The Good News Report

[atlrvr]

As far as Duke/Progress, this is a big blow to Raleigh. Probably more damaging to them than losing Wachovia was to Charlotte, since:

A) It was the only Fortune 500 in Raleigh

B) Many Wachovia business lines didn't exist at Wells, so there was less product overlap. I'm not sure there is much Progress does, that Duke doesn't already do, so probably more redundencies.

This is good for Charlotte, as it should drive vendors to consolidate here, and make Charlotte the clear choice for electricity related companies to locate if they are looking for a SE US location. ABB which is building a power line plant in Huntersville but their US HQ is located in Cary, would probably have picked Charlotte for their HQ if this merger was done a few years ago.

This is also good for the state, because it should lower the total cost of electricity to industrial users. This should make the state more attractive to large manufacturing facilities and server farms to locate here.

I don't know much about the Progress CEO to know if he will be as amibitious on renewable energy as Rogers, so hopefully the new CEO will continue to make Duke a leader among utitiles in that regard. Progress is a strong community contributer to Raleigh, so I except that the new CEO will be a strong player in Charlotte. I also hope the new CEO will buy into the vision to lead Charlotte to be the hub of the energy sector and actively recruit businesses here.

[atlrvr]

Another piece of good news today. Two accounting firms are merging and moving their HQ to Charlotte.

According to the Observer, Dixon Hughes Goodman LLP, will have more than 1,700 employees in 30 offices in 11 states and Washington, D.C. The firm said it will be the largest certified public accounting firm based in the Southern U.S. and the 13th largest in the nation. Dixon is based in High Point and Goodman is in Richmond.

This is great news as well, that 2 accounting firms with neither HQed in Charlotte, would pick Charlotte as their combined HQ. It's always good to see financial services expand here.

Dixon Hughes local office is in SouthPark and they I believe are expanding at their current location. I'd love to see them locate downtown.

EDIT: Highlighting the importance of our Fortune 500 HQs in Charlotte, the following quote was in the Observer's story on the Dixon/Goodman merger.

Accounting firms Dixon Hughes PLLC and Goodman & Company LLP said today they are merging March 1 and the headquarters will be in Charlotte.

The combined firm, which will be known as Dixon Hughes Goodman LLP, will have more than 1,700 employees in 30 offices in 11 states and Washington, D.C. The firm said it will be the largest certified public accounting firm based in the Southern U.S. and the 13th largest in the nation.

Matt Snow, managing partner for Dixon Hughes in the Charlotte region, said the city was a "natural choice" as headquarters, noting it is home to diverse industries and Fortune 500 companies.

Read more: http://www.charlotteobserver.com/2011/01/10/1969545/accounting-firms-merging-hq-in.html##ixzz1AeG608Pz

[krazeeboi]

I just hate the fact that it seems that at times, Charlotte prospers at the expense of other NC cities. Oh well...

[cityboi]

It appears is though Charlotte is absorbing all the big companies away from other North Carolina cities. First Charlotte took Wachovia away from Winston-Salem (now Charlotte lost Wachovia) and now Progress Energy away from Raleigh. Well at least BB&T is still headquartered in Winston-Salem. Winston-Salem is North Carolina's second largest financial center. These companies don't care about geographic boundaries. I think this is a blow to Raleigh. They just recently built that Progress Energy tower in Raleigh but I guess it was only a matter of time. I personally don't think Duke Energy should have a monopoly. It will only lead to higher rates for customers. This is great for Charlotte but it sucks for Raleigh.

I didn't know Progress Energy was the only Fortune 500 Company in Raleigh. If thats true Raleigh and Durham will be the only big cities in NC without a fortune 500 company. We know about Charlotte's Fortune 500 companies. Winston-Salem has BB&T and RJ Reynolds. Greensboro has VF Corp which is the world's largest apparel company known for brands such as Wrangler, Lee, Nautica, Eastpak, Jansport, Ella Moss, John Varvatos ect. Greensboro had two fortune 500 companies when it had Jefferson-Pilot until it was bought out by Lincoln Financial. But the center of insurances operations for Lincoln Financial is based in Greensboro so that wasn't a total loss. But yeah this is a bummer for Raleigh.

Fortune 500 companies headquarters in North Carolina (there are others in NC on the Fortune 1,000 list):

Clearly Charlotte leads NC in the number of Fortune 500 companies. Over half of the Fortune 500 companies in NC are in Charlotte.

rank in NC

1 Bank of America Corp. (Charlotte)

2 Lowe's (Charlotte)

4 Duke Energy (Charlotte)

5 BB&T Corp. (Winston-Salem)

6 Progress Energy (just aquired by Duke Energy)

7 Reynolds American/RJR (Winston-Salem)

8 Pantry (Sanford)

9 VF Corp (Greensboro)

10 Sonic Automotive (Charlotte)

11 Goodrich (Charlotte)

12 Family Dollar Stores (Matthews-Charlotte area)

13 SPX (Charlotte)

Edited January 10, 2011 by cityboi

[atlrvr]

I will actually argue that in this case it will lead to lower rates due to the highly regulated environment of utilities.

