Aiken construction boom trickles through economy

Grateful for the opportunity: Jimmy Stanley works with sheet rock, part of the renovation at the former Maxine’s. Haley Hughes

It's a simple premise: Construction brings jobs and people to work those jobs. Those workers spend money, which boosts the local economy.

Cracker Barrel, Sam's Club, Bridgestone Americas' existing plant expansion and its new 1.5-million-square-foot plant, the new Aiken County Office Complex, the Pactiv expansion and several other projects in Aiken County require contractors and subcontractors, equipment operators, plumbers, carpenters, and other tradesmen to make construction happen.

With those tradesmen, especially if they're not local, comes the demand for lodging and housing, food, gas and more. More money is funneled into Aiken County, and, historically, when demand for goods and commodities increases, more jobs are created to keep pace.

Community leaders have predicted the recent influx of construction, even those projects that have yet to break ground, will be a boost locally.

"In economic development, we say for every one job in manufacturing, that creates two to three secondary jobs whether it be at a restaurant or grocery store," said Will Williams, executive director of the Aiken-Edgefield Economic Development Partnership.

Williams worked closely on the local and state level to pave the way for Bridgestone. He has predicted that a "significant" economic impact will begin to unfold in the next several months, and especially over the next two years while construction is ongoing from that project alone.

"Bridgestone's announcement last year equaled 25 percent of total capital investment in the state. Aiken has historically been in the top 10 in the state for capital investment," he said. "I can't predict the future ... but, things have been going well. We have been diligent about going after industry that weathers recession well."

Bridgestone Americas spokeswoman Elizabeth Lewis said approximately 1,000 contractors and subcontractors will be working on site at the peak of construction.

That's potentially 1,000 new customers for Red Shed Produce on Ascauga Lake Road in Graniteville, not far from Sage Mill Industrial Park where Bridgestone is located.

"We've already seen an increase. A lot of them are construction workers," said Red Shed co-owner Geri Gunter. "It's filling up. Everyday I see someone new."

While ground has been broken on both Bridgestone's expansion and new plant, construction hasn't hit its peak yet.

"Once it hits our area, it's really going to be good. It's a domino effect, actually," Gunter said.

WalMart/Sam's Club spokesman Glen Wilkins said as soon as the company gets its permits, it will hit the ground running.

"We will bring 150 to 175 new jobs, not the mention the construction jobs," Wilkins said. "Our suppliers will get more business and our vendors - Coca-Cola and Purina, for instance - will have to add more routes and may have to hire more workers. We'll be paying property taxes, too, and that is money that may have gone to Augusta."

Sizemore Inc., which provides security, janitorial and staffing services in the area, realizes that the impact of new business and industry is far reaching, according to President and CEO Preston Sizemore. Sizemore Inc. has been tapped to provides services for projects and companies like MTU Detroit Diesel, Plant Vogtle and the TEE Center in Augusta.

"We provide services directly, but also to support companies. It is a trickle-down effect. We love to hear about new business," Sizemore said. "They bring new people to the community, but also their families, and we can hire someone who is not native to the area who needs a job."

South Carolina's unemployment rate fell to 9.5 percent in December 2011, according to the S.C. Department of Employment and Workforce, the last month numbers were available.

This marked the fourth consecutive monthly rate drop and is down 1.6 percent from last year's high of 11.1 percent in August. It is the lowest rate since December 2008 when unemployment stood at 9.2 percent. The number of employed people grew by roughly 4,300, and the number of unemployed fell by 7,534. The labor force level was 2,162,094 in December.

Manufacturing has increased 11,600 from last year.

Aiken County's unemployment rate in December was 8.5 percent.

"We are setting an example. We are still below the state unemployment rate, but 8.5 percent is still too high," said Aiken County Council Chairman Ronnie Young. "Aiken County has done a marvelous job at creating jobs. We had a banner year last year. We'll do what we can (to top last year)."

Ground is expected to be broken on the new County Complex in a few months, and Council set forth some guidelines last year for the workers that will be hired to build the new offices.

"I think we had given them a goal - 60 to 70 percent local workers, if possible. It gives people a job that they may not have had otherwise," said Councilwoman Kathy Rawls. "I believe the work will be better quality because local people have a vested interest. They want their County Complex to look good, and with local people, they don't have to travel around and we may get a better price.

"We need jobs. We (Aiken County) have a record of supporting business or industry that want to relocate here. We keep a good relationship with those companies and when they want to expand, we have a better than average shot at keeping them here," Rawls said.

Danny Mullis with KBR Building Group, construction manager at risk for the new Complex, said projects of this size typically have on site on any given day between 100 and 175 workers. Construction is anticipated to last roughly 17 months.

But, numbers are hard to pin down "because of the transiency of the workers," he said. However, these workers "rent hotel space, eat out at restaurants and spend money. We can't always hire local subcontractors because they may not have the expertise needed, but wherever they come from, they'll help out the local economy."

The McDonald's on York Street stands to benefit from the laborers who work on the Complex as the two are just more than 1 mile apart. The McDonald's on Richland Avenue stands to benefit from Sam's Club as the two are less than 1 mile apart.

"Aiken has been very good for new business. Any type of business like Sam's Club will bring people from Barnwell, Bamberg, Blackville, where people don't have stuff like that there. Aiken is very blessed," said Pam Powers, co-owner of McDonald's of Aiken.

Charlie Hartz, owner of the Dunkin Donuts on Whiskey Road and Richland Avenue, said he has spoken with fellow business owners in the area and many are eagerly awaiting Sam's Club.

"We hope there is going to be a small impact from the construction folks, but an even bigger impact when Sam's opens. I read in the paper they'll get 5,000 to 7,000 car trips a day, and we'll get a percentage of that. That means more business for me, so maybe I'll be able to hire more workers. Everybody is thinking this will be a real shot in the arm," Hartz said.

Jimmy Stanley

Sheet rock

Former Maxine's

"This is probably the first thing I've had in two months. My next job is in Augusta, but I don't mind the drive because it's work. When people get a job with Bridgestone, they'll be buying houses, and hopefully that means more work for me."

Devin Hodson

Electrician

Aiken SPCA

"Work has been pretty steady for us for three years, but it hasn't been as wide open as in the past."

Logan Geist

Assistant Superintendent with Allen + Batchelor Construction

Village at Woodside Health and Wellness Center

"I was in Florida with the housing boom, then it died out so I went somewhere else. We've done a number of jobs in South Carolina, dentist offices, churches. Our work is predominantly in Augusta. It was a little busier two years ago. Our suppliers, it helps them (when we are working on a job and buy from them), and there will be a number of rentable tenants in this center so that's more people that have jobs."