What is the “Competitiveness Agenda”? The top items South Carolina’s business community takes to our policy makers as the issues that need to be addressed in the upcoming legislative year. Items should affect all types of businesses and/or businesses across the entire state.

2018 Competitiveness Agenda Process September 1st – October 19th: Chamber Alliance Grassroots Tour: 19 stops across SC with our Local Chamber Partners. October 20th – November 3rd: Survey of State Chamber Membership. November 16th: State Chamber Legislative Affairs Task Force review & adopt recommendations. December 4th & 5th: State Chamber Board vetting and approval. January : Rollout

Looking Back: 2017 Competitiveness Agenda Finish the Job on Roads  Fill the Workforce Pipeline  Cut the Red Tape on Business Licensing 

Thank them. Doing the job for jobs.

We Are Here Today for Your Thoughts As a businessperson, what keeps you up at night? What is the greatest challenge to doing business today? What issues do you hope to see the Chamber tackle in 2018?

Carolina or Clemson? Carolina Clemson Other

What industry do you work in? Retail Healthcare Manufacturer All Other- utility, real estate, legal, etc… Government, Education or Nonprofit

Is finding the needed workforce an issue affecting you and your company? (click all that apply) Yes. Not enough people Yes. Not enough skills Yes. Retirements looming No. Not a problem

Workforce Skills Gap: 45% of available jobs require certification that only 29% of workers possess Sector Strategies (areas of significant expected growth): Healthcare, Business & IT, Transportation, Distribution & Logistics, Manufacturing, and Construction Soft Skills Essentials: on-time, drug screens

Are taxes an issue affecting you and your company Are taxes an issue affecting you and your company? (click all that apply) Yes. Property Taxes Yes. Income Taxes Yes. Business License Taxes No. Not a problem

Taxes SC Taxes (compared to other states) Commercial Property: 8th highest Industrial Property: Highest in US Corporate Income: 16th lowest 7% Income Tax Rate: 41st highest Sales Tax: 19th lowest Overall Tax Climate: 36th worst (Tax Foundation, 2016) 42nd worst (ALEC – Laffer State Economic Competitiveness Index)

Taxes cont. Taxes on SC Business: Business property tax collections have increased 60% ($1.2B) since Act 388 was implemented in 2007 By contrast, homeowners’ property taxes have increased only 20% in that same time (state population has increased 300,000 since 2007) 47.1% of all SC state and local taxes are paid by businesses

Are regulations an issue affecting you and your company Are regulations an issue affecting you and your company? (click all that apply) Yes. Municipal Yes. County Yes. State Yes. Federal No. Not a problem.

Regulations DHEC permits take an avg. of 120 days to secure City zoning and construction permits EPA rule on Waters of the US (WOTUS) gave the federal government authority over small lakes, ponds, streams, H-2A and H-2B Visas to meet temporary needs of hospitality and agriculture industries

Are South Carolina’s legal climate and systems issues affecting you and your company? (click all that apply) Workers Compensation Costs Unfair Judges Tort Reform No. Not a problem.

Legal Climate and Systems SC overall ranks 34th out of 50 in overall legal climate (up 2 spots from 36th in 2016) Judicial impartiality ranked 36th Unfavorable discovery and evidentiary rules (39th and 40th, respectively) Workers Compensation Lawsuit lending expanding in SC

Are energy costs an issue affecting you and your company? Yes No

Energy Commercial rate per kWh is higher than every SE state except Alabama Residential rate per kWh is highest of 12 SE states – 28 cents higher than all others Industrial rate per kWh is slightly more competitive – 5th highest in SE

Are healthcare costs an issue affecting you and your company? Yes. Costs to employees have gone up. Yes. Costs to employer has gone up. Yes. Employer stopped offering coverage. No. Not a problem.

Healthcare According the Federal HHS, individual insurance premiums have doubled since 2013 Employer-based premiums have increased 20% in the last 5 years Deductibles rose 12% year-to-year based upon the most recent data

Do you worry about the impact the state and federal government’s fiscal health could have on you and your business? (click all that apply) Yes. State. Yes. Federal. No. Do not worry.

Government Fiscal Health State pension system in recent years paid out $3 billion while only generating $2 billion While the State maintains a AAA Credit Rating, both state and local government debt per capita is 20th highest in the nation at $8,597 Federal debt is currently 77% of the nation’s GDP 2017 interest payments on the national debt is $269 billion – or 7% of the federal budget Local government debt and debt service has increased 6.7% annually since 2008 – a total of $1.75 billion

Which is the biggest issue to you? Workforce Regulations Healthcare costs

Which is the biggest issue to you? Legal Climate Energy Costs Government’s Fiscal Health Taxes

What issues are you facing? (Open Discussion)

THANK YOU!