GSA Daily Staff Report
Published May 20, 2010

Boeing will add $6.1 billion to South Carolina’s economy each year and add nearly $3 billion to state taxes over three decades, according to a study released this morning by a Columbia-based nonprofit.

Miley & Associates Inc. conducted the study for the Alliance for South Carolina’s Future, which is a Columbia-based organization whose stated purpose is to promote economic growth in South Carolina.

Led by economist Harry Miley, a former chairman of the S.C. Board of Economic Advisors and chief economist under Gov. Carroll Campbell, the study found Charleston would receive the greatest yearly benefit with the manufacturing facility having a $5.9 billion annual impact on the region, including more than 15,000 jobs that will be created as a result of the company.

The study assumes that Boeing will create 3,800 jobs, which was what state economic incentives were based on. The Boeing Co. has not released the total number of jobs its operations will employ in the state. The impact also includes thousands of spinoff jobs in other sectors of the economy, the study said.

“These impacts will begin to occur immediately once the facility is operational and will continue for the entire life of the facility,” according to the study.

But actually some companies are already entering the state or have expanded because of increased work related to Boeing. In February, the Columbia Regional Business Report reported that one of Boeing’s suppliers, ACAS Landing Gear Services, was coming to Marion County. Leatherwood Electronics and Manufacturing in Charleston expanded its operations by 25,000 square feet since 2007 because of Boeing as reported in the Charleston Regional Business Journal in March.

The construction phase of the project is expected to have a major short-term impact as well with almost 9,900 direct and spinoff jobs, and a $1.4 billion impact to the region, the study found. The Greenville office of BE&K Building Group serves as the headquarters for the BE&K/Turner/BRPH design-build team. Global Performance of Greenville is providing project and construction management for Boeing, and CMC South Carolina Steel in Taylors is fabricating the steel for the assembly plant in North Charleston. Additionally, Greenville-based American Security Inc. is providing security during construction of the plant.

Construction activity will generate an estimated $246 million in direct labor income and have a multiplied impact throughout the economy of more than $413 million.

“The Alliance for South Carolina’s Future commissioned this study to put the Boeing project in historical perspective,” said Ed McMullen, co-founder. “We also wanted to quantify the effect Boeing will have on our state. By every measure, the effect is profound.”

The Alliance for South Carolina’s Future has scheduled a news conference for 3:30 today in Columbia to discuss the results of the study.

The only item on the alliance’s website is the Boeing study. Information about the alliance includes a listing a board members and officials: Bill Stern, chairman; Bob McAlister, co-founder; Ed McMullen, co-founder; Larry Wilson and John Russell.

According to records from S.C. Secretary of State Mark Hammond’s office, the organization was formed in April 2009, but it has undergone two name changes this year. It was first registered as South Carolina Action for Jobs, according to records, which was changed on Feb. 19 to Conservative SC. That name was changed a few days later on Feb. 26 to Alliance For South Carolina’s Future.

Other findings in the study include:

· The announced capital investment for Boeing, $1.025 billion, nearly equals all of the private capital investment made in South Carolina in 2003, $1.128 billion.

· Boeing’s capital investment per job, $268,816, more than doubles the statewide average in 2003 and is significantly above the average in South Carolina since then. The capital investment per job is a good indicator of whether a new facility will help support local governments.

· If Boeing’s investment in South Carolina grows at a similar rate as that of BMW over the next 17 years, the company would employ 9,500 people and have a $10 billion capital investment.

· South Carolina must compete for jobs and new investment with incentive packages in part because the state’s property taxes on industrial property are too high. One study ranks South Carolina highest in the nation, putting the state at a significant disadvantage.