2012 CRDA Economic Scorecard

report overview Tracking economic progress in Berkeley, Charleston and Dorchester counties

2012

Regional

Economic scorecard

Produced for the community by: Charleston Regional Development Alliance Research and analysis by: University Center for Economic Development, Clemson University Center for Business Research, Charleston Metro Chamber of Commerce

view Online: www.crda.org/economicscorecard

1

2

Introduction

Building regional prosperity The 2012 Regional Economic Scorecard is the third annual assessment of our three-county

Key Takeaways Overall, the Charleston region is performing well economically, while also undergoing

region’s economic progress compared to six similar metro areas and two leading economies.

a structural transformation into a more diversified, knowledge-based economy. Our three-

It provides our region’s business, governmental, community and academic leaders with

county region has the ingredients and the potential to become a world-class metro like Raleigh

unbiased data to help focus a collective effort to address our weaknesses and maintain positive

or Austin, if we focus on the critical building blocks of long-term economic success.

momentum.

As you’ll see in this year’s report, our regional economy is performing well. Charleston’s

critical issues for economic success:

GRP grew more than 8% from 2005-2010, significantly outperforming the state, the U.S. and peer metros. We’re also the #1 U.S. metro for manufacturing job growth, and for growth in the percentage of adults with college degrees.

These positive trends are the result of our region’s leaders working together to move our economy forward.

1

Transportation

2

Education

3

Innovation

4

Talent

Transform the region’s infrastructure into a world-class multimodal system

But there is more to be done if we are to build a globally competitive economy for the Charleston region. So, in this year’s Scorecard, we not only report the data, we outline key takeaways and building blocks for long-term economic success. These are the priorities that we believe should inform state and local policy decisions.

Our region is in direct competition with communities around the world for business and

Invest in education to transform outcomes and grow a workforce pipeline

talent. We are becoming a world-class economy and that means doing business at a different level. Continued success will depend on everyone working together, having the broad support of public/private partnerships, and creating a shared vision for our region’s economic future.

David T. Ginn President & CEO Charleston Regional Development Alliance

Matt Sloan President, The Daniel Island Company Chairman, 2012 Regional Economic Scorecard Task Force

Develop and build the systems necessary to promote and support innovation

Graduate, attract and retain highly skilled professionals

3

Report Overview How to read the data This report utilizes federal government data, compiled and analyzed by Clemson University’s Center for Economic Development and the Charleston Metro Chamber’s Center for Business Research.

The report follows the Model for Economic Prosperity pyramid, which illustrates the building blocks of economic success. The 2012 Regional Economic Scorecard will assess the economic development outcomes and the competitiveness inputs at the top and bottom of the pyramid model.

Because of the time lag in data availability, this 2012 report highlights data captured from 2005 to 2011.

Model for Economic Prosperity Economic Development Outcome • • •

Economic Output Employment Earnings & Income

Charleston

Environment for Development • • •

What is an Index?

This Scorecard examines numerous indicators of regional economic competitiveness. Each indicator is shown relative to the U.S. average. For example, a value of 110 means the metro is performing 10% above the national average.

Industrial Composition Physical Infrastructure Social, Cultural & Institutional Environment

Competitiveness Inputs • • • •

Human Capital Innovative Activity Entrepreneurial Environment Quality of Place

Indicator U.S. Value

X 100 = INDEX VALUE

Our comparative locations A taskforce of business and community leaders selected six similar metro areas and two leading metros for this benchmarking project in 2010.

They were chosen based on a diverse mix of economic assets comparable to Charleston’s and detailed below.

LEADING

comparative

Greenville, SC

Jacksonville, FL

Knoxville, TN

Lexington, KY

Richmond, VA

Savannah, GA

manufacturing base, tech transfer and higher education

port, business diversity, military presence and talent attraction

federal research lab, entrepreneurial environment and higher education

entrepreneurial environment, R&D and strength in medical technology

growing base of R&D, higher education, logistics and biotech cluster

port, military, creative economy and tourism industry

Austin, TX

Raleigh, NC

healthy balance of renowned for strong technology, business job growth, R&D, services, education & higher education, government, and is a and as best place talent magnet to live

4

Economic development outcomes The indicators Gross Regional Product Defined as the market value of all final goods and services produced within the region, or more simply as “economic output.” A rising GRP means more money is flowing through the local economy. From 2005 to 2010, Charleston’s GRP grew 8.1%, significantly outperforming all peer metros, the state and the U.S. However, Austin’s and Raleigh’s GRP grew twice as fast as Charleston’s.

