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.