(ethereal music) - [Narrator] Major support for Carolina Business Review provided by Colonial Life, providing benefits to employees to help them protect their family their finances and their futures.

High Point University, the Premier Life Skills University focused on preparing students for the world as it is going to be.

And Sonoco, a global manufacturer of consumer and industrial packaging products and provider of packaging services with more than 300 operations in 35 countries.

- The Secretary of Commerce in North and South Carolina is an important job not just because it's a cabinet level position in the States, but because it is the place that comes together for business, industry, education and everything related.

I'm Chris William and welcome again to the most widely watched and longest running source of Carolina Business Policy and Public Affairs seen each week across North and South Carolina for more than 30 years now.

Thank you for supporting this dialogue and this program.

In a moment, we will meet the new Secretary of Commerce for the Old North State, Machelle Baker Sanders joins us and we'll find out what her plan is post-pandemic stay with us.

(ethereal music) - [Narrator] Gratefully acknowledging support by Martin Marietta, a leading provider of natural resource-based building materials providing the foundation upon which our communities improve and grow.

BlueCross BlueShield of South Carolina, an independent licensee of the BlueCross and BlueShield Association.

Visit us at SouthCarolinaBlues.com.

The Duke Endowment, a private foundation enriching communities in the Carolinas through higher education, healthcare, rural churches and children's services.

(ethereal music) On this edition of Carolina Business Review, an executive profile featuring Machelle Baker Sanders, North Carolina's Secretary of Commerce.

(ethereal music) - So joining us from her office in the State Capitol of North Carolina, Raleigh is the Secretary of Commerce madam secretary, welcome to the program and thank you for joining us.

- Thank you for having me.

- Priorities, February of 2021 when you were named by the Governor to the cabinet, as Secretary of Commerce, was seemingly years ago now probably feels like it, so your honor, what is the difference between what your priorities were taking office and what your priorities are here in the fall of the same year?

- So the priorities taken off were to continue to focus on creating good paying jobs, it was also focusing on our post-pandemic recovery and applying lessons that we have learned and are learning throughout the pandemic and workforce development was a priority.

The other priority was for commerce to play a bigger role in the policy area.

So as far as advancing and advocating for business friendly policies those priorities remain the same, I believe what is different is the additional attention and the additional focus that we're playing in those areas.

One, since the pandemic we've recognized that there was a disproportionate impact of COVID-19 on people of color, black, Hispanic, Latin Mex and Native Americans we also realized that there was some unique challenges in our rural communities and that were faced with the pandemic and continue to be that way.

So we have applied and adopted and adapted in a way that we are more intentional about our equitable and inclusive practices with economic development.

So that is a change and a difference in how we are prioritizing our work.

Secondly, I mentioned advocating and advancing policies for business-friendly climate.

Post the pandemic and recognizing we are still going through the pandemic Chris, I've recognized that, but during this time we recognize that, what matters to employees, it matters that they continue to advocate and want childcare services, but we saw a greater importance and the pandemic just underscored that importance of provided affordable childcare services, allowing for paid parental leave or paid leave to take care of our elderly parents and grandparents.

We realized that those perks, if you will, or those offerings are actually things that people really have benefited from having during the pandemic and we'd like to see companies adapt and adopt practices in that way.

It's also a part of our economic development as we continue to bring forward progressive companies who care about the quality of life of their employees.

And so as an advocate and as a person and agency at the table, our conversations have surely changed based on our recent experience of the pandemic and also based on the experiences that I've had since being appointed to this role in February.

- Secretary Sanders, we're gonna unpack hopefully some more broader policy, but let's talk about diversity, equity, inclusion for a moment because it shows up in not just a lot of your comments, but those that have worked with you prior to this appointment have talked about you, that being a passion of yours, does DEI, does diversity, equity, inclusion, does it have roots in a policy statewide?

Will commerce is this a new initiative to commerce or is this a larger initiative that commerce has had in the past, and are you leading other agencies down this road?

