Winston-Salem, N.C., July 27, 2006 -- Business activity is expanding at an impressive rate for Piedmont Triad bioscience companies, according to an economic index of the region.
Other economic indicators paint a similarly strong picture of growth in the Triad bioscience sector.
Dr. Don Jud, author of the new economic analysis, Triad Bioscience Index, said the region rated an 83.4 in the second quarter of 2006. Values above 50 indicate expansion of business activity in the sector as compared to the previous quarter. "A value of 83.4 indicates very strong growth," said Dr. Jud, professor emeritus of economics at the University of North Carolina at Greensboro.
The index, containing assessments from a panel of area executives, was developed by the Office of Business and Economic Research at the University of North Carolina at Greensboro.
Executive Forum members were also asked for their opinions on the region's taxes, labor supply and general business climate -- key factors in the formation and expansion of bioscience firms in the Triad. A majority of the panelists ranked the Triad either "very attractive" or "about average" on each, said Dr. Andy Brod, director of the Office of Business and Economic Research.
Employment in the Triad bioscience sector totaled 4,278 in the second quarter, up 13.9 percent from the same period last year. That increase parallels the strong assessment of the Forum, the researchers said. There are 101 bioscience companies in the Triad -- a 20 percent increase since 2000.
"The economic data monitored in this index show that our efforts to create jobs and economic value for the community around biotechnology are yielding results...," said Gwyn Riddick, director of the North Carolina Biotechnology Center's Piedmont Triad Office. He credited area leaders' implementation of 21 targeted economic development strategies, developed 18 months ago, for much of the improvement. "We look forward to continued growth in this sector," he said.
Stock-market trends also point to a strong outlook for Triad bioscience. The Triad Bioscience Stock Index, constructed by Dr. Jud from 11 publicly traded Triad bioscience companies and weighted by Triad employment, has risen 8.9 percent in the last 12 months. In contrast, a national index of biotechnology companies maintained by the brokerage firm Merrill Lynch is down 8 percent for the 12 months and 10.2 percent since the first of the year.
"We are pleased to see strong growth indicators for biotech in the Triad, said Gayle Anderson, president of the Winston-Salem Chamber of Commerce and spokesperson for Chamber 3 (the Chambers of Commerce of Winston-Salem, High Point, and Greensboro)." "This is an important segment of the knowledge-based economy our region is building."
The Triad Bioscience Index is a project of the Assessment/Inventory Project Team of the Advisory Committee for Biotechnology in the Piedmont Triad. The initiative is guided by the Biotechnology Center's Piedmont Triad Office with funding assistance by Chamber3.
The Office of Business and Economic Research is part of the Bryan School of Business and Economics at the University of North Carolina at Greensboro. The Office of Business and Economic Research performs high-quality applied research in economic development and business policy, drawing on the expertise of the faculty of the Bryan School.
For more information, contact:
Dr. G. Donald Jud, UNC-Greensboro, 336-908-1634
Dr. Andrew C. Brod, UNC-Greensboro, 336-334-4867
Gwyn Riddick, North Carolina Biotechnology Center, 336-725-6671
