South Carolina Economy: Auto Manufacturing and Tourism

South Carolina is a mid-sized state economy that has been one of the faster-growing in the country, usually ranked in the upper-middle of states by GDP growth — the dollar value of everything a place makes and sells in a year. The South Carolina economy is increasingly defined by foreign auto manufacturing, aerospace, and a deep tourism base on the coast.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the South Carolina economy?

For example, recent state GDP for South Carolina has run around $300 billion, according to the Bureau of Economic Analysis. Population is roughly 5.4 million, per the U.S. Census Bureau. The Charleston, Greenville-Spartanburg, and Columbia metros anchor the state's three main economic regions.

The biggest industries

South Carolina has an industry mix that is more manufacturing-heavy than most Southern states. The main pillars are:

• Auto manufacturing — BMW's largest plant in the world is in Spartanburg, exporting more cars than any other U.S. plant; Volvo and Mercedes-Benz Vans also build in the state.
• Aerospace — Boeing builds the 787 Dreamliner in North Charleston, supporting a deep aerospace supplier base.
• Tourism — Myrtle Beach, Hilton Head, and Charleston draw tens of millions of visitors a year and support a meaningful service economy.
• Tire manufacturing — South Carolina is the largest tire-producing state in the country, with Michelin, Bridgestone, Continental, and Giti all operating major plants.
• Logistics — the Port of Charleston is one of the fastest-growing container ports in the United States.
• Agriculture — peaches, cotton, soybeans, and poultry are the largest farm products.

Jobs and wages

South Carolina labor data is published by the South Carolina Department of Employment and Workforce, with national-level numbers from the Bureau of Labor Statistics. For example, the South Carolina unemployment rate has typically run close to or just above the national average, with Charleston usually the tightest labor market in the state.

The South Carolina minimum wage is tied to the federal floor of $7.25 per hour. Many large South Carolina employers — especially the auto and aerospace plants — pay well above that on their own.

Taxes in South Carolina

South Carolina has a graduated state income tax with several brackets and modest top rates. Recent reforms have flattened the structure somewhat.

The state sales tax rate is 6%, with most counties adding a 1-2% local rate, bringing the combined rate to 7-8% in most of the state. Groceries are not taxed at the state rate. State tax forms and rules live at the South Carolina Department of Revenue. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in South Carolina is typically below the national average. Charleston has been catching up fast as the metro grows; Columbia and Greenville remain affordable. The federal government tracks region-specific Consumer Price Index data through the BLS Southeast region, and HUD publishes Fair Market Rents for every county at HUD User.

The foreign-investment story

South Carolina has attracted more foreign direct investment per capita than almost any other state, especially from German, Japanese, and Swedish manufacturers. The combination of a deep automotive supplier base, the Port of Charleston, and right-to-work laws has been the main draw.

The coastal tourism economy

Tourism is a much larger share of South Carolina's economy than of most states. Myrtle Beach is one of the busiest beach destinations on the East Coast, drawing tens of millions of visitors a year. Hilton Head and the surrounding Lowcountry attract a wealthier mix of golf, resort, and second-home travelers. Charleston has become a top food and historic-tourism destination in its own right. Together, these coastal areas support hundreds of thousands of service-sector jobs and a meaningful share of state and local tax revenue.

The Upstate manufacturing belt

The "Upstate" region around Greenville and Spartanburg has quietly become one of the densest manufacturing corridors in the United States. Driving Interstate 85 between Charlotte and Atlanta, you pass dozens of major plants making cars, tires, machinery, and chemicals. The Upstate's combination of low costs, a trained workforce, and access to the Port of Charleston has been the main reason BMW and so many of its suppliers chose the area.

How does the South Carolina economy fit into the national picture?

South Carolina is one of the most export-intensive states in the country, with cars, aircraft, and tires shipped worldwide from its ports. Population growth is well above the national average and concentrated in the coastal counties and the Greenville-Spartanburg area.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the South Carolina Department of Revenue for the most current data.