Upstate employment shifts to hospitality, health, Clemson study shows

Published: November 15, 2011

COLUMBIA — Upstate South Carolina’s economy is shifting, and it appears to be heading in the right direction, a Clemson University study shows.

A study team led by David Hughes, a regional development economist at the Clemson Institute for Economic and Community Development at the university’s Sandhill Research and Education Center in Columbia, found that employment gains by industry cluster between 2000 and 2008 shifted from textiles and construction services to hospitality and health.

Job growth in key industry sectors in the Greenville-Spartanburg-Anderson economic area show hospitality establishments, health services, transportation and logistics and education leading the way.

Local hospitality establishments added the most jobs in the eight-year period with 9,224 jobs. Health services was second, creating 9,115 jobs.

Reflecting a statewide trend in recent decades, the textile and apparel industry saw the most jobs disappear with 37,351. Heavy construction services was next, shedding 10,960 jobs.

In terms of innovation, the Greenville economic area generated 111 patents per 10,000 workers. By comparison, peer cities Lexington, Ky., and Knoxville, Tenn., generated 130 and 94, respectively. Columbia generated 81 patents per 10,000 workers during the period.

The study shows the Greenville region enjoys healthy competition with its peer cities, Hughes said. Industry strength, an entrepreneurial environment and burgeoning innovative activity are all strong attributes for the region, he said.

“These data show the greater Greenville area has reinvented itself in recent years,” Hughes said. “The economic landscape across much of South Carolina has shifted dramatically during the last 50 years, and Greenville is no exception. “Nevertheless, the region remains healthy and an attractive place to do business.”

The Greenville Chamber of Commerce launched the Regional Economic Scorecard project in 2007 after officials noticed a long-term downward trend in per capita income relative to national trends. The Chamber contracted with researchers at Clemson to help the region better understand what contributes to strong income growth. 

The authors of the report identified four major drivers of per capita income and 11 peer communities with whom Greenville should compare in these areas. Click here to view the complete 2011 scorecard.

Hughes presented his findings at an Oct. 13 conference hosted by the Federal Reserve Bank of Richmond. The conference — Unleashing the Power of Local Data — showcased the best uses of data in local decision-making. The findings also were presented by Hank Hyatt, vice president for Economic Development for the Greenville chamber, and Fred Baus, president and chief executive officer of the University Center of Greenville.

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