.0 6,000 600 5,000 500 4,000 400 3,000 300 2,000 200 1,000 100 0 0 1985 1986 1987 1988 1989 1990 1985 1986 1987 1988 1989 1990 Office Space Survey By Area 9/91 No. of Reported Percent Average Area Buildings Total Rentable Available Available Rate/SF Uptown 41 10,726,123 9,769,946 1,952,088 19.9 $18.87 Suburban 139 11,836,752 10,886,305 2,359,513 21.6 $13.86 Total 180 22,562,875 20,656,251 4,311,601 20.8 $16.47 Residential Units - Single/Multi-Family Occupied Office Space Millions/Square Feet 12,000 24 11,000 22 10,000 20 9,000 9,761 18 8,000 9,446 16 7,000 8,249 7.453 7,736 14 6,000 15.4 15.9 12 5,000 12.7 13.4 13.8 5,835 10 11.8 4,000 8 3,000 6 2,000 4 1,000 2 0 0 1985 1986 1987 1988 1989 1990 1985 1986 1987 1988 1989 1990 REAL ESTATE Charlotte-Mecklenburg Historical Trends In Office Space Percentage of Rentable Square Feet Available Square Feet Used Available Char./ Center Rentable Date (Mils.) (Mils.) (Mils.) Date Meck. City 9/83 11.1 9.1 2.0 9/83 18% 19% 9/84 12.1 9.9 2.3 9/84 19 16 9/85 13.8 11.2 2.6 9/85 19 17 9/86 15.9 12.5 3.4 9/86 22 17 9/87 16.7 13.5 3.2 9/87 19 16 9/88 17.0 13.7 3.3 9/88 20 12 10 9/89 17.4 14.4 3.0 9/89 17 9/90 20.1 15.8 4.3 9/90 21 19 9/91 20.6 16.3 4.3 9/91 20 19 FINANCE Average Prime Rate 8 % Commercial Finance and Factoring 72 Average Fixed Rate on Home Mortgage 30 yrs. 8 % Leasing Corporations 47 Charlotte Banks and Holding Companies 17 (Transportation and Equipment) Total Assets $166.8 billion Total Deposits $116.8 billion Mortgage Bankers 123 Womble Carlyle Sandridge & Rice MORE THAN ONE HUNDRED YEARS AS A FULL SERVICE LAW FIRM 3300 One First Union Center 301 South College Street Charlottte, NC 28202-6025 Contact: William C. Raper, Esq. (704) 331-4900 800 Wachovia Building Suite 1600, One Triad Park 227 Fayetteville Street Mall 200 West 2nd Street Raleigh, NC 27601 Winston-Salem, NC 27101 Contact: Donald A. Donadio, Esq. Contact: Murray C. 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FOUNDATIONFOR THECAROLINAS 1991 ANNUAL REPORT CONTENTS Mission 1 Chairman's Review 2 President's Report 3 Foundation Committees 4 Board of Directors 5 County Community Foundations 6 Financial Information 7 Donor Information 8 Grantmaking 9 Grant Guidelines 14 Sampling of Permanent Funds 15 1991 Grants 19 Staff 23 MISSION The mission of the Foundation is to To Fulfill the Mission the The Foundation encourages donors better the communities it serves through Foundation: of all means and interests to make their leadership in the advocacy and under- charitable visions become realities. standing of philanthropy, in service to Provides leadership in the advocacy Foundation assets come from gifts donors, in its stewardship of charitable and understanding of philanthropy made by individuals, corporations, assets, in the building of permanent in our region. private foundations and nonprofit charitable resources and in grantmaking organizations. These gifts meet imme- to a wide range of community projects Promotes the concept that "Anyone diate needs, strengthen the community and interests. Can Be A Philanthropist." and provide endowment for future generations. Conducts programs to create broader The Foundation offers a unique awareness and understanding among expertise in gift planning, technical key legal and financial advisors and assistance and grantmaking. The prospective donors who would benefit professional staff can help donors from Foundation services. and their financial advisors explore the many attractive charitable giving Provides watchful, prudent stewardship options such as annuities, unitrusts and for the assets with which the Founda- charitable lead trusts, or gifts by tion has been entrusted. bequests. The Foundation also helps simplify Expands the benefits of a county charitable giving by administering gifts community foundation to interested of cash, personal property, stock, or neighboring counties. real estate. The Foundation is governed by a Builds unrestricted endowment funds board of directors of private citizens for both discretionary grants and who have demonstrated outstanding A Resource For The Community operations. leadership in the community and who serve without compensation. It is their Total Assets $61,483,187 Provides a quality and growing grants desire, and the Foundation's goal, to Contributions $6,810,501 program that can offer assistance to serve equally well the community and Distributions $5,221,572 worthy charitable initiatives. the charitable giver. CHAIRMAN'S REVIEW The Foundation Foundation was the catalyst for One of the early results of that effort is For The Caroli- securing more than $400,000 to the handsome new logo you see on the nas completed implement a comprehensive service materials before you. We are grateful to another success- plan. Through the Consortium and the the local firm, Loeffler Ketchum ful year as the Foundation, grants for AIDS-related Mountjoy, which designed the logo as resource for services are being distributed to local a public service project. philanthropy agencies to develop and expand During the year the Foundation in our region. HIV/AIDS service in the region. continued its work in assisting agencies In spite of a Carolina Gives, a two year program and organizations with endowments. challenging to increase giving and volunteer Seventeen new agency endowments economic climate, the Foundation service, is a nine-county regional effort. were added during 1991, bringing that continued to grow both in assets and in The campaign has successfully re- total to 85. The Foundation has dem- its grantmaking capacity during 1991. cruited and placed over 8,000 new onstrated that it has the resources to Contributions of more than volunteers. I have been impressed with manage these endowments more $6.8 million brought total assets under the dedication and efforts of the efficiently than most organizations can management to over $61 million for members of the various committees, on their own. the year, an increase of about 14% the steering committee and the other Where is the Foundation going from from year-end 1990. Distributions supporting organizations, the Junior here? It will continue to encourage exceeded $5 million including a record League of Charlotte, Inc., The Volun- philanthropy among citizens of widely $625,497 in Special Project Grants to teer Center of United Way of Central varying financial means, adhering to aid growing community needs. Carolinas, Inc. and WCNC- TV 36. the philosophy "Anyone Can Be A Increasingly the Foundation, like My sincere thanks is extended to all Philanthropist." We will also work to other community foundations in many who have been involved and who promote the development of a larger cities in the United States, is being share in the success of the program. and more adequate permanent endow- asked to adapt to the challenges of the The Foundation also went through ment SO that the Foundation can better community. We find ourselves in a its first strategic planning process, respond to the critical issues we face. position to expand our role in the chaired by Crandall Bowles. The Without this important element firmly community. This transition has been process, resulting in the mission in hand, we cannot continue to meet marked by several outstanding projects statement and specific objectives the needs of the community in a timely during 1991. described elsewhere in this report, does manner. The Strengthening Families Initia- not represent a radical departure from We will continue to be imaginative tive broke new ground for the Founda- the course we have followed until now. and assume a leadership role in devel- tion. This special project, chaired by It did give us the opportunity to restate oping initiatives and community re- Bill Drew, is the first Distribution our objectives as an organization, and sources. To continue its service, Committee endeavor incorporating a the plan provides a current measurable however, the Foundation depends on new pro-active grantmaking philoso- reference to help our board govern and the support of many generous people. phy. Foundation discretionary funds our staff manage a dynamic, growing The Foundation, thus, will continue and contributions by anonymous organization. Finally, the plan confirms a dual role, faithfully carrying out the donors have provided $500,000 over the commitment to the new initiatives wishes of its donors and also playing a three years to assist at-risk preschool of the Foundation as indicated by some leadership role in addressing the cur- children in a focused geographic area. of the examples above. rent problems of our community as we The Regional HIV/AIDS Consor- One of the strategic plan objectives create a legacy upon which future tium, a seven-county effort chaired by was to develop a marketing/promotion generations can build. Dr. David Citron and sponsored by the program to create broader awareness Foundation and the United Way of and understanding of the Foundation's Central Carolinas, Inc., is attempting work. To carry out that mandate, a to deal in various ways with a serious marketing and communications plan Robin Hinsin world health problem that is having a was produced by a committee under significant impact on our region. The the leadership of Bill Middlemas. Robin L. Hinson, Chairman 2 PRESIDENT'S REPORT The year sation and involve complex financial far beyond our imagination. past saw the and estate planning. Our staff has Several weeks ago, while visiting Foundation experienced increased activity in our The Duke Endowment office, I was continue on work with individuals and their impressed by a framed copy of the a steady course financial advisors interested in 1924 Charlotte Observer story on the of growth in deferred giving, and particularly with announcement of James Buchanan assets as well those interested in making gifts by Duke's gift of $40 million to create as in community wills. The Duke Endowment. While Mr. presence and As the Foundation grows, the Duke was a man of great vision and capacity to make nature of our charitable funds is business acumen, it is not likely that a difference in the region we serve. evolving in a dramatic way. As he would have imagined that his gift While our discretionary grant recently as 1986, two-thirds of our today would be worth a billion dollars. resources remain modest, we are assets were donor advised or In 1924, billion dollar foundations did helping deal with some of the tough nonpermanent funds. Today, the not exist. I don't think it is unreason- issues of our times. We are making a composition of our assets has com- able to propose that we are building difference in our region as the con- pletely reversed and two-thirds of our what will be for future generations a vener and co-sponsor, along with the $61 million in assets are permanent billion dollar charitable resource. United Way, of the Regional funds, most of which are dedicated to HIV/AIDS Consortium. The Con- serving regional or program fields of sortium represents a joint effort by interest, or to providing income to William Spencer leadership from seven counties to specific organizations. develop a coordinated, humane, Our Foundation, even with its effective and cost-efficient response overall success, continues to have a William L. Spencer, President to the growing peril of HIV/AIDS less than adequate general endow- infection. The pro-active Strengthen- ment for grantmaking. We are ing Families Initiative is an effort to challenged in our grantmaking to try save lives and give the children of to respond to requests for support Piedmont Courts and the Belmont that represent vision and energy, that neighborhood hope for the future. try to fill needs that are unmet and It is intended for this program to serve that attempt to improve the quality as a model to be replicated in other of life for people. With general neighborhoods. Initiatives of this scale endowment assets of $2.3 million, are new ventures for our Foundation our income for grants falls far short of and are the first of what we expect to what is needed to respond in an evolve into a much larger and impor- adequate way. tant role for our organization. I am convinced that as we build I am encouraged by the growing the Foundation and carry out our number of requests coming from stewardship for the resources with individuals and organizations about which we are entrusted, we must Foundation services. Last year we advocate in the strongest way received 150 inquiries, of which 50 possible the long-term importance to resulted in the creation of new funds, our community of the Foundation's bringing to the Foundation over growth and success. $2.6 million in new gifts. At the end The legacy that has been created of 1991 our family of funds had grown over the past 30 years is alive and to 515, representing a wonderfully dynamic in the impact it is having. diverse array of charitable interests. The legacy we are building gift by It is typical for many inquiries to gift, year by year, is going to have lead to an extended period of conver- meaning for the future generations 3 FOUNDATION COMMITTEES Acceptance Committee James K. Polk William F. Drew, Jr. Neighborhood Rotary Scholarship Robin L. Hinson, Chair Doris Uliss James O. Funderburk Grants Committee Crandall C. Bowles William H. Grigg Committee Dr. Richard E. Neel, William H. Grigg The Cole Foundation Deborah S. Harris Samuel H. Smith, Jr., Chair James W. Thompson Committee Ike Heard, Jr. Chair James O. Funderburk, Robert W. Elliot, Chair R. Powell Majors Anne M. Alexander Vice Chair William Tasse Russell Bennett Samuel H. Smith, Jr. Judy Allison Sadler H. Barnhardt Alexander Scholarship Mrs. Robert L. Cole Jeanne M. Brayboy Dr. Dean W. Colvard Committee William L. Pender Foundation Dr. Jim Cooke Hoyt R. Galvin Lydia McNeary, Chair Dr. Stanley J. Vetter Endowment Committee Franklin McCain Warren H. Owen Frances V. Bryant Edwin L. Jones, Jr., Chair David S. Mervine Kenneth W. Poe Dr. Chris Folk The Cole Foundation J. David Barnhardt Charles Page Guy A. Wilson Dr. Emory Mason Scholarship Committee Crandall C. Bowles William A. Simmons O. J. Parris Trent Strickland, Chair Seddon Goode, Jr. Johnnie Wallace, Jr. Strategic Planning Russell Bennett William H. Grigg Committee Audit Committee Jimmy Blair F. Kenneth Iverson Nominating Crandall C. Bowles, William H. Grigg, Chair Ann Burgin Edwin P. Latimer Committee Chair John M. Belk Dorothy Fisher A. Zachary Smith, III Larry J. Dagenhart, F. Kenneth Iverson, Crandall C. Bowles Irene Lewis Harry S. Swimmer Chair Vice Chair Robin L. Hinson Alice Little Katherine M. Belk Jeanne M. Brayboy F. Kenneth Iverson J. W. Mask, Jr. Richard Goolsby Herman Blumenthal W.R. Cuthbertson, Jr. Edwin L. Jones, Jr. Lynn McCaskill Scholarship Frank E. Emory Larry J. Dagenhart C. Don Steger Committee James V. Johnson William F. Drew, Jr. James W. Thompson Community Relations Joe Bennett, Chair James R. Nisbet William Gorelick Committee J.W. Dominick Elizabeth S. Randolph William H. Grigg Charlotte Housing William P. Middlemas, James O. Funderburk Deborah S. Harris Authority Scholarship Chair Kenneth K. Kilpatrick NC League for Robin L. Hinson Selection Committee Anne M. Alexander Helen G. Lowery Nursing Scholarship James V. Johnson Kitty Huffman, Chair Roberta Bowman Committee James K. Polk Judy Leonard, Vice Chair William F. Drew, Jr. Investment Committee Dr. Ruby G. Barnes, A. F. Sloan Charles Cross Lawrence M. Kimbrough Charles T. Davidson, Chair James W. Thompson Irving Edelman Jim Mountjoy Chair Frances V. Bryant William H. Williamson, III Don Ellis Elizabeth S. Randolph John V. Andrews Mary James Ike Heard, Jr. J. David Barnhardt Dr. Ernestine Small Treasurer's Committee Valorie McCullough Crowder Scholarship Crandall C. Bowles Crandall C. Bowles, Jacqueline Waites Moss Committee Larry J. Dagenhart Plyler Scholarship Chair Ann Murphy Dr. Richard H. Frank E. Emory Committee W.R. Cuthbertson, Jr. Jeroline Woods Hagemeyer, Chair William Gorelick Thomas W. Thomas, William H. Grigg Dr. David M. Bayer John M. Harney Chair Robin L. Hinson Charlotte-Mecklenburg Jeanne M. Brayboy Robin L. Hinson Willis F. Ballard F. Kenneth Iverson Schools Scholarship Patsy Sifford F. Kenneth Iverson James K. Davis Harry S. Swimmer Incentive Program Harry S. Swimmer Rolfe Neill The Rev. George Battle, Richard J. Osborne Regional HIV/AIDS Washburn Graphics Jr., Chair Davidson Community A. Zachary Smith, III Consortium Grants Scholarship Fund Dr. Chris Folk Fund Trustees Committee Committee Valorie McCullough Robert S. Sutton, Chair Medical Advisory John Craig, Frances V. Bryant, Chair Lawrence M. Kimbrough Committee Chair Franklin S. Atwater Children's Medical Dr. John W. Kuyendall Dr. Lawrence K. Boggs, Farrie Blackburn R. Powell Majors Committee Chair Tom Dillon Raenea Siegel Dr. O. F. Roddey, Jr., Distribution J.W.Adams Carla DuPuy Libbie M. Webber Chair Committee Herman Blumenthal James Ferguson, II Dr. John M. Archer, III James S. Howell, Chair Frances V. Bryant Frank Lubbers James H. Barnhardt Jeanne M. Brayboy, Dr. Ophelia Garmon- Evelyn Schaffer Robert O. Beck Vice Chair Brown Dr. Jared Schwartz Dr. W. Blair Bryan Anne M. Alexander Dr. James B. Greenwood, Jr. The Very Rev. Bob Sessum Dr. Monroe T. Gilmour Katherine M. Belk Billy G. McCall Chris Wise Deborah S. Harris Frances V. Bryant Dr. Joseph B. McCoy Jere Witherspoon Kaye McMullen Thomas P. Dillon Dr. Hamilton W. McKay, Jr. Betty Worthy 4 BOARD OF DIRECTORS 1991-1992 Officers and Executive Committee Robin L. Hinson William H. Grigg Edwin L. Jones, Jr. Crandall C. Bowles Chairman of the Board First Vice Chairman Vice Chairman Treasurer James W. Thompson Charles T. Davidson James S. Howell John M. Belk Larry J. Dagenhart Secretary Chair of the Investment Chair of the Distribution Member at Large Member at Large Committee Committee F. Kenneth Iverson C. Don Steger William L. Spencer Marilyn M. Bradbury Gordon Berg Member at Large Member at Large President Vice President & Assistant President Emeritus Secretary Class of 1992 Class of 1993 Class of 1994 Directors Emeriti Katherine M. Belk Anne M. Alexander Herman Blumenthal Dr. Monroe T. Gilmour Jeanne M. Brayboy William M. Barnhardt Dr. Lawrence K. Boggs Edwin P. Latimer C.C. Cameron John M. Belk Larry J. Dagenhart Thomas P. Dillon Harry M. Dalton Charles T. Davidson Hugh M. Durden William F. Drew, Jr. Frank E. Emory, Jr. John R. Georgius James V. Johnson Kathleen D. Hamrick Seddon Goode, Jr. Rolfe Neill Deborah S. Harris William H. Grigg James K. Polk Ike Heard, Jr. Graeme M. Keith Elizabeth S. Randolph William P. Middlemas Lawrence M. Kimbrough C. Don Steger James R. Nisbet A. Zachary Smith, III William H. Williamson, III A. F. Sloan Harry S. Swimmer 5 COUNTY COMMUNITY FOUNDATIONS The Foundation For The Carolinas The Cabarrus County The Lancaster County promotes the community foundation Community Foundation Community Foundation concept to provide individuals from all Lawrence M. Kimbrough, Chairman Thomas W. Thomas, Chairman Benjamin F. Mynatt, Vice Chairman Elizabeth Wilson, Vice Chairman geographic areas the opportunity to Margaret C. West, Secretary William C. Tindal, Secretary develop new charitable resources for their Michael R. Coltrane W. H. Bridges communities. County community J. Roy Davis, Jr. Charles A. Bundy foundations provide a means to benefit William S. Fisher Richard Chandler local charitable organizations and Carolyn V. Foil C. K. Connelly, Jr. Robert C. Hayes James K. Davis enhance their ability to serve. Joseph C. Hunter Ray F. Faulkenberry A county community foundation Branson C. Jones Robert K. Folks operates as a component fund of the Dr. Douglas G. Kelling, Jr. Don T. Gardner Foundation For The Carolinas. This Dr. George W. Liles Richard D. Plyler W. Whitaker Moose affiliation enables the county foundation Dr. Douglas A. Rucker The Rev. Robert L. Sessum Donald B. Scott to carry out its mission with a minimum C. Steve Smith Dr. Roy A. Still of required reporting and overhead Harold H. Smith expense. It is also able to pool its invest- Gabe S. Stewart The Union County ments with other funds for maximum G. Raiford Troutman Community Foundation M. Slate Tuttle investment income. The Foundation For John V. Andrews, Chairman Dr. Thomas H. Batchelor, Vice The Carolinas provides management The Cleveland County Chairman services, and the local community Community Foundation Lane Drew, Secretary volunteers participate in distribution of George Blanton, Jr., Chairman J. W. Adams funds. Kathleen D. Hamrick, Vice Chairman John B. Ashcraft, Jr. The Foundation For The Carolinas is Robert W. Yelton, Secretary-Treasurer Thomas P. Dillon Lloyd C. Bost H. Clark Goodwin proud of the relationships that have been Maxine Forrest Bobby H. Griffin established with the following communi- R. T. LeGrand, Jr. Walter B. Love, Jr. ties. These strong community leaders are Jack Palmer, Jr. Richard M. McGee committed to increasing the charitable Dr. Johnny Presson resources of their communities and serve J.L. Suttle, Jr. The York County Lamar L. Young Community Foundation as splendid examples to others. Dr. William M. Hull, Jr., Chairman The Iredell County James C. Hardin, III, Secretary Community Foundation William M. Brice, Jr. Ronald W. Hawkins, Chairman Elliott S. Close James V. Houston, Vice Chairman Harry M. Dalton Judge Robert A. Collier, Jr., Secretary John F. Day James P. Ashburn Julian Dickerson B. Melvin Gordon Andy Douglas Sara K. Haire James F. Hall Edith W. Holland Alex Haefele James V. Johnson Wayne T. Patrick Ann T. Kelly Betty H. Rader John D. King Betty Jo Rhea Chester P. Middlesworth Gerald Schapiro Barbara Orr Harold Shapiro Donald R. Parker Linden Smith Bert Walser Howard R. Weckerley T. Duke Williams William W. Wilson 6 FINANCIAL INFORMATION Summarized Financial Data For Years Ended December 31 Balance Sheets 1991 1990 Assets Cash and temporary investments $ 8,097,163 $10,489,078 Investments 52,285,344 42,891,972 Receivables 1,057,243 471,246 Other 43,437 43,850 Total Assets $61,483,187 $53,896,146 Liabilities Deferred revenue $ 829,108 $ 780,676 Grants and other payables 386,278 432,761 Total Liabilities $ 1,215,386 $ 1,213,437 Fund Balances Restricted $51,553,421 $43,495,616 Unrestricted 8,714,380 9,187,093 Total Fund Balances 60,267,801 52,682,709 Total Liabilities and Fund Balances $61,483,187 $53,896,146 Statements Of Revenues, Expenses And Changes In Fund Balances 1991 1990 Revenues Contributions $ 6,810,501 $ 6,560,496 Interest, dividends and other income 3,143,481 2,942,871 Investment gains (losses) 3,884,572 (1,508,336) Total Revenues $13,838,554 $ 7,995,031 Expenses Charitable distributions $ 5,221,572 $ 5,043,755 Administrative expenses, net 792,934 729,117 Unitrust and pooled income fund payments 238,956 249,116 Total Expenses $ 6,253,462 $ 6,021,988 Revenues over expenses* $ 7,585,092 $ 1,973,043 Fund Balances, beginning of year 52,682,709 50,709,666 Fund Balances, end of year $60,267,801 $52,682,709 *Before reflecting restricted fund activity. The audited financial statements of the Foundation For The Carolinas are available for inspection at the office of the Foundation For The Carolinas, 301 South Brevard Street, Charlotte, NC 28202. 7 DONOR INFORMATION Benefits of Giving foundation recognized by the Internal perpetuity income for charitable The Foundation serves the commu- Revenue Service as a 501(c)(3) purposes designated by the donor. To nity by working to increase current charitable organization. Gifts to the provide an adequate base for growth, and long-term charitable resources. Foundation receive maximum tax an initial gift of $5,000 or more is Gifts from generous donors help meet advantages for income, gift and estate recommended. Additional gifts in any today's needs and provide for future tax purposes. amount may be made. Endowments needs as the community changes. The Distributions from all funds adminis- may be established by a charitable Foundation welcomes and administers tered by the Foundation benefit other organization, an individual, a business gifts of all sizes and types from indi- charities. Many funds established with or a family. Endowments may be viduals, corporations, foundations and the Foundation are endowment or donor advised. other charitable organizations. permanent funds. Annual income is Donor Advised Funds: These funds Simplicity: The Foundation helps distributed for the designated charitable allow the donor to be actively simplify charitable giving for donors. purpose in perpetuity to provide involved in recommending the One gift can support a specific ongoing sources of revenue for chari- nonprofit organizations to receive gifts charitable interest or a broad range table needs. Donors are acknowledged from the fund. The Foundation has of interests. in all charitable disbursements unless final discretion on distributions but Stability: Donors can have confi- anonymity is requested. gives full consideration to the donor's dence that the Foundation is perma- recommendations. An initial gift of nent and that the stewardship of their $1,000 is required to establish a donor resources will continue over time Types of Funds advised fund. according to their intentions. There are many types of funds Trusteed Funds: Trusteed funds may Professional Management: The that can be established through the offer special advantages to donors Foundation has a long tradition of Foundation: such as retaining a life income while sound professional management. It is Unrestricted Funds: Unrestricted receiving a current tax deduction. experienced in handling all types of funds do not designate a specific The four main types of trusteed funds gifts including more complex gifts of charitable beneficiary but permit the are unitrusts, annuities, pooled securities and real estate, and can Foundation to determine the most income funds, and charitable lead assist donors with a variety of estate pressing charitable needs in the trusts. planning and deferred giving options. community and fund them. Unre- All contacts with the Foundation are stricted funds are typically used for confidential, and there is no obliga- "seed grants" to new charitable pro- Ways of Giving tion to proceed. grams. Many donors contribute to the Flexibility: The Foundation is a Field of Interest Funds: Field of Foundation For The Carolinas permanent structure to receive gifts, interest funds allow the donor to through cash gifts, appreciated yet it is flexible enough to meet con- specify a general area of interest such as property and bequests. There are tinually changing community needs. the arts, care of the elderly, or human other methods of contributing that The wishes of donors in supporting services without designating a specific offer donors the opportunity to tailor specific activities or organizations organization as beneficiary. donations to suit tax and estate within the community are always Restricted Funds: Restricted funds are planning situations. respected. Yet, should the original non-permanent funds which usually are The Foundation would be pleased purpose of the fund become obsolete limited to specific purposes or are to be to discuss these and additional options or a designated beneficiary cease to spent over a defined period of time. At with donors. We strongly recommend exist, the Foundation has the obliga- the time the fund is established the that donors consult with personal tax tion to reevaluate and, where appro- donor creates the restrictions as a and estate planning advisors in priate, redirect funds to meet current condition of the gift, and the Founda- making charitable gifts. The Founda- or critical needs, while keeping the tion makes charitable distributions tion staff will be happy to work donor's original intent in mind. accordingly. directly with advisors to develop the Tax Benefits: The Foundation For Endowment Funds: Endowment funds most appropriate plan to suit chari- The Carolinas is a public, community are permanent funds which generate in table objectives. 8 FOUNDATIONFOR THECAROLINAS A Advocating, encouraging LEGACY and assisting philanthropy UPON by individuals WHICH of all means to FUTURE benefit their communities GENERATIONS both now CAN and for all time. BUILD GRANTMAKING I 1991 the Distribution Committee realized a long-held dream - making more than a half million dollars in discretionary Special Project Grants. A total of $625,497 was awarded, more than double any amount previously approved. This record was part of $5,221,572 in total grants made during the year and outlined in detail on pages 19-22. The new Strengthen- ing Families Initiative and the first grants made on behalf of the HIV/ AIDS Consortium account for the major increase in Special Project Grants. Highlights of these programs and others are given below. Strengthening Families Initiative Referrals for child abuse/neglect in Mecklenburg County doubled from 1988 to 1990 to 4,445 cases. The number of young people (20 years and younger) arrested for murder tripled in the last four years. Mecklenburg's infant mortality rate is higher than that for North Carolina, which ranks 43rd in the nation. Almost one of every five children in Mecklenburg lives in poverty. These are some of the disturbing facts that led the Distribution Com- mittee in 1991 to undertake its first major pro-active grantmaking effort, the Strengthening Families Initiative. Over the next three years the Foundation will award $500,000 to assist at-risk families with preschool children through neighborhood based services and collaboration of service providers. From numerous applica- tions submitted, the Foundation chose a proposal by three organiza- tions to develop a continuum of services from conception to kinder- garten and to empower families toward self-sufficiency. The UPLIFT Program of the Charlotte-Mecklenburg Schools, Seigle Avenue Preschool Cooperative and the Johnston Memorial YMCA, lead agency for the Success By 6 effort, will develop the continuum for the Piedmont Courts/Belmont neighbor- hood near uptown Charlotte. Repre- sentatives from the neighborhood, which has a population of 3,350 and a median family income of $7,542, will also participate in the planning and implementation of the programs. UPLIFT will focus on providing early child development education and parenting training to families from the prenatal period until a child reaches age 3. Seigle Avenue Pre- school will target families with 3 and 4 year-olds and offer a half-day preschool experience and continued parent education and involvement. The Johnston Y/Success By 6 will coordinate services for families not served by the other two programs, develop a system-level forum for coordinating service delivery and promote neighborhood leadership development. he Foundation's $500,000 Strengthening Families Initiative aims to offer Somona (right) and the 400 preschool children in the Piedmont Courts/Belmont neigh- borhood hope for a brighter future. 