[From the U.S. Government Printing Office, www.gpo.gov]
Economic Development Assessment
for the
H:AR-    OR  PE- ........  I
HARBOR PROJECT
Phase I of II
Prepared by

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In Cooperation with
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NOAA Grant # NA NA270ZO0105

TABLE OF CONTENTS
LETTER
EXECUTIVE SUMMARY

TRENDS AFFECTING DEVELOPMENT
Section 1
Section 2
Introduction ......;..
2-2
Competition .................
Initial Prospect Contact .........
Information Needs ............
Improving Probability of Success  . .
National Trends ...............
Plant Locations .............
Smaller Communities and Suburbs
Urban Decline in Central Cities
Corporate Downsizing .........
Flexible Manufacturing Networks ..
Industrial Development Bonds ....
NAFTA ..................
Power Industry Changing .......
Labor ...................
ISO 9000 .................
Union Presence Declining .......
Job Growth Generators .........
The Economy ..............
Defense Cutbacks ............
Service Sector ..............
Manufacturing Sector ..........
State Competition ............
Alabama ................
Georgia ................
North Carolina ............
.... 2-2
.... 2-2
.... 2-3
.... 2-6
.... 2-8
2-8
... 2-12
... 2-12
... 2-13
... 2-15
... 2-16
... 2-16
... 2-17
... 2-18
... 2-19
... 2-20
... 2-22
.. 2-24
... 2-25
. .. 2-28
... 2-29
... 2-30
... 2-30
... 2-32
... 2-35
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CHARLESTON HARBOR
Overview ..............
Location ...............
Government .............
Transportation ..........
Highways/Interstate ........
Climate ................
Colleges & Universities ......
STUDY AREA
Section 3
...... . 3-3
...... 3-3
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...... 3-4
...... 3-4
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Table of Contents - Continued
CONSTRAINTS AND POTENTIAL
Section 4
Bas Closure..........................4-2
Economic Impact - Charleston Arma..................4-4
Military Base Reuse ........................4-7
Organization .........................4-8
Planning .......................4-12
Summnary of Complete Military Base ..................4-16
Economic Adjustment Projects ....................4-16

INDUSTRIAL RECRUITMENT RESOURCES ASSESSMENT    Section 5
Workforce Talent Surplus.......................5-2
Infrastructure Availability.......................5-7
Water & Sewer.........................5-7
Electricity..........................5-11
Natural Gas .........................5-12
Port of Charleston .......................5-13
Real Estate Development Potential ...................5-14
Local, State and Federal Inducements ..................5-14
Federa Funding........................5-14
State & Local Incentives .....................5-17


BIBLIOGRAPHfY                                                                                                    Section 6
APPENDIX

TABLES AND GRAPHICS

Description                                                               Page

1. Initially Contact ......................................2-2
2. Who Makes Contact? ..................................2-3
3. Facility Siting Process ..................................2-4
4. Combined Ratings of Site Selection Survey ..................... 2-5
5. Identifying Competitors .................................2-6
6. Job Growth versus Tax Burden .............................2-8
7. 1993 Top Business Climates ..............................2-9
8. New Corporate Facilities and Expansion - 1991-1993 .............. 2-10
9. New Corporate Facilities and Expansions ..................... 2-11
10. Technology Driven Vertical De-Integration at IBM ............... 2-14
11. U.S. Exports to and From Mexico ......................... 2-17
12. Labor Union Membership ............................... 2-20
13. Labor Force Assessment Categories ........................ 2-21
14. Job Growth Generators ................................ 2-23
15. Reductions in Defense Outlays ............................ 2-25
17. Estimated Private Sector Job Loss .......................... 2-26
18. Select Key Industry Outlook ............................. 2-27
19. Trends in Selected Service Industries ........................ 2-28
20. Fastest Growing Manufacturing Industries in 1994 ................ 2-29
21. Ten Slowest Growing Manufacturing Industries in 1994 ............ 2-29
22. Tri County Region ....................................3-2
23. Occupational Employment ...............................3-6
24. Population Projections ..................................3-7
25. Educational Information .................................3-8
26. Labor Force ........................................3-9
27. Projected Growth Rates ................................ 3-10
28. Hourly Wage Rates by Occupation ......................... 3-11
29. Cost of Living Index - Charleston MSA ...................... 3-26
30. Employment Impact ...................................4-4
31. Payroll Impact .......................................4-5
32. Indirect Economic Impact ................................4-6
33. A Survival Guide to Base Closings .......................... 4-7
34. Base Closure Process ................................. 4-11
35. Planning Process .................................... 4-15
36. Former Military Base Sites in North America .................. 4-17
37. Summary of Completed Military 4-17 ....................... 4-18
38. Base Economic Adjustment Projects - 1961 to 1991 ................ 5-2
39. GSO - Target Industries .................................5-3
40. Comparative Analysis by SIC Code .......................... 5-4
41 Comparative Analysis by SIC Code - Manufacturing ............... 5-5
42. Major Employers .....................................5-9
43. Waste Water Treatment Summary .......................... 5-10
44. Water System Treatment Summary ......................... 5-11
45. Comparative Electric Power Rates ......................... 5-12
46. Ranking of Gas Utilities by State .......................... 5-13
47. Spot Market Natural Gas: Posted Price ....................... 5-13

EXECUTIVE SUMMARY
1-4

EXECUTIVE SUMMARY

Planning Services Group, Inc. (PSG) was given the charge to perform an Economic Development
Assessment for the Charleston Harbor Project for the greater Charleston area comprised of
Berkeley, Dorchester and Charleston counties. The study is a two phased assessment with the
following document representing Phase I. The evaluation process was centered around four
distinct steps: 1) Document National, Regional and State Trends Affecting Development, 2)
Research the Charleston Harbor Study Area and its Economy, 3) Analyze Constraints and
Potentials, and 4) Develop an Industrial Recruitment Resources Assessment. The crux of the
study, however, is centered around economic development issues, base reuse precedents and
some of the competitive features inherent to the Tri-County region.

In order to understand the forces at work that will shape the future economy of the Tri-County
region is important to identify the dynamics of the local economy. First, it is important for the
greater Charleston community to realize the premier position that the state economic
development agencies play in industrial recruitment. Over two-thirds of industrial prospects
contact the stte first. Usually the state has been asked to respond expeditiously to an inquiry
and the relative success of any one community will rest on its ability to respond quickly,
thoroughly and precisely according the requests tendered by the prospect. It is critical to
establish very close relations with the state economic development agency for future success.
By and large education and quality of life are becoming increasingly more and more important
and in many instances outweigh cost considerations.

More and more industries are being recruited to the South. In spite of what several studies have
professe regarding various incentives, the research literature demonstrates clearly that lower
taxes have created more job recruitment at a rate of 65. 0% higher than the higher taxed states.
Don't be fooled that industry does not look at excessive tax burdens as a disincentives. This is
merely propaganda promulgated by those states whose economies are hemorrhaging.
Furthermore, three major factors will influence site selection in the coming years:

* Just In time (JIT expectations will shift to the consumer
* Products will be massed customized
* Political policy will become more dynamic and unpredictable

In addition, smaller communities and suburbs are becoming more competitive than their larger
city counterparts due to trends in decentralization, technology, minimalist philosophies and
quality-of-life factors. As a result of this flight from the cites, urban decline is symptomatic of
the problems facing many large communities.  The greater Charleston region should be
encouraged by this trend.

Corporate downsizing and reengineering will continue to affect location decisions as a result of
increased global competition, lower profit margins, changes in technology and greater
effectiveness of production processes because of mechanical and robotics advances. Virtual
1-2

companies will become more and more apparent and the distinct lines between company
structures will become more fuzzy as the interdependence of manufacturing networks steadily
increae. The North American Free Trade Agreement will only serve to accelerate this process
even more.

A significant event on the horizon is the changing role of the electric power system. In the not
to distant future, companies will be able to purchase power from virtually any source in the
country to acquire the best deals. Simnilarly, the changing role of the American workforce will
require increase slill levels and productivity improvements to counter the exodus of U.S.
manufacturers shopping for cheaper labor costs off-shore. The challenge facing the Charleston
region, as in many areas across the country, is to drastically improve the educations process and
worker sldlls. Here again, the state can be instrumental in providing training sldlls; however,
only the local communities can solve the education dilemma.

Labor union clout has been declining over the past decade as smaller, leaner companies are
required to hire workers and maintain and environment that fosters flexibility, quality and
productivity. The Charleston region, as well as the state, enjoy a very low incidence of union
membership and activity which is mnost attractive.

A significant statement regarding the old adage that 80.0% percent of job growth is provided
by small industries is probably on e of the most damaging concepts that has come out of well
intended academic research. There is no evidence to support this statement. While small
business startups should be encouraged as a matter of goodwill and responsible economic
development strategies, they should not be favored at the expense of large industrial recruitment
prospects. The fact is that most jobs are provided by large companies and are usually better
paying with far greater security. If members in the community feel that they can curb the
pending economic challenges associated with the base-closure with a "grow your own"
philosophy, they will find that the problem will only worsen and deteriorate quickly. Large
companies must be recruited.

The national economy, as well as the Charleston economy, is in a state of flux and headed for
some very significant changes. Reductions in military spending will have the greatest impact
on the Charleston area - as have already occurred in other areas around the country. Areas
providing opportunities for potential recruitment due to expansions and/or relocations in the
coming years will include mnachine tools (SIC 3541), electronic components (SIC 367), surgical
appliances (SIC 3842), automotive parts and accessories (SIC 371A) and surgical and medical
instruments (SIC 3841). These industries range in growth potential over the next years from
7. 0% to over 24. 0%.


The recruitment industry by the Tri-County region will face stiff competition form the
surrounding states of North Carolina, Georgia and Alabama. Alabama's tax increment bonding
and revenue bonding programs are one of the most attractive in the country with only
Mississippi and Kentucky having anything similar. In addition, Georgia is matching many of
1 -
3

the job and investment tax credits that have been the forte of South Carolina for many years.
Furthermore, North Carolina, long averse to providing hard incentives, has been considering
passing legislation that would allow several types of incentives to compete with her more
generous neighbors.


The economic impact of the Charleston region due to the military is significant. At present there
are over 22,000 jobs that will be lost with a corresponding offset of only about 6,000 jobs from
NAVALEX and the military hospital. The economic impact annually in terms of lost wages
is staggering. Over $1.0 billion dollars in direct and indirect wages will disappear.

There is an abundance of precedents throughout the country where communities have
successfully used a realignment or base closing as an opportunity to stimulate economic
development. The attached document devotes and entire section to discussing the process to plan
for the pending closure as well as providing a summary of over 100 examples of such
occurrences. Probably the most significant information in this section is the contact at each
respective community who was, or still is, involved in the economic development activities.

The challenge facing the greater Charleston area is twofold. First the onset of the base closures
and realignments will create a vacuum that will be difficult to fill in the near future.
Additionally, the economy has traditionally relied on the military and tourism to provide jobs
and general funds for the local tax base. As a result, the Tri-County economy is imbalanced and
should concentrate its efforts not so much on recruiting industries that will be easy to attract but
devote considerable effort in attracting companies that can provide greater balance to the
economy in the long run. Arma where significant deficiencies exist include food & kindred
products (SIC 20), paper and allied products (SIC 26), printing and publishing (SIC 27),
Fabricated metal products (SIC 36), electronics and other electrical equipment (SIC 36) and
instruments and related products (SIC 38). It should be noted that fabricated metal products,
instruments and electronics are all poised for significant growth in the coming years.

Infrastructure capacity in the greater Charleston region is adequate, although the assimilative
capacity of the rivers will be a concern to large users who wish to perform their own primary,
secondary and tertiary treatment. It appears that this is a cause for concemn with many of the
existing industries. The electric power rates in the region are some of the lowest in the country
although natural gas rates are some of the highest. The relationship between these two energy
commodities is no doubt influenced by the fact that there is single ownership, distribution rights
and control by one utility. While natural gas can be purchased on the spot market and
transported at a reasonably low rate, most manufacturers will prefer to enter into long term
contracts instead. This is a problem in the region.

The availability of both CSX and Norfolk Southern to service the region is an outstanding
attribute. Both companies are considered premier operators in the rail industry who compete
actively against each other. The result is lower costs and excellent service. Of Considerable
note is the short-line rail owned by the S.C. Rail Commission. The ability of the state to recruit
1-4

rail dependent firms by providing an economic rate structure is a strength that is unique to the
region. Obviously, the port of Charleston only enhances these services. It is considered one
of the best ports on the East Coast.

Federal funding is available for continued studies and economic development activities from the
Office of Economic Adjustment. Additional funds can be obtained from a variety of sources and
are itemized on page 5-17. Finally, the region should look at the Section 4-1-170 of the South
Carolina Code of Laws and regulations regarding the establishment of multi-county business
parks were the unique economic incentives available to one county can be offered in the county
where the park resides, whether the latter is eligible or not.

The challenges facing the region are many; however, the opportunities are great to minimize the
impact of the pending closures. The success of this will require a better understanding of the
challenges facing the greater Charleston region and the magnitude of activity and effort which
will be required to effect change.
1-5

I
I
I
TRENDS AFFECTING DEVELOPMENT
. .      .
2-1

TRENDS AFFECTING DEVELOPMENT

INTRODUCTION

Understanding the trends affecting development must be considered in the context of how it
affects local economic development. It is critical to understand not only the advantages and
disadvantages of your particular region , but also identifying the strengths and weaknesses of the
competition. As a result, the following text will address trends from the viewpoint of both the
economic developer and the site selector.

Competition

Competition between development agencies is continually increasing in both the complexity and
sophistication of services offered to prospective clients. South Carolina's State Development
Board is recognized as one of the top economic development organizations in the country"2;
however, having an excellent state development group is not enough. It is crucial for local and
regional development agencies to realize: 1) who is contacted for information, 2) the types of
information required and 4) the conditions necessary to enhance the probability of success in
recruiting a prospect.


Initial Prosmect Contacts

State Development Groups are by far the preferred first point of contact during a site
search. According to a recent study performed to determine who is contacted first in the
siting process, 63.0% stated that state development organizations are the first point of
contact."2 As the following chart displays, a close working relationship between all
development agencies is necessary in order to recruit prospects successfully.


INITIALLY CONTACTED
State Development Groups ................................... 63.0%
Regional Development Groups ................................ 13.0%
Non-Metro Development Groups ................................ 11.0%
Metro-Area Development Groups ............................... 5.0%
Utility Companies ........................................... 2.0%
Others (e.g., banks, railroads) ............................. 5.0%

Source:  Conway Data Au,ey of corporate real estate e.ecutiva,Decamber 1992-January 1993.
Peremages do not total 100.0% due to rounding


This graph indicates clearly that a community that elects to pursue economic development
efforts without using all the available resources of the state, regional, utility and the
adjoining local development groups will probably fail. Even if a community has an
2-2

outstanding program with highly capable individuals, the statistics prove without a doubt
that the majority of potential leads will never materialize.

The above chart illustrates who is the first point of contact usually is; but, it does not
indicate who usually makes the initial contact on behalf of the prospect nor who provides
a referral contact regarding a potential contact. As the following charts illustrate, third
party consultants are playing a greater role in the process. Furthermore, it demonstrates
that no contact can be taken lightly.


WHO MAKES THE CONTACT?	WHO PROVWDES THE CONTACTS?

Company president or CEO ..... 48.0%	Referral from other development group...  46.0%	33.0%	21.0%
Real estate or Consg. dept...	22.0%	Unsolicited leter or phone call ........ 43.0%	37.0%	20.0%
Consu:am acting as agent...	16.0%	Referral from Consulant ................0%	46.0%	21.0%
Humtan resources dept ........ 2.0%	Advertisement response ..................0%	46.0%	21.0%
Other ....................... 12.0%	Direct-Mail response ....................0% 36.0%	54.0%

Source: Conway Data stuvey of economic developneum organizations, Januay 1993.

Information Needs

The allocation of resources necessary to pursue viable company prospects should be
reviewed periodically to determine the most effective and efficient means to promote
development. A tracking system dedicated to collecting data for later analysis in order
to gauge the performance of recruitment efforts and to provide statistical insight into key
recruitment activities will serve to focus development efforts. Powerful computer
programs are available now that have changed an arduous, time consuming task into a
rather routine administrative function.
Many development agencies have a problem understanding the information needs of the
client at a particular point in the site selection process. This is particularly true of
technical issues regarding specific information requested of the client. In general, the
information needs of the client begin with broad criteria that progress toward detailed
specifics as the study progresses. A failure to recognize at what point the prospect is
currently situated in the site selection process can greatly undermine the effectiveness of
recruitment efforts.

Development groups have a wealth of data available to promote their respective areas.
The amount and complexity of detailed information is an ever increasing phenomenon.
The combined resources of the state, local utilities, railroads and local development
groups has created a proliferation of site selection data that is extremely comprehensive.
Unfortunately, many agencies measure the effectiveness of their development efforts by
the volume and weight of the promotional literature that they disseminate. Very few
agencies understand that prospects find excessive volumes of information almost
overwhelming and at times disconcerting when the focus of their inquiry is very specific.
2-3

According to Fluor Daniel's Siting and Consulting Services Group, a typical site
selection study is a series of sequential events that occur in a logical and orderly
process"4 The following graphic illustrates the site selection process they use:






THE FACILITY SITING PROCESS
PHASE I    I           PHASE 11         I PHASE III
I
K
STE   \
AcouIsmoON )
ASSISTANCE /
 Objective
To negotiate the
beast financial
package for final
site and back-up
site and ensure
avelability of all
earvicet by
required date
OR DANIEL
 '

Objective
To evaluate Identified
locations and sites
In sufficent detail to
permit final location
decIsion
Objective
To Identify those
locatlons In a limited
number of atatewa
oeuntres that boat m~t
th obecats
FLU
C
information Needs Continuum
SPECIFIC
BROAD
Not only is it essential to understand where the prospect is in the siting process, it is also
important to understand the types of information that is needed. "Too many times state
and community economic development agencies provide information they feel is
important as a substitute for the information requested by the client.3

Generally speaking, the importance of specific location criteria usually depends on where
the prospect is in the site selection process. As the previous graphic illustrates, certain
information is needed at certain times in the site selection process. Inundating a client
with information regarding incentives or site data while ignoring other key information
needs is often construed as a lack of cooperation or an absence of the particular location
ingredient. A study performed to determine the relative importance of location factors
illustrate the importance of certain criteria:
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COMBINED RATINGS OF SITE SELECTION SURVEY
SITE SELECTION FACTORS
Labor Costs	90.3
Availability of long-termfinancing	88.9
Availability of skilled labor	88.8
Highway accessibility	87.1
Occupancy or construction costs	85.5
Energy availability	83.2
Tax Exemptions	83.0
Stte and local incentives	83.0
Availability of telecommunications services	80.7
Environmental regulations	77.4
Nearness to major markets	76.9
Low union profile	75.9
Availability of land	72.5
Right-to-Work state	70.6
Cost of land	70.2
Worker/technical training program	60.8
Raw materials availability	60.1
Nearness to suppliers	58.8
Accessibility to major airport	57.Z4
Availability of unskilled labor	54.2
Nearness to technical university	32.6
Railroad service	28.6
Waterway or ocean port accessibility	20.6

Allfigures are percentages of individuals reponding 'imponan' and 'very imponwa'.
See Appendis ?


QUALY OF LUFE FACTORS
Low crime rate	86.6
Health facilities	81.1
Housing costs	81.0
Ratings of public schools	80.5
Housing availability	76.8
Climate	62.0
Recreational opportunities	60.0
Cultural opportunities	59.3
Colleges and universities in the area	56.6

Source: Area development 1993 survey. Referene 1993 Site Selection Survey in Appendix ?.


The information needs of the prospect are straight forward and simple.  "It is the
information that has been requested" - at a minimum. Any other information, while well
intended, should not be an attempt to second guess or substitute the specific needs of the
prospect. It can be a difficult task to determine where the prospect is in the site selection
process, understand the technical requirements of their particular industry and answer
inquiries succinctly,accurately and in simple easy to understand terms. Nevertheless,
more information is not better and is actually detrimental if it does not address the
prospect's specific information needs.
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ImDrovine Probability of Success
Competition between development agencies is continually increasing with new entrats
causing a dramatic improvement of the quality and professionalism of economic
development.   The key to successful recruiting is more than simply providing
information. Understanding your community or region and all the inherent strengths and
weaknesses associated with it are equally as important. This basic understanding is the
first key step to assessing the competition in order to develop an effective counter-
marketing plan. The graphic
to the right illustrates a
schematic   representing   an
assessment and identification
of competitors. Column A
represents   the   general
information typically evaluated
when   looldng   at   one's
community." Essentially, this
is an assessment of the
economy, industry, market
potential, level of technology,
and local attributes.                                                      .dtn

The next column (Column B)                        E
represents a more regional
perspective which evaluates

4-1 ~ ~ ~    -       ... 4-
the potential synergies with
adjacent regions that have
either  similar or complementary  location  attributes. From  an   analysis of the
comnmunity, the region and adjacent regions the assessment identifies the potential for
investment by commercial and industrial prospects (Colunin C) to determine if a
community\region has the essential ingredients necessary to successfully recruit industry
and commerce. Column E is the crucial step in the assessment which is to understand
who the competition is and their focus. Typically, most development agencies do not
take a full accounting of their own strengths and weaknesses, and as a result spend too
much time trying to recruit industries that they have little chance of landing. As a result,
a significant number of communities end up targeting the same sectors, for example,
pharmaceutical, automotive, telecommunication, electronics and computers.'5 Most
development groups do not fully assess the competitive advantage their community
possesses so that the development st-rategies usually are neither well defined nor target
industry focused.
To successfully combat the increased level of competition, communities/regions need to
fully understand (in and objective and unbiased manner) their won community. This
must be accomplished first before any attempt is made to assess another competitor
2-6

community. The assessment must include both the positive and negative. Then, an
economic development strategy focused on the inherent competitive advantages of the
community will be an obvious and natural outgrowth of this process.
2-7

NATIONAL TRENDS
Plant Locations

The epicenter of new business activity seems to have shifted to the southern United States with
indications that the midwest will have a resurgence.) The reasons given for this shift vary
depending on whose asks the question. In years past, the prime motive to move south was
centered around labor issues and an avoidance or organized labor. Textiles were the catalyst
of this movement. In a few remote instances this is still true; however, important issues such
as work ethic, business climate, changing technology, education and quality of life are becoming
increasing more important. Whatever the reason, the fact is that industry shifts are occurring.
According to a business analysis performed by Business Week in February of 1994, job growth
in the low-tax states over the last eight years has been a stunning 65.0% higher than in high tax
states! The following table illustrates the creation of jobs from 1985-93 as compared to the
average state and local taxes as a share of personal income.

JOB GROWTh- VERSUS TAX BURDEN

ANNUAL PERCENTAGE CHANGE IN PRIVATE EMPLOYMENT FROM 1985 TO 1993
13.3%	12.1%          12.7%	16.0%	21.9%

Alaska	California Idaho	Colorado	Alabama
Arizona	Connecticut	Kansas	Delaware	Arkansas
Hawaii	Iowa	Louisiana	Georgia	Florida
Maine	Kentucky	Massachusetts	Illinois	Missouri
Minnesota	Michigan	Nebraska Indiana	Montana
New Mexico	New Jersey	North Dakota	Maryland	Nevada
New York	Oregon	Ohio	Mississippi	New Hampshire
Vermont	Pennsylvania	Oklahoma	North Carolina South Dakota
Wisconsin	Rhode island	Utah	South Carolina	Tennessee
Wyoming	Washington	West Yirginia	Texas	VirgLn

13.9%	11.6%	11.1%	10.5%	9.5%
AVERAGE STATE AND LOCAL TAXES AS SHARE OF PERSONAL INCOME IN 1992'

HIGH TAX	LOW TAX
STATES	STATES

SOURCE: Commerce Departmen, DRl/McGraw Hill. Business Week
__~.. * Entimates
Political and economic pundits can argue the effectiveness of a lower tax burden as a means of
stimulating economic development, but the statistics speak for themselves.

Other factors have contributed to the migration of industry to the south and southeast.
Obviously,the perception of key decision makers in the site selection process has a great deal
of influence. The following table provides interesting results regarding actual facility locations
versus the perception of corporate executives.
2-8

1993 TOP BUSINESS CLIMATES
1990-92
Facilities Per
1 Million Pop.
1
5
9
22
10
13
4
12
15
2
14
8
11
21
18
27
3
17
30
38
1990-92
Facilities Per
1,000 SO. Mi.
2
6
14
27
12
8
9
7
5
10
23
37
3
30
18
36
16
21
19
26
Caa
Survey
1
3
4
2
5
8
10
12
15
16
13
7
26
9
19
6
22
21
18
22
1992
Facilities
1
11
9
1
13
8
12
10
4
15
14
21
3
23
6
27
19
7
20
5
1990-92
Facilities
2
12
6
1
11
10
9
8
3
7
13
28
4
24
18
26
15
16
14
5
Overall
Ranking
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
State
North Carolina
South Carolina
Georgia
Texas
Tennessee
Indiana
Kentucky
Virginia
Florida
Alabama
Missouri
Nevada
Ohio
Iowa
Louisiana
Arizona
Mississippi
Wisconsin
Illinois
California
Source: Conway Data'a New Plant databue and June-July survey of corporale real estte director.

Of those manufacturers who plan to relocate or expand their companies in the next 4 years there
seems to be a definite preference for the South Atlantic and the Midwest"7 according to another
recent study. The reasons for this vary, but by and large labor cost and availability of skilled
work force seems to be one of the major forces shaping future plant locations. In addition,
lowering capital investment is another important factor due to the increased competitiveness
between states and communities regarding incentives. All this points toward the maintaining
lower costs and achieving higher quality to remain competitive. State and local developers are
not only competing among themselves, they are competing on a global scale.

The rankings in the above chart clearly illustrate that corporate executives expect significant
growth in the southeast much greater than any region. Similarly, the preceding chart illustrates
the increase in economic activity on a regional basis seems to indicate a cause and effect
relationship. Interestingly enough, the most recent survey to determine where new corporate
facilities and expansions took place from 1991 through 1993 clearly show that the trend will
probably continue with reasonable certainty.
2-9

New Corporate Facilities and Expansions - 1991-1993
93	91-93	1993	91-93	1993	93-93	1993
NEW	NEW	MFG.	MFG.	OTHER	OTHER	NON-
MFG.	MFG.	EXP.	EXP.	FACIL.	FACIL.	U.S.
91-93	1993	1993
NON-	TOTAL	TOTAL
U.S.
NEW ENGLAND
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
Region Total
MIDDLE ATLANTIC
New Jersey
New York
Pennsylvania
Region Total
EAST NORTH CENTRAL
Illinois
Indiana
Michigan
Ohio
Wisconsin
Region Total
WEST NORTH CENTRAL
Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
Region Total
SOUTH ATLANTIC
Delaware
Dist. of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
West Virginia
Region Total
EAST SOUTH CENTRAL
Alabama
Kentucky
Mississippi
Tennessee
Region Total
WEST SOUTH CENTRAL
Arkansas
Louisiana
Oklahoma
Texas
Region Total
MOUNTAIN
Arizona
Colorado
Idaho
Montana
Nevada
New Mexico
Utah
Wyoming
Region Total
PACIFIC
Alaska
California
Hawaii
Oregon
Washington
Region Total
US Totals
2	9	2	5	2	10	0	0	6	24
2	3	1	2	0	2	0	0	3	7
7	14	5	7	4	16	0	2	16	37
7	10	0	6	2	0	3	3	9	17
1	9	0	5	1	3	0	3	20	17
2	6	1	3	2	5	0	3	5	14
21	51	9	27	10	38	2	11	40	116
12	25	6	35	27	57
13	67	38	81	36	96
38	72	22	46	51	109
63	164	66	162	114	262

17	65	17	54	30	88
41	119	60	227	21	70
29	75	35	75	26	449
153	355	314	594	222	360
39	149	27	121	12.	62
279	763	453	1,071	311	629
3	5	45	117
5	16	87	244
6	15	111	227
14	36	243	588

5	18	64	207
2	24	122	416
2	14	90	199
20	41	689
	1,309
1	7	78	332
30	104	1,043
	2,463
23	69	22	61	23	54	0	5	68	184
10	34	6	31	6	18	0	2	22	83
8	25	10	21	10	15	0	0	2	61
46	106	35	107	14	53	1	3	95	266
3	13	6	15	2	5	1	2	11	33
3	13	6	15	2	5	1	2	11	335
5	14	6	18	4	10	0	0	15	42
98	273	85	256	60	157	4	12	243	686

1	6	0	3	1	6	0	1	2	15
0	.0	0	0	3	9	0	0	3	9
88	237	64	215	134	381	16	50	286	833
39	162	25	108	39	162	11	34	103	432
28	46	5	11	18	41	3	6	51	98
118	375	165	467	93	247	27	110	376
	1,089
58	144	55	172	18	54	22	48	131	370
40	108	53	134	51	143	7	26	144	385
11	33	23	60	5	16	0	1	39	109
383	1,111	390	1,170	362	1,059	86	276	1,135
	3,340

29	103	32	215	12	36	3	15	73	354
39	133	106	332	21	51	2	9	166	516
16	84	34	254	14	45	0	1	64	383
40	113	46	108	25	78	9	21	111	229
124	433	218	909	72	210	14	46	414
	1,552
26	64	36	90	4	15	2
27	93	128	246	11	43	1
26	86	23	103	8	30	0
120	356	92	319	174	378	7
196	599	279	758	198	466
	10
7	66	169
9	166	382
2	54	219
43	386
	1,053
61	672
	1,823
11	40	1	11	12	31	2	4	24	82
6	25	3	8	9	23	2	5	18	67
2	7	4	5	2	8	0	0	8	20
0	1	0	0	0	0	0	0	0	1
11	53	1	11	11	49	2	2	23	113
9	12	2	5	6	10	2	3	17	27
12	35	2	10	14	24	0	0	28	69
1	6	0	2	1	2	0	1	2	10
52	179	13	52	55	158	8	15	120	389
0	0	0
70	232	25
0	0	0
12	31	5
16	44	7
98	307	37
0	2	7	1
59	103	296	10
0	0	0	0
12	4	17	2
19	7	36	3
90	116	356	16
2	2	7
30	198
	587
0	0	0
7	21	60
10	30	99
49	251
	753
1,314    3,880    1,550    4,495       1,297    3,335
184      610      4,161     1,170
SOURCE:	Sito Slectica Magazine, Fdebruay 1994, pp 19.
NOTE:	NON-U.S. facilisa     bolakn oca  sepmatly Toe analysls ptpees. Hower, NON-US failites abo are included in the talos for NEW MFG., MFG., MFG.
2-10

EXP. and OTHEI  faeiltias. a  well as  in tl omlUl tols for 1993 and
1991-93.
Faci I ties and
1991-1993
NUMBER OF FACILITIES
CThouaancd)
2
New Corporate




0
Expans ions
3
I


el=
._
Now Sg land

Mlddle Atlantic

Eat Nrth Centra I

West North Central

South Atlantic

Est South Ctantral

West South Cntra I

Mountrln

ctif ic

 _-
-
___
mi -
- I

- _
A recent study by Barkley and Hinschberger confirms this continuing trend stating that
"locational changes from traditional industrial areas tend to favor the south and the West"s and
will continue to do so for the next decade.

As few as 15-20 years ago most site selection decisions were based on costs and cutting costs
meant cheap labor, utilities, transportation and taxes. Today, however, location factors are
shifting from quantitative issues to qualitative issues. These issues include labor skills,
experience and attitude, quality of life, business climate, political risk, government regulations
and customer requirements.24 According to Shriner of PHH Fantus there are three major issues
that will influence future site selection decisions:

*      Just in time (JIT) expectations will shift to the consumer. As differences between products and
services continue to evaporate, customer service will even more important. Customers will have
to be serviced overnight which will require multiple, interdependent production/service centers.

*       Products will be mass customized. To remain competitive, organizations will need to deliver
precisely what customers want. This will in turn require far more interaction between product
design and production. Organizations will require extreme flexibility of all employees and
management in adapting to near constant change.

*       Political policy will become more dynamic and unpredictable.   Continually changing
government policy can put unwary organizations at risk
2-11

Smaller Communities and the Suburbs
A new trend is emerging in corporate locations and relocations. This trend or concept
is called "edge cities."5 It includes a subset of about 200 to 300 small and mid tier
cities that are becoming significant location alternatives in preference to major
metropolitan areas. According to a book called The New Corporate Frontier: the Big
Move to Small Town U.S.A5, four significant features characterize this phenomenon:



*      More and more companies are locating in small towns. That location pattern reflects the larger
global trend of decentralization, political, economic and organizational power.

