BANKING IN NORTH CAROLINA
INTRODUCTION
The banking and finance industries have existed for thousands of years, and lie at the heart of the modern
economy. One of the leading service-economy industries, banks and financial institutions have gained
employment and revenue steadily for decades. Yet even in the midst of an American transition from a
manufacturing economy to a service economy, the industry faces substantial challenges and is undergoing
a major transition. Advancements in computer and information technology have allowed financial
transactions and services to be carried out faster than ever before. Changes in state and national regulation
have opened new horizons for American banks, but have also brought firms in close competition.
Globalization and changes in state and national regulation have allowed new market opportunities for
banks, but have also brought new international competitors. As banks and financial institutions adjust to
the new rules of competition, new players will emerge to push the industry forward.
Description of the Industry
The banking and finance industries, also known collectively as the financial services industry, includes
firms and institutions that are responsible for carrying out financial transactions or facilitating financial
transactions through services provided. A financial transaction, in this context, is defined as the "creation,
liquidation, or change in ownership of financial assets."1 Firms involved include commercial banks,
investment banks, mortgage brokers, securities brokers, asset management firms, securities exchanges
and trusts, as well as other unique types of financial organizations and vehicles.
Firms in the industry generally carry out two different types of financial transactions, or provide services
for these transactions:2



Raising funds by taking deposits and/or issuing securities and using those funds to make loans
and/or purchase securities. Firms engaged in these activities generally seek to channel funds from
lenders to borrowers and transform or repackage the funds with respect to maturity, scale and
risk. This activity is known as financial intermediation.
Pooling risk by underwriting insurance and annuities. Establishments engaged in this activity
collect fees, insurance premiums, or annuity considerations; build up reserves; invest those
reserves; and make contractual payments. Fees are based on the expected incidence of the insured
risk and the expected return on investment.
Providing specialized services to individuals and firms to facilitate or support either of the above
types of transactions.
TABLE 1 - NORTH CAROLINA'S TOP BANKING EMPLOYERS, 2007
Company
Primary
NAICS
Codes1
No. of
Locations,
100+
Employees2
Approx. NC
Employment
Total
Sales
(US$
mil.)
Approx.
Number of
Branches2
1
Bank of America Corp.
523, 55
2
6,700
1
trillion+
200
2
Wachovia Corp.
522-523,
55
5
5,546
520,880
500
3
Branch Banking & Trust Corp.
(Laureate Capital LLC,
Regional Acceptance Corp.,
Sheffield Financial LLC,
Stanley Hunt Dupree & Rhine,
Sterling Capital Mgmt. LLC)
522-523,
525, 532,
55
13
1,520
109,170
350
4
Vanguard Group
523
1
800
300
NA
5
Burlington Worldwide Apparel
315
1
700
300
NA
6
SunTrust Bank
522
1
700
NA
200
7
AON Consulting
524
1
650
300
NA
8
First Citizens Bancshares, Inc.
522-523,
55
5
625
90
300
9
RBC Centura Banks Inc.
522, 55
2
552
1,500
200
10
First Charter Corp.
55
1
480
4,232
50
11
Wake County Human Svc.
525
1
480
35
NA
12
Americredit Financial Svc. Inc.
522
1
430
NA
NA
13
State Employees' Credit Union
522
2
400
110
200
14
Greensboro War Meml.
Auditorium
522
1
400
75
NA
15
Federal Reserve Bank
522
1
370
NA
NA
16
Regions Financial Corp.
522
2
300
NA
10
17
ACS
525
1
300
35
NA
18
Deluxe Financial Svc.
522
1
300
300
NA
19
United Chemi-Con Inc.
334
1
300
8
NA
20
Volvo Commercial Finance
522
1
300
NA
NA
21
LSB Bancshares Inc.
522-523
4
279
300
35
22
First National Bank of Shelby
522
2
250
300
3
23
Shaw University
611
1
250
NA
NA
24
FNB United Corp.
522, 55
3
240
1,102
25
25
Cooperative Bankshares Inc.
522
2
225
208
20
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 522 (Credit Intermediation), 523 (Securities and Other Financial Investments),
525 (Funds, Trusts, and Other Financial Vehicles)
Other NAICS Codes: 315 (Apparel Mfg.), 334 (Computer Equipment Mfg.), 524 (Insurance Carriers),
532 (Rental and Leasing Services), 55 (Company Management), 611 (Educational Services)
2. Only establishments over 100 employees were tallied for this table. Number of branches is included to
provide relative sizes of banks, but employees of these branches are not tallied.
Source: Reference InfoUSA, 2/07
The Furniture Industry in NC
INTRODUCTION
The traditional North Carolina furniture industry has been experiencing drastic changes in the past
decade. Competition from countries like China and the rising imports of furniture into the United States
have led many furniture manufacturers in the state to shut down plants and lay off workers. Firms in the
industry are being forced to rethink their corporate strategies in order to remain successful. More
importantly, the industry's transformation into a global one raises many questions about government
action and government policy. Should the government be intervening more aggressively in order to keep
the industry, particularly within North Carolina, from withering?
General Industry Structure
Most consumers have a sense of what a piece of furniture constitutes, and yet the industry is a fairly
complex industry, due partly to the diversity of materials used to create furniture and partly to the broad
range of furniture used in our homes, businesses and institutions. There are three main types of materials
used to make furniture:



Wood (which comes from sawmills and the forestry industry)
Metal (which comes from mining/metals)
Plastic (which comes as an output of the chemicals/plastics industry)
In addition, furniture is often divided into several different types, depending on the type of furniture used:



