Raleigh-Durham leaders adjust to market uncertainty, show positive business sentiment
Writer: Pablo Marquez
July 2024 — The Raleigh/Durham region, known as the Triangle, has climbed the ranks of U.S. metro areas to become a vibrant technology and advanced manufacturing corridor. The region’s schools and universities attract the world’s leading talent that support the business community, while public and private sector entities experience sustainable growth despite economic headwinds, as indicated in the latest Capital Analytics Business Sentiment Survey (CABSS).
Business leaders in the Triangle region maintain a positive outlook, with a rolling average economic sentiment score of 3.98 (out of 5), slightly lower than the overall average of 4.06, according to data through 2Q24.
According to the 2024 Brookings Metro Monitor, Raleigh-Cary ranked No. 2 in terms of growth from 2012 through 2022 for very large metro areas with at least 1 million residents, beating out Charlotte-Concord-Gastonia at No. 3. Durham-Chapel Hill ranked No. 13 in the list of metro areas with a population between 500,000 and 1 million.
This growth can be attributed to an influx of semiconductor, clean energy, and biotechnology manufacturers, among other businesses, moving to the area over the past decade, which has spurred significant capital investment, creating research and development opportunities and new jobs.
In addition, Raleigh and Durham have once again been named as two of the best cities in the United States to start a business, according to a WalletHub report. Raleigh ranked No. 11 among the Best Large Cities to Start a Business, while Durham ranked in the Top 10.
With continuous growth, concerns have arisen over residential and commercial real estate prices that may affect the region’s cost of living.
For business leaders in the Triangle, strategies for the current economic environment have focused on solidifying customer relationships and diversifying market sectors. Below, hear how some of the leading companies are managing market uncertainty.
Sean Hayes, General Manager, Dell Technologies
In response to the economic environment, our focus has been on executing and sustaining customer relationships, while closely managing our operations and costs. We’ve been effective in controlling expenses and rigorously measuring our internal productivity and efficiency, particularly in North Carolina.
A key aspect of our strategy is ensuring we meet our customers’ needs. As a factory leader, I emphasize close alignment with our sales and account management teams. Our goal is to deliver exactly what our customers want when they want it. We also pay close attention to any customer experience issues, including delivery processes and installation setups, to ensure top-notch service.
Mike Benford, Vice President – Project Development, Samet Corporation
Our primary strategy has been to diversify our market sectors. Given the challenges in traditional markets like multifamily, where deals are harder to close due to interest rates and inflation, diversification has been crucial to fill revenue gaps. Looking ahead, the next 12 to 18 months will be challenging for the construction industry. Indicators like the Architectural Billing Index, which has been negative for several months, suggest upcoming challenges. Our approach involves understanding and planning for these delays and revenue gaps, ensuring we are well-positioned to handle them.
Drew Hardin, Director of Operations, Monteith Construction
Monteith maintains a well-diversified portfolio of public and private sector work, as well as across industries and asset classes, so our team has a good perspective of how interest rates are influencing development. Over the past year, yes, public projects have moved forward into construction at a steadier rate. And, while we have seen a slight decrease in private sector work—either projects being canceled in full or put on pause—many of our private partners are moving forward with projects with slight changes from the original plan that reflect their modified capital stack.
John Grinnell, Founder & CEO, Grinnell Leadership & Organizational Development
Our company hasn’t experienced significant fluctuations in business. We’ve built strong, long-term relationships with key customers that help us stay stable. Typically, clients seek our services during downturns to fine-tune and prepare for a rebound, making strategic decisions and training their teams for new roles. In Raleigh-Durham, the influx of people and businesses like Google, Amazon, and Microsoft brings growth and stability. This environment, coupled with North Carolina’s business-friendly climate, makes it an ideal location economically.
