The secret recipe for North Carolina’s economic ascension?

Thank you for joining us this Saturday morning.

This week, Site Selection Magazine published an in-depth article expanding on its annual rankings for best business climate and best cities for headquarters. It builds on survey responses from dozens of site selection professionals with deep experience in every state in the country. 

Where might you think North Carolina placed?

For some, the results and message from the site selectors will be a familiar, “I told you so!” For others, perhaps it will prompt a reconsideration of years-long political and policy fights. 

Wherever you may fall on that spectrum, we can all agree that our state has much to offer current and future residents – and we can unite on how to maximize those opportunities. Let’s jump in. 

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“In your opinion, what are the three most important elements of a state business climate?” The magazine asked that question to dozens of seasoned site selectors, and here were the three overwhelming responses: workforce, state and local tax policy, and cost of living.

It’s not surprising that their responses are centered on factors which have direct, measurable impacts on business’s ability to prosper. 

For nearly 15 years, North Carolina lawmakers have repeatedly focused their words and actions on these issues, which are critical to the business community: improving the workforce, slashing taxes, enacting policies that keep the cost of living reasonable and provide opportunities for our state’s residents. 

Take energy as one example. It’s a major driver of living costs and reliable energy is a prerequisite for any manufacturer looking to build or relocate. Site Selection Magazine printed some of the responses they received to the question of how critical electric power is when considering sites:

• “It is THE driving factor.”
• “If you don’t have available power, you are going to get cut.”
• “The demand for sufficient power will be a differentiating factor among states and communities for those projects (like data centers, battery factories, and clean energy plans) that require large amounts of power.”

For much of the past decade, state lawmakers have resisted pressures to adopt California-style green energy mandates – the state’s 2021 landmark energy policy negotiation, successfully completed between the legislature and governor, does indeed set carbon emission standards – but it mandates that those be achieved through the lowest cost, most reliable energy mix. That means nuclear and natural gas are almost certain to remain major fixtures in North Carolina’s generation capacity.

As a whole, the Southeast has prioritized policies designed to attract businesses and families from elsewhere in the country. The result of those policy choices is unmistakable in Site Selection’s rankings. The top five business climate states are Georgia, North Carolina, South Carolina, Tennessee, and Texas. The top five cities for business headquarters are Dallas, Charlotte, Atlanta, Nashville, and Raleigh.

By contrast, states that moved in the opposite direction are feeling the consequences. Nearly half of Site Selection’s survey group ranked California as the worst business climate, followed by New Jersey.

U-Haul data for 2024 tells a similar story. The top five U-Haul growth states – that is, states with the highest net gain of movers using one-way U-Haul trucks – are South Carolina, Texas, North Carolina, Florida, and Tennessee.

What are the five worst? California, Massachusetts, New Jersey, New York, and Pennsylvania. 

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Statewide policy has certainly primed North Carolina for the colossal growth its seen in recent years. But private and regional undertakings complement the favorable policy environment, too.

The Carolina Core, for example, prepared and marketed the corridor of North Carolina from Fayetteville to Winston-Salem brilliantly. Some of the biggest economic development moves in state history – Toyota, Boom Supersonic, Wolfspeed – all happened in this region.

And infrastructure projects – while not headline-grabbing – have primed the region for more wins. Sanford, for example, now anchors a regional water system that serves towns in Chatham, Wake, and Lee counties, has become one of the largest water utilities in the state. All of the partners will benefit from the efficiencies and increased capacity, and all are better positioned for continued growth.

Visionary public-private partnerships are transforming North Carolina. In what has been called the most ambitious economic development initiative since Research Triangle Park, NC Innovation is driving rural economic development by partnering with UNC System universities to commercialize applied research. The opportunities are abundant. The organization has rapidly built a statewide engine, awarding grants for applied research that has already achieved proof of concept in areas such as power grid efficiency, lithium processing, and cancer research.

This synergy – between business-friendly statewide policies and regional initiatives that amplify their impact – creates a unique environment where employers and families alike can thrive.

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The leaders behind these efforts are nothing short of world-changers. How? Every transformative journey begins with a spark – an idea. These visionary individuals recognize a need and think, “This is an opportunity to make a difference.”

While naysayers may favor less disruptive, short-sighted, and more comfortable pathways, world-changers take a different route. They don’t stop at identifying challenges – they take action, bridging the gap between problems and solutions. Through dedication, hard work, and a focus on legacy, their efforts ripple outward, creating lasting change. Over time, one inspired step after another, they achieve generational impact.

This is the essence of innovation: recognizing a need, acting on it, and leaving a legacy that matters.

North Carolina’s business leaders, including many of you reading this newsletter, are setting the standard for achieving this special blend of opportunity and impact. And others around the country are taking notice.

Thank you for staying with us. If this note resonates with you, please feel free to share it with others you thought of while reading.