2014 Regional Economic Scorecard

Tracking economic progress in Berkeley, Charleston and Dorchester counties

Regional

Economic 2014 scorecard Produced for the community by: Charleston Regional Development Alliance Charleston Metro Chamber of Commerce

View online: crda.org/economicscorecard or charlestonchamber.net/economicscorecard

2

Introduction

Building regional prosperity

Key Takeaways

The 2014 Regional Economic Scorecard provides our region’s business, governmental,

The Charleston region’s economy is performing well and undergoing significant

community and academic leaders with unbiased data to collectively address our metro area’s

transformation. The region has the ingredients and the potential to become an

top development opportunities and challenges.

economic powerhouse similar to Raleigh and Austin, if we adequately tackle the

As you’ll see in this year’s report, the region’s economy continues to outperform other areas of the state and the nation overall, showing a sizable increase in GRP growth, which accelerated at a faster pace than the two aspirational comparative metros of Raleigh and Austin. In addition,

challenges facing the region – infrastructure, human capital and sustainable growth.

critical issues for economic success:

the Charleston region’s average annual pay growth leads all regions in the comparative study.

This key indicator of a knowledge-based economy shows that we are clearly moving in the right direction as a transformative global metro area.

Export activity is also on the rise, with Greenville and Charleston leading other peer metro

1

Transportation

2

Education

3

Innovation

4

TALENT

areas. Our region’s increased employment rate and percentage of college graduates reflects

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

our growing knowledge strength. Quality of place factors continue to positively influence individuals and companies to relocate to the region.

As a region we need to continue to enhance innovation offerings, funding, and talent development strategies. By expanding technical and technology positions and the talent needed to fill them, dramatic benefits will be recognized for businesses of all sizes, across numerous industries. Providing our region’s students additional access to knowledge and experience

Invest in education at all levels to transform outcomes and grow an aligned workforce pipeline

needed by our area’s employers will ensure a robust talent pipeline now and into the future.

Only by accomplishing much needed infrastructure improvements - including the development of new modes of transportation – coupled with increased housing affordability, will the region be able to sustain its growth and economic resiliency. Regional leaders should continue to focus on long-term solutions to these issues in order to maintain positive economic momentum and offer a globally competitive economy.

David T. Ginn

President & CEO Charleston Regional Development Alliance

Bryan Derreberry

President & CEO Charleston Metro Chamber of Commerce

Mark Lattanzio

Bobby Pearce Jr.

SunTrust Bank Smith Moore Leatherwood Co-Chair, Co-Chair, 2014 Regional Economic 2014 Regional Economic Scorecard Task Force Scorecard Task Force

Develop and build the systems necessary to promote and support innovation

Develop a strategy to graduate, attract and retain the talent needed to sustain economic growth

3

Report Overview How to read the data

Model for Economic Prosperity

This report utilizes federal government data provided by the Charleston Regional Competitiveness Center, and is compiled and analyzed by the Charleston Metro Chamber’s Center for Business Research.

Economic Development Outcome • • •

The report follows the Model for Economic Prosperity Pyramid, which illustrates the building blocks of economic success. The 2014 Regional Economic Scorecard will assess the economic development outcomes and the competitiveness inputs at the top and bottom of the pyramid model.

Economic Output Employment Earnings & Income

WhatCharleston 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.

Environment for Development • • •

Industrial Composition Physical Infrastructure Social, Cultural & Institutional Environment

Indicator U.S. Value

Competitiveness Inputs Because of the time lag in data availability, this 2014 report highlights data captured from 2005 to 2013.

• • • •

Human Capital Innovative Activity Entrepreneurial Environment Quality of Place

X 100 = INDEX VALUE

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

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 (GRP) 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 2012, Charleston’s GRP grew 35.4%, significantly outperforming all peer metros, the state and the U.S. While Charleston is gaining ground, Austin and Raleigh continue to set the standard for GRP growth among all comparative metros.

Export Activity Measures the dollar value 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. Between 2010 and 2012, the dollar value of Charleston region’s exports grew by 32.7% to $3.9 billion annually. Charleston’s exports share of GRP also increased to 14.5%, above the U.S. average, and ranking 26 out of the Top 100 metros.

