THE ISSUE: Site Selection magazine rankings

OUR OPINION: South Carolina has solid image as place to do business

The financial incentives granted to Boeing to bring a second airline manufacturing plant to South Carolina have drawn criticism in some quarters. There is no doubt, however, that tax breaks and a non-union working atmosphere were major players in landing the largest development project in the state’s history.

According to the latest round of rankings by Site Selection magazine, the state stands to benefit further from one of the best climates for business in the nation. The November 2009 issue has the Palmetto State ranked sixth among the 50 states.

The annual business climate rankings are determined 50 percent by performance of the state in Conway Data’s New Plant Database, which tracks new and expanded business facility activity, and 50 percent by a survey of corporate site seekers across the country. The survey asked, “Based upon your experience, what are the top 10 state business climates, taking into consideration such factors as lack of red tape, financial assistance and government officials’ cooperation?”

Site selectors also were asked to rank the factors most important to them when determining a location for a new facility. The top three factors are transportation infrastructure, existing work force skills, and state and local tax schemes.

As positive as such a ranking can be, there remain obstacles. Notable is the attractiveness of the state’s immediate competition for development. Virginia is third, Tennessee is fifth, and Alabama and Georgia are seventh and eighth.

Most interesting as a model for success, however, is North Carolina, which ranks first.

Among South Carolina’s leaders now and those in coming years, nearly everyone prioritizes development and the methods of attaining it. They should examine what is happening in North Carolina and what is being said about the Tar Heel State.

North Carolina is no Johnny Come Lately either. It is ranked No. 1 by Site Selection for the fifth consecutive year and for the eighth time in the last nine years.

Among North Carolina’s strengths cited by executives are the state’s tax climate, work force, incentives and economic development strategy, non-union environment, utility infrastructure, and legal and regulatory environment. Helping build and retain the talent base and corporate community all at once is a high-caliber infrastructure of higher learning, a topic explored at length in the magazine’s November cover story.

“The concentration of brainpower and R&D activity in North Carolina cuts across many disciplines, territories and institutions,” says Adam Bruns, managing editor of Site Selection. “Research parks, schools, companies and communities in the state have developed a real knack for working across boundaries, and it continues to pay off.”

The Site Selection rankings are significant in development circles. The magazine, published by Conway Data Inc., delivers expansion planning information to 44,000 executives. It is considered the senior publication in the development field.

South Carolina has reason to be pleased by its rank — and to be challenged by the image of our neighbor to the north.

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