2021-2022 Midlands Regional Competitiveness Report

TM

2021-2022 Midlands Regional

COMPETITIVENESS REPORT

TALENT | INNOVATION | ENTREPRENEURIAL & BUSINESS ENVIRONMENT | INDUSTRY CLUSTERS | LIVABILITY

Indicators of

TM

Competitive Communities EngenuitySC has produced the Competitiveness Report since 2014, gathering data to improve our region’s competitive position among our peers. As successful leaders know, benchmarking gives us clear data to determine how we can work together to further our success. Collaboration is the key, and this Report is a valuable tool for our community. Not everything in here is good news, especially in this first report to include the global pandemic’s impact. But this benchmarking does allow us to ask questions that create more collaboration; to celebrate our many successes; and, to guide our private and public organizations as we set cohesive goals for our region.

From previous Competitiveness Reports, the Midlands Business Leadership Group (MBLG) has catalyzed action to improve talent retention, promote entrepreneurship, enhance economic development, provide access to our riverfront, and build a stronger shared identity for our community. Along the way, EngenuitySC and MBLG have worked together extensively as partners. And thus, our organizations have elected to co-brand this edition of the Competitiveness Report. Future reports will be transitioned to the Midlands Competitiveness Council, a new initiative of MBLG, maintaining the involvement of many previously engaged public and private organizations, educational institutions and individuals.

Together, we will continue to seek ways to capitalize on this valuable information through our intellectual and fiscal capital to advance the vitality of our region. We know from evaluating our peers that success does not occur by accident. Rather, the strongest regions are the product of coordinated action, supported by strategic investment, over the long term. We can and must take these steps together to maximize the potential of our region.

Mayor Elise Partin Chair, EngenuitySC

John Folsom Chair, Midlands Business Leadership Group (MBLG)

COVID-19 and the Competitiveness Report Some of the data in this report reflects the impacts of the COVID-19 pandemic. While the long-term effects remain to be seen, the short-term disruptions to supply chains, the work environment and the labor force have significantly impacted day-to-day life and the region’s economy.

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2021-22 Midlands Regional Competitiveness Report

Measuring success around the five indicators of economically competitive communities

Talent

A region’s ability to attract, develop and maintain a vibrant and skilled workforce

Innovative Capacity

A region’s capacity to support the creation of new ideas, products and processes

Entrepreneurial & Business Environment

A region’s relative ease of doing business and the strength of the support system for the startup, growth and maintenance of businesses

Industry Clusters

A region’s ability to sustain and grow high impact industries that are competitive on an international scale

Livability

A region’s ability to build an inclusive and dynamic live, learn, work and play environment

Kershaw

Population: 22,347

Population: 66,551

Geography Richland Population: 415,579

Saluda Population: 20,473

Anchored by the state capital, the Columbia Metropolitan Statistical Area (MSA) consists of six counties: Richland, Lexington, Kershaw, Fairfield, Saluda and Calhoun. As of 2020 Census Bureau Estimates, the Columbia MSA is the second-largest metropolitan statistical area in South Carolina, with a total population of 838,433.

Columbia

Lexington

Our Peer MSAs

Population: 298,750

Shown in order of population

1.

Raleigh, NC MSA* Population: 1,420,376 Counties: Wake, Johnston, Franklin

6.

Greensboro-High Point, NC MSA Population: 776,363 Counties: Guilford, Randolph, Rockingham

2.

Greenville-Anderson-Mauldin, SC MSA Population: 932,705 Counties: Greenville, Anderson, Pickens, Laurens

7.

3.

Knoxville, TN MSA Population: 878,124 Counties: Anderson, Blount, Campbell, Grainger, Knox, Loudon, Morgan, Roane, Union Columbia, SC MSA Population: 847,397 Counties: Richland, Lexington, Fairfield, Saluda, Kershaw, Calhoun

Winston-Salem, NC MSA Population: 679,711 Counties: Forsyth, Davidson, Stokes, Yadkin, Davie

8.

Augusta-Richmond County, GA-SC MSA Population: 614,312 GA Counties: Richmond, Burke, Columbia, Lincoln, McDuffie | SC Counties: Aiken, Edgefield

9.

