North Carolina is rapidly establishing itself as an attractive alternative to traditional medtech hubs through focused investments in workforce development and manufacturing capabilities.
The state has quietly evolved into a powerhouse within the life sciences sector, particularly known for its leadership in biomanufacturing across the United States.
With over 860 life sciences companies employing more than 76,000 individuals statewide, North Carolina boasts a distinctive blend of premier research institutions, a skilled manufacturing workforce, and a strategic East Coast location. These attributes are drawing both established medtech giants and innovative startups alike.
Recognized for its favorable business climate, North Carolina was named the top state for manufacturing by the Site Selection Group in 2024. The state enjoys one of the lowest corporate income tax rates in the nation, currently set at 2.5%. Additionally, local and state governments provide various economic incentives such as grants and tax breaks to attract new investments.
Prominent companies like Genentech, Eli Lilly, FUJIFILM Diosynth, and Novo Nordisk have already established facilities in the state. Recently, Japan’s Nipro Medical Corp. announced plans to build its first North American manufacturing facility in Greenville, while Netherlands-based Nelipak opened a new flexible packaging production site. Johnson & Johnson has also broken ground on a new facility, and GMAX Industries Inc. has chosen Winston-Salem for its manufacturing base.
Navigating Post-Pandemic Challenges
As the medical device and diagnostics sectors adapt to post-pandemic supply chain disruptions, the growing demand for reshoring, and rapid technological advancements, North Carolina’s diverse ecosystem—spanning biopharmaceuticals, medical devices, diagnostics, and agricultural technology—positions the state as a viable alternative to traditional hubs like Massachusetts, California, and Minnesota.
To delve deeper into what sets North Carolina apart in the competitive medtech landscape, Christopher Chung, CEO of the Economic Development Partnership of North Carolina, shared insights on the state’s talent pipeline and emerging growth opportunities.
A Leader in Medical Devices and Diagnostics
North Carolina is celebrated as the leading biomanufacturing hub in the country, but its status in the medical device and diagnostics sectors is equally noteworthy. According to Chung, the state has over 160 device and diagnostic companies, including notable names like Aptyx, bioMérieux, and Labcorp. The influx of new investments from companies such as ESSERT Robotics and Ypsomed further underscores this growth.
What distinguishes North Carolina from other established medtech centers is its dual advantage: a rich pool of research talent and a capable manufacturing workforce. Five Tier-1 research universities in the state produce over 6,000 biological and biomedical graduates each year, complemented by the largest manufacturing workforce in the Southeast. This synergy provides companies with a unique edge when considering expansion.
Composition of the Life Sciences Ecosystem
The life sciences ecosystem in North Carolina is broad and continually evolving. With over 860 companies employing more than 76,000 individuals, the biopharmaceutical sector leads with nearly 34,000 employees across 108 facilities. Clinical research accounts for another 24,000 workers, while the medical devices and diagnostics sector includes more than 160 companies. The agricultural technology sector contributes an additional 180 companies.
Encouragingly, the growth rate in North Carolina has outpaced national averages. Since 2021, employment in pharmaceutical manufacturing has increased by 12%, compared to 6% nationwide, while medical device employment has grown by 5%, more than double the national rate. This diversification is one of North Carolina’s most significant strengths.
Trends in Investment and Growth
Chung notes that North Carolina’s life sciences sector is not only diverse in products but also geographically spread across the state. A particularly vibrant area right now is the development of GLP-1 weight-loss drugs. This segment has attracted substantial investments, highlighted by Novo Nordisk’s monumental $4.1 billion investment, which will create 1,000 jobs at its Johnston County location.
Both new companies and existing players are making significant investments in North Carolina, indicating a robust growth trajectory.
Capturing Reshoring Investments
In the wake of the pandemic, the emphasis on reshoring and diversifying supply chains for medical devices and diagnostics has intensified. North Carolina is well-equipped to capture this investment, having a solid foundation of medical device manufacturers and a strong contract manufacturing base.
When companies consider relocating production domestically, they often prioritize the availability of a skilled workforce, quick access to facilities, and confidence in the regulatory landscape. While capital costs are significant, the ability to demonstrate a credible path to operational readiness often weighs more heavily in decision-making. The state’s strategic East Coast location enhances its appeal, providing easy access to major markets.
The Role of Established Companies
Global medtech leaders like BD, Teleflex, and bioMérieux have significant operations in North Carolina, drawn initially by the Research Triangle and its proximity to top universities. The established cluster of life sciences companies further attracts talent, enhances supplier networks, and develops essential infrastructure, creating a self-reinforcing cycle of growth.
Building the Talent Pipeline
Workforce availability is a critical factor for companies making site selection decisions. North Carolina has made considerable investments to strengthen its talent pipeline, particularly in precision manufacturing, quality systems, and regulatory affairs. The state’s community college system plays a pivotal role, with initiatives like BioWork offering entry-level training for individuals without prior science backgrounds.
Additionally, specialized training facilities, such as a new life sciences training center at Durham Tech, are being developed to meet the industry’s evolving needs.
Future Opportunities and Challenges
Looking forward, North Carolina is well-positioned for future growth, benefiting from its top-tier research universities and a solid base of manufacturers in devices and diagnostics. There are significant opportunities in emerging areas such as digital health and AI-driven diagnostics. However, the challenge remains to ensure that the workforce can keep pace with demand, particularly in specialized fields.
Economic developers are focused on making North Carolina a place where companies can consistently find the talent necessary for sustained growth.
The future of North Carolina’s medtech sector appears bright, bolstered by robust investment, a rich talent pool, and strategic positioning in a rapidly evolving industry. With the right focus on workforce development and collaboration, the state is poised to remain a leader in the life sciences arena.
Key Takeaways
- North Carolina’s medtech ecosystem is characterized by a blend of research talent and manufacturing expertise.
- The state has seen impressive growth in pharmaceutical and medical device employment rates.
- Significant investments in training and workforce development are underway to meet industry demands.
- North Carolina’s strategic location and favorable business climate continue to attract both established companies and newcomers.
In summary, North Carolina’s medtech boom is a testament to its strategic investments and collaborative ecosystem, setting the stage for sustained growth and innovation in the sector.
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