The economic outlook for the Lowcountry

“Now is the best time to invest in our future.”

It’s all good and fine to declare that the recession is over (if you missed my June column, you can find it at www.hiltonheadmonthly.com) or to tell the president of the United States that he should make energy independence the No. 1 priority ( July issue). But for most of us, these more generalized topics have very little immediate impact on our daily lives; after all, we own property in the Lowcountry and we do business right here. Therefore, this month’s focus is on our home turf.

No official agency or the chamber would admit what business owners in Southern Beaufort County know: This area has been hit very hard by the recession! In order to understand that, we first have to come to the realization that the general media usually reports nationwide numbers in terms of GDP, unemployment etc. The reality, however, is that the recession has affected various regions very differently. Some regions have fared relatively well, while others have been impacted severely. Second, we need to take into consideration that tourism, real estate and construction are the three leading economic forces driving our local economy.

The sudden and steep eradication of wealth driven by lower home values and lower equity markets have put a temporary halt to our real estate boom. (The total number of real estate transactions are about 50 percent compared to a “normalized” year). The high unemployment rate nationwide has created job insecurity. Combine these two factors and it is easy to understand why the total number of visitors and the amount of money spent per visitor are down this year.

This is today’s reality, but what about the outlook for the future?

There are some issues this region has to work through, but none of them are by themselves very deep or significant enough to hold us back from making a swift recovery as the nation’s economic picture starts to brighten. As a matter of fact, I would go so far as to say that if you have the resources to invest in the Lowcountry (in real property or a business interest) this would be a good time to do so.

I firmly believe the long-term outlook for this region shows there will be prosperity. I’m basing this on the following observations:

General trend
Nothing will stop the north-south migration pattern established over the last few decades. While baby boomers are less wealthy now, their end goal to retire here has not lessened. It is also noteworthy that Florida is now one of the top states from which families move to South Carolina. That’s not surprising given how crowded things have gotten down there.

Geographic location
The area from Myrtle Beach to Vero Beach provides a temperate climate which allows yearround outdoor recreation and an abundance of green vegetation. Those are two things that make the Lowcountry among the prettiest places in the country to live. (A recent trip down the coastline from Rhode Island to Hilton Head on U.S. 17 has made me aware again of how special this area is).

Infrastructure
About the only thing this area lacks are major sports teams. We have great health care options, fine dining, shopping, business infrastructure, transportation (obviously it would help if we expanded the island’s airstrip), schools and culture.

Technology
Today’s digital methods of conducting business have made moving a business to our area — or operating a national business from our area — a reality.

Demographics
Because the great majority of Bluffton’s and Hilton Head’s population have moved here during the last few decades, there is an abundance of cultural diversity and a general sense of openness in our area that makes visiting, living or working here a pleasant and interesting experience.
Couple that with a low crime rate and it is easy to understand why calling the Lowcountry home makes it a desirable prospect. (I never fail to be amazed by the amount of interesting and talented people that can be found in our area).

Surroundings
The Lowcountry is nestled between two towns with the best-preserved historic districts in the nation: Savannah and Charleston. For those in need of even more city life, Jacksonville, Columbia, Greenville, Charlotte and Atlanta are within reasonable driving distance. And the mountains are a few hours inland from the coast if you’re in need of a change of scenery.

Youth
I started noting a trend of young people who went to school here moving back to their roots. This signals that the area has matured as a community and is no longer only attractive to retiree and second-home owners, but also to young families that want to build their future here. If one combines the rational part and the emotional value that make up the quality of life, our area certainly remains one of the most desirable
places to visit, work and live.

I am optimistic about the long-term economic prospects for our region. With that said, I feel we could do a lot more for the economic redevelopment of our area than is currently done, but that will make a good topic for a future column.
Onwards!