Greater Charlotte Biz 2014.12 December 2014

december 2014

3D Printing is the Manufacturing of the Future

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Manufacturing the Future "3D printing is an exponential technology,” says Avi Reichental, president and CEO of 3D Systems Corp. “It is becoming faster, cheaper and easier to use at an exponential rate. From the home, to the school, to the office, to the kitchen, this technology is going to change everything; from how we design, to how we make, how we learn, how we live, how we eat, how we stay healthy, how we share. Everything.”

Eclipsing the Competition

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Eclipse Automation Southeast is a supplier of custom automated manufacturing equipment for industry. From robotic arms on automotive assembly lines to energy regulators for utility companies, President Eric Nitsche describes, “Our purpose is to become an extension to our customers’ engineering teams. We learn what challenges the customer is experiencing and what solutions they need.”

Fly High & Wifi Faster

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Jetpool’s turnkey professional aircraft management services allow companies to focus on their core business, knowing their aircraft is entrusted to a partner with impeccable standards, according to its co-founders Ryan Stone and Eric Legvold. Theirs complementary business, SmartSky Networks, will offer airborne connectivity to allow for real-time sharing of data.

School House Rocks!

The cost of day care now rivals the price tag for college tuition in some parts of the U.S. However, few people are more familiar with the impact of a high quality preschool education than Bill and Amy Strickland, owner-operators of two locations of The Goddard School. They advocate of early engagement from birth and generous exposure to technological resources.

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Legacy is Peace of Mind "The selection of insurance carrier is very important. We’re in business for one purpose: To find the best insurance products, at the best rates, and maintain a relationship with the client for the long term,” says Henry Cantrell of H.B. Cantrell & Co. Son John, who enjoys and appreciates the opportunity to work alongside, agrees, “Our product for over 35 years, now, is peace of mind.”

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o f i n t e re s t …

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Is 2015 The Year To Sell Your Business?

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innovativebiz 3D Printing Endless Possibilities

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December 2014 Volume 15 • Issue 12 Publisher

John Paul Galles x102 jgalles@greatercharlottebiz.com

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OF INTEREST: Transforming the Business of Law to Meet the Needs of Business

IS 2015 THE YEAR TO SELL YOUR BUSINESS? PART I: ARE YOU PERSONALLY READY TO SELL?

T

he personal decision to sell your business is usually based upon some combination of the following:  A desire to “take the chips off the table.” Your tolerance for risk just isn’t what it used to be.  The joy of going to work each day is fading. Not only has the fire in your belly gone out, but it’s been replaced by the desire to do “something else,” known or unknown.  Your chosen “successor” doesn’t work out. Neither child nor employee is able and/or willing to fill your shoes.  You realize that now is the time to sell because you can attain financial security.  There are a lot of activities other than running a company that you still want to experience.

Let’s look at the first two personal motives that can influence your timeline of cashing out of your business today and moving on to the next stage of your life.

Taking Chips Off the Table As we age, our tolerance for risk diminishes and our desire for safety and security increases. Owning and operating a business places the majority of your assets at risk. These risks normally include: n Competitive Risks—from competitors with more money than you; n Financial Risks—the need to continuously invest money in the business to sustain growth; n Personal Health Risks—owners are not immune from health issues that can (and do) pop up without warning; n Liability Risks—there are hundreds of thousands of practicing lawyers in this country looking for someone to sue; n Business Conditions—key employees may leave or your industry may ultimately become irrelevant; and n The Economy—when it cycles down will it take your business with it?

For most owners, there is a point at which these risks become overly burdensome—especially when the business itself has become valuable. You no longer want to expose your most valuable asset to constant risk. When all of your eggs are in one basket and the basket is now worth a lot of money, it makes sense to lower the risk of losing that basket.

The only way to eliminate the risks inherent in owning a private business interest is to sell it—for cash, if at all possible. Doing so not only takes chips off the table by converting an “illiquid” asset to cash, but it also allows you to eliminate personal guarantees, reduce liability exposure and remove personal collateral (used for business purposes) that was at risk.

No Fire in the Belly Few owners reading this article are as energetic and enthusiastic about their businesses as they were when they started. Owners tend to continue in business beyond an “optimum departure date” because they don’t know what else to do with their time. They continue on and spend months or years in their businesses long after the passion has died.

First, once lost, owners typically don’t regain their enthusiasm for and excitement about their businesses. The reason is pretty straightforward—entrepreneurs like to create. Once a business has a life of its own, it is left to wreak havoc or to succeed. Making money and all of the other byproducts of a successful busiOwners tend to ness are nice, but it is the act of crecontinue in business ating, of successfully meeting the beyond an “optimum challenges, that brings satisfaction entrepreneur. departure date” because to the The “fire in the belly” is the they don’t know what passion that gives birth to and else to do with their nurtures your business. Once the time. They continue on business no longer needs you, it is to move on to the next chaland spend months or time lenge, the next call for your pasyears in their businesses sion and creativity. It is at this long after the passion point that many owners begin searching for the exit door in has died. order to find the next passion.

