Emerging Issues of
Carteret County’s
Economy and Workforce
Creating a Competitive Advantage
John P. Metcalf
Senior Partner
Who Heard
Mount St. Helens?
Corporation for a Skilled Workforce
Working Locally,
Planning Regionally to
Compete Globally
It was…
“how is the world going to be made in
our image?”
Now it is…
“how is the world changing us?”
China, Inc. Ted Fishman, Scribner 2005
Corporation for a Skilled Workforce
Could it be today that we
say…
Think globally and act locally!
Corporation for a Skilled Workforce
Some Worrisome Global Indictors
 For one chemist in the US, a company
can hire 5 in China or 11 in India
 The US is now a net importer of high
technology products
 120 chemical plants built worldwide: 1
in US and 50 in China
Rising Above the Gathering Storm, National Academies,
www.nationalacademies.org/cosepup
Corporation for a Skilled Workforce
Some Worrisome Global Indictors
 Fewer than 1/3 of US 4th and 8th graders
perform at or above proficiencies in math
 In 2003 only three US companies ranked
among the top 10 recipients of patents
granted by the US Patent Office
 In 2004, China graduated about 500,000
engineers; India 200,00; the US 70,000
Rising Above the Gathering Storm, National Academies,
www.nationalacademies.org/cosepup
Corporation for a Skilled Workforce
What Are Companies Chasing?
“Jobs and dollars are chasing not just low
wages but, more importantly, chasing
skilled labor.”
“America is not producing enough welleducated, technically-educated young
people to power its own economy just five
years from now. China and India are going
to need their own, and the whole American
powerhouse, comes the warning, risks
tumbling down.”
The 2010 Meltdown, Dr. Edward Gordon, Greenwood Publishing
Corporation for a Skilled Workforce
So, The World Is Flat
 Distance today is measured in mouse
clicks instead of miles
 We are interconnected in a “flat world”
Flat = Interconnection
Corporation for a Skilled Workforce
Tom Friedman in The World is
Flat states:
It affects everything . . . How communities
and companies define themselves . . . how
individuals balance their different identities
as consumers, employers, shareholders, and
citizens, and what role government should
play. All of this is going to have to be sorted
out anew.
Corporation for a Skilled Workforce
Carteret County’s
Positioning
Corporation for a Skilled Workforce
Population Growth
35%
U.S.
North Carolina
Eastern Region
Carteret
28.8%
30%
25%
21.4%
20%
14.4%14.0%
15%
10.6%
13.2%
13.1%
13.1%
9.9%
8.3%
10%
7.9%
5.8%
4.4%
5%
3.3%
0.1%
0.2%
2000-04
2000-09
0%
1980-90
1990-2000
Source: U.S. Census Bureau, AGS Demographics
2004 Median Age
50
43.4
45
40
36.2
36
33.9
Median Age
35
30
25
20
15
10
5
0
U.S.
North Carolina
Eastern Region
Source: AGS Demographics
Carteret
Growth by Age Group, 2000 to 2009
Youth Ages 15 & Under
30%
Adults Ages 65 & Older
25%
Percent Growth
20%
15%
10%
5%
0%
-5%
-10%
U.S.
North Carolina
Eastern Region
Source: U.S. Census Bureau, AGS Demographics
Carteret
Educational Attainment, 2004
100%
90%
24.4%
15.0%
22.5%
7.4%
80%
70%
60%
20%
6.3%
7%
6.8%
23.5%
26%
21.1%
20.5%
28.6%
28.4%
31.8%
19.6%
21.8%
22.2%
U.S.
North Carolina
Eastern Region
50%
40%
30%
30%
20%
10%
18%
0%
Less Than High School
High School Diploma
Associate's Degree
Bachelor's Degree or Above
Source: AGS Demographics
Carteret
Some College (no degree)
Wage & Salary Income vs. Other Sources, 2000
Wage or salary income
80%
Other Income (non-wage/salary)
70%
60%
50%
40%
30%
20%
10%
0%
U.S.
North Carolina
Eastern Region
Source: U.S. Census Bureau
Carteret
Distribution of Non-Wage/Salary Income
by Source, 2000
12%
U.S.
North Carolina
Eastern Region
Carteret
10%
8%
6%
4%
2%
0%
SelfEmployment
Interest,
Dividends, or
Net Rental
Social
Security
Supplemental
Security
Public
Assistance
Source: U.S. Census Bureau
Retirement
Other
Average Value of Owned Homes, 2000
$180,000
$160,000
$162,709
$158,934
$137,312
$140,000
$113,083
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
U.S.
North Carolina
Eastern Region
Source: U.S. Census Bureau
Carteret
Co
n
es
ou
rc
es
M
st
ru
&
in
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ct
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io
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e,
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uf
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til
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rm
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at
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in
of
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at
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&
es
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al
th
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ur
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e
&
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sp
ita
lit
y
O
th
er
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bl
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es
Ad
m
in
is
tr
at
io
n
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cl
as
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ur
al
R
Na
t
Carteret County Distribution of Employment and
Total Wages, 2004
30%
Employment
25%
Total Wages
20%
15%
10%
5%
0%
Source: The Employment Security Commission of North Carolina
Distribution of Employment Goods Producing vs.
