INSIDE // SPARTANBURG’S BRAND RECOGNITION | NOTES FROM THE DRB | CYBER SOCIAL SECURITY
DECEMBER 15, 2017 | VOL. 6 ISSUE 50
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TOP-OF-MIND AND IN THE MIX THIS WEEK
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VOLUME 6, ISSUE 50 Featured this issue: Landrum’s Sarah McClure named SC Chef Ambassador....................................4 Camperdown, M. Judson, and more discussed at DRB......................................12 ‘Landing pad’ projects key to manufacturing expansion.................................. 22
Before Interstate 85 was built in the 1960s, Wade Hampton Boulevard was Greenville’s superhighway, serving as a key connection between Atlanta and Charlotte, N.C. The once-thriving area has lost its luster over the years, but community leaders are hopeful that Northpointe, an expansive development that will include a Harris Teeter grocery store, apartments, and commercial space, will help be the catalyst for revitalization of the area. Read more about the opportunities and challenges for redevelopment on Wade Hampton in this week’s Greenville Journal. Photo by Will Crooks
WORTH REPEATING
VERBATIM
“Spartanburg is most differentiated by its historic sites and museums, being a sports destination, and having the best craft beer/spirits and distilleries.” Page 6
“With the building that’s there today, we think we can turn it 180 degrees from a bland mass built in the 1970s.”
May the Force Be With You “Movies with such a high level of interest, demand, and secrecy are more sensitive to the flow of buzz, especially a film with a fan base as vast and opinionated as that of ‘Star Wars.’” Shawn Robbins, chief analyst at BoxOffice.com, on the difficulty of predicting opening weekend numbers for “The Last Jedi”
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RESTAURANT
Landrum chef Sarah McClure chosen as SC Chef Ambassador for 2018 TREVOR ANDERSON | STAFF
tanderson@communityjournals.com For a second consecutive year, a Spartanburg County chef will serve as one of South Carolina’s culinary ambassadors. Gov. Henry McMaster on Friday, Dec. 8, named Sarah McClure, chef and manager of Southside Smokehouse in downtown Landrum, to the list of the state’s four Chef Ambassadors for 2018. Chefs Kiki Cyrus with Kiki’s Chicken and Waffles in Columbia, Heidi Vukov with Croissants Bistro & Bakery and Hook & Barrel in Myrtle Beach, and Michelle Weaver with Charleston Grill in Charleston were also named to the list. The chefs were announced during a ceremony last Friday at the Statehouse in Columbia. “These four women are among the best and brightest culinary stars in our state,” McMaster said. “Being named as an S.C. Chef Ambassador
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Sarah McClure, chef and manager of Southside Smokehouse in Landrum, was named one of South Carolina’s Chef Ambassadors for 2018.
allows these chefs to shine a unique spotlight on not only their exceptional talents but also on the destinations in South Carolina where they live and work.” McClure will follow in the footsteps of fellow Spartanburg chef William Cribb, who, in 2017, became the county’s first selection to the list. Founded in 2014 by Gov. Nikki Haley, S.C. Commissioner of Agriculture Hugh Weathers, and the S.C. Department of Parks, Recreation, and
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Tourism (SCPRT), the Chef Ambassadors program highlights the Palmetto State’s locally grown crops and culinary talent. Each year, four chef ambassadors from across the state are chosen from a pool of nominees to attend events, perform cooking demonstrations, conduct educational discussions, and promote the offerings of the communities where they are based. “I am very honored,” said McClure, 31, originally of Landrum. “As a chef, it’s important to build relationships with fellow chefs, farmers, and others in the industry. That’s what I’m looking forward to.” “I’ve watched in amazement the growth in Landrum and the whole of Spartanburg County,” McClure added. “I can’t wait to tell that story to others outside of our community. Landrum, I think, is uniquely positioned to benefit from the food scenes in Spartanburg, Greenville, and Asheville.” McClure, who hails from a family of restaurateurs, graduated from Landrum High School in 2004. She attended Wofford College and earned a Bachelor of Arts in art history. While she was pursuing a master’s degree at the University of Georgia, McClure fell in love with food. She went to work at The National restaurant in Athens, Ga., where she learned from chef Peter Dale. In 2012, McClure moved back to Landrum to run the kitchen at her family’s restaurant. She said she has remained true to Southside Smokehouse’s menu composed of fare that ranges from classic American to Cajun and barbecue. But McClure has put her own stamp on the business with chef specials that incorporate fish or game, seasonal produce, and pastas. On their days off, McClure said she and her husband frequent their favorite dining spots in Spartanburg, which include Willy Taco, Miyako Sushi Group, and The Farmer’s Table. “Food is what I spend all of my extra time and money on,” she said. “Whenever we travel, we do a lot of eating. I might read about something, and I always try to think about how I can make it more accessible and affordable.” McClure said she once put a rabbit dish on the menu and was concerned that customers wouldn’t like it. “I put it with a nice mushroom cream sauce just to make it more appetizing,” she said. “It ended up being a huge hit.” McClure said she is excited to serve as a Chef Ambassador during the year that the Tryon International Equestrian Center will host the World Equestrian Games. The event is expected to bring more than 500,000 visitors to the region and have an estimated $400 million economic impact. “I think Sarah is awesome,” Cribb said. “Her family is awesome. The more we can do to get Spartanburg on the map, the better. It was an honor to serve as a Chef Ambassador. I wish her the best of luck during the coming year.” McClure is featured in the Hub City Writers Project’s new “Taste of Spartanburg” book, which was unveiled in November. “Spartanburg County’s food scene is really starting to make its mark,” said Chris Jennings, executive vice president of the Spartanburg Convention and Visitors Bureau. “We are so excited to have a Chef Ambassador in back-to-back years. This will create a lot of great exposure for the community and provide residents in other parts of the region a taste of the authenticity we offer.” SCPRT spokeswoman Kim Jamieson said this is the first year that all of the Chef Ambassadors chosen are female. “When we started this, one thing we wanted to focus on was highlighting the undiscovered communities in South Carolina,” Jamieson said. “I think it’s going to be a fantastic year.” 12.15.2017 | upstatebusinessjournal.com
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TOURISM
Study: Spartanburg’s brand awareness among travelers on the rise TREVOR ANDERSON | STAFF
tanderson@communityjournals.com Spartanburg County’s reputation as a destination for leisure travel is growing, but local officials will have to invest more money in marketing efforts if they hope to keep the momentum moving forward, according to a new study. Missouri-based H2R Market Research conducted its Spartanburg 2017 Brand Perception Research study. The firm’s objective was to measure how regional travelers view the county as a leisure destination and provide insight regarding how it compares to its own historic average and to other communities in the South. H2R said it interviewed 800 travelers within a 500-mile radius of Spartanburg for its research. Findings showed that Spartanburg’s aided
brand awareness increased to 76 percent, compared with its historical average of 67 percent. The county’s Visitor Growth Indicator (VGI), which measures a brand’s opportunity for growth, registered a score of 765, nearly double the size of the firm’s industry norm of 324. However, Spartanburg’s conversion rate, or market share divided by market potential, dropped to 13 percent, compared with its historical average of 16 percent. “We studied the marketing and we said, ‘You know what, let’s go test the branding,’” said Chris Jennings, executive vice president of the Spartanburg Area Chamber of Commerce’s Convention and Visitors Bureau (CVB). “We wanted to see what our real strengths and weaknesses are.” “This is research-based, so we’re not just throwing stuff at the wall to see what sticks,” Jennings added.
H2R conducted a study in 2016 that measured the impact of the CVB’s advertising on visitation, travel spending, and return on investment. The 2016 study found that tourism had a $17.4 million economic impact on the county, while the CVB invested $158,000 in paid advertising during the fiscal year. That means for every $1 spent by the CVB on advertising, there was a more than $110 economic impact. Overall, the CVB’s marketing reached 4.3 million households and resulted in 32,800 incremental trips, the marketing and media effectiveness study said. The branding study found that aided brand awareness was 74 percent in Chattanooga, Tenn.; 83 percent in Knoxville, Tenn.; 78 percent in the Raleigh and Durham, N.C., areas; and 69 percent among residents who live within 500 miles of Spartanburg.
