Since 1994, 83 percent of the investments and 72 percent of the jobs have come from expansions of businesses already in operation.

Champion Roller in Rock Hill is one such company that decided to expand in South Carolina. Ron Steele, project manager of the company's $3.5 million expansion, said Champion discussed moving to another state.

"But there are some very big advantages to being in Rock Hill --work force and transportation are the most important," said Steele.

"We have a great work force. They show up for work and seem genuinely happy to have jobs. We've been able to find people with some related experience, and York Technical College in Rock Hill has been able to help us with some recruiting."

Tax credits of approximately $2,500 per new job for the next five years were included in the incentive package, which Steele valued at $250,000.

The state has numerous incentives for expanding and relocating businesses. The worker training program, called Special Schools, helps companies find qualified workers. The state will recruit, test and train potential employees, all at no cost to the company.

Other incentives include: a job tax credit ranging from $1,500 to $4,500 per job; a fee-in-lieu-of property taxes; and a job development credit.

Familiarity breeds success
In central South Carolina, Caterpillar Inc. was so pleased with its current facility in Sumter that it awarded the city another division's project. Caterpillar's 210,000 square foot precision pin operation celebrated its grand opening last October. In December, executives announced plans to open a hydraulic cylinder plant down the road.

"The precision pin project has been a very positive experience," said Ed Hubbard, facility manager for Caterpillar.

"Sumter and South Carolina had a lot of the same financial incentives others had, but we took a look at the total package, how we were going to get people trained, how the county handled things, how the city and county governments work together. From a total package standpoint, we felt very comfortable."

Training programs, work force availability, access to highways, the support services of surrounding businesses, and infrastructure influenced Caterpillar's decision.

"If any one of those was missing, it wouldn't have worked," said Hubbard.

International growth
Foreign investors are also expanding throughout South Carolina. BMW and Fuji Film are two of the most prominent recent projects. However, low-profile, foreign companies are also calling South Carolina's small communities home.

In Newberry, a town of 12,000, Korean, Italian and English businesses all have invested in the town.

"There is a lot of interest by local officials in helping find what you need to get a project going when you need it," said Wayne Boozer, operations manager for McKechnie Vehicle Components in Newberry.

Last year McKechnie, PLC, the United Kingdom-based parent of McKechnie Vehicle Components, decided to open its first fluid handling division in the United States. Corporate executives considered expanding at the company's other U.S. locations, but decided on South Carolina.

In August, McKechnie broke ground on a 20,000 square foot building next to the Newberry facility to house the fluid handling division. Total investment will be $3 million to $4 million when production begins this spring.

To secure the project, the state developed an incentive package of property tax abatements and reimbursement for training expenses.

"The availability of qualified workers and existing company-owned property added to the appeal of the Newberry site," said Boozer.

Charleston has also received foreign investment. Western Star Trucks, a truck maker based in British Columbia, announced it will build a 330,000 square foot manufacturing plant in the Palmetto Commerce Park. The $25 million facility will employ 200 workers when opened in the fall of 1999, with 200 more added in the next several years.

"Charleston is an ideal location for us and will play a large role in Western Star's continued prosperity by locating our company closer to key suppliers and our existing customer base," said Robert Enright, president of Western Star Trucks.