North Carolina’s Distinctive Advantages

1. North Carolina’s Distinctive Advantages

2. North Carolina’s Distinctive Advantages • Great Labor Environment and Skilled, Productive Workers • Comprehensive Workforce Development Network • Exceptional Educational Opportunities • Unequaled Proximity to Markets • Global Connectivity

3. North Carolina’s Distinctive Advantages • Competitive Operating Cost Structure • A Great Place to Live • A Government that Works for Business • Performance-Based, Targeted Incentive Programs • Professional Economic Development Assistance

4. Great Labor Environment and Skilled, Productive Workers • Right-to-work state – lowest unionization rate in the nation • Population of nearly 9 million – 10th largest in the US • Diverse labor force of more than 4.5 million – ranges from bus assembly to biopharmaceutical research • Largest, most productive, and skilled manufacturing workforce in the Southeast

5. Comprehensive Workforce Development Network • Customized employee recruitment • Screening and training services by professional employment consultants • First in the nation to provide free customized training through a 58-campus Community College System • Programs range from orientation to skill-building, incumbent worker and on-the-job training

6. Exceptional Educational Opportunities • Preschool programs designed to ensure readiness for all children • Increasingly competitive, accountable public schools • Affordable, accessible programs through 58-campus network of community colleges • First public university in the nation is one of 16 campuses of the University of North Carolina • Highly respected private institutions

7. Central east coast location with the nation’s 2nd largest highway network Within a 700-mile radius of more than 170 million US and Canadian consumers Unequaled Proximity to Markets

8. Transportation Infrastructure • Highway network – spanning more than 98,000 miles – connecting 7 major interstates; rail system with 3,600 miles and 20 carriers; two modern deep-water ports • Three international airports provide non-stop service to over 100 cities including Frankfurt, London and Toronto • Global Transpark – accommodates the world’s largest cargo jets

9. Global Connectivity • Statewide accessibility to high-speed internet with 100% digital switching • Technology and telecommunications network includes rural areas • Advanced, reliable, voice, data and video communications

10. Competitive Operating Cost Structure • Below national average cost of living indexes • 6th lowest business costs in the US • Low electric and natural gas costs • Economic incentives for large power users • Among the lowest building costs in the nation

11. A Great Place to Live • Moderate climate with scenic beauty in three geographic regions – coast, mountains and Piedmont • Culture rich in history and arts – first state-supported symphony and art museum in the nation • Well-known for motorsports, professional football, basketball and hockey teams, minor league baseball, and famous inter-collegiate rivalries

12. A Government that Works for Business • Commitment to consistent investments in education, infrastructure and technology • Maintain constitutionally mandated balanced budget • Sound AAA bond rating • Innovative state leadership exemplified through • development of the Research Triangle Park in 1959 • creation of the North Carolina Biotechnology Center and the Microelectronics Center of North Carolina (MCNC) in 1981 • investment in Bio and Pharmaceutical Training Consortium in 2003

13. Performance-Based, Targeted Incentives Tax Credits • Article 3J Tax Credits – tax credits for job creation, investment in business property, and investment in real property • Research and Development Tax Credit – credit based on a percentage of qualified research expenses, with enhancements for research performed by NC universities • North Carolina State Ports Income Tax Credit – tax credit earned on incremental increases of ports usage and handling fees over three years

14. Performance-Based, Targeted Incentives Discretionary Programs • Job Development Investment Grant – provides sustained annual grants to new and expanding businesses, measured against a percentage of withholding taxes paid by new employees • One North Carolina Fund – grant available for new or expanding companies in conjunction with local government match

15. Other Cost-Saving Programs Sales and use tax discounts and exemptions – available on certain parts and accessories Community Development Block Grants and Industrial Development Fund – provide grants for infrastructure development in economically challenged areas of the state Industrial Revenue Bonds – provide tax-exempt financing Foreign Trade Zones – provides opportunities to defer, reduce and/or eliminate import duties Performance-Based, Targeted Incentives

16. Professional Economic Development Assistance • Division of Business and Industry – leads state’s recruitment efforts with dedicated, professional staff • Full-service support includes site evaluation and selection, research and analysis, human resources, environmental assistance and financial program guidance • Specialized services include regional economic development offices, international offices, industry sector teams and Business ServiCenter

17. North Carolina Profiles of Industry • Biotechnology, Pharmaceuticals and Life Sciences – third largest biotechnology industry in the US • Information and Communications Technology – among the top national and worldwide centers in telecommunications, networking and software development • Motor Vehicle and Heavy Equipment – more than 1,000 manufacturing operations supply parts, accessories and components for automotive, truck, bus and heavy equipment industries • Business and Financial Services – second largest financial center in the nation, one of the state’s largest economic sectors employing nearly 200,000 workers • Chemicals and Plastics – more than 550 US and international companies provide a solid base for manufacturing materials, equipment, parts and molds

18. Biotechnology, Pharmaceuticals and Life Sciences • Third largest biotechnology industry in the nation with more than 40,000 highly skilled workers • 300 contract research organizations, medical device and bio and life science-related companies

19. Information and Communications Technologies • 1,300 IT companies – employing more than 218,000 highly skilled workers • Major center for telecommunications, networking and software development

20. Motor Vehicles and Heavy Equipment • Among the largest auto parts manufacturers with more than 1,000 companies and 140,000 skilled workers • Racing and motorsports – a $5 billion industry in North Carolina

21. Business and Financial Services • One of the state’s largest economic sectors – employing nearly 200,000 workers • 2nd largest financial center in the nation • Headquarters for Bank of America, Wachovia Corporation, and BB&T – three of the nation’s 10 largest banks • Credit Suisse and TIAA-CREF have major operations and processing centers in state • Nearly 200 customer service centers

22. Chemicals and Plastics • National leader in plastics, rubber and chemical industries with more than 550 facilities • 42,000 skilled employees ranking among the top 10 nationally

23. Business and Industry Development Division North Carolina Department of Commerce 919.733.4977 phone 919.733.4563 fax www.nccommerce.com