Charleston: Economy

Major Industries and Commercial Activity

The economy in the Charleston region rests upon several sturdy bases. The military has traditionally been the major industry in the area since 1901 when the Charleston Naval Shipyard was founded. Even after the Naval Base and Shipyard closed in 1996, the military has remained the largest single employer in the Charleston region. The Department of Defense has remained at installations such as the Charleston Naval Weapons Station, Naval Hospital and the SPAWAR Systems Center Charleston. The Department of the Navy employed more than 12,500 active duty and civilian personnel in the region in 2003. At the same time, Charleston Air Force Base employs more than 5,000 personnel as the home for the U.S. Air Force's 437th Airlift Wing, adding substantially to the region's economic foundation.

Oil, electronics, computers, mining, and health care are also major industries in the Charleston area. Three of the region's largest employers are in the health care industry. They are Medical University of South Carolina, Roper St. Francis Healthcare and Trident Health System, and HCA division headquarters.

Tourism is another significant factor in the area's economy. The Charleston Metro Chamber of Commerce, the nation's oldest chamber of commerce, has long been interested in promoting Charleston as a place to visit, and despite wars, fires, hurricanes, and earthquakes, Charleston has preserved and restored hundreds of historic buildings that draw some four and a half million tourists per year. Visitors enjoy shopping and dining, as well as touring historic plantations, landmarks, and churches. According to research from the Chamber's Center for Business Research, Charleston visitors surveyed say that the area's greatest assets are its historic charm, historic sites and attractions, restaurants and climate. While most visitors to Charleston come from the nearby states of North Carolina, Georgia, Ohio and Tennessee, as well as their home state of South Carolina, about four percent of visitors are from outside the U.S. Charleston's world-famous barrier islands feature outstanding resort facilities in a semi-tropical climate, serving as powerful elements in the area's allure for tourists. The number of visitors to the Charleston region has grown steadily since 1997 when 2.5 million people visited to 4.6 million visitors in 2003. The number of accommodations in the area has also increased to keep pace with the growing demand. Tourism contributes $5.1 billion to the local economy annually.

Items and goods produced: marine products, fertilizer, rubber products, textiles, aircraft parts, paper, textiles, food products, lumber, metal components, heavy machinery, transportation equipment, furniture, instruments and chemicals

Incentive Programs—New and Existing Companies

Both the State of South Carolina and the Charleston community offer a number of business incentives designed to provide measurable economic advantages and reduce the cost of start-up operations.

Local programs

The Berkeley-Charleston-Dorchester Council of Governments operates a revolving loan fund offering financing for projects meeting certain criteria. Charleston County may negotiate a fee in lieu of property taxes with prospects or existing industries that commit to large new capital investment in the state. Five-year property tax abatements for new manufacturing facilities locating in the tri-county area and an exemption from the county portion of ordinary property taxes for five years on all additions to existing facilities are available under certain circumstances. The Charleston Citywide Local Development Corporation (LDC) offers financial assistance through six different loan programs for small businesses.

State programs

The following incentives and financing sources may be available to qualifying companies: Job Tax Credit for corporate income tax for job creation; displaced worker jobs tax credit; corporate headquarters tax credit; credit for hiring Family Independence Recipients; employer child care credit; job development credit; income tax credits for infrastructure construction; tax credit for the construction of water resources; income tax credit for investments in the Palmetto Seed Capital Corporation; property tax abatements; and sales tax exemptions for certain business expenditures. South Carolina's Jobs-Economic Development Authority provides funding assistance through Community Development Block Grants and through Carolina capital investment loans. South Carolina also offers Enterprise Zone incentives. There is no local tax on corporate income as well as no tax on worldwide profits.

Job training programs

The Center for Acccelerated Technology Training (CATT), a division of the State Board of Technical and Comprehensive Education, provides new and expanding companies with fully trained and productive employees. The program may include trainee recruitment and testing, instructor recruitment and training, provision of training sites, development of instructional materials, and complete program management. South Carolina administers the Job Training Partnership Program, which provides both training for new and expanding businesses, as well as customized skill training for specific employer needs. Finally, funds for retraining employees in existing industries are available from the Coordinating Council for Economic Development.

