DECEMBER 27, 2013
2013
THE YEAR IN REVIEW The top stories that had people talking and business moving this year.
Volume II, Issue LII
December 27, 2013
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WORTH REPEATING “We’re in the first inning of now a nine-inning ball game.” Ray Jackson, chief sales and marketing officer for the Cliffs Communities, on the company’s recent challenges, including emerging from bankruptcy in 2012.
“We’ve loved the job that he’s doing and we hoped he would want to make it permanent.” Bob Howard, chairman of the board of Greenville Area Development Corp., on interim CEO Kevin Landmesser’s declining to take the job permanently.
“We need billions of dollars to fix our roads. We’ve got to give companies the infrastructure they need to get their products to their customers or they’ll go elsewhere.” Clemson professor and supply chain optimization expert Dr. Scott Mason, on the importance of South Carolina’s logistics industry.
“It’s the first time I ever had to go to a manual to figure out how to close an application.” A local software developer on adapting to Windows 8, which debuted this year.
Many of the biggest business news stories in 2013 were things you could see with your own eyes – including the Feds shutting down.
TBA Word is Saffron’s will soon be moving to the Village of West Greenville. Stay tuned… Apparently Luthi’s Pawn Shop is making plans to relocate to the former Earshot space next to Half Moon Outfitters on Laurens Road… Photo Prov
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VERBATIM
On Greenville’s New Cycling Championships… “Greenville’s emergence as a recognized and talked about cycling destination combined with … an incredibly passionate local cycling community makes for a standout championship for the athletes and the fans.” Chris Stone, president of VisitGreenvilleSC, after last week’s announcement feom USA Cycling that Greenville has been selected to host the 2015-16 USA Cycling Professional Criterium National Championships.
UBJ ECONOMIC DEVELOPMENT
Landmesser Declines GADC CEO Spot
World-Class Lawyers. Deep Local Roots.
Development agency expanding its target focus areas By Jennifer Oladipo | senior business writer | joladipo@communityjournals.com
Greenville Area Development Corp. and Landmesser estimated the search interim CEO Kevin Landmesser said process would take four to six months. he would not take the permanent CEO Landmesser took over the interim position because he prefers working position when president and CEO more closely with projects. Jerry Howard resigned from his po“I really didn’t want to sition in May in order to give up practicing ecopursue personal interests. nomic development, Landmesser had been which I love most,” Landsecond in command since messer said. He said he the organization was gets the most pleasure formed in 2001. from the hands-on Jerry Howard was aspects of touring a plant GADC’s inaugural presifloor to learn how a dent, serving for 12 years. company works and then At the time of his resignapiecing together a deal, tion, Butch Kirven, who for instance. serves on the GADC board LANDMESSER He had previously of directors, said there was served as vice president at GADC, no specific timeline for finding a reclosely overseeing projects. placement other than Landmesser. Board Chairman Bob Howard said GADC recently began an expansion he was “disappointed” about Land- of its target areas after a commissioned messer’s decision because Landmess- study uncovered weaknesses in its er was the best candidate for the job, manufacturing-heavy emphasis and though he supported Landmesser’s opportunities for branching out. Immove back to the critical project plementing those changes would not manager position. be delayed by the CEO search, Bob “We’ve loved the job that he’s doing Howard said. and we hoped he would want to make Landmesser said he was particularit permanent,” Howard said. ly excited about the study’s proposal Howard said he had appointed a that recruitment of data centers search committee that he felt would become a major focus at GADC. He bring a good mix of perspectives from said he was looking forward to getting the community. Vice Chairman Dick hands-on with that as he steps back Wilkerson will head the committee, into the VP role. He had already been which also includes Jo Hackl with the involved in crafting legislation to Wyche law firm; Ray Lattimore of promote data centers in the state Marketplace Staffing; County CounGADC operates with a staff of seven cilman H.G. “Butch” Kirven; and Scott people and a budget of about $1.1 million, about $150,000 of which Case, county auditor. The committee is not limiting the comes from private investors. Greensearch to economic development pro- ville County provides the rest. Among fessionals, Howard said, but is instead area economic development agencies, focusing on executive ability regard- it has been known for its work in reless of professional background. Mar- cruitment and project management keting efforts will begin in January for large manufacturing enterprises.
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December 27, 2013
UPSTATE BUSINESS JOURNAL
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UBJ REAL ESTATE
‘The Cliffs Is Back on Course’
Ray Jackson tees off as new sales and marketing chief for Cliffs Communities By Sherry Jackson | staff | sjackson@communityjournals.com
Ray Jackson has been in his new position as the chief sales and marketing officer for the Cliffs Communities for a little more than 90 days, and he’s excited about the future. It’s a homecoming for Jackson, a Clemson graduate and Aiken native who has traveled the country leading marketing efforts for Cliffs-like communities and golf courses. His latest position was VP of sales at the Toscana Country Club in Indian Wells, Calif., before accepting the Cliffs position. As the recession slowly lifted its veil in 2013, Jackson says that “the Cliffs are back on course,” with pun intended, as the communities are well
known for their pro-designed golf courses. The eight mountain and lakeside Cliffs Communities in South and North Carolina emerged from bankruptcy in 2012. Earlier this year, the Cliffs at Mountain Park unveiled its new $7.5 million, 18-hole, Gary Player-designed golf course. Taking the helm of marketing for the Cliffs is challenging, but Jackson says he is comfortable with the job. He’s been in the business for more than 30 years, and believes now is a safe time to get into the market. “We’re in the first inning of now a nine-inning ball game,” he says, adding that the real estate market
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CORRECTION: An article in the Dec. 20 issue of UBJ, “New Creative Heads at Erwin Penland,” incorrectly identified the subjects. Pictured here (from left) are Con Williamson and Joe Erwin of Erwin Penland. We regret the error.
The Upstate Business Journal Team wishes you a Happy New Year! 4
UPSTATE BUSINESS JOURNAL
December 27, 2013
always has ups and downs buyers now want a place and he feels that it’s now where their children and on the upswing. grandchildren will want to What was “really broken come visit. and is now restarting” is Every member who the real estate portion of owned a full golf memberthe Cliffs, Jackson says. ship was offered the opFor 2013, the Cliffs are set portunity to convert to the to close on 185 sales across new legacy option. This the eight locations. Propgives adult children (23 erties in foreclosure or and older) the privilege of distressed properties have having their own account been “gobbled up,” and 72 and club access without new homes are currently having to be attached to under construction, he their parents, says Jackson. The Legacy said. Access Membership And while the golf applies to members, courses remain a catalyst, parents, children and Jackson says that today “golf is a given,” but no grandchildren. longer the prime motiva“I think that gave us a tion for buying into an lot of growth this year and upscale residential commakes us even more fammunity. ily-friendly,” Jackson says. “It’s really the other ofOther plans include ferings such as culinary creating more events to Ray Jackson and wellness programs which members may that are becoming more invite guests, leading to popular, especially to the more of those member younger members who want more of referrals that are The Cliffs’ “lifean active lifestyle,” he said. The club blood” and advertising focus, offers nutrition counseling, a holistic Jackson says. Another marketing doctor and walking trails for patrons strategy will bring prospective who are taking charge of their health, members to the community for a he said. three-day, two-night stay. The goal Excursions to downtown Green- is to “expose people to the genteel ville arts and culture venues like the nature of the South” and let them Peace Center have strong appeal to experience what life at the Cliffs Cliffs members, as do culinary tours would be like, he said. to the many downtown restaurants, “Everything today is experiJackson said. The Cliffs Main Street ence-driven,” he said. “We have amoffice in Greenville has become the bassadors in the community who will “connection to the Cliffs” due to welcome new and prospective Greenville’s appeal, he says. members to show them around. It’s The Cliffs is now offering a new all about creating precious moments, Legacy Access membership that can and you can’t put a price tag on that.” be passed down from generation to Cliffs club memberships increased generation as one of its newest mar- from slightly over 1,900 to more than keting strategies. Jackson says the 2,700 this year. “It’s working,” recession refocused everyone, and Jackson said.
“It’s all about creating precious moments, and you can’t put a price tag on that.”
