North Carolina Economy: Top Industries and Business Opportunities

Are you living in or moving to North Carolina and wondering about the economy, its top industries, and its employers? Here is all you need to know about North Carolina's economy. 

Once known for its tobacco and textiles, North Carolina has evolved over the years to become a global force driven by knowledge-based industries. With many business sectors already growing rapidly and others relocating here, this is a top location to move to if you are looking for corporate headquarters. 

Now home to 13 Fortune 500 companies, North Carolina is home to many different sectors, making it a sought-after location. North Carolina is a very stable and growing business destination with a population of 10.5 million and communities stretching more than 300 miles from the ocean to the mountains. 

Due to North Carolina's diverse, skilled, and well-educated workforce, the low tax rate and easy access to transportation make it easier for this state to thrive. Even when the economy was struggling, the Tar Heel state was America's Top State for Business in CNBC's annual competitiveness study. 

Depending on your ideal location, each city and town has something unique to offer its residents. Whether you are raising a family, retiring, finding a job, or going to school, there is something for everyone. If you are looking for affordable housing, check out the cheapest places to live in North Carolina.

If you are interested in moving to a new place with so much to offer, then looking for available real estate in North Carolina may be for you. From walkable to affordable to safe neighborhoods, there is something different for everyone. 

Here is what you should know about North Carolina's economy.

North Carolina's Economy

North Carolina has a diverse, skilled, and well-educated workforce, low tax rates, and easy access to transportation and logistics channels. The state is also one of the most productive in the United States when it comes to agriculture and crop production, with tobacco, sweet potatoes, and livestock being its top agricultural drivers. 

The state's business and economy have been on a tear since the pandemic, and the state has scarcely looked back. In 2023 alone, the state has a trophy case full of economic development wins, ranging from a $130 million investment to a $458 million facility. 

North Carolina's gross state product (GSP) in 2023 reached $565.2b, with a growth of 22.3k% over the five years. Businesses in this state have employed a total of 4,976,583 people in just a year 2023, with an annual employment growth over the past five years of 2077.3%. 

North Carolina ranks 9th out of all 50 states in employment. The rate has grown at 2% over the five years, overperforming the national average of 1.2%. Major sectors in North Carolina, such as healthcare and social assistance, retail trade, and accommodation and food services, led the highest numbers. 

The unemployment rate is 3.5% in 2023, which ranks 31st in all 50 states. The rate in North Carolina has trended downwards at -2.8% over the five years, overperforming the US economy overall. 

Employment and economic trends indicate the degree of tightness or slack in labor markets and the economy's overall health. Faster employment growth indicates a strong and growing economy. These numbers and trends vary over the years based on many different factors. 

Top Industries

North Carolina's top three employment sectors are manufacturing, real estate, rental, and leasing, as well as scientific and technical services professionals. This state also excels in life sciences, transportation equipment, aviation services, building products, consumer foods, and financial services. 

Many of the world's best-known brands across a range of future-focused industries call North Carolina home. From biotechnology to aerospace, transportation to information technology, you will find the people and infrastructure in North Carolina. 

Below are some of the key industries in North Carolina based on the North Carolina Development of Commerce. 

Aerospace and Defense

With the history of North Carolina being first in flight, it is no wonder that this state is the leader of aerospace, defense, and security companies like Honda Jet, GE Aviation, Lockheed Martin, and other places. 

Automotive, Truck, and Heavy Machinery

From Freightliner and Daimler Trucks to Caterpillar and Bridgestone, North Carolina boasts the 10th largest employment in the automotive sector in the country.

Biotechnology and Pharmaceuticals

The largest research park in the United States and three Tier 1 research universities attract biotech and pharma companies like Novo Nordisk, Merck, and FUJUFILM Diosynth. 

Business and Financial Services

As the third largest financial center in the United States, companies like AT&T, Bank of America, Microsoft, and Wells Fargo enjoy global connectivity and top-notch talent. 

Below are some of North Carolina's top corporate headquarters.

Energy

North Carolina is a major player in turbine, fossil fuel, and semiconductor manufacturing, ranking high in the U.S. It also shows promise in offshore wind energy.

Food Processing and Manufacturing

In addition to the robust agriculture industry, North Carolina is the second largest in animal processing and manufacturing and is home to Tyson, Campbell's, and Smithfield. 

Furniture

As the "Furniture Capital of the World," it is not surprising that the world's largest furniture store, furniture manufacturer, and furnishings industry trade show are all in North Carolina. 

Information Technology

Having major tech players like Google and Cisco here is part of the reason North Carolina boasts the second-fastest-growing IT industry in the United States. Semiconductor and other microelectronic manufacturing operations are also thriving here. 

Plastics and Chemicals

Internationally known companies such as Dow, DuPont, and PPG are a big part of why North Carolina has the fifth-largest plastics and chemicals workforce in the United States. 

Textile

Hanes, Kimberly-Clark, and others enjoy the state's well-established supply chain partners, skilled labor, and the largest textile mill industry in the United States. 

Tourism

North Carolina is among the top 10 most visited states in the U.S., and it offers a strong infrastructure and network of professionals to support this state. 

Top Employers

North Carolina is the largest overall employer, with over 82,000 public employees as of July 2019, a number that has been increasing over the past couple of years. According to the U.S. Bureau of Labor Statistics, as of April 2024, there was a civilian labor force of 5,262.5, employment of 5,075.8, and an unemployment rate of 3.5%. 

