Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Strong Economic Growth: Ranked 10th in the nation for economy, buoyed by strong GDP growth (outpacing many states in Q1 2025) and a robust export profile. Workforce and Training: Ranks 12th for workforce with well-regarded, state-supported technical training programs (e.g., readySC).

High Cost of Business: Ranks low for "Cost of Doing Business" (28th in 2025), partly due to a comparatively high individual income tax rate and complex regulations for small businesses.

Tax Modernization: Efforts are underway to reduce business tax burdens, modernize the tax code, and lower individual income tax to be more competitive with neighboring states.

Slipping Infrastructure/Capital: Declining rankings in key areas like Infrastructure (21st) and poor access to capital for entrepreneurs (30th), which may slow growth.

Domestic Manufacturing

Global Manufacturing Hub: A cornerstone of the economy, valued at nearly $200 billion annually, with a high concentration in high-value sectors: Automotive (e.g., BMW), Aerospace (e.g., Boeing), and Tire manufacturing.

Talent Pipeline Demand: High demand for a skilled workforce in advanced manufacturing, requiring continuous and aggressive investment in technical education to keep pace with industry growth.

Electric Vehicle (EV) Transition: Massive announced investments (over $9.7 billion since 2022) are establishing the state as a major center for EV and battery production, securing future industrial relevance.

Sector Concentration Risk: Heavy reliance on the automotive and aerospace industries makes the state's economy vulnerable to specific market cycles or shifts within these global sectors.

Sustainability Initiatives

Integrated Strategy: Strong partnership between commerce and conservation (Sustain SC) to integrate sustainability into economic development and transition to 21st-century green industries.

Water Resource Strain: Increasing industrial and population demand necessitates a new state water plan to balance economic growth and long-term protection of water resources.

Circular Economy Focus: Active programs to promote a circular economy (reducing waste, promoting recycling) and B2B supplier matchmaker events focused on sustainable supply chains.

Energy Reliability/Cost: The need to adopt an "all-of-the-above" energy strategy and pass permitting reform to ensure affordable, reliable power for energy-intensive manufacturing operations.

Balance of Trade

Major US Exporter: 17th largest state exporter of goods, with exports totaling over $45 billion annually, with trade supporting an estimated 580,000 jobs. Foreign Direct Investment (FDI): High level of foreign-controlled employment (nearly 185,000 jobs), showing deep global integration.

Trade Policy Vulnerability: Significant exports to countries subject to US reciprocal tariffs (e.g., China, Germany, Canada), making the state highly exposed to international trade disputes.

Port and Logistics Expansion: Leveraging its coastal location and port system to capitalize on global logistics shifts and increase its role as a key gateway for US-European/Asian trade.

Macro-Economic Headwinds: A slowing global economy and continued volatility in trade tariffs could negatively impact demand for its major high-value exports like vehicles and machinery.