UPSTATE
FEBRUARY 22, 2013
BUSINESS J
O
U
R
N
A
L
COMPLIMENTARY
Tracking the
Hackers
A NEW STATEWIDE BANK SECURITY NETWORK AIMS TO STEM CYBERATTACK DAMAGE AND PREVENT FRAUD PAGE 20
US COMMERCE OFFICIAL WANTS TO MAKE EXAMPLE OF BMW PAGE 10
SEMPRA PICKS GREENVILLE FOR REGIONAL HQ PAGE 16
COMMERCIAL REAL ESTATE CONTINUES UPWARD TREND PAGE 28
UBJ
Table of Contents
PRESIDENT/Publisher Mark B. Johnston mjohnston@communityjournals.com Senior Vice President Alan P. Martin amartin@communityjournals.com UBJ Associate Publisher Ryan L. Johnston rjohnston@communityjournals.com eXECUTIVE Editor Susan Clary Simmons ssimmons@communityjournals.com MANAGING editor Jerry Salley jsalley@communityjournals.com staff writers Cindy Landrum, April A. Morris, Charles Sowell SENIOR BUSINESS writer Dick Hughes contributing writerS Jenny Munro, Jennifer Oladipo, Jeanne Putnam, Leigh Savage
10
EDITORIAL INTERNS Shelby Livingston, Casey Dargan
Photo by Greg Beckner
ABOVE: Construction continues on the BMW manufacturing plant expansion.
Fe at u r e s
c o l u m ns
depa rtments
10 US Commerce Official Lauds BMW as Industry Model
Digital Maven 6 Keeping Remote Workers Engaged and Productive
4 Worth Repeating 4 TBA 21 The Takeaway 22 The Fine Print 23 New to the Street 24 Planner 26 On the Move 27 Social 28 Square Feet 31 Snapshot
16 Energy Giant Plans Southeastern HQ in Upstate Cover Story 18 SC Bankers Work to Track Fraud Entrepreneur 20 Physician, Market Thyself
Statehouse Report 7 Is It Time for a New Speaker of the House? Working Well 8 Workplace Wellness: Trend or Necessity?
art & production art director Richie Swann photographer Greg Beckner CONTRIBUTING photo EDITOR Gerry Pate PrODUCTION Holly Hardin marketing & advertising Marketing Representatives Lori Burney, Mary Beth Culbertson, Kristi Jennings, Donna Johnston, Pam Putman MarketinG Katherine Elrod Marketing & EVENTS Kate Banner Billing Shannon Rochester Client Services ManagerS Anita Harley, Jane Rogers ADVERTISING DESIGN Kristy Adair, Michael Allen, Whitney Fincannon, Caroline Reinhardt IDEAS, FEEDBACK, OPINIONS opinions@upstatebusinessjournal.com HOW TO REACH US 148 River Street., Suite 120 Greenville, SC 29601 864-679-1200
Guest Column 9 No Such Things as Small Businesses Copyright @2013 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal (Vol. 2, No. 7) is published weekly by Community Journals LLC. 148 River Street, Suite 120, Greenville, South Carolina, 29601. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $65. Visit www. UpstateBusinessJournal.com. Postmaster: Send address changes to Upstate Business, 148 River St., Ste 120, Greenville, SC 29601. Printed in the USA.
2 Upstate business journal February 22, 2013
UBJ
Letter to the Editor
Dear Editor: I want to complain about the “article,” really a polemical editorial, by Andy Brack in the Feb. 8 issue (“Statehouse Report: When Church Politics Rises to the Level of Pure Pettiness”). This was a completely one-sided attack, not an investigative journalistic attempt to get at all the issues. I do not have a position on the matter of the churches pulling out of the Episcopal Church in the United States, but I do know that there is much more involved than “politics,” getting “hot and bothered” and going “ballistic” or “greed.” Mr. Brack may not understand the theological issues involved, in which case he should investigate before reporting. Thank you, Mac Davis via facebook
Join the conversation at Facebook.com/TheUpstateBusinessJournal
GODSHALL Professional Recruiting Staffing Consulting
Tailored
by the Purveyors of Classic American Style
UBJ
Worth Repeating | TBA
It’s a matter of sole
“It’s just Southern hospitality, that’s the way I like to think of it. It’s not like this everywhere.”
Most of us participate in a fast paced business environment in which we hit the pavement running. Sure, there are a number of shoes found in the marketplace in an array of styles and price points. But by the time we reach home, are we happy with the choice of shoes we’ve been running from meeting-to-meeting in? Luckily, as smart and informed consumers, we don’t have to compromise comfort or fit for style. But we do want to believe in the long-term investment that we make in a favorite, finely crafted shoe!
Mike Gallagher, on what swayed his decision to locate the Southeastern offices of Sempra U.S. Gas & Power in downtown Greenville
What are the quality details of a good shoe? Certainly the first thing to look for is the type of leather from which the shoe is made. Quality calfskin without blemishes and imperfection is desired. The calfskin should be hand rubbed and polished without a glossy, lacquered finish. Lacquer hides imperfections in the leather and gives the shoe an unnatural shine.
“Without question, this will be a multi-year event.” Trish Springfield, retail banking executive for Palmetto Bank, on the longterm effects of last year’s cyberattack on the state Department of Revenue
“If you’re so scared that you never try, your dream will never come true.” Elizabeth Yarbrough, entrepreneur and founder of The Doctor’s Bag
Another quality detail is welted construction. A genuine Goodyear welt is top quality leather welting which is securely stitched through the upper to the insole rib. A quality leather sole is sewn onto the welt; there is no glue involved. This will ensure long life and comfort and makes resoling a shoe easy.
“It’s way cool out there.” Rebecca Blank, U.S. deputy secretary of commerce, urging the curious to tour the BMW plant she had just visited
However, the most important thing to remember is to maintain your shoes by brushing them daily, polishing them regularly, using cedar shoe trees between wearing, rotating wear between your shoes and replacing the soles and heels when worn. It has been said by many discerning managers and executives, “You can judge a man’s character by looking at his shoes.” Make sure you make a good impression.
TBA
Open Mon.-Sat. 9:30am - 5:30pm Wed. 9:30am - 1:00pm
4 Upstate business journal February 22, 2013
J23
23 West North Street, Greenville, SC 29601 864.232.2761 | www.rushwilson.com
Although the website says The Brown Street Club is temporarily closed for remodeling, word is the jazz and fine dining restaurant just off Main Street is closing for good. The property, 115 N. Brown St., is listed on showcase.com, an online commercial real estate listing site, and staff and musical regulars were contacted this
week and told they were let go… A Tex-Mex restaurant, Gringo’s, is said to be eyeing 11 Camperdown Way… A major sports festival is being planned for October this year that will be modeled after Asheville’s Mountain Sports Festival…
UBJ Upstate Housing Sales Climb in January By Dick Hughes senior business writer
housing sales shot up in spartanburg and Greenville in January over January a year ago, itself an incipient month of a beginning winter recovery in the markets. In Spartanburg, sales of residential property rose 45.7 percent to 200 homes. In Greater Greenville, which includes Laurens and a portion of Pickens, sales were up 17.6 percent to 502. The housing market in the other areas of the Upstate also improved or, in the case of the Western counties, basically was flat with a negligible slight decrease. “For the first time since 2006, the numbers are largely positive,” said the South Carolina Realtors’ monthly indicator from the multiple listing services. Closed sales were up 17.1 percent and pending sales were up 16.6 percent overall. Prices also continue to edge upward, although that trend is uneven place by place. The median price was up 1.4 percent to $146,580 in Greenville but down 6.3 percent in Spartanburg to $105,000. The state median price average was $150,000. “The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 21.1 percent,” SCR said. Houses priced $300,000 and above took the longest to sell; those below $100,000 are the fastest sellers. Average days on the market, a key indicator of activity pace, was at 98 lowest in the state aside from 89 days in the Charleston Trident market. It remained relatively high in Spartanburg at 161 days.
The inventory of housing on the market declined to 9.3 months for single-family homes and 9.3 months for condos, making it very much a buyers market statewide. Market conditions vary greatly from place to place, however. Inventory levels in Greenville are nearing a buyer-seller balance of around six or seven months. Contact Dick Hughes at dhughes@communityjournals.com.
By the Numbers residential sales
17.6% to 502
45.7% to 200
Greater Greenville
Spartanburg
median price
1.4% to $146,580
6.3% to $105,000
average days on the market
98 161 statewide
17.1%
16.6%
Closed sales
Pending sales
Source: South Carolina Realtors
Festival Provides ‘Food for Thought’ the agenda for the three-day Food for Thought festival, scheduled for April 23-25 in Greenville, has been designed to change “how attendees view their work, the world and even themselves,” according to event organizers. Executives from Southwest Airlines, Gap Inc. and Verizon Wireless will discuss “what’s next” in business and industry. Entrepreneurs Jessica Matthews and Julia Silverman, founders of startup Uncharted Play, will demonstrate their soccer ball that harnesses energy during play for later use as a portable generator. And Yael Cohen, founder of the “make-noapologies” charity F*ck Cancer, will lead “an intentionally discomforting conversation.”
“Food For Thought is unlike any conference you’ve ever attended,” said Joe Erwin , president of marketing firm Erwin Penland, presenters of the annual event. “It’s an immersive, extremely engaging experience involving fewer than 100 people, and often the conversations at dinner or breakfast are just as illuminating as the featured speakers.” The agenda will also include an afternoon at the BMW Performance Center, as well as food from awardwinning chefs and a performance by the band Vintage Trouble. Registration includes three days of programming, meals, accommodations at The Westin Poinsett Greenville, and transportation to and from all conference events. Registrations start at $1,375. To register or to learn more about Food For Thought, visit FoodFor ThoughtConference.com.
Finan to Lead SCDEW After Turner’s Exit after last week’s sudden resignation of Abraham Turner, John Finan is getting his old job back as the head of the S.C. Department of Employment and Workforce – on an interim basis, at least. In a handwritten letter, Turner told Gov. Nikki Haley he would resign as executive director of the state agency effective March 1, citing personal reasons. Finan led the agency from April 2010 to September 2011. Turner, a retired Army major general and Fort Jackson commander, took over SCDEW from Finan. “I appreciate General Turner’s – a lifelong public servant – devotion to our state and nation, and wish him nothing but the best going forward,”
said Haley. Turner’s resignation comes amid scrutiny by legislators for eliminating one-on-one help for job seekers in 17 unemployment centers in rural counties, while giving nearly $400,000 in raises to 69 SCDEW employees. “Gov. Haley has allowed her agency, SCDEW, to become an absolute embarrassment,” House Minority Leader Todd Rutherford, D-Richland, said in a statement. This will be Finan’s second interim appointment to the post. Former Gov. Mark Sanford appointed Finan, a retired Air Force brigadier general, to lead SCDEW in 2010 after the Legislature overhauled the agency and made it part of the governor’s cabinet.