ï¿½      Technology is another major factor facilitating the move to small towns.  A new electronic
heartland is emerging, where high powered technology allows companies in even the remotest
locations to careful monitor world-wide operations

*      The small town location strategy reflects the minimalist revolution, the recognition that size and
verticality are no longer automatically positive attributes.

*      The proximity of the company and community allows firms located in small towns to more directly
address quality-of-life problems and issues.

No longer are large metropolitan areas such as New York, Boston, Los Angeles,
Houston or other large conurbations considered the standard by which communities are
measured.

Urban Decline in Central Cities

Economic conditions in the largest urban centers have been and are continuing to
deteriorate. As of October 1993, the unemployment rate in the nation's largest 25 cites
stood at 7.8% compared to a national average of about 6.4-6.5%?   Lost jobs in these
same cites is estimated to be approximately 850,000 over the last four years.

Large cities face two disadvantages in attracting jobs today. The first is the ever upward
spiraling level of competition from the states which have a tendency to lure
manufacturers to more urban or rural areas. Fiscally troubled cites have trouble
matching the incentives offered by competing states. Since 1980, federal aid to cites has
been sliced in half from $47.0 million to $24.0 million. This decline has caused an
exodus of residents which has further compounded problems by further erosion of the tax
base. In 1980, cities derived 63.0% of total revenues from local sources. This has
grown to about 71.0% today.

The second problem, a direct result of economic erosion of the cities, is crime. The
crime rate was 62.0 higher in the major cities compared to the national average. This
2-12

difficult problem to correct is, nonetheless, an essential ingredient in stemming the flow
of urban decline for cities wishing to promote economic development. Referencing
Appendix I titled " 1993 Site Selection S urvey ", 85. 0% of respondents con sidered a low
crime rate either very important or important.

Corporate Downsizing and Restructuring

The corporate buzzword for company restructuring these days has been called "re-engineering,
downsizing, streamlining" and a host of other names which all mean the same thing. companies
of all sizes are looling for "salvation not just in new locations and smarter workforces but in
the reinvention, or reengineering of how they produce their products and relate to their
customers. "I Greater emphasis has been placed on total quality management, customer service
and increased competitiveness in the market place. Corporate America is constantly searching
in an effort to streamline operations to increase profitability and competitiveness in the
marketplace.

"The investment boom of the 1990's has been a distinct anti-job bias. A lot of the spending has
been for labor saving, productivity enhancing and information technologies. "20 The trend for
many existing industries is to incorporate a relocation into the their quest for achieving greater
competitiveness. Opportunities present themnselves to economic development professionals for
companies who have announced or who are potential candidates for reorganizations and\or
restructuring.
There are various reasons for industry restructuring with the following among the most
prominent19:

*	Increased International trade has exposed consumers to a wide variety of products.

*	Increased competition has reduced profitability, and thus the availability of capitalfor integrated,
mass production methods, an alternative most advantageous to the specialized producer.

*  Technological change and the changing preferences o the consumer have greatly shortened the
product life cycles of many products.

*   he diffusion of microprocessors and robotics technology has reduced the minimum efficient size
of plants with respect to employees.

"American manufacturing is restructuring toward smaller, more specialized firmns. This shift
toward vertically disintegrated organizations and small batch flexible production techniques has
altered the input and location requirements of firms. A greater premium is now placed on labor
and proximity to markets and business services." 18

Unfortunately, one of side effects of the last decade has been the diminishing role of skilled
workers. Examnination of the table on page 2-27 titled "Select Key Industry Outlook" shows that
the only industries showing substantial gains are primarily in the services sector, although health
2-13

care, softwareldata processing, pharmaceutical and food\tobacco have shown modest increases.
The profile of job creation in the United States in the last decade has been skewed toward low
value-added services with low pay, poor benefits and little knowledge generation.2'

The best analogy of what is happening in industry is the representative graphic below. At one
time IBM was a totally vertically integrated industry with research and development,
manufacturing, sales and other organizational and operational functions completely contained
within the IBM corporate structure. They produced their own equipment,wrote their own
programs and were almost a virtual monopoly In 1975 IBM mainframes required the total
commitment of user resources toward IBM product support. Of course, in the 1990's, personal
computers and the proliferation of quality competition has totally restructured the industry.
Changes in technology have not only changed the market place, it has changed the way IBM
must conduct business if it is to survive. This same vertical deintegration has happened in the
automotive, heavy equipment and electronics manufacturing sectors and is steadily gaining
momentum in the non-traditional sectors such as pharmaceuticals and biotechnology with contract
research organizations(CRO's) and contract manufacturing organizations (CMO's).

Technology Driven Vertical
De-Integration at IBM


Intel CPU
WordPerfect	IBM
Peripherals    Applications	Assembly/
Applications	Sales
Operating SysternS
CPu
Quantumn Drives   Microsoft OS
Mailnframes	PCs
-1975-	-1990-
2-14

Flexible Manufacturing Networks
A manufacturing network is a group of firms that cooperate in order to compete - that
collaborate to achieve together what each cannot alone. While they have not materialized in the
classic sense in the US economy, they are a reality in the most prosperous regions of Europe.
For example Jutland in Denmark, Saarland in Sweden, Baden-Wurttenburg in Germany and
Emilia-Romagna in north-central Italy. These regions are dissimilar in their cultures, legal
systems, politics and patterns of industrialization."5

Economics in the United States has been dominated by the concept of mass production that
achieves stability in fthee ways:

*	Its very size maximizes economies of scale in production and commercializtion.

*	It is powerful enough to create demand for the products it supplies, using
sophisticated marketing strategies.

*  Its high and predictable rate of profit enables it to invest steadily in the
development of new products and labor-savings technology.

As discussed in the previous paragraphs, downsizing is the result of the ever present onslaught
of technology and global competition that has made obsolete the notion of standard-product life
cycles and self contaned US dominated markets. The principles of achieving "flexible
manufacturing networks" is centered around the following concepts3

BENEFITS OF FLEXIBLE MANUFACTURING NETWORKS

*	Share the mounting costs of research and development,
*	Meld capabilities to produce new goods and services,
*	Aggregate production to serve to serve large markets
*	Reduce costs through joint purchases of raw materials or management services
*	Acquire the expensive technologies they all need, and
*	Incrase market share and export earnings

ACTION STEPS TO ACHIEVE CONCEPT IN THE US
*	Sectoral research to target potential networks,
*	Identify and training 'brokers' who are capable of bringing firms together to face and solve
commnon problems,
*  Public-private cooperation to create new industry 'hubs' - the sectoral service projects around
which manufacturing networks coalesce.
Examination of the previous chart showing the deintegration of IBM as well as knowledge of
the advent of automotive assembly versus manufacturing is testimony to the validity of this
concept. It would be wise for communities to substitute the word "broker" with the word "local
economic development professional". No longer can a community recruit firms to locate in their
2-15

community simply by offering cheap land, taxes and labor. Instead, communities must sell those
factors that provide an advantage to manufacturers wishing to compete in a global economy.

One simply has to review relatively recent economic historical developments to understand that
this concept is not as new as they may seem. The Silicon Valley is an example of the
proliferation of similar industries that thrived due to both formal and informal manufacturing
networks. In addition, the Boston, Massachusetts region has shown a concentration of biotech
startups and joint-ventures that have been the result of both intellectual concentrations and
business research and development. Finally, the multitude of automotive suppliers along the 1-75
corridor in both Tennessee and Kentucky are the result of automotive assembly practices of
Toyota and Nissan as well as the presence of GM and other manufacturers in the region. The
only difference is that the impetus for this development trend occurred as a result of business
and industry initiatives as opposed to a public policy statement to pursue "flexible"
manufacturing network" development.

Industrial Development Bonds

The United States Congress passed the Omnibus Budget Reconciliation Act of 1993 on August
5, 1993 which restored the authority for fully tax-exempt manufacturing industrial revenue bonds
(IDB'S). Industrial Development Bonds have a ceiling of $10.0 million far short of the $20.0
million limit ffany had hoped for. A new provision waives the requirement that the bonds must
be issued within one year after the facility is placed in service. Specifically, the provision states
that the one-year placed-in-service period does not expire before January 1, 1994 for property
with respect to which this one year period otherwise would expire after j une 30, 1992 and before
January 1, 1993. The restoration of IDB's will be retroactive to July 1, 1992. It should be
understood that these bonds are no longer available to the banling industry and that the recipient
of the bond cannot have total investment of over $10.0 million dollars and must pass the
principal benefactor test.

North American Free Trade Agreement

According to Gary C. Hufbauer and Jeffrey J. Scott of the Institute for Intemnational Economics
a net increase in American jobs will be realized amounting to about 170,000.' Their rational
is in order for the United States to be more competitive globally, U.S. firms will be encouraged
to make capital investments. Even though much of this investment would be in Mexico, the
investment would be concentrated in the field of machinery and other capital equipment.
Consequently, greater exports to Mexico and correspondingly new jobs in these sectors. The
following graphic illustrates certain broad product categories expected to have significant growth
rates to the year 2000?1
2-16

U.S. Exports to Mexico

lI            I I  I
- Q-.-  t








I.1	I,    ~ I
ILl=	=-
*a1wV












,g I..
MM a     ,        49nn .
U.S.  Exports from Mexico









rcct__.. _.__ _



.... g.a.l
_-_t~~~~~~I *.                            S..
. ï¿½           _    _ w m	4,            I.
MM"" i	I.I
4.           ..       *.R
Nofte: AveraoSe growth Rates (percent) 1993-2000	Note: Average growth Rates (percenm) 1993-2000
Source: DRI McGraw Hill	Source: DRI McGraw HillU
Within the United States, industries along the border will probably gain the most from NAFTA.
It is expected that those regions of the United States with higher than average concentrations of
labor intensive manufacturing sectors may have limited growth opportunities.16 This will
probably affect parts of New  England and the southeastern United States.   Traditional
manufacturing sectors such as textiles, leather and lumber will be forced to compete with low
cost Mexican labor.

NAFTA will create the world's largest market with a combined 6.5 trillion economy and 370.0
million people. This should accelerate the growth of U.S. Exports to Mexico.

Power Industry Changing

Large users of electricity may have the potential of locating in one state (such as South Carolina)
yet purchasing power not from the local utility, but from a low cost producer in another state.
This concept is known as "retail wheeling" and has been a considerable source of debate with
the passage of the 1993 Energy Policy Act (EPACT). Retail wheeling is somewhat analogous
to what is currently in place with the natural gas industry. In this scenario the end user
purchases natural gas on the spot market at a given price per therm and pays a transportation
fee for transmission of the gas along existing pipelines. In a similar fashion, it is assumed that
large volumes of electricity will be purchased from utilities and transmitted across existing
transmission lines with an associated fee.

The Energy Policy ACT specifically forbids the federal government from ordering "retail
wheeling". The act, however, did not specifically spell out whether state utility commissions
have the right to order retail wheeling without specific enabling legislation.7 It is expected that
the states will take up the issue which may lead to a patchwork of experimental programs among
and within states. Nevada lawmakers recently passed legislation which ordered the public
service commission to consider retail wheeling. In Michigan, an administrative law judge's
opinion in a case before the state regulators has questioned whether they have the authority to
2-17

order two detroit area utilities to create retail wheeling tariffs.
Law makers and utility regulators are currently considering retail wheeling in California, Illinois,
Massachusetts, New Mexico, New York, Pennsylvania, South Carolina and Texas.
The problem now is one of regulation jurisdiction. According to the National Association of
Regulatory Utility Commissioners, "It's very unclear as to who is supposed to have regulate
what, and how in the way of direct transmission service by an electric utility to an end user or
a group of end users."`7

The states that are prepared to address this issue early up in the event that retail wheeling is
allows will have a tremendous advantage recruiting and attracting energy intensive users,
provided the toLal mix of location criteria are acceptable. In ten years it is expected that no
significantly sized industrial customer will be served under the regulatory format as we know
it. Instead, they will be negotiating contracts much like they do now with their telephone service
now.'0


Labor

Labor issues are not only a regional concern but a national one as well. Changes in the United
States industrial composition and global competition coupled with advancing technology and
corporate restructuring drastically affect the supply and demand curves of the U.S. workforce.
According to a series of Wall Street articles there a four imperatives that will mold the contours
of employment in the 1990 's25:
0 Global Competition







a Technology Applications





* Reengineering/restructuring
Lower compensation . levels combined with
reasonable work-force quality will expand the
movement offshore. Well trained professionals,
especially scientists, engineers and computer
specialists are available at a fraction of their U.S.
counterparts in countries such as India, China,
Malaysia, Eastern Europe and Russia.

Increases in technology is drastically reducing the
need for workers in the distribution, manufacturing
and service sectors. Increased automation is not
only increasing productivity, it is also decreasing
the demand for corresponding employment growth.

Restructuring due to str-uctural shifts in the industry
(i.e. defense industry shrinkage, shifts away from
mainframes,etc..) has cut out a significant number
of jobs.   In addition, reengineering leading to
flatter, less hierarchical organizations with less costs
2-18

and increaed profits are gaining impetus and being
encourage by stockholders and Wall Street
indicators.
* Temporary Work-force              Employment  at  temporary  help  agencies  has
increased by pearly 250,000 over the past year
(1993). And the trend is not reserved only to
clerical and low-skilled jobs.

The implications of the four imperatives portend the areas where economic development efforts
must focus. Increased automation as a result of technology and the increased opportunity for
lower cost offshore manufacturing capabilities are steadily replacing low slilled and semi-skilled
manufacturing jobs in an ever-increasing insidious fashion. The future for low skilled and semi-
skilled jobs is not good in spite of recent projections of increased hiring. According to
Manpower, Inc. 'hiring in U.S firms is expected to reach the highest level in five years by the
second quarter of 1994""3   The  most prominent gains are expected to be in vehicle
manufacturing, heavy equipment and aircraft manufacturing. This increase demand for these
types of labor will full states into thinking that economic development efforts with regard to
work skills development can take a temporary respite. In contrast, the increased hiring activity
will only be a short lived occurrence. Low sldlled and semi-sldlled manufacturing jobs are
migrating offshore or attributing their demise to increased technology. Emphasis on upgrading
the technical sldlls of the existing workforce through increased investment in vocational
education and technical training will become an imperative. States and communities who invest
in education, particularly regarding advanced technology processes and control systems will reap
the benefits of this foresight.

ISO 9000 Certif'ication

Increased interest in quality management is a key interest to companies* wishing to relocate or
expand. The latest quality initiative is the ISO 9000, developed by the International Standards
Organization in 1987 and adopted by the European community in 1990 in an attempt to
standardize the many different product-certification criteria of its member countries. In the face
of globad competition, many American companies will have to gain !SO 9000 certification or risk
being shut out of the enormous European market. There are only a few hundred U.S. firms that
have ISO 9000 certification compared to tens of thousands in Europe. ISO 9000 standards
require that suppliers establish and maintain procedures to identify training needs and to
implement work-force training programs for all personnel who perform activities that may affect
quality. In those states that have an active jobs-training program integrated closely with an
effective vocational training educational infrastructure, bridging this gap will be relatively easy
even for smaller companies with limited resources. The same cannot be said for those states that
do not.
The ISO initiative may not provide sufficient justification for the restrcturing of local and state
educational programs in and of itself, however, this is one of the many initiatives that is slowly
2-19

but steadily leveling the playing field against the United States in the global arena. Heretofore,
U.S manufacturers have controlled the technology as well as the inputs into its development.
This has already begun to change and will only accelerate in the future.

Sobering statistics that should cause local and state governments cause for extreme alarm are
those two statistics:

1)     25.0% of the U.S. workforce lacks the basic reading, writing and math skills
necessary in today's market.

2)     More than 20.0% of Americans of working age have failed to complete high
school.
These two factors alone are an embarrassing indictment of the U.S. labor force and education
system when compared to other industrialized nations.

Union Presence Declining

At the end of World War II, union members accounted for more than 35.0% of all employed
Americans. That figure stands at about 16.0 percent. According to Leo Troy of Rutgers
University, labor union membership will decline to some 7.0 percent by the turn of the
century.26 If one takes an even closer examination of union membership, only about 11.0% of
the private industry workforce is organized. The American Federation of State, County and
Municipal Employees (AFSCME) and the American Federation of Teachers (AFT) makes up
the other 5.0%.
Labor Union Membersh i p
Canrm 'llll-l2l

-a=X .2  -111  Ws=
p













S To1oe ffp. s l                    l

AutO, AWO.s   & .V. lo        p   .  f_

M. Fd. of Toh.r.bw

Brot   h. of Eloc. |t             km_
'.'	o. '.	u ., I 11 fl

""'-	n_r-l	_-   flBlfl
2-20

Examination of the above chart shows the general trends in the traditional private sector
manufacturing labor representation ranks. United Food and Commercial (UFCW), Auto,
Aerospace and Agricultural Implement (AAAE), International Brotherhood of Electrical Workers
(IBEW), Machinist and Aerospace Workers (MAW) and the Unites Steel Workers have all
shown a steady decline since 1981 - 1991.

In spite of the decline of union membership and the perception of diminished clout, this factor
is still important for manufacturers. In fact, it's more important now than ever. The increased
competitiveness between firms requires a high degree of flexibility and mobility. Even though
membership is declining, the importance of organized labor as a critical site selection factor is
becoming increasingly more important.

Typically the types of data required and the level of investigation effort when assessing the labor
force include 7 broad areas as indicated below:z



LABOR FORCE ASSESSMENT CATEGORIES
Salarv and Benefit Practices
Private Surveys
Bureau of Labor Statistics
National Data Services
State & Local Surveys
Proprietary Data Base
Labor Force Character
Population
Work Force Demographics
Employment
Unemployment
Skill Base
Industrial Mix
Companies Present
Emp. Service Registrants
College Graduates
Vo-Tech Graduates
Local Quality Programs
Work Force Flexibilitv
Local Mfg. Techniques
Labor Laws
Strike History
NLRB Election Results
Union HQ's
Local Quality Programs
Transfers and out of
Area Recruits/New Hires
Alternate Emp. Opportunities
Housing Availability
Cost of Living
Educational System
Advanced Educational Opportunities
Health Care
Quality of Life
Crime
Labor Oualitv/Productivitv
Intercompany Comparisons
Experience of Local Mgt.
Testimonials
Trahnine Sunoort
State Programs
Local Facilities
Relocation Expenses
While all these factors are important, "workforce flexibility" and "labor quality and productivity"
are key indicators of the ability of the indigenous workforce to change, adapt and grow within
the dynamics of the market place.

It has been stated that changes in the "business world mindset - cooperation instead of
confrontation, improvement over enforcement - are combining to render traditional unions
2-21

obsolete.""8 Mounting evidence, however, contradicts this assertion. The perception that the
current Clinton Administration is "labor friendly", and the recognition that organizations efforts
will have to change with the times is creating a "new breed of labor organizer"'7 The AFL-CIO
has trained over 160 college educated "union recruiters" in 1993 whose methods have become
more sophisticated and aggressive. The statistics for union membership will change; however,
the importance of maintaining flexible workforce environment may be the most important issue
facing manufacturers in the future.


Job Growth Generators

A question that has been the source of considerable debate in communities across the United
States for the past decade is "Should we recruit large companies or stress the grow your own
economic development philosophy'. This same question should be asked in the Charleston
region. The widely held notion that small companies amount for over 80.0% of job growth in
the United States is simply not true'. Unfortunately a study by David Birch, an MIT researcher
in 1987, concluded that 88.0% of all jobs generated betwe'en 1981 and 1985 were spawned by
companies with fewer than 20 employees3. Since that stunning announcement, a flurry of
economic development policy initiatives have ensued to promote the development of small
business. While this is commendable and, in the opinion of the consultant, should always
remain a prime economic development policy objective of Charleston, it should not be
emphasized to the detriment of policies that target large manufacturing firms. Several studies
performed over the past 5 yeas have come to the same conclusion - large firms not only provide
over 70.0% of new jobs but the new jobs provided by these firms are on average higher paying
with better benefits and greater job security than their smaller company counterparts."9

The implications of this study are clear, not only for Charleston, but for the surrounding
counties as well. The greatest gains in job growth will be achieved through the active
recruitment of firms who employ over 100 employees. Examination of the following graphic
points out, even to the cynic of these studies, that regardless of how you define a "small versus
large company", most jobs are in fact the result of large companies.
2-22

Job Creation 1972 - 1988
Companies with less
than 50 employees
Companies with greater
than 500 employees
Companies with less
than 500 employees
Companies with greater
than 50 employees
Source: Harvard Business Review, May-June 1994
FDGV-MKSV\1 1 1\204\05509002.DRW-1 09064

The Economy
"The United States economy is not as robust as in prior years. Twenty years ago, the United
States was still the world's dominant economic power. Now it is under challenge as never
before from extremnely able foreign competitors (principaly Japan). United States commercial
manufacturing is particularly under siege and will be hard put due to additional pressures as a
result of defense spending cutbacks to take the place of defense industries, which are heavily
tilted toward  manufacturing.    Declines  in this sector are particularly costly because
manufacturing provides well paid jobs, supports mostly privately funded research and
development (R&D) and domninates international trade "I According to the Institute of Trend
Research, the period of 1993 is a period of consolidation between two unequal rising trends.
They project that there is a strong probability of significant economic gains in 1994 and 1995;
however, 1996 and 1997 are likely to be years of back to back recession. Their advice to
industry is to reduce debt and avoid over-expanding resources in 1995, and to reduce debt as
much as possible between now and early 1996.

Business investments in new capital equipment and growth in demand for consumer durables are
the major forces that will drive. manufacturers real shipments in 1994 to the fastest rate of
growth in 6 years. In addition, shipments of instruments and medical equipment will contribute
to an escalation of manufacturing growth in 1994.

Factors considered to be the key constraints to combined growth in the United States are:


* Further corporate restructuring, limiting growth in employment and wages
(related to this are uncertainties about the costs of businesses associated with the
proposed health care reform package):


ï¿½ Continued weakness in the commercial real estate market, which was heavily over
built in the 1980's.


ï¿½ Continued cutbacks in defense purchases, possibly on an accelerated basis, and
limitation on spending by governments at all levels due to budget constraints; and


* Weaker than expected recoveries in the economies of some major U.S. trading
partners, especially Japan and Western Europe.
2-24

Defense Cutbacks
The dissolution of the Soviet Union and the end of the Cold War have significantly affected
defense needs. This reduction in defense spending will have a dramatic affect on many state and
local economies. Approximately half the defense related job losses in the United States are in
eight states and many communities will be devastated by current and proposed military base
closings. The following graphics indicate the level of defense spending cut backs and the
private-sector job losses by category:

From an national perspective,
comparatively   speaking,   far
greater job displacements occurredRectosTnDeneOtay
during 1985-1989. During this
period significant structural shifts
in the economy occurred which
resulted in 9.2 million workers
losing their jobs due to plant
closings, relocations, elimination	1
of a position or shift, or slack	=1
work.3'The Office of
Technology Assessment estimates
that defense related job losses
from 1991 to 1995 including ffie
armed forces and the Departmnent          Me III                         ftrOlyUCuel
of Defense employment will
approximate  1.4 million.   The
Defense Conversion Commission,
however, estimates more
conservatively that about 960,000
private sector jobs will be lost
between 1991-97.32 From this viewpoint the reductions do not seem as ominous. This is little
solace for communities that will be affected. Nevertheless, from a comparative macro-
perspective the cutbacks are not as dramatic they seem. The following graphic illustrates the
private sector job losses that will be most affected.

Those communities who experience massive layoffs in the private sector froni companies losing
large government contracts as well as communities whose economic base consists of
manufacturing and service sectors dedicated to supporting the operations and maintenance
activities of a military base will suffer the most with the former will be much more dramatic that
the latter.

The severity of economic impact will depend to a large degree on the industrial diversity of the
affected community and the amount of planning which has been initiated to absorb displaced
workers. This includes both economic development and recruitment efforts and the conversion
2-25

of  military  oriented
industries/facilities to fulfill a
private sector needs. Phase II of
this study will address suggestions
for ways to adjust to the loss of
jobs   as	well	-as	potential
utilization	of	the	remaining
facilities. There is an abundance
of examples and precedent setting
experiences throughout the United
States of military conversion
activities   that   have   been
successful.
Est imated Pr Tvate-Sector Job Loss
issi31kw7 by Owuoolonti  t
M rtinAIls  C3.1M

AMln, &gwt CIN..4h





awgc C5.4RO \


TE'1O1GArt5U& kielM
8~~~~Eno. & tki
tIUI C1,t.




BMGLULlvdvmat. 02.1.)
ClroiiOnl Prod. C2I.
In addition, there is a considerable                                       ACu IlWar.."try (o.
level   of   Defense   Economic                                       . ',nF.,rt'c-t*rWLa,. C17.=
Adjustment Programs (See
Appendix   ?)   that   provide
information, planning assistance
and grants to assist in the
transition. For those communities
who take advantage of the
available funding and link into the information network on how to best utilize the infrastructure
left behind, there will be unparalleled opportunities. In many cases the infrastructure left behind
such as airports, docking facilities, buildings and low-cost or free land is an asset that would
probably never have been funded on its own. Furthermore, the specialized skills inherent to
many military activities are another asset that can greatly enhance economic recruitment and
development efforts.
2-26

SELECT KEY INDUSTRY OUTLOOK
Thousands of 1993
$'s per worker
Pr6ductivit
1989      1994
Millions $
Output
Sector                                   1989      1994
Employment
1989     1994
MANUFACTURING
Motor vehicles & parts
Defense
Machinery
Steel
Chemicals
Food & tobacco


HIGH TECHNOLOGY
Computers & office equipment
Software & data processing
Semiconductors
Telecommunications
Pharmaceuticals


NATURAL RESOURCES
Energy
Agriculture
Forest products


SERVICES
Retailing
Wholesaling
Health care
Transportation
Restaurants
Utilities
Entertainment


FINANCE
Banking
Insurance
Securities
Real Estate



Source: DRIIMccmw BHI.
257.2
77.8
416.5
80.6
226.7
422.5



40.7
74.4
21.2
127.4
57.5



281.8
220.2
228.7



1,677.4
1,801.5
58.3
364.2
282.0
265.4
117.7
282.5
53.9
448.1
83.5
243.9
457.9
0.86
0.59
3.23
0.46
0.84
1.69
0.78
0.37
2.86
0.40
0.81
1.69*



0.37
2.27*
0.22
1.07*
0.27*



0.59
3.79*
1.39



14.67*
6.50
10.16*
3.76*
7.24*
10.35*
2.00*
299.7
131.8
129.1
174.6
269.3
249.4



88.6
40.2
84.7
123.7
248.0



412.7
59.3
157.5



115.3
274.2
69.4
96.3
41.8
226.2
65.0
362.4
144.1
156.6
209.7
300.3
271.1



218.2
40.3
144.7
143.2
279.0



479.5
66.6
176.8



125.2
288.5
67.9
107.7
41.4
274.1
62.8
80.8
91.4
32.3
153.2
75.1



284.8
252.4
245.8



1,843.9
1,940.4
690.3
405.0
299.8
283.7
125.5
0.46
1.85
0.25
1.03
0.23



0.68
3.71
1.45



14.55
6.57
8.36
2.78
6.72
9.97
1.72
187.3
228.0
104.1
1,083.0
199.7
245.7
137.9
1,058.1
2.27
2.26
1.60
8.86
2.12
2.24
1.80*
6.74
82.4
100.9
69.8
150.4
94.0
109.2
76.4
156.9
Note: * rrprmomt n asnpoymt ieruaea
2-27

Service Sector
It is expected that during the next three years, the service sector will be more active than the
manufacturing sector. In addition, two-fifths (40.0%) of service companies plan a move by the
end of 1995, as opposed to about one quarter of manufacturing companies.3 This is no surprise
to economic forecasters. In a study performed by Expansion Management which solicited
responses from over 34,000 readers, there are indications that the retail industry (department
stores, clothing stores, supermarkets, restaurants, and bars) will expand significantly. Of those
polled, 29.0% stated that they plan to expand in the next year and 55.0% stated they planned
to move within the next 3 years.

TRENDS IN SELECTED SERVICE INDUSTRIES
(In billions of current dollars)
Item
Accounting
Advertising
Banks
Cable television
Computer professional services
Credit unions
Data processing
Education & training
Electronic & info. services
Equipment leasing
Health services
Legal services
Life & health insurance
Management consulting
Motion picture theaters
Prerecorded music
Property & casualty insurance
Railroads (class 1)
Retail Sales, total
Apparel & accessories
Gen. merchandise stores
Eatingldrinking places
Food retailing
Savings institutions
Space commerce
Telecommunications services
Travel services
Trucking & courier services
Venture capital
Wholesale sales, total
Unit of Measure
Receipts
Receipts
Loans
Revenues
Revenues
Loans
Revenues
Expenditures
Revenues
Orig equip. cost
Revenues
Receipts
Premium receipts
Receipts
Receipts
Manufacturer's value
Net premiums written
Revenue
Sales
Sales
Sales
Sales
Sales
Mortgage loans
Revenues
Revenues
Expenditures
Revenues
Capital Commitments
Sales
Value
38.8
21.9
2,420.0
28.8
66.7
157.6
53.6
529.3
15.6
128.7
1,060.5
97.0
316.8
77.0
5.3
11.8
245.0
29.4
2,232.0
112.0
320.0
216.0
399.0
710.0
6.5
193.1
420.4
331.0
2.7
1,973.0
90-01
3.4
-3.8
-0.9
11.1
12.2
5.9
14.1
8.2
13.2
-3.3
11.4
1.3
-0.1
4.7
-4.4
3.9
2.4
-2.5
2.2
3.2
7.5
5.9
1.3
-9.5
29.1
6.1
3.4
2.6
-31.2
-1.2
91-92
4.1
0.5
-0.3
9.1
12.1
5.1
14.3
6.3
14.7
1.2
11.6
1.5
6.9
5.0
1.5
15.2
2.0
2.2
5.1
8.2
8.3
2.5
1.9
-6.8
11.2
5.0
5.2
6.5
100.5
3.2
92-93
5.0
1.0
2.0
9.6
9.7
4.4
14.0
5.6
16.0
2.8
12.1
3.3
6.0
5.9
4.5
15.0
3.5
1.4
6.3
2.9
13.4
2.5
0.8
-6.8
9.0
6.0
4.8
5.7
11.6
3.8
93-94
5.6
3.8
4.0
9.5
9.6
7.0
15.5
5.8
14.7
3.0
12.5
4.3
6.0
6.9
3.1
13.5
4.0
2.4
7.0
3.7
14.3
4.4
3.1
-5.1
22.6
7.7
5.8
5.8
-6.8
4.0
Source.: U.S Indurial Outlook, 1994, U.S. Deparmo   of Commerce, Inteatonal Trade Admnistration.
2-28

Manufacturing Sector
According to Office of Trade and Economic Analysis at the U.S. Department of Commerce
"high-technology industries dominate the list of fastest-growing industries, with semi-conductors
at the top of the list - despite weaknesses in the Japanese markets"4 for 1993 and 1994. Top
growth companies also include the production of health-related equipment, companies that
produce computers and peripherals and those involved in the production of household appliances.
In addition, the automotive sector in general is where modest growth is expected as well.

TEN FASTEST GROWING MANUFACTURING INDUSTRIES IN 1994
(% changes based on 1987 dollar shipments)
SIC	Industry	1993-94
3541	Machine Tools, metal cutting types	12.8
367	Electronic components and accessories	11.1
3842	Surgical appliances	10.0
2451	Mobile homes	9.4
371A	Automotive parts and accessories	7. 7
3841	Surgical and medical instruments	7.0
364A	Lighting Fixtures	6.6
2515	Mattresses and bedsprings	6.4
3111	Leather tanning andfinishing	6.0
3826	Analytical instruments	6.0

Source: U.S Indasial Ouiook, 1994, U.S. Depanmaw of Commerce, International Trade Administradon.

