“A job is the best cure for poverty, and that’s why economic development and job creation has been my principle focus.”
- Luther Strange
I’m back. Back in several different ways.
Back in the pages of the Press & Standard. Back in Colleton County. Back home.
It’s been about 12 years since I last penned a column for Colleton County’s newspaper of record. The Press used to pay me for those columns back then, something I’m still immensely proud of. I am still asked at least a couple times a year if I’m still “the newspaper guy,” and I take that as a huge compliment.
I left The Press in 2014 to embark on a new chapter, a career in economic development. Through stops at SouthernCarolina Alliance and Dorchester County Economic Development, I’ve learned a lot. The journey and wisdom gained along the way led me back to my home county. I began my role as Executive Director for the Colleton County Economic Alliance April 28 last year.
This fall, I visited my old office to speak with Scott Grooms and Dana Erickson about the state of economic development in the county. The conversation shifted to an opportunity to share my perspective with the citizens of Colleton County. I hope I’m up to the challenge (and remember my AP style). There’s a number of myths and misnomers about economic development. We will look to tackle some in the coming months.
As a basis for the discussion, let’s talk definitions. What is economic development, and further, why do we even bother to do it?
A dictionary defines economic development as the process in which an economy grows or changes and becomes more advanced, especially when both economic and social conditions are improved.
All of the above is true, with a special emphasis on the words growth and change. Economic development changes the trajectories of communities and family trees. It grows opportunities and options for our citizens, leading to an improved quality of life.
I like to call it the “science of new money.” Communities need infusions of new money to survive and thrive. That can come in many forms: tax revenue, an increase in the number of available jobs or positions with better wages, thereby creating more competition in the labor force. New rooftops, filled with new residents who pay local taxes and generate retail spending, also factor in.
That is why we focus primarily on the industrial sector. Large industries in manufacturing, logistics, food processing, life sciences and tech tend to provide the best bang for the buck in terms of investment, job creation and higher wages. Industrial recruitment is a proven strategy for growth, producing a trickle-down effect of a demand for things like housing, healthcare, goods and services. Twenty-five years ago, BMW changed the face of the Upstate, an economy once floundering in the wake of the offshoring of the textile industry. The future of the Charleston region was in question after the closure of the naval shipyard in 1996. Later, companies like Boeing, Google, Walmart, Mercedes and Volvo led to Charleston becoming one of the fastest growing metropolitan areas in the country. It can happen.
The presence of large businesses and corporations also help shift the tax burden away from homeowners. As inflation drives up the cost of necessary public services (police, recreation, education, sanitation etc.) counties and municipalities need new revenue to deliver and expand on those services. The revenue must come from somewhere, either through a blanket increase in property taxes or the recruitment of large taxpayers.
A standard single-family home might produce $3000 annually in property taxes. A small scale industrial project, say a $20 million investment, would produce $432,000 in yearly property tax liability, or roughly the equivalent of 144 homes.
As the county’s economic development director, I am often asked: why can’t we have “Business X” here in Colleton County. Some popular requests include additional retailers, entertainment and restaurants. In short, more opportunities and options for your family’s disposable income.
Why not? The short answer is not enough economic development. At least not yet.
Major retailers and restaurants do extensive research on community demographics when considering new locations. Is there significant population growth? Enough rooftops in a 5-20 mile radius? Sufficient disposable income? There is no opportunity on a prospective communities’ part for finesse, incentives and sales pitches. The numbers either work or they don’t.
The US Census Bureau estimates Colleton County’s current population at 39,250. In 1990, it was 33,000. That’s 178 people a year, roughly 0.5 people per day. Not enough new money to support significant retail growth.
Colleton County’s average wage hovers around $23 an hour. That’s an annual salary of about $48,000 per year, $21,000 below the national average.
A scenario where Colleton County has a significant uptick in commercial and retail facilities without industrial and residential growth is a financial impossibility.
The good news is Colleton is well-positioned for its own growth. With years of collaboration and planning, the necessary assets are in place to facilitate and support economic improvements. We’ll take a deeper dive into those assets in future editions.
Change is the only thing that is inevitable, and our best years are ahead.
(Brantley Strickland is the Executive Director of the Colleton County Economic Alliance. A Colleton County native, he served as managing editor of The Press & Standard from 2011-2014.)
