MOVING AT THE SPEED OF BUSINESS BROUGHT TO YOU BY

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1 PA I D A DV E R T I S I N G S U P P L E M E N T MOVING AT THE SPEED OF BUSINESS BROUGHT TO YOU BY

2 UPCOMING EVENTS The North Carolina Chamber is committed to shaping our state s future by providing your business with the most current information available on issues that impact your bottom line. Our signature events provide open, in-depth discussions on vital issues like the economy, education, tax reform, workers compensation reform, tort reform, environmental regulations and much, much more. Some events offer the opportunity to earn credit hours that meet their industry s standards for continued learning requirements (CLE, CPE, etc.). Join us as we shape North Carolina s future together! Workplace Diversity & Inclusion Conference 2017 marks the North Carolina Chamber s inaugural Workplace Diversity and Inclusion Conference. This timely, information-packed program covers topics such as recruiting for diversity; fostering a culture of inclusion; evaluating D&I initiatives using proper metrics; understanding unconscious bias, and more. Content will valuable for a wide range of organizations and attendees, ranging from the young professional to seasoned executive. Seats and sponsorships are expected to sell out quickly for this event. Conference on Education Our CEO Poll shows that talent supply is the top concern among business leaders in North Carolina. The 2017 Conference on Education brings together the business and education communities to explore solutions to the skills gap, including apprenticeship programs, customized training, work-based learning and more. Be a part of the solution and position your business to recruit the best and brightest talent by collaborating with educators at this event. Women > A Force in Business In North Carolina, and across the country, more women are aspiring to and filling roles in the political, corporate and nonprofit realms. They are wielding more buying power than ever before and launching businesses of their own. They are conquering and overturning gendered stereotypes of yesterday. And they re just getting started. Join us in September as we explore pathways to leadership, what it s like at the top and how men and women can work together to inspire the next generation of female leaders. New for 2017, this event will feature breakout sessions and a full exhibit hall featuring professional development and training opportunities. REGISTER NOW Visit

3 PAID ADVERTISING SUPPLEMENT 3 NORTH CAROLINA CAN T AFFORD TO WAIT S. LEWIS EBERT North Carolina Vision 2030 A Plan for Accelerating Job Growth and Securing North Carolina s Future, coordinated by the North Carolina Chamber Foundation, is a forward-thinking plan that provides focused economic development strategies to drive real economic growth, and create good jobs for North Carolinians. To be a winner in the global jobs war, North Carolina must strive for excellence in four key areas, Education and Talent Supply, Business Climate, Entrepreneurship and Innovation, and Infrastructure and Growth. This piece, Moving at the Speed of Business, is a focus on the S. Lewis Ebert, President and CEO, importance of continued North Carolina Chamber investments in infrastructure as our state manages its tremendous population growth. Sufficient physical infrastructure, including transportation, water supply, sewer, energy and broadband, to meet future demand, is required for good jobs and a secure future. Economic growth, safety and quality of life improvements are interconnected and dependent on investments in infrastructure. North Carolina has several exciting projects in the works. Across the state, there are key transportation highway or road projects that will enable growth and business expansion. In addition, the Carolina Connector, the Queen City Express, the Atlantic Coast Pipeline, and expansion and economic development projects underway with the NC Railroad Company will all have a major impact on the way goods and products move throughout our state. Broadband is an integral part of building a 21st century technology infrastructure that supports North Carolina citizens and businesses. Unfortunately, there is still a significant portion of households and businesses in non-urban areas of North Carolina without access to a wired connection. There are efforts underway to improve that. Airports are a vital part of our transportation system and generate economic activity, connecting our state to the global economy and promoting growth. Employees, employers, school systems, emergency responders and others rely on infrastructure systems that flow well and allow them to find their destinations quickly and safely. Continuing to set the conditions for growth and job creation in North Carolina should be a top priority and sound infrastructure policy is a fundamental building block to that overall success. I hope you enjoy learning more about the ways North Carolina is preparing for growth. Leaders across the state are prioritizing infrastructure and working to find ways to invest in North Carolina s future. The quality of life in North Carolina s communities and the health of the economy statewide is highly reliant on the quality of our infrastructure systems. Now is the time to secure a diversified, stable and economically efficient revenue model to meet North Carolina s long-term needs. North Carolina cannot afford to wait. S. Lewis Ebert is president and CEO of the North Carolina Chamber, a nonpartisan business advocacy organization that works in the legislative, regulatory and political arenas to proactively drive positive change to ensure that North Carolina is a leading place in the world to do business. TABLE OF CONTENTS 4 PREPARING FOR POPULATION GROWTH: SECURING NORTH CAROLINA S TRANSPORTATION INFRASTRUCTURE There are currently more than ten million people living in North Carolina. By 2030, the population is expected to grow to 12 million, making North Carolina the seventh most populated state in the nation. This growth brings many opportunities, but it begs the question: Are we ready? 