UBJ MANUFACTURING
SC flexes manufacturing muscle State named one of 10 “Where Manufacturing Still Matters” JOE TOPPE | STAFF
jtoppe@communityjournals.com Accounting for 17.3 percent of the gross domestic product (GDP) in 2013, South Carolina’s manufacturing muscle helped propel the state into an elite top 10 of the industry. A recent report by 24/7 Wall St. placed the Palmetto State in the tenth spot for “States Where Manufacturing Still Matters.” Brian Gallagher, director of marketing at O’Neal Inc., said the Upstate plays a critical role in South Carolina’s manufacturing industry. Gallagher said the Upstate has a strong manufacturing heritage, world-class facilities, international investment, a supportive business community and government, excellent partnerships with the educational institutions, and aggressive economic development agencies. South Carolina, and the Upstate in particular, is poised for manufacturing growth, he said. Lewis Gossett, president and CEO of the South Carolina Manufacturers Alliance, said the I-85 corridor and can-do business climate has positioned the Upstate as one of the country’s hottest spots for manufacturing. “It is the least unionized metropolitan area in the state with a dynamic community and a high
WHERE MANUFACTURING STILL MATTERS 10. South Carolina – 17.3%* 9. Ohio – 17.7% 8. Alabama – 17.8% 7. Kentucky – 18.3% 6. Wisconsin –18.9% 5. Michigan –19.0% 4. North Carolina – 20.9% 3. Louisiana – 23.4% 2. Oregon – 29.8% 1. Indiana – 30.1% *Manufacturing share of output
Source: 24/7 Wall St.
“From advanced materials and pharmaceuticals to automotive and aerospace, Greenville County offers an ideal balance of skilled workforce, infrastructure, research initiatives and clustered expertise that make it an ideal environment for manufacturing organizations of all types and across all industries. Manufacturing is an integral component of our region’s past, present and future.” Kevin Landmesser, interim president and CEO, Greenville Area Development Corporation.
quality of life, and when companies are relocating plants, they are also relocating families,” he said. With the addition of the inland port, Gossett said the Upstate has become an engine driving the state’s manufacturing sector. “The Upstate speaks for itself,” he said. GE, Michelin, BMW, the inland port and CU-ICAR all combine to make the area a model for building a strong manufacturing community and economy. Gossett said the state became a hub for manufacturing because of its business climate, port access and the subsequent logistics and distribution opportunities, reasonable regulatory policies, tax incentive programs, and workforce. In conjunction with the many technical schools, the state has been able to deliver a technical and skilled workforce, he said. “Some of the most sophisticated products in the world are made here by South Carolinians.” Data collected by the Wall St. report showed the Palmetto State was a top manufacturer of both durable and nondurable goods, with each contributing 9.8 percent and 7.5 percent to the state’s output. As outlined by the report, much of South Carolina’s durable goods output came from motor vehicle and parts manufacturing, which accounted for nearly $4 billion, or 2.2 percent of the state GDP in 2012.
Accounting for nearly $3 billion, or 1.7 percent of state GDP in 2012, South Carolina was also among the nation’s largest plastics and rubber manufacturers. Gallagher said manufacturing has a multiplier effect on the Palmetto State’s economy. The taxes from manufacturing firms are critical to the local governments and school districts, and “we’ve successfully attracted significant international investment that is increasing,” he said. South Carolina is becoming a key exporter of products. The report is available online at bit.ly/24-7-wall-st.
September 5, 2014
u SOUTH CAROLINA • Manufacturing share of output: 17.3 percent • Manufacturing output 2013: $31.8 billion (24th highest) • 2012 exports from manufacturing: $23.3 billion (20th highest) • 2013 unemployment rate: 7.6 percent (16th highest)
u ADDITIONAL REPORT STATISTICS INCLUDE Economic activity in America’s manufacturing sector rose for the 13th consecutive month this June, according to the Institute for Supply Management. Manufacturing jobs have been on the upswing as well, rising for the 11th straight month in June. Manufacturing accounted for more than 12 percent of the United States’ GDP in 2013, with output from the sector totaling more than $2 trillion.
UPSTATE BUSINESS JOURNAL
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