The Triangle area of North Carolina is currently experiencing significant economic growth. The region is considered the fourth fastest-growing metro in the U.S. This is due to several factors, including the influx of new businesses and residents and the expansion of existing companies.
The economic boost is beneficial for citizens and businesses alike. Companies can expect an increased demand for their products and services as the population grows. At the same time, citizens can take advantage of the cities' prospering job market and its newly developing infrastructure.
Business Growth in the Triangle
The population of Triangle cities has grown significantly in recent years, and the city provides a platform for a diverse range of businesses and industries. The region is home to more than 7000 companies, more than 700 of which are international.
In fact, Raleigh is experiencing a significant boost in the I.T. sector by providing one of the best metros for STEM professionals. Additionally, the city invited a cloud-based tech startup, Pendo, in 2018, creating more than 590 jobs.
Moreover, tech giants like Apple and Google have also opened shops in the Triangle region, significantly boosting the cities' economy. Apple plans to invest more than $1 billion in North Carolina to create a new campus and engineering hub in the Raleigh-Durham region. According to Business Insider, this move will create more than 3,000 new jobs in artificial intelligence and machine learning, software engineering, and other roles in the I.T. sector.
In addition, Apple plans to allocate more than $110 million to the North Carolina's infrastructure, which will further boost the region's economic boost.
Like Apple, Google has also established a Google Cloud hub in Durham, which is expected to create 1000 engineering jobs. The company aims to employ 300 employees by next year and create 500 more jobs in 2023.
Following their lead, Facebook's parent company, Meta, is also expected to open an office in the Durham region.
However, the I.T. sector is not the only industry that is attracted to the Triangle region. The automaker VinFast aims fund at least $4 billion in Chatham County for the construction of North America’s first assembly plant. The funding will employ around 7,500 workers and will add more than $500 million in net state revenue. The contract will also include $1.25 billion in economic incentives.
Similarly, Wolfspeed also plans to build new semiconductor plant at a 400-acre site, with a $5 billion investment in Chatham County. This initiative will create 1800 jobs, which will pay around $77,000 yearly.
Additionally, it is home to several major universities, including N.C. State University, Duke University, and UNC-Chapel Hill. These institutions are responsible for a significant amount of the city's economic activity, and they attract a large number of students and faculty to the Triangle Region each year.
Furthermore, the Research Triangle is ideal for businesses operating in the technology and life sciences industry. The city hosts several research parks and incubators, providing space and resources for startup companies.
Raleigh alone hosts more than 2,500 startups. The city has also been declared as the U.S's best place to start a business by the Lending Tree. Some of the city's success stories include Axios and Relay. Axios raised a funding of $2.4 billion in the second quarter of 2022, while Relay experienced a 645% growth in revenue within the past year.
Moreover, Raleigh Metro has also secured 4th place as a biopharma leader. The city is also ranked 6th as a life science leader and 9th as a global life science hub by Business Facilities. In fact, the city is also home to more than 600 life sciences companies, with more than 42,000 individuals employed in the industry.
The region has also attracted several CleanTech startups. Research shows that the Triangle cities comprise more than 1.9K Clean Technology companies, with more than 27 thousand employees and an average salary of $113K. These include ABB, Siemens, Duke Energy, and Schneider Electric.
Additionally, a new commercial building is set to open in Cary, just minutes from the site of Apple's planned campus. The building, located at the corner of Chapel Hill Road and Cary Parkway, will feature retail space on the ground floor and office spaces on the second floor. A local company is developing the building, and the project is expected to create dozens of new jobs.
Moreover, the cities also attract intellectuals from all industries. In fact, recent data shows that nearly 46% of Durham's population has a college degree. This is significantly higher than the national average of 33.3%. Furthermore, the cost of living in Raleigh is relatively low compared to other major cities. This makes it an attractive destination for businesses, as they can attract top-tier talent and provide them with reasonably-priced accommodation.
Additionally, the region is experiencing a dramatic shift in the population's racial profile. North Carolina's Triangle area is becoming more diverse, and the location is expected to host a majority of people of color by 2040. As a result, the cities' economic growth will also be positively impacted. The following table illustrates the racial/ethnic comparison of the Triangle region from 1980 to 2040.
Implications of Forecasted Growth
The booming economy of the Triangle region will have significant implications for businesses, especially since Raleigh is deemed the third best place to do business by Forbes. Companies must be prepared to accommodate more customers and employees to ensure long-term growth.
More Customers
With more people moving into the Raleigh area, businesses can expect to see an increase in customers. This means that businesses will need to be prepared to accommodate more customers. For instance, a company may need to hire more staff to serve the growing customers.
More Employees
Along with more customers, businesses in Raleigh can expect to see an increase in the number of employees they need. This means that businesses will need to be prepared to offer more jobs and provide training for new employees.
Increased Competition
As more companies move in to accommodate the growing population, increased competition may be expected. This means that businesses will need to be prepared to differentiate themselves from their competitors and offer products and services that meet the needs of their customers.
Wrapping Up
The Triangle area has long been known as a hub for business and industry. The region has recently seen population growth and a surge in economic development. This trend is expected to continue in the coming years as more businesses relocate to the Triangle.
The central location, skilled workforce, and quality of life make it an attractive place for businesses and employees alike. The region's transportation infrastructure is also a significant asset, with three major airports, a network of highways, and a robust public transit system. All of these factors combine to make the Triangle one of the country's most vibrant and dynamic regions.