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.

Charlotte Business Journal, 12/29/2011

Sales of existing homes in the Charlotte area rose 13 percent in November compared with that month a year ago, continuing a trend of increases since the summer when compared to 2010.

According to the North Carolina Association of Realtors, Charlotte buyers purchased 1,686 homes last month, up from 1,487 in November 2010.

The average sale price for a home sold in Charlotte last month was $192,472, an 11 percent decline from $215,239 during that month a year ago.

The number of home sales fell 10 percent from October to November.

Existing home sales statewide were up 8 percent statewide for November when compared with the previous year, while the average price declined 8 percent

Charlotte Chamber of Commerce, December 28, 2011

North Carolina Governor Beverly Perdue announced today that Infinisource Holdings, Inc. will move their corporate headquarters from Coldwater, Michigan and start a new division in Charlotte.

The company currently has offices in Ohio, Florida and a regional headquarters in Michigan. Infinisource Holdings, a benefits administration company, will create 162 jobs with an average wage of more than $80,000 annually and plans to invest $500,000 in its new Charlotte facility over the next five years. The company is currently in lease negotiations for Charlotte office space.

“What better way to wrap up 2011 and ring in the New Year than with yet another corporate headquarters relocation for Charlotte,” said Bob Morgan, Charlotte Chamber President. “These high paying jobs will further enhance our thriving health care sector.”

Infinisource, a recent acquisition of Accel-KKR, provides administration for COBRA, Flexible Spending Accounts, Premium Only Plans, Health Reimbursement Arrangements, Health Spending Accounts, Direct Billing, Wellness Programs, Payroll and an on-line eligibility and enrollment solution. The company also offers educational seminars and webinars as well as a HIPAA privacy and security solutions. Infinisource focuses on benefits solutions for its more than 17,700 small- and mid-size employer clients by offering a complete suite of products and services.

“Charlotte offers a best-in-class blend of resources, talent and accessibility, all of which are critical as we look to quickly grow our operations,” says Infinisource CEO Gary Trainor, former division president at both ADP and First Data.

In addition to the corporate relocation, Infinisource will launch a new division dedicated to SaaS-based Human Capital Management technology, which will help employers manage their payroll, HR, benefits administration, talent management, time and attendance, and compliance from a single cloud-deployed platform.

Chris Schaaf and Jim Thorp from Jones Lang LaSalle are representing Infinisource in lease negotiations.

The Charlotte Chamber would like to thank Governor Beverly Perdue, N.C. Department of Commerce, and NC Community Colleges for their assistance and support to this important project.

Information on job opportunities at Infinisource Holdings can be found at: www.infinisource.net.

Charlotte Business Journal, December 12, 2011

Washington sent Charlotte Area Transit System two pieces of good news Monday, starting with an $18 million federal grant will be used to lengthen station platforms and add power capacity for three-car trains along the 10-mile route between Pineville and uptown.

The office of U.S. Sen. Kay Hagan (D-N.C.) announced the transportation department grant. CATS should receive the money in the next month or two, Hagan spokeswoman Sadie Weiner says. The money will be used to lengthen station platforms and add power capacity for three-car trains along the 10-mile route between Pineville and uptown.

CATS spokesman Olaf Kinard says the agency hopes to complete work on the platforms and power substations by 2015, two years before the planned opening of the $1.1 billion, 9.4-mile light-rail extension to UNC Charlotte. That section of the line is already being designed with capacity for three-car trains.

Currently, the Lynx line lacks the capacity for three-car trains. The expanded capacity will initially be used for special events, when ridership is especially heavy, CATS says. When the expansion to UNCC is completed, three-car trains are expected to run all along the corridor.

The transit agency will match the federal grant with an investment of $4 million. CATS won’t have to buy additional train cars to support the first expansion, Kinard says.

“Charlotte and North Carolina continue to lead the way in the future of transportation,” Hagan said in prepared remarks. “This project will provide a valuable boost to Charlotte’s infrastructure, helping to alleviate transportation concerns during special events and peak commuting hours. It will also drive economic development in the region. Investments in infrastructure are directly linked to job creation, which continues to be my number one priority.”

The $463 million Lynx line opened in 2007.

