South Carolina is finally fixing its roads, but clogged lanes and maintenance delays threaten to stifle the state’s ability to compete economically before the work is done.
Backed by $6.2 billion in annual construction and an additional $1.1 billion inflation buffer brought in by Gov. Henry McMaster, the state has repaired roughly 10,000 miles of roads and placed nearly 500 bridges under contract since 2017 to catch up on decades of deferred maintenance.
Despite the historic increase in construction, South Carolina’s heavy manufacturing freight and unpredictable highway bottlenecks are now impacting the cost of commerce as erratic work-zone delays threaten just-in-time inventory; stalling fleets and driving up detention fees for large manufacturers like Boeing, BMW and Michelin — along with their tiered suppliers dotted around the Upstate, Midlands, and Lowcountry.
“When the roads bill was passed in 2017, primary routes US-29, US-76, and SC-20 comprised 50 percent of the state’s traffic,” South Carolina Transportation Secretary Justin Powell said.
“Back then, the roadways were 19 percent good in terms of pavement conditions. Today, they’re up to 44 percent, with something happening across every corner of the state, whether it's paving a bridge, interstate or safety work,” he added. Meanwhile, “bridges remain a point of emphasis as many around the state were built in the 1950s or ‘60s.”
At the same time, major roadways like I-85 and I-26 remain vital arteries for transporting manufacturing goods to the Midlands and Upstate from the Port of Charleston.
The state is currently in an active study to determine what construction projects are required to clear existing issues along I-85 between Greenville, Spartanburg and Anderson, according to Powell.
“We know that's going to be a large project,” he said. “Last year, South Carolina started the single largest contract DOT's ever done — a $700 million widening of I-95 at the Georgia border. The state has a real challenge with congestion in Charleston and moving port traffic. We're looking at a $7 billion to $10 billion program to resolve the issue there.”
“Transportation infrastructure is fundamental to economic development,” said Susie Shannon, president and CEO of the South Carolina Council on Competitiveness.
“And the state is making significant investments in its infrastructure, with the South Carolina Department of Transportation (SCDOT) investing $32.9 billion through 2028, which is 84 percent of every infrastructure dollar being invested statewide,” she said. “This is vital because reliable access to customers, suppliers, and labor markets enable the state to compete for new business while also supporting the companies already here.”
The 2026 Economic Impact of Infrastructure Investments in South Carolina study estimates that maintaining and improving the state's infrastructure could increase South Carolina's future annual employment growth rate from 1.3 percent to 1.8 percent over the next decade, potentially supporting nearly 140,000 additional permanent jobs between 2026 and 2036.
“In terms of state investment and site selection decisions, infrastructure is one piece of a much larger competitiveness equation that includes, utilities, available sites, transportation access, and workforce,” Shannon said. “The message we hear from our industries is that we need to continue being strategic about infrastructure — identifying where growth is occurring, anticipating where capacity will be needed and making sure our transportation network continues to connect businesses, workers, and markets.”
South Carolina’s economic boom is closely tied to its growing manufacturing prowess. Since the roads bill was announced in 2017, the advanced manufacturing sector has brought on more than 63,000 new employees statewide, according to the South Carolina Department of Commerce, with 29 foreign countries represented by manufacturing projects over the same time.
Already home to global companies like Mercedes-Benz, Volvo, and BMW, the Palmetto State’s larger OEMs and their suppliers count on reliable infrastructure and an uninterrupted delivery of goods to sustain the state’s lofty economic efforts and grow their workforce.
“For manufacturers relying on tight delivery windows or just-in-time inventory, even a brief delay can trigger a domino effect,” said Brian Kuney, VP of the South Carolina Manufacturing Extension Partnership.
“Road construction throws a massive wrench into big-rig shipping. Between sudden lane closures, slow detours, and random stoppages, drivers are left fighting unpredictable traffic, making it tough to stay on schedule,” he said. “In fact, the Federal Highway Administration tells us work zones are a major driver of unexpected delays.”
Meanwhile, the addition of choice lanes along South Carolina interstates could mean less time in traffic for both private and commercial drivers, according to the SCDOT. In a 2026 study highlighting needs for a new era in transportation, the organization said their inclusion would allow drivers the to bypass congestion for a user fee. Choice lanes would also add capacity to congested roads while keeping existing lanes free to use.
For commercial drivers on I-526 in Charleston and I-85 in Greenville, choice lanes would present opportunities for users to accelerate projects a decade or more out on the horizon while lowering the burden on general taxpayers.
“For trucking lines, the biggest headache isn't usually the average time of delay by itself, but how wildly inconsistent that time can be from day to day,” Kuney said. “Missed drop-off times lead to higher detention fees, force drivers to burn through their restricted service hours, and can ultimately bring entire production lines to a halt.”
South Carolina is home to thousands of transportation-, distribution-, and logistics-related firms (TDLs). Since 2017, the companies have contributed more than $2 billion in capital investments, with names like Southeastern Freight Lines, Sunland Logistics Solutions, and Kontane Logistics sitting at the top for employment and revenue.
To date, there are more than 150 TDLs operating near the Port of Charleston alone. At the same time, data compiled by the SCDOT shows congestion and road construction is expanding statewide and predicted to skyrocket 90 percent by 2050, indicating the need for continued safety measures on freight network roads.
A strong freight network supports economic growth and jobs, while improving safety, reducing congestion and delays, according to the SCDOT. Functional class freight routes designed for high travel speeds and truck volumes (interstates, U.S., and S.C. routes) bear the highest burden.
“In my 36-year logistics career, infrastructure has always been an issue. Improvements were either too little too late, or not enough was done,” said Allen Dial, Pioneer Logistics Solution’s vice president of Southeast operations.
“When I-526 was complete, traffic was easy for two to three years, then it was overwhelmed,” he added. “It was the same situation with the Ravenel Bridge in Charleston. Growth overwhelms the expansion, and gridlock returns. I-26 is in the process of becoming three lanes from one end to the other. How long will that be a true benefit?”
Time is critical for manufacturers, particularly for the more than 500 South Carolina companies operating in the highly synchronized automotive supply chain. To date, the network employs over 82,000 workers and generates roughly $64 billion in economic impact statewide.
“The advent of electronic logs means delays caused by congestion are now a sort of ‘quiet’ cost, while the fuel being burned with the truck sitting in traffic is the ‘louder’ one, especially under today’s gas prices,” Dial said. “But the time crunch can also disrupt a driver’s start time the next day, multiplying delays and revenue hits for other companies up and down the supply chain.”
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