All of 10 of the fastest growing manufacturing industries are being propelled by the domestic
demand for automobiles, housing, computerization, health care and environmental equipment.5
By contrast, 7 of the most sluggish industries are defense related. In the other 3 industries,
changing business practices and foreign competition have eroded markets. U.S exports are still
being restrained by the sagging economies of continental Europe and Japan. At the same time,
foreign rivals form China to Germany are competing fiercely for business in the U.S. Continued
tough competition will prevent any let up in corporate restructuring and downsizing and is
expected to continue well into 1995.11

TEN SLOWEST GROWING MANUFACTURING INDUSTRIES IN 1994
(% Change based on 1987 dollar shipments)
SIC	Industry	1993-94
3728	Aircraft parts and engines, nec	-24.3
3724	Aircraft engines and engine parts	-20.0
3721	Aircraft	-11.3
3812	Search and navigation equipment	- 6.6
3831	Ship building and repair	- 6.6
3764	Space propulsion units and parts	- 5.3
3172	Personal leather goods, nec	- 5.2
2761	Manifold business forms	- 5.0
2874	Phosphatic fertilizers	- 4.8
3769	Space vehicle equipment	- 3.9

Source: U.S lndus  Oullook, 1994, U.S. Deparment of Commerce, International Trade Administration.
2-29

STATE COMPETITION
The state of South Carolina is recognized both regionally as well as nationally as one of the
prermier states for aggressive and innovative economic development. The recent decision by
BMW to locate in Greenville-Spartanburg, expansion plans by Rhone Poulenc in Florence and
the selection of Charleston as one of three finalist for the much sought after Mercedes Benz
project is testimony to their success. This is due in part to the leadership exhibited over the
years at the statehouse and the Department of Commerce and to the cooperation of local
communities. These activities have not gone unnoticed by surrounding states, particularly North
Carolina and Georgia, acting as a wake-up call for many states. Recent legislation, either past
or pending, by these states have either created similar incentives as South Carolina or enacted
other legislation to become more competitive. The following text will address, these actions
regarding three states: North Carolina, Georgia and Alabama.

Alabama

Alabama's recent success in luring the Mercedes Benz vehicle assembly plant to Vance,
Alabama was due to several incentives, many of which were one time probably never to
be seen again. Other incentives, however, were passed specifically to promote ongoing
industrial recruitment with Mercedes Benz being the catalyst that spurred legislation.
Probably the most significant recent incentive is the act allowing the State Industrial
Development Authority to ability to finance new and expanding industries through Tax
Increment Financing.33 Under the Act the State Industrial Development Authority is
allowed to finance the cost of land, buildings and equipment for companies engaged in
mnanufacturing, warehousing and distribution, and certain types of research and computer
related services. The Authority is allowed to issue bonds and to loan the proceed to
qualifying companies to finance project costs. The bonds are payable solely from private
payments the State's credit will not be obligated and can be structured one of two ways:


ODtion #1 - Industrial Revenue Bonds

Under this option, the Authority enters into a Financing Agreement with the
comnpany under which the company would agree to pay the principal and interest
on the bonds. The company would receive a tax credit against its corporate
income taxes for the amounts paid as principal and interest on the bonds. The
company would also be permitted to collect a "Job Development Fee" of up to
5.0% of gross wages from new employees and use these funds to pay the
principal and interest. The employee would receive a tax credit against his or her
personal income taxes for the Job Development Fee withheld. Under this option,
the entire cost of the project could be financed if the company's credit is adequate
to support the bonds.
2-30

Op)tion #2 - Tax Incrernent Bonds
Under this option, the company would agree to make annual payments to the
Authority in an amount equal to the total of (1) the amount owed as corporate
income tax, and (2) the Job Development Fees collected from the employees.
These amounts would be paid into a special "tax increment fund" held by a
trustee and the amounts on deposit in that fund would be used to pay the bonds.
The company would receive a tax credit against its corporate income taxes for the
amount paid into the bonds. The company would receive a tax credit against its
corporate income tax for the amount paid into the fund related to taxes and the
employees would receive the same credit as under Option #1 for the Job
Development Fee withheld from their compensation. UJnder tnis option, the size
of the bond issue would depend on the amounts to be paid into the tax increment
fund, the reliability of those payments and the availability of any forms of credit
support from parties other than the Authority and the State.


Certain criteria apply for Approved companies and Projects eligible for financing by the
State Industrial Development Authority under Act No. 93-851 as follows:
Types of Projects:






Minimum Capital Investment:

Minimum Number of Jobs:

Minimum Wage Requirement:
Any land, building or other improvement
and all real and personal properties deemed
necessary or useful in connection therewith,
located in the State, for use as an "industrial
or research enterprise" as defined in the
Act.

$5,000,000

100

The average hourly wage for full-time
hourly employees must be at least $8/hr., or
the average tota compensation (including
benefits) for full-time employees at the
Project must be at least equivalent to $ 10/hr..
Creditworthiness of Company:


Economic Viability of the Project:
Subject to review and approval by the
Authority.

Subject to review and approval by the
Authority.
2-31

it is not certain how long this act will remain in effect. In fact, when the law was passed
on September 7, 1993 the criteria were called interim criteria with more definitive
criteria to be defined and approved at a later date. The programn, nevertheless, is
currently being used actively to recruit prospective firms throughout the state.

Georgia

Georgia, like South Carolina, has one of the better state training programs in the country.
Incentives offered by the state focuses on the provision of either cheap or free land,
utility extensions and freeport laws that exempted inventory from taxation according to
county laws. Recently, however, the state has enacted legislation that will significantly
alter the way the state is viewed.

The first act is the use of proceeds from the sale of lottery tickets. Until now, the
revenue went to the general education fund. Now, however, a significant portion of the
funds are targeted to pay the full tuition to any state university in Georgia for high school
graduates who maintain at least a B grade'average. For those who do not graduate with
a grade average of at leat a B, there will be partial tuition assistance to a state supported
university or a two year vocational school. This program, while not directly assisting
prospective manufacturers, addresses the heart of current management concerns regarding
the work force - education.

The second act is called th e Georgia Business Expansion and Support Act of 19941 and
consists of eight significant credits or exemptions:

1. JOB TAX CREDIT

Provides for a new statewide job tax credit for certain business enterprises.
Applies to business or headquarters of a business engaged in manufacturing,
warehousing and distribution, processing, tourism, and research and developmnent.
Does not include retail businesses. Provides for three tiers of credits:

Counties in the state of Georgia are ranked according to the following factors:
1. highest unemployment for the most recent 36 month period;
2. lowest per capita income for the most recent 36 month period;
3. highest percentage of residents whose incomes are below the poverty level
according to the most recent data available; and
4. average weekly manufacturing wage according to the most recent data
available.

* Counties ranked Ist through 53rd are Tier I and represent the state's least
developed counties. Companies creating 10 or more new jobs in a Tier
I county will receive a $2,500 tax credit.
2-32

ï¿½ Counties ranked 54th through 106th are Tier 2. Companies creating 50
or more new jobs in a Tier 2 county will receive a $1,500 tax credit.

* Counties ranked 107th through 159th are Tier 3. Companies creating 50
or more new jobs in a Tier 3 county will receive a $500 tax credit.


Credits are allowed for each full-time employee job for five years beginning with
years two through six after the creation on the job. The credit cannot be more
than 50% of the taxpayers total state income tax liability for that taxable year.
A credit claimed but not used in any taxable year may be carried forward for a
period of 10 years from the close of the taxable year in which the qualified jobs
were established.

The legislation also allows for a Tier I credit for less developed urban census
tracts. In addition to the ten contiguous census tracts criteria already in place, a
new section allows for the inclusion of one or more census tracts which have been
adversely impacted by the loss of a business, jobs or residences related to an
airport expansion or closing of a related business enterprise (i.e. E-astern
Airlines). The law reduces to 30% the number of local residents required to
access the credit.

2. INVESTMENT TAX CREDIT

Based on the same tiers as the Job Tax Program. Allows a corporation or person
which has operated an existing manufacturing facility in the state for the previous
three years to obtain a credit against income tax liability.


* Companies expanding in Tier I counties must invest $1 million to receive
a 5% credit. The credit increases to 8% for recycling, pollution control
and defense conversion activities.

* Companies expanding in Tier 2 counties must invest $3 million to receive
a 3 % credit. The credit increases to 5 % for recycling, pollution control
and defense conversion activities.

ï¿½ Companies expanding in Tier 3 counties must invest $5 million to receive
a 1I% credit. The credit increases to 3 % for recycling, pollution control
and defense conversion activities.

The credit is a percentage of the total value of all qualified investment property
and cannot be more than 50% of the taxpayer's total state income tax liability for
that taxable year. An existing firm cannot take both the jobs tax credit and the
2-33

investment tax credit.
3. RETRAINING TAX CREDIT

Employees who provide retraining for employees are eligible for a tax credit
equal to 25% of the costs of retraining per full-time student up to $500. The
training must:

a. enhance the functional slills of online and hourly employees otherwise
unable to function effectively on new equipment:

b. be approved by the Department of Technical and Adult Education; and

c. be provided at no cost, direct or indirect, to the employee.

The credit cannot exceed more than 50 % of the taxpayer's total state income tax
liability for that taxable year.
4. CHILD CARE CREDIT

Employers who provide or sponsor child care for employees are eligible for a tax
credit of up to 50% of the direct cost of operation to the employer. The credit
cannot exceed more than 50 % of the taxpayer's total taxpayer's total state income
tax liability for that taxable year.

5. MANUFACTURING SALES TAX EXEMPTION

Provides for an exemption from sales and use tax for manufacturing equipment:

a. machinery used directly in the manufacture of tangible personal property
when the machinery is bought to replace or upgrade machinery in the
manufacturing plant presently existing in the state.

b. machinery used directly in the manufacture of tangible personal property
when the machinery is incorporated as additional machinery for the first
time into a manufacturing plant presently existing in the state.

6. PRIMARY MATERIAL HANDLING SALES TAX EXEMPTION

Provides for the exemption from sales tax and use tax on purchases of primary
raw material handling equipment which is used directly for the handling and
movement of tangible personal property in a new or expanding warehouse or
distribution facility when such new facility or expansion is worth $10 million or
more.
2-34

7. JOB TAX CREDIT FOR JOINT DEVELOPMENT AUTHORITIES
Provides for an additional $500 job tax credit for a business locating within the
jurisdiction of ajoint authority of two or more contiguous counties. It also allows
for the business to qualify for the greatest amount of job tax credits of any of the
participating counties.

8. ELECTRICITY EXEMPTION

Electricity purchased for the direct use in manufacturing a product is exempt from
sales tax when the total cost of the electricity makes up more than 50% or more
of all materials used in maldng the product. This exemption will be phased in
over five years beginning in 1995. It allows 20-40-60-80- 100 percent exemptions
on the sales tax and is available for new and existing firms.

Many of these new incentives have been pattemned after those of South Carolina,
however, a good part of the program focuses on existing industry. In time it is expected
that these exemptions and credits will extend to all industry whether new or existing.

It is interesting to note that the state of Georgia has recently passed a constitutional
amendment which authorizes the creation of multi-county industrial parks, convention
centers, etc. This amnendment, also much like South Carolina's allows public or privately
initiated projects to be contracted among contiguous counties and municipalities. Tax
credits from any of the partners may be utilized.

North Carolina

North Carolina has traditionally relied on its employee training program, excellent road
systems with the expectations that local governments will provide the bulk of the
incentives. The state, however, does not allow local governments to abate or exempt ad
valorem taxes so that local incentives are usually in the form the provision of free or low
cost infrastructure to a prospect's site.

There appears to be the rumblings of initiatives within the state to enact legislation
allowing the state to become more c,ompetitive. For instance, the state in 1992 allowed
a $2,800 Job Creation Tax Credit per manufacturing job created in economically
distressed counties. The credit is taken ratably over 4 years but cannot offset more than
50% of a firm's annual North Carolina Tax liability after other credits, if any.

The legislature is considering a bill presented by the Governor's office known as the
North Carolina State Competitiveness Fund. This incentive requires a funding allocation
every year and a cash grant is used to entice prospective firms to locate in North
Carolina. The grant is usually no greater than $250,000.
2-35

A groundswell of support is beginning in the statehouse to enhance the state's
attractiveness to competitors due to the recent success of its neighbor to the south, South
Carolina. The success of the Research Triangle Park and the Raleigh-Durham area will
probably continue regardless of the incentives created. The same cannot be said about
the rest of the state. It is expected that North Carolina will start adopting many of the
same programs that other southemn states have recently enacted.
2-36

I-                    ~        ~                  -       -
--- I  !  II
CHARLESTON HARBOR STUDY AREA
]M    - !       III
3-1

Tri County Region
caOLETN

Overview
The greater Charleston area is better known as the Trident Region and is comprised of three
counties - Berkeley, Charleston and Dorchester. The economy is approximately 2,600 square
miles and is influenced heavily by the military, tourism, the Port of Charleston and a few large
industrial employers in the region.

Location
The Charleston Trident area is located along the central South Carolina coast and includes over
90 miles of the Atlantic coastline and reaches some 50 miles inward towards the intersection of
Highways 26 and 95. The area includes twenty-five incorporated communities ranging in size
from Jamestown in Berkeley County with a population of approximately 84 to the City of
Charleston with about 80,000 residents.

Government

Management of local government varies between city and county governments in the Trident
area. In Berkeley County, county affairs are managed by a county council with an elected
county supervisor serving as the chief administrative officer.

Charleston County has a council-administrator form of government. Council members are
elected at large to four yea terms. A county administrator is appointed by the county council
to manage the day to day activities of the county.

Dorchester County has a seven member county council, with each member elected to four-year
terms. The council administrator is appointed by. the county council to administer the day to day
activities of the county.
The twenty five incorporated arma with the tree county region operate under separate
mayor/council form of government although the day to day operations vary from city to city.

Transportation

Air Traffic           Charleston Intemnational Airport, located near the intersection of
Interstates 26 and 526 in North Charleston, is an international
facility providing commercial and military air service for the
region. The airport currently services over 1.5 million passengers
annually with four major airlines serving offering over 70 flights
per day. Major airlines include American, Delta, US Air and
United. There are six private airports located throughout the
region that can accommodate both corporate and private aircraft.
3-3

Motor reightApproximnately 100 motor carriers serve the Trident
region.
Motor Freight
Railroads            Norfolk Southern, the CSX System and the South Carolina Rail
Road Commission serve the region.

Hlighways/ Interstate       Interstate highways serving the region include 1-26 (east/west), I-
95 (north/south) and 1-526 (east/west). The area is also served by
four major U.S. highways and seven major state highways.
Interstate 526 (the Mark Clark Expressway) has just been recently
completed and is a 19 mile semi-circle beltway area the
community. This expressway stretchies from US Highway 17
South in the west, to US Highway 17 North in Mt. Pleasant.

Climate                     Average Daiy Temperature:

High ..........75.30
Low...........54.20,
Avg Precipitation .    ...51.59 inches
Avg Relative Humidity... 75.0%

Colleges/Universities

Charleston Southemn - The only church affiliated college in the region. Ranked 2nd as the
largest private university in the state of South Carolina. The curriculum consists of 28
undergraduate degrees as well as a master's degree in Business Administration, E-ducation and
Art in Teaching. Enrollment - 2,614.

College of Charleston - Oldest institution of higher learning in the state'of South Carolina and
the 13th oldest in the nation. The college is a four-year, state assisted, liberal arts institution
offering 34 undergraduate degrees. In conjunction with the University of Charleston, 10
graduate degrees are offered as well in education, history, marine biology, mathematics, public
administration and professional development facilities and services. Enrollment - 9,660.

Citadel - Largest non-federal military institution in the United States. The Citadel Evening
College offers co-educational opportunities in limited undergraduate degrees. An MBA program
and 15 graduate degrees, including civil engineering, are the major graduate degrees offered.
Enrollment - 3,679.

Johnson & Wade University in Charleston - A private, non-profit co-educational institution
offering a Bachelors and Associate degrees in culinary arts, baling and pastry arts, and
hospitality management. Headquarters are located in Rhode Island. Enrollment - 1,000.

Medical University of Charleston - The oldest medical institution in the South and forms the
3-4

core of one of the State's largest medical complex. MUSC has six colleges - medicine, nursing,
health related professions, pharmacy, dental medicine, and graduate studies. Enrollment -
2,705.

Trident Technical College - A public two year institution. The college emphasizes practical,
marketable job skils by providing a wide variety of technical programs. Enrollment - 8,012.
3-5

OCCUPATIONAL EMPLOYMENT
Berkeley, Charleston & Dorchester Counties

Occupational Title


Adminstrative Support
& lefical


AgiicuJtural, Forestry
& Fishing


Ewecutive, Managefial
& Aministrative


Maintenance & Production


Marketing Sales


Profesonal, Paraprofesional
& Technzical


Service


Toft4 All Occupations




Sourc:
1986
Estimated   Percent
Employed Employed


28,306    15.4%
2000
Estimated	Percent
Employed Employed


38,215    14.4%
Projected %
Anaual
Growth Rate


233%



28%



3.5%



2.3%


3.4%



299%


4.2%


29%
1,817




13,917




55,066


21,135

1.0%












29.9%



11.5%
2,569
1.0%
21,292
73880


31,789
278%



120%





18.4%



18 5%



120009
%
34,07	18.5%	48,774


30,055	16.3%	49,172



184,383	1 000%	265,691




SC Employment Commission and Center for Business
Research-TTident COC

Population Projections
Berkeley, Charleston & Dorcester Counties
MSA
1980


94,727


276,556
1990


129,900


295,800
2000
2010
Berkeley


Charleston


Dorchester


Total
183,600


314,200
259, 700


332, 700
214 700
430, 044
509,500
712,500
781,000
Soucc:  US. Census Bureau, S.CDpartment ofRescarch and Statistical Services.

EDUCA TION INFORMA TION
Berkeley, Charleston & Dorcester Counties


Berkeley     Charleston
County	County   Dorcester I  Dorcesterr IV	State

Student Population                    28,189	45,413          14,413           2,750	640,222

Number of Public Schools	35	72	14	7	1071
Elementary	17	44	9	4	621
Middle	8	15	3	0	208
High	0	13	2	3	242

Per Pupil Revenues	$3,598	$4,049	$3,526	$4,356	$4,131
Per Pul Expenditures	$3,484	$3,956	$3,442	$4,191	$4,052

Expenditure per Pupil Breakdown
instruction	67.6%	71.2%	72.8%	71.5%	71.0%
Plant Operations	10.1%	9.5% '	9.0%	7.1%	9.7%
SchoolAdministration	6.6%	71%	5.9%	7.4%	6.6%
District Administration	6.9%	5.4%	4.7%	5.1%	4.6%
Pupil Food	7.1%	5.2%	5.4%	6.8%	6.2%
Pupil Transportation	1.7%	1.6%	2.3%	2.1%	1.8%

Pupil/Teacher Ratio	19:1	19:1	201	18:1	18:1

Teacher's Average Salaries
0-10 years experience	$24,183	$22,534	$24,431	$24,030	$23,629
11-17years experience	$30,651	$28,557	$30,889	$29,898	$29,629
18+ years experience	$32,871	$31,295	$33,734	$32,359	$31,418
All teachersDistrict Avg.	$27,989	$26,647	$28,661	$27,795	$28,068

SAT Scores
Math	453	422	460	376	437
Verbal	408	396	410	341	394
Total	861	818	870	717	831

After Graduating, % Entering
Junior & Senior Colleges	49.9%	55.7%	55.7%	43.6%	53.09%
Other Postsecondary Schools	5.3%	3.5%	1.2%	5.7%	5.0%
Workforce/Other	44.8%	40.8%	43.1%	50.7%	41.9%

Drop-out Rate Grades 9-12	3.0%	2.9%	2.0%	1.9%	3.2%
Soarce:  South Carolina Department of Education. 2/93.

LABOR FORCE
Berkeley, Charleston and Dorchester Counties
Berkeley
128,776

10.9%
20.0%
20.8%
15.7%
28.2%
.53,890
52,210
1,760
.3.3%

75.8%
24.1%
58.0%
41.9%

755




2.9%9
Charleston

295,039

14.4%
19.2%
19.7%
21.6%
30.4%
145,400
140,370
5,030
3.5%

67.6%
.32.4%
54.5%
45.4%

830




30.9%
Dorchester
83,060

10.8%9
19.4%
22.2%
17.8%
29.8%
37,890
36,630
1,260
.7.3%

75.8%
24.1%
58.1%
41.8%

.325




28.2%
MSA
506,875
Population
% Population byAge Group
18-24
2-.35
.35-49
50+
Median Age
Civilain Labor Force
Total Employment
Total # Employed
5% Employed
Labor Force by Race/Sex (%)
White
Non - White
Male
Female
# High School Graduates
Entering Labor Force
College/University Degrees Conferred
Technical College Enrollment
Estimated % Under-Employed'
12.9%
19.5%
20.4%
19.4%
29.8%
2.37,260
229,200
8,060
.3.4%
70.4%
29.6%
5.5.8
%
44.2%
1,910
1,960
6,400
29.4%
Note: 'underemployed is an estimate of employed earning less than $10.000 annually
Source: Center for Business Research. Charleston Trident Chamber of Commerce

PROJECTED GROWTH RATES
Charleston Harbor Study Area - Berkeley, Charleston & Dorchester Counties

TOTAL                 MFG.	PERSONAL                    TOTAL
DATE          EMPLOYMENT	EMPLOYMENT	INCOME	POPULATION	RETAIL SALES
(thousands)	(thousands)	(millions)	(thousands)	(millions)
Historic:
1986	179.3	-	19.5	-	5,514.2	-	483.8	-                  -	-
1987	185.8	3.6%	19.8	1.5%	5,937.0	7.7%	486.6	0.6%	6,075.7	-
1988	193.0	3.9%	20.5	3.5%	6,436.6	8.4%	491.6	1.0%	6,691.0 10.1%
1989	197.0	2.1%	20.8	1.5%	6,485.3	0.8%	530.6	7.9%	7,059.4	5.5%
1990	195.6 -0.7%	21.1	1.4%	7,589.3 17.0%	509.3 -4.0%	8,079.1	14.4%
1991	214.6  9.7%	21.0 -0.5%	7,666.9  1.0%	516.3  1.4%	8,001.0 -1.0%



Projected:
1992	205.1 -4.4%	20.3 -3.3%	8,095.7	5.6%	524.0	1.5%	8,392.5	4.9%
1993	211.3	3.0%	20.4	0.5%	8,624.0	6.5%	531.8	1.5%	8,492.0	1.2%
1994	216.6	2.5%	20.5	0.5%	9,181.1	6.5%	539.5	1.4%	8,676.0	2.2%
1995	221.3	2.2%	20.7	1.0%	9,746.6	6.2%	547.1	1.4%	8,873.7	2.3%
1996	226.7	2.4%	20.8	0.5%	9,965.8	2.2%	554.9	1.4%	9,260.8	4.4%







Source:	South Carolina Economic Forecasting Service, 'The South Carolina Economic Outlook: Five-Year Projections for Counties', 1992-96
Reference Appendix ? Consoldated Data for three county projections of Berkeley. Charlreson and Dorchester.
3-10

CHARLESTON TRIDENT SOUTH CAROLINA

HOURLY WAGE RATES BY OCCUPATION
CHARLESTON TRIDENT AREA, SC

Charleston MSA
Hourly Wage ($)
Min.            Ave.             Max.
Managerial and Administrative Occupations
Admninistrative Services Manager	6.50	11.88	25.44
Communications, Transportation and Utilities Managers	12.50	20.55	28.14
Construction Managers	7.50	17.Z16	26.20
Education Admninistrators	12.00	23.72	29.45
Engineering, Mathematical and Science Managers	16.00	29.50	37.02
Financial Managers	12.00	20.56	37.50
Food Service and Lodging Managers	5.80	10.39	17.64
General Managers and Top Executives	10.00	27.27	63.00
Industrial Production Managers	12.15	18.70	33.03
Marketing, Advertising and Public Relations Managers	10.00	21.16	40.89
Medicine and Health Services Managers	14.40	21.43	21.80
Personnel, Training and Labor Relations Managers	6.15	16.78	31.50
Property and Real Estate Managers	16.47	18.03	21.15
Purchasing Managers	7.50	13.52	19.50

Professional, Paraprofessional and Technical Occupations
Accountants, Auditors and Other Financial Specialist	8.00	13.16	22.00
Announcers	4.63	7.86	8.40
Artists and Related Workers	11.09	11.46	12.37
Chemical Engineers	21.67	25.46	28.85
Chemical Technicians and Technologists	11.92	13.63	17.33
Chemists, except Biochemists	16.82	22.72	32.21
Civil Engineers, including Traffic	14.17	16.86	21.00
Computer Programmer Aides	5.00	11.37	19.39
Computer Programmers	9.75	14.87	22.02
Cost Estimators	12.50	16.79	20.55
Designers, except Interior Designers	9.27	10.30	12.37
Dietitians and Nutritionists	5.50	8.54	10.06
Drafters	8.89	10.78	11.12
Electrical and Electronic Engineers	17.33	20.70	23.60
Electrical and Electronic Technicians	9.42	13.84	15.98
Employment Interviewers Employment Service	9.00	10.88	11.50
Human Services Workers	4.60	4.70	7.38
Industrial Engineers, except Safety	12.50	17.19	19.89
Instructors and Coaches, Sports and Physical Training	5.00	9.03	14.00
Instructors, Nonvocational Education	10.25	10.96	16.64
Interior Designers	10.00	23.33	30.00
Lawyers	15.25	38.21	100.00
3-11

Charleston MSA
Hourly Wage ($)
Min.	Ave.	Max.

Licensed Practical Nurses	9.90	10.31	12.45
Mechanical Engineers	19.00	20.10	20.19
Medical Records Technicians	6.00	6.88	zo7.00
Medical and Clinical Laboratory	12.21	12.21	12.21
Paralegal Personnel	9.80	11.59	13.50
Personnel, Training and Labor Relations Specialists	14.42	16.30	18.15
Pharnmacists	18.64	18.94	22.00
Photographers	7.38	11.99	14.62
Physical Therapists	16.64	17.73	22.00
Physicians and Surgeons	32.93	63.52	100.00
Professional Librarians	8.50	11.92	17.Z88
Public Relations Specialists and Publicity Writers	6.34	7.56	10.00
Purchasing Agents and Buyers	7.46	13.13	20.89
Recreation Workers	5.50	6.20	10.50
Recreational Therapists	6.25	10.35	11.09
Registered Nurses	16.20	16.20	16.20
Social Workers, except Medical and Psychiatric	8.25	12.39	13.60
Surveyors and Mapping Scientists	10.00	10.37	10.92
Systems Analysts, Electronic Data Processing	15.00	20.44	23.07
Teachers, Elementary School	8.00	12.42	19.70
Teachers, Preschool and Kindergarten	8.52	9.75	14.00
Writers and Editors	13.68	28.41	35.35

Sales and Related Occupations
Cashiers	4.25	4.82	6.38
Counter and Rental Clerks	4.25	5.07	6.00
Door-to-Door Vendors and Solicitors	4.25	4.40	5.00
First Line Sales Supervisors	6.25	10.35	22.00
Sales Agents and Placers, Insurance	9.62	10.68	13.60
Sales Agents, Advertising	12.00	17.69	20.65
Sales Agents, Selected Business Services	7.50	10.81	15.00
Sales Representatives, except Scientific Products	6.00	13.60	16.00
Sales Representatives, Scientific Products	12.00	14.00	16.00
Salespersons, Parts	5.97	Z 7.68	10.46
Salespersons, Retail	4.56	7.80	20.00
Stock Clerks, Sales Floor	4.40	5.33	9.00

Clerical and Administrative Support Occupations
Adjustment Clerks	5.93	6.82	8.91
Bill and Account Collectors	7.50	8.33	8.41
Billing, Cost and Rate Clerks	5.22	8.25	10.95
Billing, Posting, Calculating Machine Operators	8.92	8.98	9.00
3-12

Charleston MSA
Hourly Wage ($)
Min.	Ave.	Max.
Bookkeeping, Accounting and Auditing Clerks	6.00	8.90	12.38
Computer Operators, except Peripheral Equipment	7.03	9.79	12.14
Customer Service Representatives, Utilities	9.17	9.27	9.77
Data Entry Keyers, except Composing	6.23	7.23	8.85
Dispatchers, except Police, Fire and Ambulance	8.07	10.78	15.00
File Clerks	5.25	5.92	o7.00
General Office Clerks	6.02	7.93	10.47
Hotel Desk Clerks	5.00	5.72	6.00
Insurance Claims Clerks	5.32	7.26	9.20
Insurance Policy Processing Clerks	7.87	7.87	7.87
Loan Interviewers	7.51	8.22	10.40
Loan and Credit Clerks	6.20	7.98	10.63
Mail Clerks, except Mail Machine Operators	6.09	6.61	7.11
Mail Machine Operators, Preparation and Handling	4.60	6.73	6.94
Messengers	4.27	4.91	5.95
Meter Readers, Utilities	9.95	11.79	12.48
New Accounts Clerks	7.51	9.61	10.97
Order Clerks-Materials, Merchandise and Service	5.60	8. 72	13.55
Order Fillers, Wholesales and Retail Sales	4.75	5.94
	zoo7.00
Payroll and 7imekeeping Clerks	6.40	9.45	12.80
Personnel Clerks, except Payroll and 7imekeeping	7.03	9.19	12.02
Production, Planning and Expediting Clerks	5.00	10.33	14.50
Real Estate Clerks	7.74	9.19	9.92
Receptionists and Information Clerks	5.50	6.48	9.00
Secretaries	6.75	8.41	12.12
Shipping, Receiving and Traffic Clerks	5.71	8.91	10.33
Stock Clerks Stockroom, Warehouse or Storage	4.50	6.61	9.62
Supervisors, Administrative Support Occupation	5.85	10.67	17.45
Switchboard Operators	4.63	6.12	7.88
Teachers' Aides and Education Assistants	4.81	6.08	6.85
Tellers	5.98	6.89	7.82
Typists	4.42	7.61	9.04
Typists, Word Processing Equipment	6.25	7.90	12.00

Service Occupations
Baggage Porters and Bellhops	4.25	4.26	4.35
Bakers, Bread and Pastry	4.75	6.67	10.00
Bartenders	2.13	4.27	6.00
Butchers and Meat Cutters	6.50	9.02	12.50
Child Care Workers	5.00	5.15	6.00
Combined Food Preparation and Service	4.49	4.54	5.24
3-13

Charleston MSA
Hourly Wage ($)
Min.	Ave.	Max.

Cooks, Institution or Cafeteria	5.00	6.66	7.10
Cooks, Restaurant	6.00	6.89	8.00
Cooks, Short Order	4.29	5.16	7.22
Cooks, Specialty Fast Food	4.50	4.61	4.70
Counter Attendants-Lunchroom, Coffee Shop or Cafeteria	4.50	4.97	5.15
Dining and Cafeteria Attendants and Bartender Helpers	3.00	3.09	4.75
Food Preparation Workers	4.46	5.15	6.83
Guards and Watch Guards	4.25	5. 73	10.00
Hosts and Hostesses	2.13	4.46	5.50
Housekeepers	4.25	6.96	9.90
Janitors and Cleaner, except Maids and Housekeepers	4.25	5.53	11.55
Maids and Housekeeping Cleaners	4.35	5.38	16.67
Medical Assistants	5.05	7. 08	10.25
Nursing Aides, Orderlies and Attendants	4.80	5.56	6.73
Pharmacy Assistants	4.75	5.97	7.O00
Physical and Corrective Therapy Assistants	5.50	10.59	14.42
Waiters and Waitresses	2.09	2.50	4.75

Agricultural, Forestry, Fishing and Related Occupations
Gardeners and Groundskeepers, except Farm	5.26	6.30	7. 75
Log Handling Equipment Operators	6.00	8.74	9.42

Production, Construction, Operating, Maintenance and Material Handling Occupations
Aircraft Mechanics	10.25	16.70	23.14
Assemblers and Fabricators	5.50	8.57	10.11
Automotive Body and Related Repairers	Z 75	9.46	10.00
Automotive Mechanics	8.00	12.55	16.35
Boiler Operator/Tenders, Low pressure	10.22	14.59	16.17
Bus Drivers	5.21	11.27	12.00
Bus and Truck Mechanics and Diesel Engine Specialists	9.05	10.64	16.61
Cabinetmakers and Bench Carpenters	9.38	9.69	10.00
Captains, Water Vessel	10.50	12.38	15.20
Carpenters	8.71	9.86	11.50
Cementing and Gluing Machine Operators/Tenders	6.00	9.65	9.99
Chemical Equipment Controllers/Operators	12.40	12.77	14.43
Chemical Equipment Tenders	6.10	10.75	11.57
Chemical Plant and System Operators	12.50	13.30	13.58
Coating/Painting/Spraying Machine Operators	6.00	7. 97	10.00
Concrete and Terrazzo Finishers	8.00	9.91	1I.
00
Conveyor Operators and Tenders	5.38	8.43	13.20
Crane and Tower Operators	10.18	11.85	13.86
3-14

Charleston MSA
Hourly Wage ($)
Min.	Ave.	Max.

