North Carolina’s economic incentives program provides a glimpse into the inner workings of companies that want to recoup some money in return for sharing snippets of information. A lot of companies take the deal, with business pledging in 2025 alone to invest more than $24 billion in North Carolina and add about 35,500 jobs over the next decade or so.
The projects are tied to state economic incentive grants, which pay out after companies hit the capital spending and investment targets.
Here’s how seven companies followed through on their expansion promises. The information is based on Economic Investment Committee decisions made in late January. The state committee tracks the incentives and follow-through by participating companies.
PAREXEL pledged in 2019 to create 264 jobs paying an annual average salary of $110,511 as part of a move to locate a second U.S. headquarters in Durham. The state promised to pay the pharmaceuticals contract research and services company about $4.2 million over 12 years.
Since then, Parexel, which had been based in Massachusetts, has created 312 jobs paying an average annual wage of $187,008. The company has retained 632 workers in the state. It is owned jointly by the EQT private equity group and Goldman Sachs Asset Management.
The EIC awarded Parexel a payment of $376,500 for 2024, its annual portion of the 12-year state grant.
In 2011, North Carolina-based software developer RED HAT promised to create 300 jobs at an average wage of $83,082 and invest $8 million to expand its Raleigh headquarters. IBM bought Red Hat for $34 billion in 2019, and it’s been wildly successful. It has created 356 jobs paying an average annual wage of $379,651, or four times the initial projection. It has also invested $14.1 million in the expansion and retained 1,168 jobs.
The EIC awarded Red Hat a payment of $827,250 for 2024, its annual portion of a 12-year state incentive package totaling about $15 million.
Austin, Texas-based DIMENSIONAL FUND ADVISORS pledged in 2015 to create an East Coast headquarters in Charlotte with a $105 million investment that would create 316 jobs at an annual salary of $147,025. The $1 trillion asset manager has created 286 jobs at an annual salary of $214,338, while investing $157.3 million, including a South End area building. DFA’s job creation total fell within 90% of the target, so it hit its job creation goal.
The EIC awarded $1 million for 2024, part of an incentive package that could total $
10.3 million.
Starting in 2018, HONEYWELL moved its headquarters from New Jersey to a 23-story building in Uptown Charlotte. The Fortune 100 company promised to create 750 jobs at a minimum annual average wage of at least $278,560 and invest $248.1 million.
Since then, the company has created 1,101 jobs at an annual wage of $310,677. The company also invested $277.5 million. The EIC awarded Honeywell a payment of almost $4.1 million for 2024, its annual portion of an incentive package that could total $42.4 million over 12 years.
Now, Honeywell is splitting into three companies, two of which will be based in other states. The impact on Charlotte operations is unclear.
Japan-based packaging company AMERICAN FUJI SEAL pledged in 2020 to create 46 jobs with an annual wage of $48,744 in Hickory. Since then, the company has created 91 jobs with an average annual wage of $51,716. The EIC awarded American Fuji a payment of $34,200 for 2024, its annual portion of an incentive package that could total $765,000 over 12 years.
All deals don’t work out, however.
Aluminum beverage packaging company BALL CORPORATION pledged in 2020 to create 220 new jobs in Cabarrus County, paying an annual average wage of $70,555 and investing $383.8 million to join a beverage manufacturing hub run by Red Bull and Rauch.
Red Bull and Rauch have broken ground on a 2.3-million-square-foot production site, but don’t expect to begin operations until 2028 and not be at full production until 2028.
Cabinet-manufacturer AMERICAN WOODMARK pledged in 2022 to create 62 jobs and expand its operations with a $36.2 million investment in Richmond County. The Winchester, Virginia-based company hit its investment goal, but did not create any new jobs. Instead of retaining 948 jobs, its headcount decreased to 744 workers.
The company blamed poor home sales for a decline in its fortunes. ■