Airports’ Economic Impact Is Quantified
Commercial airports are significant economic engines for states and the communities and regions they serve. The SC Aeronautics Commission (SCAC) and the SC Council on Competitiveness (SC Competes) recently decided to quantify just how significant. They jointly commissioned research economist Dr. Joseph Von Nessen to study the economic impact of South Carolina’s six publicly owned commercial service airports. His report, “Economic Impact of South Carolina’s Commercial Airports: 2025,” shows that the six airports combined generate $22.5 billion in annual economic impact.
That’s very significant. What’s more, the airports serving Charleston, Columbia, Florence, Greenville-Spartanburg, Hilton Head Island and Myrtle Beach combined support overall employment of more than 130,000 workers and $6.8 billion in total labor income.
The methodology explains that the report quantifies “the impact of each airport’s operations, tenants, and capital expenditures, as well as all economic activity that results from new spending introduced to the state from visitor travel and business activity that depends on access to these commercial airports for cargo shipments.” For each airport it details the economic impact of airport operations and economic impact of airport tenants of their regions in terms of direct effect, multiplier effect and total impact.
“This study underscores the indispensable role our commercial airports play in South Carolina’s economic success,” said Gary Siegfried, executive director of the SC Aeronautics Commission, at the report’s release in late January. “From facilitating business operations to supporting tourism, advanced manufacturing and emergency response, these airports are vital to our state’s prosperity and competitiveness.”
“From facilitating business operations to supporting tourism, advanced manufacturing and emergency response, these airports are vital to our state’s prosperity and competitiveness.”
— Gary Siegfried, Executive Director, SC Aeronautics Commission
Supersonic Employment Growth
Dr. Von Nessen also produced an economic impact study in December for SC Competes and the South Carolina Technology & Aviation Center (SCTAC) in Greenville, where Lockheed Martin builds its F-16 fighter jets. It found that SCTAC has a $6.1 billion annual economic impact on the state of South Carolina, the bulk of which — $5.9 billion — is concentrated in the Upstate region.
“Many outstanding factors have contributed to the exponential growth of SCTAC’s economic impact, such as F-16 production and sustainment at Lockheed Martin and the addition of a world-class automotive proving ground on our campus,” said SCTAC President and CEO Jody Bryson in an SC Competes release. “These and many other significant achievements at SCTAC are the byproduct of strong alliances we have forged with local, state and federal elected officials and economic development organizations, such as the SC Dept of Commerce, SC Manufacturers Alliance, Upstate SC Alliance, GADC (Greenville Area Development Commission), Greenville City EDC and SC Competes.”
Since 2010, total employment in South Carolina’s advanced manufacturing cluster has more than doubled (+103.5%), which compares to a growth rate of +27.6% for South Carolina as a whole, according to SC Competes. The study found that SCTAC supports approximately 17,873 jobs in the Upstate along with more than $1.3 billion in labor income annually.
Boeing announced plans in December to invest $1 billion in infrastructure upgrades at its site in Charleston County and create 500 new jobs over the next five years. Boeing South Carolina assembles the 787 Dreamliner at its facility at Charleston International Airport.
Image courtesy of Boeing