9 Regional HIV/AIDS Consortium A second major effort launched by the Foundation in 1991 was its first grantmaking project devoted to the development of services for persons affected by HIV/AIDS. Currently he House of Mercy, a approximately 400 individuals in the hospice-type facility in region have been diagnosed as having Belmont (below), received AIDS while as many as 10,000 are estimated to be infected with HIV, a grant as part of $132,702 the virus that causes AIDS. Popula- awarded in conjunction with tions in which the epidemic is the Regional HIV/AIDS growing fastest are minorities, women Consortium through a and children. In cooperation with the Regional major new grant-making HIV/AIDS Consortium, which serves effort to develop/expand a seven-county area, the Foundation services for persons affected made a total of $132,702 in grants. by HIV/AIDS in seven Existing agencies were encouraged to counties: Cabarrus, develop/expand services in accor- dance with the Consortium's regional Gaston, Lincoln, plan developed by participating Mecklenburg, Rowan, counties: Cabarrus, Gaston, Lincoln, Union and York (SC). Mecklenburg, Rowan, Union and York (SC). Grants funded included home health care, education for physicians and clergy, transportation and counseling for families touched by HIV/AIDS. More grants are anticipated in 1992 and beyond. A joint effort of the Foundation and the United Way of Central Carolinas, Inc., the Consortium in 1991 was chosen as an associate partner of the National Community AIDS Partnership, regional convener for federal/state Ryan White funds and recipient of a major grant from the Kate B. Reynolds Health Care Trust. Additional financial support was obtained from regional corpora- tions, foundations and other groups to give a total of over $400,000 for Consortium operations and service grants in coming years. Other accomplishments of the Consortium include development of a regional case management system, technical assistance to individual counties, inauguration of a regional 800 HIV/AIDS hotline and a collec- tion of writings of persons affected by HIV/AIDS. 10 ith his own personal resources, Fred C. Wikoff, Jr. (left), established a new scholarship fund with the Foundation in 1991 to benefit children of employees of Wikoff Color Corp. An avid pilot, Mr. Wikoff frequently visits company locations in 18 states and wanted to assist his employees' children in obtaining an education. Scholarships In 1991 the Foundation also experienced continued growth in its scholarship program which awarded $156,000 to 145 students through 10 different scholarship funds. The largest of these are the Charlotte Housing Authority Scholarship Fund for students in public housing, the Charlotte-Mecklenburg Scholarship Incentive Program for at-risk public school students and the Cole Scholarship Program for students in Richmond County, NC. " y dreams and aspirations Other scholarship programs include the William Tasse Alex- are on the route to fulfill- ander Scholarship for teachers, the ment, thanks to you. Crowder Scholarship for children of Through your financial construction workers, the Goolsby support of my college Scholarship for students seeking a education, I can imple- career in the plastics industry, the North Carolina League for Nursing ment my plans and one Scholarship, the Plyer Scholarship day aid others in pursuit for Lancaster, SC and the Rotary of their dreams." Scholarship Fund. Tanya Moore (above), UNCC Student, Charlotte- Mecklenburg Scholarship Incentive Program 11 Seed Grants international House sought In 1991 the Foundation also con- and received a Foundation tinued its traditional Seed Grants, the Neighborhood Grants Program, Medi- grant to help fund the first cal Research Grants and Summer Hispanic caseworker (right) Camperships. Twenty-one organiza- for the Charlotte area, tions received $80,500 in Seed Grants which has more than 10,000 for innovative charitable projects. Among those programs funded were: Hispanics, many of whom Mecklenburg County's first Hispanic need bilingual assistance to social worker, expansion of an in- find jobs, housing and become school arts program in Union County, productive citizens. inauguration of a leadership program for senior citizens, a new program to help teens in foster care bridge the gap to independent living and a matching fund to assist students recruit bone mar- row donors. For information on how to apply for Seed Grants, see page 14. 12 arents in York, Lancaster, D and Chester, SC who have experienced the death of a child (below) can now receive services through Kinder-Mourn, which received a Founda- tion grant to expand its services in 1991. " he many worthwhile projects funded with grants from the Foundation Endowment demonstrate the importance of having resources to meet changing community needs. It is crucial that those who care about the future help the Foundation to grow and provide a legacy for genera- tions to come." Edwin P. Latimer, (below) Chairman of the Board 1975-1981 and Director Emeritus seed grant to A Child's Place (left), A a transitional school for homeless children, helped launch a Family Advocate program to assist families in achieving economic, physical and social stability. 13 GRANT GUIDELINES Before applying for a grant, please Program Focus Application Deadlines carefully review the grant guidelines Seed Grants: Priority will be given to Deadline dates for applications are listed below and be certain all criteria are "seed grants" to initiate promising February 1, June 1, and October 1. met. Please note that the program focus new projects SO that such projects may is on "seed grants" for new projects and demonstrate their usefulness to the Areas Generally Not Funded that the geographic focus is on the community. The applicant may be a 1. Capital campaigns and buildings, Central Piedmont area of the Carolinas. new organization or an existing computers, vehicles and similar Please also review the list of areas not agency. If the agency has been in equipment generally funded. existence, the proposal must fall 2. Ongoing operating budgets The Foundation's funds for special clearly outside the realm of possible 3. Publication of books and produc- projects are limited. To make the most inclusion in the regular budget. tion of videos effective use of available resources, the Volunteer Involvement: Volunteer 4. Conferences and travel Foundation will follow these guidelines in leadership and/or grassroots participa- 5. Grants to individuals considering grant requests. tion in developing the program are 6. Endowment funds required. Grant Application Procedure Geographic Focus 1. Grant application form should be The Foundation serves North and completed and signed by the Board South Carolina. However, the Chairman or Executive Officer of the majority of grants will be made to organization. organizations in the Central Pied- 2. Attachments to the application mont area from which the Founda- form should include: tion derives most of its support. A. A cover letter of not more than two pages. The letter should Challenge Grants address concisely the following points: Priority will be given to "challenge (1) Objectives and background of grants" under which distributions will the project be authorized, provided other donors (2) Demonstration of need for make matching gifts. the project (3) Specific plans and timetable Future Funding of the project The program must have potential for (4) Description of both the continuity through other funding current and long-term funding plans sources in the future. of the organization (5) Qualifications of the organiza- Amount of Grants tion and personnel concerned Except in unusual circumstances, the B. An overall budget for the largest grant will be $5,000. It is organization as well as a budget for anticipated that the majority of grants the specific project. The budgets will be in smaller amounts. should show sources of income as well as expenditure items. Tax Exempt Status C. List of current Board of Direc- Except in unusual circumstances, tors. grants will be made only to organiza- D. Copy of applicant's official tions recognized by the IRS as notice of tax exempt status under the 501(c)(3). Internal Revenue Code. E. One copy of applicant's most recent audit. 14 SAMPLING OF Emmett W. and Elizabeth H. Mr. and Mrs. Edward R. Fatzinger Bringle Fund Endowment PERMANENT FUNDS Established in 1989 by Southern Webbing Established in 1983 in memory of Mr. Mills in honor of the Bringles and in Edward R. Fatzinger for cancer research. recognition of their service to the company First United Methodist Church, Austell, and the community with broad charitable GA, Endowment Fund purposes. Established in 1986 for the benefit of the Stanford R. Brookshire Endowment Fund First United Methodist Church in Austell, Individual and Special Established in 1979 for the benefit of High GA. Endowments Point College, High Point, NC. Stuart and Martha Fishburne Endowment James M. Alexander Medical Fund Martin Cannon Family Endowment Fund Fund Established in 1979 for medical programs Established in 1978 with broad charitable Established in 1982 as a memorial to including medical education. purposes. Howard B. Higgins. Allegro Endowment Fund Carolina Circle Fund Stuart P. Fishburne Memorial Fund Established in 1991 by an anonymous Established in 1985 under the will of a Established in 1983 as a memorial to Stuart donor, the Allegro Endowment has broad resident of Winston-Salem, NC with broad P. Fishburne. charitable purposes. charitable purposes. Paul Hughston Frowein Endowment Fund B & B Endowment Fund Carolinas Cancer Research Fund Established in 1989 by the First Presbyterian Established in 1984 by Mr. and Mrs. A. S. Established in 1985 by William H. Van Church, Lancaster, SC to provide post- Blankenship, Jr. with broad charitable Every, Jr. for the purpose of medical graduate scholarships for the ministry or purposes. research into the causes, detection, church affiliated work. Nell Barnhardt Endowment Fund treatment and cure of cancer and for the Anne L. Van Every and Thomas Walter Established in 1991 in memory of Nell purpose of educating and stimulating Glenn, III Endowment Fund Barnhardt. further cancer research by physicians and Established in 1981 with broad charitable William H. Barnhardt Endowments medical centers in the Carolinas. purposes. Established in 1986 under the will of Central United Methodist Church, Romola D. Hardy Endowment Funds William H. Barnhardt, these five endow- Shelby, NC, Endowment Fund The first endowment was established in ments benefit charitable programs of special Established in 1986 for the benefit of 1981 for community projects of Charlotte interest to Mr. Barnhardt. Four of the Central United Methodist Church in Rotary Club #256. A gift is made annually endowments provide annual income to Shelby, NC. in memory of Mrs. Hardy's husband, Harry specific charitable organizations: the Boy Children's Medical Fund Hardy, who was a member of that club. The Scouts of America, Mecklenburg County Established in 1979 to assist in the medical second endowment, established in 1990, is Council; the YMCA of Greater Charlotte; needs of children (age 17 and under) which an unrestricted fund to be used for the YMCA Blue Ridge Assembly in Black may be beyond their families' means to meet. grantmaking by the Foundation's Distribu- Mountain, NC; the Billy Graham Evange- The Cole Foundation Endowment tion Committee. listic Association. The fifth endowment Established in 1989 to serve a broad range Charles R. and Ailene S. Harris Fund benefits a broad range of charitable of charitable, educational, religious, literary Established in 1977 as an unrestricted fund purposes. and cultural purposes primarily in the with emphasis on: (1) Meeting the needs of Barnhardt/Thomas Fund For Richmond County area of NC. underprivileged youngsters who might be The Arts Columbia Bible College and Seminary assisted by scholarships to the various camps Established in 1990 for the benefit of the Endowment Fund serving our community (2) Providing some North Carolina Blumenthal Performing Established in 1987, the fund supports the of the equipment needs of boys clubs, youth Arts Center at Charlotte and the Charlotte training of missionaries for starting and centers and camps (3) Providing one or two Symphony. developing new churches among unreached annual scholarship grants to aid students of George Baxter Endowment Fund peoples. the Engineering College of the University of Established in 1981 with broad charitable Crosland Family Fund North Carolina at Charlotte (4) Giving purposes. Established in 1980 with broad charitable help and education in appropriate ways to Bechtler Arts Endowment Fund purposes. unwed mothers and assisting in education to Established in 1981 by Andreas H. Bechtler Anne and Don Davidson Endowment prevent this social problem. to provide support to major arts programs in Fund Barbara T. Hautau Endowment Fund the Charlotte area. Established in 1985 by Anne and Don Established in 1989 as an unrestricted fund Belmont Area Endowment for the Davidson for the benefit of the First in honor of Barbara Hautau for 15 years of Homeless and Hungry Presbyterian Church of Charlotte. In par- service to the Foundation as its vice Established in 1991 by an anonymous ticular the fund will benefit the church's president. donor to benefit charitable efforts in urban ministry and support in other ways Judge D. E. and Mattie J. Henderson Belmont, NC. the existence of a Christian theological and Endowment Fund Gordon Berg Endowment Fund ethical conscience within the heart of Established in memory of Judge D. E. and Established in 1977 by Charles R. and Charlotte. Mattie J. Henderson for the purpose of Ailene S. Harris. Unrestricted, with Durwood Medical Clinic Endowment providing aid and assistance to abused emphasis on: (1) the voluntary system of Fund women and children of the Charlotte- social work generally (2) the field of child Established in 1979 for the field of medi- Mecklenburg area. welfare and protective services (3) social cine with particular emphasis on: (1) Lethia Jones Henderson Endowment Fund planning for the community as a whole. Financial aid to students in their education Established in 1981 by the transfer to the MaTy Lou Bleau Endowment Fund at schools of medicine (2) Medical projects Foundation of the trust created by the will Established in 1988 with broad charitable or research in the Charlotte community (3) of Lethia Jones Henderson. This is an purposes. Other medically related activities. unrestricted fund in the field of health and 15 community service with emphasis on service Col. Erickson S. Nichols and Boys Home of York County to minority groups. Madeline Hechenbleikner Nichols Endowment Fund Don S. Holt Memorial Endowment Fund Established in 1991 for the benefit of Boys Endowment Fund Established in 1983 in memory of Madeline Home of York County, SC. Established in 1982 in memory of Don S. Hechenbleikner Nichols for cancer research. Charlotte Choral Society Endowment Fund Holt for the purpose of education and North State Telephone Company Established in 1980 for the benefit of the research in the renal field. Endowment Charlotte Choral Society. E.F. Hutton Fund Established in 1990 with broad charitable Charlotte Community Day Care Fund Established in 1979 to be used for crippled purposes. Established in 1987 by a gift from an children (under 18) of North Carolina in Wilton L. and Mary W. Parr Foundation anonymous donor to build and endow the need of braces, corrective shoes, wheelchairs Established in 1991 with broad charitable YWCA Uptown Child Development and other orthopedic appliances. purposes. Center. Imago Mundi Endowment Fund Andy Pitts Memorial Fund Charlotte Council on Alcoholism and Established in 1990 for research in the field Established in 1985 in memory of Noah A. Chemical Dependency of the comparative history of science. "Andy" Pitts with broad charitable purposes. Established in 1978 for the benefit of the Annabel Lambeth Jones Endowment Funds Bob and Wilma Shaw Endowment Fund Charlotte Council on Alcoholism and Established in 1980, these two memorial Established in 1978 with broad charitable Chemical Dependency. funds honor Annabel Lambeth Jones. The purposes. Charlotte Country Day School Endowment first fund is for the benefit of Brevard College Paul and Eve Stewart Fund Fund (the Annabel Lambeth Jones Dormitory) Established in 1981 with broad charitable Established in 1979 for the benefit of and the Western North Carolina Confer- purposes. Charlotte Country Day School with one-half ence of the United Methodist Church for Teledyne Allvac Endowment Fund of the net income to be used for scholarships the Ministers' Pension Fund. The second Established in 1988 for broad charitable and one-half for unrestricted use. fund is for merit scholarships in Mrs. Jones' purposes in the Union County, NC area. Charlotte Museum of History and name at Queens College and Brevard Capt. Salem A. Van Every, Jr. Hezekiah Alexander Homesite Endowment College. In addition, the fund provides for a Endowment Fund Established in 1990 for the benefit of the sculpture to be on permanent display at the Established in 1983 with broad charitable Hezekiah Alexander Foundation. Mint Museum. purposes. Charlotte-Mecklenburg Public Schools Gail Elaine King Endowment Fund S. Lance Van Every Endowment Fund Endowment Fund Established in 1985 in memory of Gail Established in 1981 with broad charitable Established in 1985 for the benefit of the Elaine King to benefit young people by purposes. Charlotte-Mecklenburg Board of Education providing: (1) scholarships at either, or both, Charles R. Willard, Jr. Lecture and the public schools under its jurisdiction. the secondary school or collegiate levels (2) Series Fund Charlotte Speech and Hearing Center matching or challenge gifts for capital Established in 1978 by Mr. and Mrs. Charles Endowment Fund improvements or portions of new building R. Willard in memory of their son. The fund Established in 1980 for the benefit of the funding for educational, religious or is used for the Charles R. Willard, Jr. Charlotte Speech and Hearing Center. humanitarian institutions, and (3) operating Lecture Series at the First Presbyterian Charlotte Symphony Endowment Fund funds or capital items of charitable, humani- Church, Charlotte, NC. Established in 1978 for the benefit of the tarian, or research-oriented organizations on Emery Wister Endowment Fund Charlotte Symphony Orchestra. a "special need" basis. Established in 1983 in memory of Viola F. Child Care Resources Endowment Fund Knight Foundation Endowment Wister and Dorothy M. Wister for the Established in 1984 for the benefit of Child Established in 1988 by the Knight Founda- purposes of cancer research, treatment and Care Resources. The first gift to the fund was tion of Miami, FL for charitable purposes in the comfort of cancer patients. in memory of Captain Steven F. Locke. the Carolinas. Worldteam Endowment Fund Children's Home Society Endowment James J. and Dorothy F. McCarthy Established in 1987 for the benefit of Fund Endowment Fund Worldteam to promote missionary outreach Established in 1978 for the benefit of the Established in 1990 with broad charitable of churches in the U.S. Children's Home Society in Mecklenburg purposes by Swimmer Insurance Agency to County. honor their service to the company. Organizational Endowments Community Health Services Endowment McMahon Memorial Fund American Red Cross, Greater Carolinas Fund Established in 1965 as an unrestricted fund Chapter Endowment Fund Established in 1979 for the benefit of the through the will of Mrs. Philip McMahon. Established in 1985 for the benefit of the Community Health Services. During her lifetime Mrs. McMahon was American Red Cross, Greater Carolinas Katherine B. Couch Endowment for The interested in beautification projects, Chapter. Oratorio Singers of Charlotte women's rights and social welfare. The Arthritis Patient Services Endowment Established in 1984 by Miss Couch for the Foundation follows Mrs. McMahon's Fund benefit of The Oratorio Singers of Charlotte. interests in the use of this fund. Established in 1980 for arthritis education, Council for Children Endowment Fund William F. Mulliss Endowment Fund research and patient support activities. Established in 1982 for the benefit of the Established in 1987 by the will of William F. Arts Endowment Fund Council for Children. Mulliss, who was the third president of the Established in 1975 for the benefit of the Crisis Assistance Ministry Endowment Foundation. The purpose of the fund is to Arts and Science Council to honor J. Fund assist with the medical needs of children. Walter Barr, one of the founders and the Established in 1981 for the benefit of the Myers Endowment Fund first president of the Arts Council. Crisis Assistance Ministry. Established in 1991 by Brevard S. and Bethlehem Center Endowment Fund Davidson Community Fund Beatrice W. Myers with broad charitable Established in 1990 to celebrate the 50th Established in 1979 for charitable needs in purposes. Anniversary of Bethlehem Center. Davidson, NC. 16 Diabetes Fund of the Community Health Iredell-Statesville Public Schools Established in 1977 for the benefit of Services Endowment Fund Endowment Fund Opera Carolina. Established in 1979 for the benefit of Established in 1991 by Chester and Maxine Parkinson Association of Mecklenburg Community Health Services to be used in Middlesworth for the benefit of the Iredell- County Endowment Fund diabetes education, research and patient Statesville Public Schools. Additional gifts Established in 1985 for the benefit of the support activities. from the public are encouraged. Parkinson Association of Mecklenburg Elon Homes for Children, Kennedy Kinder-Mourn Endowment Fund County, a division of Community Health Campus Endowment Fund Established in 1990 for the benefit of Services. Established in 1982 for the benefit of Elon Kinder-Mourn, which provides counseling Planned Parenthood of the Southern Homes for Children, Kennedy Campus in and support services to parents who have Piedmont and Carolina Mountains Charlotte. lost a child. Endowment Fund Florence Crittenton Services Endowment Lancaster County, SC Library Endowment Established in 1985 with the initial gift being Fund Fund made by the Blumenthal Foundation. Established in 1979 for the benefit of Established in 1988 to benefit the Lancaster Richmond County Hospice Florence Crittenton Services. County, SC public library. Established in 1990 for the benefit of Foundation Endowment Fund Life Enrichment Center Endowment Richmond County Hospice. Established in 1979 to assist with operations Fund Rotary Club of Statesville Endowment and grantmaking of the Foundation For The Established in 1987 to benefit the Life Fund Carolinas. Enrichment Center, an adult day care Established in 1991 for charitable projects of Friendship Trays Endowment Fund service in Shelby, NC. the Rotary Club in Statesville, NC. Established in 1980 for the benefit of Sam and Carolyn McMahon, Jr. Fund for St. Mark's Center Endowment Fund Friendship Trays, a meals-on-wheels program Community School of the Arts Established in 1984 for the benefit of St. for the elderly and homebound. Endowment Mark's Center, which provides services to Hoyt Galvin/Friends of the Library Trust Established in 1988 to benefit the Commu- mentally retarded children and adults. Established in 1980 for the benefit of the nity School of the Arts in Charlotte, NC. Salvation Army Endowment Fund Public Library of Charlotte and Mecklenburg Mecklenburg County Council, Boy Scouts Established in 1989 for the benefit of County to provide funds for special library of America, Endowment Fund Salvation Army programs in the greater acquisitions, activities, or scholarships for Established in 1982 for the benefit of the Charlotte area. which budgeted funds are not available. Mecklenburg County Council, Boy Scouts Science Museums of Charlotte Endowment Good Fellows Endowment Fund of America. The first gift to the fund was Fund Established in 1979 for the benefit of the made in memory of R. Michael Beck and Established in 1979 for the benefit of the Good Fellows Club, which provides financial Lori Pfann. Science Museums of Charlotte. assistance to residents of Mecklenburg Mecklenburg 4-H Endowment Fund Shepherd's Center of Charlotte County in need. Established in 1979 for the benefit of the Endowment Fund Mrs. A. J. Hagood Endowment Fund for Mecklenburg County 4-H. Established in 1987 for the benefit of the Bethlehem Center Metrolina Association for the Blind Shepherd's Center, which provides educa- Established in memory of Mrs. A. J. Hagood Endowment Fund tional opportunities and services to senior for the benefit of the Bethlehem Center. Established in 1980 for the benefit of the citizens. Julie Hargrave Library Fund Metrolina Association for the Blind. Spirit Square Scholars Established in 1986 in memory of Julie Mint Museum of Art Endowment Fund Established in 1986 to provide a summer Hargrave for the benefit of the Montclaire Established in 1977 as a permanent fund for program in the visual arts for talented Elementary School library in Charlotte, NC. the benefit of the Mint Museum of Art. students in the Charlotte-Mecklenburg Highlands of Roan Endowment Fund Dorothy L. Moline Endowment Fund School System. Established in 1988 by the Southern Established in 1981 in memory of Dorothy Teresa S. and Laura H. Thomas Fund Appalachian Highlands Conservancy to L. Moline for the benefit of the National Established in 1981 for the benefit of the help preserve the wilderness area around Kidney Foundation of North Carolina, Science Museums of Charlotte. The two Roan Mountain on the North Carolina/ Mecklenburg Chapter. sisters established this fund in memory of Tennessee border. Margaret Parker Moss Fund their aunts, Alice H. Wickersham and Alice Hornets' Nest Girl Scout Council Established in 1986 in memory of Margaret F. Hogans. Endowment Fund Parker Moss for the benefit of special Union County Community Arts Council Established in 1984 for the benefit of the programs of the Education Department of Established in 1990 for the benefit of Union Hornets' Nest Girl Scout Council. the Mint Museum of Art. County Community Arts Council. Hospice at Charlotte Endowment Fund Nevins Center Endowment Fund United Way of Central Carolinas Established in 1983 for the benefit of Established in 1983 for the benefit of the Endowment Fund Hospice at Charlotte. Nevins Center, which serves mentally Established in 1975 for the benefit of United Hospice of Cleveland County Endowment retarded and physically handicapped adults. Way of Central Carolinas. Fund North Carolina School of the Arts United Way of Cleveland County Fund Established in 1987 to benefit Hospice of Endowment Fund Established in 1985 for the benefit of United Cleveland County. Established in 1981 for the benefit of the Way of Cleveland County. Hospice of Union County Endowment North Carolina School of the Arts. Wing Haven Foundation Endowment Fund Fund North Mecklenburg Child Development Established in 1980 for the benefit of the Established in 1990 for the benefit of Association Endowment Fund Wing Haven Foundation, which operates a Hospice of Union County. Established in 1976 for the benefit of the bird and garden sanctuary in Charlotte. International House Endowment Fund North Mecklenburg Child Development Billy Wireman Professorship Endowment Established in 1984 for the benefit of Association in Davidson, NC. for Queens College International House. Opera Carolina Endowment Fund Established in 1988 in honor of Billy 17 Wireman, president of Queens College. patent agent or attorney. awards scholarships to undergraduate Augusta Wray Fund of the Community Charlotte Housing Authority Scholarship students studying law enforcement at CPCC Health Services Endowment Fund Fund and UNCC. Established in 1980, this fund benefits Established in 1983 to provide scholarships North Carolina League for Nursing Community Health Services for the to residents of Charlotte public housing Academic Scholarship Fund purposes outlined in the will of Augusta M. who wish to continue their education Established in 1989 to offer graduate Wray. beyond the secondary level. scholarships in nursing and related fields. WTVI Public Television Endowment Charlotte-Mecklenburg Schools Scholar- Mary Lynn Phillips Dance Scholarship Fund ship Incentive Fund Fund at Spirit Square Established in 1985 for the benefit of WTVI. Established in 1988 by a $1 million Established in 1983 in memory of Mary YMCA Endowment Fund anonymous gift to provide an incentive for Lynn Phillips to provide instructional Established in 1980 for the benefit of the disadvantaged, at-risk students to graduate scholarships to students of dance at Spirit Young Men's Christian Association of and pursue further education. Square Arts Center on the basis of need and Greater Charlotte. Lula Faye Clegg Memorial Scholarship talent. York County Hospice Fund Henry DeWitt Plyler Scholarship Fund Established in 1991 for the benefit of York Established in 1990 in honor of Lula Faye Established in 1989 to provide undergradu- County (SC) Hospice. Clegg, a teacher in the Charlotte- ate scholarships to Winthrop College for Youth Homes Endowment Fund Mecklenburg Schools for more than 40 students from Lancaster County, SC. Established in 1982 for the benefit of Youth years, by her former students. The fund Amy E. Ray Memorial Scholarship Fund Homes, which provides residential and provides scholarships in teaching at the Established in 1989 to provide an annual other services to older youth with emotional University of North Carolina at Charlotte. scholarship to a senior band student at or behavioral problems. Cole Scholarship Program Southpoint High School in Belmont, NC. YWCA Endowment Fund Established in 1989 to increase the number Rotary Scholarship Fund Established in 1983 for the benefit of the of Richmond County, NC high school Formerly a loan program placed with the Young Women's Christian Association of graduates who pursue post-secondary Foundation in 1979 by the Charlotte Rotary Charlotte. education. Club, this fund was converted to a scholar- Crowder Scholarship Fund ship fund in 1987. The purpose of the fund Scholarship Funds Established in 1986 by O.P. Crowder and is to provide scholarships for graduates of Nancy (Nan) M. Abell Scholarship Fund W. T. Crowder, Sr. to provide college Central Piedmont Community College who Established in 1991 to honor Nan Abell, a scholarships to children of employees of wish to obtain a bachelor's degree. Scholar- teacher in the Charlotte-Mecklenburg construction companies located in ships are awarded on the basis of merit, School System for 45 years, by one of her Mecklenburg County, with preference financial need and community service. former students, H. R. McCrorie. The fund being given to children of employees of the Wade H. Stroud, Jr./Charlotte- provides an annual scholarship to a senior at Crowder Construction Company. Mecklenburg Fraternal Order of Police Garinger High School. E. R. and Lillian B. Dimmette Scholarship Scholarship Fund Herb Adrian Memorial Scholarship Fund Fund Established in 1990 in memory of Charlotte Established in 1990 in memory of Herb Established in 1990 to provide college Police Captain Wade H. Stroud, Jr. to Adrian by the Charlotte Apartment scholarships to students from Mecklenburg, provide scholarships in law enforcement at Association for scholarships in the multi- Rowan and Wilkes counties. the University of North Carolina at family housing field. Richard Goolsby Scholarship Fund Charlotte. William Tasse Alexander Scholarship Established in 1987 by William and Martha Louise Thomas Scholarship Fund Fund DeBrule of Forest City, NC in honor of Established in 1986 with broad educational Established in 1983 to provide merit Richard Goolsby, a pioneer in the field of purposes. scholarships to Mecklenburg County, NC plastics, to provide scholarships to students Washburn Graphics Scholarship Fund residents for undergraduate studies primarily who have shown a career interest in the This fund, established in 1980, provides a in the field of education. This fund was plastics industry. scholarship to a graphic arts student at established through the will of Margery Lucille Finch Jones Presidential Scholar- Central Piedmont Community College. Alexander Thompson, a Charlotte- ship Fund Fred C. Wikoff, Jr. Scholarship Fund Mecklenburg teacher, in memory of her Established in 1979 for the Lucille Finch Established in 1991 to provide scholarships parents and grandparents, the William Tasse Jones Presidential Scholarship Program of to children of employees of Wikoff Color Alexanders. Queens College in Charlotte, NC. Corporation. George L. Bagby Scholarship Fund Lucille Finch Jones Endowment Fund Wilmore Scholarship Fund Established in 1990 to provide scholarships Established in 1988 to provides scholarships Established in 1991 to provide a college at the University of North Carolina at for male students at Queens College. scholarship to a student from the Wilmore Chapel Hill. Margaret H. Jones Scholarship Fund Neighborhood of Charlotte. Mr. and Mrs. James H. Black Voice of Established in 1987 by the will of Annie Democracy Scholarship Fund Lois Hyland in memory of her daughter, Established in 1987 to provide an annual Margaret H. Jones. This endowment scholarship to the North Carolina winner of provides an annual college scholarship for a the Voice of Democracy essay contest graduating senior at Myers Park High sponsored by the Veterans of Foreign Wars. School. Julian E. Carnes Scholarship Fund Law Enforcement Memorial Scholarship Established in 1989 to provide scholarships Fund to students preparing for a career in a Established in 1987 in memory of Charlotte technological field appropriate to meet the Police Officer Robert L. Smith and all other requirements of the U.S. Patent Office as a officers slain in the line of duty. This fund 18 1991 GRANTS Grants By Categories Howard University, Washington, DC, $5,400 Education $1,626,923 Institute for Research on Interrelation of Science & Human Services 1,578,450 Culture, Wilmington, NC, $13,952 Religion 851,145 Johnson C. Smith University, Charlotte, NC, $11,000 Arts 447,191 Lancaster County Library, Lancaster, SC, $2,899 Health & Medical Research 383,527 Lees-McRae College, Banner Elk, NC, $6,000 Senior Programs 160,377 Livingstone College, Salisbury, NC, $13,600 Environment & Historical Preservation 118,000 Meredith College, Raleigh, NC, $8,500 Youth Programs 40,224 Montreat-Anderson College, Montreat, NC, $2,000 Public & Civic Programs 15,735 Museum of