Dr. Yandle to Provide Insight on South Carolina’s Construction Industry
Construction activity in South Carolina continues at a brisk pace. But what does the future hold for construction activity in the Palmetto State?
“If you thought 2017 felt like it was a good year, then you ought to feel pretty good about 2018 and 2019,” said Dr. Bruce Yandle, an economist with George Mason University, and professor of economics emeritus at Clemson University. Yandle will be the featured speaker at the upcoming Salute to the Design and Construction Industry Event being held on May 3, 2018.
The annual event will be held Thursday, May 3, 2018 from 5:30 to 7:30 pm at The Champions Club at Fluor Field in Greenville, S.C. BB&T Construction Risk Services, Elliott Davis and Elmore Goldsmith are the sponsors of this year’s event.
The GroundBreak Carolinas staff caught up with Dr. Yandle to preview some of his thoughts and insight that he will share on May 3.
“The Upstate is the strongest part of the state, and South Carolina is the brightest spot east of the Mississippi in terms of growth and prosperity,” he said. Yandle expects construction activity to be solid for the remainder of 2018 and into 2019.
According to Yandle, two things could impact future construction growth – the lack of skilled labor and an increase in input prices.
“The serious scarcity of skilled labor is a concern. We seem to be hitting the bottom of the barrel and we are seeing an increase in wages, particularly in South Carolina,” he said. “South Carolina labor has increased 7 percent in wages for construction.” Many Upstate construction firms report a challenge in finding skilled labor.
In addition, steel and labor price increases may impact construction projects in South Carolina. “The Producer Price Index (PPI) has risen 4.4 percent,” said Yandle. Prices for inputs to construction materials are 5.8 percent higher than at the same time one year ago, according to an Associated Builders and Contractors (ABC) analysis of recently released U.S. Bureau of Labor Statistics data. The increase in cost will have an impact on projects. In fact, the Associated General Contractors (AGC) says the increase in costs and potential tariffs could lead to project delays and even cancellations.
The uncertainty is causing some concern in the Upstate design and construction community, particularly when it comes to trade. “Nationally, we are at a crossroads,” he noted. “There is uncertainty – a heavy dose of it – related to the national trade policy.” The possible renegotiation of NAFTA, along with the recent trade disputes with China could have a significant impact on the South Carolina economy.
“South Carolina’s economy is tied to foreign markets more than other states,” Yandle said. The South Carolina automotive industry has an extensive supply chain in Mexico and BMW exports a significant number of cars to China. “Both of these could have a strong impact on the economy in South Carolina.”
According to the South Carolina Department of Commerce, in 2016, the most recent year that numbers are available, $31.3 billion worth of goods were exported from South Carolina to 195 destinations.
If you are interested in hearing more from Dr. Yandle and connecting with key leaders from the design and construction community, please respond to Smoak Public Relations: 864.235.8330 or RSVP@smoakPR.com.
