American British Business 2006/7

ABB 2006/7 | State Profiles | South East region | North Carolina | Profile

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North Carolina

Thanks to the state’s deep talent pool of knowledgebased workers, North Carolina is becoming known as the State of Minds. In areas such as IT, pharmaceutical research and development, financial services, and high- tech manufacturing, North Carolina is a national leader.

By placing heavy emphasis on state investments in education, workforce development and infrastructure improvements, North Carolina has secured a reputation as the third leading US state for biotechnology, the ninth highest-ranked state in nanotechnology and the second only to New York in finance and banking. Manufacturing remains the state’s highest employment sector, but the items being made – and the skills necessary to make them – have changed dramatically.

For example; North Carolina used to be a leading manufacturer of cotton apparel, yarns and other traditional textiles. Using new technology and a well-trained workforce, the state has been able to capitalise on that heritage to become a world leader in a new type of high-tech textile manufacturing:

non-woven textiles. Non-woven textiles are engineered fabrics that are not knitted or woven, but have fibres bonded by other technology. The US leads the world in non-woven textile production, and North Carolina leads the US. That does not mean that all of the non-woven textile plants in North Carolina are US-based companies.

The Japanese firm Livedo, Netherlands-based DSM Dyneema and Switzerland’s Jacob Holms Industries all have non-woven production facilities in the state, as do the Israeli companies Spuntech, Avgol and AFG Wipes. In fact, foreign investment plays a major role in many segments of North Carolina’s manufacturing economy.

Over the past 15 years, foreign-owned corporations have accounted for 20% of the state’s new investment in property, plant and equipment. This foreign investment is concentrated in high-value-added and rapidly growing industry sectors such as automotive parts manufacturing, plastics and chemicals, metal working, electronics and pharmaceuticals. British investors have led the way in many of these areas.

For example, UK-based GlaxoSmithKline has its North American headquarters in North Carolina’s Research Triangle Park. More than 170 British-owned companies are doing business in North Carolina, with a cumulative investment of more than $4bn.

They employ more than 44,000 North Carolina workers and include:

BSN Medical	Imperial Chemicals
BTR	Industries (ICI)
Bespak Inc	Lin Pac
GKN	Rexam
HSBC	TT Group

The North Carolina Department of Commerce, as the lead economic development agency in the state, works closely with academic and other government agencies, local officials and regional economic development partners to help bring new industries to the state and to help existing businesses thrive and expand.

The state also offers low construction costs; tax credits for machinery, equipment, jobs and training; free screening and job referral services; free site search and selection services and customised worker training programmes. In addition, UK businesses can receive valuable support from the North Carolina British American Business Council and the North Carolina British Honorary Consul.

North Carolina’s central East Coast location also offers easy access to Europe and East Coast markets. The state sits within a 700-mile radius of more than 170 million US and Canadian consumers. And with three international airports, visitors can enjoy direct daily flights to London, Frankfurt and Munich.

With diverse natural beauty that includes more than 300 miles of coastline and the breath-taking Great Smoky Mountains, North Carolina is a popular tourist destination for visitors from the UK and throughout Europe. It also shares strong historical ties as the site where the first English pioneers sent by Sir Walter Raleigh in the latter half of the 16th century set foot on American soil. Indeed, the state’s beauty, rich history and culture are key factors in attracting its creative workforce, making North Carolina one of the US’s fastest-growing states.

After weighing up the factors that spell success for a company in the 21st century, business leaders find North Carolina a desirable and sound place to invest.

For more information, contact:
John Brennan at the North Carolina Department of
Commerce’s European office in Frankfurt
Tel: +49 69 271 3980
E-mail: jdbrennan@nc-europe.com

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