North Carolina Manufacturing Industry: 7 Key Trends Powering Growth

Meta Description: North Carolina manufacturing industry is powering growth through technology, labor market shifts, and resilient agriculture. Explore 7 key trends, key data, and solutions for your enterprise.

RALEIGH — We often hear the refrain, “we don’t make things here anymore,” echoing concerns about the fate of American manufacturing since NAFTA and China’s entry into the World Trade Organization. But in reality, both manufacturing and agriculture in North Carolina tell a far more dynamic story. Our industries are pioneering new heights of productivity, efficiency, and innovation.

Let’s step beyond the myths to uncover the real trends, challenges, and breakthroughs shaping the North Carolina manufacturing industry and its vibrant agriculture and forestry sector. We’ll examine the evolving landscape of goods producing sectors, the role of digital technologies, critical labor market dynamics, and the future opportunities created by forward-looking solutions like those from Farmonaut.

Trend Comparison Table: The 7 Key Trends at a Glance

By examining these manufacturing output trends and agricultural advances, we see a state in transformation—grounded in tradition yet surging forward with innovation and strategic investment. Let’s deep-dive into each trend to discover what’s really happening in the field and factory floor.

1. Impact of Technology: Automation, AI, Digitalization in North Carolina Manufacturing Industry

North Carolina manufacturing industry’s growth over recent decades is inseparable from the impact of technology on manufacturing. Automation, robotics, artificial intelligence, and integrated digital platforms have fundamentally altered how North Carolinians produce goods.

• Automation has enabled our factories to turn out more products using fewer labor hours—explaining why output has grown while employment has declined.
• Digitalization in supply chains lets us track everything from raw materials to finished products, improving quality control and streamlining logistics.
• Sensors and Smart Machineries collect real-time data, monitor equipment health, and trigger alerts for preventive maintenance—boosting reliability.
• AI-driven production planning optimizes workflows, saving both input costs and raising throughput.

Today, a plant in the Research Triangle might harness dozens of digital systems: from ERP to IoT-based monitoring, transforming the landscape of goods producing sectors across North Carolina.

On the agricultural side, technology shifts are equally profound. Farms utilize satellite-driven crop monitoring, variable rate irrigation, and advanced fertilizers to maximize yield per acre. Solutions such as Farmonaut’s crop monitoring tools allow real-time surveillance and analytics for every field, empowering both large enterprises and family farms to compete with global peers. You can learn more about these platforms, and explore how to integrate them, on the Farmonaut Web App.

For developers or agribusinesses needing advanced integration, the Farmonaut Satellite Weather & Crop Health API unlocks direct access to high-frequency satellite data.

As we look at the impact of technology on manufacturing and agriculture, the enduring conclusion is that automation and digital innovation are job shapers, not just job replacers. Entirely new professions—from data analysts to robotics engineers—are now critical to our sector’s future.

This inflection point also connects to digital supply chain traceability solutions. With the increasing need to verify product origins for industries like textiles and food, blockchain-based platforms like Farmonaut Traceability bring transparency and consumer trust to North Carolina’s evolving supply chains.

Key Takeaways:

• Tech adoption boosts productivity, output, and competitive edge.
• Job roles are shifting toward higher skills—critical for sustained North Carolina economic growth.
• Manufacturing and agriculture increasingly rely on cyber-physical systems and real-time analytics for optimized output.

2. Workforce Dynamics: Labor Market in Manufacturing and Agriculture

North Carolina’s labor market in manufacturing and agriculture has undergone a dramatic rebalancing:

• In 1997, 800,000 of us held manufacturing jobs in North Carolina. By 2024, that number is 460,000—even as output rose substantially.
• This is not merely offshoring or the result of trade deals. The primary driver is increased efficiency via automation and improved techniques.
• Workforce demographics are shifting: demand is highest for skilled technicians, programmers, robotics engineers, and precision machine operators.

Automation, AI, and interconnected production lines allow us to do more with less—but also require a supporting workforce that is highly skilled, adaptive, and digitally literate.

• We continue to see a labor shortage for advanced manufacturing and digital agriculture roles, a problem that can hamper both innovation and expansion.
• Upskilling programs, technical colleges, and industry-academia partnerships are central to the state’s response.

“Advanced manufacturing jobs in North Carolina grew by 13% over the past five years, outpacing the national average.”

Within agriculture, we’ve moved from a majority of the population working as agricultural laborers—including family farm members, seasonal workers, and processing plant staff—to a highly specialized workforce. Today, we rely on digital farm managers and AI-powered advisory systems for key decisions. For example, Farmonaut’s Jeevn AI-based Advisory System (see advisory app) delivers custom crop management strategies directly to mobile devices, making advanced agriscience accessible.