Lexington-Fayette, KY MSA Population: 520,391 Counties: Bourbon, Clark, Jessamine, Fayette, Scott, Woodford

Calhoun Population: 14,553

9 4.

7 6 3

1 5.

2

Charleston-North Charleston, SC MSA Population: 819,705 Counties: Charleston, Berkeley, Dorchester

4 4

5 8

10. Tallahassee, FL MSA Population: 389,599 Counties: Leon, Wakulla, Gadsden, Jefferson

*Raleigh is an aspirational MSA, meaning it serves as a target for Columbia, as opposed to a peer MSA. Population data source | US Census Bureau, 2020 Census Bureau Estimates

How were the comparative locations chosen?

Our peer MSAs have comparable economic assets to our own, including at least one of the following: • •

State capital Major university in region

•

Strong higher education system (2-year and 4-year)

• • • •

Comparable population Entrepreneurial environment Strength in technology Similar geographic location and landscape

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www.EngenuitySC.com

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How to Read this Report Methodology This report examines five areas of regional economic competitiveness and plots our success in those areas relative to our peer and aspirant MSAs. Each of these areas is defined by a group of metrics, taken together and weighted equally to comprise the overall score for each MSA. All data in the report is indexed against the national average to facilitate accurate comparisons.

100 represents the U.S. average, so an index value of 110 for the Columbia MSA means that our region is performing 10% above the U.S. average. Likewise, an index of 90 means our region is performing 10% below the U.S. average.

(Metric/U.S. Value) x 100 = Index Value

Data Sources All data used is from publicly-accessible federal sources, such as the Census Bureau and Bureau of Economic Analysis (BEA). Data was compiled and analyzed by economists within the Division of Research at the University of South Carolina’s Darla Moore School of Business.

Other Content in this Report Metrics Individual indicators of success, with our rank among our peers indicated as: nth/10 Observations Critical findings and regional trends, including metrics showing consistent progress or decline over multiple years of the report

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FAQs Who determines the area included in the Columbia MSA? The U.S. Office of Management and Budget (OMB) defines MSAs, which are used by the U.S. Census Bureau and other federal agencies for statistical purposes. An MSA is defined as a geographical region with a relatively high population density at its core and close economic ties throughout the area; typically, MSAs are anchored by a single large city that holds considerable influence over the region.

Why are some Midlands counties not included in this report?

Some counties that are often thought of as part of the Midlands are not included in the Columbia MSA. These counties include Newberry, Orangeburg and Sumter, among others. We use the geographical area of the Columbia MSA — not the loose definition of “The Midlands” — in order to compare regions in the fairest way possible.

What are traded clusters and why do they matter?

Traded clusters are concentrations of businesses in industries whose primary customers are national or global in scope, rather than local to the area: think software companies, financial institutions, and biotech companies. These companies produce about one-third of all jobs, but those jobs provide better compensation and are responsible for over half of all GDP and 90% of innovation.

What is the timeframe of this data?

We use the latest available data to facilitate accurate comparisons. Most of the data in this report lags from one to three years, depending on the source. Notably, this is the first year in which COVID-influenced data will appear in the report.

What is EngenuitySC doing about it?

Stories Highlights of our region’s successes and inspiration from other communities to spark our collective imagination

Using input from our Board, staff and partners, recommended solutions are provided in the Opportunities section of each index in the report. Acting on these recommendations will extend far beyond the EngenuitySC team. Long-term improvement will take our collective region working together toward a shared vision and plan.

Opportunities Critical next steps to drive comprehensive improvement in each area of competitiveness

What can I do?

2021-22 Midlands Regional Competitiveness Report

Be a champion for the region and support local businesses! Take every opportunity to tell friends, acquaintances, family members — whether inside or outside the area — about the awesome things you love in Columbia. Have a new favorite restaurant? Know about a company doing cool, innovative things? Share them with your world! Find inspiration at engenuitysc.com/champion-columbia.

