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ECONOMIC DEVELOPMENT
‘Historic’ aircraft complex tops 2004 economic growth highlights
By Dennis Quick
Senior Staff Writer
Although the past year began with the Lowcountry losing a bid to lure Boeing Co.’s 7E7 Dreamliner jet assembly plant, a facility that would have created about 1,200 jobs, the Charleston region gained by winning the bid for a $560 million manufacturing center that will build 7E7 parts and employ about 645 workers.
On Dec. 1, Dallas-based Vought Aircraft Industries Inc. announced that North Charleston will be the site of Vought’s joint venture with Italy’s Alenia Aeronautica. The joint venture, Global Aeronautica, announcement is the third-largest publicly announced private-sector capital investment in South Carolina history. Only the 1988 announcement by International Paper in Richland County and the 1999 announcement by Michelin North America Inc. in Anderson County surpass it.
The site will consist of two 300,000-square-foot facilities in which fuselage sections for the 7E7 will be assembled. The two facilities will occupy 380 acres near the Charleston International Airport.
The Global Aeronautica deal is hailed as one of South Carolina’s largest economic development transactions in years. Not only does it help increase the personal wealth of Lowcountry residents—average annual salaries for Global Aeronautica workers will be $50,000, about 40% higher than the state average—the deal most likely will spawn other local businesses that will serve Global Aeronautica, start the beginning of an aerospace industry in the Lowcountry and boost the region’s housing market.
The past year saw the arrival of other businesses and the launch of new development projects to help the Lowcountry make significant economic development strides.
Angelou Economics
In August, the Charleston Regional Development Alliance hired Texas-based consulting firm Angelou Economics to do an $81,300 study on the Lowcountry’s business clusters—interrelated businesses and industries sharing markets, suppliers, technologies and employee pools. The cluster analysis will help determine for the region which businesses to recruit.
The alliance will use Angelou’s findings as a roadmap for luring businesses that pay higher-than-average salaries, which is the basis of the Alliance’s five-year plan, to be implemented in 2005. Angleou is expected to present its findings by the end of March.
Trade Center building
In August, North Charleston City Council approved plans to build a 20,000-square-foot World Trade Center building next to the performing arts center. The building will house the S.C. World Trade Center’s new offices, an international bank and offices for foreign companies interested in testing their products in the United States.
“Our ultimate goal is to raise incomes for South Carolinians by helping make South Carolina a haven for entrepreneurs,” explains Mark Condon, the trade center’s executive director.
North Charleston Mayor Keith Summey believes the World Trade Center’s move will also create jobs.
Noisette revitalization
The $1 billion, 3,000-acre Noisette urban redevelopment project in North Charleston finally showed signs of getting underway after three years of publicity. In September, the Noisette Co. began work on Riverfront Park, a 10-acre site along the Cooper River and the symbol of what Noisette President and CEO John Knott calls “the new American city” of North Charleston.
Located on the old Navy base, Riverfront Park will include a three-quarter-mile boardwalk, open spaces for picnics and public events, a restored Navy pier providing direct public access to the river, plus bicycle paths and an outdoor amphitheater. Sculptures and other art will be integrated into the park, which will be connected to the new Navy base memorial. Noisette hopes to complete the park in June.
September also saw the formation of the Noisette Urban Alliance, a consortium of manufacturers of sustainable building products and materials. The alliance’s purpose is to bring these manufacturers face-to-face with their customers—be they builders or homeowners—and to promote the health, environmental and cost benefits of sustainability. Experts believe Noisette’s focus on sustainability could attract sustainable-minded businesses to North Charleston.
Verizon call center
In October, New Jersey-based cell phone giant Verizon Wireless opened its much-anticipated call center in what was formerly the Montgomery Ward building. The call center has 800 employees and will hire 300 more during the next few months. Salaries start at $26,000 with full benefits.
Verizon’s building is part of North Charleston’s Carriage Hill Executive Center, a new office park that hopes to attract high tech, knowledge-based businesses that offer high-paying jobs.
Making history
Thanks to the forthcoming arrival of Global Aeronautica, 2004 was a “historic and monumental” year for Charleston County, according to Steve Dykes, the county’s economic development director.
Dykes also is “excited” about future growth related to the high-tech Space and Naval Warfare Systems Center in Goose Creek and the boost the Life Sciences Act and the Venture Capital Act could have for the biotech industry. That’s why he sees 2005 as a bright year.
Charleston Southern University economist Al Parish agrees.
“I would suspect that tourism, manufacturing and housing will all do well in 2005,” Parish says. “The national economy should provide a boost to our tourism sector, which is receiving more national exposure. The manufacturing sector is poised to get a real shot in the arm from the Voight announcement; I suspect new announcements of suppliers will occur in 2005 and firms will gear up to hire.
“Finally, while mortgage rates may rise a bit in 2005, housing should continue to do very well as our population continues to rise,” Parish concludes.
Dennis Quick covers economic development for the Business Journal. E-mail him at dquick@crbj.com.
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