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OPINION

Editorial: State shows signs of slipping

Friday, March 5, 2010
(Updated 3:00 am)

When ConAgra Foods announced Wednesday it will shut its Slim Jim plant in Garner and move production to Troy, Ohio, it followed a trend.

Ohio finished first in Site Selection magazine’s 2009 standings, also released Wednesday. The placement was based on the number of new and expanded corporate facilities.

North Carolina ranked seventh, an enviable position but a dip from fifth in 2008, fourth in 2007 and third in 2006.

North Carolina also slipped last year in the annual United Van Lines study. Looking at more than 140,000 interstate household moves, United found more families moving into North Carolina than moving out. But the state’s ranking as a destination was 10th-best, compared to third just the year before.

The Charlotte Observer reported similar findings Thursday for the state’s largest city:

“The influx of newcomers to the Charlotte region, long a beacon of the area’s success, has slowed since the unemployment rate surged. An analysis of the latest Census data shows notable drop-offs in out-of-state transplants and 20-somethings.”

The banking crisis hit Charlotte particularly hard, but its growth rate for many years before that provided a huge boost for the state’s economy.

By some measures, including an unemployment rate that’s higher than the national average, North Carolina isn’t doing well.

Although still attractive to new residents and businesses, the appeal doesn’t seem to be as strong as it was just a few years ago. Leaders need to discover the reasons — whether tax rates, education, infrastructure, regulatory costs — and make adjustments.

Ohio lured ConAgra Foods with a promise of no property taxes for 15 years — a concession worth about $3 million. North Carolina has been competitive in bidding for businesses but lost out this time.

Offering tax breaks and other incentives isn’t the best economic development strategy. North Carolina and individual regions such as the Triad have other selling points. But evidence is building that we’re no longer at the top of our game, and that must be fixed.
 

Comments

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Rebel Shooter

March 5, 2010 - 8:55 am EST

My family and I are recent transplants to North Carolina having moved here almost two years ago from Las Vegas. We have enjoyed our new home here but there are a few things that could be better. In Nevada, there are no state income taxes--a definite plus. The job situation here is very difficult, as is the situation nation-wide but it seems that the prospects for improvement are worse here than in many other places with the erosion of the traditional economic base of manufacturing continuing its downward slide. One other thing that I see is that there seems to be an increasing government intrusion into the private life of its citizen in terms of increasing regulation and laws that limit individual freedoms. An example of this has been ordinances reported in the media to limit parking vehicles on a person's lawn, whether an individual can tether their dog on their private property and other increasing legislation to regulate business and commerce. Trends like this are what has caused California to become less and less attractive and is reflected in its declining population (if you ignore the number of illegal immigrants). North Carolina would do well to see what the California model has done to cause that state to be at the edge of bankruptcy.

Doug

March 5, 2010 - 1:26 pm EST

Oh, you're one of THOSE Rebels.

Thanks for the thoughtful comment.

Doug Clark

Rebel Shooter

March 5, 2010 - 8:38 pm EST

Yes one of THOSE Rebels...I was the staff photographer for UNLV for 7 years...One of my last assignments--The Final Four Tournament in Atlanta, 1977...The Reb's lost to the Tar Heels in the semi and beat UNC Charlotte in the last consolation game played.

Doug

March 6, 2010 - 8:24 pm EST

I only wish Charlotte had beaten Marquette in the semifinal.

igliigli

March 5, 2010 - 12:52 pm EST

For jobs, NC needs a university system that is focused on education, not sports.

tonymo

March 5, 2010 - 3:47 pm EST

Why would any company (not bribed) want to move a business to North Carolina? We are the highest taxed of the 12 Southern States. Our government school system ranks near the bottom in achievement. We have one of the highest gasoline taxes in the country.

This is a state that has been controlled by tax happy Democrats for far too many years. We now have folks in the legislature trying to push Cap & Trade, which Harvared economists say will push gasoline prices to around $7 gallon, while preventing off shore drilling.

Companies would be crazy to move to such a hostile business environment.

universalgenius

March 6, 2010 - 11:11 am EST

Nevada? Unless you work in an big 100 story high rise massive luxurious hotel casino where else is there to work? And you wonder why they pay no state taxes?
California? The main problem with this state other than scumbag aid infested homo oriented Hollywood libs is there are 25 million Mexicans who mooch off the state and fed govt and think their ancestors owned the joint. They were of the Aztec empire formerly conquered by Spain. They were not in America.
The main reason America is experiencing a great depression other than fighting 2 bogus wars is because of the influx of 50 million Mexicans getting everything free off taxpayers. The reason California is sinking in red ink is because of these Mexican freeloaders and thise goes for much of the rest of America and any other freeloaders on welfare.

America once took in vagabond Europeans on Ellis Island but that ended 90 years ago. Fighting too many wars and 80 million total mooching illegals have sunk this nation to hell. It will only get worse.

jstevenh1952

March 6, 2010 - 6:33 pm EST

Hey Chief, I hear Australia is looking for a few good residents. You might enjoy it more and have less to complain about. Just a thought. Don't let the door kick you in the butt on your way out.

Semper Fi

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