Second, one of the few solutions to the loss of fire is to sell the business and get out. Your business will move to the next level under new ownership for whom moving to the next level provides ample stimulation and challenge.

If one, or both, of these personal motives resonate with you, then the time may be NOW to discuss with your advisors the path that needs to be taken to prepare your business for your exit. Your advisors should have experience guiding business owners like yourself through the process of reviewing the factors associated with exiting a business and creating a comprehensive exit plan that addresses both personal and business objectives.

Article presented by Robert Norris, founder and managing partner of Wishart Norris law firm, a member of Business Enterprise Institute’s International Network of Exit Planning Professionals. © 2014 Business Enterprise Institute, Inc. Reprinted with permission. Wishart Norris law firm partners with owners of closely-held businesses to provide comprehensive legal services in all areas of business, tax, estate planning, exit planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, contact Robert Norris at 704-3640010 or Robert.Norris@wishartnorris.com or visit www.WishartNorris.com.

Norris

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greatercharlottebiz.com | december 2014

[innovative

OF INTEREST: The Potential of 3D Printing

3D

Endless Possibilities

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D printing is considered a “disruptive” technology in as much as it has the potential to revolutionize manufacturing and even effect societal change. According to Avi Reichental, president and chief executive officer of 3D Systems Corp., surprisingly, some of that change may make our future more like our past.

At its heart, 3D printing makes things. It’s an additive manufacturing process that creates three dimensional objects by building them, layer by thin, successive layer out of a variety of materials—over one hundred now and still counting—but usually from plastics, nylon and even metal.

The making of things is part of why Reichental connects 3D printing with our pre-Industrial Revolution heritage, but it’s the ability of 3D printing for mass customization that strikes a chord with Reichental.

“While the Industrial Revolution enabled amazing advancements for mankind, it also atrophied our craftsmanship skills and eradicated hyper local manufacturing, leaving us with cheap, uniform and commoditized goods that churn off assembly lines half a world away.

“Think about the products we consume every day.

Almost all of them were designed to be mass-produced so that producers could achieve economies of scale, making them more readily available to a wider number of people. We call that ‘design for manufacturing,’ but in reality, it is ‘design for manufacturing constraints’ because mass-produced goods inevitably compromise

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fenix fotography

printing pr inting

performance and personalization for production efficiency, cost and uniformity.

“3D printing is turning this traditional approach to manufacturing on its head. A 3D printer requires no tooling or set-up so there are no economies of scale to be achieved from mass production. Per-part costs are the same whether you are producing a batch of one or one million, and this gives

companies the opportunity (and the incentive) to personalize each product to an individual consumer’s needs.

“We are at the dawn of the mass customization era where products you buy— from clothing to consumer electronics to medical devices—will be tailored to your individual specifications.”

fenix fotography

fenix fotography

[innovative

7 3D Printing: An Intro greatercharlottebiz.com | december 2014

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THIS CHANGES

EVERYTHING by barbara fagan

3D Systems is Manufacturing the Future ust a short drive south of Charlotte, in Rock Hill, S.C., is the headquarters of a global company whose technology could change everything—from the way things are manufactured, to how things are designed and prototyped, to ultimately who and what is being produced. It will touch every individual in terms of what they can individually produce, how they will undergo surgery, even what they eat.

The light-filled lobby of 3D Systems (NYSE: DDD) could be the lobby of any large company, except for the display of objects. To the left is a fancifully intricate guitar, a teapot, a woman’s shoe and beautifully detailed dollhouse furniture.

To the right is a delicate scoliosis brace, a helicopter part and farther back, a car engine block casting pattern. All of the items were created on a 3D Systems’ 3D printer.

Chocolate Sugar

Assembling the Technology 3D Systems pioneered 3D printing under the leadership of Chuck Hull, the inventor and patent-holder of the first stereolithography (SLA) 3D printer in 1983. Hull went on to cofound 3D Systems in Valencia, Calif., in 1986.

Hull’s 3D printer enabled engineers for the first time to instantly create functional parts from digital designs, substantially reducing the time it took to prototype parts, which until then had been done using costly and lengthy traditional manufacturing methods. This greatly accelerated product development and compressed time to market.

The first adopters of the technology were America’s carmakers, who saw this capability as a chance to speed up their innovation cycle and reclaim a competitive edge against the rise of cheaper and nimbler foreign imports.

