Economic lessons from the home of the Panthers

 

Compared to some National Football League teams, the Carolina Panthers are standouts. Based in Charlotte, North Carolina, they have made the playoffs three times since 2003 and narrowly lost their Super Bowl game with the New England Patriots. So, they’re envied by some teams. From an economic-development perspective, the city of Charlotte could also teach other cities how to win.

Why? Charlotte is only in the nation’s 21st-largest market with a metropolitan population of 2,371,645.

So what gives? Well, for starters, the Panthers have a unique owner in Jerry Richardson, who has a fascinating background.

In 1959, Richardson was a rookie receiver on the Baltimore Colts. In the NFL Championship Game that year between the Colts and New York Giants, the rookie carried the crucial play from Coach Weeb Ewbank to storied quarterback Johnny Unitas in the huddle. Raymond Berry was the play’s intended receiver but Unitas surprised everyone by throwing to Richardson who caught the touchdown pass that helped ensure the Colts’ 31-16 victory.

For decades, only one NFL player had ever been granted an NFL franchise: Legendary “Papa Bear” George Halas in Chicago. But in 1993, as a native Carolinian, Richardson became the second player to field a team.

So Richardson is special. He knows how to compete. He’s knowledgeable in human resources and recruiting employees. He hired a great coach, John Fox, who had been untested as a head coach. The Panthers won just one game the season before hiring Fox. But as a sophomore coach, Fox piloted the Panthers to a Super Bowl appearance in just two seasons. Only two other coaches, Vince Lombardi and Bill Parcells, have accomplished such a colossal feat.

There are other reasons for the Panthers’ success: True, football is big in North Carolina, but Richardson also has a nose for business and building community support. To help finance the stadium, the team recruited more than 25,000 people to purchase permanent seat licenses. The licensees, in turn, have bought more than 63,000 licenses. The games have been sold out for years. Other cities fight over whether to publicly finance stadiums. Seattle and Washington state serve as classic examples.

Charlotte is a vibrant city of commerce. The region attracts residents and business in big numbers – 6.9 million people now live within 100 miles of the city. North Carolina also has a third more businesses than Washington state, according to government figures.

Even if we allow for a modicum of marketing puffery, the Charlotte Chamber of Commerce has quite a story to tell. Like its football team, Charlotte is outperforming bigger cities, and its leaders aren’t dropping the ball and making rookie mistakes.

For starters, Charlotte’s cost-of-living is lower than the national average.

North Carolina has comparatively low unemployment insurance and worker’s compensation rates.

Balanced Budgets

North Carolina state law requires all governments, including county and local, to stay within balanced operating budgets. As a result, all city, county and state have AAA bond ratings. Per capita state and local taxes are the 20th lowest in the U.S.

Charlotte has 306 of the Fortune 500 firms represented. That’s the fifth-highest ranking in the nation. It’s also the third-best city for corporate headquarters. Charlotte is the sixth-largest wholesale center in the U.S.

Charlotte is a mega financial center. With more than $1.5 trillion in assets controlled by Bank of America and Wachovia, it’s the second-largest banking center in the country.

More than 480 foreign-owned companies have facilities in Charlotte.

With $16.8 billion in retail sales each year, it’s the envy of many municipalities looking to increase sales tax revenue.

In transportation, the city is also outperforming larger cities and it has the 14th most active airport in U.S.

Charlotte has the country’s seventh-largest University Research Park. The area has 35 colleges and universities that educate more than 150,000 students.

Why are all these accomplishments possible?

In lieu of turnovers, Charlotte scores with a business-friendly environment: The city’s business leaders are actively involved in the public policymaking process. Even Charlotte Mayor Patrick McCrory, who has been nationally recognized as a transportation innovator, hails from business, was a candidate for governor and is the Charlotte’s longest-serving mayor.

So, compared to Seattle’s economic development, Charlotte’s notable off-the-field stats are impressive, especially, after getting a sneak preview at a study unveiled by the Washington Policy Center, the non-profit think tank. The foundation’s 34-page study, “Reviving Washington’s Small Business Climate,” outlines recommendations of small business owners.

The small business recommendations include:

Skyrocketing costs of health coverage – permit purchasing of basic insurance; allow residents to buy coverage from outside the state; and suspend state requirements until they receive ample scrutiny.

Transportation – expand overall lane capacity; synchronize policy with growth management and zoning; and ease costs associated with administration, the environmental and operations.

Taxes – eliminate the death tax; and ignore calls for a state income tax.

Unemployment insurance – abolish “liberal construction” and bring back those 2003 legislative reforms; grant benefits based on workers’ pay over four quarters, not just two quarters; and require workers to undergo training or serve the community when receiving unemployment benefits.

Workers’ compensation – allow privatization and competition in coverage; permit smaller groups of employers to self-insure; and step up fraud prevention.

Employment regulations – to alleviate effects of the state’s high minimum wage, establish a tip credit for restaurant employers; amend wage laws; inform employers of regulation changes before taking punitive action.

Tort and liability reform – establish a limit on non-economic damages injuries; cap attorney contingency fees; and reform rules so employers only have to pay settlements for which they are responsible.

Water and energy – halt all stormwater-rulemaking until the matter is taken up by the legislature; stop trying to outdo the federal government in lawmaking; and provide incentives to farmers for conserving water.

For more information, visit: www.washingtonpolicy.org.

The Washington Policy Center’s recommendations make sense. Charlotte’s achievements are enough to make Seattle businesspeople green with envy.

From the Coach’s Corner, here are a few simple tips if you have to hire a replacement employee:

1. Make certain that you have a good job description and envision what a good performance would look like. Many small business owners decide to hire a worker without having a full understanding of the skills that are expected or needed.
2. Don’t rush into hiring an employee just to fill the position. Ask open-ended questions and thoroughly check references. Otherwise, it will cost you more in the long run if you hire an unproductive employee.
3. Trust your instincts and thoroughly look at warning signs.