- What I can tell you Chris is that, diversity, equity, inclusion has always been a foundational and fundamental to governor Cooper's leadership, the way he leads, the policies that he puts forward and the expectations of the executive branch is that we are representing the residents of this state and the residents of this state is a very diverse population of people.

And so in order to better meet the needs of the people and the residents of the state, which is well over 10 and 1/2 million, it's important that we embrace diversity, equity and inclusion as a strength.

And I believe that is a strength for the state.

As far as commerce, I have highlighted and raise this as a priority because I realize in order for us to remain competitive, in order for us to be on the cutting edge and of innovation, in order for us to support our small businesses and understand the needs of those small businesses, one, we must see things through a lens of equity and inclusion.

I know what it's like to be excluded, and that's not a fun place to be, I also know what it's like to work in an environment where inclusion is an enabler for meeting business objectives.

And so with my experience in the life science industry, everything that I have worked on in my career I have done has been through an equity and inclusion lens, realizing that the life science industry serves diverse patients and diverse people to meet many needs.

And so in order to get innovation, in order to remain competitive and in order to serve the needs of the public, it's extremely important that we embrace, highlight and integrate DEI and everything we did.

- Do you feel like DEI is not as emotional or is emotionally charged as it was even last summer and the second part of that question, does that allow businesses to now approach the table when it comes to DEI in more of a, I don't wanna say cold or calculating, but more of a scientific or clinical nature to see how it is, is this exactly how you explained it?

- Well, since last summer, what I have seen is a more intentional and intentional focus and an intentional attempt to make DEI a part of just operating and doing business.

It is important to companies, companies that I have spoken with are specifically not only asking about that skill diverse talent that we have, but they're also asking about the communities.

They're also asking about how the population's fair in North Carolina, how inclusive are we with our economic attributes and assets with every resident of the state, or are we not?

So it matters to companies, but I believe what I've seen since last summer is people being more intentional and direct and candid about DEI, diversity, equity and inclusion.

There's plenty of data out there for example, that shows that companies that have greater diversity profit companies that have greater gender diversity, racial and ethnic diversity, as well as diversity of thought are the most profitable companies.

So there is data and there is information there we've seen more than a few examples.

But I believe that it's a priority and should be a priority for the state and for the work we do because it's the right thing to do.

It is the right thing to do.

- In addition to that, what is bubbled up?

So commerce is proposing a Business Pulse Survey, I'm assuming so you really get an idea of what is important what's bubbled up in that Business Pulse Survey is one or two important things that maybe you wouldn't have expected.

- Well, we've recently put out this survey, a survey recently, what's bubbled up or is bubbling up, is there definitely is a tension and a need for talent.

And that talent we know comes in all shapes, forms from different locations, so diversity matters.

In order for us to meet the labor supply it is going to take not just some people or some skills, certain degrees, it's gonna take all of us to meet the labor dispose, labor supply needs.

And in order to do that, it's also gonna take all of us working in a way that we are developing and identifying the potential for our workforce and labor force.

So that is surely one need.

The other thing that I believe we will see from this survey is there is a great desire and a spirit of entrepreneurship in North Carolina.

And that entrepreneurship is definitely gonna highlight our innovation economy, but it's also going to require us to identify ways that we can better support and build an ecosystem for the success of entrepreneurs in small businesses in North Carolina.

I believe that that is gonna bubble up out of this survey.

- As a product, as a child of rural North Carolina Beaufort county Down East in North Carolina, obviously rural has gotta be close and dear to your heart ma'am so the idea that urban versus rural and it's talked about in both North and South Carolina, are they different challenges, is rural greater challenge?

And I'm speaking when it comes to workforce development or finding workers in slowing the churn of those that keep going in and out of jobs.

- Right, you're right I am from Eastern North Carolina, the beautiful small town of Belhaven North Carolina.

Rural North Carolina does have unique challenges.

