Boeing could lead state's rebound, economist says

Boeing's commitment to North Charleston could kick- start economic recovery in South Carolina, a leading economist said Wednesday.

And it could buff up the state's tarnished national image after being the butt of jokes for months because of Gov. Mark Sanford's affair and U.S. Rep. Joe Wilson's outburst.

"If Mark Sanford goes off to Argentina, people might laugh at us," USC economist Doug Woodward said. "But what they are seeing now is what's important. It's going to be a story that resonates for decades, rather than the political stories that have been circulating recently."

Woodward called the Chicago-based aircraft maker's decision to locate a second assembly line in North Charleston "comparable to BMW" -- the 1992 announcement that the German auto maker was coming to the Upstate.

"This is going to change perceptions" of South Carolina, he said. "People will view us as a place where the economic recovery is taking hold."

Woodward added that because the Boeing brand is so recognizable worldwide, it will boost the state's efforts to recruit other industries.

"It's a momentous announcement in that regard," he said. "Boeing and BMW say one thing: Quality. There is something different about them because people recognize the brands. It's going to put South Carolina on the map."

Although the estimated 3,800 or more jobs will be located in the Lowcountry, officials predicted that the benefits will ripple throughout the state.

Not only will the state's coffers swell from an increase in income, property and sales tax revenues, but business could flow to South Carolina aerospace suppliers.

"This kind of thing has a significant multiplier," said Lewis Gossett, president and CEO of the S.C. Manufacturers Alliance. "There will be hundreds and thousands more jobs in the supply chain. But, what you will probably see with Boeing, like BMW, is it will take time to fully realize that."

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 September 2008 study by USC's Moore School of Business.

U.S. Sen. Lindsey Graham called the Boeing investment "BMW on steroids."

By comparison, the state offered Boeing its biggest economic incentives deal ever, coming in with a $450 million price tag. Projections show the state will receive much more in return, according to legislators.

South Carolina offered BMW nearly $160 million in incentives, an economic prize secured in 1992, according to published reports. The package included money to buy land for the plant and pay for site work, provide tax credits and money for work force training.

Yvonne Wenger contributed to this report.