Home furnishings consists of most furniture used in the home; examples would be bedroom or
kitchen furniture like beds and tables.
Office furniture includes functional furniture used around the office or workplace; this includes
desks, filing cabinets, and cubicle walls, among others.
Institutional furniture constitutes furniture used in a variety of institutions, from schools to
prisons to government buildings.
FURNITURE IN NORTH CAROLINA
History and Development
The furniture industry in North Carolina has been a major player in the state's economy for over a
century. The origins date back as far as the seventeenth century when artisans of English ancestry began
to settle across the state, producing simple yet functional furniture on a small scale. Early industrial
entrepreneurs and developers focused on the Piedmont section of North Carolina, especially the city of
High Point. The area was extremely well-suited for the furniture industry because of an abundant wood
supply from numerous hardwood forests, above-average railway and highway transportation opportunities
and the availability of cheap labor.1 By the 1980s, High Point had earned the nickname "The Furniture
Capital of the World," and employment peaked at around 90,000 people in 1990. High Point hosted its
first regional furniture trade fair in 1909; these events gradually evolved into High Point Market, an
internationally-renowned furniture trade fair.
Unfortunately for North Carolina, the furniture industry began to feel the effects of increased foreign
competition during the late 1990s. As competition increased and profits dwindled, many North Carolina
companies either went out of business or were forced to consolidate by closing factories, laying off
employees and importing products from overseas. Yet North Carolina still maintains a strong presence in
this industry, with about 52,400 active employees. The bi-annual High Point furniture market alone draws
more than 85,000 people to North Carolina every six months, and contributes around $1.2 billion to the
economy each year.2 An estimate from 2004 indicated that the industry contributes around $2.8 billion
annually to the economy.3
Geography of the Industry in North Carolina
Geographically, the industry remains concentrated in certain areas, especially the Piedmont Triad.
Catawba County (which includes Hickory) has the highest employment in the industry with more than
11,000 people working in furniture manufacturing. Three additional counties (Caldwell, Guilford and
Randolph) all employ more than 4,000, and two more (Alexander and Davidson) employ more than
3,000. Together, these six counties make up 63% of the entire state's employment in the furniture
industry.4 Key cities include High Point, Thomasville, Greensboro and Winston-Salem, among others.
Key Players
Thomasville Furniture and Broyhill Furniture Industries, both owned by Missouri-based Furniture Brands
International, are two of the most important furniture companies in North Carolina. Furniture Brands
International is ranked as one of the top furniture companies in the United States, with sales of $2.4
billion in 2006.5 Klaussner Corporation, based in North Carolina, was ranked the fourth largest furniture
supplier in the country as of 2004, though as a private company they do not release sales figures.6
Similarly, Lexington Home Brands had estimated U.S. sales of $167.3 million in 2006, and ranked as
number 16 on the top 25 furniture sources list published by Furniture Today in 2004. Most of these
companies are located within the Piedmont Triad region (primarily Guilford, Randolph, and Davidson
counties), in the north central region of the state.
TABLE 1 - TOP FURNITURE EMPLOYERS IN NORTH CAROLINA, 2007
Company
1 Furniture Brands Int'l Inc.
NAICS Codes
1
No. of
NC
Total Sales
Plants Employment (US$ mil.)
3371, 3372
26
4,999
1,017
2 Klaussner Furniture Industries
3371
1
3,700
302
3 La-Z-Boy Inc.
3371
20
3,472
710
3371, 442
3
1,400
900
3371
4
1,034
411
3371, 442
2
730
335
7 Mitchell Gold & Bob Williams
3371
2
701
35
8 Leggett & Platt Inc. (Collier-
3371, 321, 425
3
657
392
3371
1
650
300
10 Marsh Furniture Co.
3371
2
643
300
11 Craftmaster Furniture Corp.
3371
3
591
50
12 Hancock & Moore Inc. (Councill
3371
5
587
148
(Broyhill Furniture, Drexel Heritage
Furniture, HBF, HDM Furniture,
Henredon Furniture, Hickory Chair
Co., Lane Furniture, Laneventure
Inc., Maitland Smith LA Barge,
Pearson Co., Thomasville Furniture,
Thomasville Upholstery)
(American Drew Furniture, Clayton
marcus Co., England, Hammary
Furniture, Kincaid Furniture, La-ZBoy Furniture Galleries, Lea
Industries, Pennsylvania House
4 Ethan Allen Inc. (Ethan Allen
Galleries)
5 Stanley Furniture Co. Inc.
6 Lexington Home Brands (Lexington
Furniture)
Kenworth Co.)
9 Progressive Furniture Warehouse
Craftsmen, Jessica Charles)
Company
NAICS Codes
1
No. of
NC
Total Sales
Plants Employment (US$ mil.)
13 Mc Creary Modern Inc.
3371
3
533
308
14 Classic Leather Inc. (St. Timothy
3371
2
530
110
3371
