Investment, Recruitment Growing at Record Pace

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Labor Day is a commemoration of the strength and contributions of the American worker. While our labor force has changed a great deal over the years, we celebrate the resilience and determination of our own work force in South Carolina.

It is with this strong work force that our state enjoyed a record year for capital investment and jobs recruited last year. In 2006, the Department of Commerce generated $2.99 billion in capital investment and 14,420 jobs, and this does not include the investments and jobs created by small businesses in South Carolina, which we know to be the driving force of our economy. This year, we are on track to produce even more.

World-class companies including Starbucks Coffee Company, Google Inc., Cytec Industries and the Adidas Group - a great corporate citizen in Spartanburg - have recognized the many benefits of doing business in South  Carolina and announced major investments in 2007 that will bring thousands of new jobs to all areas of the state.

In fact, just last week we announced two new members of the business community recruited by the Department of Commerce and our local allies. Bericap will become the first tenant in the new Upstate Corporate Industrial Park, bringing 45 new jobs to the area, and Innovative Fibers will locate its new manufacturing facility in Spartanburg, creating 40 new jobs.

Our state's labor force continues to grow faster than the national average. Despite the continued increase in the labor force, we are managing to create jobs at a greater rate than the national average. From July 2006 to July 2007, our state's job growth rate was 2.2 percent, while the U.S. rate grew at 1.4 percent for the same period. Today there are more than 170,000 more people working than there were nearly five years ago.

More companies are choosing to locate in our state because of the strong business climate and most importantly our skilled work force.

South Carolina has been recognized by Pollina Corporate Real Estate Inc. for its dedication to creating a business-friendly climate. In its report, Pollina ranked South Carolina No. 2 among the "Top 10 Pro-Business States of 2007."

Thanks to Gov. Mark Sanford's leadership, the Legislature took critical steps to better South Carolina's economic soil conditions through workers' compensation reform, tort reform and small business income tax reduction. Companies in the Palmetto State saved $54.5 million in 2006, thanks to a reduction in the small-business tax rate. We are already beginning to see the positive effects of workers' compensation reform in the state's job recruitment efforts.

In recognizing South Carolina among the top pro-business states in the country, the Pollina report highlighted the importance of a skilled work force and strong worker training program. Dr. Ronald Pollina stated that South Carolina's worker training program has "long been regarded as one of the leading job training programs in the country."

The state's worker training program, readySC™, has strengthened South Carolina's ability to compete in the global economy. In partnership with the 16 technical colleges throughout the state, readySC™ offers training programs that have diversified the state's work force and provided on-site training for new and expanding businesses in South Carolina. This training program has received national recognition. Expansion Management Magazine ranked readySC™ fourth in the nation among all state worker training programs.

The Department of Commerce is also increasing its focus to further improve our state's work force. In the coming months, Commerce's Workforce Division will launch a statewide initiative to further develop and coordinate the use of WorkKeys, a program that has seen success in select states where it has been implemented.

WorkKeys will give our state new ways to assess skills and training needs. Existing businesses can use the program as a tool to determine training needs among current employees and as a screening tool for future hires. Perhaps the most important element is that the program will assist our work force in determining a current skill set and the employment that best matches those skills.

With the recent news that the nation's economy grew at the fastest pace in a year during the second quarter, several indicators suggest South Carolina is poised for future growth opportunities. Individual withholdings are up for this fiscal year, as are individual declarations, the taxes paid by most small businesses.

According to the University of South Carolina's Moore School of Business, South Carolina's personal income is projected to continue to grow in 2007 and into 2008.

South Carolina has all the tools and assets necessary for continued success. As the state works to further economic development efforts, our business-friendly climate and strong work force propel us toward new opportunities that will work to grow the economy.

Joe Taylor is South Carolina's secretary of commerce.