Aerospace industry worth billions for SC economy> GSA Business

Correction: This article previously attributed the 2020 Aerospace Economic Impact Study to the University of South Carolina’s Darla Moore Business School. It has since been corrected to reflect that the SC Competitiveness Council commissioned and released the study.

Even before Boeing’s recent announcement to move additional production to North Charleston, South Carolina’s aerospace industry continued to drive employment and economic growth at a much higher rate than most other manufacturing sectors in the state, except the auto industry, according to a study commissioned and released today at the SC Manufacturing Conference by the SC Council on Competitiveness.

According to 2019 study data, the overall rate of employment growth in the state was just below 2.2%, while employment growth in terms of the central aerospace industry – that is, excluding military aircraft – increased 10 , 7% since 2009. Employment growth in the auto industry is rated at 11.1% growth, far exceeding the 1.9% growth in the general industry.

Boeing contributed 4.1% of the increase. In 2019, 22,785 people across the state were employed directly in the aerospace industry, but the ripple effect created by the industry’s presence must have indirectly helped to create 39,301 additional jobs. There are 62,086 jobs generated in total, as aerospace jobs tend to have a greater economic impact on the wider community than others, due to the potential for high wages and the creation of the supplier group sector in a geographic location.

“For every 10 jobs created by aerospace-related companies, we see another 17 jobs created in other parts of South Carolina as a result of these secondary multiplier effects,” said Joey Von Nessen, SC research economist at Darla Moore, at the University of South Carolina. Sul School of Business, adding that Charleston and Upstate lead in terms of concentration of aerospace core employees. “The aerospace industry has the ability to increase employment in a way that few other industries are able to match.”

South Carolina’s aerospace industry helps to sustain around 136,244 jobs in total and create an overall economic impact of $ 28.7 billion in the state. Currently, 57,870 jobs come directly from the sector and are paid with US $ 7.4 billion, according to the study. The sector’s tax revenue reached US $ 734.6 million annually, while its overall impact is expected to contribute US $ 14.1 billion to the Gross Product of the State of South Carolina.

The growth of aerospace companies also continues to expand over time at a rate of 5.8%, with private aerospace-based companies contributing 45.6% of the sector’s economic impact. Military manufacturing and other services make up the remaining 54.4%.

“Boeing is not the exclusive driver of these growth trends,” said Von Nessen. “We are also seeing considerable growth in supply chains in South Carolina and also considerable growth in defense contractors that are supporting aviation and aerospace military installations in South Carolina. Both elements are very critical to the growth of South Carolina. “

He said that for the state to gain an advantage in other aerospace clusters across the country, such as the state of Washington, South Carolina, it must increase its presence in the supply chain for auxiliary manufacturing and other aircraft parts. At the moment, the production of aircraft engines and engine parts is the strongest part of the industry’s growth, with an increase of 17.9% since 2010, followed by the manufacture of entire aircraft with 12.3%.

If the state’s supply chain were expanded to a level similar to that of Washington state based on its current level of manufacturing, South Carolina would see a 10% increase in overall aerospace employment growth or 6,438 jobs.

According to Steve Townes, CEO of Ranger Aerospace, the Southeast is the strongest aerospace cluster in the world in terms of supply chain growth and aggregation. South Carolina, located in a central location with access to a port, is positioned to be a hub for the region’s aerospace industry machine.

“I said something quite radical about five years ago,” said Townes during today’s talk. “I said that in 10 years, I said that the port of Charleston will look like Puget Sound. And I meant that figuratively about job growth and job migration. And what we’re seeing now: it’s Boeing’s smart business to do what it’s doing. It is also essential due to the overall impact of COVID across the air transport industry worldwide. “

Small and medium-sized companies are leading the charge in terms of aggregating the supply chain – or creating a regional aerospace cluster – that includes manufacturers and suppliers, as well as after-sales maintenance companies. Workforce development also serves as a cornerstone to help South Carolina become a benchmark in the international aerospace industry, starting with high school curriculum programs and – as pointed out by speaker Susie Shannon, CEO and Chairman of the Board of SC competitiveness – even aerospace exhibits at a children’s museum.

Since implementing the high school aviation curriculum four years ago, according to Townes, seven high schools now offer students the opportunity to immerse themselves in one of the state’s fastest growing industries.

“I think it’s really incredible,” said Stephen Astemborski, director of SC Aerospace, one of the board’s industry clusters, during today’s discussion. “We are not just a national leader; we are becoming international leaders, and I think this is just proof of the hard work that our state has done to build infrastructure, to attract companies, but it is really proof for workers who arrive day after day, whether they are building jets are either building widebody commercial aircraft or maintaining aircraft, adapting aircraft. “