2012 crda economic scorecard

1report overview

view Online: www.crda.Org/ecOnOmicscOrecard

Tracking ecOnOmic prOgress in Berkeley, charlesTOn and dOrchesTer cOunTies

2012

ecOnOmic

Regional

scoRecaRd

Produced for the community by:Charleston Regional Development Alliance

Research and analysis by:

University Center for Economic Development, Clemson UniversityCenter for Business Research, Charleston Metro Chamber of Commerce

introduction2

The 2012 Regional Economic Scorecard is the third annual assessment of our three-county region’s economic progress compared to six similar metro areas and two leading economies. It provides our region’s business, governmental, community and academic leaders with unbiased data to help focus a collective effort to address our weaknesses and maintain positive momentum.

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

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 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. GinnPresident & CEOCharleston Regional Development Alliance

Overall, the Charleston region is performing well economically, while also undergoing a structural transformation into a more diversified, knowledge-based economy. Our three-county region has the ingredients and the potential to become a world-class metro like Raleigh or Austin, if we focus on the critical building blocks of long-term economic success.

cRitical issues foR economic success:

Matt SloanPresident, The Daniel Island Company

Chairman, 2012 Regional Economic Scorecard Task Force

Key taKeawaysBuilding Regional pRospeRity

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

2educationinvest in education to transform outcomes and grow a workforce pipeline

3innovationdevelop and build the systems necessary to promote and support innovation

4talentgraduate, attract and retain highly skilled professionals

3

chaRleston

how to Read the dataThis 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.

greenville, sc manufacturing base,

tech transfer and higher education

JacksOnville, Fl port, business

diversity, military presence and talent

attraction

knOxville, Tn federal research

lab, entrepreneurial environment and higher education

ausTin, Tx healthy balance of

technology, business services, education & government, and is a

talent magnet

raleigh, nc renowned for strong

job growth, R&D, higher education, and as best place

to live

lexingTOn, ky entrepreneurial

environment, R&D and strength in

medical technology

richmOnd, va growing base of R&D, higher

education, logistics and biotech cluster

savannah, ga port, military,

creative economy and tourism industry

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.

compaRative

indicaTOru.s. value

x 100 index value=

RepoRt oveRview

ouR compaRative locations

leading

enviRonment foR development• Industrial Composition• Physical Infrastructure• Social, Cultural &

Institutional Environment

competitiveness inputs• Human Capital• Innovative Activity• Entrepreneurial Environment• Quality of Place

economic development outcome• Economic Output• Employment• Earnings & Income

model foR economic pRospeRity

what is an index?This Scorecard examines numerous

indicators of regional economic competi-tiveness. 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.

4

5%

5%

10%

10%

15%

15%

20%

20%

25%

25%

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).

Regional employmentMeasures 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.

eaRnings peR woRKeRDivides 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.

economic development outcomes

earnings per worker growth, 2005 - 2010

Austin

raleigh

charleston

Lexington

Greenville

Knoxville

Jacksonville

richmond

Savannah

Savannah

charleston

raleigh

Knoxville

richmond

Greenville

Jacksonville

Lexington

Austin

Source: Bureau of Economic Analysis


23.7%

24.3%

19.9%

20.3%

8.1%

18.9%

5.5%

17.1%

3.6%

16.9%

3.0%

16.8%

1.7%

1.5%

0.0%

0.0%

0%

0%

gross Regional product growth, 2005 - 20104.3%

u.s. average

13.1% u.s. average

15.5%

11.3%

11.1%

5

$1,500 $3,000 $4,500 $9,000$6,000 $12,000$7,500 $13,500$10,500

a closeR looK

average wage growth 2000-2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009$26,000

$28,000

$30,000

$32,000

$34,000

$36,000

$42,000

$38,000

$40,000

$44,000

$46,000

sOuTh carOlina

uniTed sTaTes

charlesTOn msa

2000: charleston wages 78% of u.s. average

2003: charleston surpasses s.c.

average

2010: charleston wages 85% of u.s. average

2010

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

Source: Brookings Institution

Source: Bureau of Labor Statistics

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

The Sprinter Van is manufactured by Daimler Vans Manufacturing in Ladson. (Photo/Provided)

export activity per Job, 2010Greenville $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

$0

6 competitiveneSS inputS

human capital indexKnowledge woRKeRs, 2011

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.

high school gRaduates, 2010percentage of adult population (25+) with a high school diploma.

college gRaduates, 2010percentage of adult population (25+) with a bachelor’s degree or higher.

employment Rate, 2010percentage of an area’s workforce that is actively employed.