Crushing/Grinding/Mixing Machine Operators	10.25	10.25	10.25
Cutters and Trimmers, Hand	4.70	4.85	5.00
Cutting and Slicing Machine Operators/Tenders	7.44	8.22	8.64
Dragline Operators	8.00	11.67	13.50
Driver and Sales Workers	9.80	9.92	10.10
Electric Motor, Transformer and Related Repairers	7.15	7.67	10.00
Electrical Powerline Installers and Repairers	15.28	16.08	16.50
Electrical and Electronic Assemblers	7.07	7.24	8.42
Electricians	8.68	15.69	1 7.08
Extruding Machine Setters/Operators (Metal/Plastic)	7.12	7.90	8.38
Extruding/Forming/Pressing Operators/Tenders	5.10	5.48	8.64
First-Line Supervisors, Construction/Extractive	6.35	13.73	20.11
First-Line Supervisors, Helpers and Laborers	4.35	10.50	14.90
First-Line Supervisors, Mechanics	8.65	17.31	29.24
First-Line Supervisors, Production	7.05	17.31	26.00
First-Line Supervisors, Transportation	12.06	15.15	22.00
Freight, Stock and Material Movers, Hand	5.00	6.50	14.71
Furnace Operators and Tenders	9.80	11.89	13.99
Furnace, Kiln, Oven, Drier or Kettle Operators	5.00	12.31	16.88
Furniture Finishers	8.00	8.67	10.00
Grader, Dozer and Scraper Operators	7.50	11.85	16.09
Grinding and Polishing Workers Hand	4.98	5.39	5.60
Hand Packers and Packagers	4.25	4.90	8.21
Head Sawyers	9.00	9.52	9.78
Heat Treating, Tempering Machine Operators	10.63	11.78	14.51
Heating, A. C. and Refrigeration Mechanics	8.50	10.70	11.43
Helpers, Carpenters	6.50	7.35	7.75
Helpers, Electricians	6.03	8.54	11.00
Helpers, Mechanics and Repairers	5.00	6.56	8.25
Industrial Truck and Tractor Operators	7.25	9.02	11.57
Insulation Workers	9.00	9.78	10.00
Laundry and Drycleaning Machine Operators	4.50	5.34	6.53
Machine Assemblers	7.99	9.26	9.52
Machine Feeders and Offbearers	5.72	7.23	9.00
machine Tool Cutting Operators (Metal/Plastic)	9.79	10.55	10.60
Machinery Maintenance Mechanics	7.95	13.79	16.51
Machinery Maintenance Mechanics, Sewing	8.00	8.09	8. 77
Machinery Maintenance Mechanics, Textile	8.00	9.97	11.20
Machinists	9.71	11.21	14.78
Maintenance Repairers, General Utility	6.75	12.98	17.33
Metal Fabricators, Structural Metal Products	6.00	9.66	10.88
Millwrights	11.33	16.91	17.08
3-15

Charleston MSA
Hourly Wage ($)
Min.	Ave.	Max.

Mobile Heavy Equipment Mechanics, except Engines	9.97	10.14	11.00
Numerical Control Machine Tool Operators (Metal/Plastic)	8. 00	10.03	10.60
Operating Engineers	8.00	11.82	14.50
Package and Filling Machine Operators/Tenders	4.80	6.42	8.90
Painters and Paperhangers, Construction	8. 75	10.18	10. 75
Painters, Transportation Equipment	8.50	8.96	11.00
Paper Goods Machine Setters/Operators	6.20	9.44	11.75
Paving, Surfacing and Tamping Equipment	6.71	7.00	7.50
Plumbers, Pipefitters and Steamfitters	9.80	12.66	13.55
Precision Inspectors, Testers and Graders	8.53	11.51	16.17
Precision Instruments Repairers	16.07	16.60	1733
Precision Lithography and Photoengraving	7.05	9.22	10. 67
Press, Brake Machine Setters/Operators (Metal/Plastic)	6.29	6.68	9.20
Printing Press Machine Operators/Tenders	10.00	11.45	11.77
Production Inspectors, Testers, Graders, Sorters	5.00	8.54	12.54
Sawing Machine Operators/Tenders	5.91	8&16	9.92
Sewing Machine Operators, Garment	6.27	6.27	6.27
Sheet Metal Duct Installers	8.63	9.97	10.42
Sheet metal Workers	9.45	10.92	11.11
Shipfitters	10.97	10.98	11.00
Structural Metal Workers	11.00	12.50	13.50
Textile Machine Operators/Tenders	6.50	6.69	7.64
Textile Machine Setter/Operators	13.45	13.45	13. 45
Tire Repairers and Changers	5.25	6.48	710
Tool Grinders, Filers and Sharpeners	8. 65	10.56	14. 78
Tool and Die Makers	7.50	14.94	15.95
Truck Drivers, Heavy or Tractor Trailer	6.10	10.19	16.26
Truck Drivers, Light-including Delivery	5.06	9.70	13.28
Vehicle and Equipment Cleaners	5.00	5.47	6.40
Water and Liquid Waste Treatment Plant Operators	14.04	15.49	17.33
Welders and Cutters	9.50	10. 70	11.37
Welding Machine Setters/Operators	10.29	11.19	12. 60
Wood Machinists	7.25	8.94	9.50
Woodworking Machine Operator/Tenders	6.00	8.53	9.80
Woodworking Machine Setters/Operators	6.50	8. 85	10.03

Source: SC Employment Security CommLssion. The SC Wage Survey, 1992.
3-16

Berkeley and Dorchester Counties
Hourly Wage ($)
Min.           Ave.             Max.
Managerial and Administrative Occupations
Administrative Services Managers	4.55	14.61	34.20
Communications, Transportation and Utilities Mangers	11.54	24.45	28.14
Construction Managers	10.50	15.17	22.50
Engineering, Mathematical and Science Managers	16.00	26.40	43.26
Financial Managers	8.25	21.98	37.50
Food Service and Lodging Managers	5.80	5.85	6.00
General Mangers and Top Executives	9.00	23.95	62.50
Industrial Production Mangers	14.00	19.69	33.03
Marketing, Advertising and Public Relations Managers	6.50	22.80	44.94
Medicine and Health Services Managers	12.50	17.75	23.00
Personnel, Training and Labor Relations Managers	4.25	18.12	41.00
Purchasing Managers	8.80	10.18	12.00

Professional, Paraprofessional and Technical Occupations
Accountants, Auditors and Other Financial Specialists	6.65	17.23	25.82
Chemical Engineers	21.67	22.50	30.00
Chemical Technicians and Technologist	11.92	13.66	17.33
Chemists, Except Biochemists	20.20	24.24	32.21
Computer Programmer Aides	5.00	9.36	11.00
Computer Programmers	8.25	16.25	19.21
Cost Estimators	13.00	15.64	20.55
Dietitians and Nutritionists	5.50	8.54	10.06
Electrical and Electronic Engineers	21.63	21.63	21.63
Electrical and Electronic Technicians	13.50	15.05	17.30
Industrial Engineers, Except Safety	12.74	17.84	19.89
Instructors and Coaches, Sports and Physical Training	8.00	8.22	10.00
Licensed Practical Nurses	8.13	9.30	10.00
Mechanical Engineers	19.00	20.10	20.19
Pharmacists	18.00	20.72	22.33
Purchasing Agents and Buyers	8.00	17.11	36.83
Recreation Workers	6.30	7.15	8.00
Registered Nurses	10.00	12.37	15.03
Social Workers, except Medical and Psychiatric	8.25	8.49	8.59
Surveyors and Mapping Scientists	10.O0	10.37	10.92
Systems Analysts, Electronic Data Processing	17.41	21.02	22.00
Teachers, Preschool and Kindergarten	8.82	9.83	11.25
3-17

Berkeley and Dorchester Counties
Hourly Wage ($)
Min.            Ave.             Max.
Sales and Related Occupations
Cashiers	4.25	4.66	6.00
First Line Sales Supervisors	6.25	11.03	35.00
Sales Agents, Selected Business Services	7.70	9.09	13.24
Salespersons, Parts	5.97	7.08	10.00
Salespersons, Retail	4.59	8.65	20.00
Stock Clerks, Sales Floor	4.35	5.18	6.12

Clerical and Administrative Support Occupations
Billing, Cost and Rate Clerks	5.65	9.70	13.75
Bookkeeping, Accounting and Auditing Clerks	5.50	9.05	13.46
Computer Operators, except Peripheral Equipment	7.03	10.94	12.14
Customer Service Representatives, Utilities	9.76	9.76	9.77
Data Entry Keyers, except Composing	6.23	8.24	9.05
Dispatchers, except Police, Fire and Ambulance	7.00	10.53	15.00
General Office Clerks	5.50	8.64	11.32
Hotel Desk Clerks	4.25	5.38	5.75
Loan and Credit Clerks	7.06	7.07	7.08
Meter Readers, Utilities	9.95	11.13	12.48
New Accounts Clerks	7.61	8.00	8.39
Order Clerks-Materials, Merchandise and Service	6.00	6.58	7.15
Payroll and 7imekeeping Clerks	6.40	9.19	12.09
Personnel Clerks, except Payroll and Timekeeping	7.03	10.02	14.51
Receptionists and Information Clerks	4.68	6.96	9.75
Secretaries	5.75	9.83	12.31
Shipping, Receiving and Traffic Clerks	6.15	9.01	11.26
Stock Clerks-Stockroom, Warehouse or Storage	4.40	6.71	10.00
Supervisors, Administrative Support Occupation	6.10	14.19	25.17
Teachers' Aides and Education Assistants	4.81	5.93	6.85
Tellers	5.68	5.88	5.98
Typists	8.17	8.60	12.28
Typists, Word Processing Equipment	5.25	5.94	6.25

Service Occupations

Bartenders	2.13	4.27	6.00
Butchers and Meat Cutters	8.35	9.02	9.90
Child Care Workers	5.00	5.15	5.00
Combined Food Preparation and Service Workers	4.25	4.54	5.24
Cooks, Institution or Cafeteria	4.81	6.66	5.50
Cooks, Restaurant	4.90	6.89	14.04
Cooks, Short Order	4.29	5.16	6.00
Food Preparation Workers	4.46	5.15	8.00
Guards and Watch Guards	4.02	5.73	10.00
3-18

Berkelev and Dorchester Counties
Hourly Wage ($)
Min.	Ave.	Max.
Hosts and Hostesses	5.00	5.19	5.50
Housekeepers	4.81	5.00	5.03
Janitors and Cleaner, except Maids and Housekeepers	4.35	7.02	12.28
Maids and Housekeeping Cleaners	4.25	4.48	4.81
Nursing Aides, Orderlies and Attendants	5.00	5.25	7.54
Pharmacy Assistants	4.75	5.15	5.63
Waiters and Waitresses	2.13	3.70	4.25

Agricultural, Forestry, Fishing and Related Occupations
Gardeners and Groundskeepers, except Farm	7.75	8.03	10.00
Log Handling Equipment Operators	6.00	8.74	9.42

Production, Construction, Operating, Maintenance and Material Handling Occupations
Assemblers and Fabricators	7.79	9.03	10.11
Automotive Body and Related Repairers	9.34	9.67	10.00
Automotive Mechanics	7.50	11.26	14.00
Boiler Operator/Tenders, Low pressure	10.22	14.59	16.17
Bus Drivers	4.40	5.06	5.21
Bus and Truck Mechanics and Diesel Engine Specialists	9.05	11.86	16.61
Cabinetmakers and Bench Carpenters	9.38	9.69	10.00
Carpenters	10.00	11.03	11.50
Chemical Equipment Controllers/Operators	12.40	12.77	14.43
Concrete and Terrazzo Finishers	8.00	10.75	11.00
Conveyor Operators and Tenders	5.38	8.48	13.20
Crane and Tower Operators	11.26	12.43	14.50
Crushing/Grinding/Mixing Machine Operators	10.25	10.25	10.25
Electrical Powerline Installers and Repairers	15.28	15.87	16.50
Electricians	12.85	15.97	17.33
Extruding Machine Setters/Operators (Metal/Plastic)	7.12	7.90	8.38
First-Line Supervisors, Construction/Extractive	13.63	15.61	18.33
First-Line Supervisors, Helpers and Laborers	12.08	12.64	14.90
First-Line Supervisors, Mechanics	8.75	18.48	29.24
First-Line Supervisors, Production	7.05	16.18	21.84
Freight, Stock and Material Movers, Hand	4.36	9.28	14.71
Furnace, Kiln, Oven, Drier or Kettle Operators	5.00	12.31	16.88
Grader, Dozer and Scraper Operators	14.46	15.04	16.09
Grinding and Polishing Workers, Hand	4.98	5.39	5.60
Hand Packers and Packagers	4.25	6.93	11.57
Head Sawyers	9.00	9.52	9.78
Heat Treating, Tempering Machine Operators	11.63	12.00	14.51
Helpers, Carpenters	7.40	7.44	7.50
Helpers, Electricians	6.03	6.78	8.33
Industrial Truck and Tractor Operators	5.75	9.37	13.53
3-19

Berkelev and Dorchester Counties
Hourly Wage ($)
Min.	Ave.	Max.
Laundry and Drycleaning Machine Operators	4.50	4.88	5.00
Machine Feeders and Offbearers	5.25	8.90	9.00
Machinery Maintenance Mechanics	11.55	15.01	16.51
Machinists	9.75	11.54	14.78
Maintenance Repairers, General Utility	8.33	13.98	17.33
Metal Fabricators, Structural Metal Products	6.00	10.27	10.88
Numerical Control Machine Tool Operators (Metal/Plastic)	8.00	10.04	10. 60
Operating Engineers	8.00	9.21	11.63
Precision Inspectors, Testers and Graders	8.53	11.51	16.17
Press, Brake Mchine Setters/Operators (Metal/Plastic)	6.29	6.68	9.20
Production Inspectors, Testers, Graders, Sorters	6.30	10.05	12.54
Sawing Machine Operators/Tenders	5.91	8.16	9.92
Structural Metal Workers	11.00	12.50	13.50
Textile Machine Operators/Tenders	5.08	7.36	7.64
Textile Machine Setter/Operators	13.45	13.45	13.45
Tire Repairers and Changers	5.25	6.38	7.00
Tool Grinders, Filers and Sharpeners	8.65	10.56	14.78
Tool and Die Makers	750	15.30	15.95
Truck Drivers, Heavy or Tractor Trailer	7.95	9.27	13.20
Truck Drivers, Light-Including Delivery	4.75	7.15	13.20
Vehicle and Equipment Cleaners	5.50	5.84	6.40
Water and Liquid Waste Treatment Plant Operators	14.04	15.41	17.33
Welders and Cutters	9.50	11.07	11.25
Welding Machine Setters/Operators	10.29	10.87	12.60
Woodworking Machine Operator/Tenders	6.00	8.53	9.80


Source: SC Employmem Securily Commission. The SC Wage Survey, 1992.
3-20

Charleston County
Hourly Wage ($)
Min.           Ave.             Max.
Managerial and Administrative Occupations
Administrative Services Manager	6.55	11.07	20.54
Communications, Transportation and Utilities Managers	12.50	16.54	21.63
Construction Managers	7.50	17.55	26.20
Education Administrators	12.00	23.99	29.45
Engineering, Mathematical and Science Managers	12.00	29.20	37.02
Financial Managers	12.00	20.29	36.00
Food Service and Lodging Managers	7.03	10.76	17.64
General Managers and Top Executives	10.00	28.57	63.00
Industrial Production Managers	12.00	17.48	28.32
Marketing, Advertising and Public Relations Managers	10.00	20.90	40.00
Medicine and Health Services Managers	21.50	21.79	21.80
Personnel, Training and Labor Relations Managers	6.15	16.74	28.25
Property and Real Estate Managers	16.47	18.03	21.15
Purchasing Managers	7.50	13.93	19.50

Professional, Paraprofessional and Technical Occupations
Accountants, Auditors and Other Financial Specialist	8.00	11.79	21.17
Announcers	4.63	7.86	8.40

Artists and Related Workers	11.09	11.46	12.37
Chemical Engineers	25.63	28.56	28.85
Chemical Technicians and Technologists	10.60	13.20	13.46
Chemists, except Biochemists	16.82	17.48	18.30
Civil Engineers, including Traffic	14.17	16.22	21.00
Computer Programmer Aides	9.00	12.70	19.39
Computer Programmers	9.75	14.12	22.02
Cost Estimators	12.50	17.31	19.38
Designers, except Interior Designers	9.27	10.30	12.37
Drafters	8.89	10.78	11.12
Electrical and Electronic Engineers	17.33	19.29	23.60
Electrical and Electronic Technicians	9.42	13.78	15.98
Employment Interviewers Employment Service	9.00	10.88	11.50
Industrial Engineers, except Safety	12.50	13.94	14.90
Instructors and Coaches, Sports and Physical Training	5.00	9.19	14.00
Instructors, Nonvocational Education	10.25	10.96	16.64
Interior Designers	10.00	23.33	30.00
Lawyers	15.25	38.21	100.00
Licensed Practical Nurses	9.90	10.31	12.45
Mechanical Engineers	18.70	19.16	20.55
Paralegal Personnel	9.80	11.84	13.50
Personnel, Training and Labor Relations Specialists	16.13	16.93	18.15
3-21

Charleston County
Hourly Wage ($)
Min.	Ave.	Max.
Pharmacists	18.64	18.67	19.93
Photographers	7.38	11.99	14.62
Physical Therapists	16.64	17.73	22.00
Physicians and Surgeons	32.93	63.52	100.00
Professional Librarians	10.05	12.26	17.88
Public Relations Specialists and Publicity Writers	6.34	Z56	10.00
Purchasing Agents and Buyers	7.46	11.50	16.00
Recreation Workers	5.50	6.09	10.50
Registered Nurses	16.20	16.20	16.20
Social Workers, except Medical and Psychiatric	8.00	13.29	14.00
Systenms Analysts, Electronic Data Processing	13.00	19.60	23.07
Teachers, Elementary School	10.83	14.10	19.70
Teachers, Preschool and Kindergarten	8.50	9.73	14.00
Writers and Editors	13.68	28.41	35.35

Sales and Related Occupations
Cashiers	4.25	4.94	6.38
Door-to-Door Vendors and Solicitors	4.25	4.40	5.00
First Line Sales Supervisors	6.13	11.34	16.41
Sales Agents and Placers, Insurance	9.62	10.68	13.60
Sales Agents, Advertising	12.00	17.69	20.65
Sales Agents, Selected Business Services	Z7.50	11.60	16.62
Sales Representatives, except Scientific Products	6.00	13.66	16.00
Sales Representatives, Scientific Products	12.00	14.00	16.00
Salespersons, Parts	6.00	8.43	10.46
Salespersons, Retail	4.56	6.89	11.00
Stock Clerks, Sales Floor	4.88	5.30	6.15

Clerical and Admninistrative Support Occupations
Adjustment Clerks	5.93	6.82	8.91
Bill and Account Collectors	8.38	8.41	8.44
Billing, Cost and Rate Clerks	5.22	7.80	10.14
Billing, Posting, Calculating Machine Operators	9.00	9.00	9.00
Bookkeeping, Accounting and Auditing Clerks	6.12	8.89	12.38
Computer Operators, except Peripheral Equipment	7.o00	9.46	12.77
Data Entry Keyers, except Composing	6.23	7.21	8.74
Dispatchers, except Police, Fire and Ambulance	8.87	10.69	14.38
File Clerks	5.25	5.92	7.00
General Office Clerks	6.25	8.01	15.00
Hotel Desk Clerks	5.00	5.71	6.00
Insurance Clainms Clerks	5.32	7.26	9.20
Insurance Policy Processing Clerks	7.87	7.87	7.87
3-22

Charleston County
Hourly Wage ($)
Min.	Ave.	Max.

Loan Interviewers	7.51	8.16	10.40
Loan and Credit Clerks	6.20	8.62	10.63
Mail Clerks, except Mail Machine Operators	6.09	6.61	7.11
Mail Machine Operators, Preparation and Handling	4.60	6.73	6.94
Messengers	4.27	4.90	5.95
New Account Clerks	7.51	9.79	10.97
Order Clerks Materials, Merchandise and Service	5.60	9.79	13.55
Order Fillers, Wholesale and Retail Sales	4.75	6.01	7.o00
Payroll and Timekeeping Clerks	6.25	9.51	13.79
Personnel Clerks, except Payroll and Timekeeping	6.00	8.95	12.02
Production, Planning and Expediting Clerks	5.00	9.91	14.50
Real Estate Clerks	7.74	9.19	9.92
Receptionists and Information Clerks	5.50	6.37	8. 67
Secretaries	6.75	8.32	10.24
Shipping, Receiving and Traffic Clerks	5.71	9.01	13.55
Stock Clerks/Stockroom, Warehouse or Storage	5.00	6.64	7.58
Supervisors, Administrative Support Occupation	5.85	10.17	15.63
Switchboard Operators	6.00	6.12	8.&46
Teachers' Aides and Education Assistants	6.00	6.95	6.50
Tellers	6.23	7.53	7.82
Typists	4.42	7.53	9.04
Typists, Word Processing Equipment	6.75	8.00	12.00

Service Occupations
Baggage Porters and Bellhops	4.25	4.26	4.35
Bakers, Bread and Pastry	4.75	6.67	10.00
Bartenders	2.13	4.24	5.50
Butchers and Meat Cutters	6.50	8.90	12.50
Child Care Workers	5.00	5.67	6.00
Combined Food Preparation and Service	4.49	4.51	4.88
Cooks, Institution or Cafeteria	5.00	6.75	7.10
Cooks, Restaurant	6.00	6.89	8.00
Cooks, Short Order	4.50	5.40	7.22
Counter Attendants-Lunchroom, Coffee Shop or Cafeteria	4.50	4.95	5.10
Dining and Cafeteria Attendants and Bartender Helpers	3.00	3.09	4.75
Food Preparation Workers	4.50	5.29	5.87
Guards and Watch Guards	5.50	6.54	12.58
Hosts and Hostesses	2.13	4.11	5.50
Housekeepers	4.25	7.18	9.90
Janitors and Cleaners, except Maids and Housekeepers	4.25	5.26	7.O00
Maids and Housekeeping Cleaners	4.78	5.46	16.67
Medical Assistants	5.05	7.08	10.25
3-23

Charleston Countv
Hourly Wage ($)
Min.	Ave.	Max.

Nursing Aides, Orderlies and Attendants	4.80	5.58	5.91
Physical and Corrective Therapy Assistants	11.90	12.04	14.42
Waiters and Waitresses	2.09	2.65	6.91

Agricultural, Forestry, Fishing and Related Occupations
Gardeners and Groundskeepers, except Farm                        5.00            5.67              6.30

Production, Construction, Operating, Maintenance and Material Handling Occupations
Assemblers and Fabricators	5.50	5.55	6.00
Automotive Body and Related Repairers	7. 75	9.18	9.90
Automotive Mechanics	8.15	13.15	16.35
Bus and Truck Mechanics and Diesel Engine Specialists	9.21	9.68	11.50
Captains, Water Vessel	10.50	12.38	15.20
Carpenters	8.42	9.56	10.00
Cementing and Gluing Machine Operators/Tenders	4.50	6.00	9.93
Chemical Equipment Tenders	6.10	7.39	8.14
Coating/Painting/Spraying Machine Operators	6.00	7.97	10.00
Concrete and Terrazzo Finishers	6.84	8.82	9.00
Crushing/Grinding/Mixing Machine Operators	5.00	7.70	8.97
Cutting and Slicing Machine Operators/Tenders	7.44	8.22	8.64
Driver and Sales Workers	9.80	9.92	10.10
Electric Motor, Transformer and Related Repairers	7.15	7.67	10.00
Electrical and Electronic Assemblers	7.07	7.24	8.42
Electricians	8.68	15.61	17.08
Extruding/Forming/Pressing Operators/Tenders	5.10	5.48	8.64
First-Line Supervisors, Construction/Extractive	6.35	13.43	20.11
First-Line Supervisors, Helpers and Laborers	4.35	9.31	10.87
First-Line Supervisors, Mechanics	7.50	15.09	23.17
First-Line Supervisors, Production	8.00	19.20	26.00
First-Line Supervisors, Transportation	12.64	15.52	22.00
Freight, Stock and Material Movers, Hand	5.00	5.71	12.17
Furniture Finishers	8.00	8.67	10.00
Grader, Dozer and Scraper Operators	7.50	7.80	7.91
Hand Packers and Packagers	4.25	4.85	6.00
Heating, A.C. and Refrigeration Mechanics	8.50	10.70	11.43
Helpers, Carpenters	6.50	7.32	7.75
Helpers, Electricians	9.28	10.66	11.00
Helpers, Mechanics and Repairers	6.00	6.98	8.25
Industrial Truck and Tractor Operators	7.25	8.54	9.00
Laundry and Drycleaning Machine Operators	4.50	5.40	6.53
Machine Assemblers	7.99	9.26	9.52
Machinery Maintenance Mechanics	7.95	10.41	12.50
3-24 -.

Charleston County
Hourly Wage ($)
Min.	Ave.	Max.

Machinists	9.68	10.87	13.00
Maintenance Repairers, General Utility	6.00	10.54	15.00
Metal Fabricators, Structural Metal Products	8.25	8.97	14.00
Millwrights	17.08	17.08	17.08
Mobile Heavy Equipment Mechanics, except Engines	9.97	10.07	11.00
Operating Engineers	12.00	12.31	14.50
Package and Filling Machine Operators/Tenders	4.80	6.42	8.90
Painters, Transportation Equipment	8.50	8.96	11.00
Paper Goods Machine Setters/Operators	6.20	9.44	11.75
Paving, Surfacing and Tamping Equipment	6.71	7.00	7.50
Plumbers, Pipefitters and Steamfitters	9.80	12.66	13.55
Precision Instruments Repairers	16.07	16.12	16.50
Precision Lithography and Photoengraving	7.05	9.22	10.67
Printing Press Machine Operators/Tenders	10.00	11.45	11.77
Production Inspectors, Testers, Graders, Sorters	5.00	6.45	7.94
Sheet Metal Duct Installers	8.63	9.97	10.42
Sheet Metal Workers	9.45	10.92	11.11
Tire Repairers and Changers	5.50	6.61	7.10
Truck Drivers, Heavy or Tractor Trailer	6.10	10.34	16.26
Truck Drivers, Light-Including Delivery	5.30	9.91	13.28
Vehicle and Equipment Cleaners	5.00	5.18	5.88
Water and Liquid Waste Treatment Plant Operators	16.50	16.65	16.80
Welders and Cutters	9.50	10.58	11.72



Source: SC Employment Security Commission. 7The SC Wage Survey, 1992.
3-25

Cost of Living Index
Charleston MSA


Item

Composite Index


Grocery Items


Housing



Utilities



Transportation
Index
99.6
93.6
96.9
96.7
96.4
Health Care



Misc. Goods & Services







.Sm: ARC(.o, .  iq lod.. Vil7. N/. I. IS7l 07-7O, I Q.i.r 19~k
105.6
104.8
3-26

CONSTRAINTS AND POTENTIALS
I
4-1

CONSTRAINTS AND POTENTIALS

BASE CLOSURE

There has been much "ballyhoo" regarding the affects of the defense drawdown. According to
the Report of the Defense Conversion Commission titled "Adiustina to the Drawdown", the
conversion process is viewed in conflicting ways; "as an opportunity to convert the defense
industry to peacetime uses, as a drain on the economy, as a budgetary source of "peace
dividends", or as a reward for winning the Cold War."' Confusing, yes - enlightening, no.

The cold facts are discouraging. The truth is that from the private sector the past record of
defense conversion, according to Martin Marietta chairman and CEO Norman Augustine, is
"unblemished by success. "I This is not only one'man's opinion. The 1990 report to Congress
by the Arms Control & Disarmament Agency somberly agrees by stating, "detailed research has
not identified a successful product in our economy today which was developed through a
military-to-civilian approach."' Yet in spite of the inability of the private sector to adapt to the
military drawdowns of the past, the public sector still feels compelled to attempt what the private
sector has never been able to do.

What are the implications for Charleston. It seems that based on the past, it is unreasonable to
assume that present industrial operations can be salvaged in their present form. Those industries
that have military contracts are specialized in their areas of expertise but probably can't compete
outside of their own market niche, even though there may be some similarities. In short, accept
the inevitable and start initiating economic development policies to recruit industry as well as
to grow industry at home.

The Defense Authorization Act of 1993 is an initiative from the current administration intended
to "fast track" the reuse of closed bases by accelerating the process of transferring surplus
military property into the hands of local development agencies and private sector developerS.4
(Reference Appendix 5 - Executive Order 12788 and 12.607 Community Planning and
Assistance Program) There are five components to this program as follows:

*	Job-centered property disposal, with priority to economic redevelopment.

P	ast-track cleanup relating to hazardous wastes and other environmental questions.

*	Expedited transition and redevelopment assistance for both workers and their communities.

*	Transition coordinators, assigned to bases to be closed or severely realigned.

*	Economic adjustment grants for affected comnmunities
Handled properly, a base closure can lead to new economic vibrancy. Closed facilities leave
behind air strips and runway systems that adapt well to regional or private airport development -
with plenty of developable land adjacent. In addition, they leave behind port facilities, already
4-2

in place, just waiting for companies that need adjacency to waterborne shipping. Furthermore,
they leave behind a variety of facilities adaptable to may uses, including manufacturing, offices,
laboratories, back offices and usually at very reasonable costs. So significant is the national
economic impact of military cutbacks that the conversion of closed facilities is and industry in
itself with its own trade association - the National Association of Installation Developers
(NAIlD). On the public side, the Department of Defense has within its agency the Office of
Economic Adjustment (OEA) that assists communities adversely affected by closures,
realignments, and cuts in defense industry employment.'

According to the President's Economic Adjustment Committee, there appear to be ten principles
that have characterized successful economic conversion strategies:6

Unity - Defense job losses, whether from military installations or from defense plants, are no respecter of
city limits or jurisdictional county boundaries. The entire community is affected and the solution lies in
cooperative efforts toward a common goal.
Organization - The success of community efforts have been greatly enhanced by the early development of
action committees dedicated to the formulation of policy objectives and goals.

Plan - Organizational action without a charted direction is at best inefficient and at worst totally ineffective.
Typically, the first task is to develop a strategy that will use the assets of the about-to-be deactivated base.
The plans must, however, remain flexible.

Leadership - The conversion of bases to civil uses or the filling of a former defense plant with new civil
activity is almost always a grass roots enterprise that calls for strong, capable local leaders.

Advice - There is a considerable amount of information available from consultants outside professionals
and consultants that do not necessarily have to be from the Charleston Harbor Area. Similar experiences
are an invaluable asset as well as an objective outside opinion.

Acquisition - Expanding industry gravitates to localities that have suitable land and buildings to
accommodate manufacturing and commerce. Most base closing offer this resource but should not be used
to drive local economic development policy. Instead, available properties should be viewed as just another
alternative.

Development - Raw resources are seldom as attractive asfacilities specifically designed to meet the need
of commerce and industry. Property acquisition and property development are not synonymous.

Promotion - The hardest and most sensitive step in repopulating a former base of Defense plant is the
campaign to attract industry. A good sales strategy tailored to a community's most convincing attributes
is essential.

Management - Industrial enclaves, whether on aformer military facility or located elsewhere, proper over
the long term through good management. The same principles that guide commercial and industrial real
estate development apply.
Reflection - A sense of urgency that helps to strengthen the community's ties to the proper agencies in the
state and federal government should always be pursued.
4-3

Economic Impact
The economic impact to the Charleston area will be significant. Based on a study performed
by the Charleston Trident Chamber of Commerce there will be a total of 21,902 jobs lost with
a resultant annual payroll reduction of $644.0 million. This loss, however, will be countered
by an expansion of 6,165 jobs and payroll of $251.0 million at the NAVALEX (Naval Electronic
Systems Engineering Center). The following tables illustrate the various statistics associated
with the base closure:
EMPLOYMENT IMPACT


FACIL177TIES TO CLOSE OR REALIGN:
Active Civilian
Contract
Total
Naval Shipyard
14,990  1,071
93
16,154
Shipyard

Defense Distribution Depot
64   5,000      0
5,064
5        291
0
296
Supply Center
17     357    14
388

21,902
Tota
l
15,076 6,719
107
FACILITIES RETAINED OR EXPANDED:
Active Civilian Contract
Total

4,380

120

136

1,52
9

6,165
NAVELEX

Shipyard

Supply Center

Hospital

Tota
l
10	1,051
3,320

0	120	0

5	131	0

898	427
	204

913	1,728
3,524
Source: Center for BuSineSS Research, Ouareston Trident Camber of Commere.
4-4

PAYROLL IMPACT (TIMES X $1,000)




FACILITIES TO CLOSE OR REALIGN:
Active
Civilian

27,567

221,930

10,047

9,606

269,150
Contract

2,519

0

0

426

2,945
Total

396,386

226,502

10,280

11,049

644,217
Naval Shipyard

Shipyard

Defense Distribution Depot

Supply Center

Total
336,300

4,572

233

1,017

372,122
FACILITIES RETAINED OR EXPANDED:
Active

436

4,572
Civilian

48,258

5,326

3,525

12,072

69,181
Contract

127,267

0

0

9,305

136,572
Total

175,961

9,898

3,824

62,269

251,952
NA VELEX

Shipyard

Supply Center

Hospital
299

40,892

46,199
Total
Source: Cooerfor Business Resarch. Choreston Trident Omber of Commerce.
4-5

INDIRECT ECONOMIC IMPACT

($000)
Indirect	Indirect
Jobs	Earnings
.($000)
Total Indirect
Economic Impact


3,709


11,182


27,692



49,010


95,774

93,978


36,052


114,898


137,156



569,451
Sector
Agriculture & Mining


Construction


Manufacturing


Transportation, Communications
& Public Utilities


Trade


Real Estate


Health Services


Other Services


Households



Total
127


251


373



431


3,28
7


200


806


3,33
4


386



9,195
1,358


5,068


6,688



12,174


44,674


3,344


20,168


41,068


2,508



137,050
Source:    Center for Business Reserch. Charleston Trident Chamber of Commerce.- U.S Bureau of Economic Analysis, Regional Input-Output
Modeling System
4-6

Military Base Reuse
The Office of Economic Adjustmnent (OEA) has compiled a history of over 29 years of Military
Base Reuse to identify military and civilian job losses, the replacement of civilian jobs and the
principal industriallcommercial public reuse activities along with the industrial contacts who can
provide additional information.   A  summary of this data is attached in the following pages
which may provide insight into those types of activities which have been successful.