9 3D EuroMold 2014

greatercharlottebiz.com | december 2014

“WE ARE AT THE DAWN OF THE MASS CUSTOMIZATION ERA WHERE PRODUCTS YOU BUY—FROM CLOTHING TO CONSUMER ELECTRONICS TO MEDICAL DEVICES—WILL BE TAILORED TO YOUR INDIVIDUAL SPECIFICATIONS.”

10 Sense

But, despite their obvious usefulness, early 3D printers were complex and costly and therefore limited to deep-pocketed corporations, such as Detroit’s automakers, with the financial and human resources to take advantage of the technology.

However, advances in 3D printing and its associated materials and software have pushed prices sharply lower and improved the quality and usability of 3D printers. This, in turn, has opened up new possibilities across a broad range of industries, including transportation, health care and consumer products. At the same time, thanks to expanding capabilities of 3D printers, companies have begun to use 3D printers to directly manufacture end-use parts.

In 2003, Avi Reichental was appointed president and CEO of 3D Systems. Prior to joining 3D Systems, Reichental served for more than 22 years in various senior executive positions with Sealed Air Corporation.

Both Reichental and Hull are listed among the top 20 most influential people in rapid technologies by TCT Magazine. Hull remains an active member of 3D Systems’ board and serves as the company’s CTO. In 2007, 3D Systems relocated its headquarters to Rock Hill, S.C., in an effort to support an ambitious growth strategy. Over the past few years, the company has implemented a series of well-executed organic and acquisitive growth programs. These investments have helped 3D Systems consolidate key 3D printing technology building blocks, create a one-stop-shop covering the entire contentto-print supply chain, and gain valuable first mover advantage in key areas like health care and direct metal printing.

What differentiates 3D Systems from others, Reichental says, is its ability to address a broad range of design-to-manufacturing applications. In fact, today, 3D Systems is the only company to commercially provide 3D printers in all seven print engines and offer over 120 functional print materials that are complemented by powerful on-demand print services and software specifically tailored for users in each of its verticals.

Traded on the New York Stock Exchange (DDD), 3D Systems today employs over 2,000 worldwide, with more than 300 located in Rock Hill. It has operations throughout the U.S., Europe and the Asia-Pacific region. It is a global leader providing comprehensive 3D design-to-manufacturing solutions including 3D printers, print materials and cloud-sourced custom parts with a $4 billion market cap.

With the goal of pioneering 3D printing for everyone, the company is forward-thinking and future-focused.

And with its strong advanced manufacturing customer

december 2014 | greatercharlottebiz.com

base, it truly embodies its slogan, “Manufacturing the Future.”

A Disruptive Technology 3D printing is considered a “disruptive” technology in as much as it has the potential to revolutionize manufacturing and even effect societal change. According to Reichental, surprisingly, some of that change may make our future more like our past.

At its heart, 3D printing makes things. It’s an additive manufacturing process that creates three dimensional objects by building them, layer by thin, successive layer out of a variety of materials—over one hundred now and still counting—but usually from plastics, nylon and even metal.

The making of things is part of why Reichental connects 3D printing with our pre-Industrial Revolution heritage, but it’s the ability of 3D printing for mass customization that strikes a chord with Reichental.

fenix fotography

3D Systems Charlotte Headquarters

fenix fotography

Deloitte and 3D Systems are helping companies and industries anticipate, plan for and realize the potentially transformational impacts of 3D printing and additive manufacturing.

“My grandfather was a cobbler,” Reichental says.

“Back in the day, he made custom-made shoes. I inherited his love for making, except that it doesn’t exist much anymore. While the Industrial Revolution enabled amazing advancements for mankind, it also atrophied our craftsmanship skills and eradicated hyper local manufacturing, leaving us with cheap, uniform and commoditized goods that churn off assembly lines half a world away.

“Think about the products we consume every day.

Almost all of them were designed to be mass-produced so that producers could achieve economies of scale,

making them more readily available to a wider number of people. We call that ‘design for manufacturing,’ but in reality, it is ‘design for manufacturing constraints’ because massproduced goods inevitably compromise performance and personalization for production efficiency, cost and uniformity.

“3D printing is turning this traditional approach to manufacturing on its head. A 3D printer requires no tooling or set-up so there are no economies of scale to be achieved from mass production. Per-part costs are the same whether you are producing a batch of one or one million, and this gives companies the opportunity (and the incentive) to personalize each product to an individual consumer’s needs.

“We are at the dawn of the mass customization era where products you buy—from clothing to consumer electronics to medical devices— will be tailored to your individual specifications.

“If this sounds futuristic, consider this,” continues Reichental. “Currently, Align Technology, the maker of Invisalign clear orthodontic braces, is using 3D printing to produce more than 20 million one-of-a-kind aligners each year. And almost every in-the-ear hearing aid today is 3D printed to perfectly fit each wearer’s ear canal.”

