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March-April 2002

Many of our economic problems are cyclical in nature. Business, the textbooks theorize, expands and contracts organically with little regard to policy action by any government body. Most of the slashed jobs in telecommunications, software, financial services and health care will be resurrected with the next up-tick in the national economy. That’s the good news. We cannot be so optimistic about the jobs in textiles, apparel, furniture and tobacco being lost throughout the Tar Heel State. Economists fret that those positions will never return.

What will it take to bring our state back into the envied leadership position it enjoyed just a few short years ago? More than good timing alone. It is a process that will require innovative ideas and courageous leadership. That is why I rose to the call when Governor Easley invited me to serve on the North Carolina Economic Development Board, a 37-member panel charged with ushering in a new economic era. The board’s membership includes top names from across business, government and the non-profit community. It is being chaired by Gordon Myers, the Asheville real estate executive who, as a leader in local, regional and statewide organizations, has been a vocal advocate for innovation in economic development.

While it is too early to know what recommendations the panel will produce, there are already strong indications that business-as-usual won’t be an option. The stakes are high indeed, and there are no sacred cows in this game. Our organizational structures, workforce development programs, infrastructure, marketing efforts and financial incentives are all on the table – everything about the way we conduct economic development.

That is as it should be. Before we can transform our economic landscape, we must first be willing to ask ourselves some tough questions. Chief among them: do the tools economic developers use remain the best ones for the job? If not, where do we find better ones? Assuming they are, how can we keep these tools sharp?

The weeks and months ahead are sure to be educational – and pivotal.

Best regards,

R. Scott Satterfield

With the temporary decline of companies engaged in e-commerce and telecomm, the attention of the business world has turned to firms in the biotechnology industry. That sector, which embraces applications that extend from agriculture to medicine and the environment, has not faltered amid the overall downturn in the technology industry. Unlike frothy dot-coms and other recent Wall Street fads, this focus is likely to remain with us for the long haul, and its consequences spell new challenges and opportunities for Greater Wilmington.

Biotechnology can be defined as an array of techniques that use living cells and their processes to solve problems or make products. Though the term was not used until the 20th Century, the concept of biotechnology can be traced back thousands of years to when the earliest humans first began breeding plants and animals for food and fabrics. Later, the cultivation of bacteria and fungi for making cheese, bread, beer and yogurt were biotech milestones. Today, laundry detergent and human insulin – both products made of living cells and molecules – are examples of modern biotechnology.

From 1993 to 1999, the U.S. biotech industry doubled in size, according to an analysis by Ernst & Young. Its economic impact during those years was considerable: almost half a million jobs were generated by the industry. In 2000, admittedly a watermark year, U.S. investors poured $33 billion into biotech firms.

"I believe the next 50 years will be the era of the life sciences, years in which we can look toward improved ways to diagnose, treat and cure many of the terrible diseases that continue to plague us," predicts Jim Mullen, C.E.O. of Biogen, a Boston-based biotech powerhouse. Mr. Mullen recently addressed the Emerging Issues Forum in Raleigh, challenging the state to focus on education and infrastructure needs in order to grow its biotech industry. The broader technology industry, be said, is converging on life science in the coming years as I/T giants such as Microsoft, SAS and IBM enter the field. Biotech firms are, in turn, venturing into the realm of information management and data manipulation to support core businesses.

"How can we ensure that North Carolina remains a player in the emerging business environment?" Mr. Mullen continued. Benchmarking projects comparing the strengths and weaknesses of the state to its competitors are where he recommends starting. "That’s transportation, infrastructure and schools, schools, schools." Improving public school systems, he said, is an imperative in the "knowledge economy."

In recent years, Greater Wilmington has put itself on the biotech map, becoming home to both large and small firms in the industry. Specifically, companies in the burgeoning sector of contract research have clustered here. Among them is PPD, Inc., a leading supplier of "discovery" and development services and products for pharmaceutical and biotechnology firms operating worldwide. The company, which employs over 4,500 professionals across 20 countries, is headquartered in the Port City. Last summer, Lek d.d., a Slovenia-based manufacturer of pharmaceutical and chemical products, selected Wilmington as corporate base for its U.S. operations. The 55-year-old firm develops, produces and markets a portfolio of products that includes over-the-counter medicines, cosmetics, animal care products and medical devices.