First there is no overlap for their regulated business, so there is already a monopoly. The state regulators decide what is an acceptable rate based on costs allocated to producing power for each customer within the state. By merging companies and reducing costs (laying off people) and in theory some efficiencies gained in transmissions and capacity management, the cost of producing power in NC will go down, and this will lead to regulators forcing Duke to cut rates.

Now the part I said about layoffs isn't a good side affect, but for the average citizen, this should be a net positive.

[bchris02]

I just hate the fact that it seems that at times, Charlotte prospers at the expense of other NC cities. Oh well...

Raleigh barely had a recession compared to Charlotte. I say that since 2008, Raleigh has fared much better economically. Charlotte needs things like this to fully recover from its recession. Its unfortunate its at the expense of other NC cities though.

[kermit]

I don't want to take away from the big news of the day but there is some other (potentially) good news:

General Motors Co. is revisiting the idea of buying back part of its former GMAC auto loan business....

Six months ago Ally turned down GM's $5 billion offer for its wholesale business.

The WSJ article also says that Ally is preparing for an IPO, possibly this year, which would allow the treasury to sell its stake in the bank.

While none of this produces immediate returns for Charlotte is does suggest that "Charlotte's other bank" is on track to become a viable public company again.

-----------

Hopefully the Duke merger will eventually replace a few hundred of the downtown executive-level jobs we lost with Wachovia.

[aceboogie]

I definitely don't doubt that the new Duke CEO will continue with philanthropic activities in both metros. I agree with what someone said concerning the recession and Charlotte and Raleigh. Raleigh had faired much better than Charlotte so far concerning the recession and Charlotte needed this to bounce back. I'm sure Raleigh will be fine, it's ego may be hurt, but Raleigh will bounce back. I also wonder, with the new accountig firm that is HQed here, will that be or have the potential to become a F500 company?

[SmellyCat]

I definitely don't doubt that the new Duke CEO will continue with philanthropic activities in both metros. I agree with what someone said concerning the recession and Charlotte and Raleigh. Raleigh had faired much better than Charlotte so far concerning the recession and Charlotte needed this to bounce back. I'm sure Raleigh will be fine, it's ego may be hurt, but Raleigh will bounce back. I also wonder, with the new accountig firm that is HQed here, will that be or have the potential to become a F500 company?

I also think Raleigh will be fine - fortunately it doesn't seem to have the boom/bust type economy Charlotte has had over the years with its reliance on the banks and financial sector.

I've noticed in my 7 years living in Charlotte that the cities within NC fairly peacefully coexist compared to other states, such as the competition between LA and San Fran or in Florida, for example. The only sort of anger I see between the two is the constant Charlotte argument - whether real or paranoia - that Raleigh has much better roads and transportation access/infrastructure due to it being the state capital.

[atlrvr]

I definitely don't doubt that the new Duke CEO will continue with philanthropic activities in both metros. I agree with what someone said concerning the recession and Charlotte and Raleigh. Raleigh had faired much better than Charlotte so far concerning the recession and Charlotte needed this to bounce back. I'm sure Raleigh will be fine, it's ego may be hurt, but Raleigh will bounce back. I also wonder, with the new accountig firm that is HQed here, will that be or have the potential to become a F500 company?

Dixon Hughes (and most accounting firms in the country) won't likely ever even be a Fortune 1000 company. The combined income of the two merging firms is only $280MM, about 1/4 of what it would take to be a Fortune 1000 company.

However, they will employ a lot of people at above average salaries. Charlotte employment is currently 125, and is expected to grow to 150-200 people in the next couple of years according to a Dixon Hughes spokesperson.

[Niner National]

I personally don't think Duke Energy should have a monopoly. It will only lead to higher rates for customers. This is great for Charlotte but it sucks for Raleigh.

Nothing has changed. Progress had a monopoly in their service area, Duke in theirs. NC is a regulated state, so they do not control their energy prices anyway. Any rate change, whether and increase or decrease, has to be approved by state regulators.

If NC ever deregulates its energy market, then you should worry about rampant rate increases, but for now, no need to worry.

[HopHead]

Governor Purdue will be in uptown Charlotte today for a large jobs announcement. It's supposed to be the largest since the one for Siemens that resulted in 800+ new jobs for the area. So, it's fair to assume it will be in the hundreds. No clues on who it's for. Press conference coming at 2:45 this afternoon.

Edited January 13, 2011 by dbull75

[rjp212]

Seems to be the annoucement will be of the opening of offices for Capgemini, a French consulting firm. Looks to be 550 jobs over the next three years. Good to see both our energy and financial sectors beginning to prosper again.

