INSIDE // THE NEXT-GEN BMW X4 // THE SOCIAL MEDIA CONUNDRUM // YOUR HIDDEN MARKETING TEAM
FEBRUARY 23, 2018 | VOL. 7 ISSUE 8
The Future
( is hands-free )
Rethink Robotics’ “Sawyer” is one of several collaborative robots used by automotive researchers and students at Clemson University’s Vehicle Assembly Center in Greenville. Will Crooks/Upstate Business Journal
THE RUNDOWN |
TOP-OF-MIND AND IN THE MIX THIS WEEK
VOLUME 7, ISSUE 8 Featured this issue: BMW introduces next-generation X4.........................................................................4 What does tax reform mean for your business?.................................................... 11 Meet your hidden marketing team............................................................................16
The most recent renderings for the proposed AC Hotel by Marriott in the Camperdown development at 305 S. Main St., Greenville, reflect changes to the rooftop feature; additional guest rooms, which result in a change of elevation along Main Street; and changes to exterior materials. Read more on Page 5.
WORTH REPEATING
“The human element in manufacturing is not going away.” Laine Mears, Page 8
“Social media is a conundrum.” Laura Haight, Page 14
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VERBATIM
On the box office “Results like this go beyond anything anyone ever could have hoped for.” Dave Hollis, president of global distribution at Disney, on the opening weekend (Friday-Monday) of “Black Panther,” which earned an estimated $235 million.
INFORMATION YOU WANT TO KNOW
| NEWS
MANUFACTURING
Sport Vehicle Unveiled BMW Group unveils next-generation X4 that will be built in the Upstate TREVOR ANDERSON | STAFF
tanderson@communityjournals.com BMW Group’s X4 Sports Activity Coupe is getting a makeover. The German automaker on Wednesday, Feb. 14, introduced the second generation of the popular crossover, which is one of four models produced exclusively at its plant in Spartanburg County. BMW said the 2019 X4 is expected to hit dealerships in July. “We’re excited that production of the all-new BMW X4 will begin soon,” said Sky Foster, spokeswoman for Spartanburg County-based BMW Manufacturing Co. “In December, BMW Group Chairman Harald Krueger called 2018 the ‘year of the X.’ Plant Spartanburg will be a major contributor to this X model offensive. We’ve already introduced the new X3, new X4 production begins soon, and production of the all-new X7 will begin at the end of this year. There is plenty to be excited about at BMW.” BMW Manufacturing Co. is the birthplace of BMW’s X3, X4, X5, X6, and soon-to-be X7 models. It will end production of the first-generation X4 in March. More than 200,000 X4s have been assembled at the Upstate plant since the vehicle’s launch in 2014. “With its extrovert design, versatile driving properties, and dynamic character, the first ever mid-range Sports Activity Coupé in the premium segment has built up an impressive fan community within just a little over four years,” BMW said in a statement.
With this model, BMW once again created “a new category of vehicle,” the company added. “Since its launch, other manufacturers have been inspired by this fascinating concept of a mid-range Sports Activity Coupe for the premium segment.” BMW described the X4 concept as a fusion of the “hallmark” features of its X models with the “sporting elegance” of a coupe. The all-new X4 will feature “significantly enhanced driving dynamics, standout exterior design accentuating the car’s sporting instincts, a further refined premium ambiance in the interior, state-of-the-art driver assistance systems, and leading-edge connectivity technologies,” the company said. BMW said the next-generation X4 will eventually be available in seven variants including the four-cylinder gas xDrive20i and xDrive30i, four-cylinder diesel xDrive20d and xDrive25d, and six-cylinder diesel xDrive30d. The company said two M Performance models, the six-cylinder gas M40i and six-cylinder diesel M40d, will be added to the lineup. BMW also introduced a six-cylinder diesel version of it next-generation X3. That variant is the X3 M40d. BMW of North America LLC also introduced pricing for two versions of the new X4 that will be available initially in the U.S. The prices start at $50,450 for the 30i and $60,450 for M40i. The company touted the new X4’s sportier proportions, wider tracks, latest generation suspen-
sion settings, lower center of gravity, and improved dynamics. BMW of North America said the model will also boast a range of new standard safety features, including Active Protection, which initiates protective measures when an accident is imminent. The standard Active Guard includes “frontal collision warning, city collision mitigation with braking, pedestrian warning with
city braking, and speed limit information,” the company said. Standard Navigation comes with a large 10¼-inch display with multiple ways to interact, including a touchscreen, iDrive Touch Controller, and cloud-powered intelligent voice touchscreen. The new X4 also has a larger panoramic moon roof, and a threezone climate control system.