North Carolina is also home to 13 Fortune 500 company's headquarter facilities, according to the latest Fortune 500 list. The top five companies remain Walmart, Amazon, Apple, CVS Health, and UnitedHealth Group. With Apple opening an east coast hub in the Triangle, the area is expanding drastically. 

Suppose you are considering relocating to North Carolina. In that case, you are in luck because there are numerous top employers throughout the area that are thriving and offer endless opportunities for their employees. North Carolina has a wide variety of top companies and employers to choose from. However, here is a list of the current employers headquartered in the area:

1. Compass Group USA
2. Lowe's Companies
3. Bank of America
4. First Bank
5. Wilmington Health
6. Jackrabbit Technologies
7. North State Bank
8. Bernard Robinson and Co.
9. Wal-mart
10. Food Lion

Here is a list of North Carolina's largest private employers, ranked according to the NC government guide.

Business Opportunities

North Carolina's business-friendly climate appeals to companies of all sizes. The state constantly ranks high in various business-related awards, which shows the state's community for creating an environment conducive to growth and innovation. 

One key element contributing to North Carolina's business attractiveness is its tax structure. The state corporate tax rate is competitive and allows companies to retain a larger portion of their profits, which then leads to reinvestment into expansion, research and development, and other growth initiatives. 

North Carolina is committed to making it easy for companies. This state fosters a pro-business environment fueled by the lowest corporate income tax in the United States, a favorable legal and regulatory climate, low business costs, and qualified talent. 

The foundation of North Carolina's ability to provide consistency and quality in its workforce is its strong and accessible educational system. North Carolina is home to three Tier-1 research universities, Duke, Chapel Hill, and NCSU, as well as 52 public and private colleges and universities throughout the state. 

Job Market Overall

North Carolina has won many impressive rankings over the years based on its thriving economy. Below are some of their rankings from various sources. 

Overall:

• #1 Top State for Business, CNBC, 2022
• #1 State of the Year, Business Facilities, 2022
• #1 Best Business Climate, Site Selection, 2021
• #5 Best State for Business, Chief Executive Magazine, 2022

Taxes:

• 2.5% Corporate Income Tax Rate, Lowest in the U.S., Tax Foundation, 2022
• #1 Lowest State and Local Business Tax Burden, Ernst & Young, 2021
• #1 Lowest Effective Tax Rate for New Firm Corporate HQs, Tax Foundation and KPMG, 2021
• #3 Lowest Effective Rate Rate for Mature Corporate HQs, Tax Foundation and KPMG, 2021

Business Cost:

• #2 Lowest Business Cost, Forbes, 2016
• #6 Competitive Utility Rates, Area Development's Top States for Doing Business, 2015
• 15% Lower Construction Costs in NC Metro vs U.S. Average, RSMeans Construction Cost Index, 2016

Legal and Regulatory:

• #7 Legal CImate Ranking, U.S. Chamber Insitute for Legal Reform, 2015
• #5 Overall Treatment of Tort and Contract Litigation, U.S. Chamber Institute for Legal Reform, 2015
• #7 Best Regulatory Environment, Forbes, 2016

Many people are flocking to North Carolina for its workforce for many reasons. This state is top-notch in many different sectors and is a great place to relocate if you are searching for business opportunities. Below is a chart of the numbers and growth rates in North Carolina.

Methodology

We used information from different sources and our data to create this guide about North Carolina's economy and their top industries and business opportunities. There were various data to use, so we put them together to guide you on what you should know about North Carolina's economy. 

• Economic Development Partnership of North Carolina
• IBISWorld
• North Carolina Development of Commerce
• U.S. Bureau of Labor Statistics
• Trade and Industry Development

We used The following sources to gather most of our information about about North Carolina's economy. 

FAQS

What are the main business industries in North Carolina?

The state of North Carolina has seen growth in the financial services sector as well as in the aerospace, automotive manufacturing, and biotechnology industries. Additionally, North Carolina boasts a strong agriculture industry, including tobacco, poultry, and livestock.

What is North Carolina's main economy?

The top three sectors by total employment are manufacturing, real estate and rental and leasing, and professional, scenic, and technical services. The unemployment rate across the state is 3.5%. 

What are the fastest-growing industries in North Carolina?

Biotechnology, energy, finance, and information technology are just a few of the many business sectors rapidly growing and succeeding in North Carolina. A range of leading companies also have corporate headquarters in this state. 

North Carolina Economy: Top Industries and Business Opportunities - The Bottom Line

North Carolina is now home to 13 Fortune 500 companies, making it a sought-after location in many different sectors. North Carolina is a very stable and growing business destination with a population of 10.5 million and communities stretching more than 300 miles from the ocean to the mountains.

The state is well-positioned to thrive thanks to North Carolina's diverse, skilled, and well-educated workforce, low tax rates, and easy access to transportation. Suppose you are considering relocating to North Carolina. In that case, you are in luck because there are numerous top employers throughout the area that are thriving and offer endless opportunities for their employees.

North Carolina has evolved over the years to become a global force driven by knowledge-based industries. With many business sectors already growing rapidly and others relocating here, this is a top location to move to if you are looking for corporate headquarters.

Before you buy your next home, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be overwhelming, so make sure you are prepared beforehand.