Regional Employment Measures the number of people actively employed in an area. Employment growth generally correlates to job growth. From 2005 to 2013, which includes the Great Recession, employment in the Charleston region grew 13.1%. This growth rate is double and triple that of peer metros, the state (4.9%), and the U.S., which only grew 1.6%. Austin and Raleigh, however, experienced stronger employment growth of 24.7% and 18.1% respectively.

Average Annual Pay* From 2005 to 2012, the Charleston region’s average annual pay grew 21.8% to $41,273, a slightly higher growth rate than the U.S. (21.2%), Austin, Raleigh and all peer metros.

However, the region’s average salary is below the U.S. average of $49,289. 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. *This measurement replaces Earnings Per Worker, which the Bureau of Economic Analysis discontinued in 2012. This BLS figure has a similar calculation methodology and is an appropriate substitute.

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. Between 2005 to 2012, Charleston’s PCI grew 21.8%, but at $39,444, it’s still below the national average ($43,735), four of the six peer metros and the two leading metros.

Gross Regional Product Growth, 2005 - 2012 24% U.S. Average

49.1%

Austin

42.9%

Raleigh

35.4%

Charleston Greenville

25.2%

Savannah

24.4%

Richmond

24.3% 22.7%

Knoxville

19.2%

Lexington

17.0%

Jacksonville

0%

10%

20%

30%

40%

50%

Source: Bureau of Economic Analysis

Export Activity, 2012 13.5% U.S. Average

20.2%

Greenville

14.5%

Charleston Knoxville

12.7%

Austin

12.5%

$3.9 billion in annual exports

11.3%

Raleigh

9.0%

Richmond

7.4%

Jacksonville

N/A Savannah N/A Lexington

0%

5%

10%

15%

20%

25%

Source: Brookings Institution

5

A Closer Look Housing Cost + Density

Regional Employment Growth, 2005 - 2013 1.6% U.S. Average

24.7%

Austin

Our region’s population is projected to reach one million by 2027. Are we ready to house 287,800 new, single-family households? Allowing higher density, non-traditional developments in the urban core is one important solution to addressing regional housing needs.

18.1%

Raleigh

13.1%

Charleston

High home prices

7.7%

Jacksonville

The region’s median home prices do not correlate with housing and population density compared to its peer cities. Why?

6.2%

Richmond Savannah

5.6%

Greenville

5.5%

$231,300

$224,100

$214,925

$198,800

$166,500

$159,600

$152,600

$148,000

Greenville

Knoxville

Lexington

4.3%

Lexington

Knoxville 2.1%

0%

Austin

5%

10%

15%

20%

Average Annual Pay Growth, 2005 - 2012 21.2% U.S. Average

19.5%

Austin

19.0%

Greenville Raleigh

18.4%

Savannah

18.4% 16.1% 14.9%

Lexington Richmond

0%

5%

10%

15%

Housing density

Minimum lot size

Housing density or residential density refers to the number of homes per unit of land.

Minimum lot size land use restrictions significantly impact house prices by forcing the development of low-density neighborhoods where every lot and every home must have the same size, dimension, and very little diversity of price points.

Raleigh

Austin

Greenville

Knoxville

1,189.13 1,026.1

25%

Source: Bureau of Labor Statistics

Urban sprawl

893.3

Increased development of land in suburban and rural areas outside of the region’s

599.9

Jacksonville

490.3

Lexington

476.5

Charleston

20%

1,644.4 1,232,5

Savannah

16.6%

Jacksonville

Jacksonville

Source: National Association of REALTORS

Richmond

19.9%

Knoxville

Raleigh

= 300 housing units per square mile

21.8%

Charleston

Richmond

25%

Source: Bureau of Economic Analysis

19.3% S.C. Average

Charleston

urban centers characterized by low-density development and marked by detached singlefamily homes, strip malls and reliance on the automobile for transportation.