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RETAIL
Blue Moon Specialty Foods will open expanded location in downtown Spartanburg A blue moon will soon rise in downtown Spartanburg, and this one will be chocked with an array of delicious sauces, seasonings, fresh foods, and fun. Chris “Wishbone” Walker and his daughter, Molly Walker Cashman, plan to open the new 3,700-square-foot home for their growing local venture Blue Moon Specialty Foods on Monday, Feb. 26, at 130 S. Church St. “We are super excited,” Cashman said. “We’re not new at this. Dad’s been doing it since 2006. We really hit a growth spurt that coincided with the growth in Spartanburg. We’re excited to serve the community. … We think this is going to give our brand more visibility. There are a lot of opportunities here.” Walker and Cashman said the new store will help them continue to grow the commercial side of the business while giving them an opportunity to become an anchor destination in downtown. The space will feature a market, deli, bakery, commercial kitchen, kid’s area, cookbook corner,
dine-in space, and more. Downtown patrons will be able to grab breakfast and juice, tea, or coffee from Spartanburg-based Little River Roasting Co. and Mozza Roasters. Hot sandwiches, soups, quiche served by the slice, wraps, salads, and a variety of sides will be available at lunch. Blue Moon’s offering, Cashman said, will include baked goods, breakfast bowls, and singleserve meals made from scratch. A focal point of the new space is a display wall created from the former flower shops shelves that will allow customers to build their own gift baskets with local products, such as Colonial Milling grits, Sallie’s Greatest jams, and Dottie’s Toffee. Artwork and handcrafted items from several area vendors will also be for sale. “We want to be a staple in the community and
an inviting place for people to come together,” Cashman said. Walker has a plot at the Spartanburg County Foundation’s Community Garden next door, where he will grow and pick many of the fresh herbs for his recipes. He will continue to source ingredients from his home garden. Cashman said the owners could host cooking classes and other events in the space. The company’s wholesale business spans from the Upstate down to Florence, but Blue Moon ships all across the country. Its products are available in Lowes Foods, Ole Timey Meats locations, the Hub City Co-op, Inside Irwin’s at Irwin ACE Hardware, Tate Meatworks, and Brown’s Meat Market, among other locations. The store will operate from 7:30 a.m.-6:30 p.m. Monday through Friday, and from 10 a.m.-4 p.m. on Saturday. –Trevor Anderson
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UBJ | 2.23.2018
INVESTMENTS
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INFORMATION YOU WANT TO KNOW
| NEWS
MBAe DEVELOPMENT
Newest renderings for the AC Hotel submitted to Greenville DRB The most recent renderings for the proposed AC Hotel by Marriott in the Camperdown development at 305 S. Main St. have been submitted to the City of Greenville Design Review Board Urban Panel. The application for a certificate of appropriateness for the Auro Hotels project cites changes to the rooftop feature that was previously approved; additional guest rooms, which result in a change of elevation along Main Street; and changes to the exterior materials. Architectural drawings show a plaza-level bar, a rooftop bar overlooking Main Street, and the addition of an exterior water wall feature near the entrance. The DRB Urban Panel meets March 1 to discuss this application. –Ariel Turner
FINANCE
South State Bank makes top 15 list of 100 largest banks For two consecutive years, South State Bank has ranked in the top 15 of Forbes magazine’s list of 100 largest banks in America. This year, the bank ranked No. 14. “We are pleased to be recognized as one of the top 15 banks in the nation. This recognition is a result of the hard work and dedication of our team members, who serve our 700,000 customers from Virginia to Georgia,” said John F. Windley, president and CEO of South State Bank. “In 2017, we completed two acquisitions, crossed the $10 billion regulatory threshold, and reported strong financial results. We plan to build on this exceptional progress and success in 2018 and beyond.” Headquartered in Columbia, South State Corporation (NASDAQ: SSB) is a financial services company with over $14 billion in assets. Serving customers since 1934, South State Bank is the company’s primary subsidiary and offers consumer, commercial, mortgage, and wealth management solutions in the Carolinas, Georgia, and Virginia. –Melody Wright
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NEWS |
INFORMATION YOU WANT TO KNOW
COLUMN
The Spark Happenings in Upstate Biz with Trevor Anderson
Spartanburg leaders have devoted a lot of time and energy to talking about the community’s momentum in recent years. But last week, a new voice had something to say about the county’s quest to become a hub of growth. And it was notable, because for the first time in this reporter’s experience, that voice came from outside the city. Ed Good, a Greenville developer who is now a partner in the redevelopment of downtown Spartanburg’s historic Aug W. Smith building, was speaking to a group of about 20 Urban Land Institute Carolinas representatives who participated in a sold-out tour of Spartanburg as part of the larger conference being held in Greenville last week. “There used to be a time where Spartanburg’s most talented people were
moving away to work. Now, people are staying here,” Good said. “That has completely changed this market.” In the past four years, there have been major economic development announcements, new dining and retail ventures, historic renovations, and national and regional sporting events. Public art projects; public-private partnerships; the Northside Initiative; and the new five-year vision plan, OneSpartanburg, have all infused the community with a new kind of cultural vitality. For those of us who call Spartanburg home, we know there’s still much work to be done. But it’s especially encouraging to see individuals from outside the city taking notice.
BMW auto exports grow SC economy For a fourth consecutive year, German automaker BMW’s Spartanburg County plant was the largest automotive exporter in the U.S. BMW Manufacturing Co.’s 2017 exports were valued at $8.76 billion, according to the U.S. Department of Commerce. Even more notable, of the 272,346 X models the plant exported to more than 140 worldwide markets this year about 87 percent were shipped through the Port of Charleston. More good manufacturing news for the Upstate this week came with the announcement that South Carolina remained the country’s top exporter of tires fueled by several companies, including Greenville-based Michelin North America.
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U.S. Department of Commerce data showed the state accounted for 16 percent of the country’s passenger vehicle and 31 percent of its tire exports in 2017.
Top Upstate industrial park gets some love Lockhart Power Co. announced Feb. 12 it will gift $135,000 in utility license tax credits for road enhancements at Tyger River Industrial Park (TRIP) North in Spartanburg County. TRIP North is the 887-acre northernmost tract of the 2,250-acre industrial park owned by Greenville-based Pacolet Milliken Enterprises off Highway 290 in Moore. Pacolet Milliken opened the park for development in 2014, investing heavily in infrastructure in order to make it shovel-ready for new projects. The park has netted several large economic development projects, including Toray, Ritrama, Kobelco,
Sterling CPI, and Magna Seating. Those projects have resulted in nearly $2 billion in new investment and the creation of hundreds of jobs, and park officials report that more world-class companies continue to come knocking. Continued infrastructure improve-
ments, such as road enhancements, will only help that trend.
Gov. Henry McMaster has SC manufacturers’ backs With the support of Gov. Henry McMaster, nuisance lawsuits against manufacturing companies
| NEWS
in the Palmetto State could soon become a thing of the past. On Feb. 13, the governor signed a bill into law that protects S.C. manufacturers from being found a public or private nuisance if they are following all “pertinent laws, licensing regulations, and local ordinances.” Championed by Rep. Mike Forrester of Spartanburg and backed by other members of the General Assembly, as well as officials with several companies and the Upstate Chamber Coalition, the bill is expected to spur economic growth, attract further investment, and create jobs. “One thing we always want to convey to people looking to invest in our state is that they know what they’re getting when they come to South Carolina,” McMaster said. “They’re not going to be vexed with unnecessary complaints and lawsuits.”
