The Cape Fear Capital Connection News Hour: Tuesday, August 12, 2014

News and Information About Technology, Capital Markets, and Business In The

Cape Fear Valley

With Thomas Vass

The Private Capital News Network Presents

Segment One: The Week In Review

Pathway to Prosperity – New Hanover County’s Plan for Jobs and Investment

A Critical Analysis of the Current Economic Strategy and an Alternative Plan That Promotes Small Business Growth

“There has been a lack of leadership in the area in setting a vision for economic growth. This perception is validated by current policies in place that have the unintended effect of discouraging certain types of business that would be beneficial for the area.” From the Report.

“…Discouraging certain types of business”

Like, for example, existing small businesses?

What Does Economic Research Suggest About What Causes Job Growth?

Established Small Firms Create About 60 % of All New Jobs

In the last two decades about 60 percent of the private sector’s net new jobs have been created by existing establishments and about 40 percent from the churn of startups minus closures.

The U. S. Economy Is Splitting Into Two Parts With No Middle

While businesses with 10,000 or more workers accounted for 16.7 percent of the jobs generated in 1987, they were responsible for 23.9 percent of the positions created in 2011.

This bifurcation is one consequence of very bad trade policies, in 1992 and 2002, that killed small business in America.

What Does The Pathways To Prosperity Economic Growth Report Suggest?

Do More of the Same, but do it better.

the willingness to offer creative and unique incentive packages are important

attract high-quality jobs and talent to the region.

take on transformational initiatives that will have a positive, game-changing effect

Has The Existing Economic Policy Been A Big Success In The Past 50 Years?

From the Report: “the region has a significantly lower average wage rate than its peer regions, the state, and the national average

Measured in per capita terms, at $37,297 in 2012, Wilmington has a lower relative amount of economic activity than the state and nation

Over the last five years, real per capita GDP declined by $1,034, down 2.7 percent.

Per Capita Income Is Down 6% Over the last ten years, growth in real

values for the per capita income in New Hanover has declined by 0.3 percent

(-$99) and in the last five years, is down by 6.1 percent (-$1,911)

Average Weekly Wages In New Hanover Are Lower Than In Mobile, Alabama!

Part of The Problem Is That Government Employs 4 Times The Number of Workers as Manufacturing Industry; We Need Just The Opposite Ratio

A Vastly Better Strategy

Change The Focus of Economic Policies To Small Companies In The Cape Fear Economy

Link Industrial Recruitment of Large Companies To Those That Support Small Regional Companies

Step #1: How To Do Better

Focus resources on existing small technology companies in the 7 county Cape Fear Region.

In New Hanover and Pender Counties, alone, there are 112 small technology manufacturing companies.

Of the 112, 94% employ less than 50 workers.

Step #2: Create The Capital Market Infrastructure For Small Companies To Grow

Economic growth occurs when small companies make capital investments.

Small companies need capital to service and supply the bigger companies in the region.

In New Hanover, there are 5 big companies that would buy more products from the small companies, if the small companies met the criteria for the big companies.

In Cumberland, there are 10 Big Companies, most connected to the Military Supply Chain.

Step #3: Support Capital Market Legislation In Raleigh That Allows North Carolina Citizens To Make Investments In North Carolina Companies

Copy the proposed legislation in South Carolina called The South Carolina Small Business Capital Act.

Link the new legislation to tax incentives for companies to make investments and for investors to invest in companies.

De-emphasize industrial recruitment incentives for outside companies in favor of incentives for North Carolina companies.

Get The Government Bureaucracy and Crony Capitalist Political Interests Out Of the Process To Let The Free Enterprise System Do Its Work

Government does not create wealth, only the private sector creates wealth.

Government’s role must be limited to the functions that it can do: Creating the physical infrastructure and a supportive political environment for business to operate.

Connect elected representative accountability for economic success or failure, so citizens know who to hold accountable.

In other words, who is responsible for 50 years of economic failure?

Segment Two: Focus on Cape Fear Companies: Osprey Global Solutions

Osprey Global Solutions

Osprey Global Solutions work across five areas of expertise to deliver the solutions that few can promise.

Created 2011

Employees 15

Osprey Armament Osprey Armament produces and

markets weapon systems and accessories designed to cater to the unique demands of the U.S. Special Forces, advanced law enforcement personnel, and civilians who demand excellence, precision and innovation to accomplish the task.

Tactical Training

Osprey Training Center will provide cutting-edge, modular, and fully integrated training solutions that prepare your personnel for engaging multiple threats with basic through advanced skills to optimize what is possible with man and weapon. 

Osprey Security Upon request OGS will evaluate

potential threats, provide pro-active security solutions, monitor activity, and react to crisis situations; to include providing the appropriate stopgaps that better ensure the safety of our dignitaries and their family during daily activities both at home and during their active daily schedule.

Customized Equipment Is An Essential Part of Product Innovation in a Technological Economy

Customized weapons and armament

equipment for the commercial market Customized tools and solutions for Special

Weapons And Tactics Weapons systems are built specifically to

the needs of the requesting security force

Osprey Global Solutions Is Part of the Solution to A New Cape Fear Economic Strategy

High technology company located in Wilmington with strong business connections in Fayetteville.

Local company that can sell goods and services internationally.

Continuous product innovation and commercialization that benefits the entire regional economy.

Segment Three: Economic Trends and Projections

Trends in venture capital funding in North Carolina, with Amy Huffman, Contributor to ExitEvent

N.C. Fares Poorly in Recent Venture Capital Data, But Does It Really Matter?

Analyzing VC data and what it really means about the state's entrepreneurial climate.

Segment Four: An In-Depth Interview With Our Guest:

Charles Metzler, CEO of South Tek

Discusses his company and their experience in Fayetteville at the Military Business Center Trade Show