= increase

u.S. Average = 100

= decrease = no change

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

the indicators

The ability to produce, attract and retain talent is critical to the region’s long-term success and global competitiveness. Educated residents with specialized skills and knowledge fuel the performance of existing firms and serve to attract new employers in our target industries. The better educated our workforce, the more quickly our economy can take advantage of new opportunities and recover from negative shocks, such as the recent economic recession.

Positive changes in the Human Capital Index directly correlate with positive changes in the Innovation Index. If the region is to see significant movement in innovative activity, it must significantly expand the percentage of the population with needed workforce skills, particularly knowledge and STEM* workers.

1 Austin............ 122.42 Lexington .......115.83 richmond .......113.94 raleigh ........... 113.35 Knoxville ........106.6

6 Greenville ......102.97 charleston .......99.48 Jacksonville ...96.39 Savannah ....... 93.3

1 raleigh ..........106.22 Jacksonville ...104.13 charleston ..... 102.84 Knoxville ........102.55 Austin ............ 102.2

6 Savannah .......101.87 Lexington .......101.38 richmond ......100.59 Greenville ........97.3

1 raleigh ........... 145.42 Austin ............. 139.73 charleston ........ 113.14 richmond ........ 112.45 Lexington ........110.6

6 Knoxville .........102.17 Savannah .......100.78 Greenville ........ 95.48 Jacksonville .... 95.4

1 Austin............102.82 richmond .......102.13 Knoxville .........101.94 Lexington ........101.15 raleigh ...........101.0

6 Savannah ......100.77 charleston ..... 100.28 Greenville .......99.99 Jacksonville ...98.2

change in index value:

richm

Ond &

le

xingT

On

107kn

Oxvil

le

103

75 125

ausTin &

raleigh

117

104charlesTOn99

100uniTed sTaTes average

the trend• 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

gree

nvill

e, sa

vann

ah

& Ja

cksO

nvill

e


Source: U.S. Census Bureau



*STEM = Science, Technology, Engineering and Mathematics

why is this important?

=

7

PPP= no change

“State and local leaders must see education funding, both K-12 and higher education, as an 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 Zuckerchairperson & ceo, the intertech Group

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

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

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

change in Knowledge woRKeRs, 2005 - 2011The 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.

*STEM = Science, Technology, Engineering and Mathematics

charleston

Greenville

Knoxville

Austin

Jacksonville

richmond

Lexington

raleigh

Savannah

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

3.9%

3.5%

1.5%

1.4%

0.4%

-1.4%

-2.0%

-5.2%

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

a closeR looK

Building BlocKs foR successBusiness peRspective

Source: Brookings Institution, 2011

charleston recognized as #1 u.s. metro for Brain gain


-7.7%


innovative activity indexemployment in technical positions, 2011

percentage of employment in computer, science, and engineering occupations.

nih funding, 2010Funding from niH, presented per local job.

ventuRe capital investment, 2010Financial capital provided to early stage startups, presented per local job.

patents issued, 2009number of patents issued in an area, presented per 10,000 workers.

why is this important?The ability to generate new ideas, products and processes

is an important measure of a region’s competitive advantage. An environment of innovation encourages the launch of new businesses, provides growth opportunities for existing businesses, and attracts leading-edge businesses from outside the area. The result: new, higher-wage jobs for area residents.

The more our region graduates, attracts and retains talent with needed workforce skills, particularly knowledge and STEM workers, the more we will see positive changes in our Innovative Activity Index.

