North Carolina’s Distinctive Advantages

North Carolina’s Distinctive Advantages

• Great Labor Environment and Skilled, Productive Workers

• Comprehensive Workforce Development Network

• Exceptional Educational Opportunities

• Unequaled Proximity to Markets

• Global Connectivity

North Carolina’s Distinctive Advantages

• Competitive Operating Cost Structure

• A Great Place to Live

• A Government that Works for Business

• Performance-Based, Targeted Incentive Programs

• Professional Economic Development Assistance

Great Labor Environment and Skilled, Productive Workers

• Right-to-work state – lowest unionization rate in the nation

• Population of nearly 9 million – 10th largest in the US

• Diverse labor force of more than 4.5 million – ranges from bus assembly to biopharmaceutical research

• Largest, most productive, and skilled manufacturing workforce in the Southeast

Comprehensive Workforce Development Network

• Customized employee recruitment• Screening and training services by

professional employment consultants• First in the nation to provide free customized

training through a 58-campus Community College System

• Programs range from orientation to skill-building, incumbent worker and on-the-job training

Exceptional Educational Opportunities

• Preschool programs designed to ensure readiness for all children

• Increasingly competitive, accountable public schools

• Affordable, accessible programs through 58-campus network of community colleges

• First public university in the nation is one of 16 campuses of the University of North Carolina

• Highly respected private institutions

Unequaled Proximity to Markets

• Central east coast location with the nation’s 2nd largest highway network

• Within a 700-mile radius of more than 170 million US and Canadian consumers

Transportation Infrastructure

• Highway network – spanning more than 98,000 miles – connecting 7 major interstates; rail system with 3,600 miles and 20 carriers; two modern deep-water ports

• Three international airports provide non-stop service to over 100 cities including Frankfurt, London and Toronto

• Global Transpark – accommodates the world’s largest cargo jets

Global Connectivity

• Statewide accessibility to high-speed internet with 100% digital switching

• Technology and telecommunications network includes rural areas

• Advanced, reliable, voice, data and video communications

Competitive Operating Cost Structure

• Below national average cost of living indexes

• 6th lowest business costs in the US• Low electric and natural gas costs• Economic incentives for large power

users• Among the lowest building costs in

the nation

A Great Place to Live

• Moderate climate with scenic beauty in three geographic regions – coast, mountains and Piedmont

• Culture rich in history and arts – first state-supported symphony and art museum in the nation

• Well-known for motorsports, professional football, basketball and hockey teams, minor league baseball, and famous inter-collegiate rivalries

A Government that Works for Business

• Commitment to consistent investments in education, infrastructure and technology

• Maintain constitutionally mandated balanced budget• Sound AAA bond rating• Innovative state leadership exemplified through

– development of the Research Triangle Park in 1959– creation of the North Carolina Biotechnology Center and the

Microelectronics Center of North Carolina (MCNC) in 1981– investment in Bio and Pharmaceutical Training

Consortium in 2003

Performance-Based, Targeted Incentives

Tax Credits• Article 3J Tax Credits – tax credits for job

creation, investment in business property, and investment in real property

• Research and Development Tax Credit – credit based on a percentage of qualified research expenses, with enhancements for research performed by NC universities

• North Carolina State Ports Income Tax Credit – tax credit earned on incremental increases of ports usage and handling fees over three years

Performance-Based, Targeted Incentives

Discretionary Programs• Job Development Investment Grant –

provides sustained annual grants to new and expanding businesses, measured against a percentage of withholding taxes paid by new employees

• One North Carolina Fund – grant available for new or expanding companies in conjunction with local government match

Performance-Based, Targeted Incentives

Other Cost-Saving Programs• Sales and use tax discounts and exemptions –

available on certain parts and accessories• Community Development Block Grants and

Industrial Development Fund – provide grants for infrastructure development in economically challenged areas of the state

• Industrial Revenue Bonds – provide tax-exempt financing

• Foreign Trade Zones – provides opportunities to defer, reduce and/or eliminate import duties

Professional Economic Development Assistance

• Division of Business and Industry – leads state’s recruitment efforts with dedicated, professional staff

• Full-service support includes site evaluation and selection, research and analysis, human resources, environmental assistance and financial program guidance

• Specialized services include regional economic development offices, international offices, industry sector teams and Business ServiCenter

North Carolina Profiles of Industry

• Biotechnology, Pharmaceuticals and Life Sciences – third largest biotechnology industry in the US

• Information and Communications Technology – among the top national and worldwide centers in telecommunications, networking and software development

• Motor Vehicle and Heavy Equipment – more than 1,000 manufacturing operations supply parts, accessories and components for automotive, truck, bus and heavy equipment industries

• Business and Financial Services – second largest financial center in the nation, one of the state’s largest economic sectors employing nearly 200,000 workers

• Chemicals and Plastics – more than 550 US and international companies provide a solid base for manufacturing materials, equipment, parts and molds

Biotechnology, Pharmaceuticals and Life Sciences

• Third largest biotechnology industry in the nation with more than 40,000 highly skilled workers

• 300 contract research organizations, medical device and bio and life science-related companies

• 1,300 IT companies – employing more than 218,000 highly skilled workers

• Major center for telecommunications, networking and software development

Information and Communications Technologies

Motor Vehicles and Heavy Equipment

• Among the largest auto parts manufacturers with more than 1,000 companies and 140,000 skilled workers

• Racing and motorsports – a $5 billion industry in North Carolina

Business and Financial Services

• One of the state’s largest economic sectors – employing nearly 200,000 workers

• 2nd largest financial center in the nation• Headquarters for Bank of America, Wachovia Corporation,

and BB&T – three of the nation’s 10 largest banks• Credit Suisse and TIAA-CREF have major operations and

processing centers in state• Nearly 200 customer service centers

Chemicals and Plastics

• National leader in plastics, rubber and chemical industries with more than 550 facilities

• 42,000 skilled employees ranking among the top 10 nationally

Business and Industry Development DivisionNorth Carolina Department of Commerce

919.733.4977 phone919.733.4563 fax

www.nccommerce.com