5 UPCOMING PROJECTS AND HOW THEY WILL IMPACT YOUR BUSINESS As the gateways connecting North Carolina to the modern global economy, North Carolina s current and future transportation and infrastructure projects are the lifeblood of the state s economic opportunity. Without innovative projects advancing North Carolina s transportation and infrastructure networks, the state s competitive future will weaken. 8 CLOSING THE DIGITAL DIVIDE: BRINGING BROADBAND TO NON-URBAN NORTH CAROLINA Broadband internet, once considered a luxury, is now seen as a necessity to keep up with the demands of the new digital age. Having access to a fast, reliable internet service plays a critical role in education and the workforce. 9 LOOKING AHEAD: WATER SUPPLY AND SEWER INFRASTRUCTURE One of the most important and challenging issues facing North Carolina in the 21st century is the adequacy of water resources to support expected growth and economic development. Water security affects every sector of society business and industry, agriculture, local governments and the general public. 10 HOW AIRPORTS ARE GENERATING ECONOMIC ACTIVITY AND COMMERCE IN NC North Carolina s airports are a vital part of the state s transportation system connecting its citizens to the global economy while promoting growth and economic prosperity across the state. The 72 publicly owned airports in North Carolina have a combined $31 billion annual economic impact and provide 123,400 airport-related jobs.

4 4 TRIANGLE BUSINESS JOURNAL PREPARING FOR POPULATION GROWTH: SECURING NORTH CAROLINA S TRANSPORTATION INFRASTRUCTURE JAKE CASHION, NORTH CAROLINA CHAMBER There are currently more than ten million people living in North Carolina. By 2030, the population is expected to grow to 12 million, making North Carolina the seventh most populated state in the nation. This growth brings many opportunities, but it begs the question: Are we ready? North Carolina s transportation infrastructure is one of our state s most important assets, touching every North Carolina citizen in one way or another through its impact on safety, quality of life, economic development and daily commerce. The transportation network gets kids to and from school safely, employees to work, groceries to shelves and more. However, North Carolina is heading toward a transportation crisis with declining funding sustainability, a rapidly growing population, aging roads and bridges and well-documented transportation needs. If we do not begin to diversify revenues and consider innovative financing methods, North Carolina will no longer be able to ensure the safety and efficiency of our transportation network. In the 2015 legislative session, gains were made with additional transportation funding. However, maintaining North Carolina s roads, bridges, seaports, airports and adding new transportation assets, is costly. The state has identified more needs than available transportation dollars. In fact, over the next decade, the North Carolina Department of Transportation is only able to fund 17 percent of the transportation projects needed. Priority must be placed on maintenance and construction of surface road and highway infrastructure, continued maintenance and directed improvements to the North Carolina Ports system, along with freight rail optimization and airport infrastructure investment to meet global demand. All modes of the transportation network, including those tied to the movement of people, such as current and future rail transit, are important for the long-term development and growth of the state. A 10 to 1 Return on Investment With that in mind, the NC Chamber Foundation commissioned the Institute for Transportation Research and Education at NC State University to conduct a study to find a solution that provides a diversified, stable and economically efficient revenue model that will meet North Carolina s long-term transportation needs, as well as address current challenges. Diversifying Revenues to Improve Commerce and Economic Prosperity identified 16 recommendations for alternative funding methods, and doing nothing is not one of the recommendations. Additionally, the study found that investing in the state s transportation system yields a significant return on investment through providing a long-term asset. For every $1 billion invested in the network, there is a 10 to one return - $10 billion in additional economic activity, $10+ billion in additional wage growth and more than 14,000 jobs annually and these jobs are realized in many different industries. The Importance of Diversified Revenue Streams The current revenue model is a true user fee concept North Carolinians pay for use of the system through gas taxes and registration fees. This system currently makes up nearly 70 percent of the state s transportation revenues. However, with increased fuel efficiencies in vehicles and the increased use of alternative fuels, this approach is quickly becoming an unsustainable source of the necessary funds to maintain our current system, much less increase capacity to meet future demands. Forecasts show that in the near future, gas tax revenues will peak and start declining. This will have a series of negative effects across our state, including less job growth, a less competitive business climate, more potholes, inefficient movement of goods, and a decline in quality of life and safety. This makes the issue even more pressing to address. We must determine the best and most economically efficient way to replace and diversify transportation network revenues to avoid this significant negative impact. To fund and finance its transportation improvements, North Carolina must consider innovative financing methods that benefit all users of the system both directly and indirectly. Securing North Carolina s Future In recent years, North Carolina s state leaders have made solid gains and put billions of dollars into the economy. Going forward, they