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COVER |
CLEMSON & GREENVILLE TECH
manufacturing
Clemson University partners with Greenville Technical College to prepare students for the age of robotics
the future
From left to right: David Clayton, executive director at the Center for Manufacturing Innovation; Laine Mears, Vehicle Assembly Center director and BMW SmartState Chair in Automotive Manufacturing at Clemson University; Joerg Schulte, manager of the BMW liaison office for Research and Innovation and adjunct professor at Clemson University
WORDS BY ANDREW MOORE | PHOTOS BY WILL CROOKS American manufacturing has experienced remarkable growth over the past two decades thanks to the development of new technologies such as 3-D printing, robotics, and advanced analytics. However, Clemson University is already working to prepare students across the region for the next wave of manufacturing innovation. The university has partnered with Greenville Technical College to launch the Vehicle Assembly Center, a 4,000-square-foot research and development facility that will enable faculty, students, and companies to collaborate in learning and developing advanced manufacturing techniques and technologies. “We are embarking on a new model where academia and industry can drive compelling research while simultaneously defining a new education paradigm as students at the graduate, undergraduate, and technical 8
UBJ | 2.23.2018
college levels collaborate on full-scale manufacturing projects and fortify each others’ learning,” said Laine Mears, BMW SmartState Chair in Automotive Manufacturing at Clemson University. Mears added that the center’s capital investment of $500,000 came from both private and public investors, as well as BMW Manufacturing Co. and Siemens. The center, which is part of Clemson’s International Center for Automotive Research and located in Greenville Tech’s Center for Manufacturing Innovation, will feature a full vehicle assembly line, joining lab, sub-assembly lab, embedded devices lab, collaborative robotics center, and autonomous factory vehicles. It will be led by Mears, who has over a decade of experience in the automotive industry and is considered an expert on how manufacturers can use sensors and data to
improve quality and build cars more efficiently. Mears said the new facility may help address some of the automotive industry’s biggest manufacturing challenges. Researchers, for instance, can cause assembly lines to temporarily pause production when conducting tests at local facilities. The center, however, will eliminate that problem by giving them their own three-station assembly line to experiment without the pressure of being on a factory floor. The center could also help manufacturers across the state combat the ongoing skills gap, according to Knudt Flor, president and CEO of BMW Manufacturing Co. “A highly-skilled, well-educated workforce is essential to meet the challenges of the next generation of vehicles,” Flor said. “The Vehicle Assembly Center and its project-based learning approach promise to
CLEMSON & GREENVILLE TECH
prepare a workforce with the skills needed to be successful in the premium automotive industry.” More than 1,800 manufacturers currently call the Upstate home, according to Upstate SC Alliance. Manufacturing accounts for $13.3 billion, about 22 percent, of the region’s nearly $60 billion gross regional product. According to the U.S. Department of Labor, the industry supports 107,837 jobs regionally, which comprises 21 percent of the Upstate’s workforce not including state and federal government jobs. But the skills gap is widening, and over the next decade, 2 million of the projected 3.4 million manufacturing jobs expected to come online will be unfilled, according to the Manufacturing Institute and Deloitte Consulting LLP. The Vehicle Assembly Center plans to initially accept 100 students between Clemson University and Greenville Tech, according to Mears. A large portion of the center’s research will be conducted by faculty and students in Clemson’s College of Engineering, Computing, and Applied Sciences. Greenville Tech students, on the other hand, will be enrolled in manufacturing training programs. Mears added that industry partners like BMW Manufacturing Co. and Siemens may also send employees to the center on a regular basis to help researchers develop assembly line improvements and provide an industry perspective for students. Keith Miller, president of Greenville Technical College, said including tech students in the center’s research will better prepare them to operate state-ofthe-art technology on the assembly line so they will need less training once they are in jobs. “As our advanced manufacturing students work with Clemson’s engineering students on real-world projects, the teams share ideas and collaborate as they will in the workplace. This experience better prepares them for their careers,” he said. The Vehicle Assembly Center will house various research projects that explore advanced sensing systems, autonomous driving, human-robot interaction, intelligent manufacturing, and more, according to Mears. One such project will seek to create a robot that can install a nearly 20-pound
| COVER
Rethink Robotics’ “Sawyer” is a singlearm robot capable of inspecting automotive parts, retrieving tools, checking the security of a spark plug cable on an engine, and more. Photo by Will Crooks.
Will Crooks / Upstate Business Journal
Rise of the Robots Industrial robots have long been used by manufacturers to perform repetitive tasks with consistency and precision. There are currently more than 1.5 million robots in factories and warehouses across the globe, with about 260,000 in the U.S. alone, according to a report by the Manufacturing Institute and PricewaterhouseCoopers, a multinational accounting research firm based in London. Global robot sales hit 294,312 units in 2016, according to a recent report by the International Federation of Robots. The automotive industry brought in more robots than any other industry in the U.S., accounting for 70 percent of North American industrial robot shipments in 2016, with $1.2 billion dollars spent on the machines. Annual shipments of industrial robots are set to see double-digit growth globally through 2025, when nearly 1 million units are expected to ship, according to ABI Research. But more robots could mean fewer jobs for humans. For every new industrial robot that was introduced into the workforce between 1993 and 2007, six human jobs were eliminated,
according to a study released earlier this month by the National Economic Research Bureau. Luckily, an increasing number of manufacturers across the globe are beginning to outfit their assembly lines with collaborative robots, which are designed to improve production by physically interacting with human workers. From 2016 to 2025, the global revenue of collaborative robotics shipments are expected to hit a compound average growth rate of 49.8 percent, compared with 12.1 percent for industrial robots and 23.2 percent for commercial robotics, according to a report by ABI Research. Global revenues for collaborative robots hit $292 million last year. However, by 2025, that figure is set to exceed $1.23 billion. “Industrial robotics has been a critical component of advanced manufacturing for many decades, but with collaborative robotics, automation and cooperation between man and machine will move out of production onto the factory floor and into the warehouse,” said Rian Whitton, a research analyst at ABI Research. -Andrew Moore
2.23.2018 | upstatebusinessjournal.com
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COVER |
CLEMSON & GREENVILLE TECH
Clemson mechanical engineering graduate student Doug Chickarello demonstrates a wireless EEG headset that researchers plan to use for a cognitive study of assembly activities.