1 Austin.............185.12 raleigh ...........158.13 charleston ..... 102.44 richmond .......101.85 Lexington ........101.1

6 Greenville ......100.47 Knoxville .......... 91.78 Jacksonville ...86.99 Savannah ....... 54.5

1 Lexington .......200.12 charleston ...... 199.63 raleigh ............107.34 richmond ........ 72.45 Austin ..............40.9

6 Knoxville ...........17.67 Jacksonville ...... 9.38 Greenville ........... 1.89 Savannah ..........0.0

1 raleigh ..........299.92 Austin ........... 284.43 charleston .......20.04 Jacksonville .... 16.65 Greenville ........ 14.5

6 Knoxville..........10.97 richmond ......... 8.38 Lexington ......... 2.39 Savannah .........0.0

1 Austin...........459.02 raleigh ..........297.83 Lexington ......109.44 Greenville .......89.25 Knoxville ......... 66.2

6 richmond ....... 38.87 charleston .......30.28 Jacksonville ... 23.09 Savannah ........ 14.4

savannah

17

greenville

45

richmOnd

67 JacksOnville

72 lexingTOn

84

knOx

ville

131

76charlesTOn

100United StateS average

ausTin 211

raleigh 222

= increase = decrease = no change




Source: National Institutes of Health

Source: Thomson Reuters

Source: Harvard Business School

0

the indicators

200

u.S. Average = 100

the trend• 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

9

2009 - 2011 Avg.

“The future economic vitality of the Charleston region depends upon our ability to compete successfully 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, phdpresident, medical university of South carolina (muSc)

ventuRe capital investment peR JoB,RanKed By 2009 - 2011 aveRages

Build systems to support and promote innovationPsupport angel investor tax incentives and foster entrepreneurial growthPdevelop pipeline of educated, skilled knowledge & stem workersP

a closeR looK


Venture capital (VC) is financial capital provided to early-stage, high-potential / 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.

• 11% of U.S. private-sector jobs come from venture backed companies

• Venture backed revenue accounts for 21% of U.S. GDP

Source: National Venture Capital Association

what is venture capital?

= no change

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

it-sectoR shaRe of JoBs, 2009percentage of employment in it-related businesses.

1 Lexington .....258.82 raleigh .......... 233.13 Knoxville ........186.84 Austin ............ 178.75 Greenville ...... 162.5

6 richmond ....... 94.77 charleston .......34.98 Jacksonville .....0.09 Savannah .........0.0

1 Austin............ 182.22 raleigh ..........170.93 Jacksonville ... 135.14 charleston ....... 117.25 Lexington .......115.8

6 Greenville .......88.07 richmond ....... 86.28 Knoxville......... 58.49 Savannah ........ 32.1

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

Source: County Business Patterns

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

$100

$200

$300

$400

$500

$600

raleigh

Jacksonvil

le

richmondAusti

n

Greenville

Lexington

charleston

Knoxville

Savannah

$0

$519.00$547.20

$30.30$36.60$26.50 $20.00 $15.20 $4.20 $0.00

$182.50 2009 - 2011 u.S. Average

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.


concentRation of small to mid-siZe Businesses, 2009number of area businesses per 1,000 employees.

Business chuRning, 2008the total number of establishment births and deaths as a percentage of all area firms.

pRopRietoRs’ income shaRe, 2010percentage of an area’s income generated by self-employed business owners.

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

the indicators

1 charleston ..... 109.62 raleigh ..........105.03 Jacksonville ...104.14 Savannah ..... 100.95 Austin .............96.0

6 richmond ........ 95.57 Greenville ......... 92.18 Lexington .........89.19 Knoxville ..........86.1

1 Jacksonville... 125.92 Austin ............. 115.73 raleigh ...........110.64 Savannah ......104.65 charleston ...... 101.9

6 richmond .......94.97 Greenville ........ 92.17 Lexington ........ 92.19 Knoxville ........88.0

1 Austin............108.02 Knoxville .........99.33 charleston .......90.34 raleigh ............74.85 Lexington ........ 71.8

