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Sanford: S.C. economy has shifted

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• Photo: South Carolina Gov. Mark Sanford speaks Friday during an interview at The Island Packet.He said the state must focus on its core industries of tourism, retirement and ports in order to stay competitive in the global marketplace.
  Jay Karr/The Island Packet
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South Carolina must concentrate on its core industries -- retirement, tourism and ports -- for the state to compete in the global marketplace, Gov. Mark Sanford said Friday.

The state moved through a series of highs and lows as its economic base shifted from agriculture to manufacturing to service industries and technology, Sanford said. Each shift brought periods of flux, but the latest wave sees both the state and Beaufort County standing on the crest of enormous economic opportunity.

In an interview at The Island Packet, Sanford said 30 percent of all jobs announced or created in South Carolina during the 1990s are no longer here, either because the jobs never materialized or moved abroad.

About 90,000 manufacturing jobs in the state were lost during the last five years alone, he said. Many moved to lower-paying countries in Central America and Asia, and the state must remain competitive if it wants to keep the jobs the latest wave has brought.

Baby boomers moving south after retirement, opting for more northerly locations than traditional destinations like Florida, have spawned a housing boom and rejuvenated many towns left abandoned when manufacturing left, he said. The state's ports have attracted distribution centers for major retailers like Target, and coastal counties continue to entice tourists to the state's hotels and beaches.

"No matter what happens in China, that's good business and one that continues to grow," Sanford said.

Speaking earlier Friday morning to more than 300 members and guests of the Forum Club at Sun City Hilton Head, Sanford said that after years of reliance on big business, such as textiles and other manufacturing, South Carolina is now a small-business state.

Tax incentives to attract the film industry, broadband deregulation to allow more people access to the Internet, and small-business-friendly legislation will help make the state more competitive, he said.

Last year, Sanford signed the state Small Business Regulatory Flexibility Act that established a regulatory committee to act as a watchdog, sniffing out regulations that could affect small business adversely. The law gives small businesses the legal authority to challenge regulations coming out of state agencies before they are considered by the General Assembly.

Sanford also signed the state Job Creation Act, under which the state's estimated 96,000 small businesses are eligible for tax credits if they create new jobs and maintain the employees for a year. The benefits can be as high as $8,000 per job, depending on company size and where in the state the company is based.

"You've got to grow business from within," Sanford told the Sun City residents, "not only with businesses in Alabama, but all around the world."