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Spartanburg County is becoming a unique travel destination due to its historic sites and museums, sporting events, and craft beer scene, according to the H2R study. Photo by Will Crooks
Spartanburg’s advertising awareness increased to 12 percent, compared with an 11 percent historical level. During the past six months, travelers’ perception of Spartanburg has experienced a net change of 15 percent toward a “somewhat/much more favorable” opinion, according to the study.
The adjectives travelers most associated with Spartanburg included “friendly/welcoming, relevantly Southern, down-to-earth, and traditional,” the study said. Among a variety of choices, 68 percent of travelers indicated the most appealing brand position — the one that would most likely per-
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suade them to visit Spartanburg — was “History, Food & Fun,” according to the study. “Spartanburg is most differentiated by its historic sites and museums, being a sports destination, and having the best craft beer/spirits and distilleries,” H2R said in the study. H2R recommended the county beef up its advertising budget, test to ensure its advertising messages inspire visitation, and spend money on advertising in markets where travelers are most likely to come from. “Spartanburg’s VGI is quite large, and marketing ROI was excellent last year,” H2R said in the study. “However, both assisted ad awareness and conversion rates remain comparatively low. Stronger reach is needed, but this will likely require the investment of additional marketing funds.” Jennings said local officials will use the research to help improve marketing efforts during the coming year and in the future. He said advertising will focused on multiple media channels. “It’s a great time to visit Spartanburg,” Jennings said. “We are a very unique destination compared to other destinations of our size. … We’re making a lot of progress, and now we’re looking forward to taking it to the next level.”
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Duke Energy customer info likely compromised More than 300,000 Duke Energy customers in North and South Carolina may have had their personal and banking information stolen. Duke Energy announced on Tuesday, Dec. 5, that customers who paid a bill at one of the Charlotte, N.C.-based company’s 550 authorized walk-in payment processing centers between 2008 and 2017 may have been affected by a data breach. “We regret the frustration and inconvenience this issue has created for our customers who rely on our authorized walk-in locations to pay their monthly energy bills,” Lesley Quick, Duke Energy’s vice president of revenue services, said in a statement. The data breach only affects customers who paid by check or cash; it does not affect customers who paid
Riley Institute names Wilkins award winners Furman University’s Riley Institute has announced the winners of its David H. Wilkins Awards for Excellence. Rep. Weston Newton, R-Beaufort and Jasper counties, will receive the Award for Excellence in Legislative Leadership, and Maj. Gen. Charles F. Bolden, a former astronaut and administrator of NASA, will receive the Award for Excellence in Civic Leadership. The awards dinner will take place at Columbia’s Metropolitan Convention Center on Tuesday, Jan. 9. Newton, who was elected to the S.C. House of Representatives in 2013, is “known for working across the aisle on legislation that improves the lives of South Carolinians,” according to a press release. He is the chairman of the Legislative Oversight Committee and also serves on the Judiciary Committee. UBJ | 12.15.2017
with a bank card or another form of payment. Evidence of a data breach was uncovered in July when TIO Networks, a payment processing vendor, was purchased by PayPal Holdings Inc. The potentially compromised data includes names, addresses, Duke Energy account numbers and balances, and banking information, if a customer paid by check. Both Duke and PayPal said their own systems were not compromised. TIO is currently working with the companies it services to send letters to customers who were potentially affected by the data breach. The letter will include detailed questions and answers and a phone number for additional information. The company plans to offer 12 months of free credit monitoring to anyone affected by the breach and 24 months of free credit monitoring to anyone whose Social Security number was shared without authorization. –Andrew Moore
Bolden, who was born and raised in Columbia, spent 34 years in the Marine Corps, earning military decorations like the Defense Superior Service Medal and Distinguishing Flying Cross. He also spent 14 years as a NASA astronaut, orbiting Earth four times and deploying the Hubble Space Telescope. Bolden most recently served as the 12th administrator of NASA under former President Barack Obama. “At a time when civility in public discourse and cooperative bipartisanship are critical to making progress, South Carolina’s citizens look to their leaders to put aside differences and work together for the good of our state,” said Don Gordon, executive director of the Riley Institute. “Weston and Charles exemplify the kind of leadership that moves our state forward.” A reception will begin at 6 p.m. on Jan. 9, with the dinner and awards presentation following at 7 p.m. Tickets are $125 each and can be purchased by calling 864-235-8330 or visiting the Riley Institute website. –Andrew Moore
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Sonoco announces $2.7M packaging initiative with Clemson
Ellipsis Technologies releases app to combat form spam
Sonoco has partnered with Clemson University to develop new technologies and forms of packaging to improve the fresh food life cycle and combat waste. The Hartsville-based global diversified packaging company will contribute $1.725 million over a fiveyear period to the Sonoco FRESH (Food Research Excellence for Safety and Health) initiative, which aims to establish a multidisciplinary hub for innovation and research to advance fresh food packaging and distribution. Sonoco will also sponsor businessdriven research projects totaling $1 million. “Sonoco is committed to serving fresh brands, using packaging to tackle the challenges they face,” said Sonoco President and CEO Jack Sanders. “Optimizing fresh food packaging to extend shelf life and maintain quality makes fresh produce more accessible to communities, and helps brands and
Ellipses Technologies, a Greenvillebased web security company, has released a new Shopify app to help online retailers combat form spam. The app, called Shop Protector, allows websites to automatically detect human visitors and block unwanted traffic from bots, reducing the need for Turing tests – those codes, math problems, and puzzles that people must solve to prove they are human. “We developed the Shop Protector technology to solve the problems that our e-commerce clients had experienced using traditional techniques to detect bot traffic,” said Bill West, CEO of Ellipsis Technologies. Bots are computer programs designed by humans to perform automated tasks on the internet. Search engines like Google, for instance, use bots to catalog information from websites. But
retailers extend sales opportunities and eliminate food waste.” “Each year, the food industry loses $15.6 billion due to food spoilage at retail,” he added. “Modifying packaging design to extend shelf life by even one day can recover $1.8 billion of that loss — while feeding more people and reducing waste to landfills.” Sonoco FRESH is an extension of the partnership that created the Sonoco Institute of Packaging Design and Graphics at Clemson, which was created to “exploit the synergies that exist between the graphic communications and packaging science departments,” according to its website. The institute says it is the only university program in the country with a multidisciplinary approach to packaging as a core competency. –Andrew Moore
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hackers also use bots to perform malicious acts on the internet, from stealing credit card numbers from an online store to crashing entire servers. Many websites use Turing tests to combat malicious bots, West said. But the tests can frustrate customers and lead to lost sales. In fact, 3 percent of internet users log off immediately when they encounter a Turing test. Shop Protector, however, uses “proprietary algorithmic models” to identify and block malicious bot activity on a website within milliseconds, allowing human visitors to proceed without interference from Turing tests. “Our approach is unique in that it focuses on modeling human behaviors, rather than just spotting bot markers to clearly identify a human presence on the site,” said West. –Andrew Moore
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Seattle-based coffee retailer Starbucks plans to open a new store at 156 W. Main St. in downtown Spartanburg.
Starbucks plans to open first location in downtown Spartanburg Starbucks will apparently join downtown Spartanburg’s food and beverage scene. A banner bearing the Seattle-based coffee giant’s logo and the words “Coming Soon” was placed Thursday, Dec. 7, above the doorway of a space at 156 W. Main St. beside TJC Gallery near Morgan Square.
WE WON’T BE LATE FOR THE FUTURE.
