By David Beasley, The Center Square
Eighteen counties either have changed tiers in the annual release of economic health from the N.C. Department of Commerce.
The “tier” rankings, starting with 1 for the most economically distressed and 3 for the least distressed, are used as a factor in determining state grants and other forms of assistance.
Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly and Surry counties moved up for 2026. Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank and Yancey fell to a more distressed tier.
The tiers are based on factors such as the unemployment rate, median household income, population growth, and assessed property value. Cherokee County remains in Tier 2, which is also where neighboring Clay and Graham counties also reside, with Graham surprisingly moving up from Tier 1.
Under state law, 40 counties are designated Tier 1, 40 Tier 2, and 20 counties Tier 3.
In 2025, the same number of counties – 18 – changed tiers, with nine going up and nine going down.
North Carolina has experienced a string of corporate expansion announcements, particularly in the last few months of this year.
One county, Henderson, which fell in the tier rankings for 2026, announced in late October that global mobility solutions company, Borg Warner, plans an expansion and a new 220,000 square foot building.
The expansion will create 193 jobs over five years with an annual average salary of $78,628, the county announced. Borg Warner will invest $74 million in the expansion.
“We have long said that manufacturing is crucial to the quality of life in our community,” Bill Lapsley, chair of the Henderson County commissioners, said in a statement. “Following the devastation of Hurricane Helene, this project is especially meaningful as we work to ensure our community’s long-term resilience.”
Both Hurricane Helene and the recent federal government shutdown affected the new tier designations, according to the Commerce Department.
“The hurricane led to a rise in unemployment in western North Carolina, impacting not only their rankings but other counties’ rankings across the state,” the department said.
“In addition, the shutdown delayed the release of recent monthly unemployment data. As a result, the most recent 12 months of county unemployment data reflect a September 2024 to August 2025 timeline.”
Henderson County for 2026 will drop from a Tier Three to Tier Two, the state said.
“Despite the county adjusted property tax base per capita rank improving 16 positions, its unemployment rate rank declined by 28 positions and its median household income rank declined 11 positions,” the state said.