188.6 Source: U.S. Census Bureau

Source: 2014 Charleston Tri-County Region Housing Blueprint

Competitiveness inputs

HUMAN CAPITAL INDEX

The Indicators

2005-2012

Knowledge Workers, 2013

Why is this important?

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

The better educated our workforce, the more quickly our economy

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

can take advantage of new opportunities and recover from negative

residents with specialized skills and knowledge fuel the performance

shocks, such as the recent economic recession. Positive changes in the

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

Human Capital Index directly correlate with positive changes in the

industries.

Innovation Index.

1 0 2 CHARL

Charleston has maintained slight growth since 2005

ESTON

• Percentage of knowledge workers has grown at a faster rate than Raleigh and

98 99

most of our peers

96

Austin.............115.2 Raleigh............ 112.2 Richmond.......105.8 Charleston........99.0 Jacksonville....96.3

6 7 8 9

Lexington........95.6 Knoxville.......... 88.7 Greenville........88.0 Savannah........ 82.5

105

Note: Because the Census Bureau’s American Community Survey is an annual survey based on random population sampling, the margin of error in the data is greater. Therefore, fluctuations from year-to-year can be the result of sampling and not necessarily a data trend.

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

1 Raleigh...........104.2 4 Charleston...... 102.0 2 Jacksonville... 102.7 7 Lexington........101.7 3 Knoxville.........102.4 8 Richmond.........101.1 4 Savannah.......102.2 9 Greenville........96.9 4 Austin..............102.1 Source: U.S. Census Bureau

College Graduates, 2012 Percentage of adult population (25+) with a bachelor’s degree or higher.

1 2 3 4 5

Raleigh........... 144.4 Austin.............139.3 Lexington.......120.9 Richmond........112.0 Charleston.......107.6

6 7 8 9

Knoxville.........101.8 Savannah.......100.3 Greenville.........97.8 Jacksonville.....96.1 Source: U.S. Census Bureau

115

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Jacksonville knoxville

ville,

green

of adults with high school diplomas

1 2 3 4 5

High School Graduates, 2012

• Almost all metros decreased; however

• Charleston continues to lag in percentage

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

The Trend

Richm Lexin ond, gton

6

Employment Rate, 2012

TIN, AUS EIGH RAL

Percentage of an area’s workforce that is actively employed.

1 2 3 3 3

Austin............102.3 Richmond........101.6 Charleston ...... 101.2 Greenville........101.2 Raleigh.............101.1

6 7 7 9

Lexington.......100.8 Jacksonville...100.5 Knoxville.........100.5 Savannah........99.9

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 Talent Gap Analysis A comprehensive 2014 Talent Demand Study shows that many of the region’s technical and high-wage jobs are being filled by highly-educated workers moving in from out-of-state.

The study also identified key gaps in the region’s education system (high school through higher education) that need to be filled in order for local students to be prepared for careers in the highest demand occupations.

For more information visit: charlestonchamber.net/talent-demand-analysis-results

Charleston's Future Workforce In the next five years, our region will create more than 25,000 new jobs in these occupational clusters:

Employment Growth 2013 - 2018 Industrial Production 21.4%

13,300 Computer & Software 19.9%

8,100

College educational attainment by place of birth, 2012 Science & Engineering 16.4%

39%

7,200

31%

Sales & Marketing 13.6%

2,100

23%

Medical 13.4%

35,800 Employment Size 2013

Business 10.2%

Out-of-State

Charleston Metro

8,350

South Carolina

Source: American Community Survey, U.S. Census

Business Perspective “Education is the single most important investment a person, region, or state can make to ensure competitiveness in our complex global society. In today’s knowledge-based economy, universities should take steps to make certain they are partnering with businesses to meet their needs, and the business community should champion the value of a liberal arts and sciences education.

We — governments, businesses, and universities — must work together to invest in the educational infrastructure that will assure this region has the home-grown talent it needs to thrive socially, culturally, and economically.”