The nearly 1,800-square-foot space has sat vacant since March, when its previous tenant, Pink on Main, relocated to 115 W. Main St. “We’re excited to share that we are in the early stages of bringing a location to downtown Spartanburg, and we anticipate an opening next spring,” Starbucks said Thursday in a statement. “We’re looking forward to being part of the community and will have further details to share as we get closer to the store’s opening.” Starbucks will have to compete with Spartanburg-based Little River Roasting Co.’s Coffee Bar, a popular local gathering spot, just down the street at 188 W. Main St. Abram and Heather Curtis, owners of the Greenville-based coffeehouse/ creamery concept Spill the Beans, plan to open a new store in spring 2018 in a 2,500-square-foot space on the ground floor of the Aug W. Smith Building at 174 E. Main St. near Denny’s Plaza. Jansen Tidmore, executive vice president of the Spartanburg Area Chamber of Commerce’s new Downtown Development Partnership, said he views the project as a positive for downtown. “With the new AC Hotel attracting a range of business and leisure travelers to downtown, Starbucks will allow us to serve more people,” Tidmore said. “This won’t gobble up the pie. It will grow the pie. I think both models will be sustainable and they will be able to feed off of each other.” “When an international company like Starbucks decides to plant its flag anywhere, I think it’s a sign that they believe in the market,” said Denise Mehl, co-owner of The Crepe Factory at 137 W. Main St. “Obviously, Starbucks sees the potential in downtown Spartanburg. We are pleased with the momentum in the community and hopeful that it will continue move in a positive direction.” –Trevor Anderson
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REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
ARIEL TURNER | STAFF
aturner@communityjournals.com |
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A proposed mixed-use building bordered by Duncan, Buncombe, and Whitner streets and Hampton Avenue will include first-floor retail, a restaurant space, apartments for rent, and townhomes. Rendering by Seamon Whiteside
Plans released for retail and multifamily development between Hampton Avenue and Buncombe Street Plans for the mixed-use new construction component of the BB&T building overhaul have been submitted to the city of Greenville in an application for designation as a planned development. The project was informally reviewed, with positive reception, at the Dec. 7 Design Review Board Urban Panel before it heads to the Planning Commission. The property owner, Charleston developer The Beach Co., announced in September it plans to turn the high-rise BB&T bank building at 301 College St. downtown Greenville into an apartment complex, and parking lots across the street will be the site of the new construction, which will include retail and possibly a grocery store, as well as apartment units and townhomes. Dan Doyle, a senior vice president with the developer, said the proposed mixed-use building bordered by Duncan, Buncombe, and Whitner streets and Hampton Avenue will contain 20,000 square feet of first-floor retail, which could be one user or multi-tenanted, a prominent restaurant space on the corner of Whitner and Buncombe, and 54 rental apartment units above that will range from 500- to 800-square-foot studios and one-bedrooms. The remainder of the planned project will be
36 townhome units ranging from 2,200 to 2,400 square feet that will extend the pattern of development from the adjacent Hampton-Pinckney area, Doyle said. The townhomes will line Whitner Street and Hampton Avenue, creating a pedestrian-friendly experience, he says. McMillan Pazdan Smith Architecture, who will be designing the townhomes for this project, also designed the townhomes one street over on Butler Avenue. Doyle says that decision was made specifically to maintain and continue the same architectural design of the neighborhood. Doyle says a final decision about whether the townhomes will be for sale or rental units has not yet been made. The scope of the project also includes adding street parking on Whitner Street and 90 parking spaces for the mixed-use building. The design for the current BB&T building, which will be transformed into an apartment building with more affordably priced units, has not yet been finalized, but Doyle says they are
Rendering by Seamon Whiteside
using the proximity to Heritage Green as inspiration. “With the building that’s there today, we think we can turn it 180 degrees from a bland mass built in the 1970s,” Doyle says. Doyle says plans include creative features that tie into the nearby cultural district, with the goal of making the area a gateway into downtown.
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REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
ARIEL TURNER | STAFF
A certificate of appropriateness was approved for the design of the latest stage of the Camperdown development with several conditions from the DRB. Rendering by Wakefield Beasley & Associates
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M. Judson Booksellers has submitted an appeal after an application for exterior signage was denied by the DRB. Photo by Will Crooks
December Design Review Board Urban Panel
The City Hall chambers were decked out in greenery and red poinsettias for the Dec. 7 City of Greenville Design Review Board Urban Panel meeting, which boasted one of the longer agendas of the year. On the docket were the next phase of the Camperdown development, an appeal of a previously made decision about signage on M. Judson Booksellers, a renovation of a building at 131 Falls St., and the Gather GVL shipping container food hall. An informal review of the new development adjacent to the BB&T building between Buncombe Street and Hampton Avenue capped the 2 1/2-hour meeting. An application for a certificate of appropriateness for exterior renovations at 656 S. Main St. was postponed by the applicant, McMillan Pazdan Smith, until the January meeting.
CAMPERDOWN A certificate of appropriateness for the design of the latest stage of the development at South Main and Broad streets was approved as presented with conditions that the developer, Centennial American Properties, come back to the DRB with the lighting 12
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UBJ | 12.15.2017
and landscaping plans surrounding the building, separately submit the terrace landscaping on the step back, consider the appearance of the service doors on the side, remove the keystones features, and keep the alternate cornice detail more in line with the modern design of the building. The proposed condo and office building would sit at 305 S. Main St., on the corner of Japanese Dogwood Lane, which Brody Glenn of Centennial American Properties said may become a pedestrian-only walkway leading to Falls Park. This project, since announced, has received considerable pushback from local conservation groups because of the potential effect on Falls Park, which has led to many revisions of the plan. Scott Park, land conservation director with Upstate Forever, spoke against the design during the public portion of the hearing on behalf of the Carolina Foothills Garden Club, Greenville Women Giving, and the Daniel-Mickel Foundation. Main concerns included the potential of the building to shade the green space on Japanese Dogwood Lane and the potential for odors around the shared waste manage-
ment area. The groups requested that the landscape plan include native canopy species. Panelists thanked Park and the groups for their input and indicated that the landscape plan would be submitted separately and that the location of the building on the north side wouldn’t likely cast a shadow on the existing green space. Glenn responded that one of the main goals of the project is to be conscientious about the ecological impact. One example given was that the water runoff from Main Street, which goes directly into the Reedy River, would be collected and filtered before it is put back in the river. As for the waste collection area, they’ll be as discreet as possible. “We all have trash,” Glenn said.
M. JUDSON BOOKSELLERS An application for exterior signage at M. Judson Booksellers, 130 S. Main St., which was previously denied by staff, was the subject for an appeal by the applicant, June Wilcox. Ultimately, the appeal was tabled until a subcommittee of DRB panelists Robert
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
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Cioffi said she is really excited to see this concept and to see this area of the West End activated. Fontaine joked that given the time of evening and the length of the meeting, she would’ve liked to see a menu for the new restaurants.
Mack Cross, principal with developer Four Oaks Property Group, said Gather GVL could be an “outdoor dining room” to complement Falls Park as the “outdoor living room.” Rendering by McMillan Pazdan Smith
INFORMAL REVIEW
Benedict and Danielle Fontaine can meet with Wilcox to work through the font choice for the proposed signage that would be attached to the historic building. Banners for Furman on Main and vinyl window decals were previously approved for usage, but the proposed large letters running above the front door and windows across the entire front of the building were the subject of much debate. Chairwoman Carmella Cioffi expressed concern about affixing anything of permanence to the building on the historic register. “I’m very hesitant to approve signage directly mounted to the building,” she said. “It’s a big concern for me.” Cioffi, along with the three panelists present, agreed that the bookstore does have a particular difficulty with visibility from Main Street, since there is no noticeable signage at pedestrian eye-level and the building is elevated and set back from regular foot traffic. Wilcox said that almost every day customers enter the store and comment they were not previously aware the bookstore, along with the Chocolate Moose Bakery and Furman on Main, were located inside. M. Judson has been in the former courthouse for three years. “I’m probably one of those people who walked in and said, ‘Golly, I didn’t know you were here,’” panelist Bogue Wallin said.
Cioffi said she was open to a different font treatment for the letters that would look more in line with the building.
131 FALLS ST.
The brightly colored shipping containers that will make up the structure are a welcome addition to the area near Fluor Field and across from the future South Carolina Children’s Theatre.
As part of the rezoning application with the City of Greenville Planning Commission, the proposed mixed-use development by the Beach Co. at the corner of Buncombe Street and Hampton Avenue was informally reviewed by the panel. The project, which will contain retail, restaurant, and apartment units, as well as townhomes, was positively reviewed. Fontaine said she was very happy the current “no man’s land,” which is so uncomfortable to walk around, will be developed, connecting the museums at Heritage Green to downtown.