February 22, 2013 Upstate business journal 5
UBJ
Digital Maven
By laura haight
Keeping Remote Workers Engaged and Productive the evidence is all around us: A growing percentage of the work force is working remotely at least some of the time, those that aren’t want to be, and the yeoman’s share of knowledge-worker jobs are able to be done outside of the office. In 2011, a research group focusing on telecommuting/telework (a technology misnomer in the days of mobile devices) reported that 50 million employees who want to work from home held jobs that could be done from home, but only 3.1 million were actually able to work from home all or part of the time. (Read it: goo.gl/vzP5c) Although a lot more people want to be teleworking, there are many who actually are. A survey in 2012 by Wrike, a software company that makes product management software for distributed and remote teams, showed that 83 percent of workers say they work remotely at least some
For many businesses, it’s a management issue. How do we make sure that the remote workers are really working? That’s always a challenge, isn’t it? I mean, even with workers who are right down the hall. As a senior manager at the headquarters of a Fortune 500 company, I experienced those challenges firsthand when I led a team with staff in different parts of the country and time zones. Here are some ways to make telework work for both you and the remote employees. Some involve technology; some involve humans. 1. Make smarter decisions. Not every employee is a good candidate. If you have an existing employee who wants to telecommute, you are in a good position to know a lot more about him and determine if that’s the right situation. Is he self-motivated? Does he get work done on time now? Does he require a lower or higher level of
Ask your remote staff if they have the tools they need to be successful. Often they will know – perhaps better than you – if there’s something out there they would like to try. of the time. For many, that means checking email or doing after-hours work. (Check out the infographic: goo.gl/AVGtx). Technology is certainly doing its part with secure virtual private networking, cloud-based services and server hosting that makes company data available anywhere, virtualized phone systems, accessible video conferencing and free conference calling and now the explosion of mobile technology. So what’s the hangup?
supervision? What is his motivation for working at home? In some cases, this is a huge question. Many companies have telework agreements (see samples here: goo.gl/NHtS9) that specify that the employee must have a child care arrangement outside the home. Often parents in two-worker households want to work at home to reduce child care costs. This can be a problem, as a parent can hardly focus on his work and his child at the same time. On the other hand, workers who
6 Upstate business journal February 22, 2013
How Much Are We Ready to “Pay” for the Opportunity to Work Remotely?
78%
would forgo free meals
54%
would forgo employerpaid cellphone plan
31%
would accept reduction in paid vacation
25%
would accept reduction in salary Source: Wrike “Working Habits” survey
drive significant distances may need to cut their transportation costs. Allowing them to work at home all or part of the time can make the difference between keeping them or having them jump to another firm closer to home. 2. Use technology to keep remote workers engaged. The biggest challenge you may have is not connecting them technically, but connecting them emotionally – especially for employees who do not live near you and never get to the office. Schedule time to talk every day with a remote employee using video
conferencing (Skype, OoVoo, Google Hangouts – see earlier Maven missive at goo.gl/enmrz). You can tell a lot by seeing people when you talk to them. Individuals become a team when they work together, get to know each other and become invested in each other’s success. Tools like Basecamp, Trello, WebEx, Go To Meeting, do.com or 5pmweb are more collaborative ways of getting work done than the insular silos of working independently on documents and spreadsheets and then merging changes after the fact. 3. How are you doing? Take the time to ask your remote staff if they are doing OK; do they have the tools they need to be successful? Often they will know – perhaps better than you – if there’s something out there they would like to try. If possible, try to accommodate trials, which can often be free, of new software; you may learn something and your remote staff will feel they have been heard. 4. Be cognizant of how other employees interact with the remote staff. It is really hard to feel like part of the team when you work remotely. Make sure that staff meetings are video conferences and that everyone can see everyone. That may mean that employees spend at least part of the staff meeting in front of their laptops or mobiles so they can be seen as well as heard. Find reasons to bring your team together IRL (in real life!), even if it means budgeting a little extra travel money. The investment you make in team-building can pay huge dividends in productivity. The bottom line: You have a huge pool of potential employees. Technology coupled with good management practices and leadership can help you branch out and take advantage of it.
Laura Haight is the president of Portfolio (portfoliosc.com), a communications company based in Greenville that focuses on harnessing the power of today’s technology to reach new customers, turn customers into loyal clients and loyal clients into advocates. She is a former IT executive, journalist and newspaper editor.
UBJ
Statehouse Report
By Andy Brack
Is It Time for a New Speaker of the House? there’s been a quiet but growing buzz in recent weeks among some House Republicans about whether House Speaker Bobby Harrell would be able to keep his leadership role down the road after months of bad press. But on Valentine’s Day, a political bombshell burst that could break hearts and create opportunities for modern-day Machiavellis. It may be remembered by South Carolina political observers as the St. Valentine’s Day assassination. On Thursday, the conservative S.C. Policy Council filed a major ethics complaint against Harrell that will intensify the recent buzz about whether he can remain an effective speaker. Unlike just a few days ago, now there may be enough blood in the water to attract some sharks who might want to be speaker. Supporters see Harrell as a good, solid man – a mostly moderate Chamber of Commerce Republican who leads with confidence, authority and affable pizzazz. Former chairman of the House Ways and Means Committee, Harrell is one of the few leaders in the state who understands the big picture and how the pieces of state government fit together.
S.C. House Speaker Bobby Harrell
But detractors brand him as a bully who uses his power in subtle ways to keep a firm grip on a sometimes unstable House Republican Caucus. These critics complain about how money from a leadership political action committee is a tool to keep people in line. Harrell says the allegations against him are “a baseless attack that is driven by a personal and political vendetta” by Ashley Landess, the Policy Council president whom Harrell did not reappoint to the state Lottery Commission in 2009. Harrell’s troubles started last year when the Post and Courier reported that he had reimbursed himself about $326,000 from campaign funds for using a single-engine propeller plane and other expenses for political trips over four years. Harrell, who said repeatedly he was in full compliance with state ethics laws, didn’t itemize expenses, but eventually let an Associated Press reporter review records. He returned $23,000 to the campaign account for spending for which he reportedly lost receipts. Coincidentally, $23,000 was the amount that Harrell’s leadership PAC paid a Charleston public relations firm in October 2011 for an “election expense” related to the firm’s work to urge completion of Interstate 526 in Charleston. Critics wondered how the money would be considered proper, since the issue over the interstate completion wasn’t going to voters. Last Thursday, the Policy Council sent a five-point ethics complaint to S.C. Attorney General Alan Wilson – not the House Ethics Commission where it normally would go – because it complained that Harrell being speaker might compromise the process. Wilson turned over the complaint to SLED to investigate. While
four points of the complaint focused on the flights and drug repackaging company, a new allegation questioned whether Harrell broke state law in appointing his brother to the state’s Judicial Merit Selection Commission. Regardless of what happens, Harrell is wounded. As one senior House lawmaker noted earlier this week, he’s still speaker and will remain speaker for the next two years, unless something comes of the ethics allegations against him. But after that, who knows? He likely will face a primary battle in 2014 and if he
survives, as many expect, would have a Democratic opponent who might be tougher than usual. And if he returns to the House, he then would have to get re-elected as speaker. An alliance of Democrats and Republicans could topple him, although Democrats often aren’t organized enough to vote with one voice. In the interim, you can bet your bottom dollar that there are some House GOP leaders waiting in the wings to see what will happen. Mentioned among the possibilities to be the next House speaker are several Republicans: Speaker Pro Tem Jay Lucas of Hartsville, Daniel Island’s Jim Merrill, Kenny Bingham of Cayce and Bruce Bannister of Greenville, to name a few. Anything can happen in the next two years. For now, Bobby Harrell is feeling the dark side of politics.
Longtime South Carolina political observer Andy Brack provides weekly commentary. You can reach him directly at brack@statehousereport.com.
Where customer experience and expectations are one in the same.
ets
Serving Upstate SC, Charlotte, Atlanta, Columbia and Asheville since 1997. Located next to GSP International Airport, our services include… • Luxury Stretched Limousines • Vans • Town Cars • Vintage Cars
• Motor Coaches • Mini-Coaches
• Limousine Coaches
• Transportation Coordinators • Valet Parking & Greeters • and more…
Eastside Transportation Service
2311 Airport Rd., Greer • 864.609.LIMO
UBJ
Working Well
By Abby russell
Workplace Wellness: Trend or Necessity? the cost of health care is a major issue for individuals and employers. Unfortunately, for an employer, medical and pharmacy costs are just the tip of the iceberg. The overall health and wellness of your employees directly impacts the productivity of your organization, whether it’s the cost of an employee’s leave of absence or disability claims, or the correlation the loss of an employee has on the costs for replacement training, temps or overtime. They are all underlying concerns that can bring down any size organization. A report conducted by the Center for Health Research at Healthways, published in the Population Health Management journal in October 2012, revealed that employee wellbeing is a strong predictor of a range of performance outcomes, including short-term disability, absenteeism,
retention and job performance. These metrics were found to improve as the health of employees improved. The study discovered that employees who have a low well-being are: • Twice as likely as those with high well-being to have high health care claims cost • Seven times more likely to miss work • Four times more likely to use shortterm disability days and visit the ER • Seven times more likely to have low job performance.
Some may consider workplace wellness practices to be a new trend, but actually companies have been implementing these types of programs in their workplaces for years to help
Question: does your organization have a formal, written strategic plan for employee wellness?
15% 13% 23% 23% 15% 18% 37% 30% 12% 14%
Yes, a long-term plan only Yes, an annual plan only
2011 2010
Both long-term and annual plan No plan at all Not sure/Don’t know Source: “Wellness in the Workplace 2012: An Optum Research Update”
8 Upstate business journal February 22, 2013
mitigate costs. Many of the top 100 companies adopted wellness programs decades ago; only today has it truly become a necessity. Research further indicates that 88 percent of respondents in a national survey (performed in 2012 by Optum Health) consider wellness solutions an important part of their benefits mix. The same survey also reported that there has been no significant change in the perceived importance of wellness solutions in the past three years. In 2011, 64 percent of respondents in the same survey indicated that their organization is placing the same amount of importance today on employees taking steps to be healthy as it has in the past. See more statistics from this study at goo.gl/f0OHr. If you have recently heard of workplace wellness and are interested in starting your own initiative, you are doing more than just jumping on a bandwagon. Research performed by the American Institute for Preventive Medicine shows employers who implement wellness programs are seeing a return on their investment upwards of $5 for every $1 invested. It is time to start thinking about helping your employees become aware of their personal health risks. Unfortunately, if you wait for their sense of personal responsibility to kick in, it may be too late for them and for your organization. Assistance and opportunities are abundant for educating your employees. Educational communications including fliers, emails and talks are available. Providing health risk assessments and screenings are more prevalent than ever. In case you are still not convinced,
LiveWell Greenville At Work is dedicated to providing employers with resources to create and sustain a culture of health. The group has developed several tools and programs designed to promote the idea of workplace wellness among Greenville businesses, and to help businesses create comprehensive wellness initiatives.
Find out more at: livewellgreenville.org/ community-action/at-work.
it is worth mentioning that employees are expressing their appreciation for their employers’ wellness programs. In fact, there are employees out there looking to work for an employer with a robust wellness program – the caveat here is that the most honest reason might be for a place of employment that values work-life balance. Take heed to this message, though: An employer who wants to improve an employee’s well-being would be best served to respect work-life balance. OptumHealth reported that 73 percent of the respondents view good health and wellness programs as an important benefit that would encourage them to stay longer with an employer. Six in 10 employees surveyed who were successful in losing weight or quitting tobacco reported that their workplace wellness program was very helpful. You may view more of this information in a webinar produced by OptumHealth called “The Positive Role of Wellness Programs in the Workplace,” available at goo.gl/r5pCl. Trendy or not, you may want to take a second look at implementing wellness into your strategic plan.
Abby Russell is a workplace wellness consultant for Rosenfeld Einstein, a Greenville-based insurance agency, brokerage and consulting firm.