The Big Picture

A Word from the Economists In many ways, we can view the COVID-19 pandemic as

Key:

Columbia MSA

Peer Average

“The Great Reset” for our region’s and nation’s economy,

U.S. Average

most notably in the dual roles of talent and livability in determining economic success at the regional level. We’ve

GDP Annual Growth Rate | 2006 - 2019

Source | U.S. Bureau of Economic Analysis

long seen people choose communities for livability, but employment availability has often been a constraint. That

8%

is now less true than ever as remote work continues to

6%

establish itself as a primary option. While it remains to be

4%

seen how much of that shift proves permanent, it’s now

2%

clear that a significant amount of work can be done from

0%

anywhere.

-2 % -4 %

As a region, Columbia can benefit from this trend - but only

2006

2007

2008

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2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Year-Over-Year Employment Growth Rate | 2006-2019 Source | U.S. Bureau of Labor Statistics

if we focus our efforts on building a closely-knit community that offers value and livability. The Columbia MSA has roughly tracked with its peers, but has consistently fallen

5%

behind the higher-performing communities. In the past

3%

year, we’ve significantly lagged our peers and the nation in

1%

major economic metrics; our principal county saw one of the state’s lowest gains in income.

-1 %

Changing this trajectory will take concerted effort that

-3 % -5 %

stretches beyond the boundaries of any one county or

2006

2007

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2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

municipality to provide inclusive growth that attracts and builds talent through livable communities - those that provide world-class places to live, learn, work and play. At

Household Income | 2006-2019 Source | U.S. Bureau of Labor Statistics

the same time, we must be conscious of our region’s brand

$65K

and seek to change the perception of the Columbia region

$60K

both internally and externally. We will not be successful

$55K

if our own residents are unable to be champions for their

$50K

community.

We must ask ourselves, as a collective region, “How can

$45K $40K

we make this a more livable, more prosperous place for all

2006

2007

2008

2009

2010

2011

2012

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2014

2015

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2017

2018

2019

people, and how do we communicate that to the world?”

Source | Joey Von Nessen, Division of Research, UofSC Darla Moore School of Business

www.EngenuitySC.com

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Talent

The Metrics GDP per Worker: Measures the productivity of a regional workforce

A region’s ability to attract, develop and maintain a vibrant and skilled workforce

9th/10

118

100 U.S. Avg.

STEM Degrees: Percentage of degrees awarded in science, technology, engineering and math

8th/10

87

89

89

89

91

91

90

92

94

STEM Salaries: Weighted average salaries in STEM occupations

8th/10 Knowledge Workers: Percentage of population employed in knowledge-intensive occupations such as management, legal and STEM

7th/10 Educational Attainment: Percentage of population with: Associate’s degree

5th/10 Bachelor’s degree or higher

5th/10 Columbia SC

Tallahassee FL

WinstonSalem, NC

Lexington KY

OVERALL RANKING

OVER TIME 6

Augusta GA

Charleston SC

Greensboro NC

Knoxville TN

Greenville SC

Raleigh NC

2016

2017

2018

2019

2020

2021-22

8 th

7 th

8 th

10 th

9 th

10 th

2021-22 Midlands Regional Competitiveness Report

Global Talent: Percentage of population that is foreignborn

8th/10

Talent Observations By and large, we saw relatively few significant changes in the Talent index this year. That’s due in part to the binary nature of changes in talent capacity. Migration in/out of a metropolitan area can occur relatively quickly due to perceived changes in livability or economic conditions, as demonstrated in places like Charlotte and Charleston. Many communities choose to focus their efforts on selling livability or immediate job availability, as exemplified by Experience Cincinnati’s talent attraction strategy. Inherent talent development, instead, requires a structured, long-term approach that incorporates formal and informal education across schooling levels. Its focus on sustainability means that it enhances capacity in the long run, but is less likely to immediately attract investment and residents.

Pandemic Leading to Employment Shifts A s the nation continues its slow recovery from the COVID-19 pandemic, employers within the Columbia metro — like many around the country — have struggled to fill positions. This has been especially true in service sectors like restaurants, hospitality, and retail, which are overrepresented in Columbia’s employment profile.

