In today's Columbian, Don Brunell uses his column to look at how South Carolina has positioned itself as a great place to do business. He starts with an event we all know well:
While parts for Boeing's new 787 "Dreamliner" are manufactured around the world, Washington elected officials should keep a close eye on South Carolina.
Vought Aircraft and Global Aeronautica, located at the Charleston International Airport, now manufactures half the 787's fuselage and state officials want more. Once assembled, the aft section is loaded on an enlarged 747 called the "Dreamlifter" and flown directly to Everett. Those facilities are brand new with the latest technology. They are striking evidence of South Carolina's manufacturing surge initiative -and state officials want more Boeing business.
He reminds us of the hurdles we had to leap just to keep the business here.
As Boeing's historic home base, Washington had an advantage with facilities and a trained workforce in place; however, because of our higher taxes and business costs, our state barely landed the final assembly plant.
Then he considers South Carolina's cost advantages.
For example, Washington's unemployment insurance costs for employers are five times higher than South Carolina. According to the 2008 WashACE Redbook survey, South Carolina's UI rates average $154 per employee compared to Washington's average of $803. ... As part of the state's effort to win the 787 assembly plant, the Washington Legislature approved unemployment insurance reforms. But in 2005, lawmakers, under pressure from the unions, backtracked on those reforms.
... South Carolina's lower business taxes are another lure for Washington manufacturers. For example, South Carolina ranks 34th in the nation, with private employers paying 42 percent of state and local taxes. Washington ranks 8th highest, with our private employers paying 53 percent.
Finally, South Carolina is a right-to-work state.
And he notes that our Legislature is considering policies that will hurt our competitiveness.
If lawmakers pass the so-called "union neutrality" bill, it could force Boeing contractors to reconsider their decision to stay in Washington. That bill would severely limit employers' ability to counter union organizing campaigns in the workplace.
If a company did not comply, it would have to repay the incentives authorized by the Legislature to entice those very companies to build manufacturing plants in our state.
Businesses like Boeing, he concludes, can move parts and materials freely around the world, often on Boeing jets.
They have ... choices - and too many states and foreign countries covet these family-wage jobs in today's highly competitive global economy.
A timely reminder.
