John Silvia – Chief Economist September 21, 2004 Presentation to: Global Issues Forum Employment Growth, Offshore Outsourcing and Secular Change in the.

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Presentation transcript:

John Silvia – Chief Economist September 21, 2004 Presentation to: Global Issues Forum Employment Growth, Offshore Outsourcing and Secular Change in the Charlotte Labor Market. Our Challenge is Our Opportunity.

U.S. Outlook

Consumer Fundamentals: Income Sentiment Credit Outlook – Better

Investment Spending: Orders Capacity Utilization Financial Depth Outlook - Improving

Housing: Household Income Employment Credit Outlook - Positive

Inflation: Commodity Prices Dollar Energy Productivity Outlook - Creeping Up

Public Policy: Monetary Policy Fiscal Policy Regulation Trade

Change in the Charlotte Labor Market

Population Growth 10-Year Average

Comparative Employment Percent of Total Employment, 2003 U.S.North CarolinaCharlotte Construction Manufacturing Trade Finance Leisure Government Education & Health Prof. & Business Services

Charlotte Employment Percent of Total Employment, 1983

Charlotte Employment Percent of Total Employment, 2003

(+) Major Financial Center Growing headquarters center. Above average industrial diversity. Well-educated workforce. Charlotte

Secular Changes In the Charlotte Labor Market

OUTSOURCING Macro Story Global Allocation of Resources Net vs. Gross Job Gains/Losses Efficiency Profits, Disposable Income Prices Goods, Services Shareholder Value Objectives of Management?

OUTSOURCING Micro Story Workers, Supplies Job Creation/Destruction Industries Manufacturing, 1979 Communities Trade Adjustment

OUTSOURCING Cost of Inflexibility Work Follows Sales Emigration Long Term Change Education Productivity Dominate Job Creation Trends

Charlotte (-) Declining Textiles Airlines Professional Schools/Tech High Taxes Unfinished Highway