UBJ GOVERNMENT
New Sewer Use Regulation Affects 830 Businesses By Jennifer Oladipo | senior business writer | joladipo@communityjournals.com Renewable Water Resources’ (ReWa) board of commissioners approved modifications to the Sewer Use Regulation that mean operational changes for some food service establishments (FSEs) and likely increased fees for all. Joel Jones, industrial pretreatment manager at ReWa, said the agency is tightening its oversight of discharges into the sewer system in response to harmful chemicals detected in January. The agency found PCBs (polychlorinated biphenyls), industrial chemicals that were banned by Congress in 1979. The entry point was traced back to FSE grease interceptors where someone had
apparently been dumping the chemicals. The agency said the costs associated with increased oversight would require additional funding from the food service businesses, though exactly how much is yet to be determined. Jones said the fees are not new, though the cost to business owners would be. “These fees have always been in place, but we never have assessed them to anyone,” he said. “They were subsidized through other means in the past, but now since we’re having to do more, we need to make up the cost.” The fees are currently listed as $75 for a permit once every 3 years, and a $130 annual
administrative fee. ReWa will begin assessing fees in early 2014 but it has yet to determine how much of that businesses will now have to pay. Businesses will also be required to secure their in-ground grease interceptors against unauthorized access and designate a representative to oversee all maintenance of the interceptors. Of the 1,350 FSEs regulated through general permit, 830 will have to have their in-ground grease interceptors
certified as secure because they are vulnerable to abuse. “We can provide training as needed. They just need to be there to open the device to ensure that no one other than who they want to” can access it, Jones said. ReWa will implement a permitting and grease interceptor certification system for FSEs beginning in early 2014 and additional guidance will be available at the first of the year. ReWa serves more than 400,000 industrial, commercial and residential customers in Greenville County and parts of Anderson, Spartanburg, Pickens and Laurens Counties.
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December 27, 2013
UPSTATE BUSINESS JOURNAL
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UBJ LOGISTICS
Delivering the Goods
Clemson professor says South Carolina plays central role in shipping gifts By Cindy Landrum | staff | clandrum@communityjournals.com
By now, the presents are all unwrapped and the frenzy of the Christmas gift-giving season is over. Not many people think about what happens between the time the consumer buys the present with a few clicks of a computer mouse and the time Santa – or the postal carriers, the FedEx guy or the men driving the big brown truck – drop the package off at the door so it can be wrapped and put under the Christmas tree. But it’s a complicated process that retailers must have down to a science to meet the expectations of customers, said Dr. Scott Mason, the Fluor Endowed Chair in supply chain optimization and logistics at Clemson University. South Carolina is already a major player in the logistics business with its interstates, port, rail lines and cargo airports and several distribution centers for major retailers within its borders, Mason said. Wal-Mart has a distribution center in Laurens and Target one in Lugoff. Amazon has two distribution centers, one in Spartanburg and another in West Columbia. And Mason expects the state’s role to increase with the deepening of the Port of Charleston and the opening of the inland port near the Greenville-Spartanburg International
Airport. “We’re a major player,” Mason said. “We’ve got a good climate, we’re a right-to-work state, we’ve got a fantastic interstate system and the Southeast is booming. South Carolina is primed for success.” Success is critical in the world of logistics, Mason said. “We as consumers expect a package to be there in two days,” he said. “As a consumer, I don’t know and frankly I don’t care where a package is coming from as long as I get it when I’m sup-
“We as consumers expect a package to be there in two days. As a consumer, I don’t know and frankly I don’t care where a package is coming from as long as I get it when I’m supposed to.” Dr. Scott Mason
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posed to.” If a company can’t deliver, consumers will go elsewhere and spread the word to others via discussion boards and review sites, he said. “As a retailer, you better keep up your end of the promise,” he said. That takes an incredible amount of math, science and planning, Mason said. Retailers take into consideration the location of its suppliers, distribution centers and stores, and whether it is best to ship by truck, train, boat or air. They need to figure out which products to keep at which distribution centers. “The magic behind it is knowing where to put the product and how many to stock,” he said. “There are a whole host of decisions made behind the scenes. Retailers have to do their homework before the season arrives so that when the volume of business goes up during the Christmas shopping season, they can meet the demand.”
Mason said decisions are made based on historic data and projected demand for products. “If all of your demand is on the Eastern Seaboard, you may not want to put all your facilities in Denver or Seattle,” he said. “You may not want to stock as many sweatshirts in your Miami distribution facility as you would in one in a colder weather state. You may want to stock more summer-related products in the Miami facility.” Placement of items in various distribution facilities is one of the reasons customers may have orders shipped in more than one package. “The Wal-Mart distribution center in Laurens is the distribution center for shoes ordered at Walmart.com,” he said. “They ship 50,000 pairs of shoes a day.” While the volume of packages shipped increases during Christmas, logistics play a key role of retailers throughout the year. Mason said it’s important that South Carolina keep up with infrastructure needs. “We need billions of dollars to fix our roads,” he said. “We’ve got to give companies the infrastructure they need to get their products to their customers or they’ll go elsewhere.” Researchers at Clemson are working on a statewide freight plan that focuses on the state’s commodities and where transportation infrastructure needs improvement. They are also studying the possibility of using standardized containers that could be shared between shipping companies. “A UPS and FedEx wouldn’t have half-empty trucks but work together to get economies of scale for more efficient and more environmentally friendly transportation,” Mason said.
UBJ TRANSPORTATION
Adidas Begins Using Inland Port By Jennifer Oladipo | senior business writer | joladipo@communityjournals.com
The South Carolina Ports Authority (SPA) won’t give information about who is using the port, but at least one company, Adidas, has confirmed that it is a customer. GSA Business reported last week that Adidas was using the Inland Port, and Adidas spokesperson Lauren Lamkin told UBJ that its
Spartanburg distribution center began using the port earlier this month. BMW was announced as the anchor customer before the port opened in October and the ports authority had undertaken the aggressive marketing campaign in the Upstate and beyond South Carolina it promised in the months leading up to the port’s opening. Overall the agency reported a 5.4 percent drop in 20-foot equivalent units of cargo (TEUs) from October to November, but a 6.1 percent increase over November 2012. For the calendar year, container traffic was up 6.4 percent. Exports were strong, with shipments of agricultural products, particularly grain, being a significant driver of those gains. SPA spokesperson Erin Pabst said
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terminal-specific information was unavailable, so it was not possible to determine exactly how the Inland Port affected the latest figures. “We’re pleased with the growth at the Inland Port thus far, and we will continue to add new customers,” she
said. “We plan to move about 40,000 containers at the Inland Port initially.” Officials have said the port could be expanded to handle 100,000 containers eventually and construction at the site continues, though it is now fully operational.
USC Business School Names New Dean By Jennifer Oladipo | senior business writer | joladipo@communityjournals.com
University of South Carolina has named a new dean for the Darla Moore School of Business. Peter Brews, a professor of strategy and entrepreneurship at the Kenan-Flagler Business School at the University of North Carolina (UNC) and immediate past associate dean of its OneMBA program, will become dean of the Moore School Jan. 16. Brews succeeds interim dean John McDermott, who has served in the position since June when Hildy Teegen concluded her tenure as dean after serving six years. Michael Amiridis, executive vice president for academic affairs and provost, said in a statement that
Brews was selected for his exceptional leadership in business and executive education and scholarly achievements in international business. Brews is a native of South Africa, where he moved into academia after
a career in banking and finance. He started as lecturer at the University of Witwatersrand in Johannesburg, South Africa, and was visiting professor at various U.S. universities. He then served as an assistant pro-
December 27, 2013
fessor at Babson College for a year before teaching at Duke University’s Fuqua School of Business, then UNC. At UNC Kenan-Flagler, Brews teaches global context to full-time and executive MBA students and global strategy to students in the OneMBA, a program he suggested to the school soon after joining in 2000, according to USC. He has written extensively about strategic management for Internet-generation companies, and over the past decade has focused on how nations, firms and individuals cope with the fast-changing, complex, highly competitive global environment of the early 21st century.
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UBJ DIGITAL MAVEN
By LAURA HAIGHT
I’ve Looked at Clouds Through Windows and Glasses Top tech trends of 2013
Technology moves so fast, it’s hard to fathom that just seven years ago there were no tablets, there were no smartphones. Most of us were hoping to get a new PC at work and mobile employees were angling for a new PCMIA wireless card so they could connect to the office via a wireless VPN. Today, according to the Pew Research Center, 56 percent of all American adults have smartphones and another 36 percent have tablets. That’s like zero to everywhere in just a few years. It may be the fastest adaptation to a new paradigm in modern history (if you are old enough, think back to the first gas crisis in 1972. Forty years later, we have barely crawled forward toward alternative fuel vehicles). Here’s my take on the top tech trends of 2013.
go to a manual to figure out how to close an application.” There have been casualties along the way: The PC was declared dead, then not dead but maybe sleeping. My opinion: The PC – the big black box on the desk (or floor) – is probably terminally ill. Small businesses are the PC’s biggest adapter and the least prepared to just ditch a significant fixed asset investment. But when they are depreciated in five years, they will probably NOT be replaced with another PC. Maybe it will be a laptop, or a laptop/ tablet hybrid, or maybe whatever hasn’t been seen yet. But it won’t be a PC.