Glenn F. McConnell, J.D. President, College of Charleston

Building blocks for success

P P P

Expand existing STEM-related Career Academies in the region’s public school districts with a focus on Manufacturing and Engineering. Create IT Career Academies in each district Secure the needed state funding and build the Aeronautical Training Facility at Trident Technical College Implement a regional Career Awareness Campaign that includes an online One-Stop Shop to showcase high demand occupations, skills and education required, and how to find the training needed

Competitiveness inputs

INNOVATIVE ACTIVITY INDEX

The Indicators

2005-2012

Employment in Technical Positions, 2013 Percentage of employment in computer, science, and engineering occupations.

Why is this important?

The ability to generate new ideas, products and processes is

The more our region graduates, attracts and retains talent

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.

1 2 3 4 5

1 2 3 4 5

• Challenge areas include a lack of STEM higher education programs, number of students with advanced technical degrees, and patent awards

50

Lexington........110.9 Charleston........68.9 Raleigh.............37.5 Austin.............. 35.9 Richmond........ 33.9

6 7 8 9

Knoxville......... 25.2 Greenville..........19.1 Jacksonville...... 5.0 Savannah.......... 3.6 Source: NIH, NSF & NEA

Venture Capital investment, 2013 Financial capital provided to early stage startups, presented per local job.

1 2 3 4 5

Austin............220.1 Raleigh...........198.3 Charleston........ 78.7 Greenville........ 55.5 Lexington.......... 0.2

6 6 6 6

Richmond..........0.0 Jacksonville......0.0 Knoxville...........0.0 Savannah..........0.0 Source: Thomson Reuters

Patents Issued, 2011 Number of patents issued in an area, presented per 10,000 workers.

1 2 3 4 5

180

24

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jack sonv ille SAVANNAH

igh e l a R

Austin

100

United States Average

Change in Index Value: = 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

6 7 8 9

Richmond........ 45.8 Jacksonville....30.5 Charleston........26.7 Savannah.........18.9

Science-Related Graduate Students, 2012

200 = Increase

Austin........... 374.6 Raleigh...........287.9 Greenville........119.3 Lexington........ 93.3 Knoxville........... 71.3

Source: U.S. Patent & Trademark Office

190

0

ric hm on d

ille Greenv

CHARL

110

84 66

Note: After 2011, the Federal Government stopped reporting IT-Sector Share of Jobs (the percentage of employment in IT-related businesses), so that indicator has been removed from this index calculation.

Lexingt on

61ESTON

Lexington........89.8 Knoxville.......... 84.3 Jacksonville....82.9 Savannah........ 43.2

Funding from NIH, NSF & NEA presented per local job.

The Trend • Access to VC funding has improved

6 7 8 9

NIH/NSF/NEA Funding, 2013

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

• Since 2005, we’ve lost ground on this index, while Greenville and Lexington have improved on most indicators

Austin............179.8 Raleigh...........156.5 Richmond........101.9 Charleston........94.5 Greenville........90.7

Source: Bureau of Labor Statistics

businesses and attracts leading-edge businesses from outside

13

8

Graduate students in health science, science, and engineering per 10,000 residents.

1 2 3 4 5

Lexington......258.0 Raleigh.......... 222.2 Knoxville.........150.9 Austin.............140.6 Greenville.......136.2

6 7 8 8

Richmond........ 66.7 Charleston.........35.1 Jacksonville......0.0 Savannah..........0.0

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

9

A Closer Look

The Rise of Innovation Districts For years the landscape of innovation has been dominated by places like Silicon Valley or Research Triangle Park— suburban corridors of isolated corporate campuses, accessible only by car, with little emphasis on lifestyle or integrating work, housing and recreation.

That model now seems outmoded as creative companies, talent and entrepreneurs crave proximity, connectivity and collaboration – transforming how buildings and entire districts are designed and spatially arrayed, and fueling demand for more walkable neighborhoods where housing, jobs and amenities intermix.

This revitalized urban model of “innovation districts” are geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators, accelerators, schools and universities.

They are physically compact, walkable, bikeable, transitaccessible, technically-wired, and offer mixed-use housing, office, and retail. When combined with a supportive, risk-taking culture they create an innovation ecosystem—a synergistic relationship between people, firms and place that facilitates idea generation and accelerates commercialization.