"While much of Wilmington’s success is due to its quality of life, the city has also been smart about positioning itself," says Jim Nichols of the N.C Department of Commerce who is familiar with the biotechnology industry. Mr. Nichols cites the community’s strong leadership, especially in education, for much of its appeal to biotech firms. "Both UNC-Wilmington and Cape Fear Community College have played major leadership roles."

Increasingly, graduates of UNC-Wilmington’s School of Nursing consider careers in industry over more traditional practice environments. "The pharmaceutical companies in our area have begun recruiting out of our Bachelors and Masters degree programs," according to Virginia Adams, Ph.D., dean of the school, "and I think we’re going to see more of that." Registered Nurses possess a unique combination of scientific and clinical skills along with experience working with patients, Dr. Adams says. "The knowledge students get in today’s nursing curricula opens up a world of new career options." Pharmacology, one example she points to, is a required course for each of the school’s 60 or so annual graduates.

Cape Fear Community College’s (CFCC) Chemical Technology program is another plus for companies here. Graduates of the five-semester program typically move into employment in biotech-related environments such as drug testing and manufacturing, food additive processing and environmental monitoring.

"Recruiting and retaining good employees is a goal for any firm, and companies looking to locate in the Wilmington area quickly recognize that being such a nice place to live and its proximity to the coast are definite benefits," says Fred Eshelman, C.E.O. of PPD, Inc. UNC-Wilmington’s programs in biology, chemistry, nursing and business are among the assets companies are attracted to, he says. A convenient mid-Atlantic location just two hours from Research Triangle Park also makes the list.

That’s not to say more can’t be done to make Greater Wilmington hospitable to biotech and other industries. "Air service is the biggest obstacle to Wilmington’s overall economic development," Dr. Eshelman continues, citing the need for better options and more competitive fares. Bringing more diversity to the local economy would also help companies like his recruit professionals whose spouses also need career opportunities. "Though not as much a problem now as earlier, it can still be difficult to recruit dual-professional couples, depending upon the career path of the spouse."

The lead economic developer for Greater Wilmington has been named by Governor Mike Easley to the North Carolina Economic Development Board. Scott Satterfield, C.E.O. of Wilmington Industrial Development, was appointed to the 37-member panel last week. He will join top leaders from across government and business in formulating policies to usher the state through a period of unprecedented economic transformation.

"I welcome Governor Easley’s appointment of Scott Satterfield to our board," says Gordon Myers, an Asheville businessman who chairs the N.C. Economic Development Board. "His experience on the front lines of economic development along with his leadership in southeastern North Carolina will add great value to what we’re doing."

Mr. Myers, who is vice president of real estate for Ingles Markets and a longtime regional development leader in Western North Carolina, sees the geographical and infrastructure resources of Greater Wilmington, especially its deepwater port and extensive maritime industries, as key to positioning the state in the global economy. "Mr. Satterfield’s personal knowledge of those assets will be very important to us," he continues.

Mr. Satterfield has been with Wilmington Industrial Development since 1993. The non-profit organization oversees economic and industrial development in the City of Wilmington, New Hanover County and Pender County. He has been C.E.O. since 1995.

"It is always a great honor to be asked by your governor to serve," Mr. Satterfield says. "Like no time in recent memory, the state faces a list of economic challenges that require bold, innovative solutions. I’m eager to help move North Carolina’s economy forward."

After a decade of admirable growth, the state entered 2002 with its highest unemployment rate since 1983. An eroding manufacturing base, combined with the post-September 11th downturn in travel related business, has been blamed. Particularly hard hit have been the apparel, textiles and furniture manufacturing industries, which have lost thousands of jobs that economists fear will not return with the next business cycle.

The North Carolina Economic Development Board has been charged by Governor Easley to address organizational, operational, marketing, product development, labor, financial and other issues, leveraging expertise and leadership from the public, non-profit and private sectors.

5.79%*

SBA’s 504 Loan Program has

20 year

Fixed Rate Financing.