UBJ
Guest Column
No Such Things as Small Businesses what does it mean to a run a small business? “It depends” and “compared to what” – that is what any economist will tell you is the answer to every question. Which is the better car, a Ferrari or a Rolls Royce? Which is the better place to live, Manhattan or rural Montana? Who will win next November, USC or Clemson? It makes sense to compare companies based on things we can measure – employees, sales, revenue and market share. But the things we can count don’t necessarily capture the critical qualities. Indeed, the things we can count often stand in for intangibles,
By ralph Gleaton
but those measurements can mislead us, misalign priorities and misrepresent the situation. The U.S. Small Business Administration defines a small business as one that is independently owned and operated, is organized for profit, and is not dominant in its field. To me, that doesn’t capture what a small business really is; I don’t believe any business is small. I prefer to use the terms “entrepreneur” and “entrepreneurial owned business.” A business may employ fewer than 50 people, but it is almost impossible to say whether that is really big or small. What value do you provide your customers? What do you contribute to your community? How responsive are you to your employees? How hard do you work? And you’re doing all of that with how many employees?! There is nothing “small” about that. That is being an entrepreneur. You do not run a “small” – unimportant, insignificant, forgettable
– business. You run a business. The impact of “small” businesses is invaluable to the economy. According to the SBA, “Small businesses continue to be incubators for innovation and employment growth during the current recovery.” Given the fierce global competition we face in the 21st century and beyond, this is our hope for the future. “The net jobs gains of small businesses matched those of larger businesses during the last half of 2010,” the SBA states. Take businesses like that out of the equation, and there would be no economic recovery at all. Segments and demographics are for economists and marketers. I know it can be valuable information, but the label “small business” (or “midsize,” for that matter) is really a behind-the-scenes technical thing, not a “this is who I am” thing. It is a label, a measurement – it is not a definition and certainly not a judgment. It’s easy to fall into the trap of what
we cannot do because of our size. “If we were bigger we could buy or invest more?” Yet, because of your size maybe you are able to still be engaged in the core of your business, and not just the management of it. Maybe you can respond quickly to an opportunity or a customer’s needs. When was the last time anybody referred to a conglomerate as “agile”? Maybe you can give your employees the attention they need and deserve to be happy as your employees (rather than somebody else’s). Maybe you can focus on what is important to you rather than what some New York analyst says. Because words matter, and sometimes they send messages that don’t reflect important realities. Be an entrepreneur, not a small business owner. Ralph Gleaton is the managing partner of Gleaton Wyatt Hewitt PA. The firm has been providing immigration services to clients in South Carolina and beyond since 1999. Learn more at gwhlawfirm.com.
UBJ U.S. Deputy Secretary of Commerce Rebecca Blank, center in green, finishes up her tour of the BMW Manufacturing Co. in Greer.
Photos by Greg Beckner
US Commerce Official Lauds BMW as Industry Model By Jenny Munro | contributor
the united states has a moment of opportunity to make a big play in manufacturing – currently it enjoys low energy costs, a stable supply of oil and gas, high worker productivity and an American public that is buying again. That makes the nation attractive to domestic manufacturers and to foreign manufacturers who want to build in areas where they can make good products at an affordable cost,
said Rebecca Blank, U.S. deputy secretary of commerce. But to attract investment, the United States also has to be a leader in innovation. BMW Manufacturing Co. and the Spartanburg-Greenville region is a model of what manufacturing in the United States should be, she said, addressing a group of employees, local leaders and media after a tour of the plant. Urging anyone who had not
toured BMW to do so, she said, “It’s way cool out there.” However, BMW plans to halt tours in April for about a year as the plant works on the launch of the updated X5 and the new BMX X4, which will be launched in 2014. The plant, begun in 1992, has invested $5.8 billion since through the end of 2012. When current construction – a new 300,000-square-foot
body shop, a 170,000-square-foot expansion of the existing body shop, a new 650,000-square-foot paint shop and 400,000 square feet of logistics space in the X3 assembly shop – is completed, the complex will cover 5.6 million square feet. In addition to 7,000 employees onsite, BMW also supports about 1,000 supplier jobs. BMW has had “almost a continuous expansion since 1992,” when it
Wherever you are in your time horizon, we can help you build a diversified portfolio.
Family Legacy, Inc.
|
104 Broadus Avenue Greenville, SC 29601
|
864-233-0808
|
www.falegacy.com
M112A
Investment Management
Since 1995 we have helped our clients with investment management by choosing appropriate asset allocations designed to help them achieve their objectives – we can do the same for you.
UBJ began initial construction, said Ben Haskew, Greenville Chamber president. The plant, which exports about 70 percent of its production, pushed South Carolina over Michigan as the top automotive exporter. The Upstate plant models the change of manufacturing from 20th-century vertically integrated companies, where everything is accomplished in-house, to 21st-century companies that source globally, Blank said. Local leaders anticipated the change and acted to meet the new challenges. “It is clear that those actions paid off,” Blank said. And the Obama administration wants to see other such models around the country, she said. “We need to make sure our American communities have the resources they need for infrastructure,” such as highways and ports, she said. Construction continues on the BMW manufacturing plant expansion.
Clemson University’s International Center for Automotive Research is an example of the need for local research institutions to partner with companies like BMW, Michelin North America and others. And workers must be trained for the skills needed; such training is being done at Greenville Technical College and Spartanburg Community College, among other educators. To accomplish the goal of ensuring that U.S. manufacturing is a world leader, the country must reform the tax code and “make it more competitive,” she said. That does not mean across-the-board cuts through sequestration. It means smart cutting and smart additions to revenue. Helping manufacturing grow also means using federal dollars when needed to ensure that people and assets are aligned to help a community
The Upstate plant models the change of manufacturing from 20th-century vertically integrated companies, where everything is accomplished inhouse, to 21stcentury companies that source globally, Blank said.
BMW employees work on doors on the assembly line.
successfully attract manufacturing. A team of federal agencies has been created to fund more than $113 million in competitive grants for communities “that need a little help to build up assets,” Blank said. Also, the federal government plans to create a series of regional hubs to specialize in various manufacturing sectors. One devoted to 3-D printing has been developed at Youngstown, Ohio. Fifteen are planned and three are to be launched this year. Bobby Hitt, S.C. secretary of commerce, said the state will compete for those grants and should be in good shape for a regional hub in areas such as advanced materials and advanced manufacturing, both of which are strengths in the state. “We have keystone manufacturers here – BMW, Michelin, Boeing,
General Electric. We need to look at our strengths,” he said. “There is an exploding number of new technologies out there,” Blank said. Manufacturing creates well-paid and high-skilled jobs, making it an important driver of the economy. Manufacturing is also tied to innovation and the United States needs to retain it to remain an economic powerhouse. She cited President Obama, who said in Asheville, N.C., the federal government wants to work with local and state government and the private sector to strengthen manufacturing and take advantage of its recent status as a driver of the economy. But, she said, people will still have to work hard and companies will still have to make good products. Contact Jenny Munro at jmunro@communityjournals.com.
The demand by investors for multifamily properties remains strong.
Let us help identify your multifamily investment needs. NAI Earle Furman’s Multifamily team offers a full menu of real estate services, including identifying off market property opportunities, property acquisition and disposition, valuation, due diligence, and market research. Contact us today to discuss your real estate needs. Tony Bonitati tonyb@naief.com
Kay Hill khill@naief.com
Gwinna Cahal gcahal@naief.com
864 232 9040 NAIEarleFurman.com
UBJ
Breaking Bad (Behavior) Rudeness at work on the increase, costs businesses big bucks By Cindy Landrum | staff
bad behavior is bad for business. Of the thousands of workers surveyed by two college professors for a study published in the JanuaryFebruary edition of the Harvard Business Review, half said they were treated rudely at work at least once a week. That’s twice the percentage of workers who reported being treated rudely on the job in 1998. “Incivility is common everywhere,” said Robin Kowalski, professor of psychology at Clemson University who specializes in cyber bullying and aversive interpersonal behavior such as teasing and complaining. “The workplace is just another setting for incivility.” Businesses are paying a big price for that incivility, according to new research by professors Christine Porath of Georgetown University’s McDonough School of Business and Christine Pearson of Thunderbird School of Global Management. “The costs chip away at the bottom line. Nearly everybody who experiences workplace incivility responds in a negative way, in some cases
overtly retaliating,” wrote Pearson and Porath in “The Price of Incivility.” Those costs come in decreased employee effort, productivity and performance; lost work time, less team spirit and company loyalty, increased attrition and even a loss of customers. “We know two things for certain: incivility is expensive and few organizations recognize or take action to curtain it,” the study said. They should. According to the study, among workers who said they had been treated rudely at work, 48 percent intentionally decreased their work effort, 12 percent left the job, and 25 percent admitted taking their frustration out on customers. Kowalski said a business or organization must make it clear what is acceptable and unacceptable behavior – and good behavior must be modeled from the top down. “It is said that incivility is the adult version of bullying,” she said. “Just like every school has bullying, every company has incivility.” Companies should survey employ-
“We know two things for certain: Incivility is expensive and few organizations recognize or take action to curtain it.” Christine Porath and Christine Pearson, “The Price of Incivility”
ees about what behaviors they find acceptable and what behaviors they find unacceptable, she said. It is also critical for companies to identify the rate of incivility, she said. “They may find that it’s not a problem company wide, but could be isolated in one department,” Kowalski said. “Then they can focus on that one department.” And what happens if the problem is found to be one employee or one manager? “There’s almost always somebody above the person who is being uncivil,” she said. Sometimes, she said, people don’t realize how they are coming across to others. That’s especially true with electronic communication, Kowalski said. “The off-record markers, such as a wink, smile or expression, are missing in email. You can’t read the intent of it,” she said. “And because so much of our interaction at work is online, incivility has increased. I think if you ask people about incivility at work, you’ll find a significant percentage is through electronic communication.” Civility should also be a part of the hiring process, Kowalski and the researchers said. “Avoid bringing incivility into the workplace to begin with,” Porath and Pearson wrote. Organizations can also teach civil-
According to the study, among workers who said they had been treated rudely at work:
48%
intentionally decreased their work effort.
47%
intentionally decreased the time spent at work.
66%
said their performance declined.
78%
said their commitment to the organization declined.
12%
left the job.
25%
admitted taking their frustration out on customers. Source: “The Price of Incivility,” by Christine Porath and Christine Pearson, study published in Harvard Business Review
ity, reward good behavior and punish bad behavior, the professors said. “There’s such a thing as constructive feedback. Clearly, a supervisor sometimes needs to call out an employee,” Kowalski said. “But they need to call out those employees in the correct way or it will backfire.” Contact Cindy Landrum at clandrum@communityjournals.com.
AQUOS BOARD It’s not just a display, it’s your business. Communicate, Collaborate, Disseminate on an affordable, large touch screen LCD whiteboard display to make every presentation unforgettable.
