By Melissa Willett

After years of a declining job market, North Carolina's future is looking bright again, Commerce Secretary Jim Fain told a group of business leaders Monday during a question-and-answer session.

Over grits and eggs at the Haymont Grill and Steak House, Fain said the state has climbed back to where it was in 2001, with about 3.9 million jobs and a 4.4 percent unemployment rate.
 
Manufacturing jobs in Fayetteville and throughout the state have been replaced by jobs in education, health-care services, financial services, and professional and business services.

"Our economy as we know - tobacco, furniture and textiles -  is pretty well gone," said state Rep. Margaret Dickson, a Fayetteville Democrat who introduced Fain. "We're in a time of transition."

For business leaders, understanding the transition will aid in growth. They help shape the economy because they are the ones who provide jobs or recruit new companies.

In the next three years, Fayetteville's economy will be shaped by the Base Closure and Realignment changes. Those changes are expected to bring an estimated 20,000 people to the area by 2011.

"Fayetteville is in a good position with BRAC," Fain said.

The city has an important asset in the Defense Security Technology Accelerator, a business incubator for military contractors.

The Cumberland County Business Council opened the accelerator last year to help bring those types of jobs to the area.

"When I was driving in this morning, I realized that this is an important urban hub for North Carolina," Fain said.

On a state level, the Commerce Department is trying to attract larger companies that bring in many more jobs.  And sometimes incentives help, Fain said.

"Creating a knowledge-based economy, those companies gather around urban areas," Fain said. "That's good for Fayetteville but not so good for say, Chadbourn."

The state has a program to help smaller communities, he said. The 21st CenturyCommunities program helps towns assess what they have to offer and help develop economic plans.

"It takes pragmatic thinking to support the viability and health of a smaller
community," Fain said. "Take it community by community. For example, if they've freed up a textile mill, it might be good to bring in another business. But since those buildings aren't as modern as most factories need, maybe divide it up for retailers."

Perhaps the most important advice Fain offered is for communities to invest in their schools and assets.  "Quality of life is perhaps the most important factor," he said. "That's how people make decisions in a knowledge-based economy."