A number of companies that promised big growth in North Carolina have reneged on economic incentives deals as their employees opt to work from home.
Why it matters: Economic incentives fueled North Carolina's rebound from the collapse of the textile industry in the late 20th century. They helped diversify the state's economy after the Great Recession, too, drawing in companies like Honeywell and Apple over the years.
What's happening: Several site consultants who spoke with Axios say office-based projects in their pipelines have slowed as companies rethink their footprints. But demand for new manufacturing space — workplaces where employees need to be present to do their jobs — remains strong.
Between the lines: In Raleigh, Advance Auto Parts and Arch Capital canceled incentives agreements with the state, citing remote work as a factor.
What they're saying: "Even today, I am getting calls from companies exploring, perhaps, locating dozens of executives in North Carolina — but their whole salesforce would be remote and not North Carolina taxpayers," Copeland said. "It's just changed the way you look at it."
The intrigue: Some have suggested cities should increase their focus on investing in the infrastructure and quality of life improvements that would make them more attractive to remote workers who can live anywhere.