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Economic Development in South Carolina:
Wins, Trends & What Prospects are Looking For
Allison Skipper, APR Director of Marketing & Communications
Who is the SC Department of Commerce?
• South Carolina’s lead economic development agency. • 70 FTEs in Columbia.
• Foreign offices in Europe, Japan, China.
• Cabinet Agency. • Formerly the State Development Board (est. 1920,
became state agency in 1945). • Partners with regional alliances, county ED offices, other
state agencies (port, ag, forestry, PRT) to sell South Carolina.
Commerce’s Divisions • Global Business Development • Small Business & Rural Development - Small Business Services,
Existing Industry Services, International Trade, Recycling
• Grants - Coordinating Council for Economic Development, CDBG
• Innovation - NEW!
• External Affairs - Regional Education Centers, COEs
• Research • Marketing & Communications • Palmetto Railways - SC Public Railways
• Rural Infrastructure Authority - not a division, but Secretary of Commerce chairs the Board
Global Brands Call South Carolina Home
Economic Development Wins
• 390 projects. o 166 new (43%)
o 224 expansions (57%)
• 57,195 jobs.
• $13.826 billion in capital investment.
• Four announcements $1 billion+: o Bridgestone, Boeing, Toray, BMW
*as of July 31, 2014
Since January 2011*, Commerce has announced:
Building Momentum
• 2013 was an all-time record year for
capital investment - $5.4 billion.
• South Carolina has important role in
nation’s manufacturing renaissance.
• Record exports in 2013 at $26.1 billion!
• #1 in exports of tires (30% of US
export market share).
• Top state for per-capita employment
related to foreign-direct investment.
International Investment in SC
Flag size represents the total number of companies for each country of origin within a specific county. Locations are only a representation of operations in the county and are not meant to show a specific location.
Leading the nation in foreign-direct investment • 1,200 international
operations in SC
• More than 100,000 employees
Trends We’re Seeing at Commerce:
• Influx of new companies. • 45% of new jobs; 62% of investment.
• Foreign-direct investment. • 37% of new jobs; 64% of investment. • New players emerging.
• Re-shoring of manufacturing. • 60% of new jobs; 88% of investment. • Walmart’s Buy American program.
• Higher costs of capital. • Doubled in SC from 2009 to 2013.
• Industry diversity.
Active Projects by Industry Type Advanced Materials
5% Aerospace &
Aviation 6%
Agribusiness 13%
Automotive 10%
Metal & Fabricated
Metal Products
12%
Office, HQ, & R&D 10%
Plastics, Rubber, & Chemicals
11%
Textile 6%
Asia-Pacific 10%
Europe 22%
Middle East 1%
NAFTA 3%
S. America 1%
United States 63%
Current Activity by Region
37% of projects
are international.
Less Than $5 Million
51%
$5-$10 Million 10%
$10-$50 Million 23%
$50-$100 Million
8%
$100 Million+ 8%
Active Projects by Capital Investment
Fewer Than 50 47%
50-99 15%
100-199 17%
200-299 8%
300-499 6%
500 and above 7%
Active Projects by Number of Jobs
2
Site Selection: What companies are
looking for
Needs Assessment by Company
Qualifying areas / regions identified
Company makes initial contact with qualified States or Regions. Information is exchanged
Specific property / communities identified. Company visits. Additional information is exchanged
Finalists locations selected (2-3). Negotiations begin
Winner identified.
Site Selection Process
Site Selection Factors 1. Labor Costs (2t) 2. Highway Accessibility (1) 3. Availability of Skilled Labor (2t) 4. Availability of Advanced ICT Services (13) 5. Occupancy or Construction Costs (5) 6. Energy Availability & Costs (7) 7. Corporate Tax Rates (4) 8. Availability of Buildings (15) 9. Tax Exemptions (8) 10. Low Union Profile (10) 11. Right-to-Work State (12) 12. Proximity to Major Markets (9) 13. State and Local Incentives (5t)
Environmental Regulations (14) 14. Expedited or “fast-tracked” permitting (17) 15. Inbound/Outbound Shipping Costs (11)
Source: Area Development, 27h Annual Corporate Survey, Q1, Winter 2013
Site Selection - Quality of Life
1. Low Crime Rate (1) 2. Healthcare Facilities (2) 3. Housing Availability (5) 4. Housing Costs (3) 5. Rating of Public Schools (4) 6. Colleges & Universities in Area (6) 7. Climate (8) 8. Recreational Opportunities (9) 9. Cultural Opportunities (7)
Source: Area Development, 27h Annual Corporate Survey, Q1, Winter 2013
Inventory: Sites, Buildings and Parks
• Available inventory is posted in searchable database: LocateSC.com
• Commerce allocating $2.5 million to counties for Product Development initiative (spec buildings, pads, industrial park improvements)
• FY2015 Budget includes $6.5 million to Commerce for sites.
• Site Certification program. • Other partners working on
inventory.
Market Access: Infrastructure
• $2 billion in various cargo-related infrastructure planned/underway.
• Commerce works collaboratively with DOT and port on freight transportation planning.
• Funding Assistance: • ED project related: Rural
Infrastructure Fund, other grants.
• Water/sewer: Rural Infrastructure Authority.
South Carolina is Work Ready Training Programs: South Carolina is home to readySC®, a nationally-ranked workforce training program and Apprenticeship Carolina. Many companies in South Carolina have used this approach to match specific skill requirements and experienced workforce.
Work Ready Communities: All 46 counties are participating in the certified Work Ready Communities program, and SC is one of only 4 states selected by ACT to pilot the program. Four counties have been certified: Clarendon, McCormick, Colleton and Saluda counties.
In Summary…
• South Carolina is internationally known as a great place to do business.
• Momentum continuing into 2014 on heels of record capital investment
year in 2013.
• Recruitment rests on tangible and intangible qualities.
• Commerce is the state’s business agency for all size companies.
• This is a team sport! The broad ED community is essential to our
collective success.
…it’s an exciting time to be in economic development
in South Carolina!
