TUESDAY, May 6, 2008 — Understanding the nation's latest wave of immigrants, embracing the global economy and putting to rest some enduring myths are essential for social and economic success, both here in Lee County and throughout the state.

That was the assessment of Axel Lluch, director of the governor's Office of Hispanic/Latino Affairs, when he visited Sanford last week to discuss "Latinos en Carolina del Norte." About 125 people attended the quarterly luncheon sponsored by the Committee of 100.

Dismissing one of those myths, Lluch countered conventional wisdom about Latinos being a drain on the state's economy.

Citing a 2006 statewide economic study co-authored by Dr. James H. Johnson, who addressed the Committee of 100 several years ago, Lluch said Latinos provide a $9.2 billion boost to the North Carolina economy, though their cost in the state budget is estimated at just $61 million.

Locally, the group combines for $115.1 million in buying power, and that presents a prime opportunity for local business.

When they can't find what they need at home, residents of every county leave to purchase goods elsewhere, taking their money to nearby communities. It's a phenomenon economists call "leakage," and suggests that more money can be retained in the community when businesses provide what consumers can't already find locally.

Lee County loses about $16.5 million in Latino sales each year, or roughly 15 percent of their total buying power, when they purchase goods elsewhere. The loss is far less than the 23 percent in neighboring Harnett, but doesn't approach the miniscule 2.4 percent in Guilford.

Understanding Latino culture and consumer preferences, Lluch believes, can help create economic vitality in counties like Lee. One way is to form partnerships with the growing number of Latino businesses, banks, media, chambers of commerce and civic groups.

Understanding Latinos

Overcoming cultural barriers, Lluch said, is important to success — and that begins with understanding how Latinos are similar to and different from other local groups.

On one hand, deeply-rooted local values, including family and faith, are one thing that attracted many Latinos to Lee County, making it the third-largest "rural magnet county" for Latinos in North Carolina. "You're a strong community with some of the same values we share," said Lluch, a native of Puerto Rico.

On the other hand, some different cultural norms can create misunderstanding. What he calls "flexible time management" or "Latino time" is one. "If the reception is 7 to 9 p.m., announce it as six, so they're there by seven," he said, making his point with humor. "And you never place an ending time."

Making small talk before getting down to business is a well-respected tradition, Lluch said, and you can expect Latinos generally to be more expressive and make less eye contact (out of respect) than many other groups.

Embracing Globalism

With a global marketplace — not just in North America, but everywhere — forging relationships with Latinos and Central American nations will become more critical than ever. Already, Mexico is the United States' second largest trading partner, behind Canada, and trade with nations throughout the hemisphere is essential.

Lluch, who traveled extensively as a business executive before taking his current post, is worried that some Americans' reluctance to accept the existing global economy could hurt the nation's competitiveness in the future.

China has made forays into the west, with trade agreements in Cuba and some South American countries, and many products can no longer be described as "foreign" or "domestic." To make the point, Lluch cited a newspaper article showing how one Toyota model assembled in the United States has more domestic components than a Chevrolet.

"If you don't embrace it," Lluch warned, "it's going to happen anyway."

Some Quick Takes

Here are a few other notes from the presentation:

* Latinos in North Carolina grew from 77,000 to 655,810 from 1990 to 2007 and comprise an estimated 7.2 percent of the population, according to U.S. Census figures.

* About 55 percent of U.S. Latinos are second- or third-generation, native-born U.S. Citizens. In 2004, 45 percent were unauthorized, or non-legal, residents.

* Most immigrants, including Latinos, receive less welfare or social benefits than native-born citizens.

* North Carolina Latinos are younger and healthier than non-Latinos.

* North Carolina Latinos had a total after-tax income of $8.3 billion in 2004. About 20 percent was sent to Latin America, saved or used  for interest payments.

* North Carolina had about 9,047 Latino-owned businesses, combining for $1.8 billion in sales.

For a copy of the Lluch presentation slides, in a 624K PDF file, click here.

Note: The terms "Hispanic" and "Latino" were used interchangeably by Lluch during his presentation. To avoid confusion, only the term "Latino" was used in this story.

Coming in June

Chris William, senior executive consultant for Wachovia Securities and host of the "Carolina Business Review" television show, will be featured when the Committee of 100 holds its summer luncheon next month at Chef Paul's Cafe and Catering in Sanford.

Though the meeting date has not yet been set, William is expected to discuss the current state of business in North Carolina and what we're doing to attract vibrant, new companies.