New York Times explores Upstate’s success with FDI

Q&A explores international business, textile industry & economic development

A recent article by the New York Times explores the impact that foreign-direct investment has had in diversifying the economy — and career prospects — of Upstate South Carolina.

The article by reporter Eduardo Medina, “In South Carolina, a Once Thriving Textile Hub is Baffled by Trump’s Tariffs,” was published on April 12 and includes commentary from Upstate business leaders and retirees who have served these industries.

Upstate SC Alliance President & CEO John Lummus provides commentary in the piece, one of several Upstate voices helping to explain the economic renaissance the Upstate region has experienced in recent decades:

“John Lummus, the president of Upstate SC Alliance, an economic development group, said that the region’s standard of living ‘has gone up so much more, that unless those companies are much more niche we’re not going to see companies come back and making T-shirts.’

In 1970, when there were dozens of textile manufacturers in Spartanburg, Mr. Lummus said, the per capita personal income in Spartanburg was about $3,250 — about $25,000 today, after adjusting for inflation. Today, he said, it is about $56,000.”

Lummus attributes the increase in per capita personal income to forward-thinking leadership that has ushered in an era of foreign-direct investment and economic diversification across the 10-county region.

Medina’s reporting continues:

“Today, companies like BMW and Michelin — from Germany and France — are the economic engines of the region. Since BMW opened its plant in Spartanburg County in the early ’90s, it has invested more than $14.8 billion into its South Carolina operations. The plant has more than 11,000 jobs, its largest single production facility in the world, according to the company. And it is the country’s largest car exporter by value, with $10 billion in shipments last year.”

For additional context on Medina’s reporting, the Upstate SC Alliance was formed in 2000 to market the Upstate region for global business investment. We were created to work in partnership with the 10 counties across our region and with the SC Department of Commerce to help bring businesses like these to our region.

And through our own Q&A with our President & CEO John Lummus, we wanted to share additional insights into this issue:

Q: Can you share more about the impact of international business on the Upstate’s economy?

Today, the Upstate of South Carolina is home to 579+ international companies representing 36 countries, and it has seen growth from a diverse array of business sectors – automotive, aerospace, advanced manufacturing, engineered materials, life sciences and food & beverage manufacturing.

In addition to having many foreign-owned companies in our region, the Upstate also relies on global movement of goods. In 2024, South Carolina was the state’s leading exporter of completed passenger vehicles and tires, and SC exports reached 197 countries and territories in 2024. Production facilities here make goods that are exported and used all over the world, and the manufacturing process often relies on imported components and raw materials. The Upstate Alliance supports free and open trade, which allows businesses to focus on what they do best and allows countries to trade on their respective advantages.

Additionally, there is currently misinformation circulating about what constitutes an import tariff and who pays for it. A company that is importing products into America pays the cost of the import tariffs directly to the Customs and Border Protection when goods enter the United States. Companies bearing these costs must decide whether they will pass the increased costs onto customers or whether they will take a reduction in their profit margin to offset the cost. We are likely to see prices rise because of new tariffs being levied. And, we have already seen tariff uncertainty have a chilling effect as companies have slowed their decision-making.

Q: What type of economic development success have you seen recently in the Upstate? And what role has international business played?

In the last 10 years (from 2015-2024), 707 economic development projects have announced $20.2 billion in capital investment and 53,711 jobs to be created in the Upstate. Among these figures, 40.8% of the jobs – or 21,914 jobs – come from foreign-owned companies. And, 49.4% – or 26,533 jobs –  came from expansions of companies already in the Upstate.

In the economic development community, continued growth among established employers is a good sign. It’s an endorsement for the region’s viability as a business location and for the availability of talent and partners in workforce development. And, new investments from outside help to bring additional diversification, resilience and choice to the market.

Q: How does textile manufacturing look in the Upstate today?

The textile manufacturing legacy lives on in the Upstate today through companies exploring an innovative edge – things like automated production or performance materials optimized to hold up in extreme conditions. We see these companies as a subset of our ‘Engineered Materials’ industry cluster, which includes companies such as:

• Milliken & Company, a legacy textile company headquartered in Spartanburg, which has broadened into textiles, chemicals, flooring and healthcare products.
• Standard Textile in Union County, an American company that manufactures high-end towels and sheets for hotels and medical environments.
• Arthrex in Anderson County, a global medical device company and leader in new product development and medical education in orthopedics. Their Upstate manufacturing facility produces sutures and implantable arthroscopic devices.
• Sage Automotive Interiors, headquartered in Greenville, designs and manufactures innovative interior products for the automotive industry.
• MycoWorks, a bioscience pioneer in sustainable materials who is advancing vegan leather alternatives from its $107 million production facility in Union County.

Q: What are the benefits of diversifying an economy?

The Upstate of South Carolina has a thriving and diverse array of manufacturers in automotive, aerospace, engineered materials, life sciences, food and beverage, and many more, and this makes our economy both strong and resilient. These industries are supported by a workforce with wide-ranging, high-tech skill sets, and our workforce has shown adaptability. For example, several of the region’s automotive producers have tooled up to support a blend of internal combustion engines, hybrid engines and electric vehicles – being able to respond to different types of business demands increases our ability to participate in the economy even as product needs ebb and flow. Combine this with a state-of-the-art technical college system and research universities, and you have a formula for long-term economic success.  We are much less dependent on any one sector than when we were dependent upon the textile industry from 1880 to 1990, and this sets our region up for greater prosperity.

We invite you to explore our website for more on the global brands that choose to call Upstate SC home and the advantages of doing business in Upstate SC.