Export Activity Measures the dollar value per job of all purchases of U.S. goods and services by residents of foreign countries, including payments for patents and trademarks, contracts with U.S. consultants, and spending by foreign tourists and students. At $10,154 per job, the Charleston region ranked fourth in export activity among the peer metros and sixth overall (lagging behind both Austin and Raleigh).

Gross Regional Product Growth, 2005 - 2010 4.3% U.S. Average

Earnings per Worker Divides all wage and salary earnings by the number of people actively employed. From 2005 to 2010, regional earnings per worker grew 20.3% to $46,782, a higher growth rate than the U.S. (13.1%), Austin, Raleigh and all peer metros except Savannah. Despite the growth, Charleston’s earnings still lag behind the U.S. average wage of $51,739 and rank fourth among peer metros. While metro Charleston’s cost of living is very close to the U.S. average, a gap exists between what people earn and what it costs to live here.

Per Capita Income (PCI) Measures overall wealth within a community on a per capita basis. PCI is determined by dividing the population’s total income from all sources by the number of people who reside in the community, including infants and children. As with earnings per worker, Charleston’s PCI is growing rapidly at 17.5%, but is still below the national average, three of the six peer metros and the two leading metros. However, Charleston’s PCI growth rate was faster than the U.S. (15.1%), indicating a decrease in the income gap between the region and the nation during 2005-2010.

19.9%

Raleigh

8.1%

Charleston

5.5%

Lexington

3.6%

Greenville

3.0%

Knoxville Jacksonville

1.7%

Richmond

1.5%

Savannah 0.0%

0%

Regional Employment Measures the number of people actively employed in an area. Employment growth generally correlates to job growth. From 2005 to 2010, which included the Great Recession, employment in the Charleston region grew 2.2%. This growth rate is significantly higher than peer metros, which either declined or had zero net growth. Austin and Raleigh, however, experienced employment growth of 11.3% and 7.8% respectively.

23.7%

Austin

5%

10%

15%

20%

25%

Source: Bureau of Economic Analysis

Earnings Per Worker Growth, 2005 - 2010 13.1% U.S. Average

24.3%

Savannah

20.3%

Charleston

18.9%

Raleigh Knoxville

17.1%

Richmond

16.9%

Greenville

16.8% 15.5%

Jacksonville

11.3% 11.1%

Lexington Austin 0.0%

0%

5%

10%

15%

20%

25%

Source: Bureau of Economic Analysis

5

A Closer Look

Export Activity Per Job, 2010 Greenville

$13,070

Lexington

$12,981

Savannah

$11,906

Austin

$11,032

Raleigh

$10,738

Charleston

$10,154

Richmond

$8,993

Knoxville

$8,879

Jacksonville

$6,813 Boeing’s North Charleston plant rolls out its first 787 Dreamliner. (Photo/Leslie Burden)

$0

$1,500

$3,000

$4,500

$6,000

$7,500

$9,000

$10,500

$12,000

$13,500

Source: Brookings Institution

Average Wage Growth 2000-2010 $46,000 $44,000

2010: Charleston wages 85% of U.S. average

$42,000

Charleston is the #1 U.S. metro for manufacturing job growth Charleston experienced the largest growth (14%) in manufacturing jobs of any U.S. metro area, from Q1 2010 to Q4 2011, according to the Brookings Institution, a nonprofit public policy organization based in Washington, D.C. The report cites the automotive and aerospace sectors as key drivers.

Source: Brookings Institution Report, May 2012

$40,000

UNITED STATES

$38,000 $36,000

2003: Charleston surpasses S.C. average 2000: Charleston wages 78% of U.S. average

$34,000 $32,000

CHARLESTON MSA SOUTH CAROLINA

$30,000 $28,000 $26,000 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: Bureau of Labor Statistics

The Sprinter Van is manufactured by Daimler Vans Manufacturing in Ladson.

(Photo/Provided)

Competitiveness inputs

The Indicators

HUMAN CAPITAL INDEX

Knowledge Workers, 2011

Why is this important?

