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Total construction starts across South Carolina rebounded from a 2023 slowdown, growing 28 percent in 2024 behind a booming manufacturing sector, according to LCK, the project management partner of Colliers International of South Carolina.
LCK officials said manufacturing starts rose across the state, nearly tripling in total value to $3.8B in 2024 from $1.3B in 2023 and just $249M in 2022.
The education sector also saw substantial growth of 88 percent over relatively consistent low levels the prior three years.
Health care and multi-family starts decreased slightly compared to previous years’ growth as the state’s Covid-era migration boom began to moderate.
LCK officials said South Carolina’s construction workforce mirrored the spike in construction starts, experiencing its largest annualized growth rate since 2019 at 6 percent.
The state’s unemployment rate rose to 3.85 percent from 3 percent in 2023, although it remained lower than the national average of 4.125 percent.
LCK officials said manufacturing is poised to remain the leading driver of construction starts throughout 2025, countering the usual fluctuations of development across sectors and markets throughout South Carolina.
A flurry of announced expansions and new construction is slated for the coming year in the Charleston, Columbia, Greenville and Spartanburg markets, the officials said.
They added the continued growth in the manufacturing sector, coupled with requisite expansion of supporting sectors including residential, commercial, health care, infrastructure, and education, may challenge the state and region to provide expanded workforces and material resources to meet the needs of the construction and manufacturing sectors.
Compounding these growth-driven obstacles, rising uncertainty from the rapidly changing worldwide political climate and economic markets could trickle down to create local challenges with pricing and availability of many widely used construction materials, the officials said.
They said that in the near term, staying abreast of local, regional, and national trends, along with leveraging relationships with key partners within the construction industry, will be critical to anticipate challenges, establish appropriate contingencies, and maintain critical paths for successful projects.
Charleston’s market performance accounted for 44 percent of statewide construction starts across the six key sectors in 2024.
The manufacturing sector grew exponentially in 2024 to $1.9B, over $28.6M in 2023, primarily due to Redwood Materials’ battery recycling facility breaking ground in the first quarter.
The commercial sector also saw a boom in late 2024, with large scale project announcements including MUSC’s Clements Ferry Pavilion.
Health care, government buildings, and multi-family starts decreased drastically in 2024 after strong, stable performance in recent years.
The Charleston-North Charleston construction workforce increased by 10 percent to 24,700 from January to December 2024, struggling to keep pace with 150 percent growth across the six major sectors.
Starts in the Columbia market grew over 200 percent from $813.5M in 2023 to $2.46B in 2024, including groundbreaking on the $1B first phase of Scout Motors’ manufacturing facility in Blythewood.
Additional manufacturing activity is expected in 2025, including Cardiff Products’ announced $99.6M facility and pending expansions at FN America and Michelin.
The health care sector saw $144M in growth during 2024, a trajectory expected to slow in 2025.
The Columbia construction workforce remained relatively flat throughout 2024, despite the area’s significant growth and major announcements.
Columbia’s unemployment rate increased substantially in the second half of 2024, peaking at 5.2 percent in August and remaining above 4.5 percent through December.
The Greenville market observed over $1.1B in construction starts across selected sectors during 2024, an 83 percent and $504M increase compared to 2023.
Eclipsed by $452M in manufacturing starts, the multi-family sector grew 139 percent to $253M starts in 2024, followed by modest growth of 39 percent in the commercial sector.
Education, health care, and government buildings all experienced decreases ranging from 34-83 percent.
The Greenville-Anderson-Mauldin construction workforce averaged 23,200 workers during 2024, increasing by roughly 900 over 2023.
Selected Spartanburg market sectors experienced significant declines throughout 2024, with an overall decrease of $1B compared to 2023 growth.
The multi-family sector represented the only growth in 2024, finishing 172 percent higher than 2023.