Clash of the Titans Technology is starting to look a lot like politics. Apple people hate Windows people and Android people hate Apple people, and so it goes. 2013 sharpened the arguments, with Apple winning a significant lawsuit against Samsung, and Microsoft coming off the ropes with an improved Surface RT and Pro tablet that claims to be the tablet for people who work. Windows 8 was another shot over Apple’s bow, although adaptation is slow. Many businesses don’t have the touch screen hardware necessary to take advantage of the tile interface, which is designed for touch, not a mouse. Said one local software developer: “It’s the first time I ever had to
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Mobility and BYOD Part of why it won’t be a PC is mobility. The adaptation to smartphones and tablets has changed the way we live, work and communicate. An expanding infrastructure, increasing understanding of and less fear of cloudbased apps and storage, are all leading us to be untethered from our offices. Again, technology changes have done a 360 double-Salchow with a sit-spin. It took Y2K (c’mon, you remember that, right?!) to make businesses look at technology as a critical business function. That’s when businesses started developing IT staff, establishing professional standards and accountability for computing, bringing chief information officers into the boardroom and building data centers managed by professionally trained staff. By 2008, businesses around the
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Today, 56 percent of all American adults have smartphones and another 36 percent have tablets. It may be the fastest adaptation to a new paradigm in modern history. country were dismantling what they had just built and now – with mobile devices as the driver – we are back to Bring Your Own Device (BYOD) to work and allowing our employees to use their personal equipment for work. Why is this significant? 1. It starts to take the responsibility for providing the employees with the tools to do their jobs away from the employer. 2. It requires – no, it DEMANDS – that employees stop being babies about security. No, your 15-year-old cannot play online video games on your unsecured device that is connected to your business network. And for employers, this does not take you off the hook. What will you tell your customer? “We didn’t do it, it was Bob’s iPad that was hacked!”
Through a glass darkly – what things will we see? They look funny. And have you ever seen someone walking down the street wearing Google Glass and gesturing with their heads? It’s a hoot. You may be tempted to write it off as a fad, but that would be shortsighted. Google Glass is just a toe in the water, but the ripples will extend significantly. Wearable tech may take many forms and
you may be using some of it now: wristbands that track your steps, heart rate and sleep patterns, for example, like Nike’s Fuel or the FitBit.
2013 is also the year that we started to talk about The Internet of Things or Internet 3.0. Devices monitoring themselves, communicating with each other, adapting their programming to changing conditions without the benefit of human interaction. It’s very “I, Robot” with incredible benefits intertwined with real risks. The warning label here should read: Pay Attention. Happy 2014! Laura Haight is the president of Portfolio (portfoliosc.com), which works with small businesses to incorporate emerging media and technology into its business communications, operations and training.
UBJ INNOVATE
By NAN JOHNSTON
A Learning Legacy Clemson’s Center for Corporate Learning got its start nearly 50 years ago The end of the year is a great time to look back at where we have been and contemplate where we are going. All organizations must evolve if they are to survive, but few have experienced as many twists and turns as ours. From humble beginnings, we have developed into a leading provider of continuing education and a wonderful resource for individuals and companies in Greenville and beyond. Clemson’s Center for Corporate Learning had its beginning in the 1960s as an offshoot of the College of Textile Science & Industrial Management. It was originally known as PACE – the Center for Professional Advancement and Continuing Education. In keeping with the focus of the college, offerings were initially limited to hosting textile conferences and various textile-related technical educational programs. In 1982, PACE expanded into the one-day seminar market, very innovative and unique at that time. PACE was the precursor to companies like CareerTrak and SkillPath and defined the format for one-day seminars that is still popular today. A great variety of topics was offered including maintenance management, packaging design and soft skills and administrative improvement. Soon PACE was conducting as many as 12 seminars a day across the country – nearly 600 per year. The varied subjects ranged beyond the scope of experience of tenured faculty in the College of Textiles, so professionals were hired to conduct the training. The 1990s arrived, and PACE had to change with the times. This led to reworking the seminar format into one-day conferences with well-known speakers. The first offering was known as the PEOPLE conference (Promotion of Excellence in Organizations
From humble beginnings, we have developed into a leading provider of continuing education and a wonderful resource for individuals and companies in Greenville and beyond. through Productivity, Leadership and Empowerment) and provided attendees around the country the opportunity to hear speakers like Stephen Covey, Tom Peters and Peter Drucker. Registrations for the one-day conference were $895, and they were held in Tier 1 cities like New Orleans, Denver and Washington. One conference of note featured Deepak Chopra, who spoke without notes for the entire day. Another featured Colin Powell, who was transported to and from the event in the Clemson University plane. The success of these initial conferences gave PACE a great deal of political clout. Then 2008 brought another wave of creative destruction. PACE moved under the aegis of the College of Business and Behavioral Science, and sought to capitalize on its relationships with Greenville’s community of corporations and businesses. The name was changed to the Clemson Center for Corporate Learning (CCL),
and the mission expanded to include providing highly targeted training that results in measurable performance improvement for businesses in the Upstate and beyond. Using the strong Clemson brand to market programs that easily draw participants from a 200-mile radius, CCL provides contract training (offered in-house to the client and typically customized or co-designed) and also “open enrollment” classes held at our new campus at ONE Main Street in Greenville. CCL partners with faculty or consultants to offer engineering programs that last three full days or more on a repeat basis several times per year and recently launched the Clemson Mini-MBA Certificate Program, a series of five seminars which meets on the first Friday of every month. Seminars include
“Leading and Motivating,” “New Media and Social Spaces,” “Project Execution,” “Inside the Numbers” and “Business Strategy.” Students can register at any point in the curriculum cycle and upon completion of all five seminars earn the Mini-MBA certificate. Celebrating its fifth year in 2014, the Clemson University Leadership Summit will be held the week of October 20-25. This full week of intensive leadership training for emerging high-potential leaders allows participants to interact with some of the most successful leaders in the region, and then flex their leadership muscles by tackling a challenge project designed by Center for Corporate Learning partnering with the United Way. Though CCL has seen many changes, some traditions live on. The Clemson University Annual Global Tire Industry Conference – which draws participants from the Northeast, Midwest, West Coast, Great Britain, Israel, Australia and Asia – is hosting its 30th conference in Hilton Head in 2014. South Carolina is now the largest manufacturer of tires in North America, and the Clemson Conference is internationally known as the most important conference of the industry. The Clemson Center for Corporate Learning is proud to have a rich history of serving businesses and professionals in the Upstate and beyond, and we look forward to what the next 50 years will bring.
Nan Johnston is the interim director of the Clemson University Center for Corporate Learning.
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UBJ WORKING WELL
By MATT JOHNSON
The Power of Perspective Kelly McGonigal, Ph.D., is an established health psychologist who recently recorded a TED talk on “How to make stress your friend.” Due to my interest in stress research, I watched it several times, analyzing the message and the research supporting her conclusions. One of the most interesting studies she mentioned was conducted by the University of Wisconsin-Madison. Researchers asked 29,000 people to rate their level of stress over the past year and had them describe how much stress influenced their health. Then public death records were used to determine the passing of participants over the next eight years. This research determined that participants who reported high levels of stress and who believed stress had a huge impact on their health had a 43 percent increase in risk of death. What was even more interesting was that participants who reported high levels of stress but believed that stress did not have a negative effect on health were among the least likely to die within the study population, even in comparison with some who reported experiencing only a little stress. Using this population sample to estimate the mortality impact, McGonigal came to this conclusion: The belief that stress has negative effects on health is the 15th largest cause of death annually. Further research has been conducted to determine the physiology behind this finding. A study done at Harvard taught participants the intervention to be grateful for the body’s stress response. They were educated on how this response primed them for higher performance during times when need was greatest. Those who utilized this perspective effectively were more successful in performing under a high-pressure situation. Also their blood vessels responded more appropriately – instead of the typical response of
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Kelly McGonigal, Ph.D.