Development Projects

Major corridors in the city are getting a boost from the City's Streetscape program. Scheduled for completion by 2007, improvements include reconstruction of sidewalks, curbing, lighting, handicap ramps, the addition of street trees, brick crosswalks, and burial of overhead wires to the King Street commercial area and other downtown areas of the city. The South Carolina legislature has mandated additional expansion to the Port of Charleston, and by 2004 the South Carolina State Ports Authority had begun the permitting process for a sixth container terminal located at the former Charleston Naval Complex. This terminal will accommodate the expanding international container trade and the increasingly larger container ships that arrive in the port. In 2004, the Ports Authority also completed a $24 million project to deepen the Charleston channel and widen the harbor to improve navigation and accommodate larger vessels. The 2005 planned completion of a $635 million new bridge across the Port of Charleston's shipping channel will feature eight traffic lanes and improved clearance over the channel. The Arthur Ravenel Jr. Bridge over the Cooper River and Town Creek replaces two aging truss bridges. The city has initiated work on the renovation of the Camden Tower Sheds, an historic railway property, into a cultural Arts District and Children's Museum. The Children's Museum of the Lowcountry opened to the public in 2003.

Economic Development Information: Charleston Regional Development Alliance, 5300 International Blvd., Suite 103A, North Charleston, SC 29418; telephone (843)767-9300; fax (834)760-4535

Commercial Shipping

International trade is a growing sector of the regional economy and the Port of Charleston is making strides to accommodate that growth. Known as one of the most efficient ports in the world, it handles one quarter of all containers from Norfolk to Miami. The port is also ranked sixth in the country by value of cargo moved through its terminals. Containerized shipments such as textiles, chemicals, and rubber are the main commodities handled by the port. The Port of Charleston contributes greatly to the economic impact of the city in areas of employment, personal income, and tax revenues. Adding to the efficiency of shipping into and out of Charleston is the Charleston International Airport. Its air cargo facilities include a 21,000 square yard facility and a separate cargo/freight area on the airport's east side. In addition, about 100 motor freight carriers, three railroad systems, and an expansive system of interstates and U.S. highways move cargo through the region.

Labor Force and Employment Outlook

Charleston boasts a plentiful supply of skilled labor; its civilian labor force has grown 4.3 percent from 1998 to 2003. Most Charleston residents are employed in the trade, transportation and utilities sector and government sector. High school graduates account for 81.1 percent of the city's labor force and 16 percent are college graduates. Most employment opportunities can be found in the tourism industry, transportation services, health care, military installations, and manufacturing.

The following is a summary of data regarding the Charleston metropolitan area labor force, annual averages 2003.

Size of nonagricultural labor force: 260,300

Number of workers employed in . . . construction and mining: 19,900

manufacturing: 20,900

trade, transportation and utilities: 53,600

information: 3,700

financial activities: 10,800

professional and business services: 33,600

educational and health services: 27,400

leisure and hospitality: 32,100

other services: 7,600

government: 50,800

Average hourly earnings of production workers employed in manufacturing: Not reported

Unemployment rate: 4.6% (December 2004)

Cost of Living

The following is a summary of data regarding several key cost of living factors for the Charleston area.

2004 (3rd Quarter) ACCRA Average House Price:$229,315

2004 (3rd Quarter) ACCRA Cost of Living Index: 97.3 (U.S. average = 100.0)

State income tax rate: Ranges from 2.5% to 7.0%

State sales tax rate: 5.0%

Local income tax rate: None

Local sales tax rate: 1.5% (Charleston County)

Property tax rate: Millage rates set annually by local government tax authorities and applied to 4.0% of fair market value. In 2003 the city's combined millage rate was 337 (tax credit factor was .000365).

Economic Information: Charleston Metro Chamber of Commerce, 81 Mary Street, PO Box 975; Charleston, SC 29402-0975; telephone (843)577-2510; fax (843)723-4853