DARLA MOORE
SPEECH TO THE PEE DEE REGIONAL ECONOMIC DEVELOPMENT MEETING

FLORENCE COUNTRY CLUB
FLORENCE, SC
SEPTEMBER 6, 2005

On behalf of Harris DeLoach, Chairman of the Palmetto Business Forum, Mack Whittle, Chairman of the SC Chamber of Commerce, and Ed Sellers, Chairman of the Council on Competitiveness, welcome to what we hope will be the beginning of a strong, vibrant coalition of organizations united for one single purpose - to improve the competitiveness and the prosperity of South Carolina.

I am Darla Moore, and I am here today not only as Chairman of the Palmetto Institute, the fourth member of our coalition, but as a resident of the great region known as the "Pee Dee." Even though sometime, in despair, I refer to it as "behind the pine curtain," this is home to me.

First, allow me to thank you for taking the time from your busy schedule to join us. I also want to personally thank Senator Yancey McGill, Brad Dean, and many others for helping us put this outstanding group together. We are excited to be here. This is our third regional meeting -- we also have met with similar groups in the Upstate and the Midlands -- and I promise you we will keep our comments to a minimum. But, I also promise you if we can leave this meeting with a framework for a plan to help South Carolina move forward, the meeting will have been a huge success. Let me explain.

The secret is out - capitalism works. The competition for the Pee Dee is no longer between Greenville, Columbia, and Charleston. To be successful in this new global, knowledge-based economy, we must compete for industries and jobs not only with North Carolina and Georgia but also with China, India, and Mexico. But, here is the good news - we can compete. The assets are here. That's right - the assets are right here in South Carolina and the Pee Dee. We just need to strengthen and grow them to be competitive. And, that is why we have asked you here today.

Based upon studies by the Palmetto Institute and Professor Michael Porter of Harvard, a leading expert on competitiveness whose family, by the way, grew up on the edge of the Pee Dee in Chesterfield County, we know two things:

• First, we are not as competitive as we need to be and will not be until we improve the mix of industries in the state as well as the foundations we use to support our economy. I am, of course, talking about workforce quality and education, access to capital, research and development, and infrastructure.



• Second, we cannot improve our economy by continuing to focus solely on the traditional method of economic development by relying on government to offer abundant, low cost labor, low taxes, and high financial incentives to lure new industries to the state. We need to build our own assets, and we need to build them now. No longer can we treat the critical decisions necessary to make us more competitive like a football game between USC and Clemson. If we do not win this year, well, we will get them next year. We must approach this effort with a sense of urgency. If we do not take the steps now to make us competitive, there may not be a second chance because 100 Chinese or Indians will be in line to take these jobs and opportunities. And, please understand, they understand what it takes to be competitive.

So, today I want to talk about how we can build upon the assets in the Pee Dee and South Carolina to grow our existing industries, start new ones, and entice the types of industries that will help raise our prosperity to locate in our state and our region. As I said earlier, we have the assets in the Pee Dee - Sonoco, Roche, Honda, and Nan Ya, just to name a few, are wonderful corporate partners. More important, the leaders of these companies are committed to your community far beyond just the basic corporate response. Don Herriott, who sits on the Board of the Palmetto Institute, is a perfect example. Not only is he committed to the improvement of his community but he has led the way for improving the state's key economic foundation - our education system and our workforce quality. His work with "Pathways to Prosperity" and the resulting passage of the education and economic development legislation clearly demonstrates what committed individuals working together can accomplish. And, as I know you understand, these business community partnerships are absolutely critical to your success.

Beyond your corporate partners, Francis Marion and Coastal Carolina, along with your excellent technical education colleges, are playing a much greater role in the economic development of this region. I am personally aware of the work of Fred Carter and applaud him and the leaders of the other institutions for their efforts. Just as corporate partners, institutions of higher learning must also be partners in making our region more competitive.

When I think of the Pee Dee's assets, I also immediately think of the tourism cluster along the coast and what it means to the region and the state. We just have to take the steps necessary to build this asset. Did you now that our studies show the average tourist spends close to $150 dollars less in South Carolina than the national average. Can you imagine how much new income could be brought to this region and the state if we raised this amount to the national average? I mention that statistic not to downplay the role tourism plays in our economy today, but to emphasize how we must view our assets - they are our foundations but it is our job to find ways to add value to them because, I assure you, our competitors are not sitting on their assets without trying to find ways to improve them.