In addition to the grant, the Federal Transit Administration pushed the UNCC light-rail project, known as the Blue Line Extension, farther down the track by granting approval to begin the final phase of design. That milestone puts CATS in position to start right-of-way acquisition, begin final construction planning, complete cost estimates and secure a commitment from the federal government to pay half of the estimated $1.1 billion price tag. Each of those steps required the so-called record of decision, which the FTA issued Monday.

“It moves us another step forward,” Kinard says

Charlotte Business Journal, December 6, 2011

North Carolina’s economy will grow 1.7 percent in 2012 from a gain of 1.3 percent this year, according   to UNC Charlotte.

Eleven of the state’s 15 economic sectors are set for growth next year, he says. The sectors with the strongest prospects are business and professional services, with a projected real increase of 5.4 percent; finance, insurance and real estate, up 3.8 percent; wholesale trade, up 2.6 percent; information, with a 2.1 percent gain; and transportation, warehousing and utilities, up 2.1 percent.

Connaughton expects the state to gain 38,000 net jobs in 2012, up from a projected gain of 22,500 in 2011. The sectors likely to gain the most jobs are hospitality and leisure services, government and education and health services.

“By the end of 2012, North Carolina is expected to have replaced only 60,500 of the 323,000 jobs lost during the recession,” Connaughton says. “At this pace, it will take another decade to gain back all the jobs lost during 2008 and 2009. At the national level, jobs are the story, yet in North Carolina, our anemic job growth seems to be invisible — despite the fact that the state is in worse shape than the U.S.”

Home been on the market too long? This could be a great time to lower the price or change your strategy.

If your property has been sitting on the market for months, most buyers and their agents will see it as stale or overpriced and disregard it — no matter how great it is or how light the competition currently is.

In that scenario, it’s time to take action, and the year-end holidays can be a golden opportunity to shift course. Making a dramatic price reduction or overcoming some major obstacle that has been preventing the sale might be just the right thing to do this time of year. If you had lower offers early on but you weren’t ready to accept them, or you keep hearing that there are issues with the way your property shows, this could be your chance to show the market you’re listening and serious about selling. The motivated buyers will notice you and take a look.

Don’t want to be bothered during the holidays? List your property in January.

Admittedly, the thought of keeping the house clean, holding open houses, and vacating to accommodate last-minute showings during the holidays is a deal killer for some. If so, consider listing your property after New Year’s Day.

Traditionally, we don’t see much inventory coming on the market in January. It’s cold in most places, and many sellers prefer to wait until the spring, a more conventional time to sell. As a result, we don’t see much inventory in January. And yet, each January my phone rings with new buyers wanting to get into the market. Or I’ll hear from on-the-fence buyers who may have lost interest earlier in the year and are now suddenly motivated again.

There’s something about the beginning of a new year that galvanizes people. The motivation to buy could be due to year-end tax planning, with buyers seeing how much they owe and how owning a home could help. It could be because of New Year’s resolutions to finally stop spending money on rentals and invest in property. Maybe a rich relative gave them money for a down payment (wouldn’t that be nice?).

Whatever the motivation, for sellers it means one thing: There can be an increase in demand at a time when inventory is traditionally low — resulting in less competition from other sellers. If you’re motivated to sell your home, you’ll have an even more “captive” audience in January.

Charlotte Chamber Economic Development Announcement, 12/01/11

North Carolina Governor Beverly Perdue announced today that Karl Marbach GmbH & Co. KG, the world’s leading manufacturer of steel rule dies for the packaging industry, will establish its first U.S. manufacturing facility in Charlotte.

Duramar Cutting Die Marbach will create 30 new jobs and invest $3 million in its new U.S. operation. The company is in the final stages of negotiating a leased space in southwest Charlotte and expects to be fully operational by the end of the second quarter 2012. Charlotte will serve as Marbach’s headquarters for the Americas. The new plant will manufacture cutting, embossing and foil stamping dies and other tooling for manufacturers of folding cartons and corrugated packaging.

“Charlotte’s business infrastructure, labor supply and quality of life made the difference for us,” says Bernd Klenk, Managing Director of Karl Marbach GmbH & Co. KG. “The city’s international airport, interstate highways and availability of industrial buildings were key factors in our location decision. Charlotte’s labor costs are competitive, and we know our German managers will feel at home there.”

Founded in 1923, the Marbach Group is based in Heilbronn, Germany and employs over 1,100 worldwide.

