Invest: Gaston County

Charlotte 2020 An in-depth review of the key issues facing the Charlotte region’s economy, featuring the exclusive insights of prominent industry and political leaders.

Gaston County: Armed with natural resources, a healthy quality of life, a diverse economy and a strong credit rating, Gaston County is positioned for growth. It is attracting attention for all the right reasons: aordability, a business-friendly environment and a growing and skilled workforce.

Already climbing a variety of rankings, the county is poised for growth.

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Looking up: Having done many things right to diversify its economy, Gaston County is poised for growth on a number of fronts With numerous parks, trails and nature paths set against a backdrop of lakes, rivers and Crowders Mountain State Park, the largest of the county’s 12 natural heritage sites, Gaston County is attracting attention. It offers a high quality of life with a smalltown feel that helped it crack the Top 30 Best Counties to Live in North Carolina in data website Niche’s 2020 ranking.

Located in the south-central Piedmont region of North Carolina, Gaston County was formed from Lincoln County in 1846. It partially borders the state of South Carolina and contains 15 incorporated towns. Gaston County is 74th in terms of size of North Carolina’s 100 counties, measuring 364.5 square miles, but is the fourth-largest in terms of population, with 224,144 residents.

In terms of early industry, Gaston County housed three cotton mills, making it home to a booming textile industry. The county’s land was also rich in gold, lime, sulfur, tin, and iron, drawing mining activity. Although Gaston County is not as agriculturally rich as some neighboring counties, corn was abundant among early settlers and it was often used to make whiskey.

By 1870, Gaston was known as the “Banner Corn 28 | Invest: Charlotte 2020 | GASTON COUNTY

Whiskey County of Carolina,” with several distilleries contributing to the county’s economic growth.

Today, the county is an affordable and bustling mecca of restaurants and coffee shops, parks and lakes that is home to an above-average education system that helped it win an A-minus ranking on Niche for raising a family.

General economy Gaston County’s industrial and economic base is now far more diversified than it was during the 19th century, with the main economic drivers being manufacturing, healthcare and retail trade. The county benefits from its proximity to Charlotte Douglas International Airport, an extensive rail system and major seaports close by.

Among the city’s employers, Gaston County Schools leads with 3,900 employees, followed by CaroMont Health Corporation with 3,800 employees and Freightliner Corporation with 1,800. Unemployment stood at 3.8% in February 2020, almost on par with the 3.5% U.S. average for the same month, although the onslaught of the COVID-19 pandemic is likely to skewer numbers in the short term.

The Community continues to grow and attract ( )

GASTON COUNTY INTERVIEW

Ready to grow Advanced manufacturing, collaboration with academia among the county’s pillars moving forward

Kim Eagle County Manager – Gaston County How is Gaston County preparing for growth?

We have rebuilt our economy. We have been competitive as a region in recruiting advanced manufacturing facilities. Many companies bring associated divisional offices or technology centers with them. These companies manufacture products, but also need technically trained workers or access to research. We collaborate with institutions such as Belmont Abbey College and UNC Charlotte, and we have invested heavily in Gaston College for workforce training and preparedness.

What infrustructure projects are key to the county’s prosperity?

We have invested heavily in infrastructure, mainly water and sewer. We have streamlined those services to accommodate industrial and residential growth.

We have the ability to produce and treat a substantial amount of water and sewage without added capital expenditure. We are working more on the distribution end of these utilities.

We have close to $500 million worth of road and transit improvements that the state has committed to. The staff is working to modernize and widen I-85 to four lanes each way, which will be our most important asset in the region. We are also working to improve other highway interchanges, modernize bridges, and fix internal roads. This will give us more capacity to drive back and forth between cities and counties.

Why is Gaston County the best choice for businesses?

If you come to Charlotte, you may have 10 counties you want to look at and consider investing in. The challenge for Gaston County is to have the best product available for new residents and companies when they show up. You have to have diverse housing,

a quality school system, amenities such as healthcare, and a vibrant economy.

We have worked hard to provide a compelling package. We provide multiple housing opportunities, connections to major transportation arteries, and the lifestyle choices that people want. We want to be ready when development is ready. We are expanding our hospitals and healthcare system. On the business end, there several new business parks that are underway, aimed at logistics and manufacturing. There is a lot of infrastructure being put in for new business locations.

