Lexington, NC

Attracting Major Employers with Strategic Infrastructure Investment

This City is Proving That It Can Have It All with a Staggering $340 Million in Manufacturing Investments While Managing 1,200 Housing Units Under Construction.

In the heart of North Carolina’s Piedmont Triad, a city of 20,000 residents is experiencing what Mayor Jason Hayes describes as “unprecedented growth.” Lexington, known as the “Barbecue Capital of the World” since Sid Weaver opened the first barbecue restaurant here in 1919, has transformed from a textile and furniture manufacturing hub into a diversified economic powerhouse.

The annual Barbecue Festival, now in its 41st year, draws over 200,000 visitors each October and appears in “1000 Places to See in the USA & Canada Before You Die.” Yet behind the smoky aroma of pork shoulders lies a city reinventing itself for the 21st century.

For Mayor Hayes, this transformation holds deep personal significance. “My folks moved here in 1965. They both met at the school for the deaf in Morganton, North Carolina, and so they were both deaf and my sister and I were both hearing,” he explains. “We had a lot of community members, teachers, coaches that really wrapped their arms around us and supported us as we moved our way up through the local school system here.” After spending approximately 30 years in the pharmaceutical and biotech business, Mayor Hayes saw an opportunity to give back. “I felt like I could apply some of the knowledge that I had built in the business environment and be able to help my community move forward.”

The numbers tell a compelling story. Where roughly a hundred building permits were issued in 2018, today over a thousand housing units stand under construction, with another thousand approved and awaiting groundbreaking. This residential surge follows a deliberate economic diversification strategy that has attracted major employers including Siemens Mobility’s $220 million rail manufacturing facility and US Foods’ 220,000-square-foot distribution center. “Folks move here from all over,” Mayor Hayes notes. “They visit and then they come back and some even decide that they want to move here.”

Revitalizing the Depot District

The transformation of Lexington’s Depot District is one of the most ambitious urban revitalization projects in the region. In 2011, city leaders purchased former furniture manufacturing buildings with a vision that took what Mayor Hayes acknowledges as longer than anticipated. “Sometimes it doesn’t happen as quickly as we all would like, and I’m sure the folks who decided as city leaders back in 2011 to purchase all of those buildings probably couldn’t have anticipated that it might take 14 or 15 years to completely build that area out,” he reflects. “But it is happening.”

The catalyst arrived in 2020 when Lexington secured a $25 million BUILD grant from the U.S. Department of Transportation for a passenger rail station. The project, scheduled for completion by October 2027, includes two boarding platforms, renovation of the historic freight depot, and a vehicle tunnel under the railroad at Fifth Avenue. Norfolk Southern is currently conducting a Rail Traffic Controller Simulation Analysis to integrate three northbound and three southbound daily train stops with existing freight operations. The station will connect Lexington to Charlotte, Greensboro, High Point, and Raleigh.

Around this transit hub, the district has gained the Breeden Insurance Amphitheater, Goose & the Monkey Brewhouse, and Bull City Ciderworks. Holland Brooks event center now anchors the area, while a building currently under roof will become a distillery. Edgewood Lofts will add up to 100 residential units, and the former Lexington Home Brands site spanning nearly three acres will feature a food hall, high-end townhomes, multifamily dwellings, and a micro park. “Really just a variety of opportunities in that area,” Mayor Hayes says.

“The Depot district will have the passenger rail stop as a hub there, really providing an opportunity for folks to live in that area, to eat in that area, and then hop on the train and access work opportunities, educational opportunities or healthcare.”

Unprecedented Residential Growth

The surge in residential construction signifies a fundamental shift in Lexington’s economic trajectory. From approximately 100 building permits issued in 2018, the city now has roughly 1,200 units under construction with dirt being moved on sites across the community. The mix encompasses single-family homes, townhomes, multifamily apartments, and housing designed for residents aged 55 and older. Another 1,000 to 1,100 approved units await construction starts, positioning Lexington for sustained population expansion based on the city’s calculation of 2.5 residents per unit.

Mayor Hayes points to a pattern the city has observed between employer recruitment and housing demand. “Usually what we see is that if we’re successful in recruiting a company that is going to be an employer in the area, we see an 18-month lag in additional residential growth and additional retail growth as well,” he explains.

The community’s uptown area now features extensive second and third-floor residential conversions in buildings that served as storage for decades, while the Depot District follows a similar model with retail occupying ground floors and apartments rising above.