These are tools that assist in maintaining a balanced perspective of life that allows individuals to deal with difficult events more effectively. constriction, increasing the risk of heart damage, these participants’ vessels dilated – very similar to what happens when people experience joy and courage. This was attributed to an increase in a hormone called oxytocin. This hormone had originally been associated with childbirth and mother/baby bonding, but after further research it was found to be much more influential. As a hormone, it has a long résumé of creating the feelings of empathy and compassion, motivating individuals to reach out for social contact, forming and strengthening bonds in relationships, causing dilation of blood vessels, and even having a role in controlling blood pressure, decreasing diabetes risk, and facilitating heart tissue repair after a stress event. This research intrigued me, for it offers support for the idea that a person’s perception of something like the stress response can determine positive or negative outcomes. Health promotion interventions historically have only focused on behaviors like exercise frequency and nutrition habits. Rarely do they connect with
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a person’s belief system or overall perceptions to assist them in developing a clear perspective that promotes health. Within the field of psychology, experts like Martin Seligman, Ph.D., have researched interventions that assist in bringing clarity to perceptions of reality, even during times of high stress. These interventions improve quality of life and performance among populations. They are very familiar but have become harder to incorporate due to side effects of technology and living in a culture of entitlement. Each intervention builds strength by renewing a healthy perspective. • Gratitude: Participants record statements of gratitude every day and express written thanks to the individual responsible. • Mindfulness: Fight the multitasking epidemic. Be aware of the present and those within your radius. Refrain from checking mobile devices during conversations or meetings. Instead, focus full attention and maintain eye contact.
• Acts of kindness/volunteering in the community: Examples are sending an encouraging email, paying for a stranger’s coffee further back in line, or volunteering in a local soup kitchen. Some studies have shown these interventions have the added benefit of increasing oxytocin levels and promoting human connection, positive side effects that boost resilience in life. These interventions are not about ignoring the tragic and the frustrating events that occur. Rather, these are tools that assist in maintaining a balanced perspective of life that allows individuals to deal with difficult events more effectively. As a disclaimer, these tools do not replace medical care for individuals with issues that require the assistance of a medical specialist. As research supporting these interventions gains momentum, companies should consider finding ways to implement them within their corporate culture. An appropriate implementation plan would include education and creating an employee forum for the expression that comes out of these interventions. All employees within an organization are important and vital to the success of culture change. Partnership and communication are crucial in moving forward to a common goal. It is not an easy task, but the prize of heightened health for all involved is worth the fight.
Matt Johnson is the preventative program coordinator at St. Francis Workwell and a graduate of Furman University who has been living in Greenville for the past 16 years. He enjoys running, hiking, participating in his church community, and spending time with his wife and four children.
UBJ Your Money
By KYLE G. PUTNAM
Commercial Real Estate: A Mainstream Investment? Office buildings, retail shopping centers, hotels, apartment complexes and medical office buildings all make up a part of our everyday environment, but commercial real estate has not primarily been a core component of many investors’ asset allocations. Throughout history, there have been three primary asset classes in investing: stocks, bonds and cash. However, commercial real estate is making a strong push to earn its place as the fourth major investment class. Commercial real estate is a very compelling investment option with its cash flow component that closely resembles a bond-like structure and an appreciation component that acts as a hedge against future inflation. There has been a significant influx of capital over the last two years in commercial real estate investments due to the current low yields on bonds and the volatile nature of the stock market as well as the increased transparency, deeper liquidity and a larger array of investment opportunities for commercial real estate assets. As with most investments, a potential real estate investor needs to consult and obtain guidance from an advisor. However, unlike stocks and bonds, commercial real estate re-
quires investment acumen, knowledge of local and regional market conditions, and in-depth management expertise, or the cash flow of
Commercial real estate is making a strong push to earn its place as the fourth major investment class. the property can decline significantly. Those with moderate to no experience in commercial real estate are best served by working with commercial real estate investment advisors who are able to direct their clients to potential opportunities. Our primary goal as real estate investment advisors is to focus on the investment objectives, risk tolerance and time horizon for an investor. There is no “one size fits all” approach to commercial real estate investing, as investment goals and risk appetites vary significantly among investors. For example, individuals who are in or nearing retirement tend to
focus on a more conservative approach centered on stabilized cash flow, credit tenants, longer-term leases and limited debt exposure to minimize risk. A particular favorite among these type of investors are single-tenant retail properties, such as a Walgreens, Starbucks or McDonalds, where the operating expense burden falls mostly on the tenant and the annual return targets tend to be in the 6 to 10 percent range with moderate leverage. These properties are also a key tool in estate planning for transferring wealth to heirs. On the other hand, younger investors who have the ability to take a longer-term approach to investing can focus on obtaining better returns and greater future appreciation. These types of investors may be willing to acquire value-add properties and focus on repositioning them over time by improving cash flow through better leasing, increased
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Kyle G. Putnam, CCIM, is principal for the Capital Markets Group of Avison Young, a global commercial real estate services firm. He specializes in the representation and sales of investment grade, income-producing commercial real estate assets and also focuses on sourcing and capitalizing real estate acquisitions through the debt and equity markets. Putnam may be reached at kyle.putnam@avisonyoung.com or 864-334-4145.
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UPSTATE BUSINESS JOURNAL
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UBJ PROFILE
‘A Calling, Not Just a Job” Bobby Hitt never expected a government career, but is proud of his accomplishments as state commerce secretary By SHERRY JACKSON | staff | sjackson@communityjournals.com
S.C. Secretary of Commerce Bobby Hitt, left facing camera, was in Greenville for the ONE project groundbreaking.
A
Appointed by Gov. Nikki Haley in 2011 to serve as secretary of commerce, Robert “Bobby” Hitt never imagined he would end up as a state employee. It was “an interesting route to get to this job,” he says. Hitt grew up in a newspaper family, with both his father and grandfather working as newspaper editors. Hitt says he started working in the family business when
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UPSTATE BUSINESS JOURNAL
he was an undergrad at the University of South Carolina, and it just “sorta stuck.” He spent 17 years at The State and The Columbia Record, serving as managing >>
December 27, 2013
>>
editor of the Record from 1980 until 1987 and managing editor of the State from 1988 until 1991. When The State newspaper was sold to Knight Ridder in 1986 (it was later sold in 2006 to the McClatchy Company), Hitt said he realized the newspaper business was changing, and after five years figured out “he was in the wrong fraternity house.” So, Hitt left the industry and went to work as the director of planning and development at Columbia’s Nelson Mullins Riley & Scarborough law firm in 1991. Hitt was responsible for helping the company grow its business, and was instrumental in bringing BMW to the Upstate. That role led to a position at BMW, where he spent almost 18 years as a manager at the company’s Spartanburg plant. When the transition/ search committee for then Gov.elect Haley called Hitt for advice on candidates with a manufacturing background to be interviewed for secretary of commerce, Hitt says he originally supplied a list of possible contenders. But the committee representative thought that Hitt would be a good candidate himself. Hitt says he agreed to do the interview, but “wasn’t really focused on it and didn’t think there was a chance I would get the position.” Next thing he knew, Haley was calling him asking if he would take the job. Hitt says it has been a “remarkable experience,” describing the position as “a calling, not just a job.” Putting together and managing a talented staff focused on putting South Carolina “on
the forefront for Southeastern states for manufacturing and continuing to build a middle class in South Carolina” has been “a lot of fun.” Hitt recently sat down with UBJ to talk about his leadership of the Department of Commerce.
So what is a typical day for you like? Well, it starts fairly early, ‘cause I’m getting older and you tend to wake up early whether you want to or not. I spend the first couple of hours of the day reading quite a few newspapers, financial and national sites online to keep up with what’s going on. I’ve also been known to send emails to my staff in the middle of the night. I carry multiple phones with me and my phone starts ringing around 7:30 a.m. I’m in the office in meetings or on the phone all day long, talking to staff, clients, allies, politicians or business leaders. I generally spend a couple of days a week traveling within the state, although that’s fortunately a little less these days. This is definitely a business job where you are negotiating partnerships. My workweek doesn’t have any specific boundaries and business happens when it happens, even if it’s on weekends or holidays. Two years ago, we closed a major deal on Labor Day. Contrary to popular belief, you usually don’t make deals over a steak dinner and a bottle of wine; it’s more of a good business plan. Although we do take out-of-country visitors to dinner on occasion out of respect, so they’re not left all alone.
