AI Could Slow Demand for Some S.C. Manufacturers
Jessica Holdman/SC Daily Gazette
COLUMBIA — Assembly line workers, building maintenance and mechanics who fix factory machinery are projected to be the most in-demand manufacturing jobs in South Carolina over the next five years, according to a study released this week.
South Carolina has grown into a manufacturing powerhouse over the past three decades, since German carmaker BMW planted its flag in the Upstate, transforming the former textile region into a major automotive hub.
At the same time, rapid advancements in automation, driven by artificial intelligence, puts workers at elevated risk of losing out in favor of machines.
Today manufacturing is one of South Carolina’s largest industries, employing between 290,000 and 310,000 people and directly contributing as much as $206 billion to the state’s economy annually. That’s according to the study commissioned by South Carolina Manufacturers & Commerce, a merger of what used to be the state Chamber of Commerce and Manufacturers Alliance.
In a statement accompanying the report’s release, Gov. Henry McMaster called the industry “essential to our economic strength and long-term prosperity.”
Manufacturing jobs typically pay 24% more than the state average wage. It’s even higher for automotive manufacturing, which boasts a 44% wage premium, according to the study.
And while wages in the Southeast have traditionally lagged behind those in other parts of the country, South Carolina has made some major gains when it comes to manufacturing jobs. The average manufacturing wage in the Palmetto State only trails those of Rust Belt states by 5%, compared to a 16% wage gap 20 years ago.
In-demand jobs
South Carolina manufacturers anticipate hiring some 4,800 more assembly line workers, 3,500 building maintenance workers, 2,300 mechanics trained to fix the specialized machinery operated by assembly workers, 1,800 industrial engineers and 1,200 workers with expertise in putting together electronic components.
These jobs pay anywhere between $44,000 on average for assembly work and more than $100,000 on average for engineering, according to the study.
Manufacturing jobs most at risk of being computerized include the clerks who manage inventory, parts ordering and shipping, as well as product inspectors and packagers.
But even the most in-demand jobs face increased danger, sitting between seven and eight on a 10-point scale, according to the study. And those that do land the positions will need to know more about the robots they’re working alongside.
Still, more automation isn’t likely to result in layoffs, according to the study’s author Joey Von Nessen. Baby boomers now aging out of the workforce will largely offset any impact, the University of South Carolina economist told the SC Daily Gazette.
Learning on the job
Falling birth rates since the mid-2000s mean fewer students are now coming out of high school. So, while retirements are rising, there are also fewer graduates available to step into the gap to fill manufacturing jobs.
With that in mind, more companies are willing to train people on the job, even if they’ve never worked in manufacturing before.
For example, electric vehicle maker Scout Motors is preparing to open applications for its first 200 to 400 assembly line workers in the Midlands. Neither manufacturing nor automotive experience will be in the job requirements, according to company leadership.
And when it comes to attracting workforce-strapped companies, South Carolina and the Southeast in general have at least one other factor working in its favor — a growing population as people move into the region from other parts of the country.
South Carolina again topped the nation last year as the fastest-growing state, by percentage, according to U.S. Census Bureau data.
Sara Hazzard, CEO of South Carolina Manufacturers & Commerce called the study “a fantastic reminder of just how deep the manufacturing industry’s roots run through our state.”
“The economic development success of the last decade, and the momentum we continue to watch it build, are proof South Carolina is right where we want to be: positioned for long-term economic development competitiveness and prosperity,” she said. “As we have said, our best days are ahead.”
Top SC manufacturing counties
Spartanburg — more than 37,000 workers
Greenville — more than 31,000 workers
Charleston — more than 17,500 workers
Anderson — nearly 15,800 workers
Lexington — more than 12,600 workers
Richland — more than 12,200 workers
York — nearly 10,800 workers
Berkeley — more than 10,500 workers
Aiken — nearly 9,000 workers
Florence — nearly 7,800 workers
