It is a legitimate question to ask nowadays about any community – “How are you faring economically?” A fair and honest answer regarding the Triangle would be, “Better than most in the country, and though we are hurting some too here, we should get out of it.” Here are the good and the bad in the Triangle’s current situation, as we see it.
The Good Signs
Unlike most areas, the Triangle is not heavily weighted toward any one industry, so factory closings generally do not have the same impact here they do in other North Carolina towns. The ones that do dominate the area – healthcare, technology, education and government – are generally not as predisposed towards having massive layoffs either, so that makes the Triangle a fairly stable area in terms of employment, and major companies notice that.
For example, when pharmaceutical giant GlaxoSmithKline decided to downsize its operations in America recently, it chose to close its Philadelphia base while keeping open its Research Triangle Park headquarters.
Also, there have been several projects that have opened recently that are designed to provide solid economic boosts to the area, such as the new Terminal 2 at Raleigh-Durham International Airport and the Raleigh Convention Center. These will attract business travelers and potential newcomers to the area as well as benefit the local economy.
The Bad Signs
Alas, try as hard as it might, the Triangle is not immune to the outside world. This article noted that Nortel Networks might announce a slashing of between 3,000 and 5,000 jobs when it reports quarterly earnings on Nov. 10. It currently has 32,000 employees, including some 2,000 people in Research Triangle Park. There is no word on where the layoffs may occur – if they do.
Our real estate market has cooled off somewhat as well, though because we did not go to the insane lengths seen in California and Florida, we are not suffering as many adverse setbacks. There is a glut of houses on the market, and it is more difficult now than two years ago to sell your residence. However, housing values remain relatively high, and people continue to relocate here due to its high reputation. As with stocks, hold out for the long term, and you should find your investment here will survive any down cycles we sustain.
The Future
Despite some setbacks, we still remain a top area in innumerable surveys where people want to work, learn and live. The Triangle remains the envy of other regions, and don’t just take our word on it. As Knox County Mayor Mike Ragsdale commented in this recent story, he backed a project creating a technology park in his area of Tennessee “so that our children and grandchildren aren’t running off to the Research Triangle.” He most likely is not the only public official who feels that way about our area.
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