York County, Rock Hill, SC, $4,000 North Carolina A & T State University, Total Grants $5,221,572 Greensboro, NC, $11,079 North Carolina Central University, Durham, NC, $10,168 North Carolina School of the Arts, Winston-Salem, NC, $9,227 Education North Carolina State University, Raleigh, NC, $41,741 Appalachian State University, Boone, NC, $2,500 North Carolina Textile Foundation, Raleigh, NC, $2,000 Appalachian State University Foundation, Oglethorpe University, Atlanta, GA, $3,000 Boone, NC, $16,000 Pfeiffer College, Misenheimer, NC, $14,500 Barber-Scotia College, Concord, NC, $11,800 Pope John Paul II Regional High School, Brevard College, Brevard, NC, $56,381 Boca Raton, FL, $2,000 Central Piedmont Community College, Providence Day School, Charlotte, NC, $12,000 Charlotte, NC, $3,339 Public Library of Charlotte-Mecklenburg, Central Piedmont Community College Foundation, Charlotte, NC, $4,000 Charlotte, NC, $2,000 Queens College, Charlotte, NC, $211,208 Charlotte Country Day School, Charlotte, NC, $77,690 Rándolph-Macon Woman's College, Lynchburg, VA, $100,000 Charlotte Housing Authority Scholarship Program, Research & Educational Trust Fund - Charlotte, NC, $8,585 Mortgage BankersAssociation of America, Charlotte Latin School, Charlotte, NC, $3,700 Washington, DC, $2,000 Charlotte-Mecklenburg Schools, Charlotte, NC, $2,500 Richmond Community College, Hamlet, NC, $38,418 Clemson University, Clemson, SC, $3,500 Richmond Community College Foundation, Clemson University Foundation, Clemson, SC, $5,000 Hamlet, NC, $6,750 College of Charleston Foundation, Charleston, SC, $10,100 Richmond County Schools, Hamlet, NC, $91,000 Converse College, Spartanburg, SC, $2,150 Richmond County Public Library System, Davidson College, Davidson, NC, $87,150 Rockingham, NC, $46,743 Duke University, Durham, NC, $9,663 Rock Hill School District Foundation, Rock Hill, SC, $2,700 ETV Endowment of South Carolina, Sandhills Community College, Pinehurst, NC, $7,800 Spartanburg, SC, $2,325 Science Museums of Charlotte, Charlotte, NC, $10,808 East Carolina University, Greenville, SC, $11,600 St. Andrews Presbyterian College, Laurinburg, NC, $35,000 Educational Foundation, Chapel Hill, NC, $8,350 Union College, Schenectady, NY, $3,000 Elon College, Elon College, NC, $5,000 University of North Carolina at Chapel Hill, Episcopal High School, Alexandria, VA, $11,000 Chapel Hill, NC, $38,178 Fayetteville State University, Fayetteville, NC, $27,900 University of North Carolina at Chapel Hill Florida Atlantic University Foundation, Foundation, Chapel Hill, NC, $253,000 Boca Raton, FL, $3,500 University of North Carolina at Charlotte, Georgia Tech Foundation, Atlanta, GA, $2,500 Charlotte, NC, $39,450 Greensboro College, Greensboro, NC, $10,000 University of North Carolina at Charlotte Athletic High Point College, High Point, NC, $2,610 Foundation, Charlotte, NC, $5,100 19 1991 GRANTS University of North Carolina at Charlotte Foundation, Holy Angels Nursery, Belmont, NC, $10,000 Charlotte, NC, $45,950 Hopespring, Charlotte, NC, $10,000 University of North Carolina at Greensboro, Hospice at Charlotte, Charlotte, NC, $7,400 Greensboro, NC, $2,200 International House, Charlotte, NC, $6,000 University of Virginia, Charlottesville, VA, $2,700 Kennedy Campus of Elon Homes for Children, WTVI, Charlotte, NC, $4,720 Charlotte, NC, $50,000 Wake Forest University, Winston-Salem, NC, $37,500 Kinder-Mourn, Charlotte, NC, $3,350 Washington & Lee University, Lexington, VA, $2,600 Loaves & Fishes, Charlotte, NC, $2,000 Washington College, Chestertown, MD, $5,000 Mecklenburg Council on Adolescent Pregnancy, Western Carolina University, Cullowhee, NC, $3,825 Charlotte, NC, $4,605 Winston-Salem State University, Winston-Salem, NC, $2,450 Mecklenburg Community Corrections, Charlotte, NC, $3,500 Winthrop College Foundation, Rock Hill, SC, $2,000 Metrolina Association for the Blind, Charlotte, NC, $2,100 Woodberry Forest School, Woodberry Forest, VA, $4,600 National Housing Endowment, Washington, DC, $10,000 York Technical College Foundation, Rock Hill, SC, $10,000 Nevins Center, Charlotte, NC, $8,882 Others (Less than $2,000 each) (72) $48,314 North Carolina Literacy Association, Raleigh, NC, $5,000 North Mecklenburg Child Development Association, Total $1,626,923 Davidson, NC, $8,850 Planned Parenthood of the Southern Piedmont and Carolina Mountains, Charlotte, NC, $20,094 Human Services REBOUND Charlotte Rehabilitation Center, A Child's Place, Charlotte, NC, $5,500 Charlotte, NC, $6,250 Advocates for Children in Court, Charlotte, NC, $15,000 Relatives, The, Charlotte, NC, $4,700 Alexander Children's Center, Charlotte, NC, $12,200 Richmond Christian Family Center, Rockingham, NC, $7,500 Amethyst Foundation, Charlotte, NC, $12,750 Richmond County Hospice, Rockingham, NC, $40,000 Bethlehem Center, Charlotte, NC, $4,200 Salvation Army, Charlotte, NC, $169,019 Carolina Computer Access Center, Charlotte, NC, $20,000 Salvation Army, Rock Hill, SC, $20,500 Charitable Outreach Society, Charlotte, NC, $2,000 Special Olympics, Raleigh, NC, $2,000 Child Care Resources, Charlotte, NC, $19,921 St. Francis Jobs Program, Charlotte, NC, $2,200 Community Based Alternatives, Rockingham, NC, $30,000 St. Luke's Lutheran Church Day Care, Charlotte, NC, $5,000 Community Foundation of Greater Washington, St. Mark's Center, Charlotte, NC, $6,500 Washington, DC, $25,000 United Way of Central Carolinas, Charlotte, NC, $392,602 Council on Foundations, Washington, DC, $3,000 United Way of Greater Greensboro, Greensboro, NC, $3,000 County of Richmond, Rockingham, NC, $15,167 United Way of Greater High Point, High Point, NC, $4,500 Crisis Assistance Ministry, Charlotte, NC, $127,493 United Way of Iredell/Statesville, Statesville, NC, $2,000 Crossnore School, Crossnore, NC, $30,250 United Way of Richmond County, Rockingham, NC, $63,430 Cued Speech Center, Raleigh, NC, $5,000 United Way of Stanly County, Albemarle, NC, $2,670 Energy Committed to Offenders, Charlotte, NC, $30,000 University of North Carolina at Charlotte Urban Family Support Center, Charlotte, NC, $27,900 Institute for Neighborhood Grants, Charlotte, NC, $29,517 First Baptist Church Day Care, Charlotte, NC, $20,500 University of North Carolina School of Social Work, Florence Crittenton Services, Charlotte, NC, $40,300 Chapel Hill, NC, $50,000 Gethsemane Enrichment Program, Charlotte, NC, $5,000 YMCA Blue Ridge Assembly, Black Mountain, NC, $14,502 Good Fellows Club, Charlotte, NC, $2,673 YMCA Charlotte, NC, $51,007 Goodwill Industries, Charlotte, NC, $5,000 YMCA Iredell/Statesville, Statesville, NC, $2,500 Gospel Chapel Parson of the Hills, Hickory, NC, $2,000 York County Hospice, Rock Hill, SC, $2,000 Grandfather Home for Children, Banner Elk, NC, $5,000 York Place, York, SC, $2,000 Habitat for Humanity of Charlotte, Charlotte, NC, $12,300 Others (less than $2000 each) (70) $43,118 Habitat for Humanity - Richmond County, Rockingham, NC, $22,000 Total $1,578,450 20 1991 GRANTS Religion St. John's United Methodist Church, Rock Hill, SC, $14,500 Avondale Presbyterian Church, Charlotte, NC, $3,500 St. Martin's Episcopal Church, Charlotte, NC, $11,300 Billy Graham Evangelistic Association, St. Mary's of the Hills Episcopal Church, Minneapolis, MN, $14,478 Blowing Rock, NC, $2,000 Broad Street United Methodist Church, St. Peter's Episcopal Church, Charlotte, NC, $8,680 Statesville, NC, $9,300 St. Peter's Episcopal Church, Greenville, SC, $3,000 Calvary Church, Charlotte, NC, $25,000 Tabernacle Church of Norfolk, Norfolk, VA, $10,000 Candlewyck Baptist Church, Charlotte, NC, $9,000 Temple Israel, Charlotte, NC, $7,332 Central United Methodist Church, Concord, NC, $26,000 Trinity Presbyterian Church, Charlotte, NC, $27,200 Central United Methodist Church, Shelby, NC, $6,473 United Methodist Foundation of Western North Charlotte Federation of Jewish Charities, Carolina, Charlotte, NC, $5,000 Charlotte, NC, $4,000 Wesley Foundation, Rock Hill, SC, $2,000 Charlotte Jewish Federation, Charlotte, NC, $17,609 Western NC Conference of the United Methodist Christ Episcopal Church, Charlotte, NC, $62,420 Church, Charlotte, NC, $7,948 Church of Jesus Christ of Latter Day Saints, Worldteam, Coral Gables, FL, $15,317 Charlotte, NC, $4,000 Others (less than $2,000 each) (43) $30,528 Columbia Bible College & Seminary, Columbia, SC, $37,124 Cove Presbyterian Church, Covesville, VA, $6,013 Total $851,145 Covenant Presbyterian Church, Charlotte, NC, $10,700 Davidson College Presbyterian Church, Davidson, NC, $8,300 Duke University Divinity School, Durham, NC, $7,500 Arts Episcopal Diocese of North Carolina, Raleigh, NC, $7,500 Arts and Science Council, Charlotte, NC, $55,949 First Presbyterian Church, Charlotte, NC, $20,800 Charlotte Children's Choir, Charlotte, NC, $2,100 First Presbyterian Church of Concord, Concord, NC, $4,953 Charlotte Symphony Orchestra, Charlotte, NC, $19,675 First United Methodist Church, Austell, GA, $32,350 Children's Theatre of Charlotte, Charlotte, NC, $5,800 First United Methodist Church, Charlotte, NC, $4,000 Community School of the Arts, Charlotte, NC, $4,387 Foundation of Charlotte Jewish Community, Festival in the Park, Charlotte, NC, $2,000 Charlotte, NC, $3,350 Mint Museum of Art, Charlotte, NC, $26,732 Foundry United Methodist Church, Washington, DC, $2,225 North Carolina Blumenthal Center for the Jewish Community Center, Charlotte, NC, $2,240 Performing Arts, Charlotte, NC, $290,559 Kanuga Conferences, Hendersonville, NC, $2,500 North Carolina Dance Theatre, Charlotte, NC, $2,000 Lausanne Committee for World Evangelism, Opera Carolina, Charlotte, NC, $2,802 Charlotte, NC, $2,000 Oratorio Singers of Charlotte, Charlotte, NC, $2,656 Ministries in Action, Coral Gables, FL, $2,800 Queens Table Projects, Charlotte, NC, $4,689 Myers Park Baptist Church, Charlotte, NC, $56,600 Spirit Square, Charlotte, NC, $13,712 Myers Park Presbyterian Church, Charlotte, NC, $167,650 Union County Community Arts Council, Myers Park United Methodist Church, Charlotte, NC, $32,755 Monroe, NC, $3,000 Old Cutler Presbyterian Church, Miami, FL, $3,400 Others (Less than $2,000 each) (17) $11,130 Park Road Baptist Church, Charlotte, NC, $16,000 Providence United Methodist Church, Charlotte, NC, $32,500 Total $447,191 Sardis Presbyterian Church, Charlotte, NC, $9,000 Selwyn Avenue Presbyterian Church, Charlotte, NC, $6,300 St. Christopher's Episcopal Church, High Point, NC, $4,000 St. John's Baptist Church, Charlotte, NC, $11,000 Health & Medical Research St. John's Episcopal Church, Charlotte, NC, $13,500 American Red Cross, Charlotte, NC, $25,100 St. John's House, Durham, NC, $7,500 American Red Cross, Rock Hill, SC, $5,500 St. John's Lutheran Church, Statesville, NC, $10,000 Cannon Memorial Hospital, Banner Elk, NC, $3,100 21 1991 GRANTS Carolinas Medical Center, Charlotte, NC, $5,000 Nation Ford Land Trust, Fort Mill, SC, $5,000 CFIDS Association, Charlotte, NC, $5,150 North Carolina Museum of History, Raleigh, NC, $2,000 Charlotte-Mecklenburg Hospital Authority Foundation, North Carolina Outward Bound School, Charlotte, NC, $20,906 Morganton, NC, $12,100 Community Health Services in Mecklenburg/Union North Carolina Zoological Society, Asheboro, NC, $5,000 Counties, Charlotte, NC, $51,352 Ocean Isle Museum Foundation, Duke University Medical Center, Durham, NC, $5,292 Ocean Isle Beach, NC, $15,500 Heineman Medical Research Center, Charlotte, NC, $25,000 Palmetto Conservation Foundation, Columbia, SC, $7,000 Hospice at Charlotte, Charlotte, NC, $6,241 Sierra Club Foundation, San Francisco, CA, $30,000 Hospice of Rowan County, Salisbury, NC, $28,906 South Carolina Wildlife Federation, Columbia, SC, $5,000 Hospice of York County, Rock Hill, SC, $3,357 Southern Appalachian Highlands Conservancy, House of Mercy, Belmont, NC, $6,718 Johnson City, TN, $5,000 Lineberger Cancer Research Center, Chapel Hill, NC, $5,500 Spirit of Kitty Hawk, Raleigh, NC, $2,000 Mecklenburg County Health Department, Wilderness Society, Washington, DC, $2,500 Charlotte, NC, $10,000 Wing Haven Foundation, Charlotte, NC, $3,900 Mercy Hospital Foundation, Charlotte, NC, $8,650 Others (less than $2,000 each) (15) $9,500 Metrolina AIDS Project, Charlotte, NC, $39,024 North Carolina Memorial Hospital, Chapel Hill, NC, $50,000 Total $118,000 Presbyterian Hospital Foundation, Charlotte, NC, $8,150 Rex Hospital Foundation, Raleigh, NC, $6,000 Rowan County Health Department, Salisbury, NC, $8,880 Youth United Family Services, Charlotte, NC, $15,000 Boy Scouts of America Mecklenburg County United Way of Central Carolinas, Charlotte, NC, $11,336 Council, Charlotte, NC, $ 18,607 University of North Carolina at Charlotte, YMCA Camp Thunderbird, Clover, SC, $2,700 Charlotte, NC, $3,600 YMCA Daytona Beach, Daytona Beach, FL, $2,000 University of South Carolina, Columbia, SC, $5,000 YMCA Johnston Memorial Branch, Others (less than $2,000 each) (30) $20,765 Charlotte, NC, $5,000 Others (less than $2,000 each) (13) $11,917 Total $383,527 Total $40,224 Senior Programs First Assembly of God Living Center, Concord, NC, $2,000 Public & Civic Programs Friendship Trays, Charlotte, NC, $32,599 Central Carolina Citizens Forum, Charlotte, NC, $3,518 Leadership Charlotte, Charlotte, NC, $3,000 Charlotte Chamber Foundation, Charlotte, NC, $4,000 Methodist Home, Charlotte, NC, $100,500 City of Burlington, Burlington, NC, $3,000 Richmond County Council on Aging, People For the American Way, Raleigh, NC, $3,000 Rockingham, NC, $9,343 Others (less than $2,000 each) (4) $2,217 Shepherd's Center of Charlotte, Charlotte, NC, $6,435 Others (less than $2,000 each) (8) $6,500 Total $15,735 Total $160,377 Total 1991 Grants Approved $5,221,572 Environment & Historical Preservation Friends of Town Creek Indian Mound, Mt Gilead, NC, $2,500 Hezekiah Alexander Foundation, Charlotte, NC, $6,000 Note: Grant figures for organizations are cumulative and may Historic Rosedale, Charlotte, NC, $5,000 represent more than one gift. 22 STAFF William L. Spencer, President Gordon Berg, President Emeritus Stephany A. Criss, Administrative Assistant Distributions and Grants Marilyn M. Bradbury, Vice President Lisa F. Eaves, Program Officer for Scholarships and Grants Barbara L. Higgins, Program Assistant Communications and Development Deborah H. Barringer, Development Director George J. Creswell, Director of Agency Endowments Finance and Administration Judy L. Kerns, Business Manager Debra S. Watt, Accountant Erin L. Puthoff, Accounting Assistant Foster NC Betty R. Bromley, Secretary Karen H. Coley, Secretary Barbara R. Couch, Receptionist Carounds Norter ok reque. FOUNDATION FOR THECAROLINAS 301 South Brevard Street Charlotte, NC 28202 704-376-9541 Federal Tax ID # 56-6047886 1992 ECONOMIC ALMANAC April 1992 Price $2.95 BUSINESS NORTH CAROLINA GETTING REAL IN THE '90s Laying to rest myths that molded our state's past and raising the issues that will shape its economic future. 04 0 7447075238 7 ORIGINAL COMPOSITION An exhilarating masterpiece. Carillon. Where elegant architecture and world-renowned artwork become integral components of the structure and its surroundings. A world class landmark for corporate visionaries, at a distinctive address Carillon. CARILLON For leasing information, please contact: Hesta Properties, Inc. 227 West Trade Street, Suite 2320, Charlotte, North Carolina 28202, (704) 343-9334 INSIGHT. IDEAS. WITHIN THE INVESTMENT COMMUNITY, THERE ARE, YOU'LL HAVE NOTICED, TWO TYPES OF INVESTMENT ADVISERS. THOSE WHO ARE keenly AWARE OF THE SUBTLETIES OF KNOWLEDGE. INVESTMENT MANAGEMENT. AND THOSE WHO ARE NOT. 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For retail leasing information, call Will Whitley of Charter Properties: 704/377-4172 APRIL 1992 BUSINESS NORTH CAROLINA ECONOMIC ALMANAC DEPARTMENTS ECONOMIC ALMANAC 18 The Dream Machines 5 Running In Place 38 By Suzanne Wittebort Up Front By Luann Nelson and Metrolina and the Triangle David Mildenberg turned their visions into growth Second cities don't want to be other regions only dream about. also-rans in the economic race. 9 Tar Heel Tattler 62 Money Matters 28 Three's 66 Blood, Toil, A Crowd Driving Ambition Tears And Sweat 48 By David Bailey By Jane Ruffin Greensboro, High Point and The Hamlet fire shows what's Winston-Salem are trying to wrong with economies based on make the Triad pull together. the low-skilled and poorly paid. 69 Expense-Account Dining 72 People COVER Design by Sharen Swintek AN OCEANFRONT MEETING AT THE WESTIN RESORT BUSINESS NORTH CAROLINA Is CLOSER THAN YOU THINK. Volume 12, Number 4 EDITOR AND PUBLISHER David Kinney MANAGING EDITOR David Mildenberg SENIOR EDITORS David Bailey, Suzanne Wittebort ASSOCIATE EDITOR Lisa Davis CONTRIBUTING EDITOR Luann Nelson PRODUCTION DIRECTOR Moira Johnson NEW YORK Y ou don't have to go far to find DETROIT ASSOCIATE ART DIRECTOR CLEVELAND PHILADELPHIA Sharen Swintek the best meetings destination on CHICAGO PITTSBURGH GRAPHIC DESIGNER the East Coast. With 36 flights CINCINNATI WASHINGTON Linda Cable daily into our two area airports, The RALEIGH-DURHAM Westin Resort, Hilton Head Island, is ASSOCIATE PUBLISHER/ CHARLOTTE SALES AND MARKETING easy to reach from almost any major ATLANTA Glenn Benton CHARLESTON U.S. city. BIRMINGHAM SAVANNAHO HILTON HEAD ADVERTISING SALES MANAGER Overlooking the Atlantic Ocean, ISLAND Mary Marchman The Westin Resort is one of only REGIONAL SALES MANAGERS 2 AAA Five Diamond-rated Resorts on the East Coast. With 410 spa- Rosemary Schrader, Alex Winstead cious guest rooms, a 13,200-square-foot Grand Ballroom and ADVERTISING COORDINATOR Deborah L. Tremmel professional Conference Services Staff. Plus championship golf, ADVERTISING ASSISTANT award-winning tennis and miles of glorious beach. Donna Gocke Call toll-free, direct to our sales office, 1-800-999-4975, CIRCULATION MANAGER Monday through Friday, 8:30 a.m. to 5:00 p.m. Eastern time zone or Judy Pagani at (803) 681-4000. CIRCULATION ASSISTANT Enchanting Place Southern Grace E. Bullard CONTROLLER Julie Dula ADMINISTRATIVE ASSISTANT Shirlie Thompson SALES OFFICES Charlotte (704) 523-6987 Triangle (919) 954-4830 Triad (919) 725-6987 Northeast U.S. D.L. Gale and Co. (212) 772-0606 BUSINESS NORTH CAROLINA (ISSN 0279-4276) is published monthly by Business North Carolina, a division of The News and Observer Publishing Co., at 5435 Seventy-Seven Center Drive, Suite 50, Charlotte, N.C. 28217. Telephone: (704) 523-6987. All contents copyright © by The News and Observer Publishing Co. Subscription rate: 1 year, $26; 2 years, $42. For change of address, send mailing label and allow six to eight weeks. Second-class postage paid at Charlotte, N.C., and additional offices. POSTMASTER: Send address changes to BUSINESS NORTH CAROLINA, 5435 Seventy-Seven Center Drive, Suite 50, Charlotte, N.C. 28217. THE WESTIN RESORT WESTIN Port Royal Plantation, Two Grasslawn Avenue Hilton Head Island, South Carolina 29928 Resorts BP BPA BUSINESS / NORTH CAROLINA 4 UP FRONT Time for a reality check orth Carolina is a large and growing urban state public policy, it built a house upon the sand. N of many places. By national measures we are a The 1980s - one of the greatest periods state of small cities and towns. And we are a of economic expansion the state has ever state with diverse scenic and natural riches. experienced - did not bring balance but We want to live in dispersed places and we sent the scales swinging wildly. For the most want it to stay that way. We want opportunities part, the big cities moved far ahead while for jobs and a better life style to be found in the rural areas, despite repeated efforts to many places, not just a few. We want to choose amplify the boom into the boonies, fell where to live, not be forced to move away in farther behind. search of a job or a higher paying job. And we Now, well into the '90s with a new want to preserve our natural riches, our agricul- century just around the corner, we must tural traditions and the small, more livable scale come to grips with what has happened, of our cities and towns. wake up to where we have been and where A Balanced Growth Policy for North we're going. Our efforts to share the wealth, Carolina: A Proposal for Public Discussion, to spread it all around, are in their own way June 1978 as doomed as those of the apparatchiks to create a classless society in Eastern Europe. Nice sentiments, which I among many, That is not to say there was not good maybe most, North Carolinians hold dear reason, beyond simple political pragmatism, and cleave to, just as we do that this is a to try to balance growth across the state. But place "where the weak grow strong and the we must open our eyes to what we have strong grow great." But as a blueprint for done and see how to do the most good for the most people. And to that end, we must destroy some of our most treasured myths. 1992 ECONOMIC ALMANAC "I hope I have a little understanding of BUSINESS North Carolina, but I am not sure I know who the North Carolinians are," Jonathan NORTH CAROLINA Daniels wrote in Tar Heels. "Undoubtedly they are colored folk and white folk. They GETTING are native in an ancient sense. Most of them are still rural or in small almost rural towns. REAL There may be more energy in the Piedmont hills than in the lowlands, and more money IN THE '90s in pants pockets, too. But the east in a wide neighborliness has at least as much pleasure if not as much profit. Poverty is not pleasant Laying to rest myths that molded our state's past and raising the issues that will shape its economic future. east or west. And east and west, though they sometimes forget it, the rich are flung up from the same stock which has also pro- duced so many of the poor. APRIL 1992 5 UP FRONT "From Currituck to Cherokee, as our all- strategy since the 1880s has been low wages, inclusive orators say, the differences be- low taxes and low environmental controls. tween regions and people are not enough to These were aimed at attracting Northern destroy the similarity in them as the people industry. That was a successful strategy for of one place in old America where the past 100 years but the worst possible strategy for in blood unaltered has produced a present the global age. It's exactly a Third World of plain, strong people out of plain, strong strategy." stock." North Carolina has led the nation in The book was published more than 50 rural non-farm employment; many of us years ago, but that is the way so many of us live in the country and work in nearby mills still picture ourselves. The truth is, we are and factories. It's a way of life we have long no longer a rural state. The 1990 Census cherished. But the decline of the textile showed that more than half of us live in industry — along with the projected ascen- what the government classifies as urban dancy of the service sector over manufactur- areas. It is a change that has come quickly, ing - casts a shadow over the viability of perhaps too rapidly for many to grasp. In this dispersed urbanization. Still, we 1950, only one of three Tar Heels was an continue to spread asphalt throughout the urban dweller. hinterlands in hopes of luring here a plant, "Traditionally, Carolina was rural and there a plant, everywhere a plant plant fragmented," notes Michael Gallis, an Such efforts would be laudable had we architect and fellow at UNC-Charlotte's unlimited means, but promising every Urban Institute. "The Southern economic North Carolinian, no matter where he or she TREND The state's 25 largest cities Change 1980 1990 from 1980 1 Charlotte 315,474 1 Charlotte 395,934 25.5% 2 Greensboro 155,642 2 Raleigh 207,951 38.4 3 Raleigh 150,255 3 Greensboro 183,521 17.9 4 Winston-Salem 131,850 4 Winston-Salem 143,485 8.8 5 Durham 101,149 5 Durham 136,611 35.1 6 High Point 63,479 6 Fayetteville 75,695 27.2 7 Fayetteville 59,507 7 High Point 69,496 9.5 8 Asheville 54,022 8 Asheville 61,607 14.0 9 Gastonia 47,333 9 Gastonia 54,732 15.6 10 Wilmington 44,000 10 Wilmington 55,530 26.2 11 Rocky Mount 41,526 11 Rocky Mount 48,997 18.0 12 Burlington 37,266 12 Greenville 44,972 25.8 13 Greenville 35,740 13 Cary 43,858 101.5 14 Wilson 34,424 14 Goldsboro 40,709 27.7 15 Chapel Hill 32,421 15 Burlington 39,498 6.0 16 Goldsboro 31,871 16 Chapel Hill 38,719 19.4 17 Kannapolis 30,303 17 Wilson 36,930 7.3 18 Kinston 25,234 18 Jacksonville 30,013 64.4 19 Salisbury 22,677 19 Kannapolis 29,696 (2.0) 20 Cary 21,763 20 Hickory 28,301 36.3 21 Hickory 20,757 21 Concord 27,347 61.4 22 Statesville* 18,622 22 Kinston 25,295 0.2 23 Jacksonville 18,259 23 Salisbury 23,087 1.8 24 Lumberton 18,241 24 Havelock 20,268 14.4 25 Havelock 17,718 25 Lumberton 18,601 2.0 * Statesville's 1990 population was 17,567, 5.7% less than 1980. BUSINESS/ NORTH CAROLINA 6 UPFRONT TREND The rise of the city-state Metrolina Triangle Triad Second Tier lives, a four-lane, limited-access highway three major cities of the Triad continue to within hollering distance carries a high eye their neighbors warily, still uncomfort- price: We can't do that and build the roads able that their fortunes are bound together. needed for workers to commute where the Then there are what we call the second tier, jobs are and will be- in and around the each seeking to find and to exploit an cities. independent identity. "We need to concentrate our resources," And what about the rest? What does the Gallis notes. "We are making many deci- reality of the 1990s and beyond hold for sions on a political basis that don't contrib- them? Does this new world order within our ute to the development of the area. For state consign North Carolina outside the example, the State Transportation Improve- realm of the city-states to a fate similar to ment Program gives the same amount — the west of Ireland? $500,000 - to the Charlotte and Raleigh/ Simply put, no. We know that in reduc- Durham airports. The Charlotte airport is ing things to their most common denomina- twice as big! You have to relate investment tors we risk generalizing too much, of to results, not political power." creating new myths to replace the old. Each Throughout our history, no city has section of our state has its strengths as well dominated our state. None does today. But as weaknesses. And though we cannot halt the global age has brought with it a new change, we can direct it to some degree. But phenomenon, the rise of the city-state. only if we wake up and stop dreaming "Land-based empires are no more," Gallis about what was, or might have been, and says. "The new empires are economic recognize reality for what it is. empires, and they are the cities. The Japa- As David Orr, senior vice president for nese are the first strategic thinkers to realize economic research at First Union National this. It's not territory, but dominance of Bank, says, "Cities and countries either rise network." or fall. It's like stepping on a treadmill. You Like it or not, we are witnessing the either keep going or you fall off. If you metropolitanization of North Carolina, as stopped being aggressive, you wouldn't stay our small, traditional cities are engulfed into on a peaceful plateau. You'd go backwards." regional economies. Metrolina, with Char- lotte its dominant urban core and extending into 13 counties in two states around it, is the most advanced. Raleigh and Durham in the Triangle and, to a greater degree, the David Kinney APRIL1992 7 Charlotte is 49 miles away, the Triad It is said that the Uwbarries are 48 miles, the Triangle 95 miles. North America's oldest mountains. Dominion Lands, Inc., General Partner East West Partners, Managing Company And to think it's just a stone's throw away. Amidst the natural splendor of Badin Lake and the Uwharrie National Forest, you'll find a Tom Fazio golf course, a pool, tennis courts, homes built to the most exacting standards, and more. All at Uwharrie Point, a year round, lake home retreat. And all just an hour or SO from North Carolina's major cities. All of which gives you the unique opportunity to get away from it all, right in the middle of it all. For more information, call 1-800-252-1005. And come to Uwharrie Point. Think of it as a piece of heaven on earth that's right around the corner. Uwharrie Point The Tom Fazio golf course Uwbarrie Point will be built with respect will be one of the Southeast's finest. for the region's people and environment. TAR HEEL TATTLER much the things we don't know that get us in trouble. It's the things we Lies, damned lies know that ain't so." and statistics Are seers nearsighted? A People just can't help betting on the home team, and some say loy- alty may color economic forecasting. n economist was in the each of the state's 100 counties. For example, projections for audience recently when a speaker Interpretation of data is crucial. North Carolina by UNC-Greensboro dropped a statistical bombshell: Here's one example: Graham finance Professor Donald Jud are Greensboro's population, he said, County posted $9,140 in per capita generally sunnier than those con- grew by only 1% between 1980 and income in 1989. That's not a lot, but cocted by Lexington, Mass.-based 1990. That's true, sort of. "What he in raw numbers, it's 46.1% more DRI/McGraw Hill. didn't tell the audience, what he than in 1980. The discrepancy isn't unusual, had taken for granted," the econo- Still, purchasing power in 1989 says Rosalind Greenstein, a senior mist says, "was that the 1% was the wasn't what it was in 1980. Using economist at DRI. "We find that average annual growth rate, not an the Consumer Price Index to adjust locally based economists and absolute change" of 1990 over 1980. for inflation, Graham's real per institutions are often more optimis- How many left with the impres- capita income actually dropped tic," she says. DRI fits each state into sion that Greensboro is barely over the nine years, by 2.6%. So the a national model to ensure that the growing, the economist wondered, CPI has been used throughout the sum of the parts can't grow faster when it's growing at just about the issue to adjust most measures of than the whole. Though DRI is not state average? growth involving money. pessimistic compared with other That's the risk with statistics. Sometimes interpreting data can national forecasters, bullish Charlot- They will always tell you some- be as easy as indexing dollar figures teans recently berated Greenstein for thing, but it's not always the truth. or comparing growth rates with the DRI's alleged gloominess. Un- This issue is packed with num- actual growth. But it's not always so daunted, she still insists that "state bers supplied by the data center at easy to figure out if the numbers are models can be overly optimistic." the N.C. Office of State Planning. telling you what you think they are. Counters Jud, "I don't think I Our editors have used them to As 19th-century humorist have any political bias." He took the draw an economic portrait of Artemus Ward put it, "It ain't so U.S. Department of Commerce projections and factored in how TREND North Carolina's growth rate in recent years began to converge with Inner vision the national average, after far Projected average annual growth rates, 1990-2000 outperforming it in the '70s. Still, he admits, "forecasting 10 years out is Employment Real per capita income absolute guesswork. All the serious problems we worried about in 1980 Metropolitan DRI/ UNCG's DRI/ UNCG's Statistical Area McGraw Hill Jud McGraw Hill Jud* inflation, oil - didn't happen." Charlotte 1.5% 2.5% 1.0% 1.5% Greensboro 0.9 1.8 0.8 1.5 No longer cheap, Raleigh/Durham 1.8 2.9 1.9 1.8 still not steep North Carolina 1.2 2.0 0.8 1.5 United States 1.2 0.9 1.1 1.2 North Carolinians have long counted a low cost of living as an * Figures are for 1989-2000 immutable natural resource, like the APRIL 1992 9 TAR HEEL TATTLER TREND seashore and the mountains. Now, est in McDowell County, Gastonia however, many state residents are and Fayetteville. Living it up paying just about the national Costs in North Carolina still look Cost-of-living composite index average for basic living expenses. good compared with many places. According to the American The cost of living here remains less Dare County 111.4 Chamber of Commerce Researchers Chapel Hill 106.9 than half that of New York City, the Charlotte 100.1 Association, which indexes the cost highest in the country. Average 100.0 of living for 304 U.S. cities, towns Fayetteville 99.6 Greensboro and rural areas, Charlotteans paid a 98.9 Things look up with Winston-Salem 98.3 smidge more than the national the Wright stuff Raleigh/Durham 96.4 average in third quarter 1991, while Greenville 96.2 Hickory 95.8 residents of the Triad and Triangle Last year - 88 years after the Burlington 93.7 got off a little bit cheaper. The major Wright brothers inaugurated Marion/McDowell County 91.0 exceptions were Dare County, where aviation in North Carolina and the Gastonia 89.5 costs were 11.4% higher than the world - 14.6 million passengers New York City 213.3 U.S. mean, and Chapel Hill, which boarded planes at North Carolina's Washington 131.7 was about 7% higher. Among the 12 six biggest airports. That's more Los Angeles 124.6 Miami 112.2 North Carolina locations participat- than double the state's population Seattle 111.9 ing, Gastonia was the place to go to - a reflection of some mighty save, with costs 10.5% below the frequent fliers and of Charlotte's 100 is average of 304 reporting national average. and Raleigh/Durham's status as U.S. cities and regions. Housing was priciest in coastal hubs for connecting flights. Figures are for third quarter 1991. Dare County at 38.2% above the In absolute numbers, Charlotte Source: American Chamber of national average, followed by served far and away the most Commerce Researchers Association Chapel Hill at 19.8%; it was cheap- passengers, with 8.4 million board- ings. RDU followed with 4.7 mil- TREND lion, Piedmont Triad with 854,500 Fight for flight and Asheville with 261,740. But growth trajectories for the Index of growth in passenger boardings since 1982 airports over the decade tell an even more interesting story. Boardings at Airports Charlotte, first named a hub by 500 Raleigh/Durham Piedmont Aviation in 1979, in- creased steadily and inexorably Charlotte throughout the decade, fueled by 400 Wilmington the city's explosive growth. Boardings grew more slowly at Asheville RDU until it began operating as a Fayetteville hub for American Airlines in 1987, when boardings really took off, last 300 Piedmont Triad year tripling 1986's level. Boardings at Piedmont Triad peaked in 1985 at 1.1 million and have trailed off since. 