1. 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.

2. U.S. Outlook

7. Consumer Fundamentals: Income Sentiment Credit Outlook – Better

9. Investment Spending: Orders Capacity Utilization Financial Depth Outlook - Improving

11. Housing: Household Income Employment Credit Outlook - Positive

14. Inflation: Commodity Prices Dollar Energy Productivity Outlook - Creeping Up

16. Public Policy: Monetary Policy Fiscal Policy Regulation Trade

19. Change in the Charlotte Labor Market

21. Population Growth 10-Year Average

22. Comparative Employment Percent of Total Employment, 2003 U.S.North CarolinaCharlotte Construction5.25.66.1 Manufacturing11.215.912.9 Trade15.815.716.5 Finance6.15.18.4 Leisure9.38.88.6 Government16.617.012.7 Education & Health12.811.38.3 Prof. & Business Services 12.311.114.4

24. Charlotte Employment Percent of Total Employment, 1983

25. Charlotte Employment Percent of Total Employment, 2003

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

27. Secular Changes In the Charlotte Labor Market

29. 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?

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

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

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

33. www.wachovia.com/economics