The labor market in manufacturing and agriculture is, therefore, defined not by a surplus of workers but rather by a gap in available technical skills. This presents both an economic challenge and an opportunity for rising incomes and new career pathways across the state.

Key Takeaways:

• Decline in manufacturing employment is offset by job quality, skills, and rising wages.
• Upskill and reskill strategies are pivotal for North Carolina economic growth and for sustaining our competitive edge.
• AI-driven farm management tools are bridging the expertise gap in agriculture, while digital platforms enable efficient fleet and resource management for agribusinesses.

3. Export Growth & Global Trade Shifts: NAFTA, China, and Beyond

The competition in American manufacturing is shaped not only by domestic innovation but global markets. Major trade agreements—notably NAFTA and the accession of China into the World Trade Organization—have redefined which goods prosper here.

• While some textile and apparel production shifted abroad, North Carolina adapted by investing in durable goods—machinery, computers, electronics, vehicles, and more.
• By 2023, North Carolinians produced $8.6B of machinery, $7.4B of electronics, and $3.4B in vehicles and auto parts—notably exceeding traditional textile output.
• Exports continue to drive growth, especially for advanced manufacturing products.

One key reason why myths of decline persist: they focus on highly visible losses in traditional industries, overlooking how new sectors have replaced and outpaced them.

Increased exposure to competition from abroad did pressure local manufacturers, prompting them to adopt superior production practices, lean manufacturing, and aggressive technological upgrading.

• Our firms responded with innovative product lines and operational agility, enabling us to capture markets in the Americas, Asia, and Europe.
• Within agriculture, exports of processed food and fiber products remain a state strength, powered by digital traceability and sustainability certifications as provided by Farmonaut Traceability Solutions.

Key Takeaways:

• Competition and foreign trade have increased pressure but ultimately spurred resilience and adaptation.
• Advanced product lines—machinery, chemicals, vehicles—are now central to our global reputation.
• Digital tools help our producers comply with global standards, maintain market access, and build consumer confidence.

4. Shifting Sector Composition: From Textiles to Tech-Driven Manufacturing Output Trends

Another central element in North Carolina manufacturing output trends is the dynamic reshaping of sector composition.

• Non-durable manufacturing—textiles, paper, and lower-margin products—has diminished in dollar value over the past 25 years.
• Durable goods—including industrial machinery, computers, fabricated metals, transportation equipment, and chemicals—have expanded significantly.
• By 2023, chemical, plastics, and rubber manufacturing output exceeded $28B, far eclipsing former leaders in traditional sectors.

The resilience of our goods producing sectors comes from this pivot to complexity and higher value. We see new investments not only from established domestic leaders but also from innovative startups, all leveraging the region’s supply chain infrastructure and research triangle ecosystem.

• The value of furniture and wood products has declined by 34% since 1997, but higher margin goods have more than made up the difference.
• State incentives and economic development grants are targeting emerging fields: battery technology, sustainable packaging, electronic assemblies, and more.

In agriculture, output is also rising through value addition—processing, packaging, and branding of food and fiber for specialty and export markets.

Key Takeaways:

• Our competitive advantage comes from transitioning to complex, high-margin products and integrated value chains.
• Agricultural growth is tied to adopting technology and branding for specialty and certified goods.
• Firms can leverage analytics and regulatory tools like Farmonaut’s Carbon Footprinting to align with market and investor demands.

5. Agricultural Innovation and Precision Technologies Powering Agricultural Output in North Carolina

Our agricultural output in North Carolina surpassed $7.4 billion in the latest reports, making the state a top performer in food and fiber production. This is not simply due to more acres under cultivation—rather, it’s the widespread adoption of precision farming and technological upgrades.

• Satellite imaging and NDVI-based crop health monitoring now guide irrigation, fertilizer application, and pest management.
• AI systems process climatic data to forecast yields, optimize planting dates, and give early warnings on disease outbreaks.
• Farmonaut stands at the forefront here, offering solutions for blockchain-based traceability, fleet management, and carbon tracking—tools designed to scale operations, meet compliance, and reduce environmental impact. See our Carbon Footprinting platform for more information.

The agriculture and forestry sector leverages increasingly affordable data-driven tools. Farmonaut’s Large Scale Farm Management tools allow agribusinesses to monitor vast tracts remotely, schedule resource allocation, and comply with evolving regulations.

For individual farmers or cooperatives, the direct access through Android, iOS, and web apps ensures that precision agriculture isn’t just for large enterprises—everyone benefits.

Key Takeaways:

• Precision agriculture and technological innovation have led to record-breaking agricultural output.
• Remote sensing, AI-powered advisories, and blockchain traceability are revolutionizing both compliance and competitiveness.
• Farmonaut democratizes access to these advanced technologies—empowering both smallholder farms and large-scale enterprises.