alternator on a car as it moves down the center’s three-station assembly line. It could reduce fatigue and injuries caused by repetitive motion. Another project will look to continue the development of an autonomous robot that’s capable of transporting an individual’s belongings as they navigate the factory floor. The robot, which resembles a miniature shopping cart, was created by graduate students at CU-ICAR. It was first unveiled to the public in November 2017. “Our focus is developing robots and wearable devices that help workers on the assembly line. It could be a robot following a worker around with tools or a robot that’s capable of double-checking the worker’s job. This is the new robotics for advanced manufacturing,” Mears said. “A lot of people are concerned about robots taking their jobs, but an assembly line will never be fully automated.” Mears said researchers at the Vehicle Assembly Center may also get the chance to test out virtual reality and augmented reality systems. Augmented reality superimposes computer-generated holographic images on a user’s view of the real world through smart glasses. Virtual reality projects immersive images that users can interact with through a headset. Both systems have exhibited a wide range of capabilities on the assembly line, according to Mears. BMW Manufacturing Co., for instance, has run a pilot program at its facility in Spartanburg since 2014 to see how Google Glass can improve 10
UBJ | 2.23.2018
the quality control of its pre-series vehicles as they make the transition from prototype to full production. The company’s analysis center usually runs a complete check of each pre-series vehicle to ensure the required premium quality of all vehicles in the subsequent series production. The glasses, which use augmented reality, now allow staff members at the center to add photos and video sequences to their written reports. In addition to robotics, Clemson University and Greenville Technical College also plan to build a small research and development space for composite materials at the Vehicle Assembly Center. Composites are used as alternatives to traditional steel frames to make cars weigh less and get better gas mileage, according to Mears. “Efforts toward process automation are driving demand for new skills. The industry is looking for a workforce with information and systems integration experience,” Mears said. “The human element in manufacturing is not going away: It is getting smarter, more agile, and increasingly plugged into this evolving internet of things.”
“We are embarking on a new model where academia and industry can drive compelling research while simultaneously defining a new education paradigm as students at the graduate, undergraduate, and technical college levels collaborate on fullscale manufacturing projects and fortify each others’ learning.” Laine Mears, director of Clemson University’s Vehicle Assembly Center
The Vehicle Assembly Center will feature a full vehicle assembly line, joining lab, sub-assembly lab, embedded devices lab, collaborative robotics center, and autonomous factory vehicles.
NEWS AND TIPS FOR YOUR PERSONAL BOTTOM LINE
| YOUR MONEY
The Long-Awaited Correction Has Begun The recent market correction feels different, but is it?
By CAMP R. WYNN CFA, principal & trust officer, Colonial Trust
The S&P 500 hit an all-time high Jan. 26. By midday Feb. 9, it was trading 11.5 percent below its high. Corrections of 10 percent are a typical market occurrence. The S&P 500 has had 36 corrections of 10 percent since 1950. This correction feels different in two ways. First, we have not seen a correction in some time. Prior to last week, the market had not seen a 3 percent correction since the presidential election or a 5 percent correction in more than 400 trading days. The market averages a 5 percent correction about every four months. Second, the speed of this correction has been jarring. The market moved from all-time highs to a 10 percent correction in fewer than 10 days. A long period of no downside volatility, followed by extreme downside volatility, makes this feel different. It is logical to ask, “Is this different?” To answer this question, we first need to understand what caused this correction. The lack of a correction and strong market results meant the market was ripe for a pullback and only needed a catalyst. The catalyst came Feb. 2, with an increase in average hourly earnings of 2.9 percent, which was above expectations. This strong number caused markets to consider the possibility of higher inflation, which leads to higher interest rates and tighter monetary policy from the Federal Reserve. Low interest rates are good for stocks and all risk assets, and high rates are not. This signal of inflationary pressures caught the market off guard, and anticipation of higher interest rates served as the catalyst for the correction. Every correction has its own aspect that makes it different. In this correction, the distinction was investors betting the days of steady and predictable market increases with no volatility would always continue. There were securities created to allow investors to profit from this lack of volatility. It created a self-reinforcing cycle in the derivatives market where investors sold volatility, thereby driving down the price of volatility, allowing them to profit from the falling volatility — rinse and repeat. Like all financial innovations, this strategy worked until it died of its own weight. The most publicized example of this was an
investment that profited from a decrease in the index that measures volatility (the VIX). The ticker of this security was XIV. This security began 2016 at $50.29 and reached an all-time high of $145 on Jan. 11 before falling to $5.37. This short volatility trade has worsened this correction because the players in this trade must unwind their positions, creating wild swings in the market. For example, on Feb. 6, the Dow moved between positive and negative 27 times in a day. Corrections are always frightening, and when coupled with the unknowns of this volatility trade and the wild swings it’s creating, this correction is especially jarring. This has prevented long-term investors from coming back into the markets at cheaper prices. There is a collective sentiment of waiting until things settle out before getting back into the market.
percent growth in corporate earnings in 2018. Expectations for economic fundamentals have improved over the past few months. A byproduct of improving expectations is higher interest rates. The economy and the market have become accustomed to the support offered by low interest rates since 2009. The justification for low rates has been tepid growth, making it reasonable to expect higher rates to accompany stronger growth. The market will digest higher rates and higher inflationary pressures, and the Fed will manage monetary policy to prevent excessive inflation. As I examine the fundamentals, the only change over the past month is quicker growth and slightly higher interest rates, which I don’t believe will increase to a level that will end this expansion in the near term.