864.675.2000 | sharp-sbs.com
aquos-board-10 X 2.668-AD .indd 1
2/23/2012 2:18:27 PM
UBJ
A New Plan for The Old Cigar Warehouse Event venue to open in early June By Jenny Munro | contributor
the old cigar warehouse, the West End of Grenville’s newest event venue, soon will open on the lower floor of an 1882 building that was used initially to store cigars and cotton. “Our whole goal is to bring out the characteristics of the building” and enhance its beauty, said Tammy Johnson, the warehouse’s new owner. She also wants to research more of the history of the building, which also houses other businesses, including Clark Patterson Lee Design Professionals. The warehouse was home to the Carolina Supply Company and the Crescent Grocery Company in the early 20th century. Johnson said the female-owned business is an attempt to provide creative events and a superior customer service experience in a historic location. The new venue space at 912 S. Main St. includes walls of rough exposed brick, large beams, heavy wood doors and a wood floor. The ceiling in the
Main Hall soars to 45 feet. Johnson and General Manager Kathleen Byrne initially came up with the idea of using the lower level of the building as an event location when they were seeking a spot for an event. “Tammy walked in and fell in love with the space and reeled me in,” Byrne said. The two women said Greenville boasts plenty of venues, but this one is different with its bricks, exposed beams and large spaces. The building includes three different spaces: a Main Hall; The Cellar, an intimate space with 11-foot ceilings; and the outdoor patio. The venue has about 7,500 square feet of usable event space and could handle about 600 people. Plans are to specialize in weddings, corporate events and private parties, but Byrne and Johnson said they would work with clients to create the type of event they want. The Old Cigar Warehouse will offer bar services provided by Liquid Catering, which is also
Kathleen Byrne and Tammy Johnson Photo by Greg Beckner
owned by Johnson; an open catering policy that brings in outside catering companies; a catering prep kitchen; an onsite event manager; a bride’s suite and a groom’s suite; and 70-car parking. It also will provide onsite equipment rentals, with all setup and breakdowns. “It’s a great location,” said Johnson. “You could have a wedding ceremony in the Main Hall, a reception on the deck and an intimate dinner in The Cellar.” The two hope to be fully open by June 1, although some smaller events are scheduled before then. The venue will have a sprinkler system and they are upgrading the lighting and HVAC system. Plans are also in the works to build the catering prep kitchen and suites under the patio deck. That space should be completed by the end of August. Johnson’s goal is to host 100 to 150 events a year at the new venue, which will be rented in time blocks with varying prices depending on the space needed, the day of the event and the services used. By the end of year, Johnson said the business will have three full-time employees and 10 part-time workers, including a facilities manager and bartending staff. The Old Cigar Warehouse will have the capability of staffing any event, she said. In addition, Johnson and Byrne will bring on interns every semester to learn the hospitality industry. “They will gain great experience. They’ll network with a lot of great people,” Byrne said. Anyone interested in applying for work may email Byrne at Kathleen@ oldcigarwarehouse.com. Those interested in booking the space may contact Byrne or go to the website at oldcigar warehouse.com.
gos Call us today and ask for a free copy of our 2013 Best Values Catalog... Mention this ad and we’ll also send you a FREE dozen Inkjoy® pens!
Best Values
2013 best values / greenville
everything for your office...
gos 864.233.5346 / www.gos1.com
office supplies toner & inkjet cartridges promotional products beverage service professional printing cleaning & breakroom supplies office furniture managed print services
864.233.5346 www.gos1.com
February 22, 2013 Upstate business journal 13
UBJ
Entrepreneurship
Photo by Greg Beckner
A Taste of Business Students offer outside perspective, small business support By Jeanne Putnam | contributor
greenville’s smallest restaurant gave entrepreneurship majors at the University of South Carolina’s Moore School of Business a tasty assignment. A group of students enrolled in Dr. William Sandberg’s upper-level management class recently participated in a project to help Funnelicious increase sales by using low-cost marketing techniques to promote the world’s largest funnel cake, made in-house, as well as the restaurant’s healthier menu options. Sandberg’s students participate as part of an upper-level management class that brought real-life scenarios to the classroom with group consulting projects. Student groups worked with small, local entrepreneurs to solve the business’ issues as well as offer outside advice to the owners. Mike Pennington, co-owner of Funnelicious, has firsthand experience with this class. “I took the class when I was going through the entrepreneurship program at USC in 2008. I had a great experience working in a small team consulting a local karate
studio in Columbia,” Pennington said. Based on his experiences as a student, he was open to the idea of having the class work with his business. And the opportunity came when Pennington talked with a former management and entrepreneurship professor at a PULSE Leadership Luncheon. Shortly after that, Pennington submitted his business project proposal and it was approved for the fall 2012 semester. Hannah Bachman, a student on the Funnelicious project, said, “Our teacher uploaded available projects to our interactive learning website, Blackboard. We were to form groups, read the available projects, and pick three that sounded interesting to us as a team. We then listed our preferences from first to third, and had to write why we thought we deserved and would do well with the companies we chose.” Once her professor looked over the preferences, he matched Bachman’s team with Funnelicious. Bachman and her team were required to come up with several
14 Upstate business journal February 22, 2013
ideas that they believed would help Funnelicious in both the short and long term. Their suggestions focused on redesigning the appearance of the menu and using social media such as Facebook and Twitter as free marketing and advertising tools. With a visit to the restaurant’s location, Bachman’s team determined the menu to be in need of a significant change. “Funnelicious has a diverse menu with a lot of options, but it was hard to read and it was cluttered. We USC student Cindy Tang making funnel cakes at Funnelicious.
Photo provided
observed during our several secret shopping trips that people would stare at the menu for long periods of time and look overwhelmed by all the options,” Bachman said. However, Funnelicious wanted to keep all the menu options, so Bachman’s team recruited the help of a design student and made a new, double-sided, legal-sized, laminated menu. They placed all desserts and fried items on one side and all deli and sandwich options on the other. They also color-coded the deli and sandwich side so customers could understand how the custom sandwich-making process works. While the project had its challenges, specifically the distance between Funnelicious in Greenville and USC in Columbia, which made visiting the location difficult for Bachman’s team, both parties feel that it was an overall success. This was the only major drawback to the project, Pennington acknowledged. “It was a challenge for the students to get to Greenville on multiple occasions due to class, tests, jobs and football season,” he said. “I had to drive to Columbia on several occasions to meet with the students.” For Bachman and her team, they learned that communication is the key to success in business, whereas this experience gave Pennington an opportunity to come full-circle from student helping a business owner to being the business owner who is benefiting. Based on his experience, Pennington said he would definitely recommend that other business owners participate in this program. “They must be prepared to work and collaborate with the students throughout the semester,” he said. “They must lay out a detailed list of expectations they want the students to carry out.” For more information on the entrepreneurship project with the Moore Business School, contact Dr. William Sandberg at sandberg@moore.sc.edu. Contact Jeanne Putnam at jputnam@communityjournals.com
UBJ
german engineering company in-tech, which provides system analysis for integrating electronics for the automobile industry, has established its first North American operation in the Clemson University International Center for Automotive Research. The company, which is based in Munich, Germany, where BMW has world headquarters, is the second German firm this month to announce inaugural U.S. operations at CU-ICAR. TIGGES, which makes fasteners, announced last week it is opening a technical sales office. Christian Wagner, CEO of in-tech, said while the company’s initial team in
Photo provided
Auto Engineers Launch US Operations at CU-ICAR
Christian Wagner, CEO
the Greenville office “will be approximately five individuals, it is entirely conceivable that we may add as many as 20-30 additional professionals here as we ramp up our business.” The company did not disclose the amount being invested. Wagner said in-tech sees South Carolina “rapidly becoming a hub of the automotive world and is an excellent place for our new operations.” Michael Ostermair, general manger of the new office, said in-tech “long
desired to have a presence in the southeastern United States.” He said the office opened for business immediately. The company specializes in analysis and project management in “the development, integration, testing and fault analysis on automotive electronics systems.” The privately held company was founded in 2002 and employs 300 worldwide. Chris Riley, chairman of the Greenville Area Development Corp., noted that “in-tech’s decision is an important affirmation of this region’s continuing strategic focus on attracting and developing automotive suppliers of all types, and we welcome them to Greenville.” Gov. Nikki Haley, Commerce Secretary Bobby Hitt, CU-ICAR Marketing Director Suzanne Dickerson and Upstate SC Alliance CEO Hal Johnson also welcomed the company’s decision to settle in the Upstate.
Touring Sport Where excitement, speed, and adventure are a way of life.
M33A
THREE LUXURY EUROPEAN BRANDS ALL IN ONE LOCATION COME SEE OUR LARGE PRE-OWNED SELECTION
1431 Laurens Road Greenville, SC 29607 | 864-232-2269 | www.touringsport.com
Energy Giant Plans Southeastern HQ in Upstate
by dick hughes senior business writer
Sempra exec sees downtown Greenville location as important to strategy, expansion a chance stop for a chicken sandwich, a cold call, an intuitive receptionist and a real estate broker outside his specialty led a California company to plant regional headquarters in Greenville. The choice was an unlikely outcome for the Southeastern office of Sempra U.S. Gas & Power, a subsidiary of Sempra Energy of San Diego, a $10-billion international company. And what initially was to be office space of 5,000 square feet for 10-12 people has grown to 18,000 square feet for 40 high-level employees. Doubt about being downtown turned into not wanting to be anywhere else. Initially, Sempra was focused on places where it already had production facilities and on Charlotte, Atlanta and Tennessee. That Greenville got on the radar screen at all was happenstance. Mike Gallagher, the regional president for Sempra U.S. Gas & Power, was on a scouting trip for the headquarters in the first week of April last year, a week he recalls because the Masters was in play.
Sempra U.S. Gas & Power will locate its Southeastern headquarters in downtown Greenville’s RiverWalk building, once occupied by the bounce advertising agency.
Killing time after a Chick-fil-A
Photo by Greg Beckner
16 Upstate business journal February 22, 2013
He was driving from Charlotte to Atlanta for a meeting with Georgia’s economic development team. Gallagher said Sempra “was well down the road” to a final decision to locate in Atlanta. Gallagher’s son already was enrolled in a school there. Gallagher pulled off I-85 for lunch at Chick-fil-A on Pelham Road. He saw a rental sign for a nearby office building. With “a couple of hours to kill” before his Atlanta meeting, Gallagher decided to make a cold call to the commercial Realtor listed on the sign. Kevin Bentley, senior vice president of Lee & Associates, was sitting in his office on a slow day when “the lady who answers the phone said, ‘I have call you should take, and you’re
Sempra U.S. Gas & Power Formed in 2012 through a merger of Sempra Energy’s U.S. operations outside of its California utilities. Wind, solar and lowemission natural gas power plants generate
more than 1,500 megawatts of electricity. 23 billion cubic feet of underground natural gas storage capacity in operation; 2,000 miles of pipeline and gas distribution utilities.
Parent corporation, Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2011 revenues of $10 billion.
Mike Gallagher, regional president for Sempra U.S. Gas & Power.
semprausgp.com Photo provided
the only broker in the building.’” “I normally don’t do a lot of office stuff – I’m more an industrial guy – but I took the call,” Bentley said. He met Gallagher at the building site and showed him four or five properties.
‘Didn’t know me from Adam’ At that point, all Bentley knew was a guy named Mike Gallagher was interested in office space and that he had a cell phone number from outside South Carolina. Sempra “didn’t want anyone to know” it was looking, Gallagher explained. Even though they “didn’t know me from Adam,” Gallagher said, from that initial meeting, he was “inundated over the next 10 days with support” from Gov. Nikki Haley’s office, the City of Greenville, the Greenville Area Development Corp., the Greenville Chamber and the Upstate Alliance. He was initially doubtful about being downtown – before he had been downtown – but Bentley convinced Gallagher to “go downtown and look around,” which Gallagher did. He was sold. “After you’ve spent two minutes in downtown Greenville, you wonder why you would ever leave,” he said. Once Gallagher decided to “pull the trigger” on Greenville, Sempra’s space needs grew. “Every time he came, he kept look for a little bit more
“It’s just Southern hospitality, that’s the way I like to think of it. It’s not like this everywhere.”
“After you’ve spent two minutes in downtown Greenville, you wonder why you would ever leave.”
Mike Gallagher, regional president for Sempra U.S. Gas & Power.
Mike Gallagher, regional president for Sempra U.S. Gas & Power.
space,” said Bentley, who had “two, maybe three, meetings, before I knew exactly what the company was.”
‘Important’ to growth strategy Sempra finally settled on 18,000 square feet – 13,000 more than it originally sought – of Hughes Investment’s RiverPlace, taking space once occupied by the bounce advertising agency. The space is being reconstructed to fit Sempra’s needs and is a few weeks away from receiving furniture. “This is a very important part of our strategy for the next four or five years,” Gallagher said in an interview. Aside from being drawn to downtown Greenville, Gallagher said, there are location advantages that fit Sempra’s growth plans along the East Coast. “The airport is great. The industrial community here has a very good growth rate and is a complement to the businesses we already support in Louisiana, Alabama and Mississippi. And it is a good springboard if our business moves a little bit north or moves into Tennessee more depending on how some of the natural gas resources are developed.”
