Spring 2005

Dell Incentives: The Bucks Started at the Bryan School

When the state of North Carolina rolled out a $242 million red carpet for Dell Inc., the world’s largest computer manufacturer, Forsyth and Guilford officials proffered supplemental incentive packages – $37 million and $12 million, respectively – to entice the corporation to their counties. These localities put millions of dollars on the line because they knew the economic impact Dell would have on their communities, and they knew that information because of the Bryan School of Business and Economics’ Office of Business and Economic Research.

Crucial Evidence: Dell’s Impact on the Community

Both Guilford and Forsyth counties contracted with the office headed by Dr. Andrew Brod to find out just what the economic benefit of landing Dell would be.

With that kind of money on the table – tens-of-millions of dollars – local officials had to be sure of the impact Dell would have on the area. Brod’s analysis found that the computer manufacturer would result in between 3,000 and 4,100 jobs in the first year alone and account for between $3 and $4 billion dollars in the Triad economy over five years. If that were the case, according to Brod, Dell would account for only slightly less in the Triad economy than the International Home Furnishings Market.

That sort of intelligence was crucial for local officials.

Nate DeGraff wrote in the Dec. 1, 2004 News & Record that, “Guilford officials crafted their [incentives package] proposal after getting help from Andy Brod, a UNCG economist who studied the project’s potential economic impact.”

Justin Catanoso, editor of The Business Journal of the Triad, wrote in the Dec. 13, 2004 edition that, “Brod’s calculations regarding financial investment and jobs created, as both a direct and indirect result of Dell, were a crucial bit of evidence that elected officials in both communities pored over before approving enormous incentive packages.”

More than Just Dell: Other Work, Other Topics

The analysis of Dell’s location – and subsequently the largest incentive package in North Carolina and Triad history – isn’t the only work done by the office or by Bryan School faculty. Research from the Bryan School has helped direct economic forces throughout state and local organizations.

Locally, Brod’s study of the impact of the UNCG found the university contributes $588 million to the local economy every year. Similar studies have been completed by The Office of Business and Economic Research examining the economic impact of Thomasville Medical Center, Norfolk State University in Virginia and the Baptist State Convention of North Carolina.

And the office isn’t the only economic study research performed by the Bryan School or by Bryan School faculty. Professor Emeritus Dr. Don Jud compiles employment and real estate data and maintains the monthly Triad Business Index, which analyzes state and local economic indicators, such as productivity and employment. Dr. Chris Ruhm has received national attention for his studies of drinking and health habits in economic downturns. And Dr. Dan Rosenbaum has also received national attention for his work with salary caps among National Basketball Association players.

As a result, the legacy of the Bryan School isn’t just the infusion of highly trained, highly qualified business students into the community, but also a legacy of knowledge and understanding of local and national economic situations.