For the third time in six years, North Carolina has been ranked No. 1 for business climate and economic development by Business Facilities.
The State of the Year designation follows a strong 2025 calendar year that included major investment commitments from companies such as Amazon Web Services, JetZero, and Vulcan Elements. The state previously earned the top ranking in 2022 and 2020.
Anne Cosgrove, editorial director of the magazine, said North Carolina’s economic development infrastructure continues to support both new and expanding businesses.
“From JetZero choosing Greensboro at the Piedmont Triad International Airport grounds for the site of its first commercial airplane manufacturing facility to biotech firm Genentech building a manufacturing plant in Wake County, the state’s economic development infrastructure supports the growth of new and existing companies,” Cosgrove said. “Emerging supply chains are being cultivated here as well.”
She highlighted Vulcan Elements’ rare-earth magnet facility in Johnston County as an example, noting plans to invest nearly $1 billion and create 1,000 jobs.
Last year, Amazon Web Services announced plans to build an innovation campus in Richmond County along the South Carolina border. The company said the project would bring at least 500 high-tech jobs in cloud computing and artificial intelligence. The $10 billion investment marked the largest in state history.
JetZero has announced a planned $4.7 billion investment that is expected to generate more than 14,000 jobs. Vulcan Elements is developing a $1 billion rare-earth magnet factory, which is expected to be the largest of its kind outside China.
Biotechnology company Genentech plans a $700 million manufacturing facility in Holly Springs, projected to create 420 jobs.
State and local incentive packages played a role in attracting many of the projects. Most incentives include job-creation requirements, and historically fewer than half of participating companies fully meet the benchmarks needed to receive all available benefits.
Amazon’s 20-year agreement with Richmond County includes a 50% reimbursement on property taxes and a 65% reimbursement on personal property taxes, including high-value servers and networking equipment.
Incentives tied to JetZero’s project could reach as much as $1.5 billion. Vulcan Elements may receive up to $95 million in local incentives along with $25.2 million from the state. Genentech’s combined state and local package could total up to $13 million.
Lee Lilley, secretary of the North Carolina Department of Commerce, credited long-term planning and cooperation with local partners for the state’s continued success.
“Strategic investments in workforce development, infrastructure, and site readiness, combined with close collaboration with local communities and industry partners, are helping businesses grow while creating good jobs across the state,” Lilley said.
State officials say continued investment in workforce training and infrastructure will remain key as North Carolina works to maintain its competitive edge in attracting major employers.