Sempra sees opportunities The regional headquarters came out of Sempra’s desire to aggregate “a large
Contact Dick Hughes at dhughes@communityjournals.com.
number of assets scattered throughout the Southeast,” Gallagher said. Sempra has regulated utilities in Alabama and Mississippi, “large quantities of natural gas storage underground” in those two states and Louisiana, and a pipeline network it either owns or has capacity on. Sempra’s Greenville office also has responsibility for a large customer base from Texas, up the East Coast into Tennessee and North Carolina and into the Northeast states. “We were trying to keep a handle on all of that from San Diego,” Gallagher said. “Even with having a presence in Houston, we started looking for where we thought our business could flourish, and a lot of the arrows pointed to the Southeast.” Sempra, too, saw growth opportunities “being in the power business and with some of the development we are doing on the gas side, building pipelines and providing additional services to customers we already have.”
Staff grows from 12 to 40 Gallagher, 49, whose experience includes working for Duke Energy at its nuclear plant at Lake Norman, N.C., building efficient coal-burning plants for Duke/Fluor Daniel in the United States and Indonesia, and running his own energy consulting company,
joined Sempra 2006. “The original plan when we were thinking about coming was the first year we would start off with about 12 people, mainly resurgence of our marketing team,” he said. But the company quickly saw benefits in adding its engineering group, community relations, government affairs and a business team. Vice presidents of engineering and marketing already have made the move, along with several other employees. Soon to come, he said, are “our technical people who run our gas control unit and some of our scheduling people.” Gallagher said his division has “about 500 people, and we will probably end up having 40 of them here in Greenville by the end of the year. When we took the bounce property, we ended up being able to accommodate all of that.” He said everyone has “just been fantastic as far as relocating people and bringing our families.” Although “a little late in looking at Greenville,” Gallagher said, the company couldn’t be happier with how well Greenville fits “as a great place to live and a fantastic place to do business. “It’s just Southern hospitality, that’s the way I like to think of it,” he said. “It’s not like this everywhere.”
February 22, 2013 Upstate business journal 17
Bank Watch Security Network spreads alerts on unauthorized transactions in the wake of last year’s cyberattack by dick hughes senior business writer
The South Carolina Bankers Association has created a statewide
network to track fraud transactions of bank accounts compromised by the hacker breach of the S.C. Department of Revenue. ¶ The Bank Security Watch Network is a mechanism to share unauthorized transactions – but not personal identification – on any compromised account of the state’s 82 banks and 80 credit unions. ¶ In a critical step making the network possible, SCBA got a court order to allow the revenue department to provide each bank with a list of accounts at risk so they can be flagged for heightened screening for unauthorized transactions.
“That was extremely important because without that, each bank wouldn’t know which accounts were compromised and which weren’t,” said Fred Green, SCBA president and CEO. The action was prompted by the cyberattack of the revenue department that gave hackers access to approximately 3.8 million Social Security numbers, 387,000 credit and debit card numbers, and checking account and bank routing numbers of taxpayers who have filed electronically for direct deposit of state income tax refunds. Information dating to 2008 was stolen. It is believed to have been the most massive breach of any state’s data, and subsequent inquires by the Legislature have found security of the site wanting.
SCBA Steps into Breach
“At stake are two risks,” said Green. “One is identity theft, and there is very little the banking industry can do to
prevent identity theft. That’s why the state has a contract with Experian to monitor those who sign up. “The second risk is fraudulent transactions on bank accounts, and that is directly associated with the banking industry. There is nobody else out there that can help mitigate that risk.” Green said the network covers 99 percent of all the state’s bank deposit customers and 100 percent of credit union customers. An early alert of untoward activity on one account gives all other institutions notice of the characteristics of the unauthorized transaction so they “can keep it from happening in their particular bank if there is something with the same characteristics,” he said. The network is designed to counter the typical fraudulent modus operandi of hitting thousands of accounts with low-volume dollar amounts at one time. “If each attempt was different and unique, then this particular
18 c o ver st o ry Upstate business journal February 22, 2013
c o ver st o ry Upstate business journal February 22, 2013
forum would not be what it is designed for,” Green said. Each bank and credit union enrolled in the program has received a list of compromised accounts. Each received a handbook from the SCBA on how to use the information, and a training session is scheduled.
Palmetto Bank has flagged affected accounts – sorted by name and account number – so “anyone who touches your account,” whether in a branch or a call center, can tell customers their account was flagged, said Trish Springfield, retail banking executive.
Flagging At-Risk Accounts
Go First to Your Bank
“Every bank is different by process, but we suggest that each of those accounts that were compromised that the bank would put a flag on it of some type to identify it as one that was compromised,” Green said. The SCBA also suggests that each bank set up system so customers can find out from their bank if an account is on the list or not and provide guidance on how to protect their money. In a small-sample survey of community and large national banks operating in the Upstate, UBJ found the community banks proactively are using the information to inform and assist customers with at-risk accounts. The two large banks questioned, Wells Fargo and TD Bank, publicly provided only scant details of their customer outreach, saying they are working with the SCBA and have as a priority the protection of the security of accounts. TD said it would waive charges associated with closing accounts and opening new ones. Wells Fargo and TD said it is the state’s responsibility to notify customers of compromised accounts. The state is sending out notifications at the rate of 100,000 per day. Consumers with questions are being directed to the state Department of Consumer Affairs (800-922-1594) or to the Department of Revenue website, sctax.org.
Community Bankers Step Up
At Carolina Alliance in Spartanburg, Palmetto Bank in Greenville and Greenville First in Greenville, bankers said they have either contacted or established ways for customers to find out directly from the bank if an account has been compromised. “I’ve already sent you a letter telling you what happened,” said John Poole, president and CEO of Carolina Alliance. “We did that immediately when we got the list.” He said many either came in or called customer service with additional questions and “a handful of people closed their accounts and opened new ones. We don’t encourage that, but if they want to do that, it is an option, and we take care of them.” The 209 active Carolina Alliance accounts on the list “have been flagged for additional scrutiny,” Poole said. Art Seaver, CEO of Greenville First and Southern First in the Columbia market, said the bank has been spreading the word and has set up a single point for information.
“When you have a problem with your financial information, the first place you should go is your banker and ask them what you should do, how do I protect myself,” she said. About 30 percent of Palmetto’s 50,000 active checking accounts are on the revenue department’s compromised list, she said. “Of the active accounts, 96 percent are retail consumers. We did have some personal business accounts, but it was just 4 percent. Obviously, the dollars would be different because they tend to hold larger balances.” Palmetto also created a multi-department response team to help any customer who “wants some help on the security side.” Banks are willing to accommodate customers who want to close existing accounts and open new ones. The SCBA says that is an option but cautions of the inconvenience of needing new checks and debit cards and changing automatic deposit and withdrawal payment information. The SCBA, as well as all banks, say the best protection is for customers to constantly monitor accounts and promptly report questionable activity to their banks.
Fraudsters Await Unguarded
“This is the world we live in,” said Springfield. “People need to be proactive in managing and protecting their information. The South Carolina data breach has raised awareness.” Green of the SCBA said while there have been no reports of unauthorized transactions to date and it “may not happen ever or may not happen for a long time,” the fraud alert network is for the long haul. Bankers are mindful that people who commit frauds from illicit access to personal information are patient. “If it ever happens, it will be later years down the road before it does. I guarantee you the people who were involved in that know that everybody is looking,” said Poole. “Without question, this will be a multi-year event,” said Springfield. “We recently heard of a client who had been the victim of identity theft. This client … lost her purse three years ago and just now the perpetrators were leveraging that information.” Contact Dick Hughes at dhughes@communityjournals.com.
The DOR Security Breach: What Was Compromised? Approximately
3.8 million Social Security numbers
387,000
credit and debit card numbers Checking account and bank routing numbers of taxpayers filing electronically for direct deposit Federal EIN numbers, SC Department of Revenue tax ID numbers may also have been exposed More information: sctax.org
“This is the world we live in. People need to be proactive in managing and protecting their information. The South Carolina data breach has raised awareness.” Trish Springfield, retail banking executive, Palmetto Bank
eneur • r e ep
Physician, Market Thyself
ur • entr ne
j u mp start
Helping physicians market their their services and patients find a doctor was not the career that Elizabeth Yarbrough set out for, but now that she’s four years into her own business – The Doctor’s Bag – it’s obvious this is where she belongs.
Photo by Greg Beckner
“My father said he didn’t know why I was going to college because he knew I was just going to be a wife and mother. I had that determination that I was going to prove him wrong.” Elizabeth Yarbrough, founder of The Doctor’s Bag
20 Upstate business journal February 22, 2013
entrepr e
UBJ
Elizabeth Yarbrough reaches into The Doctor’s Bag to give medical practices powerful communications and networking tools by april a. morris | staff
Yarbrough, 43, trained in business at Washington and Lee University and heeded the advice of her family members: she became a banker. “I went into the commercial lending side of it and hated banking,” she said. After working for two years, she then got married and took a break to raise her three children. Her link with Web technology came when a friend was diagnosed with leukemia and was later the only survivor of a clinical trial of 19 people, she said. In 2008, they formed Cancer Milepost, a social media website for cancer patients. They stopped the effort after about six months at her friend’s request. Through her connections with Mediasation Web Solutions, Yarbrough was then asked if she would help with the medical sites. She formed The Doctor’s Bag in 2009. “I love technology and I love gadgets. I didn’t know much about websites, but I learned as I went,” she said. Yarbrough said her introverted personality has made selling the company’s services a unique experience. “I listened a lot and I think that was beneficial in the long run.” Sales have doubled each year since the launch, she said. This year, several local hospitals are working with The Doctor’s Bag. “And instead of just doing websites, we’ve now developed into a full-service marketing agency,” she said. The company offers communications strategies, social media and content management. In addition to Yarbrough, The Doctor’s Bag has a healthcare strategist, graphic designer and marketing director on staff.
r•
repreneu nt
Though many physician practices suffered cutbacks in marketing over recent years, technology is essential to help them reach potential patients, she said. “Eighty percent of people are looking for medical information online, so it’s so important for physicians and healthcare systems to not only have a Web presence, but make that a user experience.” Initially, The Doctor’s Bag also had physicianreferral software that allowed doctors to make specialist referrals online. “The phone stopped ringing all the time (in those offices) and it really helped with front office communication,” she said. After multiple inquiries from hospitals about a similar capability, her company is launching a new software product this spring, LinkMD, which links patients, physicians, administration and hospitals. It includes a physician directory that is administered by the doctor rather that the hospital, making it easier to keep the information current, Yarbrough said. There’s also a social component for physicians to make connections among colleagues. In the ever-evolving landscape of healthcare, teaching herself about new technology is a daily occurrence, she said, as well as understanding how healthcare regulations are changing. Part of her own drive to be successful in business goes back to her college days, she said. “My father said he didn’t know why I was going to college because he knew I was just going to be a wife and mother. I had that determination that I was going to prove him wrong.” And Yarbrough has succeeded. As a wife and mother of three teenagers, she said running her own business allows her the flexibility to take time for her family. “My cell phone is attached to my hip, but when school gets out, I can pick up my children and I can be with them.” After migrating from banking to stay-at-home mom to tech marketer, Yarbrough offers this advice to entrepreneurs: “If you’re so scared that you never try, your dream will never come true.”
Contact April A. Morris at amorris@communityjournals.com.