200 Asheville reports its slight decline in boardings last year was due to the Gulf war and uncertainty over gasoline prices, which discour- 100 1982 1984 1986 1988 1990 aged mountain-bound tourists. Fayetteville, on the other hand, BUSINESS / NORTH CAROLINA 10 TREND Population 1980 1990 Change 1980 1990 Change Metrolina 995,782 1,175,292 18.0% Duplin 40,952 39,995 (2.3)% Cabarrus 85,895 98,935 15.2 Franklin 30,055 36,414 21.2 Gaston 162,568 175,093 7.7 Gates 8,875 9,305 4.9 Iredell 82,538 92,931 12.6 Granville 34,043 38,345 12.6 Lincoln 42,372 50,319 18.8 Greene 16,117 15,384 (4.6) Mecklenburg 404,270 511,433 26.5 Halifax 55,076 55,516 0.8 Rowan 99,186 110,605 11.5 Harnett 59,570 67,822 13.9 Stanly 48,517 51,765 6.7 Hertford 23,368 22,523 (3.6) Union 70,436 84,211 19.6 Hoke 20,383 22,856 12.1 Hyde 5,873 5,411 (7.9) Triangle 671,451 860,505 28.2 Jones 9,705 9,414 (3.0) Chatham 33,415 38,759 16.0 Lenoir 59,819 57,274 (4.3) Durham 152,235 181,835 19.4 Martin 25,948 25,078 (3.4) Johnston 70,599 81,306 15.2 Montgomery 22,469 23,346 3.9 Lee 36,718 41,374 12.7 Moore 50,505 59,013 16.9 Orange 77,055 93,851 21.8 Northampton 22,195 20,798 (6.3) Wake 301,429 423,380 40.5 Onslow 112,784 149,838 32.9 Pamlico 10,398 11,372 9.4 Triad 1,114,343 1,218,765 9.4 Pasquotank 28,462 31,298 10.0 Alamance 99,319 108,213 9.0 Pender 22,262 28,855 29.6 Caswell 20,705 20,693 (0.1) Perquimans 9,486 10,447 10.1 Davidson 113,162 126,677 11.9 Person 29,164 30,180 3.5 Davie 24,599 27,859 13.3 Richmond 45,161 44,518 (1.4) Forsyth 243,704 265,878 9.1 Robeson 101,610 105,179 3.5 Guilford 317,154 347,420 9.5 Sampson 49,687 47,297 (4.8) Randolph 91,300 106,546 16.7 Scotland 32,273 33,754 4.6 Rockingham 83,426 86,064 3.2 Tyrrell 3,975 3,856 (3.0) Stokes 33,086 37,223 12.5 Vance 36,748 38,892 5.8 Surry 59,449 61,704 3.8 Warren 16,232 17,265 6.4 Yadkin 28,439 30,488 7.2 Washington 14,801 13,997 (5.4) Wayne 97,054 104,666 7.8 Second-tier 1,092,022 1,211,041 10.9 Buncombe 160,934 174,821 8.6 West 552,126 577,685 4.6 Burke 72,504 75,744 4.5 Alexander 24,999 27,544 10.2 Caldwell 67,746 70,709 4.4 Alleghany 9,587 9,590 0.0 Catawba 105,208 118,412 12.6 Ashe 22,325 22,209 (0.5) Cumberland 247,160 274,566 11.1 Avery 14,409 14,867 3.2 Edgecombe 55,988 56,558 1.0 Cherokee 18,933 20,170 6.5 Henderson 58,580 69,285 18.3 Clay 6,619 7,155 8.1 Nash 67,153 76,677 14.2 Cleveland 83,435 84,714 1.5 New Hanover 103,471 120,284 16.3 Graham 7,217 7,196 (0.3) Pitt 90,146 107,924 19.7 Haywood 46,495 46,942 1.0 Wilson 63,132 66,061 4.6 Jackson 25,811 26,846 4.0 Macon 20,178 23,499 16.5 East 1,454,371 1,585,349 9.0 Madison 16,827 16,953 0.8 Anson 25,649 23,474 (8.5) McDowell 35,135 35,681 1.6 Beaufort 40,355 42,283 4.8 Mitchell 14,428 14,433 0.0 Bertie 21,024 20,388 (3.0) Polk 12,984 14,416 11.0 Bladen 30,491 28,663 (6.0) Rutherford 53,787 56,918 5.8 Brunswick 35,777 50,985 42.5 Swain 10,283 11,268 9.6 Camden 5,829 5,904 1.3 Transylvania 23,417 25,520 9.0 Carteret 41,092 52,556 27.9 Watauga 31,666 36,952 16.7 Chowan 12,558 13,506 7.6 Wilkes 58,657 59,393 1.3 Columbus 51,037 49,587 (2.8) Yancey 14,934 15,419 3.3 Craven 71,043 81,613 14.9 Currituck 11,089 13,736 23.9 North Carolina 5,880,095 6,628,637 12.7 Dare 13,377 22,746 70.0 United States 226,549,448 248,709,873 9.8 APRIL 1992 11 TAR HEEL TATTLER TREND Employment 1980 1990 Change 1980 1990 Change Metrolina 506,370 630,664 24.6% Duplin 16,370 21,433 30.9% Cabarrus 39,180 54,281 38.5 Franklin 10,860 17,865 64.5 Gaston 88,120 97,242 10.4 Gates 2,980 3,707 24.4 Iredell 37,050 50,245 35.6 Granville 14,790 19,378 31.0 Lincoln 18,050 26,470 46.7 Greene 7,700 8,575 11.4 Mecklenburg 219,140 274,268 25.2 Halifax 20,640 22,082 7.0 Rowan 45,240 57,315 26.7 Harnett 24,120 27,924 15.8 Stanly 21,440 25,736 20.0 Hertford 11,360 8,527 (24.9) Union 38,150 45,107 18.2 Hoke 6,960 9,721 39.7 Hyde 2,830 2,008 (29.1) Triangle 356,500 465,347 30.5 Jones 3,670 4,424 20.5 Chatham 15,050 19,175 27.4 Lenoir 27,420 27,719 1.1 Durham 83,750 100,285 19.7 Martin 11,320 10,789 (4.7) Johnston 32,850 36,729 11.8 Montgomery 10,240 11,643 13.7 Lee 17,440 19,064 9.3 Moore 22,790 30,069 31.9 Orange 42,240 51,647 22.3 Northampton 7,710 7,128 (7.6) Wake 165,170 238,447 44.4 Onslow 24,700 37,603 52.2 Pamlico 3,840 4,499 17.2 Triad 534,680 643,589 20.4 Pasquotank 11,560 12,569 8.7 Alamance 45,560 63,435 39.2 Pender 8,410 14,704 74.8 Caswell 7,230 9,132 26.3 Perquimans 2,920 3,871 32.6 Davidson 55,780 68,336 22.5 Person 12,590 14,491 15.1 Davie 9,880 14,161 43.3 Richmond 16,930 21,318 25.9 Forsyth 120,130 141,343 17.7 Robeson 41,410 42,642 3.0 Guilford 156,340 184,819 18.2 Sampson 22,700 22,296 (1.8) Randolph 45,220 59,513 31.6 Scotland 13,770 14,248 3.5 Rockingham 37,480 38,337 2.3 Tyrrell 1,250 1,270 1.6 Stokes 16,310 17,908 9.8 Vance 16,100 17,360 7.8 Surry 26,730 31,060 16.2 Warren 5,410 7,430 37.3 Yadkin 14,020 15,545 10.9 Washington 6,460 5,322 (17.6) Second-tier Wayne 36,350 43,773 20.4 456,360 574,056 25.8 Buncombe 74,080 89,172 20.4 West 243,290 277,348 14.0 Burke 30,230 42,108 39.3 Alexander 12,750 15,610 22.4 Caldwell 30,470 36,175 18.7 Alleghany 3,720 4,799 29.0 Catawba 53,690 68,013 26.7 Ashe 8,800 10,796 22.7 Cumberland 65,320 89,383 36.8 Avery 5,520 8,515 54.3 Edgecombe 27,000 28,300 4.8 Cherokee 6,550 8,524 30.1 Henderson 24,520 33,508 36.7 Clay 2,290 2,892 26.3 Nash 32,380 35,535 9.7 Cleveland 37,130 41,500 11.8 New Hanover 44,540 62,234 39.7 Graham 3,720 1,876 (49.6) Pitt 43,050 56,822 32.0 Haywood 17,230 20,217 17.3 Wilson 31,080 32,806 5.6 Jackson 12,570 11,939 (5.0) East Macon 7,740 7,180 (7.2) 574,800 670,864 16.7 Madison 18,660 15,825 (15.2) Anson 11,760 11,523 (2.0) McDowell 7,780 11,397 46.5 Beaufort 19,620 18,721 (4.6) Mitchell 6,140 6,547 6.6 Bertie 8,490 8,200 (3.4) Polk 5,180 5,614 8.4 Bladen 12,420 11,828 (4.8) Rutherford 24,590 28,920 17.6 Brunswick 15,400 16,896 9.7 Swain 4,330 5,166 19.3 Camden 2,360 2,318 (1.8) Transylvania 10,000 10,276 2.8 Carteret 15,170 22,176 46.2 Watauga 14,990 17,996 20.1 Chowan 4,740 5,315 12.1 Wilkes 28,090 31,028 10.5 Columbus 21,530 20,561 (4.5) Yancey 5,510 10,731 94.8 Craven 26,230 30,774 17.3 Currituck 4,640 9,642 107.8 North Carolina 2,668,000 3,262,000 22.3 Dare 6,280 16,522 163.1 United States 99,303,000 117,914,000 18.7 BUSINESS/NORTH CAROLINA 12 experienced a surge of passengers and livestock products, including Declining tobacco sales get most as troops returning from Desert government payments, totaled $4.55 of the blame, though the golden leaf Storm boarded planes for home. billion in 1989, down 15.5% in real still accounts for about 20% of farm dollars from a decade earlier. receipts, says Jim Knight, a market- Not much pie Nationally, cash receipts fell by ing specialist for the N.C. Depart- in the sky more than 20%. But the main story ment of Agriculture. "We've gone was a momentous shift from crops from being the Tobacco State to The '80s was a decade of ex- to livestock: Receipts for crops being the third most diverse agricul- tremes, and by some economic- declined 36.7% over the decade, tural state, behind only Florida and development measures Graham while livestock gained 15.7%. California." County was the state's leading loser. While the state averaged a 22% employment gain over 10 years, this little mountain county bordering Tennessee ended 1990 with half the RISK MANAGEMENT 3,720 jobs it had in 1980. When adjusted for inflation, SOLUTIONS Graham's per capita income de- clined by nearly 3% to $9,140 during Since 1868 the decade, and total personal income went down by 12%. Consider, though, that 60% of the land is government-owned, and much of the remaining real estate is at an angle unsuitable for any of the works of man dependent upon the horizontal. Despite the grim numbers, the county's population held steady from 1980 to 1990. "We're not that bad off or starving or anything," says Frances Carver, executive director of the Graham County Chamber of Commerce. The county has some of the finest scenery in the world, a low Savannah," World's First Steam Ship Leaving Savannah, Georgia, May 20, 1819. From the Collection of Morris Newspaper Corporation crime rate, a parachute plant, a new blanket-making operation and a Crossing the Atlantic in 1819, the 25 foot wide, 100 foot long, S.S. thriving retirement population, she Savannah, became the first steamship to cross any of the world's oceans. says. "We have riches that no one This 105 hour voyage secured the Savannah a place in America's ever thinks about," Carver says. maritime hall of fame. Palmer & Cay/Carswell embraces the "Savannah" as a symbol of Leaf dies on vine, our southern heritage and a hallmark of our reputation for charting innovative risk management solutions farms turn to swine for an increasing number of clients. JA Pigs, chickens and turkeys OFFICES: Savannah, Atlanta, Augusta, helped salvage what could have Brunswick & Vidalia, GA; Charlotte, NC and Jacksonville, FL PALMER & CAY been a disaster for North Carolina CHARLOTTE OFFICE: 6100 Fairview Road, agriculture in the '80s. Suite 1400, Charlotte, NC 28210 CARSWELL Farm cash receipts from all crops PHONE: (704) 553-0419 FAX: (704) 553-2316 Established 1868 APRIL 1992 13 TAR HEEL TATTLER TREND The state's dominant farm counties are now hog-heavy Duplin Per capita income and Sampson and poultry-rich Union, each of which reaped more than $230 million from crops and Real increase Real increase livestock in '89. 1989 from 1980 1989 from 1980 Metrolina The news was bleaker in Eastern $15,851 26.9% Duplin $10,907 31.0 Cabarrus 15,571 24.5 Franklin 11,563 22.0 North Carolina's tobacco counties. Gaston 15,194 26.0 Gates 12,264 23.4 Of 16 counties with cash receipts Iredell 15,841 26.5 Granville 12,631 28.8 Lincoln from crops exceeding $40 million, 14,397 24.2 Greene 11,090 14.8 Mecklenburg 20,040 31.1 Halifax 11,633 22.6 only one - Halifax County - Rowan 15,011 21.9 Harnett 11,120 20.4 reported an increase from '80 to '89. Stanly 14,221 23.9 Hertford 11,723 19.1 Union 16,535 35.8 Hoke 9,091 16.5 Hyde 12,075 23.1 Cabarrus survives Triangle 16,817 30.6 Jones 10,816 12.2 Chatham Cannon's blast 16,012 33.2 Lenoir 13,264 21.4 Durham 18,346 33.2 Martin 12,890 24.2 Johnston 13,201 20.8 Montgomery 11,952 21.4 When it comes to being whip- Lee 15,021 21.0 Moore 17,306 34.6 sawed by economic change in the Orange 18,295 39.7 Northampton 11,658 22.6 '80s, Cabarrus County has a remark- Wake 20,025 33.4 Onslow 12,157 35.0 Pamlico able story to tell. Triad 12,859 19.2 15,140 23.7 Pasquotank 12,723 17.3 In 1980, Kannapolis-based Alamance 16,576 28.6 Pender 12,820 27.2 Caswell Cannon Mills Co. employed about 9,796 11.1 Perquimans 11,236 26.9 Davidson 14,191 18.9 23,000 people, nearly 60% of the Person 12,028 20.2 Davie 16,770 32.6 Richmond 11,950 23.5 county's work force. By 1990, the Forsyth 19,655 27.6 Robeson 9,769 15.2 textile manufacturer, now owned by Guilford 19,239 29.7 Sampson 11,608 18.3 Randolph Greensboro-based Fieldcrest Can- 14,224 20.4 Scotland 11,812 12.6 Rockingham 14,228 15.2 Tyrrell 10,460 25.1 non Inc., employed just 9,000, about Stokes 13,642 21.2 Vance 12,205 22.7 17% of the work force. Import Surry 14,176 24.5 Warren 11,589 24.4 Yadkin 14,042 24.4 competition and modernization Washington 11,785 19.0 eliminated nearly a fourth of the Second-tier 14,794 26.2 Wayne 13,089 23.9 county's manufacturing jobs during Buncombe 15,627 26.5 West 12,258 23.4 Burke the decade. 13,661 22.7 Alexander 13,842 28.1 Caldwell 13,688 24.7 Alleghany 11,930 21.1 But proximity to Charlotte and a Catawba 16,210 28.1 Ashe 11,176 29.8 $295 million, 1,800-employee Cumberland 13,576 29.4 Avery 11,325 29.8 Edgecombe 11,958 15.8 cigarette-manufacturing plant Cherokee 10,850 26.7 Henderson 16,691 26.2 established by Philip Morris in 1983 Clay 10,832 27.7 Nash 15,900 33.5 Cleveland 14,355 24.1 kept Cabarrus in the chips. Overall New Hanover 15,896 27.4 Graham 9,140 (2.6) employment grew by 38.5% to Pitt 14,824 32.2 Haywood 13,272 18.1 Wilson 14,707 20.9 about 54,000, more than double the Jackson 12,072 28.8 East Macon 12,096 21.8 13,159 26.9 county's 15% population growth. Madison Anson 11,681 10,904 22.3 "I remember back in '56 when 24.7 McDowell Beaufort 13,161 17.2 11,635 14.4 Cannon Mills made up about 23,000 Mitchell Bertie 11,800 11,255 14.0 30.9 Polk Bladen 20.8 17,690 31.2 of the 35,000 people in the labor 11,041 Rutherford Brunswick 13,275 22.2 force," says Bobby Overcash, 11,303 16.1 Swain Camden 9,933 17.9 13,237 17.9 manager of the county Employment Carteret 17.6 Transylvania 13,856 17.7 13,484 Security Office in Concord. "We're Chowan 12,596 23.0 Watauga 12,118 31.1 Wilkes Columbus 13,436 26.3 still a manufacturing county, 11,085 16.7 Craven 13,698 21.4 Yancey 11,367 37.4 although it's gone from 80% to 35% Currituck 12,570 13.1 North Carolina 15,287 27.4 [of the work force]." Dare 14,392 29.6 United States 17,592 18.2 Now, Philip Morris is spending BUSINESS / NORTH CAROLINA 14 We Make Loans That Build Families. Address UNITED The Personal Touch. Easy As UCB. CAROLINA BANK Member FDIC The family business. A United Carolina Bank needs. And we'll always tradition as old as commerce cares about you and your give you the personal itself. Built on sweat and business. And we can help attention you deserve. passion. Handed down turn your dreams into Running your business through the generations. reality. We'll work with isn't easy. Getting the right Nourished by new visions you to find financial business loan can be. and dreams. solutions that meet your Please call or stop by any UCB office. Equal Housing Lender ©1992 United Carolina Bank Text telephone number for the hearing impaired, 1-800-876-6545. TAR HEEL TATTLER gainers The population in metropolitan (up to 3,000) counties grew rapidly in the big gainers '80s, not so much due to (3,000 or more) births but to people moving in. losers Many of the big-city seekers moved from rural counties. (up to 1,000) big losers (1,000 or more) TREND Net migration 1980-1990 1980-1990 1980-1990 Metrolina 109,843 Edgecombe (2,704) Pamlico 727 Cabarrus 9,027 Henderson 10,064 Pasquotank 970 Gaston 2,853 Nash 5,586 Pender 5,560 Iredell 6,700 New Hanover 11,579 Perquimans 594 Lincoln 5,312 Pitt 10,943 Person (60) Mecklenburg 68,948 Wilson (131) Richmond (2,137) Rowan 8,028 Robeson (5,245) Stanly 1,348 East 28,764 Sampson (3,891) Union 7,627 Anson (3,139) Scotland (707) Beaufort 765 Tyrrell (268) Triangle 135,711 Bertie (1,466) Vance 401 Chatham 3,341 Bladen (2,754) Warren 708 Durham 19,187 Brunswick 12,709 Washington (1,617) Johnston 7,397 Camden (73) Wayne 120 Lee 2,155 Carteret 8,835 Orange 11,626 Chowan 638 West 9,296 Wake 92,005 Columbus (4,007) Alexander 1,115 Craven 306 Alleghany 33 Triad 51,753 Currituck 2,032 Ashe (323) Alamance 5,540 Dare 8,137 Avery (141) Caswell (728) Duplin (2,408) Cherokee 940 Davidson 7,416 Franklin 5,282 Clay 498 Davie 2,425 Gates 181 Cleveland (2,577) Forsyth 9,737 Granville 3,213 Graham (330) Guilford 13,455 Greene (1,544) Haywood 62 Randolph 9,675 Halifax (2,207) Jackson 239 Rockingham (378) Harnett 3,243 Macon 3,391 Stokes 2,569 Hertford (1,961) Madison 31 Surry 679 Hoke 320 McDowell (752) Yadkin 1,363 Hyde (570) Mitchell (254) Jones (766) Polk 1,874 Second-tier 39,649 Lenoir (4,683) Rutherford 1,426 Buncombe 9,702 Martin (1,816) Swain 542 Burke 178 Montgomery (133) Transylvania 1,366 Caldwell (580) Moore 7,199 Watauga 3,685 Catawba 7,384 Northampton (1,959) Wilkes (1,631) Cumberland (12,372) Onslow 10,235 Yancey 102 North Carolina 375,016 BUSINESS/ NORTH CAROLINA 16 $400 million to expand its plant and add 600 jobs, and a general-aviation airport with a 5,000-foot runway is planned. Some other new industries are coming to town, including the French-owned Legrand electric- switch plant, which will employ 450. Even Fieldcrest Cannon eked out a profit during the last quarter of 1991. Flight of the bright to the big cities It wasn't a boom in babies that boosted the biggest gainers in population in the state between 1980 and 1990. Wake County, for instance, grew 40%, or by nearly 122,000. After When Other Ad adjusting for births and deaths, the county's net gain from outsiders Agencies Tell You was 92,005. Because it doesn't count births or Their Creative deaths, only people who choose to move in or out, net migration is Department Is often a better indicator than popula- tion change of a county's economic Holding Things Up, strength. The biggest winners over the They Aren't Kidding. past decade were the state's most populous counties, Wake and For starters, they're holding up several layers of Mecklenburg, which had a net agency people who don't do much pedaling. No - migration of 68,948. Almost all the wonder the creative output suffers. counties in the Charlotte region, Triangle and Triad registered gains. Ever wonder how a first-class creative department Many Eastern counties weren't would perform with fewer, um helpers? so fortunate. Robeson lost 5,245; Quite nicely, thanks. In a business notorious for Lenoir, 4,683; Sampson, 3,891. top-heavy organization, efficient staffing is one way Migration is "negatively selec- we live up to our name. tive," UNC-Charlotte geography Professor Al Stuart says. The notion So if you want to work with a less encumbered of the young, ambitious country boy creative team, call Nancy Johnson at or girl heading to the big city is 919/828-7887. We don't offer a Just familiar for a reason - it happens circus, but we definitely hold up all the time. Says Stuart, "There's a our end of the bargain. saying among demographers: The Facts recipients of migration get some of the youngest and brightest. The Just The Facts, Inc., Advertising and Marketing older and less-skilled stay put." 109 N. Boylan Avenue, Raleigh, NC 27603, Telephone: 919/828-7887 APRIL 1992 17 ECONOMIC ALMANAC LIFE IN THE BIG LEAGUES Charlotte and Raleigh/Durham became national players in the '80s. Can they still make the cut in the '90s? By Suzanne Wittebort n 1975 Al Stuart, a lanky young geographer '90s represent a whole new ballgame. Do in the department of geography and earth they have what it takes to flourish in the big sciences at UNC-Charlotte, was absorbed in leagues during harsher times? co-editing a book titled North Carolina Atlas: As they've surged forward, Charlotte Portrait of a Changing Southern State. He and Raleigh/Durham have established recalls working on yellow legal pads in that themselves as the pace setters for the state's pre-computer age and driving to the airport economy. Better than one in six North himself to pick up the first copies to deliver Carolinians now lives in the Charlotte to local bookstores in time for Christmas. In metropolitan region; nearly one in nine lives the atlas that hit the shelves that December, in the Wake, Durham and Orange three- in the chapter on urban areas, was the county area. Nearly a third of the state's statement that North Carolina "has never population increase over the decade can be had a dominant city." accounted for by Mecklenburg and Wake Fast forward to early 1992. Al Stuart, still counties alone. One out of every nine North lanky but now maned in gray, sits at his Carolina residents works in Mecklenburg desk in his office, where he's working on a County, says John Connaughton, professor second edition of the atlas, due out next of economics at UNCC, and one dollar of year. A computer screen winks behind him. every $6.50 of the state's output originates "The decision is in. The game is over," he there, up from one of every $8.50 a decade says with a referee's finality. "Charlotte and ago. "There's been a tremendous increase in Raleigh/Durham have pre-empted the field the impact Charlotte has on the state's and established themselves as the pre- economy," he concludes. eminent urban centers in the state. That's The figures show the exuberance of the not going to change till we're all long gone." '80s. Population in Charlotte's Mecklenburg Charlotte and Raleigh/Durham did County grew to 511,433 in 1990, a 26.5% indeed trounce their main intrastate urban gain over 1980's total, more than double the rivals in the explosive '80s, outscoring them state's rate of 12.7%. The eight-county in population, employment and income metropolitan area grew by a substantial gains. The champs now compete in the 18%. According to the Charlotte Chamber, national arena in everything from basketball Charlotte attracted 2,719 new businesses, to corporate relocations. But even for these which invested $3 billion and created 37,516 paradigms of economic vigor the austere jobs. Employment grew 25%, to 274,268. BUSINESS / NORTH CAROLINA 18 Every city stood to gain from the state's advantages, so why have these two regions pulled ahead? The answer lies in luck, leadership and changing times. YUNG SHENG TSAO APRIL 1992 19 ECONOMIC ALMANAC More obvious trophies of growth are More than 30 R&D organizations opened displayed in Charlotte's gleaming skyline, new facilities in the park between 1980 and which burgeoned in the '80s and is newly 1990, creating more than 17,000 jobs and punctuated by the 60-story NationsBank helping increase the park's total employ- tower, a symbol of the city's new status as ment to 34,000. Furthermore, Technology in the country's third-largest financial center. the Garden, a recent study by UNC-Chapel Direct international air links to London and Hill Associate Professors Michael Luger and Frankfurt and the arrival of the National Harvey Goldstein, attributed another 31,500 Basketball Association Hornets in 1988 area jobs to activity generated by the park. further confirm Charlotteans' conviction Though the low, pleasant buildings nestled that theirs is a city of destiny. "There's a in the piney woods off Interstate 40 contrast sense of momentum and opportunity. This sharply with Charlotte's soaring towers, is Charlotte's time to break into the upper RTP is indisputably "the crowning jewel of echelon of cities," says David Orr, economist the area," as economist Michael Walden of and senior vice president at First Union. N.C. State University puts it. The Raleigh/Durham area has grown Just what has caused Charlotte and even more powerfully than Charlotte. The Raleigh/Durham to pull ahead of other population of Wake, Orange and Durham regions in the state? In theory, all cities in counties grew 31.7% to 699,066 between North Carolina stood to benefit equally from 1980 and 1990. Wake County alone grew by the state's moderate climate, low labor and a stunning 40.5%, the fastest in the state. manufacturing costs and laws that have Employment in the three counties more than long permitted branch banking and out- kept pace, increasing 34.1% between 1980 lawed closed union shops factors that and 1990. Despite the population growth, have attracted businesses from the North- unemployment generally ran at half the east and Midwest for more than a century. national average. For the second half of the The answer lies in a combination of luck, After a mid- '80s boom, decade it hugged the baseline with a minus- leadership and changing times. Charlotte construction in cule 3% or less. and Raleigh/Durham have caught the the Triangle fell Research Triangle Park, midway be- proverbial tide in the affairs of men at its off dramatically while building tween Raleigh and Durham, continued to flood and are surfing it directly to fortune. in Metrolina burnish its reputation as one of the nation's Both metropolitan areas have seized differ- stayed steadier. premier research and development sites. ent national and international trends and capitalized on them. TREND The decision in 1959 to build upon the reputations and expertise of Raleigh's three Building fortunes universities by establishing a research park Value of all construction, from building permits has proved prescient. In developing an (in millions) economic mix that adds R&D, high-tech manufacturing and medical research and $1,600 services to government and education - - while de-emphasizing traditional low-tech manufacturing Raleigh/Durham has 1,400 become "the first 21st-century economy in the Carolina Piedmont," says architect and Metrolina 1,200 urban planner Michael Gallis, a fellow of the Urban Institute at UNCC. Charlotte, for its part, has traditionally 1,000 Triangle enjoyed a diverse economy. Strategically positioned at the junction of Interstate 800 Highways 85 and 77, it has long acted as a 1984 1986 1988 1990 service and distribution center for the BUSINESS / NORTH CAROLINA 20 manufacturing plants around its perimeter. As such, it happened to be home to two major, expansion-minded banks. Accus- tomed to branching throughout the state, "Regionalism is absolutely the both NCNB (now NationsBank) and First only thing to do. It's essential for Union were quick off the mark when a change in federal laws permitted Southeast- recruiting and infrastructure ern regional banking in 1985. As banking planning. People have to give up consolidated in the region, their growth, together with the arrival of Royal Insurance thinking in terms of counties." Co. in 1984, laid the groundwork for Char- lotte to emerge as a financial-services center. force quality, availability and cost, attractive While Raleigh and Durham have been housing stock and air links, "both communi- bolstered by UNC, N.C. State and Duke, as ties are strong," says corporate relocation well as the presence of a state government specialist Gene DePrez, vice president and employing more than 24,000, Charlotte has principal at New York-based PHH Fantus been propelled by its unabashed pro- Corp. "In the last month, they've come up growth, pro-business attitude and a strong dozens of times in our conversations." commitment by business leaders to the city. But the wake-up call of the recession has "Charlotte has become a major-league city. made it clear that the '90s are not going to be It's aggressive, it knows what it wants and a repeat of the expansionary '80s. Charlotte goes after it. It has its act in order," says and Raleigh/Durham have not fared too John Kasarda, director of the Kenan Institute badly; though unemployment has crept up of Private Enterprise at UNC-Chapel Hill. in recent months, both regions managed to "It's a successful mix of a community that register net increases in jobs in 1991 and are works together and leadership that has continuing to attract businesses. community interest at heart." But even after the recession ends, Charlotte has managed to get its bullish- forecasters do not predict a return to the ness nationally ranked: Fortune named the heady growth of the '80s. "Essentially, it will city No. 1 in "pro-business attitude" last be very hard for growth rates to be any year and seventh among cities said by more than a third or half of those of the '70s executives to offer top value for businesses. and '80s," says First Union's David Orr. For As Charlotte and Raleigh/Durham have example, DRI/McGraw Hill predicts that capitalized on these assets and on their hub employment, which grew at an average airports, success has bred success. For annual rate of 4% between 1982 and 1990 in example, Charlotte's growth prompted the the Charlotte area, will increase by a modest NBA to grant a franchise there, adding $100 1.5% annually between 1990 and 2000. For million annually to the local economy, Raleigh/Durham, which enjoyed 5.5% according to UNCC's Connaughton. The annual growth in employment in the '80s, Hornets' reception in turn led to the drive to the rate is expected to slow to 1.8%. Real per snag a National Football League franchise, capita income, which grew at an average which would bring in an additional $200 annual rate of 3.2% for Charlotte and 3.3% million a year, Connaughton says, as well as for Raleigh/Durham from 1982 to 1990, will further raise Charlotte's national profile and bump down to 1% and 1.9% respectively, perhaps finally distinguish the city once and according to DRI. Still, both areas are for all from those other pesky "Ch" cities, expected to run a sliver ahead of the state Charleston, S.C., Charlottesville, Va., and and national rates. Charleston, W.Va. The reasons for the slower growth are The developments of the '80s left Char- primarily demographic. As postwar baby lotte and Raleigh/Durham in enviable boomers head into their late 30s and 40s, the competitive positions. In terms of work- shrinking numbers of Americans entering APRIL 1992 21 ECONOMIC ALMANAC their 20s mean fewer workers, especially for Much more caution will be needed to keep entry-level jobs, and reduced demand for us from overextending ourselves." housing, automobiles and other goods So should Charlotte and Raleigh/ typically first purchased in the young-adult Durham simply bow to the inevitable? Not years. In the late '90s, there will be 140,000 necessarily. As Orr puts it: "The world has fewer North Carolinians between 18 and 34 changed, and the pie is not growing as fast. than there are today, according to Kasarda. But that doesn't mean you don't try to get a Another important economic stimulus of bigger share of it. The key in the 1990s will the '80s is unlikely to be repeated: the be stealing business from other regions." abandon with which consumers wielded Charlotte and Raleigh/Durham are their credit cards. "There's been a large plainly past masters at wooing businesses psychological change due to the recession," from other parts of the country. But as the Orr says. "People are unwilling to borrow as contest heats up in the '90s, some of their much or consume as frivolously." prime selling points have lost luster. Their Stagnation in R&D spending could hurt traditional cost advantage over other the Triangle's growth prospects. Real regions has been shrinking. "Twenty-five corporate R&D spending has been flat over years ago, costs here were 30% to 35% less the past two years. And as more research than in the Northeast and industrial Mid- parks have opened, competition has grown west," Orr says. "Today, they're about 10% fiercer. There are now 115 research parks in less. The gap is narrowing." the nation, vs. just 15 in 1980. Charlotte and Raleigh/Durham are Even after the recession recedes, the '90s creeping up in costs vs. some other South- are going to require a new brand of realism, ern cities as well. In the American Chamber economists agree. "We'll still engender of Commerce Researchers Association's above-average growth but not as rapid as composite cost-of-living index, Charlotte's that of the '70s and '80s. I've been warning costs were indexed at 100.1 and Raleigh/ business leaders not to get back to the boom Durham's at 96.4 for third quarter 1991 (100 mentality, where they see nothing wrong equals the average of the 304 cities polled). with build, build, build," says N.C. State's The living was cheaper in Austin, Texas, for Walden. "The '90s call for much more example, at 92.6; Nashville, Tenn., at 91.7; modest investment and marketing plans. Memphis, Tenn., at 94.5; and New Orleans TREND Metrolina magic Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Cabarrus 22,160 16,840 (24.0)% 1,980 4.8% 2,161 3.8% Gaston 39,560 38,590 (2.5) 5,380 5.8 4,180 4.1 Iredell 15,630 17,140 9.7 2,570 6.5 2,312 4.4 Lincoln 6,540 7,310 11.8 1,740 8.8 1,249 4.5 Despite slower Mecklenburg 44,450 50,790 14.3 