North Carolina is now a national model for economic competitiveness, with five straight years of being recognized as one of the leading states for business. We’ve spent the last decade transforming our regulatory climate, welcoming major employers, and repositioning the state for long-term prosperity.
Advanced manufacturing, agriculture, tourism, aviation, and fintech services are opportunities that are fueling economic growth. But in 2025, we’re approaching an inflection point; and how we respond will determine whether we sustain this momentum or stall.
In a recent conversation with Jake Cashion, vice president of governmental affairs for the North Carolina Chamber, we analyzed the state’s economic outlook in detail. What quickly became clear is that while North Carolina remains in a strong position, we’re now facing a new set of challenges that demand thoughtful, proactive policymaking.
One of the most urgent issues is housing. North Carolina must build 750,000 new rental or for-sale housing units by 2029 just to keep up with current demand. If we meet that objective, the impact is substantial — nearly $500 billion in economic output, over 2 million new jobs, and more than $120 billion in new wages.
But getting there won’t be easy. Developers across the state are still managing headwinds, from a return to long-term interest rates to local zoning laws driven by NIMBYism. The Chamber has thrown its mighty support behind legislation like the Saving the American Dream Act, which aims to ease local restrictions and encourage municipalities to pursue greater housing density. Without reforms, we risk pricing out our own workforce and undermining the very growth we’ve worked so hard to attract.
Of course, housing is only part of the equation. Workforce development remains a top concern for employers across all sectors. Too often the term gets tossed around like a buzzword, but real solutions are starting to emerge.
Cashion highlighted a pilot program led by the NC Chamber Foundation that uses talent pipeline management tools to align training programs with real labor market demand — starting with the nursing sector and expanding into manufacturing and agriculture. The state community college system undergirds these efforts, which Cashion touts as one of the state’s most underutilized assets.
“If we can strengthen the link between education and employment, we not only help businesses grow, we also create more upward mobility for workers,” Cashion stated.
Child care is another issue that’s long overdue to be addressed. Accessible, affordable child care for working parents — especially women — is a top point of discussion amongst middle-income families. The Chamber is advocating for the state lawmakers to address this issue, and Cashion indicated that the current legislative session could deliver meaningful progress. Child care is a wedge issue. It’s also a workforce issue, and treating it that way is a welcomed change of course.
Infrastructure is also emerging as a top concern, as more and more demand is placed on public services. North Carolina’s explosive population growth is projected to make us the seventh most populous state by 2030, but it’s straining our capacity to meet the public’s expectations.
Cashion highlighted water and sewer infrastructure as an area of particular concern, especially in western North Carolina, where the effects of Hurricane Helene have added urgency. The state’s energy grid is another pressure point.
Population growth triggers higher demand for public services, and without adequate capacity, we undermine the very attractiveness that is the magnet drawing in companies searching for their next home. Smart, forward-thinking, and sensible public investments in water, energy, and transportation infrastructure must be a primary focus in the coming years ahead.
In regard to international trade, which our ports heavily rely on, the conversation around tariffs remains uncertain. The Chamber doesn’t take a legislative position on specific tariff proposals, but Cashion acknowledged oscillating trade agreements create uncertainty for North Carolina businesses — especially small manufacturers and agricultural exporters.
Meanwhile, North Carolina is cultivating international relationships with countries like India, Colombia, and Northern Ireland. These economic partnerships carry the potential for statewide businesses to expand into new markets and attract fresh private investment into the state.
Rural voters are depending on political and business leaders not to lose sight of the economic disparities in 95 of the 100 counties within the state. Urban regions such as Charlotte, the Triangle, and the Triad are expanding, but communities in western and eastern North Carolina are fighting to recover from natural disasters, economic disruption, and lack of health care resources.
Cashion firmly believes that North Carolina’s unique advantage is stability. Other large states are experiencing wild swings in economic confidence, but North Carolina continues to benefit from more than a decade of pro-growth public policy, conservative leadership in the General Assembly, and rock solid fundamentals. That said, business leaders are watching closely. Talent remains a top priority, as does access to housing, infrastructure, and predictable regulatory policy.
There’s no question that North Carolina is grounded and strong. But sustaining the momentum from recent years requires more than just celebrating national rankings or landing ribbon-cutting announcements. It means intentional, bipartisan legislative action to address the challenges that accompany growth — workforce development, housing, infrastructure, and competitiveness.