Workers cite difficult working conditions and low wages, and while compensation has risen rapidly over the latter half of 2021, many employees are pursuing new opportunities.

This short-term challenge, however, can become a longterm opportunity to build a stronger long-term workforce in critical industries like manufacturing, logistics and distribution. Retraining and upskilling programs, such as those offered by Midlands Technical College, offer a potential boost. These newly-skilled workers will have opportunities to work elsewhere, however; the region must complement training with available good jobs and a high quality of life to retain talent over the coming months and years.

Inequality of Place

Opportunities

Like many other communities, Columbia continues to see significant segregation in opportunity on a ZIP code-toZIP code basis. Areas separated by just a few hundred feet differ widely in income levels, educational quality, and other indicators of healthy communities. This inequality tears at the fundamental fabric of the community, and presents barriers to long-term equitable growth. As leaders consider economic development strategies to advance the region, those strategies must address inequality of opportunity through innovative partnerships between education and business to ensure each member of our community has the chance to succeed.

A s the nation continues to emerge from the pandemic, employers are struggling to find qualified talent to support their growth. A possible solution lies with the expansion of the existing apprenticeship model.

Currently, these apprenticeships are often used in skilled trades for technical college and high school students.

A version of the program for four-year schools could provide opportunities for students who often fall outside the co-op model used for engineering students and who don’t often get employable experience out of internships.

Instead, these students - many of whom are in fields with less-direct paths to employment - would have the opportunity to learn jobs on an ongoing basis while providing companies with hires who already have the needed soft skills at graduation.

Two recently launched programs stand to bolster Columbia’s ability to retain top talent. Capture Columbia, a program led by COR and supported by MBLG, seeks to bridge the gap between available jobs and students who are unaware of those opportunities by inspiring exploration and fostering purposeful interaction with regional leaders.

A complementary program, Bridging Columbia, focuses on engaging talent from communities of color with board service training and placement assistance. Conducted through a partnership between Talented Tenth, United Way’s Blueprint for Leadership, and MBLG, Bridging Columbia builds stronger community connections while strengthening the pool of regional leadership.

www.EngenuitySC.com

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Innovative Capacity A region’s capacity to support the creation of new ideas, products and processes

100 U.S. Avg.

38 Augusta GA

222

197

WinstonSalem, NC

Columbia SC

OVER TIME

University Research & Development Expenditures: University and college R&D expenditures per 1,000 people

Academic Achievement: Percent of population aged 25 years and older holding a graduate degree

4th/10

131

Research & Development: Funding: Amount awarded from all sources per 1,000 people

7th/10

44 Greensboro NC

SBIR and STTR Awards per 100,000 residents

7th/10

91

86

OVERALL RANKING

8

211

121 84

Innovation Awards:

8th/10

What are SBIR and STTR awards?

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are two of the largest sources of early-stage capital for technology commercialization in the United States. They allow US-owned-and-operated small businesses to engage in federal research and development that has a strong potential for commercialization. SBIR awards can be procured directly by small businesses, while STTR awards require formal collaboration with a research institution.

The Metrics

Greenville SC

Charleston SC

Knoxville TN

Raleigh NC

Lexington KY

Tallahassee FL

2016

2017

2018

2019

2020

2021-22

7 th

8 th

8 th

7 th

7 th

7 th

2021-22 Midlands Regional Competitiveness Report

Innovative Capacity Observations • • •

Columbia’s overall performance in this index continues to show gradual improvement. While not a leading city for startup activity in the Southeast, any improvement in an index where change is generally slow is positive.

The Columbia region is beginning to see growth in research & development funding outside of the university environment, a product primarily of the life sciences industry.

More work remains to be done in SBIR & STTR funding, which requires researchers to build outside connections and approach their work with an entrepreneurial mindset.

Local Companies Respond to COVID-19 Needs Nephron Pharmaceuticals While the COVID pandemic has significantly affected many, multiple local companies have played significant roles in the nation’s response. Nephron Pharmaceuticals used its staff expertise and partnership with the University of South Carolina to develop rapid testing and vaccination programs, easing the burden on the nation’s overwhelmed private lab system. As the country was affected by shortages of key medical supplies, Nephron also announced major expansions to reduce these vulnerabilities - new facilities capable of producing vaccines and nitrile gloves.