10,560 4.6 8,411 3.0 growth in Rowan 15,680 13,120 (16.3) 2,660 5.6 2,490 4.2 manufacturing Stanly 10,870 10,860 (0.1) 1,400 6.1 1,272 4.7 employment, the Charlotte region Union 10,190 14,050 37.9 1,640 4.1 1,334 2.9 helped set the Metrolina 165,080 168,700 2.2 27,930 5.2 pace for the 23,409 3.6 North Carolina North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 economy. United States 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 22 with 93.5, which could give them a competi- always asked about the quality of education. tive advantage. "Costs have been driving a When a research facility is relocating, it's a lot of corporate relocation decisions for the major concern for their staff and their last year or two, more than four or five years children. The biggest single liability we have ago," DePrez of PHH Fantus says. "There is the quality of public education in North has to be a compelling advantage, a really Carolina." dramatic saving, to justify the extremely The much-touted quality of life in both high one-time costs of moving." areas is not immune from the urban stresses North Carolina's edge as a non-union of the '90s. Crime is on the rise. Durham and state has also eroded as unions have weak- Charlotte set new records for homicides in ened nationally. Many growth areas, such as 1991 - with 33 and 115 respectively - as banking, research and high-tech manufac- both cities have seen an increase in drug turing, are typically not unionized. trade. Commuters complain about rush- The labor force in Charlotte and Raleigh/ hour traffic snarls - more than 100,000 Durham may have a hard time meeting the commute into Charlotte daily, more than demands of the '90s. "The labor problem is double the number in 1980 - and sketchy double-barreled," Kasarda explains. "Not public transportation severely limits the only is the labor force declining in number, employment prospects of the carless. but a substantial number of workers lack the Unfazed by the sobering news, Charlotte education, training and skills to adapt to the and Raleigh/Durham business and civic needs of business. Both cities are going to leaders are busy forging their strategies for face a serious squeeze, and tight labor will the '90s with typical zeal. The future of their raise costs." cities could depend on their success. North Carolina students' poor perfor- Economic-development officials plainly mance on national tests has fanned worries have their work cut out for them. The over education and work-force prepared- Charlotte Chamber has targeted specific ness. Charlotte's and Durham's public industries, including biomedical research, schools rate below the state average. When chemicals, aircraft parts, metalworking, speaking to companies thinking of coming financial back-office operations and elec- to RTP, Research Triangle Park Foundation tronics, for its recruitment efforts and hopes President James Robeson says, "We're to lure national associations and banking, Average annual wage Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $18,611 18.6% $1,513,201 31.4% $691,732 23.3% 18,772 5.5 2,658,608 26.8 1,377,115 12.2 17,491 8.5 1,474,054 33.3 872,971 28.9 16,588 8.9 712,939 35.6 286,356 22.6 23,767 12.2 9,769,386 47.6 8,845,616 14.3 19,085 8.2 1,614,071 23.5 772,561 18.8 16,832 4.3 729,974 22.8 396,025 10.6 17,895 6.8 1,424,017 54.7 699,105 38.9 18,630 9.2 19,896,250 38.9 13,941,481 16.6 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 23 Why Settle For 80%Of Your Home Value When We Can Let You Access 100%? Other banks' home equity lines more, stop in and ask us about our might shortchange you. But at Tax Advantage Loans. (For a Southern National, we'll give you limited time, you can save up to the credit you deserve. To find out $100 in closing costs.) SOUTHERN NATIONAL Tax Advantage Loans Equal Housing Lender. Member FDIC. Consult your tax advisor for specific details on deductibility of interest. ECONOMIC ALMANAC real-estate and insurance companies to put to coordinate economic-development efforts corporate or division headquarters there. in the 13-county Charlotte area. The part- The chamber, with a staff of 50, including an nership, which has just completed its first international department, is a recruitment year, has received pledges of $8 million over juggernaut that uses direct mail, trade five years from area businesses. It handles shows, seminars, overseas trade missions, all regional advertising and recently phone calls and one-on-one visits to lobby launched a national and international corporate prospects. "They're a very, very campaign under the slogan "America's New effective group compared with their peers Business Horizon Charlotte Region." The around the nation," says a relocation partnership is also sponsoring the making specialist. Adds an economist: "They sell of an OmniMax film of the region to be Charlotte like Honda sells Hondas." shown at Charlotte's Discovery Place next Supplementing their efforts is the year and has opened a VIP briefing center at fledgling Carolinas Partnership, an attempt Charlotte/Douglas International Airport. Strategic air command vation and enhancement of their airports will be essential to both regions. Raleigh and Durham Though the economies of Charlotte As companies strive to trim suffered a collective shudder re- and Raleigh/Durham differ vastly, inventories and beat out competi- cently at rumors that American they share a common benison: their tors, they increasingly choose to Airlines was considering dropping hub airports. "The hubs are abso- ship by air. Exports, which grew by RDU as a hub. Though the reports lutely critical. In a way, they're the 22% in North Carolina between 1989 have been denied, attendees at the most important things North and 1990, are more frequently Raleigh-Durham Regional Associa- Carolina has to offer," says James airlifted; according to Kenan tion conference in January cheered Robeson, president of Research Institute of Private Enterprise in relief when the local American Triangle Park Foundation. Director John Kasarda, 35% of Airlines representative said com- Charlotte's airport was desig- exports now move by air. Charlotte pany officials had ruled out Atlanta nated a hub by Piedmont Aviation loaded 170 million pounds of cargo as an alternative hub to RDU. (now USAir) in 1979, and Raleigh/ last year, up from 40 million in 1981; RDU's chairman, developer Durham's by American Airlines in RDU loaded 83.5 million pounds. Smedes York, went on to outline 1987. With 500 flights a day, Char- "Instead of shipping by a six-hour a long-term plan calling for addi- lotte boarded 8.4 million passengers truck drive, it makes sense to use an tional runways by the end of the last year and offered direct service air hub," says urban planner decade. "The main thing I know to 150 cities, including London and Michael Gallis. "Time and transpor- about running an airport is that the Frankfurt. At RDU 4.7 million tation are concentrating economic public has to be behind the effort," departed on 253 daily flights for development to major hubs in the he told the crowd. "We cannot go nearly 80 cities, including Paris. U.S. For the first time, we're seeing backwards. We cannot afford to Air links have become even a shift to major urban centers in the lose the hub." The unspoken mes- more crucial as international Carolinas." sage: the business community had markets integrate. Components are Corporate relocation specialists better be prepared to rally against manufactured all over the world, say that one of the first factors a any community opposition to gathered in one location and relocating company considers when expansion. assembled. The resulting products assessing sites is air service. Char- Charlotte's airport also has plans are shipped around the globe. For lotte's and Raleigh/Durham's to expand. Its status as USAir's example, IBM's PS2 personal airports have helped them attract southernmost hub, particularly now computers are assembled in Raleigh foreign-owned facilities, 260 and 65 that the airline has axed its Dayton, from parts manufactured at sites respectively. Ohio, hub and is reducing its losses, from Burlington, Vt., to the Far East. As the '90s progress, the preser- seems fairly secure. APRIL 1992 25 ECONOMIC ALMANAC Charlotte is also tackling regionalism annual conference, held in January, drew on a political level. Charlotte and six 737 to RTP's Sheraton Imperial to hear surrounding cities last December approved discussion of regional economics and the creation of an association of cities from the future of the Raleigh/Durham airport. region to take on issues of common interest, Will regionalism really make a differ- and representatives met for the first time ence? Says First Union's Orr: "Regionalism Feb. 4. The first item on the agenda: lobby- is absolutely the only thing to do. It's ing the state for the region's fair share of essential for recruiting and infrastructure reimbursements. Eventually the organiza- planning. People have to give up thinking in tion will expand to the region's 38 munici- terms of counties. You can't have Iredell and palities and aims to produce long-term Gaston fighting it out. The area attracts savings by coordinating planning and people and companies, and within the area sharing costs of public projects, such as each will get its fair share." parks, roads, sewers and regional transpor- DePrez agrees that areas that sell them- tation. "The reason we're spending too selves as regions can have an edge. "When much today is that there was too little companies relocate, they consider the whole planning 10 years ago," says Lynn Wheeler, broad region, the downtown, the suburbs, the Charlotte City Council member spear- the labor pool. The more flexible you are in heading the initiative. offering a regional approach, the more Raleigh and Durham have also inaugu- opportunities you offer." rated a regional initiative: the Raleigh- Gallis was a consultant to the Charlotte Durham Regional Association, established City Council on its regional initiative and in June 1990. The purpose of the association, says it holds the key to the area's future says Chairman John Atkins, president of the success. "Lynn [Wheeler's] committee is in Triangle architectural firm O'Brien/Atkins the forefront of breaking down the walls Associates, is to promote economic develop- that ring the Great State of Mecklenburg," ment and provide a forum for discussion of he says. "We've inherited a jigsaw of issues important to the area. "We think political entities that do not efficiently when we combine our assets, we have a divide the area." With a regional strategy, story that's hard to beat. If we don't - if he believes, "Charlotte has the potential of Raleigh or Durham is pursuing a prospect being the strongest competitor in America. on its own - our chances dim." Interest is We are entering a metropolitan state after plainly running high. The group's second Houston and Atlanta. We can clearly see the TREND Triangle triumph Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Chatham 5,960 5,990 0.5% 810 5.1% 653 3.3% Durham 18,720 29,870 59.6 4,380 5.0 2,461 2.4 Johnston 9,620 8,490 (11.8) 2,190 6.2 1,751 4.6 Lee 7,350 8,030 9.3 1,500 7.9 1,065 5.3 Orange 3,460 2,740 (20.8) 1,840 4.2 980 1.9 The Raleigh/ Wake 22,820 27,680 21.3 6,970 4.0 5,950 2.4 Durham region Triangle 67,930 82,800 21.9 17,690 4.7 has shown even 12,860 2.7 greater gains North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 than Charlotte. United States 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 26 problems that were created, and we have research-oriented companies to the area. the potential to do things differently." "We believe that offering Ph.D.s is critical to Also crucial will be protecting the quality this region and its economic development," of life in both regions. As Atkins puts it: says William McCoy, director of UNCC's "How do we plan for growth and not Urban Institute. Meanwhile, local businesses jeopardize our quality of life? The spectrum are supporting a $50 million fund drive for of viewpoints ranges from 'I'm here so let's Johnson C. Smith University. close the door' to development for As the '90s unfold, economists and development's sake. It's a struggle." Finding development specialists agree that Charlotte a balance will be vital. A pleasant, afford- and Raleigh/Durham must continue to able environment is key not only to attract- broaden their world view, to snag interna- ing new companies but also to inducing tional as well as national and local trends. existing companies to expand - a major This may mean, for example, increasingly potential source of growth for both Char- active recruitment of foreign companies. lotte and Raleigh/Durham. For example, the RTP, where 39 sites are still open for devel- proposal to establish parks along lakes opment, is already targeting European and Wylie and Norman is an attempt to preserve Japanese companies, Robeson says. "Many an important amenity in the face of urban U.S. executives are judged on their quarterly encroachment, Gallis says. results, not on their performance over five Improved education will have to be a top or 10 years. One reason we're aggressively priority. "The question of the '90s is how to recruiting overseas is that many of those get a grip on education. We need to put companies take a longer view in their more money in schools and less in roads," research and development." Stuart says. Charlotte has tried to solve its The '80s placed Charlotte and Raleigh/ problem by hiring a new school superinten- Durham in the world arena. They're power- dent with ambitious plans for restructuring fully equipped to compete, but they'll be portions of the system and imposing high learning their positions in the slow-growth standards. Charlotte also hopes to upgrade '90s. "We have to look at the global its higher education, long in the Triangle's economy and understand the strategy of shadow. A proposal that would allow growth in the '90s," Atkins says. "If we just UNCC to grant doctorates is awaiting look at North Carolina or national opportu- approval by the university's Board of nities, it's not going to happen. We've got to Governors. Such programs could lure more look at the bigger picture." Average annual wage Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $16,962 7.9% $595,493 38.5% $186,055 (12.2)% 24,903 19.4 3,207,768 43.0 1,663,216 44.5 15,614 3.4 1,082,114 31.1 622,751 17.6 17,479 8.0 636,746 30.6 428,333 2.2 21,185 12.4 1,657,661 53.7 640,662 31.9 20,883 7.3 8,016,139 65.2 5,251,140 49.0 19,504 10.2 15,195,921 53.2 8,792,157 39.1 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 27 ECONOMIC ALMANAC TWILIGHT OF THE GODS In manufacturing might, the Triad once reigned supreme. Can it hammer out a new identity in the '90s? By David Bailey ur little town of High Point," Dave Phillips buildings anymore," he says. That makes it says fondly. Then he lets out a long sigh. "It tough to sell office furniture. hasn't changed much in its population in a "That's our little town, and you go to long time." Winston and they'll tell you the same story," In fact, from 1980 to 1990 High Point Phillips says. "Greensboro is the same thing. slipped from sixth to seventh in the state, We're hurting." even though population increased at a By almost any measure - population, healthy rate. employment, auto registrations, per capita Sure, says Phillips, a developer and income, wages per worker - - the Triad president of Phillips Industries, "it's known lagged behind state growth averages during as the furniture and hosiery capital of the the '80s. High Point, since it is not as diversi- world. But most of our hosiery companies in fied as the other two cities, probably has had the last decade have gone out of business or the hardest time. But Winston-Salem lost its merged, like Adams-Millis and Sara Lee. status as the headquarters of RJR Nabisco, They've shut down operations and moved and Greensboro has seen jobs come and - somewhere else." mostly - go as the textile industry went Of course, there's still the furniture through a chaotic decade. market: "It's exciting and one of the most That's not to say the area didn't grow. "If incredible things that happens in America. It [the Triad] were located anywhere else in brings 60,000 people down twice a year," the nation, you'd say, 'That's pretty healthy, Phillips says, his voice rising in a brief managed growth,' UNC-Greensboro crescendo, "but it doesn't employ a lot of finance Professor Donald Jud notes. "They people. It's seasonal employment." could almost brag." The biggest manufacturing employer in In fact, Site Selection and Industrial town, Phillips says, is Thomas Built Buses Development magazine ranked the Triad as Inc., with just under 1,000 workers. But few the fourth-most-popular place in the nation cash-strapped state and local governments to build new plants in 1991 - after the No. are buying school buses. Historically, the 2-ranked Charlotte area. "In that they're other two big employers have been Hatteras located between two of the major growth Yachts and Alma Desk Co. The luxury tax areas in the Southeast, Charlotte and has almost put boat building in dry dock, Raleigh, they pale by comparison," Jud says. "and people have just stopped building Even more troubling, Winston-Salem, BUSINESS / NORTH CAROLINA 28 As the '80s dawned, the Triad's future looked as rosy as a Carolina sunrise. Now, its leaders must decide what they want tomorrow to bring. YUNG SHENG TSAO APRIL 1992 29 ECONOMIC ALMANAC Greensboro and High Point - cities that for That was then. Now, as the Triad looks decades have been the gauges used to toward the slower growth projected between monitor North Carolina's industrial might now and the year 2000, leaders realize - have added few manufacturing jobs. someone had better do something. The big Such jobs actually declined by 16% from question is what. "The area just does not 1980 to 1990 in Forsyth County, which in its have the enthusiasm for itself that Metrolina heyday - 1935 - produced a quarter of the and the Triangle have," Greensboro City state's manufactured goods. Manager William Carstarphen says. "It's not But in the '80s, the Triad looked on with quite sure what's happened to it, and it envy as manufacturing jobs grew by 14% in hasn't formulated, as a result, a new Mecklenburg County and 21% in Wake strategy." County. "When I was in Winston-Salem," Consider, for instance, a recent effort to banker Hugh Durden says, "one of the transform Triad cooperation into bricks and things I used to say with some conviction mortar. The idea was to turn a 1,000-acre was the sun is going to turn around and tract in the middle of the Triad into a shine here some day. Well, I was wrong." regional centerpiece. Leaders, especially Durden, now based in Charlotte as those from Winston-Salem, decided that the Wachovia Bank of North Carolina's execu- land would be perfect for a research park or tive vice president for the western third of could be used as an industrial and office the state, knows where to lay the blame. park. All they needed was $500,000 to "The '80s fever in the Carolinas was concen- extend the option on the land, which was on trated in the Triad," he says. The disease the market for $14 million. showed up in many forms - downsizings, Bowman Gray School of Medicine consolidations, mergers, LBOs, restruc- officials were particularly enthusiastic about turings, relocations and plain old-fashioned tying such a park to a graduate-engineering business failures. "There was an epidemic of center already in the works. Because the the fever, and no single person could have land was closest to High Point, leaders there done anything about that," Durden says. were understandably excited. But Greens- TREND Triad trails Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Alamance 19,500 21,620 10.9% 3,550 7.2% 2,159 3.3% Caswell 990 760 (23.2) 570 7.3 416 4.4 Davidson 23,100 23,840 3.2 4,550 7.5 2,791 3.9 Davie 2,990 3,890 30.1 680 6.4 686 4.6 Forsyth 44,110 37,250 (15.6) 6,570 5.2 5,706 3.9 Guilford 57,250 59,310 3.6 9,350 5.6 6,820 3.6 Randolph 20,860 23,590 13.1 3,050 6.3 1,833 3.0 Rockingham 17,610 15,400 (12.6) 3,780 9.2 2,331 5.7 Stokes 1,620 1,320 (18.5) 1,150 6.6 827 4.4 Although it out- Surry 15,520 15,970 2.9 2,180 7.5 paced the nation 1,542 4.7 in some areas, Yadkin 1,760 2,710 54.0 1,030 6.8 739 4.5 the Triad lagged Triad 205,310 205,660 0.2 36,460 6.4 behind the state, 25,850 3.9 Metrolina and North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 Triangle. United States 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 30 boro's mood was cool, and the deadline for as a Carolina sunrise. Winston-Salem alone tying up the land passed without the money had the headquarters of R.J. Reynolds being raised. Clearly, the kind of coopera- Tobacco Co., Hanes Corp., Wachovia Bank tion that put Charlotte and Raleigh/ and Piedmont Aviation. Within a 30-mile Durham on the national corporate-reloca- radius were the nation's largest tobacco tion map is a distant dream for the Triad. manufacturer, more than a dozen textile and Charlotte's success must be particularly apparel makers (including the nation's galling to the Triad, which has always largest), three major insurance companies, prided itself on quality of life and cultural the state's soundest bank, a booming airline superiority. After all, it has the North and two of the country's largest trucking Carolina School of the Arts, a modern-art companies. Triad population had grown museum, a Shakespeare company, Old 180% from 1920 to 1980, compared with Salem, several symphony orchestras and an 130% for the state and 114% for the nation. arts-patronage system that is to the Triad And despite intensive industrialization, what the Medici family was to Florence. it was a great place to live - Greensboro But while the Triad was building art was ranked No. 1 among medium-sized programs, Charlotte was creating what it cities by the 1981 Rand McNally Places Rated likes to call a world-class city. Allen Almanac. Mebane, chairman and founder of Greens- "Industrialization has supported growth, boro-based Unifi Inc., says Charlotte was raised incomes and created a large skilled able to pull it off because six or seven of the labor force," boasted an Economic Atlas of city's most powerful leaders can sit down at the Piedmont Triad published in 1982 by a table together, take a vote and make just chambers of commerce, the state Depart- about whatever they want happen in the ment of Commerce and Triad county Queen City. "You can't get six people from governments. But the citizens in this part of Greensboro, High Point and Winston-Salem the Bible Belt would soon be reminded of even to sit down together," he says. the lesson Job learned: What the Lord gives, In 1979, the Triad's future looked as rosy He can take away. Average annual wages Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $16,765 6.1% $1,774,879 29.8% $1,067,660 27.1% 14,808 (1.0) 216,468 10.5 36,837 (22.4) 17,285 6.8 1,791,752 24.0 786,047 14.7 16,353 (0.9) 467,928 40.0 177,333 52.4 23,692 7.3 5,285,300 31.5 3,299,817 20.6 21,110 6.3 6,547,142 30.2 5,216,685 22.5 16,160 1.7 1,488,080 28.9 616,560 25.5 18,788 5.8 1,235,239 12.1 490,283 (1.2) 16,945 7.2 502,830 26.0 118,944 15.6 16,072 4.5 886,066 22.5 602,759 30.9 16,053 13.9 430,334 25.3 141,811 (9.2) 17,639 5.3 20,626,018 28.0 12,554,736 20.8 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 31 ECONOMIC ALMANAC In the Triad, the Almighty had some '80s, but that didn't offset what happened to help, though. "The Winston people didn't the area's bread-and-butter industries. want other people in there because it would Says Wachovia President L.M. "Bud" destroy the labor situation they had," Baker Jr.: "A strong employment base was Mebane asserts. "Burlington and Cone and always here, and we sort of sat and watched. Jefferson-Pilot for years have been inhibitors Charlotte and Raleigh were larger, more of the growth of Greensboro. They didn't concentrated areas, and I think they were want the competition for the labor." Mebane more aggressive in economic development should know. He worked at Burlington than the separate cities of the Triad were." Industries from 1957 to 1964 before launch- Population numbers back that up. From ing Unifi. 1980 to 1990, the 11-county Triad region Statistics bear him out. Granted, tobacco gained 104,422 people or about 9% the work (the highest-paid category of manufac- growth rate of Eastern North Carolina. The turing jobs in the nation) boosted Forsyth's eight counties in the Charlotte region grew average wage per hour in 1979 close to the by 179,510, double the Triad rate. And in the national average wage of $6.69 an hour. But Triangle, the six counties around Raleigh in the whole 11-county region, workers grew by 189,054, a rate of 28%. averaged $4.77 an hour, lower than the $4.87 More telling is net migration - a popula- average for the state and nearly $2 less than tion count adjusted for births and deaths. the U.S. average. Forsyth saw a net loss of some 2,100 people "North Carolina in the period from 1979 from 1989 to 1990. Guilford added 6,600 in to 1984 went through the most expansionary 1990 - but compare that with period in its history," John McNair, former Mecklenburg's 21,800 or Wake's 19,800. president of Wachovia Bank of North Overall, the Triad's net gain was about The Triad never Carolina, has said. "During that time, a 52,000 for the decade — while the Charlotte hit the heights Metrolina and great many referrals [to the Triad] were area picked up more than 110,000 and the the Triangle made by the state Department of Com- Triangle gained more than 136,000. reached. But it merce, and none of the deals were closed." "It's not just Charlotte and Raleigh vs. the shared the big drop when Granted, Greensboro snagged an American Piedmont Triad," says former Greensboro money tight- Express service center in '85 and other Mayor Jim Melvin. "The megatrends are ened up. companies were lured to the Triad in the happening so quickly that if you don't step back and take a look at the way things are TREND going and identify just a few of these things, Slippery slope then you're going to get left behind." Melvin, president of 1st Home Federal Value of all construction, from building permits Savings and Loan, says that in the early '80s (in millions) John Belk and other Charlotte leaders $1,100 decided what would make the city grow and went after it. "I heard them articulate their dream and saw the leadership of Charlotte 1,000 come together - corporate, public and private - and clearly identify their goals and objectives. The megatrends of the world 900 have caused Charlotte to emerge as a mega- viable economic entity for the 21st century." "Charlotte and Mecklenburg and Ra- 800 leigh/Durham/Chapel Hill kind of got the jump and took the marbles home," Baker says. "How permanent that is and what it means over the long run, I don't know." 700 Of course, there's the issue of whether 1984 1986 1988 1990 BUSINESS / NORTH CAROLINA 32 Entscheidungen (Decisions) Find out what this European head of state is doing to your dollar. Just because you don't speak the language doesn't mean you can't understand what you need to know to make informed decisions. European Journal gives you the news you need from a Continental point-of-view in a language you'll understand. You'll find out what men like German Chancellor Helmut Kohl (above) are saying about the European Currency Union, and what that Union means to the American Dollar. Each half-hour program contains eight to ten stories dealing with politics, economics, art, culture, finance, sports, the environment and more. Newsmakers and events that shape the future of Europe and your business are waiting for you. Join them for the best Continental Breakfast in the States every Monday morning at 7:30. European Journal WUNF-TV 33 Asheville WUNC-TV 4 Chapel Hill WUND-TV 2 Mondays at 7:30 AM Columbia WUNG-TV 58 Concord/Charlotte WUNK-TV 25 Greenville. Silver Medal Winner "Best News Magazine" WUNM-TV 19 Jacksonville 1991 New York International Film and TV Festival WUNE-TV 17 Linville WUNP-TV 36 Roanoke Rapids North Carolina Public Television WUNJ-TV 39 Wilmington WUNL-TV 26 Winston-Salem Worth Watehing NWorth Paying For ECONOMIC ALMANAC million, really worked together, the Triad could wield as much political clout as "The area just does not have Charlotte or Raleigh/Durham. They also say that the Triad could compete successfully the enthusiasm for itself that for corporate relocations if it marketed the combined resources of the three cities and Metrolina and the Triangle have," surrounding counties. William Carstarphen says. "It's not "The Triad is what one person once quite sure what's happened to it." described as a polynucleated urban region," UNC-Charlotte geography Professor Al Stuart says. "There's no there there." the region really wants the kind of growth The Triad is busy trying to remedy that. Charlotte and Raleigh have experienced. "The major business people are seriously "Not everything that has taken place in sitting down and looking for ways to do Charlotte and Raleigh/Durham has been things better as a region," Melvin says. positive," says Marc Bush, senior economic Witness the number of CEOs who gathered developer for the Greensboro Area Chamber in Winston-Salem to show the UNC Board of Commerce. Along with urban amenities of Governors they favored setting up come big-city problems: traffic congestion, graduate engineering programs. more murders and other crimes and a "We're beginning to look inwardly at strained infrastructure. ourselves as a single regional entity and "We don't want to be a Charlotte or a asking ourselves how do we make that Raleigh," Bush says, echoing the sentiments entity compete worldwide," Melvin says. of many. The current growth rate, he says, Phillips cites the Piedmont Triad Partner- "is where this region wants to be." ship, an 11-county marketing alliance, as an Besides, Baker says, what he calls an instance of how the region is working emerging democracy is changing the way together. the Triad is run: "The fact is, there's a He admits, though, that setting it up was broader sense of governance within our a real struggle: "There are a lot of suspicious communities. There's a sense of everybody people in these surrounding counties who wants to kind of sit at the table a little." just don't trust Greensboro, Winston-Salem This may not be as efficient as a small and High Point because they felt they group of powerful leaders calling the shots, wouldn't get a fair shake." Indeed, rural nor does it build wealth as effectively. "But I counties surrounding the Triad's three think it's pretty healthy," he says, "and in major cities grew much more slowly in the the end you end up with a fairly strong '80s than those ringing Charlotte. Still, the sense of community." Triad counties have committed $300,000 a But to stay even with past growth, the year for three years and have hired a staff Triad will have to work harder than it did for the partnership. during the '80s because of increased na- Although Greensboro and Guilford tional competition and slower population County took the lead, Triad leaders worked growth. DRI/McGraw Hill estimates that together last year to lure the United Airlines the population of the Metropolitan Statisti- jet-maintenance center — and came close to cal Area around Greensboro, High Point getting it. United chose Indianapolis for the and Winston-Salem will grow at a little less $1 billion hangar complex. The Triad went than 1% a year from 1990 to 2000. From 1982 all out, offering $298 million in incentives in to 1990, the area grew 3% annually. a bid for 6,300 new jobs. Melvin and other influential voices in the "It's important that these communities Triad say regionalism is the surest way to conduct a self-assessment and understand foster growth. They maintain that if the 11- what they have to offer," says Gene DePrez, county area, with a total population of 1.4 vice president and principal in the New BUSINESS / NORTH CAROLINA 34 SIXTEEN THOUSAND EARS OF EXPERIENCE. The 8,000 men and women of CP&L are all ears when it comes to our customers. From meter readers to marketing reps, from power engineers to customer account reps, CP&L people listen. We heard you loud and clear when you said you'd like help financing energy improve- ments. We heard you again when you told us you'd like help financing new high-efficiency heat pumps. And we also hear those less fortunate through our work in Project Share. In every community we serve, we listen closely to the people who live and work in those communities. We urge you to put our many ears of experience to work for you. Just write or give us a call. Remember, we're all ears. CP&L Where Listening Generates Powerful Ideas. Pine ECONOMIC ALMANAC York corporate-relocation firm PHH look pretty good for manufacturing Needles Fantus. "It's like any marketing in the future," Baker says. "I think situation. You ask, 'Who should we when you look at some of the go after?' You can't take a shotgun companies that have been through Resort approach and go after everybody. restructuring here in the Triad, That's not going to work." they seem to be emerging nicely, The Triad's problem is not showing pretty good results and knowing what it wants. "I came to will eventually lead to some Greensboro seven years ago, and employment gains." then I felt Greensboro wasn't sure Things are looking up for a what it wanted to be when it grew number of manufacturers, includ- up," City Manager Carstarphen ing Burlington Industries, Guilford says. Seven years later, the identity Mills, Oakwood Homes and crisis continues. Fieldcrest Cannon. Others, includ- "Back in the 1920s, someone ing RJR Nabisco, Unifi and Sara coined the name Gate City," Jud Lee, have weathered the recession says, "because they thought we practically unscathed. were going to be a gateway to the "I think we need to be the South, another Atlanta. But since finest, quality manufacturing then I don't think people have center in the Southeast," Car- taken those types of ambitions starphen says, "but unfortunately A Tradition seriously. our leadership hasn't focused on "The problem, if it is a problem, that as a single objective." Year After Year. is that we don't have a real entre- Peter Reichard, executive preneurial class who are willing to director of the Greensboro Area use their influence to make this Chamber of Commerce, agrees: region grow rapidly. Now we've "What we have not done is brought The traditions of Pine Needles lost some industrial base and in the upper-end, head-of-house- Resort. Donald Ross and the we've got concerned, but it's hold-income jobs," he says. "I don't popular 18-hole golf course. questionable whether the level of think anyone needs to be ashamed Peggy Kirk Bell. Golfari Golf concern is sufficient to make us do of manufacturing." Schools. Couples Jamboree. Dr. Jim Suttie and The Learn- something." Baker wonders whether the First, the Triad needs to figure individual cities can ever abandon ing Center. Gracious southern hospitality and fine dining. out what that something is. "The their internecine factionalism: "The It began in 1927 and contin- Triad has probably not decided Triad is still a number of separate ues today. Come experience what to market itself as," says Gayle cities and counties that have premium golf and casual Anderson, executive vice president started to work together," he says. elegance. Pine Needles Resort of the Greater Winston-Salem "It remains to be seen whether the where the tradition of Chamber of Commerce. area will actually pull together as great golf awaits. Manufacturing remains its an economic entity." For information on our golf strength, though that may not seem "I don't think the three cities packages, golf schools or as appealing given the national shift that make up the Triad even know meeting facilities, call or write: toward more white-collar jobs. where each other are," Mebane Wachovia's Durden, however, says. "You know, people in believes the area's future is inextri- Greensboro don't care a thing cably tied to manufacturing. "They about people who live in High want to sell services and technol- Point, and people in High Point ogy," he says. "That's popular. But don't care about people in Win- Pine Needles Resort they should be talking about a ston. They call it the Triad, but they manufacturing work base." don't do anything together that P.O. Box 88 Pinehurst, NC 28374-0088 "My guess is that things will means anything." 