The OEA has determined that the following collective experience has been recorded:'

*   New Jobs Replace DOD Civilian Losses: A total of 158,104 civilian jobs are now located on the former
Defense facilities to replace tlae loss of 93,424 former civilian DoD and contractor jobs.

*   New Educational Opportunities:   A number of four-year colleges, and post-secondary vocational
institutions or commaunity colleges, as well as high school vo-tech programs have been established on
former military bases.

*   Student Enrollnents: There are 73,253 college and post-secondary~ students; 25,055 secondary vo-tech
students; and 62,156 trainees receiving education and training at 57 former military bases.

*   Industrial and Aviation Uses: Office industrial parks or plants have been established at 76 of the former
Defense bases. Forty-two of the former bases are being used as municipal or general aviation airports.
The OEA has speculated that there is a transition period of between 3-5 years in securing the
new civilian uses. Additionally they have provided a survival guide for base closings:

A SURVIVAL GUIDE FOR BASE CLOSINGS
1.	Don't fight it. Get on with the planing.
2.	Create an effective local organization to set policy. But keep it small.
3.	Take control of the planning.
4.	Negotiate as much lead time as possible for the final date of closure, if possible.
5.	Bargain as hard as you can with the federal government about what it will give you.
6.	Beware of environmental hazards.  Old military sites are often sites of large underground tank
farms and asbestos-ridden buildings. Make sure the federal government cleans them up or
assumes liability for them.
7.	Watch out for hidden costs.
8.	If you don't have the expertise, hire it. But don't get involved in a long term contract.
9.	Find someone in Washington who can act as a liaison between you community and the various
federal agencies you must deal with.
10.     Consider joining the National Association of Installation Developers.
A  typical Base Closure can be illustrated on a generic time line on the following graphic
showing the major actions that need to be established by the Department of Defense and the
4-7

community in order to close a base - and how they relate to each other.7 Even though this time
line may not specifically apply to the current situation at Charleston, it is nonetheless
representative of the sequential order of activities that will occur. The key element to success
is organization. This necessarily includes overall coordination, planning and implementation.
While this may seem on the surface to be a logical conclusion, it is not small undertaldng and
requires the cooperation of the entire community - public and private.

It is not necessary to recreate the wheel when faced with a base closure. Where appropriate,
existing organizations can take on the lead responsibility.   For example, a chamber of
commerce, are-wide planning/development council, local and regional economic development
groups or special authorities (ie. Port authorities) already have the expertise and resources to
perform the necessary recruitment activities. Usually, supplemental support to add staff and
funding will provide a far greater return on effort due to the critical mass already present in
these organizations as opposed to the creation of a separate entity. Furthermore, the sharing of
resources with diverse groups toward a common goal further promotes the efficacy of these
recruitment efforts. This has historically been a problem of many communities and is probably
more severe in Charleston than in most.

There is a general decline in Federal program resources, along with greater control of Federal
block grants by states. As a result, the states will play a greater role in the development and
implementation of economic development programs for communities hard hit by base closures.
In addition, the responsibility of communities and their respective private sectors will be equally
important. If the community has elected to perform recruitment in a vacuum without the
assistance of the state, or conversely if the state has not provided the necessary support to the
community the community will face an impossible task.

The following excerpt from the Federal Planner's Network is an appropriate guideline to
consider when determining the organization, planning and implementation of a program to
counter the effects of base closures:"




Organization

What?         Large, urban communities usually have organizational mechanisms to deal
with the problem. Often the responsibility for coordination, planning and
implementation can readily be assigned to some existing agency or
authority. Most communities need to establish a task force or council to
coordinate activities and address the specialized issues a base closure
creates.

Who?          This organization should reflect a cross section of public and private
sector leadership. It is not a "blue ribbon" committee created to give
4-8

visibility to certain individuals and no commnitment of action. It must be
a core of dedicated, strong, knowledgeable, capable individuals that can
get the job done quickly, with the communities future uppermost in their
minds with a track record of accomplishments to prove it.  The
organization must be structured to suit the mnagnitude of the problem and
time frame for closure. About six to eight members is usually sufficient.
The members should be non partisan and often should have memberships
that are multi-jurisdictional to represent the impact area.

Type?         Usually a new, often temporary or transitional, economic adjustment
council, task force or steering committee is created. The initial committee
is destined for replacement.

Purpose?      The major function of the organization is to be the focal point for the
community adjustment activities and for Federal Govemnment interaction
with the community. It is also the foruni for community issues and
concerns, provides policy guidance on local economic adjustment
activities. It usually develops the economic recovery strategy (action plan)
and base reuse plan.
Goals?











Authority?









Operation?
The organization must provide leadership and build consensus within the
community to coalesce diverse interests. As a forum, it is a place to
express ideas. The organization need to develop a strategy that sets the
future development direction and provides vision.   This adjustment
strategy needs to focus on job creation of a balanced base reuse plan that
provides a reasonable mix of public and private uses with complementary
land uses. A property acquisition plan and scheme for operation of the
base must also be prepared. Vitally important is keeping momentum and
interest by ensuring public awareness about recovery efforts. This ca be
done through relations with the mnedia, and perhaps with a newsletter that
describes activities of the organization.

Typically the authority is advisory only. However, it could have limnited
purposes, prescribed by the local, regional or state laws. These might be
base reuse planning, redevelopment, and/or management and operations.
If recovery responsibilities have been vested in legally established entities,
like and airport, port or economic development authority, and agencies of
local or state government, mandates and authorities are already
established. These may require augmentation to undertake economic
adjustment.


To maximize citizen participation, a structure of subcommnittees in
functional areas should be formed.   The number and titles of the
4-9

subcommittees should be determined according to the magnitude of the
closure impact and extent of need. Their purpose is to expand the scope
of the capabilities of the organization, broaden community participation
in the economic adjustment process, explore, deliberate and make
recommendations on approaches and base reuse options. Likely arma of
concern would be:

Education    Manpower Training
Health	Base Reuse Planning
Finance	Transportation
Tourism	Environmental Quality
Recreation	Economic Development
Housing	Public Works (Utilities)

StaMf         To function efficiently and be effective, the adjustment organization needs
a small staff. A director or coordinator with one or two supporting staff
members should be sufficient. However, its capabilities can be expanded
by using or allying with existing organizations such as planning
commissions, economic development agencies, airport and port
authorities, or other local, county and state agencies. Professional help
should be- sought by contracting for studies, economic adjustment
strategies and base reuse plans
4-10

BASE CLOSURE PROCESS
YEAR 1
Military Actions
Announcement and
Congress Action

Budget New Facilities
Year 2
Year 3
Year 4
Design & Construct New Facilities

Identify Excess
Holding Agency Property Actions


Base Closing Process
Base Propc
-U.
erty Disposal
i
Final Screening
Relocate Mission

Final Sale Conveyance
Detailed  : Disposal Agency Actions

Screening:
X
Operating Local, State, Federal Meeting

on Community Base Reuse Plan
Communitv Actions
O:      _ar zea
Pase Keuse Pan
mm _n ___
I,nol i
Lloual FO
ani_.i* _l    'tll.jfy   . Jl"_
iai.[l r aIcL-v rI. L  Ll
_MarIet rroperty
Arrange Pinaning (irants:
intenm Use
i -
Make Purchase
X
4-11

PlanninL
y
The planning process is a complex undertaling that includes assessing the redevelopment
potential of the base in the context of ongoing development (community and economic) and
integrating the base with the community. This is an immense task that must be undertaken
within a short time period. The planning challenge requires a rigorous approach, that starts with
overall community goals and ends in the implementation of a plan broadly conceived, finely
honed and supported by consensus. The Office of Economic Adjustment has created a diagram
that is typical of the planning process in a sequential basis.
The first step is determination of overall goals and objectives to guide the
planning process. These should emanate from the economic adjustment
organization established during the organization phase of the adjustment
process. The goals for the base are a part of the overall economic
recovery strategy developed by the organization. This strategy helps
restore the private sector confidence and promises renewed business
investment.
Goal Formulation
Usualty the major goal is job creation. Others might include economic
viability of redevelopment, tax base expansion, diversification of the local
economy, maintenance of a certain environmental quality, meeting
affordable housing needs, or to create a certain redevelopment theme.
Objectives
The planning process also needs more specific site development objectives
to guide planning. These usually include:
*Replacement of civilian jobs lost;
*Public use of portions of the site:
*Highest and best use of land and facilities:
*Phased development to meet short term goals, but not
preclude long term goals;
Ex&panded site access via roads, rail and water;
*High quality appearance;
*     ~Compatibility   with  existing   and  planned   off-site
development,
*image change form military to civilian; and
*Minimum public cost
4-12

Analysis              Once the guiding goals and objectives have been adopted, considerable
baseline data collection and contextual analysis needs to be completed that
will allow the rational development and evaluation of feasible reuse
alternatives for the base. Engineering drawings and information on the
base operations are a crucial source of information. This is available
form the base engineer. Unique buildings, physical features, or other
major assets should be identified, as they may provide a marketing theme
for the converted base.

Redevelopment might fit neatly into an existing economic development
strategy for the area, however, it is more likely that the base and its
buildings bring a new competitive element to the area, a new marketing
angle. This requires afresh look at area development assets, analysis of
feasible business opportunities, and  a revision of the strategy.   The
competitive niche must be identified.

Each base has some unique facilities or capacities that expand local
economic development horizons. In all places it is critical that community
leaders have vision when they plan for redevelopment of the base.



Uses                 The experience of over 100 communities that have successfully converted
former military bases to productive civilian uses shows many common
uses:

*        Industrial and office parks are located on more than 75
bases;

*	Educational institutions are on 57 bases,

*	Public airports are located on 42 bases;

ï¿½	Public recreation facilities are located on 27 bases; and

*	Health related activities are on 19 bases

Potential and private uses are as broad as the imagination, practicality
and feasibility permit. Typical categories include: aviation, commerce,
industry, education, health, recreation, prisons, housing, and public
administration. Facility surveys and market analysis will reveal which
uses are possible. Public input through the subcommittee structure of the
economic adjustment organization will also help to identify potential public
and private uses.
4-13

Altemnatives
A range of feasible, alternative concepts should be developed and
evaluated, using the goals and objectives as a measurement. Throughout
the development and analysis of alternatives, public participation is
essential to help arrive at consensus on the development concept.

An important ingredient to this part of the planning process is knowledge
of land acquisition choices. If one of the major objectives is to minimize
public costs, a balance of public benefit (no cost) acquisition and private
sector redevelopment is a wise pursuit. Public or nonprofit use of
portions of the base for aviation, education, recreation, wildlife
conservation, and health purposes are generally at no cost. However,
there will be public costs to redevelop and operate these facilities, with
little or no tax revenue generated. Also, public benefit uses have 'st rings"
attached. They must continue to be used for these public purposes,
constraining long-range development fle-xibility.
Detailed Plans
After a consensus is reached in the overall development plan, and the
federal disposal agent (either the department of Defense or General
Services Administration) agrees with the acquisition proposals to
implement the plan, work can begin on the details of the site layout,
parcelization, phased redevelopment, design controls, and property
management considerations. It will be important to establish the :new
civilian look: for the base early in the conversion process. This may
include the creation of a new entrance, demolition of obsolete buildings
or structures and landscaping to achieve the desired image. Local
comprehensive plans and zoning must be updated and adopted to reflect
the reuse plan. It is imperative that the these decisions be made before
the disposal of propert by the Federal Government, particularly those
portions of the base that will be purchased by the private sector.
4-14

REUSE PLANNING PROCESS DIAGRAM
~~~Cmunity Goals
I
I
IMarket Studies
I
m ~~~~I
Facility Surveys
I
~~~~~~~~~I
I
a



National

Regional'.
Land Areas
Buildings

Infrastructure

Da~~ve Pl~an
Impleamentation'
1
wommm
a
Source: Office of Economic Adjustment

Summary of Completed Military Base Economic Adjutnment Projects - 1961 to 1990
The best indicator of the past can many times be determined by the events of the past. As
mentioned previously on page 4-7, the OEA has compiled a history of over 29 years of Military
Base Reuse to identify military and civilian job losses, the replacement of civilian jobs and the
principal industrial/cornmercial public reuse activities as well as the industrial contacts who were
involved with each of the respective reuse activities. The attached graphic illustration indicates
the location of each of the bases in the United States.

Many of the activities that occurred (and still occurring) can be looked at as a guideline to the
development opportunities available in the Charleston region.   Of particular note is the
concentration of economic developmnent activity that is synergized by the inherent strengths of
either the particular comnmunity impacted or that of the manpower skills, infrastructure or other
remaining activities as a result of the military installation itself. A typical example, though in
the opinion of the consultant very much under utilized, is Donaldson Air Force Base in
Greenville, South Carolina. The sheer size of the airport taxiway was instrumental in inducing
Lockheed to maintain a presence there. In addition, as a general aviation center, the facility has
the capability to land virtually any size cargo plane for logistics support. Magna International,
a metal stamping parts supplier to BMW, though not attracted by any particular attribute of the
base itself, will act as a catalyst for future development for the Air Park.

In a similar fashion, Charleston has several major inherent advantages as a result of the urban
concentration, natural harbor orientation and other important advantages that should be
considered. The following are examnples of uses that could be instrumental in the future
development of the base.
4-16













*  Military bases slated for closure, consolidation    k	/
or realignment                                     t	#
 Former military
bases

Summary of Completed Military Base Economic Adjustment Projects 1961-1990
April-June 1990

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Coden, AL	1971/1972	26/(112)              45	Marine Environmental	167(C)	Dr. George F. Crozier, Director, Marine
Dauphin Island	Science Consortium	16,000(S)	Environmental Science Consortium, P.O.
Air Force Station	Box 369-370, Dauphin Island, AL 36528
(205) 861-3702
Mobile, AL                              1965-69/1969        12,300/(1,070)          3,000	Teledyne-Continental	1,400(c)	Larry Cook, Manager, Mobile Aerospace
Brookley AFB and Mobile Air	Motors	20,000(T)	Industrial Complex, 1891 9th Street,
Material Area	International Paper,	Mobile AL 35516 (205) 438-7334
International Systems,
University of South
Alabama, Mobile
Airport Authority
Mobile, AL                                1965/1956               14/-              1,550	Degussa-Alabama Inc,	Jay Gamer, Mobile Alabama Chamber of
Theodore Army Terminal	Kerr-McGee, Linde,	Commerce, P.O. Box 2187, Mobile, AL
Ideal Basic Industries,	36652
Mobile Paint Mfg Co,	(205) 433-6951
Huls, Taylor Wharton,
Ultraform
Selma, AL                                 1997/1978           547/(1,863)            390	Superwood Inc, Tri	100(c)	Hugh Allen, Executive Director, Craig
Craig Air Force Base	Tech Services, Beech	500(t)	Field Airport and Industrial Authority,
Aero Spares Services	P.O. Box 1421, Selma, AL  36701
Inc., American Candy	(205) 874-7419
Co, Alabama State
Trooper Academy,
George Wallace
Community College,
Municipal Airport
Thomasville, AL                           1970/1971             18/(110)             200	Thomasville Adult	Dr. Parker Edwards, Director,
Thomasville Air Force Station	Adjustment Center	Thomasville Adult Adjustment Center,
P.O. Box 309, Thomasville, AL
(205) 636-5421
4-18

Civilian Jobs
Year	Lost	College
ImpactlYear	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Kenai, AK	1972/1974	63/(380)	116	Kenai Native Association	Willa Konte, General Manager, Kenai
Wildwood Air Force Station	Inc, Wildwood	Native Association, Suite 203, 215
Correctional Center,	Fidalgo, Kenai, AK  99611 (707) 746-
Elderly Housing Center	4215
Benecia, CA                               196411965          2,3211(32)           5,700	Exxon, Institutional &	Karen O'Dowd, Economic Development
Benecia Arsenal	Financial Services,	Coordinator with the City of Benecia,
Unysia Corp, Universal	250 East L Street, Benecia, CA  94510
Engr Corp, Corey	(907) 2834851
Construction Co,
Lathrop Construction
Inc, Sperry Mgt Sys,
Huntway Refinery, Ace
Hardware

Los Angeles, CA                           1974/1975          1,306/(750)           685	Los Angeles Unified	John Keith, Principle, San Pedro-
Fort McArthur (a)	School District, City Rec	Wilmington Skill Center, 920 W. 36th.
& Park Dept, Cabrilla	Street, San Pedro CA  90731 (213) 831-
Marina, San Pedro-	0295
Wilmington Skill Center,
CA Conservation Corp
San Pedro District, Los
Angeles Harbor Dept.

Malibu, CA                                197411974            -/(142)              40	Los Angeles County &	John Haggenniller, Assistant Chief
Nike Site 78	Fire Paramedic Center	Forrester. Los Angeles County Fire
Department, 1320 N. Eastern Avenue,
Los Angeles, CA 90063
(213) 267-2481
Palmdale, CA                              1974/1976            -/(142)              100	Los Angeles County Fire	John Haggenmiller, Assistant Chief
Nike Site 04	Center & Correctional	Forrester. Los Angeles County Fire
Facility	Department, 1320 N. Eastern Avenue,
Los Angeles, CA 90063
(213) 267-2481
4-19

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Rancho Palos Verdes, CA	1974/1974              -/(91)              60	City Offices,	Bill Cornet, City Manager, 30940
Nike Site 55	Dimensional Cable	Hawthorne Blvd, Rancho Palos Verdes,
CA 90274
(213) 377-0360
Torrance, CA                            1973/1974               50/-               6	City of Torrance Park	Gene Barnett, Parks and Recreation
Torrance Annex, Long Beach	Facilities	Dept, City of Torrance, 3031 Torrance
Naval Supply Center	Blvd, Torrance, CA  90503
(213) 618-2930
Ventura County, CA                      1970/1976           293/(1,215)          1,300	Ventura County	210(C)	James O'Neill, Airport Administrator,
Oxnard Air Force Base	Community College,	840(S)	295 Durley Avenue, Camarillo, CA
Intersystems, George	210(1)	93010 (805) 388-4202
Bannister Co, US Navy,
Oxnard High School
District, Camerillo
Airport, FAA,
Numerous County
Agencies
Colorado Springs, CO                  1971/1976-80               -                280	United States Olympic	Ronald Rowan, General Counsel, United
Ent Air Force Base	Committee Hqtrs, USOC	States Olympic Committee, 1750 East
Olympic Training.	Boulder St, Colorado Springs, CO
Center, Hqtrs-National	80919
Governing Body for 16	(719) 632-5551
Sports
Green Cove Springs, FL                  1962/1964           324/(1,281)           650	Kelsey-Hayes, Kuston	Ed Stewart, Manager, Clay County Port
Atlantic Fleet Site	Karr, Sun State Marine,	Inc, P.O. Box 477, Green Cove Springs,
Price Brothers,	FL 32043
Composite Pipe, Willis	(904) 284-3676
Barge, Pegasus
Technologies, Great
Lakes Dredge & Docks
4-20

Civilian Jobs
Year	Lost	College
ImpactlYear	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Key West, FL	1973/1986	568/(3,356)             60	Hotel, Marina, Historic	Pete Mayer, Vice President, Director of
Truman Annex(c)	and Residential	Development, 203 Front Street, Trumam
Development	Annex, Key West, FL 33040
(305) 296-5601
Orlando, FL                               174/1975           395/1(2,812)           6,000	US Postal Service, Paige       600(C)	Boe Barrett, Government Services,
McCoy Air Force Base	Avjet, Federal Express,	Greater Orlando Aviation Authority,
UPS, Emery, D.H.L.,	P.O. Box 620004, Orlando, FL 32862
Airborne Express,	(407) 826-2496
Florida Southern
College, Municipal
Airport
Sanford, FL                               1968/1969            230/646)             1,400	Cobia Boats, Hardie             975(1)	Stephen Cook, Director, Sanford Airport
Sanford Naval Air Station	Irrigation, Scottys,	Authority, P.O. Box 818, Sanford, FL
Lowes, Florida Gas &	32771
Training Center, Central	(407) 322-7771
Florida Regional
Airpor, Codiso

Albany, GA                                1974/1978          3411(3,217)            2,000	Miller.Brewery, Kroger         1,200(t)	C. Lamar Clinton, Senior Vice President
Albany Naval Air Station	Peanut Butter, Jobs	for Economic Development, First State
Corps	Bank & Trust Company, P.O. Box 8,
Albany, GA, 31703
(912) 432-8430
Brunswick, GA                             1974/1976          344/(1,826)            2,500	Hyster, TPI International	400(C)	Randal Morris, Executive Director,
Giynco Naval Air Station	Airways, Insteel	30,000(T)	Brunswick & Glynn County Development
Construction, Systems	Authority, P.O. Box 10790, Brunswick,
Inc, Interior Products,	GA  31521  (912) 265-2070
Map International,
Sossner Tap & Tool,
Federal Law
Enforcement Training,
Municipal Airport
4-21

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Majior	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firnns/Activities	Students	Community Contact

Decatur, IL	1962/1963	1,310/(27)	1,944	Bridgestone/Firestone	D.R. Sullivan, Plant Controller, P.O.
Decatur Army Signal Depot	Inc	Box 1320, Decatur, IL 62525 (217) 425-
1231

Forest Park, IL                          1971/1973            1,600/(6)           2,400	Regional Shopping Mall,	Marlene Quandt, Village Clerk, Forrest
Forest Park Naval Ordnance Plant	US Postal Service Bulk	Park, IL 60130
Mail Center, Postal Bag	(708) 366-2323
Repair

Columbus, IN                             1970/1972            3181(61)             491	Cunmnins Engine,               1,878(C)	Wendall Ross, Manager, Columbus
Bakalar Air Force Base	Indiana University,	Airport, Columbus, IN  47807 (812)
Purdue University,	376-2519
Rhoades Aviation,
Flambeau, Indiana Vo-
Tech, Municipal Airport

Terre Haute, IN                          1966/1967             253/-              1,100	Accurate Glass Inc,	Phil Kesner, Redevelopment Specialist,
Defense Industrial Plant	Allstate Mfg Co Inc,	Department of Redevelopment, 301 City
Equipment Center	Amacet Corp, CBS/Sony	Hall, Terre Haute, IN 47807
Music Club, Xon-way	(812) 232-0018
Central Express, Digital
Audio Disc Club,
Distributors Terminal
Corp, Eldred Van &
Storage Inc, Ivy Hill
Packaging, Jadcore Inc,
Miller Business Forms

Salina, KS                               1965/1966          326/(4,710)           4,200	Beech Aircraft, Tony's	735(C)	Tim Rogers, Executive Vice President,
Schilling Air Force Base	Pizza Inc, Kansas State	410(S)	Salina Airport Authority, Salina, KS
College of Technology,	67401
Salina Area Vo-tech, SP	(913) 827-3914
Plastics, Kansas Color
Corp, Scientific
Engineering,Municipal
Airport
4-22

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Topeka, KS	1973/1976	4161(3,739)	1,600	Forbes Industrial Park,	Dennis Brock, Airport Authority, P.O.
Forbes Air Force Base	State Dept of	Box 19053, Topeka, KS  66619
Corrections, Lario	(913) 862-2362
Enterprises, State Health
Dept, Municipal Airport,
National Guard

Hournma. LA                              1972/1972              18/(112)            1,000	Terrebonne Parrish Vo-          820(S)	Mel Mallory, Airport Manager, Houma-
Houma Air Force Station	Tech, Terrebonne Assoc	Terrebonne Airport Commission, Station
for Retarded Citizens,	1, P.O. Box 10158, Houma, LA 70363
Kentwood Water,	(504) 872-4646
Texaco Inc, Air
Logistics, ERA
Helicopters, Houma
Municipal Airport
Lake Charles, LA                         1963/1964            252/(3,030)           4,000	Chennault Industrial	2,950(C)	Ernst Broussard, Director, Planning &
Chennault Air Force Base	Airpark Authority,	35(S)	Development, P.O. Box 900, Lake
Boeing Louisiana,	450()	Charles, LA  70602 (318) 491-1210
Elsinore Aerospace,
Sowella Technical
Institute

New Iberia                               1965/1966             85/(1,025)           1,220	Air Logistics, Univ of          350(S)	Rick H. Lasserre, Iberia Parish Airport
New Iberia Naval Air Station	SW Louisiana Research	Authority, 510 Avenue C, Suite A, New
Center, Teche Area Vo-	Iberia, LA  70560 (318) 365-7202
Tech, Hulhnance Drill
Co, Carorundum,
Lofand Bros, ERA
Helicopters, Otis Engr
Corp, Pelican Aviation
Corp, Acadania
Criminalistic Lab
4-23


Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	FinrmslActivities	Students	Community Contact

Bangor, ME	1968/1968	3421(5,479)	2,500	General Electric, Anzac	2,000(C)	Donald Bugginton, Director Economic
Dow Air Force Base	Electronics, Hqtrs Bar	Development, City of Bangor, Bangor
Harbor Airways Inc, US	ME  04401
Air Force, University of	(201) 945-4400
Maine, State Dept of
Human Services,
Municipal Airport,
Timberland Footware
Charleston, ME                           1979/1981            23/(169)              97	Charleston Correctional         150(1)	leffrey Merril, Director, Charleston
Charleston Air Force Station	Facility	Correctional Facility, RR,I, Box 1400,
Charleston, ME 04422 (207) 285-3307
Presque Isle, ME                         1961/1962           268/(1,259)           1,250	Biner Brothers, Indian          540(C)	Larry E. Clark, Executive Director,
Presque Isle Air Force Base	Head Plywood, Wetterau	Presque Isle Industrial Council, P.O. Box
Inc, Northern Maine	831, Presque Isle, ME  14769 (207)
Technical College,	764-4485
Northern Maine
Regional Airport
Baltimore, MD                            1973/1977          2,805/(1,335)         1,800	Holabird Industrial Park,	Larisa Salamacha, Project Director,
Fort Haolabird	Universal Foods,	Baltimore Economic Development Corp,
Thrashers Furniture,	36 South Charles Street, Suite 1600,
Clean Air Inc, PPG,	Baltimore, MD  21201
Riparus Corp, Gascoyne	(301) 837-9303
Lab, HS Processing,
John D Lucas Printing
Co
4-24

Civilian Jobs
Year	Lost	College
ImpactlYear	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Boston, MA	1794-81/1977-83           (b)	3,600	Marine Industrial Park,	100(r)	Donald A. Gillis, Executive Director,
Boston Army Base/Navy Annex	Boston Design Center,	Economic Development and Industrial
Coastal Cement Corp,	Corp of Boston, 9th Floor, 39 Chauncy
AuBon Pain, General	Street, Boston, MA  02111 (617) 725-
Ship Corp, Emery	3342
World Wide, Mass Bay
Brewery, First Trade
Union Saving Bank,
Boston Tech Center,
Stavis Seafood
Boston, MA                              1974/1979          5,552/(553)           3,700	Boston Redevelopment	Bob Rush, Deputy Director, Harbor
Boston Shipyard-Charlestown(c)	Authority, Inummobiliare	Planning & Development and John
Ltd, Boston National	O'Brien, Navy Yard Project manager, 22
Historic Park, Sail	3rd Ave, Charlestown Navy Yard,
Maine, MA General	Charlestown, MA  02129
Hospital, MA Water	(617) 722-4300
Resource Authority,
Commercial-Office
Residential Complex
Chelsea, MA                             197411979           326/(462)             130	Boston Architectural	Robert Luongo, Director, Community
Chelsea Naval Hospital(d)	Team, DMC Energy	Development, City Hall, Chelsea, MA
Inc, First New England	02150
Consortium, Admiral's	(617) 889-0700
Hill Development,
Marina
Chicopee, MA                            1974/1977        + 150(h)/(4,014)        2,900	Massachusetts Municipal	Alan W. Blair, President, Westover
Westover Air Force Base	Electric Co, Procter &	Metropolitan Development Corp, 3911
Gamble, Ludlow	Pendleton Ave, Chicopee, MA  01022
Technical Papers,	(413) 593-6421
Dennsison Mfg Corp,
Emery World Wide
4-25


Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Springfield, MA	1968/1968	2,400/(20)	3,250	Digital Equipment Corp,	7,000(C)	Marc Hanks, Managing Partner with
Springfield Arsenal	Smith & Wesson, Hano	Economic Development Partners, Bank
Business Forms,	of Boston Building, 1350 Main Street,
Springfield Technical	Springfield, MA  01103
Community College,	(413) 787-1542
Springfield Armory
National Historic Site

Watertown, MA                           196711968           2,3061(17)           1,360	Arsenal Mall, Lifeline	Mark Boyle, Director, Planning &
Watertown Arsenal	Systems Inc, Arsenal	Community Development, Town of
Apartments, Howard	Watertown, 149 Main Street, Watertown,
Community Health Plan,	MA  02172
Arsenal Park	(617) 972-6417

Saulte Ste Marie, MI                     197711978          7371(3,014)          2,144	Five different	Kathy Noel, Executive Vice President,
Kincheloe Air Force Base	correctional facilities,	Chippewa County Economic
Chippewa County	Development Corp, 119 Culley,
International Airport,	Kincheloe, Ml 49788 (906) 495-5631
Olofson Fabrication
Services Inc, Fabricor
Inc, Eclipse Inc,
American Kimross Corp

Baudette, MN                            1979/1981            30/(100)             25	Rapid River Grain &	Larry Larson, President, Rapid River
Baudette Air Force Station	Feed Company	Grain & Feed Inc, P.O. Box 458,
Baudette, MN 56623
(218) 634-2041
Duluth, MN                              1982/1984           446/(1,040)           200	Duluth Prison Camp,	John Grinden, Executive Director,
Duluth Air Force Base	Natural Resources	Duluth Airport Authority, Duluth, MN
Research Institute, at	55811
Louis County & Land	(218) 727-2968
Dept, Planing
Specialties, Minnesota
Rust Proofing
4-26


Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	Firmnns/Activities	Students	Community Contact

Wadena, MN	1971/1973	151(130)              30	Bell Hill Recovery	Audrey Schmitz, Bell Hill Recovery
Wadena Air Force Station	Center	Center, P.O. Box 206, Wadena, MN
54682
(218) 631-3610
Greenville, MS                            1965/1966            242/(2,048)            325	Southern Fasteners,	Wayne Downing, Airport Director,
Greenville Air Force Base	Delta Aircraft Painting,	Greenville Municipal Airport, Greenville,
AGAC, Head Start	MS  38701
Schools, Drug &	(601) 334-3121
Alcohol Center,
Homeless Shelters,
Municipal Airport
Kansas City, MO                           1977/1985           1,5001(2,400)           475	BTM Inc, Calvary Bible          510(C)	lames Gerner, Assistant Director,
Richards-GeBaur Air Force Base	College, Electronic	General Aviation Airport, 414 East 12th
Institute, Southwest	Street, 9th Floor, City Hall, Kansas City,
Tracor, US Air Force,	MO 64106
Marine Corps Support	(816) 274-2300
Facility, Directorate of
Financial Operations,
Richards-GeBaur Airport
Neosho, MO                              1970/1968-75             1,200/-              3,500	Teledyne, Lazy Boy             1,500(C)	Gib Garrow, Executive Vice President,
Camp Crowder & Air Force Plant	Char Co, Talbot Wire,	Neosho Chamber of Commerce, Neosho,
65	Crowder Industry,	MO  64850
Moark Production,	(417) 451-1925
Crowder College,
Municipal Airport
Conrad, MT                                1972/1975              1531(20)              50	Cascade Campers Ltd,	Darrel Brown, Treasurer, Pondera
Anti-Ballistic Missile Site	Intercontinental Truck	County Economic Development Corp,
Body, MK Distributors,	Conrad, MT  59425 (406) 278-7525
Tiber Water Authority
Lewistown, MT                             1971/1794             27/(163)                3          c	William Spoja, Former County Attorney,
Lewistown Air Force Base	Lewistown, MT  59457
(406) 538-8767
4-27

