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Master Plan Overview

The following information is from the Executive Summary of the Henderson County Economic Development Master Plan conducted by Lockwood Greene Consulting.

Introduction

After a competitive bidding process, the Henderson County Partnership for Economic Development selected Lockwood Greene to complete the Henderson County Comprehensive Economic Development Master Plan. Two basic components of the plan are the labor study and the target industry analysis and they are both summarized below. This document contains a portion of the summary's key findings, results and recommendations from the entire project.

Labor Study

The purpose of the labor study is to include an analysis of (1) the existing labor force in Henderson County, (2) the underemployed workforce in Henderson County, and (3) the total workforce that is potentially available to employers in Henderson County. (See the following definitions of underemployment, the job-seeking unemployed, and the potentially available workforce.) A table illustrating all calculations is in this Labor Study section of the Executive Summary and is referenced throughout this narrative. This information was obtained through a two-pronged approach.

Employer and stakeholder interviews - Lockwood Greene conducted confidential interviews with key organizations and companies in the area. Relevant leaders in organizations concerned with workforce development, employment training and services, vocational technical centers, and labor/workforce councils were identified by the Committee of 100 and interviewed. Additionally, the human resource personnel of the major employers in the area were included in the interviews. Our initial understanding of the labor force, obtained through these confidential interviews, was confirmed by the results of the Direct Assessment survey process described below.

Direct Assessment - Telephone surveys were completed with 400 households in Henderson County. The persons who responded to the survey had to be over 18 years of age. They also had to have either a full and/or part time job, or want a full or part time job, if they were not working. The household survey targets were selected using a stratified random sampling technique. With 400 completed surveys, this provides a statistically significant sample that is representative of the local workforce conditions at a 95 percent level of confidence (+5 percent margin of error). Please note: 604 households were initially contacted to arrive at the 400 households that compose the sample population.

One hundred and one (101) surveys were mailed to businesses in the area, and 41 responses were returned for analysis. The business survey targets were identified through the confidential interviews, by consulting with the Committee of 100 and by using business directories. Both the household and business surveys were administered by the University of Florida?s Survey Research Center.

Copies of both the telephone and mail survey instruments and the respective Master Response Questionnaires are found in the Appendix of the Labor Study report. This is very interesting and valuable information which the Committee of 100 can strategically use in their economic development initiatives, promotional information and activities.

Definition Of Underemployment, The Job-Seeking Unemployed, And The Potentially Available Workforce
As described previously, the report includes a characterization of the existing labor force plus an important description of the underemployed and the potentially available workforce in Henderson County. These represent an extremely valuable ?latent? source of labor that can be recruited for employment by local business and industry. Therefore, it is crucial to understand (i) who these workers/residents are, and (ii) the extent to which these economic/employment conditions exist in Henderson County.

THE UNDEREMPLOYED WORKFORCE (See Note [2] in the following table.)

For the purposes of the labor study, the underemployed workforce is composed of those residents in Henderson County who are (i) working full time, part time, or both full and part time, (ii) would consider potentially changing jobs for a better wage or salary and (iii) indicate they are either somewhat dissatisfied or very dissatisfied with their job(s) for various reasons.

Oftentimes a variety of conditions exist in an area, like Henderson County, that result in a workforce who indicates an interest in changing jobs for a better wage or salary. Among these are:

  • Lack of appropriate jobs available in the area
  • Overall lack of job opportunities in the area
  • Some degree of job dissatisfaction
  • Salary or wage levels that do not match the job
  • Education, experience, skills and/or qualifications that do not match the job

All of these are reasons expressed by Henderson County residents interviewed during the telephone survey process. Therefore, for the purposes of this study, underemployment is defined as the number and percent of Henderson County residents who are working (full time, part time, or both full time/part), who would consider changing jobs for a better wage or salary (although some indicate no increase is necessary), and who are somewhat or very dissatisfied with their jobs for some or many of the reasons noted above. While this may be a broader definition of underemployment, Lockwood Greene believes it is a good reflection of recent and current economic trends in the U.S., which have resulted in declining company profits and bankruptcies, job loss, and the need by some who have lost their jobs to work in a full or part time job or other employment scenarios not of their choice.