919-692-7111 BUSINESS / NORTH CAROLINA 36 HAND PVENUE BALTICE PARK UNIVERSITY CHICTT LUXURY they ON TOP ON TOP CARD FOLLOW AVENUE AVENETER- MEDITER BO ALK PAY $75.00 VIII COLLECT PRICE $60 $200 00 SALARY AS YOU PASS PRICE 5400 DEED TITYLE $5$ RENTA A With 2 With Hou Houses House With Because location is everything. B eing at the right location at the right time can be crucial in apartment units, three surviving today's strategic business world. 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In real Convention Center, a complex with over 522 newly appointed guest life, it's the best way to rooms and 200,000 square feet of prime meeting and exhibition play the game. space, as well as the adjacent Four Seasons Town Centre, with 1.3 If you play to win, million square feet of call Koury today. retail space. The hotel and shopping mall form one of the largest multi-use facilities in the Southeast. Koury Koury has developed its own corner of the Corporation market with over 1,000 Owner/Developer 919-299-9200 MONOPOLY® game equipment used with permission from Parker Brothers © 1935, 1985. Greensboro, North Carolina ECONOMIC ALMANAC STILL HOLDING THEIR OWN Outside the domain of the metropolitan centers, smaller cities control their own economic principalities. By Luann Nelson and David Mildenberg n 1974, a young lawyer named Louis rising tide lifts all ships," says Martin Bissette Jr. moved to Asheville to head a Nesbitt, an Asheville native and legislator new bank. Coming from Charlotte, where since 1979. "But that hasn't happened in the growth sometimes seemed an end to itself, last six or eight years." he was taken aback by attitudes he encoun- With some notable differences, similar tered in his new hometown. trends were evident in the state's five other "I was amazed when I first moved here second-tier metropolitan areas: Fayetteville; when I'd have people tell me, 'We've got Greenville; Hickory/Lenoir/Morganton; such a great thing going here, we don't want Rocky Mount/Wilson; and Wilmington. people to know about it,' says High Point Each is far enough from the state's three native Bissette, who was mayor of Asheville major metropolitan centers to retain its from 1985 to 1989 and now practices law. identity. Each possesses singular strengths, Be careful what you wish for. You might such as tourism in Asheville and Wilming- get it. In the 1980s, Buncombe County's ton, the military in Fayetteville, furniture population grew by 15,000, up 8.5% to and telecommunications in Hickory, bank- 175,000. Decent growth, to be sure, but well ing in Rocky Mount/Wilson and medicine below the state's 12.7% average. Likewise, and education in Greenville. Each is a the increase in per capita income in Bun- regional distribution, retailing and medical- combe and neighboring Henderson County services center - a distinction that sets underperformed the state as a whole, them apart from Goldsboro, Jacksonville, defying the conventional wisdom that Kinston and other midsized cities. wealthy retirees are enriching the area. Each has an enviable standard of living Though it may be one of the world's largely devoid of many of the problems most beautiful places to live, Asheville was facing the metro centers. But there's a trade- a minor participant in the state's boom of off involved. None has big-city political the '80s. That's hardly what Garrett AlDefer, clout, marketing power, name recognition a former executive director of the Asheville nor amenities. Combined, their growth in Chamber of Commerce, anticipated when he total employment and retail sales barely told BUSINESS NORTH CAROLINA in 1983, topped the state average, while growth in "We're on the very verge of the greatest population, total personal income and growth we've ever known." average annual wages trailed slightly. "There's a theory in this state that a Though it might satisfy some, such modest BUSINESS / NORTH CAROLINA 38 Moderate growth suited North Carolina's second-tier regions in the '80s. But attracting jobs that slow the migration of talent remains a major challenge. YUNG SHENG TSAO APRIL 1992 39 ECONOMIC ALMANAC growth isn't likely to stem the migration of happen." Among those with a moderate ap- many high-school and college graduates to petite for expansion is Ken Michalove, a for- larger cities. mer city manager who has been mayor since Steve Holt, executive director of the 1989. "We aren't looking for an explosion of Asheville chamber for the past two years, growth," he says. "We really don't want it." sees his job in those terms. "There are seven Measured growth would be fine if the high schools in this county, and we need to city was attracting more jobs that pay good be producing jobs for those graduates." wages. But aside from some well-to-do But growth is a controversial topic in neighborhoods in North Asheville and the Asheville, setting it apart from the other ritzy three-square-mile town of Biltmore second-tier regions, which tend to be Forest (an enclave bounded by Asheville on unabashed in their support for develop- three sides and the Biltmore Estate, from ment. "Asheville is a drawbridge commu- which it was carved in 1923, on the other), nity," observes Phil Carson, a lawyer who Buncombe County has never been known as has lived there since 1967. Once people a prosperous place. move in, he says, they want to pull up the In the '80s, the county had a net loss of drawbridge and keep others out. about 1,000 manufacturing jobs and has lost "There's a segment of the business nearly that many more during the recession community that would like to see Asheville of the past two years, according to Jim explode," says Doug Stafford, who headed McMahan, manager of the Asheville office the city's convention and tourism bureau of the Employment Security Commission. before taking a similar job in Charlotte. "But Among the past year's closings were a most of the citizens don't want to see much Burlington Industries plant that employed TREND Second-tier shuffle Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Asheville region Buncombe 21,160 20,100 (5.0)% 4,660 5.9% 3,033 3.3% Henderson 6,580 7,700 17.0 1,170 4.6 1,084 3.1 Hickory region Burke 16,180 18,970 17.2 2,190 6.8 1,702 3.9 Caldwell 16,240 17,300 6.5 2,910 8.7 1,639 4.3 Catawba 34,350 41,650 21.3 4,010 6.9 3,071 4.3 Fayetteville region Cumberland 11,570 12,470 7.8 6,090 8.5 4,414 4.7 Rocky Mount region Edgecombe 6,730 7,210 7.1 2,690 9.1 1,476 5.0 Nash 11,500 14,480 25.9 2,520 7.2 1,759 4.7 Wilson 8,320 8,620 3.6 3,120 9.1 2,462 7.0 Wilmington region The six second- New Hanover 9,990 9,450 (5.4) 3,670 7.6 tier regions 2,756 4.2 Greenville region encompass 11 counties. Growth Pitt 8,140 9,490 16.6 3,410 7.3 2,084 3.5 in manufacturing Second-tier jobs failed to 117,200 128,610 9.7 36,440 7.4 25,480 4.2 boost wage rates North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 or income levels. United States 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 40 550 and Sayles Biltmore Bleacheries, a Overall, Asheville leaders say the finishing plant that had 300 workers. manufacturing base is on more solid footing DRI/McGraw Hill, a Lexington, Mass.- than a decade ago. "I think we've got the based forecasting company, predicts kind of manufacturing industries that do Asheville will continue losing manufactur- well," Bissette says. As examples, he points ing jobs while attracting more retirees in the to such major employers as Square D, '90s. Rosalind Greenstein, a DRI/McGraw Westinghouse, Rockwell International and Hill senior economist, thinks Asheville/ BASF, each employing more than 400. Hendersonville's population will grow by Still, Asheville's high regard for the about 1.5% a year, much better than the environment means economic developers estimated state growth of 1.05%. "We're have a tough row to hoe to plant the seeds basing that estimate on an expected influx of of industrial growth. The irony is that, as retirees," she says. Bissette notes, western North Carolina One silver lining, according to probably needs economic development as Michalove, is that Asheville's manufactur- much as any section in the state. The ing jobs are shifting from relatively low- poverty rate in Buncombe County is 21%. "I paying, low-tech textile and apparel work to really think our problems relate to the more skilled machining and electronics economic opportunities for the people that tasks. That trend was typified by the high- live here," Bissette says. water mark of industrial recruitment in "We do live in a place that is not only recent years in Asheville: an ITT Teves plant beautiful but which has a geography that that opened in 1987 and now employs about defines it and limits it," says Sandy 750 people who make anti-lock brakes. Wisniewski, an industry recruiter in west- Average annual wage Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $18,331 2.9% $2,730,323 28.5% $1,830,494 16.2% 17,766 3.3 1,173,263 41.0 597,083 22.0 17,525 3.7 1,063,587 23.2 441,007 12.6 16,594 7.5 983,190 23.8 456,532 17.1 18,243 9.5 1,927,473 35.3 1,362,681 16.4 17,833 5.5 3,473,479 25.4 1,890,482 23.6 17,232 (0.5) 721,852 16.8 345,005 0.9 17,786 11.5 1,166,312 36.3 891,124 19.0 18,013 1.5 970,896 18.4 739,415 31.3 18,488 1.8 1,893,730 36.9 1,596,553 38.6 18,085 9.1 1,543,150 42.6 960,024 29.6 17,809 4.9 17,647,255 30.1 11,110,400 22.2 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 41 ECONOMICALMANAC ern North Carolina for the N.C. Department for it," Carson says. "It does not have going of Economic and Community Development. for it a very good track record of attracting "That leads to a lot of debate." quality industry and high-paying jobs for Quality-of-life issues tend to get shorter the people of the county." shrift in other second-tier areas. Economic- Right now, the retail, service and manu- development experts consider the Hickory facturing sectors each employ 20,000 to area hungrier for growth and more open to 22,000 people in Buncombe County. That's entrepreneurial start-ups than Asheville. an enviable balance, McMahan says. But if "All of the counties in this area are ex- current trends persist, Asheville will become tremely aggressive in terms of economic increasingly dominated by its tourism and development," says Robert Dunn, service industries. And everyone knows Wisniewski's colleague in the northwestern desk clerks and restaurant waiters rarely part of the state. "The Hickory metropolitan earn as much as machinists or loom fixers. area has the highest percentage of manufac- "The base employment of our people is turing workers in the nation, and this tends sound," says legislator Nesbitt, who is co- to attract additional manufacturing." chairman of the House Appropriations Some Asheville leaders acknowledge Committee. "But the missing link is bringing that their region has been out-hustled in in high-paying jobs. We did well in the early attracting industry. The Hickory/Lenoir/ 1980s, but since then, things have slowed." Morganton region added nearly 11,000 That's one reason civic leaders are so manufacturing jobs in the '80s. Nash and excited about two recent gains: the February Edgecombe counties in the east gained transfer of VME Sales North America's about 3,500. Lack of flat land for major headquarters from Cleveland to Asheville industrial operations in Buncombe County and a $5 million, 130,000-square-foot gets part of the blame. Another factor is expansion, now under way, at New York- Annual construc- Asheville's creaky infrastructure, including based catalog retailer Clifford & Wills' 3- tion in the 11 counties that an antiquated water system that leaks an year-old distribution center near the make up the incredible 5.63 million gallons of the 23 Asheville airport. The company already second-tier million-plus gallons pumped from the city's employs 500 full- and part-time workers. regions peaked at more than two reservoirs each day. But such problems The VME move was intended to put the $900 million in are manageable, civic leaders say. sales and marketing headquarters close to 1987. "Asheville has all the good things going its 20-year-old plant in nearby Skyland, TREND where 200 people produce wheel loaders and articulated haulers. VME is a joint Construction slowdown venture between Sweden's Volvo and South Value of all construction, from building permits Bend, Ind.-based Clark Equipment Co. (in millions) Gains like these - of 49 families trans- $1,000 ferring in and 20-plus new white-collar jobs for locals at VME and of 140 new ware- house-type jobs by the end of the year at 900 Clifford & Wills - represent the "clean" kind of new business that civic leaders say the people of Asheville want. "There is such a focus here on quality of life and on the 800 environment in which we live from a scenic standpoint, from a resource standpoint, that people don't get so negative about growth if 700 they can see it doesn't harm the environ- ment," says Don Harrison, Asheville city executive for First Union National Bank. 600 1984 1986 1988 1990 David Brown, chancellor of UNC- BUSINESS / NORTH CAROLINA 42 ABOVE ALL Homesites, estate homes and cottages in a private country club community. high in the Blue Ridge Mountains overlooking Grandfather Mountain and the Linville Valley. Enjoy golf on one of the world's finest mountain courses or tennis or hike forest trails lush with wildflowers and mountain laurel or relax in the cool LINVILLE RIDGE mountain air and enjoy the NORTH CAROLINA extraordinary views. P.O. Box 704. Linville, NC 28646. 704/898-5151 ECONOMIC ALMANAC professor. The growth of ECU's medical complex in Greenville has meant many in Success in the '90s will require the East are going there rather than to Duke or UNC for treatment, he notes. "creative, adventuresome Similar regionalization has occurred in thinkers" who can effectively retailing. In 1989, Buncombe had 3.2 million square feet of retail space; since then, an promote their regions, former UNC- additional 2.2 million square feet has come Asheville Chancellor David Brown says. on line. Much of that growth came from the 1989 opening of Biltmore Square Mall, partly owned by the George H.V. Cecil Asheville from 1984-90, calls such develop- family, heirs of the Vanderbilts and ment the "Grove Park Inn way," referring to Asheville's most prominent business family. the city's famous resort that combines (George Cecil's brother, William, owns elegance with a country feel. For companies Biltmore House, the largest private house in and individuals who put a premium on the country.) The mall had a sluggish start beauty, Brown notes, Asheville is North as competing 18-year-old Asheville Mall Carolina's answer to such mountain cities as expanded to 945,000 square feet. Observers Santa Fe, N.M., Provo, Utah, or Boulder, say Biltmore Square's business has picked Colo. "There is a very large population of up since Belk opened its store there a year business-locating executives who want very ago. With Belk, Dillard's, Hess's, J.C. much the mountains but do not want to give Penney, Proffitts and Sears, Asheville has as up the amenities of their harried cities," he many different department-store operators wrote in a memo to Asheville civic leaders as Charlotte or Raleigh/Durham. Now, the in July 1990, shortly before becoming only major retail concept Asheville lacks is a provost at Wake Forest University. "What warehouse-club store, Don Harrison says. we need to do is preserve and enhance the Tourism revenues have also doubled, aesthetic and quality of life in our environ- along with the number of hotel rooms, since ment and promote the heck out of it." 1983 when Asheville instituted a 2% room A shared blessing for Asheville and tax (since increased to 3%). The tax brings in others on the second tier is a booming $1.67 million a year for travel promotion, medical industry cushioning the loss of says Steve Miller, senior vice president of manufacturing jobs. Memorial Mission Biltmore Co., which operates Biltmore Hospital, the city's largest employer with Estate, and chairman of the Buncombe 1,918 workers, saw its revenues rise from County Tourism Development Authority. $70 million in 1984 to $166 million in 1991. To thrive in the '90s, the second-tier This growth was in part due to the more cities will require "creative, adventuresome than 11,000 Buncombe dwellers over age 65. thinkers" who understand how to promote A 1989 study by Bill Haas, a UNCA sociol- their areas, Brown says. Asheville has its ogy professor, found that the average share of visionaries. Most notable, perhaps, retirement household spends $38,500 is Roger McGuire, a retired Southern Living annually, which creates myriad jobs. "It's magazine executive who moved there a bag boys, retail clerks. But mixed in there dozen years ago and led development of the are doctors and nurses." $14 million Pack Place Education, Arts & Other second-tier regions have also Science Center downtown. In addition to benefited from cutbacks at rural hospitals, giving $250,000, he helped raise $8.5 million which forces country folks to seek treatment — three times more than any previous in bigger cities. "During the '80s there was a private fund-raising project in Asheville. significant shift in medical services away "Pack Place is physical proof of the from rural areas," says Robert Schellen- turning of the people's minds towards the berger, an East Carolina University business future," says McGuire, named the Asheville BUSINESS / NORTH CAROLINA 44 If We're Not Careful, We May Lose Our Minds. Tonya Robinson: 21 years old; brilliant; a natural leader. With her ability, Tonya might have gone to Harvard, Yale, or Princeton - but she didn't. She chose a Duke Power scholarship and is now president of the student body at Duke University. T H E Without the Tonya Robinsons of our area to provide strong leadership, DUKE POWER SCHOLASTIC the Carolinas of tomorrow are at risk. That's why Duke Power requires that its EXCELLENCE AWARDS six annual scholarship recipients attend schools in the Carolinas. The hope is that, upon graduating, they will choose to stay and apply their special abilities to business, education, and government in the Carolinas. Duke Power is proud to dedicate its efforts not only to DUKEPOWER finding our best minds, but to never losing them. Smart People With Energy ECONOMIC ALMANAC Citizen-Times' first Citizen of the Year in Jan- numbers would justify, but they are active, uary. "The most important thing going on and they are becoming more skilled in here, I believe, is that Asheville is regaining lobbying activities." its civic confidence. There had been a make- As Asheville's problems show all too do attitude that was throttling things." clearly, economic trends don't recognize But growth requires more than vision. county lines. The challenge for Asheville - "We have a problem in that we don't have as for other second-tier cities - is to find very many locally owned major businesses," new ways to prosper while much of the Bissette says. "We don't have an R.J. Rey- state's growth occurs in larger metropolitan nolds or Belk or Hanes or Jefferson-Pilot. We areas. Regionalism is gaining favor, exem- just don't have the kind of financial clout in plified by a new seven-county marketing our business community that can make effort called CarolinaWest, aimed at raising things happen the way it does in a number the region's profile through trade missions of cities." Since Akzona Inc. was taken and national advertising. "We've got to private by its European owner in 1982, think with a regional hat on," First Union's grocery chain Ingle's Markets has been the Harrison says. "We're still pretty provincial only major public company based in Bun- up here. Too many people think business combe. "When Akzona left, we lost that flair begins or ends at the county line." that you could go to for corporate support at Nor should economic growth in North a level that other places enjoy," Carson says. Carolina end at the Wake or Mecklenburg Adds Doug Orr, a former UNC-Char- county lines. It's shortsighted to expect lotte administrator who is now president of Asheville and other second-tier areas to Warren Wilson College in Swannanoa, just grow without concerted statewide develop- east of Asheville: "We don't have a Hugh ment efforts. Greenville outperformed the McColl." other second-tier cities in the '80s by most measures, reflecting the economic impact of n early '80s study by New York-based PHH the ECU medical school. Imagine what Fantus Corp. predicted that Asheville would would have happened in Pitt County had benefit as Fortune 500 companies decentral- the General Assembly put the school in ized and set up regional offices in lower-cost Charlotte. Likewise, the challenge of making cities. That forecast proved dead wrong as Asheville attractive for both business and many closed their regional operations. And retirees has importance beyond Buncombe. as banking and other industries have "People moving to Asheville don't want consolidated, second-tier cities increasingly it to be an age ghetto like some parts of have become branch-office towns. "There's Florida. They want it to be a part of society no doubt that one of the major factors that that is ongoing and substantial," Brown can make or break a city is the existence of says. "I think that can be pulled off but it's headquarters offices," Stafford says. not realistic for the people of Asheville to do "There's a disproportionate amount of it by themselves. You're also going to need corporate giving in the headquarters cities," the support of the major thinkers and McGuire notes. "I'm not complaining entrepreneurs in the state. Research Triangle because that's the way it is. But it means we Park wasn't pulled off just by people in the need to work together more." Triangle." Without major corporations or founda- Just the mention of RTP seems to rile tions to look to, Asheville must depend Nesbitt. "My people's money built the more on government to provide the impetus Research Triangle Park," he says of his for big projects, McGuire says. But that's constituents. "But when I hear someone say difficult given the contentiousness of local that it's a beacon of hope, I sometimes say politics. "There are an awful lot of special- that up here we can't see the light over the interest groups in Asheville," Bissette says. Continental Divide. We need to try to create "They probably have more impact than their some balanced growth in this state." BUSINESS / NORTH CAROLINA 46 IN NORTH CAROLINA IT'S A WIN, WIN, WIN, WIN SITUATION Site Selection and Industrial Development magazine has named North Carolina #1 nationwide in new manufacturing facilities four out of the past five years. North Carolina has also 1 ranked #1 nationally in new and ex- panded international facilities for the past IN AMERICA three years. In addition, two of the nation's New Manufacturing Plants top four metropolitan areas for new manufacturing facilities are located in North Carolina. Why? Because behind all of these winning numbers are all the III reasons industry keeps choosing North Carolina over other locations. Reasons NORTHCAROLINA like our productive well-trained workforce The Better Business Climate and our right-to-work industrial climate. Our lowest-in-the-nation construction costs. Our excellent transportation, in- cluding the nation's largest state-main- tained highway system, two deepwater 1987 ports, 20 rail carriers and two major inter- national airline hubs. Plus, North Carolina offers some of the most hospitable com- 1988 munities and diverse recreational oppor- tunities you'll find anywhere. If you're looking for a winning busi- ness location, with everything your 1989 business needs to succeed, call Richard J. Roberson, Director of Client Services at (919) 733-4977, Fax (919) 733-9265. 1991 NORTH CAROLINA The Better Business Climate North Carolina Department of Economic and Community Development, Business/ Industry Development Division, 430 N. Salisbury Street, Raleigh, North Carolina 27611. ECONOMIC ALMANAC A WORLD APART While struggling to find its way, rural North Carolina falls farther behind. By Jane Ruffin wo years ago, Hamlet was on a roll. The economy of many of the state's small towns National League of Cities named it an All- and rural areas. America City for rescuing its tiny hospital While they strive for economic growth, from financial doom, expanding its immacu- better jobs and upgraded schools, these late library and holding an annual festival places have been unable to break free from celebrating its heritage as a railroad town. the past. Too often, their work force is Abbie G. Covington, the sprightly unequipped for jobs outside textile mills and mayor, saw the award as an important poultry plants. Despite some success at symbol for the Sandhills town of 6,196. It diversification, low-skill industries remain showed, she says, "you may have problems, the lifeblood of much of North Carolina. but you can do something about them." In a The irony is that Hamlet, like the rest of burst of civic pride, the town lined Main Richmond County, is not particularly Street with All-America City banners. depressed. Parts of downtown are shut- Then last Sept. 3, a fire at Imperial Food tered, but there are also blocks of substantial Products, a plant that cooked and froze brick houses and well-kept yards. At the chicken breasts, melted Hamlet's self- Seaboard Station Restaurant on Charlotte assurance. The town was left to contend Street, the meatloaf is greasy, but lunch with the horror of 25 deaths and 56 injuries, business is robust. Though the county's to say nothing of the loss of more than 200 population fell by 1.4% in the '80s - a loss jobs. "Probably the highest and lowest of more than 600 people - it added 4,500 points in my life were covered in the last 18 jobs, and per capita income growth was near months," Covington said several weeks the state average. after the fire. Flags at half-staff overshad- Billy Ray Hall, president of the North owed the All-America City banners. Carolina Rural Economic Development Hamlet's can-do image was supplanted Center, says, "Richmond County is typical by national notoriety as a place where $5.50- of rural North Carolina in the sense that an-hour workers died behind locked doors they've been holding on." Still, he says, the and blocked exits. The event became sym- county is vulnerable to blips in the market- bolic not only of grotesque failures in place - a drop in demand for a certain type government workplace-safety programs but of clothing, say, or new technology that of all that is wrong with an economy built eliminates jobs. on the low-skilled and poorly paid - the "We've been lucky, and we haven't been BUSINESS / NORTH CAROLINA 48 With a fragile economy built on low-wage, low-skill jobs, rural North Carolina must remake its work force as its industries remake themselves. YUNG SHENG TSAO APRIL 1992 49 ECONOMIC ALMANAC TREND No feast in the East Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Anson 4,190 4,220 0.7% 800 6.4% 539 4.5% Beaufort 5,380 5,880 9.3 1,130 5.4 1,070 5.4 Bertie 3,160 3,810 20.6 730 7.9 459 5.3 Bladen 3,590 3,580 (0.3) 1,200 8.8 850 6.7 Brunswick 3,210 2,680 (16.5) 1,420 8.4 1,459 7.9 Camden 60 150 150.0 180 7.1 83 3.5 Carteret 1,980 1,530 (22.7) 1,330 8.1 1,062 4.6 Chowan 1,340 1,440 7.5 330 6.5 314 5.6 Columbus 6,030 6,210 3.0 2,020 8.6 1,276 5.8 Craven 4,010 4,600 14.7 1,980 7.0 1,513 4.7 Currituck 150 90 (40.0) 340 6.8 235 2.4 Dare 170 500 194.1 500 7.4 696 4.0 Duplin 4,260 6,300 47.9 1,410 7.9 1,093 4.9 Franklin 2,140 2,050 (4.2) 1,240 10.2 897 4.8 Gates 180 230 27.8 160 5.1 115 3.0 Granville 3,250 5,570 71.4 1,130 7.1 900 4.4 Greene 810 990 22.2 570 6.9 310 3.5 Halifax 6,410 6,310 (1.6) 2,060 9.1 1,397 5.9 Harnett 4,860 4,930 1.4 1,710 6.6 1,257 4.3 Hertford 2,490 2,180 (12.5) 950 7.7 490 5.4 Hoke 2,980 3,610 21.1 630 8.3 595 5.8 Hyde 130 220 69.2 230 7.5 204 9.2 Jones 200 340 70.0 260 6.6 220 4.7 Lenoir 9,030 8,160 (9.6) 2,130 7.2 1,472 5.0 Martin 5,010 4,430 (11.6) 930 7.6 630 5.5 Montgomery 6,250 6,660 6.6 650 6.0 732 5.9 Moore 5,930 6,980 17.7 1,270 5.3 1,124 3.6 Northampton 1,560 1,020 (34.6) 740 8.8 387 5.1 Onslow 3,190 2,980 (6.6) 1,920 7.2 1,543 3.9 Pamlico 520 650 25.0 290 7.0 205 4.4 Pasquotank 1,360 1,120 (17.7) 930 7.4 555 4.2 Pender 640 1,030 60.9 760 8.3 686 4.5 Perquimans 380 450 18.4 220 7.0 147 3.7 Person 4,180 4,640 11.0 1,560 11.0 1,013 6.5 Richmond 6,030 8,140 35.0 1,780 9.5 1,273 5.6 Robeson 13,930 15,220 9.3 4,790 10.4 3,363 7.3 Sampson 5,210 5,040 (3.3) 2,120 8.5 1,090 4.7 Scotland 8,090 7,900 (2.4) 1,450 9.5 1,242 8.0 Tyrrell 130 110 (15.4) 200 13.8 208 14.1 As a region, the Vance 6,100 7,190 17.9 1,600 9.0 1,556 8.2 East outpaced the Warren 1,180 1,600 35.6 480 8.1 416 5.3 state and nation Washington 540 510 in creating (5.6) 460 6.6 261 4.7 manufacturing Wayne 8,980 9,370 4.3 2,740 7.0 2,208 4.8 jobs. But many East of its counties 149,220 160,620 7.6 49,330 7.9 37,145 5.2 missed out on the North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 '80s boom. United States 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 50 Average annual wage Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $15,734 2.7% $306,183 19.4% $110,563 (7.6)% 16,693 1.4 554,599 14.2 333,998 (6.7) 14,180 5.1 247,016 22.0 62,792 (23.0) 16,195 5.9 341,865 14.7 164,355 22.5 20,430 (0.4) 597,692 59.4 339,802 81.8 13,743 6.1 81,246 16.7 14,102 (3.4) 13,362 (3.6) 698,243 38.0 457,743 51.6 15,948 5.8 174,763 27.3 86,089 (8.0) 16,970 1.8 584,220 12.7 327,577 (8.5) 18,687 1.4 1,125,648 31.3 558,266 7.7 14,550 8.5 180,534 36.8 88,729 23.6 14,429 19.8 331,998 107.1 456,290 174.1 15,222 10.0 454,335 25.0 210,363 (21.6) 14,442 3.7 420,544 38.0 155,132 (3.8) 14,107 0.1 121,607 29.1 35,309 20.7 18,207 9.8 500,473 40.1 178,625 11.6 15,102 14.5 181,176 9.1 52,276 3.6 16,125 0.7 664,896 19.1 393,466 (3.8) 15,068 3.7 749,190 27.2 362,384 9.9 14,586 4.1 276,105 12.4 204,101 5.6 15,976 4.6 222,459 30.3 62,275 (9.0) 12,352 (0.0) 67,402 9.3 29,659 6.5 14,167 (0.7) 106,718 6.9 38,009 4.1 16,597 (3.1) 799,482 14.5 498,573 (6.0) 18,994 3.1 339,495 17.9 157,937 (17.5) 15,050 3.4 290,166 22.7 134,355 5.9 16,128 6.1 1,053,689 51.7 484,000 37.7 14,891 11.5 256,750 14.0 55,982 (44.3) 13,989 (7.6) 1,553,697 43.1 640,676 18.7 12,024 (1.7) 141,080 17.7 42,404 21.1 15,596 5.4 395,490 20.0 292,752 15.2 13,446 3.7 359,275 49.6 101,288 13.7 12,027 (5.5) 126,706 41.1 31,604 (37.2) 16,560 2.5 382,601 22.7 178,379 3.7 15,730 0.4 549,213 16.9 291,217 7.3 15,438 6.8 1,061,626 15.2 657,603 12.5 14,888 0.8 592,641 13.8 273,523 (15.5) 17,599 1.8 413,364 14.1 237,042 4.0 14,954 16.9 42,719 20.0 18,112 (18.4) 15,532 1.6 483,157 23.6 301,545 11.6 14,107 6.2 193,412 19.9 58,613 (9.7) 13,840 (0.6) 172,999 10.8 75,848 (24.3) 16,038 1.9 1,291,344 17.9 840,779 15.2 15,342 3.5 19,487,818 26.2 10,094,137 10.0 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 51 ECONOMIC AIMANAC Wages were bottom rung at Imperial, but the unskilled have HORIZON BOOKS few choices. They found work in a No refunds or exchanges without receipt factory that timed trips to the bathroom 68256 8:23 pm 04/13/92 and had a history of disregard for safety. S MAGAZINES 1@ 2.95 2.95 SUBTOTAL TAX 2.95 TOTAL .18 lucky," says Johnny S. Sutton, the county's CASH PAYMENT 3.13 industrial-development director. "For rural CHANGE 3.25 .12 areas, in terms of creating new jobs, I think Thank you, please come again! we stack up to most rural areas of the state - non-metro, non-interstate areas." "As a rule, the people in the county are hungry for opportunity," says Steve Shelton, who was manager of the Rockingham county school aaministrator. musuy 1100 Stainless Steel plant, which closed last year. sort of forsaken this town." Workers had "Around here, a lot of people feel they're little choice about settling for jobs at Impe- lucky to get a job." rial, he says. "They haven't got any other Once, Hamlet distinguished itself from place to work." Employment is scarce even the rest of the Richmond County. It was a for those who go off to college. Mask raised company town - the company being the two sons - now both doctors — and a Seaboard Air Line Railroad and its succes- daughter. None plans to return to Hamlet. sors - to which nearly every family had a "Ain't nothing to come back to," he says. tie. But railroads declined, eroding Hamlet's "Really, they would come back if there was identity. Today its children attend county something to come back to." schools, and the county has one chamber of A couple of miles from his house, tucked commerce, one community college and one in the rear of the train depot on the south industrial-development director. end of Main Street, the National Railroad "We have a broader-based economy," Museum exults in the town's history as a Mayor Covington says. "It's not just the rail center. "Oh, lordy, we just got history railroad anymore. There are industries goin' to bed!" says Julius A. Crowell, the 76- around the perimeter of town, and that's a year-old retired conductor who mans the blessing, because as the economy changes, place on weekends. At the slightest urging, the changes in one industry don't close us." he will start up a model of the Orange She points to plants such as Owens- Blossom Special, filling the museum air with Illinois, which opened north of Hamlet in the music of a steam engine's whistle. 