contribution by David King, Central SC Alliance VP of Global Business Recruitment
Slow and steady was the pace for returning to the recruiting trail in 2021 for in-person meetings with corporations in the United States and Europe. Advancing a focused approach for our robust lead generation program became key to targeting companies with growth potential. We also continued to support virtual efforts with our partners in the Region and state to reach the global market.
While we are experiencing some of the same challenges one month into this new year, interest in the Central SC Region as an opportune destination for companies continues to grow. Here are some insights and observations for 2022 and beyond:
- Reshoring in manufacturing, which accelerated thanks to the pressures of the pandemic, will continue to accelerate due to lingering global supply chain issues. Supply chain resiliency will overtake the cost advantages of being on the other side of the ocean as companies look to meet demand.
- China's rising costs will drive investment as companies focus on sourcing locally and avoiding supply chain disruption.
- Nearshoring will become a buzzword as global companies adopt a policy of “build and source where you sell.”
- EV’s are on the rise. Volvo Cars realized a 60% increase last year over the year prior. Its factory in South Carolina is a great example of “build and source where you sell.” Both the new Polestar 3 and the next-generation XC90 will be built at Volvo’s plant that is located just 12 miles from the Central SC Region. The Region hopes to capitalize on supplier activity.
- The retreat from high costs states will continue – South Carolina ranks #2 in the nation for in-migration. Companies are on the move and the Central SC Region will benefit as West Coast companies look for lower cost options that push further to the East Coast.
- The demand for technology and life science jobs will soar to new levels.
- Companies are starting to require suppliers to have a sustainability strategy and have products with a defined percentage from recycled materials. In addition, the same requirements are being placed on green energy sources. Central SC is working with its utility and statewide partners to be well-positioned to meet these parameters.