Charlotte Business Journal, November 29, 2011

The company is moving from Cincinnati, bringing about 400 jobs, sources tell the Charlotte Business Journal.

The company has been looking for about 150,000 square feet of office space and is expected to make the 19-story NASCAR Plaza office tower uptown its headquarters building, according to real estate sources. They say the 19-story property at South Caldwell and East Stonewall streets could be rebranded as part of the lease agreement.

Chiquita has been considering a 416-job operation in Charlotte, which would include 90 existing employees who would move from Cincinnati. The average salary is estimated at $106,000, sources say.

Economic-development officials in Charlotte have been working on “Project Opus” for months. When an incentive package came before Charlotte City Council members earlier this year, it included a request for money upfront — and on top of the proposed business investment grants.

The package of city, county and state incentives being offered Chiquita will total at least $6 million, according to sources who have seen the overall proposal. However, the state contribution could push that number higher, sources say.

The bulk of the subsidy for Chiquita will come from a business-investment grant program that rebates 50% to 90% of the property taxes generated after the company relocates.

The Wall Street Journal, November 26, 2011

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.

In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840, according to the Marcus & Millichap data.

But real estate agents and economists say the trend hasn’t boosted demand. That is because affordability alone hasn’t been enough to overcome the obstacles in the way of a housing recovery. Some homeowners who would like to move up to larger properties are stuck because they can’t sell their homes.

Also, while the monthly carrying costs on a mortgage are lower than average rents in some cities, home ownership carries other costs—including taxes, insurance, homeowner association dues and maintenance—which may dissuade some potential owners.

Other would-be buyers can’t qualify for mortgages because lending conditions are tight or because they don’t have enough equity in their current homes to use as a down payments. “The reality of coming up with the down payment and the loan-qualification standards makes things much different than the raw numbers suggest,” says Hessam Nadji, managing director of Marcus & Millichap. And even those who may qualify remain skittish about buying property in a market where prices could fall amid foreclosures and weak job growth.

Ryan Young illustrates the point. He is under contract to buy a three-bedroom home in Washington Grove, Md., that will have monthly mortgage, tax, and insurance costs for around $150 less than the $1,900 he is paying to rent a slightly smaller house in Bethesda, Md. He qualified for a 30-year mortgage with a 3.95% fixed rate. Still, Mr. Young says he is cautious about owning his first home with the prospect of future price declines. “Buying a house is not a good financial decision, per se, but we needed a bigger place,” said the 35-year-old scientist, “and we don’t want to move every couple of years into a new rental.”

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year, says Mr. Nadji. He says rents are poised “to pick up even more momentum across the country next year.”

Even cities where it is still cheaper to rent than own have seen big boosts in affordability. In San Diego, the monthly cost of owning a home has averaged around 83% more than renting over the past two decades. During the third quarter, owning was 22% more expensive than renting, according to John Burns Real Estate Consulting.

The inventory of homes on the market has fallen from levels seen a year ago, as prices and mortgage rates continued to decline.

Mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power, says Dan Green, a loan officer with Waterstone Mortgage, in Cincinnati. At the same time, low mortgage rates aren’t spurring sales because few analysts expect rates to rise anytime soon. The Federal Reserve in August said it would keep rates at ultralow levels for two years. In a normal interest rate cycle, “when they go low, they don’t stay for very long, and people jump in,” said Mr. Dales. “This time, there is no urgency.”

Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools. Banks are often much quicker to cut prices to unload properties quickly, which means that the greater the share of “distressed” sales, the more prices tend to fall.

One hopeful sign is that inventories have fallen from their bloated levels of one year ago. All 28 cities in The Wall Street Journal’s latest survey saw homes listed for sale fall from one year ago, when markets were reeling with a substantial overhang of properties amid a big drop in demand. Visible inventory was down sharply in several markets, including by almost half in Miami and 40% in Phoenix.

Low inventories have spurred more bidding wars at the low end of the market as investors compete for homes that they can convert into rentals. In Sacramento, it would take just 2.5 months to sell the listed inventory at the current sales pace. Las Vegas has a 4.3 month supply of inventory, according to John Burns Real Estate Consulting. But the potential supply of homes is much bigger because banks have yet to process hundreds of thousands of potential foreclosures.