South Carolina: The ideal business destination

Transcription

1 South Carolina: The ideal business destination The information provided here is for informational and educational purposes and current as of the date of publication. The information is not a substitute for legal advice and does not necessarily reflect the opinion or policy position of the Municipal Association of South Carolina. Consult your attorney for advice concerning specific situations.

2 Agency Overview The state s business agency. Recruits new businesses and helps existing businesses succeed and grow. Mission is to create choices and opportunities. 2

3 Industry Recruitment Since January 2011, S.C. Commerce has recruited: 1,174 economic development projects 131,500 new jobs $36.6 billion in capital investment A project in all 46 counties in S.C. Unemployment rate fallen from 11.7% to 3.3% 3

4 Annual Recruitment Totals ( ) Year Jobs Recruited Capital Investment Project Count ,013 $5,106,366, ,137 $3,987,883, ,457 $5,410,821, ,020 $5,088,220, ,280 $4,210,168, ,101 $3,424,304, ,445 $5,240,082, ,071 $4,174,644, Grand Total 131,524 $36,642,492,032 1,174 4

5 Industry Recruitment Top 8 Announcements Since 2011 (by investment) Year Company County Investment Jobs 2011 Bridgestone Americas Tire Operations Aiken $1.2 billion Boeing South Carolina Charleston $1 billion 2, BMW Manufacturing Spartanburg $1 billion Toray Composite Materials America, Inc. Spartanburg $1 billion BMW Manufacturing Spartanburg $900 million 1, Volvo Car Corporation Berkeley $620 million 1, BMW Manufacturing Spartanburg $600 million 1, Google Berkeley County Data Center Berkeley $600 million NA 5

6 Industry Recruitment Top 8 Announcements Since 2011 (by job creation) Year Company County Investment Jobs 2014 LPL Financial York $150 million 3, Volvo Car Corporation Berkeley $500 million 2, The Lash Group, Inc. York $90 million 2, Boeing South Carolina Charleston $1 billion 2, Volvo Car Corporation Berkeley $620 million 1, Giti Tire Holdings Chester $560 million 1, Continental Tire the Americas Sumter $500 million 1, Red Ventures Lancaster $90 million 1,500 6

7 Industry Recruitment Since 2011, we ve had many major announcements: 7

8 By Industry Life Sciences 4% Agribusiness Total 8% All Other 23% Life Sciences Agribusiness Total Plastics, Rubber, and Chemicals 7% Automotive 14% Automotive Metal and Fabricated Metal Products Office, HQ, and R&D *Figures calculated by jobs recruited All other includes warehousing & distribution, composites & advanced materials, marine, recycling, consumer products, packaging materials, construction/building products, electronics & computers, aerospace & aviation, alternative energy, textiles, and machinery & equipment. Office, HQ, and R&D 29% Metal and Fabricated Metal Products 15% Plastics, Rubber, and Chemicals All Other 8

9 International Footprint More than 70 percent of the world's purchasing power is located outside of the U.S. Recognizing this, S.C. Commerce created a new Division of International Strategy & Trade (IST) in South Carolina first established a presence overseas in the mid-1970s with an office in Europe. Today, the S.C. Department of Commerce has a presence in: Munich, Germany Shanghai, China Tokyo, Japan New Delhi, India Seoul, South Korea 9

10 International Trade S.C. has achieved eight consecutive record years in export sales S.C. s Total Export Sales (in billions)

11 Globally-Connected From , foreign-based firms announced investments of more than $17 billion, creating 41,000 new jobs in S.C. A nation-leading seven percent of S.C. s workforce is employed by the more than 1,200 operations of foreign-based firms that are located here. 11

12 Diverse Economy While we re proud of our manufacturing success, other sectors are thriving as well. Non-manufacturing jobs comprised 36 percent of all jobs recruited last year. S.C. was ranked 11 th for net tech employment growth rate in South Carolina saw a nearly 1.0 percent single-year increase in its number of tech establishments in That figure is more than double the national average (0.4 percent) and ranked 10th nationally. Source: Cyberstates 2018 Report 12

13 Commerce Resources is a website that connects prospective industries with available properties in all regions of the state Searchable, free database that allows econ. dev. organizations and property owners to register new properties Commerce relaunched the site late last year 13

14 Commerce Resources To help existing South Carolina companies take advantage of the state s economic development success, S.C. Commerce has several programs within the Business Services Division: Existing Industry Supplier Outreach Recycling Market Development Small Business Development Emergency Management Support (ESF24) 14

15 Commerce Resources SourceSC is a statewide database identifier of South Carolina in-state suppliers and vendors. Benefits: Expand company exposure to a network of suppliers and vendors Quick company identification for inhouse sourcing requests E-blast invitations to Networking, B2B & Supplier Outreach Events 15

16 Commerce Resources We cultivate an innovation and technology commercialization economy INNOVATION: The relentless pursuit of transformational ideas Deploying multiple new resources: 3Phase SC Codes Scribble Startup Fuel Challenge Gathering stakeholders from the innovation community for the first Innovation Rally, now known as our Sketch Room series. Connecting the innovation community through our Pen to Paper Tour. 16

17 Project Management and the Process Project Lead Comes in: Directly: Calls/ s from companies, International Offices, Website, Trade Shows, Mission Trips. Indirectly: Regional Alliances, County Economic Development Offices, Government Officials Offices, Site Consultants, Utility Companies. 17

