Posted on Thu, May. 20, 2004


Study: Military's effect on S.C. businesses tops $7 billion


Associated Press

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.





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