Lower Savannah Council of Governments (LSCOG), established in 1967, serves Aiken, Allendale, Bamberg, Barnwell, Calhoun and Orangeburg counties. It is one of ten regional planning organizations in South Carolina which coordinates cooperative development among local governments and seeks regional solutions for common problems.
The LSCOG, recently released an economic assessment of the six-county region completed by the Division of Research, Darla Moore School of Business, University of South Carolina. The assessment gives a detailed review of various economic and demographic data documenting the long-run economic history of the region as well as the impact of the COVID-19 pandemic. The report also gives an overview of identified potential growth opportunities for the region based on existing industry and workforce composition.
A few key findings of the report in relation to Aiken County are:
While South Carolina’s population has increased by 46.8 percent since 1990, the LSCOG region has seen total population growth of just 15.6 percent, with Aiken County being the only county in the region to have experienced any population growth, 39.5 percent, since 2010. More generally, Aiken County appears to be a positive outlier across many economic and demographic metrics that can be observed for the region.
· Between 2020 and 2035, South Carolina is expected to see population growth of approximately 28.2 percent based on historical trends. The Lower Savannah region is expected to grow 8.7 percent with most growth concentrated in Aiken County which has a projected growth rate of 20.7 percent.
· The median household income in the U.S. is $62,843 compared with $53,199 in South Carolina and $44,989 in Lower Savannah. In the region, Aiken County enjoys the highest median household income at $51,399.
The LSCOG area maintains several competitive advantages, including its strong geographic position. South Carolina and the broader Southeastern United States are projected to have among the highest rates of growth in the coming years. As such, there is perhaps no better time to strengthen efforts to improve the ability of the LSCOG region to attract and retain business activity and workers.
The following set of recommendations highlight the potential areas of focus that LSCOG can pursue to capitalize on existing and future growth trends.
A focus on advanced manufacturing and logistics
· Both sectors are likely to be among the primary industry segments that will drive growth for South Carolina’s economy over the next decade, meaning that the growth and development of business sectors that can support these larger industries throughout the state will be advantageous
· These sectors also maintain higher than average employment multiplier effects in the LSCOG region. This implies that an expansion of these industry sectors would generate a relatively higher employment return in the region for any given level of investment.
A focus on warehousing and distribution-based businesses
· The LSCOG region maintains competitive advantages in the general availability and cost of land, making any type of business with land-intensive operations more attracted to this region.
· Additionally, various modes of transportation – including proximity to the Port of Charleston and multiple interstate highway systems – make this region well-suited for these industries
A focus on aligning higher education and local employment opportunities
· Ensuring that education programs are available to prepare students for currently open jobs
· Coordination between LSCOG economic development and workforce development initiatives to ensure availability of educational programs and graduates that match industry needs
· Incorporate soft skills training into all existing higher education and workforce programs, as this is an identified area of concern of local businesses
A focus on assisting businesses with expanding referral networks
· Large scale, impersonal recruitment efforts are not cited by local businesses as the most effective tools for hiring workers.
· Most survey respondents believe the most effective hiring originates from word of mouth, personal referrals, and connections through individual social networks.
A focus on mitigating long-run demographic shifts, including an aging U.S. population
· Identifying opportunities to keep older residents in the labor force; this may include more flexible shifts and/or hours.
· Improving K-12 education performance as a strategy to attract younger workers and their families who may have previously left the region to pursue higher education, job opportunities, or military service.
A focus on incentivizing resident retention and recruitment
· Although there is a long history of providing incentives for business location and expansion, this strategy can also be applied to residents.
· Such a strategy could take the form of financial incentives targeted towards recruiting younger individuals to live and/or work in the region (e.g., assistance with student loan relief, housing down payments, etc.)
· Ensuring that post-pandemic working norms are generally available in the LSCOG region
- Widespread reliable broadband access
- Streamline and simplify the local requirements for starting a small business
- Determine the demand for communal work spaces to support new small businesses and remote workers