1
500
300
3371
4
471
355
17 Hughes Furniture Industries
3371, 3372
2
465
50
18 Vanguard Furniture Co. Inc.
3371
2
450
79
19 HNI Corp. (Hon Co., Maxon
3372
2
445
110
3371
8
422
424
21 Kewaunee Scientific Corp.
3391
1
400
74
22 Barcalounger Co.
3371
1
396
75
23 Chromcraft Revington Inc.
3371
5
377
19
3252, 32615, 425
3
375
225
25 Lee Industries Inc.
3371
2
370
78
26 Kohler Co. (Baker Furniture, Canac
3371
6
350
158
3371
1
350
75
3371, 442
4
347
17
Chair Co.)
15 Caughan-Bassett Furniture (Elkin
Furniture Co.)
16 Sherrill Furniture (Hickory-White,
HWS)
Furniture)
20 CV Industries Inc. (Century
Furniture, Expressions Corp.,
Shuford Furniture)
(Cochrane Furniture, Silver
Furniture, Sumter Cabinet)
24 Hickory Springs Mfg.
Kitchens US, Dapha Limited)
27 Kroehler Furniture Co.
28 Bassett Furniture Industries
(Bassett Furniture, Bassett
Upholstery, Weiman Co.)
Company
29 Norwalk Furniture (Hickory Hill
NAICS Codes
1
No. of
NC
Total Sales
Plants Employment (US$ mil.)
3371
1
312
NA
3371
3
309
19
3371, 442
4
307
73
3379
1
300
1,470
3371, 321
1
300
75
321
1
300
75
3371, 3372
2
300
70
36 EJ Victor Furniture Inc.
3371
1
300
15
37 Southern Furniture Co. (Conover)
3371
1
280
35
38 Renaissance Stone
3371
1
275
35
39 March Furniture Mfg. Inc.
3371
1
250
75
40 Wesley Hall Inc.
3371
1
250
75
41 Dar/Ran Furniture Industries
3372
1
250
35
444
1
250
35
42344
1
250
NA
3371, 42383
45
226
82
321
1
200
300
3372
1
200
75
3372, 4532
5
200
59
48 King Hickory Furniture Co.
3371
1
200
35
49 Motion EAZE
3371
1
200
35
Furniture Corp.)
30 Hekman/Woodmark (Hekman
Furniture, Woodmark Originals)
31 Bernhardt Furniture Co.
32 Sealy Corp.
33 Arden Co.
34 Sierra Pacific Industries (ECMD
Inc.)
35 High Point Furniture Industries
42 Zickgraf Enterprises Inc.
43 American Greetings Corp. (AGI
Schutz)
44 Sally Beauty Holdings Inc.
45 CHF Industries Inc.
46 Clayton Homes Inc. (Schult Homes)
47 Office Depot Inc.
Company
NAICS Codes
1
No. of
NC
Total Sales
Plants Employment (US$ mil.)
50 Key City Furniture
3371
1
200
15
51 Newell Rubbermaid Inc.
3379
1
200
NA
(Levolor/Kirsch)
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 3371 (Household and Institutional Furniture), 3372
(Office Furniture), 3379 (Other Furniture)
Other NAICS Codes: 321 (Wood Product Mfg.), 3252 (Resin, Synthetic Rubber,
and Artificial Fiber Mfg.), 32615 (Urethane and Other Foam Product (exc.
Polystyrene) Mfg.), 3391 (Medical Equipment and Supplies Mfg.), 42344 (Other
Commercial Equipment Merchant Wholesalers), 42383 (Industrial Machinery and
Equipment Merchant Wholesalers), 425 (Wholesale Electronic Markets and Agents
and Brokers), 442 (Furniture and Home Furnishings Stores), 444 (Building Material
and Garden Equipment and Supplies Dealers), 4532 (Office Supplies Stores)
Source: Reference InfoUSA, 2/07
Hog Farming In NC
INTRODUCTION
Hog farming represents an integral part of the broader industry that entails the rearing, butchering, processing, and
selling of hogs, known as the pork production industry. Pork production consists of six separate stages: research and
development, hog farming, meat processing, finishing and packaging, product distribution, and retail. For North
Carolina, hog farming itself is the most important of these value chain links. The farming stage also consists of six
different areas, breeding, gestation, farrowing, weaning, nursery, and grow finishing. North Carolina firms
participate in all of these links. Astoundingly, hog farming in North Carolina is valued at well more than US $1
billion. Although pigs have been an historical part of the state's agriculture, it is in the 1990s that the sector has
experienced exponential growth. Within a decade, the hog population jumped, from around 2.6 million in 1988 to
over 8 million in 1997.1
One of the most interesting features to note is that the increase in the total population of hogs was accompanied by a
concomitant decline in the total number of hog farms. In 1986, there were 15,000 farms with at least one head of
hogs in the state. By the year 2006, there were only 2,300 such farms remaining. 2 In this section we highlight facets
of these trends - the consolidation of farms with the increase in the number hogs - along with several social,
political, and environmental concerns the industry faces.
HOG FARMING IN NORTH CAROLINA
As of the most recent Agricultural Census, in 2002, North Carolina ranks as the second-largest hog farming state in
the country, after Iowa.3 Other leading hog farming states are Minnesota and Illinois. Almost sixty percent of the
U.S. hog inventory is concentrated in these four states.4 The majority of the hog industry in the state is located in the
southeastern region of North Carolina, particularly in the counties of Duplin, Sampson, Bladen, and Robeson (see
Map). The timeline below highlights the growth and changes within the industry since 1980, and the political and
social steps government, labor and non-profit groups have implemented to affect change in the governance and
regulation of the industry.

