SC Offers Lowest Manufacturing Cost in Lower 48

Study applies real-world factors to fictional factory

Roger Davis
July 28, 2017 - 6:13 pm
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A new study by a leading industrial development and site selection firm rates the cost of operating a typical manufacturing plant in the Palmetto State the lowest in the continental U.S.  The just-released study by the Princeton, New Jersey-based Boyd Company keys in on essential factors like taxes, real estate and utilities in additional to typical labor costs.  State to state comparisons are based on the fictional but realistic model of a 225,000 sq. ft. "advanced manufacturing plant" with 500 production workers. 

On that basis, operating costs averaged $30.1 million in South Carolina compared to close to $40 million in New Jersey.  South Carolina's annual labor costs also came in at around $26 million to New Jersey's $34 million.

South Carolina's annual property tax on the study model was $270,000 and sales tax on projected output totaled $600,000.  Although sales taxes ran about $100,000 a year less in North Carolina, the Tarheel State property tax tab was more than $120,000 a year higher.

The Greenville News quotes Boyd Company principal and son of the founder, John Boyd, Jr., telling a gathering of local business leaders the study, the first by the company which boasts industrial development clients like PepsiCo, J.P. Morgan Chase and Boeing, spotlights South Carolina as a serious industrial development contender, and just in time for the so-called "reshoring" of American industry, the Trump administration's push to shepherd U.S.-based companies away from the attractions of offshore operation.   

 

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