Growing N.C.'s Economy

While many states are trying to grow their defense economy, North Carolina is getting results.  The state is poised for explosive growth thanks to the proactive strategy put forward by the Foundation. The Defense Asset Inventory and Target Industry Cluster Analysis provides a strategic roadmap for aligning the state’s core strengths in industry, academia and R&D with emerging requirements of the U.S. Departments of Defense and Homeland Security. Read the Foundation’s cluster analysis (PDF).

For the emerging needs in key markets – alternative energy, gaming and simulation, performance materials, human factors, and others – the analysis showed that North Carolina is often the market leader. The findings also revealed, for the first time, where the clusters of innovation are located throughout the state.  

The Foundation’s strategy is now fully embraced by Governor Bev Perdue, her economic development team, members of the North Carolina Congressional delegation and defense industry leaders across the state.

C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance)

Expected funding for this market is strong as the Department of Defense plans to invest more than $28 billion in the next six years. There are more than 15 industries associated with C4ISR in North Carolina.

Fuel and Power Sources

DOD’s budget in this area has grown from $440 million in FY 2006 to $1.3 billion in FY 2009. North Carolina has at least 16 industries associated with this market, including storage battery manufacturing, electric power generation, transmission and distribution, and miscellaneous electrical equipment and component manufacturing.

Human Factors

This market area spans the spectrum from innovative social sciences research to the development and application of new technologies. North Carolina has a strong advantage in academia and industry. Specifically, eight institutions are home to diverse degree programs such as International Studies, Linguistics programs, Bioinformatics and GIS training programs. North Carolina is also home to the Institute of Homeland Security Solutions, which the Foundation helped establish.

Performance Materials

There are more than 100 North Carolina companies focused on plastics material and resin manufacturing, composites manufacturing, fiber manufacturing and non-woven and woven textiles.

RESET/Vehicles Support Activities

As a result of sustained military operations in Iraq and Afghanistan, the Army and Marine Corps predict that annual RESET costs will continue to reach $13 billion for the Army and $5 billion for the Marine Corps for as long as operations continue, and for two to three years after. The state’s motorsports industry is well-positioned to provide vehicle solutions to the military and the defense industry.

Unmanned Systems

Current funding plans for unmanned systems reflect their growing importance to the military. There are 24 core industries in North Carolina that cross over into this market area.