The ability to produce, attract and retain talent is critical to the

Positive changes in the Human Capital Index directly correlate

region’s long-term success and global competitiveness. Educated

with positive changes in the Innovation Index. If the region is to see

residents with specialized skills and knowledge fuel the performance

significant movement in innovative activity, it must significantly

of existing firms and serve to attract new employers in our target

expand the percentage of the population with needed workforce skills,

industries. The better educated our workforce, the more quickly our

particularly knowledge and STEM* workers.

economy can take advantage of new opportunities and recover from

CHARLEST ON 103

Austin............ 122.4 Lexington........115.8 Richmond........113.9 Raleigh............ 113.3 Knoxville.........106.6

6 7 8 9

Greenville.......102.9 Charleston........99.4 Jacksonville....96.3 Savannah........ 93.3

= High School Graduates, 2010

Source: U.S. Census Bureau

College Graduates, 2010

107

Percentage of adult population (25+) with a bachelor’s degree or higher.

1 2 3 4 5

Rich Lexinmond & gton

99

knoxville

• Most significant positive change among all comparative metros • Primarily due to growth in adults with college degrees • Flat growth in adults with high school diplomas

1 2 3 4 5

Percentage of adult population (25+) with a high school diploma.

1 Raleigh...........106.2 6 Savannah........101.8 2 Jacksonville....104.1 7 Lexington........101.3 3 Charleston...... 102.8 8 Richmond.......100.5 4 Knoxville.........102.5 9 Greenville.........97.3 5 Austin.............102.2

104

The Trend

Percentage of population (ages 25-64) employed in occupations requiring specialized knowledge and creativity, such as management, finance, IT, science & engineering, healthcare, design, the arts, etc.

Source: Bureau of Labor Statistics

*STEM = Science, Technology, Engineering and Mathematics

negative shocks, such as the recent economic recession.

greenville, SavannaH & JACKSONVILLE

6

Raleigh............ 145.4 Austin.............. 139.7 Charleston......... 113.1 Richmond......... 112.4 Lexington.........110.6

6 7 8 8

Knoxville..........102.1 Savannah........100.7 Greenville......... 95.4 Jacksonville..... 95.4 Source: U.S. Census Bureau

117

IN & T AUS RALEIGH

Employment Rate, 2010 Percentage of an area’s workforce that is actively employed.

1 2 3 4 5

Austin............102.8 Richmond........102.1 Knoxville..........101.9 Lexington.........101.1 Raleigh............101.0

6 7 8 9

Savannah.......100.7 Charleston...... 100.2 Greenville........99.9 Jacksonville....98.2

Source: Bureau of Labor Statistics

75

100

United States Average

125

Change in Index Value: = Increase

= Decrease

= No change

The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.

U.S. Average = 100

7

A Closer Look Change in Knowledge Workers, 2005 - 2011 The index value of knowledge workers (percent of the population employed in STEM* related fields) increased 4 points between 2005 and 2011, but the region remains below the national average in the percentage of overall jobs in these fields.

Charleston recognized as #1 U.S. metro for Brain Gain

*STEM = Science, Technology, Engineering and Mathematics

3.5%

Greenville

Leads U.S. for growth over the past 10 years in percentage of adults with college degrees.

Knoxville

1.5%

Austin

1.4%

Jacksonville

Contributing Factors:

-1.4%

• Strong population growth – two times faster than the U.S. • People want to live here – #24 for in-migration among

-2.0%

U.S. metros • More students enrolled at area colleges and universities

Lexington

-5.2% -7.7%

Raleigh Savannah

Source: Brookings Institution, 2011

investment in the region’s future and not as a budget expense. To be competitive, it is critical that we build a pipeline of educated talent and technically-skilled workers aligned with the needs of the 21st Century workplace.”

Anita Zucker Chairperson & CEO, The InterTech Group

0% 1% 2% 3% 4% 5% 6% 7% 8% Source: Bureau of Labor Statistics

Business Perspective funding, both K-12 and higher education, as an

0.4%

Richmond

-8% -7% -6% -5% -4% -3% -2% 1% -0%

“State and local leaders must see education

3.9%

Charleston

Building blocks for success

P P P

Invest in education to transform economic outcomes and expand capacity Expand graduate and post-graduate offerings in engineering and software/IT Develop a regional strategy to graduate, attract and retain top talent

Competitiveness inputs

The Indicators

INNOVATIVE ACTIVITY INDEX

Employment in Technical Positions, 2011 Percentage of employment in computer, science, and engineering occupations.