UNEMPLOYMENT AND THE JOB-SEEKING UNEMPLOYED (See Note [7] in the following table.)

Historically, the unemployed population has not been looked to as a potential labor source for employers in an area. This was largely because unemployment rates were at a record low and the unemployed might not have had the work, education, personal or social skills needed to work. However, economic downturns around the world and the global restructuring of businesses and industry has resulted in rising unemployment rates and the loss of jobs for people with diverse education, experience, expertise, and skills, ranging from the semi-skilled laborers to management and senior level professionals. This rings true for Henderson County as well.

The U.S. Bureau of Labor Statistics (BLS) defines unemployed persons as ??Persons 16 years and over who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4- week period ending with the reference week. The Employment Security Commission of North Carolina indicates the unemployment rate in Henderson County was 4.4 percent in February 2002.

In the Labor Study, however, Lockwood Greene has broadened the definition of unemployment, based on our understanding of the current labor situation in the area obtained through the telephone and mail survey processes and the confidential interviews and other research conducted for our overall work in Henderson County. For the purposes of the Labor Study, we are defining the unemployed as the residents who (i) participated in the telephone survey, (ii) do not currently have a job, (iii) would like to have a full or part time job, and (iv) are actively seeking a job, with no limit to the amount of time spent looking for work. The telephone survey results indicate that many of these job-seeking unemployed residents in Henderson County have good to better education attainment levels, are experienced, and have worked in a variety of industries, ranging from manufacturing and professional, scientific, and technical services to health care and social assistance, accommodations and food services, and retail trade. These people are what economists call the "hidden" unemployed. Because of these characteristics of the ?hidden? unemployed, we are including this ?hidden? labor pool in our definition of the potentially available workforce in Henderson County. This explains why the unemployment rates identified through the survey process and used in this study are greater than the official 4.4 percent ?official/technical? unemployment rate shown by the Employment Security Commission for Henderson County. (See following tables, Notes [10], [11].)

THE POTENTIALLY AVAILABLE WORKFORCE (See Note [8] in the following table.)

Thus, for the purposes of this study, Lockwood Greene defines the potentially available workforce in Henderson County as the "latent" labor pool of residents that can be recruited for employment by local business and industry. This "latent" pool of labor is comprised of two components: (i) the underemployed/dissatisfied and (2) the job-seeking unemployed, as described above.

Key Findings From the Household Survey of Henderson County Residents
The highlights from the household survey of 400 Henderson County residents follow. They present an understanding of important characteristics of the survey respondents. Moreover, since the 400 residents are a statistically significant representative sample of the Henderson County labor force, the highlights also provide important insights about the local workforce.

CHARACTERISTICS OF THE HENDERSON COUNTY INTERVIEWEES

Demographics - A well-represented cross section of residents were interviewed. Of the 400, 57 percent are female and 43 percent are male. Ages range from 18 years to 80 years and older, and overall education attainment levels are very good. Thirty-four (34) percent estimate yearly family income to be under $35,000 and 66 percent estimate it to be $35,000 or more.

Type of Employment - 357 of the 400 residents interviewed are employed. Of these, 276 are employed full time (69 percent of the total 400), 58 have one or more part time jobs (14 percent), and 23 have a full time and one part time job (6 percent). 43 of the 400 residents interviewed are unemployed (10.8 percent).

Place of Work - The overwhelming majority of residents work in Henderson County.

Commute Time - Commute times vary, ranging from people with very short travel times who might be telecommuters or self-employed to five to 10 hours a week or more.

Size of Employer - Over 50 percent are employed by small companies of 50 employees or less.

Industry in which Employed - Manufacturing is still a primary employer of residents in Henderson County, but many are also working in retail trade; professional, scientific and technical services; educational services; health care and social assistance, and other industries.

Skills - The residents interviewed have a wide range of very employable skills. For example, computer skills are high, even for the unemployed. Residents indicate higher levels of office/clerical, customer service, and word processing/data entry skills than manufacturing, material handling and metalworking skills.

