SRS produced $2.2B economic impact in Aiken County region, new study shows

Colin Demarest, Aiken Standard, S.C.
·2 min read

Dec. 24—Operations at the Savannah River Site generated a $2.2 billion economic impact in a five-county swath last year, according to a recent study, which examined jobs and wages, taxes, and the knock-on effects of federal spending.

The regional boon would have likely been larger — as was the case in previous years — had it not been for the coronavirus pandemic, which continues to crimp economies the world over. The Department of Energy reservation, about 30 minutes south of Aiken, had a $2.4 billion influence in both 2016 and 2010.

"Economic growth for 2020 was sluggish in comparison to previous years because of the spread of the COVID-19 virus," reads the study, sponsored by the Savannah River Site Community Reuse Organization, a local nonprofit. "Public reaction to the disease, and lockdowns, caused a decrease in consumer spending and an associated decrease in jobs."

The Savannah River Site has long been an economic anchor for both South Carolina and Georgia — especially in communities close to its namesake Savannah River, like Aiken, Barnwell, Allendale, Richmond and Columbia counties.

The site has and continues to employ thousands, offering wages far higher than the average outside the fence and beyond the security checkpoints. Federal, state and private players at the Savannah River Site spent $1.8 billion in pay, benefits and other expenditures in fiscal year 2020, according to the study, of which $1.2 billion targeted the five counties.

Aiken Mayor Rick Osbon on Thursday said the Dec. 1 analysis reaffirms "just how important the Savannah River Site is to the economic vitality of this community."

The reported spending and workforce figures reflect, in general, an Energy Department installation in good health. And the site is expected to grow in the near future — return to its roots, some officials have said — as it tackles expanded national-defense endeavors, like plutonium pit production and more tritium extractions, and leans into cyber with an assist from nearby Fort Gordon.

The overall $2.2 billion impact represents 10% of the Aiken-Augusta region's gross domestic product, a measure of economic activity. Savannah River Nuclear Solutions President and CEO Stuart MacVean has described the Savannah River Site as both a "unique national defense asset for our nation" and a "huge economic development engine for the CSRA," citing its massive annual budget.

Osbon concurred this week: "The Savannah River Site has always been a strong economic driver for Aiken and the surrounding counties."