Charleston County - Special Advertising section SC Biz

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Summer 2012

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Boeing’s new Dreamliner just the latest of many products made by South Carolina’s workers

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CHARLESTON

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Making Business History South Carolina’s Oldest County Charts a New Course

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ince 1670, Charleston, S.C., has earned its reputation as a survivor. It has recovered from crop failures, hurricanes, earthquakes, the Civil War and Reconstruction, the Great Depression and the Naval Base closure of the mid-1990s. As early as the 1700s, the port at Charleston launched the city into the vanguard of “world trade” alongside other commercial centers such as Boston, Philadelphia and New York. In the aftermath of the Civil War, however, the economy in Charleston entered a long stagnation that would not begin to lift until after World War II and the early industrialization of the 1960s. Crisis would revisit the city again in 1993 when BRAC claimed its Navy complex and some 22,000 area jobs.

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Solar Takes Flight in South Carolina The forecast for solar power in South Carolina is sunny. SCE&G and Boeing have partnered to build the largest rooftop solar installation in the Southeast and one of the largest in the U.S. SCE&G is proud to partner with Charleston County to build the needed infrastructure for business in the Lowcountry. We’re committed to helping businesses succeed by delivering innovative energy solutions.

View from the solar roof of Boeing’s new final assembly building, North Charleston, SC.

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Following the base closure, Charleston County and neighboring Berkeley and Dorchester counties were determined to double down on economic diversification. In 1995, they joined together to partner in economic recruitment activities, creating a “better mouse trap” by forming the non-profit Charleston Regional Development Alliance (marketing/ recruitment). The three counties also launched extensive county business retention and expansion efforts designed to serve their more than 300 existing employers. Building upon local assets like the Medical University of South Carolina, the Space and Air Warfare Systems command (SPAWAR), Boeing, the Clemson University wind energy research initiative, and the burgeoning downtown Charleston technology scene, Charleston County and its tri-county partners target aerospace, advanced security (e.g. defense-related IT and electrical engineering), bio-medical, wind energy, automotive, and creative industries. These initiatives have yielded strong results. Since 1995, more than 23,000 new jobs have been created by relocating or expanding

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County Spotlight: Charleston

‘The Phoenix rises’

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Above: PeopleMatter headquarters on King Street under construction. (Photo/Leslie Burden) Right: Inside the SPAWAR data center. (Photo/ Provided)

Charleston County-based businesses alone, and those businesses have invested in excess of $4 billion within the county. This effort has included blue-chip firms such as Cummins, GE Aviation, Verizon Wireless, Daimler Vans, SKF, Scientific Research Corporation,

SAIC, BAE Systems and The InterTech Group. Charleston County made aviation history in 2009 as The Boeing Company chose North Charleston as the site of its second 787 Final Assembly Facility, announcing a $750 million investment and 3,800 new jobs. North Charles-


Why Charleston County? Growing, educated workforce, and ability to attract more talent With 21% population growth during the past decade, Charleston’s workforce growth continues to outpace both the state and the nation. With an average of 32 new people moving into the region each day, our “brain gain” has also been impressive – in fact, 31.9% hold a bachelor’s degree. We have outpaced the state and nation for the percentage of engineering and information technology workers. Superior multi-modal transportation network serving domestic and international markets Within one hour transit of the open sea, our natural harbor hosts five terminals from which shippers can serve 140 countries around the globe. These terminals already accommodate post and super-Panamax vessels, but waterways are being further deepened to 50 feet to serve the new, expansive Veteran’s Terminal when the

Panama Canal expansion is complete in 2014. An extensive network of rail service and interstate highways enables shippers to quickly reach south Atlantic, Northeastern and Midwestern markets representing over 60 million consumers. Southwest, Delta, U.S. Air and other airlines offer non-stop air passenger service to 16 destinations, including New York, Washington, D.C., Chicago, Boston, Atlanta, Charlotte, and Houston. A nationally competitive business cost structure Charleston County offers below the national average land and building costs, unemployment insurance, workers compensation premiums and sales and use taxes. Continuing this trend, the state corporate income tax is among the lowest in the nation. Throughout the recent recession, Charleston County continues to hold property taxes down, practicing shrewd financial stewardship that helped retain its coveted Triple-A credit rating with all three major bond rating agencies.

