[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 i-1 I I IL I vuI , ian4ng In Cooperation with .%^O0 RW- - el,1 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 ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... CHARLESTON HARBOR Overview .............. Location ............... Government ............. Transportation .......... Highways/Interstate ........ Climate ................ Colleges & Universities ...... STUDY AREA Section 3 ...... . 3-3 ...... 3-3 ...... . 3-3 ...... . 3-3 ...... 3-4 ...... 3-4 ...... . 3-4 ........... ........... . .......... ........... .o.o ... .... . o......... ........... ........... ........... ........... ........... ........... ........... ........... 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: 2-4 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. 2-5 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. � 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.. . � _ _ 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): � Continued weakness in the commercial real estate market, which was heavily over built in the 1980's. � 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 � 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. � 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; � 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% � -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. � A floating ro/ro ramp � 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: � 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 � Strong internal and POLICY AND disposal. environmental impact assessment. external OPERATIONS assessment and communications. * Value only compliance. * Proactive pollution tangible goods prevention. � 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. � 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 � 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 � 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 � 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.