1983 to produce plastic bottle caps, and BEA That used to be the sound of money in Fasteners Inc., which has made metal Hamlet, which became a railroad hub before fasteners for more than 12 years at a plant in the turn of the century and remained so a newly annexed industrial district to the until well after World War II. The town was south. Residents routinely commute to work headquarters for a division of the Seaboard in other communities, and workers come Railroad. Crowell remembers when 30 or from other towns for jobs in Hamlet. more trains passed the station daily in the Rockingham, the county seat and popula- late 1930s. "We had them thick as fleas tion center of Richmond County, is five around here," he says. miles west on U.S. 74, a stretch cluttered In a sense, even the Imperial plant traces with fast-food restaurants and shopping its origin to the railroad. It had been the BUSINESS / NORTH CAROLINA 52 We're Planning For Business Eastern North Carolina's Premier Industrial & Business Park 500 acres master-planned & available now Zoned for industrial & business development Natural gas on-site 1 hour to Raleigh & the RDU International Airport 2 hours to ports at Norfolk Southern on-site rail Wilmington & Morehead City 1/2 hour to major interstates City water & sewer without I-95 & / -40 city taxes for up to 7 years Served by digital switching Located on 4-lane US 70 & fiber optics It's The New Wayne County Industrial & Business Park In Goldsboro, North Carolina CALL NOW: Wayne County Economic Development Commission, PO Box 1280, Goldsboro, NC 27533 Phone: 919/731-7700 1-800-FOR WAYNE (Outside NC) FAX 919/580-9147 ECONOMIC ALMANAC home of Buttercup Ice Cream Co., whose grandfather owned the Coca-Cola plant, the founder came to Hamlet in 1920 after selling first bottling franchise in North Carolina. his business in New York. Louis A. Corning "Everybody who didn't have some connec- chose Hamlet after picking up a map and tion with the railroad was odd." noticing the convergence of rail lines - a Today, the freight yard, operated by CSX ready means to distribute his product. Transportation Co., employs 600, down From 1900 until the advent of dining cars from 1,500 just 10 years ago largely because in the 1930s, trains arriving from five of transfers, consolidations and reductions directions stopped at the depot to let in crew size. And the 92-year-old station is a passengers eat at the Seaboard Hotel. Later, mere twice-a-day whistle-stop for Amtrak. in the 1940s, military troop trains regularly It's easy to overlook the garden-club wel- took on crews and supplies there. If a come to train passengers that the ladies of tornado went through Hamlet, someone the town planted 60 years ago on a grassy once observed, it would stop at the railroad bank near the depot: a cluster of spirea station. After World War II, with the decline bushes spelling out H-A-M-L-E-T. of train passengers, the focus shifted to a Meanwhile, Richmond County's huge freight yard north of town. economy chugs along on manufacturing. "Everybody's fathers worked with the One of the first textile mills in the state was railroad," says Mayor Covington, whose built in Rockingham in 1837. An ample TREND West of the best Manufacturing employment Unemployment 1980 1989 Change 1980 Rate 1990 Rate Alexander 5,150 5,860 13.8% 1,030 7.5% 611 3.8% Alleghany 1,360 1,220 (10.3) 170 4.4 195 3.9 Ashe 2,900 3,170 9.3 1,030 10.5 667 5.8 Avery 720 820 13.9 540 8.9 362 4.1 Cherokee 2,880 2,980 3.5 610 8.5 818 8.8 Clay 270 350 29.6 230 9.1 176 5.7 Cleveland 15,550 16,290 4.8 3,790 9.3 2,030 4.7 Graham 1,100 690 (37.3) 480 11.4 444 19.1 Haywood 5,400 4,710 (12.8) 1,720 9.1 1,108 5.2 Jackson 1,720 1,380 (19.8) 1,160 8.4 521 4.2 Macon 1,170 1,180 0.9 590 7.0 435 3.7 Madison 1,040 900 (13.5) 560 6.7 333 4.4 McDowell 10,550 9,380 (11.1) 1,240 6.2 1,092 6.5 Mitchell 1,850 1,980 7.0 440 6.7 447 6.4 Polk 1,160 920 (20.7) 240 4.4 181 3.1 Rutherford 10,360 11,930 15.2 1,850 7.0 1,622 5.3 Swain 1,320 1,220 (7.6) 580 11.8 593 10.3 Transylvania 4,550 3,490 (23.3) 520 4.9 327 3.1 Watauga 1,870 1,450 (22.5) 1,210 7.5 518 2.8 Rural western Wilkes 9,420 9,990 6.1 counties face 1,630 5.5 1,276 3.9 the same uphill Yancey 1,080 2,840 163.0 500 8.3 534 4.7 battle for eco- West 81,420 82,750 1.6 nomic growth 20,120 8.3 14,290 5.2 as their eastern North Carolina 820,000 871,100 6.2 187,000 6.5 139,000 4.1 neighbors. National 20,285,000 19,442,000 (4.2) 7,637,000 7.1 6,874,000 5.5 BUSINESS / NORTH CAROLINA 54 water supply from the Pee Dee River and a The family-owned company, then based large, willing work force made the county a in Moosic, Pa., expanded to the South along textile center. The small, crumbling houses with other poultry processors searching for and bare yards hugging the narrow streets cheap labor and a convenient source of of East Rockingham, an unincorporated mill supply. Imperial, which would later move village between Hamlet and the county seat, its headquarters to Georgia, kept its eye on are a bleak reminder of that heritage. the bottom line, looking to get the most out In 1979, Richmond County mills em- of its workers. No hoopla accompanied its ployed 3,480. By 1990, the number had opening. There was no story in the local dropped 9%, to 3,180. As a percentage of newspaper, and owner Emmett J. Roe total employment, though, the change has refused an invitation to join the Richmond been more dramatic. Textiles provided 52% County Chamber of Commerce. of the county's manufacturing jobs in 1979; Though chicken from Imperial was a in 1990, just 38%. Traditional cotton mills regular item on county school-lunch menus, were not the source of most new jobs in the Joseph W. Grimsley, president of nearby 1980s. Instead, the largest new manufactur- Richmond Community College, was - like ers were big apparel operations and food many - barely aware of its existence. "It processors. In Hamlet, Imperial's chicken- really was a very self-contained operation," processing plant was a major employer. he says. "We invite people to various events. Average annual wage Total personal income Retail sales Real increase 1990 Real increase 1990 Real increase 1989 from 1980 (in 000s) from 1980 (in 000s) from 1980 $15,908 10.2% $385,985 33.6% $107,063 18.3% 13,300 9.7 117,586 16.4 46,127 0.6 14,259 1.4 262,758 27.7 127,932 14.4 14,304 1.8 173,508 29.0 107,369 42.6 14,488 9.3 233,614 34.5 136,725 11.8 13,584 6.5 79,713 32.3 25,841 (20.5) 18,293 6.7 1,255,283 21.8 692,297 22.3 13,573 (6.8) 63,627 (11.8) 28,422 (13.3) 18,717 (4.7) 642,158 15.0 380,012 20.3 15,646 5.5 327,046 26.2 180,837 49.1 14,772 1.4 309,260 37.1 200,369 32.6 14,493 7.5 188,130 17.0 49,970 (1.0) 16,146 (7.5) 423,109 10.5 202,626 5.9 14,390 (4.7) 165,935 9.2 104,411 (7.0) 14,157 6.5 262,219 39.1 58,196 1.7 17,037 5.6 771,157 23.2 489,955 41.9 12,088 (4.8) 104,104 12.3 56,280 (5.0) 21,117 (9.3) 365,413 23.7 138,427 10.9 15,473 7.3 422,076 34.3 352,244 45.1 16,625 2.2 827,964 24.2 393,621 11.0 16,650 18.4 183,731 39.1 64,962 16.6 15,477 2.8 7,564,376 23.6 3,943,686 22.0 19,302 8.0 100,417,638 33.0 64,691,006 19.3 22,120 5.5 4,662,698,000 29.3 1,807,219,000 25.8 APRIL 1992 55 ECONOMIC ALMANAC These people never showed up for anything president of Perdue Farms Inc. in Salisbury, we have done." Md., the nation's second-largest poultry But workers showed up at Imperial's producer, which has 3,700 employees and door. Wages were bottom rung, but those 500 growers in North Carolina. without skills have few choices. They found Its employees are primarily women and work in a factory that timed their trips to the minorities. Perdue has stepped up its hiring bathroom, that had a history of disregard for of Hispanics, increasingly a source of cheap safety, that regularly polluted the town's labor across the state. "They are industrious sewer system with clumps of grease the size folks," notes Wayne T. Burgess, complex of cannonballs. These were people so job- manager for Perdue in Rockingham, "and hungry they would tolerate grim conditions, we are well-pleased with the Hispanics we battering chicken near a 375-degree fryer or have hired." standing in an ice-cold packing room, Like Perdue, other low-wage employers breaking up, weighing and boxing frozen have no problem filling jobs in Richmond chunks of meat. County. At Bowling Green, Ky.-based Union After the fire, some of the workers went Underwear's Fruit of the Loom plant, to Perdue, the county's largest poultry hundreds of women bend over sewing processor. Its Rockingham plant employs machines as they work through piles of 850, who slaughter, process and package white cotton in a huge, hangar-like room. 500,000 roasters every week. For every The plant employs 1,600, down from 2,100 applicant the company hires, it turns away in mid-1990, but it remains among the four others, many of whom would travel 20 largest employers. Workers, about 70% of miles or more for the work. them women, are paid on an incentive basis. Workers, paid $6.05 an hour on day shift They go through a half-million pounds of and $6.15 at night, look like extensions of yarn a week, turning out more sweat shirts the machinery that keeps lines of chickens Even in its and sweat pants than any other Fruit of the peak year, all moving overhead and along conveyor belts. Loom plant in the world. the construction The plant is increasingly automated, but When it opened in 1986, the plant in the 64 rural expansion has allowed employment to installed some of the most modern equip- counties never matched that double in the past six years. "We've worked ment in the industry, manager William A. built in just the very hard to locate in areas that have a good Tucker says. Some jobs, such as cutting Triangle. labor force," says Larry K. Winslow, vice fabric, are performed entirely by machines. It is a clean plant, with employee bowling, TREND golf and volleyball teams. Yet Fruit of the Bouncing back? Loom provokes mixed feelings in Richmond County. In a sense, it represents a step Value of all construction, from building permits (in millions) backward, a failure that still stings. $1,300 In this plant, a mostly male work force once made truck and bus transmissions for South Bend, Ind.-based Clark Equipment Co. Clark's ballyhooed arrival in Richmond 1,200 County in 1974 was part of a migration to the South, where low wage scales and a non-union work force beckoned industry. Although Richmond County was late to benefit from the trend, Clark was a break- 1,100 through, promising a new level of skills and wages for its workers. It didn't last. Pressured by foreign competition, Clark closed in 1986. After its 1,000 1984 1986 1988 1990 departure, the county's average weekly BUSINESS / NORTHCAROLINA 56 People say the nicest things about the Pharmacy Network. "We switched all prescription cards of a major national drug chain to the Pharmacy Network because of their service and dependability." - Ben Yeager ACS Group, Winston-Salem "Our clients are very impressed with Pharmacy Network's response time in issuing enroll- ment cards. The accuracy and detail of their monthly invoices makes our job a lot easier." - Marshall Waren Employee Benefit Systems, Fayetteville "We have been very happy with our decision to change to Pharmacy Network. It has proven to be much more effective than other prescription programs in terms of containing costs and providing services." - John Williams Piedmont Administrators, Greensboro "Quality service is essential to the success of our business. The responsiveness and dependability of Pharmacy Network better enables us to provide quality service to our clients." - Henry Falls, Jr. Southern Group Administrators, Winston-Salem Speaking of Prescriptions is the video story of the Pharmacy Network and how it can work for your organization. Write or call FREE "The Pharmacy Network's management Andy Barrett at reporting is valuable to us. Information on 1-800-331-7108 our employees' prescription use confirmed and he'll send you our decision to implement a wellness a free copy. program at Empire Brushes." - Leon Wright Empire Brushes, Greenville PHARMACY Pharmacy Network of North Carolina, Inc. NORTH CAROLINA 4000 Old Wake Forest Road, Suite 101 Raleigh, North Carolina 27609 Managed Care-for your employees and your bottom line. ECONOMIC ALMANAC manufacturing wage dropped from $307.93 nouncements in the 1980s. In 1989, for to $282.57. The vacant building attracted a instance, nearly three of every four new parade of high-powered prospects, and industries that came to North Carolina chose some people were disappointed when it was metropolitan areas or those with interstates. bought by Union Underwear, whose pay Given the Imperial fiasco, it would be scale did not match Clark's. Richmond easy to conclude that the county has sought County, one woman complained in the jobs at any cost. Sutton, however, bridles at newspaper, was "too good for a sewing that suggestion. If county leaders had that plant or cotton mill." attitude, he says, they wouldn't be fighting a But Sutton, the industrial-development proposed low-level radioactive waste director, responded that the county was landfill near Hamlet, even though it could dependent on textiles and apparel for its produce jobs. economic survival. "We should remember "Our position in this office - and it has that it's fine to pet a new puppy," he said at been supported basically by both the county the time, "but we should never bite the hand commissioners and the chamber of com- that feeds us." merce - is that we are willing to sit down and talk to any company that is willing to he county had 8,420 manufacturing jobs in make an investment and create jobs in 1990, an increase of nearly 29% from 1978. Richmond County," he says. "But we have But it is still playing catch-up from the not taken the position that growth or job recession of the early 1980s. In 1990, 21,318 creation or investment is an absolute, Richmond County residents had jobs - just unconditional goal." 12% more than in 1978. As late as 1979, The lack of a skilled and educated work Sutton says, the county did not have a force also hasn't done anything to attract "showable industrial site" with rail, water electronics or other high-tech manufacturing and sewer services. Since then, the county operations, according to a study of the has poured resources into building its county's economy in the mid-1980s. The infrastructure by expanding the capacity of study, by MDC Inc. of Chapel Hill for the water systems and extending sewer to North Carolina Commission on Jobs and industrial clusters. Economic Growth, did applaud the county "Of course, by the time we got in posi- for recognizing the need to improve work- tion to really accommodate job growth in ers' training and education. terms of relocations, everybody quit relocat- The county schools and Richmond ing," Sutton says. "That's not totally the Community College have pioneered pro- case, but the trend is obvious." As a result, grams aimed at increasing students' techni- economic-development efforts concentrate cal skills. A Tech Prep program readies on expanding smaller businesses and high-school students to enter the commu- encouraging home-grown industry. nity college. The companion Occu Prep In lowered voices, some in Richmond program is geared toward students who go County are quick to blame sinister forces. directly from schoolhouse to factory. "We've They suspect that Republicans in Raleigh been able to catapult a lot of students into steer new industry away from the heavily more rigorous academic pursuits," says M. Democratic county. Others figure that local Doug James, superintendent of the county business leaders contrive to keep out high- schools. In 1986, for instance, fewer than half paying jobs to keep wages down. But the of high-school students took Algebra I. At problem is not the result of a conspiracy. last count, 71% took the course. Richmond County is missing two entice- If the picture is improving, it is also ments essential to many industries: an because existing industries are starting to interstate highway and a commercial demand workers who can do more than run airport. That's typical of other rural areas sewing machines or arrange chicken pieces. that saw a decline in new-industry an- By one study, 80% of the jobs of the future BUSINESS / NORTH CAROLINA 58 THE Cellular Freedom From Centel Cellular More Talk For Less Money. Our new service plans give you a lot more than ever before. Because now airtime minutes are included. Like 75 minutes in our $39.95 package. if Or 200 minutes in our $69.95 package.* Packages offering 400 and 1500 minutes are also available. And there's no contract required. You can use your minutes in any Centel Cellular city in North Carolina and across America. With no daily charge or roaming fees. ... What's more, there's no monthly charge for our popular features like voice mail, call waiting, call forwarding or three-way calling.** Rate plans that fit your budget as well as your needs. That's what Cellular Freedom is all about. And how it's helping more and more businesses grow. Isn't it time to put Cellular Freedom to work for you? Phones by Motorola. Call us today. *Additional minutes charged at a per-minute rate. **Airtime and toll charges may apply when using these features. CENTEL CELLULAR In Greensboro, (919) 299-3333; Raleigh, (919) 833-7494; Fayetteville, (919) 484-6156; Hickory, (704) 327-4000; and Wilmington, (919) 791-0800. FEW GUARDIANS OF YOUR MONEY CAN PROMISE YOU THE STRENGTH, SECURITY AND STABILITY OF CENTURA BANK. We doggedly pursue the course of strength, security and stability in the financial world. We know that people across North Carolina trust us to watch over their savings and investments the same way we watch over our own. When you need a loyal friend in the banking business, call Centura Bank. We'll be there when you need us. That's a promise. Centura Bank SM WE NEVER FORGET THAT YOU'RE THE CUSTOMER. Member FDIC ALMANAC Are you in danger of losing will require workers with 13.5 years your local, state or of education. And that, says Hall of federal contract? the Rural Economic Development Center, poses a particular challenge for rural areas, which must find Identifying socially disadvantaged or women owned firms for compliance ways to finance education for its isn't easy. We can help. We're Piedmont Data, a minority owned and workers — and then keep them operated firm. We provide: from leaving for bigger cities. computer hardware and software solutions Some of today's plants, even in mainframe programs and support traditional industries, are techno- productivity software logical wonders, says Ralph S. PCs and accessories Robertson, principal of Richmond Network installation and maintenance Senior High School. "The textile We're certified by the N.C. Department of Purchasing, the Carolinas industry has advanced and up- Minority Suppliers Development Council and the City of Charlotte Purchas- graded the quality of the work ing Department. We meet their qualifications for certification so you can environment," he says. "It's a totally meet yours. Call us. No matter what your computing need, we can meet it. different world from the old cotton mills, and I would be pleased for Piedmont Data any of my folks to work there." Workers at Owens-Illinois must 5511 Monroe Rd. be able to use computers and Charlotte, N.C. 28212-5503 1-800-343-3210 modern electronic equipment. Com- puters run the lathes at the Eteo Computer hardware and software solutions steel-parts plant. Robots drive machinery at Burlington Industries' fabric plant, and L'eggs, another major employer, plans to go to robotics, says Grimsley, the commu- A nity-college president. "Those kind of technologies changed the whole Degree mix of employees." In short, rural North Carolina is Of Success being forced to remake its work force as industries remake them- selves. The shift means a decline in demand for those with few skills The Wake Forest MBA Executive Program and little training, the traditional bulk of the county's workers. The question is, what will happen to For managers and Classes meet Saturdays executives with 7 or those unable to keep up? and occasional Fridays "We've got a very large group of more years of experience The Southeast's oldest people who are invisible until something brings them out, and Program can be executive MBA program what brings them out is the oppor- completed in 20 months and ranked in the top tunity to work," Grimsley says. If 20 nationally Imperial reopened today, he says, "there are probably another thou- For Information Contact: WAKE FOREST sand people in the county who would still work there." Executive Program UNIVERSITY 1900-A Reynolda Road Jane Ruffin is a staff writer for The Winston-Salem, NC 27106 News & Observer of Raleigh. 1-800-428-6012 MBA APRIL 1992 61 MONEY MATTERS some have even doubled in value. Others, such as the 1983 "Some- Art appreciation? where in Time," an outdoor still life featuring a quilt and basket at the base of a tree, have sold for as much as $2,200, the company says. Lanny McNeely of Wee Mount- J N-Frame Ltd. in Hickory carries an extensive stock of Timberlake prints. "Lawyers and doctors and heads of oe Vale considers himself an rine expect it to perform like shares corporations buy Timberlakes, and investor. He collects gnomes - - in Duke Power Co.? "The more you so do hourly employees at furniture 1,400 at last count. approach it as a business and under- factories," he reports. Vale, a former radio-station stand values and pricing, the better McNeely notes that appreciation owner and retired import and steel you'll do at it," says Larry Carroll, a can be rapid in the active secondary executive now living in Gaston Charlotte financial planner. "It's a market. The three prints issued in County, estimates that he has spent tough market for a novice." $35,000 to $40,000 on Davidson With his finely controlled sculptor Tom Clark's ceramic distribution system and gnomes since buying his first in business offshoots, Tim- 1987 for his daughter-in-law. berlake is more an industry Judging by figures from Davidson's than an artist, some claim. He Cairn Studio Ltd., which distributes sells his original watercolors the gnomes, Vale says his collection through The Heritage Co. of is probably worth $250,000 now. Lexington and its Heritage "They're great investments - - better Gallery. An 8-by-10-inch work than money in the bank," he insists. typically costs about $5,000, Both Clark and Lexington artist and an 18-by-30-inch painting Bob Timberlake command that kind can fetch $30,000. of loyalty. Whether you call their The company also releases work art, craft or even kitsch, three or four limited editions they're undeniably popular, luring of offset reproductions a year. thousands of collectors nationwide. It sells some through "time- 1991 for $235 each Plenty of people believe in the limited" release, under which now sell for $400 investment power of these pieces. it accepts orders for seven or to $450, and the But can a purchaser of a Timberlake eight weeks, then produces just three sold in 1990, also for $235, go duck print or a Clark gnome figu- enough to satisfy demand. Other for $900, $500 and $360, he says. releases are printed in lots of 1,000. Since October 1990, fans have Half go to a network of 46 dealers been able to turn their homes into from Georgia to Michigan, and the Timberlake tableaux through The others are sold through Heritage. Bob Timberlake Collection Inc. Heritage keeps a list of 10,000 to With Lexington Furniture Co., 12,000 active buyers, business Timberlake has developed a 200- manager Frank Stoner says. piece line of furniture and uphol- Prints from Timberlake's first stery that surpassed first-year sales release went for $35 in 1971. Today, projections. new prints will set you back $235 Issuing works in limited editions each. According to the company, all is also a strategy of Cairn Studio, 71 Timberlake reproductions to date Clark's distributor. Though Clark have appreciated after sellout, and has created nearly 600 figurines PHOTOGRAPHY BY MAURY FAGGART BUSINESS / NORTH CAROLINA 62 NC H O M E a beautiful new magazine that opens the doors of North Carolina's most exquisite, elegant new homes and grand old bouses, its country cottages and rustic retreats. From inspired architecture to luxurious landscapes, the simple enticements to the treasured collections, each issue makes a statement of style that says NC HOME. Don't miss an issue! Save nearly a third off the newsstand price by calling (704) 523-9560 today. WE PROTECT THE MOST IMPORTANT BUSINESSES IN THE WORLD. Having been a sailor, rough conditions are nothing new to Joe Cancilla. But opening his own foul weather clothing store proved to be a lot more turbulent than any storm at sea. Yet he hung in there, and made it through. For Joe, Windhaven is the most important business in the world. And his Nationwide Insurance Agent shares that feeling. That's why she took the time to study Joe's business in detail and develop a specific program to cover it. It's why she's always there when Joe needs help with a claim, some good advice, or just a report on wave heights. And since Nationwide carries the highest financial rating available, we'll be able to protect Joe should something ever happen. Because to us, no business is small business, especially if it's yours. NATIONWIDE INSURANCE ® Nationwide is on your side Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43216 Nationwide® is a registered federal service mark of Nationwide Mutual Insurance Company © 1992, Nationwide Insurance Company. MONEY MATTERS since he started selling his work 14 perceptions." Promotion helps those years ago, only about 300 pieces are perceptions along. Clark, a former "active" - that is, in production. Davidson College religion professor, The gnomes and his other ceramic makes about 120 personal appear- figures are "retired" after two to ances a year. Timberlake cultivates five years — he stops making them. media attention with promotional Retail prices range from $13 to $750. materials and books. Though the company won't As investments, many of these comment, Vale estimates Cairn works have clearly outpaced more produces 2,500 to 3,000 of most conventional choices. For example, pieces, though some are rarer. At its Carroll says, Duke Power stock can Mooresville plant, the figures are be expected to appreciate perhaps hand-cast from original masters out 70% to 100% over five years, far of a compound of resins, crushed slower than the rate for the most pecan-shell flour and wood chips. popular Clark gnomes or Timber- According to Joe Poteat, owner lake prints in recent years. W ecan design a program to help your company build more productive, and president of Cairn, average However, there's an important creative and cohesive team. Negotiate a appreciation for a Clark gnome is 12 difference between the two kinds of ropes course, paddle a whitewater river or scale a rock face en route to enhanced times its last retail price before investments: liquidity. "If I own problem solving, communication and retirement. Carol Spear-Hemlein, Duke Power stock I can sell it this stress management skills. 