We are working hard on the comprehensive package of amenities for businesses to locate their business to Gaston County. We want to be a well-rounded answer to your business needs.” www.capitalanalyticsassociates.com

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Chris Peek President & CEO CaroMont Health

What new developments is CaroMont Health excited about?

The most significant development for CaroMont Health has been the announcement of our plans to build a second hospital in Belmont. The growth of both the health system and Gaston County has dictated the need for increased hospital services in the community.

The location of the new hospital will be adjacent to Belmont Abbey College, which is the only four-year institution in Gaston County. The location not only offers direct access to I-85, it will also allow for a very important educational partnership with the College’s future health science programs.

From the clinical perspective, earlier this year, surgeons at CaroMont Regional Medical Center performed the health system’s first Transcather Aortic Valve Replacement (TAVR) in the new, state-of-the-art hybrid operating room. This procedure and the opening of the hybrid OR puts our program on par with some of the top heart programs in the country, and certainly rivals or exceeds the achievements of others in our region.

What challenges is the hospital system likely to face as Gaston County continues to grow?

The challenges for health systems, large and small, are very similar, but it really comes down to access – how patients access their doctor, how geography and socioeconomic factors affect one’s ability and how we address the demand created by being part of one of the fastest-growing regions in the country. Healthcare and the delivery of it is changing every day. You have national retail companies, like Amazon and Apple, entering the healthcare arena with hopes of transforming the way patients interact with their doctors and how doctors receive health information from their patients. While we offer and are continuing to develop virtual tools that make healthcare more accessible, we will always be charged with operating the bricks and mortar needed to provide comprehensive outpatient care and advanced medicine in the hospital.

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( ) new industries, which can be attributed in part to the successful efforts of the Gaston County Economic Development Commission (EDC), which is dedicated to attracting and retaining business and increasing the prevalence of high-paying jobs. The EDC promotes the county and provides custom client solutions to businesses willing to expand or create new facilities in the county.

The EDC also provides support to existing industry with its Business Retention and Expansion Program (BRE). This is a critical component of support for the County’s local businesses. Through the EDC there is

The Business Retention and Expansion Program offers: • Expansion Assistance/Property Searches • Fast Track Permitting • Market Research Assistance • Employment and Workforce Recruitment Assistance • Training & Retraining – Community Connection • Business to Business Introductions • Networking Opportunities • Incentive Grant Program • Communication Assistance • Utility Assistance

coordination of many local partners to produce events such as Career Signing Day in the spring, Manufacturing Week in the fall, monthly Gaston County Association of Manufacturers’ meetings and career fairs. This is in addition to the customer service which the EDC provides to individual companies. Most recently Dymax Corporation announced it would buy 16 acres of land from KRM Development in the Gastonia Technology Park to build a manufacturing facility that will create 59 jobs with an average annual wage of $59,814 which is significantly higher than the present average annual wage of $41,739 as calculated by the North Carolina Department of Commerce Finance Center.

The highest paying industries are utilities, paying $63,514, followed by finance and insurance, paying $55,562 and real estate rental and leasing at $51,115. The lowest paying jobs are in the accommodation and food services sector, which pays $13,058, followed by arts, entertainment and recreation at $13,558 and retail trade at $20,426. The manufacturing sector provides more than 16,000 jobs, followed by healthcare and social assistance at over 12,000 jobs and just over 10,000 in

GASTON CONSTRUCTION COUNTY OVERVIEW

retail trade. Gaston County is also home to international companies, with 11 German companies leading the way, including LANXESS, Mann+Hummel and Daimler Trucks North America. Also in the county are Japan’s Firestone Fibers & Textiles and “K” Line America, and Switzerland’s Clariant Corporation.

Since 2012 the Gaston County Board of Commissioners has annually reauthorized the Small Business Investment Grant to help small businesses expand or establish in the county. Any new or existing business can qualify for the grant if they have made an investment in property that increases the business’ net taxable value between $10,000 and $1 million. The Standard Investment Grant program has supported existing and new industries, investing more than $1 million since 1999. These performance based local grants are equally applicable to new and existing businesses creating a long term environment for local government supporting businesses.