The former Dunlop building at 131 Falls St. has been an eyesore for as long as he can remember, said the building’s owner Nathan Galbreath of Nelson & Galbreath LLC. Galbreath said the application for a certificate of approval for some exterior changes came as a result of wanting to make the building look better than the current “hodgepodge of windows.” Architect Chris Stone, of LS3P, said keeping the ADA-accessible entrance on the side of the building necessitates changing out the other windows and painting some to make the appearance more cohesive. The panel granted approval with the condition that the new anodized window frames match the existing frames.
GATHER GVL With very little discussion, a certificate of appropriateness for the design of the proposed shipping-container craft food and drink collective at 126 and 128 Augusta St. was approved. “Falls Park is the outdoor living room,” said Mack Cross, principal with the developer, Four Oaks Property Group. “This could be the outdoor dining room.” 12.15.2017 | upstatebusinessjournal.com
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THE MANUFACTURING ISSUE - VISION
MINUTE MAN How Greenville entrepreneur Bob Barreto is quietly disrupting the luxury watch industry WORDS BY ANDREW MOORE PHOTOS BY WILL CROOKS
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UBJ | 12.15.2017
THE MANUFACTURING ISSUE - VISION
W
hen it comes to wristwatches, Bob Barreto isn’t a fan of flashiness. “Some people get turned on by giant Hublot watches that are decked out in black and gold. That does absolutely nothing for me,” he says. “I like luxury, but I’m also a big fan of vintage. That’s the look I’m going for with my watches.” Barreto is the founder of Famiglia Vaglio, a Greenville-based startup that designs, manufactures, and sells luxury men’s watches. Earlier this month, the company released its inaugural line of Swiss-made timepieces: The Eterno, the first in a series of exclusive collector watches, and The Pilota, a sports watch. It’s a big departure for Barreto, who has spent much of his career working in business development and financial roles at Fortune 500 companies, such as Wells Fargo and Waste Management. He also currently serves as president and CEO of GBS Building Supply, a regional lumber and building supply company. But his love for luxury watches is deep. Barreto says at one time he owned several dozen
watches; now he has narrowed his collection down to half as many. He purchased his first “real” timepiece, a limited-release Longines Tank wristwatch, not long after being promoted to executive vice president of Iron Mountain Records Management in the 1990s. “It was the first time I had spent that kind of money on a watch, but it definitely wasn’t the last,” Barreto says. In 2004, Barreto relocated from Washington, D.C., to Greenville to start his “retirement job” as managing partner of The Norman Resource Group. He also started tinkering with automobiles as a “hobby.” When he ran out of garage space in 2012, Barreto turned to another mechanical pursuit: building his own wristwatch. Soon after, he was diagnosed with Parkinson’s disease, an incurable neurodegenerative disorder that primarily affects the motor system. It usually starts with a tremor in one limb and gradually spreads throughout the rest of the body. For Barreto, the tremor began in both of his hands. “I was extremely frustrated after the diagnosis, because my hands were no longer strong enough
or steady enough to build a watch,” he says. “I figured the next best thing for me to do was to start my own watch company.” But the transition from watch collector to company owner wasn’t an easy one. “I spent a year or two just learning about the materials. I even attended some glass-blowing classes to learn about the different types of glasses and sapphires,” Barreto says. “But I still think one of the biggest challenges was finding someone in Switzerland who could actually manufacture the watches for me.” Barreto eventually selected a custom builder in Geneva, but he still needed a design, so he teamed up with Sandy Bowers, a Greenville-based brand consultant and graphic designer. “The entire process took us about a year, but we actually got the first designs on paper in just two hours,” Barreto says. “I usually have a good idea of what I want. It’s just a matter of verbalizing it and getting it to Sandy. We work well together.” Vaglio watches are defined both by the high-quality materials used to build them and classical design, Barreto says. “These watches are
THE CHALLENGE: FINANCING A SMALL MANUFACTURING OPERATION Bob Barreto, like many small manufacturers, could face some fundraising challenges further down the road, especially considering his decision to manufacture watches in Switzerland. For more than 300 years, watchmaking has been one of Switzerland’s most identifiable industries. Recent studies from St. Gallen and Zurich universities show that consumers are willing to pay up to 20 percent more for “Swissmade” watches. But the country’s watchmaking industry has struggled over the years. In the 1970s, Switzerland’s watchmakers were almost put out of business when they refused to manufacture battery-powered quartz watches, which are much cheaper and far more reliable than most mechanical watches. While Japan and Hong Kong dominated the quartz watch market, many watch companies in Switzerland closed by the end of the 1970s. The number of workers in the industry plummeted from nearly 90,000 in 1970 to 47,000 by 1980, according to the Federation of the Swiss Watch Industry, a manufacturers group. In 1983, Swiss ASUAG decided to produce its own inexpensive line of quartz watches – Swatch. In less than two years, more than 2.5 million
Swatches were sold. But quartz wasn’t embraced by all Swiss watchmakers. Many companies, including Rolex and Patek Philippe, decided to market their expensive mechanical watches as luxury items steeped in tradition and Old-World charm, not as devices for keeping time. Sales rebounded over the years; exports have more than doubled since 2000, rising even in the years after the economic recession. A recent report released by the Federation of the Swiss Watch Industry shows that exports to the United States totaled 1,689,000 Swiss francs ($1,702,000) from January to October, down from $1,784,000 million in 2016. The U.S., however, was named the second-biggest export market in the first 10 months of the year. Globally, the figures showed that Swiss watch exports rose at the fastest monthly pace in more than four years in October. Shipments increased 9.3 percent to 1.85 billion francs ($1.87 billion) in October, the sixth consecutive monthly increase. Though the Swiss watch industry has recovered, it is facing a growing threat from smartwatches. Consulting firm Strategy Analytics Inc. reports that global smartwatch shipments reached 8.1
million units in Q4 2015, compared with 7.9 million Swiss watch shipments. It is the first time that smartwatches have out-shipped Swiss watches on a global basis. But as with quartz four decades ago, many Swiss watch companies have been slow to respond to the recent industry shift. Only 25 percent of watch executives actually consider smartwatches a competitive threat, according to a 2015 survey published by Deloitte, a New York-based accounting giant and professional services firm. Barreto says it’s misleading to compare Swiss watches to smartwatches, because they’re entirely different products. While smartwatches are meant to act as extensions of smartphones, Swiss watches are driven by fashion and a sense of tradition. “A high-quality piece owned for a long time tends to build memories of who bought it for the wearer, where it’s been worn, and the things experienced while wearing it,” Barreto says. “I wear my grandfather’s watch for good luck, a watch my daughter purchased for me when I miss her, a watch from my wife on special occasions, and a watch I bought with my son when I need a laugh. There’s something special about wearing a quality timepiece.” 12.15.2017 | upstatebusinessjournal.com
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THE MANUFACTURING ISSUE - VISION
Holiday Blues Tis’ the season to be jolly, right? The songs, the decorations, and the spirit of the season should make us all merrier during the holidays, but the reality can be very different. The holidays tend to bring MORE of everything, both the good and the bad. We have more opportunities to gather for fun and festivities, but we also spend more money, have more pressure to do everything in even less time than usual, and have higher expectations all around. Employees are stressed with their holiday obligations at home and at work. Most workplaces feel like Santa’s workshop without the full staff of elves. There are holiday-shortened deadlines, end-of-the-year business needs, and frantic customers. There is not enough time to get everything done and the stress of the season can really weigh on everyone. Productivity can also be affected if employees are more focused on their personal to-do lists than their professional responsibilities. This time of the year can lead to a mild case of the blues, or for some people, real depression. What can a business do to support their employees during this stressful time of the year? • Offer flexible schedules – If possible, provide some flexible scheduling. Find a balance between family obligations and work deadlines, and be open to adjusting work hours as long as the job gets done.
the product of our passion for things mechanical, years of curiosity, and a desire to build an enduring legacy.” Barreto expects $500,000 in sales this year, but it won’t all be going back into his pocket. Famiglia Vaglio donates a portion of each transaction to charitable organizations such as the American Cancer Society and the Parkinson’s Foundation. That also includes the Greenville Area Parkinson Society, a nonprofit that offers support, education, and advocacy to Greenville County residents battling the condition. “Our goal is to not only raise money for charities but also raise awareness about Parkinson’s disease,” says Barreto, a GAPS board member. “I don’t think the public is fully aware of the impact it has on people. It doesn’t just cause tremors.” As the disease advances, it can cause patients to experience constipation, sleep disorders, and cognitive impairment, among other symptoms, according to the National Institute of Neurological Disorders and Stroke. An estimated 1.5 million Americans are affected with Parkinson’s disease. As for the future, Barreto plans to retire from GBS Building Supply this spring to launch Asterisk Land Partners, a real estate development company, with his son, Bobby. He’s also already designing a new collector watch for Famiglia Vaglio’s 2018 line. “My motivation is pure. I want to set an example for my family and my fellow diagnosed friends to keep moving forward and never give up in the face of adversity,” he says. “Quitting is not an option. Everyone has more to offer.”