The proposed Charleston Innovation District– a 10-acre site along Morrison Drive – is a local example, where the city of Charleston is considering using land for a tech hub and Flagship 3 that would enable tech companies to cluster and grow, similar to the Horizon District’s mixeduse development plan that aims to grow the healthcare/ biomedical sector. Horizon is a planned 22-acre development on the western side of the Charleston peninsula adjacent to the Ashley River and medical centers. It is projected to create more than 3500 new jobs over the next 10-15 years.

Sources: Brookings Institution, Charleston Regional Business Journal

Business Perspective “Historically, increased access to capital has been a challenge for South Carolina startups. Through SCRA’s Technology Ventures’ SC Launch Program, angel groups and accelerator programs, we are keeping up with the competition. Seed investments are leading to follow-on funding from private sources.

This add-on funding, coupled with innovation centers and districts, will draw high-profile, high-tech companies to the Charleston region and ultimately grow our knowledge economy.”

Bill Mahoney CEO, South Carolina Research Authority (SCRA)

Charleston Innovation District (Rendering/Charleston Digital Corridor)

Horizon District (Rendering/Perkins & Will)

To learn more, visit: brookings.edu/about/ programs/metro/innovation-districts

building blocks for Success

P P P

Expand the College of Charleston’s mission to allow for the development of targeted graduate degree programs within specific areas Encourage collaboration among the state’s colleges and universities to fill local higher education gaps Create a streamlined, centralized feedback system to provide industry input to multiple educational institutions and organizations

Competitiveness inputs

ENTREPRENEURIAL ENVIRONMENT INDEX

The Indicators Concentration of Small to Mid-Size Businesses, 2012

Why is this important?

Number of area businesses per 1,000 employees.

A supportive environment for entrepreneurs is key for new

The continued growth of small businesses, in particular the

business creation and growth. Just as a favorable climate

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, Energy Systems and related

business and entrepreneurial activity.

competencies.

1 2 3 4 5

Charleston.......107.2 Jacksonville...106.9 Raleigh...........104.6 Savannah...... 100.9 Austin.............100.6

6 7 8 9

Richmond........ 96.7 Greenville........ 95.7 Lexington........ 88.7 Knoxville......... 86.4 Source: U.S. Census Bureau

Total establishments, 2012 Total number of establishment per 1,000 employees.

The Trend • Charleston has improved its entrepreneurial environment but not as fast as others, causing a dip below the U.S. average • Progress is primarily due to 10 point increase in business services and growing concentration of small to mid-sized businesses • Increase in proprietors’ income illustrates that locally-owned businesses are making more money

1 2 3 3 5

98ESTON

CHARL

3 92 9

Jacksonville....101.0 Raleigh............96.2 Savannah........ 88.2 Richmond.........88.1 Charleston........82.2

6 7 8 9

Lexington.........81.9 Austin................81.1 Greenville........ 76.3 Knoxville......... 72.3 Source: U.S. Census Bureau

Proprietors’ Income Share, 2012 Percentage of an area’s income generated by self-employed business owners.

106

1 2 3 4 5

Austin..............121.0 Knoxville...........117.4 Lexington........ 99.7 Charleston........94.9 Raleigh.............77.3

6 7 8 9

Richmond........ 68.7 Greenville........ 64.8 Savannah........60.6 Jacksonville....56.0

Source: Bureau of Economic Analysis

113

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87

80

10

Business Services, 2012 Share of regional employment in the professional and technical services industries (NAICS 54).

in t s Au

1 2 3 4 5

Gree nvill e

Austin............ 148.7 Raleigh...........146.5 Charleston...... 109.4 Lexington........98.9 Richmond.........96.1

6 7 8 9

Knoxville......... 95.7 Jacksonville.... 82.4 Greenville........ 82.2 Savannah........ 52.0 Source: U.S. Census Bureau

Change in Index Value:

75

SAVANNAH Savannah

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

11

A Closer Look

Charleston’s Entrepreneurial Resources A growing number of supportive resources exist to help entrepreneurs launch, develop and grow their companies. These newly formed programs and services, coupled with existing assets will accelerate the region’s overall growth in high-impact, scalable businesses.