One salient example of mass customization is 3D Systems’ work on a continuous high speed manufacturing system that can print 50 times faster than today’s technology and produce functional full-color multi-material parts for automotive, footwear, toys and consumer electronics companies requiring continuous high speed manufacturing.

Manufacturing the Future Automobile manufacturers were early adopters of Hull’s technology, discovering that 3D printing substantially compressed

Avi Reichental President and CEO 3D Systems Corp.

fenix fotography

“WE INVENTED 3D PRINTING, ADVANCED IT AND CONTINUE TO LEAD THE DEMOCRATIZATION OF ACCESS TO THIS TRANSFORMATIVE TECHNOLOGY FOR THE BENEFIT OF MANUFACTURERS, HEALTHCARE PROVIDERS, CONSUMERS AND EDUCATORS.”

This ad would be better with a great photo.

(So would yours.)

Fenix

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F OTO G R A P H Y www.FENIXFOTO.com

| 704.957.1697

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“WITH A 3D PRINTER COMPLEXITY IS FREE. A 3D PRINTER DOES NOT CARE IF IT MAKES THE MOST RUDIMENTARY GEOMETRY OR THE MOST COMPLEX. THERE IS NEITHER BARRIER NOR PENALTY FOR COMPLEXITY.”

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their time to market with new cars, giving them a meaningful market advantage.

3D printing remains a mainstay in automobile manufacturing. General Motors (GM) uses several 3D Systems’ technologies in their Rapid Prototype Department, allowing quick iteration of parts with no tooling and permitting engineers and designers to visualize a part or use it for a mock up or small batch production.

GM considers the 3D Systems-powered design and manufacturing as a strategic investment, citing the quality and fidelity of the parts as well as the speed and labor cost savings involved in making them.

Aerospace companies were also early adapters of 3D printing, and rely on the technology today for everything from prototyping to manufacturing end-use parts. The Boeing Company, for example, makes use of 3D Systems’ Selective Laser Sintering (SLS) printers to design, test and manufacture parts for its air vehicle products that include the AH-64D Apache Longbow helicopter.

“If I were to add up all the tooling costs we’ve eliminated, all the parts we’ve made, and all the man-hours we’ve saved by using our SLS system to create prototypes and parts, I could easily say we’ve saved enough to pay for the system—and potentially even a second machine,” says Jerry Clark, manager of the Air Vehicle Configuration

december 2014 | greatercharlottebiz.com

Design, Integration and Rapid Development Department of Boeing.

To further assist manufacturers, large and small, 3D Systems offers Quickparts, the company’s on-demand parts service. Quickparts provides quick-turn custom manufacturing parts, offering services throughout the entire development of a product, from rapid prototyping and preproduction, to tooling and production.

And while Quickparts is a natural choice for manufacturing companies like Siemens and Whirlpool, Quickparts’ speedy turnaround and cost-effectiveness appeals to audiences outside of manufacturing as well.

Using 3D Systems’ SLS printing technology, Quickparts printed the main helmet bases and structures of the white helmets worn by George Clooney and Sandra Bullock in the Academy Award-winning film “Gravity.”

Quickparts’ ability to manufacture whatever product a company needs anywhere—a movie prop one day, a functional car part the next—illustrates how 3D printing is already changing the face of manufacturing.

“3D printing is quickly turning conventional manufacturing wisdom on its head, and in particular challenges the notion of economy of scale,” Reichental maintains. “Because 3D printing eliminates the need for expensive tooling, set-ups and change-overs, companies are free to onshore and relocalize their manufacturing closer to their marketplaces.

“This form of distributed/localized manufacturing can substantially reduce freight costs and the associated environmental impacts, and provide the flexibility for unlimited product segmentation to cater to local taste and demand.

“A shoe company selling 3D printed sneakers might market a sneaker line throughout the U.S., but print it with more rugged winter-ready treads in its Oregon production facility and flatter, smoother treads in its Florida facility.

“The relocalization of manufacturing is

not just about manufacturing a single line of products close to the consumer, but also about creating local fulfillment centers, where any number of companies or consumers can have products manufactured on demand.

“And parts can be literally teleported (specs shared digitally and manufacture done locally).

Anywhere, anytime. And because this is all done on demand, there is no need for inventory!”

But hyperlocalization of manufacturing and on-demand inventory is only part of the 3D printing story. “With a 3D printer, complexity is free,” explains Reichental. “A 3D printer does not care if it makes the most rudimentary geometry or the most complex. There is neither barrier nor penalty for complexity.

“With 3D printing, designers are uninhibited by yesterday’s manufacturing constraints and are free to produce whatever they can dream. That has powerful implications for sectors like aerospace, automotive and health care, where complex design is essential to unlocking better performance and durability.”

The Health Care Digital Thread If health care is not the first industry that comes to mind when you think of 3D printing, 3D Systems’ medical applications could change that.