How does your background help you in your current role? Well, I grew up in a newspaper
family, and newspaper people have to have a lot of curiosity, have to be a quick study and be able to size up people and circumstances quickly. You got edited every night at the dinner table, and I continue to do that to my sons still today. I have a lot of curiosity and never really gave much thought about being in the business world. When I was an undergrad, I started as a chemistry major, but when all of the girls left the class, I ended up migrating to journalism. I actually have a degree in advertising and research.
What is the best quality or trait that you bring to this position? I grew up in Charleston and lived there about 20 years, I lived in the Upstate for about 20 years and in Columbia for 20 years, so one of the things I think I bring to the table is I’ve lived in three major regions of the state. I’ve been able to build different kinds of relationships and am able to bring the best resources available to push South Carolina forward and promote doing business in South Carolina.
What do you think is your greatest accomplishment? I was part of the team that put together ICAR [the International Center for Automotive Research], and I think that was our team’s best work. We worked with BMW, Clemson and the Department of Commerce to create something that will have a lasting impact in the state. I’ve also brought a lot of resources together across agencies and believe that’s why we are having a higher level of success than our neighboring states in North Carolina and Georgia.
What do you like most about your job? What do you like least? I like everything about my job. Mostly I like people – the ones I work with and people we get to engage with. I also like that I get to talk about my favorite subject, South Carolina. By style and personality, I’m someone who likes to empower smart people and am very pleased with what we’ve been able to accomplish here at the agency. I also like that I get to work with Gov. Haley. She is terrific in the business world, has good business instincts and is a great deal-closer. CEOs like to talk to CEOs, and she’s the CEO of South Carolina. When I first took this position, I asked her to give me an hour each day, and she does that. She also gives me room to do my job and we complement each other very well. Least? There are only 24 hours in the day and sometimes my wife helps me remember that. There are times when I would like it to just stop for a little while, but it doesn’t. So I maintain a calendar and try to manage all of the requests that come in. As we have matured together as a staff and team, there are more people who can go out and represent commerce in South Carolina other than just Bobby Hitt, so that helps.
So looking ahead, what’s next when this role ends? I’ve been very fortunate in that I’ve never had to look for a job, work just seems to find me. I’ll be 65 years old when this term ends. I don’t know what I’ll do next. I keep trying to retire, but I don’t really think retirement is in my constitution.
THE BASICS: BOBBY HITT ALMA MATER: University of South Carolina FAMILY: Wife, Gwen, and two sons, Lucas and Robert Paul CURRENT RESIDENCE: Fairfield County, just north of Columbia FAVORITE PLACE FOR A BUSINESS DINNER: Probably my house. ONE WORD TO DESCRIBE HIMSELF: South Carolinian.
HOBBIES: I live on a lake and am very much into boating. I also do woodworking and am rebuilding my dock right now. I like to play golf but haven’t had much time for that with this job. FAVORITE PLACE TO TRAVEL: Italy FAVORITE BOOK AND WHY: “Bunch of Amateurs: A Search for the American Character,” by my brother, Jack Hitt. He’s remarkably talented.
ONE THING FEW PEOPLE KNOW: I was a Scout leader for my sons for about 15 years and a baseball, basketball and soccer coach. I wanted to be directly involved with my sons’ lives and this is how I made everything work. CHILDHOOD AMBITION: I was really interested in advertising and marketing. I thought I was creative and thought that field was exciting. I started an ad agency when I was in school and was
December 27, 2013
actually the advertising manager for the Gamecock when I was an undergrad as well. I always wanted to be an ad guy and a marketing guy, and that’s what I had prepared myself for. BEST ADVICE FOR OTHERS: Life is an adventure, doors will open and you have to be ready to walk through them. Don’t be afraid to reach for something that might be slightly out of your grasp.
UPSTATE BUSINESS JOURNAL
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COVER STORY
A YEAR FOR THE BOOKS
Many of the biggest business news stories in 2013 were things you could see with your own eyes. Buildings went up, offices shut down, banks grew, campuses expanded, ground was broken, cargo got moving. Amid all of that, state and federal
happenings promised to impact bottom lines for better or worse, and business owner confidence teeter-tottered. Here, UBJ looks back at just a few of the top stories that had people talking and business moving this year.
Inland Port Opens for (Cargo) Business
14
Norfolk Southern Corporation industrial development manager Brian Gwin, right, talks about the South Carolina Inland Port at a public information session in Greer.
anchor customer, and SCSPA has been marketing heavily to others. The project was announced in January 2012.
GSP Revamp Takes Off Development at the Greenville-Spartanburg International
UPSTATE BUSINESS JOURNAL
December 27, 2013
Airport continued throughout 2013 with the four-year, $115 million effort dubbed WINGSPAN. The project kicked off in June 2012 and will be the second-largest renovation and expansion effort since the airport opened in 1961. The goal of WINGSPAN is to in-
Photo by Greg Beckner / Staff
The much-anticipated Inland Port opened in mid-October after weeks of setbacks from an unusually rainy season. The South Carolina Ports Authority (SCSPA) has billed its inland port as an extension of operations at the Port of Charleston, connecting the foothills to the seacoast by way of a 225-mile railroad line. As such, the $50 million project will have a significant impact on the Upstate economy, boosting logistics businesses and making the area more attractive for companies with major distribution needs. It is also expected to remove 25,000 truck trips annually from I-26. As the Port of Charleston undergoes renovations to become just the second in the nation to handle supersized cargo ships in the coming years, the inland port is expected to increase the region’s status as a global hub. BMW was the port’s initial and
crease capacity, improve efficiency, incorporate safety processes, integrate sustainable practices and impact the local economy. Projects already completed or in the works are the relocation of the rental car customer service center, a new TSA pre-check expedited screening and TSA checkpoint, renovation of baggage claim with three new baggage carousels and new dining and retail options that will include Thomas Creek Brewery, RJ Rockers, Chick-fil-A, Greenleaf’s Grille, Dunkin’ Donuts, Baskin-Robbins and Hudson News. In addition to the airport overhaul, a new website and marketing effort, GSP 360, was designed to get the word out about surrounding tracts of land that are prime development opportunities. The GSP 360 initiative is the result of a study completed by the airport in 2012 on land-use planning and development. The study identified >>
Workers build a protective wall around a newly installed baggage carousel at the GSP baggage claim area to protect it while other work is finished in the area.
>> nine tracts of land, approximately 2,000 acres, which are located close to the airport and are available now.
ONE Big Project The $100 million mixed-use Project ONE from Hughes Development Corp. is home to dining, retail, law firms and educational spaces. The building at the corner of Main and Washington streets in downtown Greenville has been a buzz of activity as it replaced the long-vacant Woolworth building. Partners of Greenville ONE have gifted Clemson University an in-kind donation of space worth about $9 million in the building, giving four floors to Clemson’s College of Business and Behavioral Science and other centers. The ground floor houses popular businesses such as the Tupelo Honey restaurant and Brooks Brothers. Most recently, CertusBank opened its flagship branch with an eye-catching contemporary design fully visible from Main Street. The project broke ground in 2011, and ongoing construction made business difficult for some of the building’s neighbors, one of which eventually
closed. Others said they were unaffected or saw increased traffic. The new building, along with adjacent real estate Hughes Development Corp. purchased and plans to renovate, are permanently reshaping prime blocks of downtown real estate.
building’s occupants. Other hotels, Embassy Suites Hotel at Riverplace, a “trendy boutique hotel” at River’s Edge and a Homes2Suites at North Main, were also recently announced. Mixed-use development also took off. The Beach Company received final approval earlier this month for a new mixed-use development at the corner of Stone Avenue and Main Street to replace a now-vacant 4.5-acre lot owned by the Collins family. Plans call for several three- and four-story buildings with a total of 226 units, 336 parking spaces and 21,175 square feet of retail space. The developer hopes to break ground in late summer or early fall 2014 and construction will take about 18 months to complete. Another mixed-use development at
Trail. It will also have expansive mountain, city and river views. Finally, North Markley Street transformation plans were also announced, with new office space, including the relocation of Keller Williams Realty to downtown, an event venue and a restaurant with rooftop dining.
Greenville Tech’s Enterprise Campus Greenville Technical College announced plans for a brand-new enterprise campus that will feature an innovative learning environment for manufacturing and other new businesses. Named the Center for Manufacturing Innovation (CMI), the new campus is expected to close the middle gap between research and market.
