South Carolina Approves American-Made Steel Requirements for State-Funded Projects

South Carolina officials have approved guidelines requiring American-made iron and steel in certain state-funded construction projects, a move intended to support domestic manufacturers and workers.

The State Fiscal Accountability Authority approved the guidelines Tuesday, outlining how the law will apply to public works projects, including buildings, roads, and water and sewer systems.

The law, sponsored by state Rep. Richie Yow, applies to covered projects receiving state funding, even when the state pays for only part of the total cost. Projects managed by the South Carolina Department of Transportation are exempt because they already fall under federal Buy America requirements.

Supporters say the measure could boost demand for domestically produced materials and benefit South Carolina manufacturers, including companies operating facilities in the state.

However, domestic sourcing requirements could also raise construction costs or create supply shortages if manufacturers cannot meet demand. Imported materials may sometimes be less expensive, potentially increasing expenses for projects required to purchase American-made products.

The law includes exceptions when domestic materials are unavailable in sufficient quantities or when their use would increase a project’s total cost by more than 25%.

The safeguards are intended to prevent material shortages and excessive expenses from delaying construction.

The measure comes amid broader efforts to encourage domestic manufacturing, including federal tariffs on imported steel. South Carolina is home to steel industry operations, including facilities associated with Nucor and Commercial Metals Company.