Why is this important?

The ability to generate new ideas, products and processes

1 2 3 4 5

The more our region graduates, attracts and retains talent

is an important measure of a region’s competitive advantage.

with needed workforce skills, particularly knowledge and

An environment of innovation encourages the launch of

STEM workers, the more we will see positive changes in our

new businesses, provides growth opportunities for existing

Innovative Activity Index.

Funding from NIH, presented per local job.

1 2 3 4 5

76 TON

CHARLES

Venture Capital investment, 2010

84

1 2 3 4 5

131

72 7 6

kno xvil le

45

Knoxville............17.6 Jacksonville....... 9.3 Greenville............ 1.8 Savannah...........0.0

Financial capital provided to early stage startups, presented per local job.

gre env ille

0

6 7 8 9

Lexington........200.1 Charleston....... 199.6 Raleigh.............107.3 Richmond......... 72.4 Austin...............40.9

Source: National Institutes of Health

ton Lexing le nvil kso nd jac ichmo r

• Improvement since 2005 but still significantly below U.S. average on most indicators • More NIH funding per job than all but one comparative location • Challenge areas include venture capital and patent awards

Greenville.......100.4 Knoxville........... 91.7 Jacksonville....86.9 Savannah........ 54.5

NIH Funding, 2010

the area. The result: new, higher-wage jobs for area residents.

The Trend

6 7 8 9

Austin.............185.1 Raleigh............158.1 Charleston...... 102.4 Richmond........101.8 Lexington.........101.1

Source: Bureau of Labor Statistics

businesses, and attracts leading-edge businesses from outside

17

8

6 7 8 9

Raleigh...........299.9 Austin............ 284.4 Charleston........20.0 Jacksonville.....16.6 Greenville......... 14.5

Knoxville..........10.9 Richmond.......... 8.3 Lexington.......... 2.3 Savannah..........0.0 Source: Thomson Reuters

Patents Issued, 2009 Number of patents issued in an area, presented per 10,000 workers.

1 2 3 4 5

SAVANNAH

6 7 8 9

Austin...........459.0 Raleigh...........297.8 Lexington.......109.4 Greenville........89.2 Knoxville.......... 66.2

Richmond........38.8 Charleston........30.2 Jacksonville.... 23.0 Savannah......... 14.4

Source: Harvard Business School

211 222

100

United States Average

Austin Raleigh

200

Change in Index Value: = Increase

= Decrease

= No change

The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.

U.S. Average = 100

9

A Closer Look

in knowledge-based industries and that requires developing the necessary support systems. Without VC support and a focused, regional biomedical initiative, the region cannot realize its full potential. Toward that end, MUSC’s strategic plan includes emphasis on encouraging entrepreneurial activity and contributing to the development of new and innovative technologies.”

Raymond S. Greenberg, MD, PhD President, Medical University of South Carolina (MUSC)

Le xin

h

$0.00

na

nd

Ri

ch

mo

ille Kn ox v

Gr

ee

nv

ille

ille

$4.20

n

$15.20

Sa va n

$20.00

Source: Thomson Reuters Note: Does not include funding under the American Recovery and Reinvestment Act

Business Perspective depends upon our ability to compete successfully

$26.50

$0

Source: National Venture Capital Association

“The future economic vitality of the Charleston region

$30.30

gto

$36.60

nv

Note: To better assess regional performance, we’ve included three additional indicators: Venture Capital investment, National Institutes of Health (NIH) funding, and IT sector share of jobs.

$100 • 11% of U.S. private-sector jobs come from venture backed companies • Venture backed revenue accounts for 21% of U.S. GDP

so

Source: County Business Patterns

$200

ck

Greenville........88.0 Richmond........ 86.2 Knoxville......... 58.4 Savannah......... 32.1

ton

6 7 8 9

Ja

Austin............ 182.2 Raleigh...........170.9 Jacksonville....135.1 Charleston........ 117.2 Lexington........115.8

2009 - 2011 U.S. Average

les

1 2 3 4 5

$182.50

$300

ar

Percentage of employment in IT-related businesses.

$400

n

IT-Sector Share of Jobs, 2009

2009 - 2011 Avg.

$519.00

$500

Ch

Source: NSF-NIH Survey of Graduate Students & Post-doctorates in S&E

Venture capital (VC) is financial capital provided to early-stage, highpotential / high-risk startup companies.