Full Speed Ahead for Downtown Development Greenville’s downtown continues to thrive with many new development projects announced this past year. Development on the ONE project wasn’t even completed when plans to overhaul the nearby Bank of America tower were announced. Hughes Development Corp. will give 101 N. Main St. a multimillion facelift that includes a new Aloft hotel, lobby facelift, and updates to mechanical equipment and exterior areas. The renovation will also alter the base of the tower to create four floors of available innovative space set off by 4,000 square feet of glass to serve as the building’s new façade. The first floor will boast basketball and bocce courts and other amenities, and will be available to all of the
A construction worker moves into position to weld a part of the facade of the Project ONE building into place.
Plans were unveiled for renovations to the Bank of America tower in downtown Greenville, including a new Aloft hotel.
Stone Avenue and Rowley Street got the green light last month from the Greenville Planning Commission. The developer, Blue Wall REI LLC, plans to redevelop 1.14 acres of vacant properties into a four-story, 51-unit apartment building with 1900 square feet of ground floor commercial space and on-site bicycle storage to promote an urban lifestyle. In August, developer Phil Hughes announced plans for a new mixed-use development called River’s Edge at River and Broad streets. The project will have retail space, a restaurant, a hotel and the only apartment building in Greenville’s central business district located on the river with access to the Swamp Rabbit
December 27, 2013
The program will continue to train students in high-tech manufacturing techniques, but will also be a unique venue that co-locates and shares space for industry to create prototypes and serve as a manufacturing accelerator where fledgling companies will have access to equipment. The campus is expected to have a Manufacturing Honors College, the first of its kind at a two-year college. It will also feature a Youth Apprenticeship program designed to integrate schoolbased and work-based instruction to prepare high school juniors and seniors for employment in manufacturing. TOP STORIES continued on PAGE 16
UPSTATE BUSINESS JOURNAL
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TOP STORIES continued from PAGE 15
An Advanced Machining Center (ADM) will provide a living lab for worker education, training and product development. The lab will be equipped with state-of-the-art computer numeric control (CNC) tools, electric discharge machining (EDM), grinders, and multiple-axis lathes. There will also be a Rapid Prototyping Center equipped with 3-D modeling, stereolithography, selective laser sintering, and deposition modeling technologies to take new products from concept to market quicker.
The BI-LO Center’s new name was announced at a press conference in September 2013. As of Oct. 1, the center was called the Bon Secours Wellness Arena.
Bon Secours Wellness Arena in a $4.5 million, 10-year agreement. In addition, with help from the county, the arena began a $13 million capital improvement program to update the 15-year-old arena with suite renovations, a new scoreboard and ribbon board, a curtain system and a new roof. Phase one of the work is complete and phase two will begin in early 2014. The arena’s new name, which required a city sign variance, is expected to appear on the building in January.
Feds Shut Down, Business Slows Down
Bye-Bye, BI-LO Center When the Greenville County Arena District announced in April that BI-LO had not renewed its 15-year naming rights contract, arena officials began seeking a new sponsor to add its name to the downtown venue. The contract was estimated at $3-$5 million and with much fanfare in September, Bon Secours St. Francis announced that it would sponsor the
The federal government’s partial shutdown in October, brought on by Congress’ failure to adopt a budget, affected bottom lines in in the Upstate. Deliveries of Boeing’s 787 Dreamliner cargo planes
halted briefly. The biotech sector worried about how slowdowns at the Food and Drug Administration (FDA), the National Science Foundation, and the National Institutes of Health (NIH) affected the movement of products and technologies from R&D to market. The shutdown forced the temporary closing of Kings Mountain National Park in Cherokee County just as the park geared up to receive thousands of visitors at its commemoration of the anniversary of the Battle of Kings Mountain. Festivities were moved to downtown Gaffney instead, with reenactors performing in a parking lot rather than at the historic site. National Guard technicians were furloughed, and Head Start preschool programs for low-income children closed briefly until philanthropists bailed them out. Harder to measure was >>
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UPSTATE BUSINESS JOURNAL
December 27, 2013
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>> the general sense of pessimism that worsened when added to an insecure economic climate characterized by slow recovery, a looming debt ceiling, and costs associated with ACA compliance. Many people emerged unscathed, but those who felt the impacts directly felt them strongly.
Affordable Care Act Jangles Nerves The Affordable Care Act was the story that would not quit this year. First, the requirement that employers provide adequate insurance for fulltime employees or pay fines became the focal point for many business owners. Some saw it as an opportunity to offer additional benefits to their employees, but the conversation generally was colored by confusion over implementing the law and fear of increased costs associated with doing so. Large employers, those with 50 or more employees, got a bit of relief this summer when the Treasury Department announced that parts of the law would not be implemented until 2015. Assistant Treasury Secretary for Tax Policy Mark Mazure said the timeline was changed in response to concerns about the bill’s complexity and time needed for implementation. The additional year would also give the government time to simplify the reporting requirements. Then, some saw opportunity in the confusion and new needs created by the massive piece of legislation, from independent consultants to the first health insurance co-op in the South, founded in South Carolina. Finally, the law requires everyone above a certain income level to have insurance or pay a fine, but also allowed for federal and state-run health insurance exchanges where they might sign up beginning in October. South Carolina employers who might have hoped that the federal exchange would present affordable insurance options will have to wait awhile as severe website problems slowed the process and discouraged people from signing up.
Angel Investment Gets New Wings
a potentially lucrative channel with the passage of the High Growth Small Business Access to Capital Act, more commonly known as the “Angel Investor Bill.” The law provides a 35 percent income tax credit for people who invest in qualified startups within the state. With up to $5 million a year in tax credits available
to claim, the bill’s proponents see it as a great start. The bill aims to encourage the state’s high-net-worth individuals to do more of their investing at home while creating an atmosphere in which promising early-stage businesses can grow, creating jobs and improving the economy along the way.
It was exciting news for various Upstate groups that had been pushing for the bill since 2011, as well as for small companies who might now see a new revenue stream from more than more than 100,000 accredited investors across the state and even out-of-state investors who can sell the credits.
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This year South Carolina opened
December 27, 2013
UPSTATE BUSINESS JOURNAL
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UBJ SQUARE FEET
New Development for Downtown Spartanburg A new mixed-use multi-story development, which will include retail, office and residential space, is scheduled to break ground in downtown Spartanburg the first quarter of 2014, according to GPN Architecture. The Wall Street Project, to be built on the corner of Wall and Broad streets in Spartanburg, should be completed later in the year, the design company said. The project, designed by GPN and de-
veloped by Midtown Properties, will consist of up to four retail/office units ranging from 500-750 square feet, GPN says. Nine one- and two-bedroom apartments will range in size from 570-950 square feet. Each of the upper-level apartments will have its own private balcony. Spartanburg City Council approved the sale of the land, now the site of a parking lot, in mid-May to Midtown Properties for $30,000.
Report: Residential Sales Climb Statewide By Sherry Jackson | staff | sjackson@communityjournals.com
New market numbers released by South Carolina Realtors show that November was another encouraging month for residential sales across the state. The report shows that new listings in South Carolina increased 2.5 percent to 6,819 in November. Pending sales were up 4.1 percent to 4,087 and inventory levels shrank 4.6 percent to 45,755 units. The Upstate numbers look great, says Nick Sabatine, CEO of the Greater Greenville Association of Realtors. “We are 24.5 percent ahead of last year’s sold units year-to-date. Our volume is up 28.3 percent and our median price is up 4.3 percent. Also, our average days on the market are at 93 days, an 11.4 percent decrease over the same 11month period a year ago.” Other positive signs in the report show the median home sales price statewide increased 5.3 percent to $157,900 and number of days on market for properties was down 13.8 percent to 114 days. Overall for the year, from Dec. 2012 through Nov. 2013, pending sales in the state were up 15.8 percent. The price range with the largest gain in sales was the $300,001 and above range, where prices increased 25.6 percent.