In terms of income, households in Gaston County have seen a steady increase since the economy emerged from the 2008-09 recession, with a steeper upward curve since 2014. In 2018, the latest available data, the median household income in the county stood at $52,798, up 5.6%% from 2017. Gaston County comes in below Lincoln County to the north and above Cleveland County to the west, which recorded 2018 median incomes of $62,963 and $42,728, respectively.

The county comes in below Mecklenburg County to the east, which records a median income of $64,509, but Mecklenburg is also home to Charlotte’s robust financial community. The U.S. real median household income is $63,179.

Gaston County is also improving in terms of income inequality as measured by the Gini coefficient, which was 0.473, lower than the national average of 0.479. the county’s population overall is on a growth path and is expected to increase 3.6% to 232,160 by 2025.

Manufacturing The biggest employer by sector in the county is manufacturing, creating 16,390 jobs. The county has attracted a variety of foreign firms, with a heavy presence of German manufacturing companies.

Precision tooling company Aichele arrived in 2015 with a $2 million investment and chemical company Lanxess was welcomed in 2011 with a $15 million investment. Other countries represented in Gaston County include Israel with Tosaf USA, Switzerland with Clariant Corporation, Belgium with Colortex, Indonesia with Conitex Sonoco, Spain with CTL Packaging and Australia with ERA Polymers. In total,

Patricia Skinner Former President Gaston College

What trends are emerging in the education segment?

One statewide trend we are seeing is the increase in part-time students. We are funded based on a full-time equivalent and as you get more part-time students, you still need the same student success resources.

That has been a big challenge for all community colleges. For the first time in 10 years, our enrollment has increased. We have worked hard on marketing, retention, working with public schools, and other efforts to attract and retain students.

How do you work with the business community to ensure their talent needs are met?

We have customized business programs. We work closely with our business community in Gaston and Lincoln counties to meet their needs. Because of the manufacturing in this area, we have done a lot in terms of customized training in those counties. We design courses based on company needs and are No. 2 in North Carolina in terms of customized business programs.

Companies also really appreciate our apprenticeship programs, which give our students the ability to get high-paying jobs in areas that are needed. We started with just a few companies in Lincoln County and that success attracted the interest of other companies.That’s how the program has grown.

The apprenticeships allow companies to get good employees while students get their education paid for. It’s a win-win for everyone.”

What is your key growth program?

We have a very strong nursing program. We are working with institutions such as UNC Greensboro, because we have many hospital nurses who have an associate’s degree and want to get a bachelor’s degree. We also invite them to come in and teach a couple of classes so we can help meet the needs of the hospitals. www.capitalanalyticsassociates.com

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GASTON COUNTY OVERVIEW

33 international companies are present in the county from 16 countries.

In May, Southern Business and Development named Gaston County “a location of choice” for Foreign Direct Investment (FDI) associated with advanced manufacturing facilities. In the last 25 years, over $370 million has been invested, creating around 1,000 jobs. Among those investments is the $30 million

by Dhollandia North America which constructed a 272,000-square-foot advanced manufacturing facility and North American corporate offices. The Belgium family owned company plans to create 200 jobs.

2020 will see Gaston County develop its longawaited Apple Creek Corporate Park, for which the county began acquiring land in 2018. The county acquired about 330 acres of a former golf course and other parcels to set up the industrial park to neighbor the existing 350-acre Gastonia Technology Park, which is nearly fully occupied. The first phase of this master planned industrial park project already has a very high level of interest from two companies. Both projects have already received approval from the Board of Commissioners for conveying property in the Apple Creek Corporate Center. Together they will create high-paying jobs that are above the county average, with some guaranteed to be as high as $75,000. If these projects come to fruition then the first phase of the Apple Creek Corporate Center will be completed. “I think the main sector growing in the region is technology. That is where the emphasis will be for this region, and with that comes the education component that is being addressed in Gaston County.

Workforce development is a key component of this. We are making sure that our employee base is prepared for

the next level of tech-based jobs that are coming to the area,” said Mount Holly City Manager Danny Jackson.

