Automotive Suppliers Site Selection

Low unionization and wages, superior transportation infrastructure, substantial incentives and tax breaks make the Carolinas ideal for automotive suppliers site selection. Over 5,000 automotive-related manufacturing plants are located on the Southern Auto Corridor, which stretches from Michigan to the southeastern U.S. The Carolinas are within a day’s drive of the Corridor—ideal for auto suppliers relocation.

Duke Energy offers one of the most powerful site selection tools available. For companies involved in automotive suppliers site selection work, the tool is designed to: Evaluate the demographics, wages, labor pool, transportation system, as well as search for sites, buildings, suppliers, competitors or customers throughout North or South Carolina.

Proximity to Automotive OEMs

Studies have proven that only a small percentage of suppliers locate within minutes of the assembly plant. Suppliers that locate nearby must provide critical technical expertise along with components. Approximately 29 percent of tier one suppliers are within a 100-mile radius of the plants they serve while 76 percent are within a 400-mile radius. Companies in the process of auto supplier relocation should consider that the Carolinas are within a one-day drive to 12 OEMs.

  1. General Motors (Saturn) - Spring Hill, Tenn.
  2. Nissan - Smyrna, Tenn.
  3. Mercedes - Vance, Ala.
  4. Honda - Lincoln, Ala.
  5. General Motors - Doraville, Ga.
  6. Ford - Hapeville, Ga.
  7. Nissan - Canton, Miss.
  8. General Motors - Bowling Green, Ky.
  9. Toyota - Georgetown, Ky.
  10. Ford - Louisville, Ky.
  11. BMW - Greer, S.C.
  12. Ford - Norfolk, Va.
  13. General Motors - Baltimore, Md.
  14. Hyundai - Montgomery, Ala.

Superior Transportation Infrastructure

A sufficient transportation system is critical for automotive suppliers site selection. The Carolinas are centrally located on the eastern seaboard of the U.S. and have a robust transportation network.

  • Four Class I railroads with 37 freight lines operate over 5,500 miles of track throughout the Carolinas.
  • The Carolinas recognize the importance of suitable roadways when being considered for automotive suppliers site selection. Crisscrossed with 6 major interstates (I-85, I-26, I-77, I-95, I-20 and I-40) and over 140,000 miles of highway, the Carolinas are linked to seaports, businesses and consumers in all directions. Approximately 96 percent of N.C. has access to four-lane highways within 10 minutes.
  • Five deep water ports, specializing in intermodal system terminals with interstate and rail access to markets throughout the U.S., are located in the Carolinas. N.C. was the first port operated inland container staging and storage facility in the nation. S.C. is the fourth largest container port in the U.S.
  • Charleston ranked 30th for tonnage transported across its transportation network (30 Million Short Tons).
  • Seven international airports (Charlotte-Douglas, Piedmont Triad, Raleigh/Durham, Wilmington, Greenville-Spartanburg, Charleston, and Myrtle Beach International), along with nine regional airports, provide a global gateway to and from the Carolinas.

Incentives/Tax Advantages

To demonstrate North Carolinas’ commitment to automotive suppliers site selection, the North Carolina General Assembly made significant enhancements to its existing incentive tools:

  • The Jobs Development Investment Grant, a key incentive tool, was expanded to 25 grants per year, and the cap was raised from $10 to $15 million, extended to 2006.
  • An additional $20 million was secured for the One North Carolina Fund (cash incentives).
  • The wage test was eliminated for Industrial Revenue Bonds.

South Carolina has one of the most attractive tax climates in the Southeast—no state property tax, no local income tax, no inventory tax, no wholesale tax, and no unitary tax on worldwide profits.

Quality Workforce and Competitive Wages

The Carolinas profited from the presence of the textile industry for many years. As this industry continued to move its operations off shore, many highly-skilled manufacturing employees were left behind. Companies in the process of automotive suppliers site selection in the Carolinas have a ready pool of talented and affordable workforce.

  • Affordable wages is a significant criteria for automotive suppliers site selection. The average manufacturing wage in the Carolinas is $13.20 per hour vs. $18.10 per hour nationwide.
  • The Carolinas’ 75-campus Community College System has emerged as one of the largest in the nation and is recognized as the national leader for its support of economic work force development and training. Companies involved in automotive suppliers site selection should evaluate the assistance available to them through programs such as ISO 9000, Total Quality Management, Team Building, Supervisory Development Training, Statistical Process Control and World Class Concepts.
  • North Carolina and South Carolina have the lowest union membership rates among the fifty states, 3.6 percent and 4.2 percent, respectively.

Environmental Permitting

For companies that anticipate permitting to be a risk in their automotive suppliers site selection efforts, the Carolinas have environmental programs to assist companies in moving through the process quickly.

  • Pro-business environment
  • Quick turnaround for most applicants (average 6 weeks)
  • In line with federal standards

Reliable and Affordable Energy

Duke Energy has highly qualified energy experts and site consultants who can assist in any automotive suppliers site selection project. The service is free and confidential.