1980: North Carolina hog farms range between 10,000 and 25,000 hogs in size.

1985: North Carolina ranks 7th nationally in hog production.

1991: North Carolina Senator Wendell Murphy co-sponsors legislation that exempts large-scale hog farms
from local zoning regulations.

1992: Smithfield Foods, Inc. opens the world's largest meat processing plant in Bladen County, North
Carolina.

1995: North Carolina Senate passes Bill 1080, the Swine Farm Siting Act, requiring new swine houses or
lagoons to be located at least 1,500 feet from an occupied residence, at least 2,500 feet from any school,
hospital, or church and at least 100 feet from any property boundary. 5

1995 (June 21): The lagoon at Ocean View Farms in Onslow County, North Carolina overflows dumping
over 20 million gallons of hog waste into the New River causing massive kills and spurs environmental
debate.

1996: President Clinton signs the Freedom to Farm Act in an attempt to cut federal-farming subsidies.

1997: The Clean Water Responsibility Act6, part of Bill 515, places a moratorium on the construction of
farms with more than 250 hogs or the expansion of existing large farms in the state of North Carolina.

1998: North Carolina's hog population rises to 10 million from 2 million in 1992. 7

1999: Hurricane Floyd hits North Carolina, flooding hog waste lagoons and contaminating the water
supply.8

1999: Renewed moratorium on "lagoon-farms"; there are no limits on farms using environmentally superior
technologies.

2000: The Smithfield Agreement: Smithfield Foods and Premium Standard Farms (PSF) entered into an
agreement with the Attorney General of North Carolina to fund environmentally superior technologies
(ESTs) for hog waste management. Researchers at North Carolina State University are charged with the
technology determinations.

2002: Frontline Farmers joins the Smithfield Agreement.

2003: North Carolina Governor Mike Easley successfully calls for a four-year extension of the moratorium
on the construction of hog farms in eastern North Carolina. 9

2005: Environmental Defense and Frontline Farmers draft a plan, which calls for elimination of lagoons in
North Carolina. The plan would gain sponsorship by Representative Carolyn Justice and becomes Bill
1532, the Clean Hog Farms Act of 2005.

2006: The Clean Hog Farms Act of 2005 is altered, becoming Bill 1730 the Clean Hog Farms Act of 20052, creating a cost-share program for farmers who volunteer to place ESTs on their farms. Despite this
change, the bill does not make it through the General Assembly of North Carolina.

2006: The Smithfield Agreement concludes. Researchers determine that none of ESTs evaluated are
economically feasible for existing farms. Five, though, would be economically feasible for new farms.

2006: North Carolina State University is awarded a $75,000 grant intended to spur the development of
byproducts from two of the leading ESTs. The project will generate value-added products from hog waste
and evaluate the economic potential of the products to generate new income for farmers.

2006: Smithfield Foods and Premium Standard Farms agree to $810 million merger.

2006 (November): A two day walk-out by workers at Smithfield Foods' Tar Heel, North Carolina plant was
met with the company meeting with a group of elected workers to negotiate a settlement to halt the
wholesale firing of immigrant workers.

2006 (December 2): More than 600 protestors from various labor unions, religious organizations, and
activist groups boycotted Smithfield Foods products at 11 North Carolina Harris Teeters, a North Carolina
based company. The protest, entitled North Carolina Statewide Day of Action, was to show support for the
workers at Smithfield's Tar Heel, North Carolina plant.
TABLE 1 - TOP HOG FARMING EMPLOYERS IN NORTH CAROLINA, 2007
Company
1
Premium Standard Farms
2
House of Raeford Farms Inc.
3
Smithfield Foods Inc.
Primary NAICS
No. of
NC
Total Sales
Codes
Plants
Employment
(US$ mil.)
311611
1
1,400
750
4244
1
1,000
300
311611, 1121
3
730
375
311612
1
578
300
1122
1
500
75
1
(Murphy-Brown, Stadler's Country Hams)
4
Con Agra Snack Foods
5
Maxwell Foods Inc.
6
Carolina By Products
311612
3
265
145
7
Martin Wholesale Meats
311611
1
150
75
8
Martin's Pork Products
311612, 4244
2
130
335
9
WolfsonCasing Corp.
311612
1
110
35
10 Carolina Packers Inc.
311611
1
100
15
10 Pork Co.
311612
1
100
35
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 311611 (Animal (Except Poultry) Processing), 311612 (Meat Processed from Carcasses)
Other NAICS Codes: 1121 (Cattle Ranching and Farming), 1122 (Hog and Pig Farming), 4244 (Grocery Wholesalers)
Source: Reference InfoUSA, 2/07
Textiles in NC
INTRODUCTION
The textile and apparel industries have traditionally held a fundamental role in North Carolina's economy, providing
thousands of jobs and revenue for local economies. In one sense, the industry is easy to define - the creation of
fabric or cloth out of original fibers, using mechanical or chemical processes. Traditionally, most people think of
textile products as feeding directly into apparel. Yet textiles & apparel is an expansive industry, with textile products
showing up in a variety of places, from construction materials to air filters, from automotive fabrics to upholstered
furniture. Specifically, the industry can be broken down in a number of different ways, including:

By fiber type (including natural fibers like cotton and wool, and synthetic fibers like nylon)

By fabric production process (including using yarn in knitting or weaving, or using nonwoven processes)

By fabric finishing process (including unfinished fabrics, coated fabrics, and a variety of other treatments)