Gaston County’s strong manufacturing industry is led by the Gaston County Association of Manufacturers (GCAM), an association that meets once per month to discuss strategies and best practices. The meeting includes personnel from across the board, from engineers to managers to increase collaboration and encourage links with academia and government.

Gaston College and Gaston County Schools are both partners in the initiative.

Local industries are pitching in to combat the coronavirus. An engineer at Texlon Plastics created a mold for headbands and bottom reinforcements for medical face shields at the beginning of April. Since the mold was created, Texlon has been manufacturing 6,000 headbands and 6,000 reinforcements each day. Caro-Polymers Injection Molding in Bessemer city joined the efforts and both companies are part of Charlotte MEDI, an initiative formed in March to produce protective face shields for healthcare workers.

Parkdale Mills and Beverly Knits, both headquartered in Gastonia, are part of a group that also includes Winston-Salem-based HanesBrands, Fruit of the Loom, American Giant (which has extensive Carolinas ties), AST Sportswear, Sanmar, America Knits and Riegel Linen that are producing face masks.

Real estate By early 2020, real estate website Zillow was calling the housing market in Gaston County “hot,” and a seller’s market. The median home value stood at $177,803, up almost 6% in the last year. It has one of the lowest median property values of surrounding ( )

Market voices: County Leaders

Tracy Philbeck

Gaston County is where the smart money is. With easy access to one of county’s biggest airports, workforce development programs at Gaston College and a tremendous local healthcare system, we provide a perfect landing spot for businesses looking to expand, re-locate or start from scratch. Our county leadership has a vision for our community that builds upon our rapidly growing manufacturing sector.

Chairman Gaston County Commission

Quality of life has been a key focus for the city. We want to be connected to the Catawba River via a greenway system that we are developing. We will have around 9 miles of greenway development near the river and 200 acres have been preserved for eco-tourism, such as canoeing and kayaking. We will have a bridge near the Dutchman’s Creek greenway area that will help with development near the river. The greenway system will stretch from I-85 to Highway 16 once it is completed. Mount Holly is home to very active residents who like to swim, bike and kayak. We want to connect with nature, which is part of our logo. That is our niche in the Charlotte Metro Area.

Becky Smith Mayor Bessemer City

Bryan Hough

Mayor City of Mount Holly

We are happy with the growth we have experienced in Bessemer City in recent years. Last year we had over 50 residential homes that had been built and that far exceeds what a normal amount of new homes has been. We have had two major industrial businesses that have located here, one being from Israel and the other from Belgium. This is in additional to other established businesses that have made considerable additions to their structures. It might not sound like much to a large city, but for Bessemer City, we have been very pleased with this progress.

Our homeless population is a prevalent worry. Our view is that the solution lies in the coordination between our city and county governments and our faith and business communities. We are also looking at ways that our workforce programs can reach out to those experiencing homelessness in Gastonia. Most of the resources that this population cater to are located in our Downtown: the Salvation Army, the Department of Social Services, to name a few. As far as employment goes, our figures are healthy. We are getting people trained so they can perform well at their jobs and make the money they need to be productive.

Walker Reid

Mayor City of Gastonia

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GASTON COUNTY OVERVIEW

Robert Pressley President – Coldwell Banker Commercial MECA Our commercial brokerage market share in Gaston County is well north of 50 percent. We represent most of the largest employers there, have done work for most of the municipalities or with them, developed land, adaptively re-used old mills and buildings and have repositioned smaller buildings in pockets of mini-urban centers, such as Belmont, McAdenville, Cramerton, Lowell, Stanley and Gastonia, to name a few. Gaston County’s biggest hurdle is its lack of product and desperate need for more office and medical office space, industrial warehouse space, retail shopping space and mixed-use projects.