During a correction, it is helpful to take a step back and see if economic fundamentals have changed. The fundamentals are strong and improving. Real GDP growth in 2017 was 2.3 percent, and the second half was stronger than the first. Unemployment is 4.1 percent, and the U.S. economy created 2.17 million jobs last year. Business and consumer sentiment remains high. Companies in the S&P 500 reported record earnings in 2017. The strong economy and tax cuts have analysts forecasting more than 25
I think it wise to take a long view of markets and economic fundamentals. Portfolios should be managed when your view of the economy-at-large changes, not by short-term changes in the market. While we have not seen a correction in some time, they are a part of the market and should be periodically expected. I believe that in time, economic growth and earnings, not short-term investor sentiment and volatility, will determine the course of stock prices. 2.23.2018 | upstatebusinessjournal.com
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THE TAKEAWAY |
NOTES FROM THE BEST TALKS YOU MISSED
A Tax Reform Review Early returns show C-corps and international companies most impacted by tax reform By DANIELLE BESSER public relations coordinator, Upstate SC Alliance
What: What Does Tax Reform Mean for Your
Business? (presented by GreerWalker, Nexsen Pruet, and Upstate SC Alliance)
Where: Upstate SC Alliance, 124 Verdae Blvd., Fifth Floor Conference Room
Who was there: Upstate SC Alliance
investors and middle-market companies
Feature Presentation: Barry Leasure and Rick Reames
“Did we really get tax reform this time?” asked GreerWalker partner Barry Leasure as he opened a presentation to middle-market companies on Feb. 13. “In parts, we did, if you’re a C corporation or if you’re working internationally. For other small or midsized businesses or flow-through entities, I’m not so sure it’s much of a difference.” The event was the first in a Middle Market Outreach series hosted by the Upstate SC Alliance to connect companies with information, support, and resources for key business growth topics. Origins of the Tax Cuts and Jobs Act The 2017 Tax Cuts and Jobs Act, the first federal tax code overhaul since 1986, is intended to make the United States a more competitive business environment. According to the Organization for Economic Co-operation and Development (OECD), the U.S. had the highest combined federal and local tax rate among developed nations. “That was a problem of our competitiveness as a nation,” Leasure said. Previously, the U.S. tax rate was 39 percent. France was second-highest at 34 percent; the average excluding the U.S. was 25 percent; and Ireland offers the lowest with 12.5 percent. International provisions Encouraging repatriation of funds was another driver, with the goal of encouraging U.S. economic growth from 2 percent to 3 percent. “Before, if you were a U.S. company, any money you made all around the world, you were taxed on. You got a credit for anything you paid over there — since all the other nations had a lower 12
UBJ | 2.23.2018
tax rate, what the companies would do was set up an entity headquartered in those other nations, and all of their profits and the money would stay there,” he explained. The shift to a hybrid territorial tax system is one of the most important reform components for businesses. “Now, if you’re a U.S. company over in Ireland, and you pay the tax in Ireland, you don’t have to pay it in the U.S., and you can bring income back to the U.S. as well for free,” he said. Past earnings that were subject to taxation can now be brought back subject to a one-time 15.5 percent rate.
Barry Leasure, partner with GreerWalker CPAs & Advisors, discusses federal tax reform with middle-market companies at an Upstate SC Alliance event on Feb. 13.
C-corp versus S-corp For larger C-corp companies, the tax benefits are more apparent, with a 14 percent reduction in the maximum tax rate, Leasure said. They also maintain state income tax deductions. For those filing with S-corp status, where business income flows through to individual owners, the water is a little murkier. More often, smaller companies fall into this category. The previous Domestic Production Activities Deduction was eliminated, which was a benefit to companies in the manufacturing and construction sectors. However, pass-through business income is allowed a 20 percent deduction of “qualified business income” for those who earn $315,000 or less. For those who earn more than 315,000, a business must meet a W-2 threshold to get the deduction — and even then, some service entities would not be eligible. “This is where it gets a little complicated, and we’re going to have to get some clarity on that,” Leasure added. Business benefits Under the new regulations, 100 percent of purchases of qualified machinery, equipment, and fixtures made between Sept. 27, 2017, and Jan. 1, 2023, can be written off. This can be a boon to companies looking to upgrade fleets or transition to new technologies, though it does not apply to real estate transactions. The threshold for taxpayers using the cash method has increased from $10 million to $25 million, another change that’s good for small to midsize companies.
Additional considerations Companies may also notice that some familiar deduction opportunities have been eliminated. Take the deduction for entertainment, amusement, or recreation – which previously was a 50 percent deduction – or the deduction for meals provided for the employer’s convenience. Another change has greater impact on densely populated metropolitan areas: Employer-covered parking or transit expenses will now be reported as a taxable fringe benefit on an employee’s individual filing. Previously, these expenses were a write-off for employers and were not taxable for employees. Where do federal and state tax rates intersect? Following the federal discussion, Nexsen Pruet member Rick Reames — who previously served as director of the S.C. Department of Revenue — offered insights about how the federal reform will impact state filings. The goal of reform, he said, is to broaden tax bases while lowering tax rates — which, for South Carolina, could mean $250 million more state revenue collected from more payers. Exact impacts remain to be seen, as the General Assembly has not yet acted to conform the state’s tax code to the federal. “Accountants generally want to see it earlier in the year every year, because they are looking for what they are doing,” Reames said. “This year, we have not had conformity yet, and the big issue is: What does South Carolina conform to? Does it pass conformity as it has in the past, and have a broader tax base, with the same rates — which means $250 million more goes into the state coffers, or does it give some rate relief? Does it tie to all the federal provisions or to some of them?”
MOVERS, SHAKERS AND DISRUP TORS SHAPING OUR FUTURE
| INNOVATE
Fear and the Subtle Draw of the Bandwagon Too often in business, we choose the path of imitation to limit potential failure
In many ways, the web is one of the most paradoxical CEO, ipsoCreative realms of business — and life. On the one hand, the web is remarkably accessible. It doesn’t require membership, certification, or a particular race, gender, or socioeconomic status. On the other hand, the web is remarkably inaccessible in that it is vast (and therefore overwhelming), cluttered (and therefore confusing), and ever-changing (and therefore bewildering). It’s easy and difficult. It’s fun and frustrating. It’s positive and negative. It represents the best of humanity and the worst of humanity. Its egalitarian nature simultaneously encourages innovation and stifles it. It allows for individuality but crushes it in a sea of imitators. The web may allow for unparalleled access to information that allows you to determine how to set yourself apart. But increasingly it simply facilitates sameness. The bandwagon is a vortex on the web. The chaotic and overwhelming clutter of the web causes us to want to take a safe path. Rather than taking a risk on doing something new, we resort to the safety of what everyone else is already doing, whether that “something” has proved effective or not. We then find ourselves in a pattern of following, a pattern of imitating, and a pattern of mediocrity that deepens its ruts, making it more and more challenging to change course with each passing day. This subtle tyranny of the bandwagon is an increasing challenge for businesses. On the surface, it might seem that the use of the word “tyranny” is a bit of an overstatement. And it would be if not for a singular deep underlying reason. But first, let’s start with why the bandwagon has such a strong pull on us despite no one’s aspirations to be on it. By BRENT WARWICK
insidiously, we justify our mediocrity by executing with a high degree of quality an idea that is low in quality. For instance, we may perfectly design a website. But the quality of the idea is low because we settled on merely imitating what everyone else has already designed. The execution was high, but the concept was low, and mediocrity was unintentionally embraced.