UBJ
The Takeaway
Smooth Roads Ahead for SC Auto Industry Tim Rogers
Why the industry is looking to SC:
Formed by the SC Automotive Council to
provide a statewide forum for industry leaders to network and innovate, the Second Annual Automotive Summit, which took place earlier this month at the Hyatt in downtown Greenville, showcased the future of automotive technologies and the impact of those advancements on our state. EVENT: SC Automotive Summit WHO WAS THERE: 200 industry executives representing S.C.’s OEMs, Tier-1 and 2 suppliers and development agencies SPEAKER: Tim Rogers, VP of Finance for Continental Tire the Americas
In the keynote address, Tim Rogers, VP of Finance for Continental Tire, said the future of the industry is tied to increased automation – developing vehicles that will ultimately drive themselves. In his presentation, Rogers exposed new opportunities for manufacturers, consumers and our state alike and highlighted trends in research and production. Mega-trends in the industry:
Today, manufacturers are designing vehicles that incorporate more ef-
ficient, environmentally conscious powertrains, increasingly advanced automated technologies and improved onboard safety systems. Further, they’re working to develop affordable cars with global mobility, allowing companies to tap into emerging, high-growth markets. Future trends in automotive innovation:
As early as 2016, consumers can expect to see partially automated vehicles that provide an array of monitoring support systems. By 2025, Continental expects that technologies will allow vehicles to operate without driver interaction – allowing individuals to work, talk, text and play games while traveling on the road. The move towards Greenfield US sites:
While considered a high-cost country compared to other markets, the U.S. economy provides long-term stability, a highly regulated but predictable market, consistent growth, a trained and highly productive workforce, af-
Photos provided
fordable utilities and a more efficient supply chain system.
South Carolina, in contrast to many other states, provides a proven probusiness environment, proactively engages new businesses looking to relocate, maintains a strong base of international manufacturers and retains an affordable cost of living. Hiring for a new generation:
Continental has partnered with ReadySC, Central Carolina Technical College and the Department of Employment and Workforce to revolutionize the employee hiring and training process. Through pre-screening and automated production simulations, we are now able to train and test applicants for best fit before they set foot on the manufacturing floor – improving our quality and efficiency. A bright outlook for SC:
Work on Continental’s 500-acre site in Sumter began in June of 2012 and is progressing as planned for scaled production to begin by January of 2014. Continental expects the Sumter plant to reach a Phase I annual production capacity of 4.65 million tires by 2017, with ultimate plans to generate 8 million tires annually by 2020. By Andrew Tull of SmoakPR on behalf of the SC Manufacturers Association.
Other topics at the SC Automotive Summit included the future of the U.S. and regional automotive industries, training a 21st-century workforce, and labor union trends. For more information on the SC Automotive Council and their annual event series, visit SCAutomotiveCouncil.com.
February 22, 2013 Upstate business journal 21
UBJ
The Fine Print
Credit Union Newcomer
Grow Financial, a Floridaheadquartered credit union, says it is opening three branches in Columbia and says it plans to have 15 branches throughout South Carolina, including in Greenville and Charleston some day. Grow said it would open its first two Columbia branches this year and one in 2014. “We want to be present to serve not only individual members but also businesses while helping the state be proactive in their business development growth objectives,” said Jason Moss, senior vice president. Originally founded to serve military and civilian personnel at MacDill Air Force Base in Tampa, Grow has expanded to 19 branches and $1.8 billion in assets.
$495,014 in 2011. Pinnacle said its total assets grew 16.5 percent to $158 million. “We are very proud of our results in what continues to be a very weak economy,” said David Barnett, president and CEO. He said “results were bolstered by better than expected credit quality and a very strong mortgage demand.” Pinnacle has branches in Greenville and Powdersville.
Taking Software to Coal Slow Economy, Good Year
PBSC, the privately held holding company of Pinnacle Bank, reported 2012 net income of $1.2 million, an improvement of 146 percent over
Global PTM of Greenville has completed implementation of Oracle management systems at numerous sites of Alpha Natural Resources, the third-largest coal producer in the United States.
“As a result of the Oracle eAM implementation, Alpha Natural Resources has successfully standardized, companywide, a maintenance system that provides improved business intelligence reporting and analysis capabilities,” Global PTM said.
Franchise Hits High Mark
Allegra Marketing of Spartanburg has been recognized by Allegra Network as being among the franchiser’s 10 top local outlets in increasing sales volume in North America. Allegra is a full-service marketing and communications company, offering marketing consultation, copywriting, graphic design, full-color printing and mailing for a variety of products.
Forum Explores Textile Rejuvenation Free Service for Chamber
The Greater Greer Chamber of Commerce has added ASTRA/CFX’s supply-chain analysis as a free benefit for members. “Every member will have the opportunity to receive this no-cost supply-chain analysis and potential for savings,” the chamber said. “On average, ASTRA/CFX brings a 20 percent reduction to client costs.” ASTRA/CFX, a Florida company, opened a $9-million plant in Greer in 2010 to assemble tire and wheel units for the BMW X3.
InnoVision will hold a forum to examine how South Carolina managed to rejuvenate the vanished textile industry through innovation and product development. The event will be held at the McNair Law Firm, Greenville, Wednesday, Feb. 27, from 5-6 p.m. Panelists include Joe Royer, director of innovation at Milliken & Co.; Christine Cole, director of apparel research at Clemson; and Brian McSharry, chief operating officer of Sage Automotive Interiors. Register with Kathy Ham at 864-552-9345 or kham@mcnair.net.
UBJ
New to the Street
CORE Health Centers is one of the area’s leading pain management clinics with offices in East Spartanburg and its recently opened location in Thornblade at 103 Regency Commons Drive in Greer. CORE Health Centers specializes in non-surgical and non-narcotic pain
care and has expertise in the areas of low back, knee, shoulder and neck, while providing services that include all natural joint injections, complete diagnostic testing, rehabilitation therapy, DMEs and nutritional support. For more information, visit gotcore.net or call 864-469-2045.
The new Candlewood Suites broke ground on Feb. 13 at 25 Green Heron Road in Greenville. The hotel will be all-suite with 97 rooms with amenities including complimentary high-speed Internet access, free local phone calls, free on-site guest laundry and a 24-hour fitness center. Unique to Candlewood Suites, guests can also enjoy the convenience of the Candlewood Cupboard, where a variety of beverages, breakfast items, snacks, frozen entrees
and sundries will be available for purchase on the honor system at any time and where guests can enjoy complimentary freshly brewed coffee. Additionally, guests of the Candlewood Suites can visit the free Lending Library, where movies and music will be available for use in guestrooms, which all feature a DVD and CD player. It is scheduled to open in September and will be adjacent to the new 100,000-square-foot Cabela’s scheduled to open in 2014.
H&R Block recently relocated its tax office in Travelers Rest to 146-B Walnut Lane in Piedmont Commons. Office hours may vary. For more information, call 864-834-8110.
Join us for the 4th annual Join us for the 4th annual
Red Red Shoe Red Red Shoe Society Join us us for forthe the4th 4thannual annual Join
Shoe Society Shoe Kickoff Society Kickoff Society
as we celebrate last year’s successes & thelast exciting as we celebrate year’s plans in store for 2013 ! successes & the exciting as we celebrate last year’s plans in store 2013! as we celebrate last year’s successes & the for exciting successes & the plans in store for exciting 2013 ! Thursday, February 28th p.m. plans | in6:00-8:00 store for 2013 !
Kickoff Kickoff
Thursday, February | 6:00-8:00 p.m. Courtyard by Marriott28th Greenville Downtown Thursday, February 28th | 6:00-8:00 p.m. Courtyard by Marriott Greenville Downtown doorprizes | hors28th d’oeuvres | drinks Thursday, February | 6:00-8:00 p.m. Courtyard by Marriott Greenville Downtown doorprizes | hors d’oeuvres | drinks Courtyard by Marriott Greenville|Downtown doorprizes | hors d’oeuvres drinks Join Red Shoe Society | drinks doorprizes | hors d’oeuvres duringRed the kickoff event & Join Shoe Society Join Red Shoe Society you willthe bekickoff entered into & a during event during the kickoff event & Join Red Shoe Society drawing toentered win tickets you be entered intoato a you will will be into during the kickoff event & our 2013 signature event! drawing to win tickets to drawing to win tickets to you will enteredevent! into a our signature event! our 2013 2013be signature drawing to win tickets to our 2013 signature event!
RSS Members and Friends are all welcome! RSSMembers Members and Business Friends are welcome! Special thanks to Upstate Journal, TOWN Magazine, RSS and Friends areallall welcome! Courtyard Marriott Downtown Greenville, Good Life Catering and Thomas Creek www.redshoesociety.org RSSGreenville Red-Shoe-Society www.redshoesociety.org RSSGreenville Red-Shoe-Society RSS Members and Friends are all welcome! www.redshoesociety.org RSSGreenville Red-Shoe-Society www.redshoesociety.org
RSSGreenville
Red-Shoe-Society
UBJ
Planner
friday, february 22 Roundtable and Networking Forum (SCWBC)
Women at Work, hosted by Phillips Staffing
USC Upstate – The George, 160 East St. John St., Spartanburg; 11:30 a.m.-1:30 p.m.
History Center, 102 Depot St., Fountain Inn; 8:30 a.m.-9:30 a.m.
Topic: Women Dealing With Women Cost: $10 per person. Speaker: Dana Hall-Ragland, owner of Synergy Consulting Services. Register at: scwbc.net.
monday, february 25 GCS Roundtable: Winning Listening Habits for Career Success The Office Center at the Point, 33 Market Point Drive, Greenville; 8:30-9:30 a.m. Speaker: Daryl Wiesman, PhD. Call: Golden Career Strategies at 864-527-0425 to request an invitation.
95th Chamber Annual Meeting Spartanburg Marriott, 299 North Church St., Spartanburg; 5:00 p.m. cocktail reception, 6:30 p.m. dinner and business meeting Key Note Speaker: Dr. Joe Salley, president and CEO, Milliken & Company. Cost: $75 per person for members, $100 per person for non-members. Contact Yvonne Harper at 864-5945032 or yharper@spartanburgchamber.com to register.
24 Upstate business journal February 22, 2013
tuesday, february 26
Topic: “Staffing Needs” and “How to Gather Candidates”. A light breakfast and networking with other professional women at work. RSVP to: Charlene at c.knight@fountaininnchamber.org or call 864-862-2586.
Loans and Other Sources of Capital for Small Businesses Marion P. Carnell Learning Center, Room LC274, Lander University, Greenwood; 6-7:30 p.m. Cost: $25 per person. It is a seminar that will cover acquiring capital for small businesses. Pre-registration is required: Registration form is at lander.edu/goto/continuinged and can be emailed to continuinged@lander.edu, faxed, mailed, delivered, or phoned in to Lander University Department of Continuing Education 864-388-8426, fax 864388-8189. For more information, contact: 864-388-8492 or email conway@clemson.edu.
wednesday, february 27
friday, march 1
February Coffee and Conversation
The 52nd annual Southern Home & Garden Show
Upstate SC Alliance, 124 Verdae Blvd., Suite 202, Greenville; 8-9 a.m.
TD Convention Center, 1 Exposition Drive, Greenville
Investors only. Discussions from The Iron Yard. If interested in becoming an investor, call Clay Andrews 864-283-2300. RSVP at RSVP@upstatealliance.com.
Mauldin Chamber Leads Group Mauldin Chamber of Commerce, 101 East Butler Road, Mauldin; noon-1 p.m. Free to attend. Contact: Don Johnson at dfjj1141@yahoo.com.