6. Emphasis on Sustainable Practices: Carbon Footprinting & Resource Efficiency in Goods Producing Sectors

With the mounting visibility of climate change and environmental regulations, the goods producing sectors—from heavy manufacturing to modern agriculture—face growing pressure to lower their environmental impact.

• Stakeholders, investors, and regulators are demanding transparent carbon footprint reporting, sustainable input management, and food traceability.
• Firms that proactively measure and manage their emissions are better positioned for market access, export compliance, and consumer loyalty.
• Farmonaut’s Carbon Footprinting solution provides real-time emissions tracking for agribusinesses, aligning with new market and regulatory needs.

Sustainability also drives resource efficiency—lowering both costs and environmental risks. Fleet tracking applications like Farmonaut Fleet Management optimize logistics, reduce fuel waste, and support compliant reporting for large contractors and food processors.

For a deeper dive into traceability in specialty markets—textiles, food exports—see: Farmonaut Product Traceability.

Key Takeaways:

• Carbon management is now integral to manufacturing and agriculture business models.
• Transparent supply chains benefit brand reputation, pricing, and investor interest.
• Sustainability fuels both compliance and access to global premium markets.

7. Competition and Resilience in American Manufacturing: The North Carolina Example

One of the most misunderstood aspects of competition in American manufacturing is how some sectors contract while others thrive. What dominates news coverage are closures and layoffs, but what’s less apparent—and more important—are the births and expansions of new, high-growth firms.

• In 2023, our state’s goods producing sectors—manufacturing, agricultural, mining, and construction—generated a combined $159 billion output, 23% higher in real terms than 1997.
• The dramatic expansion of private services is shifting perceptions, but the core of our economy remains robust—and increasingly sophisticated.

Notably, personal income averaged $64,855 per North Carolinian in 2024, up nearly 50% (inflation-adjusted) since the late 1990s. This outcome is not simply service-driven; it’s the cumulative effect of higher-value goods, better technology, and a proactive approach to new market demands.

• Manufacturing output in dollar terms is at record highs, even as headcounts are lower due to efficiency.
• Services are growing faster, shifting sector shares but not diminishing the absolute value or importance of physical production.

To ensure continued resilience, it’s essential that we foster:

• Agile policy support for next-generation industries
• Investment in workforce transformation—skills, certifications, and advanced degrees
• Accelerated adoption of blockchain, AI, and real-time monitoring tools

Key Takeaways:

• North Carolina is both a national and global leader in advanced manufacturing and precision agriculture thanks to its proactive embrace of innovation.
• Resilience is built upon diversification, investment in technology, and continuous upskilling of our workforce.

Farmonaut Technologies Supporting the Sector

Tools like those available from Farmonaut are at the core of this transformation. Whether your enterprise is a family farm, a mid-size processor, or a Fortune 500 manufacturer, digital technologies now define both opportunity and risk in our state.

• Web App & Mobile Apps: Monitor crops, fields, or large farming operations on phone/tablet/web, receive AI-driven advisories, and access analytics from anywhere.
• API Access: Integrate real-time satellite and weather data into your own ERP or farm management system. Documentation: API Developer Docs.
• Carbon Footprinting: For firms needing to document and reduce their emissions—a requirement for many export and ESG markets.
• Product Traceability: Ensure your goods meet global traceability standards and earn consumer trust, especially for food, fiber, and textiles.
• Crop Loan and Insurance Verification: Leverage satellite-based field verification to reduce risk and speed up lending/claims processes.
• Fleet Management: Track and optimize vehicle resources, delivery routes, and supply chain flows for agribusiness or processing operations of any size.
• Large Scale Farm Management Solutions: Perfect for government agencies, cooperatives, and large enterprises to collectively monitor, administer, and advise vast agricultural holdings at regional or national scale.

Farmonaut Subscription Options

FAQ: North Carolina Manufacturing Industry & Agriculture Trends

Conclusion: Charting the Future Together

The evolving North Carolina manufacturing industry and goods producing sectors embody not decline, but dynamic adaptation. From the mechanization of agriculture in our grandparents’ era to today’s AI-driven advisory systems and real-time supply chain tracking, we continually reinvent what it means to produce, compete, and thrive.

As North Carolinians, our challenge and opportunity lie in embracing new technologies, supporting workforce development, complying with sustainability mandates, and capturing value across local and global markets. Tools like Farmonaut’s satellite-based management platform place transformative power in the hands of producers and manufacturers across every scale of enterprise.

Let us capitalize on record-high manufacturing outputs and agricultural advances by focusing on upskilling, innovation, and resilience. In doing so, we ensure North Carolina remains a national leader—today and in the decades to come.