The county’s award-winning planning, green-belt preservation, recycling, and emergency services enhance the bottom line for businesses. A documented pro-business track record Charleston County has long understood that economic development is a “team sport.” We partner with the South Carolina Department of Commerce, our municipalities, readySC, utilities like SCANA, Berkeley Electric Cooperative, AT&T, and our economic development allies. Speed to market is crucial to business profitability; our customized workforce training, expedited permitting and strategic use of financial incentives have earned us our “business-friendly” reputation. Companies in the trenches can count on the expertise of our local law firms, environmental and engineering firms, and general contractors. These assets help complete the due diligence process and deliver new facilities on or ahead of schedule. Many of our allies’ advertisements appear on the pages of this article.

County Spotlight: Charleston

Businesses expect a value-added partnership with their host community and Charleston County offers several distinct advantages.

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The Citadel congratulates Boeing on the roll out of their newest aircraft, the 787 Dreamliner.

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County Spotlight: Charleston

Kiawah Island’s Ocean Course will host the 2012 PGA Championship. (Photo/Leslie Burden)

ton joined the elite ranks of Everett, Wash., and Toulouse, France, as only the third city in the world where wide-body commercial aircraft are assembled.

A surprise around every corner

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The open sky is reflected in the marsh along the 2,200-foot wooden pier that is the centerpiece of the Shem Creek Park, which opened recently in Mount Pleasant. (Photo/Leslie Burden)

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The Charleston region is no longer a wellkept business secret. Its business ingredients, unique sense of place and compelling quality of life earn it a variety of national and international accolades praising everything from its

“livability” to its favorable climate for small business innovation. The diverse personality of Charleston County draws its elements not only from the mystique of 18th century downtown Charleston, but from the bustling suburban growth of Mount Pleasant, the urban renaissance of North Charleston, the beaches and golf resort communities and the rural beauty of places as unique as Edisto Island and McClellanville. Despite quaint first appearances, there is


Palmetto Commerce Park. (Rendering/Google Earth)

County Spotlight: Charleston

a modern-day surprise around every corner. Massive cargo ships complete their transcontinental passage down the Cooper River past graceful 18th century steeples. Among historic district storefronts and restaurants in “the Digital Corridor,” there are exciting new software firms like PeopleMatter setting up shop. Just a few blocks from the Shem Creek shrimp fleet in Mount Pleasant, Mediterranean Shipping Company coordinates its worldwide voyages and day- trader Automated Trading Desk generates some 6% of NASDAQ’s daily volume. In the bustling West Ashley suburbs, not far from the historic plantations along Ashley River Road, Charles River Laboratories produces an industry-leading pharmaceutical agent. On the once-idled Navy Base in North Charleston, a $100 million wind turbine test facility is coming out of the ground and mine resistant vehicles (MRAPs) produced by Force Protection Inc., are being shipped overseas to American troops. Just blocks away, awardwinning neighborhoods near East Montague Avenue are being repopulated by’”twentysomething” professionals, and a vast network of global businesses is managed from the worldwide headquarters of The InterTech

Group, the second-largest privately-held company in South Carolina. Adjacent to the Charleston International Airport two miles away, the first South Carolina-made Boeing 787 nears completion and delivery.

