Attracting jobs gets tougherRegional Development Alliance copes with nation's economic realities By Katy Stech (Contact)
The Post and Courier
Wednesday, August 27, 2008
Ginn Colorado-based WellDyneRX liked what it saw in the Charleston economy. While scoping out potential sites for a $20 million, 670-worker business expansion to sort and mail medications, company officials said they were impressed with the local labor costs and the availability of skilled workers. Plus, they found a building that met their tricky real estate requirements in North Charleston's Remount Business Park. But it wasn't enough to win the company over in the end. WellDyne said Monday that it opted for a competing site in Lakeland, Fla., putting it closer to distribution companies it already works with closely. "Charleston did an admirable job," said John Krug of Charlotte-based Development Advisors, a site-selection consulting firm that assisted WellDyne in its search. It's inevitable in the economic development business that one location loses a big employment prospect to another. But the loss of this particular company stings because the Charleston region has had so few job announcements this year. So far in 2008, just two companies have announced plans to open or expand local operations with the help of the Charleston Regional Development Alliance, which markets the three counties as a business destination. Slow goingThe shaky economy is forcing companies to rethink their expansion plans, making it tougher for the region to land economic development projects. Here's a look at the region's five-year track record based on expanding companies that are assisted by the Charleston Regional Development Alliance: Year Companies Jobs 2004 11 2,075 2005 20 1,282 2006 9 516 2007 11 943 2008 * 2 150 *Through Aug. 26 2AM Group LLC, a technical support company that works with the BMW manufacturing plant in the Upstate, launched a 50-worker operation in North Charleston, while Cummins Turbo announced plans to add 100 jobs and invest $11 million in new machinery at its turbocharger assembly plant off Ladson Road. At the current pace, 2008 could mark the slowest year for the alliance in recent memory as measured by the number of new jobs, the amount of money invested and the number of announcements. David T. Ginn, the alliance's chief executive officer, said the uncertainties in the financial and energy markets and in the overall economy have forced many companies to re-evaluate their expansion and spending plans. "Businesses are obviously very cautious with what's going on in the world," Ginn said. Companies that the alliance has assisted have created an average of almost 1,200 jobs annually for the local economy over the past decade, according to the North Charleston-based group's figures. The slowdown comes as unemployment is on the rise. In July, the jobless rate for the Charleston region increased to 6 percent compared to 5.4 percent in June and 4.7 percent in July 2007. Still, alliance officials estimate that they are working with about 15 business prospects on expansion projects that could solidify in the next 90 days. In each of those instances, Charleston is competing only against either one or two other sites, Ginn said. "It's increased in the last four to six weeks," he said. "We've seen a substantial increase in new projects that have come onto our books. ... That's obviously a very good sign." The alliance has altered its strategy to keep pace with the changing times, Ginn said. For example, it is investing more resources to make its Web site more effective and useful. And its marketing efforts are now focused more on the site-selection consultants who advise companies like WellDyne rather than industry trade shows. The group also continues to pitch success stories about the Charleston economy to an array of publications that reach corporate decision-makers, Ginn said. Reach Katy Stech at 937-5549 or kstech@postandcourier.com. |
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Comments
This article has 8 comment(s)
Posted by MableX on August 27, 2008 at 6 a.m. (Suggest removal)
Who's surprised? We're talking about a city where the citizens are outraged over not being able to smoke in public places! Also a place where anti-intellectualism is the order of the day. A segregated city, clinging to the vapors of the ante-bellum South continues to sit back waving their football flags as Charleston gains fame as the Number One retirement spot for former Ohio residents.
Posted by justjerry on August 27, 2008 at 8 a.m. (Suggest removal)
"Posted by MableX on August 27, 2008 at 6 a.m. (Suggest removal)
Who's surprised? We're talking about a city where the citizens are outraged over not being able to smoke in public places! Also a place where anti-intellectualism is the order of the day. A segregated city, clinging to the vapors of the ante-bellum South continues to sit back waving their football flags as Charleston gains fame as the Number One retirement spot for former Ohio residents."
