Building the Future

Construction and Infrastructure in the Carolinas
Written by Robert Hoshowsky

The U.S. states of North Carolina and South Carolina have played pivotal roles since the colonial days. Bordering the Atlantic Ocean, both states have distinct yet complementary economic histories. South Carolina, initially known for cotton and other agricultural products, shifted toward textile manufacturing in the 20th century. North Carolina, the leading U.S. tobacco producer, benefited from similarly fertile soil and a favorable climate for agriculture.

In the 1920s, North Carolina diversified into furniture, textiles, chemicals, and manufacturing, and by the late 1990s, industries such as tourism, government, financial services, and handicrafts in the Blue Ridge and Piedmont regions gained prominence. Key agricultural products include poultry, hogs, peanuts, corn, soybeans, and potatoes, alongside fishing, mining, forestry, and manufacturing.

South Carolina, meanwhile, became a hub for nondurable goods manufacturing and is home to major U.S. military facilities like Shaw Air Force Base and the Marine Corps Recruit Depot at Parris Island. The state’s economy also includes tourism, mining, manufacturing, forestry, transportation, and fisheries.

Both states have evolved to embrace new industries such as aerospace, biotechnology, IT, and financial services, while maintaining their traditional sectors. As right-to-work states, they allow workers to choose whether to join labor unions, fostering flexible labor markets.

In both North Carolina and South Carolina, the construction sector remains a key economic driver. Earlier this year, The Mountaineer reported that North Carolina experienced an impressive 12.6 percent increase in construction employment, the tenth largest increase in the country. Much of the growth comes from the outgoing Biden-Harris administration and its commitment to restore and rebuild much of America’s aging infrastructure, such as roads, highways, and bridges. Combined with the Infrastructure Investment and Jobs Act, the Inflation Reduction Act of 2022, and the CHIPS and Science Act, federal funding for important infrastructure works totaled $552.8 billion as of June 2024.

In 2024, South Carolina saw several important works started or already underway. These include tech giant Google announcing construction of its Project Dawson data center campus. Partnering with the Dorchester County Economic Development Office, the Dorchester City Council voted to change zoning for the site at 1055 Research Center Drive earlier this year. According to media reports, Google intends to invest $510 million into the 231-acre site. At present, Google also operates a large data center campus in Moncks Corner.

With a combined investment of $3.3 billion USD, the move by Google will ultimately see the establishment of two new data center campuses in Dorchester County and the expansion of the existing Berkeley County data center campus. It is also believed that construction will create hundreds of new jobs, and 200 new operational positions will also be established.

At the time of the September announcement, South Carolina’s Governor Henry McMaster stated: “Google’s latest investment will strengthen South Carolina’s position as an emerging leader in technology and innovation. We are proud to support Google’s operations in Dorchester and Berkeley counties and look forward to the many opportunities our continued partnership will create for our people.”

The announcement also pleased others, including Secretary of Commerce Harry M. Lightsey III. “We are thrilled Google has once again chosen to invest in South Carolina by establishing two new data center campuses in our state and expanding existing operations,” stated Secretary Lightsey in a media release. “The company’s significant investment of $3.3 billion will greatly benefit the Dorchester and Berkeley communities and beyond for years to come.”

Dorchester County Council Chair Todd Friddle was quoted in Berkeley Means Business as saying, “We welcome Google’s historic investment in Dorchester County and the transformative economic opportunities it will bring. This project will have a lasting positive impact on our county, providing new jobs, elevating our schools, and enhancing the quality of life for our residents. Google’s proven track record of empowering local workforces and strengthening communities, including right here in the Lowcountry, makes them an invaluable partner for our region, and we are excited to work with them to build a brighter future for Dorchester County together.”

The ongoing commitment by Google in South Carolina signals the company’s commitment to expand operations in the state and speaks to America’s growing demand for cloud-based services and artificial intelligence (AI), both sectors on the rise.

Unfortunately, in both South Carolina and North Carolina, the construction industry still faces its biggest hurdle, a near-universal one, it seems—namely a lack of skilled labor. While large-scale projects in both states are positive signs, the industry trade association, Associated Builders and Contractors, states that the sector still needs to draw more than half a million workers to meet current demand, and addressing this skilled labor shortage will remain critical to sustaining the area’s momentum.

The Carolinas, thankfully, are increasingly attractive to a range of business sectors, both established and emerging. In recent years, the Department of Commerce issued its Strategic Economic Development Plan for the State of North Carolina: Goals, Strategies, and Tactics for the New Economic Landscape. A comprehensive, 19-page document, the Plan outlined critical areas in the realms of workforce recruitment, supporting local businesses and industries, and building vibrant communities, including decreasing childcare costs for working families and ensuring that North Carolinians possess high-quality post-secondary credentials.

Since 2018, North Carolina has seen more than 73,000 new jobs created and has attracted more than $19 billion USD in private business investment. In recent years, the state has also invested about $200 million into its rural communities, renovated buildings slated for re-use, extended public infrastructure to industrial sites, and revitalized entire neighborhoods. Not to be outdone, South Carolina is also experiencing considerable growth, with its gross state product (GSP) reaching an impressive $271.8 billion this year, with 2.7 percent growth over the five years prior to 2024.

In both North Carolina and South Carolina, the construction sector continues to play a pivotal role in driving economic development and shaping the region’s future. From high-profile infrastructure upgrades funded by federal initiatives to transformative projects like Google’s multi-billion-dollar investment, the construction industry is fostering innovation, creating jobs, and supporting the Carolinas’ status as hubs for technology, manufacturing, and economic growth. By investing in workforce development and fostering partnerships between government, educational institutions, and private enterprises, the Carolinas have an opportunity to solidify their leadership in construction and broader economic resilience, ensuring continued prosperity for the region.

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