North Carolina’s Next Frontier: Defense Technology and Manufacturing
National security is intrinsically linked to food and health security and North Carolina is leading in ag/agribusiness, as well as bio and life sciences.
Unfortunately, North Carolina’s defense industrial capture is not as substantial.
Because talent, bases, and business presence already exist, we are well positioned to change that, but speed, coordination, and investment will determine whether the opportunity is seized in the near term.
We Are Not Leading in Defense – Despite Our Military Presence
North Carolina has a substantial defense footprint — from multiple major military installations and tens of thousands of DOD personnel, to a deep veteran and contractor workforce.
Couple that with our leading economic status and we should be unstoppable when it comes to defense tech and manufacturing.
Unfortunately, that is not our reality.
By the numbers:
- #1 for business climate and economic investment (CNBC, Business Facilities)
- #3 in population increase rate (U.S. Census)
- #4 in defense personnel and #6 in defense personnel spending (U.S. Department of Defense)
- #2 top biomanufacturing hub and #4 life sciences cluster (JLL)
- #4 food industry and #10 ag-producing state (EDPNC, U.S. Department of Ag)
- #30 in defense spending as a share of state GDP and #17 for total defense spending (U.S. Department of Defense)
Why it matters: Nowhere else in the country has our concentration of top research universities, large military population, advanced manufacturing expertise and talent, as well as available land.
North Carolina is primed to compete for defense tech and manufacturing.
We Know How to Do This: Ag and Bio/Life Sciences are the Blueprint
National security is intrinsically linked to food and health security with both biotech and ag being prioritized by our federal government as national security imperatives.
- The U.S. Department of Ag and the Department of War recently signed an MOU advancing the National Farm Security Action Plan to prevent the weaknesses in America’s food supply chain from being exposed.
- Biomanufacturing is defined as a critical technology area by the Department of War.
Why it matters: Our state’s experience building world-class agriculture and biotech sectors can serve as a blueprint for the future of North Carolina’s defense technology and manufacturing economy.
By the numbers: North Carolina’s agriculture and agribusiness sector contributes more than $111 billion annually to the state’s economy and life sciences is responsible for $82 billion.
- What they’re saying: Pharma Manufacturing recognized that, “North Carolina…has emerged as a major biomanufacturing hub, thanks in part to long-term strategic investments that have funded training and education infrastructure to foster continued growth.”
- We are intentionally building the same alignment for ag and agribusiness through NC Ag Leads. Its strategic plan stands out as the nation’s only state-specific plan for agriculture.
These clear, actionable roadmaps have and will guide our state for generations. It is time for us to develop the same thing to capitalize on the defense tech and manufacturing.
We Must Act to Lead
Now is the time for North Carolina to become the #1 state for military.
Why it matters: The business community plays a critical role as we collaborate to spearhead efforts in securing and prioritizing the retention and attraction of this industry to safeguard North Carolina’s future. As the feds push to reindustrialize, we must position our state to capitalize.
The bottom line: North Carolina has the essential components; it’s time to intensify our efforts with focused dedication.
Our state stands ready to lead. North Carolina boasts the education and talent for innovation, execution, and early adoption, alongside the nation’s best business climate, dependable and affordable energy, significant land resources, and robust supply-chain infrastructure.
Now is the time to complete the puzzle.
Leveraging our expertise in agriculture and biotech can help grow North Carolina’s leadership in defense technology and cement our status as the top state for military and national security.
Go deeper: “If ever there was a wake-up moment for North Carolina to get in the game quickly, this should be it.” Cofounder of the N.C. Critical Technologies Alliance Jarrett Lane explains that The Pentagon plans to spend all $152B in Reconciliation Bill funding this year.
What’s next: The NC Chamber is working with the North Carolina Critical Technologies Alliance to build and promote a coalition to get North Carolina into the top 10 for defense contract spending and research, development, test and evaluations contracts.