must continue making NORTH CAROLINA S TRANSPORTATION CHALLENGES AND OPPORTUNITIES NORTH CAROLINA TRANSPORTATION CHALLENGES **Fuel efficiency improvements result in decrease gas usage, lower fuel usage/mile and therefore less transportation network revenue = Unsustainable revenue method. NORTH CAROLINA TRANSPORTATION OPPORTUNITIES **ITRE has determined that for every $1 billion invested into transportation, approximately14,000+ jobs will be supported and $10+billion in economic growth. *The current value of the 163,000 lane miles and 13,455 bridges maintained by the North Carolina Department of Transportation (NCDOT) is $575 billion. *NC s drivers and businesses lose $5.7 billion/year as a result of driving on congested and deteriorating roads and highways from vehicle depreciation, damage, tire wear, increased fuel consumption. **Minimum CAFÉ standards for cars will increase from 27.5 MPG to 51.3 MPG by 2025 which will result in lost transportation revenues. *It is estimated that roadways in NC that lack some desirable safety features, have inadequate capacity to meet travel demands or have poor pavement conditions, cost the average motorist and business approximately $1,000/ year. *Every $1 of deferred maintenance on roads and bridges costs an additional $4 to $5 in needed future repairs. 70% of the US population is within two days by truck of central NC allowing for greater connectivity, logistics and supply chain performance. *Annually, $704 billion in goods are shipped to and from sites in North Carolina, with 84 percent of the freight tonnage being shipped by trucks. Half of the US population is within 650 miles of central NC. This will allow businesses to capitalize on our proximity to those markets by virtue of NC s geographic location. *Highway accessibility was ranked the number two site selection factor behind only the availability of skilled labor in a 2015 survey of corporate executives by Area Development Magazine. The state s population is currently more than 10 million and is expected to reach approximately 12 million by 2030, making NC the 7th most populated state in the nation, creating tremendous growth so we must maintain strength in the system. *Vehicle miles traveled in North Carolina increased 10 percent from 2013 to 2016, the twelfth highest rate of increase in the U.S. during this period. It is projected that travel on North Carolina s roads and highways will increase by another 25 percent by *Despite the large size of NC s state-maintained roadway system, per-mile capital spending on state-maintained roads in NC is the 4th lowest in the nation. Source: *TRIP - A National Research Group, **Institute for Transportation Research and Education NC State University

5 PAID ADVERTISING SUPPLEMENT 5 For every $1 billion invested in the transportation network, there is a 10 to one return - $10 billion in additional economic activity, $10+ billion in additional wage growth and more than 14,000 jobs annually. transportation funding diversification a priority for job creation, business growth, safe commerce and quality of life. Surrounding states are not waiting for North Carolina to finalize studies, recommendations or processes. They are moving forward with their own transportation funding plans and initiatives which add more pressure to North Carolina s system. All of these networks work together and maintaining and improving our transportation network is urgent and necessary. The North Carolina Chamber remains committed to working with state and federal policymakers, allied organizations and business leaders to ensure North Carolina develops and implements a comprehensive, longterm transportation strategy that is vital to our economy and quality of life. The statewide business community relies on a strong transportation network and supply chain to move products efficiently in and out of the state marketplace. Now is the time to secure a diversified, stable and economically efficient revenue model to meet North Carolina s long-term transportation needs. North Carolina cannot afford to wait. KEY BENEFITS OF INFRASTRUCTURE INVESTMENT Well-designed infrastructure investments have long-term economic benefits and create jobs in the short run. Middle-class Americans would benefit disproportionately from this investment through both the creation of middleclass jobs and by lowering transportation costs for American households. There is strong demand by the public and businesses for additional transportation infrastructure capacity. Source: U.S. Council of Economic Advisors UPCOMING PROJECTS AND HOW THEY WILL IMPACT YOUR BUSINESS As the gateways connecting North Carolina to the modern global economy, North Carolina s current and future transportation and infrastructure projects are the lifeblood of the state s economic opportunity. Without innovative projects advancing North Carolina s transportation and infrastructure networks, the state s competitive future will weaken. The Old North State will soon become the seventh most populous state in the nation, as another two million residents come to call North Carolina home. While this population influx will increase North Carolina s economic opportunity, so too will the demands of the state s valuable transportation and infrastructure systems. As drivers of job creation, economic development and future growth, understanding the importance of upcoming projects and their impact on the business community is more critical now than ever before. The Carolina Connector Nearly one year ago, CSX, with the state of North Carolina and the Carolinas Gateway Partnership, named Rocky Mount, North Carolina home to a new innovative, state-ofthe-art intermodal hub and transfer facility known as the Carolina Connector (CCX). Since that time, CSX has made tremendous progress developing the Carolina Connector, aiming to commence the 20-month construction process by early 2018 and begin operations by the end of As one of just two intermodal hubs in the CSX network, the Carolina Connector is uniquely positioned in the middle