IMCS Similarly, IMCS - a biotechnology company headquartered in Irmo - saw increased demand for its core offerings, which develop and systematize the drug discovery process through specialized chemistry and automation. The company announced a $4.1M expansion, allowing them to enhance their in-demand services.

UofSC Launches Propel Research Mentorship The University of South Carolina has set records for sponsored research funding each of the past seven years.

As it continues to boost its research profile in critical areas like public health, the University has launched Propel, a new research mentorship program. The program will boost early-career researchers as they seek to secure larger blocks of funding, helping them refine their proposals and apply to major grant opportunities.

By the Numbers

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Opportunities T he most direct route to growth for Columbia’s entrepreneurial ecosystem is through expanded research efforts at the University of South Carolina. New and ongoing industry partnerships contribute to a culture of commercialization in a research profile that continues to set sponsored funding records annually. Close collaboration with economic development partners can expand the pool of targets while providing another attractive element for major employers in search of highskill talent pipelines.

Attracting innovative companies requires a different marketing focus than industries like logistics and warehousing, which rely heavily on a pool of lowerskilled talent. To recruit research-intensive companies, the Columbia region must continue to focus on livability and talent development as a critical driver of decisions.

Researchers and engineers often have numerous job opportunities, making quality of place an important decision factor for startups and innovation-oriented companies.

www.EngenuitySC.com

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Entrepreneurial & Business Environment A region’s relative ease of doing business and the strength of the support system for the startup, growth and maintenance of businesses

128

100

136

88

85 68

Percentage of income in a region generated by business ownership

3rd/10 Small Business Activity: Measure of a region’s capacity to produce new companies

Business Density: Number of establishments per 1,000 employees

92

4th/10 Business Services:

76

71

Proprietor’s Income Share:

6th/10

113

U.S. Avg.

The Metrics

Share of population employed in professional and technical services occupations

3rd/10

48

Establishment Growth Rate: Growth in number of business establishments, 2000-2016

3rd/10 Greenville SC

WinstonSalem, NC

Greensboro NC

Lexington KY

OVERALL RANKING

OVER TIME 10

Knoxville TN

Augusta GA

Raleigh NC

Columbia SC

Tallahassee FL

Charleston SC

2016

2017

2018

2019

2020

2021-22

7 th

9 th

3 th

3 rd

3 rd

3 rd

2021-22 Midlands Regional Competitiveness Report

Entrepreneurial & Business Environment Observations • •

Columbia continues to see success in entrepreneurship. One particular area that continues to boost our performance here is the long-term growth in business establishments, which has tracked closely with the region’s significant population growth. This is mirrored by the proprietor’s income share, another indicator of small, locally-operated business success.

The Columbia MSA recorded nine companies listed as part of this year’s Inc. 5000 list, the most since the Competitiveness Report was published. These companies represent a wide variety of industries, from software and services to legal and retail. Over recent years, many of Columbia’s entrants have scaled significantly since their first inclusion on the list, making this a promising sign for the future.

Moving Entrepreneurship Forward Over the past year, local economic development groups have partnered to evaluate the strengths and weaknesses of the region’s entrepreneurial ecosystem through dozens of interviews with local entrepreneurs. At the core, Columbia’s struggles with high-growth companies can be attributed to a small pool of potential candidates - a much smaller number of local companies have received venture capital than in higher-activity entrepreneurship centers in the southeast, like Richmond, Raleigh, and Charleston.

The region must focus on expanding the pool of startups by breaking down barriers to entry and building a stronger sense of entrepreneurial community. Events like GrowCo’s Growth Summit and One Million Cups and resources like Innovate Columbia serve as starting points for would-be entrepreneurs as they begin their journey. To help them start and build, more early-stage mentoring, such as that offered by the UofSC/City of Columbia Technology Incubator, UofSC’s Faber Center for Entrepreneurship, and Midlands Technical College’s Center for Entrepreneurial Success, are needed along with those essential community-building functions. And, these efforts can’t exist in a vacuum: For Columbia to reach the next level, entrepreneurship must be treated as a critical part of regional economic development strategy.