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Number of Residential Homes, Condos & Villas Sold
MOST RECENT MONTH
11-2012 Nov. ‘13 % Change
Aiken Beaufort Charleston Trident Cherokee County Coastal Carolinas Greater Columbia Greater Greenville Greenwood Hilton Head Area North Augusta Piedmont Regional Greater Pee Dee Southern Midlands Spartanburg Sumter/Clarendon County Western Upstate State Totals*
95 98 +3.2% 87 86 -1.1% 836 886 +6.0% 29 22 -24.1% 764 717 -6.2% 616 607 -1.5% 633 699 +10.4% 44 40 -9.1% 307 271 -11.7% 69 80 +15.9% 217 176 -18.9% 129 128 -0.8% 17 16 -5.9% 267 257 -3.7% 80 91 +13.8% 209 251 +20.1% 4,424 4,449 +0.6%
MOST RECENT QUARTER Q2 12 Q3 13 % Change 358 432 +20.7% 286 329 +15.0% 2,898 3,674 +26.8% 78 119 +52.6% 2,373 2,785 +17.4% 2,118 2,674 +26.3% 2,148 2,739 +27.5% 174 202 +16.1% 835 1,003 +20.1% 255 302 +18.4% 711 844 +18.7% 412 450 +9.2% 76 72 -5.3% 802 1,011 +26.1% 291 343 +17.9% 841 996 +18.4% 14,656 17,975 +22.6%
YEAR TO DATE 2012
2013 % Change
1,228 1,394 +13.5% 1,009 1,189 +17.8% 9,624 11,678 +21.3% 276 371 +34.4% 8,046 9,075 +12.8% 7,045 8,602 +22.1% 7,054 8,749 +24.0% 559 647 +15.7% 3,058 3,337 +9.1% 889 969 +9.0% 2,290 2,607 +13.8% 1,416 1,561 +10.2% 249 267 +7.2% 2,680 3,296 +23.0% 975 1,145 +17.4% 2,745 3,167 +15.4% 49,410 58,326 +18.0%
*State Totals match the figures in the Monthly Indicator report, and are not a summation of the areas in the tables. This is done so as not to double-count any listings that may be found in more than one MLS. Source: SC Realtors
The median home price remained somewhat constant for the year, up 4.7 percent to $157,000. The property type with the largest price gain was in the condo segment, where prices increased 8.7 percent to $125,000. The report showed the price range that tended to sell the quickest
UPSTATE BUSINESS JOURNAL
December 27, 2013
was the $200,001 to $300,000 range at 114 days, whereas the price range that tended to sell the slowest was the $300,001 and above range at 138 days. Market-wide, inventory levels were down 4.6 percent. The property type that lost the least inventory was the single-family segment, where it decreased
3.5 percent. That amounts to 8.5 months’ supply for single-family homes and 9.1 months’ supply for condos. Not bad numbers for a month that has a “calendar effect.” As families gather together, fewer house hunters are scheduling showings and writing offers.
UBJ SQUARE FEET U.S. FORECLOSURE STARTS & COMPLETIONS 140,000
Foreclosure Starts
120,000
PRESENTS
Foreclosure Completions (REO)
100,000
80,000
60,000
Congratulations to the Greenville Chamber’s Oct-13
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SMALL BUSINESS OF THE MONTH
US Foreclosures Drop 15%, but State Rate Rises 10% By Sherry Jackson | staff | sjackson@communityjournals.com
According to a new report issued by RealtyTrac, a real estate information company, U.S. foreclosure activity decreased 15 percent in November overall. Foreclosure filings, which include default notices, scheduled auctions and bank repossessions, were reported on 113,454 U.S. properties in November, a 15 percent decrease from the previous month and a 37 percent decrease from a year ago. South Carolina, however, was among one of the states with the nation’s highest foreclosure rates, with 3,207 foreclosures in November 2013 or one in every 660 housing units with a foreclosure filing, a 10.43 percent increase from October 2013, but a 31.77 percent decrease since November 2012. The 3,207 includes lis pendens, notice of trustee’s sale and real estate owned properties. “While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed,”
said Daren Blomquist, vice president of RealtyTrac. “While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold.”
SOUTH CAROLINA FORECLOSURES IN NOVEMBER 3,207 FORECLOSURES • 1,732 lis pendens • 840 notice of foreclosure sales • 635 real estate owned
Award Presentation, from left to right: Chamber President/CEO Ben Haskew, Board Chair Luanne Runge, Ken Pelanda (Award Sponsor/Charter Business), Lori Coon (Award Committee Representative/Greenville Business Magazine), Liquid Catering Owner Tammy Johnson and Operating Partner Kathleen Byrne.
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increase from October 2013
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decrease from November 2012
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December 27, 2013
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UPSTATE BUSINESS JOURNAL
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UBJ SQUARE FEET
Larkspur Pointe Development Set for Five Forks By Sherry Jackson | staff | sjackson@communityjournals.com
Local developer STM Acquisition & Development has announced a new apartment complex that is set to begin construction in January at the Five Forks area next to Publix on Woodruff Road. The $14 million development, named Larkspur Pointe, will be a gated community with 145 total units consisting of 31 one-bedroom, 60 two-bedroom and 54 three-bedroom
units. The apartments will feature granite countertops, stainless steel appliances, nine-foot ceilings and custom finishes. The community will have a 25-meter pool, onsite fitness center, outdoor fireplace and 24-hour security. The units will be larger than other apartment homes in the area. “Most new projects being developed in the region deliver smaller units to the
market,” said Stephen Mack, president of STM. “We have chosen to go in the opposite direction by creating larger living space for our residents. At Larkspur Pointe, three-bedroom units will be pushing 1500 square feet.” Mack said that estimated median income in the Five Forks community is more than twice the average income for the state of South Carolina and is what solidified the loca-
tion. Some of the highest-ranked public schools in the county are also located in this district, said Mack. “Shopping, Sports Club and Kiddie Academy of Five Forks are all adjacent to this site,” he said. “These are the perfect market traits we attempt to identify during our site pursuit.” Some units will be available in June and the project is expected to be completed by the end of 2014.
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UBJ THE FINE PRINT Cabela’s to Open in York County Cabela’s Incorporated announced last week that it will begin construction of a 97,500-square-foot store near Carowinds amusement park in York County in 2014. The hunting, fishing and outdoor gear retailer expects to open in Fort Mill in spring 2015 after a Greenville location opens in spring 2014. The company also recently announced plans to open a store in Garner, N.C., in 2015. The store will be located along Interstate 77 across from the Carowinds amusement park on a 20-acre parcel of land currently occupied by the Plaza Fiesta mall. Cabela’s expects to employ approximately 225 full-time, part-time and seasonal employees mostly from Fort Mill and the surrounding area.
“The overwhelmingly positive response to our recent Greenville and Garner announcements, coupled with the passion North and South Carolinians have for outdoor recreation, encouraged us to open a store in Fort Mill,” said Tommy Millner, Cabela’s CEO, in a statement. “We are thrilled to get to work on the project and look forward to opening the doors.” The Fort Mill store will include an aquarium, indoor archery range and a deli, the company said. The Sidney, Neb.-based company currently operates 50 stores across North America with plans to open an additional 20 over the next two years.
Southwest Cuts GSP-toNashville Direct Flights Greenville-Spartanburg International Airport (GSP) announced last week that Southwest Airlines will discontinue direct service from GSP to Nashville effective June 8, 2014. The airline will instead rely more heavily on connecting passengers through Houston and Chicago rather than Nashville. The airport said in a release that data show that about 50 percent of the passengers flying from GSP to Nashville are just passing through, connecting to other Southwest flights for travel to destinations beyond the Nashville hub. GSP communications vice president Roslyn Weston said most passengers who had previously routed through Nashville will find that they have more
options for further destinations by flying through Chicago Midway or Houston. “Southwest is dedicated to our customers in Greenville-Spartanburg. We do adjust our flight schedules seasonally and make decisions based on customer demand,” said Southwest Airlines spokesman Dan Landson in a statement. “Although flight numbers may change, Southwest’s plans to continue bringing our low fares and legendary customer service to GSP have not changed.”
Carolina Alliance to Merge With Asheville Bank Shareholders approved a proposed merger between Spartanburg-based Carolina Alliance Bank and Forest Commercial Bank of Asheville, N.C. Carolina Alliance’s shareholders voted Dec. 16, while Forest Commercial’s shareholders voted Dec. 10. The proposal was initially announced in August. The joint bank will operate as Carolina Alliance, and headquarters will be in Spartanburg. Carolina Alliance shareholders are expected to take the majority stake in the company, owning about 60 percent. Forest Commercial shareholders will own about 40 percent. The new bank will have about $385 million in assets, $277 million in loans, $314 million in deposits, and a capital position of about $50 million. It will serve customers principally in Upstate South Carolina and western North Carolina. It will have offices in Spartanburg, Asheville, N.C., Hendersonville, N.C., and Charlotte, N.C.; and
ACM to Expand Greenville Operations a proposed branch office to be located in Seneca. John S. Poole will remain CEO of Carolina Alliance Bank, and John D. Kimberly, president and CEO of Forest Commercial Bank, will become president of the bank. Carolina Alliance was advised in the transaction by FIG Partners LLC as financial advisor and Nelson Mullins Riley & Scarborough LLP as legal counsel. Forest Commercial was advised by Banks Street Partners LLC as financial advisor and Wyrick Robbins Yates & Ponton LLP as legal counsel.