of the I-95 rail corridor, providing unparalleled access to major highways, the Raleigh metro area and the Port of Wilmington. This access will be integral to connecting the Raleigh market and eastern North Carolina businesses to the modern global economy, while also lowering inland transportation costs by as much as 40 percent. As described by Quintin Kendall, CSX Transportation s vice president for state relations and public funding, the $270 million CCX facility, will leverage the economic and environmental benefits of rail, while connecting North Carolina ports, businesses and consumers to hundreds of domestic and international markets. With CSX Transportation s proven track record as a driver of economic growth, CSX s Carolina Connector is set do to the same in North Carolina. Through intermodal shipping, goods are transported using two or more modes of transportation in the shipping process of containerized freight, allowing for the movement of millions of truckloads of goods used by consumers and businesses every day. CCX will be responsible for integrating freight bound for varying consumer markets into larger trains for shipping, while also receiving domestic and international goods to be distributed to North Carolina consumers and businesses. Not only will the Carolina Connector transform North Carolina s ability to connect businesses with the world, spur job creation and grow economic development opportunities for the state, but its own economic impact is stark. Construction of the facility alone will create 300 short-term jobs and once operational, it will provide more than 300 direct, long-term jobs with average salaries of more than $60,000 per year. In totality, the terminal s operation is expected to generate more than 1,500 jobs across the state and contribute $125 million to North Carolina s economy. Beyond the terminal s own economic contributions, it will also provide $300 million in public benefits. This includes 220,000 fewer trucks on the state s highway system each year, meaning less fuel consumption and cleaner air for North Carolina. The Carolina Connector is one of the most significant transportation projects underway in the Southeast. As such, it will have a significant impact on North Carolina business, both locally in Rocky Mount and across the state. From job growth to improved competitiveness, the innovative CCX facility will strengthen North Carolina s infrastructure. CSX Northwest Ohio Intermodal terminal Image courtesy of CSX CSX Northwest Ohio Intermodal terminal Image courtesy of CSX Thanks to commitments by the Governor and the General Assembly, the ongoing support from the Carolinas Gateway Partnership and the advocacy efforts of groups like the North Carolina Chamber, CSX has made great progress developing the Carolina Connector (CCX) intermodal hub and transfer facility in Rocky Mount, NC. Quintin Kendall, Vice President for State Relations and Public Funding, CSX Transportation

6 6 TRIANGLE BUSINESS JOURNAL CONTINUED UPCOMING PROJECTS AND HOW THE Queen City Express North Carolina Railroad Company Just as the Carolina Connector will transform North Carolina s ability to connect businesses to the modern global economy, the Queen City Express will do the same specifically for Charlotte and the city s surrounding areas. This pivotal project between CSX and the Port of Wilmington will provide direct overnight freight rail service to Charlotte and surrounding communities from the Port of Wilmington, offering efficient, best-in-class service to connect the city s businesses to those around the world. Currently, North Carolina does not have a scheduled intermodal train service in place with the North Carolina Ports. As such, the Queen City Express will be the first of its kind come July. This service, like the Carolina Connector, will keep costs low for Charlotte businesses by offering an alternative service to indirect modes of transport, all the while increasing transit efficiency. This service will contribute to increased trade and improved competitiveness for the Charlotte region, while adding to the North Carolina Ports annual $14 billion economic impact on the state. The Queen City Express, in addition to other development projects pursued by the North Carolina State Ports Authority, are critical to improving North Carolina s competitive business climate. This project, coupled with the modernization efforts underway at the Port of Wilmington will be instrumental in attracting and retaining investment. From construction of new berth assets to waterway investments to improved terminal equipment, the North Carolina Ports Authority is investing more than $150 million in modernization efforts to enhance the state s competitive advantage. As Paul Cozza, executive director of the North Carolina State Ports Authority described, these efforts are focused on improving the connection of international logistics for North Carolina companies. Increasing connectivity to the modern global economy is key to advancing competition and economic growth. It is for that reason, the North Carolina State Ports Authority has added three new trade routes to Asia, another European connection and one trade route specifically designed for refrigerated goods to Europe. These trade route additions will all be available for use through the Queen City Express, opening the door for more transit and trading opportunities. To quantify the significance of these routes, container volume will increase by 70 percent, offering more logistical choices and increasing competitiveness. Of course, receiving the necessary funding to remain on that trajectory now and in the years to come is vital to the North Carolina State Ports Authority. As Cozza described, the challenge is to be able to keep that going over the longterm so that we can remain competitive. Modern transportation assets, efficient transportation assets and new investment is the name of the game to keep our companies competitive so they want to be located here and they want to grow here in the