Next Stop, North Carolina? Why Companies are Moving to the State
Thinking of expanding within North America? Why not make your next stop in North Carolina? There has been a clear migration revolution taking place in the US from traditionally popular business states like New York and California. Businesses and workers are becoming disgruntled with the high cost of living and taxes. Many have come to the realization that they can successfully operate anywhere remotely, for a fraction of the cost. The multitude of companies moving to North Carolina has resulted in the state benefiting from this max exodus, and we are going to tell you why they made it their destination of choice.
Why are Companies Moving to North Carolina?
Quality of Life in North Carolina
There’s a reason why North Carolina has impressively been crowned Forbe’s ‘Best State for Business’ three years in a row. People have been flocking to North Carolina over the last few years, with a net migration rate of over 93,200 a year and counting. According to the US Census Bureau, nearly 361,000 people moved to the state in 2019 alone.
The quality of life the state offers is one of the main contributors to why North Carolina has one of the highest migration rates in the US. From the mountains to the beaches, to the cities and small towns in between. The state offers a healthy mix to cater to all tastes. Housing, utilities, groceries, and transportation costs are all below the national average in the US. For example, Business Insider teamed up with Zillow to find the median 3 bedroom home price in North Carolina is $202,215. Compare this with California’s eye-watering $554,886. It’s no wonder then, why it is becoming a top choice for relocation!
What does this mean for businesses? More people equal more talent to choose from when hiring and a larger local customer base.
Affordable Office Space
Now that we’re on the topic of affordable property, it’s time to factor in an essential for businesses; cost-effective real estate. If your business needs space, North Carolina should be on your radar. The average office rent in Charlotte was $29.23 per square foot in 2020, rising to $31.30. When you compare this cost with metro New York office space, which average gross rates cost $81 per square foot a year, there really is no comparison.
Pro-Business Costs
If the culture and cost of living aren’t enough, North Carolina has a proven track record of reducing and streamlining business tax. At 2.5%, this state has the lowest corporate tax in the US. In addition to this, according to Forbes, labor costs are below the national average at 8%, the sixth lowest in the country. Thanks to its business-friendly taxes and costs, businesses have room to flourish, making doing business in North Carolina a profitable choice.
Advanced Tech Hub
North Carolina contains a wide variety of flourishing industries including medical and commercial real estate that recruiters can choose from. However, the standout in recent years has been technology, the main reason why Cisco, SAS, and IBM are just a few of the many tech companies who have called Raleigh home for years. The North Carolina Research Triangle boasts an abundance of IT talent which companies can choose from.
Apple’s pledge to add 3,000 jobs in Raleigh by 2026 is proof of the progressive tech hub forming in North Carolina. The affordable homes, above-average school scores, below-average crime rates, and property taxes in Raleigh made it the perfect spot for Apple.
An educated workforce is a major attraction for businesses, and the state provides a steady stream of talent pouring from local universities such as North Carolina State University, Duke University, and the University of North Carolina at Chapel Hill. In particular, the Raleigh area is becoming one of the up-and-coming tech hubs of choice for businesses in America, as it is focused on meeting the demand for talent. The city’s strategic plan is focused on helping the existing workforce gain skills to succeed and building partnerships for employment opportunities.
Go faster in North Carolina
Whether it be via air, rail, road, or sea, you can easily access your customer base or ideal workforce faster thanks to North Carolina’s transportation lines. North Carolina is home to four large international airports and two seaports. This provides easy access to key business travel areas on the east coast such as Philadelphia, New York, Washington D.C., Atlanta and Florida,.
Thinking of doing business in North Carolina?
So, why should you do business in North Carolina? The state ticks almost all the boxes required for ambitious businesses to grow. Having topped many ‘best states’ for business lists over the years, combined with an educated workforce, and lower operational/life costs, North Carolina is definitely worthy of consideration if you are planning to expand your business in the US.
Remember that it is important to be aware of the different state legislation and employment laws within the US when expanding your business. If you need any advice on getting feet on the ground in North Carolina, we’re here to help.