Training - Less than one-fourth are taking classes or participating in training to improve their skills. However, if they are enrolled in classes, most work for employers who pay for all or a part of these classes.

Wage and Salary- A significant number of interviewees indicate they would consider changing jobs if one with a higher wage or salary would become available. 61 percent of interviewees with full time employment would consider a job change, 52 percent of interviewees with part time employment would consider a job change, 74 percent of the full time/part time jobholders would consider changing their full time job and 39 percent would consider changing their part time job.

Job Satisfaction - Job dissatisfaction is very high among those who would consider changing jobs. Reasons for the high dissatisfaction are wage and salary level of the current job; inability to find an adequate number of full and/or part time jobs; and education, experience, and qualifications that do not match the current job.

The Unemployed - Most of the unemployed interviewees have good to better education attainment levels, are experienced, have worked in a variety of industries, and have a wide range of employable skills. 23 of the unemployed, or 53.5 percent, are currently looking for a full or part time job. For the purposes of this study, they are described as the job-seeking unemployed.

THE UNDEREMPLOYED WORKFORCE (See Notes [2] and [4] in the following table.)

As described previously in this Executive Summary, the underemployed workforce is defined as those employed workers who indicate (i) they would consider changing jobs if a better paying job would become available, and (ii) they are very dissatisfied or somewhat dissatisfied with their present job for a variety of job-related reasons.

Based on the results of the household survey and various statistical analyses, the number and percent of underemployed Henderson County residents from among those who participated in and completed the household survey can be calculated. Please Note: All of the figures and percentages used in Lockwood Greene?s (LG) calculations are based on the answers provided by the Henderson County residents who took part in the random sample household phone survey; calculations and cross tabulations completed by the University of Florida Survey Research Center; LG?s best practice research concerning labor studies, and our own experience obtained through the analysis of ?labor force? for both economic development and location analysis studies.

Therefore, based on the study?s definition of underemployment and the calculations and analyses described above and completed in the labor study, it is estimated that 178 of the 357 employed Henderson County residents who participated in the household phone survey are underemployed, interested in potentially changing jobs, and dissatisfied with their job for a variety of job-related reasons. Of these 178 residents, 146, or 40.9 percent are between 18 and 55 years of age, which are typically considered prime working years by employers. Given the study?s +5 percent margin of error, the range is 139 to 153 residents between 18 and 55 years, or 38.9 percent to 42.9 percent of the employed workforce in this age range. (See Notes [5] and [6] in the following table.)

Based on the responses of the 400 Henderson County residents who participated in the household phone survey, Lockwood Greene Consulting believes this range is a good indicator of the underemployment in Henderson County due to an interest in changing jobs for a better wage or salary and some degree of job dissatisfaction. We conduct a great deal of best practice research that relates to our economic development and location analysis studies. Our best practice research regarding labor studies indicates that it is typically the population who is between 19 and 49 years that is surveyed in a labor study. In these studies, the underemployment rate ranges from 15 percent to 30 percent, but it only is relevant for the 19 to 49 year old worker.

In our study, however, residents 18 years and older were surveyed as part of the process. Since many 18 year olders are working full or part time for a variety of reasons, we believe that they should be included in the household survey. We also strongly believe that workers 50 years and older comprise a valuable and critical part of today?s workforce and the workforce of the future.

Furthermore, we understand the demographics of Henderson County, especially related to age, and know there are many 50 years and older who are working or who are unemployed and looking for a job. We also realize that Henderson County is home to many retirees, who sometimes are looking forward to having a different type of job or a second career in Henderson County. Therefore, we have completed our analyses for the workforce 18 years and older.

We also have identified the number and percent of the underemployed, job-seeking unemployed and the total potential available workforce who are between 18 and 55 years of age. This is because data about these prime working years is the type of information in which an existing or new employer may be most interested and which local stakeholders should understand and have.

THE JOB-SEEKING UNEMPLOYED (See Note [7] in the following table.)

