CHARLOTTE – North Carolina’s technology sector is a steadily growing engine for the state’s economy, the ninth annual State of the Technology Industry Report finds.

Key findings were released by the North Carolina Technology Association, NC TECH, during an event held in Charlotte on Friday.

The State of the Technology Industry Report benchmarks dozens of key metrics that pertain to the state’s technology sector and technology workforce, as well as shows how the state’s technology sector is contributing to economic growth. The data provides a dramatic example of how technology is transforming the state once best known for tobacco, furniture and textiles.

And it’s not just the technology sector where tech workers are fueling the state’s economic engine. The report found “very robust” growth in tech occupation growth at companies not considered primarily focused on tech between 2016 and 2021.

“We’re seeing a huge increase in tech occupation growth, but not as much in the tech sector,” said Ted Abernathy, managing partner of Economic Leadership, the firm that contracted with NC TECH to compile the report.

In fact,  the new report cites North Carolina as fourth in the nation, up from seventh. The state ranks 9th in population and has historically been strongest economically in agriculture and traditional manufacturing such as furniture.

“Tech occupations grew by 28 percent, over 11 percentage points above the national average,” the report reads.  “With this high growth, North Carolina ranking moved up from last year’s ranking of 7th and 11th two years ago to the 4th spot.”

And that portends a rosy outlook for the state’s economy, Abernathy noted.

“I am really bullish on the North Carolina economy,” said Abernathy.  “I believe we are about to enter a really dynamic period.”

Jobs surprise: US economy added 517,000 jobs in January, well more than expected

Tech sector growth has been strong

Across the state, tech sector job growth and tech occupation growth has been observed.  About 57% of the tech sector jobs are in Mecklenburg, Wake, or Durham Counties, according to the report, but Abernathy told WRAL TechWire that tech workers are increasing in many other counties across the state.

“We continue to grow,” said Abernathy. “And the technology sectors, all four of them, continue to grow, particularly in IT and in the life sciences.”

The number of technology companies operating in North Carolina has surged dramatically, Abernathy said.  “We’re now over 25,000 technology companies in the state,” he pointed out.

And those companies are hiring for more tech workers, even with recent news of tech sector layoffs.  The job growth in the state’s tech sector shows a steady upward trend, as an analysis conducted by NC TECH showed earlier this year.

Tech employment in NC is still growing despite economic challenges, report finds

Where growth is particularly strong

In particular, the North Carolina economy is strong in the life science sector and in technology manufacturing, two industry subgroups where the data show that there is a high concentration of tech sector employment.

While the report flags energy tech as the subsector where there is the least workforce concentration, that could be changing in the coming years.

That’s because the data for the report tracks through 2021.  And in 2022, North Carolina became the state selected by electric vehicle manufacturer VinFast, aerospace manufacturer Boom Supersonic, and Forza X1, which plans to construct and manufacture electric watercraft in the state.  The state also continued to add solar, wind, and other renewable energy jobs in 2022, as well.

“The big takeaway is that the state has been diversifying its tech jobs over the last several years,” said Abernathy.  “That looks like to me that we’ve hit a critical point where tech occupational growth is happening faster than growth of people working at tech companies.”

Report: Job cuts top 100,000 in January – most are not in high tech

Technology is everywhere, and tech skills are in demand

“We’re seeing huge technology infusions into companies, all over the state,” Abernathy told WRAL TechWire, adding that technology has spread everywhere, and “permeates every industry.”

Beyond the spread of technology roles across the state’s diverse industry base, technology roles are increasing in most of North Carolina’s 100 counties, as well.

“We are attracting a lot of skilled labor into the state,” said Abernathy.  “We are growing.”

Tech occupations a growing part of NC economy.

Tech Occupations as a Percentage of All Occupations, 2021. NC TECH / STIR image. Data source: EL estimates based on Lightcast 2022.4

That leaves North Carolina positioned well, even though the state’s tech sector growth is projected to slow somewhat.

“North Carolina IT growth is currently projected to level off in the future,” the report notes.  “From 2022 to 2027, employment in IT is expected to grow by 8 percent, right around the national average. The state’s ranking on this metric is down to 25th from 21st last year.”

However, tech occupations are forecasted to grow at the 17th fastest rate in the nation, the report found.  “There are some really strong areas of the southeast, and I think that the depth of the tech labor pool is critical to company growth, and North Carolina is one of those places that has depth in the tech labor force,” said Abernathy.

That gives the state an advantage, said Abernathy, and the state is getting better and better at preparing tech sector and also tech occupation workers.

“Now, we’re going to get the advantage,” said Abernathy.  “The state has done a good job of seeding STEM trainings, including in high schools.”

Hey, job seekers: Many tech firms in Triangle are hiring – here are skills they want