SECOND QUARTER HIGHLIGHTS SECOND QUARTER 2018 CHARLOTTE-MECKLENBURG GROWTH REPORT Manufacturing, Professional Services Investments Lead Strong Second Quarter CLT ranked No. 2 Best Airport for Business Travelers (Source: TravelBank) Mecklenburg County businesses announced the addition of more than 3,000 jobs in the second quarter of 2018, announcing more than $325 million in capital investments. Water systems technology company, Xylem, announced it would add 119 workers in Charlotte as part of a joint expansion in Charlotte and Raleigh-Durham. Kurz Transfer Products announced the construction of an $18 million manufacturing facility in Huntersville, adding 90 jobs. Yokohama Tire also announced a research and development facility in Cornelius, which will include 56 jobs. The City of Charlotte added more than 15,000 people in 2017, becoming the third fastest-growing big city in the country. (Source: U.S. Census Bureau and Charlotte Chamber Research) Charlotte ranked No. 3 Sunbelt City Where Renters Are Planning to Settle Down (Source: ApartmentList.com) Professional services and technology companies also showed strong growth with online mapping firm ESRI announcing 40 new jobs and a second Charlotte location. SentryOne continued work on its new headquarters in lower SouthEnd, adding 15 jobs. Overall economic indicators showed continued growth for the Charlotte area. Unemployment in the Charlotte MSA fell to 3.4 percent in May 2018, lower than the national average. Home sales across the board were strong with price growth the strongest in the suburbs. Mecklenburg County home prices rose by 6 percent year-over-year while prices in the rest of the metropolitan area increased by 12 percent. The supercharged economy began to affect inflation rates this year, with prices in the Southeast up 2 percent through the first half of the year compared to 1.3 percent in the first half of 2017. NOTE: The Charlotte Chamber's Growth Report tracks announced openings, hiring, investments and expansions of private-sector businesses in Mecklenburg County. The report does not track closings or layoffs. The New & Expanded Report should be considered a general snapshot of Charlotte business activity and not a comprehensive or scientific representation of the Charlotte economy. Charlotte ranked No. 5 Best Metro for Jobs by Forbes. (Source: Forbes Magazine) 2 CHARLOTTECHAMBER.COM
THE GROWTH REPORT BREAKDOWN BY INDUSTRY - SECOND QUARTER 2018 NAICS INDUSTRY FIRMS JOBS SQUARE FEET $ INVESTMENT* 22 Utilities 1 0 0 $400,000 23 Construction 20 106 539,698 $6,495,776 31-33 Manufacturing 24 332 172,434 $44,469,338 42 Wholesale Trade 7 74 80,000 $685,900 44-45 Retail Trade 42 580 198,643 $21,814,088 48-49 Transportation and Warehousing 9 34 324,590 $3,740,720 51 Information 5 77 14,000 $6,606,450 52 Finance and Insurance 22 65 36,736 $8,276,417 53 Real Estate Rental and Leasing 17 13 81,970 $8,524,376 54 Professional, Scientific and Technical 73 358 90,687 $9,937,454 Services 56 Administrative and Support and Waste 4 8 0 $111,346 Management and Remediation Services 61 Educational Services 10 16 78,867 $26,539,048 62 Health Care and Social Assistance 22 418 511,924 $75,078,452 71 Arts, Entertainment, and Recreation 6 14 26,000 $449,000 72 Accommodation and Food Services 78 920 328,012 $100,935,306 81 Other Services (except Public 25 55 25,018 $6,506,196 Administration) 92 Public Administration 14 18 6,818 $2,806,500 99* Development 13 0 2,901 $2,494,480 Total 392 3,088 2,518,298 $325,870,847 * Investment numbers indicate building, machines and equipment. 99 is not an official NAICS code but represents improvements to speculative commercial real estate NOTE: Employment figures are incremental. Square footage does not necessarily reflect movement from one Charlotte location to another. Figures reflect announcements and specifications during indicated period, but actual construction and hiring may occur in subsequent periods. NAICS stands for North American Industry Classification System and can be understood in more depth at census.gov/naics. Source: Newspaper ads, press releases, building permits, chamber membership and chamber prospects. CHARLOTTECHAMBER.COM 3
