2012 crda economic scorecard
DESCRIPTION
This Regional Economic Scorecard, published annually, gauges our three-county region’s economic progress compared to six similar metro areas and two leading economies. Because of a time lag in data availability, this 2012 report highlights data captured during and just prior to the Great Recession.TRANSCRIPT
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
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: Bureau of Labor Statistics
Source: U.S. Census Bureau
Source: U.S. Census Bureau
Source: Bureau of Labor Statistics
*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
Source: Bureau of Labor Statistics
-7.7%
8 competitiveneSS inputS
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
The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.
change in index value:
Source: Bureau of Labor Statistics
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
Building BlocKs foR successBusiness peRspective
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.
10 competitiveneSS inputS
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
100uniTed sTaTes average
entRepReneuRial enviRonment index
= increase = decrease = no change
The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.
change in index value:
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.
why is this important?
Source: U.S. Census Bureau
Source: U.S. Census Bureau
Source: U.S. Census Bureau
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
Building BlocKs foR successBusiness peRspective
= 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)
12 competitiveneSS inputS
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.
why is this important?
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
100uniTed sTaTes average
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: Bureau of Economic Analysis
Source: Texas Transportation Institute
Source: Federal Bureau of Investigation
Source: Weather Underground
= increase = decrease = no change
The most recent values are compared to a 2005 baseline and do not imply year-to-year changes.
change in index value:
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
Building BlocKs foR successBusiness peRspective
= 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
Source: Bureau of Labor Statistics
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].