704488-2175 buyer for Calabash Nautical Gifts in afternoon in an organized liquid market, as opposed to scouring the Nantahala Outdoor Center Calabash, says the biggest jump in value for a figure she's handled was country for a buyer," Carroll says. 41 Hwy 19W, Bryson City, NC 28713-9114 for "Dusty," depicting a West The collectibles and popular-art Virginia coal miner. It originally markets can be dauntingly capri- went for $40, but she later sold one cious. Appreciation expectations are CAPE FEAR on the secondary market for $3,750. based on the assumption that the Under the highly organized artist will retain a following. Cairn system, the purchaser of each Serious collectors are aware that COAST. gnome fills out a card identifying some artists thrive on hype. "If you himself, listing the price paid and give me $250,000 to advertise a The Best Place indicating whether he would ever champagne gallery opening to the For A Drive! consider selling. The card is sent to right people, I could have dried CAPE FEAR COAST CONVENTION Cairn by the dealer, where the infor- buffalo chips spotlighted on pedes- & VISITORS BUREAU mation is used to track price move- tals for $30,000 a piece, and people Wilmington Wrightsville Beach Carolina Beach Kure Beach ments and help buyers seeking would buy them," says Jerald 24 N. THIRD ST. WILMINGTON, NC 28401 particular pieces. The owner Melberg, who owns Jerald Melberg 800-222-4757 receives a certificate of authenticity Gallery in Charlotte. "That's human 919-341-4030 that transfers to subsequent pur- nature. People buy the hype." chasers like the title of a car. Few art dealers or museums Can a collector count on selling would classify works by Timberlake at these appreciated prices? Vale or Clark as fine art. "Timberlake is a points out that new enthusiasts are fairly decent illustrator. But art, for N.C. constantly pushing up the prices of me, has to go beyond a depiction of retired gnomes, and the company something," Melberg says. "If recently began selling in Britain, people want to collect gnomes, expanding the pool of buyers. that's great, but let's not call them Of course, there are no guaran- art. Let's call them what they are: tees. Poteat concedes, "The second- collectible tchotchkes." ary market is all based on investors' - Andrea Cooper APRIL 1992 65 DRIVING AMBITION parts bins were everywhere: head- up display, pneumatic adjusting Will GM get it in gear? seats, auto climate, high-line Delco stereo, power everything, mirrors, map pockets, lamps and cruise — the works. Despite this iron-filings- to-magnet method of accessorizing, the build quality seemed excellent - no rattles, squeaks or other rude noises. Garish body-colored rocker arrived all shiny and new, a sea- The LQ1 is GM's belated foray panels and moldings completed this foam-green Olds Cutlass, smelling into dual overhead cam, small-block tricked-out highway cruiser. of saddle soap and good intentions, technology, and though it arrives True, it was cramped and vulgar, motoring on little cat feet up my pathetically late in the global but the CS International certainly driveway. It left five days later on a smaller-is-just-as-good marketplace, had this loyal American's attention. flatbed trailer, its butt hoisted it's a sound power plant, with Then, things started to go very, unceremoniously into the wind. excellent weight-to-power ratio and very wrong. In between, it broke my heart. smooth delivery of torque. It had rained all day in the God knows, I want to love The I-series Cutlass sits on a Capital City. The Cutlass sat on the American cars. Next to world peace performance-minded independent top level of the parking deck outside and being Kim Basinger's luffa, suspension, with beefed-up struts my office. When I got in at 6, I there are few things I want more. and stabilizer bars, and is shod with reached for my parking stub in the And lately, I've hit a string of adhesive 16-inch tires. Anti-lock visor. It fell apart in my hands, a superbly executed domestics — the four-wheel discs behind alloy sopping wet mass of cardboard. Saturn sports coupe, the Bonneville wheels round out the performance After a quick inspection, the cause SSEi and Cadillac STS, to name a specs. As a sports coupe, the Cutlass was obvious: A misplaced wind- few. For a while there, my true-blue is more than just specs. The dual shield molding had drunk in a day's heart soared. Yes, I thought, finally cammer started smoothly and worth of rainwater. The car's ceiling General Motors was getting it right. pulled strongly, and handling At last, I could say with pride, seemed sure and steady. I pushed "Make mine American!" the CSI through my favorite The Oldsmobile has done to offramp at 65 mph, keeping the car Cutlass Supreme those sentiments what truck tires do just at breakaway limits, with lots of to box turtles. tire screaming and tail-out postur- Base price: $21,795 The car in question is a Cutlass ing. There was very little twist and Supreme International Series - a body roll. Engine: V-6, dual overhead hopped and dropped version of the So, even though the ride left cam, 138 cubic inches front-drive Cutlass, circa 1988. Fore- something - namely comfort and Horsepower: 210 most in improvements for '92 is the quiet - to be desired, all-around Top speed: 116 miles per hour LQ1 motor, a 3.4-liter, 210-horse- performance was pretty darn good. 0-60 mph: 9 seconds power mill that whips the ponies to As in all GM products, gadgets EPA city/highway: 17/27 miles the tune of 6,000 and gimmicks culled from per gallon rpms. the intradivision Test weight: 3,221 pounds Suspension: Fully independent with MacPherson struts Wheelbase: 107.5 inches Length: 193.9 inches 1/4-mile time: 16 seconds BUSINESS/ NORTHCAROLINA 66 became soaked, and when the sun geopolitical economies and multi- and for years to come. For me- came out, condensation formed national corporations. But it seems flag-fearing, God-waving American great dewy clouds inside the car. to me the Big Three - and espe- that I am - the Cutlass episode fills This car had less than 2,000 miles cially GM - are losing the trade me with bang-my-head-on-the-dash on it and already had its own war not in the stratospheric heights frustration. As the Tennessee-bred microclimate. of global commerce but down along Saturn proves, GM can build a Several days later, my son, Hank, the sides of American roads. dependable automobile. and I headed for the Atlantic in the Every time someone like me gets Dear GM, take a hint from Nike: now-damp Olds. In Goldsboro, I left walking by an American car, "Just do it." noticed the oil-pressure warning that's one less customer, for now - Dan Neil light flashing. Great, I thought, a blown seal. I stopped, examined the exhaust for blue smoke, turned off the car and checked the oil level, WE HAVE TO START gaskets and temperature - the usual suspects. The oil level was low, so I put in a quart of 10W-30 MEETING LIKE THIS. and headed East. The next day, on the way back, Amid the pines and rolling hills the oil-pressure gauge again slipped of North Carolina you'll find a into the red. Only then did I remem- ber that I had no money and no place with all the charm and credit cards. Panic set in. Facing the elegance you expect of a premier prospect of being stranded broke on southern resort, Mid Pines. the highway with a 6-year-old boy after dark in the rain, I decided that For business gatherings of all kinds, you'll find - whatever the matter was - I'd Mid Pines perfect. With a vintage Donald Ross golf drive until the car quit or blew up. course, truly superb dining, tennis, Eighty nerve-racking miles later, and swimming, Mid Pines will make I pulled the CSI into the garage, and the day after, the flatbed truck a lasting impression on everyone. arrived. Good riddance, I thought. Charming fairway villas specifi- A couple of weeks later, I cally accommodated for group inquired after our beleaguered Cutlass and learned that it was a gatherings will make your bad sensor that had caused the business meetings problem, and my son and I were much more never in danger of being stranded. The same problem, however, had enjoyable cropped up again with a new sensor and productive. and with another auto critic. (Hey, Have your next you can't buy that kind of press.) Only then did GM realize it had put meeting amid out a service bulletin advising the the pines. entire oil-pressure circuit be re- placed. If this is the kind of attention GM gives auto writers, imagine MID PINES GOLFRESORT & CONFERENCE CENTER what sort of treatment the average A Classic Designed by Donald Ross. car buyer receives. SOUTHERN PINES, NORTH CAROLINA Call Holly for reservations. I don't know much about 800-323-2114 APRIL 1992 67 Introducing North Carolina's Two New Port Cities. Charlotte and Greensboro. The Savings Offered By Our Intermodal Terminals Bring North Carolina's Coastline Nearly 200 Miles Inland. Chances are that when you think of North Carolina's and arrange overland transportation to and from these Ports, you think of Wilmington and Morehead City, but Intermodal Terminals and our Coastal Port Facilities. actually our Intermodal Facilities Network reaches We'd like to show you exactly how these Inland much farther. In effect, our Intermodal Terminals in Ports can make more dollars and sense for your Charlotte and Greensboro move our ports nearly 200 business. Call our Business Development Office toll miles inland. This means importers free at 1-800-334-0682 and ask for and exporters in North Carolina and the Market Research Division. neighboring states need only get North We'll send you a customized goods to or from these two inland cost comparison chart based on the cities-we'll take it from there. For Carolina import/export needs of your one low, fixed fee, we'll store, stage individual business. Ports Your Ports Of Opportunity TM P.O. Box 9002, Wilmington, NC 28402 1-800-334-0682 (919) 763-1621 FAX (919) 763-6440 EXPENSE ACCOUNT DINING the best food in town," he says. Over the five decades since Hartman's steaks "Mom" and "Pop" Hartman opened a one-room grill next door to their its claim to fame house in east Durham in 1940, governors, chancellors, coaches, CEOs, ballplayers, tobacco workers, C reds, yellows, blacks and whites have devoured Hartman's stick-to- the-ribs fare. ross the threshold at 2-pound T-bone for $3.50. A ham- Sonny Jurgenson, the Wilming- Hartman's Steak House in Durham burger is a quarter. The portions ton native and former Duke quarter- and you enter a time warp. Truman hark back to a time when meat was back, always checks to make sure a is still president. The Dodgers call measured by the pound rather than 1961 photo of his Philadelphia Brooklyn home. Cars have running milligrams of cholesterol. Eagles team is on display. Owner boards, and rock has yet to roll. Forty-one years later, only the Jack Markham, son-in-law of the Here, you will find no angel-hair prices have changed. Everything founders, is careful never to discuss pasta or pesto. No sushi or black- else about Hartman's is about the basketball when Carolina coach ened redfish. Don't expect a "spe- same - a place where you can get a Dean Smith visits during the cials" board at the entrance or a big hunk of red meat served with- summer. "He'll talk about the waiter with a ponytail. out any frills. weather, anything, but he doesn't But on a wall by the front "Atmosphere? It's got absolutely like to talk basketball when he's on entrance, you'll see a framed menu zero," says a Durham man who his own time," Markham says. from 1950. It lists a pound-and-a- conducts business there at least once Then there are the 30,000 or so half T-bone steak for $2.50 and a a month. "It may even be minus." business cards patrons have left for Then in the next breath, he display along the foyer walls. The acknowledges he's cards hang in long strips taped from been eating there ceiling to floor. Some are in Japa- for more than nese. There are cards from England 30 years. and India, from an antiques dealer "It's got in Northport, N.Y., and a car sales- man in Cincinnati. "People ask sometimes, 'What's 1703 Hartman's Steak House the most important card we have?" (919) 688-7639 E. Geer St., Durham Markham says. "I say, 'Yours is the most important." Service "You'll see a bank president at Food one table and a truck driver at the next," says Tom Kenan of Kenan Menu variety Transport in Chapel Hill. Kenan Ambiance remembers his father, Frank, taking the family often to Hartman's. Parking "Hartman's was a family affair," he No reservations accepted says. "The owners and the wait- Poor All major credit cards accepted resses knew everybody by name. They never forgot a face." = Outstanding Hartman's remains a throwback = IIIII to the days when America was a meat-and-potatoes society and when you only learned about APRIL 1992 69 EXPENSE - A C O N T DINING saturated fats if you went to medical rant's no-frills charm. It's all a la That kind of thing. school. But the cars still line up on carte, meaning you get what you I knew what I wanted without both sides of East Geer Street along order, nothing else. There are no looking: the T-bone, a small order of about supper time, just as they have fancy names, no adjective-bloated French-fried onions ($1.60) and a done for decades. The one-story, descriptions. Just two facing pages lettuce-and-tomato salad ($1.80). My cement-block building is actually a listing food and prices: medium T- wife, Catherine, decided on lamb conglomeration of additions to the bone, $16; ham steak, with or with- chops ($16.75) and a lobster cocktail original diner and even includes the out pineapple, $9.75; pork chops, ($5.50). In no time, Dee, our quiet Hartmans' old house. pan-fried, $10.75; fried shrimp, and efficient waitress, returned with The menu attests to the restau- $11.85; toasted garlic bread, $.75. our drinks. Hartman's offers cocktails, domestic and imported beers and several dozen wines. We ordered Piesporter Michelsberg Spätlese ($13.75) because Catherine likes it. So what if it wasn't red? It tastes good, and no one here is going to Check Out Time Is All Day sneer at you for ordering the "wrong" wine. And Into The Night. Since it was dark, we couldn't see the small pond in the back of the restaurant, which sits in a little- gives you a head start on your meadow. Until the early 1980s,= Hartman's staged a nativity scene way to just about anywhere, each December near the pond. There was a little stable and life-size wooden figurines of Mary, Joseph, the Baby Jesus and angels. Live Check Out The Beach. sheep and cattle milled about to round out the scene. Once in the Since there just aren't '50s a snowstorm kicked up as the enough hours in the day to Check Out The Cotton Exchange. Kenans ate dinner. "The wind blew see everything in Wilmington, day or night. So, for your next so hard one of the angels flew right over the restaurant," Kenan recalls. the Hilton cordially invites vacation, check out the You'd swear Hartman's is Wilmington Hilton. Call today blessed by the heavens when its for reservations. well-oiled machine begins cranking out your order. Ten employees have worked there between 20 and 40 years, and they know how to turn around a meal. Check Out The Carriage Rides. My onion rings were crunchy you to spend a couple of nights. X WILMINGTON and heaped on the plate. I had HILTON added Special Fried Banana Pep- Our riverfront location puts you 301 North Water Street pers ($1.50) on a lark. "Pop" Hart- in the middle of everything and Wilmington, N.C. 28401 (919) 763-5900 man and Markham developed those in the mid-1960s by taking chunks of pickled banana peppers, dousing them in the same batter as the onions and frying them. The result BUSINESS/ NORTH CAROLINA 70 is a crispy morsel you bite into, No cookie-cutter three lamb chops on her plate. The revealing a tangy burst of flavor steakhouse with CE steak was beyond reproach, we when you reach the pepper. cafeteria line or agreed. Catherine said the flavor of Catherine's lobster cocktail in- lamb was a bit too gamy for her cluded a small dish of sweet, peanuts all over taste; I thought it a little dry, but succulent lobster (about a dozen the floor, I then I conceded I'm not an expert bite-sized pieces) and a side of thought as I took on lamb and that anything would cocktail sauce. the first bite of pale tonight in competition with Beef has always been Hartman's the cow. hallmark, and I wasn't disappointed my sizzling 20- We capped the evening off with with my sizzling 20-ounce T-bone. ounce T-bone. a cup of coffee and a piece of apple Markham has a middleman who pie a la mode ($2.50). The coffee brings aged beef in from the Mid- was everything a cup of coffee west. "We pay his price," he says. I'd be eating the rest of the month. should be - piping hot and strong. "We don't shop our meat. It's too And then I took another bite. And The pie was also hot and the perfect important to cut corners." another. And another. conclusion to an all-American meal. My T-bone was cooked to A pound-and-a-half of meat With bones for the dogs bagged up, medium-rare perfection - with a disappears in no time at Hartman's. we headed back to Chapel Hill. We red, hot center. No cookie-cutter Still, I reserved the right side of the were fat and happy. And a little steakhouse with a cafeteria line or T-bone, the smaller portion of meat sleepy as well, but I made it all the peanuts all over the floor, I thought that more often today becomes filet way through The Donna Reed Show as I took my first bite. Then I mignon - and made a trade with before nodding off. thought of all the chicken and fish Catherine. She gave me one of the -Lee Pace City Blues Vs. Country Greens. If you're looking for an uncrowded other locations, write Bud Cohoon, site with unlimited potential, we have Director of Economic Development, the answer. Huntersville Business Park, North Carolina Electric Membership located off Interstate 77, just 10 miles Corporation, 3400 Sumner Boulevard, north of Charlotte, features green-acre PO Box 27306, Raleigh, NC 27611, sites. An established office complex. And or call toll-free, 1-800-662-8835 or over 700 acres of rolling countryside 1-800-334-2306 (outside NC). available for commercial or industrial use. For more information on this and North Carolina's EMCs PEOPLE task: "We're putting on 52 games of the same magnitude as the Super A stable business Bowl and doing it in one month in 12 different cities around the country." Since graduating from N.C. State in 1975 with a degree in environ- W mental design/architecture, Szostak, a Greensboro native, has built a track record in sports. He hen Philip Szostak "It's taking the typical eques- designed Tad Gormley Stadium in smacks the polo ball around his 160- trian center a couple of steps New Orleans (site of the '92 Olym- acre horse farm in Carrboro, it's not further," he says. The 1,600-acre site pic track-and-field trials) and track just goofing off. You could call it in Conyers, Ga., will include two facilities at several universities - - research. outdoor arenas, with 40,000 and Wake Forest, N.C. State, Iowa State, From his office in Research 20,000 seats, a 6,000-seat indoor Minnesota and George Mason. Triangle Park, Szostak, 38, heads up arena, 750 stalls, a museum and a Szostak worked 12 years in his sports architecture for the national golf course. own Chapel Hill practice before architecture firm NBBJ, which is Szostak has also been hired to joining NBBJ in 1990. The North based in Ohio and Washington. check out stadiums across the Carolina office accounted for $2.2 "I consider myself a sportsman," country for the 1994 World Cup. It's million of NBBJ's gross fees of $55 Szostak says. Two current projects not easy finding large stadiums million last year. are particularly dear to his heart. In suitable for soccer, he says. Soccer "I probably enjoy doing work in fall '90, NBBJ was tapped to design requires a larger field than football, my home state more than any- the $30 million equestrian park for and artificial turf is a no-no. thing," Szostak says. "I wish there the 1996 Olympics in Atlanta. Szostak knows he's facing a big was more. [But] business is picking up in North Carolina in the last couple of months for architecture For architect overall." Philip Szostak, it pays to be a good sport. Mad Max is on general assignment He's a career military man with an aggressive leadership style, but Maxwell Thurman says he is adapting to the less rigorous de- mands of academe. "I will try to be benevolent and kind," says the four-star general, known as Mad Max to his troops. Thurman, 61, is probably best- known as the commander of the U.S. military operation that in 1989 ousted Panamanian dictator Manuel Noriega. Now he's rallying different troops. Retired after a 38-year Army career, Thurman has served since fall as executive-in-residence at N.C. MAURY FAGGART BUSINESS / NORTH CAROLINA 72 State University's Division of Economics and Business. Thurman's military career was Engineer Glenn Futrell is not impressive: He did two tours in content to coast Vietnam, became a master para- in Manteo. chutist and served as tactics instruc- tor at West Point, artillery com- mander for the 82nd Airborne at Fort Bragg and commanding officer of Operation Just Cause in Panama. But that's not how the High Point native sold himself to NCSU, where he had graduated with a degree in chemical engineering in 1953. "I had some major responsi- bilities in running a major enter- prise: the U.S. Army Recruiting PIRATES Service," he says. "I was the person- COVE nel chief of a very large corporation: the U.S. Army. For four years, I was the CEO of the Army. So I said to the people at NCSU, 'Look, maybe I have something to offer you in the way you are teaching business, MAURY FAGGART strategic-leadership and manage- through next year, and he admits he $130,000 to $200,000; houses sell for ment courses." has a lot to learn. "I don't pretend to $225,000 to $500,000.) Futrell spends As a volunteer at NCSU, know the culture of universities," he three to five days a week in Manteo, Thurman is speaking to students, says. "I don't have a Ph.D. in any- flying back and forth from Raleigh organizing a lecture series, helping thing except the school of life." in his single-engine plane. start an outreach program for local This isn't exactly what Futrell business people and advising the His aim: unfurl sales had in mind back in 1984 when he university on its quality-manage- Pirate's Cove invested in the project as one of nine ment curriculum. partners. "I'd been involved in Thurman, who lives in northern What do you do after you build a development and construction my Virginia, spends about a week a successful engineering firm and then whole career," he says, "just always month in Raleigh. He's a senior sell it for $60 million? on the engineering side, not the fellow at the Institute of Land "I didn't want to get into a development side." Warfare. The president has ap- rocking chair," Glenn Futrell says. After graduating from N.C. State pointed him to the Panama Canal But he didn't figure he'd become the University with a master's in civil Consultative Committee, which is managing partner of a Manteo resort engineering in 1966, Futrell opened planning for the transfer of the development during the nation's a regional office in Raleigh for canal's ownership to Panama in worst real-estate slump in decades. Atlanta-based Law Engineering. He 1999. He also does a lot of motiva- With two partners, Futrell, 50, left in 1973 to start his own business, tional speaking. owns Pirate's Cove, a 609-acre Soil and Materials Engineers. In "What you spend your life waterfront community on Roanoke 1987, he sold the 1,000-employee doing in the Army is motivating Island with 150 houses and town consulting firm to Westinghouse people to do tasks that they would houses, plans for 600 — and sluggish for "in excess of $60 million," he not necessarily volunteer to do, sales. Since 1988, $25 million of says. He stayed on two years as which are to go risk their lives." property has been sold, about 25% of president, then left to manage his His gig at NCSU will last the development. (Condos sell for investments, including car dealer- APRIL1992 73 PEOPLE ships and real-estate partnerships. partners sold out. Futrell and operations and launched a national But one investment needed help: engineer Lawrence Matthews, a marketing program. "We're hoping Pirate's Cove. "In late 1989 and '90, I former colleague at Westinghouse, for results in 1992," Futrell says. "$10 began getting a lot more involved in persuaded Alexander P. Thorpe, million [in sales] is our goal." the project. Real estate was not president of Thorpe & Ricks, a doing well, and I had a considerable Rocky Mount tobacco merchandis- She built career on investment in the project. I had a ing company, to invest. a firm foundation personal need to get involved." "This puts the project on a much In 1990, he took over manage- sounder financial basis," Futrell "As soon as I tell people what I ment, and last fall the original says. He has reorganized marina do, especially women, it's a subject they want to discuss," Mary Kay Edwards says. Edwards has no problem men- From tioning unmentionables: She's built her career on them. Last fall, System Design and Consultation Edwards, 54, was named president of Sara Lee Corp.'s Bali lingerie to Installation and Service brands in Winston-Salem. Edwards knows the intimate- apparel market inside out. The LONG Pittsburgh native graduated from Carlow College with a degree in home economics, then went to work in the early '60s at Gimbel's depart- COMMUNICATIONS GROUP ment store in Pittsburgh as a buyer of robes and lounge wear and then has the solution for your video and audio needs and is bras and foundation garments. "I pleased to be authorized sales and service for really liked the bra area," she says, and she developed an expertise in Panasonic that segment at Gimbel's and later at Rich's in Atlanta. Professional/Industrial Video In the early '70s, she switched to the manufacturing side, taking a job MII in product development with a bra maker in New York. She rose to We are now in our new facilities at: higher positions at several manufac- turers, including an 11-year stint at 1018 Morrisville Parkway, Suite D Warner. Morrisville, North Carolina Edwards came to Bali in 1990 as vice president of marketing, mer- chandising and design. She splits her time between New York and Raleigh Durham Chapel Hill Winston-Salem, but plans to move to 919-481-1188 North Carolina this summer. Bali, which was started in Billy Register Tim Rice Brooklyn, N.Y., was bought by Hanes Corp. in 1969. Hanes was Winston-Salem bought by Sara Lee in '79. Bali has 1-800-255-5664 (NC) distribution centers in Statesville and Gastonia and produces gar- BUSINESS / NORTH CAROLINA 74 Focused on the closely held business. ments in Puerto Rico. It won't disclose revenues. The nation's largest CPA firm focused Boosting market share is Ed- on serving closely held and family owned businesses. Eleven North Carolina locations. wards' goal. In most of the nation's top 50 department stores, Bali is the biggest-selling brand, she says. "We Charlotte (704) 333-9003 New Bern (919) 637-5154 want to grow to No. 1 in depart- Greensboro (919) 273-4461 Raleigh (919) 781-1055 ment stores where we are No. 2." Greenville (919) 752-0884 McGLADREY& PULLEN Rocky Mount (919) 446-0111 Hickory (704) 327-4145 Shelby (704) 487-4391 One of her first efforts has been Morehead City (919) 726-3121 Wilmington (919) 762-9671 to change the labeling and packag- Winston-Salem (919) 724-3671 ing. "We've got to put information on our products that tells the customer what the benefit is," she Carteret County says. "If it has a seamless cup, we need to say it looks good under North Carolina smooth knits." She's hoping her presence as Bali's first woman president will Where Business Is A Pleasure spark customer interest. "Our consumer responds to the fact that a woman is in charge behind the Beautifully situated at the southern tip of scenes at the company," she says. North Carolina's famous Outer Banks, Carteret "I'm the first president since the County offers a positive climate for business. company was founded in 1927 who wears the product." Carteret County is soliciting companies in the following fields: For him, it didn't pay to advertise Marine/fishing products and technologies Ocean research and development Two weeks after a fire at Impe- rial Food Products in Hamlet killed Aquaculture and mariculture 25 people and injured 56, Raleigh Seafood processing lawyer Karl Knudsen took out an Bulk and breakbulk import/export ad in the Richmond County Journal Back office industries urging victims' families to call him "if I may be of any service to you." Assembly and light manufacturing To Knudsen, 39, there was a Close corporations whose management need, and he was advertising to fill desires a coastal location it. "We're never going to turn the clock back to when there was no Call today to learn why "Business is a advertising," he says. "But at the same time I do not believe the Pleasure" in Carteret County. profession should be sold like soap. There should be some dignity. There should be some restraint." CARTERET Wake Superior Court Judge OUNTY Knox V. Jenkins apparently didn't ECONOMIC DEVELOPMENT COUNCIL see anything dignified or restrained For Further Information, contact: about Knudsen's solicitation. When Donald A. Kirkman, Executive Director Knudsen went before the judge last P.O. Box 825, Morehead City, N.C. 28557 (919)726-7822 (800)462-4252 APRIL 1992 FAX(919)726-4215 75 PEOPLE No One in the Carolinas Knows Meetings Like September to represent two clients charged with traffic violations, Sands Oceanfront Resorts Jenkins ordered the lawyer out of the courtroom. Saying he couldn't We offer a choice of seven of the finest, oceanfront resorts on the give Knudsen's clients a fair trial Carolinas' coast: four in Myrtle Beach, SC, one in Wrightsville Beach, because he considered the lawyer's NC, and two in Atlantic Beach, NC. All have been planning, hosting, and actions in Hamlet "beneath con- servicing successful meetings for years. Facilities include spacious & tempt," Jenkins wouldn't even flexible meeting facilities, indoor & outdoor pools, sports decks, fitness centers, tennis courts, restaurants, lounges, and lots of clean, white beach, allow Knudsen to respond. Our guests have privileges on the best golf courses in each area, and with Knudsen filed a complaint with us you have a choice of rooms, suites, & villas. Our resorts are the only the state Judicial Standards Com- ones in Myrtle Beach offering "rain insurance." Call for details. mission, but it decided in December not to pursue the matter. Sands This isn't the first scrape for Knudsen, who received his law Oceanfront Resorts degree from UNC-Chapel Hill. In Myrtle Beach, SC Wrightsville Beach, NC his 15 years as a defense lawyer and Ocean Dunes Resort & Villas Shell Island All-Suite Resort Hotel Sand Dunes Resort Hotel a prosecutor, he's had an uncanny 919-256-5050 803-449-7441 Atlantic Beach, NC ability to get caught up in contro- Sands Ocean Club Resort Hotel Sands Villa Resort All-Suite Resort Hotel versy and strange circumstances. Sands Beach Club All-Suite Resort Hotel A Place at the Beach Condominium Resort Like the time in 1982 when two 803-449-6461 919-247-2636 P.O. Box 2998 - Myrtle Beach, SC 29578 men came to his house to buy jewelry he had advertised. It turns out they came to rob him, and he shot the two in self-defense. Both died of their wounds. Knudsen, who was seriously injured in the Special Paper for Unique Products shootout, wasn't charged. More recently he was the court- appointed attorney for Michael Charles Hayes, whom a jury found insane after he killed four people in 1988 in Winston-Salem. Hayes caused a commotion last fall by apparently wandering away from his room at Dorothea Dix Hospital in Raleigh. It was Knudsen who Ecusta explained to law-enforcement officers that Hayes hadn't left the grounds and posed no threat. Still, it's the Hamlet ad that may P. H. Glatfelter Co. hurt Knudsen's career by casting doubt on his intentions, he says. Pisgah Forest, North Carolina J. Randolph Riley, a former Wake County district attorney, says his Making The Mountains former assistant has a good reputa- tion: "His tenacity and perse- Of North Carolina Home verance in handling his cases cer- tainly matches the degree of fervor with which he pursues clients." BUSINESS / NORTH CAROLINA 76 NORTH CAROLINA'S ECONOMIC FUTURE IS ON THE LINE Congratulations to North Carolina on being named #1 nationwide in the attraction of new manufacturing facilities in 1991. Southern Bell is proud to provide over half of North Carolina's population with the most advanced telecommunications network possible. In today's information age, businesses are looking to locate both their manufacturing and service facilities in states with well-developed telecommunications infrastructures. It's a competitive, global market. Southern Bell, however, gives North Carolina the competitive edge. For data, voice, text, or video, when it comes to telecommunications, North Carolina can talk business with anyone. To find out more about our network and the communities we serve, contact Economic Development State Director Herb Crenshaw at 919 821-6849. Southern Bell® A BELLSOUTH COMPANY © 1992 Southern Bell We Look at Technology From Many Perspectives. We view technology from both the human perspective and the business perspective and recognize their symbiotic relationship. From the challenge of pure research to the reward of industrial application to the excitement of guiding a new generation, we see our future developing every day. Come share our perspective. On technology. PITT COUNTY On business. On the world. DEVELOPMENT COMMISSION Post Office Box 837 Greenville, North Carolina 27835-0837 1-800-548-4153 Fax 919-758-0128