GOT THE TIME
• Create a spirit of fun – Channel your inner Kris Kringle. Host a holiday party, decorate workspaces, or encourage a Secret Santa Exchange. Just make sure the purpose remains fun and does not add additional obligations and stress to your team. • Provide healthy options – If your office is like ours, there is plenty to eat around the holidays. The break room is always full of cookies, cakes, and baked goods. Too much sugar at work causes afternoon fatigue and a general feeling of malaise. Bring vegetables instead of more cookies. Form a team of co-workers to walk during lunch hour. Encourage healthy choices and don’t pressure others to overindulge. • Seek professional help – For some individuals, the holidays can be a time of severe stress, grief, and depression. If you are concerned about yourself or a co-worker, ask about your company’s Employee Assistance Program (EAP) or seek professional help through other avenues. • Give to others – We all know it is better to give than to receive and there is no greater feeling than helping others. Cultivate this giving spirit at work by organizing a company-wide canned food drive, offering time off for volunteer work, or helping a family in need. Giving as a group will foster positive teamwork and instill a sense of workplace community. Help make this holiday a little less stressful and a lot jollier by focusing on the spirit of the season. By implementing these simple steps at work, you can help chase away the holiday blues.
Lee Yarborough President
669 N. Academy St. Greenville, SC 29601
The Eterno, which means “eternity” in Italian, was Barreto’s inaugural design and is an automatic mechanical timepiece housed in a 40-millimeter case crafted out of 316L stainless steel with a scratchproof sapphire bezel. The watch, which costs $585, also features visible movement, a leather strap, a double butterfly buckle, and water resistance to a depth of about 130 feet. It is limited to 500 pieces.
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The Pilota, which means “pilot or race driver” in Italian, is matte black throughout and encased in a 40-millimeter case that’s crafted out of 316L stainless steel. The watch, which costs $195, also features a quartz movement, K-1 glass crystal, a double butterfly buckle, and water resistance to a depth of about 130 feet.
THE MANUFACTURING ISSUE - FORWARD
Keep Thriving The policies that can support manufacturing growth in 2018 and beyond By HANK HYATT AND JASON ZACHER Greenville Chamber of Commerce
The Greenville-Anderson-Mauldin metro area was recently rated one of the top places in America to work in manufacturing. That is not by accident. South Carolina worked hard to diversify our manufacturing base. We make things here. The data show that. According to the U.S. Census County Business Patterns program, in 2015, 886 manufacturing establishments employed more than 50,000 individuals in our metro region. This is by far the largest sector of employment for the region. The next largest sector for the metro was health care with approximately 40,000 employees. One out of every $5 paid out in payroll comes from the manufacturing sector. Ensuring our manufacturing industry has the business conditions to thrive is also not an accident. The Greenville Chamber and the Upstate Chamber Coalition work closely with the South Carolina Manufacturers Alliance and our regional economic developers to ensure government stays out of the way of our thriving manufacturing businesses. In 2018, there are a number of issues we will tackle in conjunction with our partners across our state. • Nuisance Lawsuit Protections: Many of our industrial facilities were built along rural roads in the 1970s through the 1990s. However, Greenville is the fastest-growing city east of Texas, and our explosive growth along the Interstate 85 corridor means these rural facilities increasingly have homes as neighbors. Manufacturing facilities come with light, noise, and odors as byproducts of the goods made and the jobs created. The South Carolina Manufacturing Liability Protection Act will ensure that existing permitted operations are protected from lawsuits by codifying the “coming to the nuisance” defense that is in existing common law. The bill is modeled after the Right to Farm Act – similar protections passed for agriculture several years ago. It is meant to decrease frivolous litigation, minimize legal expenses, and create more certainty for homeowners and manufacturers. This legislation was approved by the state House in 2017 and is currently in the state Senate.
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• Automatic Stays: A second piece of legislation we are working on will provide a timeline to move anti-development lawsuits forward. Under current law, there is no timeline for when the Administrative Law Court must hold a hearing for a plaintiff to show cause for injunctive relief to stop a development project in contested cases. This means that economically beneficial development projects can be halted indefinitely, effectively killing the project. In an area like the Upstate that has experienced exponential growth in the past decade, this practice can be harmful to future development. Our legislation sets a time limit on automatic stays of 30 days. With this timeline, it is hoped that plaintiffs will file cases only of legitimate concern rather than try to stop every new development project. This bill does not prevent an individual from contesting development projects, but simply ensures those suits show cause and are not dragged on indefinitely. • Workforce Expansion: These two lawsuit abuse reform issues stack on top of numerous workforce initiatives the chamber is working on to expand our workforce, most notably our expungement reform for low-level, nonviolent offenders. This legislation passed the House without a dissenting vote in 2017 and is currently on the Senate floor. As businesses in all sectors are scrambling to find people to fill critical jobs, bringing these folks back into the workforce is key to expanding our regional economy. This legislation provides protections for employers and ensures ex-offenders have clean records since their offense. In addition to working in Columbia on state-level issues, the Greenville Chamber has hired a director of workforce and talent solutions to work on closing the workforce gap. This individual will be working with local employers, education and training institutions, community-based organizations, and other partners to craft solutions to alleviate the talent shortage. Funded through Accelerate, the Greenville Chamber’s private-sector-fueled economic development initiative, the director will bring focused attention and resources on a critical issue cited by manufacturers across the board. 2017 was a very strong year for manufacturing, for the Greenville region, and for the Greenville Chamber. We encourage our investors and other stakeholders to become engaged in helping us make 2018 an even stronger year. Let’s do something that matters today.
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THE MANUFACTURING ISSUE - LANDSCAPE
‘AN INDUSTRIAL POWERHOUSE’
Increased wages, demand for highly skilled workers have boosted the Upstate’s status as a manufacturing hub WORDS BY TREVOR ANDERSON The chapter has long been closed on the Upstate’s reign as a textile hub. But manufacturing, which has been vital to the region’s economic growth and culture for almost 150 years, continues to thrive. Led by several global brands, such as BMW, Michelin, Bosch, GE, Fluor, AFL, Magna, and others, state and local business leaders said the industry is arguably stronger and more diverse today than it has ever been. More than 1,800 manufacturers, including about 460 foreign companies, currently call the Upstate home, according to Upstate SC Alliance, an organization that seeks to position the region to excel globally through strategic marketing, collaboration, and thought leadership. The Upstate’s increasing proficiency in several sub-sectors — advanced materials, aerospace, automotive, bioscience, and energy — continues to attract investment and jobs from new and expanding companies. “It’s impossible to overstate the role that manufacturing has played in transforming the economy of both the Upstate and South Carolina as a whole,” said S.C. Secretary of Commerce Bobby Hitt. “With the rise of complex manufacturing, our state and our workforce have built a reputation as a global brand state — a state that not only makes things but makes them well,” Hitt added. “This reputation continues to attract industry leaders from around the world who now view South Carolina as an industrial powerhouse.” Manufacturing accounts for $13.3 billion, about 22 percent, of the Upstate’s nearly $60 billion gross regional product, Upstate SC Alliance said. According to the U.S. Department of Labor,
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UBJ | 12.15.2017
the industry supports 107,837 jobs in the region, which comprises 21 percent of the Upstate’s workforce not including state and federal government jobs. As of June 2017, manufacturing makes up about 14 percent of South Carolina’s employment base and 10 percent of the nation’s workforce. The average weekly wage for manufacturing employees in the Upstate is $1,030, compared with the state’s average of $1,135 and the national average of $1,152. In June 2001, the industry supported 145,340 jobs in the Upstate, which was 30 percent of the region’s workforce. The average weekly wage for manufacturing employees in the Upstate, however, was only $638 in 2001. That means while the region’s total number of manufacturing jobs has decreased by about 26 percent since the demise of textiles, its industry wages have increased by more than 61 percent. “Manufacturing has been our lifeblood and part of our DNA since the late 1880s,” said Spartanburg County Councilman David Britt. “It’s who we are. It saved Spartanburg and the Upstate. It has given us the ability to reshape and redefine ourselves.” Britt said he believes wage growth is one area that reflects the changes Upstate manufacturing has undergone, particularly during the past decade. “It’s nothing like what it was with textiles,” he said. “Manufacturing companies are in need of highly skilled workers. They are realizing they have to focus on attracting the top talent. It goes back to that saying that a rising tide floats all boats. People who live in the Upstate have an abundance of opportunities in manufacturing that weren’t there in years past.”