I also know you have a thriving health care industry in the Florence community. It is probably your biggest employer. Yet, I cannot help but wonder how we can build upon the health care industry in the Pee Dee by expanding to other areas such as research and development through better collaboration with our existing industries and our higher education institutions.

And, of course, I could not talk about the assets of our region without talking about our agriculture community and what they bring to the community. Certainly, they are suffering now but that is just more of a reason to help strengthen and grow them.

While I am sure there are others, I just wanted to mention these few obvious ones to highlight our existing assets.

But, let me tell you what your biggest asset is in the Pee Dee. It is the North Eastern Strategic Alliance or NESA. If this organization can provide the collaboration and support to build upon the economic engines of Florence and the Grand Strand and, at the same time, help the surrounding rural counties be a part of these engines, then your region will be one which can compete successfully.

But, just as individual counties cannot grow and be competitive without the support of regional collaboration, regions cannot build its assets without statewide support, and therein lies the reason for the meeting today. The four statewide business organizations represented here today believe that it is critical we speak as one on the major issues South Carolina needs to address to be more competitive. We began this effort last year by supporting the passage of six priority issues by the General Assembly. My co-host, Harris DeLoach, will discuss these issues in a minute but just let me say, the legislative leadership responded in a remarkable manner. Under the leadership of such legislators as our own Senator Hugh Leatherman as well as Senators John Land, Yancey McGill, and Ray Cleary and my own Representative, Lester Branham, we were extraordinarily successful. In fact, some have called last year's session one of the most successful ever. However, to continue this effort, we need your help. We need your input and we need your vocal support. We need to make sure when we speak in the future, it is not just the four statewide organizations represented here today, but it is all the major regional and local organizations around the state that share our desire to make our state more competitive. I want our voices heard not only at the Statehouse -- I want the world outside South Carolina to know we are going to take the steps necessary to be more competitive. I have been told that one of the reasons the North Carolina Senate finally passed the lottery bill was because they were concerned that the higher education community was losing ground to South Carolina because of the passage of the life sciences legislation. I know we did not want them to pass their lottery bill but at least people are recognizing that we are doing what is necessary to be more competitive. Hugh, let me say personally, I know you were battered and bruised over that legislation, but it really is going to make a difference.

Before I turn over the program to Harris, another Pee Dee cohort, who, by the way, represents the epitome of going far beyond the call of duty to help his region and state, and to Hunter Howard and Jim Fields, who will discuss how you can be a part of our effort, I want to read a couple of excerpts from a booklet authored by the Pee Dee Heritage Center at Coker College entitled "Triumphant We Prevail: The Great Depression in the Pee Dee Basin." It sums up so well why I have my roots in the Pee Dee and why I believe this region can succeed. It talks about the Great Depression and how the residents of the Pee Dee responded to it:

Across the country, despair and pessimism were the reigning emotions. The country was in the midst of economic shambles, crime was on the rise, and politicians were resigning from their offices under disgraceful circumstances. In September 1932, the news of New York City mayor's disgraceful resignation dominated the headlines. During the same time, the Florence Morning News printed the following:

In spite of waves of crime on a sea of depression, Florence guides on an even keel steering for the port of prosperity which is surely ahead. Optimism is the compass that keeps her on course.

The tenacious and optimistic mood continued on. In 1935, to stimulate business, Florence marketed itself as "Florence, It's All Here."

The Pee Dee also led the way in "patriotic cooperation." When banks across the country were being allowed to reopen after the market crashes, many people were hesitant to re-deposit their money. However, the people of the Pee Dee responded quite differently. Their money, previously entrusted to mattresses and mason jars, was now being used to revitalize our nation's economy. The South Carolina Bank in Dillon reopened to the headline, "Money Pours into Bank at Dillon." The good people of Hartsville displayed their optimism and tenacity by depositing $180,000 on a bank's opening day.

What a wonderful snapshot of the tenacity and triumph over adversity by the people of the Pee Dee. And, I am sure it is this tenacity and optimism which will prevail once again in our efforts to be more competitive.

Now, Harris let me turn over to you before I begin to preach!

Thank you.