Midlands Business Profiles

MidlandsBiz: How has economic development strategy changed over the past decade?  How will it change over the next 10 years?

Burnie Maybank: We are still heavily focused on manufacturing in South Carolina – it remains the bread and butter of economic development in the State. This is especially true in certain economic clusters, like automotive, which bring us a lot of value. We're seeing the decline in the dollar increasing foreign interest in building U.S. facilities, too; that suggests international manufacturing firms will come here and stay here. One thing that has changed is how we get projects. In the past, trade missions were a key tactic. We're seeing more and more come through site selection consultants and local development networks. I expect that to continue.

MidlandsBiz: How has the role of the law firms such as Nexsen Pruet changed in promoting economic development in a knowledge-based economy?

Burnie Maybank: Manufacturing firms have shortened their time frames for site selection and gone very high-tech, which has accelerated decision and ramp-up times. So it's becoming more and more important to bring in a law firm earlier. Then there are other considerations that law firms with unique experience can undertake more effectively – incentives, due diligence, environmentally permitting, etc. Given the expense of locating, relocating, or expanding, companies also want a lot of "local intelligence" before making the go/no-go decision; law firms can provide that. And, of course, corporate America is getting "slimmer," which translates to greater reliance on outside counsel.

MidlandsBiz: How do you evaluate economic development incentives? From government's perspective, what are some examples of good economic incentives? What are some examples of bad economic incentives?

Burnie Maybank: You look at it in two ways. First, in terms of the hard dollars for public infrastructure – an interstate exit for a manufacturing plant, for example, or a rail spur. Second, in terms of tax incentives, and the extent to which companies can use them. Not everyone has a huge tax liability, so tax breaks may not be an advantage. A good example is providing an incentive that offsets our high property taxes, which has the effect of leveling the playing field with competitor states. A bad example is just giving away money to a company that doesn't need it or was planning to come here anyway.

MidlandsBiz: Is South Carolina doing a good job in economic development?  How well do regional economic development organizations?

Burnie Maybank: Yes, but the state has fallen behind on "mega-projects." The good news, though, is that we don't overpay for big investments. Regionally, I think we're doing very well considering that the Department of Commerce is much smaller than it has been in recent years. One thing we're dealing with, and will have to continue to deal with, is an increasing anti-growth sentiment. There is also the matter of land costs – which are increasing in the Lowcountry and the Upstate.  Many acres of the state no longer have large sites with existing infrastructure available which are needed for mega projects. That affects the cost of doing business.

Burnie Maybank is a former Director of the SC Department of Revenue (DOR).