Exploring the Pillars of North Carolina’s Economy: Key Sectors Driving Growth

business intelligence

There has been tremendous change in North Carolina’s main commercial sectors during the last few decades.

Thirteen Fortune 500 firms headquartered in the state that was once famous for its tobacco, furniture, and textiles. However, the banking and insurance industries account for three of the Fortune 500. The list also includes companies in the healthcare, energy, healthcare, and technology sectors.

North Carolina, with a population of 10.5 million, boasts ten cities with over 100,000 residents. These cities are spread over 300 miles, from the ocean to the mountains. The state is known for its thriving, innovative business sectors. This success can be attributed to a diverse, highly skilled, and well-educated workforce and low tax rates. Additionally, North Carolina benefits from convenient transportation and logistics options, including road, ra

Let’s take a closer look at some of North Carolina’s leading business sectors:

Automotive 

North Carolina is home to hundreds of businesses involved in the automobile industry. These businesses manufacture parts such as engines, braking systems, interior trim, and gearboxes.

Businesses rely on many professional research centers and programs to fuel innovation in the automobile sector via development and testing.

There is a UNC Charlotte Motorsports program in the state as well. It provides future racing and automotive industry professionals with practical experience and is a first stop for anybody interested in a career in motorsports.

Aerospace 

The state’s prominent military sites put it uniquely positioned since the aerospace and defense sectors often collaborate.

Thousands of veterans are prepared to work thanks to the large military presence.

Higher education in North Carolina is also at the forefront of technological advancement in the aerospace sector; many of the state’s universities offer world-class aerospace engineering programs, and the state’s institutions are at the forefront of research into uncrewed aerial vehicles.

Casino & Gambling 

More than $200 million was donated to the North Carolina community by the two Harrah’s Cherokee casinos in 2023; Harrah’s Cherokee Casino Resort as well as Harrah’s Cherokee Valley River Casino & Hotel contributed a total of $206,967,215.

Compared to the average of North Carolina’s commercial firms, the social contribution per dollar of income from these casinos is much higher, making it a wonderful mark.

More than $177 million was also paid out to suppliers by the two casinos this year. Harrah’s Cherokee locations highlighted the significance of using local suppliers in a further attempt to stimulate the North Carolina economy.

With the recent legalization of online sports wagering, the overall gambling sector is expected to make an even bigger impact on North Carolina’s economy in 2024 and beyond. 

Just in time for the ACC basketball tournament, authorities in the state have authorized sports betting with a commencement date of March 11 as North Carolina betting promos begin to roll out. Proponents argue that this will deter underage betting, increase tax income for the state, and provide an exciting new form of entertainment.

After receiving an estimated $36 million in the first two years, the state’s general fund anticipates collecting an average of over $43 million in years three and four. This is mostly about the per-wage tax. The “special fund revenue” for the state is projected to be between $17 million in the first year and $27 million in the fourth year.

Food Preparation & Manufacturing

North Carolina is within driving distance of over 178 million potential consumers. This East Coast location is already very advantageous, and the proximity to major highways, train stations, and ports makes it much more so.

Due to underutilized manufacturing capacity in North Carolina, research indicated that the food manufacturing industry could add 38,000 jobs to the economy and generate $10.3 billion in yearly revenue for the state.

IT 

Businesses ranging from fledgling startups to industry giants like IMB, Google, and Cisco call North Carolina home. They list several benefits to doing business there, including affordable taxes, a supportive climate for entrepreneurs, and heavy R&D and equity finance spending. 

The City of Oaks is more popular with millennials than other American tech hubs, according to Forbes, which cites the city’s cheap cost of living and plenty of work prospects.

Furniture 

Even today, North Carolina remains a major player in the furniture manufacturing industry. Notable companies, including Ethan Allen and Lexington Home Brands, are based in the state and are home to over 600 timber and wood product firms.

North Carolina has the biggest furniture sector in the country, with over 35,000 people spread over 3,000 businesses. According to the NC Department of Commerce, this puts the state’s concentration of furniture manufacturing activity three times higher than the national average.