To ensure North Carolina’s continued economic success, it is crucial to understand and leverage the state’s economic strengths. Analyzing gross domestic product (GDP) data from the Bureau of Economic Analysis offers insight into which industries are key contributors to the state’s economy.
The Nondurable Manufacturing subsector accounts for about 60% of Manufacturing GDP in North Carolina, with significant contributions from Food, Beverage, and Tobacco Manufacturing and Chemical Manufacturing, including Pharmaceuticals. In Professional Services, GDP is largely derived from Miscellaneous Professional, Scientific, and Technical Services such as Accounting Services and Scientific Research and Development Services.
Examining industry output changes over time reveals that Professional, Scientific, and Technical Services have seen a remarkable increase of over 200% between 2004 and 2024. Real Estate and Rental Leasing along with Health Care and Social Assistance sectors also experienced growth exceeding that of total private industries’ output.
When comparing North Carolina’s growth to national trends, the state has outperformed the nation in four out of five top sectors except for Manufacturing. Notably, from 2004 to 2024, Professional, Scientific, and Technical Services grew by 223%, surpassing Texas by more than 40 percentage points in this sector’s growth.
These findings indicate that while Manufacturing remains a major driver by GDP share with steady growth, there is rapid expansion in sectors like Professional Services. This diversification reflects North Carolina’s evolving economic base. Recognizing which industries are expanding will guide leaders in targeting investment efforts effectively.