The job-seeking unemployed are an important component of the total potential available workforce. And, in Henderson County, survey responses indicate the job-seeking unemployed have good to better education attainment levels, are experienced, and have worked in a variety of industries, ranging from manufacturing and professional, scientific, and technical services to health care and social assistance, accommodations and food services, and retail trade. As can be seen in the following table, 23 of the 43 unemployed survey respondents are searching for a full or part time job, and, of these, 14 are between 18 and 55 years in age.

THE TOTAL POTENTIAL AVAILABLE WORKFORCE

As defined previously, the total potential available workforce is composed of the underemployed (the dissatisfied who are interested in changing jobs for the same or a better wage or salary) and the job-seeking unemployed. Hence, based on the survey responses, the potential available workforce totals 201 of the 400 residents surveyed who were over 18 years of age. And, of these, 160, or 40 percent are between 18 and 55 years of age. See Notes [5] and [8] on the following table.

THE TOTAL POTENTIAL AVAILABLE WORKFORCE IN HENDERSON COUNTY

As noted in the beginning of this Executive Summary, the 400 households interviewed during the telephone survey process are a statistically significant representative sample of local workforce conditions at a 95 percent level of confidence (+5 percent error of margin). Therefore, the underemployment rate identified from the survey results can be extrapolated to the current labor force to estimate the number of employed residents who are underemployed in Henderson County. And, the numbers and percentages that relate to the potentially available workforce that is either (i) underemployed/dissatisfied or (ii) the job-seeking unemployed can also be extrapolated to the current labor force to estimate the total potential available workforce in Henderson County.

Please Note:
Lockwood Greene has used the lower end of the confidence range of underemployed workers derived from the findings of the study to extrapolate underemployment conditions in Henderson County. We have selected the lower end of the confidence range to help adjust for the degree of job dissatisfaction that we believe might be reflected in the answers of the residents during the telephone survey, due to recent and current economic trends in the immediate area and throughout the country and the slow, extended recovery of the nation's economy. (See Note [12] in the following table.)

Per the Employment Security Commission of North Carolina, the total labor force in Henderson County in February 2002 totaled 37,670, composed of an employed workforce of 36,020 plus 1,650 unemployed persons. Based upon the definitions, findings and conclusion of the Labor Study, the underemployed workforce (who is dissatisfied and potentially interested in changing jobs) is estimated to be 17,960, and of these, 14,012 are between the ages of 18 and 55 years. The potential available workforce 18 years and older is estimated to be 20,126, with 15,330 between the ages of 18 and 55, considered prime working years by employers. (See Notes [5] and [12] in the following table.)

Given the telephone survey's + 5 percent margin of error, the total potential available workforce (between 18 and 55 years) could range from 14,564 to 16,097 Henderson County residents. This range for the potentially available workforce indicates that the Henderson County economy is extremely elastic with significant numbers of residents who:

  • Are dissatisfied with their current job(s) for a variety of job-related reasons, if employed;
  • Are searching for a full or part time job, if unemployed;
  • Would consider changing jobs if a better paying job would become available (although some indicate no increase in wage or salary is necessary to consider a job change);
  • Are dissatisfied with the opportunity to find a full time or part time job in Henderson County;
  • Are an extremely valuable, experienced labor resource for existing and new employers in Henderson County.

A table showing the Estimated Underemployment and Potential Available Workforce in Henderson County follows. These calculations are all completed and included in the Labor Study report.

Estimated Underemployment and Total Potential Available Workforce in Henderson County

Labor Force Description Sample Size Total Henderson Co.
Number % Number %
Total Labor Force 400 100.0% 37,670 100%
Employed workforce 357 89.3% 36,020 95.6%
Unemployed residents 43 10.8% [11] 1,650 4.4% [10]
Underemployed/Dissatisfied Workforce [2]        
Full time 138 38.7% 13,924 38.7%
Part time 25 7.0% 2,522 7.0%
Full time/part time [3] 15 4.2% 1,513 4.2%
Total Underemployed/Dissatisfied Employed Workforce 178 49.9% [4] 17,960 49.9%
In 18-55 Year Age Range 146 40.9% [5]    
With +5% Margin of Error 139-153 38.9-42.9% 14,012 38.9%
Job-seeking unemployed [7] 23 5.8% 2,166 5.8%
In 18-55 Year Age Range 14 3.5% [5] 1,318 3.5%
Total Potential Available Workforce [8] 201 50.3% 20,126 53.4%
In 18-55 Year Age Range 160 40.0% [5] 15,330 40.7% [5,12]
With + 5 % Margin Of Error 152-168 38.42.0% 14,564-16,097 42.7%

Notes:
[1] A total of 400 Henderson County households participated in the telephone survey. Of the 400persons who answered the survey questions, 357 are employed and 43 are unemployed.

