A recent study out of South Carolina paints a positive picture for automotive manufacturing in a state heavily dependent on the sector.

The South Carolina Manufacturers & Commerce and SC Future Makers' “The Economic Impact of Manufacturing in South Carolina” report showed automotive manufacturing is the state's largest and fastest-growing manufacturing subsector. 

As a whole, the manufacturing industry plays a big role in South Carolina’s economy, supporting more than 30% of all jobs, according to the report. The automotive sector accounts for 16% of the state’s total manufacturing footprint and has grown more than three times faster than the manufacturing industry there all together. 

“New automotive manufacturing investments have a relatively unique ability to scale-up employment in the Palmetto State,” the study said. 

The auto sector supports nearly 120,000 jobs in South Carolina with an employment multiplier of 4.6, which means that for every 10 jobs created in auto manufacturing there are an additional 36 jobs created elsewhere in the state for a total of 46 jobs. 

Between 2010 and 2024, the state’s cumulative auto manufacturing employment growth hit 106%, much higher than the manufacturing industry in general, which rose about 27%, the report said. BMW, Mercedes and Volvo have manufacturing plants in South Carolina.

The study estimated that automotive manufacturing generates over $64 billion in annual economic impact for the state, an example of the sector's importance in the U.S. as a whole. 

According to data from the Center for Automotive Research, the industry generates over $450 billion in gross domestic product, supports nearly $100 billion in local, state and federal tax revenue, and contributes directly and indirectly total employment of over three million jobs across the U.S.