About the Project

> Competitive Realities
> Stakeholder Input Process
> Target Business Analysis
> Consensus Community Strategy
> Implementation Plan

Competitive Realities

It is essential that the process of developing a strategy is based on a clear, honest assessment of current realities.  Therefore, the first stage of Market Street’swork for Caldwell 20/20 was a Competitive Realities Report.  Data was analyzed in the context of state and national trends to provide perspective on key strengths and challenges for Caldwell County.

The report’s key trends are:

Demographic Trends

• Caldwell County has grown at a slower average annual rate than region, the state and the nation.  Between 2000 and 2006, Caldwell grew 0.5 percent to 79,841.  Most of this growth occurred in Lenoir, the County seat, which grew 1.2 percent – adding over 1,200 new residents.  Migration data shows that Caldwell County had net migration gains from counties in the immediate region, from counties in North Carolina and other states. 

• Retaining residents within the region – particularly young professionals with educational credentials and technical skills – is a challenge for community leaders to address.  Negative growth rates in the 18-24, 25-34, and 35-44 age groups indicate continued out-migration of young adults.  Declining percentages of workforce-age adults is a potentially damaging local trend that could foreshadow future workforce availability issues.

• Another reality is Caldwell’s high youth poverty and teenage birth rates.  In 2005, the community’s childhood poverty rate was 21 percent compared to 18.5 percent nationwide.  Caldwell County’s teen pregnancy has increased in the past three years after several years of decline.  These trends impact nearly every aspect of community and economic life and serve to restrict local job and income growth.

Economic Trends

• Employment in Caldwell County and the Hickory-Lenoir-Morganton MSA has declined since 2005, notably trailing state and national figures.  Between 2005 and 2007, the number of jobs in Caldwell County declined by 2,467 (-8.3 percent) while employment in North Carolina and nationwide grew 5.5 percent and 3.5 percent, respectively.  This negative job growth can be a cause of negative or stagnant population growth.

• Per capita incomes in Caldwell County have decreased in recent years from $27,100 to $26,814, while state and national per capita incomes have increased.  The per capita income in Caldwell County is significantly less than the state ($31,041) and national ($34,471) averages.  Caldwell County’s average annual wages ($29,679) also significantly lag behind Catawba County ($34,107), the state ($40,439) and nation ($46,022).  Expanding the number and variety of higher paying jobs is a pressing need in Caldwell County.

• Caldwell County has the highest proportion of workers that commute out of the county to get to work when compared to neighboring Burke County and Catawba County.  This is an indicator of a lack of jobs in the county and/or poor diversity of career opportunities.  

• Decreased labor force participation may help to explain local decreases in per capita income.  Labor force participation (the percentage of working-age adults employed or looking for a job) has fallen in Caldwell County since 2000 and is slightly below state and national levels.  This is a negative trend, because more adults are dropping out of the workforce or have given up looking for a job.

Issues of Competitiveness

Education and Workforce Development

• The Caldwell County School system faces several challenges.  Approximately 46 percent of the community’s students qualify for the federal free or reduced lunch compared to 26 percent in 2000-2001.  This corresponds to changing local employment dynamics including increased unemployment, the erosion of Caldwell County’s manufacturing base, and stagnant per capita income levels.  Significant effort must be made to prepare these students for the future workforce needs in the County.

• Caldwell County’s graduation rate is inline with that of North Carolina but lags behind those for the comparison communities.  Ensuring that more students successfully complete high school will continue to be a key challenge facing local educators.  According to numerous focus group and interview participants, greater awareness and resources need to be made available for career education in all levels of schooling 

• Compared to the state and the nation, a significantly higher proportion of local residents have not completed high school.  The proportion of residents that have an Associate’s (5.1 percent in 1990 – 6.3 percent in 2006), Bachelor’s (6.1 percent in 1990 and 2006), or graduate degree (2.8 percent in 1990 – 3 percent in 2006) have remained virtually unchanged over the past 16 years. 

• In terms of higher educational resources, Caldwell County is served by five institutions of higher education with an enrollment of 28,214 students – more than the number of students in Martinsville-Henry County, VA (21,750), Paducah-McCracken, KY (23,382) and Tupelo-Lee County, MS (23,622).  Significant educational infrastructure is necessary to support economic growth and diversification.  In this regard, Appalachian State University and Caldwell County College & Technical Institute are key assets that should be fully leveraged in Caldwell County’s community and economic development efforts.  

Infrastructure

• While the community is 19 miles from I-40, it still possesses a number of high-capacity four-lane highways and access to Norfolk Southern rail service.  To leverage its rail service, Caldwell County recently approved the construction of a new transload facility adjacent to US-321.

• Caldwell County does not have a centrally managed water and sewer system.  The County only provides water services while the City of Lenoir and three towns provide water and sewer services to residents and businesses.  This is very confusing and can be a challenge to navigate service area, rates structures, etc.   

Business Costs

• It is important for communities to have buildings and land for new companies to locate and existing firms to expand.  Caldwell County is competitive in this regard, with hundreds of acres available for development; industrial parks that can served with water, sewer, and roads; and six large-capacity buildings listed for lease.  None of these sites is under the control of the Economic Development Commission of Caldwell County, but it can nevertheless assist companies in acquisition or leasing of sites.

• There are support networks for entrepreneurs and small businesses in Caldwell County.  Organizations serving the region include Blue Ridge Entrepreneurial Council, High Country Business Network and the Blue Ridge Angel Investor Network.  The Chamber also provides programs for Small Businesses and Women owned businesses.  However, more outreach is needed to educate diverse entrepreneurs and small businesses on the programs and services available.

• A number of local businesspeople commented in interviews and focus groups that the regulatory and permitting processes in Caldwell County are “business-friendly” and cross-jurisdictional collaboration was observed on issues related to business growth and economic development.  This benefit enhances the perceived competitiveness of the community. 

Quality of Life

• Poor communication was identified as a challenge for Caldwell County as it relates to informing current and prospective businesses and residents of local amenities and services.  However, nearly everyone who participated in interviews and focus groups feel Lenoir-Caldwell County offers a high quality of life. 

• The Hickory-Lenoir-Morganton metro area’s cost of living is lower than the national average but it is higher than its peer communities according to 3rd quarter 2007 data from C2ER (a national community and economic development research organization).  In particular, local grocery, housing, and health care costs are comparatively higher locally than in Martinsville, Paducah, or Tupelo.  This trend caries over into rental units as well.

• Caldwell has access to good health care resources, including the private not-for-profit Caldwell Memorial Hospital and the Frye Regional Medical Center in adjacent Catawba County.  Stressing regional healthcare options will be key moving forward as it relates to Caldwell’s aging population and attracting retirees.  Caldwell County has a lower portion of physicians compared to all of the benchmarks, which all house large regional health facilities. 
  
  
• The number of non-profit 501(c)(3) organizations in Lenoir-Caldwell County (104) is significantly less that the number of non-profits in Martinsville-Henry County (125), Paducah-McCracken County (146), and Tupelo-Lee County (148).  Even so, many people who participated in interviews and focus groups noted that Caldwell has a wide variety of non-profit organizations.  However, there is frustration with the lack of coordination and/or collaboration within Caldwell’s non-profit community.  Also, improvement needs to be made to effectively communicate the availability of financial resources for high school students to further their education.