Carolinas Nuclear Facilities are Significant Economic Engine
October 27, 2009
The Carolinas’ nuclear energy generating facilities provide a significant economic impact to South Carolina and North Carolina according to a new study commissioned by the Carolinas Nuclear Cluster.
In the Carolinas, the nuclear industry tops 37,000 jobs, more than $2 billion in payroll, earned income of more than $4.7 billion and more than $750 million paid in state and local taxes.
Total impacts are from employment associated with the generation of electricity at seven nuclear stations in North Carolina and South Carolina, and employment at the Savannah River and Barnwell sites. Researchers used purchases and payroll data from these businesses in their evaluation.
Our nuclear cluster is both an important source of energy to residents and businesses, as well as a major player in Carolinas’ job and income creation, says Mark Henry, study researcher and co-coordinator of the Regional Economic Development Research Laboratory at Clemson University. Henry adds, This study does not count the out-of-Carolinas nuclear energy work by large engineering firms in the cluster, so the study estimates of the economic impacts are quite conservative.
The nuclear energy industry provides positive economic impact through its payroll and supply chain purchases. These business relationships span the world. Our engineers and energy experts routinely do projects in other nations, bringing back dollars to the Carolinas, says Mark Fecteau, Westinghouse managing director of Global Growth and Innovation. Fecteau is also the current chairman of the Carolinas Nuclear Cluster.
The cluster is encouraging additional suppliers to locate and grow inside the Carolinas. The group is holding information sessions in the Carolinas to encourage local businesses to supply the industry. Examples of businesses in the nuclear supply chain are industrial supply firms, valve manufacturers, motor and pump makers, design firms, maintenance companies and services such as security and laboratories.
The Carolinas Nuclear Cluster started in 2007. Duke Energy played a catalytic role in team building for the cluster, which now has activities across business, educational and governmental organizations. The cluster works under the umbrella of SC’s Council on Competitiveness, also known as New Carolina. New Carolina is a public-private partnership working to increase per capita income and enhance South Carolina’s economic competitiveness through a cluster development strategy, spurring growth of diverse industry clusters such as tourism, transportation, distribution and logistics, engineering and textiles.
The economic impact study was made possible through a grant from AdvanceSC, a limited liability corporation established by Duke Energy and managed by an independent board, to support economic development in the Carolinas.
FACT SHEET
The economic impact study outlines four critical areas of impact of the nuclear power industry:
1. Current Jobs
In N.C.: Direct 3,822 and Total 9,256
In S.C.: Direct 14,986 and Total 28,074
Two States: Direct 18,808 and Total 37,330
2. Current Labor Income
In N.C.: Direct $0.323 billion and Total $0.451 billion
In S.C.: Direct $1.324 billion and Total $1.846 billion
Two States: Direct $1.647 billion and Total $2.297 billion
3. Current Other Property Income
In N.C.: Direct $0.973 billion and Total $1.085 billion
In S.C.: Direct $1.088 billion and Total $1.276 billion
Two States: Direct $2.061 billion and Total $2.361 billion
4. State and Local Tax Revenues
In N.C.: Total $0.314 billion
In S.C.: Total $0.437 billion
Two States: Total $0.751 billion
Well-paying jobs:
• In the study, a plurality of employees earn between $75,001 and $100,000.
• Second in frequency is the group that makes between $100,001 and $150,000 per year.
Nuclear energy in the Carolinas:
• Nuclear energy’s share of total electricity generation: 30.8% in NC and 51.4% in SC.
• Combined, North and South Carolina have more than 11% of the nation’s nuclear capacity.
• There are 12 reactors at seven plant sites producing electricity in the Carolinas.
New plant construction would bolster figures (Projections by an Oxford Economics study on added impacts over the next 20 years from new nuclear plant construction and operations):
• Construction Peak – 54,300 people; Operations Phase – 17,200 people
• Projected new income: Construction Peak – $4.1 billion; Operations Phase – $1.7 billion