The VC fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries. Venture capital investment, critical to the region’s innovation growth, did not exist here in 2005.

$547.20

sti

Richmond........ 94.7 Charleston........34.9 Jacksonville......0.0 Savannah..........0.0

Au

6 7 8 9

gh

Lexington......258.8 Raleigh........... 233.1 Knoxville.........186.8 Austin............. 178.7 Greenville.......162.5

Venture Capital Investment Per Job, ranked by 2009 - 2011 averages

$600

lei

1 2 3 4 5

What is Venture Capital?

Ra

Science-Related Graduate Students, 2009 Graduate students in health science, science, and engineering per 10,000 residents.

building blocks for Success

P P P

Build systems to support and promote innovation Support angel investor tax incentives and foster entrepreneurial growth Develop pipeline of educated, skilled knowledge & STEM workers

10

Competitiveness inputs

ENTREPRENEURIAL ENVIRONMENT INDEX

The Indicators Concentration of Small to Mid-Size Businesses, 2009

Why is this important?

Number of area businesses per 1,000 employees.

A supportive environment for entrepreneurs is key for

The continued growth of small businesses, in particular

new business creation and growth. Just as a favorable climate

the Business Services sector, is dependent on the continued

encourages new companies to put down roots, an unfavorable

growth of the region’s GRP and economic engines of growth,

climate can cause successful startups to seek more hospitable

particularly high-value target industry clusters: Aerospace,

communities. Innovative activity in the economy results in new

Advanced Security/IT, Biomedical and Energy Systems and

business and entrepreneurial activity.

related competencies.

6 7 8 9

Richmond.........95.5 Greenville..........92.1 Lexington..........89.1 Knoxville...........86.1 Source: U.S. Census Bureau

Business Churning, 2008

TON

Jacksonville...125.9 Austin.............. 115.7 Raleigh............110.6 Savannah.......104.6 Charleston....... 101.9

6 7 7 9

Richmond........94.9 Greenville.........92.1 Lexington.........92.1 Knoxville.........88.0 Source: U.S. Census Bureau

Proprietors’ Income Share, 2010

98

Percentage of an area’s income generated by self-employed business owners.

107

1 2 3 4 5

Austin............108.0 Knoxville..........99.3 Charleston........90.3 Raleigh.............74.8 Lexington......... 71.8

6 7 8 9

Greenville.........67.6 Jacksonville....63.8 Richmond.........61.9 Savannah........29.6

Source: U.S. Department of Commerce

115

ond hm Ric

L Gre exing env ton ille

ville knox

87

1 0 1 CHARLES le jacksonvil

94

1 2 3 4 5

Ral eigh

• 6.3 point improvement between 2005 and 2010 to above the national average • Primarily due to overall growth of business establishments • Significant growth in business services (legal, computer systems and management consulting)

84 8 5

Charleston...... 109.6 Raleigh...........105.0 Jacksonville....104.1 Savannah...... 100.9 Austin..............96.0

The total number of establishment births and deaths as a percentage of all area firms.

The Trend

Highest growth among all peers and leading metros.

1 2 3 4 5

Business Services, 2010 Share of regional employment in the professional and technical services industries (NAICS 54).

tin s u A

1 2 3 4 5

Austin............. 141.5 Raleigh........... 136.4 Charleston...... 104.0 Knoxville.........102.3 Jacksonville....98.2

6 7 8 9

Richmond........93.6 Lexington.........86.1 Greenville........ 84.7 Savannah........62.0

75

74

Source: U.S. Census Bureau

h Savanna Savannah

100

United States Average

125

Change in Index Value: = Increase

= Decrease

= No change

The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.

U.S. Average = 100

11

A Closer Look The Multiplier Effect

Growth in Charleston Region Business Services Sector, 2005 - 2010 44%

Growth

70

29%

60

Growth

(# of new firms)

New business investments, particularly in manufacturing and innovation sectors, create ripples of related “business-to-business” and “consumer-to-business” spending, which results in additional new jobs. This multiplier effect is also linked to the region’s growth in business services.