“Build it and they will come” The Charleston region offers 28 million square feet of industrial, flex and distribution space for lease in the business park settings within the Charleston, North Charleston, Mount Pleasant and West Ashley sub-markets. The most current vacancy rate was 12% (3.4

million square feet available) during 4Q 2011, according to Grubb & Ellis / WRS . An ample supply of undeveloped acreage is also readily available in light industrial settings like Palmetto Commerce Park, the Ingleside tract, Ladson Station Industrial Park and Carolina Park, to name a few. Palmetto Commerce Park offers a large-acreage Class A locale just nine miles north of the Charleston International Airport. Neighbors include Cummins, Daimler Vans, Shimano, GE Aviation and the Boeing Interiors Responsibility Center (IRC). The extension

Smart businesses come on over.

For more info call 843.884.8517 experiencemountpleasant.com

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Mount Pleasant is home to stunning natural beauty, low taxes, the best schools, low crime and an unbelievable array of recreational opportunities, shopping, dining and culture. What you might not know is how attuned and attentive to business Mount Pleasant is - with incentives, support and hands-on, real-time help built for start-ups and smart growth.

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County Spotlight: Charleston

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brain gainer metro

For highest growth in adults with college degree Wall Street Journal – 2011

#1 top city in the United States For atmospheric ambience, culture/ sites, friendliness, lodging, restaurants and shopping Conde Nast Traveler – 2011

A top 50 best place for business & careers Forbes – 2011

#1 coolest small city in America GQ – 2010

A top 20 best performing large city The Milken Institute – 2010

#4 small business vitality score in the nation Portfolio Magazine – 2010 www.scbizmag.com

A top 10 best city for technology jobs

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Forbes – 2009 www.charlestoncountydevelopment.com

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25 Calhoun St. (Photo/Provided)

the site of an 180,000-square-foot speculative building, the first such building in the Charleston regional market since the 2008 recession dampened the lending climate. Owned by Albert W. Weber and represented by commercial realtors Meyer, Kapp & Associates, the Ingleside tract represents the’”New Frontier” along Palmetto Commerce Parkway . The vast development potential of this 2,700-acre property (straddling I-26 for more than two miles) is captured in a dynamic mixed-use plan featuring office, commercial, industrial and residential areas. Some 600 acres of light-industrial property, many of them adjacent to the Norfolk Southern rail line,

are immediately available for sale or for BTS packages. The aforementioned Immedion data center and manufacturing projects represent the first transaction within this exciting new development. Beginning in 2001, Robert Caldwell & Associates developed the first phase of the Aviation Avenue Business Park, which would go on to encompass eight buildings of highly versatile flex space totaling 350,000 square feet and housing some 31 tenants like BAE Systems and ManTech. Perched near the front gate of SPAWAR, Remount Road Business Park began in 2009 with the construction of a 200,560-square-foot multi-tenant building by a consortium consisting of Clayco, Venture 1 Real Estate, First Commercial Partners and Landmark Enterprises. An additional building undertaken during 2011 added another 100,000 square feet, and a third in the works during 2012 will add yet another 75,000 square feet. The blue-chip tenant list keeps growing, already including industry-leading defense contractors like SAIC and Scientific Research Corp. Inc. Some 9.2 million square feet of corporate office space exists throughout Charleston

County Spotlight: Charleston

of Palmetto Commerce Parkway to Ashley Phosphate Road in 2010 opened up some 2,000 additional acres and spurred yet another wave of development. Construction cranes again dot the horizon as three data centers (Immedion, Roper-St. Francis Hospitals, and Charleston County Consolidated 9-1-1 Dispatch) and two manufacturing facilities (Streit USA Armoring: armored cars and InterTech-owned subsidiary TIGHITCO: aerospace composite products) are now going vertical. As the original park approaches build-out, some 400 acres remain available for sale or build-to-suit (BTS). Pattillo Construction (Stone Mountain, Ga.) first pioneered BTS construction in Palmetto Commerce Park and is responsible for five of the largest industrial buildings now housing park tenants. Pattillo offers BTS packages on its remaining two tracts totaling 159 acres. Commercial realtor CB Richard Ellis represents owners Jamestown Properties (Atlanta, Ga.) and Childress Klein (Charlotte, N.C.) in their BTS offerings at the 300-acre Cross Pointe development, located directly opposite Daimler Vans and the Boeing Interiors IRC. CB Richard Ellis announced in mid-April that Cross Pointe will soon become