Taxes and the Business Environment The local property tax environment, particularly in the City of Columbia and Richland County, have long been noted as a structural barrier to growth. A recent tax study, led by the City of Columbia, identified challenges and potential paths forward. The report found that property tax rates were significantly higher than in competing metros, due in part to lower assessed real estate values. Taxes have also had a particularly negative impact on renters, who were likely to have lower incomes and less room to cover the higher rents necessitated by high tax burdens. The report recommends close collaboration between municipalities, counties, and the state to address structural challenges such as low growth and out-of-balance school tax rates. As regional leaders seek to address these issues, tax breaks offered to large-scale developments help expand the overall tax base and alleviate these challenges. At the same time, support can be provided to small and growing businesses to alleviate the burden of business license fees and support longer-term growth.

Opportunities C olumbia has a wide variety of existing resources for entrepreneurs which are often under-leveraged and undercommunicated, particularly within communities historically disconnected from resources. Shared communications and outreach strategies, including events, can help bridge the gap to accessing these resources.

E ntrepreneurs often choose to locate their startups in environments that offer access to talent and capital and are most favorable to business growth. That makes talent attraction and retention critical issues in building a highpotential entrepreneurial ecosystem. One potential solution, piloted by initiatives like CharlestonWorks and Colorado’s BuiltInCO, is creating and promoting a shared job board for startups and tech-centric companies.

L ocal governments can support a variety of businesses by removing obstacles such as duplicative or unclear business license fee requirements or parking requirements.

Economic development offices have a role to play in identifying and supporting high-growth potential startups, as well. By providing targeted support like vendor and customer connections and location selection services, offices can help early-stage companies to overcome barriers and to accelerate growth.

www.EngenuitySC.com

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Industry Clusters

The Metrics High-Impact Density: Share of regional employment in traded clusters

A region’s ability to sustain and grow high-impact industries that are competitive on an international scale

8th/10 Employment Diversity:

100

Concentration of employment in top five occupations

U.S. Avg.

101

High-Wage Employment:

88

67

67

Concentration of jobs in high-wage occupations (annual pay greater than median household income)

72

10th/10 Traded Cluster Employment Growth:

51 39

Growth of employment in traded clusters, 2000-2016

43

42

4th/10

8th/10 Household Income: Median Household Income, 2018

4th/10

19 Augusta GA

Columbia SC

Tallahassee FL

Lexington KY

OVERALL RANKING

OVER TIME 12

Knoxville TN

Charleston SC

Greenville SC

Greensboro NC

WinstonSalem, NC

Raleigh NC

2016

2017

2018

2019

2020

2021-22

7th

8 th

9th

9 th

7 th

9 th

2021-22 Midlands Regional Competitiveness Report

Industry Clusters Observations •

•

•

Columbia continues to struggle in developing high-impact clusters, a symptom of an uncoordinated approach to economic development. The region ranks last among our peers in high-wage employment, and the MSA’s core county has seen little growth in wages in recent years. Successful regions across the country have focused on existing or nascent strengths to build successful regions. Whether agricultural technology in Kansas City or insurance in Des Moines, these areas have focused resources and infrastructure to boost existing companies and attract new ones.

The Columbia MSA has experienced a 3.09% loss in traded cluster employment levels since 2010, third-worst among our peers. Over that time, we’ve seen the banking industry - a historically important sector for the region - significantly impacted by Charlotte’s establishment as a primary finance hub, and growth in industries like manufacturing and distribution captured by the Upstate and Charleston regions.

Supported primarily by employment in the government, education, and medical sectors, the region has maintained middle-of-the-pack positioning in household income. However, we’re seeing little growth overall even as the cost of living continues to rise.

Room to Grow in Health Sciences

High Demand Driving the Industrial Market

University of South Carolina School of Medicine Columbia’s new BullStreet campus is poised to be one of the most significant developments in Columbia in years. The University maintains substantial research portfolios in public health and pharmaceuticals combined with a strong nursing program. However, there has been limited commercialization activity due in part to outdated facilities.