FEAR Like many things in life, underneath our “unwilling” willingness to embrace imitation and mediocrity is fear, the primal root that drives us. Doing something new is easy when there isn’t much at stake. An Instagram image is low-risk, considering it doesn’t cause us much trepidation. But a $100,000 brand video carries with it great risk, and the fear of being reprimanded will drive us to choose the path of imitation in order to limit our exposure to potential failure. On the scale of our decision-making with fear on one side and the bandwagon on the other, we most often choose the bandwagon. And once we make that choice, it’s easier to make it again and again and again. We eventually find ourselves so risk-adverse that the effort to change course becomes too great. The tyranny of the bandwagon is subtle and more irresistible than we care to admit.
IMITATION We may not like to think of ourselves in this way, but we crave a life of ease. And the pace of business is such that we can barely keep up. Combine those two things and we find that the most expedient path is one that is already worn. We don’t necessarily set out to copy the look of our competitor’s website, but being intentional requires time and energy that conflicts with our desire for ease. We don’t necessarily aspire to create a product that pretty much already exists, but it’s faster to get to market if we do. And we don’t want to style a photo for a post just like everyone else’s, but when we see the number of followers that brand has, the temptation is too great. We may aspire to be unique, but our internal desires and the external realities of a fast-paced world suck us into a pragmatism that leads to sameness.
MEDIOCRITY And despite our protests to the contrary, we’re really OK with this sameness. We’re OK with the middle. We’re OK with moderate quality. We’d like to think otherwise, but it creeps up on us. Every day we are faced with decisions about how we will spend our time and where we will exert our effort. The higher the volume of decision points, the higher the probability of choosing the most expedient option. We soothe our minds by thinking, “I did the best I could under the circumstances.” Or more 2.23.2018 | upstatebusinessjournal.com
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DIGITAL MAVEN |
THE TECHNICAL SIDE OF BUSINESS
The Social Media Conundrum Goal setting and evaluating analytics are keys to solving the social media puzzle
By LAURA HAIGHT president, portfoliosc.com
How’s business? It’s a simple question. But when you’re talking about marketing your business on the internet, the answer can be a lot harder to put your finger on. An IBM survey in 2015 found that 96 percent of businesses are using social media as a marketing tool. And even though over the years algorithms have changed to make it harder and more expensive for businesses to get content in front of a wider audience, use of these platforms has stayed strong. To be on top of your social media game, you have to be on multiple platforms, posting several times a day. CoSchedule, a social media aggregator, has analyzed reports from 14 companies and put together a comprehensive look at the optimum number of posts, types of posts, and times of day to post on the most popular platforms. Even with that information, posting-schedules change depending on your goals. Social media is a means to an end, and what you do really does depend on what you want to get out of it. The Harvard Business Review points to a failure to establish real goals for social media as a significant failing that afflicts more than half of the medium (300-plus employees) to large (more than 500 employees) businesses that participate in social media. Going hand-in-hand with the lack of established goals is an inability to track results. If these problems befall bigger businesses, it’s a good bet that the yeoman’s share of small businesses are in the same boat.
Social media is a conundrum. It is both so simple your 16-year-old can gain hundreds of likes posting selfies with an iPhone, yet so complex that your business or nonprofit can spend hundreds of man hours and have not much tangible to show for it. There are many issues that go into straightening out social media efforts, from goal setting, to matching platforms to the desired audience, to multimedia posting strategies. But what we’re going to talk about here is analytics. Analytics are usually reserved for business pages. On Facebook, you may have to start a new business page if you’ve been using a personal page or group. That has its own set of problems if you have a lot of likers. Twitter analytics are available for individuals as well as businesses. And Pinterest makes
it easy to convert your personal page to a free business account so you can use analytics. If you have a webpage, you can have Google Analytics. They are free, easy to get, deep, and customizable. Once you have data from your platforms and your website in hand, here are five things to look for that will go a long way to helping you understand your audience, the effectiveness of your messages, and whether they’re accomplishing your goals. Although it’s always a bigger number, disregard impressions. Sure, it looks good, but it is largely meaningless. This is the number of times a post had the possibility of being seen by someone. With Facebook, for example, it’s the number of times
The Community Foundation of Greenville bridges philanthropy and purpose by offering planned giving services, donor-advised funds and administering charitable endowment funds in support of a better community.
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UBJ | 2.23.2018
THE TECHNICAL SIDE OF BUSINESS
Social media is a conundrum. It is both so simple your 16-year-old can gain hundreds of likes posting selfies with an iPhone, yet so complex that your business or nonprofit can spend hundreds of man hours and have not much tangible to show for it.
Facebook allowed your post into people’s news feeds. Think about how you breeze through your news feed and you’ll see what I mean. Focus instead on the primary engagement metrics – clicks, likes – and the holy grail of retweets and shares. Likers and followers are great if your goal is to grow your footprint and expand your reputation as an influencer or thought leader. But sales is another matter. If you are not geographically limited, go for it. But if your store is in Greenville and your likers are in Indiana – well, you see the problem Download the reports so you can customize the data. Group your posts by goal area, market segment, or whatever other metric you want meaningful information on. Then you can aggregate the results and know that posts about Widget A got more engagement than posts about Widget B. But wait, did we only post twice about Widget B and 10 times about Widget A? A little basic skill with a spreadsheet can reveal a lot of information. Percentages are helpful because straight-up numbers are often misleading. For example, taking your total reach (that’s the number of unique individuals who had the chance to see your posts) and total engagement gets you an engagement percentage. What’s a good engagement percentage? You’d be surprised how low the bar is. Over 1 percent engagement rate is considered good. Of course, that presumes you are happy with the size of your audience. Look at what is working in terms of your content. Posting links to other content (curating) is an easy way to get a lot of post activity. Do your readers bite on that? Are photos or videos you generate getting a lot of hits? And how about posts from your own website or blog? Facebook gives you a lot of fielded (sortable) data on this. Finally, if you are using social media to increase donations (nonprofits) or gain newsletter subscribers, or to sell something on your website, you need to follow the breadcrumbs across the internet. Google Analytics will tell you what brought visitors to your website, at what page they started and at what page they left, how long they were on your site, and how many pages they viewed while they were there. If you accept donations, you can learn how many landed on your submission page and how many actually received a confirmation page (that tells you they made a donation). There’s a ton of information in just a couple of exported datasheets. And it’s easy to get lost in it. Having goals helps you narrow down what you want to look at. It takes some working at it to feel comfortable drawing conclusions, especially for those of us who aren’t trained in data analysis. But being able to match your efforts to your goals and chart progress is what business intelligence is ultimately all about. It’s the answer to the question: “So, how’s business?”