[2] For the purposes of this report and related analyses, underemployment is defined as the employed Henderson County residents who would consider changing jobs if a better paying job would become available and who are somewhat or very dissatisfied with their current jobs for a variety of reasons, such as too much experience or education for job, wages that don't match job, lack of job opportunities, etc.

[3] Some employed residents hold both a full time job and a part time job.

[4] Number and % of employed workforce who are underemployed 18 years and older

[5] Number and % between 18-55 years (typically considered prime working years by employers)

[6] Random sample telephone survey of residents has +5% margin of error.

[7] The unemployed who want a full or part time job and are currently seeking a full or part time job.

[8] The total potential available workforce is composed of the total number of underemployed/dissatisfied residents plus the number of job seeking unemployed residents.

[9] Source is the Employment Security Commission of North Carolina, current for February 2002.

[10] Based on government definition of unemployment: person 16 years and older who is without a job and has been making specific attempts to find work for the past 4 weeks.

[11] Broader definition of unemployment used in this labor study results in a higher unemployment rate than the unemployment rate defined by the U.S. Bureau of Labor Statistics. In this labor study, there is no limit to the amount of time spent looking for work.

[12]Low end of confidence range used to extrapolate underemployment to help adjust for job dissatisfaction that might be due to recent and current economic trends.

Key Findings of the Mail Survey to the Businesses in Henderson County
The highlights of the mail survey of the 41 Henderson County businesses follow. They provide important insights about the companies that are located in Henderson County and the people they employ.

  • Total Businesses and Employees - The 41 businesses have a total employment of approximately 2,900.
  • Size of Business - The vast majority of the businesses employ less than 50, confirming the responses of the resident interviewees.
  • Type of Employees - Of their total workforce, 96 percent are full time permanent employees, 2 percent are part time permanent employees, and 2 percent are temporary or part time employees.
  • Skills of Employees - The majority of workers are in the skilled, semi-skilled and unskilled categories. About 25 percent of workers have office/clerical, managerial and technical skills.
  • Employee Productivity, Education and Work Ethic - The businesses indicate the productivity, cooperation, work ethic, education, and socialization skills of their employees are extremely good.
  • Absenteeism and Turnover - Over 50 percent report no problems with absenteeism and turnover. However, among other companies there is a high degree of absenteeism and a relatively high degree of turnover.
  • Recruitment - The local newspaper is the most favored means of recruitment. Also used are placement services, the State Employment Security Commission and Blue Ridge Community College. Businesses state it is difficult to recruit managers, technicians and skilled employees.
  • Training - The overwhelming majority of businesses provide in-house training. The second most favored means of training are the community colleges. Over 50 percent of companies indicate their employees take advantage of training opportunities.
  • Match Between Jobs, Skills and Education - 39 percent of the businesses believe there is a ?match? between the jobs available in Henderson County and the skills, education and experience of the local workforce, and 39 percent indicate there is a ?mismatch? between the available job opportunities and the skills and abilities of local employees.
  • Business Climate - 25 percent rate the overall business climate in Henderson County as excellent, 56 percent indicate it is good and 17 percent rate it as fair. The businesses were also asked to rate the business climates in the community in which their respective business is located. This information is all included in the Labor Study for Henderson County draft report.

Target Industry Analysis

The purpose of the target industry analysis is to identify those industries and economic activities that represent the best "targets" for recruiting into Henderson County. The target industries for Henderson County were selected after screening hundreds of industries classified by Standard Industrial Classification (SIC) codes and North American Industrial Classification System (NAICS) codes, the U.S. government's two industry classification systems.

