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Greenville Business Magazine

The Business Narrative: Important Source of U.S. Economic Growth

Sep 13, 2024 10:38AM ● By Donna Walker

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A (Labor) Force to be Reckoned With: Celebrating Hispanic Heritage Month

The unsettled debate about whether the Federal Reserve can fully corral inflation without ending the current expansion has pushed the U.S. potential rate of GDP growth, or the rate at which the economy can expand at a constant rate of inflation, back into the spotlight, according to Wells Fargo economists Sarah House and Nicole Cervi and economic analyst Aubrey Woessner.

 

In a special commentary, the three say labor force growth is a major determinant of an economy's potential growth rate.

 

As labor force growth strengthens, it becomes easier for businesses to find workers to grow and expand. Yet as population growth has slowed in recent decades and is projected to downshift further, they add one group stands out for its contribution to labor force growth: the Hispanic and Latino community.

 

They say in their commentary:

Hispanics are the leading driver of labor force growth. Over the past decade, Hispanics accounted for nearly two-thirds of the 12 million gain in the U.S. labor force. The outsized contribution has been fueled by more robust population growth and stronger gains in labor force participation rates relative to the non-Hispanic population.

 

The U.S. “working-age” population would be shrinking if not for Hispanics. In the decade through 2023, the Hispanic population ages 18–64 grew 23 percent, fully eclipsing the 1.5 percent decline in the population of non-Hispanics of the same age. While immigration has been a meaningful part of this gain, more than 90 percent of the growth in the U.S. Hispanic population over the past decade has been due to births.

 

The Hispanic population skews young. In 2023, the median age among Hispanics was 31—ten years younger than the non-Hispanic population. The younger age profile of Hispanics has translated into both a higher birth rate and a lower mortality rate.

 

Hispanics participate in the labor market at a higher rate. The labor force participation rate among Hispanics is 5.3 points higher than non-Hispanics. The loftier participation rate is linked closely with the younger age profile of Hispanics, as a greater share are in their “prime” working years.

 

Unlike the broader population, Hispanic labor force participation has increased over the past decade. Age composition does not fully explain the diverging trends. Across age cohorts, the Hispanic labor force participation rate has increased more than that of non-Hispanics over the past decade.

 

Rising labor force attachment among Hispanic women and increased educational attainment are propelling participation higher. The participation rate gap between Hispanic men and women has shrunk more than twice as fast as that of non-Hispanics over the past ten years. Meantime, with labor force participation positively associated with education, the sharp decline in the share of Hispanics with less than a high school degree and rise in the share with a college degree or higher has also lifted participation higher.

 

Hispanics are set to be an increasingly key source of U.S. economic growth ahead. Faster population growth and secular tailwinds to labor force participation are projected to keep the Hispanic community an outsized driver of labor force growth in the coming years, bolstering the U.S. economy's underlying pace of growth.

 

According to the National Archives, we celebrate Hispanic Heritage Month (Sept. 15 to Oct. 15) to recognize the achievements and contributions of Hispanic American champions who have inspired others to achieve success.

 

The observation began in 1968 as Hispanic Heritage Week under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30-day period.

 

It was enacted into law on Aug. 17, 1988. The theme for 2024 is “Pioneers of Change: Shaping the Future Together.”

 
 
 

Asset Technology Group, Inc. Expanding, Relocating Headquarters to Florence County

Asset Technology Group, Inc. (ATG), an information technology (IT) services provider, said it is expanding and relocating its headquarters to Florence County. The company’s $6.2 million investment will create 77 jobs, according to Gov. Henry McMaster’s office.

 

Founded in Darlington County in 2005, ATG specializes in technology infrastructure for small- to medium-sized businesses and municipalities.

 

The company assists clients with installing, configuring, and maintaining reliable IT solutions and support.

 

ATG will expand and relocate its headquarters to the 8,500-square-foot facility at 901 Second Loop Road in Florence.

 

Operations will be online in the fourth quarter of 2024.

 

The state’s Coordinating Council for Economic Development awarded a $50,000 Set-Aside grant to Florence County to assist with the costs of building improvements.

 

“We are thrilled to announce the move of our headquarters to Florence, South Carolina with the acquisition of an 8,500-square-foot facility on Second Loop Road. This move represents a significant milestone for Asset Technology Group as we continue to grow and innovate,” said Asset Technology Group, Inc. CEO Bill Lynch.