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County Spotlight: Charleston

97,000-square-foot Faber Centre at an adjacent location in 2008. Ever bullish on our market, Holder completed the 25 Calhoun St. office building in downtown Charleston in 2011, recently announcing that this 63,000-square-foot facility is leased. Holder started construction in April 2011 on Faber Pointe, a new 80,000-squarefoot office building in North Charleston, and will commence yet another project this summer in downtown Charleston at 174 Meeting St. (50,000 square feet).

Historically forward thinking

A crowd watches the Lee Brothers cooking demo at the 2012 Charleston Wine + Food Festival, one of the many festivals held annually in Charleston. This year’s festval brought 21,250 guests and added $8.6 million to the local economy. (Photo/Leslie Burden)

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County, from the downtown Charleston central business district to suburban campuses in North Charleston, Mount Pleasant and West Ashley, with vacancy currently at 14% (1.3 million square feet available). Amidst the recent recession and recovery, development of

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new office space had become almost unheard of. Almost. Holder Properties (Atlanta) entered the Charleston market in 2005 with its 105,000-square-foot Ashley Overlook in North Charleston. They followed up with the

Since its inception in 1994, the Charleston County Economic Development Department has pursued a mission with three distinct elements: business recruitment, retention and expansion, and business climate improvement. A lifelong resident, Economic Development Director J. Steven Dykes, SCCED, has spearheaded this focused mission with a five-member staff under the direction of several County Administrators and County Council Chairmen spanning the past 18 years. The economic development mission is a direct reflection of the business experience and community


County Spotlight: Charleston

commitment which has always characterized Charleston County Council. Council Chairman Teddie Pryor is a former small business owner and lifelong resident of North Charleston, and County Administrator Kurt Taylor is an accomplished attorney and manager whose civic calling led to his prior service as a city councilman. As it nears the 20-year mark, the Charleston County Economic Development Department is not resting on its laurels. It is closing out a three-year expansion program that has featured an increase in its staff, relocation to larger offices, an overhaul of its office technology and creation of its first independent website. The year 2012 will provide “no rest for the weary” as the department expands its Business Assistance Program offerings to existing companies and helps host the 2012 PGA Championship at Kiawah Island.

The Oak Terrace neighborhood within the Park Circle area of North Charleston is one of the vibrant parts of the city undergoing a renaissance by attracting new development, young professionals and a spirit of entrepreneurship and community. (Photo/Provided)

The Buzz Charleston County is a mid-sized community with big-city amenities. Our physical surroundings, mild climate and Southern charm have always drawn in the visitor, but it’s our neighborhoods, schools and universities,

restaurants and cultural offerings, beaches and recreational pursuits that keep the residents here and loving life. This buzz draws college students, young job-seekers, new families, the military, and retirees alike.

It is drawing business people in record numbers, because they understand that beyond the “business basics,” Charleston is a place where they can have happy families, happy employees, and a happy Board of Directors!

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MADE IN S.C.

Boeing Co. finishes and flies its first jet built

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he Boeing Co. flew its first Lowcountry-built 787 Dreamliner in May, marking the start of a generational airplane-building legacy officials hope will ripple through South Carolina’s economy and reinforce its workforce’s ability to manufacture high-tech international products. The 787 traveled nearly 2,000 miles, and the flight was unusual because of how smoothly it went, said Randy Neville, the 787 chief model pilot. The Boeing test pilots took off from Charleston International Airport about noon on May 23 for a five-hour flight. Neville and his co-pilot, Tim Berg, per-

formed ground checks and did two taxis down the runway — including a low-speed abort — before taking off and flying over the Atlantic Ocean, where most of the flight occurred. Then they flew five approaches to Charleston International Airport. Mike Sinnett, chief project engineer for the 787 program, said the Dreamliner’s flight proves the plane is everything the aerospace giant promised. “I’ve been impressed with the quality of the airplane, the quality of the build, the quality of the engineering here,” Sinnett said, referring to workers at Boeing South Carolina. The first flight came on schedule after

