North Carolina's economic growth and development were determined in part by its soil, which was less suited for huge plantations than for small farms, and by its midland streams, which produced electric power for industry.
Agriculture.
Virtually all of North Carolina's early settlers were involved in agriculture, and until after World War I, the vast majority of North Carolinians were farmers. Except for a few areas of the Coastal Plain, subsistence farming was characteristic, even during the period of slavery. Money crops - first cotton and then tobacco - increased in the 19th century, and by the 1920's, tobacco was grown so extensively that North Carolina produced more than 40% of the nation's crop. The state also ranks at or near the top in the production of sweet potatoes, cucumbers, peanuts, and soybeans. Corn, vegetables, and fruits provide substantial income. Dairying and poultry raising are increasingly important. All of these agricultural activities, however, now account for only a very small percentage of the gross state product and of the work force. Mechanization of farm work helps explain a new trend toward fewer but larger farms and toward a diminishing number of farmers.
Fishing.
Commercial fishing fleets catch about a dozen kinds of finfish and five kinds of shellfish along the more than 1,000 miles (1,600 km) of tidal shoreline. The prized species include shrimp and crabs among shellfish, and flounder, croaker, trout, and bluefish among the finfish. Menhaden, caught by the billions, are converted into fish oil, meal, and fertilizer. Trout farms in the western counties produce millions of pounds annually.
Lumbering.
Primacy in the export of pine products in the antebellum era gave North Carolinians their nickname, "Tar Heels" (always written as two words); but more recently, lumbering, including the planting and growing of forests, has become an important industry. Several major pulpwood plants operate in the state.
Mining.
The state ranks low in the value of its mineral production, but native minerals are used widely in the manufacturing and construction industries. North Carolina is a leader in the production of feldspar, kaolin, lithium, mica, oviline, asbestos, phosphate rock, and bricks. Of special importance are crushed stone, gravel, sand, crystalline limestone, and marble. Of metallic ores, tungsten reserves are yet to be mined extensively. Once important to the economy, gold mining now is of little more than historical interest.
Energy.
Hydroelectric power produced by Piedmont and western rivers once met the needs of the state, but fossil-fuel-powered steam plants now provide most of the energy. Several nuclear-powered plants supplement that production.
Manufacturing.
Except for agriculturally related manufacturing, there was little industry in North Carolina until after the Civil War, when the availability of water power, raw materials, and cheap labor attracted the textile industry to the Piedmont. The subsequent production of electric power accelerated the concentration of manufacturing in the area, including the booming tobacco industry centered in Durham, Reidsville, and Winston-Salem. Greater geographic dispersal occurred as transportation improved, and industries could then locate in rural areas formerly unattractive to business.
North Carolina leads the South in industrial output, its manufacturing industries accounting for nearly a third of the civilian labor force and gross state product. The state is noted world-wide as a manufacturer of textiles, including ready-to-wear clothing. It produces more tobacco products than all the other state combined. Food products rank high in share of total income. With emphasis on research and technology, the electronics, metallurgical, and chemical industries have grown rapidly, and this in turn has spurred the introduction of technical training in the schools and colleges. North Carolina also remains a chief furniture-manufacturing state.
Service Industries.
Striking changes in the economy have resulted from the growth of service industries, which now employ nearly two thirds of the work force and provide more than half of the gross state product. Business and professional services, retail trade, and government each employ over a half-million Tar Heels, followed by wholesale trade, transportation, and finance.
Transportation.
The barrier islands and the shallow southeasterly running rivers hindered the development of transportation in North Carolina. From east to west, roads continually encountered streams, and early travelers frequently commented on the difficulties of travel. Railroads were not introduced until 1840, and the early ones ran north-south. Not until the 1850's was the Coastal Plain effectively connected to the Piedmont by rail. In the same decade, a few plank roads - heavy timbers covered with thick wooden planks - were experimented with, but it was not until after 1900 that the first roads were hard-surfaced. The advent of the automobile and steadily increasing traffic led to major road improvement programs under governors Cameron Morrison and Kerr Scott, and in the last half of the 20th century, North Carolina developed the largest state-maintained road system in the nation. The total mileage included nearly 1,000 miles (1,600 km) of interstate highways and a 255-mile (410 km) stretch of the Blue Ridge Parkway. Road improvement remained a priority.
Lacking good natural harbors, the state in the 20th century developed Wilmington and Morehead City as ports of entry. Nearly two dozen smaller ports handle barges and serve coastal shipping. The Intracoastal Waterway, which is maintained by the federal government, provides a route for commercial and pleasure craft through the sounds along the entire length of the coast.
Large trucking companies headquartered in North Carolina offer freight transportation, and the major bus companies furnish passenger services. Air transportation has increased dramatically. Direct international flights operate from Charlotte and Raleigh-Durham, and other major airports provide domestic service. Hundreds of small airfields are in use, some of them reserved for gliders, hot-air balloons, and other private purposes.
Other Industries.
The state's economy is boosted by the presence of military installations, at which are based thousands of men and women in uniform. Fayetteville and surrounding towns are affected by Fort Bragg and Pope Air Force Base; Jacksonville, by Camp Lejeune Marine Base; and the New Bern area, by Cherry Point Marine Base. Among the increasing number of towns that have become magnets for retirees are Pinehurst, Southern Pines, Chapel Hill, and several mountain communities. Filming is often conducted in the state, and several studios have been established.
Tourism.
The Outer Banks and the mountains have drawn tourists to North Carolina since the 19th century. In the last half of the 20th century tourism grew into a multi-billion-dollar industry. Diverse physical attractions, a moderate climate, and the state's long history appeal to travelers. Each major region has its distinctive features. Beaches, seaside resorts, fishing villages, and picturesque early settlements grace the Coastal Plain and Outer Banks. Fashionable resorts and famous golf courses draw the elite to the Sandhills. Artificial lakes, historic restorations, distinguished educational institutions, and outlet shopping malls are popular destinations in the Piedmont. And in the far west, the Great Smoky Mountains National Park, Cherokee Indian Reservation, summer and winter sports, and artisans practicing traditional skills add to the natural lure of the mountains. Welcome centers on major highways entering the state provide maps and literature for visitors.
