Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

America's Top State for Business: Consistently ranked as the #1 state for business by CNBC for the third time in four years (2025). Excellent Business Climate: Ranked highly for "Business Friendliness," low corporate income tax rate (scheduled to drop to 0% by 2030), and strong access to capital.

Political Division/Policy Instability: While business policy is generally bipartisan, the "deep purple" political environment can lead to uncertainty in other policy areas that may indirectly affect business operations and stability.

Attracting Top-Tier Talent & FDI: Leverage the #1 ranking and quality of life to continue attracting major corporate relocations and high-value Foreign Direct Investment (FDI) in high-growth sectors (e.g., life sciences, aerospace).

Rapid Influx Strain: The state's rapid growth and high in-migration rate may strain existing infrastructure, housing affordability, and public services, potentially eroding its quality of life ranking over time.

Domestic Manufacturing

Diversified Manufacturing Base: Strong in both traditional (textiles, furniture, food processing) and high-tech sectors (biotechnology, pharmaceuticals, aerospace, electric vehicle batteries). Major Investment: Attracting billions in new manufacturing investment, including a massive EV battery plant (e.g., Toyota).

Job Declines in Key Sectors: Traditional sectors like apparel, furniture, and computer/electronics manufacturing have experienced recent job declines despite overall investment growth, indicating structural shifts.

Life Sciences and Biopharma Leadership: Continue to build on the established Research Triangle Park (RTP) ecosystem to solidify its position as a global leader in high-value pharmaceutical and biotech manufacturing.

Workforce Shortages/Skills Gap: Ensuring a pipeline of highly skilled workers to meet the demands of advanced manufacturing (Industry 4.0) and high-tech sectors remains a challenge, despite a strong community college system.

Sustainability Initiatives

Strong Clean Energy Commitment: Ranked #1 for renewable energy leadership with concrete 2025 and 2030 targets for reducing greenhouse gas emissions and achieving carbon neutrality by 2050. Offshore Wind Potential: Possesses the top offshore wind energy potential on the East Coast.

Infrastructure Modernization Cost: Achieving aggressive CO2 reduction goals by 2030 (70% reduction) and carbon neutrality by 2050 requires substantial, ongoing investment in grid modernization and renewable energy infrastructure.

Green Business & Economic Resilience: Incentivize the formation of Benefit Corporations and support green supply chain practices, driving a new wave of sustainable economic development and small business resiliency.

Climate Change Impacts: Vulnerability to climate-related issues, such as hurricanes and flooding on the coast, which necessitates increased spending on climate resilience, infrastructure, and disaster recovery.

Balance of Trade

Major Global Exporter: Exports billions in goods and services annually, with manufactured products (chemicals, machinery, transportation equipment) being the largest contribution. Key Trade Corridor: Canada, China, and Mexico are major trading partners, indicating a central role in North American and Asian supply chains.

High Trade Vulnerability: Over $72 billion in trade contributes to over 20% of the state's GDP, making the economy susceptible to disruptions from international trade policy shifts (e.g., tariffs).

Expanding FTA Partnerships: Leverage Free Trade Agreements (FTAs) to increase exports to new and existing FTA partners, diversifying market access beyond the top three.

Geopolitical/Tariff Instability: Ongoing global trade disputes and the implementation of tariffs (e.g., on steel/aluminum) can cause sudden and sharp declines in exports/imports for specific commodities, creating market volatility for NC businesses.