At the 2026 SC Competes Spring Summit, officials launched SC Defense, a new statewide initiative designed to strengthen South Carolina’s role in the national defense economy.
SC Defense brings together the combined efforts of SC Competes’ SC Logistics, SC Tech, and SC Aerospace clusters, recognizing that the industries supporting national security, from advanced manufacturing and aviation to technology and logistics, are deeply interconnected.
Officials said that by aligning these existing clusters and working alongside external partners the new initiative aims to help South Carolina companies better navigate defense contracting, strengthen supply chains, and expand the state’s defense economy.
The launch took place during the luncheon panel, “Growth in Defense,” where leaders from aerospace defense suppliers joined the former chairman of the SC Military Base Task Force to discuss the opportunities and challenges facing companies working in the rapidly evolving defense sector.
“We’re seeing more, or hearing of more, and we’re getting pulled into more conversations with prospects with not just your traditional defense company or defense manufacturer, but companies looking to reorient into the defense technology because they can see some of those dual commercialization opportunities,” said Susie Shannon, president and CEO of the South Carolina Council on Competitiveness (SC Competes).
“So I’ve got a civilian customer, but hey, the feds can also be my customer, too. So how do I build a product or reorient, reshape a product,” that can fit both civilian and military uses, she said.
The Spring Summit panel featured leaders from Maher Advanced Manufacturing and TL+CO who highlighted that demand across the defense sector is growing rapidly, particularly in aerospace, avionics, advanced materials, and unmanned systems. Officials said that in many cases, demand is outpacing supply, creating opportunities for manufacturers and suppliers across the state.
Organizations like the SC Apex Accelerator provide SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) assistance to SC companies, allowing small businesses to develop new technologies with federal funding while building relationships within the defense ecosystem and boosting suppliers into the defense supply chain.
South Carolina already plays a major role in the nation’s defense infrastructure. With eight major military installations, a top-10 concentration of service members, and billions in Department of Defense (DoD) contract activity, the state is a critical hub for military readiness and advanced manufacturing.
SC Competes is working to connect companies with these growing defense opportunities. The Spring Summit this year reintroduced defense into long-standing B2B matchmaking sessions, in partnership with the South Carolina Department of Commerce.
Multiple defense buyers joined the sold-out business-to-business matchmaking event, which paired buyers with South Carolina-based suppliers from logistics, technology, and aerospace.
South Carolina has been the eighth-largest recipient of DoD contracts nationally, with contract spending growing 30 percent in recent years — from $2.7 billion in 2017 to $3.5 billion in 2024, according to SC Defense.
Officials said South Carolina’s strengths in advanced manufacturing and composites position the state well to meet this demand. While opportunities are growing, entering the defense supply chain can be challenging, and companies must navigate complex federal regulations, cybersecurity requirements, and certification processes, the officials said.
They said one of the most significant upcoming requirements is Cybersecurity Maturity Model Certification (CMMC) compliance. A growing share of defense contracts will require CMMC compliance, with that number expected to increase significantly in the coming years.
As defense demand grows, officials said South Carolina will need strong workforce pipelines in areas such as advanced manufacturing, composites, machining, and cybersecurity, while also connecting transitioning service members with civilian careers in the sector.
Officials said with the announcement of its new bachelor’s degree in aviation and business management (set to launch in fall 2026), Winthrop University proved to be an ideal host for the SC Competes Spring Summit.
The event brought together aerospace and aviation leaders from across the region, fostering valuable connections not only among industry partners but also with students eager to enter the field. PSA Airlines, Ranger Aerospace, and several other South Carolina-based aerospace firms participated in the Student/Mentor Ask-Me-Anything session, highlighting the collaborative strength of the SC Aerospace cluster beyond state lines.
Industry engagement continued at the B2B matchmaking event, where Stevens Aerospace and Defense Systems, Greenville-Spartanburg International Airport, and Rock Hill-York County Airport joined as participating buyers. The event, in partnership with the South Carolina Department of Commerce, paired buyers with South Carolina-based suppliers from logistics, technology, and aerospace companies.
With an economic impact of upwards of $38 billion as reported by SC Competes' 2024 SC Aerospace Economic Impact Study, the aerospace sector has evolved into a major pillar of the state's economy.
Since 2009, when Boeing selected North Charleston for its final assembly and delivery facility, the state's aerospace industry has soared. Officials said the driving force behind the success of this sector is the state's loyal, highly skilled workforce.
In another example, Lockheed Martin's Greenville site is the home of the F-16 Fighting Falcon production line and provides nose-to-tail aircraft modification, maintenance, repair, and overhaul services for both military and civil aircraft.
Lockheed Martin's Greenville site is located at the South Carolina Technology and Aviation Center (SCTAC), formerly Donaldson Air Force Base. SCTAC says it is the Southeast’s only business park dedicated to serving the needs of automotive, aerospace, and advanced manufacturing.
Since opening its doors in 1984, Lockheed Martin has provided sustainment services to thousands of aircraft, including the C-130, P-3, KC-10, and C-9. The site is also home to a skilled, flexible workforce of Lockheed Martin aviation technicians, engineers, program managers, and other experienced personnel.
