Editor’s note: The North Carolina Department of Commerce has unveiled a new strategic economic development plan for the state, and given the importance of recruiting new companies and existing company expansions to the state’s economy, WRAL TechWire is taking an in-depth look at the plan, “First in Talent,” which was released earlier this month.

RALEIGH – According to the North Carolina Department of Commerce, economic development efforts have resulted in more than 73,000 new jobs and more than $19 billion in private business investment announced since 2018, with $6.3 billion announced in 2020.

Yet, the onset of the global coronavirus in early 2020 demonstrated that economic conditions in North Carolina can change, and can change quickly.

“North Carolina’s businesses, workforce, and communities must be skilled enough to adapt and grow,” said North Carolina Department of Commerce staff.  “Relying solely on what has made us successful in the past will not ensure success tomorrow.”

Though it is a statutory requirement for the North Carolina Secretary of Commerce to develop the state’s strategic economic development plan, the last comprehensive update to the strategic plan occurred in 2013, though there were annual updates each year, noted a spokesperson for the Department of Commerce in an interview with WRAL TechWire.

Last week, the Department of Commerce published its comprehensive update to the strategic economic development plan, which focuses on talent.

“Threaded throughout the First in Talent plan are strategies to improve the social determinants of health, like economic stability, environment, healthcare, and education,” North Carolina Commerce Secretary Machelle Baker Sanders told WRAL TechWire.  “Further investment in North Carolina’s greatest asset, it’s people, will ensure North Carolina has a diverse, skilled, and healthy workforce, ready to support immediate and future business needs.

Economists find likes, dislikes, in state’s new economic development plan

“It’s true we have done a very good job with business development in recent years—helping companies either locate or expand in North Carolina,” staff from the North Carolina Department of Commerce told WRAL TechWire.  “However, business development is only one aspect of economic development.  Workforce development and community development are equally important.”

Nearly every business survey conducted, whether national or state-based in focus, identifies increasing the right talent, through attracting talented workers or through educating and then retaining them, as a crucial factor, said Commerce staff.

“The ability to find high-quality employees is essential to a business’s success. It is also what enables individuals and communities to advance their economic situation—making it the single most important issue to ensure North Carolina’s competitiveness,” said the North Carolina Department of Commerce in response to an inquiry from WRAL TechWire.  “For this reason, this economic development strategic plan is focused on the universally recognized importance that talent has for business growth, career success, and community preparedness.”

NCCU economist: rather than ‘First in Talent,’ NC’s positioning should be ‘First in Equity’

“A location’s talent pool remains its key competitive advantage; or when neglected, a glaring disadvantage,” said the response.  “This truth applies to rural communities and in blue-collar sectors as equally as it does to our largest metros and high-tech industries.”

“Talent is the key to returning our most challenged communities and traditional industries to prominence,” staff from the Department of Commerce noted.  “We know that economic success has not been equally shared among the labor force, businesses, and communities.  This plan puts greater emphasis than earlier editions of the strategic plan on building talent and ensuring opportunities for success are available to all people, businesses, and communities.”

Tax incentives will still be used

The use of economic incentive grants, proposing changes in tax law, or seeking increased funding for economic development work, along with conventional economic development activities will continue to be important to the state’s economic development initiatives, the Department of Commerce described.

“Specifically over the last few years, our incentive programs have been improved, with the increase of the Job Development Investment Grant (JDIG) cap, and the creation of the high yield and transformative categories for the program,” said the response.  Commerce staff also noted that the North Carolina state corporate tax rates have decreased, noting that the state is well-positioned to stay competitive in aerospace, automotive, clean energy, information technology, and the life sciences, all of which are targeted industry sectors for further economic development work.

Duke professor: Individual North Carolinians are ‘center stage’ in Department of Commerce Economic Development plan

“Success in economic development requires collaboration between state, regional, and local partners working toward common goals, and that idea remains a foundational principal of this new plan,” the Department of Commerce staff said.  “The focus on preparation also remains a central idea, because only communities that undertake the hard work of preparing their infrastructures and, as the plan makes clear, their workforces will be positioned to compete for the jobs of the future.”