By Luke Gutleber
From the July / August 2024 Issue
A recent period of economic growth has occurred in the state of South Carolina, aided by several facets of economic development. This includes a record-high total capital investment, resulting in record-high industry recruitment levels, as well as various technological advancements contributing to the state’s overall development. South Carolina has also remained dominant in export sales, and attracted projects that make it one of the best states to do business in right now.
Business Is Booming
Early this year, the South Carolina Department of Commerce (S.C. Commerce) released its 2023 industry recruitment results, which reflect sustained economic activity. From January to December 2023, the state announced total capital investment of $9.22 billion, the second largest amount in state history. That investment represents 81 projects and 14,120 announced jobs.
“Once again, South Carolina has proven that it is among the best places in the world to do business,” said Governor Henry McMaster. “Over the past year, our state proactively prioritized trends and topics that are crucial to maintaining a vibrant and competitive economy. Recording the second-highest year for industry recruitment in state history not only confirms the sustained interest for doing business here, but also signals to the global business community that South Carolina is a trusted partner for successful businesses.”
The announced capital investment of $9.22 billion includes major investments in the state’s two leading industry sectors by total investment, Automotive, Electric Vehicles (EV), and EV Batteries with $4.3 billion, and Alternative Energy and Fuels with $1.56 billion. Notably, in 2023, there were three announcements with investments of $1 billion or more—the highest such year in state history. These investments involved Scout Motors, Albemarle Corporation, and QTS Data Centers.
South Carolina has also impressed with its performance in export sales. Gov. McMaster, S.C. Commerce, and South Carolina Ports (SC Ports) announced that the state’s 2023 export sales totaled $37.3 billion, defying the national trend where U.S. exports were down 2.2%, according to the U.S. Department of Commerce. Since 2013, South Carolina exports have grown at an average rate of 4.4% year-to-year. Over the same period, U.S. exports grew at an average rate of 3% year-to-year.
Innovation That Excites
South Carolina has also excelled in the area of technological innovation and advancements—particularly in the realm of grid resilience. The SC Nexus for Advanced Resilient Energy (SC NEXUS) received $45 million in implementation grant funding through the U.S. Department of Commerce’s Economic Development Administration (EDA) Tech Hubs program, which is designed to scale up the production of critical technologies, create jobs in innovative industries, and strengthen U.S. economic competitiveness and national security.
The EDA designated 31 entities across the country as federal tech hubs, including SC NEXUS. The designation allowed the tech hubs to apply for approximately $500 million in grant funding. SC NEXUS is one of 12 of the 31 tech hubs receiving funding.
Of the six SC NEXUS projects submitted for funding consideration, the EDA awarded federal funding to four projects, including the Grid Enabled Cyber Operations Range, Economic Development Through Grid Emulation, Carolina Institute for Battery Innovation, and The Education and Workforce Center.
Additionally, Santee Cooper has obtained final approval for 18 projects in Moncks Corner, totaling $10.8 million in funding.
Together, the projects represent grid improvements that will reduce the number of outages and improve restoration times during extreme weather events, primarily in disadvantaged areas of the state.
“The projects that were submitted range from burying overhead power lines to adding self-healing equipment that improves restoration ability,” said Jimmy Staton, Santee Cooper President and CEO.
“Collectively they will make South Carolina’s electric grid stronger in the face of hurricanes and other extreme weather. It has been our privilege to work with the DOE and so many utilities across the state who are driven to provide the best service possible to their members and customers,” he continued.
Further Advancements
Schneider Electric will invest $23.8 million into its South Carolina manufacturing operations. The company expects to create 280 new production jobs, including 130 jobs in its Seneca facility and 150 jobs in its Columbia facility adding to the more than 1,200 workers it currently employs in the state.
Schneider Electric’s expanded workforce will manufacture custom power distribution products that are integral to electrification and energy efficiency, bolstering support for critical infrastructure, industries—particularly healthcare and wastewater treatment—and the escalating demand for data center solutions across the U.S.
“We anticipate significant acceleration across all sectors, even hard-to-abate industries, to reach decarbonization targets and maintain economic competitiveness,” said Schneider Electric President of North America Operations Aamir Paul, speaking at the SelectUSA Investment Summit in June. “As we move more towards this electrified and digitized world, we’re spearheading this transformation through our own investments in a robust domestic supply chain, including in the state of South Carolina to bolster our manufacturing efforts for customers.”
Furthermore, ElringKlinger Group, a Germany-based automotive supplier, has selected Pickens County to establish its first South Carolina operation. The $40.3 million investment will create 115 new jobs.
ElringKlinger is focused on two growth markets: the electrification of mobility and the advancement of the hydrogen economy. The company operates 44 manufacturing sites globally. At its new 226,000-square-foot facility in Easley, ElringKlinger will manufacture electric battery cell contacting systems.
“The new site in Pickens County is the next step for ElringKlinger in the implementation of its SHAPE30 transformation strategy,” said ElringKlinger Group CEO Thomas Jessulat. “The American market generally offers great potential for battery technology applications. When it comes to unlocking this potential, the U.S. state of South Carolina is an optimal starting point for establishing the Group’s Battery Center Americas.”
Amazon has also chosen to invest in South Carolina and has entered into an agreement to construct a Same-Day Delivery facility in North Myrtle Beach. Same-Day Delivery facilities allow Amazon to fulfill, sort, and deliver orders all from one site. At approximately 165,000 square feet, the facility is located within the Palmetto Coast Industrial Park.
“South Carolina is a great place to live and work, and we’re excited to be growing our operations footprint in Myrtle Beach,” said Amazon Manager of Economic Development Sam Blatt.
Listen Now: South Carolina Embraces The Future: A Talk With Commerce Secretary Harry M. Lightsey III
From launch to legacy, companies find opportunity for growth and profitability in South Carolina. Hear success stories, and what the future holds for the next generation of business.
“Same-Day Delivery facilities are finely curated to the areas and customers they serve, so product selection varies by city. It’s also one of our fastest ways to serve our customers, which improves the overall shopping experience,” he continued. “We appreciate the support of our great partners, including the Myrtle Beach Regional Economic Development Corporation, Horry County, and the City of North Myrtle Beach, and we look forward to sharing more details about this facility in the future.”