By end product use (including apparel products, but also including medical products, construction products,
automotive products, and a host of other end uses)
North Carolina's textile industry is at a crossroads. In order to maintain their leadership as a provider of textiles in
the global economy, the industry is facing several key decisions in a new structurally changed economy and
business environment. Although they enjoyed for decades the status as a leading manufacturing state, producing
textile materials for international and domestic markets, increased competition, technological advancement, and the
United States' shift to a service-based economy have all left an indelible impact on the industry. In this section we
provide a snapshot of historical configurations and key trends - such as technological innovations, labor relations,
and policy changes - which are mapping the future of the industry and how North Carolina firms navigate the
rapidly changing terrain.
TEXTILES IN NORTH CAROLINA
Decline in North Carolina Textiles and Apparel Industries since 1996
This section highlights important industry developments over the last fifteen years in the state of North Carolina. We
see how such factors as an overall decline of textiles and apparel and the development of an increasingly fragmented
and dispersed industry have affected the state in key ways.
The overall decline of the industry is witnessed by the precipitous drop in factories and jobs that was brought on by
structural changes in the global economy. In 1996, there were 2,153 textile and apparel plants in North Carolina
employing 233,715 people. By 2006, there had been a 40% decline in the number of plants, to 1,282 plants, and a
65% decrease in employment to 80,232 workers (see Table 2a). The reasons for this decline are many, but four
principal themes can be discerned:
1.
2.
3.
Emergence of "buyer-driven" lead firms (retail) in global apparel and textile value chains1
Shifts in sourcing patterns of lead firms (retailers)
Rise in the manufacturing capabilities of firms globally
4.
Global quota phase-out of the MFA (Multi-Fiber Arrangement) regime in 2005 has led to loss of trade
protection formerly enjoyed by US textile and apparel companies and exposed them to the rigors of global
competition1
As the second-largest textile state and the third-largest apparel state in the United States in terms of employment,
North Carolina has been the hardest hit in terms of job losses and plant closings. Over a twelve month period ending
in May 2006 the state lost close to 7,000 jobs, more than double from the next most comparable state in textiles,
Alabama, with 2,800 job losses.2
Although we have seen a drastic decline in the textile industry, the apparel industry has fared much worse,
experiencing a 70% decline in jobs and 55% of plants from 1996 to 2006. The textile industry by comparison has
only lost 63% of jobs and 32% of plants from 1996. However, the textile industry (NAICS 313 and 314) is almost
three times bigger than the apparel industry (NAICS 315) in North Carolina, and employs more than 59,000
workers, accounting for 10.7% of all manufacturing employment. Apparel jobs number just over 20,000 in
comparison.
With the decline in the bulk numbers of factories operating in the state, one segment of the industry that is growing
is North Carolina firms exporting intermediate goods that overseas firms are turning into final products. 14% of
North Carolina exports fall within the textile and apparel industry. These exports include both finished goods that
are being sold abroad and intermediate goods that firms' plants in other countries will work on. For example, the
percentage of North Carolina exports made up of yarn & fabric products is on the rise, while the share of apparel
products is on the decline. This change is partly explained by the rising skill levels of global suppliers who can do
more and more finishing work, meaning that companies will export more fabric products that suppliers will then
turn into apparel. This is shown through the form of foreign direct investment (FDI) into lower-wage and lower skill
countries that are nonetheless moving into higher-valued activities within the industry. This is witnessed through
these countries receiving the majority of both yarn and fabric exports from the United States. Instead of sending
almost finished jeans to, for example, such countries as Honduras or Costa Rica where only final stitching is
required, now companies are starting to send them unfinished denim.
TABLE 1 - NORTH CAROLINA'S TOP 50 TEXTILE & APPAREL EMPLOYERS, 2007
1
Hanesbrands Inc. (National Textiles LLC)
313-315
15
4,530
1,049
2
International Textile Group
(Burlington Worldwide Apparel, Burlington Industries, Burlington
Menswear, Cone Mills Corp., Cone Denim LLC, Cone Jacquards)
313-315
10
4,046
1,311
3
Unifi Inc.
313-314
8
3,588
781
4
Collins & Aikman Corp.
313-315
5
2,798
635
5
VF Corporation
(VF Jeanswear LP, Lee Apparel Co.)
315
4
2,619
335
6
American Real Estate Partners
(West Point Home Inc.)
313
1
2,500
750
7
Cerberus Capital Management LP
(Guilford Mills)
313
5
2,221
611
8
National Spinning Co., Inc.
(Caron International)
313
4
2,010
410
9
Renfro Corp.
315
1
1,500
NA
313
6
1,389
726
313-314
17
1,378
264
12 Kayser-Roth Corp.
315
6
1,270
187
13 Carolina Mills Inc.
313-315
7
1,096
203
315
2
1,075
70
15 Royal Home Fashions
(Croscill Inc., Richmond Yarns Inc.)
313-314, 423
4
1,070
440
16 Cluett American Corp.
(Gold Toe Brands Inc., Moretz Inc.)
315
3
1,012
37
17 Stonecutter Mills Corp.
332
1
1,000
NA
313, 315, 4539
5
857
145
313
4
813
383
10 Coats North America
(Coats & Clark, Inc.)
11 Parkdale Mills (Magnolia Manufacturing)
14 International Legware Group
(Ellis Hosiery Mills Inc., Neuville Industries Inc.)
18 Delta Apparel Inc.
(Fun-Tees Inc., MJ Soffe Co.)
19 Patriarch Partners LLC
(Galey & Lord Industries Inc., Swift Galey)
20 Ramtex Inc.
313
1
800
75
313-314
4
769
140
313, 81149
5
753
127
23 Dak Americas LLC
313
1
700
300
24 Springs Industries Inc.
(Charles D Owen Mfg. Co.)
313
1
700
300
25 Highland Mills Inc.
315
1
600
35
26 Valdese Weavers Inc.
313
2
586
301
313, 551
6
562
383
28 Ethan Allen/Maiden Site
313
1
550
300
29 Clayson Knitting Co.
315
2
550
150
30 Frontier Spinning Mills
313
2
550
150
313-314
2
549
NA
313-314, 4239
6
536
353
33 Interface Fabrics Corp.
314
2
501
81
34 Mc Creary Modern Inc.
337
1
500
300
35 Ronile, Inc. (Gulistan Carpet)
314
1
500
300
36 Dan River Inc.
314
1
500
75
37 Huffman Hosiery Mills Inc.
315
1
500
75
313, 326
2
490
75
313-314, 4232
5
462
65
40 Jockey International Inc.
315, 4539
2
454
105
41 Berkshire Hathaway Inc.
(Fruit of the Loom Inc., Shaw Industries Inc.)
315, 4422
2
450
335
315
2
450
105
21 R.L. Stowe Mills Inc.
22 Glen Raven Inc.
27 Ruddick Corp. (American & Efird Inc.)
31 Fab Industries Inc.
(Mohican Mills Inc., Salisbury Manufacturing Corp.)
32 Joan Fabrics Corp.
38 Klaussner Furniture Industries
(Prestige Fabricators Inc.)
39 Leggett & Platt Inc.
(Cumulus Fibres Inc., Hanes Dye & Finishing, Hanes Narrow
Fabrics, Iredell Fiber Inc.
42 Kentucky Derby Hosiery Co.
43 Schneider Mills Inc.
81149
1
450
75
44 Mortex Apparel
315
3
450
65
45 Copland Fabrics Inc.
313
1
440
35
46 Polymer Group Inc.
(PGI Nonwovens Division)
313
3
425
335
47 Perry Manufacturing Co.
315
1
400
300
48 Outer Banks
314
1
400
75
49 Phantom USA Inc.
315
1
400
75
50 Mo Caro Indtries
313
1
400
8
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 313 (Textile Mills), 314 (Textile Product Mills), 315 (Apparel Mfg.)
Other NAICS Codes: 326 (Plastics and Rubber Products Mfg.), 332 (Fabricated Metal Product Mfg.), 337
(Furniture Mfg.), 423 (Durable Goods Wholesalers), 4232 (Furniture and Furnishing Wholesalers), 4239 (Misc.
Durable Goods Wholesalers), 4422 (Home Furnishings Stores), 4539 (Misc. Store Retailers), 551 (Company
Management), 81149 (Misc. Personal and Household Goods Repair and Maintenance)
Source: Reference InfoUSA, 2/07
Information Technology in NC
The information technology industry has grown by leaps and bounds in recent years, fueling the American economic
boom of the 1990s and subsequent growth and development. In the process, it has become a part of business in
nearly every major industry, from textiles to banking, from furniture to biotech. As globalization gathers speed, IT is
also rapidly gaining ground around the world, as more and more people and places connect every day to the global
information network. Yet with all the excitement of millions of new Internet users, however, many neglect to
understand the dynamics of the industry. While the spread of IT provides IT with tremendous market opportunities,
the industry faces renewed challenges of industrial competition, regulation, and resources that it must overcome to
succeed.
General Industry Structure
The information technology (IT) industry can be broadly defined as the sector of the economy providing the means
to transmit, store and process data in electronic forms. In practice, the industry can be hard to define, in part because
some products in the industry (for example, semiconductors) serve as inputs both to multiple segments of the
industry and to other industries. In other cases, voice data (as in telecom) and electronic data (as in computer
information) are considered to be separate. This categorization includes a variety of sectors, including both
computers and computing, networks and technology solutions, and telecommunications. IT covers a set of
manufacturing and service activities, including:

