Introduction
North Carolina State, with its distinctive mix of industries, from biotech, banking, and information technology to the traditional sectors of tobacco, furniture, hog farming, as well as, textiles and apparel is among the wealthiest states in United States of America. The overall gross state product (GSP) for North Carolina in 2010 was 424.9 billion U.S dollars, making the state the ninth richest state in terms of GDP. In the year 2011, the North Carolina’s labor force was about 4.5 million. The working populace in North Carolina is essentially employed across all the industries. North Carolina is a key producer of furniture and textiles and leads the country in tobacco production. North Carolina grows 40 percent of United States tobacco. The state leads the nation in mineral resources production including mica, phosphate rock, feldspar, and lithium, among other important minerals. What’s more, the North Carolina’s economy covers fifteen metropolitan regions. For this reason, the focus of this research paper is an analysis of North Carolina’s economy. To better understand the economy of the North Carolina, the paper analyzes the above-mentioned industries and their overall economic contributions to the state.
Financial Services Industry in North Carolina
The financial services industry in North Carolina includes firms and institutions, which facilitate the financial transactions. During the last decade, the industry experienced a skyrocketing rate of growth, rising by 25.5 percent since the year 2002. In 2006, the industry was the third leading economic sector by GSP in North Carolina. A good indication of the state’s increasing role in the financial services industry is the rise in the number of employees and firms. From 1998, the number of North Carolina’s banking offices has risen from over 5,000 to above 8,200. On the other hand, the employment in the state has increased from under 75,000 to about 104, 000. Moreover, the banking and finance industry average wages have doubled all through this period. This hints at the productivity increases as well as the shifts in stages of financial services industry that the state participates in. Therefore, the state has become a key player in the field of national banking. The industry is responsible for the rapid growth of Charlotte, the largest city in North Carolina. The city is the second leading banking in U.S after New York. What’s more, Charlotte is the home to the “bank of America.” It is worth mentioning that Charlotte metro area has contributed sign significantly to the economy of North Carolina and the entire country.
Biotechnology Industry in North Carolina
The biotechnology industry is essentially an ideal case of a “new economy” industry that is, a sector, which did not exist in the past, but is a key economic driver for numerous regional and national economies. The state has a sturdy corporate support infrastructure as well as a talented staff that is trained by well-resourced academic institutions. Numerous biotechnology corporations have brought sufficient facilities as well as niche competitors into the North Carolina to the end where it is probable to have product pass from the creation to manufacturing to the distribution, all in the state. The biotechnology industry is specifically helpful when it is applied in combination with the other tools like forensics or agriculture. The state is well positioned for such inter-disciplinary growth (Glass and Brooks, 92). North Carolina is categorized among the five leading centers of the biotechnology industry in North America. The biotechnology firms in the state engage in research and development, pharmaceutical manufacturing as well as sales, clinical trials, product development, bio-manufacturing, and health care applications. In addition, some of the largest pharmaceuticals and biotechnological facilities including Merck & Co. and GlaxoSmithKline’s facilities are located in the state.
North Carolina is similarly the home to the firms such as Bayer, Wyeth, and Baxter, among others. The state’s status as home to a noteworthy and emergent biotechnology industry is thus well deserved. The biotechnology industry in North Carolina contributes greatly to the economy of both the state and country. For instance, as of 2005, the biotechnology companies in United States had revenues amounting 50.7 billion U.S dollars. It is important to note that of these corporations, 329 were held publicly, and their overall market capitalization was 410 billion U.S dollars. The biotechnology industry in North Carolina generates about 3 billion U.S dollars in the yearly revenue. What’s more, the industry in the state is growing at a rate from 10-15 percent yearly. As of 2013, the strategic developers in North Carolina aimed to build a biotechnology staff numbering about 50, 000 in a 7.7 billion U.S dollars market, and a 125, 000 staff in a 24 billion U.S dollars industry by 2023. The biotechnology industry in North Carolina is a leading source of employment since 7 percent of the United States biotech workers come from the state.