“Personalized medical devices are among the most exciting applications today.

And they are arguably the most impactful,” says Reichental. “Already, we are able to use CT/CBCT scan data from individual patients to create patient-specific dental restorations and anatomical models, custom surgical guides, implantable devices, exoskeletons,

A Leg That Fits

hearing aids, prosthetics, and braces for scoliosis and other applications. And that’s just to name a few.

“Beyond that, we’re also able to use the same patient-specific data to provide surgeons with accurate planning models and virtual training and operating platforms for use in some of the most complex surgeries performed today.”

3D Systems’ Virtual Surgical Planning (VSP) technology allows surgeons to work with 3D Systems’ Medical Modeling experts to create a surgical plan and print 3D study and practice models as well as actual surgical instruments and implantable devices, providing them with tools and guidance to virtually plan and physically practice and perform critical steps of an operation before a patient ever steps into the operating room and while the patient undergoes the actual procedure.

In a recent case, a surgeon successfully used the VSP technology to assist in correcting the undersized jaw of a one-month-old, allowing her to properly breathe. This saved the child from enduring a tracheostomy until the age of six when this surgery is traditionally performed.

“This integrated, personalized approach to health care is what we refer to as ‘the digital thread’,” explains Reichental, “and it is revolutionizing health care as we know it. In 10 years, I believe we will look back on medical procedures that don’t use a 3D digital thread as crude.”

The Democratization of 3D Printing While many industries have been using 3D printing to strategic advantage for decades, Reichental is a strong champion for democratization of the technology for use by everyone.

“3D printing is an exponential technology,” he says. “It is becoming faster, cheaper and easier to use at an exponential rate. For its first few decades, 3D printing was complex and expensive and, as such, was only available to deep-pocketed corporations.

“But the costs of 3D printing have fallen so much that this technology is finally opening to the consumer for home use. This year, we introduced plug-and-play consumer 3D printers for under $1,000, which are supported by a vibrant ecosystem of design tools and creative communities that allow users to effortlessly create and share content.”

3D Systems’ Cube 3 printer offers dual color printing, touch screen controls and printing direct from your mobile device. Ideal for hobbyists or anyone interested in 3D printing things for use and wear, the Cube is enhanced and supported by 3D Systems’ Cubify.com, an online platform that enables users to share designs, download free designs, order printed

products or use Cubify tools and apps to design and create objects on their home 3D printer.

Cubify.com also offers a Cloud Printing service that can print and deliver a user’s specific design to their doorstep in days.

The company also introduced a line of Sense 3D physical photography devices priced under $500 that can digitally capture objects and quickly turn them into 3D printable files.

CHEAPER AND EASIER

“The sooner kids are exposed to this digital literacy, the faster they master tomorrow’s competitive skills.

“But not every kid wants to learn CAD, nor should they have to, so we are developing intuitive, gamified apps that make creating content fun and coloring-book simple.”

To further its goal of ease of use and enhance the design experience, this year the company debuted the Touch haptic 3D stylus, which gives instant force feedback that mimics physical sculpting and transforms 3D modeling to a simple, easy sculpting experience for users.

Other new 3D Systems’ product offerings include the Ekocycle Cube 3D printer which uses recycled post consumer plastic such as from discarded plastic water or soda bottles and the ProX400, a direct-metal printer for large scale industrial manufacturing use, unveiled at EuroMold 2014 last month.

Although not yet commercially available, 3D Systems also debuted a 3D printer that can print in sugar or chocolate at the Consumer Electronic Show 2014. Think wedding-cake toppers or personalized candies—the uses of this technology are only limited by the imagination.

TO USE AT AN

Competitive Marketplace Fuels Innovation

“FOR ITS FIRST FEW DECADES, 3D PRINTING WAS COMPLEX AND EXPENSIVE AND, AS SUCH, WAS ONLY AVAILABLE TO DEEP-POCKETED CORPORATIONS. 3D PRINTING IS AN EXPONENTIAL TECHNOLOGY, IT IS BECOMING FASTER,

EXPONENTIAL RATE.” To further democratize the technology, 3D Systems is actively involved in advancing digital literacy in grades K-12 S.T.E.A.M. education with its First Robotics, Level Up Village and M.21 Lab education programs available to schools, libraries and museums.

“Kids just get it, instinctively and instantly,” says Reichental. “They are at home with tech and immediately understand how to bridge the virtual with the actual using our 3D scanning devices to digitize their environment. Then they begin to create, customize and bring their ideas to life.

While ever-expanding applications continue to grow the 3D printing market, it remains a highly competitive industry. Stratasys Ltd. is a large player and Hewlett Packard just announced they will enter the 3D printing field.

Reichental comments that he finds HP’s announcement “enormously validating to us.”