The opportunities, the availability of resources are lacking in many towns in rural North Carolina.

I would say what is not like in rural North Carolina, is that can do spirit, that raw source that really differentiates how we live, who we are and the traits and character of the person is I believe uniquely defined by your experiences in rural North Carolina.

80% of North Carolina is rural so yes we do have some unique challenges, whether that is access to healthcare, whether that is housing or whether that is access to, the education systems.

And so I mentioned that because those same challenges appear and are prevalent in urban North Carolina, but I believe access to the resources and the attention for those resources and support is far greater in the urban areas I believe than in rural North Carolina.

I'm sitting in Downtown Raleigh, I can walk across the street and go to one of the greatest science museums, probably in the world, right here in Downtown Raleigh.

For people in Belhaven and other rural communities, you have to drive, right?

To get to that type of resource.

You also have to have the mobility and the funds and the finances and all the things that can get you there.

And in some ways you have to be exposed to this world of science and what it can offer which would even prompt you to think that I wanna go to the science museum and see what's going on in there.

But just because those things are not readily assessable in rural North Carolina as they are here does not mean that the potential for workforce development great and expansive workforce development, the potential for business locations and relocations the potential for the role of North Carolinians to be beneficiaries of this booming economy that we have, that's still possible.

What it takes, I believe is strong visionary leadership the willingness to accept the differences that are present in rural North Carolina and a strong commitment to equity and inclusion.

And I believe that that commitment comes through investment.

Investment in access to healthcare for all investment to quality education regardless of your zip code.

And that investment to the many challenges and problems that many people across our state encounter on a daily basis but most of all the belief and I am a testimonial of that, that anything is possible regardless where you are born, where you're raised or what your socioeconomic status is.

- Madam secretary, you talk about a lot of the issues that I hear the Secretary of Commerce in South Carolina, who was Bobby Hitt, as you well know, two new secretaries of commerce, both yourself and secretary Harry Lightsey in South Carolina did the state's makeups are very similar cousins in fact, a familial in fact, are there opportunities now with two new commerce bosses and are looking forward to this new reality that we have in post COVID?

Is there an opportunity for North and South Carolina together on developmental issues?

- There is an opportunity, like sisters and brothers, I guess, I believe secretary Lightsey and I we're probably competitive on many fronts, but I also believe that he and I will collaborate where possible and make sure that our region is doing well and make sure that we're able to attract the best things for the people in our region.

I think, as far as economic development goes, we see a greater attention put on regional economic development, whether that's in the state or abroad.

And you mentioned secretary Lightsey I've not had the pleasure of meeting him yet, but, we are scheduled to get together very soon we have an appointment on our calendars and we will get together soon.

I look forward to learning from him, and hopefully him learning from me, what's going on in North Carolina and importantly, I look forward to collaborate as we both try to work for the best interest and well-being of those in our state.

Now, while we continue to compete?

We surely will.

Will I continue to believe and know that North Carolina is the best place for people to live, to work and to play?

Yes and I'm sure secretary Lightsey believes the same, but I'm looking forward to the collaborative spirit that we will develop and can develop.

- Ma'am you have a very storied background in manufacturing, in leadership and in pharmaceutical and bio science, both at Biogen, at Purdue Pharma and large pharma.

And now the big issue of course is not gonna be lost on you is supply chain disruption in global supply chain disruption.

Now that you're in a different position now that you are the point person for the old north state, and it's about development and about all the manufacturers in both states, but certainly in North Carolina, how do you bring to bear that experience you had around manufacturing and supply chain to make it work and to smooth that out?

- Yeah, that experience in the life science sector has been very well for me.

You mentioned Biogen and most recently at Biogen, I was vice president of manufacturing and general manager for their largest manufacturing facility in their network, which is based in RTP.

And so supply chain and having an uninterrupted supply of quality products for patients was our primary objective.