 

Lynch added, “We are deeply appreciative of the support from the South Carolina Department of Commerce and Florence County, whose assistance has been instrumental in creating this economic opportunity. This expansion not only strengthens our presence in the region but also underscores our commitment to contributing to the local community and its economic development.” 

 

Those interested in joining ATG should go to the company’s careers page.

 
 
 

BMW Group Adjusts Guidance for 2024 Financial Year

The Board of Management of BMW AG adjusted the guidance for the 2024 financial year.

 

Officials said this was triggered in part by additional headwinds in the Automotive Segment resulting from delivery stops and technical actions linked to the Integrated Braking System (IBS) that is provided by a supplier.

 

Officials said the delivery stops for vehicles that aren’t already in customers hands will have a negative worldwide sales effect in the second half of the year.

 

They said the IBS-related technical actions impact over 1.5 million vehicles and result in additional warranty costs.

 

The Wall Street Journal said costs to address a problem with the braking system would land in the high three-digit-million euro region.

 

In addition, the ongoing muted demand in China is affecting sales volumes, the officials said. 

 

Considering these developments in the Automotive Segment, the BMW Group has adjusted the guidance for the 2024 financial year as follows:

 

* A slight decrease in deliveries versus previous year (previously: slight increase).

* An EBIT margin for 2024 in a corridor from 6 percent to 7 percent (previously: 8 percent to 10 percent).

* Return on Capital Employed (RoCE) between 11 percent and 13 percent (previously: 15 percent to 20 percent).

 

Officials said the described earnings together with additional inventory will impact the third quarter much more than the fourth quarter.

 

In the Motorcycles Segment, the ongoing competitive situation across core markets – including China and the USA – also is having a major impact on volume and price realization, the officials said.

 

Duke Energy Provides $100,000 in Grants to Support Providing Senior Home Ramp Programs in South Carolina

To assist the efforts of organizations like Sumter United Ministries, the Duke Energy Foundation is providing $100,000 in grants to 13 organizations in the state with existing home ramp programs for low-income senior citizens or those with disabilities who qualify for assistance.

 

Each program qualified for up to $15,000 in funding based on the size of the population they serve.

 

"Being able to safely enter and exit our homes is a basic need for everyone," said Mark Champagne, executive director of Sumter United Ministries. "We have been told of seniors in our community being physically carried in and out of their home because there wasn't a suitable wheelchair ramp available."

 

"This money will make life so much better for several homeowners in our community," Champagne said.

 

Grants were awarded to the following organizations:

* AIM (Anderson County) – $15,000.

* Caring and Sharing (Williamsburg County) – $2,500.

* Greenwood Community Home Repairs – $5,000.

* Habitat for Humanity (Greenville County) – $15,000.

* Habitat for Humanity (Spartanburg County) – $15,000.

* Habitat for Humanity (York County) – $5,000.

* Helping Florence Flourish – $5,000.

* Home Works of America (Marlboro County) – $2,500.

* KARE of Kershaw – $5,000.

* Lighthouse Ministries (Florence County) – $10,000.

* Rebuild Upstate (Oconee and Pickens counties) – $10,000.

* Sumter United Ministries – $7,500.

* United Way (Clarendon County) – $2,500.

 

This year's grants are a continuation of the Foundation's efforts to support South Carolina organizations that help make needed home repairs to enable senior citizens to continue to enjoy life in their current homes.

 

In 2023, the Senior Home Repair Program provided $225,000 in grants to 15 qualifying nonprofits of up to $20,000 through a request for proposals.

 

In addition to the grants, Duke Energy employees will be volunteering with several of these organizations to build ramps in communities in the company's service territory that serves more than 830,000 retail electric customers and stretches from the Pee Dee region to the Upstate.

 

Officials said individuals looking for more information on qualifying for support from individual programs should contact the organizations receiving these grants.

 

The Duke Energy Foundation provides more than $30 million annually in philanthropic support to meet the needs of communities where Duke Energy customers live and work.

 

The Foundation is funded by Duke Energy shareholders.

 

Allow us to tell your company's Business Narrative. Send your press release to David Dykes or for more information email [email protected]

The Business Narrative Duke Energy Hispanic Heritage Month Asset Technology Group BMW AG
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