The economic outlook for the Northern states remains positive according to Mark Farris, CEO of the Greenville Regional Development Corporation. Despite concerns over inflation and uncertainty in the financial sector, both domestic and global companies continue to express interest in the region. However, Farris predicts that the first few months of 2023 could see a slowdown in the pace of companies moving into the region.
Catherine O’Neill, chief economic development officer at One-Spartanburg, attributes part of this year’s slowdown to the unprecedented manufacturing growth in 2022. Spartanburg County alone accounts for $3.2 billion of the state’s $10.3 billion in new investment. Much of it came from BMW Manufacturing, which announced a $1.7 billion investment in October for new electric vehicle capacity.
Another factor impacting the slowdown in new projects is the amount of speculative warehouse space coming online this year, according to John Montgomery, managing director of Colliers’ industrial services division. Pipeline has about 14 million square feet of speculative warehouse/logistics space, of which about 11 million square feet are not rented. Montgomery says that supply has now caught up with demand and the building will be left vacant for tenants to come and rent it out.
Despite the projected slowdown, all three experts are confident that businesses will want to move to the region in the long-term as the fundamentals of the market remain strong. Montgomery feels “very good and bullish” about the region’s outlook.