Randolph and Chatham Counties: A Growing Economy Fueled by Industry

In November, President Tom Barkin and Regional Executive Matt Martin met with local community and business leaders in North Carolina's Randolph and Chatham counties to gain a fuller understanding of the economic strengths and opportunities facing the region as part of the Bank's Community Conversations program.

Nestled in the Piedmont region of North Carolina, Randolph and Chatham counties offer a blend of rural charm, scenic beauty and a growing economy. These counties, each with its unique character, attract visitors and residents alike for their outdoor activities, agricultural history and evolving communities.

However, recent developments, including the construction of several large-scale manufacturing plants, are reshaping the local economy and providing new opportunities for growth.

Randolph County, historically known for its furniture and textile manufacturing, has seen a shift as traditional industries have declined over the past few decades. Yet, the county has managed to adapt and diversify. With new sectors like automotive manufacturing, food processing and distribution increasingly playing a key role in its economic landscape. The county's proximity to major transportation routes like Interstate 73/74 and U.S. Highway 220 has bolstered its appeal to businesses.

Economic Transition and Manufacturing Growth

The most significant economic development in the county in recent years has been the announcement of the Toyota manufacturing plant. Toyota's $13.9 billion investment to build a facility for producing batteries for hybrid and electric vehicles marks a major turning point for Randolph County's economy. The plant is expected to create thousands of direct and indirect jobs, not only in the factory itself but also in the broader supply chain, including part suppliers, logistics and service providers. This large-scale investment could diversify Randolph's industrial base even further, transitioning the county into a hub for advanced manufacturing and green technologies.

During this Community Conversation, the Richmond Fed team met with executives from Toyota and learned they have been happy with their ability to find workers, who tend to live within a 60-mile radius of Randolph County - the majority coming from the Greensboro area. So far, Toyota has hired a major portion of the announced 5,000-plus employees they expect to hire. Executives also noted that a college degree is not a requirement for employees, and many new employees have been hired right out of high school. In addition, Toyota will provide on-site childcare. The childcare center will be outsourced and will be able to accommodate up to 318 children.

Randolph and Chatham are also home to several other big-name manufacturing plants, including a new Wolfspeed chip plant currently under construction, as well as Energizer and Pemmco.

However, with the expected surge in population and economic activity, both counties will need to address infrastructure challenges, such as housing shortages, transportation upgrades and public services, to keep pace with the rapid growth driven by the Toyota plant.

Regional Synergy: Workforce Development

Randolph and Chatham counties are already seeing an increase in collaboration between local governments, educational institutions and business leaders. This synergy is evident in initiatives aimed at workforce development, where Randolph Community College and Central Carolina Community College (which serves Chatham County) are working with other community colleges in the region to provide technical training and certifications aligned with the needs of the growing automotive and manufacturing sectors.

The Richmond Fed team met with Randolph and Central Carolina Community Colleges to get a sense of how they're partnering with local businesses to accommodate their workforce development needs. Toyota and other local industry leaders, like Wolfspeed, are building strong partnerships with local community colleges, relying on their help to prepare their employees for their workforce needs. Randolph and Central Carolina Community Colleges play a pivotal role in this, offering specialized programs in advanced manufacturing, robotics and green technology, which will help train the workforce required for high-tech jobs in the automotive sector.

One struggle local community colleges are having is finding qualified instructors to teach these highly specialized courses. One interesting solution: Wolfspeed developed their own lab on-site and provides the instructors to teach the courses to students.

Challenges and Opportunities: Balancing Growth and Sustainability

As Randolph and Chatham counties experience this period of economic expansion, they must navigate the challenges that come with rapid growth. Housing affordability, infrastructure improvements and the preservation of the region's rural character will require careful planning and investment. Both counties will need to work together to ensure that the growth spurred by new industry is sustainable and benefits all residents, including those in more rural or underserved parts of the region.

However, the opportunity for Randolph and Chatham counties to become a leading center for advanced manufacturing and green technologies is immense. By capitalizing on their proximity to major cities, their existing industrial strengths and the growing demand for a skilled workforce, these counties can forge a path toward economic prosperity, all while maintaining the quality of life that has made them attractive to residents and businesses alike.

The arrival of the Toyota plant is more than just a boon for Randolph County - it represents a new chapter for both Randolph and Chatham counties as they work together to create a thriving, interconnected regional economy.

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