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Manufacturing in South Carolina

September 2010

State and Metropolitan Area Production

Like the United States as a whole, while South Carolina has experienced a historical upward trend in production over the past four decades, the manufacturing sector’s role in overall production has decreased. Manufacturing output fell from accounting for 36 percent of total state GDP in 1965 to 25 percent in 1997, and then fell further to 16 percent in 2008. Despite rapid growth in the services and finance, insurance, and real estate sectors between 1965 and 1997, manufacturing remained a major contributor to state production.

Source: Bureau of Economic Analysis, U.S. Department of Commerce

Despite historically enjoying higher average annual growth than the nationwide trend, recent growth in South Carolina’s manufacturing sector has lagged behind that of the nation as a whole. Between 1965 and 1997, annual production growth in South Carolina’s manufacturing sector averaged 7.8 percent, compared to 6.4 percent for the nation. However, this production peaked in 2003 and fell by 12.7 percent in 2004, largely due to a 57.8 percent decline in machinery manufacturing. Between 2005 and 2008, manufacturing production in South Carolina grew 6.7 percent, compared to the 10.6 percent growth of manufacturing output nationwide during the same period. In comparison, overall production in South Carolina increased by 12.8 percent during this period.

Source: Bureau of Economic Analysis, U.S. Department of Commerce

Source: Bureau of Economic Analysis, U.S. Department of Commerce

Compared to the overall U.S. metropolitan portion of domestic production, manufacturing plays a larger role in metropolitan gross domestic product (GDP) for most of the metropolitan areas located fully or partially in South Carolina. Between 2001 and 2008, the Charleston-North Charleston-Summerville metropolitan area reported the highest growth in manufacturing production, increasing by 62 percent. Charleston-North Charleston-Summerville was followed by Charlotte-Gastonia-Concord (up 17 percent) Columbia (up 13 percent), Augusta-Richmond County (up 8 percent), and Anderson (up 8 percent). During this period, three metropolitan areas reported a decrease in manufacturing output: Greenville-Mauldin-Easley (down 20 percent), Sumter (down 3 percent), and Myrtle Beach-North Myrtle Beach-Conway (down 0.4 percent). In comparison, the overall U.S. metropolitan portion of manufacturing production grew by 23 percent between 2001 and 2008.

Source: Bureau of Economic Analysis, U.S. Department of Commerce

Employment and Wages

Between 1990 and 2009, employment in manufacturing has declined by 39 percent in South Carolina, accounting for 12 percent of overall state nonfarm employment in 2009. Meanwhile, total state nonfarm employment saw an increase of 18 percent over the same period. On a metropolitan level, manufacturing employment declined in most of South Carolina’s metropolitan areas between 1990 and 2005, with the Charlotte-Gastonia-Rock Hill area reporting the highest decline (down 33 percent). However, two metropolitan areas did report increases in manufacturing employment during this period: Charleston-North Charleston-Summerville (up 9 percent) and Sumter (up 2 percent). Between 2005 and 2009, manufacturing employment fell further in all of the metropolitan areas located fully or partially in South Carolina. Sumter showed the highest decline during this period, falling by 32 percent, followed by Anderson (down 22 percent) and Augusta-Richmond County (down 18 percent). In 2009, manufacturing employment in the Greenville-Mauldin-Easley area accounted for 18 percent of the state total, the highest among metropolitan areas located fully in South Carolina. Greenville-Mauldin-Easley was followed by the Columbia metropolitan area, which accounted for 13 percent of total state manufacturing sector employment.

Statewide, manufacturing sector employment was 5 percent lower in the first half of 2010 as the same months of the previous year, on average. In comparison, overall nonfarm employment decreased by 0.7 percent on average during the same period.

Source: Bureau of Labor Statistics, U.S. Department of Labor

Source: Bureau of Labor Statistics, U.S. Department of Labor

Chart reflects percentage of total nonfarm employment

Statewide, wages paid to those employed in South Carolina’s manufacturing sector are not only higher than the overall average for all private employees, but have grown faster. Between 2001 and 2009, average annual pay for employees in the manufacturing sector increased by 31 percent, ending at $46,944 in 2009. In comparison, the average annual pay for all industries in South Carolina increased by 26 percent during this period, ending at $36,755 in 2009.

On a metropolitan level, metropolitan areas in South Carolina reported an increase in average hourly earnings for all private sector employees between 2007 and 2009. Florence reported the highest increase during this period, increasing by 15 percent. Florence was followed by the Charlotte-Gastonia-Rock Hill (up 7 percent), Columbia (up 6 percent), Charleston-North Charleston-Summerville (up 6 percent), and Sumter (up 5 percent) metropolitan areas. No wage 2007 wage data is available for the Augusta-Richmond County metropolitan area, though this area did report a 0.5 percent decrease in average hourly wages between 2008 and 2009.