“When you look around the landscape of the Upstate, you will see we have state-of-the-art facilities that the world recognizes and tries to emulate,” Britt added. “These companies dig deep holes to bury their roots in. It’s not easy to just uproot these companies.” Britt said the perception of manufacturing being a dirty, low-skill, low-wage profession is simply false. Many of the job announcements made by new or expanding manufacturing companies include many high-skill and white-collar positions, such as engineers, executive staff, sales associates, and jobs in research and development. In Greenville and Spartanburg counties, which boast the highest numbers of manufacturing jobs in the Upstate, the average weekly wage for manufacturing employees is $1,262 and $1,213, respectively. That means the average annual wage for manufacturing employees is $65,624 in Greenville and $63,076 in Spartanburg. “The Upstate has done a very good job as it relates to the economy, specifically in adapting to changes in manufacturing,” said Dean Hybl, executive director of Ten at the Top, an organization that promotes collaboration, coordination, and cooperation across the 10-county region of the Upstate. “During the last 20, 30, even 40 years, our leaders have done an excellent job positioning the region as a manufacturing hub,” Hybl added. “We still make things, whereas a lot of other communities across the nation that used to make things don’t anymore.” Hybl said the industry’s growth and advances in technology have presented the region with
THE MANUFACTURING ISSUE - LANDSCAPE
U.S. Department of Labor Bureau of Labor Statistics Quarterly Census of Employment and Wages As of June 2017 Private (Not including federal and state government jobs)
Total employment
Manufacturing jobs
Percent of workforce
Average weekly wage
Greenville
235,620
29,802
13%
$1,262
Spartanburg
116,656
28,987
25%
$1,213
Anderson
52,313
14,115
27%
$1,055
Pickens
25,636
5,458
21%
$941
Greenwood
21,202
5,560
26%
$1,061
Oconee
19,437
5,868
30%
$1,093
Laurens
18,500
8,309
45%
$937
Cherokee
17,294
6,319
37%
$879
Union
5,873
1,670
28%
$936
Abbeville
3,862
1,749
45%
$924
Upstate
516,393
107,837
21%
$1,030
South Carolina
1,707,107
241,616
14%
$1,135
United States
123,579,726
12,442,337
10%
$1,152
County
challenges, as companies across the Upstate are vying for highly skilled, highly trained employees. Regional leaders, colleges, technical schools, and industry partners are working hard at changing perceptions and developing advanced degree programs in manufacturing, Hybl said. BMW, Michelin, and several other companies with European roots have adopted scholars or apprenticeship programs. Prospective manufacturing employees can also take advantage of the state’s Apprenticeship Carolina program, which provides supervised on-the-job training and job-related education in the classroom. “We’re in the midst of it,” Hybl said. “We’re still figuring it out. It’s no coincidence that many public schools have spent money on their vocational facilities. We are adapting. This is a generational change. It takes time. It’s not something you can solve overnight.” Hybl said the Upstate has a lot of things going for it that make it attractive for manufacturing, including interstates, great quality of life, good schools, and the South Carolina Ports Authority’s Inland Port in Spartanburg County. Workforce development, transportation infrastructure improvements, and the proper and wise use of tax incentives are a few of the issues state and regional leaders will have to tackle, he said. “The reality is that the Upstate is competing with communities across the globe,” Hybl said. “Fortunately, we’re in a region with leaders who recognize
those problems and are willing to tackle them. … Holistically, we’re trying to grow our pie.” John Lummus, president and CEO of Upstate SC Alliance, said manufacturing will continue to be vitally important to the Upstate. In order to maintain growth, Lummus said, the region must encourage research, development, and innovation, and companies have to proactively seek customers overseas. He said the Upstate also needs to continue to keep an eye on the “continued revolution and the rise of automation” and to view “innovations in materials,” especially carbon fibers and composites, as drivers for the region’s future. “I am fascinated by the question, ‘How do we embrace technology and innovation?’” Lummus said. “How do we ensure that our manufacturing base takes a leadership role in embracing these changes? There is tremendous opportunity for our industries, public sector, and [Clemson University’s International Center for Automotive Research] to partner and identify the opportunities that arise with automated vehicle technology, electrical power sources, and the internet of things.” “All businesses are affected by these technological advances,” Lummus said, “but with a proactive approach, we can leverage them to use these changes to our advantage so that we continue to be a leader.” 12.15.2017 | upstatebusinessjournal.com
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THE MANUFACTURING ISSUE - EDUCATION
Golden Opportunity Students, graduates well-positioned to find manufacturing jobs By DAVID CLAYTON
enrollment and have been busy starting new academic programs and building on industry partnerships to further enhance the classroom experience. The season is also a time for gratitude, when we reflect on our blessings, family and friends, health, and well-being. On the last Wednesday of every month, I host a tour for interested community members (go to tours.cmigreenville.com to join one). During these tours, I often hear this comment: “I never thought about how things are made.” In this time of thankfulness, we should pause to consider the men and women (and elves!) producing all the gifts we exchange. Many of these folks could be your South Carolina neighbors. Maybe the holidays bring you a Confluence kayak, a set of Michelin Super Sport tires, an Element TV, or a Husqvarna lawnmower. A lucky few may enjoy a new BMW X-series or Honda ATV this year. For breakfast, you might have a toasted waffle from U.S. Waffle Co. and for lunch, a Duke Foods pimento cheese sandwich. These are all products made right here in South Carolina by our hardworking neighbors. South Carolina employees are known around the country for their work ethic, focus on quality, and dedication to making the world’s best products. Let’s take time to be thankful for these professionals and consider purchasing more South Carolina-made products in the future. As we look to 2018, the new year is a time for optimism and seizing opportunities. Announced expansions at Bosch Automotive, Bosch Rexroth, AVX, Mapal, Kloeckner Metals, Itron, Electrolux, Medtronic, JSI Store Fixtures,
executive director, Greenville Technical College’s Center for Manufacturing Innovation
There is nothing like the sound of shattering glass and the thunder of 80 pounds of falling timber to wake you in the middle of the night. It wasn’t a burglar or a raging storm that startled me recently, but the crash of a 9-foot, fully decorated Fraser fir in our living room. Fortunately, no one was hurt, but we can all learn a lesson from my “first-world” disaster: Don’t decorate only on one side of the tree. Even engineers can forget the basic principle of balance. As we approach the end of the year, this is a great reminder to focus on balance in our lives. Enjoy this time with friends and family, carve out opportunities for hobbies or interests, and come back to work or school ready for a prosperous 2018. With the holidays approaching, it’s also time to take stock and assess our progress over the year. The skyline full of cranes downtown and busy shopping districts across the region affirm that the economy is booming. My colleagues across the manufacturing industry, with few exceptions, say that 2017 has been a great year. While this is good news for business owners and employees, it’s great news for graduates. Recently, Greenville Technical College hosted a Career Expo at the Center for Manufacturing Innovation. Dozens of employers talked to students and graduates of the college’s advanced manufacturing programs. Data point to a nearly 4 percent increase in the average manufacturing wage in Greenville County, and demand for new graduates and experienced professionals is strong. At CMI, we’ve seen a 10 percent growth in
Gestamp, and many other Upstate manufacturers point to a vibrant regional economy. This growth indicates optimism in the U.S. manufacturing sector and brighter prospects for manufacturing employees and graduates of programs at CMI. In an effort to make these employment opportunities more available to Upstate students, Greenville Technical College is launching an Advanced Manufacturing Academy at CMI in partnership with Greenville County Schools next fall. With financial support from Bosch Rexroth, this program will be available to Greenville County high school seniors, offering a series of interesting classes and a jumpstart on college coursework. Over the course of a year, students will earn
college credit toward an advanced manufacturing associate degree while working with cutting-edge technologies, such as robotics and automation, 3-D printing, CNC machining, and much more. Students can learn more about this opportunity from their high school guidance and career counselors. From all of us at Greenville Technical College and the Center for Manufacturing Innovation, we wish you happy holidays and a wonderful year ahead — and sincere wishes that your Christmas trees remain upright!