Information and technology Industry in North Carolina
The industry has essentially grown in the current years. The growth of information and technology industry fueled the country economic boom of 1990s as well as the consequent growth and development. In North Carolina, the industry is among the largest and vital industries as in 2006, it employed over 87, 000 individuals. The state’s strengths in the information and technology industry lie in the hardware, software, and semi-conductors. The state serves as the home to the corporations, which are functioning in all the sectors of the industry including the IT services. In addition, the state’s strength lies greatly in manufacturing, which remains as an imperative component of the IT industry in North Carolina. It employs over 30, 000 people. The key players in the IT industry located in North Carolina State cover the whole manufacturing chain that is, from manufacturing semiconductors to the hardware assembly. The state has played an imperative part in the IT industry development, with the huge investments to attract companies to settle there instead of the typical states like Texas or California. North Carolina leads in the IT industry in the country and it has contributed greatly to the economy of the nation.
Furniture Industry in North Carolina
Over the past decade, the furniture industry in North Carolina has essentially been experiencing severe changes. The high competition from countries such as China as well as the increasing furniture imports has made many state’s key players in the industry to lay off their workers and shut down plants (Walden, 12). Nonetheless, it is worth to note that the furniture industry in the state has been a key player in its economy for a long period.
Other Industries in North Carolina
The other vital industries in the state include Tobacco, Textiles & Apparel, and Hog farming (pork production industry). The Textiles & Apparel industries in North Carolina have for a long period held an imperative role in the State’s economy, creating many jobs and the revenue for state economies (Cassill, 62). In addition, the tobacco industry has been among the most vital industries in the state besides being a backbone of the agricultural heritage of the state. The tobacco industry is divided into farming and processing sections. The two sections have been the leading source of employment especially the immigrants (Kasarda and Johnson, 109). Moreover, hog farming in North Carolina represents an essential part of the wider pork production industry, which entails butchering, processing, rearing, and selling of hogs. With the demand for pork increasing every day, the industry is anticipated to grow at a high rate, which is important for the economy of the State.
Conclusion
Over the past three decades, North Carolina State has changed from a traditional economy that was based on furniture, textiles, and tobacco to a global economy, which is driven by the knowledge and skills- based ventures. A number of the state’s traditional industry sectors demonstrate the economic change. For instance, the agriculture remains crucial with a change in focus from the tobacco to poultry, new crops, and livestock, which fuel areas like biotechnology and wine-making. The government has assisted and continues to assist the industries in North Carolina in terms support programs and direct incentives, which explains why many industries have succeeded in the state (North Carolina Economic Development Inventory, 25). The textile manufacturers in the state have essentially evolved through producing ultra-modern innovations in non-woven textiles area and engineered fabrics. The industries together with the institutions of learning in North Carolina provide workers that are equipped with the knowledge and skills demanded globally. The state is the home of various essential industries in United States and has provided numerous employment opportunities to both U.S citizens and immigrants. The industries have contributed greatly to the economy of North Carolina making it among the richest states in the United States. In turn, North Carolina is a key contributor to the United States economy.
Works cited
Cassill, Nancy L. State of the Union of the Textile Industry in North Carolina: Improving Global Market Competitiveness with Identification and Assistance of Core Competencies. Raleigh, N.C: NCSU, College of Textiles, 2006. Print.
Glass, Brent D, and Jerome E. Brooks. North Carolina Industry and Economic Activities Packet. Wendell, NC: Broadfoot's of Wendell, 2000.
Kasarda, John D., and James H. Johnson. The economic impact of the Hispanic population on the state of North Carolina. Chapel Hill, NC: Frank Hawkins Kenan Institute of Private Enterprise, 2006.
North Carolina Economic Development Inventory. Raleigh, N.C.: North Carolina General Assembly, Fiscal Research Division, 2008. Print.
Walden, M L. North Carolina in the Connected Age: Challenges and Opportunities in a Globalizing Economy. Chapel Hill: University of North Carolina Press, 2008. Internet resource.
