State can still play to its strengths: economic-development experts say exploiting North Carolina's advantages will help it stay at the forefront.

• Position: Discussion

North Carolina's economy is on a roll and can stay that way. That's the opinion of a panel of economic-development experts brought together by Winston-Salem-based law firm Womble Carlyle Sandridge & Rice PLLC: Ronnie Bryant, president and CEO of the Charlotte Regional Partnership; Tony Copeland, assistant secretary of commerce for business development and trade; Scott Millar, past president of the North Carolina Economic Developers Association and president of the Catawba County Economic Development Corp.; Rhett Weiss, CEO of Los Altos, Calif.-based site-selection consultant DealTek Ltd.; and John Hunter, a Womble Carlyle partner who specializes in economic development. The discussion--moderated by Arthur O. Murray, BUSINESS NORTH CAROLINA managing editor for special projects--was held at the law firm's Charlotte office.

How does the state balance recruiting with helping business already here?

Copeland: The state must maintain a business-friendly climate where we have a globally competitive cost of doing business and a well-educated, trainable work force. It also means maintaining roads and airports. There has been a revision in the legislature of what was known as the William S. Lee tax credit. It helps existing industry expand, and it is not a discretionary incentive but something that they're entitled to.

Bryant: Within this region, probably 70% of new jobs are created by existing businesses, not by the new industries that we bring in. The state that can find a way to address the concerns of the existing-business environment without being fiscally irresponsible will be the state that will be competitive and really position itself to retain a very strong existing-industry base.

Millar: I'll tell you the value of a good existing-industry program at the local level. We've had one in place for a number of years. Three out of seven visits this year have led to job creation or investment. That's a pretty good hit rate. Earlier this week, we had a new project in that wanted to do employer interviews. Had we not had an established relationship with existing industries, it would have been much more difficult to have those interviews set up and probably the word wouldn't have been as positive.

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Weiss: A typical business would rather retain existing customers because it's cheaper than finding new customers. On the other hand, if you don't find new customers, your business will probably die. It's much the same with this or any state. As a matter of policy, the state has to treat both fairly. If the state is going to try to give an attractive deal to bring in a new business, that same deal under the same circumstances should be made available to an existing business.

Are there consequences?

Weiss: The state has to be always mindful that other states are trying to attract those same customers and what those other states are doing to attract them. And if there's a better practice someplace else, adopt it.

What makes North Carolina a good place for a newcomer to do business?

Weiss: There are a few things, including some that aren't unique to North Carolina. One is relative stability. Companies like predictability in a place they're going to do business. It's not just where's the flat-out cheapest place to go. Most of my decisions haven't been the cheapest. It's more risk allocation.

Explain that.

Weiss: It's the risk of going into an area and then finding it's not what we thought or finding a year later it changes or five years later it changes or it's a place that every other year there's a change in government policy or the taxes are always going up or this kind of thing. North Carolina, from the outside looking in, is a predictable place to do business.

What other factors matter?

Weiss: I can go on down the list: Right-to-work state. Good infrastructure. For the companies that are interested in telecom and connectivity, there is a reasonable amount of optical fiber. Charlotte's become not the biggest but a reasonably big fiber area along the East Coast. The airports. The location along the Eastern Seaboard. Reasonably good access to...