International Trade

Manufactured Goods Accounted for 98 percent of South Carolina’s Exports in 2009

Between 2002 and 2008, international merchandise exports from South Carolina more than doubled, increasing by 106 percent. The leading manufactured goods export categories in terms of growth during this period were primary metal manufacturing (up 559 percent); electrical equipment, appliances and components (up 169 percent); transportation equipment(up 159 percent); machinery, except electrical (up 124 percent); and paper (up 119 percent). Manufactured goods as a percentage of total merchandise exports stayed steady during this period, accounting for 98 percent of total merchandise exports in 2009. Among non-manufactured goods exports, livestock and livestock products (up 949 percent) and waste and scrap (up 596 percent) showed high growth during this period.

After declining 17 percent between 2008 and 2009, South Carolina’s exports increased by 29 percent in the first half of 2010, compared to the same months of 2009. The leading export categories in the first half of the year were transportation equipment; machinery, except electrical; chemicals; plastics and rubber products; and paper. During this period, exports of manufactured goods also increased by 29 percent compared to the first half of 2009. The industry that saw the highest growth in dollar terms was basic chemicals, which increased by $344 million, or 102 percent, during this period. Basic chemicals was followed by motor vehicles; rubber products; other general purpose machinery; and resin, synthetic rubber, artificial and synthetic fibers and filaments. Together, these products accounted for more than half (51 percent) of the increased merchandise exports in the first half of 2010.

In 1999, South Carolina’s top trading partners were Canada ($2.1 billion), Mexico ($735 million), Germany ($651 million), Belgium ($351 million), and the United Kingdom ($326 million). The state’s primary exports to Canada consisted of transportation equipment (16 percent); machinery, except electrical (14 percent); plastics and rubber products (13 percent); chemicals (12 percent); and fabricated metal products (8 percent).

Ten years later, South Carolina’s top trading partners were Germany ($3.4 billion), Canada ($2.7 billion), Mexico ($1.1 billion), Saudi Arabia ($985 million, up from 24th place in 1999), and China ($867 million, up from 12th place in 1999). In 2009, South Carolina’s primary exports to Germany were overwhelmingly transportation equipment (89 percent). Between 1999 and 2009, South Carolina’s exports to Saudi Arabia increased by 2,140 percent, overwhelmingly due to increased exports of machinery (up 4,892 percent). During this same period, exports to China increased by 524 percent, driven largely by increased exports of transportation equipment, waste and scrap, and machinery.

Source: Bureau of the Census, U.S. Department of Commerce

Metropolitan Area Exports

On a metropolitan level, most of the metropolitan statistical areas located fully or partially in South Carolina saw merchandise export growth between 2006 and 2008 (the latest data available). At 77 percent, Greenville reported the highest increase in exports during this period. In 2008, exports from Greenville accounted for more than half (51 percent) of South Carolina’s state total, and consisted largely of machinery, except electrical; plastics and rubber products; electrical equipment, appliances, and components; chemicals; and transportation equipment. More than half (56 percent) of Greenville’s 2008 exports went to trading partners in the European Union, with an additional 22 percent to partners in the Asia Pacific Economic Cooperation (APEC). Two metropolitan areas saw declines in their exports during this period: Sumter (down 1 percent) and Myrtle Beach-Conway-North Myrtle Beach (down 6 percent).

Exports from all of these metropolitan areas went largely to trading partners in APEC and the European Union.

Data Sources and Additional Information

International Trade (Export) Data:

Domestic Data:

Additional Resources of Interest:

Downloadable Charts

Click each of the links below for a downloadable version of the charts in this overview:

Notes:

1. Prior to 1997, industrial sectors were classified based on the Standard Industrial Classification (SIC) system. After 1997 the North American Industry Classification System (NAICS) was used.

2. Manufacturing employment data was not available for the Florence and Myrtle Beach-North Myrtle Beach-Conway metropolitan areas.

3. The share of total state exports for a metropolitan area cannot be calculated for areas that cross state boundaries.

4. Export commodity and trade partner rankings for metropolitan areas are based off of data that is publicly available. In some sectors, data was withheld to avoid disclosing figures for individual companies.

5. For world region and trade organization definitions, see World Regions and Trade Organizations.

Prepared by the Office of Trade and Industry Information, Industry Analysis, Manufacturing and Services, International Trade Administration

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