North Carolina is a major beneficiary and driver of the US’s attempt to future-proof its economy. Its capital, Raleigh, has one of the country’s fastest-growing tech ecosystems, is part of the electric vehicle (EV) battery belt and its thriving pharmaceuticals industry was boosted in June by Novo Nordisk’s announcement of a $4bn expansion of its local manufacturing site. 

Indeed, among US states, it has been the fourth-biggest recipient of foreign direct investment capital expenditure over the past five years, according to fDi Markets. 

At this year’s SelectUSA Investment Summit, its Democrat governor Roy Cooper spoke to fDi about how green incentives are spurring bipartisanship in the state, growing the local labour pool, and the prospect of a second Donald Trump administration. 

Q: North Carolina has attracted large EV investments in recent years, including megaprojects by Vinfast and Toyota. How big a boon have Inflation Reduction Act incentives been for the state?

A: The federal incentives have put our economic development on steroids.

We had already been successful in the clean energy arena. But with the tax credits, and potential for grants and loans, even more companies want to come to the US and be a part of it. That’s exactly what President Biden intended with this legislation. He wanted to make the US energy [environment] secure while creating American jobs, and that’s exactly the direction we’re heading right now.

Q: The state is also issuing incentives to EV and other clean-energy projects. How have you achieved this with North Carolina’s Republican-controlled legislature?

A: The state government decides which companies we want to offer these performance-based incentives to, but the legislature has to pass legislation allowing it.

While we’ve had disagreements on other issues, we’ve worked together in a bipartisan way on economic development. Some of them don’t always agree on the objectives of our move to clean energy, but they can’t deny the money that’s going into the pockets of North Carolina’s families.

That has caused them to agree that these are good investments, because this is where the capital markets are going and North Carolina now has the ability to be on the front edge of this new industry.

Q: Foreign investors say labour shortages are one of the biggest hurdles to investing in the US. What is North Carolina doing to address this?

A: We have the largest manufacturing workforce in the south-east and no one lives more than 30 minutes from a community college. And we’re using all kinds of strategies to further increase the workforce.

We’ve emphasised that workforce credentials can be earned in our high schools. Instead of solely thinking about going to college and getting a four-year Bachelor’s degree, we've been working to get parents and students thinking about workforce credentials where you make $60,000 to $70,000 a year getting out of high school with a great job.

We’ve also taken lessons from companies like Siemens to foster Germany’s and Switzerland’s dual apprenticeship programme in North Carolina. Toyota is building a $14bn EV and hybrid battery plant in the Greensboro area, which requires 5100 employees. It has a ‘Driving Possibilities’ $2m training programme agreement with local schools as an innovative way of working together to find that workforce.

We’re also emphasising second-chance employment for people getting out of prison. It’s not only the right thing to do, but a lot of employers are taking part because of the tight labour market.

Q: What’s your message to foreign firms wary of investing in the state due to uncertainties surrounding the November elections?

A: Our democracy and economic foundation in this country is strong. I think we can weather any storm. I think Donald Trump would be a disaster for our country, but I think we can survive him.

This interview, which took place on June 25, has been edited for clarity and brevity.

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This article first appeared in the August/September 2024 print edition of fDi Intelligence.