Semiconductors: This sector encompasses the development and production of a variety of chips that serve
as inputs for the hardware assembly and telecommunication industries, and also serve as components of a
variety of non-IT consumer durables.

Hardware: Hardware covers all hardware assembly (including personal computers, servers and
workstations), along with manufacturing of peripherals, networking equipment, storage and other
components.

Software: This sector includes the development of general operation systems and application software,
along with more customized, business-specific IT solutions.

IT/Telecom Services: IT Services include companies that produce services to the IT and telecom
industries, including wireless solutions, systems integration, software development, installation, and
support. This sector includes consulting services.
INFORMATION TECHNOLOGY IN NORTH CAROLINA
Information technology (IT) is one of the largest and most important industries located in North Carolina, employing
more than 87,000 people in 2006 (see Table 2a). North Carolina's strengths in this industry lie primarily in
semiconductors, hardware, and software. Even after the major setbacks in employment, nearly 65,000 people were
employed in those three segments.1 North Carolina does, however, serve as home to companies that are operating in
every sector of the industry, including IT/telecom services.
Key Players
Within these links, North Carolina's strength lies largely in manufacturing. Manufacturing remains a critical
component of the North Carolina IT industry, still employing more than 30,000 people. The major players in the
field that are located within North Carolina cover the entire manufacturing chain, from semiconductor
manufacturing to hardware assembly and beyond. Some key examples:

RF MicroDevices, a leader in the production of analog semiconductor chips and a beneficiary of the
booming market for wireless technologies.

Flextronics International, which provides a comprehensive set of R&D and logistical services to tap the
capabilities of its semiconductor fabricators, providing both chips and comprehensive integral packages.

Cisco Systems and Solectron, global leaders in the fields of storage and networking components, which
focus their North Carolina activities on assembly of manufactured products.