The new campus will offer improved lab space and other facilities. Equally importantly, office space will allow innovative life sciences and healthcare companies the opportunity to colocate in area with an existing hospital presence and nearby neighborhoods. That’s a recipe for growth proven around the country, with places like Cleveland centering economic development efforts around healthcare specializations.

Columbia’s industrial property market is in one of its hottest phases in years, with high levels of new construction planned or underway and record-low inventory available.

Shifts in consumer patterns have created new demand for logistics and distribution spaces as more people opt for home delivery. Combined with the impact of pentup demand for industrial space, buildings suitable for manufacturing and distribution are often being leased prior to completion, and the market is seeing more speculative construction than any time in the past decade.

Opportunities As Columbia moves beyond the state’s traditional industries, it may be best to view its economic future through the lens of what one of these new clusters may look like. A robust health sciences cluster is already bringing the building blocks together: With a new campus at BullStreet near existing hospitals, the UofSC Medical School serves as a hotbed for research activity and industry collaboration. Its research is driven by an ever-growing focus on AI, using tools like IBM’s Watson to parse incredible amounts of data to design new treatments and devices. Our region’s long-standing expertise in manufacturing makes Columbia a leader for companies looking to produce new drugs and medical devices. Together, this single theoretical cluster builds upon a number of existing strengths to produce jobs requiring a variety of educational levels, and partnerships with high schools, technical colleges, and 4+-year colleges provide meaningful training opportunities for each.

Image courtesy of Colliers International | South Carolina

www.EngenuitySC.com

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Livability

The Metrics Arts and Entertainment: Employment in arts, entertainment and recreation

A region’s ability to build an inclusive and dynamic live, learn, work and play environment

100

U.S. Avg.

92

93

99

97

95

105

103

102

8th/10

107

109

Healthcare Access: Physicians per 100,000 residents

4th/10 Commute Time: Average commute time to work

6th/10 Vitality: Percentage of population aged 15 - 44 years old

4th/10 Cost of Living Index: Relative cost of housing and everyday items

7th/10 Crime: Violent crime rate per 100,000 residents

10th/10 Greensboro NC

Columbia SC

Greenville SC

Knoxville TN

OVERALL RANKING

OVER TIME 14

Augusta GA

Tallahassee FL

Charleston SC

WinstonSalem, NC

Raleigh NC

Lexington KY

2016

2017

2018

2019

2020

2021-22

3 rd

5 th

8 th

8 th

7 th

9 th

2021-22 Midlands Regional Competitiveness Report

Gallup Well-Being Index: A 5-part index measuring well-being in the physical, community, financial, social, and career areas

4th/10

Livability Observations •

• •

This was the first index in which we started to see the effects of the pandemic appear, as reflected in a significant decrease in Arts & Entertainment employment. For the last several years, Columbia’s position has been bolstered by peer-leading growth; by May 2020, the Columbia MSA had dropped back to the lowest employment level in arts, entertainment, and recreation of our peers.

Our positioning in the Well-Being Index improved for the first time in several years, as we ranked better than national average in physical and social well-being.

The Columbia MSA continues to see serious challenges with the highest violent crime rate of its peers, an issue deeply exacerbated at the national level by COVID-19.

Planning for Resiliency In 2015, Columbia saw its worst flooding in decades, destroying lives and infrastructure - and in it, a preview of the future for communities around the country. Severe drought in the West has led to record-setting wildfires and depleted water resources, while heavy rains have led to devastating flooding across the Southeast and Midwest.

Even more recently, Roper St. Francis Hospital - one of the Charleston region’s major employers - has elected to move off the downtown peninsula due to increased flooding risk driven by rising seas. Each of these point to the need for resiliency planning. Looking ahead to a warming future, Columbia must plan together as a community to preemptively mitigate challenges such as extreme heat, flooding, and drought to ensure a livable future.

