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Study Finds BMW Manufacturing Has $8.8 Billion Impact in S.C.

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Company Also Exemplifies Sustainable Enterprise, Says Dean Hildy Teegen

Dr. Douglas Woodward presents study at press conference

BMW Manufacturing Co. has pumped more than $8.8 billion into South Carolina's economy, and for each job created at the company’s Upstate facility, 4.3 jobs are created throughout the state, according to a study released September 11 by the Moore School of Business at the University of South Carolina.

The economic impact study was conducted earlier this year using data on BMW’s activity in 2007. "The immense impact of BMW is felt across the Upstate and throughout South Carolina," said Dr. Douglas P. Woodward, professor of economics at the Moore School. Woodward and Dr. Paulo Guimarães, also an economics professor at Moore, conducted the study.

BMW opened the plant in Spartanburg County in 1994.

The study stresses that as BMW invests and creates jobs for South Carolinians, it also demonstrates how businesses can successfully address environmental challenges and model sustainable enterprise.

"Given our School’s new theme of Sustainable Enterprise and Development," said Moore School Dean Hildy Teegen, "I am often asked what we at the Moore School mean by 'sustainable.' BMW is a great example of a firm dedicated to sustainability. Like all companies, it depends on generating profit for its economic survival. But through its cutting-edge business practices and understanding of how to advance economic development in the markets where it participates, BMW has demonstrated that it is a responsible steward of the environment and benefits society at large."

(l to r) USC President Harris Pastides, Moore School Dean Hildy Teegen, Dr. Douglas Woodward, Bobby Hitt, Manager of Media and Public Affairs, BMW, and Max Metcalf, Section Manager of Government and Community Relations, BMW

The study focuses on 1) the total economic impact of investment, measuring the extent to which BMW provides employment and income for South Carolina residents, both directly and indirectly; 2) BMW’s influence on upgrading and enhancing the technological capabilities of South Carolina; and, 3) the lead role that BMW has taken as a sustainable enterprise.

Findings include:

• The total economic output associated with BMW’s annual economic activities is more than $8.8 billion in South Carolina. This broad measure of economic impact includes sales of goods and services to BMW and its employees from in-state vendors. --The employment "multiplier effect" – the ratio of total employment supported throughout the state to direct employment at the factory -- is 4.3. A typical employment multiplier for South Carolina’s industries or services "is closer to 2."
• The BMW plant in Spartanburg County generates $1.2 billion in wages and salaries annually and supports 23,050 jobs in the state of South Carolina.
• BMW’s net economic contribution (also called "value added") to the state’s economy in 2007 was $1.9 billion.
• In 2007, BMW produced 157,530 units, of which approximately 60 percent were exported. The majority of the exports use the Port of Charleston; the employment and income impact on the port is not included in the study’s assessment.-- BMW is heavily involved in advancing automotive research through its investment in the Clemson University International Center for Automotive Research (CU-ICAR), and has invested $10 million to support two endowed chairs at Clemson. Overall, BMW has caused $50 million to be invested at CU-ICAR. In addition, BMW has an information technology research center (ITRC) on the CU-ICAR campus.
• The BMW plant, which has created 5,400 full-time jobs at the Upstate facility, announced in March 2008 that it will spend $750 million on construction to upgrade the factory and enhance its facilities between 2007 and 2010. Directly and indirectly, the study said, this construction activity will support approximately 5,000 jobs, contribute $256 million to value added, and add $200 million to the state's labor income in 2008. The upgrade will help the Spartanburg County complex advance its effort to be a leading sustainable enterprise.
• The share of total South Carolina employment attributed to BMW's activities is 1.2 percent. Direct employment at the plant accounts for 2.2 percent of state manufacturing employment.

Dr. Douglas Woodward is interviewed by    TV crew at the end of the press conference

As the study shows, BMW surely has an "outsized impact on the state’s economy" due to its presence as a "high-wage, final producer with extensive ties to local suppliers," Woodward said.

Results of the study were presented at a press conference held September 11 at the Moore School.

Audio files of Event:  

Dr. Doug Woodward's presentation (MP3 audio) pdf of the study	Dr. Harris  Pastides' comments (MP3 audio)	Dean Hildy Teegen's comments (MP3 audio)

Gail Crouch
September 2008