What’s measured This indicator notes the number of business establishments by industry for each county and for the region for 2000 through 2005. A business may have more than one physical location, each of which counts as a “business establishment.” The numbers are based on data from the Bureau of Labor Statistics, the North Carolina Employment Security Commission and the South Carolina Employment Security Commission. The industry categories are broken down into the standard two-digit sector codes of the North American Industry Classification System (NAICS). Why it’s measured The number of establishments in each industry helps provide a picture of the region’s economy. Changes in these data over time may suggest changes in the region’s economic structure and health. The number of establishments by industry also may be a good tool to look at the Charlotte region’s strengths and weaknesses compared to other regions. All else being equal, a higher number of establishments suggests a stronger economy. Indicator results In 2005, the region was home to 61,741 business establishments. The industry with the highest number of establishments was “Retail trade,” with 8,214. Other industries with a large number of establishments include “Construction” and “Professional and technical services.” From 2000 through 2005, industries that most increased their share of the total number of establishments were “Health care and social assistance” and “Professional and technical services.” Among the region’s counties, Mecklenburg was home to some 45.1 percent of all establishments, with 27,785. York County followed, with 4,404 establishments. Mecklenburg’s share of the total number of establishments in 2005 was down slightly from previous years, while other counties, notably Cabarrus, Iredell, Union and York, have increased their share of the total number of establishments. Evaluation The region’s number of business establishments remained fairly consistent from 2000 through 2005. This indicates a degree of stability in the region’s economy. Even while the number of establishments stayed constant, the composition of those establishments by industry has changed. The number of manufacturing establishments has fallen as industries such as health care have seen their numbers rise. This is consistent with other data that show the region’s economy moving toward service-based industry. Examining the data by county confirms Mecklenburg County’s dominance as the center of the region’s economy. The figures also reveal, however, that counties contiguous to Mecklenburg are gaining in shares of the region’s business establishments, while Mecklenburg’s and the more rural counties’ shares are declining. Connections The number of business establishments connects to the area’s housing and demographic growth. If businesses are strong but the economy is not growing, people will move to find jobs elsewhere and housing will soon decline. There can even be a chain of events: the number of jobs falls precipitously, the housing market plummets and banks foreclose on mortgages, leading to a further downturn in the housing and mortgage field. The types of jobs are important as well. If an industry begins to fail, and the economic life of the region is built on that one industry, the area can be devastated. Because the Charlotte region has many different industries, it fared much better during the recession of 2001-2002 and with the latest problems in the housing sector than did many other areas around the country.
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