Advanced Composite Materials LLC, a developer and manufacturer of specialty silicon carbide products and related composites, announced last week that it will expand operations at its existing facility in Greenville County, investing $3 million and creating between six and 10 new jobs. ACM established its facility in Greer in 2007 to manufacture silicon carbide microfibers for industrial ceramic applications, including microwaveable ceramic composites for the restaurant and food industry. With the expansion of its operations, ACM now intends to introduce a new class of larger silicon carbide fibers, according to a statement from the company. The new products will
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have the new brand name of SI-TUFF performance silicon carbide. “Our move into Greenville County was a success,” said Dr. Tom Quantrille, president and CEO of ACM. “Our Silar silicon carbide microfiber technology is now fully embraced by our target markets. Now, the company must expand our production to address new market opportunities essential to achieving our long-term vision for growth.” The company, located at 1446 S. Buncombe Road in Greer, will reconfigure and upfit a portion of its manufacturing space to accommodate the new equipment necessitated by the market expansion.
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New hires, promotions & award winners can be featured in On The Move. Send information & photos to onthemove@upstatebusinessjournal.com.
UBJ ON THE MOVE HIRED
HIRED
HIRED
HONORED
HONORED William G. Bragdon,
Marty Richards
Sam Outten
Charles “Chuck” Goessel
Mike Bryan
Joined the Children’s Museum of the Upstate as the new vice president of advancement. Most recently, Richards was the vice president of development for the Franklin Park Conservatory in Columbus, Ohio.
Joined law firm Nelson Mullins Riley & Scarborough LLP. He is a past president of the S.C. Chapter of the American Board of Trial Advocates and is a past president of the S.C. Defense Trial Attorneys’ Association.
Named senior accountant at Scott and Company LLC. Goessel is a CPA and a member of the firm’s Assurance and Advisory Services team. He was with Johnstone Graydon & Thompson CPAs prior to its merger with Scott and Company earlier this year.
Named as Trainer of the Year by the German American Chambers of Commerce. The GACC award recognizes excellence in workforce training. Bryan is a training specialist at the Bosch Rexroth Fountain Inn Manufacturing Facility.
ART:
of first impressions at accounting company A.T. Locke. Marketing Chair Megan Finnern is a client services manager at ShowCase Marketing. PaceSetters Chair Jon Hammond is an attorney with Womble Carlyle Sandridge & Rice LLP, where he focuses his practice on healthcare law. Investment Chair Maggie Martin works for Infor Global Solutions in software consulting services. Sports Chair Kathleen Byrne is operating partner for Liquid Catering and The Old Cigar Warehouse. Capacity Chair Marie Majarais Smith is SCIVN’s program manager and bilingual victim advocate. Talent Chair Matt Verley is branch manager and assistant vice president for Bank of Travelers Rest. Connects Chair Steven Epps currently serves as vice president
for Triton Custom Woodworks. Arts Chair Meghan Meier is the owner of Pure Romance by Meghan, and is one the Upstate’s leading women’s sexual health educators.
PSi Design recently welcomed Todd Dunlap as business development manager. Dunlap brings more than 15 years of consultative sales and strategic account management in the hospitality and construction industry to the PSi Design team. Prior to joining PSi Design, he was manager of business development in the U.S. Eastern Region for Egencia, an Expedia Inc. company.
T.L. Norris Gallery recently welcomed Lauren Allred as sales and operations coordinator. Allred recently moved to Greenville from Washington, D.C., where she worked for Deloitte Consulting.
BUSINESS DEVELOPMENT: The Greenville Chamber of Commerce’s LEAD program PULSE recently announced its leadership team for 2014. Chair Berri Hicks has worked in purchasing for twelve years and is currently a buyer for the Greenville Health System. Vice Chair Mike Pennington is owner of Rhino Concessions and Funnelicious. Social Chair Holly Pruitt is an account manager for Integrated Media Publishing. Leadership Chair Ebony Austin is the director
CONSTRUCTION/ ENGINEERING: O’Neal Inc. has hired Ronald Kay as construction manager and G.C. “Mack” McCall as safety technician. Kay has more than 30 years of experience in the construction industry. He previously worked with Faithful and Gould. McCall has more than 20 years of construction safety experience. He obtained a Bachelor of Science degree in business administration from the University of Tennessee in Knoxville. He comes to O’Neal from Universal Limited in Georgia.
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Goodwyn, Mills & Cawood Inc. recently announced Cody Reed, Mary Catherine Price and Tony Reid have attained their professional engineering licenses upon passing the Principles and Practice of Engineering exam. Reed works in the transportation division as a construction engineer and project inspector for state and federally funded highway and utility projects. Price concentrates primarily on water, sewer and repaving projects. Reid is a process engineer in the municipal engineering department, focusing primarily on
named to UBS Wealth Management Americas’ Top 35 Under 35 program. The program is designed to promote financial advisor best practices at UBS Wealth Management Americas and formally recognize each advisor’s demonstrated outstanding success in client service. Bragdon is the vice president of UBS Institutional Consulting Group.
biological and physiochemical treatment in both municipal and industrial sectors.
MARKETING/ PUBLIC RELATIONS: Infinity Marketing recently promoted Lauren Oliver to digital media manager and Michelle Jaramillo to media coordinator. Oliver has worked at Infinity since September 2012, overseeing analytics and reporting. Before joining Infinity, she worked for Nielsen as a marketing database analyst, providing in-depth analyses of marketing campaign effectiveness. Jaramillo started as an intern at Infinity and was quickly hired as a full-time media assistant. She has recently taken on additional responsibilities with Infinity’s manufactured housing account, earning a promotion to media coordinator.
UBJ SNAPSHOT
Historic photo available from the Greenville Historical Society. Prior to the Civil War, the Greenville Baptist Church (later First Baptist Church) had African-American slaves as members. After the conflict, a group of ex-slaves desired to form their own congregation. After holding services for several years in the basement of the Greenville Baptist Church, they occupied their new, small, wooden church in 1871 near the corner of East McBee and McDaniel avenues. The congregation called itself the Springfield Baptist Church. The large, Gothic-style church photographed by Bill Coxe was constructed in the 1890s on the site of the wooden building. During the Civil Rights movement of the 1950s and 1960s, Springfield Church served as the base for the organization of the Greenville branch of the NAACP and was the center of the movement to end segregation. Jackie Robinson was one of the nationally known speakers at rallies the church organized. Upon departing from the Greenville airport, Robinson was denied the right to sit in the white waiting room. A protest march was organized, which began at Springfield Baptist Church and processed out to the airport. From “Remembering Greenville: Photographs from the Coxe Collection,” by Jeffrey R. Willis
PHOTO PRO VIDE D
In January 1972, in the midst of renovations, fire completely destroyed the historic building. Only the bell in the tower survived. That bell was incorporated into a brick marker at the entrance to the rebuilt church. Insurance was inadequate to cover the costs of rebuilding. With the help from the community, and with hard work on its own part, the congregation completed a modern church in 1976. That church is still in use today. CURRENT PHOTOS BY GREG BECKNER / STAFF
SENIOR BUSINESS WRITER Jennifer Oladipo STAFF WRITERS Sherry Jackson, Cindy Landrum, April A. Morris PRESIDENT/PUBLISHER Mark B. Johnston mjohnston@communityjournals.com
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UBJ ASSOCIATE PUBLISHER Ryan L. Johnston rjohnston@communityjournals.com
PHOTOGRAPHER Greg Beckner
EXECUTIVE EDITOR Susan Clary Simmons ssimmons@communityjournals.com MANAGING EDITOR Jerry Salley jsalley@communityjournals.com
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Copyright @2013 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal is published weekly by Community Journals LLC. P.O. Box 2266, Greenville, South Carolina, 29602. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $65. Postmaster: Send address changes to Upstate Business, P.O. Box 2266, Greenville, SC 29602. Printed in the USA.
December 27, 2013
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