Charleston Entrepreneur Ecosystem is a one-stop interactive asset map for entrepreneurs, linking them with rich resources throughout the region in four areas of service: Financial, Human, Physical and Social.

Developed and maintained by the Charleston Metro Chamber. charlestonee.com The Catalyst Center is a new resource located at the Charleston Metro Chamber, where aspiring and existing entrepreneurs can connect, meet with others, attend programs and have access to multiple resources and services while building their business. charlestonchamber.net/catalyst-center/

The Southeast’s interactive festival held annually in Charleston. More than 200 presenters, 650 companies and 5000 attendees explore technology, entrepreneurship, media, marketing and culture. DIG SOUTH includes the DIG Conference, DIG Show, DIG Demo Day, HackCharleston, Wild Pitch, Shindigs and more. digsouth.com

ENTREPRENEUR CENTER

Helps innovative companies grow and develop new technologies, creating jobs and advancing the knowledge economy. This SCRA business sector provides support and mentoring through its flagship SC Launch program to early stage, start-up technology companies. scra.org/technology_ventures.html

Business Perspective “Charleston’s current surge of entrepreneurial activity is being fueled by our area’s ability to attract quality talent, investments, and national media attention.

As leaders, particularly in the knowledge-based sector, we must continue to foster a fertile environment through professional mentorship, access to capital, and local educational programs to keep Charleston growing and competitive on a global level.”

Eric Bowman CEO, SPARC

Exists to create collision among entrepreneurs. The Harbor Accelerator program launches businesses through a 14-week program with mentorship, curriculum, space, and hard work. harborec.com

building blocks For Success

P P P

Ensure the region’s and S.C.’s regulatory environment supports business growth Grow the number of incubators, co-work spaces and funding sources to support entrepreneurial growth Increase entrepreneurial programs in Information Technology and Biomedical at area colleges

Competitiveness inputs

QUALITY OF PLACE INDEX

The Indicators

2005-2012

Climate, 2013 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 workforce has become a critical economic development issue. With a strong demand for specialized knowledge

Quality of Place matters most to highly-skilled, highly-mobile young professionals. Affordable housing options and multimodal transit solutions are critical to the region’s sustained economic health and well-being.

and skills, highly educated workers have more flexibility in where

1 2 3 3 5

6 7 8 9

Savannah.........116.6 Charleston...... 106.3 Greenville.......105.9 Jacksonville...105.9 Knoxville.........100.3

Raleigh............99.0 Lexington......... 91.7 Richmond.........87.4 Austin...............87.0

Source: Weather Underground

they choose to live and work.

Culture and Recreation, 2012 Employment in the arts, entertainment and recreation (NAICS 71) provides a measure of an area’s cultural and recreational opportunities.

The Trend • 13 point improvement from 2005 to 2012, the largest growth of any of the metros

1 2 3 4 5

• Primarily due to increase in cultural and recreational opportunities, healthcare access, and the continued decrease in the still relatively high crime rate

LEXING TON

6 7 8 9

Savannah.........81.9 Lexington........69.8 Greenville........ 63.4 Knoxville.........49.6

Source: Bureau of Economic Analysis

CHARL11 1 EST 109 ON

103 104

Raleigh............127.2 Charleston........114.5 Richmond.......108.7 Jacksonville... 107.9 Austin...............87.4

Travel Congestion, 2012 Percentage of daily travel in congested conditions.

Higher number means less congestion.

1 Savannah .......139.3 6 Charleston........83.2 2 Knoxville .......129.9 6 Lexington........ 83.2 3 Richmond....... 125.2 8 Jacksonville....69.2 4 Greenville ......120.6 9 Austin..............59.8 5 Raleigh.............87.9 Source: Texas Transportation Institute

114

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SAVANNAH

90

94

99

RICHMOND jackso nville

• Challenge areas include travel congestion and housing affordability

Crime Rate, 2012 Violent crimes per 100,000 population.