6 Greenville ........67.67 Jacksonville ... 63.88 richmond ........61.99 Savannah .......29.6

1 Austin............. 141.52 raleigh .......... 136.43 charleston ..... 104.04 Knoxville ........ 102.35 Jacksonville ...98.2

6 richmond .......93.67 Lexington ........86.18 Greenville ....... 84.79 Savannah .......62.0

raleig

h

107

ausTin

115

greenville

84

lexingTOn

85

75 125

101charlesTOn

Savannah

richmOnd

87 knOxville

94 JacksOnville

98


entRepReneuRial enviRonment index




A supportive environment for entrepreneurs is key for new business creation and growth. Just as a favorable climate encourages new companies to put down roots, an unfavorable climate can cause successful startups to seek more hospitable communities. Innovative activity in the economy results in new business and entrepreneurial activity.





Source: U.S. Department of Commerce

the trend

The continued growth of small businesses, in particular the Business Services sector, is dependent on the continued growth of the region’s GRP and economic engines of growth, particularly high-value target industry clusters: Aerospace, Advanced Security/IT, Biomedical and Energy Systems and related competencies.

u.S. Average = 100

74 savannah

Highest growth among all peers

and leading metros.

• 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)

11

“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 allenpresident & ceo, Boomtown :: real estate web platform

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.

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

a closeR looK


= no change

PPP

the multiplier effectgRowth in chaRleston Region Business seRvices sectoR, 2005 - 2010

10

20

30

40

50

60

70

7%Growth

8%Growth

9%Growth

25%Growth

44%Growth

29%Growth

33%Growth

23%Growth

22%Growth

30%Growth

Legal services Accounting, tax preparation,

bookkeeping and payroll services

engineeringservices

Graphic designservices

management consulting

services

environmental consulting

services

computer systems design

and related services

Scientific research and development

Advertising, public relations

and related services

photographic services

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

0

(# o

f new

firm

s)

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)


Quality of place indexclimate, 2011

percentage of days with high temperatures between 50° and 80° F.

cultuRe and RecReation, 2010employment in the arts, entertainment and recreation (nAicS 71) provides a measure of an area’s cultural and recreational opportunities.

tRavel congestion, 2010percentage of daily travel in congested conditions. Lower number means less congestion.

cRime Rate, 2010violent crimes per 100,000 population.Lower number means more crime.


the indicators

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 and skills, highly educated workers have more flexibility in where they choose to live and work.

An area’s lifestyle attributes are increasingly important to its long-term economic success as the competition for skilled workers escalates. New residents are also attracted to communities with economic growth because they offer a range of employment opportunities.

1 charleston .......114.52 Knoxville .........107.73 Greenville ......106.64 Lexington ......106.04 raleigh ..........106.0

6 richmond ...... 104.37 Savannah .......95.98 Jacksonville ... 86.39 Austin ..............72.7

1 Austin............ 129.52 Lexington .......129.13 raleigh ........... 113.44 Jacksonville ...103.15 richmond ...... 102.3

6 charleston ...... 101.97 Savannah .......86.58 Knoxville.........85.89 Greenville ....... 83.4

1 Lexington ...... 120.42 Austin ............ 112.33 Knoxville ........107.44 charleston ......107.15 Jacksonville 106.6

6 raleigh ..........105.37 Greenville ....... 92.28 Savannah ........74.39 richmond .......69.9

1 Austin ............166.12 richmond ......149.63 raleigh .......... 122.94 Savannah ........117.75 Lexington .......92.8

6 Knoxville.........86.57 charleston ....... 78.48 Greenville ........ 77.79 Jacksonville ... 72.4

savannah

96

greenville &

JacksOnville

94kn

Oxvil

le &

ric

hmOn

d

107au

sTin

103

raleigh

114

lexingTOn

116

75 125

106charlesTOn


the trend• 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


Source: Texas Transportation Institute

Source: Federal Bureau of Investigation

Source: Weather Underground




u.S. Average = 100

24%charlesTOn

11%u.s.

