At a time when companies are clamoring for workers while trying to navigate a treacherous economy, no state is meeting their needs more effectively than North Carolina. The Tar Heel State is America’s Top State for Business in CNBC’s annual competitiveness study.
It is the second consecutive year at the top for North Carolina — a rare feat in the CNBC study, which launched in 2007. Business and the economy in the state have been on a tear since the pandemic, and the state has scarcely looked back.
In 2023 alone, the state has amassed a trophy case full of economic development wins, ranging from a $130 million investment by Bosch to expand its power tool manufacturing facility in Lincolnton, to a $458 million biomanufacturing facility to be built in Greensboro by cellular therapeutics company ProKidney, and even a $58 million turkey production facility in Goldsboro by poultry breeder Select Genetics.
The projects come on top of major wins last year, including Vietnamese electric vehicle manufacturer VinFast announcing it will build its first North American plant in the state, and Durham-based semiconductor materials manufacturer Wolfspeed expanding its operations there.
Last month, Apple filed applications to begin work on its $1 billion facility in the famed Research Triangle Park announced in 2021, with 700,000 square feet of office space in its initial phase. It is Apple’s first hub on the East Coast.
A common thread through all the projects is people.
“Our talented, educated workers are the foundation of our economic success,” said Gov. Roy Cooper, a Democrat, in his state of the state address in March.
The numbers bear that out. North Carolina ranks first in the all-important Workforce category of CNBC’s study. In particular, the state is a leader in attracting and retaining talent across a range of industries, said Josh Wright, an executive vice president with labor market analytics firm Lightcast, which provided some of the data for the CNBC study.
“Charlotte is seeing a lot of growth in the financial sector,” he said. “But it’s not just a one-trick pony. You’ve got the Raleigh-Durham area. You’ve got massive, major, internationally well-known universities driving growth.”
The state is also a leader in career education.
“You have one of the most competitive community college systems in America as well in North Carolina, that is attuned to the needs of their industry,” Wright said.
In addition, more than 89% of participants in state worker training programs were employed within six months, according to U.S. Labor Department data. That is the third-best record in the country, after Alaska and Massachusetts.
Strong workers fuel GDP, solid state finances
North Carolina’s strong workforce helped feed its performance in other categories. The state finishes No. 3 in Economy. Its $560 billion gross domestic product grew by a healthy 3.2% last year, though growth has leveled off at the beginning of 2023, according to the Commerce Department. State finances are solid; its debt rating is top-notch, according to Moody’s. And North Carolina’s housing market appears to be handling the influx of new residents with minimal stress.
Home prices surged by more than 13% last year, according to the Federal Housing Financing Agency, putting a dent in affordability. But home builders are picking up the slack, with housing starts among the highest in the nation, according to the Census Bureau. However, an uptick in foreclosures, according to figures from ATTOM Data Solutions, bears watching.
North Carolina also finishes strong in Technology & Innovation and Access to Capital, both at No. 6.
South Carolina came in at No. 27 overall. This year marks the first year that Texas has not finished in the Top Five, coming in at No. 6. The full list of rankings can be found here.
Despite the impressive repeat performance by North Carolina, there are key factors that could impact the state’s ability to remain the best in the country. Read more about the education, quality of life, and political factors that could influence North Carolina’s ranking in the future.
