Charlotte Regional Partnership – Monday Memo, 01/31/2012

There could be no better endorsement of the Charlotte region’s workforce development programs, the strength of our manufacturing workforce and our growth as a New Energy Capital than a shout out by the president of the United States in his State of the Union address.

That’s what President Barack Obama did last week when he held up the collaboration among Central Piedmont Community College, Siemen’s new gas turbine plant in Charlotte, and Siemens Energy process operator Jackie Bray as a model that “maximizes workforce development strategies, job training programs and job placements.”

Jackie and Lincolnton Furniture President Bruce Cochran attended the nationally televised speech as guests of Michelle Obama. Jackie even had a prime seat – right next to the First Lady.

Through the Siemens/Central Piedmont partnership, Jackie received laser training, robotics training, penetrant inspection training, product orientation – and a job. Last week, Siemens and CPCC were honored for this cooperation as two of 10 recipients of the Charlotte Business Journal’s Energy Leadership Awards.

Each of the 10 Energy Leaders were selected based on their influence in building the region into a national or international player in the industry, as well as his or her impact on local, state or national energy policy. Business Journal editor and emcee for the event Robert Morris and I both were struck by the same thing. Energy leaders in our region come from diverse sectors of the industry.

That’s also the preliminary conclusion of researchers with McKinsey & Company. The global management consulting businesses is conducting a regional energy-sector study that will be released in late spring to identify promising focus areas, as well as the capabilities and infrastructure needed for Charlotte USA to cement its position as a New Energy Capital.

Whereas other cities have depth in one aspect of energy, the Charlotte region is diversified. Additionally, the region has competitive labor and energy costs, a strong advanced manufacturing base and most importantly, the connectivity and collaboration necessary to leverage our advantages.

We have come as far as we have because competitors and colleagues work together for the common good. Shaw’s Clarence Ray expressed it well in his award acceptance speech: “Charlotte is emerging as an energy hub and together, we are working hard to build the energy infrastructure that the U.S. needs.”

Author:  Mark Bartikoski, RE/MAX International
January 31, 2012

New Home Sales slowed into the New Year but the market for newly-built homes remains strong. For home buyers in Minnesota and nationwide, December’s New Home Sales report is yet one more signal that the housing market recovery may be underway.

According to the Census Bureau, the number of new homes sold in December 2011 slipped 2 percent to 307,000 units on a seasonally-adjusted, annualized basis nationwide.

A “new home” is a home that is considered new construction; a home for which the buyer will be the first owner and tenant.

As compared to December 2010, last months’ sales volume fell seven percent. It’s a statistic that suggests housing market weakness. However, in looking at a different component of the New Home Sales report — the supply of homes for sale — we’re forced to reconsider.

At the current pace of sales, every new home for sale nationwide would be “sold” in a matter of 6.1 months.

Economists believe that a 6.0-month supply defines a market in balance — anything quicker is termed a “seller’s market”. Statistics like that are enough to create urgency among today’s Minneapolis home buyers.

Unfortunately, the Census Bureau’s data may be wrong.

Although December’s New Home Sales report shows sales down 2 percent, the government’s data was published with a ±13.2% margin of error. This means that the actual New Home Sales figure may have been as low as -15.2 percent, or as high as +11.2 percent. And, because the range of possible values includes both positive and negative numbers, the Census Bureau had no choice but to assign its December data “Zero Confidence”.

It will be a few months before final revisions are made to December New Home Sales data. Until then, therefore, buyers should take cues from the market-at-large and the market-at-large hints at recovery. One example of this is homebuilders showing more confidence in their product than at any time in the last 5 years.

If your plans for 2012 call for buying new construction, therefore, consider using this lull to “make a deal”. As the year progresses, the great values in housing may be gone.

NEW YORK (MainStreet, 01/18/12) 

 This week brings a flood of new data on the U.S. housing market, and by and large, the bulk of it is positive.

CoreLogic’s January 2012 MarketPulse report, released on Jan. 18, says the U.S. housing market could finally be turning a corner in 2012.

“While 2011 was clearly a challenging year, there is a lot to be positive about looking ahead to 2012,” said Fleming. “The time is right in 2012 for prices to begin growing again, and housing affordability will put a floor under any further significant declines.”

Fleming points to stronger consumer sentiment as a big factor for his optimism – the housing market just can’t grow unless the American taxpayer believes the U.S. economy is back on track, and that seems to be happening.

One example of that is home equity lines of credit, which CoreLogic reports are on the uptick for the first time in five years. Another reason is the “over-supply” of U.S. homes on the market, a trend that seems to be receding in recent months, according to the report.