Carolinas. North Carolina s rail infrastructure is critical to developing the state s competitive advantage. With 317 miles of rail stretching between Charlotte and the Port of Morehead City, the North Carolina Railroad Company s rail corridor is an asset to North Carolina businesses, offering flexible options for moving inbound freight and outbound products. According to Scott Saylor, president of the North Carolina Railroad Company (NCRR), this is especially true as the state continues to experience growth in manufacturing. We see a resurgence in manufacturing and therefore an increase in the number of businesses and industries that are requiring freight rail infrastructure to bring their companies here. Our goal is to help North Carolina create a competitive advantage by bringing the rail component to those companies and accelerating the process, said Saylor. In achieving this goal, the NCRR is committed to advancing economic development and infrastructure improvement projects across the state through NCRR Invests. This initiative invests in businesses that are creating jobs in North Carolina and utilizing the state s valuable rail corridor. This year, the NCRR has already invested nearly three million dollars in five economic development projects. In addition to these investments the NCRR s economic impact on the state is tremendous. Annually, the NCRR s estimated impact on the state s economy is $794 million and since 2000, the NCRR has invested more than $80 million in capital improvements. In looking towards the future of rail in North Carolina, Saylor noted, our longterm vision is to ensure North Carolina can strike the right balance between urban development and ensuring our freight railroad corridors are able to meet the future rail capacity needs to create jobs. Key components to this strategy include shortening the lead time for building new tracks and having the ability to offer flexibility in new or expanded rail services, both of which serve to bolster North Carolina s competitive advantage. Ensuring North Carolina s rail infrastructure is ready and able to grow with the state is necessary in order to retain and attract future investment. It is for that reason, the NCRR has remained laser-focused on developing a strategy that will further competitiveness. As Saylor described, rail is capital intensive and the companies we want to attract are capital intensive. We want to be on the top of our game in helping plan and pay for that rail infrastructure to get them here. A freight train going over Klumac Rd. in Salisbury Image courtesy of North Carolina Railroad Company

7 PAID ADVERTISING SUPPLEMENT 7 Y WILL IMPACT YOUR BUSINESS NCRR ECONOMIC DEVELOPMENT PROJECTS Cambro Manufacturing, Alamance County, Mebane As a worldwide manufacturer of food service equipment and supplies, Cambro Manufacturing created 100 jobs and plans for further expansion. The NCRR invested $750,000 for the use of a lead track with the potential to serve other businesses in the NCIC. Mountaire Farms, Scotland County, Laurinburg Mountaire Farms is the seventh largest chicken producer, opening a feed mill in Laurinburg and creating 65 jobs. The NCRR invested $650,000 for the use of a lead track with the potential to serve other businesses in Laurinburg Maxton Airport Industrial Park. Clearwater Paper, Cleveland County, Shelby This Spokane-based company is a publicly traded producer of paper products creating 180 new jobs in Cleveland County. The NCRR invested $875,000 for the use of a lead track with potential to serve other businesses in Washburn Switch Industrial Park. Weitron, Inc., Martin County, Everetts This Delaware-based manufacturer, packages and distributes refrigerant gases for automotive, residential and industrial air conditioning, and cold storage refrigeration applications. Weirton, Inc. is creating 31 new jobs in Martin County. The NCRR invested $467,000 for the use of a lead track into Martin County Regional Business Park with the potential to serve other businesses in the park. Atlantic Coast Pipeline Efficient, low-cost energy cannot be produced in North Carolina without the necessary infrastructure in place to meet the demands of a growing state. North Carolina s lack of natural gas pipelines presented an economic development challenge for the state. However, it is one that the Atlantic Coast Pipeline will help fix. Supported by an array of North Carolina elected officials and economic development leaders across our state, this pipeline serves to advance an all-of-the-above energy strategy in North Carolina and is a gamechanger for the state s economy. Specifically, this 600-mile underground, interstate pipeline will enhance the reliable delivery of low-cost natural gas supplies to portions of eastern North Carolina, helping to avoid extreme energy price spikes and fill the void in North Carolina s natural gas infrastructure. This project will not only improve North Carolina s energy infrastructure but is set to be a major long-term economic driver in the state. Over the next decade, the Atlantic Coast Pipeline project will become one of the state s top job creators, supporting 17,240 jobs during construction and 2,200 in operations. Additionally, the pipeline will create $680.2 million in economic activity and once operational, it will save consumers and businesses an estimated $377 million annually in lower energy costs. The economic benefits do not end there. While some industries may have overlooked North Carolina in the past due to the state s lack of a reliable natural gas supply, the Atlantic Coast Pipeline could entice those industries to reconsider the state, ultimately leading to greater job creation. Further, the pipeline is set to generate $28 million in local tax revenue for the communities along the route of the pipeline that s millions of dollars in revenue for communities spanning eight counties across North Carolina. While serving as a major economic contributor, the pipeline will also help improve North Carolina s environment by fostering