Wage gaps, dwindling land and demand for engineers: 4 things to know about New Hanover's economic future

A lot has changed since New Hanover County adopted its last economic roadmap in 2015, including the onset of the COVID-19 pandemic.

New Hanover leaders recently received updated goals for the county in a new economic report prepared by business consulting firm Greenfield. The analysis outlines the county's assets and past growth along with opportunities and challenges for future economic growth.

The newly presented report is set to update the Garner Report, a set of economic development goals that was commissioned by the New Hanover County Board of Commissioners in 2014.

Some of the report's goals -- like extending water and sewer lines along U.S. 421 to spur business growth -- have been completed while others are still underway or have been deferred.

New Hanover County is in good economic health, as it received a AAA bond rating from Moody's since 2010 and a AAA rating from S&P since 2013.

The bond rating is based on the county’s strong economy, large tax base, financial flexibility, manageable fixed cost burden and strong management practices and policies, according to a 2021 press release announcing the rating.

As New Hanover's economy continues to thrive, here are four take-aways from New Hanover County's updated economic report, which was released last month:

An unbalanced economy

New Hanover County has seen widening gaps between its highest and lowest paid workers as middle-income jobs have fallen away.

The jobs providing the highest weekly wages include positions in finance and insurance, which make up 2.8% of the county's employment, utilities with 0.2% of overall employment and professional, scientific and technology services, making up 8% of countywide employment.

Those with the lowest wages include accommodation and food services, which make up 12.2% of the county's employment, arts, entertainment and recreation, making up 1.3% of the overall county employment and retail that makes up 13.5% of countywide employment.

The gap between wages in these positions creates a barrier to economic mobility, according to the report, because "there is no pathway from an entry-level job to higher-wage sectors."

Focus on manufacturing

One solution to the county's wage gap is by bringing in more manufacturing jobs.

Manufacturing offers the 5th highest average weekly wage in New Hanover County, but isn't a top-five employer. In New Hanover, manufacturing makes up just 4.2% of total employment as compared to 10.5% statewide.

Over the last two decades, manufacturing in New Hanover County has been on the decline. In 2000, Corning was the county's third largest employer. By 2021, it had slipped to 10th. It's been replaced, at least in part, by professional technical employment, according to the report.

New Hanover County has seen the growth of the life science sector in the last 20 years with PPD and a growing digital support sector that includes nCino, Live Oak Bank and Castle Branch, a firm that provides background checks.

In areas with substantial tourism sectors, it's not unusual for manufacturing to fall to the backburner, according to the report, as high land values often favor residential development and quality-of-life issues often outweigh creating jobs.

Bringing up new workers

In recent decades, New Hanover County has seen its population consistently climb. But the people living in the county are older than the statewide average.

Those 65 and older made up approximately 18.4% of the county's population in 2020 while the same age group made up approximately 16.7% of the population statewide.

As the Cape Fear region continues to be a retirement destination for many, the report emphasizes developing a young workforce by taking advantage of local institutions like the University of North Carolina at Wilmington and Cape Fear Community College.

Employers interviewed for the report repeatedly raised the need for younger and more diverse people to fill positions with higher skill levels, including technicians and engineers, especially electrical and chemical engineers.

The report suggests local colleges and high schools should focus on engineering and other technical careers. It also recommends a regular employer survey to better gauge local workforce needs.

Use remaining land wisely

It's logical that a climbing population means more development and less vacant land.

New Hanover County is now the third most densely populated county in North Carolina behind Mecklenburg and Wake Counties, which are home to Charlotte and Raleigh.

Of the county's 130,261 acres of land, 18,600 acres or more than 14% remain for development.

Of the available land, more than 16% is zoned for industrial development, more than 14% is zoned for commercial projects and nearly another 14% is zoned residential.

The report encourages leaders to focus on maximizing the county's industrial land even though residential development often nets higher property taxes. It also encouraged county leaders to invest in infrastructure like sewer and water lines that would attract new industries and encourage expansion from existing companies.

Reporter Emma Dill can be reached at 910-343-2096 or edill@gannett.com.

This article originally appeared on Wilmington StarNews: New Hanover County's economic future is bright, but needs fine-tuning