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Hastings, NE	1966/1966	240/(10)	1,650	Hastings Industries, TL	3,000(C)	Dee Hausler, Chamber of Commerce,
Hastings Naval Anummunition Depot	Irrigation, Ebko	P.O. Box 1104, Hastings, NE  68901
Industries, Animal	(402) 462-4159
Research Center,
Hastings Park, Good
Sumaritan Retirement
Center, Central
Nebraska Community
College, Hastings
Energy Center
Lincoln, NE                            1966/1966          396/(6,383)          3,000	Goodyear Tire,	Wayne Andersen, Executive Director,
Lincoln Air Force Base	Bruswick Corp, Tri-Con	Lincoln Airport Authority, P.O. Box
Industries, Land & Sky	80407, Lincoln, NE 98501
Inc, Yasufuku Inc,	(402) 474-2770
Heinke Technology,
Boomers Printers,
Valentino's Inc, Dept of
Corrections Minimum
Security, Municipal
Airport

Omaha, NE                              1975/1976            49/(56)             228         Metropolitan Community       6,500(C)	John Weber, Metropolitan Community
College	College, P.O. Box 377, Omaha, NE
68103
(402) 449-8425
Sidney, NE                             1967/1967            585/(2)             650	Sidney Warehousing            300(C)	Anita Pennel, Chamber of Commerce,
Sioux Army Depot	Activities, Western	Sidney, NE 69162
Nebraska Community	(308) 254-5851
College, Glover Group,
Cabela's Mail Order,
Scoular Grain Co,
Western Stockman Inc
4-28


Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Reno, NV	1966/1969	519/(2,133)	2,000	IC Penny Dist, Cntr,	1,200(c)	Robert Schriver, Associate Director,
Stead Air Force Base	Precision Roll Products,	Economic Development Authority of
Univ of NV Desert	Western Nevada, 5190 Neil Rd, Suite
Research Institute, R.	111, Reno, NV  89502
Donelly Son's Bradford	(702) 829-3700
White West, Daimler
Benz Freight Liner,
Hidden Valley Ranch
Food Products,
Municipal Airport


Manchester, NH                          1966/1966-75          138/1(320)          3,200	Sanders Associates,	lane Hills, Business Development
Grenier Air Force Base	Disogrin Industries,	Representative, Greater Manchester
Summit Packaging,	Development Corp, 889 Elm Street,
Armtec Industries,	Manchester, NH 03101
Municipal Airport	(603) 624-6505

Burlington, NJ                           1973/1977            520/(10)             500	Duplifax, Resource	Mayor Herman Costello, City Hall,
Burlington Army Ammunition	Equity Developers,	Burlington, NJ 08016
Plant	Kitchens, Inc, Able	(609) 386-0200
Warehousing, Joint
Burlingtons Economic
Development Corp
Edison, NJ                               1963/1965            578/(426)           3,800	Livingston College of	3,500(C)	Barry Larson, Business Administrator,
Camp Kilmer	Campus of Rutgers	1,050(5)	Edison Township, 100 Municipal Blvd,
University, Kaiser	463(1)	Edison, NJ 08817 (201) 287-0900
Aluminum, Revlon,
Continental Can,
Spaulding, Mattell Toys,
Job Corps, Middlesex
Vo-Tech Scholl,
Lightolier Co     -
4-29

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Edison, NJ	1964/1964-65	2,610/(8)	13,100	RCE, American Hospital	4,088(C)	Peter Cook, Managing Principal, Summit
Raritan Arsenal	Supply, R.H. Macy,	Associates Inc, Raritan Plaza H11, Edison,
Singer, B.F. Goodrich,	NJ 08818
Nestle, GSA Depot,	(201) 287-0900
United Parcel Service,
Lloyd American
Electronics, Grant
Liquor, Michelin Tires,
Kirsch Co, Ramada and
Holiday Inns, Middlesex
Community College,
American Can

Lumberton, NJ                           1974/1976              94/-                75	Lumberton Township	Patricia Ranier, Clerk, Lumberton
Nike Site 25	Municipal Offices,	Township, P.O. Box 1860, Lumberton,
Midway School for	NJ 08048
Learning Disabilities	(609) 267-3217

Roswell, NM                             1967/1967           3791(4,900)          3,000	Transportation, Mfg           1.200(C)	Dennis Ybarra, Roswell Industrial Air
Walker Air Force Base	Corp, Levi Strauss, Job	Center, P.O. Box 5759, Roswell, NM
Corps, Christmas by	88201
Kreb's Co, Eastern NM	(505) 347-2594
University, Municipal
Airport

Newburgh, NY                            1969/1971          1,011/(2,700)         1,000	United Express,	James P. McGuiness, Airport Director,
Stewart Air Force Base	American Airlines,	Steward International Airport, P.O. Box
Airborne International,	6100, Newburgh, NY  12550
Emery Air Freight,	(914) 564-2100
USDA Animal Import
Center, New York Dept
of Transportation, Air
National Guard, General
Aviation Airport
4-30


Civilian Jobs
Year	Lost	College
ImpactlYear	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Finns/Activities	Students	Community Contact

New York City, NY	197011972	3881(38)	1,070	American Museum of	Ralph Blank, American Museum of the
Army Pictorial Center	Movie Image, Kaufman	Movie Industry, 34-12 36th Street,
Astoria Studios	Astoria, NY  11106
(718) 784-4520
New York City, NY                        1976/1981            336/(54)            6,700	New York Rail Car	Debra Alligood, Project Manager, New
Brooklyn Army Depot	Company, SAMCO Inc,	York City Public Development Corp,
Phase II building Project	161 William St., New York, NY  10038
(1)	(212) 619-5000
New York City, NY                         1974/1974           386/(517)            865	Veterans Administration	Solomon Goodrich, Executive Director,
St Albans Naval Hospital	Hospital, Roy Wilkins	Southern Queens Park Assn Inc, 119th
Park	Ave & Merrick Blvd, Jamaica, NY
11434
(718) 276-4630
Schenectady,NY                           1966/1967            484/(15)             600	General Electric,	E. Graham Thompson, Sr Vice
Schenectady Army Depot	PADCO Inc, State of	President, Northeastern Industrial Park
New York, Distribution	Inc, P.O. Box 98, Guilderland Center,
Unlimited, IBM	NY  12085 (518) 358-4435
Voorbeesville, NY                        196611967            1,000/(20)           300	Scott Paper, Proctor &	E. Graham Thompson, Sr Vice
Voorheesville General Depot	Gamble, Chrysler Car	President, Northeastem Industrial Park
Distribution, Agway	Inc, P.O. Box 98, Guilderland Center,
Feeds, State of New	NY  12085 (518) 358-4435
York.

Watertown, NY                            1979/1981             24/(24)             498	Watertown Correctional	Andrew Peters, Superintendent,
Watertown Air Force Station	Facility	Watertown Correctional Facility,
Watertown, NY 13601
(315) 782-7490
4-31

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	FirmnnslActivities	Students	Community Contact

Wilmington, NC	1967/1976              4/(96)	487	US Air, Applied	Robert Kemp, Airport Director, New
Air Force Interceptor Squadron	Analytical Industries,	Hanover International Airport, 1901 Hall
Air Wilmington Inc,	Drive, Suite 201, Wilmington, NC
Signa Tech Inc, NC	28405
Army National Gurad,	(919) 341-4333
FAA Control Tower,
Aeronautic Inc,
International Airport

Bellefontaine, OH                         1969/1970             27/(136)             120	Ohio Hi-Point Joint Vo-         600(S)	Marilyn Meyer. Superintendent, Ohio Hi-
Bellefontaine Air Force Station	Tech School	Point Joint Vo-Tech School, RFD-2,
Bellefontaine, OH 43311 (513) 599-
3010

Columbus, OH                              1978/1984           380/(1,700)            625	Federal Express,	Rod Borden, Airport Manager,
Richenbacker Air Force Base	Meisner Electric,	Rickenbacker Port Authority, 109 John
Lockheed,Air National	Glenn Avenue, Columbus, OH 43217
Guard, Army Reserve,	(614) 491-1401
General Aviation Airport

Port Clinton, OH                          1966/1967            1,885/(85)           1,200	AIM Packaging, Ares	Jeff Crosby, Manager, Erie Industrial
Erie Ordnance Depot	Inc, USCO Dist Services	Park, Port Clinton, OH  43452 (419)
Inc, Scandura, Superior	6354051
Mfg, P&T Products,
Challenger Motor
Freight, Uniroyal
Engineered Products,
Toledo Edison Co,
Panelite
4-32

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Toledo, OH	1963/1965	1,654/(52)	3,900	Toledo Mold, Temp	4,570(C)	Susan Webb, President, Ampoint, P.O.
Rossford Arsenal	Glass, Glass Tech Inc,	1,400(S)	Box 911, Toledo, OH  43692 (419) 666-
Ace Hardware Dist	3222
Cntr, JC Baxter Tub Co,
Surface Combustion,
Toyota Redistribution
Center, Michael J.
Owens Tech College,
Penta County Vocational
School
Wilmington, OH                          1971/1973           613/(66)            4,000)	Airborne Express,	800(C)	Cynthia Hill, Executive Director,
Clinton County Air Force Base	UNISETS, Ferno	500(S)	Wilmington Chamber of Commerce, 69
Washington Inc, Laurel	North Street, Wilmington Oh 45177
Oaks Vo-Tech,	(513) 382-2737
Industrial Park, Hydro-
Lift Trucks, Southern
State Community
College, Electric Supply
Company
Burns Flat, OK                        1969-70/1970         381/(1,700)           400	Wagnor Electric,              450(C)	Mark McAtee, Manager, Clinton-
Clinton-Sherman Air Force Base	Halivunlon Services,	Sherman Industrial Airport, P.O. Box
Jamesville Products,	100, Burns Flat, OK  73624
Western Oklahoma	(405) 562-4526
VoTech Center, Western
Fabricators Co, Clinton-
Shermnan, Municipal
Airport
4-33

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Corvalis, OR	1969/1973	1801(864)	105	Oregon, SouthWest	150(S)	Bill Duke, Director of Training, Oregon,
Adair Air Force Station	Washington, Utah &	45(T)	SW Washington, Utah & Southern Idaho,
Southern Idaho Laborers	Laborers Training Trust, RT 5, Box
Training Trust, Oregon	325A, Corvalis, OR  97330
Fish & Wildlife Service,	(503) 745-5513
Santiam High School,
Adair Village Housing,
Willamette Carpenters
Training

Harrisburg,PA                          1965-68/1969        10,050/(1,250)         2,800	Pennsylvania State            2,640(C)	Matthew Douglas, President, Capital
Olmsted AFB and Middletown Air	University-Capital	Chamber of Commerce, P.O. Box 969,
Material Area	Campus, Penn State	Harrisburg, PA  17108 (7117) 232-4121
Dept of Transportation,
National Guard,
Municipal Airport

Lancaster, PA                           1967/1968               750/-              636	Armstrong World	Eugene Moore, Director of Public
Marriett Air Force Base	Industries	Relations, Armstrong World Industries
Inc, P.O. Box 30001. Lancaster, PA
17604
(717) 396-2101

Philadelphia, PA                        1977/1983            3,400/(17)           2,000	Grafic Reproduction	Mark Hankin, President, Hankin
Franford Arsenal	Services, Webster,	Management Co, P.O. Box 26767,
Spring Co, Philadelphia	Elkins Park, PA  19117
Biologics, Gorden-	(215) 674-9660
Breach Inc, Mechanical
Specialties Inc

Pheonixville, PA                       1973-74/1978          845/(546)              50	Valley Force Christian        200(C)	Daniel Baer
Valley Force Army Hospital	College	P.O. Box Pheonixville, PA  19460 (215)
933-7725

York, PA                                1964/1964            1,092/(13)            1,600        Harley Davidson Inc	Prank Caster, Director of Human
York Naval Ordnance Plant	Resources, Harley Davidson Inc, York,
PA 17402
(717) 848-1177
4-34

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Aguadilla, PR	1973/1977	709/(3,866)	1,500	Dupont Pharmaceutical,	1,000(C)	Jose I. Ortiz, Manager, P.O. Box 20,
Ramey Air Force Base	Univ of Puerto Rico,	Ramey, PR 00604
Job Corps, Digital	(809( 891-2286
Equipment, Hewlitt
Packard, Municipal
Airport
Newport, RI                            197411978         484/(11,069)         2.500	Derecktor Shipyard,	Bob Parsons, Director, Rhode Island
Newport Naval Base	Bend Inc, Hughes	Department of Economic Development,
Aircraft, Avid Corp,	Gilbane Bldg, 7 lackson Walkway,
Syscon, McLaughlin	Providence, RI 02903 (401) 277-2601
Research, Raytheon,
RCA Services Co
North Kingston, RI                    1974/1978-80       4,500/(6,211)         7500	Electric Boat Company,	Gary Lash, Director, Property
Quonset Point Naval Air Station	Newport Offshore,	Management and Development, Rhode
Cowa Plastics, IMS Inc,	Island Port Authority, 7 Belver Ave,
Toray Industries, Drew	North Kingstown, RI 02852 (401) 277-
Oil Corp, CSW	3134
Transportation, Bristol
Bay Seafood, Applied
Environmental
Technology, General
Aviation Airport
Greenville, SC                         1963/1964          672/(4,100)         5,253	Woolworth Distribution        500(C)	Phillip Southerland, Executive Director,
Donaldson, Air Force Base	Center, 3M Company,	Donaldson Center, Greenville, SC
Donaldson Area	29605
Vocational Education	(803) 277-3152
Center, Lockheed Aero
Center, General Electric,
Procter & Gamble Inc,
Amoco, Auto Zone Inc,
Magna International,
General Aviation Airport
4-35

Civilian Jobs
Year	Lost	College
ImpactlYear	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community  Contact

Edgemont, SD	1967/2968	512/12)                4	Grain Storage	Matthew Brown, Former Mayor, Box
Black Hills Army Depot	629, Edgemont, SD  57735
(605) 662-7720
Smyrna, TN                              1969/1971           470/(4,050)            1,539	Cross Continental	Steve Fitzhugh, Building 644, Smyrna,
Stewart Air Force Base	Services, Cumberland	TN  37167
Mfg Co, Better Built	(615) 896-7736
Aluminum Co, Square D
Mfg Co, State
Rehabilitation Center,
Tenn Army National
Guard, Corporate Flight
Mgt, Independence Air
Inc, Smyrna Air Center

Amarillo, TX                          1969/1969          1,511/(5,560)           600	Hughes Aviation, Levis	795(C)	Richard McCollum, Airport Manager,
Amarillo Air Force Base	Strauss, Tasco	5,520(1)	Amarillo International Airport, 10801
Engineering, Texas State	Airport Blvd, Amarillo, TX  79111
Technical Institute,	(806) 335-1671
Municipal Airport
Big Springs, TX                         1977/1978           909/(2,204)            575	IBI, Freecom, Fraser	126(C)	Hal Boyd, Manager, Big Spring Airpark,
Webb Air Force Base	Industries, Fiber Flex,	S00(T)	P.O. Box 3190. Big Spring, TX  79721-
Bureau of Prisons,	3190
Western Container,	(915) 263-8311
Southwest College for
the Deaf, Municipal
Airport

Harlingen, TX                          1962/1963-64         720/(3,100)            1,600	Levi Strauss, Texas	2,800(C)	David Alex, President, Chamber of
Harlingen Air Force Base	Steel, Marine Military	400(S)	Commerce, P.O. Box 189, Harlingen TX
Academy, Texas State	78551
Tech Institute, General	(512) 423-5440
Dynamics, Confederate
Air Force, Valley
Intemrational Airport
4-36

Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

Laredo, TX	197311975	700/(1,998)	2,200	Sancheez O/Brien Co,	Humberto Garza, Assistant to Airport
Laredo Air Force Base	Webb County Tax	Director, Laredo International Airport,
Assessor, K-Mart,	518 Flightline, Bldg 132, Laredo, TX
Tracor Aerospace,	78041 (512) 423-5440
Robertshaw Controls,
^So Texas Private
Industry Council,
Combustion
Engineering, Laredo
City Offices, Municipal
Airport

Mineral Wells, Tx                     1974/1975-77         1,219/(692)          1,683	Perry Equip Co, Qptic         400(C)	Greg Harrison, City Manager, P.O. Box
Fort Wolters	Technology Corp,	339, Mineral Wells, TX  76067 (817)
Concepts Inc, Antler	328-1211
Antennas, S-Tec, Ford
MFG, Western Co of
NA, Halburton
Resources Mgt, Tejas
Home for Youth,
Downing Heliport,
Butler Ventamatic,
Weatheford College

San Marcos, TX                          1963/1965            30/(1)             750	Gary Job Corps Center,        2,200(T)	Albert Perkins, Director, Job Corps
Camp Gary	Municipal Airport	Center, Box 976, San Marcos, TX
78666
(512) 396-6561
Sherman-Denison, TX                     1971/1972          600/(1,930)          437	Denison Industries,           294(C)	Doyle Dobbins, General Manager,
Perrin Air Force Base	Texas Instruments,	Grayson County Airport, 4700 Airport
Greater Texoma Utility	Drive, Dension, TX  75020
Authority, Grayson	(214) 786-2904
County College, Local
Government Offices,
General Aviation Airport
4-37


Civilian Jobs
Year	Lost	College
Impact/Year	(Military	New Jobs	Major	Vo-Tech
Community & Location	Acquisition	Transfers)	on Base	Firmns/Activities	Students	Community Contact

Sweetwater, TX	1971/1971	25/(100)	130	Texas State Technical	650(C)	Robert Musgrove, Dean, Instructional
Sweetwater Air Force Base	Institute	Studies, Texas Sate Technical Institute,
Sweetwater, TX 79556 (915) 235-7300

Waco, TX                                  1966/1966            833/(2,980)           2,000	Elsinore Airframe             4,000(C)	Monica Faulkenbery, Director of Public
James Conally Air Force Base	Services Inc, Chrysler	Information, Texas State Technical
Technologies, Airborne	Institute, Waco, TX  76705 (817) 867-
Systems Inc, Texas State	4887
Technical Institute,
General Aviation Airport

Moses Lake, WA                            1966/1966            38/(3,947)             900	Northlvest Airlines,	1,250(C)	David M. Bailey, Executive Manager,
Larsen Air Force Base	Japan Airlines, Boeing,	200(1)	Port of Moses Lake, Grant County
Sundstrand Data	Airport, Moses Lake, WA  98837
Control, Big Bend	(509) 762-5363
Community College,
columbia Basin Job
Corps, Municipal
Airport

Madison, WI                               1968/1968            378/(2,658)           3,000	Hazelton Laboratories,         6,000(C)	Charles Peterson, Business Manager,
Truax Field	Badger Display, Madsen	Dane County Regional Airport, Madison,
Corp, Omni Press,	WI 53704
Venetian Marble,	(608) 246-3380
Madison Area Technical
College, Dane County
Regional Airport

Total Civilians	87,557               163,685

Total Military	136,225

Source:    1961-1990 Civilian Reuse of Former Military Bases, Office of Economic Adjustment, Department of Defense.

Footnotes: (C) College students or post secondary vocational-technical students
(S) Secondary or high school vocational-technical students
(T) Manpower development and other traminees
Does not include the Middle Reservation still retained by the DoD.
4-38

b Jobs lost ar included in the total figures for the Boston Naval Shipyard in Charlestown
' The former Charlestown Shipyard is being converted into a Commercial-Officc-Residential complex with an eatimated $1.3 billion in private sector investment to complete the full development.
d The former Naval Hospital was redeveloped s a $100 million (7.2 million ETAC assistance) 'Admiral;s Hill' residentallcommerial-recreationalcomplex.
' The Sky Bible Institute closed in 1983 due to declining enrollments. The community is now seeking to reuse the site a a Winter resort or youth caunp.
f Expected completion will add 4,000 jobs when fully occupied.
I Former installation site is embroiled in environmental problems.
" Loss of 4,400 milituary and a net gain of 150 for the Air Force Reserve which retained the runway facilities.

Notes:      A detailed writeup of approximately 20 communities can be found in a report titled ' Community Response to Reduced Defense Activity, Communities in Transition' with reprints available by writing:
Chairman-President's Economic Adjustment Committee, Office of the Secretary of Defense: Attention: Director of Economic Adjustment, Pentagon, Washington, D.C., 20301-4000.
4-39

I-0 I -- ~~~  II
INDUSTRIAL RECRUITMENT RESOURCES
5-1

Workforce Talent Surplus
The Charleston area has a significantly smaller portion of the economy devoted to manufacturing
than the national average. Examination of the table titled "Comparative Analysis by SIC Code"
clearly demonstrates that the Charleston economy is nearly 6.0% below the national average.
Even more disturbing is the concentration of employment within the manufacturing sector is
concentrated in only a few industries. Examination of the table which exhibits employment by
manufacturing employment groups as well as the table titled "Major Employers" shows that the
areas where employment is most concentrated is textile mill products (SIC 23), paper & allied
products (SIC 26), chemicals and allied products (SIC 28) and industrial machinery and
equipment (SIC 35).

A major issue concerning the greater Charleston region has been which industries to target for
industrial growth and expanded job base opportunities. A recent study by GSO (Growth
Strategies Organization) suggests that the following industries are "most desirable and feasible
economic development targets for the Charleston area"'

SIC Code	Industry

283	Drugs
3844-5	Electronics Instruments
286	Industrial Inorganic Chemicals
382	Process Control Instruments
3555	Printing Trades Machinery
3841 Surgical & Medical Instruments
3561	Pumps
3541	Metal Cutting Tools
3554	Paper Industry Machinery
3563	Air and gas Compressors
3542	Metal Forming Tools
3519	Internal Combustion Engines
3569	General Industrial Machinery
2824	Organic Fibers
*	Medical & Biological Research & Development
3556	Food Products Machinery
*	Headquarters, Closely Held Companies
*	Corporate Data Centers
3714	Motor Vehicle Parts
3566	Speed Drives and Gears
3699	Electrical Equipment, nec.
3552	Textile Machinery
3679	Electronic Components, nec.
3851	Ophthalmic Goods
3567	Industrial Furnaces and Ovens
3533	Woodworking Machinery
3675	Electronic Capacitors
3562	Ball and Roller Bearings
5-2

Comparative Analysis by SIC Code

US Economy
SIC	Emp.
Code	Totals    Percent
Charleston MSAZ
Emp.
Totals    Percent
Variance'
2,278

81

10,478

20,709

10,384

6,474

43,127

7,926

46,106

159

147,722
Agriculture, Forestry & Fishing

Mining

Construction

Manufacturing

Transportation & Public Utilities

Wholesale Trade

Retail Trade

Finance, Insurance & Real Estate

Services

Unclassified Establishments

Total
07--

10--

15--

20--

40--

50--

52--

60- -

70--

99- -
543,652

716,859

4,671,221

18,383,368

5,584,484

6,218,875

19,600,024

6,860,177

29,575,248

147,635

92,301,543
0.6%

0.8%

5.1%

19.9%

6.1%

6.7%

21.2%

7.4%

32.0%

0.2%

100.0%
0.4%

1.7%

9.2%

14.1%

8.5%

8.1%

18.4%

8.1%

31.4%

0.1%

100.0%
ï¿½ -0.2%

1.0%

4.2%

-5.8%

2.4%

1.3%

-2.8%

0.6%

-0.7%

-0.1%
Note:  1. Variance is the ahsolute differerce between each percentage.
2. Source: S.C. Employment and Securities Commission

Comparative Analysis by SIC Code -

Chareston MSA3
Manufacturing
US Economy4
(x 1.0 Million)
Manufacturine Industry Group

Food and Kindred Products
Tobacco Products
Textile Mill Products
Apparel and other Textile Products
Lumber & Wood Products
Furniture and Fixtures
Paper and Allied Products
Printing and Publishing
Chemicals and Allied Products
Petroleum and Coal Products
Rubber and Misc. Products
Leather and Leather Products
Stone Clay and Glass Products
Primary Metal Industries
Fabricated Metal Products
Industrial Machinery & Equipment
Electronics; Other Electric Equipment
Transportation Equipment
Instruments and Related products
Misc. Manufacturing Industries
SIC    Employment
% of Total

1.7%
0.0%
8.4%
3.7%
6.2%
2.2%
8.4% '
5.2%
9.4%
2.3% '
5.8%
0.0%
3.3%
6.1%
4.8%
15.5%
2.7%
9.1%
3.2%
2.0%
Employment
% of Total

8.8%
0.2%
3.6%
5.7%
3.8%
2.8%
3.7%
8.9%
5.0%
0.7%
5.0%
0.6%
2.8%
4.0%
8.1%
10.6%
8.5%
9.7%
5.4%
2.2%
Variance2

-7.04%
-0.24%
4.87%
-204%
2.45%
-0.60%
4.70%
-3.64%
4.37%
1.59%
0.82%
-0.63%
0.48%
2.03%
-3.28%
4.93%
-5.82%
-0.65%
-2.13%
-0.17%
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
361
N/A
1,745
761
1,285
450
1,740
1,080
1,949
468
1,206
N/A
686
1,256
996
3,209
554
1,881
669
413
1,475,000
40,000
598,000
960,000
631,000
466,000
621,000
1,488,000
846,000
113,000
840,000
106,000
476,000
677,000
1,359,000
1,774,000
1,427,000
1,634,000
901,000
363,000
20, 709    100.0%
16, 795, 000
100.0%
Footnote:  1. Estimatedamounts
2. Variance is the absolute difference between each percentage
3. Source: SC. Employment Commission
4. Source: US Dept. of Commerce. 1993. (Total does not include certain NEC industries)

Major Employers
Berkeley, Charleston & Dorcester Counties
Emplover
Charleston Naval Base
Medical University of South Carolina
Charleston Air Force Base
Charleston County School District
Berkeley County School District
Roper Hospital
U.S. Postal Service
Piggly Wiggly Carolina Company Inc.
Bosch, Robert Corporation
Westvaco Corporation
Trident Regional Medical Center
City of Charleston
Dorchester County School District 2
Charleston County
Bon Secours -St. Francis Xavier Hospital
Wal Mart Stores
Santee Cooper Public Service Authority
College of Charleston
R.H. Johnson DVA Medical Center
K-Mart Stores
InterTech Group Inc
Bi-Lo Inc.
Coatal Center (CDMR)
Southeast Service Corporation
Kiawah Island Resort
DuPont de Nemours, E.I. and Company
Alumax of South Carolina
City of North Charleston
Southern Bell Telephone
SC Electric and Gas Company
Miles Inc.
The Post and Courier
Main - Waters Management Inc.
General Dynamics: Electric Boat Division
The Citadel
Charleston Memorial Hospital
Food Lion
Berkely County Government
Pelican Food Systems
Product/Service
United States Navy
Healthcare, research; university
US Air Force
Public education
Public education
Healthcare
Postal Service
Grocery service
Fuel Injection & Braking System
Lumber, Paper, Packaging, Chemicals
Healthcare
Municipal Govermnent
Public education
County Government
Healthcare
Retail
Electric Utility
Higher Education
Healthcare
Retail
Manufacturing Holding Company
Grocery stores
Residential care
Contractjanitorial services
Resort
Textile fiber (dacron polyester)
Primaryand alloyed aluminum ingots
Municipal Government
Telecomm unica tions services
Electric Utility
Dyes, organic pigments
Newspapers
Fast food franchise operator
Heavysteel fabrication
Higher Education
Healthcare
Grocery stores
County Government
Restaurants
* Emplovees
41,883
7,700
6,050
5,150
2,900
2,170
1.970
1,800
1,750
1,740
1,600
1,500
1,500
1,300
1,160
1,100
1,000
1,000
1,000
900
830
750
720
700
700
650
630
600
600
600
600
600
600
600
560
550
550
520
500
Source Center for Business Research. Charleston Trident COC

While outside the scope of this study, some of the industrial classifications are generally
consistent with what is perceived to be some of the inherent strengths of the greater Charleston
area, particularly with respect to drugs, pharmaceuticals and research and development
headquarters companies. Additionally, the skils from the naval base can be used to recruit
industrial prospects wishing to have specialized skills for their operations. This is especially
apparent in the metal fabrication, machinery and equipment and electronics manufacturing
groups.

Approximately 25.0% (about 46,000) of the entire labor force (about 200,000) is employed by
the Charleston Navy Base. In fact, the employment at the Naval Base is a little over twice that
of the entire Charleston Area manufacturing sector employment (approximately 20,000).

The implications of both the large number of military and military related personnel as well as
the distinct absence of certain key industrial sectors should provide greater guidance to the
selection of target industries as opposed to those that are easy to attract for whatever reason.
In short, those industries that demonstrate an affinity to the Charleston area because of certain
attractive elements need not be heavily recruited except to the extent where profound competition
form other communities is in evidence. In contrast, a solid recruiting strategy should be focused
on those industries that are both absent, yet desirable for the region. For those industries not
already present, incentives should be created to induce them. Probably the most attractive
feature a community has to offer in the next decade will be quality of life and quality of the
workforce.

The current dilemma facing Charleston is due to the imbalance of the economy that has relied
heavily in the past on both the military and tourism.   The previous chart shows that
Charlestons's manufacturing sector is dominated by essentially four industries, and is
significantly below the national average in six key industries:


SIC Code	Industry Under-reigresentation

2200	Food & Other Kindred Products
2400	Apparel and Other Te-xtile Products
2900	Printing and Publishing
3400	Fabricated Metal Products
3600	Electronics and Other Electrical Equipment
3800	Instruments and Related Products

The workforce talent surplus of the Charleston area will be best suited to recruit the last three
industrial sectors for fabricated metal products, electronics and other related electrical
equipment, and instr-uments and related products as opposed to food, apparel and printing and
publishing.
5-6

Infrastructure Availability
One of the single most important attributes of a community is the condition and cost of key
elements of infrastructure. While infrastructure is not considered from a qualitative aspect when
evaluating a community, it is many times used as a screening mechanism as a quantitative
measure to either retain or delete a community for further consideration. As a result, providing
adequate information to prospects that shows both adequate resources are avaiable and are
reasonably priced are crucial.

Typically, in the gite selection process, a recurring and non recurring cost analysis is performed
which evaluates the relative cost impact of these costs. With respect to recurring costs, these
costs include calculations for water, sewer, power, naturadl gas, labor, taxes and transportation.
Based on the investigations of this study, the water and sewer costs for the Tni-County region
are in no event out of the ordinary. In fact, in many cases the costs are quite reasonable. With
regard to power rates; however, the greater Charleston region shows a distinct cost advantage
for those industries that are energy intensive. Not surprising, due to the ownership structure of
the gas and electrical resources of the region, natural gas in the Charleston region is
considerably higher than most regions in the country. While this in and of itself is not an
impediment, if local gas companies are willing to negotiate reasonable transportation rates for
bulk purchases of natural gas at the well head on the spot market. If they are not, however,
then this can be a severe recruiting liability.


Water and Sewer

Industrial prospects when evaluating communities invariably perform a quick assessment
of the local water and waste treatment facilities. Such an assessment includes the design
capacity, average daily usage and plans for future expansion. A rule of'thumb for site
selectors in general is that if the system is at 80.0% of its rated capacity then it is not
adequate unless there are plans in place to expand the system. The fact is, the estimated
usage by a potential prospect may have no significant impact on the system. For
example, 20.0% remaining capacity on a designed system of 100.00 MGD still allows
for a 20.0 MGD excess. Nevertheless, site selectors typically use this rule of thumb
whether fair or not. The lesson is to make sure that site selectors understand all three
factors (design capacity, avg. usage and future expansion) in terms of actual numbers as
opposed to percentages.

The Commission of Public Works of the City of Charleston operate the water system
which serves the city, a large section of Charleston County and parts of Dorchester and
Berkeley Counties. Sources of supply are primarily from the Edisto River and the Bushy
Park Resevior.

Charleston County has seven sewer systems, five operated by municipalities and two by
public sewer districts. All treatment facilities are relatively modern and appear to have
5-7

adequate expansion capabilities.
Berkeley County water is provided by several different systems including the City of
Charleston, Monck's Corner, St. Stephens and Goose Creek.

Dorchester County is served by the Dorchester County Water Authority, the St. George
Water Department and the City of Summerville. Sources of supplies are primarily from
wells.