Community Perception Challenges In late 2020, the Central Carolina Community Foundation, in partnership with the Knight Foundation, released new research on our region’s own community perceptions.

Columbia residents had a significantly lower opinion of the community than other communities, despite expressing similar levels of satisfaction on an amenity-by-amenity basis.

A lower percentage of residents would willingly choose to stay than average communities around the country.

Together, these highlight the need to develop a stronger shared sense of place and community and to improve livability for all our residents through better educational, career, recreational and housing opportunities. A starting point? Public art efforts, like those pursued by Cayce, Columbia, and West Columbia in recent years, provide residents and visitors alike with an immediate connection to their community.

Opportunities The Arts & Entertainment job losses are symptomatic of Columbia’s need to continue building a stronger regional brand identity. Peer communities with stronger brand recognition, such as Charleston and Greenville, showed greater resiliency in a sector where many jobs are funded through tourism-driven revenues. Without business travel, the Columbia community saw significant losses — for example, the number of total overnight visitors dropped by roughly 30%, reducing spending significantly. We must focus our efforts on comprehensively addressing our lack of a shared community identity by reinforcing positive messaging on a regular basis through both formal channels and less-formal channels.

Development of the riverfront and the Three Rivers Greenway System continues to represent a major opportunity to improve the region’s quality of life. Within the past year, Phase 1A of the Saluda Riverwalk has opened and funding for the Greenway’s vital pedestrian connection across the Broad River has been secured, while the connection to the Lake Murray Dam continues. Meanwhile, the American Rescue Plan and federal infrastructure bill offer some of the largest potential sources of funding in years. If these can be leveraged to create vital infrastructure that accelerate development, our region’s long-discussed riverfront can move much closer to reality.

www.EngenuitySC.com

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EngenuitySC Board Members About EngenuitySC Governed by high-ranking regional leaders in education, government and business, EngenuitySC is a nonprofit that works to make the Columbia, S.C., region a standout choice for top talent and competitive companies. EngenuitySC is a trusted force, working behind the scenes to build a community cultivated for living, working, playing and learning. Learn more at www.engenuitysc.com.

About MBLG The Midlands Business Leadership Group (MBLG) is an organization composed of over fifty (50) corporate leaders who convene regularly to work on issues critical to the Midlands region.

Platinum Sponsors

Mayor Elise Partin — Chair City of Cayce

Ben Green Insurance Advantage

Ted Nissen — Chair-Elect First Community Bank

Bill Kirkland The University of South Carolina Office of Economic Engagement

Paul Livingston — Secretary/Treasurer Richland County Council Mayor Steve Benjamin — Founding Co-Chair City of Columbia President Harris Pastides — Founding Co-Chair The University of South Carolina

Edna Langley Langley 3, LLC Dr. Greg Little Lexington County School District One John Lumpkin

President Roslyn Artis Benedict College

Lasenta Lewis-Ellis LLE Construction, LLC

Lee Bussell Chernoff Newman

Chakisse Newton Richland County Council

Morgan Crapps Parker Poe Consulting

President Ron Rhames Midlands Technical College

Todd Cullum Lexington County Council

Dr. Keith Shah Optum

Scott Graves BlueCross BlueShield of South Carolina

Gold Sponsors

Silver Sponsors • • • •

Central Carolina Community Foundation Chernoff Newman Colliers International | South Carolina First Citizens Bank

• • • •

First Community Bank Nelson Mullins Ogletree Deakins Synovus

Public and Education Partners

MBLG Executive Committee John Folsom — Chair Colliers International | South Carolina

William Hubbard University of South Carolina School of Law

James Bennett First Citizens Bank

Lou Kennedy Nephron Pharmaceuticals

Bill Boyd Haynsworth Sinkler Boyd

John Lumpkin

Lee Bussell Chernoff Newman Mike Crapps First Community Bank Chuck Garnett Synovus

Bill McElveen Adams & Reese David Pankau BlueCross BlueShield of South Carolina Tommy Suggs HUB International JoAnn Turnquist Central Carolina Community Foundation

P.O. Box 5683 | Columbia, SC 29250 | 803.354.5720 | engenuitysc.com