PULSE February Social The Warehouse Theatre, 37 Augusta Road, Greenville; 5:30-7:30 p.m. Free to PULSE members. Register at: greenvillechamber.com or by calling 864-239-3743.
thursday, february 28 Fountain Inn Chamber’s Annual Banquet/Meeting SC Army National Guard Armory, 150 Speedway Drive, Fountain Inn; 6-9 p.m. Guest Speaker: Dr. Eric S. Bour, president of Hillcrest Memorial Hospital. Cost: $45 per person. Contact: Fountain Inn Chamber at 864-862-2586.
Features hundreds of exhibits with merchandise for sale, product demonstrations, and workshops for adults and children. Special appearance: Southern Living contributing editor Rebecca Gordon. For more information, visit HBAofGreenville.com or call 864-254-0133.
FIRST FRIDAY
LEADERSHIP SERIES PRESENTS
GREG SMITH President, Blue Vista Ventures, LLC
“Basement Start-up to Fortune 150 Exit: What I Learned Along the Way” March 1, 5:00 p.m. Clemson at the Falls
55 East Camperdown Way, Greenville
Attending First Friday is free, but space is limited! Register at FirstFridayGSmith.eventbrite.com.
First Friday Luncheon Greer City Hall, 301 E Poinsett St., Greer; 11 a.m.-1 p.m. Speaker: Erich Schneider, business owner and professed “Big Picture Guy.” Topic: “The Hubris of Success and the Success of Failure.” Open to the community with registrations at greerchamber.com required. Cost: $10 for Chamber members and $15 for non-members. Contact: The Greater Greer Chamber of Commerce at 864-877-3131.
Friends of CCS Annual Luncheon Fountain Inn Activities Center, 610 Fairview St., Fountain Inn; noon-1:15 p.m. Cost: $25 for an individual or $200 for a table of 8. Speaker: W. Burke Royster, superintendent of Greenville County Schools. Contact: Wilma Whitlatch at 864688-2211 or wilmawhitlatch@ centercs.com.
February 22, 2013 Upstate business journal 25
UBJ
On the Move
AWARDED
HIRED
HIRED
PROMOTED
SHARON WILSON
C. KYLE THOMAS
WILLIAM P. CRAWFORD JR.
L. RAY SWITZER
Recently awarded standing as the No. 1 Coldwell Banker Agent in South Carolina. Wilson has more than 25 years of service with Coldwell Banker Caine Real Estate. She has consistently ranked among the top three producers in the company and in the Coldwell Banker network in the state of South Carolina. This year, she qualified for the International President’s Elite society, made up of the top 4 percent of Coldwell Banker agent’s internationally. She was awarded the top producer for Coldwell Banker Caine, and No. 1 Volume Producer for Coldwell Banker Caine.
Added as Carolina Alliance’s executive vice president and commercial banking officer. Thomas brings more than 23 years of banking experience in the Spartanburg and Upstate markets to Carolina Alliance, with the most recent being as president and CEO of Seneca National Bank, which was acquired by new owners. His banking experience is centered in the Upstate market, primarily in management, administration and commercial lending. Having worked in a leadership capacity with three banks, he most recently was responsible for the day-to-day operations of an $80 million community bank.
Joined Pacolet Milliken Enterprises Inc. as senior vice president and general counsel. Prior to joining Pacolet Milliken, Crawford served as senior counsel at TD Bank, where he was responsible for the legal aspects of the bank’s U.S. corporate, real estate and contract functions. He previously was the executive vice president – chief legal and risk officer of The South Financial Group Inc., where he was integrally involved in a variety of legal, regulatory, risk and strategic matters, including the sale of the company to TD Bank.
Previously Spartanburg Community College’s director of campus operations; was recently appointed to serve as SCC’s vice president of business affairs. Since joining SCC in 2005, Switzer served as director of facilities and campus operations leading and managing multi-campus master planning; construction and renovations; maintenance of facilities and grounds; public safety and environmental compliance; and logistics services. He has served 27 years in private industry in the Upstate, which includes positions in engineering, production management and senior-level operations management.
BANKING/FINANCE: Park Sterling Bank recently announced the addition of Tracy Porterfield and Suanne White to their Greenville Wealth Management team. Porterfield is a financial veteran with more than 17 years of experience – and CTFA (Certified Trust Financial Advisor) designation – in the wealth management business in the Upstate of South Carolina. White has more than 15 years of experience in the financial industry and holds Financial Industry Regulatory Authority Series 7, Series 66, Series 65 and Insurance licenses.
divisions of both Greenville Technical College and Clemson University, and holds a B.S. degree in management from Clemson University.
NONPROFIT: United Way of Greenville County Young Philanthropists (YPs) recently announced that Jo Watson Hackl of Wyche P.A., Clarence Kegler of Michelin North America, Mike McGuigan of Elliott Davis LLC and Kent Satterfield of Dixon Hughes Goodman LLP are the finalists for 2013 YP Mentor of the Year. This year’s winner was named during the Mentor of the Year Awards Ceremony, presented by Michelin North America, on Feb. 19 at the TD Convention Center in Greenville.
Wilson, Jacob Mann, Pat Loftis and Lori Thompson qualified for the International President’s Elite society, made up of the top 2 percent of all sales associates internationally. Helen Hagood, Nick Carlson and Donna Morrow qualified for the International President’s Circle, made up of the top 4 percent of Coldwell Banker’s agents internationally. Jake Dickens, Carolyn Dowling, Susan Gallion, Kathy Harris, Francie Little, Susan McCoy, Charlene Panek, Heather Parlier, Susan Reid, Faith Ross, Annette Starnes and Carol Walsh received the International Diamond Society award, recognizing the top 8 percent of Coldwell Banker agents internationally. The following agents earned entrance into the International Sterling Society, named to the top 12 percent of agents internationally: Virginia Abrams, Beth Beach, Shelbie Dunn, Suzanne Freeman, Lorraine Gibson, Berry Gower, Trish Hollon, Lisa Humphreys, Judy McCravy, Rhonda Porter, Sherry Sponseller, Sharon Tootell, Pam
INSURANCE: Rosenfield Einstein, a South Carolinabased insurance agency, brokerage and consulting firm that is part of the Marsh & McLennan Agency LLC (MMA) family of companies, recently added Upstate human resources professional Zeke Lollis as a shared services specialist in the firm’s employee benefits division. Lollis joins Rosenfeld Einstein after several years in the human resources
INTERIOR DESIGN: Kustom Home Design of Greer’s owner Kimberly Kerl was recently awarded “Best Of Houzz” 2013 in Customer Satisfaction by Houzz, the leading online platform for residential remodeling and design. This custom residential design firm, which specializes in residential addition, renovation and new home designs, was chosen by the more than 11 million monthly users that comprise the Houzz community. The Houzz “Best Of Houzz” award for 2013 is given in two categories: Customer Satisfaction and Design. Customer Satisfaction award winners are based on homeowner members who rated their experience working with remodeling professionals in 12 categories ranging from architects and interior designers to contractors and other residential remodeling professionals.
26 Upstate business journal February 22, 2013
REAL ESTATE: Coldwell Banker Caine recently recognized its top producing agents with honors. The company announced the top 15 sales associates in the following order: Sharon Wilson, Jacob Mann, Pat Loftis, Helen Hagood, Nick Carlson, Lori Thompson, Francie Little, Susan Reid, Faith Ross, Susan Gallion, Carolyn Dowling, Jennifer Wilson, Annette Starnes, Berry Gower and Kathy Harris. Sharon
UBJ
Social
< Sellest McClain, left, facing camera, talks with Janice Hatton, back to camera, at the Women, Wine and Wisdom monthly event held at the Commerce Club. The theme for the February meeting was “What a Difference a Generation Makes.”
RECOGNIZED Kathleen C. “Kathy” McKinney
PROMOTED KENNETH M. HARPER Promoted to chief operating officer for Countybank. Harper was the executive vice president and manager of commercial lending starting in July 2011. He has more than 26 years of experience in the banking industry. Previously, he worked with Greer State Bank where he served as president and CEO, and prior to that he was with Carolina First as executive vice president, senior commercial banker and market president.
Walker, Holly West, Jennifer Wilson and Linda Wood. The No. 1 Unit Producer was Lori Thompson, No. 1 Increased Production was LeNelle Tanner, the top relocation agent was Judy McCravy, the Rookie of the Year was Heidi Putnam, the Team Spirit Award was awarded to Rhonda Porter, and the Team Leadership Award was awarded to Susan McCoy. Other awards included the Frank B. Halter award, which is the highest honor that can be bestowed on a member of the Caine Company. In memory of Frank Halter, who passed away on Jan. 29, Virginia Abrams and Susan Clary were both recognized with this honor. Coldwell Banker Commercial Caine also recognized its top performing commercial brokers Pete Brett, David Sigmon and Tim Satterfield as the top three producers of 2012. Prudential C. Dan Joyner Co Realtors recently announced that Angela
Of Haynsworth Sinkler Boyd P.A.; was recently announced as a Compleat Lawyer Platinum Award recipient by the University of South Carolina Law School Alumni Association for more than 30 years in practice. The award recipients will be recognized at the University of South Carolina Law School Alumni Association Dinner on April 25. McKinney is a nationally recognized lawyer for her work in tax-exempt financing. She was appointed an independent director of the FHLBanks Office of Finance board of directors in 2010, is a fellow of the American College of Bond Counsel, and served as president of the National Association of Bond Counsel in 2009. Compleat Lawyers are recognized for making significant contributions to the legal profession and exemplify the highest standard of professional competence, ethics and integrity.
> From Left to right, Ruth Richburg, Geraldine Williams and Jannie Hill visit with one another at the Commerce Club during Women, Wine and Wisdom.
< Moderator of the Women, Wine and Wisdom panel, Carol Simpson, left, introduces panel members Nika White, center, vice president of diversity and inclusion for the Greenville Chamber, and Anna Smith, former teacher and wife of the late Judge Willy T. Smith Jr. The panel discussion focused on the history of African American women.
The Spartanburg Chamber of Commmerce Diversity Connections lunch
Hampton has joined the company and serves as a sales associate at the Simpsonville office. Hampton graduated from Laurens District 55 High School and earned her associate degree in general business at Piedmont Technical College. She is a graduate of Fortune Real Estate Academy.
February 22, 2013 Upstate business journal 27
UBJ
Square Feet
Commercial Real Estate Continues Steady Climb in Upstate
Reports predict growth opportunities – and challenges – in industrial, retail, office sectors By Jenny Munro | contributor growth in the industrial, retail and office real estate sectors in 2013 is expected to continue and be somewhat stronger than it was last year, according to forecasts released by three real estate firms. The economy is growing slowly and steadily, employment growth is positive although slow, and housing seems to have turned the corner into positive territory, according to the CBRE | The Furman Co.’s Upstate Real Estate Forecast. The study predicted that this year will be the strongest since the recession and that 2014 will be an even better year. A survey taken before the CBRE forecast was released showed that employers were much more optimistic about hiring in 2013 than in earlier years. This year, 51 percent of the respondents expected to hire workers while only 3 percent anticipated layoffs. In 2009, 10 percent expected to hire and 33 percent were looking at layoffs. Also, the outlook on capital budgets has improved between 2009 and 2013. In 2009 only 10 percent expected a larger capital than in the
year before while in 2013 than number jumped to 39 percent. “If you take 2009 as a baseline, every year has been better,” said Frank Hammond, president, Colliers International Greenville. “The Upstate of South Carolina is positioned well for dynamic growth in the coming years,” said Grice Hunt, industrial broker with NAI Earle Furman, in an annual real estate forecast.
Opportunity amid uncertainty
“If you take 2009 as a baseline, every year has been better.”