I understand from my experience the complexities of supply chain of the limitations and the constraints that can occur and do occur with supply chain, while problem-solving through some of those potential disruptions in our supply chain at Biogen, that experience has really carried over into this experience.

I can tell you this, I am a strong advocate and working in ways to not only attract companies tier, but to build supply chain tier.

I understand the importance in the control of the destiny that we will have if we can bring a greater number of those assets in a supply chain within North Carolina and within the United States, of course, this much bigger than North Carolina.

For example, offshore wind is an area that North Carolina is focused on, it is a priority of the governor and for all the right reasons, we want a cleaner, a more sustainable and better environment and energy for the world.

And it's important that we try to bring about the supply chain that supports that offshore wind area to North Carolina and to our surrounding states.

There's over a $100 billion possible economic growth and job creation just in that area.

(indistinct) - Apologies for the interruption, are the barriers to develop that alternate energy less than they were even a couple of years ago?

- I believe the barriers are less because I believe that people including legislators and others realize the importance to our environment and to our economy and I also believe because of this pandemic and because of what we're experiencing now in the supply chain of many products and services that we all know and understand firsthand the importance of having our supply chains more tightly controlled, and actually based here in the United States.

We're seeing it Chris, largely with the semiconductor industry, right?

And the chip industry, we need our supply chain and we need our companies we need to win in that space in the United States.

And so in order to do that, that is gonna take a keen eye, the creativity of many minds and the expertise of supply chain experts to really figure it out, map that out and secure for the United States the products and services that we need.

- Well, let's tease out this whole idea around education.

Certainly at this point in time in the Carolina's history and even in North Carolina, as the General Assembly bangs through what the budget's going to look like, and what is it is historic surplus and those on the side of education are arguing for more dollars.

Plus Leandro is in the mix and the compelling by the courts, all of these things together, madam secretary, where do you think is the best opportunity for commerce to embrace and enhance what education needs to be now and should be as part of the model?

- I believe the best pace for commerce to embrace and enhance that is through our workforce development and workforce solutions.

I also believe that it is to continue to advocate for investments in pre-K through post-secondary education so the advocacy that we can play, we know that people choose where they live most of the time because of the school systems.

Most people want their children to have excellent education experience or quality education and that sometimes depends where you live.

And so North Carolina must continue to invest in education.

Let's continue to invest in our teacher pay those who are educating our students, and to invest smartly, wisely and in a way that the outcomes will be demonstrated through the measures and metrics that have been identified but most importantly, that those outcomes connect to empowerment and quality of life.

Education is a key indicator of the quality of life that people will or will not have.

And today, if we are not investing in education in a thoughtful way, and when I say education, I'm including the entire system and the people in those systems, if we're not investing in that we will not remain competitive and we will not be successful in addressing society's diverse and difficult challenges.

And those approaches that it's gonna take to get to solutions.

- And I don't wanna put words in your mouth ma'am but you feel like everyone in the education debates in policy and process feels that way though, right?

And then why is it so hard to get to maybe a funded model or a policy that makes sense for North Carolina?

And we have one minute, I'm sorry ma'am, it's not fair-- - I do feel that way, but it's when we began to put our money with the words that we're speaking that matters.

And so if we talk about this, then our budget should clearly show, for example, the state budgets should clearly show that this is a priority, this is important and this matters.

The governor's budget clearly shows that and I'm hoping that the final budget that the legislature and the governor approved actually highlights and underscores that this is an investment we're willing to put forward as an... And we can't invest in everything, but that this is a priority not only is it worth investing, but one that's gonna have a long-term effect on the sustainability and the growth and the trajectory of the state.

- That'll have to be the last word.

Madam, thank you and we know you're busy thanks for the investing your time you spent with us and best of luck going forward, congratulations.

- Thank you very much.

- [Narrator] Major funding for Carolina Business Review provided by High Point University, Martin Marietta, Colonial Life, The Duke Endowment, Sonoco BlueCross BlueShield Of South Carolina and by viewers like you, thank you.

(ethereal music)