cleaner air, energy independence and greater energy reliability. Its environmental contributions will also allow Duke Energy to continue its efforts to retire older coal power plants over the next decade and replace them with cleaner burning natural gas and other resources. As of April of this year, the Atlantic Coast Pipeline was moving into the final stages of the permitting process. This, after the Federal Energy Regulatory Commission released a favorable draft Environmental Impact Statement in December. The pipeline has received local approvals to build compressor stations - one in Northampton County and more than 98 percent of the environmental surveys have been completed. There has also been great progress in attaining easement agreements and securing building materials. As this project moves forward, North Carolina businesses and consumers have much to gain. In a recent press briefing, President and CEO of Dominion Energy Diane Leopold had this to say about the pipeline, [t]he Atlantic Coast Pipeline is essential to the economic vitality, environmental health and energy security of our region. This project will result in more economic opportunity, a cleaner environment, and lower energy bills for consumers and businesses. Most importantly, public utilities in our region are depending on this project to meet the growing energy needs of the millions of customers they serve. Borealis Compounds, Alexander County, Taylorsville Borealis Compounds is a manufacturer of plastic compounds used in the automotive industry and is creating 37 jobs in Alexander County. The NCRR invested $225,000 to assist with costs associated with extension of rail spurs and a lead track. In a recent press briefing, President and CEO of Dominion Energy Diane Leopold had this to say about the pipeline, [t]he Atlantic Coast Pipeline is essential to the economic vitality, environmental health and energy security of our region. This project will result in more economic opportunity, a cleaner environment, and lower energy bills for consumers and businesses. Most importantly, public utilities in our region are depending on this project to meet the growing energy needs of the millions of customers they serve. Image courtesy of North Carolina Ports

8 8 TRIANGLE BUSINESS JOURNAL CLOSING THE DIGITAL DIVIDE: BRINGING BROADBAND TO NON-URBAN NORTH CAROLINA CAROLINE BARNHILL Broadband internet, once considered a luxury, is now seen as a necessity to keep up with the demands of the new digital age. Having access to a fast, reliable internet service plays a critical role in education and the workforce. And while the majority of the state has access to quality internet, there is still a significant portion of households and businesses in non-urban areas of North Carolina without access to a wired connection. Initiatives like the FCC s Connect America Fund (CAF) hope to close the gap by offering grant money for providing broadband access to distressed or underserved areas. CenturyLink has accepted $500 million in grant money through the CAF program, and will use $60,000 of their portion of the funding to bring broadband internet to homes and small businesses across North Carolina over the next six years. CenturyLink will impact more homes and businesses than any other internet provider participating in the CAF program, says Rondi Furgason, vice president of operations for CenturyLink s North Carolina operations. Broadband has become so essential to how we live our lives. Any time we can leverage government funding to increase speeds or serve people who otherwise can t get access to high-speed internet, the better. Funding to bring broadband access to more rural parts of the state has come from other avenues as well. The Golden LEAF Foundation, whose mission is to increase economic opportunity in North Carolina s rural and tobacco-dependent communities, helped fund a $144 million expansion of the North Carolina Research and Education Network, labeled the Golden LEAF Rural Broadband Initiative (GLRBI). The GLRBI was completed in the spring of 2013, providing 69 rural counties across the state with 1,800 miles of fiber. This initiative helped connect schools, hospitals, libraries and other community anchor institutions in some of the least populated areas of our state, says Dan Gerlach, president of the Golden LEAF Foundation. Education is becoming more about the quality of online instruction. Tele-health is becoming an important part of the healthcare industry. Libraries are often used as places for people to hunt for jobs. We need to provide broadband access to help support people in these underserved areas. But there are challenges to bringing broadband to more rural parts of the state. Having to bore a major highway, like an interstate, or cross a body of water or railroad can be difficult. Generally speaking, Furgason says, companies like CenturyLink are able to apply for permits early and work in parallel with other engineering activities to make the most of the process. Cost, budgets and limited people resources can be a challenge, Furgason says. We re making progress every year, but it s just going to take time. Gerlach agrees, saying grant money is important to help bring broadband access to areas that the private sector might otherwise deem too expensive due to geography, topography or population density. Providing broadband access to rural areas helps strengthen the education and workforce in that area and make it more competitive to potential businesses, which leads to economic growth, Gerlach explains. Our hope is that broadband helps take away the disadvantage of distance from major cities. If we provide access for you to be able to communicate across the globe from your home or school, that s a major opportunity for success. Between 2002 and 2012, CenturyLink received 6 grants totaling $4.7 million in matching support from the state of North Carolina, which allowed the company to serve 125,000 homes with broadband service the company would not otherwise be able to serve due to high costs.