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THE MANUFACTURING ISSUE - GROWTH
A Cautious Approach Landing pads a long game in economic development By MARC METCALF business recruitment officer, Upstate SC Alliance
While working for a German automotive supplier several years ago, Per Blohm ventured to Detroit to explore the company’s options for establishing a North American production facility. “As a small operation at the time, with a five-year turnover of $45-50 million, they weren’t interested in us,” Blohm shared in a presentation last month with Upstate SC Alliance investors. Because the company did not meet traditional incentive requirements, its representatives had a hard time finding a community liaison to acquaint them with the business landscape. Determined to make progress,
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UBJ | 12.15.2017
Blohm called a neighbor who was employed with fellow automotive supplier ZF, which has Upstate facilities. The neighbor connected him with the Upstate SC Alliance. “I got a tour, drove to different areas, and was introduced to the Upstate, and that was something I haven’t experienced in China, in India — I haven’t experienced it anywhere in the world except here in South Carolina,” Blohm said. “I called my boss and said, ‘You know, they really want us here. … And from the setup they have, this is the place to go.’” Today, Blohm is the general manager USA of AWL-Techniek, a Netherlands-headquartered company that now employs 15 at its automated welding machinery production facility in Spartanburg.
The company began with a small sales office at the Spartanburg Community College Spark Center S.C., where it continued to operate while seeking and renovating a production facility. Future employment projections anticipate the company growing to 110 employees in about five years. AWL-Techniek’s entry into our region — with a small presence, driven by a desire to connect with the Southeastern automotive supply chain — is an example of the cautious approach that companies increasingly are applying to business location and expansion decisions. These projects, referred to as a mix of “landing pad” and “soft landing” projects, are seen as the future of economic development. While traditional industrial development is seen as companies pledging millions in capital investment and hundreds of jobs, this approach works well with a company’s desire to test a market for viability. The idea of scaling a business slowly over time works well in a climate like ours where unemployment rates are hovering near record lows, and it presents a great deal of opportunity for middle-market and family-owned companies. In fact, from 2009-2014, middle market companies grew from 10 to 30 employees on average, resulting in 72 percent of new U.S. jobs. From the business recruitment perspective, working these projects requires a different approach. The companies are often family-owned, tightly knit, and striving to mitigate risk. It’s a big decision for them to branch into new geographies, product lines, and even into hiring outsiders. Many of the companies we’ve worked with are not using site consultants, which means that any connectivity we can add to statewide organizations and resources — such as the South Carolina Automotive Council, the Aerospace Council,
SCBIO, and our private sector service partners — becomes their business incentive. Such is the case for SMT Group, a Naperville, Ill.-headquartered global manufacturer of electromechanical subassemblies and components that opened a technical sales office at Clemson University’s International Center for Automotive Research this fall. The family-owned company values connections to our region’s business assets and intends to grow in our region. Another recent example is vermon NDT. The Netherlands-based producer of ultrasonic equipment for nondestructive testing announced last month at the Oconee Economic Alliance’s Annual Meeting that it has established a 3,500-square-foot production operation within the Oconee Business Center in Walhalla. Company representative Dana Todd spoke about the company’s three employees and its plans to outgrow the space in three years. The availability of flexible, lowrent space often by business incubators like Spartanburg Community College Center for Business & Entrepreneurial Development, NEXT, CU-ICAR, and the Oconee Business Center is a vital asset to bringing these businesses here. The unbridled long-term growth potential of these companies, combined with our prepared business ecosystem, makes a strategic focus on these smaller projects a forward-thinking, business-friendly shift in economic development practice. The Landing Pad initiative is a tool both for our communities, as we position our region for future growth, and for the international and domestic businesses seeking a controlled market entry with mitigated risk. The faster that we can get them ingrained in South Carolina’s business environment and make connections, the sooner they can land here, find a home, and grow.
THE TECHNICAL SIDE OF BUSINESS
| DIGITAL MAVEN
Numbers Game The future of Social Security numbers in the cybercrime era By LAURA HAIGHT president, portfoliosc.com
Are the left and right hands working together? Do they have no clue what the other is doing? Or could it be possible they don’t see the contradictory messages their oppositional actions can be sending? The hands belong to the government. Caught in the middle? Everyone with a Social Security number (SSN), or any business with employees. Although flying below the radar, there are two distinct and divergent efforts related to SSNs going on in the legislative branch. On the Senate side, there’s a growing recognition that these can no longer be considered a safe and secure method of verifying identity. The Commerce Committee has begun hearing testimony on what technology can be used or developed to create a new national identification system. Recent hearings that brought top tech execs together to testify were spurred by the Equifax hack that exposed 145 million SSNs. Equifax was the death knell for SSNs, which have been leaching out of supposedly secure systems for years. Among the biggest losses were from government systems of several states (including South Carolina three times), the Internal Revenue Service, the Office of Personnel Management (the HR department for the federal government), and the Veterans Administration. Topped off by Equifax, it is nearly impossible that there are any unexposed SSNs left to steal. Still, until the government can agree, legislate, develop, and effectively implement a new system, SSNs are what we have. And not only do we have them but also we are tethered to them like a Mafia snitch and a pair of concrete boots.
Regardless of how many times your SSN may have been exposed, you can never get a new number, and you can only change the name on your Social Security card three times in your life, a rule that primarily impacts women. Into this unsettled mess comes the House, which is considering legislation to require that every business in the country participate in the government’s E-Verify program —the federal data system that uses SSNs to verify eligibility of job applicants to work in the United States. Currently, participation in E-Verify is inconsistent. Few states require it fully for all public, private, and government hiring. South Carolina is one of these few states. The requirements of the E-Verify program can be onerous, especially for small businesses. A significant one is the protection of every SSN you collect. Once you enroll in E-Verify, you have to use it to process every employee. Selective use of E-Verify would be a violation of anti-discrimination employment law. You are also required to keep the E-Verify documents, including the SSN, “in a safe and and secure location… that only authorized individuals have access,” according to the United States Citizenship and Immigration Services, which administers the program. Small businesses with paper files are possibly not securing these documents effectively. Others that digitize them but don’t have business-level accounts with appropriate role-based permissions may be unintentionally violating the law and risking exposure of sensitive information. A watchdog organization called the Electronic Frontier Foundation is lobbying against the E-Verify expansion, calling it a “privacy disaster in the making”. Obviously, a data breach is a major concern, but there are others cited in a study by the General Accounting Office. They
include a disparate impact on women who may or may not change their names after marriage or divorce, the historical fact that more non-Americans are denied, and the GAO’s opinion that errors will increase dramatically if E-Verify is made mandatory nationally. Add to that the additional compliance requirements on every business, agency, and nongovernmental organization, regardless of size. You may argue that if, in fact, SSNs are already widely exposed, then nothing is really at risk. Consider that valid SSNs may now be in the hands of thieves with stolen identities. That means someone masquerading as Laura Haight in Portland, Ore., could get a job and be a verified employee in the national database, while I could be flagged as an imposter and unable to be approved to work. These two efforts appear to be working at cross purposes: properly exploring technology for a new ID system offering greater security of our identities, while at the same time seeking to force massive expansion of a program that depends nearly completely on an insecure and irreparably broken system.
