Writer: Eleana Teran
3 min read January 2024 — The Triangle, recognized for its dynamic economy, has become a hub of activity with companies and individuals moving to the region from across the country. The metro area’s population in 2024 has experienced a 2.39% increase year-over-year, ranking it second among the 20 Fastest-Growing US Metro Areas from 2010 to 2024. This influx has sparked a significant increase in economic growth, transforming the local market’s landscape.
The changing landscape is evident in the Capital Analytics Business Sentiment Survey (CABSS) for the last quarter of 2023, which captured the perspectives of public and private sector leaders in the U.S. Southern markets. Despite a nationwide decrease in labor demand, easing inflation, and stable interest rates, the survey observed an increase in positive attitudes toward the regional economy. Between the third and fourth quarters of 2023, the percentage of respondents viewing their area’s economy positively increased from 69% to 75%, with an average regional economy strength score of 3.97 out of 5. This optimism was supported by the fact that 89% of businesses anticipate growth in earnings over the next six months. The results point to a strong economic outlook.
The professional services sector is navigating these new territories with a keen eye on technological and cybersecurity trends, with AI’s role expanding to include automated responses and predictive analytics. Furthermore, the impending introduction of the American Data Privacy and Protection Act reflects the increasing urgency of national data and privacy standards.
At the same time, the professional and business service sector has been significantly impacted by America’s labor shortage. As of September 2024, even if every unemployed person with experience in the professional services industry were employed, only 44% of the existing job vacancies would be filled, highlighting the critical need for talent acquisition and retention strategies in the current labor market.
In this context of growth, technological evolution, regulatory adaptation, and shifts in the workforce, Invest: engaged with regional leaders to understand how they are navigating the trends that are shaping the regional landscape.
Mark Yusko, CEO and chief investment officer of Morgan Creek Capital Management: There has been a rapid acceleration of growth in the RTP region as people have relocated to the area from all across the country. Several companies have announced plans to build regional presences here and that economic flywheel is fully engaged. Morgan Creek is an asset management and venture capital business, so like many service businesses, we are asset-light and run a relatively lean operation. While there is certainly a trend in the region of new workers flocking here due to the work-from-home phenomenon, we do not need to grow staffing at the same rate as we grow assets. We can manage the money just as effectively if we have $100 million or $500 million in a fund with the same number of people. While the population growth trend is certainly positive for RTP, we are not perhaps the best reflection of that trend.
Rob Ragsdale, Head of Institutional Relationships at Balentine: The regulatory environment is always shifting, and as a Fiduciary under the oversight of the SEC, we are constantly trying to stay abreast of what is relevant to keep our clients’ interests from an industry perspective at the forefront. We are also working to stay as current as possible, as technology complicates many things while also bringing opportunity. There is a definite, and indeed warranted, increase and focus on the areas of cybersecurity and fraud. In addition, there is also an increase in regulatory rule making by the current SEC administration which can impact us by way of marketing efforts, investing in private funds, vendor management, and so forth. As part of our risk management framework, our Chief Compliance Officer and Head of Information Technology are key, and it is critically important to have strong, independent compliance partners to help navigate this evolving landscape.
Richard Bryant, CEO of Capital Investment Companies: Technology, particularly artificial intelligence, is critical these days. As a mid-sized company, it’s essential to employ the best technology we can access to avoid falling behind. We’ve managed to do this by partnering with larger entities like our clearing operation, Pershing, owned by Bank of New York, which is continually upgrading its technology. This helps level the playing field for intermediate firms like ours. We’re now as technologically equipped, if not more so, than bigger competitors, who may find it harder to pivot quickly.
Vendors now recognize this need and are creating tech stacks suitable for the mid-market, allowing us to compete fairly. The rapid spread of AI is unprecedented, making headlines and integrating into daily life, from writing speeches to completing term papers. Despite this, we know it can’t replace the human element in our industry, which is fundamentally about people and relationships. Technology is a tool, but our business is built on personal interaction, especially when addressing client concerns about the economy and the housing market.
Ford Robertson, Raleigh office managing partner at Kilpatrick Townsend & Stockton LLP: Attracting top talent is always a priority, but also a challenge, and we’ve implemented several strategies to address this. Firstly, we aim to offer competitive compensation to ensure we attract highly skilled lawyers. We also emphasize the opportunity to work on high-level, often high-profile matters, alongside talented colleagues and sophisticated clients. Understanding the importance of a supportive work environment, we focus on crafting individualized work arrangements, including extended leaves for life events and flexible work options. Our firm’s presence in dynamic markets across the country, including both coasts, Texas, and Chicago, is also a significant draw for potential hires. We leverage these locations as an attractive aspect of working with us, offering access to intellectually challenging work in desirable places.
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