2.23.2108 | upstatebusinessjournal.com
| DIGITAL MAVEN
TOGETHER, A BETTER WAY FORWARD.
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STAYING ON MESSAGE WITH YOUR CLIENTS AND YOUR COLLEAGUES
Uncover Your Hidden Marketing Team The gatekeepers, technicians, and cheerleaders – these 3 figures will boost your marketing results How does the marketing process usually work in your owner, X Editorial organization? Maybe it goes roughly like this: Leadership decides (or maybe agrees with marketing) that it’s time to share your idea or product with the world. The marketing team works on messaging and focus areas. Delivery channels are considered and budgeted. A manager or senior executive outlines general selling points. Marketing creates; leadership approves. Then, it’s out into the world with your ad campaign, rebrand, hashtag, billboard, video, blog, or what have you. Finally, marketing tracks feedback or other metrics. All good. But is it as great as it could be? Well, some important yet overlooked people could have helped improve the process at every stage. These are members of your “hidden” marketing team, people whose official titles belie the important marketing information they access and generate every day. Your marketing efforts can be more relevant, memorable, accurate, and focused when the following three types of people are included. They’re integral to your organization, but either forgotten or underutilized when it’s time for public communication. By JENNIFER OLADIPO
Let OUR TEAM make YOUR VISION come true
THE GATEKEEPERS These are the people at the front lines of dealing with your target audiences. They answer phones, greet visitors, and open mail, often giving them more touch points with people and information than anyone else in your organization. As a result, they have a particular awareness about your position in the market. For instance, if a gatekeeper often must say, “Sorry, you’re looking for the other ABC package store. We sell boxes,” that might signal a need for marketing to redouble efforts toward owning the right keywords on the internet, or to increase visibility with your target audience. Gatekeepers also know something about how your audience communicates. Do visitors or callers tend to be chatty and informal? You might consider adopting that tone in your communications. Do many people call for specific information they couldn’t find on your website? It could be time for marketing to do some proactive problem-solving on the site. Has there been a recent increase in a certain type of solicitations? There could be an important shift happening in the market. Book time with your gatekeepers to ask.
THE TECHNICIANS These are your product developers, engineers, and designers. Or, they might be your program managers or coordinators. Either way, they know the optimal conditions for success (or failure) for whatever you deliver to your audience. They keep abreast of trends in your sector, and they know what your competitors are doing — and how they’re doing it. What’s more, technicians love talking about what they do. Tapping technicians gives marketing the opportunity to do more than showcase the features of a product or service. Technicians’ information can help generate ideas for ongoing engagement that helps customers make the most of their investment with your organization. Technicians also have good fodder for content marketing that addresses potential pain points, or helps customers maintain confidence in their decision to do business with you. Sometimes, featuring technicians in marketing material works even better than simply gathering their input.
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UBJ | 2.23.2018
Cheerleaders are out there face-to-face with your target audience. That means they are privy to some crucial data that no technology can capture (yet). These are your direct sales teams or fundraisers. They often connect with your audience on a deeply personal level, paying attention to every detail of the responses they receive. From cheerleaders, marketing can glean crucial information, such as frequent questions that arise in the sales process, or points of confusion that need deeper explanation. They know, or can ask directly, why clients say “yes” or “no” to offers. Buyers will often share with cheerleaders what they like about your competition, or how many other options they’ve considered. With this kind of information, the marketing team can better understand the different points in the buying cycle at which they need to reach the audience; they’ll know what to say, and when. With cheerleaders’ emotional intel, you can deliver marketing that truly matters to your audience. Gatekeepers, technicians, and cheerleaders can be helpful anywhere in the process, from conceiving ideas to measuring outcomes. In the end, they help create and deliver strong, relevant, and even welcome messages to your audience. What’s more, marketing informed by these insiders conveys the most authentic image of your organization, and no one else’s.
PLAY-BY-PLAY OF UPSTATE CAREERS
HIRED
HIRED
HIRED
PROMOTED
| ON THE MOVE
HIRED
RAEANNE CLABEAUX
ELIZABETH L. DINNDORF
RAMONA FARRELL
STEPHANIE FLYNN
WILLIAM ROYCE PRICE
Has been hired by HRP Associates Inc. as a project scientist. Clabeaux is a graduate of Clemson University, where she received a Master of Science degree in environmental engineering. She will be responsible for technical support of projects focusing on environmental health and safety compliance, sustainable energy systems, and engineering and ISO management systems.
Has been promoted at Scott and Company LLC as in-charge accountant. Dinndorf has been with the firm since 2017. She received a Bachelor of Business Administration in accounting in 2007 from Winthrop University and is a member of the AICPA and the SCACPA.
Has been hired as director of GreerWalker LLP, a regional CPA and advisory firm. Farrell holds an MBA and is a certified family business advisor, certified fraud examiner, and certified financial crimes investigator. Farrell has more than 20 years of experience in the industry.
Has joined Smith Moore Leatherwood LLP as a partner. Flynn is a litigation attorney, focusing primarily on liability, toxic and mass torts, personal injury, and transportation litigation in both federal and state courts. Flynn received her bachelor’s degree from College of Charleston and her law degree from the University of South Carolina School of Law.
Has been hired as mortgage loan originator by the Greenville team at Homestar Financial Corporation. Price previously served in the U.S. Army for 25 years. He holds a Bachelor of Arts degree in government from Campbell University and several accolades from his time in the Army.
VIP Infinity Marketing welcomes eight interns for spring 2018: Amy Hayden (Clemson University), Emily Lady (Clemson University), Jaclyn Adair (Clemson University), Amanda Walker (Clemson University), Brad Mogavero (Furman University), Alan Lewis (USC Upstate), Amy Hubbard (North Greenville University), and Q Ramirez (Bob Jones University). Iron Tribe Fitness Greenville is expanding to two new locations in the Atlanta market. The new locations, Iron Tribe on Ponce and Iron Tribe West Midtown, will be operating under the Iron Tribe Greenville ownership team. Crawford Strategy brings on three students as spring 2018 interns: Diana Davidson (Clemson University), Reed Piller (Clemson University), and Anne Gaskins (Clemson University).