Those trends, plus continuing low mortgage rates and higher home affordability, are finally fueling a housing rebound, and one that should pick up steam in 2012.

The Charlotte Observer, Jan. 18, 2012

The Charlotte region is adding jobs faster than a number of beleaguered metropolitan areas, from Hickory to Wilmington to Reno, Nev., a report released Wednesday morning found. Employment in the Charlotte region is expected to grow 2 percent this year, faster than the national average. But the region will have yet to recover more than 60 percent of the jobs it lost during the recession by the end of 2012.

Yet a full recovery remains a long way off: By the end of 2012, the area is expected to have recovered just 39 percent of the jobs it lost during the recession. And Charlotte won’t likely return to its pre-recession employment peak until 2014 or 2015, according to the report from the IHS Global Insight research firm, prepared for the U.S. Conference of Mayors.

The report on metro areas’ economies comes as about 300 mayors from around the country, including Charlotte’s Anthony Foxx, gathered in Washington, D.C., for their annual winter meeting, focusing on job creation. The group called on federal officials to help those still looking for work in a slow and uneven economic recovery.

“No one has been hit harder by the Great Recession than the 8.8 million Americans who have lost their jobs during the most significant economic downturn in generations,” Los Angeles Mayor Antonio Villaraigosa, U.S. Conference of Mayors president, said in the report. “Our nation’s mayors are focused on doing everything we can to help the jobless, the underemployed and those worried about losing their jobs.”

IHS Global Insight’s analysis of 363 metro areas found the U.S. added more than 1.6 million jobs in 2011, growing 1.3 percent over 2010 after three straight years of net job losses. This year, the firm expects employment to grow 1.3 percent again, with the country recovering 48 percent of the jobs lost during the recession.

Job growth has varied widely among U.S. metro areas. Employment grew by more than 6 percent in Victoria, Texas, for instance, while jobs fell nearly 5 percent in Dalton, Ga., last year, the report found.

More than two-thirds of the nation’s metro areas saw employment grow more slowly than the national average in 2011, and 125 metros, or 34 percent, did not experience any net job growth last year. Just 26 metro areas have completely recovered the jobs they lost in the recession, IHS Global Insight found.

But 2012 appears brighter: All but three of the nation’s metro areas are expected to see job growth. By the end of the year, 52 regions will have completely recovered the jobs they lost, and 99 more will have recouped more than half of their losses, the report predicts.

IHS Global Insight found that the Charlotte metro area will likely return to peak pre-recession employment by 2014 or 2015 – well before many other metro areas, where jobs will remain below their pre-recession levels for five or more years.

Job growth across the country this year will come primarily from the education and health care, trade and transportation and professional and business services sectors, which will offset continued weakness in government and construction, the report found.

Overall, IHS Global Insight’s analysis offers cautious optimism for the year ahead, predicting economic growth as well as continued trouble from the sluggish housing market, European crisis, falling personal income and a lack of confidence in government leaders.

As the mayors presented the report Wednesday, they called on federal officials to address the problems in the housing market, poverty and other issues that might play a role in the country’s economic recovery – including their own leadership.

“When Congress fails to reach necessary agreements on long-term debt reduction, short-term tax cuts and infrastructure spending, the public grows cynical and disillusioned,” Villaraigosa said. “This is not good for our economy, our cities or our local businesses.”

Read more here: http://www.charlotteobserver.com/2012/01/18/2936823/report-charlotte-area-to-add-jobs.html#storylink=cpy

WSOC-TV, Charlotte, NC – January 11, 2011

Convergys Corporation a global leader in relationship management is seeking candidates for 140 new full-time positions at its contact center in Hickory, North Carolina.

Interested candidates from throughout the Catawba County area are invited to attend an on-site Job Fair from 10 a.m. to 2 p.m. on Wednesday, January 11 at Convergys, 1507 7th Street, SE. New employees will provide inbound customer service and sales support for a Convergys client in the telecommunications industry.

Interested candidates may also apply online at www.convergys.com/careers or http://www.convergys.com/careers.

http://convergys.com/vision/index.php

“The growth of a current client program has enabled us to provide new employment opportunities for job seekers in the Catawba County area,” said Billie Coon, site leader for the Convergys contact center in Hickory. “In addition to solid customer service experience, we’re looking for candidates with a strong sales background who can help callers choose the best service plan for their needs.”

“Customer service continues to be a top priority for many companies,” Coon added. “These positions may provide the first step toward a career in the industry, in areas as diverse as recruitment, operations, or training.”

Convergys offers employees comprehensive paid training, competitive wages plus performance incentives, and benefits including medical and dental insurance, tuition reimbursement, 401(k), and paid and unpaid time off.

