Objective

A strong emphasis on economic development is required to create a sustainable competitive business environment that will help increase prosperity for all citizens by growing and attracting new investment. The support of initiatives to make South Carolina more business-friendly to promote economic development is paramount to increasing the state’s global competitiveness.

Background

One of the state’s largest economic drivers is the port system. The business community is calling for continued port expansion as the state prepares for completion of the Panama Canal widening project. In the last several years, legislation that provided $167.5 million for a port access road serving expanded facilities at the Charleston Navy Base site passed the legislature. In 2009, the General Assembly passed legislation to restructure and stabilize the South Carolina State Ports Authority (SCSPA). Container volume continues to increase at the port.

In addition, continued promotion of one of our state’s top industries, tourism, will enhance the business climate, ensure many South Carolinians have jobs and maintain a sound tax base. South Carolina’s tourism industry is one of the state’s strongest economic engines, contributing $16 billion to the economy. More than 30 million visitors come to South Carolina each year. Tourism jobs account for more than $2 billion in taxable income for the state, according to the U.S. Chamber of Commerce.

Situation

It is imperative that South Carolina remains globally competitive to ensure all citizens prosper. Without a business climate that fosters economic development, we will fall behind, losing jobs and growth.

The perception of the state also has an impact on recruitment and attracting investment. Recently, CNBC released a comprehensive assessment of state business climates. South Carolina ranked 37th, while Virginia, North Carolina and Georgia ranked in the top 5. Florida and Tennessee ranked in the top 20.

South Carolina’s unemployment rate is still above 10 percent. In 2012, the General Assembly’s concentration must be on job creation, beginning with a focused economic development plan.

Additionally, a strong Department of Commerce should be supported, including dollars allocated for the Closing Fund. Continued port expansion, including funding for port dredging, must also be achieved. And, as manufacturing expands in South Carolina and the economy continues to focus on knowledge-based jobs, it is important to protect the intellectual property that is developed by companies that call South Carolina home. Likewise, it is also vital to support entities like ReadySC and the South Carolina Manufacturing Extension Partnership that are spurring economic growth in South Carolina.