9 PAID ADVERTISING SUPPLEMENT 9 LOOKING AHEAD: WATER SUPPLY AND SEWER INFRASTRUCTURE Since the launch of North Carolina Vision 2030 in 2013, the NC Chamber Foundation has been leading initiatives to provide solutions-oriented policy recommendations to help secure North Carolina s future. One of the most important and challenging issues facing North Carolina in the 21st century is the adequacy of water resources to support expected growth and economic development. Water security affects every sector of society business and industry, agriculture, local governments and the general public. Among other things, water supply shortages could possibly limit the potential for new and expanded manufacturing and power generation facilities, and create challenging conflicts. Additionally, the current water supply planning does not take into account the significant water demands that agriculture puts on our state s resources. The only way of getting a full picture of the current and future needs is to look at all aspects of water supply planning. It is therefore imperative that the state and affected stakeholders take a proactive approach to ensuring that the state s long-term water supply needs are met. This will involve a combination of regulatory/legal and non-regulatory strategies. In order to be prepared for the tremendous population growth in the coming years, we must tackle water infrastructure issues, supply and conservation. These issues affect every business, industry and North Carolinian directly. Later this year, the NC Chamber Foundation will commission a study to develop long-term solutions to be proactive to address water supply issues in North Carolina. Similarly to the urgency behind a 2030 water plan, North Carolina needs to be prepared for a long-term solution to solid waste. There has not been a new landfill permitted in 30 years, which will be a large issue for North Carolinians and business as our population continues to grow. The North Carolina Chamber Foundation will study this issue in the coming year. The desired outcome will be to find safe, responsible and reliable long-term solutions to discard of solid waste and look for ways to leverage the waste for energy usage for businesses. One of the most important and challenging issues facing North Carolina in the 21st century is the adequacy of water resources to support expected growth and economic development. Water security affects every sector of society business and industry, agriculture, local governments and the general public. Among other things, water supply shortages could possibly limit the potential for new and expanded manufacturing and power generation facilities, and create challenging conflicts.

10 10 TRIANGLE BUSINESS JOURNAL HOW AIRPORTS ARE GENERATING ECONO CAROLINE BARNHILL North Carolina s airports are a vital part of the state s transportation system connecting its citizens to the global economy while promoting growth and economic prosperity across the state. The 72 publicly owned airports in North Carolina have a combined $31 billion annual economic impact and provide 123,400 airport-related jobs. For the Triad region, the aerospace industry plays a major role in the region s economic development. While its airport, the Piedmont Triad International Airport, is a distant third behind Raleigh-Durham International and Charlotte Douglas International in terms of passengers and flights, the region is the largest aerospace employer in the state due to surrounding aerospace companies. I like to say we are the Sesame Street of North Carolina airports one of these things is not like the other. Our presence in the industry goes beyond our airport, says Kevin Baker, executive director, Piedmont Triad Airport Authority. We are home to more than 40 aerospace companies and agencies, including large employers like Haeco America, HondaJet, Cessna Aircraft Company and more, that employ more than 5,000 workers. And since the aerospace industry has a higher-than-average pay wage, it brings up the overall average income for the Triad, Baker continues. For aerospace jobs in our region, the average income is somewhere between $60,000 to $65,000 a year. Now compare that to the area s average total household income, which is only around $45,000. We have single earners making more than families. The economic impact of the airline industry in North Carolina is significant, and continues to grow. The University of North Carolina at Charlotte recently completed an economic impact study of Charlotte Douglas International Airport as a follow-up to one they conducted a decade ago. In ten year s time, the annual economic contribution of the airport increased 67 percent from $9.7 billion to $16.2 billion. The number of jobs the airport supplies annually also saw a major increase over the past decade from a little over 100,000 jobs a year to 225,000. The presence of Charlotte Douglas International Airport helps generate new jobs in our region, and not just because of the jobs needed to operate the airline, says Brent Cagle, aviation director, Charlotte Douglas International Airport. There are companies that will chose to set up or expand businesses in the Charlotte-Mecklenburg area due to access to an international airport that has 160 nonstop destinations daily. The impact of the airline industry is also significant in the Triangle. RaleighDurham International contributes more than $8.5 billion to the region s economy, while supplying 5,000 aviation-related jobs on the primary campus alone. RDU is an economic engine powering the region by serving travelers, businesses and the community at large, says Kristie VanAuken, vice president of communications and community affairs, Raleigh-Durham International Airport. We give back $144 million annually in public income. And 2016 was our busiest year on the books. Our airlines continue to add flights generating an even greater