However, “the economic strength in this state is at the coast,” said Bruce Yandle, dean emeritus of the Clemson University College of Business and Behavioral Science. In the Upstate, The Greenville economy is stronger but stable. Spartanburg is weaker but growing. And he said he expects growth in the region to remain flat to slightly positive. “There is opportunity amid uncertainty,” said Steve Smith, executive vice president and managing principal of CBRE | The Furman Co. While the overall outlook is improving, there are headwinds to navigate, including political gridlock at the national level. But “things are definitely better.” Hammond said multifamily housing is probably the strongest real estate housing segment now.
Frank Hammond, president of Colliers International Greenville
Industrial demand grows Manufacturing, with its strong sales
and slowly expanding employment, continues to drive the Upstate’s economy this year and through 2014, according to the CBRE report. The sector’s dominance in the region has resulted in the local market recovering faster than the national industrial market, according to the report. The Upstate absorbed more than 2.1 million square feet of industrial space in 2012, most of it in the last half of the year, according to Collier International’s Research & Forecast Report. Nearly 2 million square feet of space was built during the year. “With the recession and the 2012 election behind us, business has returned to a more stable condition and continues to improve,” said Hunt. Demand for industrial space is growing and new construction is beginning to be seen, according to CBRE. Michelin is in the midst of two new construction projects. Also, BMW is building a new body shop and paint shop. However, no speculative development is currently underway.
Warehouse space lacking The Upstate’s automotive sector is responsible for much of the industrial growth, Colliers said. As of December, BWM Manufacturing Co. was the second largest production facility in BMW’s portfolio. “We’re probably 60 percent manufacturing and 40 percent warehouse/ distribution,” Smith said. “There is no Class A warehouse space” in the
Upstate, with the closest available space in Atlanta and Charlotte. The lack of Class A warehouse space with 30-foot clear height and Early Suppression Fast Response sprinkler systems, could cap economic growth as tenants find space in other areas. Hunt agreed that “the largest challenge facing the GreenvilleSpartanburg industrial market is the lack of quality industrial buildings.” Such space initially would be built-tosuit for existing businesses, Smith said. Eventually, such space could be built on speculation by large developers. The decision of the South Carolina Ports Authority to develop an inland port in Greer and the GreenvilleSpartanburg International Airport’s decision to begin development of some of its land holdings also will provide a boost to industrial development and growth, Hunt said. Most of the growth in manufacturing is in the advanced manufacturing area, which is not labor-intensive. The move in the sector means manufacturing growth does not generate as much employment growth as it did in the past. Still, manufacturing employment grew by 2.2 from November 2011 to November 2012, according to the Collier report. Scott Jones, office division broker with NAI Earle Furman, said in the annual forecast that “trends and activity in the market are showing a healthy move toward recovery and optimism for greater improvement in 2013.”
Contact Jenny Munro at jmunro@communityjournals.com.
Square Feet
e as
ki
n g
rat
ct i co n stru
on
io absorpt n et
va ca n cy
rat
n
Q4 2012
e
UBJ
office VR 9.1% AR 13.75%
industrial VR 8.4% AR 2.87%
retail VR 6.7% AR 9.37%
nai earlE furman
Office vacancies decline Office vacancies peaked in 2009, with vacancy rates now declining because of the lack of new building rather than from strong market growth, ac-
cording to the CBRE report. The ONE project in downtown Greenville will bring 370,000 square feet of Class A office space to the market in two phases. The first phase of the project is 95 percent leased. The
second phase, now under construction, already has leased much of its space but has three floors available. Many of its new tenants are already based in the Greenville market, resulting in relocations from other buildings. Those relocations open additional office space, although many building owners will need to invest in and upgrade existing facilities to attract tenants, said CRBE. Smith said that about 250,000 square feet in existing office buildings downtown will be coming available as tenants move to new space. “There is a lot of activity,” he said. The existing buildings are “good space, but there will be work needing to be done” for new tenants. Also, “the appeal of the Central Business District in Greenville is so well received that in the current market that there may be a modest
migration to this area with many office users from both the suburbs or from outside the Upstate market,” Jones said.
Retail stands strong Retail space currently is a 7.8 percent vacancy rate, an indication of a strong retail market. Several new retail establishments are moving into the Greenville area. Cabela’s, a seller of hunting, fishing and outdoor gear, recently announced it was locating a store here. Walmart is developing its new neighborhood grocery concept with a store in Greer and plans for one in Greenville. Also, Tupelo Honey Café plans to locate a restaurant in ONE on Main Street. Anthropologie, a woman’s clothing store, also will be in ONE. “Retailers in general are looking at smaller footprint,” Smith said.
office
Tenant: Resurgent Fluor Enterprises, Inc. Regions Bank O’Neal Inc.
Size (SF): 85,208 35,500 8,140 6,600
Submarket: Address/Building: Greenville CBD One Liberty Square Greenville Suburban 1001 Keys Drive (renewal)* Greenville CBD 101 East Washington Street (renewal)* Greenville Suburban 10 Falcon Crest Drive (renewal)*
industrial
Tenant: Sunbelt Warehouse Corp. Contec, Inc. Southern Cotton Higher Source Aviation Rockwell Medical Technologies Speedway Packaging
Size (SF): 195,594 180,700 187,543 155,847 57,000 54,980
Submarket: Spartanburg Spartanburg Greenville Greenville Greenville Greenville
retail
sampling of top lease transactions (*denotes NAI EARLE FURMAN Transaction)
Tenant: Save-A-Lot (renewal) City Trends (renewal) Out Reach Thrift Store Dollar General (renewal) Tempus Jets*
Size (SF): 15,000 13,125 10,000 9,014 3,320
Submarket: Address/Building: Spartanburg 550 South Church Street Spartanburg 550 South Church Street Greenville Suburban Wade Hampton Blvd./Taylors Point Anderson 3309 Pelzer Highway Greenville CBD 531 South Main Street/Falls Place
Address/Building: 560-572 Gilliam Road 5670 North Blackstock Road* 2425 Rutherford Road (renewal)* 46 Beechtree Blvd. 604 High Tech Court (renewal)* Greenville Distribution Center (renewal)*
Celebrating Success For 80 years, Coldwell Banker Commercial Caine sales associates have taken Upstate Real Estate personally. Join us as we celebrate our Top Producers for 2012.
UBJ
Square Feet
nai earle furman recently announced
Deal of the Week Stuart Wyeth represented the landlord of 400 Executive Center Drive, Greenville, in leasing a 30,124-squarefoot office space to AMEC E&C Services Inc.
Tyson Smoak and David Feild represented ROD LLC in leasing a 2,500-square-foot dental office space at 419 SE Main St., Simpsonville.
Pete Brett
#1 Top Producer
Glenn Batson represented the landlord of 2615 Hwy. 153, Piedmont, in leasing a 5,000-square-foot industrial flex space to American Crane & Equipment Corporation. John Staunton and Hunter Garrett represented the landlord of 150 P&S Court, Duncan, in leasing a 5,000-square-foot warehouse/office space to Builders Wholesale Carpet Inc.
David Sigmon #2 Top Producer
Tim Satterfield #3 Top Producer
John Gray and Drew Stamm represented RBO Holdings LLC in leasing a 66,645-square-foot industrial space at 223 Pine Road, Easley. Keith Jones represented the landlord of 3453 Pelham Road, Greenville, in leasing a 1,937-square-foot office space in Suite 205 to Kopet and Associates PLLC. Grice Hunt and John Baldwin represented the landlord of 2118 Airport Road, Greer, in leasing
30 Upstate business journal February 22, 2013
a 10,000-square-foot industrial space to Jim Whitehead Tire. Alexi Papapieris represented the landlord of the Union County Business Center at 12737 E. Independence Blvd., Matthews, N.C., in leasing a 5,505square-foot flex space to Marketing Advertising and Design Inc. Hunter Garrett and John Staunton represented the landlord of 101 W. St. John St., Spartanburg, in leasing a 7,236-square-foot office space to The Palmetto Bank. Stuart Wyeth represented the landlord of 171-A Johns Road, Greer, in leasing a 4,320-square-foot industrial space. Tyson Smoak and David Feild represented the lessee, Staples Contract & Commercial Inc. Andrew Babb represented the landlord of 148 W. Main St., Spartanburg, in leasing a 6,000-square-foot retail space to Wild Ace Pizza & Pub. The restaurant plans to open April 1. Stuart Wyeth represented the landlord
of 101 N. Main St., Greenville, in leasing a 12,841-squarefoot office space to Southern Management Corporation. Hunter Garrett and John Staunton represented the landlord of 2355 S. Hwy. 101, Units A & B, Greer, in leasing a 9,000-square-foot flex space to ROFA Technology LLC. John Gray represented the landlord of 101 The Parkway, Greer, in leasing a 1,300-squarefoot retail space to Frankieâ&#x20AC;&#x2122;s Pizza Inc. Jon Good represented the landlord of 803 N. Fant St., Anderson, in leasing a 2,044-squarefoot office space to AnMed Health. Scott Jones represented the landlord of 300 Pelham Road, Greer, in leasing a 5,212-squarefoot office space to K12 Inc. Ted Lyerly and Jimmy Wright represented Skyview Investments LLC in the lease of 1,440 square feet of retail space at 1417 Laurens Road, Greenville, to Magic Nails.
UBJ
Snapshot
1
3
ABOVE “Remembering Greenville: Photographs from the Coxe Collection” by Jeffrey R. Willis; BELOW Photos by Greg Beckner
2
The Peoples National Bank (established in 1887) occupied the northwest corner of West Washington and Laurens streets, where a livery stable had once operated. The exterior of the fireproof building was faced with Winnsboro granite. Two terra-cotta plaques, bearing the image of an eagle, testified to the bank’s national charter. On the interior, much marble was used. In 1972, a high-rise Peoples National Bank Tower was built on Laurens Street where the Virginia Hotel had once stood. By the time the new tower was completed, Peoples National had merged with 1
4
Bankers Trust Company. In 1987, the bank joined with North Carolina National Bank and later became part of Bank of America. The sturdy building, shown in this photograph, was demolished about 1972. To the left of the bank in this photograph is the Wallace Building or Franklin National Life Building, which was also demolished in the 1970s. This five-story building had retail space on the street level and offices on the upper floors. 2
The former home of the Peoples National Bank is now the
parking lot of the Bank of America tower and location of construction trailers for the ONE project. Occupying the northeast corner of Main and Coffee Streets, the Cauble Building was a block north of J.C. Penney’s. Built in 1905, this large building was built on the site where a wooden store had once stood. The corner spot, previously the location of a popular saloon, became the home of the Bank of Commerce. The bank’s corner entrance was clearly defined by a rounded arch with a keystone and flanked by a pair of short Romanesque-style columns. 3
The Bank of Commerce was a casualty of the financial problems that followed post-World War I boom. It closed its doors in 1926 with all depositors being paid in full. By the middle of the 20th century, the exterior of the Cauble building was covered by sheeting that completely obscured all architectural detail. In the 1980s, during restoration, the covering was removed. Today the building looks very much like it did when construction was completed in 1905. 4
February 22, 2013 Upstate business journal 31
PAPER OR PLASTIC? The Upstate’s ONLY dedicated business journal. Now available on tablet, smartphone, and the web.
UPSTATE
BUSINESS FEBRUARY 22, 2013
J
O
U
R
N A
L
Tracking the
Hackers
A NEW STATEWIDE BANK SECURITY NETWORK AIMS TO STEM CYBERATTACK DAMAGE AND PREVENT FRAUD PAGE 20
US COMMERCE OFFICIAL WANTS TO MAKE EXAMPLE OF BMW PAGE 10
SEMPRA PICKS GREENVILLE FOR REGIONAL HQ PAGE 16
COMMERCIAL REAL ESTATE CONTINUES UPWARD TREND PAGE 28
Visit: Bit.ly/UBJ022213