Boeing rolled the jet from its final assembly facility on April 27. During the rollout, Jack Jones, vice president and general manager of South Carolina, said pilots would fly the plane within three to four weeks. The April event featured Boeing executives and politicians, all of whom spoke about the historic day. Music pumped from stacks of speakers on each side of the stage. Marco Cavazzoni, vice president and general manager of final assembly and delivery, kicked off the event, running through the crowd and asking Boeing employees to share their feelings about the day. “Today is our day,” Cavazzoni said, “because this is your story.”


MADE IN S.C.

outside Puget Sound since World War II build jets!” chant that the audience repeated. Boeing Commercial Airplanes CEO Jim Albaugh said the day also was a historic day for the company. “You sold us on South Carolina, and we’re really happy you did,” he said. “It’s an airplane that others will be measured against for decades to come.” The speakers and excitement culminated while a video played on a big screen. Behind the screen, the giant doors to the final assembly center crawled open, revealing a black curtain. As numbers flashed on the screen, the crowd counted down from 10. The curtains dropped, blue fireworks

screeched into the sky and the first 787 began rolling from the final assembly facility. The crowd cheered, directing the jet with blue ornamental air traffic control wands Boeing had prepared for the event. The 787 pushed forward, slowly turned to its left and continued until stopping behind the stage.

‘A strong message’ If you search Boeing South Carolina on Google, you may find an ad for the S.C. Department of Commerce listed in the paid section at the top of the search page. Boeing South Carolina gives the state a reputation for producing world-class

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U.S. Sen. Lindsey Graham followed Cavazzoni and lightened up the crowd. “Marco’s been in the caffeine, hasn’t he?” Graham asked, pausing for laughter. Lt. Gov. Glenn McConnell, S.C. Sen. Hugh Leatherman, Gov. Nikki Haley and S.C. House Speaker Bobby Harrell also spoke, congratulating the employees and acknowledging the importance of the rollout to the state and its workforce. “The fact is, our dream to be competitive and equal to or exceed the others in the aerospace industry around the world becomes true as this Dreamliner rolls out,” McConnell said. Jones then took the stage, starting a “We

By Matt Tomsic

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MADE IN S.C.

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ing, but as we go out to recruit other businesses and other industries to come to the area, it says that we do have a very qualified workforce,” Summey said. Haley said the body of work is a testament that South Carolina is worth bidding on. “South Carolina continues to prove that when we build things, we build them well,” she said. “Now you will see we are the state that everyone is looking to.”

Watching Boeing, reminded of BMW An economic beast all its own, the Boeing Co. has a template for its ability to affect South Carolina’s aviation industry much like another international brand did for the automotive industry with its entrance two decades ago. “It reminds me very much of my time at BMW,” said Bobby Hitt, secretary of the S.C. Department of Commerce. “I think the

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parallels are enormous, and I think they are exactly on point.” Hitt was the manager of corporate affairs for BMW Manufacturing Co. in Spartanburg before he became Commerce secretary. Haley also mentions BMW when talking about the potential for an expansion of the aviation industry in South Carolina. Haley said the automotive company’s success in the Upstate is one reason other auto companies look at the Palmetto State. In a 2010 report, economic development consultants Miley & Associates tracked BMWs impact on South Carolina since 1992 and then used those growth statistics to estimate Boeing’s impact on the Palmetto State by 2027 if the aerospace giant follows BMW’s trajectory. At first, Hitt said, BMW had 600 to 700 employees and made 30,000 cars each year. Across the state, about 20,000 people worked in the auto industry at the time.

