As the pandemic descended on North Carolina a year ago, the economy appeared headed for a recession. That makes it especially remarkable that a year later – almost to the day of the governor’s announcement of a state of emergency – there came the announcements of two major gains for the state economy.
Google has announced plans to open a cloud engineering hub in Durham that could bring more than 1,000 jobs in the next few years, bolstering the Research Triangle’s reputation as one of the nation’s leading tech centers. Google already has a North Carolina presence with an office in Chapel Hill and a massive data center in Caldwell County.
In addition, Fujifilm Diosynth said it will invest $1.5 billion in a new pharmaceutical manufacturing facility in Holly Springs that could bring 725 jobs over the next five years.
Meanwhile, Honeywell is undertaking a major expansion in Charlotte and the city has attracted a strong group of tech startup companies.
The Google and Fujifilm Diosynth announcements come as the Triangle and North Carolina are drawing more tech businesses with high-paying jobs despite the pandemic’s economic disruptions. Gov. Roy Cooper said the state is “finding opportunity in crisis.”
Indeed the crisis may be fueling investment in North Carolina. The pandemic has spurred increased public and private investment in health sciences, a key part of the state’s economy. Meanwhile, the restrictions on gatherings brought on by the pandemic have accelerated the use of digital technology for everything from remote work, learning and shopping to ordering the family dinner.
Brooks Raiford, CEO of the North Carolina Tech Association, said “the optimism is palpable” among tech leaders and North Carolina will get a healthy share of the investment as tech companies expand and relocate. “We’ve been shocked by the volume of inbound inquiries (from companies) we were not even necessarily pursuing,” he said.
The rising business investment in North Carolina is great news. Google’s new engineering hub, in particular, will be a boost for Durham, where the pandemic has set back its previously fast-rising restaurant and entertainment businesses. The challenge for Google will be to work with city officials and community leaders to ensure that a boost to the city’s economy is shared through local hiring and support for local businesses. The city was wrestling with gentrification before the pandemic. Google should contribute to the solution, not the problem.
Across North Carolina, the rise in private investment will need to be met with a rise in public investment. North Carolina is attractive now for its natural beauty, workers trained by its research universities and its relatively low cost of living. Those qualities will fade without protections for the environment, strong support for public schools and universities and investment in transportation systems and affordable housing.
North Carolina is in a good position to make those investments. During the pandemic, state tax revenues did not drop as expected, budget reserves have grown and another wave of federal relief spending is arriving.
Some Republican lawmakers think the surprising strength of the state’s revenue flow should bring more tax cuts. But that would be the most wasteful and damaging response. This is the time for North Carolina to address its shortcomings in school spending, mass transit and access to health care. The companies coming to North Carolina aren’t drawn primarily by tax breaks. They come for the quality of life.
Unless it matches its good fortune with good planning, North Carolina could be swamped by its success. But, for now, it’s time for the state to take a bow. The vision of its leaders and the hard work of ordinary North Carolinians have the state coming out of a dark year into a bright future.
"Opinion" - Google News
March 27, 2021 at 07:11AM
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Opinion | 'The optimism is palpable.' As the pandemic lifts, NC gets big business news - Richmond County Daily Journal
"Opinion" - Google News
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