community benefit. To keep pace with growing demand, RDU recently launched Vision 2040, our 25 year Master Plan. All the revenue we generate is 100 percent reinvested back into our infrastructure. Our focus isn t profits, but connecting our region to the globe. Baker agrees, making the argument that investments in our airports are a good investment for North Carolina. Studies have shown that every dollar invested into our airports is returned 22 to 25-fold, Baker explains. I like to use this example. We have 5,000 people working here through the Piedmont Triad Airport Authority. When you assume an average salary of $60,000 a year, that s $300 million in salaries just for people employed through the PTI that s not factoring in the indirect employees like the ones building hangers or other contract workers. Taking the state s payroll tax from the $300 million in salaries is about $20 million a year just from direct employees. The state invests about $20 million in the airline industry each year. So here we are, the state s third largest airport, and we can fully cover the investment the state makes in the airline industry through our payroll tax alone, he continues. In business, smart companies invest in their profitable divisions. The state of North Carolina is smart to continue investing in our airports. Image courtesy of Honda Aircraft Company

11 PAID ADVERTISING SUPPLEMENT 11 MIC ACTIVITY AND COMMERCE IN NC As a key economic engine in your region, what are your most critical needs and significant issues you face? KEVIN BAKER EXECUTIVE DIRECTOR, PIEDMONT TRIAD AIRPORT AUTHORITY We want to be able to continue to attract large aerospace companies to our region. We ve had huge help from the state and federal government to fund projects. Right now the Department of Transportation is finishing up a bridge that crosses a future interstate that will open up an additional 1,000 acres that we can either parcel out into smaller acre lots, or keep as a few large lots to entice big businesses. But now, ensuring we have a qualified workforce ready for those jobs is a big undertaking. Our local community college, Guilford Technical Community College, does a great job partnering with our local aerospace companies to set up programs that train students in the exact types of jobs they need. For example, Honda goes to GTCC and works with them to create a program that teaches students to build composite wings out of fiber materials. By the time the student goes through the program, they walk across the street to Honda and get a full-time job. In our area, Honda employs around 1,900 with an average salary of $75,000. There are some high-wage professions that come out of trade schools we need to encourage some students to pursue those jobs, as opposed to thinking they need to attend a four-year university. Taking the state s payroll tax from the $300 million in salaries is about $20 million a year just from direct employees. The state invests about $20 million in the airline industry each year. So here we are, the state s third largest airport, and we can fully cover the investment the state makes in the airline industry through our payroll tax alone. In business, smart companies invest in their profitable divisions. The state of North Carolina is smart to continue investing in our airports. Kevin Baker, executive director, Piedmont Triad Airport Authority BRENT CAGLE AVIATION DIRECTOR, CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT Our airport is growing and we are already at maximum capacity. We have a big need to expand our runways and terminals and improve our infrastructure. The good news is we have a $2.1 billion capital program over the next five to ten years that will go towards fixing and expanding our gates, terminals and runways. It will increase our gates by around 30 percent and allow airlines to continue to grow for the next ten to twenty years. The new runway will also give us a the ability to service a non-stop flight to Asia. KRISTIE VANAUKEN VICE PRESIDENT OF COMMUNICATIONS AND COMMUNITY AFFAIRS, RALEIGH- DURHAM INTERNATIONAL AIRPORT Our most pressing need, from an infrastructure standpoint, is the replacement of our primary runway 5L/23R. Our runway is nearing the end of its life and must be replaced. The downside of losing that runway is enormous. It s connects travelers to Paris, London, Seattle and more. We intend to add capacity by replacing 5L/23R 500 feet to the west, which allows us to keep the current runway in service until the new one is built. It will also free up our terminal ramp space, allowing us to build up to 23 more gates as demand warrants. It s not going to be a cheap project the replacement is estimated at $300 million but it is critical. We re currently looking at funding options, because federal funding programs will be insufficient. We are seeking creative funding solutions and a smart path forward. This runway is arguably the two most important miles of pavement in our region because it connects central and eastern North Carolina to the globe. Image courtesy of RDU FedEx Aerial Image courtesy of Piedmont Triad Airport Authority

12 Who is in Charge of North Carolina s Future? Do you believe our state is on the right track? Who has the plan to make North Carolina a world leader in job creation and job retention? A world leader in education? Quality of life? Who has a plan for a strong business climate? Who has a plan for the millions of people projected to move here between now and 2030? Are we creating enough private sector jobs? Are our roads and bridges ready? What about our schools? Do we have enough clean water? Enough energy capacity? What are we going to do about it? What are you going to do about it? North Carolina s business community has a plan. North Carolina Vision 2030 is a plan for North Carolina to work together to secure our state s future. Learn more at ncchamber.net/foundation.