North Carolina means business as it rolls out continual enhancements of its tax and regulatory environment. Consistently recognised as one of the top states to do business in the US, North Carolina offers UK companies an attractive economic platform from which to maximise their access to the US market. As one of the original 13 colonies, North Carolina shares an important cultural legacy with the UK that is still preserved in historical landmarks, heritage groups and town and county names across the state.

The UK is second only to Germany in terms of inbound investment into the Tar Heel state. UK groups such as GlaxoSmithKline, GKN Driveline, BAE Systems, Unilever and the Compass Group are well established in North Carolina. The state is particularly successful in attracting companies in the automotive; aerospace and defence; biotechnology and pharmaceuticals; food processing and manufacturing; agriculture; financial services; high tech and advanced manufacturing sectors.

In 2015, the state legislature increased the amount of incentive grants available to a qualifying company that commits to investing in a so-called high yield project. A high yield project is an investment that has a value of $500 million or more and creates at least 1,750 new full time employee positions. All companies doing business in North Carolina benefit from a 4% corporate income tax rate in 2016, the lowest rate among states that have an income tax. In addition, there are many other tax benefits which are aimed at medium and large investments, as well as local (county-level) financial incentives.

North Carolina is proving attractive to corporate groups based elsewhere in the US and around the world. North Carolina consistently ranks as a top state for business in the most recognised rankings:

• No.2 Top US Business Climate Ranking – Site Selection
• No.2 Best State for Business – Forbes
• No.3 Best State for Business – Chief Executive

Here are some of the top economic reasons for a UK company to invest in North Carolina and which distinguish it from other state investment propositions.

As one of the 10 most populous states, North Carolina enjoys the economic and geographical capacity to attract  and retain businesses from multiple sectors. Investors have several attractive regional clusters to consider for business, all within excellent proximity to commercial airports, interstate highways, and a dense rail system. North Carolina is also home to two deep-water ports at Wilmington and Morehead City. Typically, the location of a relevant cluster can drive the decision where to place the UK direct investment.

North Carolina can boast impressive medical and higher education clusters across the state which provide a meaningful source of research, innovation and opportunities for North Carolina residents. Three Tier 1 research universities are located in the state (Duke University, NC State University and the University of North Carolina at Chapel Hill).

Additionally, North Carolina’s nationally recognised 58-campus community college system and related workforce development programmes offer employers a steady stream of skilled workers. Companies can have the opportunity to partner with the local community colleges to organise sector, if not company, specific training. These aspects make the local, low cost training opportunities some of the best in the country. Finally, the US military base presence in North Carolina, one of the largest in the country, ensures a continuous stream of skilled individuals into the local labour force.

Whether looking at electricity and natural gas rates, office lease and construction costs, wages, or just overall cost-of- living measures, North Carolina offers companies a cost-effective environment to do business.

The Economic Development Partnership is, in effect, an arm of the NC Commerce Department. It is tasked with engaging US and foreign businesses interested in investing or expanding existing businesses in North Carolina.  Interested UK investors should consider the EDP as a first point of contact at the state level for a variety of services financed by the state. The EDP will assist companies with various investor critical issues, such as site selection across the state, establishing connections with key public and private sector stakeholders, and navigating the state level and incentives processes which are subject to the approval of the NC Commerce Department.