In the meantime, new products and innovation continue to fuel growth and revenue for 3D Systems. The company expects annual revenue for 2014 to be in the range of $680 million to $720 million, and the company’s continuing affinity for acquisitions is expected to better its share of the 3D printing market, especially in key areas of health care and aerospace.

LIVINGROOM CLASSROOM GARAGE DESKTOP LAB FACTORY

From $1,000 up to $950,000, 3D Systems provides 3D printers in all seven print engines and offers over 120 functional print materials that are complemented by powerful on-demand print services and software specifically tailored for users in each of its verticals.

13 Cube Pro for Engineering

greatercharlottebiz.com | december 2014

And while it expands its global network, 3D Systems is also renewing its commitment to the Charlotte region with the lease of a 200,000-square-foot manufacturing and distribution center near its existing headquarters in Rock Hill.

“When we decided to move our global headquarters from California in 2007, the Charlotte region was the obvious destination for a high-tech, high-growth business like ours,” attests Reichental. “While selecting a vibrant, pro-business destination was a major part of that decision, we were equally looking for a community in which entrepreneurial thinking thrives.

“With a long list of business success stories, a talented labor market and world class infrastructure, the Charlotte region had all the right ingredients for us to develop and scale our business. The city’s location—balanced between Asia and Europe—also made it much easier to manage our expanding global operations in real time.

“Since our arrival, we have enjoyed a terrific and constructive relationship with the South Carolina Department of Commerce.

Our collaboration has already resulted in the creation of hundreds of jobs and is built on

the shared belief that building a center of excellence in advanced manufacturing can bring strong benefits to this region.

“For more than 30 years, our success at 3D Systems has come down to the effectiveness of our technology,” Reichental continues.

“We invented 3D printing, advanced it and continue to lead the democratization of access to this transformative technology for the benefit of manufacturers, health care providers, consumers and educators.

“From the home, to the school, to the office, to the kitchen, this technology is going to change everything; from how we design, to how we make, how we learn, how we live, how we eat, how we stay healthy, how we share. Everything.”

3D printing’s potential to revolutionize our lives is quickly becoming apparent, and 3D Systems is poised to be a major force helping shape the new order of things.

Forbes has ranked 3D Systems No. 13 among the Most Innovative Growth Companies with a market capital less than $10 billion, and just recently No. 43 among America’s Best Small Companies in 2014.

Barbara Fagan is a Greater Charlotte Biz freelance writer.

Some images provided by the company.

3D Systems Corporation 333 Three D Systems Circle Rock Hill, S.C. 29730 Phone: 803-326-3900 NYSE: DDD Principals: Avi Reichental, President and CEO; Chuck Hull, Cofounder and CTO Founded: 1986 Operations: Over 40 subsidiaries in the U.S., Europe and the Asia-Pacific region Financials: $513.4M Revenues (2013); $44.1 Net Income (2013); $1,098M Total Assets (2013) Employees: 2,000 worldwide, over 300 in Rock Hill, S.C. Business: Pioneering 3D printing by providing advanced and comprehensive 3D design-tomanufacturing solutions including 3D printers, print materials and cloud-sourced custom parts; digital thread empowers professionals and consumers to bring their ideas to life in material choices including plastics, metals, ceramics and edibles; health care solutions include endto-end simulation, training and integrated 3D planning and printing for personalized surgery and patient specific medical and dental devices; democratized 3D design and inspection products embody the latest perceptual, capture and touch technology; products and services replace and complement traditional methods with improved results and reduced time to outcomes. www.3dsystems.com

14 Providing The Perfect Fit For Your Space december 2014 | greatercharlottebiz.com

3111 Freedom Drive, Charlotte NC 28208 704.399.1948 | www.larnersoffice.com

OF INTEREST: Get LinkedIn or Be LeftOut

SHORTEN YOUR SALES CYCLE WITH LINKEDIN SOCIAL SELLING

T

he term social selling is derived from the use of social media to develop relationships for the purpose of selling a product or service to an individual. The fact is, “social” selling has been around since the beginning of mankind. The most successful sales professionals have always known that people don’t want to be “sold,” but they love to buy.

Understanding this dynamic, “old school” sales people spent significant time uncovering buyers. Once found, they cultivated a relationship with the buyer while listening attentively and learning their pain points with compassion. This approach led to a positive relationship, which ultimately resulted in a sale. This seems simple but today relationship building and targeted sales can be accomplished more efficiently using social media.

Today the use of LinkedIn serves to shorten the sales cycle by easily uncovering key decision makers. By gaining important insight into the prospect, the learning curve has been shortened and contacting the buyer/decision maker is less time-consuming.

more about the inner workings of an organization. Take time to leverage your current connections to gain insight into who can introduce you to specifiers and procurement personnel.

Within your network, look for those people who are connected to your 2nd or 3rd degree connections and request an introduction.