18 Active Projects by Project Source 26% 19% SCDOC Company Inquiry SCDOC Missions / Trade Conferences SCDOC - Foreign Office 7% 3% 12% 14% 3% 7% 9% SCDOC - In-house/Website and Governor's Office Regional Alliances Broker / Site Consultant Ally Law Firm / Accountant County

19 Project Management and the Process Project Assigned to Project Manager: The primary point of contact and advocates for companies seeking to locate in SC. Guides company through the site selection process in SC in conjunction with local and regional economic developers. Promotes SC as a great place to locate businesses. Reviews and disseminates all initial information. 19

20 Project Assigned to Project Manager Assignment based on the following: Industry Sector Project Workload Prior relationships Availability 20

21 Industry Sectors Automotive Aerospace Advanced Materials (Plastics, Rubber, Chemicals Advanced Materials (Metals & Composites) Distribution and Logistics Bioscience/Biomedical Agribusiness Office and Service Consumer Goods Advanced Manufacturing 21

22 Project Management and Process Pre-research on the company/contact (if known). Any tidbits that could help establish a rapport on the initial call. People like doing business with people they like. Initial call is made. LISTENING is THE most important part of the process. Project Assigned to Project Manager: 22

23 Site Selection Process and Factors 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 exchanged. Finalists locations selected (2-3). Negotiations begin. WINNER IDENTIFIED 23

24 What companies look for? Companies don t locate to states or regions, they locate to communities. 24

25 What companies look for? 25

26 What companies look for? 26

27 What companies look for? 27

28 What companies look for? 28

29 What companies look for? 29

30 What companies look for? 30

31 What companies look for? 31

32 What companies look for? 32

33 What companies look for? 33

34 What companies look for? 34

35 What companies look for? Highway Accessibility

36 What companies look for? Highway Accessibility Labor Costs (3) 36

37 What companies look for? Highway Accessibility Labor Costs Availability of Skilled Labor (3) (2) 37

38 What companies look for? Combined Ratings* Corporate Survey 2016 RANKING Highway Accessibility (1)** 2. Labor Costs (3) 3. Availability of Skilled Labor (2) 4. Quality of Life (10) 38

39 What companies look for? RANKING Tax Exemptions (7) 6. Occupancy or Construction (4) Costs 7. Proximity to Major Markets (9) 8. Corporate Tax Rate (6) 39

40 What companies look for? RANKING State and Local Incentives (5) 10. Available Land (12) 11. Fast Track Permitting (13) 12. Proximity to Suppliers (20) 40

41 What companies look for? RANKING Energy Availability and Costs (8) 14. Affordable Buildings (11) 15. Right to Work State (16) 16. Training Programs/Technical College (18) 41

42 What companies look for? RANKING Inbound/Outbound Shipping Costs (17) 18. Low Union Profile (14T) 18T. Environmental Regulations (14T) 20. Availability of Long Term Financing (18) 42

43 The Big Picture Economic development is a team effort, with many moving pieces and parts. State and local economic development agencies, utilities, site selectors, county and local governments, etc. What s your role? 43

44 The Big Picture Jack Schultz, Agracel and author of Boomtown USA : 7 ½ Keys to Big Success in Small Towns Develop a Can-Do Attitude Create a positive working relationship with county leadership. Partner with county developer to determine city/town niche. Shape a vision and work it Build a brand Develop a plan, stick to it, and implement. 44

45 The Big Picture Jack Schultz, Agracel and author of Boomtown USA : 7 ½ Keys to Big Success in Small Towns Leverage resources and maintain local control Invest in yourself if you expect others to do the same. Develop and elect strong leaders people of action Passion, creativity, doers vs. visionaries, yea-sayers vs. naysayers. Encourage entrepreneurial development 45

46 The Specific Picture Maintain an inviting and vibrant downtown Develop and implement a plan to revitalize downtown open to a diverse mix of small businesses, restaurants and commercial development. Well-maintained entrances, streetscapes, signage, landscaping. 46

47 The Specific Picture Maintain an inviting and vibrant downtown Secure and up-fit a building to attract a small business into downtown. Enforcement of building and property up-keep ordinances. 47

48 The Specific Picture Adopt and administer appropriate land development regulations Segregate inappropriate land uses. Building design standards. Landscaping standards. 48

49 The Specific Picture Maintain quality municipal infrastructure Maintain quality water and sewer systems with excess capacities. Consolidate services with county/regional systems. Competitive rates. 49

50 The Specific Picture Ensure municipal services and permitting processes are business friendly Building and utility permitting must be quickly turned around. Partner with county and other municipalities on projects Pool resources in dollars, staff, expertise. 50

51 The Specific Picture Embrace that most municipalities are not going to land large industrial projects and that the county and municipality are on one team. Municipalities will reap the benefits of job creation, citizens increased income, bank deposits, retail growth, increased sales. 51

52 Moving Forward Our work is not done; we must continue to move forward. By utilizing the team-first approach, Team S.C. can build on the momentum that s been generated. Continued focus on the product development and workforce development is important. Together, we can continue to create opportunities for South Carolinians in every corner of the state. 52

53 Contact: Maceo Nance S.C. Department of Commerce