THE GROWTH REPORT SECOND QUARTER 2018 MECKLENBURG COUNTY 392 FIRMS 4 CHARLOTTECHAMBER.COM
SECOND QUARTER 2018 GROWTH PREVIOUS YEAR COMPARISON NEW EXPANDED TOTAL Category Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 NUMBER OF FIRMS Manufacturing 3 5 21 14 24 19 Non-Manufacturing 87 63 281 168 368 231 Total 90 68 302 182 392 250 EMPLOYMENT Manufacturing 15 23 317 86 332 109 Non-Manufacturing 527 138 2,229 1,910 2,756 2,048 Total 542 161 2,546 1,996 3,088 2,157 SQUARE FOOTAGE (THOUSANDS) Manufacturing 30.5 17.4 136.2 55.3 167.2 72.7 Non-Manufacturing 230.8 48.0 2,116.8 2,504.0 2,347.6 2,552.0 Total 261.8 65.4 2,259.1 2,559.3 2,520.9 2,624.7 INVESTMENT (MILLIONS)* Manufacturing $0.3 $2.2 $44.2 $11.7 $44.5 $13.9 Non-Manufacturing $13.4 $106.0 $268.4 $201.0 $281.8 $307.0 Total $13.7 $108.2 $312.6 $212.7 $325.9 $320.9 NOTE: Employment figures are incremental. Square footage does not reflect increments where firms vacate one Charlotte location for another. Totals may not sum due to rounding. Source: Newspaper ads, press releases, building permits, chamber membership and chamber prospects. * Indicates building, inventories, machines and equipment ANNUAL COMPARISON OF FIRST HALF GROWTH, 2013-2018 YEAR FIRMS JOBS SQUARE FEET (MILLIONS) INVESTMENT (MILLIONS) 2018 619 6,321 3.6 $400 2017 578 6,715 3.9 $590 2016 567 4,941 5.5 $530 2015 515 3,342 2.2 $416 2014 740 5,469 2.4 $362 2013 640 6,999 3.0 $370 CHARLOTTECHAMBER.COM 5
REAL ESTATE - BUILDING CHARLOTTE S ECONOMY The Real Estate industry powers Charlotte s economic growth. While accounting for less than 2 percent of the Charlotte region s employment, the real estate sector contributes to more than 13 percent of the region s total economy. That s more than $20 billion in economic activity directly tied to the industry. $20.3 BILLION direct contribution to Charlotte s Gross Regional Product from the real estate and rental leasing industry. Sources: Bureau of Economic Analysis, JobsEQ 16,500 JOBS in the Real Estate Industry. Source: NC Department of Commerce 3.3 MILLION square feet of office space under construction. Source: Co-Star 18,300 homes sold so far in 2018. Source: Charlotte Regional Realtor Association REAL ESTATE INDUSTRY EMPLYMENT GROWTH IN CHARLOTTE SINCE 2000 Source: N.C. Department of Commerce Area developers have added a net total of 6 million square feet of office inventory since 2014. Nearly 115 million square feet of office space exist in the market today with more than 3 million under construction. Co-Star projects an additional 7 million square feet of office space to be built by 2022. OFFICE SQUARE FOOTAGE UNDER CONSTRUCTION, CHARLOTTE MARKET INDUSTRIAL SQUARE FOOTAGE UNDER CONSTRUCTION, CHARLOTTE REGION Source: Co-Star Source: Co-Star 6 CHARLOTTECHAMBER.COM
RESIDENTIAL GROWTH On the residential side of the industry, the housing market remains tight with continued growing sales and record low inventory. The average home price for the region has risen from around $212,000 in 2013 to $283,000 in May 2018, the most recent estimates available from the Charlotte Regional Realtor Association. HOMES SOLD THROUGH MAY IN THE CHARLOTTE MARKET Source: Charlotte Regional Realtor Association POPULATION PROJECTIONS THROUGH 2037 The Charlotte MSA will reach 3.5 million people Mecklenburg County will reach 1.5 million people The City of Charlotte will be near 1.2 million people CHARLOTTECHAMBER.COM 7
Charlotte is one of the fastest-growing cities in the nation. With our great location, world-acclaimed international hub airport, professional sports, low energy costs, diverse and talented labor, innovative and growing health care and life sciences sectors and a nationally ranked education system, it s easy to see why more businesses are flocking here every year. VISIT CHARLOTTECHAMBER.COM TO LEARN MORE. 330 SOUTH TRYON STREET, CHARLOTTE, NC 28202 704.378.1300 PHOTO BY DAVID JAFFE