For more information call:

910-763-8414

Pender Metal Works
Mr. Niels Jorgensen
414 Progress Drive
PO Box 159
Burgaw, NC 28425
1-910-259-1624 (phone)
1-910-259-1625 (fax)
www.nic-usa.com

All Carolina Crane
Mr. Alan Wayne Whiteted
136 Roymac Drive
Wilmington, NC 28401
910-762-2482 (phone)
910-763-6619 (fax)

Premier Molded Plastics
Mr. Steve Rammrath
9191 Industrial Blvd.
PO Box 947
Leland, NC 28451
1-910-371-5799 (phone)
1-910-371-6913 (fax)

Alphagraphics
Mr. Chuck Stone
120 Racine Drive
Wilmington, NC 28403
1-910-392-0800 (phone)
1-910-392-0886 (fax)
www.wilmington341.alphagraphics.com

REM Services, Inc.
Mr. Brent Kitchens
3334-C Hwy. 421 North
Wilmington, NC 28401
1-910-251-1991 (phone)
1-910-251-0096 (fax)

Bryant Electric Company
Mr. Allen Lane, Harold Holland or Roger Tucker
4910 Hwy. 421 North
Wilmington, NC 28401
1-910-343-0720 (phone)
1-910-343-0790 (fax)

Solo Foods, LLC
Mr. Willie Moore or Aaron Parker
201 W. Progress Drive Ext.
PO Box 990
Burgaw, NC 28425
1-910-259-9470 (phone)
1-910-259-9437 (fax)

HRH Construction Products, Inc.
Mr. John Yates or Dean Robbins
475 Carver Drive Rocky Point, NC
PO Box 368
Burgaw, NC 28425
1-910-762-6515 (Phone)
1-910-259-6706 (Fax)

Southeastern Freight Lines
Mr. Paul Riddle
2800 N. 23rd Street
Wilmington, NC 28401
1-910-343-1310 (phone)
1-910-763-8641 (fax)
www.sefl.com

Lek Pharmaceuticals, Inc.
Mr. Paul Kleutghen
115 W. Third St., Suite 301
Wilmington, NC 28401
1-910-362-0021 (phone)
1-910-362-0051 (fax)

SunCom AT&T Wireless
Ms. Julie Jadick
228 Eastwood Rd., Unit B4
Wilmington, NC 28403
1-910-793-5343 (phone)
1-910-793-3362 (fax)
www.suncom.com

The Massey Company
Mr. David S. Massey
2725 Old Wrightsboro Rd., Bldg. 3, Suite A
Wilmington, NC 28405
1-910-251-1900 (phone)
1-910-251-0655 (fax)
www.themasseycompany.com

Walton Engineering
Mr. Mark Walton
111 E. Fremont St., Unit 4
PO Box 895
Burgaw, NC 28425
1-910-259-4800 (phone)
1-910-259-1779 (fax)

McIntyre, Paradis & Company CPA’s, PLLC
Mr. Stan Paradis
112 N. Cardinal Drive, Suite 105
Wilmington, NC 28405
1-910-793-1181 (phone)
1-910-793-1182 (fax)

White Tractor Company, Inc.
Mr. Charles White
530 Hwy 1175
PO Box 416
Burgaw, NC 28425
1-910-259-2156 (phone)
1-910-259-3300 (fax)
www.whitetractorcompany.com

Reserves Network wins Weatherhead

The Reserves Network, a provider of Total Workforce Solutions through temporary and permanent staffing, professional search and information technology support and solutions services, won its 11th Weatherhead 100 Award when it earned the honor during a ceremony at Executive Caterers at Landerhaven on December 12.

The criteria to become eligible for the Weather head 100 program are:

1.) Growth in net sales during the past five years.

2.) At least $100,000 in sales in 1996 and $1 million in 2000.

3.) A minimum of 16 full-time employees in 2000.

All winners must be nominated to become eligible for the award.

North Carolina's Business Climate ranked #1

Site Selection magazine, which focuses on industrial relocation, has chosen North Carolina as the top business climate in the country. North Carolina received the same ranking in 1999 and came in 3rd in 2000. Other states in Site Selections top ten were: California, Texas, Virginia, Florida, Illinois, Michigan, New York, South Carolina and Georgia.

South Atlantic Services

Lani Matzelle, Controller of South Atlantic Services (SAS), announced the installation of a state-of-the-art inventory management application. This will allow SAS to more effectively manage the packaging services thy provide to over 20 different companies from 2 manufacturing location in Wilmington, North Carolina and Houston, Texas.

Inclusion of news in WID Newsletter.

Database listing of industrial properties for referrals.

Posting of commercial property on WID website.

Posting of commercial property on regional economic and NC Department of Commerce (providing property meets specified criteria).

Inclusion of your company’s marketing literature, when appropriate, in client/prospect proposals.

Building/Site Selection Assistance-if you are planning to expand or relocate, we can help you find the ideal building and/or site.

Financial Assistance-based on your company’s capital needs, WID can locate attractive financing options.

SBA 504 Loan

Industrial Revenue Bond Inducement Assistance

Community Development Block Grants