( ) counties, despite its proximity to the Charlotte metro area. This could be one reason why home ownership is 65.4%, above both the state and national averages. One of the biggest real estate trends is mixed use and Gaston County is jumping in with both feet. The city of Gastonia is the developer of a major project that broke ground in December, the Franklin Urban Sports and Entertainment (FUSE) District in Downtown Gastonia. The site will include a 5,000-seat, $26.2-million stadium, restaurants and office spaces in a true mixed-use development. The stadium has attracted a North Carolina craft-beer company to take advantage of thirsty sports fans. And $14.2 million has already been allocated to transform the old Trenton Mill into 81,862 square feet of residential space containing 84 apartments. Already, FUSE has attracted $75 million in private investment In retail, an ambitious plan was announced in November 2019 by Charlotte-based US Developments to acquire the two-story, 919,000-square foot Eastridge Mall in Gastonia and redesign the entire district. The developer entered into a formal MoU with the city of Gastonia late last year, with the city endorsing the plan to bring new mixed-use construction to the real estate surrounding the existing mall. US Developments wants to use the land currently in operation as a parking lot to construct a hotel, restaurants, multifamily housing and office space, a bowling alley and a movie theater.

Gaston Aquatics has also announced plans to build a $6 million, 35,000-square-foot aquatics center on the site.

The county also has the hotel sector well-covered. In June 2018, developers broke ground on a new Fairfield Inn & Suites by Marriott in Mount Holly. The project involves an investment of roughly $13 million, and about 60 people could work there once it’s complete.

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CaroMont Health has earmarked $300 million in capital projects and facility improvements in throughoutGaston County over the next five years.

GASTON COUNTY OVERVIEW

Transportation Traffic is among the biggest concerns for companies looking to relocate and also for the millennial generation that is shaping the work, live, play concept.

In short, no one wants to be stuck in traffic. For Gaston County, this is a key selling point. Commute times for residents average 24.5 minutes, lower than the U.S. average of 25.1 minutes, and just 1.46% of Gaston County residents have super-commutes that last 90 minutes or more. The preferred mode of transport is overwhelmingly the car, with the average household owning two cars. Over 85% reported they drive alone, with just 9.33% carpooling and 3.26% working from home. Just 0.7% walked to work, 0.3% used public transport and 0.05% traveled to work by bicycle.

Authorities have been making efforts to improve connectivity in Gaston County for many years,

particularly to take advantage of its position a stone’s throw from metro Charlotte. The city of Gastonia, along with the city of Lowell, are seeking $18.5 million in federally sponsored BUILD Discretionary Grant funds to complete the $37 million package needed to implement the Lineberger Connector project between the two communities. According to the city of Gastonia’s proposal, braiding the communities together through the overly congested I-85 exits 21 and 22 will unlock the development potential of approximately $900 million in project value for the Greater Gaston area. The grant application has been rejected three times so far, but the county is making a fourth push for financing in 2020.

Infrastructure To help private developers and continue attracting new business to the county, the public sector is getting involved in its own ambitious infrastructure project. Starting in 2024 with an investment of $262.8 million, it will widen a 10-mile segment on I-85 from US321 in Gastonia to NC273 in Mount Holly from six lanes to eight. The Charlotte Area Transit System also approved plans in 2019 to extend its light rail service across the Catawba River to Gaston County by 2030. These are all efforts to expand Gaston County’s tourism and entertainment offerings and take advantage of its position as one of Charlotte metro’s closest neighbors.

The community is already well-served with rail infrastructure, with the Piedmont & Northern Railway (PNRW) operating over 13 miles of track from Gastonia to Mount Holly. Progressive Railroad purchased and renovated the former Weyerhauser plant creating an intermodal and transload facility on the 14 acre site in Gastonia. The city provided Progressive Railroad with support to renovate the 191,000 square foot plant built in 1954. Although Gaston County is close to Charlotte Douglas International Airport, the city of Gastonia is considering extending the Gastonia Municipal Airport’s runway, opening up more opportunities to accommodate a broader range of aviation activities to take off and land there. To improve connectivity even more, a feasibility study is being conducted to explore adding an additional Catawba River bridge crossing near the massive River District development just across the river in Mecklenburg County. According to infrastructure titans Hugh McColl, former CEO of Bank of America, and Johnny Harris, CEO of Lincoln Harris, Gaston County needs these links to the Charlotte metro area to ensure its continued growth. www.capitalanalyticsassociates.com

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GASTON COUNTY OVERVIEW

Gaston County’s cultural, artistic and outdoor offerings make it one of the most dynamic counties for families looking to move in the region.