IBM, whose North Carolina operations rank second among U.S. states and include a highly profitable
server division.
North Carolina has also sought actively to attract new semiconductor and hardware businesses to the state. Within
semiconductors, while North Carolina has offered incentives to smaller semiconductor manufacturers to build and
expand operations within the state, it has been unable and unwilling to offer the larger capital incentives needed to
attract the larger global players in this industry. This is especially noticeable for foreign firms, as the state contains
no plants from leading foreign firms. In terms of semiconductor R&D and design, North Carolina has excelled both
within the U.S. and globally. A significant portion of design and development for major global firms takes place
here in RTP. In hardware, North Carolina has successfully attracted new Dell and Lenovo in the past few years,
sending a message that the state is a serious player in attracting new hardware manufacturing and building a core of
"magnet businesses" that can attract suppliers and customers.
North Carolina's Software Industry
The software industry in North Carolina has also improved recently, helped by the presence of several of the nation's
leading software companies. Microsoft, SAS, and Red Hat are examples of growing companies that are leading the
positive trend. Microsoft, which dominates the market for PC operating systems, and IBM, which is a key player
across the industry, both have substantial operations in RTP; SAS and Red Hat are both headquartered in RTP. SAS
is growing very rapidly in offering business solutions, while Red Hat is a leader in the increasingly popular open
source Linux OS and is working with IBM.
Many other steps that North Carolina is taking, though less direct, relate to the growth and development of the
software industry. For example, one of the most important preparations North Carolina is doing impacting the
software industry is in preparing its citizens to take part in the rise of computer usage in daily life. Currently,
Governor Easley maintains the importance in learning and functioning with cutting-edge technology, as through his
One Carolina Agenda, he proposes both the training of teachers in "21 st Century skills" and the opening of the first
"21st Century skills" center to increase citizen participation in a technologically advanced society. In addition, North
Carolina is seeking the help and support of top firms with greater access to resources, looking to build public-private
partnerships to increase citizen use and familiarity with computers.
North Carolina's IT Services Industry
IT Services, though traditionally smaller than the manufacturing-based sectors, seems to be growing in North
Carolina. Accenture's large office in Charlotte is a perfect example of the growth of the industry. Given the
relatively young nature of this segment of the industry, it is difficult to give policy implications or future projections
of where the model may lead. While corporate giants such as IBM have shown that it is profitable for large scale
corporations, smaller corporations still have been struggling, due to a lack of economies of scale and name
recognition these new companies cannot attain. The role of this developing industry in North Carolina remains to be
seen, but should be watched with great interest over the next several years.
Geography of the Industry in North Carolina
The geographic distribution of IT manufacturing and software development activities is concentrated, reflecting the
technological intensiveness of the industry, necessitating both the proximity of major research institutions and
appropriate infrastructure. Three counties - Durham, Wake and Mecklenburg - account for most of the plants and IT
industry employees, and with Guilford and Forsyth as rising locations, especially in IT services (see Maps).
North Carolina Exports in the IT Industry
Increasingly, North Carolina firms are also looking to export their goods abroad. Foreign demand for North Carolina
exports is growing, though it remains lower than 2000 levels. Asia has solidly increased its imports from North
Carolina, with China, South Korea, Japan, and Malaysia posting largest gains in recent years. Stagnating demand in
some industrialized economies (the United Kingdom, Canada and the Netherlands, among others) presents cause for
concern regarding future growth in exports from North Carolina (Table 4).
TABLE 1 - TOP IT EMPLOYERS IN NORTH CAROLINA, 2007
Company
Primary
NAICS
Codes2
No. of
Plants, 100+
Employees1
Approx. NC
Employment1
Total
Sales
(US$ mil.)
1
SAS Institute Inc.
5112
1
3,500
1,500
2
Verizon Communications Inc.
517
3
3,300
1,875
3
Tyco International US Inc.
334
5
2,000
785
4
Ericsson Inc.
4236
1
1,800
1,500
5
Andrew Corp.
334
1
1,400
750
6
Alcatel USA
238
1
1,400
300
7
Draka Comteq
237
1
1,200
300
8
Sprint Nextel Corp.
517
4
1,075
750
9
Heat Corporation
221
1
1,000
NA
10 Cisco Systems
5415
1
1,000
300
11 North State Communications
517
2
800
375
12 Southern Devices Div.
335
1
750
300
334, 4431
2
730
825
14 Lufkin Division
334
1
700
75
15 General Dynamics Corp.
334
3
655
185
16 Corning Cable Systems LLC
237
1
650
NA
17 Kaba-Ilco Corp.
333
1
608
NA
18 Atlantic Telephone
Membership
517
3
570
450
19 AC Corp.
333
1
550
75
20 Sonopress LLC
334
1
530
NA
21 Keane Inc.
5415
2
530
110
22 AT & T Inc.
(Bell South, Cingular Wireless)
517
5
510
215
23 RF Micro Svc. Inc.
334
1
500
634
13 EMC Corp.
Company
Primary
NAICS
Codes2
No. of
Plants, 100+
Employees1
Approx. NC
Employment1
Total
Sales
(US$ mil.)
24 Misys Healthcare Systems
4431
1
500
NA
25 Wilson-Cook Medical Inc.
334
1
500
NA
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 334 (Computer and Electronics Mfg.), 5112 (Software Publishing), 517
(Telecommunications), 5415 (Computer Systems Design)
Other NAICS Codes: 221 (Utilities), 237 (Heavy and Civil Engineering Construction), 238 (Specialty Trade
Contractors), 333 (Machinery Mfg.), 335 (Electrical Equipment Mfg.), 4236 (Eletrical and Electronic Goods
Merchant Wholesalers), 4431 (Electronic and Appliance Stores)
2. Only establishments over 100 employees were tallied for this table.
Source: Reference InfoUSA, 2/07
Tobacco Industry in NC
INTRODUCTION AND GENERAL INDUSTRY STRUCTURE
1
The tobacco industry has traditionally been one of the most important industries in North Carolina and a
backbone of the state's agricultural heritage. Yet as the North Carolina economy continues to transition from
an agricultural economy to a manufacturing and, increasingly, service-based economy, the industry faces
new challenges, both at home and abroad. Internationally, as barriers to free trade in agricultural products
slowly fall away, new competitors have arisen to challenge the North Carolina industry. In this section, we
look to describe the outline of the industry, North Carolina's footprint, important global competitors, and the
key trends and dynamics that are shaping this industry now and in the future.
The industry can be generally divided into two sections:

Farming - This includes not only the planting, tending, and harvesting of tobacco leaf, but
generally also includes initial processing steps, including curing tobacco to dry out the leaves and
stems. Farmers also sort and grade tobacco, based on criteria like color and aroma