Research by LinkedIn shows that people are five times more likely to engage with you if the outreach is through a mutual connection.

Create a Great Profile Directed at the Buyer Research Supports the Power of Social Selling If you’re skeptical about conducting business using social selling, recent research adds to the credibility of engaging with social media. Here are a few examples:  75% of B2B buyers use social media to make buying deci sions. (International Data Corporation (IDC))  50% of B2B buyers use LinkedIn as a source for making pur chase decisions. (IDC)  76% of B2B buyers prefer to work with recommendations from their professional network. (IDC)  More than 72% of sales people using social selling as part of their sales process outperformed their sales peers and exceeded quota 23% more often. (Aberdeen Group)

Efficiently Connect with the People Who Matter LinkedIn isn’t intended to replace face-to-face interactions; instead, it optimizes your ability to know more about people you’ve met or are about to meet. With over 332 million members on the world’s largest professional network, LinkedIn facilitates successful lead generation by enabling sales professionals to easily find their targeted prospects.

Utilizing LinkedIn also creates an opportunity to conduct business internationally through the ability to research LinkedIn company pages and key executives worldwide. It helps establish the relationship quickly and easily.

Social selling involves developing new relationships but it also relates to re-engaging past clients. Success can be traced back to reconnections. As a result of using LinkedIn to get back in touch with former clients, you can acquire new lucrative accounts.

Indeed, you should follow prospective company pages to learn

Your inbound marketing tool is your profile. A well thought out, optimized profile presents you as a professional who is reputable and stands out in a crowd of sameness. It exhibits in words and through attached media the depth of your experience and speaks loudly about your ability to achieve results. Take note that buyers are researching sellers to determine whether your company or you personally have the acumen necessary to engage them. Being found for business opportunities is the bonus of having an optimized profile.

Don’t Sell… Listen, Publish, Engage, Build Remember this is a social medium. You’ll turn off a prospective connection if you sell, particularly with your first communication.

Instead spend time engaging, learning and exhibiting sincere interest. Join groups they are currently in. Listen to the conversation, participate and pay attention to your prospects involvement.

Publish your own content; articles, posts, blogs, or share your executive associates’ posts to your network and groups. This will serve to present you and your organization as forward-thinking thought leaders worthy of business collaboration and consideration.

Basses

Social Selling in a Nutshell Prospect efficiently using LinkedIn to find your warm leads, engage with key people in companies you choose to target, build trust and create relationships offline with your prospects and if you are patient your buyers will be asking YOU for the sale!

Content contributed by Linda and Ira Bass of IB Media LLC, an advertising media planning and placement firm built using the strategic power of LinkedIn to serve agencies and marketers with a targeted approach to reaching their customers. For more information, please contact Ira Bass at IraBass@IBMedia.biz or 704-989-3790.

Learn more at www.IBMedia.biz or www.LinkedIn.com/company/IB-Media-LLC.

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greatercharlottebiz.com | december 2014

Eric Nitsche President Eclipse Automation Southeast, LLC

“No matter the job, our purpose is to become an extension to our customers’ engineering teams. We practice customercentricity, trying to understand and continually learn what challenges the customer is experiencing and what solutions they need in order to be effective in their missions.”

december 2014 | greatercharlottebiz.com

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by andrew rusnak

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THE Eclipse Automation Southeast is Customer-centric and Team-oriented

rom robotic arms on automotive assembly lines to energy regulators for utility companies, automation is everywhere. For Eclipse Automation Southeast, located in the Whitehall Technology Park, this means big business.

Eclipse Automation Southeast (SE), along with Eclipse Automation Southwest located in Fremont, Calif., are the newest appendages of Eclipse Automation, Inc., headquartered in Cambridge, Ontario, Canada.

Eclipse Automation SE President Eric Nitsche explains, “Eclipse Automation was started by four individuals who had been in the automation industry for some time. They all left the company they worked for and started Eclipse in a 3,200-square-foot space and the company has grown steadily over the last 13 years. Even through the financial collapse, Eclipse managed to grow and was able to acquire a number of struggling companies along the way.

“In the latter part of 2012, customers forced expansion,” continues Nitsche, “and the question became whether to continue to expand operations in Canada or to make the leap into the U.S. That was a straightforward choice because 80 percent of the company’s customer base is in the U.S. That’s when they contacted me and asked me to head up their U.S. expansion.”

Eclipse Custom Automation

18 Eclipse Operations Overview december 2014 | greatercharlottebiz.com

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“The world we live in today changes and turns over so quickly. If you do today what you did last month, you’re already behind. But it’s a fine line. You have to leverage engineering where it makes sense.

You don’t want to keep reinventing wheels, but you don’t want to ignore new technology. There’s always better ways to do things.”