PRO TIP: Get familiar with the document retention requirements for the I-9 and E-Verify. You may be holding sensitive information longer than is required (three years after employment for the I-9). Not only can small businesses be putting themselves at risk for a more extensive data breach, but I-9 auditors can fine you for every error on every document you have kept, whether you needed to or not. That’s $100 to $200 per error. Sources: Matt McCracken, HR technologies specialist at Ideal HR, for insights and background on the employment verification processes cited in this column
Over $89 million in sales and leasing volume in November 101 East Washington St. Suite 400, Greenville, SC 29601
864.232.9040
naiearlefurman.com 12.15.2017 | upstatebusinessjournal.com
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SOCIAL SNAPSHOT |
INSIDE THE UPSTATE’S NETWORKING AND SOCIAL SCENE
VISIT GREENVILLE HOLIDAY BREAKFAST VisitGreenvilleSC hosted Yeah, THAT Holiday Breakfast 2017 on Dec. 7 at the Old Cigar Warehouse for those who have supported the convention and visitors bureau’s efforts over the last year. Guests included local media, community leaders, and even an appearance from Santa Claus and a peppy elf. Synergy Twins Duo violinists serenaded the crown with holiday tunes as guests enjoyed breakfast, hors d’oeuvres, and made-to-order omelettes catered by Two Chefs. Photos by Jack Robert Photography
We’ve already met your next employee. Godshall Professional Recruiting and Staffing specializes in executive recruiting, career placement, and consulting for businesses and independent job seekers in South Carolina. Our team of recruiters brings a combined 124 years of experience placing candidates in the financial, technical, healthcare and professional industries. Let us find the perfect fit for your employment needs. Professional • Finance • Technical • Healthcare sccareersearch.com • 864-242-3491
50 5
Celebrating Celebrating 24
UBJ | 12.15.2017
PLAY-BY-PLAY OF UPSTATE CAREERS
HIRED
HIRED
KIMBRELL HUGHES
ANNALYNN BARNETT
Joined Hughes Investments Inc. as an associate on the executive management team. She will focus on property management, marketing, and financial analysis. Hughes recently graduated from Columbia Business School with her MBA, and prior to graduate school, she worked in corporate marketing at Ralph Lauren.
Hired by FUEL to lead the business development team. Barnett brings over 20 years of experience in business-tobusiness sales, management, and business development to FUEL. Barnett attended Clemson University, where she studied engineering and management.
HIRED
HIRED
MATTHEW G. QUATTLEBAUM Joined Babb & Bixler Attorneys At Law as an associate attorney. Quattlebaum is a native of the Upstate and earned both his undergraduate and law degrees from the University of South Carolina. Quattlebaum is a member of the South Carolina Bar Association, and he focuses on real estate law, contracts, litigation, personal injury, transactions and wills, probate, and estates.
VIP JULIE HOLLISTER YMCA of Greenville has announced that Julie Hollister, association director of youth & family services programs & quality, was given the Social Responsibility award by Chapter 23 of the Association of Y Professionals. She was chosen based on solutions to help those in need to reach their full potential and her work toward positive social change. Hollister has demonstrated significant, measurable results of program development during the last 24 months. Her program successes include RECESS, which serves young adults with special needs, and the statewide project called Togetherhood.
| ON THE MOVE
APPOINTED
PHILIP KENNEDY
JASON RICHARDS
Joined LS3P as a systems administrator. Kennedy holds an associate of applied science degree in network technology from Blue Ridge Community College. He brings IT support experience with clients in the medical, manufacturing, and retail fields. He will be based in Greenville and provide support for the firm’s eight offices.
Named to the NAI Global leadership board advisory taskforce. Richards currently serves as COO and shareholder of NAI Earle Furman. Richards has been with NAI Earle Furman since 2007 and is a very active member in the Upstate community.
HOSPITALITY Larkin’s Catering and Events was awarded Catering Company of the Year for the Appalachian Chapter at their annual award gala by The National Association for Catering & Events.
INSURANCE Guy Furay, owner of The Insurance Source, has been recognized as one of Heathcare.gov’s Elite Circle of Champions. This national designation is given to insurance brokers who have helped more than 100 individuals and families make their health insurance selections during the 2018 Open Enrollment Period.
FINANCE Countybank has announced several promotions and hirings, including the promotion of Chris Roberts to senior vice president; the promotion of Crystal Peterson to treasury services officer; the promotion of Dustin Green to senior vice president, Greenville marketing executive; and the promotion of Jim Fowler to executive vice president of corporate banking and strategic initiatives.
FUNDRAISING The Association of Fundraising Professionals has honored four Upstate individual and corporate philanthropists for their outstanding contributions to the Upstate’s philanthropic community in honor of National Philanthropy Day. The honorees include BMW Manufacturing (Corporate Donor of the Year), Minor Shaw (Individual Philanthropist of the Year), Kelly Byers (Young Philanthropist of the Year), and Baxter Wynn (Volunteer Fundraiser of the Year).
INTERIOR DESIGN Tribus Design Studio, a full-service design company in Greenville, has merged with KMH Interiors, an interior design company in Atlanta. The newly formed partnership will operate as Tribus Design Studio LLC.
CONTRIBUTE: New hires, promotions, & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.
12.15.2017 | upstatebusinessjournal.com
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#TRENDING / NEW TO THE STREET |
INFORMATION YOU WANT TO KNOW / NEW FACES OF BUSINESS
THE WATERCOOLER 1. Lima One Capital CEO announces SC gubernatorial bid W ONS | NE MIFICATI RADIO RA INSIDE //
2. Neo Burrito opening soon, sign added
WL D | A BO HAYWOO BREWS ON
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3. Starbucks plans to open first location in downtown Spartanburg
SINESS OF
O THE BU EAKING INT
E IS BR TOMMY PIK
4. Former Iron Yard leaders to launch new coding school in Greenville
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O RAMEN? OF GUMB
ms. Photo
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ING CARS
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CONNECT We’re great at networking.
5. Kuka Juice opens in the Village of West Greenville
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Open for business 1
2
Independent Living Patio Homes • Independent Apartment Homes Assisted Living • Memory Care • Rehabilitation • Skilled Nursing
1. Habitat ReStore recently opened its second location at 3033 Wade Hampton Blvd. Learn more at habitatgreenville. org/restore. 2. Giggles Drop In Childcare recently opened at 10 W. Lewis Plaza. Learn more at gigglesdaycareinc.com.
1 Hoke Smith Blvd., Greenville 864.987.4612 • www.RollingGreenVillage.com CONTRIBUTE: Know of a business opening soon? Email information to aturner@communityjournals.com. 26
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EVENTS YOU SHOULD HAVE ON YOUR CALENDAR
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Tuesday
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Piedmont SCORE’s Basic Small-Business Startup
Greenville County Library Augusta Road Branch 100 Lydia St. 6–8 p.m.
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Tuesday
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Clemson University’s Clemson MBA Info Session
Clemson MBA at Greenville ONE 1 N. Main St., fifth floor 5:30–7 p.m.
Cost: Free For more info: bit.ly/2zqUYDa, nikawhiteconsulting@greenvillechamber.org
Tuesday
01/23
Piedmont SCORE’s Business Planning Seminar
Greenville County Library Augusta Road Branch 100 Lydia St. 6–8 p.m.
For more info: bit.ly/2zFFZcP, 864-271-3638, info@piedmontscore.org
Thursday
Greenville Chamber of Commerce’s Annual Meeting
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Cost: $95 for investors, $150 noninvestors. For more info: bit.ly/2A8oPjL; 864-271-0718
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IN THIS WEEK’S ISSUE OF UBJ? WANT A COPY FOR YOUR LOBBY?
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
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onthemove@upstatebusinessjournal.com UBJ welcomes expert commentary from business leaders on timely news topics related to their specialties. Guest columns run 700-800 words. Contact associate editor Emily Pietras at epietras@communityjournals.com to submit an article for consideration.
1988 Jackson Dawson opens in Greenville at Downtown Airport
1988
FEBRUARY 9 CRE ISSUE
>>
Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff
Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com
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.
MARCH 2 INTERNATIONAL ISSUE Got any thoughts? Care to contribute? Let us know at ideas@upstatebusinessjournal.com.
1997 Jackson Dawson launches motorsports Division 1993
1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.
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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