Service Providing Industies, 2004
100%
85.4%
90%
79.0%
77.9%
80%
70%
60%
50%
40%
30%
22.1%
21.0%
20%
14.6%
10%
0%
North Carolina
Eastern Region
Goods-Producing
Service-Providing
Source: The Employment Security Commission of North Carolina
Carteret
Dropout Rates
Unduplicated Four Year Drop Out Rate,
2004 to 2005 School Year
10%
8.6%
9%
8%
7%
6.4%
6%
5.4%
5.7%
5.2%
5%
5.1%
4.9%
4.6%
5.0%
4.7%
3.5%
4%
3%
2%
1%
ar
eg
N
or
th
C
R
te
rn
Ea
s
Source: North Carolina Department of Public Instruction
ol
in
a
io
n
ne
W
ay
o
lic
Pa
m
ow
O
ns
l
ir
Le
no
s
Jo
ne
ne
re
e
G
up
lin
D
n
ra
ve
C
C
ar
te
re
t
0%
2003-2004 Percent of Course Enrollment in
Advanced Placement or Technical Courses
18%
16%
16%
North Carolina
14%
Carteret
15%
12%
10%
8%
6%
4%
3%
2%
2%
0%
Advanced College Prep Courses
Career and Technical Courses
Source: North Carolina Department of Public Instruction: School Report Cards
Three Studies, Same Conclusions
 2006 State of the Workforce Report
 NC Policy Center Report
 Eastern NC Economic Study
Corporation for a Skilled Workforce
Eastern Region’s Workforce
Storylines
 We must take advantage of our labor pool
if we are to thrive in a new economy
 Our economy is making a major shift from
traditional industries and occupations to a
service delivery economy
 If we are to be competitive in the global
economy our region must build it through
Career Awareness and Job Readiness
2006 State of the Workforce Report, Eastern Carolina Workforce Development
Board
Corporation for a Skilled Workforce
Eastern Region’s Workforce
Storylines
 Our region’s future is in the hands of our
youth and how well prepared they are to
transition from school to work
 We are a region that shares more in
common than we have in differences
 Our community must make a decision now
on the industries that will support our
region’s future
2006 State of the Workforce Report, Eastern Carolina Workforce
Development Board
Corporation for a Skilled Workforce
Coastal Sub-region Value Chain Clusters
$60,000
Military (existing) not shown due to high
concentration. It has an LQ of
approximately 20, employs 71,527 people,
and has an average wage of $48,225. Ship
and Boat Building (existing) also not
shown due to high concentration. It has an
LQ of over 12, employs 2,327 people and
has an average wage of $28,516.
NCER Average Wage (2004)
$50,000
$40,000
Chemical-based
products
556
Wood building products 1,144
Motor vehicles
1,765
Appliances
1,467
Source: US BEA (2003), and NCER.
$30,000
Concrete, brick
building products
1,162
$20,000
NCER 2nd Qtr 2004
Average Wage =$28,128
Machine tools
1,029
(Source: NCESC)
Wood processing
1,318
Feed products
1,027
$10,000
Green=Existing
Hotels & transportation
services, 12,095
Blue=Emerging
Orange=Potential
$0
0.0
0.5
1.0
1.5
Concentration (LQ 2004)
2.0
2.5
Sub-regions in North Carolina’s Eastern Region
North Sub-region
*Textiles & Tobacco
*Food Processing/distribution
*Pharmaceuticals and
Auto-related MFG
*Precision Instruments
Pitt Sub-region
*Advanced Health Care
& Higher Education (ECU)
*Pharmaceuticals and
Auto-related MFG
*Financial Services
Nash
Edgecombe
Wilson
Pitt
Greene
Wayne
Lenoir
Craven
Jones
Pamlico
Duplin
Central Sub-region
*Military
*Value-Added Agriculture
(e.g. farming, food processing)
*Tobacco Consolidation
*Building Products
Onslow
Carteret
Coastal Sub-region
*Military
*Marine-related Industries
*Hotels/transport (tourism)
*Retiree Attraction
However
“A Trend Is Not a Destiny”
“A Trend Is Not A Destiny”
 Your challenge is to bend the curve and
create a new destiny
 If you do nothing, then then you’ll follow
the trend
 If you plan now for action, then you’ll
create a “preferred future”
 Create the 20% difference
Corporation for a Skilled Workforce
The 80/20 Factor In
Economic Development
 Most local economies are driven by national
and global economic forces
– The 80% factor
 The remaining economic forces are from
local efforts to create competitive
advantages
– The 20% factor
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To Create a Competitive
Advantage, Regions Must
 Invest in their infrastructure, and,
 Invest in the skills of their citizens
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Education and Workforce
Development Support Economic
Development
 A good quality of life is related to a good wage
 A good wage depends on a good job
 Good jobs are dependent on a strong, diversified
economy
 A strong economy is dependent on a high quality
education
 Quality education depends on healthy children and
families
 Healthy children and families depend on vibrant
communities!
North Carolina Progress Board NC20/20 2001
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Some Recommendations
 Convene a discussion about the
region’s future
 Decide if a cluster based strategy is
right for the region
 Support entrepreneurship efforts
across the region
Corporation for a Skilled Workforce
Some Recommendations
 Develop and launch a comprehensive
youth campaign
 Develop and launch a comprehensive
career awareness campaign
 Investigate the affordable housing
issue in Eastern Region
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How Does Carteret
County Create A
Competitive Advantage
in a Global Economy?
Corporation for a Skilled Workforce
Act On These Questions
 What must we do to integrate our
economic, workforce and economic
strategies?
 How do we influence education reform to
meet global standards?
 What is the vision, “preferred future”, for
our county? Our region?
 What are the consequences for our citizens
if we do nothing?
Corporation for a Skilled Workforce
Corporation for a
Skilled Workforce
900 Victors Way
Suite 350
Ann Arbor, MI
48108
734-769-2900
John P. Metcalf
704-814-8999
[email protected]
www.skilledwork.org