The following tables show the various water and waste water treatment facilities with
their respective total production capacity, average production, average flows and current
status regarding system adequacy.
5-8

Waste Water Treatment Summary
Present
Design
CaDacitIJ

15.0000

1.3X000

0.3500

0.1300

270OOOO

270000

3.7000

1.5000

1.5000

1.5000

1.0690

0.5700

10.0000

4.0000

0.8000

0.1220
SCIP
Estimated
Availabley

5. 7360

0.1050

0.1990

0.0370

8.2270

6.7130

0.0740

0.0830

0.5310

0.0180

0.3600

0.0100

5.4600

0.2720

0.2770

0.1060
Mar
(Peak Day)
June 1994

5.5320

1.2310

0.1430

0. 1570

18.6700

19.5000

3.8000

1.9000

0.8310

1.6000

0.1820

0.5200

4.0000

2.1000

0.6100

0.0400
.Cumulative
Permitted llow1

9.2640

1.1950

1.1510

0.9300

18.7730

20.2870

4.4400

1.4170

1.0690

1.4820

0.4140

0.5600

4.5400

3.7280

0.5230

0.0140
Avg Flow
June 1994'

4.8260

1.7770

0.1360

0.1440

1 Z4300

16.7000

3.5000

1.2000

0.8160

1.0000

0.1220

0.4650

3.9000

1.6000

0.29s0

0.2000
Permitted Flow
> 80% Canacity

N

y

N

N

N

N

y

Y

N

Y

Y

Y

N

Y

N

N
Actual Flow
> 804% Capacitv   Pretreatment

N	Y

Y	N

N	N

Y	N

N	Y

N	N

Y	N

N	N

N	N

N	N

Y	N

N	N

N	N

N	Y

N	N

N	N
location

BCW&SA/Lower Berkeley

Town of Hanahan

BCW&SA/Cen tral Berkeley

BCW&SA/Pimlico Subdivision

NCSD/Felix C Davis

Charleston/Plum Island

Mt Pleasant/Main

St. Andrews PSD/Pierpont

Town of Monck's Comer

St. Andrews PSD/Savage Rd.

Town of St. Stephen

Town of Sullivan 's Island

Summerville/Ox Pond

Dorchester PW/Lower Dorcester

Town of St. George

Town of Harleyville
Count

Berkeley

Berkeley

Berkeley

Berkeley

Charleston

Charleston

Charleston

Charleston

Charleston

Charleston

Charleston

Charleston

Dorchester

Dorchester

Dorchester

Dorchester
Source:  South Carolina Infrastructure/Economic Development Project (SCIP)
State, Development Board
Footnote: Expressed in Million Gallons Per Day

Water System Treatment Summary
Total
Prod.         Average
County         Caiacirs       Prduct ion

Dorchester	0.7390	0.364

Dorchester	0.4518	0.0005

Dorchester	0.2400	N/A

Dorchester	6,5000	5.0000

Dorchester	0.3696	0.1302

Dorchester	0.3600	0.1620

Dorchester	0.8880	0.6000

Charleston	N/A	2.2690

Charleston	78.6000	50.4300

Charleston	3.931	0. 7490

Charleston	10.9440	4.0589

Charleston	0.2000	0.0900

Charleston	2.458	0.7120

Berkeley	2.398	1.1630

Berkeley	0.0288	0.2470

Berkeley	0.57	0.2760
Production
Available I

0.375

0.4s13

N/A

1.5000

0.2394

0.1980

0.2880

N/A

28,1700

3.1820

6.8851

0.1100

1.7460

1.2350

0.0041

0.3000
Protection from	Sanitary
Contamination	Protection

S	S

I	S

U	S

S	S

S	N

S	U

S	S

S	U

N/A	N/A

U	U

S	S

U	U

I	S

U	U

S	U

U	U
Adequate
Pressure

S

S

U

S

S

S

S

S

N/A

S

S

U

S

S

S

S
Overall
Ratine

S

S




S

S

S

S

S

N/A

U

S

U

S

U

S

U
Ouantitv

S

S

U

S

S

S

S

S


N/A

S

S

U


S


S


S


S
OualitL

S

S

S

S

S

S

S


S

N/A


U


S

U


S


S


S


S
Town of St. George

Town of Ridgesille

Town of Harleyrille

Town of Summernille

DCWA/Tranquil Acres

DCWA/Reetesville

DCWA/Knightswille

St. Johns Water

City of Charleston

Isle of Palms

Mt. Pleasant

Town of Sullivan 's Island

St. Andrews/Pierpont

BCWSA-Sangaree W/D

Town of Jamestown

Town of St. Stephens
Source: South Carolina Infrastructure/Economic Development Project (SCIP)
State. Development Board
Footnote: Expressed in Million Gallons Per Day
l=Inadequate, S = Satisfactory. U= Unsatisfactory. N/A = Non -Applicable

Electricity

Electric Power in the Tri-County region is provided by South Carolina Electric and Gas
Company, South Carolina Public Service Authority (Santee Cooper) and two electric
cooperatives - Berkeley Electric and Edisto Electric Cooperatives. For many industries
the cost of electric power is the overriding factor driving the site selection process. The
following data demonstrates the competitive advantage that the Charleston region enjoys
due to the low industrial power rates for South Carolina Gas & Electric.

Comparative Electric Power Rates

Avg. Cents	Avg. Cents	Avg. Cents
Per KWHI	Per KWH	Per KWH
State	Power Company                 Commercial	Industrial	Residential

South Carolina	Carolina Power & Light	6.96	5.19	8.09
Duke Power	6.44	4.11	7.25
S.C. Electric & Gas	5.57	3.86	7.07

North Carolina Carolina Power & Light	6.89	5.58	8.31
Duke Power	5.88	4.44	7.34
Nantahala Power	5.53	4.10	6.60
North Carolina Power	6.78	5.10	8.43

Virginia       Appalachian Power, Co.	4.89	3.75	5.68
Delmarva Power & light	7.18	6.49	9.36
Old Dominion Power	5.20	4.26	5.07
Potomac Edison	6.30	4.72	6.84
Virginia Power	6.21	4.29	8. 01

Georgia        Georgia Power & Light	6.21	5.09	7.64
Savannah Electric	7.28	4.23	7.09

Alabama	Alabama Power Co.	6.91	4.48	7.18

Florida	Florida Power & Light	6.75	5.41	8.07
Florida Power Corp.	5.81	4.79	7.97
Gulf Power Corp.	5.64	4.31	6.60
Tampa Electric	6.73	4.65	8. 10

Source: Edison Electric Institute, 'Typical Residential, Commercial and Industrial Bills, Winter 1994.

As can be seen from the above table, the only competition from a rate per KWH
standpoint for industrial rates is Appalachian Power Company in Virginia with a rate of
$0.00375 per KWH as opposed to $0.00386 per KWH for South Carolina Electric &
Gas. What is not shown in this table is the ability of Berkeley Cooperative to discount
rates even further than that which is customarily charged by South Carolina Electric &
Gas. For those industries where power cost is a major factor, there should be little if
any competition in the Southeastern United States with the Charleston area.
5-11

Natural Gas
The price of natural gas in the Charleston region is relatively high compared to other
regions in the United States. Examination of the following chart demonstrates this fact
by presenting a ranking of gas utility prices by state. As can be seen from the chart
there are only 6 states who have higher gas prices that South Carolina. Another
alternative for gas consumption is the purchase of gas at the well head on the spot
market. As exhibited in the chart titled "Spot Market Gas: Posted Gas, the prices posted
by the natural Gas Clearinghouse are considerably less.

As an alternate fuel source to electricity, natural gas is not a viable alternative taking into
consideration the relatively low price per KWH for power in the Charleston area.
Nevertheless, there are some operations where the use of natural gas as an energy source
shows a demonstrable advantage not only from a cost standpoint, but from a processing
standpoint as well. It is probably appropriate for the local economic development
organizations to have closer ties with South Carolina Electric & Gas to better understand
the opportunities that are present with each respect energy source (electricity versus
natural gas).

Ranking of Gas Utilities Prices by State
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
State
Hawaii
Rhode Island
Maine
Alabama
New York
Washington DC
South Carolina
Pennsylvania
West Virginia
Louisiana
New Jersey
North Carolina
Delaware
Florida
Georgia
Maryland
Virginia
Ohio
Arizona
Oregon
Idaho
Tennessee
Wisconsin
Vermont
Illinois
Indiana
Price MCF
12.63
7.37
6.49
6.24
6.10
6.03
6.02
6.01
5.98
5.92
5.90
5.87
5.79
5.76
5.76
5.57
5.47
5.45
5.30
5.24
5.23
5.19
5.14
5.06
5.02
4.97
Rank
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
State
Kentucky
Montana
Missouri
Texas
Washington
Michigan
North Dakota
Kansas
Arkansas
Mississippi
New Mexico
Wyoming
California
Iowa
Oklahoma
Nevada
South Dakota
Nebraska
Utah
Minnesota
Colorado
Alaska
Connecticut
Massachusetts
New Hampshire
Price MCF
4.95
4.93
4.82
4.81
4.69
4.68
4.68
4.59
4.57
4.57
4.57
4.57
4.55
4.53
4.47
4.44
4.18
4.17
4.16
4.14
3.98
2.76
N/A
N/A
N/A
Source: Department of Energy Natural Gas Monthly, Enervgy User News, April 1994.
5-12

Spot Market Gas: Posted Prices
Pipeline                            Current	2/94	1/94	3/93

ANR ...........................(OK) ....... 2.10	2.10	1.95	1.80
Columbia(Gulf) ...............(LA) ....... 2.35	2.35	2.05	1.90
Northwest Pipeline ..........(WIY) ....... 1.95	1.80	1.90	1.80
Panhandle Eastern ...........(OK)     ....... .10	2.10	1.05	1.80
Koch Gateway ................(LA) ....... 2.25	2.25	1.95	1.80
Texas East .....................(TX) ....... 2.20	2.20	1.95	1.85
Texas Gas (Zone 1) ..........(LA) ....... 2.30	2.35	2.05	1.85
Natural Gas Pipeline .........(7X) ....... 2.10	2.10	1.95	1.80
El paso ........................(7X) ....... 2.00	1.90	1.95	1.85

So_ur_e: Depayvnem of Energy Natural Gas Monthly, Energy User News, Apri 1994.


Port of Charleston

Probably the single most important feature of the Tri-County region is the Port of
Charleston. The port is the number #1 containerized port on the South Atlantic and Gulf
Coasts and is second only to the combined ports of New York & New Jersey. Foreign
Trade Zone number #21 is located twelve miles from the Port of Charleston and two
miles from Interstate 26. According to the American Association of Port Authorities,
the Port of Charleston ranked 1 lth in the total value of imports and exports in 1992 and
has continued to grow since then.

As more companies endeavor to expand their markets internationally, port access is
beginning to play a leading role in the site selection equation. Often, prospective recruits
are more impressed with the level of cooperation between port, state and local officials
as much as they are with the port's modern facilities. In this respect, the Charleston area
can do much to recruit companies who plan to manufacture and either import or export.

There are four terminals which serve the Port of Charleston which handle both container
and breakbulk cargo: The terminals include the North Charleston Terminal, the Union
Pier Terminal, the Columbus Street Terminal and the Wando Terminal and combined
feature:
17 berths and 15 container cranes
*      A heavy lift derrick capable of handling cargo weighing 475 tons.
ï¿½ A floating ro/ro ramp
ï¿½ An export packaging service
*      ORION, an advanced computerized shipping document network that links key
businesses and agencies involved in cargo movement.
*      Neutral container chassis leasing pool
5-13

Real Estate Development Potential
The potential real estate development opportunities are almost limnitless for the Charleston
region. Examination of Section 4 shows the extent and potential breadth of development
activities that have occurred in the past and ca act as a benchmark for the possibilities that exist
for the future in the greater Charleston region. Reuse of the former base should obviously take
advantage of the existing infrastructure in place; however, it should not be limited to only port
related activities. (Reference Section 4)

Local, State and Federal Inducemnents

Federal Fundine

Federal funding is limited in scope to project grants whose intent is to provide funding for
military base reuse studies as opposed to inducements to attract new and or expanding industries.
While these funds will do little to attract industry into the region initially, in the long term the
development of strategic strategies as well as accessing funds for the development of
infrastructure will be an. invaluable asset for the long range planning and use of the facilities that
are available. It is expected that these funds have been investigated in part; however, in the
event that they have not, it will be important to access these funds for a comprehensive study
for economic feasibility studies and master planning of the proposed facilities to be utilized

The funding is authorized by the Defense Authorization Act, 10 U.S.C. 2391. The following
information provides a synopsis of the Military Base Reuse Studies and Community Planning
Assistance:'
Objectives:
To assist state and local governments conduct military base reuse
studies and resolve serious community economic problems resulting
from: Military base closures, openings, and realignments. To
conduct communiiy impact planning that will be beneficial to the
Department of Defense and affected jurisdiction.
T'ypes of Assistance: Project Grants
Uses & Restrictions:
DoD funding may be provided for military base reuse studies
required for the reuse offormer military base property. DoD may
provide community planning assistance through a cooperative grant
or agreement for planning activities deemed beneficial to DoD and
the affected community. Activities include, but are not limited to:
Staffing, operating and administrative costs; travel; public
information; and general or specialized impact studies conducted
by contractors or State and local government employees.
5-14

Eligibility:         An applicant may be eligible for DoD funding for military base
reuse studies if the Secretary of Defense has announced the local
military installation is a candidate for closure or that a final
decision has been made to close the facility; and one of the
following activities is proposed or actually occurs:

Applicant Eligibility:

1) Increased activity

a) the assignment of more than 2,000 military, civilian and
Dob contractor personnel to a new or expanded
installation:

b) the assignment of more military, civilian, and contractor
DoD personnel than the number equal to 10 percent of
employment in counties or independent municipalities within
15 miles of the installation, whichever is less:
2) Decreased Activity: from alignment/closure of an installation.

Additionally, the Secretary of Defense must make determination
that the action is likely to impose a significant impact. DoD funds
may be provide only if other Federal, State or Local resources are
not adequate. State or local governments, regional organizations
composed of State and local governments, regional organizations,
and Federally recognized Indian Tribes located within the 50
States, the District of Columbia, the Commonwealth of Puerto Rico
and Guam are eligible if the above statutory criteria are met.

Beneficiary Eligibility:

State and local governments, regional organizations composed of
State and local governments, or Federally Recognized Indian
Tribes that represents the impacted area.

Credentials/Documentation:

Documentation that: 1) the Defense action will occur and that it
has imposed or is likely to impose a substantial or serious impact;
2) other Federal, State, or local resources are not adequate; 3) the
threshold criteria of the legislation has been or will be met; the
community planning will be beneficial to DoD and the affected
community; and 4) there is an immediate and substantial need for
5-15

the funding.
Application/Award.
Preapplication Coordination:
Requirements should be discussed with other State and Federal
agencies to ascertain iffunding is available.

Application Procedure:

The standard application forms required by 32 CFR Part 278 must
be used for this program. Applications and supporting documents
should be submitted to the Director, Office of Economic
Adjustment, OASD (FM&P), Pentagon, Room 4C767, Washington,
DC, 20301-4000.

Award Procedure:
Applications are approved by the Director, Office of Economic
Adjustment, in consultation with the Military Department involved.
Considerations:
Formulas & Matching Requirements:
This program has no statutory formula. A minimum of 25.0%
should be obtained from non federal sources, in the form of cash.

Length and Time Phasing:

Up to 1 year, funds are disbursed quarterly or as required. Funds
should be expended during the grant period.
Port Assistance:











Average Assistance:
In accordance with the provisions of the OMB Circular No. A-128,
'Audits of State and Local Governments', State and local
governments that receive financial assistance of $100,000 or more
within the State's fiscal year shall have an audit made for that
year. State and local governments that receive between $25,000
and $100, 00 within the State'sfiscal year shall have an audit made
in accordance with Circular No. A-128, or in accordance with
Federal Laws and regulations governing the programs with which
they participate.


Average assistance ranges from $100,000 to $200,000.
5-16

Regulations:


Contact:








Related Programs:
See OMB Circular Nos. A-128 and A-87, 32 CFR Part 278 and
Part 280, Subpart F, Appendix C.

Director, Office of Economic Adjustment
OASD (FM&P)
Pentagon
Room 4C767
Washington, DC 20301-4000

Telephone: (703) 697-9155


11.307, Special Economic Development and Adjustment Program-
Sudden and Severe Economic Dislocation and Long Term
Economic Deterioration; 12.600, Community and Economic
Adjustment,   14.218,   Community   Development   Block
Grants/Entitlement Grants; 14.219, Community Development Block
Grants/Small Cities Program; 93.032, Community Services Block
Grant-Discretionary Awards.
State and Local Incentives

The state and local incentives offered by the state of South Carolina can be instrumental in
recruiting industries not only to the Charleston Tri-County region but also to areas deemed
appropriate for reuse.
Industrial Revenue Bonds
Counties, municipalities and several authorities may issue tax
exempt bonds, termed IRB's, to manufacturing firms. Such bonds
generally carry an interest rate of approximately 70.0% of prime,
and are typically issued for terms ranging from 1-0-20 years. The
company's credit is pledged to repay the bonds rather that of the
governmental entity issuing the bonds.
Uses include the acquisition of fixed assets such as land and
buildings, water and sewer treatment facilities and disposal
facilities, machinery, equipment and office facilities and
furnishings. The renovation and expansion of existing facilities are
also eligible, and up to 2.0% of the bond proceeds may be used
for administrative costs.

A composite bond program is available through the state's Jobs-
Economic Development Authority (JEDA). JEDA is authorized
5-17

to issue IRB's as a pooled bond on behalf of smnall businesses
which, although eligible for tax exempt status, would find the cost
of stand alone issues uneconomical. The maximum issue is $10.0
million and the minimurn for practical purposes is $500,000.
Smnall Business Loans
The Federal Govemnment provides for a Small Business
Administration 503 Loan Program which is packaged and serviced
by the City-Wide Development Corporation with commercial bank
participation. The 503 program provides monies to finance plant
construction, to acquire machinery and equipment, to buy land and
to make leasehold improvements.
All loans are contingent on job creation. The maximum loan is
$750,000 which cannot exceed more than 40.0% of the total
project cost. There must be a minimum of 10.0 equity infusion.
Small Business Administration Guaranteed Load Program Loans
made through commercial lenders guaranteed up to 90.0% of the
loan amount by the SBA. Guarantees cannot exceed $500,000.
Community Development
Administered by the Governor's Office, this program provides
three funding measures. Grant programs make funds available to
counties or municipalities to help provide or improve infrastructure
and are intended to create or retain permanent jobs. Grants are
awarded on a competitive basis.
The Governor's Discretionary Program allows monies to local
governments on an "as needed" basis for such purposes as water
and sewer extension, site preparation and rehabilitation or
construction of buildings.
Loan Program:




JEDA:
Funds are available to business and industry for construction
purposes. At least 52.0% of the borrower's employees must be
persons with low or moderate household incomes. The interest
rate is negotiable.

Jobs-Economic Development Authority loan may provide up to
$500,000 (or 40.0% of the project cost - whichever is less) for
capital expenditures.   The  participation  of a unit of local
government is required in all direct loans and/or guarantees form
JEDA. These loans interest rates range from 85.0% of prime to
plus 1. 0% depending on the term of the loan, with an interest floor
of 8.5 %. The maximum term is 15 years. The job-to-dollars ratio
cannot exceed one job per $10,000.
5-18

Job Training Partnership Act will reimburse a company for up to
half of the wage costs for certain workers who are in an on-the-job
training  program.    The  training  time  period  for  wage
reimbursement is reflective of the amount of training needed .
This program may be used along with the state's pre-employment
job training.
JTPA:
South Carolina counties are empowered to negotiate a fee in lieu
of property taxes with prospects or existing industries which
commit to large capital investments in the state. The firm must
invest an initial minimum of $85.0 million. Projects must be
financed with taxable IRB'S and a purchase-leaseback agreement
with the political subdivision holding actual title to the property.
The County can negotiate down to a fee equivalent to 6.0%
assessment ratio.

$10.0 million in set-aside annually by the state of South Carolina
specifically for the development of highways essential to economic
development  projects.    These  funds  can  be  used  for  the
construction of new or improved roads for the benefit of new or
expanding business.

This fund, initially capitalized at @2.0 million, provides low
interest, first mortgage loans to develop good basic building
projects in the 24 counties which were designated Presidential
declared Disaster areas in the aftermath of Hurricane Hugo.
Funding is provide by the JEDA to the Berkeley-Dorchester-
Charleston Council of Government's local development
corporation. Loans will normally be in the range of $250,000 to
$350,000, with a maximum of $400,000.

The Berkeley-Dorchester-Charleston Council of Governments
established a revolving fund for economic development activities.
These funds are available to help finance fixed assets and working
capital. The average size of the loan is $50,000. The maximum
loan amount is $100,000 and the minimumis $15,000.

The state provided incentives for corporations to establish their
headquarters or regional operations in South Carolina. A five year
tax moratorium on county ordinary property is available to
headquarters, administrative and distribution offices creating 75
new full-time jobs. Headquarters offices meeting the defined
criteria are eligible for a grant up to $500,000 to help offset the
costs associated with establishing operations in South Carolina.
Fee-In-Lieu Tax:








Highway Set-Aside:





Palmetto Basic Building:








COG's Revolving Loan:





Corporate HQ's & Office:
5-19

Headquarters and administrative offices establishing operations in
South Carolina with a minimum of 75 new full-time jobs receive
a 20.0 percent state tax credit. Credit is given for the costs of
construction or five year lease expense of actual office space.
Credits for Infrastructure:





Tax Credits\Exemptions:









Taxes:
Credits 'to corporate income taxes are permitted for corporate
contributions to infrastructure (water, sewer, roads) construction
or improvement. Credit is permitted for 50.0% of the expense,
not to exceed $10,000. Unused credits may be carried forward
three years.
A $300 corporate income tax credit, or insurance premium tax
credit for insurance companies, is granted for each new full-time
job created, with a minimum of 50 jobs. Credits are granted for
a five year period, beginning with year 2 though 6 after the
creation of the job. Expansion which occur within the 5 year
certification period are also eligible to receive the jobs tax credit.
Credits used in any single year may not exceed 50.0% of the
year's tax liability. Unused credits may be carried forward for 10
years.

* South Carolina has no manufacturer's inventory tax.
*	No unitary tax on worldwide profits.
*	No wholesale sales tax.
* Permits a 15 year net loss carry forward period.
*   Exempts, for a period of five years, all new and newly
expanded manufacturing facilities with a capital investment
in excess of $50,000 from all property taxes except those
levied for public schools and certain special taxes.
*   Provides a Waes tax exemption for all manufacturing
machinery, repair parts, industrial electricity and fuels, and
materials which become and integral part of the finished
product.
*   Exempts air and water pollution control and abatement
equipment form al local property taxation.
*   Assesses a six percent, rather than a 10. 5%, the real estate
property owned by or leased to a manufacturer and used
for research and development purposes and real property
owned by or leased to a manufacturer and used as an office
building.
Job Training:                      Special Schools is part of the Economic Development
Division of the State Board for Technical and
Comprehensive  Education.   Special Schools provides
individually designed pre-employment training programs
5-20

fo.r cormpanies seeking to relocate or expand in the
Berkeley-Dorchester-Charleston county area at virtually no
cost to the owner. The program can include the following:
ï¿½   Trainee  recruitment,  screening  and  testing  in
conjunction with the South Carolina Employment
and Security Commission
*	Instructor recruitment and training\
*	Provision of training site(s), if not conducted on
company premises.
*   Developmnent of instructional materials including
print, audio or video.
*    Comnplete program management from beginning to
successful start-up and expansion assistance.

An interesting law which is available to counties wishing to collaborate to form industrial or
business parks can be found in Section 4-1-170 of the South Carolina Code of Laws and
Regulations. The law reads as follows:'

Section 4-1-170

By written agreement, counties may develop jointly an industrial or business
park with other counties within the geographic boundaries of one or more of the
member counties as provided in section 13 of Article WIi of the State
Constitution. The written agreement entered into by the participating counties
must include provisions which:

1) AddressY sharing exenses of the park;
2) Specijfy a percentage the revenue to be allocated to each county.
3) Specify the manner in which revenue must be. distributed to each of the
taxing entities within each of the participating counties.

For the purposes of bond indebtedness limitation and for the purpose of
computing the index of taxing ability pursuant to Section 59-20-2-0(3), allocation
of the assessed value of the property with in the park to th e participating counties
and to each of the taxing entuities within the participating counties must be
identical to the allocation of revenue received and retained by each of the
counties and by each of the taxing entities within the participating counties. '

The interesting provision of the regulation is that the business/industrial park is treated as a
separate entity and can avail themselves of the economnic recruitment incentives of any of the
counties that are a part of the agreement. As a result, the maximum allowable jobs tax credit
and other available incentives can be taken regardless of where the industrial park physically
resides. This mechanism was recently used in the recruitment of Magna Intemnational to
Greenville county where jobs tax credits were allowed even though Greenville County is
technically not eligible for the credit.
5-21

I
[l[ll~ ~--    ll
II              Il
BIBLIOGRAPHY
I  IIIII  I
!
!
6-1

BIBLIOGRAPHY


Section 2.:   Trends Affecting Develooment

1.    Lyne, Jack, Carolinas Lead Southern Surge in Site Selection's Inaugural Business
Climate Rankings.", Site Selection, October 1993, PP. 1170-1173.

2.     Sample, James O., "Should you reengineer, Relocate or Both", ExDansion Management,
July-August 1993, pp. 6.

3.     Patterson, Eric and Nachmnan-Hunt, Nancy, "Ahead by a Nose - Services Get a Fast
Track, Manufacturers Move Slowly.", Exransion Management, March-April 1993. pp.
14-16.

4.     Stackhouse, Steve., "Today's Growth Industries." Area Development, September 1993,
pp. 76.

5.     Heenan, David A., "Small Towns, Big Business: The New Location Frontier.", Site
Selection, 1993. pp. 1368..1380.

6.	U.S. Industrial Outlook 1994, 35th Annual Edition, U.S. Department of Commerce.

7.	Bryant, Frank. "EPACT Aftermath; States Begin to Test Waters on Retail Wheeling.",
Enermv User News, Vol 19, No 1, January 1994, pp. 1, 4, 61 and 62.

8.    Mandel, Michael J., "The Rush to Roll Back Taxes", Business Week, February 7 1994,
pp. 114-115.

9.     Sparks, Robert M.,  "NAFTA's Implications for Economic Development",  Area
Development, January 1994. pp. 31-32.

10.   Dillingham, Susan, "The Rating Game: Decisions Can Turn on the Price of Power",
Plants Sites & Parks, November\December 1993, pp. 38-44.

11.   Farell, Christopher; Melcher, Richard; Therrien, Lois; Schiller, Zachery; Hof, Robert
D.; Zellner, Wendy and Jones-Yang, Dori, "It Won't Take your Breath Away But...The
Economy is Poised for Modest, Steady Growth", Business Week, January 7, 1994, pp.
60-66.


12.    Venable, Tim, "Site Selection's 1992 Top Groups", Site Selection, April 1993, pp. 298-
334.
6-2

13.   Venable, Tim, "Development Groups Go High Tech In Serving Corporate Clients", Site
Selection, April 1993, pp. 272-296.

14.   Siting and Consulting Services Qualification brochure, compliments of Fluor Daniel,
Inc.'s Siting and Consulting Services Group.

15.   McLeman, Neil, "Agency Competition Sharpens Focus", Comorate Location, November
1993, pp. 21.

16.   Murcio, F. Javier and Savaresem  Dierdre, "NAFTA  Makes North America Hot
Property", Expansion Management-1993 Atlas and Guide, pp. 14.

17.   Bergeron, Tom, "Corporate Executives Rate Site Selection Factors" Area Development,
December 1993, pp. 39-55.

18.   Barkley, David L. and Hinschberger, Sylvian, "Industrial restructuring: Implications for
the Decentralization of Manufacturing to Nonmetropolitan Areas", Economic
Development Quarterly, Feb 1992, pp. 77.

19.   Carlsson, B., "Flexibility and the Theory of the Firm", International Journal of Industrial
Oreanization 7, 1989, pp. 179-204, and Item number 18 as previously listed

20.	Citation: Stephen S. Roach, economist at Morgan Stanley & Company.

21.	U.S. Office of Technology Assessment, After the Cold War: Living with Lower Defense
Spending, OTA-ITE-524 (Washington, DC: U.S. Government Printing Office, February
1992, pp 5.

22.   Beebe, Todd and Liljenwall, Ted G., "NAFTA: How to Maximize Opportunities in
Mexico", Site Selection, December 1993, pp 1405.

23.   U.S. Office of Technology Assessment, Paying the Bill: Manufacturing and America's
Trade Deficit, OTA-ITE-390, (Springfield, VA: National Technical Information Services,
February 1990.

24.	Staff Writers, "Site Selection", Business Facilities, January 1994, pp 21,22 & 24.

25.	Elliott. Jr. Charles K. and Shapiro, Andrew, H., "Changing U.S. Labor Force Presents
New Challenges for Corporations", Site Selection, June 1993, pp. 618-628.

26.    Coffee, Hoyt E., "Big Labor's Long Slide", Site Selection, December 1993, pp. 1324-
1331.
6-3

27.   Haner, Tom. "Assessing a Labor Market, Simple Steps to Avoiding the Pitfalls", Site
Selection, December 1993, pp. 1314-1322.

28.	Coffee, Hoyt E., "Big Labor Slide", Site Selection, December 1993, pp. 1324-1327.

29.	Wall Street Journal, May 24, 1993.

30.	Associated Press, Greenville New Piedmont, "5 Year High In Hiring Predicted",
February 28, 1994, Section C, Page 1.
31.   U.S. Office of Technology Assessment, After the Cold War. Living with Lower Defense
Spending, OTA-ITE-524 (Washington, DC: U.S. Government Printing Office, February
1992, pp 9.

32.   Report of the Defense Conversion Commission,  "Adjusting to the Drawdown",
December 31, 1992.

33.	Act No.# 93-851, Alabama State Legislative Action of September 7, 1993.

34.	The Governor's Development Council Executive Summary of the Business Expansion and
Support Act of 1994.

35.	North Carolina's Financial Advantages for Business.

36.	Hatch, C Richard, "Flexible Manufacturing Networks - Cooperation for competitiveness
in a Global Economy", Corporation for Enterprise Development, ISBN: 0-9605804-8-4,
1988.

37.   Harrison, Bennett, Economic Develooment Ouarterlv, Vol. 8, No. 1., February 1994,
pages 3-18.

38.	Harvard Business Review, Page 12, May-June 1994.

39.	Davis, Steven. J.; Haltwinger, John; Shuh, Scott, Business Economist, Vol. 29, page 13-
22, July 1994.



Section 4:    Constraints and Potentials

1.    Adjusting to the Drawdown, Report of the Defense Conversion Commission, pp. i,
December 31, 1992.

2.    Miller, William H., "Defense Conversion - the Fourth Time Around", Industry Week,
6-4

April 4, 1994, pp 20.
3.    Ladesich, Jim, "Base Closures - A Economic "Kiss of Death", or a New Opportunity for
Communities and Business? - A Staff Report, Business Facilities, April 1994, pp 40.

4.    Quotation from Wallace Bishop, Senior Project Manger at the Office of Economic
Adjustment.

5.    "Civilian Reuse of Former Military Bases - Summary of Completed Military Base
Economic Adjustment Projects, Office of Economic Adjustment, office of Assistant
Secretary of Defense Force Management & Personnel, The Pentagon, Washington, D.C..

6.	"Communities in Transition", The President's Economic Adjustment Committee,

7.	Mackinnon, David, "Changes at Military Bases: A Community Planning Challenge",
Federal Planner's Network, Summer, 1990.


Section 5.:  Industrial Recruitment Resources Assessment

1.    "Charleston Trident Area  Economnic  Development  Strategy",  Growth  Strategies
Organization, April 1994, page 79.

2.    Military Base Reuse Studies and Community Planning Assistance, Office of Economic
Adjustment, Office of Assistant Secretary of Defense, Department of Defense.