The growth hasn’t come without resistance. “Some folks are resistant to change and sometimes resistant to growth, which I understand,” Mayor Hayes acknowledges. “However, if you look at where our community has come from with a loss of textile and furniture opportunities and jobs, we had a void that really needed to be filled.”

The diversification now taking shape addresses that void while creating opportunities across skill levels. Advanced manufacturing jobs today differ markedly from decades past, offering pathways through credentialing and certifications available at Davidson-Davie Community College, which graduated 1,120 students this past May.

A greenway plan currently in development will connect the city’s 25 parks, supporting the walkability focus central to uptown and Depot District planning. The average commute time of 22 minutes sits well below the national average of 26.6 minutes, with proximity remaining a defining characteristic as new developments take shape.

Strategic Approach to Attracting the Right Mix

Lexington’s approach to economic development balances aggressive recruitment with careful consideration of industry mix and workforce sustainability. Mayor Hayes, who serves as vice chair of the Davidson County Economic Development Commission, notes that companies considering investments above $50 million typically expect local incentives. The city and county have responded by offering half of tax obligations for three to five years, calibrated to investment size and job creation numbers. At the state level, the Economic Development Partnership of North Carolina provides workforce development funding for customized training through Davidson-Davie Community College.

The workforce dynamics favor employers. Currently, 49% of Davidson County’s workforce leaves the county daily for employment elsewhere. “What’s been encouraging to potential employers is the opportunity to be able to capture the workforce that’s leaving the county on a day-to-day basis,” Mayor Hayes explains. “Having the availability of a workforce here locally has been a huge draw for us.” The city offers a 750-acre industrial site plus additional parcels scattered throughout the county, supported by electric utility service that positions Lexington among just 19 consortium cities in North Carolina providing this capability.

Siemens Mobility’s $220 million rail manufacturing facility typifies the caliber of investment Lexington now attracts. The 200-acre campus, featuring over 11,000 feet of rail track, will create 506 jobs by 2028 at an average salary of $51,568. Production began in 2024 at the carbon-neutral facility, which incorporates robotic welding, 3D printing, and virtual reality welder training. The operation will serve as Siemens’ East Coast hub and will be the city’s largest taxpayer in history.

US Foods followed with a 220,000-square-foot Stock Yards distribution center expected to open in early 2026, bringing 100 jobs by late 2027. Divert, the state’s first food waste diversion and renewable natural gas company, adds approximately 50 positions. “After we landed the Siemens mobility opportunity, then next came US Foods,” Mayor Hayes says. “Having a diversity of businesses is important and also having a diversity of needs from an employee standpoint as well.”

Innovation in Street Resurfacing and Beyond

Mayor Hayes identifies three priorities for the next 18 months: increasing tax base, expanding workforce opportunities, and ensuring infrastructure can support both goals. The city’s 126 miles of streets, rated poor for years, now receive unprecedented investment through a strategic three-pronged approach.

One application, Pressure Pave, is a first for North Carolina municipalities. “Usually, it’s kind of a mill and fill where they get down to the bed level and then asphalt it,” Mayor Hayes explains. “Well, this pressure pave application is one in which you kind of leave the existing street, but it’s a slurry, an epoxy that goes over the street and has a lifespan of about 12 to 15 years.”

The technique allows the city to extend pavement life on streets not requiring full reconstruction. “The great thing about that is that just from an equity standpoint, everybody in all parts of the city is seeing something new done with their streets,” Mayor Hayes notes. “It’s not just choosing one particular or an affluent area and making sure those folks are happy. It’s really ensuring that everyone across the city is seeing infrastructure improved.” Water and wastewater treatment upgrades also loom on the horizon, requiring strategic capital reserve building for major facility investments.

Infrastructure readiness has become critical for site selection. Mayor Hayes observes that quality of life metrics, once third or fourth on employer evaluation lists, now rank first or second. “It’s important that not only do you have the acreage and the infrastructure, but you also have a good livability score,” he says. Lexington’s central state location, access to Interstates, proximity to Charlotte and Greensboro airports within 45 minutes to an hour, and connections to seaports and rail infrastructure complete the package.

The transformation from furniture manufacturing center to diversified economic hub points to deliberate planning, patient capital investment, and strategic workforce development. As residential construction accelerates and major employers establish operations, Lexington proves mid-sized communities can leverage existing assets while building infrastructure for sustainable growth. The barbecue remains legendary, but the city’s future is now way more than its culinary heritage.

AT A GLANCE

Who: Lexington, North Carolina

What: A city transitioning from textile and furniture manufacturing to a diversified economy

Where: Davidson County, North Carolina

Website: www.lexingtonnc.gov