Processing - This includes both initial processing of tobacco leaf (cleaning and resorting, stemming
and redrying, aging) and specific manufacturing processes for a variety of final products, including
cigars, cigarettes, and chewing tobacco.
TOBACCO IN NORTH CAROLINA
The introduction of tobacco into North Carolina has a long history. When settlers moved from Virginia to
North Carolina around 1663, they struggled to grow any other crop besides tobacco in the dry, sandy soil.
During this time, the Europeans viewed tobacco as a luxury and bought it from Spain. The new colonists saw
the opportunity in the overseas demand for tobacco and started growing tobacco in North Carolina as a way
to gain entry into the European tobacco market.
2
As centuries passed, the tobacco business became an integral part of North Carolina's culture. James B.
Duke formed the American Tobacco Company in Durham and, as it expanded around the world, it continued
to be based in Durham. Even today, tobacco is an instrumental part of North Carolina, especially because of
its role in the employment and economy of the state. In 2005, tobacco represented 15.5% of the total value
of all crops grown in North Carolina. In addition to these farmers, the tobacco business employs many
3
workers in processing, manufacturing, wholesale, and retail outlets, and related industries.
Every stage of production of tobacco, from tobacco growing to final product manufacture, is located in North
Carolina, and this state has been one of the centers of the US tobacco industry. North Carolina ranks first in
the United States in the production of tobacco, with 2006 annual farm income of $506.2 million. Tobacco is
4
a crop that can be grown in a wide range of soil and climate conditions, and 16 states and approximately
120 countries produce it across the world. Geographical differences exist in the production of the two main
5
types of tobacco produced in this state: air- and flue-cured tobacco. Air-cured tobacco differs from fluecured tobacco in a number of ways, including the filling power and pH of the smoke. North Carolina's soil is,
in general, more adept at growing flue-cured tobacco, and, thus, smaller amounts of air-cured tobacco are
produced in North Carolina.
Many prominent companies in the tobacco industry are linked in some way to North Carolina. Phillip Morris,
the country's largest cigarette company, is one example. Phillip Morris held 50.4% of the cigarette market in
the first quarter of 2007. While Phillip Morris' headquarters is located in Virginia, they maintain a
6
manufacturing facility in Cabarrus County. Other well-known companies are entirely based in North Carolina.
Reynolds American Inc. is another tobacco giant that recently formed when R.J. Reynolds Tobacco Co.
joined with the Brown & Williamson Tobacco Corp. in 2004. R.J. Reynolds is the second-largest tobacco
company in the country and is centered in Winston-Salem, North Carolina. R.J. Reynolds produced nearly
one out of every four cigarettes sold in the United States, and they own four of the nation's ten best -selling
brands (Camel, Winston, Salem, Doral). Finally, the Lorillard Tobacco Co., the third largest U.S. tobacco
firm, is centered in Greensboro, NC.
7
As centuries passed, the tobacco business became an integral part of North Carolina's culture. James B.
Duke formed the American Tobacco Company in Durham and, as it expanded around the world, it continued
to be based in Durham. Even today, tobacco is an instrumental part of North Carolina, especially because of
its role in the employment and economy of the state. Tobacco represents 14% of the total cash crop value
in North Carolina. In addition to these farmers, the tobacco business employs many workers in processing,
4
manufacturing, wholesale, and retail outlets, and related industries.
RECENT INDUSTRY TRENDS AND DEVELOPMENTS
Until 2004, the tobacco industry operated within a system of quotas in place since 1938. Recently, quotas
have become concentrated within relatively fewer hands. In the past couple of decades, demand for
cigarettes has declined while foreign competition in tobacco production has increased, thus threatening the
livelihood of U.S. tobacco farmers. As a result, the U.S. government has decided to limit quotas and price
supports in recent years. In addition, these changes affect other areas of the industry, most notably the
8
cigarette producers.
In October 2004, Congress legislated the end of tobacco quotas in exchange for a one-time buyout. This will
affect North Carolina substantially. One-third of the buyout money is going to 10% of the owners, some
being paid over $7 million due to the size of their quota holdings. Most experts predict that these huge
farms will prosper after the buyout because of their size. However, smaller farms will most likely start to
disappear.
9
Many farmers are responding to these and other competitive challenges by diversifying some of their crop
production. In 1997, 95% of farmers interviewed responded that they had grown or raised a commodity
other than tobacco within the past year. The commodities included a variety of livestock, grains, fruits, and
vegetables. Only a small percentage of these farmers, however, reported a profit from these enterprises.
This is, in part, due to the high profitability per acre that tobacco provides. There were internal and external
10
barriers to diversification, including rates of personal tobacco use, high relative income from tobacco, lack of
college education of many farmers, and the size of their farms. As imports continue to climb and smoking
rates in the general population fall, farmers should prepare themselves for declining demand by diversifying
their crops. By finding the commodities that are a good fit for their fields as well as profitable on the market,
this could prepare them for the future decline of tobacco.
TABLE 1 - TOP TOBACCO EMPLOYERS IN NORTH CAROLINA, 2007
Company
Primary NAICS
Codes1
No. of
Plants
NC
Employment
Total Sales
(US$ mil.)
1
Loews Corp. (Lorillard Tobacco Co.)
312221, 312229
5
2,663
1,511
2
Altria Group (Philip Morris USA)
312229
1
2,500
1,500
3
Alliance One Int'l. Inc.
(CRES Tobacco Co., Inc,)
31221, 312229, 42459,
42491
5
1,085
750
4
Export Leaf Tobacco Co.
31221
1
1,000
750
5
Reynolds American Inc.
312221, 312229
11
763
519
6
Vector Group LTD
312221, 312229
2
420
401
7
Commonwealth Brands Inc.
312221
1
230
750
8
Top Tobacco LP
312229
1
104
35
9
Alternative Brands Inc.
312221
1
75
300
11191
1
60
2
10 Kelly Farms
1. North American Industrial Classification System (NAICS)
Primary NAICS Codes: 11191 (Tobacco Farming), 31221 (Tobacco Stemming and Redrying), 312221 (Cigarette
Mfg.), 312229 (Other Tobacco Product Mfg.)
Other NAICS Codes: 42459 (Other Farm Product Raw material Merchant Wholesalers), 42491 (Farm Supplies
Merchant Wholesalers)
Source: Reference InfoUSA, 2/07