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.
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