The jobs and investments that the state
Department of Commerce helped lure to South Carolina last year rose
sharply over 2003, as businesses felt increasingly bullish about the
economy, according to the agency's newly released annual report.
Manufacturers accounted for the bulk of the activity, despite years of
plant closings and layoffs here and across the nation in the sector.
The Department of Commerce said that its 2004 corporate recruiting
efforts are projected to yield 13,491 jobs and total $2.76 billion of
capital spending, increases of 146 percent and 55 percent, respectively,
compared to a sluggish 2003.
Also, the average wage for the jobs that Commerce had a hand in winning
was $34,773, or 31 percent higher than the state's per-capita income, the
report said.
"The jobs we've been working and winning are good jobs," said Bob
Faith, state commerce secretary.
This is the first year the department has tracked and compared average
projected wages in its annual report, which has been tweaked under Gov.
Mark Sanford to count only those economic development projects that the
state played a direct role in recruiting.
"We feel like this more directly reflects our contributions," Faith
said Wednesday.
Propelled by the Global Aeronautica aircraft manufac-turing plant,
Charleston Coun- ty had a banner year in 2004. It bagged 1,790 jobs and
$593 million in capital investment commitments, more than any other county
in the state.
Global Aeronautica, an international joint venture between Texas-based
Vought Aircraft Industries and Alenia Aeronautica of Italy, will supply
major structural components for a new Boeing Co. passenger jet. It was the
biggest economic development trophy for Commerce last year, accounting for
$566 million in spending and at least 645 jobs.
Other prizes included the new 1,600-worker CitiFinancial Inc. call
center that is coming to the Rock Hill area and a $200 million expansion
of the Kimberly-Clark Corp. plant in Aiken County.
Manufacturing, an industry that has been bloodied in South Carolina by
foreign competition and other factors, is still a vital cog in the state's
economy, the report found. It accounted for 94 percent of the total
capital investment announced last year and 61 percent of the job
commitments.
"A lot of this is a benefit of the improved domestic economy," Faith
said.
During and after the last recession, many manufacturers postponed or
canceled their expansion plans, he said. As the economy has gradually
recovered, pent-up demand is forcing companies to add capacity.
Also, Faith said, other manufacturers are starting to invest in new
technology to make their plants more efficient "so they can continue to
compete with the Chinas and the Mexicos of the world."
In all, Commerce said it helped seal jobs from 105 companies last year,
up 18 percent from 2003.
Of those projects, 70 were expansions of existing businesses, which are
projected to lead to 6,670 new jobs and more than $1.6 billion in
spending. New industries committed to creating 6,821 jobs and investing
$1.1 billion.
Commerce also outlined, in vague terms, the 21 "viable" economic
development projects that it pursued but failed to win. Those businesses
went elsewhere for a variety of factors, including lack of a suitable
site, transportation requirements, tax incentives and environmental
regulations, according to the report.
In one instance, South Carolina determined it was being used by an
unidentified startup company in the machinery and equipment industry "to
leverage a deal in another state." That project ended up going to North
Carolina.
Based on the current pipeline of prospects, Faith said, Commerce is set
to have at least as good a year in 2005 as it did in 2004. "We have a few
mega-projects in the hopper, and if we can win one of those and get our
fair share of all the others, we'll follow up with another heck of a
year." he said.