North Carolina has always been at the top of the States which plays an important role to help the economy of the US grow. The state is widely known for its success in agriculture, financial services, and manufacturing in which NC is usually considered as a national leader. A decade ago the country of the US saw a huge benefit with the industrial output of North Carolina. Specifically, businesses that involve manufacturing of textiles, chemicals, electric equipment, and paper products have been thriving and as a result, the fact that now the state is a leader in the whole American business market is not a surprise.
Even though North Carolina was always at the forefront of successful business industries, the latest news is even more favorable for the state as it has never been the first one between the states. But now as the Business Climate Rankings of 2020 by the Site Selection finally arrived, everybody can clearly see that North Carolina is a proven leader as a new survey ranked the state at the top of the US states with the best climate for business after years of competing for the first place.
It is a huge success for the state because this ranking is based on the survey of the corporate executives and site selectors who create this list of states according to what leading companies think of states and how attractive they are for investors. Of course, their attitude is not the only factor and the ranking is based on many different factors, including whether it’s easy or not to establish a business in a given state.
Why is NC such an attractive destination for starting a business?
In this Business Climate Ranking, North Carolina is at the top alongside Georgia and their success has several important reasons. First of all, both states are considered among the fastest-growing states that make a big part of the American population. Therefore, the tendency of population growth can be one of the reasons why NC and Georgia are attractive places for starting a business. Also, workforce development is another great reason because citizens of NC easily advance in their careers and find job opportunities which are why unemployment is not really a problem for the state. It especially applies to the remote workforce which is currently flourishing, playing a vital role in the economic development of North Carolina.
Importance of remote workforce
People in this state have a lot of opportunities to work remotely. For example, they can become Technical writers or Business system analysts which is quite easy for everybody who has experience in programming, as well as strong writing skills and some other digital skills. But one of the key areas where North Carolinians are starting to converge is the financial industry. Thousands of remote traders have been seen opening ECN accounts with their local brokerages to take advantage of the post-election market volatility. As a result of the advantages of the Electronic Communication Network the strategy has become popular in North Carolina and traders have been using ECN for a faster FX trading execution through locally regulated brokerages. This may be one of the main reasons why the state has seen major economic growth in the current year as this and other remote job opportunities have been widely used throughout the country.
Another great reason for North Carolina to take the first spot at the ranking is a good tax climate, as well as the ability for the citizens to take part in a large pool of job talent which plays an important role in economic development and corporate expansion of the state. Specifically, according to the 2021 State Business Tax Climate Index North Carolina is the best business tax climates in the US, and a flat income tax rate in the state is 5.25% which means that this rate is paid by all taxpayers despite their taxable income or filing status.
The same applies to Georgia which is also at the top of Site Selection’s Business Climate Rankings. This is no surprise as thousands of businesses have already been thriving in Georgia, as well as North Carolina. Considering the amazing remote workforce in both of the states, getting a booming economy was predictable. Here as well, remote trading is a pretty popular method for people to work from home. They usually handle virtual trading tasks and earn money by making accounts of clients and business companies. However, in the middle of the pandemic, the importance of positive trading psychology is especially obvious, when managing the emotions while making trading decisions has become a difficult task. But the existing success of the market only signals healthy trading psychology in these states, but still, it’s a fire that needs to be dealt with carefully.
Economic Growth in North Carolina
It’s important to note that it’s the first time ever when two states claimed the top spot in this ranking together. The success of Georgia is not really a surprise as the state has been in the first place during the last eight years. But the news is more exciting for North Carolina which was only two points far from first place in the previous year. But now the situation has changed as the state has seen a big economic growth in 2020 despite the worldwide economic crisis caused by the coronavirus pandemic.
As the Economic Development Partnership of North Carolina (EDPNC) stated, there have been several major economic changes this year in North Carolina. One of the most important ones was announcing a plan for the construction of a new headquarters of Raleigh-based Bandwidth Inc. It’s a leading cell phone carrier that operates as a software application programming platform. The company makes a great part of North Carolina’s economy and currently, they plan big job expansion in Raleigh which is the main reason for establishing a new building for the headquarters.
Another big firm that announced job expansion is the drug clinical research company BioAgilytix that is located in Durham. After landing a big incentive package from the state, the firm decided to add 878 jobs in Durham County. Besides, there are other major job expansions as well in North Carolina and most of them were achieved as a result of the economic development program to lure companies to the North Carolina market.
To sum up, the total number of jobs created is 3000 thanks to the 18-year-old job Development Investment Grant program. For this more than billions of dollars have been spent and therefore, the economy in the state of North Carolina will highly probably thrive in the following years, not to say anything about the current success of the state.