ZACH FREEMAN
WILLIAM JOHNSTON
Southern First Bancshares Inc., holding company for Southern First Bank, has announced several promotions: Zach Freeman to senior vice president, team leader; William Johnson to senior vice president, team leader; Paige Kilton to senior vice president, internal audit; Amy Baxter to vice president, client officer; Kimberly Macklanburg to vice president, client officer; Bethany Nadeau to assistant vice president, client officer; and Lauren Greene to assistant vice president, client officer.
CONTRIBUTE: New hires, promotions, & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com. 2.23.2018 | upstatebusinessjournal.com
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#TRENDING / NEW TO THE STREET |
INFORMATION YOU WANT TO KNOW / NEW FACES OF BUSINESS
THE WATERCOOLER 1. Tajh Boyd blends a tireless work ethic and ‘team player’ mentality on behalf of a new Clemson-based real estate development
2. Newest renderings for the AC Hotel submitted to DRB
3. Former Blinds America on Laurens Road building to be redeveloped
4. Retail and office space available at Hartness Village Center
5. RealOp purchases first Florida property for $21M
*The Top 5 stories from last week ranked by Facebook reach
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1. Oconee Federal Savings and Loan Association (“Oconee Federal”) has recently opened a new location at 103 Regency Commons Drive, Suite B2, Greer. CONTRIBUTE: Know of a business opening soon? Email information to aturner@communityjournals.com.
EVENTS YOU SHOULD HAVE ON YOUR CALENDAR
DATE
EVENT INFO
WHERE DO I GO?
HOW DO I GO?
Better Business Bureau of the Upstate’s Power Breakfast Series: Award-Winning Business of Integrity Winners Take the Stage
Greenville Water “Community Room” 517 W. Washington St. 8–9:30 a.m.
Cost: $20 For more info: www.go.bbb.org/2GkI5hL; hope@upstatesc.bbb.org
Greenville Chamber of Commerce’s Human Resources Law Update
Hyatt Regency 220 N. Main St. 8 a.m.–4:30 p.m.
Cost: $295 For more info: hhyatt@greenvillechamber.org, http://bit.ly/2sBbMbB, 864-239-3714
3/14
SCBIO Life Sciences Boot Camp
University of South Carolina Arnold School of Public Health 921 Assembly St., Columbia 8:30 a.m.–12:30 p.m.
Cost: Free to SCBIO members and employees of SCBIO member companies. Available for $75 to nonmembers. For more info: http://www.scbio.org
Thursday
3/15
Greenville Chamber of Commerce’s Netnight
Peace Center Huguenot Loft 300 S. Main St. 5:30–8 p.m.
Cost: $25 investors, $50 general admission For more info: www.bit.ly/2BwUTy1; 864-631-6596; nikawhiteconsulting@greenvillechamber.org
Monday
Greenville Chamber of Commerce’s Gubernatorial Series Lunch feat. Catherine Templeton (R)
Greenville Marriott 1 Parkway E 11:30 a.m.–1 p.m.
Cost: $40 investors, $80 general admission For more info: kbusbee@greenvillechamber. org; www.bit.ly/2EabPxs
Thursday
3/22
Ten at the Top’s PIQUE Young Professionals Summit
Southern Bleachery 250 Mill St., Taylors 1:15–6:30 p.m.
Cost: $25. Advanced registration required. Space limited. For more info: www.thePIQUE.org
Monday
Gubernatorial Lunch series feat. Gov. Henry McMaster (R)
Greenville Marriott 1 Parkway E 11:30 a.m.–1 p.m.
Cost: $40 investors, $80 general admission For more info: kbusbee@greenvillechamber. org; http://bit.ly/2EFDFF1
Tuesday PRESIDENT/CEO
2/27
Mark B. Johnston mjohnston@communityjournals.com
UBJ PUBLISHER
Ryan L. Johnston rjohnston@communityjournals.com
| PLANNER
Tuesday
3/13
EXECUTIVE VICE PRESIDENT Susan Schwartzkopf susans@communityjournals.com
MANAGING EDITOR
Emily Pietras epietras@communityjournals.com
Wednesday
ADMINISTRATIVE EDITOR
Heidi Coryell Williams hwilliams@communityjournals.com
COPY EDITOR Rebecca Strelow
STAFF WRITERS
Trevor Anderson, Cindy Landrum, Andrew Moore, Sara Pearce, Ariel Turner
MARKETING & ADVERTISING SALES MANAGER
3/19
Emily Yepes
MARKETING REPRESENTATIVES John Clark, Donna Johnston, Jonathan Maney, Heather Propp, Meredith Rice, Caroline Spivey, Liz Tew
CLIENT SERVICES
Anita Harley | Rosie Peck | Jane Rogers
ART & PRODUCTION VISUAL DIRECTOR Will Crooks
4/16
LAYOUT
Bo Leslie | Tammy Smith
VICE PRESIDENT OF OPERATIONS Holly Hardin
ADVERTISING DESIGN
Kristy Adair | Michael Allen
EXECUTIVE ASSISTANT Kristi Fortner
HOW TO CONTRIBUTE STORY IDEAS:
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MARCH 2 INTERNATIONAL ISSUE
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
UBJ milestone
UBJ milestone jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport
MAY 4 COMMERCIAL REAL ESTATE ISSUE
1988
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Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff
Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com
JUNE 1 INNOVATION ISSUE Got any thoughts? Care to contribute? Let us know at upstatebusinessjournal.com/submit.
1997 Jackson Dawson launches motorsports Division 1993
1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.
Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.
Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during
Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood. He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit. After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980. In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he
learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage. In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar. “Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said. Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders
>>
with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.” In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.” Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning. The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet. Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s
2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space
1998
2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003
1998 Jackson Dawson moves to task industrial Court
also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design. Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series. “In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.” Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept
2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running
him going and growing his business over the years. He is passionate about giving back and outreach to non-profits. The company was recently awarded the Community Foundation Spirit Award. The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family. As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business. “From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.” Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”
2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people
2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award
pro-bono/non-proFit Clients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School
CoMMUnitY inVolVeMent & boarD positions lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board, Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board
November 1, 2013 Upstate bUsiness joUrnal 21
20 Upstate bUsiness joUrnal November 1, 2013
AS SEEN IN
NOVEMBER 1, 2013
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