Higher number means less crime.

igh e l Ra

78

12

1 2 3 4 5

GREENV ILLE

Richmond.........137.1 Raleigh...........136.2 Austin............. 124.3 Lexington.......123.0 Savannah........ 115.4

6 7 8 9

Knoxville...........91.1 Charleston........90.9 Jacksonville.....67.3 Greenville........ 52.5

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, 2013 Percentage of days with air quality measured as “good” or “moderate” by the EPA. Higher number means better quality.

1 1 1 1 5

Charleston....... 101.6 Greenville........101.6 Lexington.........101.6 Raleigh............101.6 Austin..............101.3

5 7 8 9

Richmond........101.3 Jacksonville.....101.1 Savannah........98.8 Knoxville.........98.6

Source: U.S. Environmental Protection Agency

Healthcare Access, 2013 Number of healthcare practitioner and technical occupations per 100,000 population provides a measure of access to healthcare professionals.

1 2 3 4 5

Lexington........ 142.6 Charleston.......122.8 Richmond........118.8 Knoxville.........106.4 Savannah.......104.8

6 7 8 9

Transportation Infrastructure Funding Transportation infrastructure is a significant challenge to the region’s future economic health. South Carolina is currently facing a $42 billion need for repairs and maintenance. Traffic has increased 43% since 2004, while the state’s motor user fuel fee has remained unchanged since 1987. At 16.75 cents per gallon, it is the third lowest in the country.

69%

of the state’s pavement is rated in poor condition

Jacksonville...103.9 Raleigh............85.8 Greenville........ 78.3 Austin.............. 78.0

833

fatalities occurred on state roads last year

South Carolina drivers pay an average of less than $10 per month in motor fuel user fees

Source: S.C. DOT Long-Range Transportation Plan

Source: Bureau of Labor Statistics

Business Perspective “The relationship between where people choose to live and work is complex, but what is clear is our region’s congested transportation arteries are the result of an imbalance between the location of affordable housing options and the location of our region’s employment centers.

Increasing the supply of diverse housing options in the region’s urban core, where transportation infrastructure already exists, and offering alternative transportation options are essential to creating a quality of place that attracts young professionals and meets the long-term needs of our community’s entire workforce.”

Michelle Mapp Executive Director, SC Community Loan Fund

Building blocks For Success

P P P

Raise the state’s Motor User Fuel Fee by 25 cents to generate dedicated highway and bridge funding Adopt a regional action strategy to address the region’s housing affordability issue Secure needed permitting and begin harbor deepening

14

Connecting the Dots Why fostering innovation & high tech job creation matters the HIGH TECH job multiplier

The overarching goal of Opportunity Next, the three-county Charleston region’s comprehensive and cluster-based economic development strategy, is to strengthen the local economy, improve average wages and create new jobs.

While the Charleston MSA’s economy has continued to improve and expand, indicators of Innovative Activity, as highlighted in this report, continue to lag due in part to the lack of skilled talent to fill critical shortages in Information Technology and Engineering fields.

According to the Bay Area Council – a San Francisco-based think tank and public policy organization, the high tech sector – defined as industries with very high shares of workers in STEM fields, is not only a strong creator of jobs with wage premiums of 17% to 27% higher relative to other sectors, but also an important source of secondary job creation and local economic impact.

1 job

in the high tech sector

leads to 4.3 additional jobs

For example, 100 jobs in software publishing can lead to the addition of 503 jobs in other sectors

The 2012 study estimates the job multiplier associated with one job in the high tech sector is associated with the creation of 4.3 additional jobs in the local goods and services economy over time.

As an example, a 2014 study by Career Builder and EMSI of technology-related jobs in the Atlanta metro area estimates that the creation of 100 Software Publishing jobs, with average earnings of $140,304 can lead to the addition of 503 jobs in other industries, with an average earnings of $61,488.

Our region’s ability to build an environment for innovation and fill critical shortages in talent – by building an aligned workforce pipeline to meet current and future needs, retaining existing talent, and attracting key talent from outside the region – is directly related to our ability to grow and sustain long-term economic growth and prosperity.