3.    Tax Information for a Manufacturiniz Plant Locatine in South Carolina, Administrative
Division South Carolina Department of Revenue, 1993, page 37.
6-5

APPENDIX
Appendix - Page I

Appendix 1

1993 Site Selection Survey
Appendix - Page 2

Appendix 1                         1993 SITE SELECTION SURVEY
(All figures are percentages)

Very	Minor	Of No
Important        Important	Concern
	Imnportance
LABOR
Availability of skilled labor	44.6	44.2	9.4	1.9
Availability of unskilled labor	16.8	37.4	30.2	15.7
Worker\technical training programs	15.1	45.7	30.6	8.5
Labor costs	51.9	38.4	8.2	1.5
Low union profile	48.3	27.6	18.8	7.6
Right-to-Work state	42.4	28.2	21.8	7.6

TRANSPORTATION
Highway accessibility	46.5	40.6	9.6	3.3
Railroad service	10.3	18.3	37.0	34.4
Accessibility to major airport	22.2	35.2	30.1	11.6
Waterway or ocean port accessibility	6.5	14.1	33.2	46.2
Availability of telecommunications
services                             40.5              40.2             13.6                5.7

FINANCE
Availability of Long-term financing	49.4	39.5	7.8	3.4
Tax exemptions	41.3	41.7	13.6	3.4
State and local incentives	40.1	42.6	13.9	2.6

OTHER
Nearness to major markets	34.7	42.2	17.5	5.6
Cost of land	24.9	45.3	20.8	9.1
Availability of land	22.9	49.6	19.0	9.7
Occupancy or construction costs	29.5	56.0	9.2	5.4
Raw materials availability	26.2	33.9	23.9	16.2
Energy availability or costs	39.7	43.5	11.1	5.7
Environmental regulations	44.8	32.6	16.1	6.5
Nearness to suppliers	16.7	42.1	29.9	11.4
Nearness to technical university	9.1	23.5	43.9	23.5

QUALITY OF LIFE FACTORS
Climate	17.2	44.8	30.1	7.5
Housing availability	19.9	56.9	19.9	3.4
Housing costs	25.4	55.6	16.4	2.6
Health facilities	21.6	59.5	15.9	3.0
Ratings of public schools	28.1	52.4	15.4	4.1
Cultural opportunities	13.7	45.6	32.7	8.0
Recreational opportunities	9.5	50.5	36.1	3.9
Colleges and universities in area	16.6	40.0	35.1	8.3
Low crime rate	44.8	41.8	11.9	1.5

Source: Area Development, 1993.
Note:   Survey is conducted primarily focused on manufacturing executives.
Appendix - Page 3

Appendix 2
Corporate Economic and Environmental
Progress Continnuum
Appendix - Page 4

Appendix 2
CORPORATE ECONOMIC AND ENVIRONMENTAL PROGRESS CONTINUUM

T PARADIGM:l                                      - l                         I	3                          I iPwOAgTIE r



ORIENTATIONS              Short term growth	Growth constrained	Growth guided by	Growth geared to
and prosperity	by regulatory	environmental and	sustainable development
restnctions	economic concerns


DOMINANT	Belief in infinite      Meeting regulations,	Focus on efficiency,	Convergence of
TRENDS	supply of resources          remediation	energy conservation	business and
standards.	beyond compliance	environmental systems


ENVIRONMENTAL             * Unregulated waste	0 Forced	* Proactive risk and	ï¿½ Strong internal and
POLICY AND                    disposal.	environmental	impact assessment.                  external
OPERATIONS	assessment and                                            communications.
* Value only	compliance.             * Proactive pollution
tangible goods  prevention.                                                       ï¿½ Life-cycle costing.
services.           * Business as usual
plus required             * Energy efficient	* Environmental
* High energy input	treatment and                  programs.	responsibility resides
per unit of	cleanup.	with every employee.
production.                                    * Reliance on renewable
* Anti-regulatory               resources.        ï¿½         Systems approach
ODependence on               lobbying.                                           integrating business and
quick fix.	* Beginning to think	environmental
* Determination of	'Cradle-to-Grave".	functions.
* Undeveloped           optimum pollution
communications with             levels.	0 Beginning dialogue with	ï¿½ Low energy input per
employees and	public ania employees.	unit of production.
public concerning	* One way approach
environmental issues.	to external and	* Executives visible and
internal	involved with issues.
* Management            communications.
indifferent to                                       0 Emphasis on
environmental issues       * Environmental          environmental education
issues isolated within           and training.
one or two
departments.

POTENTIAL	0 Immediate           * Reduced penalties       * Prolonged industry life-	* High employee
ADVANTAGES	economic gain and             and fines.                    cycle.	morale and
profitabllity.	productivity.
* extended resource	* Anticipating cost of
* Reduced short-            availability.	regulatory compliance.	0 Maximum efficiency
term costs of dealing	and utilizations.
with wastes.            * Less negative        * Enhanced public image.
publicity.	* Working relationship
* Distribution of	0 Reduced cost of	with community.
environmental costs     * Awareness of legal	production through
to society.	recuirements.                 efficiencv.

POTENTIAL	ï¿½ Risks higher for	a	Regulatory	* Capital costs of retooling	* Sacrificing maximum
DISADVANTAGES	being blind-sided.	constraints to growth.	for greater efficiency.	short-term profitability.
* Poor public	* Extra costs of	* Up-front costs of	* Restructuring
image.	compliance.	implementing new	corporate policies and
environmental policies.	management styles
* Poor employee	0 Costs of crisis	creates disruptions.
mora[.	management.             0 More public scrutiny
and exposure.             * Additional economic
* No long-term	* Competitive	burden of
master plan to deal	disadvantage within        * Alienation of industry	internalizing.g
with shortages.             industry.                   and peers.	environmental costs.
* Exposure to
financial liabilities
and criminal
prosecution.


Source: Environmental CommunicationsArsciales.
Appendix - Page 5

Appendix 3
Canada, Mexico and the United States
A Comparative Profi'le
Appendix - Page 6

Appendix 3
Canada, Mexico and the United States
A Comparative Profile


CANADA                        MEaXICO                         U.S.
ECONOMY
Real GNP (S Billions) ................................................... $474.1	$302.3	$4575.7
Percent Real GNP Growth, 1991 ..................................... -2.0%	-0.07%	3.6%
Consumer Price Increase, 1991 ....................................... 5.6%	22.7%	4.3%
ManufacturingProportionofGNP, 1992 ............................ 17.0%	25.0%	19.0%

DEMOGRAPHICS
Population (Millions 1991) ............................................ 26.8	90.0	252.5
Percent of Population Under 1991 ...................................     28.1%	40.0	29.2
Projected Annual Population Growth Rate, 1990-2000 .......... 0.9%	1.9%	0.7%
Per Capita GNP, 1992 ................................................. S20,783	$2,921	$20,629

EDUCATION
Literacy Rate ........................................................... 99.0%                         87.0%                          97.0%

LABOR
Labor Force (Millions) ................................................ 13.5	31.8	123.9
Labor Force Annual Growth Rate, 1990-2000          ...................   1.2%	3.2%	1.3%
UnemploymentRate, 1992 ........................................... 11.3%	14.5%(Est.)	7.0%
Labor Force as Percent of Population .............................. 52.0%	38.4%	50.3%
Female Employees as a Percent of Populations        ...................  43.9%	27.8%	44.5%
Workweek (hours paid per week per
manufacturing worker) ................................... 38.6	47.1	41.0
Percent of Workforce Unionized ....................................      36.2%	42.8	18.0%
Industrial Disputes (working days lost per
1,000 employees per year, 1987-89 average)    ........         67.6                            0.5                           28.4
Significant Limitations on Employment of
Foreign Nationals ..........................................   Some                         Yes (10.0%)                       No
Significant Restraints on Employment
Terminations ................................................ Moderate	Yes	No

Employment Turnover Levels ........................................	Low	Mod. to High	Low to Mod.

Substantial Reengineering/Downsizing ..............................	Recently	No (But factory	Well underway
under way	automation to
improve qual.)

National Minimum Wage, 1992 ....................................        $4.00 Nat'l                    $0.57-S0.69                     $4.25
$4.30-5.30 provinces
Avg. Hourly Manufacturing Wage for Production
Workers 1992 .............................................. $10.88                             $1.30                         $10.92
Fringe Benefits as a Percent of Straight-Trimeun
Salary (Avg. including mandatory
and customary) ...........................................	33.0%	80.0%	28.0%

Mandatory Overtime Pay for Hourly Workers .....................	Yes (Imt'd	Yes (2 x salary	Yes(l.Sx salary
to 8 hrs.\week	first 9 hrs, 3x	and 2 X on
min 1.5 x salary	salary after 9 hrs	holidays
and on holidays

Geographic Variation in Avg. Wages\Salaries         .....................  Moderate                    Slight                         Substantial



Source: The Wadtley-Donovan Group. Inc. 1993
Appendix - Page 7

Appendix 4
Forecast Growth Rates for
136 Manufacturing Industries and Groups
Appendix - Page 8

Appendix 4
Forecast Growth Rates for 136 Manufacturing Industries and Groups
Growth Rate 1993-94
~%     ~	Rank
1.0	113
5.4	16
2.0	85
2.0	86
3.0	60
2.5	73
1.5	105
9.4	4
4.0	39
3.7	45
4.3	27
2.8	68
6.4	8
3.0	61
0.1	119
2.0	93
3.7	44
3.0	55
4.0	40
2.7	69
-5.0	129
2.0	95
1.9	100
0.4	116
-1.7	123
3.5	47
1.2	108
6.0	11
3.0	62
1.9	101
2.0	89
2.0	90
1.9	99
2.0	92
1.4	107
2.0	98
2.0	91
2.5	76
2.0	88
-4.8	128
2.5	77
3.5	49
1.0	114
1.0	112
3.0	64
5.0	19
4.0	31
6.0	9
-1.9	124
2.0	82
3.0	59
1.0	110
0.8	115
0.1	120
3.5	48
-5.2	130
2.0	84
2.0	96
Growth Rate 1987-94
%	Rank
1.1	69
-3.5	127
-1.8	120
-0.2	94
-1.4	112
-0.1	90
-1.2	107
5.0	16
3.3	26
0.0	85
2.2	42
-1.0	101
3.3	25
1.2	67
-3.3	126
-0.7	97
2.1	48
1.9	51
1.8	54
0.9	73
-4.2	129
1.7	57
-1.3	110
-0.4	95
-2.7	123
2.4	37
2.3	38
2.2	45
4.1	19
7.1	10
1.5	60
10.9	3
5.9	13
4.0	20
0.0	85
-1.4	113
1.7	56
-1.2	108
0.6	80
1.4	63
2.0	50
-0.2	93
1.1	68
1.0	72
2.3	40
2.2	41
7.3	8
-0.1	91
1.4	62
-2.9	124
-3.0	125
-10.2	136
-4.7	130
1.3	64
-5.0	131
-6.9	135
-0.9	100
-1.3	111
1994 Shipments
355.553
0.157
9.627
17.066
8.473
2.048
4.524
5.765
3.588
7.977
6.140
2.000
3.030
118.600
25.221
16.517
14.610
3.720
8.840
47.651
5.486
3.278
2.645
1.140
1.470
2.800
20.437
30.473
4.363
5.429
35.710
4.542
2.408
15.216
5.575
2.722
16.438
11.677
2.549
4.203
7.249
4.604
127.601
11.153
6.170
68.040
1.161
2.202
0.256
1.719
1.063
0.198
0.132
1.018
0.384
0.239
2.386
3.944
SIC
20
2386
2411
2421
2431
2435
2436
2451
2493
2511
2512
2514
2515
26
2711
2721
2731
2732
2741
275
2761
2771
2782
2789
2791
2796
281A
2821
2822
2833
2834
2835
2836
2841
2842
2843
2844
2851
2873
2874
2879
2891
2911
3011
3069
308A
3088
3111
3142
3143
3144
3149
3151
3161
3171
3172
3211
3241
Industry
Food & kindred products
Leather and sheep-lined clothing
Logging
Sawmills and planing mills, general
Millwork
Hardwood veneer and plywood
Softwood veneer & plywood
Mobile Homes
Reconstructed wood products
Wood Household furniture
Upholster household furniture
Metal household furniture
Mattresses and bedsprings
Paper & allied products
Newspapers
Periodicals
Book publishing
Book printing
Miscellaneous publishing
Commercial printing
Manifold business forms
Greeting cards
Bankbooks & loose leaf binders
Bookbinding & related work
Typesetting
Plate making services
Ind. inorganic chemicals, except pigments
Plastics, materials & resins
Synthetic rubber
Medicinals and botanicals
Pharmaceutical preparations
Diagnostic substances
Biological products except diagnostic
Soap and other detergents
Polishes and sanitation good
Surface active ingredients
Toilet preparations
Paints & allied products
Nitrogenic fertilizers
Phosphatic fertilizers
Agricultural chemicals, nec
Adhesives and sealants
Petroleum refining
Tires and inner tubes
Fabricated rubber products, nec
Misc. plastic prod.'s, exc. bottles/plumb.
Plastics plumbing fixtures
Leather tanning and finishing
House slippers
Men's footwear, except athletic
Women's footwear, except athletic
Footwear, except rubber nec
Leather gloves and mittens
Luggage
Women's handbags and purses
Personal leather goods, nec
Flat glass
Cement, hydraulic
Appendix - Page 9

Appendix 4 - Continued
Growth Rate 1993-94
%	Rank
3.0	66
2.5	72
1.6	104
2.5	71
1.9	102
2.9	67
-2.0	125
6.0	12
4.0	38
2.5	74
2.5	75
2.0	97
4.0	37
3.0	58
3.1	54
12.8	1
3.6	46
4.0	35
5.1	17
3.9	42
3.0	56
3.9	43
1.8	103
4.1	30
4.5	23
3.9	41
5.9*	14
5.0	18
3.3	52
3.0	63
4.5	24
4.0	34
3.1	53
4.4	26
4.0	33
2.4	78
3.0	58
4.1	29
6.6	7
4.2	28
0.3	117
2.0	83
-.6	122
2.2	79
11.1	2
5.7	15
-3.8	126
7.7	5
-11.3	134
-20.0	135
-24.3	136
-.6	132
5.9	13
2.6	70
4.9	22
-5.3	131
-3.9	127
-6.6	133
4.5	25
Growth Rate 1987-94
%	Rank
2.2	43
-1.9	121
2.9	30
2.3	39
-0.9	98
-1.6	117
-1.4	114
2.4	364
0.7	77
0.5	82
2.8	32
1.0	71
-1.7	119
-1.6	116
3.0	27
1.9	52
1.4	61
2.5	33
1.9	53
0.2	84
-1.1	104
-1.2	109
1.3	65
0.4	83
-0.1	89
3.3	24
2.5*	35
0.8	74
0.0	85
-1.0	102
0.6	79
1.7	55
-0.5	96
2.1	49
2.2	44
2.9	28
5.1	15
3.3	23
0.5	81
1.6	58
-2.3	122
5.6	14
-0.1	92
3.7	22
9.3	4
1.3	66
0.6	78
2.1	46
-0.9	99
-5.8	133
-5.0	132
-1.2	106
-6.7	134
8.7	5
1.6	59
0.7	75
7.6	7
-3.8	128
-1.0	103
SIC
3253
3261
3275
331A
3431
3432
3441
3451
3452
349A
3523
3524
3531
3532
3533
3541
3542
3544
3546
3548
3552
3554
3555
3556
3562
3565
357A
3585
3612
3613
3621
3625
3631
3632
3633
3634
3635
3639
364A
3643
3644
3651
3661
3663
367
3711
3715
371A
3721
3724
3728
3731
3732
3751
3761
3764
3769
3812
3821
Industry
Ceramic wall and floor tile
Vitreous plumbing fixtures
Gypsum products
Steel mill products (SIC 3312,15,16,&17)
Metal sanitary ware
Plumbing fixtures and trim
Fabricated structural metal
Screw machine products
Bolts, nuts, rivets and washers
Valves and pipe fitting (SIC 3491, 3494)
Farm machinery and equipment
Lawn and garden equipment
Construction machinery
Mining machinery
Oil & gas field machinery
Machine tools, metal cutting types
Machine tools, metal forming types
Special dies, jigs tools & fixtures
Power-driven hand tools
Welding apparatus
Textile machinery
Paper industries machinery
Printing trades machinery
Food products machinery
Ball and roller bearings
Packaging material
Computerslperipheral(SIC 3571,72,75, 77)
Refrigeration and heating equipment
Transformers, except electronic
Switch gear and switchboard apparatus
Motors and generators
Relays and industrial controls
Household cooking equipment
Household refrigerators and freezers
Household laundry equipment
Electric housewares and fans
Household vacuum cleaners
Household appliances, nec
Lighting fixtures (SIC 3645,3646,3648)
Current-carrying wiring devices
Noncurrent-carrying wiring devices
Household audio and video equipment
Telephone and telegraph apparatus
Radio and TV communications equipment
Electronics components and accessories
Motor vehicles and car bodies
Truck trailers
Automotive parts and accessories
Aircraft
Aircraft engines and engine parts
Aircraft parts and equipment, nec
Shipbuilding and repairing
Boat building and repairing
Motorcycles, bicycles and parts
Guided missiles and space vehicles
Space propulsion and parts
Space vehicle equipment, nec
Search and navigation equipment
Laboratory apparatus and furniture
1994 Shipments
0.835
0.693
3.267
59.780
0.754
2.100
7.847
3.322
5.329
7.210
8.333
4.921
11.305
1.360
3.355
3.636
1.542
8.986
2.459
2.140
1.150
1.715
3.130
2.025
3.706
2.753
66.200*
18.029
3.301
4.577
7.040
6.882
3.270
4.060
3.530
3.460
1.870
3.020
6.425
4.297
2.471
8.656
17.400
18.400
93.767
145.800
3.587
107.158
36.630
13.350
12.555
7.831
3.300
1.906
24.081
3.717
1.980
27.570
1.650
Appendix - Page 10

Appendix 4 - Continued
Growth Rate 1993-94
1994 ShiWments	%	Rank
2.072	1.0	109
5.679	5.0	21
1.996	1.0	111
8.285	4.0	36
5.210	6.0	10
2.280	4.0	32
4.198	2.0	94
11.769	7.0	6
14.448	10.0	3
1.847	3.5	50
3.279	5.0	20
5.799	0.2	118
2.294	2.0	87
20.200	2.0	81
3.775	3.0	65
0.730	0.0	121
4.262	2.0	80
7.178	3.4	51
1.233	1.5	106
Growth Rate 1987-94
Se_	Rank
0.0	85
2.5	34
11.4	1
1.0	70
6.0	12
2.9	29
2.9	31
6.1	11
7.9	6
3.8	21
11.3	2
7.1	9
4.5	18
0.7	76
-1.1	105
-1.5	115
2.1	47
4.9	17
-1.7	118
SIC
3822
3823
3824
3825
3826
3827
3829
3841
3842
3843
3844
3845
3851
3861
3911
3931
394A
3949
3961
Industry
Environmental controls
Process controls equipment
Fluid meters and counting devices
Instruments to measure electricity
Analytical instruments
Optical instruments and lenses
Measuring and controlling devices, nec
Surgical and medical instruments
Surgical appliances and supplies
Dental equipment and supplies
X-ray apparatus and tubes
Electromedical equipment
Ophthalmic goods
Photographic equipment and supplies
Jewelry, precious metal
Musical equipment
Dolls toys and games (SIC 3942,3944)
Sporting and athletic good, nec
Costume jewelry
Source: U.S. Department of Commerce, International Trade Administration
ï¿½ Appendix - Page 11

Appendix 5
Executive Order 12788 and 12.607 Community Planning
Assistance Program Summary
Appendix - Page 12

Executive Order 12788
January 15,
1992
(I 3) Secretary of the Treasury;
(14) Secretary of Veterans Affairs;
(15) Chairman, Council of Economic Advisers;
(14) Directorof the Office of Managementand Budget;
(I 7) Director of the Office of Personnel Management;
(18) Director of the United States Arms Control and
Disarmament Agency;
(19) Administrator of the Environmental Protection
Agency;
(20) Director of the Federal Emergency Management
Agency;
(21) Administrator of General Services;
(22) Administrator of the Small Business Administra-
tion; and,
(23) Postmaster General
(b) Chairman. The Secretaries of Defense, Commerce, and
Labor shall rotate on a yearly basis, as chairman of the
Committee.
(c) Vice Chairman. The Assistant Secretary of Defense
who oversees the Department of Defense's Office of Eco-
nomic Adjustment shall serve as vice chairman of the
Committee. The vice chairman shall chair the Committee
in the absence of both the chairman and the chairman's
designee and may also preside over meetings of designated
representatives of the concerned executive agencies.
(d) Executive Director. The head of the Department of
Defense's Office of Economic Adjustment shall provide
all necessary policy and administrative support for the
Committee and shall be responsible for coordinating the
application of the Defense Economic Adjustment Program
to Departmenf of Defense activities.
(e) Duties. The Committee shall:
(1) Advise assist, and support the Defense Economic
Adjustment Program;
(2) Develop procedures for ensuring that State, re-
gional, and community officials and representatives of
organized labor in those States, municipalities, localities,
or labor organizations that are substantially and seriously
affected by changes in Defense expenditures, realignments
orclosures, orcancellation orcurtailment of majorDefense
contracts, are notified of available Federal economic ad-
justment programs; and,
Sec. 5. Responsibilities of Executive Agencies.
(a) The head of each agency represented on the Committee
shall designate an agency representative to:
(1) Serve as a liaison with the Secretary of Defense's
economic adjustment staff;
(2) Coordinate agency support and participation in
economic adjustment assistance projects; and,
(3) Assist in resolving Defense-related impacts on
Defense-affected communities.
(b) All executive agencies shall:
(1) Support, to the extent permitted by law, the eco-
nomic adjustment assistance activities of the Secretary of
Defense. Such support may include the use and application
of personnel, technical expertise, legal authorities, and
available financial resources. This support may be used, to
the extent permitted by law, to provide a coordinated
Federal response to the needs of individual States, regions,
municipalities, and communities adversely affected by
necessary Defense changes;
(2) Afford priority consideration to requests from De-
fense-affected communities for Federal technical assis-
tance, financial resources, excess or surplus property, or
other requirements, that are part of a comprehensive plan
used by the Committee.
Sec. 6. Judicial Review. This order shall not be interpreted
to create any right or benefit, substantive or procedural,
enforceable at law by a party against the United States, its
agencies, its officers, its agents, or any person.
Sec. 7. Construction. (a) Nothing in this order shall be
construed as subjecting any function vested by law in, or
assigned pursuant to law to, any agency or head thereof to
the authority of any otheragencyor officeror as abrogating
or restricting any such function in any manner.
(b) This order shall be effective immediately and shall
supersede Executive Order No.:X         12049


THE WHITE HOUSE,	.
January IS, 1992.	(4
(3) Report annually to the President and then to the
Congress on the work of the Economic Adjustnent Com-
mittee during the preceding fiscal year.

THE PRESIDENT
January 15, 1992
Executive Order 12788
Defense Economic Adjustment Programs
communities' problems;
(g) Assure coordinated interagency and intergovernmental
adjustment assistance concerning Defense impact prob-
lems;
(h) Prepare, facilitate, and implement cost-effective
strat-
egies and action plans to coordinate interagency and
intergovernmental economic adjustment efforts;
(i) Encourage effective Federal, State, regional, metropoli-
tan, and commuhity cooperation and concerted involve-
ment of public interest groups and private sector organiza-
tions in Defense economic adjustment activities;
(j) Serve as a clearinghouse to exchange information
among
Federal, State, regional, metropolitan, and community of-
ficials involved in the resolution of community economic
adjustment problems. Such information may include, for
example, previous studies, technical information, and
sources of public and private financing;
(k) Assist in the diversification oflocal economies to
lessen
dependence on Defense activities;
(O) Encourage and facilitate private sector interim use of
lands and buildings to generate jobs as military activities
diminish; and,
(m) Develop ways to streamline property disposal proce-
dures to enable Defense-impacted communities to acquire
base property to generate jobs as military activities dimin-
ish.
Sec. 4. Economic Adjustment Committee.
(a) Membership. The Economic Adjustment Committee
C'Committee") shall be composed of the following indi-
viduals, or a designated principal deputy of these individu-
als, and such other individuals from the executive
branch as
the President may designate. Such individuals shall
include
the:
(1) Secretary of Agriculture;
(2) Attorney General;
(3) Secretary of Commerce;
(4) Secretary of Defense;
(5) Secretary of Education;
(6) Secretary of Energy;
(7) Secretary of Health and Human Services;
(8) Secretary of Housing and Urban Development;
(9) Secretary of the Interior,
(10) Secretary of Labor
(11) Secretary of State;
(12) Secretary of Transportation;
By the authority vested in me as President by the
Constitu-
tion and the laws of the United States of America,
including
10 U.S.C. 2391 and the Defense Economic Adjustment,
Diversification, Conversion, and Stabilization Act of
1990,
enacted as Division D, section 4001 et seq., of the
National
Defense Authorization Act for Fiscal Year 1991, Public
Law 101-510 and to provide coordinated Federal
economic
adjustment assistance necessitated by changes in Depart-
ment of Defense activities, it is hereby ordered as follows:

Section 1. Function of the Secretary of Defense. The
Secretary of Defense shall, through the Economic Adjust-
ment Committee, design and establish a Defense
Economic
Adjustment Program.

Sec. 2. Purpose o.f the Defense Economic Adjustment
Program. The Defense Economic Adjustment Program
shall assist in the alleviation of serious community socio-
economic effects that result from major Defense base
closures, realignments, and Defense contract-related ad-
justments, and the encroachment of the civilian
community
on the mission of military installations.

Sec. 3. Functions of the Defense Economic Adjustment
Program. The Defense Economic Adjustment Program
shall:

(a) Identify problems of States, regions, metropolitan ar-
eas, or communities that result from major Defense base
closures, realignments, and Defense contract-related ad-
justments, and the encroachment of the civilian
community
on the mission of military installations and that require
Federal assistance;

(b) Use and maintain a uniform socioeconomic impact
analysis to justify the use of Federal economic adjustment
resources, prior to particular realignments;

(c) Apply consistent policies, practices, and procedures in
the administration of Federal programs that are used to
assist Defense-affected States, regions, metropolitan areas,
and communities;

(d) Identify and strengthen existing agency mechanisms to
coordinate employment opportunities for displaced agency
personnel;

(e) Identify and strengthen existing agency mechanisms to
improve reemployment opportunities for dislocated De-
fense industry personnel;

(f) Assure timely consultation and cooperation with Fed-
eral, State, regional, metropolitan, and community
officials
concerning Defense-related impacts on Defense-affected

12.607 MILITARY BASE REUSE STUDMS AND
CONMU1NITY PLANNIN~G ASSLSTANCE
(Community PLanning Assistamo)
IMDERAL AGENCY: OFFICE iOF ECONOMIC ADJUSTUMET,
OFFCE OF ASSISTANT SECRETARY OF DEFENSE
(FORCE MANAGEMENT AND PERSONNEL), DEPART-
MENT OF DEFENSE

)BJECT1VE& To assist State and local governments coodWc  =mitay
bas  reue sgudies and resove smrous communit  manc.ic prob-
kms resultng foma: Mlitary base  losum, openings, and rlin-b
ments- To conduct community impact planning that wMl be bmefl
ewa to the  epertient of Derens  an  the affecte jurisdiction.
YPES OF ASSISTANCE. Project Crants
!SES AND USE RESTRICTIONS: DoD fundingl may be provkde for
imilitary bas	reuse studies required for reuse of forume  Umliay
propery. DoD	may provide community planning gassisanc fund-
ins through a cooperative agreement or grat for plannling wdtvi-
dus consiered beneficial to DoD  and the affeced Community.
ActMivies include, but are not limiited to: Stafring, operating and
admiinistrative coils; travel; public information; and lgenera or spe-
cialized community impact studies conducted by contractom or
state or local government employees
23IGIBILITY REQUIREMEN1,TS:
Applicnt Eligblbwty An applicant may be eligible for DoD funding
for militay base reuse studies if the Secretary of Defense has an-
wmonced that the local military installation is a cadidate for sco-
mmr or that a final decision has been mnade to clowe the installatiM,
and, if one of the following actions is propose  Of actualY oc-
carted: I) Increased activity: (a) the assignment of more then
2.000 military. Civilian and DoD contractor personnel to a new or
expanded insallation; or (b) the assignment of more military, cavil-
ion. and contractor DoD personnel than the number equal to 10
percent of employment in counties or independent municipalities;
within 15 miles of the installation, whicbever is lesse; or 2) de-
creased activity: from the realignment or closure of a military in-
stalltion. Additionally, the Secretary of Defense mumsa ake a de-
termination thi the action is likely to impose a significant impact
ICA-31 fujnds may be provided only if other FederaL. State at local
reources are not adequate. State or loca  governments, regional
organizstions comnpose of State and local orsanizations aNW Fed-
erally Recogized Indian Tribes located within the 50 States. the
DWsrict of Columbia,. the Commonweath  of Puerto Rico and
Guam are eligible it the above statutory criteria are met.
Neuetclary Eligibility: State and loca  governments. region alrgai-
zations composed of State and local Sovernments, or Federally
Recopnited Indian Tribes that represents the impacted arms
"edetkui/Docunentation.  Documentation  that: I) The  Defense
action has or will occur and that it has impose o at liskely to
impose a substantial and serious impact; 2) other Federal, State, or
loca resources are not adequate; 3) the threshold criterion of the
legislation has been or will be met; the community planning will
be beneficia to DoD and the affected commundir, and 4) ther is
an immediate and substantial need for the funding.
APPLICATION AND AWARD PROCESS,
Preppllcatiou Coordination: Requirements should be discussed with
other Federal and State agencies to ascertan if hundig is avall-
able. This program is excluded from coverage under E.O0. 12372.
Application Procedure: The stadard application forms required by
32 CFR Part 271 must be used for thi program. Appliftcato  mad
supporting documentation should be submitted to the Director
Office of Economic Adjustment, OASD) (FMMP), Pentago
Room 4C767, Washington, DC 203014000.
Award Procedure: Applications are approved by the Directr, Offic
of Economic Adjustment, in consultation Withk the Miltary P0.-
partinet involved.
DeadUmma None.
Rtange of Approval/Disapproval Time: 90 dayL
Appeals None
RC"nawa None
ASSISTANCE CONSIDERATIONS:
Formula sand Mateling Requirements This progmam has no statutory
formula. A minimum of 25 percent sbould be obtained from non-
federal sources in the form of cash.
Length sad Time Phasing of Assistance Up to I year. Funds are dis-
burse quarterly or as required. Funds should be expended during
the grant perid.
POST ASSLSTANCE REQUIREENTS.:
Reporft Quarterly financia and progress reports are required.
Audits In accordance with the provisions of OMB Circuar No. A-
121, 'Audfits cof State and Loca Goverments, State and local
govemnments that receive finacW iaasistance of S 100.000 or miore
within the State's fiscal year shall bave an audit node for 6tha
yea. State and local atovernments that receive between S25,00D
and S100,000 witbin the StaWes fsA" year shl  have sm audit
made in accordance with Circular No. A-12S. or in accordance
with Federal laws ad regulations governing the programs in
which they participate:
Rftcords: In accordance with 32 CFR Part 271.
FINANCIAL INFORMATIONi
Account Idendfctloea" 9700100.0-1-051.
Obligatiom (irants) FY 91 S1,541,795; FY 92 eat S4,000,000, and
FY 93 eat 54,00,0.M
Range sand Average of Ft---mal AsdIsanc 31100,000 to S2=00.00
5150000
PROGRAM ACCOMPLISHMENITS: In fisal year 1991, 39 communi-
tie rceidved planning astistane funds. It is estimated that 25 new
communities will receive funds in fscl" year 1992.
REGULATIONS, GUIDELINMS AND LITERATURJ- OMB Circular
NosL A-lU8 and A47, 32 CFR Part 271 and Part 280, Subpart F.
Appendix C.
VINFRMATION CONTACTM-
Reffiona or Iund Offce.- COffice of Econormic Adjustment, OASD
(FM&P). Western Region. 7500 Sand Point Way, NE.. Seattle.
'WA 93115. Telephone: (M06)524-1$45.
Headquarter  Office: Directo, Office of Economic Adjustment,
OASD (FMAP), Pentagon Room 4C767, Washington. DC 20301-
4000. Telephone: (703) 697-9155.
RELATED PROGRAMS. 11.307, Specia Economiic Development and
Adjustment Assistance Program-Sudden and Severe Economic
Disocation  and  Long-Term  Beoomic  Deteroration; 12.600
Community Economaic Adjustment;~ 14.218, Community Develop-
umet Block Grants/Entitlement Grnts; 14.219. Community De-
velopment Block Grants/Small Cities Program 93.032, Communi-
ty Services Block Grant-Discretionary Awards.
EXAMPLES OF FUNDED PROJECTS:- Funds were provided for
reuse planning of closing basms
CRITERIA FOR SELECIING PROPOSALS: Magnitude of inmpat
Astatuory compliance immediacy of need, benefits to the naticn.
DoD and the affected community and rftsonabletess of proposed
level of funding considerin proposed work progams.