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

13

“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 weismillerpresident, Berchtold corporation

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”

a closeR looK


= no change

PPP

aiR Quality, 2011percentage of days with air quality measured as “good” or “moderate” by the epA.

healthcaRe access, 2011number of healthcare practitioner and technical occupations per 100,000 population provides a measure of access to healthcare professionals.

1 charleston ...... 101.41 Greenville ........101.43 Lexington ........101.14 raleigh ..........100.85 Austin ............100.6

6 Savannah ....... 99.77 richmond .......99.28 Knoxville.........98.69 Jacksonville ....97.2

1 Knoxville ........152.82 Lexington ...... 148.73 charleston ..... 130.44 richmond ........119.15 Greenville ...... 104.5

6 Savannah ...... 104.47 Jacksonville ....101.18 raleigh ...........89.39 Austin .............80.4

Source: U.S. Environmental Protection Agency


housing affordability index, 2010

Source: National Association of Realtors

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

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.

85

90

95

u.s. avg.100

105

110

115 113.5Greenville 112.4

Lexington111.9Knoxville

109.0Austin

103.4Jacksonville 101.2

Raleigh

97.0Savannah

90.7Richmond

88.8Charleston

14 LeverAGinG ASSetS

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 pRioRitiesWhile 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.

oppoRtunity next

avalanche

2

3

1

stRategic pRioRities status

economic health • on course and exceeding u.S. averages

leadeRship

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.

•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

conducting a regional economic &

strategic impact study

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.

woRKfoRce development/ education

•Leadership continues to come

together to address education

•cradle to career planning nearly complete;

Strive-like program being considered

•Graduate charleston funding pursued

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.

yeaR one pRogRess RepoRt

15

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

Key taKeaways

www.opportunity-next.com

4

6

5

moving Region foRwaRdThe 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.

infRastRuctuRe

gloBal maRKeting/ Business development

entRepReneuRship and innovation

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.

•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 is a game-changer 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-stop-shop for information about the region.

•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

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

•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: AverageProgress 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.

1 2 3 4tRanspoRtation

transform the region’s

infrastructure into a

world-class multi-

modal system

education

invest in education to

transform outcomes

and grow a workforce

pipeline

innovation

develop and build the

systems necessary to

promote and support

innovation

talent

graduate, attract and

retain highly skilled

professionals

Source: Avalanche Consulting, May 2012

2012 scorecard task forcechairmanMatt Sloan, The Daniel Island Company

membersBonnie Bella .................Trident United WayRita Berry .....................Greater Summerville/Dorchester County Chamber of CommerceSally Ehrenfried ...........BlackbaudCourtney Herring ........Charleston Metro Chamber of CommerceAshley Holbrook ..........The Boeing CompanyMeg Howle ...................Trident Technical College FoundationMichelle Mapp .............Lowcountry Housing TrustBarbara Melvin ............SC Ports AuthoritySteve Osborne ..............College of CharlestonBobby Pearce ................Smith Moore LeatherwoodAmy Riley .....................Thomas & HuttonLaura Varn ....................Santee CooperHeather Woolwine .......Medical University of South Carolina

produced for the community by the charleston Regional development allianceThe 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

Research & analysisuniversity center for economic development, clemson university

Dr. David W. Hughes, Professor and Program LeaderDepartment of Applied Economics and StatisticsClemson Institute for Economic and Community Development Dr. David L. Barkley, Emeritus ProfessorDepartment of Applied Economics and Statistics, Clemson University Devin Swindall, Research AssociateClemson Institute for Economic and Community Development

center for Business Research, charleston metro chamber of commerceThe 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 Charleston-Summerville metropolitan statistical area (MSA).

Mary Graham, Senior Vice President, Business AdvocacyCharleston Metro Chamber of Commerce

Jacquelyn Renegar, Economic, Demographic & Market ResearchCharleston Metro Chamber of Commerce

designed & published bySC 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 [email protected].

2012 crda economic scorecard

Documents

economic development

regions economic future

regional economy

economic prosperity

regions business

business research

worldclass metro

worldclass economy