Growth in South Carolina and Indiana
Jennifer Nietz - Manager of Operations
I have an RSS Feed setup in my email that will pull notable articles regarding new manufacturing starts from Area Development. Area Development is a great source to learn about regions, cities, and states that have new business startups and new manufacturing facilities. Over the last several months, I’ve noticed a trend in new facilities being built in South Carolina and Indiana. It seems that more than 60% of articles I am reading are building or expanding in those states. I was hoping to share in this edition to give you some direction if you are prospecting new manufacturing facilities but also to investigate why this is.
Let’s look at South Carolina first.
South Carolina is very focused on growth in the Automotive Industry. Did you know that there are over 250 auto related manufacturing facilities in South Carolina? Some of the key features being offered in this region to attract are centered on energy savings and tax incentives. South Carolina offers some of the lowest industrial power rates in the nation. The state’s integrated system combines diverse energy sources to ensure stability and availability. Energy in South Carolina costs an average of 15% less than the national average.
On the tax incentive side, South Carolina seems unbeatable. In South Carolina, only local governments levy property taxes; there is no state tax on real or personal property. In addition, there is no tax – state or local – on inventories or intangibles.
Now let’s look at Indiana.
Fueled by a manufacturing boost, only seven states had a faster growth rate than Indiana during the fourth quarter of last year. Manufacturing continues to play an outsize role in the state. The sector contributed 30% to Indiana’s GDP in the last three months of 2013, compared with the national average of 13%. Obama, on a recent trip to the state, it was said, “We have seen job growth in that sector of the economy that we haven’t seen there in nearly 20 years,” White House spokesman Josh Earnest commented regarding the visit.
It was announced in August 2014 that there would be $400 million in high-tech grants to Indiana enterprises to develop cars and trucks with powerful batteries and big electric motors. Chrysler also committed to investing $800 million. The sector, in general, added 268,000 new jobs last year!
These two sectors, along with Indiana and South Carolina, have great stories to tell and are proving to be some the best sectors in our economy. Subscribe to Area Development to learn more about these great opportunities. COACT continues to monitor these new facilities the moment they are announced and acts for each and every one of our clients.
Questions or comments? Please contact Jennifer Nietz at jnietz@teamCOACT.com.