Foreign investment helps diversify county economy

The world is on to Spartanburg County.

An area once dependent on textiles is now home to 207 businesses and companies that are foreign-owned — a far cry from the 1980s and 1990s when only a handful of such companies were here.

Business leaders say Spartanburg and the Upstate as a whole are far ahead of many places in recognizing the globalized economy and capitalizing on it.

“The Upstate’s density of foreign-owned firms outranks that of the United States, the average of all metropolitan areas, and of South Carolina,” said John Lummus, president and CEO of Upstate SC Alliance, a public-private organization that markets the Upstate to the world. “Spartanburg County has among the highest foreign-direct investment densities within the Upstate.”

With plenty of available land, a ready workforce and an attractive quality of life, leaders see no end to the growth that has been trending upward the past few years. More importantly, the range of businesses investing in the county — from automotive and aerospace to agribusiness and health care — will help ensure a more stable economy, they say.

Diversification

Lumus and Spartanburg County Councilman David Britt said diversity is key to shielding the economy from the sharp ups and downs of any one industry, like textiles.

“I am a student of history, and we certainly do not want to repeat the history of 1900-1990 when it was only farming and textiles,” said Britt, who helped recruit BMW North America’s plant here 25 years ago. “(Today) if you travel Spartanburg County, there are only a handful — if that — of true farms and there is only one textile company still producing textiles.”

Carter Smith, executive vice president of the Economic Futures Group, said Spartanburg County today is better prepared than in the years when textiles fueled the economy.

“We’re continuing to diversify our economic base,” Smith said.

Many credit BMW’s success for spurring other companies to choose the Upstate over other regions and states.

“Take a look at our two shining examples of success, Michelin and BMW, and look at the jobs they have offered Spartanburg citizens — easily over 20,000 jobs when you include their supplier network,” said Britt, who is chairman of the council’s economic development committee. “Then you add the ripple effect they have had on quality of life.”

High interest

Last year, Upstate SC Alliance answered 777 requests for information from companies interested in either locating or expanding here.

American-owned companies still lead the list of those showing interest in the Upstate, followed by Canada, Germany, the United Kingdom, Spain, China and Italy.

Currently 15 of the top 40 manufacturing companies in Spartanburg County are foreign-owned, according to Upstate SC Alliance.

One of those is Japanese carbon fiber and textiles manufacturer Toray, which is investing $1 billion and will create 500 new jobs on 400 acres along Highway 290 in Moore.

Last year, 33 new companies and 34 existing companies invested a total of $1.9 billion and created 5,396 jobs in the Upstate.

Of the 67 projects, 28 were international companies — including the French company Michelin, which advanced a new $270 million, 3.3 million-square-foot distribution center on Highway 101 in southwest Spartanburg County that will create 350 new jobs.

Japan-based Kobelco Construction Machinery USA opened a $41 million construction excavator production facility last year on an 85-acre site at the Tyger River Industrial Park on Highway 290 in Moore. Kobelco chose Spartanburg over some 50 other sites in eight states because of its land availability and nearby access to major domestic ports. Kobelco has created 130 new jobs.

On the smaller end of the scale, German discount grocer Lidl is joining Aldi in competing for the discount grocery market in Spartanburg.

“We as a community have wrapped our arms around our foreign companies and made them feel at home here in Spartanburg by going beyond what would be expected,” Britt said.

Game changers

During the second half of the 20th century, the late textile magnate Roger Milliken knew that foreign companies could play a role in helping his textile and chemical manufacturing business grow, according to Jimmy Gibbs, president and CEO of Gibbs International, a global textile company based in Spartanburg.

“One of the underlying factors is due to Mr. Milliken and his desire to bring most of the European and overseas textile companies to Spartanburg,” Gibbs said.

Milliken also was instrumental in attracting BMW to Spartanburg County and led the growth of Greenville-Spartanburg International Airport.

Today, BMW has a supplier network of some 270 companies in North America, more than 40 of which are in South Carolina.

One of its Uptate suppliers is Gestamp North America of Union County, a German company that makes steel door hatches, hoods and fenders for BMWs. Last month, Gestamp announced plans for a $129 million expansion that will add 130 more workers to its existing workforce of 400 by next year.

Room to grow

Business leaders say it’s no surprise Spartanburg has attracted so many new companies. It has a pro-business agenda, good schools, access to several local colleges, an ample workforce, access to two major interstates, an inland port in Greer, a moderate climate and plenty of relatively affordable land.

“Our business is growing at a direct ratio to the new businesses here — simply more people are moving here,” said David Upshaw, industrial retail sales manager of Golf Cart Service in Roebuck. The business is planning a $1 million expansion at a new location by the end of summer.

But as interest in the county increases, so, too, do land prices. “What was once $15,000 an acre is now $75,000 an acre,” said Ben Hines of Spencer Hines Properties in Spartanburg

Britt said there is still plenty of available land for development in the Highway 290 and 101 areas of western Spartanburg County where Michelin is building its distribution center.

Geordy Johnson, president of Johnson Development Associates of Spartanburg, said there is also ample speculative industrial space in the Upstate that can be used for manufacturing and distribution needs.

“We always try to have one spec building in the market to try and encourage companies to locate and bring jobs to Spartanburg,” said Johnson. “We could use some additional Class A office space in downtown Spartanburg.”

He said as long as Spartanburg continues to show it is a welcoming place to do business, it should continue to enjoy growth from foreign companies.