NC Strategic Scorecard
6.2.1 Economic Climate

Target: Ranks among top 10 states in overall business climate
Actual: 5th
US Rank 2004: 5th (down from 3rd (tie) in 2000)
SE Rank 2004: 2nd (down from 1st in 2000)
SE Region: AL FL GA KY MS NC SC TN VA WV   Updated 4/11/06

 
Primary Performance Indicator

Rank in State Business Climate

 Performance Trend:
Declining
The trend depicts the degree to which actual performance has approached the target in recent years.
Comments

In 2005, NC was ranked 1st in the US and Southeast region in overall state business climate according to Site Selection Magazine.

NC ranked among the national and regional leaders in state business climate for new and expanding business most of the last eight years, and earned the top national position in 2001, 2002, 2003 and 2005.
  Definition (What Is Being Measured)
Subjective ranking of desirability as place to do business based upon recent business plant expansion activity and surveys of corporate real estate executives regarding ease of doing business, overall business costs, state fiscal health and related factors.
Source: Site Selection Magazine; Conway Data, Inc.
Relevance (Why This Is Important)
A high business climate rank indicates a perceived positive climate for retaining and recruiting businesses.
 
Other Highlights
North Carolina
From 2001-03, NC had the 8th most corporate expansions and new facilities in the US and the most in the SE region.
In 2002-03, Site Selection Magazine applauded several NC initiatives (e.g., the State Ports Credit, Qualified Business Venture Credit extension, and Economic Stimulus and Job Creation Act) (Source: Site Selection Magazine).
In 2004, the Tax Foundation ranked NC 30th in the US and 8th in the SE region in business tax climate, an index measuring each state tax system (i.e., corporate and individual income taxes, sales tax, unemployment insurance tax and state fiscal balance). In contrast, a Council on State Taxation/Ernst & Young study concluded that, as of 2004, NC (along with Delaware) had the lowest effective state and local business tax rate as a percent of private sector GSP.
  
   
In 2004, the Beacon Hill Institute (Suffolk University) ranked NC 26th in the nation and 3rd in the SE region in its ability to attract business and generate income.
Other
In 2002, only 3.2% of NC's employees were union members, the lowest percentage in the US (Source: Bureau of Labor Statistics).
Southeast Region
National
Global
  Data Links
NC Commerce Department
Site Selection Magazine
Tax Foundation

 
Progressive Policy Institute
Corporation for Enterprise Development
Economic Policy Institute
Southern Growth Policies Board 2004 report
Imperative 6:   A Prosperous Economy
Goal 6.2: Attract and Nurture Emerging Economy Sectors