50 40

7%

Growth

30

8%

Growth

20

9%

22%

Growth Growth

Growth

Environmental consulting services

Scientific research and development

Advertising, public relations and related services

33%

25%

10

23%

Growth

Growth

30%

Growth

0 PeopleMatter will invest $18.8 million over the next 5 years and expects to create 265 new jobs. The company’s headquarters will open on King Street in 2013. (Photo/Leslie Burden)

Legal services

Accounting, tax preparation, bookkeeping and payroll services

Engineering services

Graphic design services

Computer systems design and related services

Management consulting services

Photographic services

Source: U.S. Census Bureau, County Business Patterns

Business Perspective “Over the past six years, it has been great to see how quickly the breadth of resources that are readily available to Charleston-based entrepreneurs has grown. In the years ahead, providing better access to early stage venture capital and working together to attract more technology professionals to the Charleston area will further accelerate the growth of our thriving knowledge economy.”

Grier Allen President & CEO, BoomTown :: Real Estate Web Platform

building blocks For Success

P P P

Ensure the region’s and state’s regulatory environments support business growth Incubate startups and streamline the process of starting a business Develop a regional strategy to graduate, attract and retain top talent

Competitiveness inputs

The Indicators

QUALITY OF PLACE INDEX

Climate, 2011 Percentage of days with high temperatures between 50° and 80° F.

Why is this important?

In an increasingly competitive global economy, attracting and retaining a talented

increasingly important to its long-term

workforce has become a critical economic

economic success as the competition for

development issue. With a strong demand

skilled workers escalates. New residents

for specialized knowledge and skills, highly

are also attracted to communities with

educated workers have more flexibility in

economic growth because they offer a range

where they choose to live and work.

of employment opportunities.

The Trend

106

CHARLES TON

103

6 7 8 9

Charleston........114.5 Knoxville..........107.7 Greenville.......106.6 Lexington.......106.0 Raleigh...........106.0

Richmond.......104.3 Savannah........95.9 Jacksonville....86.3 Austin...............72.7

Source: Weather Underground

Culture and Recreation, 2010

11%

24%

U.S.

CHARLESTON

Employment in the arts, entertainment and recreation (NAICS 71) provides a measure of an area’s cultural and recreational opportunities.

1 2 3 4 5

The region’s population grew twice as fast as the U.S. and outpaced all six peer metros, from 2000 to 2011.

Source: U.S. Census Bureau

Austin............129.5 Lexington........129.1 Raleigh............ 113.4 Jacksonville....103.1 Richmond.......102.3

6 7 8 9

Charleston....... 101.9 Savannah........86.5 Knoxville.........85.8 Greenville........ 83.4

Source: Bureau of Economic Analysis

Travel Congestion, 2010 Percentage of daily travel in congested conditions.

Lower number means less congestion.

1 Lexington.......120.4 6 Raleigh...........105.3 2 Austin............. 112.3 7 Greenville........ 92.2 3 Knoxville.........107.4 8 Savannah.........74.3 4 Charleston.......107.1 9 Richmond........69.9 5 Jacksonville 106.6

107 knoxv Richmille & ond

6 94 9 ah savannille & e nv Greeksonvill jac

• 8 point improvement since 2005, the highest increase of all comparative markets • Primarily due to drop in still relatively high crime rate, plus strong growth in health care access • Congested road conditions and affordable housing continue to be areas of concern

1 2 3 4 4

An area’s lifestyle attributes are

Austin

12

Source: Texas Transportation Institute

114

Crime Rate, 2010

116

eigh l a R gton n i x Le

Violent crimes per 100,000 population.

Lower number means more crime.

1 2 3 4 5

Austin.............166.1 Richmond.......149.6 Raleigh...........122.9 Savannah.........117.7 Lexington........92.8

6 7 8 9

Knoxville.........86.5 Charleston........78.4 Greenville......... 77.7 Jacksonville.... 72.4

Source: Federal Bureau of Investigation

Change in Index Value:

75

100

United States Average

125

= Increase

= Decrease

= No change

The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.

U.S. Average = 100

13

A Closer Look Air Quality, 2011

Housing Affordability Index, 2010

Percentage of days with air quality measured as “good” or “moderate” by the EPA. 1 1 3 4 5

Charleston....... 101.4 Greenville.........101.4 Lexington.........101.1 Raleigh...........100.8 Austin.............100.6

6 7 8 9

Savannah........ 99.7 Richmond........99.2 Knoxville.........98.6 Jacksonville.....97.2

This index is the ratio of median household income to the income needed to qualify for a median-priced house. A higher ratio (index number) reflects more affordable housing.