The screening criteria used for selecting the target industries included:

  • Location Criteria - How well the locational criteria of the industries match up with the economic development competitive advantages of Henderson County, based on the location quotient and the general industry knowledge and location consulting experience of Lockwood Greene.
  • Location Quotients - What the concentrations of well established industries are in the Henderson County region compared to the U.S. as a whole. If the location quotient is greater than one, this indicates that a particular industry is relatively more concentrated in an area (higher percentage of employment) than in the U.S. as a whole, and that the area has a comparative advantage in the industry. Location quotients were calculated for the number of establishments and employment in each candidate target industry.
  • Growth Trends - Past employment and establishment growth in the industries (in the U.S.), as well as likely future growth, as determined by industry employment statistics and Lockwood Greene industry knowledge.
  • Wages and Skills - Ensuring that the industries offer suitable wage levels, that the residents have the skill levels required by the industries, and that the likelihood of employing local residents is present.
  • Diversified Industry Base - Ensuring that the targets are a mix of diversified yet synergistic industries, that include those in manufacturing, services and other sectors. Lockwood Greene understands that Henderson County wants to diversify away from ?traditional? industries in the area that are declining such as textiles. Therefore, these types of industries were not included in the target industry candidate list.
  • Information Technology (IT) Industries - Ensuring that the mix of target industries include ?new economy? information technology-producing industries that offer job opportunities to a growing number of residents now and in the future.
  • Average Employment per Establishment -- Henderson County is at a relative disadvantage compared to many areas for attracting industries that require large sites. Land prices in Henderson County are higher than comparison areas, site preparation costs are high due to the hilly topography and there is a lack of available large industrial sites.

These factors combine to make industries such as auto assembly that require large tracts less likely to locate in Henderson County. As an indication of the average facility and site size, Lockwood Greene calculated the average number of employees per establishment for the manufacturing target industry candidates. Manufacturing industries with a level of employees per establishment of over 200 were ruled out as too big, and those under 25 were ruled out as too small. Unlike manufacturing industries, service, FIRE and related "office" industries have less land intensive operations and are less likely to be put off by high land prices.

For Henderson County, Lockwood Greene identified approximately 8 primary target industry clusters and 4 secondary clusters with a total of 47 individual industries after screening industries in manufacturing; transportation, communications and public utilities (TCPU); wholesale trade (warehousing and distribution); finance, insurance and real estate (FIRE), and services. These target cluster and industries are presented in the table below. The industries are identified by Standard Industrial Classification (SIC) Codes. Corresponding North American Industry Classification System (NAICS) Codes are also given. These are the ways industries are classified for tracking growth, employment, and other industry characteristics.

Primary Target Clusters/Industries

1. Plastics Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Plastics Pipe

3084

326112

Plastics Bottles

3085

32616

Custom Compound Purchased Resins

3087

325991

Plastics Products, NEC

3089

326122, 326121, 337215, 326199

Plastics Materials Distribution

5162

42261

2. Auto Parts Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Vehicular Lighting Equipment

3647

336321

Motor Vehicle Parts and Equipment

3714

336211, 336312, 336322, 33633, 33634, 33635, 336399

Motor Vehicle Supplies and New Parts Distribution

5013

44131, 44112

Motor Vehicle Parts, Used Distribution

5015

44131, 42114

Medical Products Manufacturing, Laboratories and Distribution

Industry

SIC Code

NAICS Code

Surgical and Medical Instruments

3841

332994, 339111, 339112

Electromedical Equipment

3845

334517, 334510

Medical and Hospital Supplies Distribution

5047

42145, 446199

Medical Laboratories

8071

621512, 621511

Recreational and Sporting Goods Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Fabricated Rubber Products, NEC

3069

31332, 315299, 315999, 339113, 33992, 339932, 326192, 326299

Plastic Products, NEC

3089

326122, 326121, 337215, 326199

Boat Building and Repairing

3732

81149, 336612

Sporting and Athletic Goods

3949

33992

Sporting and Recreational Goods Distribution

5091

42191

Machinery Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Machine Tool Accessories