78 jobs 86 jobs 55 jobs 51 jobs 31 jobs 34 jobs 168 jobs in sales & related occupations

in office & administrative support

in business & financial operations

in management occupations

in healthcare practitioners, technical & health care support occupations

in building and grounds cleaning & maintenance operations

For more information, visit: bayareaeconomy.org/media/files/pdf/TechReport.pdf careerbuilder.com/share/aboutus/pressreleasesdetail.aspx (July 24, 2014)

other

15

KEY TAKEAWAYS Charleston’s regional economy is performing well and undergoing significant transformation.

We have the ingredients and the potential to become an economic powerhouse similar to Raleigh and Austin, if we adequately tackle the regional challenges of infrastructure, human capital and sustainable growth.

Critical Issues For Economic Success

1

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

S.C. Department of Transportation estimates an additional $42 billion is needed to bring the state’s system up to average standards, equating to an annual additional need of $1.5 billion statewide. The current 16.75 cent per gallon motor user fuel fee generates $461 million annually. The S.C. General Assembly must raise the state’s Motor User Fuel Fee by at least 25 cents and index the fee to provide a dedicated funding source for the state’s roads and bridges.

2

Education Invest in education at all levels to transform outcomes and grow an aligned workforce pipeline

The recently completed Talent Demand Study shows significant gaps in the region’s education landscape. The region must build the critical education infrastructure today to create a talent pipeline to meet current and future employer needs. From Career Academies to the Aeronautical Training Campus at Trident Tech, to expansion of four-year degrees in high demand fields and development of select advanced degrees, the region needs to ensure local students are being prepared.

3

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

Passage of the 2013 High Growth Small Business Access to Capital Act (Angel Investors) was a critical first step for providing incentives to attract high tech investment. Area employers cannot find enough talent with the skills needed because the region lacks higher education degree programs in computer technology and engineering. The region’s higher education community must aggressively develop a collaborative approach to expand and respond to the need for these skills now and in the future.

4

TALENT Develop a strategy to attract and retain the human capital needed to sustain economic growth

Since 2012, more than 10 studies have identified housing affordability as a barrier to attracting and retaining skilled talent, including the 2014 Tri-County Region Housing Blueprint. Numerous recommendations have been made with limited progress. The region’s public and private sectors must come together and develop an action strategy to implement housing affordability solutions.

2014 Scorecard Task Force

Research & Analysis

Co-Chairmen

Center for Business Research, Charleston Metro Chamber of Commerce

Mark Lattanzio ............... SunTrust Bank Bobby Pearce Jr. .............. Smith Moore Leatherwood Law Firm

Members

Rita Berry........................ Greater Summerville/

Dorchester County Chamber of Commerce Lauren Gellatly................ Lowcountry Local First Dr. Godfrey Gibbison...... Lowcountry Graduate Center Stanfield Gray.................. Dig South Interactive Festival Rebecca Guthrie.............. The Harbor Entrepreneur Center Meg Howle....................... Trident Technical College Andrea Kozloski.............. BCD Council of Governments Nina Magnesson.............. BoomTown Barbara Melvin................ SC Ports Authority Gray Somerville............... Telogical Systems Dr. Chris Starr................. College of Charleston Dr. Kendra Stewart.......... Joseph P. Riley, Jr. Center for Livable Communities Derek Willis..................... SCRA/SC Launch Heather Woolwine........... Medical University of South Carolina

The Center for Business Research serves as the center for the compilation, interpretation and distribution of business and economic data for the three-county Charleston-North Charleston-Summerville 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

Data Provided by: Charleston Regional Competitiveness Center

The Charleston Regional Competitiveness Center is sponsored by the Charleston Regional Development Alliance, Charleston Metro Chamber, Berkeley-CharlestonDorchester Council of Governments, and the Trident Workforce Investment Board

Produced for the Community by: Charleston Regional Development Alliance Charleston Metro Chamber of Commerce

For additional Charleston regional data and trends, visit: charlestonregionaldata.com

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

View online at: crda.org/economicscorecard or charlestonchamber.net/economicscorecard

To learn more about the CMCC, visit: charlestonchamber.net

View online: crda.org/economicscorecard or charlestonchamber.net/economicscorecard