For much of the last half century, economic life in the heart of North Carolina has been characterized by factory closings, joblessness, and lowered expectations, particularly in the textile and furniture industries, which have faced competition from low-priced imports. This trend has been compounded by the disappearance of tobacco processing jobs.
However, in recent years, the region has experienced a significant influx of investment in cutting-edge industries such as biotechnology, computer chips, and electric vehicles, which has started to improve the fortunes of struggling communities.
North Carolina exemplifies this trend, which is also being observed in various regions across the Midwest and the South that previously endured the most severe consequences of trade. Research from the Brookings Institution indicates that these areas are now attracting substantial investments in forward-looking industries.
The Brookings study analyzed private investment pledges across the United States using data compiled by the Biden administration. The findings revealed that approximately $736 billion in investment has been promised over the last three years for key industries like computer chips and clean energy. Notably, nearly one-third of this investment is directed toward communities that were adversely impacted by the economic shifts following China's entry into the global trading system in 2001.
Mark Muro, a senior fellow at Brookings Metro, noted that traditional manufacturing areas maintain the skills and capabilities needed for production, which supports the idea that governmental strategies can mitigate the impacts of trade and automation on workers and communities.
These findings highlight the importance of industrial policy, particularly in light of potential new economic shocks stemming from China's slowing economy. There is growing concern that increased exports from China could threaten factory jobs in higher-wage nations.
As the U.S. approaches a presidential election with significant economic implications, contrasting strategies regarding trade management are emerging. Former President Donald J. Trump has positioned Chinese industry as a threat, advocating for steep tariffs. Meanwhile, the current administration, while maintaining many of these tariffs, is focusing on subsidies for strategic industries to bolster domestic production.
In Chatham County, North Carolina, which has struggled economically as manufacturing jobs declined, significant investments are being made to revitalize the area. In June 2023, Wolfspeed began construction on a $5 billion plant in Siler City, which is expected to create approximately 1,800 jobs and has received a $750 million federal grant under the CHIPS and Science Act.
Additionally, VinFast, a Vietnamese electric vehicle manufacturer, plans to invest $4 billion in a new factory that aims to create 7,500 jobs, while neighboring Randolph County is seeing a $14 billion investment from Toyota in electric vehicle battery production.
Across the region, various initiatives are transforming areas previously associated with decline into emerging hubs for forward-looking industries.
In Michigan, investments in electric vehicle and battery plants are similarly revitalizing communities long affected by industrial decline. NanoGraf, a Chicago-based company, is constructing a factory in Flint, a city historically tied to the automobile industry, supported by a $60 million Department of Energy grant.
The developments in Flint signify a turning point for a community that saw extensive job loss and economic deterioration. As local leaders and companies focus on harnessing the area's manufacturing heritage, there is a renewed sense of hope and opportunity amid the emerging trends in the electric vehicle sector.