In a 2024 interview posted on its website, Greenville site lead Trish Pagan said relocating the F-16 production line from Fort Worth, Texas, to Greenville in 2017 significantly enhanced company operations. She said the strategic move allowed Lockheed Martin to provide comprehensive life-cycle coverage for the F-16, from production to sustainment, solidifying Greenville's role in aviation innovation and excellence.
Pagan also said “When residents hear the F-16s, I want them to feel proud of Greenville's vital contribution to global security. Those sounds signify the critical work happening in our community to support missions around the world. It's a testament to Greenville's role in protecting freedoms and driving innovation on a global scale.”
Elsewhere, Eaton, an intelligent power management company, in 2025 announced it would expand its aerospace manufacturing operations in Charleston County. The company’s $46 million investment will create more than 50 jobs, state Commerce officials said.
In the aerospace industry, Eaton is a leading provider of hydraulic, fuel, oxygen, fluid and air conveyance, electrical, motion control, and engine solutions, as well as aftermarket service and support, for commercial and military aircraft.
Eaton will construct a new facility adjacent to its existing facility, located at 7230 Cross County Road in North Charleston, to expand its capability in additive manufacturing, machining, assembly, and testing to support a new program win and increase capacity and readiness for future program wins. The new facility will produce complex hydraulic pumps and motors serving U.S. commercial and defense aerospace platforms.
Operations are expected to be online in 2028.
Also last year, Woodward Inc., a global leader in energy control solutions for aerospace and industrial markets, announced it selected Spartanburg County to establish a new manufacturing operation in South Carolina. The nearly $200 million investment will create approximately 275 jobs.
Founded in 1870, Woodward is a global company specializing in the design, manufacture, and service of energy conversion and control solutions for aerospace and industrial applications. The company’s products are used to increase efficiency and reliability in a range of challenging environments, including aviation, power generation, marine and on-highway transportation, and oil and gas operations.
Woodward plans to build a 300,000-square-foot precision manufacturing facility located within Smith Farms Industrial Park in Greer. The new factory will focus on the production of servo-hydraulic actuation systems used in aircraft flight control.
Operations are expected to go online in 2027.
And ATI Inc., a global aerospace and defense leader, in 2025 celebrated its growth in South Carolina with a new operation in Chesterfield County. At full production capacity, the facility will operate with a workforce of nearly 70 new jobs.
ATI’s new facility, located at 340 Industrial Park Lane in Pageland, produces titanium alloy sheet. This material is critical to airframe manufacturers, bringing strength and durability to aerostructure components and assemblies. The company announced long-term agreements with Airbus and Boeing for materials produced at this facility.
Headquartered in Texas, ATI produces materials and solutions for the aerospace and defense markets, as well as applications used in the electronics, medical, and energy industries. The company’s existing presence in South Carolina includes a specialty materials production facility in Richburg.
And the McNAIR Center for Aerospace, Innovation and Research in Columbia brings together a multidisciplinary team dedicated to advancing South Carolina’s knowledge-based economy.
Working alongside industry partners, government agencies, and University of South Carolina faculty, the center leads research in composites, advanced manufacturing, thermoplastics, automation, predictive analytics, 3D printing, and digital transformation.
McNAIR also develops the next generation of skilled engineers by involving students directly in industry-led projects across aerospace, defense, cybersecurity, and artificial intelligence.
Earlier this year, in a major step toward strengthening America’s defense capabilities, Clemson University unveiled the National Security Institute (CU-NSI), an initiative to drive innovation and prepare the next generation of military talent.
Officials said that through research, workforce development, and strategic partnerships, the CU-NSI will strengthen U.S. defense readiness and fuel technologies that will define future warfare.
The officials said the NSI will align the university’s established expertise with defense-industry collaboration across four priority areas:
Advanced materials: Researchers develop next-generation materials that make defense systems lighter, stronger, and more resilient in the harshest conditions. Several also produce specialized optical fibers used in high-power laser systems and other advanced technologies.
Digital engineering: Clemson researchers are advancing mobility through digital engineering, virtual prototyping, and secure, data-driven design that speeds development and reduces risk. The work brings safer, more capable platforms into service more quickly.
Hypersonics: Research supports faster development, testing, and deployment of next-generation capabilities.
Artificial intelligence: In addition to the AI research Clemson is conducting in collaboration with the military, researchers also are building secure digital systems that deliver decision advantage without compromising safety or integrity. Their work protects critical infrastructure and defense networks from evolving threats, including data exploitation and cyberattacks.
In a series of state briefs developed by the Center for Regional Economic Competitiveness (CREC) to support the government’s defense strategy, officials said South Carolina is a strategically positioned defense manufacturing state, anchored by naval research infrastructure in Charleston, a globally significant aerospace production corridor in the Upstate region, and a federally funded nuclear materials complex.
It said the state has built a “dense ecosystem” of aerospace OEM production, composites manufacturing, energy resilience research, and port-based military logistics.
“These assets, combined with coordinated workforce and incentive programs, create a scalable platform for (defense) Manufacturing Innovation Institutes (MIIs) seeking production-aligned pilots and supplier modernization engagement in the Southeast,” it said.
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