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The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm

The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm. Monday, July 21, 2014 Curtis Wright and Thomas Vass Discuss: How The General Electric Aviation News of a $30 Billion In New Orders Affects The Cape Fear Regional Economy.

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The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm

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  1. The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm • Monday, July 21, 2014 • Curtis Wright and Thomas Vass Discuss: How The General Electric Aviation News of a $30 Billion In New Orders Affects The Cape Fear Regional Economy.

  2. News Review From Last Week: GE Aviation Announces $30 Billion in New Orders • Employment making rotating parts for these engines at Castle Hayne has grown to 615. • Economists call this employment the direct effect, meaning that the jobs are directly in the factory. • The company invested more than $17 million in machinery and equipment at the plant in 2013. • The capital investment caused the creation of about 30 new jobs.

  3. The Amount of Capital Required To Create One New Job At GE Is Around $560,000 • The capital investment at General Electric Aviation had an even bigger impact in the smaller service and supply companies in the Cape Fear region. • Economists call this secondary job growth the indirect effect.

  4. GE Estimates The Indirect Effect In All of North Carolina at Around $300,000,000 Per Year • GE directly employs about 1500 workers in the whole state who provide goods and services to the Castle Hayne plant. • The indirect effect of the $300 million in spending is primarily in small industrial manufacturing supply firms. • The current indirect effect of GE purchasing on jobs in North Carolina would be about 1000 jobs.

  5. The Main Economic Strategy For Cape Fear Is To Increase The Amount of Dollars Spent By GE On Small Firms Located In The 7 Cape Fear Counties. • Economists call that type of industrial spending the Aviation and Aeronautics Cluster • The Aviation Cluster has seven types of member companies. • The aviation cluster is not as strong as it could be because small firms do not have the capital they need to expand.

  6. Many Of These Member Firms Are Located Near Fayetteville • Search, detection, & navigation instruments • Parts for space vehicles & guided missiles • Guided missile & space vehicle manf • Aircraft engine & engine parts manf • Other aircraft parts & equip Aerospace • Aircraft manf

  7. The Private Sector Economic Goal Is To Provide Capital To The Smaller Firms In Cape Fear So That They Can Sell Supplies To General Electric Aviation • The amount of capital required by the small firms is not as great as $500,000 per job at General Electric. • Each small firm in the Cape Fear Aviation cluster would need about $2 million to expand. • The total regional capital required to fund small firm growth in Cape Fear aviation is about $50 million, every 3 years. • Crowdfunding is the best source for providing this capital.

  8. Accredited Investor Crowdfunding Is One Method of Targeting Capital To Small Technology Firms In the Cape Fear Region • One goal of the new Cape Fear Regional Capital Exchange professional business association is to create the business networks that help small companies in the aviation cluster connect to capital. • Break: When We Come Back, more about business networks in Cape Fear

  9. 13th Annual North Carolina Defense and Economic Development Trade Show • Fayetteville, NC on August 5, 2014. • Selected major prime contractors will conduct open sessions with small businesses.

  10. Prime Contractors Are The Pathway For Smaller Companies To Sell Into the Military Cluster • Electronics & Systems Integration • Law Enforcement & Private Security Technologies • Cyber Security & Intelligence • Tactical Medical, Patient Simulation, Combat Training & Evacuation Care • Unmanned Aerial Systems.

  11. In Order To Qualify To Sell Into The Military Cluster, The Small Firms Need Capital • There are about 100 small technology firms in the Cape Fear Region that could qualify to sell into the cluster. • Each firm would need about $1 million in growth capital to expand operations to meet qualification criteria. • A capital fund of about $100 million would be required every 3 years to fund economic growth in the Cape Fear Military Cluster.

  12. The Best Technology Stock This Week: Cass Information Systems (CASS) • Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company provides transportation invoice rating, payment, auditing, accounting, and transportation information services. • For More Information About Professional Portfolio Management of Technology Stocks, Contact Thomas Vass, portfolio manager, tvass@privatecapitalmarket.com for questions. • Investment Disclosure: The past performance of an investment is no guarantee of future performance. All investments bear risk of loss of principal invested. There are no guarantees related to investing. Some of the stocks mentioned in this news release may be owned in the personal or business accounts of the investment advisor. For information about investment fees and advisory services, please download and read a copy of the investment advisor’s ADV Part II Disclosure Document.

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