Study: Military's
effect on S.C. businesses tops $7 billion
SUSANNE M.
SCHAFER Associated
Press
COLUMBIA, S.C. - Bill Bauer is happy to sell
Fort Jackson's soldiers just about anything they need, from
high-gloss boot polish to plywood frames that keep drill sergeants'
hat brims flat and stiff.
"Probably 75 percent of our business is with the military," said
Bauer, assistant manager of the U.S. Patriot Store just outside a
main gate at the Army training base.
Bauer's experience is reflected in a recent study showing that
some $7.3 billion in sales are accumulated annually by businesses in
the state because of the presence of the U.S. military.
The study, conducted by economist Donald L. Schunk of the
University of South Carolina, also says the military supports about
142,000 jobs in the state directly or indirectly.
Of that total, about 54,000 jobs are located on the bases, "while
the remainder is spread across virtually every sector of the state's
economy," Schunk said.
That figure represents nearly 8 percent of total employment in
the state, said Schunk, who also conducts a separate, annual report
on South Carolina's economy as a whole.
"Bases around the state fuel economic activity by purchasing
goods and services from the local community and by providing income
to military and civilian personnel. In addition to those direct
impacts ... additional benefits accrue to the state economy because
of the military related visitors and retirees they attract," the
study said.
Military retirees account for about $1.3 billion of the $7.3
billion figure, and almost $100 million is brought into the state by
military related visitors.
Schunk said he conducted the study for a panel established by
Gov. Mark Sanford, which is working in advance of the Pentagon's
expected release in 2005 of a list targeting military installations
for closure.
Schunk said he looked at various industries in the state and
found that maintenance and repair facilities garnered more than $550
million in sales.
Others industries in the top 10 included real estate, health
care, restaurants, banks and utilities.
"This shows the ripple effect ... how the payroll of a soldier or
civilian employee on a base can go towards the income of a waitress
at a local restaurant or to the barber at a local barbershop,"
Schunk said.
John Brabham, who owns a real estate firm in Sumter near Shaw Air
Force Base, knows firsthand the military's effect on a local
economy.
Those who buy homes in the region "go out and buy appliances,
they buy carpets, they hire subcontractors. ... The trickle-down
impact is incredible. They are involved in every facet of our
economy," Brabham said. He estimates the base pumps $750 million to
$850 million annually into the region.
And military men and women don't need to be present for their
impact to be felt, Brabham said.
His company manages about 350 properties that have been purchased
by service members but are renting them while they are posted
elsewhere.
"They are active duty who want to keep the properties and return
here some day," he
said. |