115

Source: U.S. Environmental Protection Agency

Number of healthcare practitioner and technical occupations per 100,000 population provides a measure of access to healthcare professionals.

1 Knoxville.........152.8

Lexington....... 148.7 Charleston...... 130.4 Richmond.........119.1 Greenville.......104.5

6 7 8 9

112.4

Lexington

111.9

Knoxville

110

Healthcare Access, 2011

2 3 4 5

113.5

Greenville

109.0

105

Savannah.......104.4 Jacksonville.....101.1 Raleigh............89.3 Austin..............80.4

Austin

103.4

Jacksonville

U.S. Avg. 100

101.2 Raleigh

If local workers can’t afford to live near their jobs, the results are: • longer commute times • increased commuting costs • increased traffic congestion • further concerns of sprawl

97.0

Savannah

95

Source: Bureau of Labor Statistics

90

90.7

Richmond 85

88.8

Charleston Source: National Association of Realtors

Business Perspective “We chose Charleston for our North American headquarters in the early 1980s based on its strategic location and attractive lifestyle attributes. This area has grown dramatically since then, and traffic congestion is now negatively impacting our employees’ commute times and overall satisfaction with their work life. If this region is to remain economically successful, investments in a world-class transportation system must be a top priority. These investments should not just focus on existing issues but prepare us to manage future growth as well.”

Matt Weismiller President, Berchtold Corporation

Building blocks For Success

P P P

Invest in a world-class transportation system to address existing problems and manage future growth Support long-term regional planning that includes harbor deepening and a multimodal transportation system with upgraded roads and bridges, public transit and bike paths Encourage a diverse mix of affordable housing options across the region, so residents do not have to “drive to qualify”

14

Leveraging Assets

Opportunity next year one progress report strategic Priorities

1 Economic Health 2 Leadership

Building a Globally Competitive Economy for the Charleston Region Opportunity Next is the Charleston region’s comprehensive, cluster-based economic development strategy, which guides regional efforts to strengthen the local economy, improve average wages and create new high quality jobs. After a nine-month research and planning process, the five-year strategy launched in late April 2011.

Strategic Priorities While the Charleston Regional Development Alliance (CRDA) facilitated the Opportunity Next planning effort, implementation of the strategy is the responsibility of multiple organizations across the region. Opportunity Next recommends six strategic priority actions that must take place to improve economic conditions across the region.

avalanche

Avalanche Consulting, who facilitated the Opportunity Next strategic plan, returned in May 2012 to review progress to date. The following is their first-year progress report.

Promote the region first. The private sector should step up its involvement in economic development, by providing guidance that advances target industry growth and participating in initiatives that improve educational programming, R&D, and marketing.

Status

• On course and exceeding U.S. averages • Good private sector and

education involvement

• Alignment Board formed, consisting

of 24 area organizations with key roles to play in implementation

• Target task forces largely undeveloped • Bio consultant hired • SC Aerospace Council possible

(locate in region)

• Regional higher education leaders

Development/ 3 Workforce Education The alignment of workforce development and education with economic development is critical to economic growth. Create a permanent leadership group comprised of educators and workforce developers from K-12 through technical education and higher education. Expand higher education offerings, especially in engineering fields.

Strengthen PreK-12 education, support a Graduate Charleston program and build a Cradle-to-Career initiative.

conducting a regional economic & strategic impact study

• Leadership continues to come

together to address education

• Cradle to Career planning nearly complete;

Strive-like program being considered

• Graduate Charleston funding pursued

15

4 Infrastructure Regional leaders must continue to support and promote the Port, settle and move forward with the rail decision, complete the “Our Region Our Plan” study, and concentrate on investing in I-26 improvements.

5 Entrepreneurship and Innovation

Clemson’s energy campus is a gamechanger that could result in vast economic development opportunities. It’s critical to improve available capital for startup and high growth companies. Develop a regional Competitiveness Center that pools all research capacity and provides a one-stopshop for information about the region.

6 Global Marketing/

Business Development

Promote the region’s strengths to target industries. Bring talent into the region to fuel employers’ growth and generate new startups.

