RALEIGH−North Carolina is already building beyond a 2021 blockbuster when it comes to economic development projects.
Since the calendar was pushed back to 2022, the state has announced about $7 billion in capital investments from seven projects. Investments of around US$10 billion and 23,000 jobs have been committed for the whole of 2021.
The projects announced last week alone are estimated to bring at least 10,000 jobs to the state.
The 2022 listing includes Tuesday’s announcement that Vietnamese automaker VinFast would build a $4 billion automotive plant and electric battery assembly plant in Chatham County. There were also announcements from Eli Lilly and Boom Supersonic earlier this year.
And on Thursday, Macy’s Corporate Services announced it will build a 1.4-million-square-foot fulfillment center to better meet demand from a growing number of online orders, after receiving a stimulus package totaling about $11 million received US dollars from the state. The company plans to create almost 2,800 jobs.
The VinFast project builds on the state’s “clean energy economy,” a term used by North Carolina Gov. Roy Cooper when announcing the VinFast deal.
Automaker VinFast invests $4 billion in Chatham County assembly plant and receives $1.25 billion stimulus package
Unlocking the potential of clean energy
“The North Carolina government is fully committed to unlocking the economic development potential of the clean energy industry, and yesterday’s announcement validates that North Carolina is the location of choice for innovative mobility companies like VinFast,” said Christopher Chung, chief executive of the Economic Development Partnership of North Carolina said in a statement.
Earlier this year, Eli Lilly announced it would invest $1 billion to build a new manufacturing facility in Concord, creating nearly 600 jobs, and Boom Supersonic said it would build an aerospace manufacturing facility at Piedmont Triad Airport , invest $500 million and as many as possible create 2,400 jobs, including at least 1,750 jobs at the site by 2030.
And more jobs could be added.
Sources have told WRAL TechWire that although one semiconductor company has removed North Carolina from its list, other semiconductor companies are actively considering locating facilities in the state.
What the $4 billion VinFast facility means for the Triangle — and the state
A transformation of North Carolina’s economy?
At the moment, however, VinFast is the big headline maker.
“This is one of the most transformative economic development opportunities in our state’s long history, and we are confident that VinFast will have a major impact on North Carolina and its residents for decades to come,” said Chung.
Chung also called Toyota’s proposed $1.29 billion electric battery plant in Randolph County a transformative project for the state in a December interview with WRAL TechWire.
Macy’s is investing $584 million and hiring nearly 2,800 employees for its new Rowan County fulfillment center
Ryan Combs, the executive director of the Research Triangle Regional Partnership, called the VinFast deal “monumental.”
And there could also be more investment from companies along the electric vehicle supply chain. According to Chung, North Carolina’s Economic Development Partnership commissioned a study on the electric vehicle supply chain last year to prepare the state and its economic promoters.
An example the state could follow is what happened after the announcement of a Tesla factory in Reno, Nevada, which Chung described as an area the state and its economic developers are adding to their ongoing in a December 2021 interview research could examine.
Chung confirmed to WRAL TechWire in December that about a half-dozen EV-related projects would be considered sometime in 2021.
VinFast news is ‘monumental’ for NC, tax incentives are still needed, says Research Triangle Partnership executive
2021 a “blockbuster year”
The outbreak of the global COVID-19 pandemic brought disruptions to labor markets and the supply chain. But while 2020 was a year of uncertainty for many, 2021 was a blockbuster year for businesses, said Melissa Smith, vice president of corporate recruitment and development at EDPNC, in the partnership’s annual report.
According to the report, the organization has been involved in 174 business expansion, relocation or site selection projects that together are expected to create more than 23,000 new jobs with more than $10 billion in combined capital investments.
Those marks are all-time highs, says EDPNC.
“The pandemic has forced companies to take a close look at their supplier networks and business projections,” Smith said in the annual report. “As companies re-rated, uncertainty gave way to confidence for many.”
A screenshot of the digital, interactive EDPNC Annual Report 2021.
And according to the report, the state’s active project pipeline at the end of 2021 “represented its highest potential capital investment on record.”
EDPNC data showed that there were 191 potential projects at the end of 2021 that could create more than 72,000 jobs with nearly $39.3 billion in potential capital investments.
What is the cost in North Carolina to land the VinFast auto factory? What is the payout?
behind the numbers
Of the 174 projects announced, 124 were in manufacturing or assembly, by far the largest industry category. According to the report, 13 warehousing or distribution projects, 12 service or sales projects, 11 corporate headquarters and 14 other projects have been announced.
A screenshot of the digital, interactive EDPNC Annual Report 2021.
But it was four mega-projects that really fueled record-breaking investment numbers from calendar year 2021, according to EDPNC. These mega projects were:
Then there are other project wins highlighted in the EDPNC annual report, including Amgen’s $553.5 million project in Holly Springs, Kroger Co.’s $139 million project in Cabarrus County, a 100 Amazon’s $1 million Johnston County project, Abzena’s $213 million Lee County project, Thermo Fisher Scientific’s $154 million Pitt County project and the $114.6 million -Project by Invitae Corp. in Wake County.
“Our outstanding year is a testament to North Carolina’s fundamental advantages as a business location, despite a global pandemic,” said Smith. “An employer’s decision to locate and grow here is a validation that our state’s workforce and business environment is among the best in the country. Businesses know North Carolina is a place to thrive.”