Healthcare The most recent County Health Rankings & Roadmaps Report ranked Gaston No. 66 out of 100 North Carolina counties in the state in terms of overall health outcomes. The Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute found Gaston ranks a vastly improved 56th in the health factors category based on behaviors, socioeconomic issues and environment and 37th in clinical care, which measures factors like access to insurance, preventive care and the ratio of healthcare providers to patients. But the picture has been improving. In 2017, Gaston was in 71st place and last year it was No. 67. Development of medical facilities is helping the outlook for the county. Recently, CaroMont Health announced a $325 million investment in Gaston County over several facilities. CaroMont Regional Medical Center-Belmont is expected to open by 2023 and will create 300 jobs by 2026, the health organization says. The Belmont hospital will have an 36 | Invest: Charlotte 2020 | GASTON COUNTY

emergency department, a 66-bed inpatient unit for admission or observation, a labor and delivery unit, operating rooms and surgical capabilities as well as diagnostic services with a laboratory and imaging.

The project is expected to generate $750 million in economic impact. Gaston County’s healthcare industry is also adapting to coronavirus concerns. CaroMont is offering telehealth and virtual doctor visits in the face of the outbreak. It announced the service on April 6 and as of April 8, more than 450 people had already used the new technology. Other healthcare providers in the area, including Foot and Ankle Specialists of the Mid-Atlantic, have similar offerings.

Education In 2017, universities in Gaston County awarded 1,614 degrees, with 313 Bachelor’s degrees being awarded.

The majority of the degrees were awarded to women, while just 561 were awarded to men. The most popular degree course was general business administration and

GASTON COUNTY OVERVIEW

serve students statewide. “Education has been one of our focuses,” Steve D’Avria, CEO of the Gaston Regional Chamber told Invest:, talking about efforts to support the growing tech sector. “One approach is through an early college program that allows students to get their associates degree in high school. Also, Gaston College has the Center for Advanced Manufacturing, and they work on how to make that sector more automated.

We’re actually also offering classes through Gaston College right here in our chamber offices.”

Arts and culture The Gaston Arts Council, established in 1979, is a nonprofit umbrella organization for the arts that encourages, promotes and supports broad-ranged cultural and educational programs. Programs include Artist Corner, Art for the Heart and Lit Up and the agency also offers grants for artists and arts organizations. Gaston’s arts and culture scene is one of the reasons why Belmont city was recognized as one of the “Coolest Suburbs in America” by lifestyle website Apartment Therapy. Gaston County also has 12 natural heritage sites of state or regional significance and 19 parks. There is no shortage of activities for those who love the outdoors. Between the cities of Kings Mountain and Gastonia lies the Crowders Mountain peak.

management with 28.1% of grads, followed by general education with 12.8% and elementary education and teaching at 7.35%. That year, the university with the largest number of graduating students was Gaston College, awarding 70% of total degrees, followed by Belmont Abbey College and Paul Mitchell the SchoolGastonia, which awarded 158 degrees. The median cost of private education in the county is $18,500. In 2018, Gaston County passed a referendum for a 25-cent sales tax alongside a $250-million school bond to finance construction of three new schools and provide repairs and renovations to existing schools. Gaston County has two top public schools in the region in terms of career and college readiness. Gaston County schools were also among several North Carolina K-12 programs that will split $810,000 in grant funding from the Duke Energy Foundation, Duke announced in April. Gaston County students will also benefit from the $20,000 granted to Education NC, $80,000 to FIRST North Carolina and $50,000 to the NC Agricultural — three programs that

Looking ahead Overall, Gaston County is in a strong economic position, with Moody’s awarding its $20.8 million Limited Obligation Bonds an Aa3 rating as a result of strengthened residential income and wealth levels, as well as a decline in the county’s debt levels. But it warned that a downgrade may be possible should the county experience a substantial contraction in the tax base and wealth levels, material declines in reserves, significant escalation in fixed costs related to debt burdens or non-appropriation for the county’s lease obligation. Entering into a period of difficulty like that imposed by the Covid-19 pandemic, Gaston County will be greatly served by its well-diversified economy.

Its businesses are resilient and already adapting to the new normal.

Capital Analytics would like to thank Gaston County for its contributions in compiling this chapter.

To learn more, visit their website at: www.gastongov.com

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