As part of the Hickory business community since 2008, Convergys encourages its employees to support the local community in which they live and work. Employees in Hickory recently shared a meal with those in need at a local soup kitchen. They also collected hats, scarves, gloves and coats for the Grace House homeless shelter, donated food for Human Society, and raised money throughout the year for United Way.

Potential candidates should possess extensive customer service and sales experience, strong computer/keyboarding skills, and the ability to work a flexible schedule, including weekends and holidays. Employment with Convergys also is contingent on the successful completion of a background check.

At Convergys, we believe in investing in the development of our people. Rather than have one set path, we have a variety of career tracks for employees to explore. Having a talented, motivated workforce maximizes our productivity and enhances the quality of service we offer all of our clients and their customers. This is another way we ensure our spot as a global leader in relationship management. We can relate.

About Convergys

Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.

For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to marquee clients all over the world.

Charlotte Business Journal –  January 6, 2012

Long-term mortgage rates fell this week, with the average rate on a 30-year fixed-rate loan matching an all-time low.

Freddie Mac says 30-year fix-rate mortgages averaged 3.91 percent in the week ending Jan. 5, down from 3.95 percent the previous week and hitting the lowest mark since it has been keeping track.

Fifteen-year fixed-rate mortgages averaged 3.23 percent, dipping from 3.24 percent the previous week.

One-year adjustable-rate mortgages averaged 2.80 percent this week, up from 2.78 percent last week.

Recent reports on housing have been encouraging.

The National Association of Realtors says pending sales of existing homes in November rose 7.3 percent to the strongest pace since April 2010. Construction spending rose 1.2 percent in November, with construction spending on residential projects up for the fourth consecutive month.

As previously reported, sales of existing homes in the Charlotte area rose 13 percent in November from the same period a year ago. Local buyers purchased 1,686 homes last month, up from 1,487 in November 2010, according to the North Carolina Association of Realtors.

WSOC-TV, Charlotte, NC - January 5, 2012

New numbers out Wednesday show orders at U.S. factories were up 1.8 percent in November after a two-month slide.

The Saertex plant in Huntersville, NC which spins fiberglass into composites used in wind energy, car and bus bodies and airplane wings, is a company with 175 workers that’s finding a way to grow even in this tough economy.

“If you see the numbers from 2010 to 2011, we are growing more than 25 percent,” said Stefan Maier, the Saertex general manager. “We added 45 employees in 2011.”  Saertex said it hopes to keep hiring more workers this year.

In fact, while uptown’s banks are shedding jobs, manufacturing companies have added more than 4,000 jobs in the past three years.

“It’s much bigger than most people realize,” said Tony Crumbley with the Charlotte Chamber of Commerce.

Crumbley said manufacturing jobs rival banking now, with 30,000 workers now spread across 1,100 local companies.

“The economic impact on this community is phenomenal,” Crumbley said. “You’re talking $37 billion a year in product produced here.”

Groninger and Co. makes machines that fill jars, vials and syringes for pharmaceutical and cosmetic companies. The jobs require higher skill but also offer higher pay that Lothar Burger said is helping manufacturers attract talent.

“Everybody thinks about banks and insurance, but there’s a good manufacturing area and I think these days, in manufacturing you can make a career,” Burger said.

Groninger is doing so well that it’s building a new plant it hopes to move into this spring.

Charlotte Business Journal, January 3, 2012

A company that already has a presence in Cleveland County is bringing 166 additional jobs to Shelby. 

Baldor Electric Co. is buying an existing 270,000-square-foot building on U.S. Highway 74 to boost the company’s local production of electric motors that are used in wind-power applications.

Baldor is investing $17 million in the operation.

Cleveland County Manager David Dear expects the plant’s work force will grow to 230 in the first few years of the operation. Others, including County Commissioner Eddie Holbrook, expect that number to grow to 300 within five years.

Baldor already operates a facility in Kings Mountain that employs 530. That facility also makes electric motors.

N.C. Lt. Gov. Walter Dalton, Commerce Secretary Keith Crisco were in Shelby on Tuesday to announce the new jobs.

Jerry Kellar of Benmar Properties in Gastonia, who bought the building as an investment in 2007, sold the facility to Baldor. The price wasn’t immediately disclosed. John Barker Sr. of John Barker Realty Inc. of Shelby brokered the deal.

Baldor is a unit of ABB Group, a $35 billion corporation based in Zurich, Switzerland.

The company is set to receive several incentives related to the Shelby project, including $400,000 from the One North Carolina Fund and $780,000 from the Rural North Carolina Center.

Cleveland County also has agreed to roll back the property taxes on the site by 65 percent for 10 years, based on the $17 million investment.