Building bonanza a boost for Aiken

Business has been slow for the local branch of Gregory Electric, Inc. but with construction sites opening up all around Aiken County, Manager Roger Ward hopes that changes.Ward isn't the only one with the ambition to get a piece of a mini-construction boom that's happening throughout the area.

Signs all point to a busy year here in Aiken County with a growing list of new commercial construction or expansion, making 2012 a time of bright prospects for many local businesses and job seekers.

This influx in construction not only creates permanent jobs for residents, but many local businesses get a boost, whether they are working at the job site, feeding workers, supplying lodging or selling supplies.

Investments

Over the past three years, both the Aiken County and City of Aiken have seen an increase in commercial construction, whether it be a new structure or an addition to an already existing building. The result is millions of dollars being pumped into the area and a positive new trend of prosperity.

To put it in perspective, Aiken County saw $1.24 billion in announced capital investments in 2011, according to the S.C. Department of Commerce. Examples include construction for the new YMCA on Trolley Line Road which was completed in 2011, the building of the new Whiskey Road Cracker Barrel which started last August with the finishing touches made this January and the expansion project for Owens-Corning.

And, 2012 looks to be an exceptional year as well.

The city of Aiken will see a renovations to two Laurens Street downtown buildings, including the former Maxine's, which is being transformed into a corner cafe, and a large bank building that will be used for the Municipal Building expansion.

The county already has several commercial construction projects lined up for 2012, including Sam's Club, Bridgestone, the Bridgestone expansion, the SCE&G/Scana expansion, an addition at Pactiv, a few convenience stores and some other smaller-scale commercial projects, according to Denise Fincher, office manager of the codes division.

"This year is already booming," Fincher said. "We're very happy."

The economic impact these construction projects has on the community is the possible spike in business for anyone from the electrician to the restaurant owner.

Spending of household income earned by workers employed by these various projects will increase, said USC-Aiken School of Business Administration professor of Economics Dr. Sanela Porca. A trickle-down effect from their spending will help businesses hire additional workers who will spend a portion of their income in the Aiken area.

"The economic benefits gathered by the Aiken community are best measured in terms of the number of jobs created and the amount of personal income accruing to local residents," Porca said. "Furthermore, the economic impact of the announced capital investment can also be gauged by analyzing the effect of an average dollar in output on our local economy."

So, this construction boom brings more money-making opportunities for a variety of local entrepreneurs in a variety of ways.

Construction

Let's start with those who score jobs in the construction of these new facilities.

Several contractors of the these commercial projects, though located outside of the area or even the state, sometimes hire local businesses to do the work. Gerrits Construction, based in Florida, was involved in the Aurora Pavilion expansion which is now complete. David Gerrits, the company's president, said 85 percent of the people his company hired were from the Aiken or Augusta area with one contractor coming from Salisbury, N.C.

R.W. Allen and Associates of Augusta is currently working on the new Aiken SPCA facility located on Willow Run Road. Project Manager Jack Loyd said a good portion of their work comes from Augusta and some from Aiken.

"That's how we thrive," Loyd said. "We try to keep all of our jobs pretty much local."

The Morgan Construction Company of Tennessee recently finished the new CVS on Richland Avenue. It hired mostly from the Columbia area, according to Project Manager James Blevins. Because the downturn in the construction industry has been so severe, his company always go for the lowest bidder, he said.

The Aiken branch of Gregory Electric, which mostly does industrial work, has been the victim of the lowest bid concept. Ward said the company has vigorously tried to get the contract for some of these new construction jobs. At times, they miss the bid by just a few thousand dollars to groups typically outside the area or even the state, he said.

Not only is getting these jobs initially important to a business like Gregory Electric, but the commitment to doing work for these industrial facilities after they are up and running is just as valuable. It was hired at Pepperidge Farm when it was first built about two decades ago. Today, the firm is still doing business with the plant.

Gregory Electric, like many local businesses, hopes to feel the impact of the upcoming construction boom.

"I hate to see money go out of town when we need jobs here in Aiken," Ward said. "We're local, and we're more than qualified to do (the job.)"

Ripple effect

Retail, restaurants and hotels also are seeing benefits.

For example, though Morgan Construction didn't hire from this area for the CVS project, those who did work for them stayed in local hotels and enjoyed the various eateries around the city.

Laurie Archer, the assistant sales and marketing manager for the Super 8 Hotel on Whiskey Road, said there's been a spike in business from construction projects.

"We've definitely seen an increase, and it has helped us tremendously," Archer said. "We've had such a success with the contractors coming into Aiken. It's helping everybody."

What about the hardware stores? The project manager of the Aiken SPCA facility said most, if not all, of the materials used are from the Aiken-Augusta area.

The Aiken location of Maner Builders Supply Co. didn't see a huge boom in 2011, but officials there are hoping that changes this year.

"Two thousand eleven wasn't robust, but probably a few percentage points better," said Andy Avera, manager of the Aiken store. "Two thousand twelve has started a little more upbeat with several projects on the horizon. Business has been a little bit better; we anticipate a lift from upcoming projects such as Pactiv and Bridgestone."

Commercial Construction numbers from 2009 to 2010 (New buildings and renovations

City of Aiken

2009 40

2010 40

2011 51

Aiken County

2009 26

2010 40

2011 35

County Announced Capital Investment

Aiken $1.24 billion

Charleston $131 million

Greenwood $1.5 million

Lexinton $551 million

Richland $20 million

Spartanburg $146 million

Sumter $507 million

York $9 million

To go with the logos

Bridgestone

Where: Sage Mill Industrial Park, Graniteville

What: New 1.5-million-square-foot off-road radial tire plant, 700,000-square-foot expansion at existing plant

Cost: Roughly $1.2 billion capital investment

People: 1,000 at peak of construction

Why: Meet growing demand in key market segments, including ultra-high performance and light truck/SUV tires.

Pactiv

Where: Old Jackson Highway, Beech Island

What: 10,000-square-foot expansion and new production line

Cost: $5.5 million investment

People: Unknown

Why: Consolidate regional operations

Aiken SPCA

Where: Willow Run Road, Aiken

What: 17,000-square-foot adoption and regional spay and neuter clinic

Cost: $4.75 million

People: Average of 30 to 35 currently on site - no less than 20 at a time

Why: A need was seen by those residents who sponsored this new facility.

Cracker Barrel

Where: Whiskey Road, Aiken

What: 8,960-square-foot restaurant and retail store

Cost: Between $2.3 and $2.9 million

People: Unknown

Why: "We think Aiken is a vibrant area that is poised for growth," said Cracker Barrel Spokesperson Jeanne Ludington. "We feel that our type of family dining will complement the other successful restaurants that are already located nearby. We offer a great combination of real home-style food and shopping in an authentic old country retail store that offers unique gifts and self-indulgences."