[kermit]

Seems to be the annoucement will be of the opening of offices for Capgemini, a French consulting firm. Looks to be 550 jobs over the next three years. Good to see both our energy and financial sectors beginning to prosper again.

What a great surprise. Really nice to see our financial sector continuing to diversify beyond retail banking.

Hopefully they will fill some downtown office space -- any predictions on where?

EDIT: Between this and Areva (and the general growth of nuclear expertise thanks to the Duke-Progress merger) perhaps we are getting closer to a CLT-Paris flight.... oops, never mind.

Edited January 13, 2011 by kermit

[tozmervo]

What a great surprise. Really nice to see our financial sector continuing to diversify beyond retail banking.

Hopefully they will fill some downtown office space -- any predictions on where?

EDIT: Between this and Areva (and the general growth of nuclear expertise thanks to the Duke-Progress merger) perhaps we are getting closer to a CLT-Paris flight....

There's already a CLT-CDG flight, it started last may (I think; someone else can correct me)

[15895]

There's already a CLT-CDG flight, it started last may (I think; someone else can correct me)

So far Charlotte's European flights are to London, Paris, Madrid, Dublin Ireland, Rome, Munich, and 2X Frankfurt in the Summer. US will continue to expand European operations at Charlotte over the following years. But yes, Charlotte does have a flight to Paris.

[HopHead]

What a great surprise. Really nice to see our financial sector continuing to diversify beyond retail banking.

Hopefully they will fill some downtown office space -- any predictions on where?

EDIT: Between this and Areva (and the general growth of nuclear expertise thanks to the Duke-Progress merger) perhaps we are getting closer to a CLT-Paris flight....

There already is a non-stop flight from here to Paris via US Airways.

Capgemini is a great coupe too. Not only because these are decent paying jobs (average $62k/year) that serves the financial sector, but because this is a global company. They have offices in Australia, China, Dubai, Africa, etc.

Edited January 13, 2011 by dbull75

[kermit]

According to the CBJ the office should be somewhere in center city:

Capgemini hasn’t finalized its office site. But Managing Director Roy Stansbury says the company is targeting uptown Charlotte for the office and would occupy about 50,000 square feet when the operation is completely built out.

http://www.bizjournals.com/charlotte/news/2011/01/13/perdue-to-announce-new-jobs-in-charlotte.html

I guess there are quite a few 50k sqft blocks....

[49er]

With North American Financial buying Capital Bank, what does Charlotte gain in terms of banking significance? The articles I have read state that Capital will remained headquartered in Raleigh and that other banks NAF bought will be merged into the Capital brand.

[Urbanity]

^^^ I echo the question! N&O always reports it as a Raleigh boon while O reports it as a CLT company.

[atlrvr]

I think the answer is its too soon to tell. Branch banking appears to be HQ in Raleigh, but the corporate parent company is based in Charlotte. My guess is the majority of non-branch jobs will be in Raleigh with probably a couple dozen in Charlotte. However, they have only made about 60% of their purchases, so depending on who/what they buy next, there could be changes.

[Gard]

According to this article, the holding company itself will eventually be merged into Capital bank and be HQ'ed in Raleigh:

Capital Bank initially would become a subsidiary of NAFH, although the plan is for the two to eventually merge into a single holding company under the Capital name. For regulatory purposes, NAFH is listed as being based in Florida, but it would essentially be headquartered in Raleigh when the Capital deal closes. Taylor and Marshall are based in Charlotte and plan to remain there.

Read more: http://www.newsobserver.com/2010/11/05/782217/capital-bank-draws-a-buyer.html#ixzz1BZNGIgu9

Interesting how two executives are staying in Charlotte, though I'm guessing they will be working out of that area, much in the same way some executives do for some companies.

On another note, some shareholders have filed a lawsuit to block the Progress-Duke merger and working on making it a class-action...

[HopHead]

^Shareholder lawsuits are a dime a dozen in any merger. Some Wachovia shareholders did the same with the Wells merger. It'll go to court, and some judge will likely give the shareholders some sort of restitution or throw it out all together. It's highly unlikely the Duke/Progress merger would be prevented.

Edited January 20, 2011 by dbull75

[Urbanity]

According to this article, the holding company itself will eventually be merged into Capital bank and be HQ'ed in Raleigh:

Read more: http://www.newsobser...l#ixzz1BZNGIgu9

Interesting how two executives are staying in Charlotte, though I'm guessing they will be working out of that area, much in the same way some executives do for some companies.

The two executives remaining in Charlotte are part of NAFH - the Holding company which is registered in FL but headquarters in Charlotte. Thus while Capital Bank will remain HC'd in Raleigh, the company that owns it (North American Financial Holdings) is in Charlotte. This brings us back to the original question at hand of wondering what this all means for CLT.

[Urbanity]

I'm really surprised that none of you posted this yet. Perhaps y'all celebrating at the location on Trade?

Charlotte firm to buy Hooters