3545

333515, 332212

Packaging Machinery

3565

333993

General Industrial Machinery, NEC

3569

333414, 314999, 333999

Industrial Machinery Distribution

5084

42183

Electronic Components and Switch Gear Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Electronic Capacitors

3675

334414

Electronic Resistors

3676

334415

Electronic Components, NEC

3679

33422, 33431, 334418, 334419

Switch Gear and Switchboard Apparatus

3613

335313

Electronic Equipment Distribution

5063

44419, 42161

Computer Programming and Software

Industry

SIC Code

NAICS Code

Custom Computer Programming

7371

541511

Prepackaged Software

7372

51121, 334611

Computer Integrated Systems Design

7373

541512

Data Processing and Preparation

7374

51421

Computer Related Services, NEC

7379

51421, 541512, 514519

Finance/Back Office

Industry

SIC Code

NAICS Code

National Commercial Banks

6021

52211, 52221

State Commercial Banks

6022

52211, 52221

Federal Credit Unions

6061

52213

State Credit Unions

6062

52213

Back office operations for all target clusters/industries

   

Secondary Target Clusters/Industries

1. Biotechnology

Industry

SIC Code

NAICS Code

Medicinal Chemicals and Botanical Products

2833

325411

Pharmaceutical Preparations

2834

325412

In Vitro and In Vivo Diagnostic Substances

2835

325412, 325413

Biological Products, Except Diagnostic

2836

325414

Commercial Physical and Biological Research

8731

54171

Testing Laboratories

8734

54194, 54138

2. Controls/Instrument Manufacturing

Industry

SIC Code

NAICS Code

Environmental Controls

3822

334512

Process Control Instruments

3823

334513

3. Industrial Valves and Fittings Manufacturing and Distribution

Industry

SIC Code

NAICS Code

Industrial Valves

3491

332911

Fluid Power Valves and Hose Fittings

3492

332912

Industrial Supplies Distribution

5085

42183, 42184

4. Optical Instruments Manufacturing

Industry

SIC Code

NAICS Code

Optical Instruments

3827

333314

The Marketing Plan discusses how to attract these target industries to Henderson County through a proactive industry recruitment program. As discussed in the Marketing Plan, there is no practical way to predict the exact success of an economic development marketing plan because many factors influence corporate investment (e.g. national corporate investment trends). However, many communities that have implemented economic development target industry and marketing plans designed by Lockwood Greene and others have achieved much success. The Marketing Plan lists several examples of these communities.

As the target industry table above shows, the selected target industries are growing nationally and most have a strong location quotient, indicating that the Henderson County/Western North Carolina region has a comparative advantage in the location of these industries. Lockwood Greene does not believe that the North American Free Trade Agreement (NAFTA) will have an adverse effect on the recruitment of these industries to Henderson County. Industries such as automobile parts, medical products and the other target industries will continue to locate in the U.S. because they require more skilled labor and benefit from proximity to R&D resources, distribution networks and high-income consumers. As people in Henderson and other North Carolina Counties are aware of, it is products such as textiles and apparel that tend to move to Mexico and other low-cost nations.

Agribusiness, in Lockwood Greene's professional opinion, is not a promising target industry for Henderson County for several reasons:

  • Limited agriculture base: Agriculture, forestry and fishing employ only 1,151 persons in Henderson County, only 3.3% of total employment, compared to the manufacturing and service sectors that both employ over 23% of total employment.
  • Unfavorable national growth trends: Of the 48 4-digit industries in the food, beverage and feed category, only 12 had positive growth rates from 1992-1997 in both establishments and employment and 8 had positive growth rates in employment only.
  • Limited presence of agribusiness industries in Henderson County: Of the 48 industries in agribusiness, Henderson County only has establishments in 5 of the industries.

evelopment target industry and marketing plans designed by Lockwood Greene and others have achieved much success. The Marketing Plan lists several examples of these communities.

 

As the target industry table above shows, the selected target industries are growing nationally and most have a strong location quotient, indicating that the Henderson County/Western North Carolina region has a comparative advantage in the location of these industries. Lockwood Greene does not believe th