Correction - North Charleston is a city with residents who are outraged when smoking is banned by the government from private businesses.
Also, I have found that Mount Pleasant and the City of Charleston are far more segregated than North Charleston.
Posted by Southern_Cousin on August 27, 2008 at 8:15 a.m. (Suggest removal)
Could Regional Development Alliance try to get a decent business located on James, Johns Island or Wadmalaw-Hollywood area? I get so sick of having to drive to N. Chuck everyday. The majority of our businesses are in N. Chcuk, a big contributor to our traffic problems.
We on the islands need a decent place to work that is not a one- hour commute every day. There are lots of people in these areas that need a good job with a reasonable commute to work - I would jump at the chance. There are several closed businesses on John's Island alone.
Posted by wjhamilton3 on August 27, 2008 at 9 a.m. (Suggest removal)
We've never gotten over the loss of the Navy Yard. We've got an economy increasingly based on low paying service jobs which can't cover the cost of living. What inexpensive housing we have is either far out on the urban fringe or in areas with terrible schools. To survive here a family has to pay a high cost of hoursing and maintain one or two automobiles. It simply can't be done on eight to ten dollars an hour.
We're working with average wages 25% below the national average against a cost of liveing now above the national average and it has been that way for at least five years.
Twenty-two years ago, out of college, I could rent a beat up apartment downtown for $300 a month and walk to work. That was math that allowed people to make a start.
Employers I know are having a hard time finding the skilled labor they need. Young skilled labor is very mobile today thanks to the internet and it follows the money. I've had a number of divorce clients relocate to other urban centers where wages were higher, schools were better and the cost of living was lower.
On the bright side we're becoming a bargain destination for international tourists and our signature real estate downtown and at the beaches is very attractive to European Investors. I'm not sure how much of our dignity and independence that leaves us with.
I wellcome high paying employment. If we end up with a huge retired population unbalanced by industry and young families, we'll have big economic problems as has happened in Florida.
Posted by BreezinIAm on August 27, 2008 at 10:47 a.m. (Suggest removal)
Why is education a dirty word? Who would blame the WellDyneRX's of the world and other clean, high-paying, technology-driven firms for taking a deep breath before relocating here?
Notice yesterday's article on South Carolina SAT scores, which are "improving slightly." I've waited twenty-four hours to see if anyone cared to comment. Total comments: One. (1). Yes, one.
We seem to be more interested in commenting on car wrecks, shark attacks, crime and political follies than thinking about the foundation for our children and the future of South Carolina.
Let's get off the porch.
Posted by wjhamilton3 on August 27, 2008 at 2:59 p.m. (Suggest removal)
Education is part of the problem. However, we're engaged in a cycle where the population and tax base which would support better schools may be choosing to locate elsewhere. The question is at what point are we committed to a downward spiral? We also need quality green spaces, transit infrastructure and recreational opportunities. All this costs money and money is out there looking for places which already have it.
A lot of people understand the problem. I participated in the regional planning effort this summer with hundreds of them, but we've got our racial and economic history hung around our neck like a rock.
Bubba can enjoy his plantation up to the day he can't afford to fly out to wherever to see his grandchildren any longer or to when his kids force him to sell the house and move to live near them in the old folks home. There are drastic consequences to losing the contest for the future.
I just returned from Vancouver, BC and Seattle, both of which were actively recuiting younger families and talent. You don't see that here.
Posted by guidedbystewart on August 27, 2008 at 6:14 p.m. (Suggest removal)
Amazing comments!
Posted by Native_Ink on August 27, 2008 at 9:41 p.m. (Suggest removal)
Impressed with the local labor costs, were they? We're cheap labor to these companies. That's why they relocate here. It's truly an amazing story out in these new factories: people scraping by on low wages and working 50+ hours a week. Anyone ever hear of Chinese overtime? If you haven't, count yourself lucky. It's when you make less for your overtime hours than your regular hours. That's an example of what companies get away with here.