products, said Heather Simmons Jones, outgoing president of the South Carolina Economic Developers’ Association. “Having Boeing kind of gives us the good manufacturers’ seal of approval,” Jones said. “It reinforces the same statements that were made when BMW chose us in the ’90s and Michelin chose South Carolina in the ’70s. You start adding all those up, it’s a strong message.” North Charleston Mayor Keith Summey said Boeing’s facilities here raise South Carolina’s profile in the business world. “It makes them look and say this is an area we need to consider,” Summey said. “The South quite honestly (was) never considered a great place for manufacturing, but now it is.” Summey and Haley said the period from Boeing’s breaking ground to rolling out its first Dreamliner proves that South Carolina builds things well, another marketable trait. Workers finished the final assembly facility early and without any accidents causing construction workers to lose job time. Then Boeing employees finished the first Dreamliner within the time frame allotted to them. “This workforce has really pulled this off,” Boeing’s Jones said. “Everybody made this happen.” Employees are assembling three additional Dreamliners now, and the company is shooting to be producing its quota — 3.5 airplanes each month — by the end of 2013 or early 2014, Jones said. Boeing has more than 800 orders for the Dreamliner. “I think that not only says a lot to Boe-

Top s peed for

BMW X6

Speed in MPH

Source: Miley & Associates Inc., Boeing Co., BMW

87 d for 7 g spee Cruisin

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The first 787 Dreamliner rolled from the Boeing Co. final assembly facility in late The Boeing Co.’s roughly 6,000 employees turned out for the rollout. A high April with decals that would be removed for the first flight. (Photos/Leslie Burden) school marching band escorted them to the final assembly facility.


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MADE IN S.C.

The first Lowcountrybuilt 787 performs touch-and-goes during its first flight on May 23. The Dreamliner flew for roughly five hours and nearly 2,000 miles. (Photo/Matt Tomsic)

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Now, more than 90,000 are employed in the auto industry across the state, 7,000 work for BMW, and the company built nearly 30,000 cars just in March. More and more suppliers have opened in South Carolina since BMW located here, Hitt said. He thinks the state will see similar growth in aviation, and some of the pressure faced early by BMW will be similar for Boeing. “I remember when we launched the first South Carolina BMW, which was the Z3 Roadster in 1996,” Hitt said, adding the chairman of BMW came for the event and had specific directions: “Now you must do

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it every day, you must do it better and you must do it faster.” And, the chairman said, the world was watching. Hitt said, “I don’t know whether it’s quite that dramatic for Boeing, but it’s close.” At Boeing’s North Charleston facilities, the company’s employees face the same pressure to increase the rate. “This is going to be very euphoric, very exciting,” Jones said before the rollout. “And then 15 minutes after it’s over, everybody’s got to get focused on making sure that we start to crank the rate up.” Between North Charleston and Everett,

Wash., Boeing hopes to produce a minimum of 10 planes a month. The company expects to deliver four planes from North Charleston by the end of 2012; the second 787 delivery is expected about three months after June’s delivery. Meanwhile, the industry is watching. “The big question is how many, how fast will they be able to produce them, and what will be the cost to their operation,” said Adam Pilarski, senior vice president for Avitas, an aviation consulting firm. “We have to wait for all that.” At stake is more than Boeing’s production goals, profits and decision to open an assembly line in South Carolina and build a jet outside of Puget Sound for the first time since World War II. If it meets those goals, the aerospace giant may create a new aircraft-building legacy here that employs generations of South Carolinians, further raises the state’s profile in the global economy and reinforces a theme Haley often speaks of: “Success breeds success, and South Carolina continues to prove when it comes to manufacturing we are and we can be successful.”


The dawning of a new age of research and education in aerospace is at the University of South Carolina The College of Engineering and Computing’s aerospace research initiatives include: Composites • Composites Health Monitoring Composites Lightning Strike Test Lab • Condition-Based Maintenance Conformal Antennas • Friction Stir Welding Power and Electronic Systems • Safety-Critical Aerospace Systems Sensors • Systems Design • and more! Master’s degrees in aerospace and in engineering management Learn more about us online at http://cec.sc.edu


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