Economic Development in South Carolina: Wins, Trends & What Prospects are Looking For. Allison Skipper, APR Director of Marketing & Communications
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1 Economic Development in South Carolina: Wins, Trends & What Prospects are Looking For Allison Skipper, APR Director of Marketing & Communications
2 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.
3 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
4 Global Brands Call South Carolina Home
5 Economic Development Wins Since January 2011*, Commerce has announced: 390 projects. o 166 new (43%) o 224 expansions (57%) 57,195 jobs. $ billion in capital investment. Four announcements $1 billion+: o Bridgestone, Boeing, Toray, BMW *as of July 31, 2014
6 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.
7 International Investment in SC Leading the nation in foreign-direct investment 1,200 international operations 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. More than 100,000 employees
8 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 Industry diversity.
9 Active Projects by Industry Type Textile 6% Advanced Materials 5% Aerospace & Aviation 6% Plastics, Rubber, & Chemicals 11% Agribusiness 13% Office, HQ, & R&D 10% Metal & Fabricated Metal Products 12% Automotive 10%
10 Current Activity by Region Asia-Pacific 10% 37% of projects Europe 22% are international. United States 63% Middle East 1% NAFTA 3% S. America 1%
11 Active Projects by Capital Investment $10-$50 Million 23% $50-$100 Million 8% $100 Million+ 8% $5-$10 Million 10% Less Than $5 Million 51%
12 Active Projects by Number of Jobs % 500 and above 7% % % Fewer Than 50 47% %
13 Site Selection: What companies are looking for 2
14 Site Selection Process 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.
15 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, 27 h Annual Corporate Survey, Q1, Winter 2013
16 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, 27 h Annual Corporate Survey, Q1, Winter 2013
17 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.
18 Market Access: Infrastructure $2 billion in various cargorelated 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.
19 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.
20 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 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!
21 Thank you! Questions? Allison Skipper, APR Office:
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