• Lack of resolution to rail issue • “Our Region Our Plan” incomplete • PR campaign on behalf

of the Port cancelled

•

Major infrastructure improvements

prioritized; funding sought through Infrastructure Vision Task Force

• Clemson’s energy campus moving forward;

planning underway for Graduate Education Center

• Competitiveness Center moving forward • SCRA/SC Launch working on developing

a VC fund with private dollars

• More funding and support systems needed

MOVING REGION FORWARD The Opportunity Next strategy aligns with the Model for Economic Prosperity pyramid, which serves as the framework for this Regional Economic Scorecard. While the Scorecard measures our economic indicators against data from sister metros in the Southeast, the reality is the Charleston region must be globally competitive to succeed in an economy increasingly defined by innovation, knowledge and international competition.

All regional organizations have a role to play in moving our economy forward. Find an element of the strategy you are passionate about and get involved in a big way.

www.Opportunity-Next.com

Key Takeaways The Charleston region has the ingredients and the potential to become a world-class metro

• Strategic investments made to CRDA website • Coordinating efforts with CVB • Expanding PR to international media • New sales collateral • Increased prospect activity • Biomedical consultant engaged to set the

course for biomedical economic development initiative

Overall Implementation: Average

Progress in strategic priorities is mixed. There is a lot of activity, some that was not in the Strategy (that’s okay), but it is advancing the region toward its goal. Several major priorities have not progressed.

Source: Avalanche Consulting, May 2012

like Raleigh or Austin, if we focus on the essential building blocks of long-term economic success. While the regional economy is performing well, it will take all of us working together to truly become a global destination for business and talent.

critical issues for economic success

1 Transportation Transform the region’s infrastructure into a world-class multimodal system

2 Education Invest in education to transform outcomes and grow a workforce pipeline

3

4

Innovation Develop and build the systems necessary to promote and support innovation

Talent Graduate, attract and retain highly skilled professionals

2012 Scorecard Task Force

Research & Analysis

Chairman

University Center for Economic Development, Clemson University

Matt Sloan, The Daniel Island Company

Members

Bonnie Bella..................Trident United Way Rita Berry......................Greater Summerville/Dorchester

County Chamber of Commerce Sally Ehrenfried............Blackbaud Courtney Herring.........Charleston Metro Chamber of Commerce Ashley Holbrook...........The Boeing Company Meg Howle....................Trident Technical College Foundation Michelle Mapp..............Lowcountry Housing Trust Barbara Melvin.............SC Ports Authority Steve Osborne...............College of Charleston Bobby Pearce.................Smith Moore Leatherwood Amy Riley......................Thomas & Hutton Laura Varn.....................Santee Cooper Heather Woolwine........Medical University of South Carolina

Produced for the community by the Charleston Regional Development Alliance

The Charleston Regional Development Alliance (CRDA) is a nonprofit economic development partnership representing Berkeley, Charleston and Dorchester counties.

Supported and led by the region’s most influential business leaders, three county governments, largest municipalities and top academic institutions, the CRDA serves as a catalyst for long-term, sustainable economic growth in our three-county region by driving a global marketing effort to attract the world’s best companies, entrepreneurs and professional talent. The CRDA invests in competitive research & analysis, serves as a regional resource and convener, and collaborates closely with other entities to ensure a globally competitive, sustainable regional economy.

To learn more about the CRDA, visit: www.charlestoneconomicdevelopment.com

Dr. David W. Hughes, Professor and Program Leader Department of Applied Economics and Statistics Clemson Institute for Economic and Community Development

Dr. David L. Barkley, Emeritus Professor Department of Applied Economics and Statistics, Clemson University

Devin Swindall, Research Associate Clemson Institute for Economic and Community Development

Center for Business Research, Charleston Metro Chamber of Commerce

The Center for Business Research, a department of the Charleston Metro Chamber of Commerce, serves as the center for the compilation, interpretation and distribution of business and economic data for the three-county Charleston-North CharlestonSummerville metropolitan statistical area (MSA).

Mary Graham, Senior Vice President, Business Advocacy Charleston Metro Chamber of Commerce Jacquelyn Renegar, Economic, Demographic & Market Research Charleston Metro Chamber of Commerce

Designed & Published by

SC Biz News, publisher of the Charleston Regional Business Journal

View online at: www.crda.org/economicscorecard We encourage you to spend time with this Scorecard, get to know the strengths and challenges identified for our region, and share with your colleagues and contacts. If you would like a Scorecard Task Force member to address your organization, please email alliance@crda.org.