The Custom Automation Operation Nitsche was not altogether unfamiliar with Charlotte. “I had worked for another automation company for many years,” he says, “and that company had sent me to Charlotte in 1998. When Eclipse approached me to take over their U.S. expansion effort, I immediately recommended Charlotte as the first location.

“The Southeast is extremely vibrant and Charlotte is situated with the I-77 and I-85 sector right here, providing easy access to virtually anywhere in the Southeast.

If you have to go further, there are few better airports than Charlotte-Douglas. Also, being a Charlotte resident, I knew the market, and I knew we had access to an abundance of skilled trades and engineers.”

One of the keys to Eclipse Automation’s success, both in the U.S. and in Canada, is the fact that all of the owners are involved in day-to-day operations. As Nitsche explains, this is incredibly important as the process of turning a concept into a finished piece of custom automation can be quite involved.

“The conceptualization process is important because what we deliver doesn’t yet exist,” Nitsche explains. “You can’t open a catalog and point to something and say ‘You need this.’ So, to start, we go out there and find a need. From there we develop high level concepts and build our proposals.

“If we’re fortunate enough to win the work, we generally start with a detailed mechanical engineering process. This takes the concepts and starts adding details to them from a mechanical perspective. We then layer over the controls phase, which is simply put, the electrical side of solution. I often like to analogize the mechanical side to the brawn and the controls side to the brain.

“Once the design is evolved, we move it out to the floor where we manufacture all of the bits and pieces

that we’ve custom-engineered and procure the engineered-to-order content or off-the-shelf commodity parts. Once that’s complete, the assembly phase begins.

Everything starts with a concept, moves through mechanical and controls engineering, and then we complete a mechanical and electrical build. Once the assembly phase is complete, we program things on the software side—the brains of the machine.”

He adds, “Then we debug and integrate, so all of the guys are out there on the floor making sure everything is working accordingly. Once we’re sure the machine is ready, the customer comes and validates, we deconstruct, move it to the customer’s site, rebuild, and revalidate.”

Nitsche smiles, “After all of that, everybody comes home and we start the next project. With a team of our size, we have roughly 12 projects going at any one time in different stages of completion.”

A Customer-centric Approach Eclipse Automation serves a number of tech industries. The Charlotte facility focuses primarily on automotive at present. Currently, the Southeastern region is experiencing high growth in the automotive sector as many manufacturers abandon the Midwest.

However, Nitsche expects the North Carolina facility to begin taking on more work in other industries going forward. With North Carolina being home to a number of universities, health care providers, and energy

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“For example, we have already started to utilize 3D printing in some ways.

It’s a complimentary technology that I’m sure we’ll find more and more ways to utilize.” companies, Eclipse Automation SE is poised to take on those industries as well, something the Canadian headquarters already does a lot of.

In addition to providing custom automation services, Eclipse Automation also offers engineering services.

“Sometimes, customers need help trying to plan and execute strategies to go to market,” explains Nitsche. “Whether it’s design for manufacturing, a plant layout, proof of principles, engineering services, or design of experiments, we can make it happen.”

He adds, “Because many companies are finding themselves strapped for resources, they often look outward for engineering services to help them decide how to approach things.

“No matter the job, our purpose is to become an extension to our customers’ engineering teams. We practice customercentricity, trying to understand and continually learn what challenges the customer is experiencing and what solutions they need in order to be effective in their missions.”

Eclipse Automation has been equally purposeful in its mission develop their own

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“Looking forward, first off, Eclipse Automation has always been extremely successful, and now that we’re here in the Charlotte area, I think it’s going to open doors that were never open before. We have a tremendous legacy and tools and processes that we’ll be able to offer to a far bigger audience. When people start to see what we have to bring to the table, it’s going to explode.”

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december 2014 | greatercharlottebiz.com

enterprise database system to provide total customer service. Unable to find software to meet its needs, the company decided to create its own SQL database application, and today, this database ties together everything the company does to meet customer expectations.

“Other companies try to mesh together different software platforms,” explains Nitsche, “but it just doesn’t flow as seamlessly as needed. Here, everything is automated, right down to employee login.

From there, virtually any aspect of the business, depending on the employee’s level of clearance, can be accessed within about five clicks of a mouse.

“Our customer relationship management, our engineering databases, our training modules, our scheduling, our project management, everything resides here.

This allows us to be effective for our customers and it encourages everybody in the company to communicate.”

The Evolution of Automation As Eclipse Automation has grown, the scope of the company’s projects has evolved. Starting out, only a handful of employees were available to work on projects, limiting the clients Eclipse Automation could bring in. Today, however, Eclipse Automation works with some of the biggest names in manufacturing.

According to Nitsche, “If you name the top 10 manufacturers in the world right now, we probably work with eight of them. Part of how we’ve remained competitive is to have a fairly flat hierarchy. We just get it done.

“Our team consists of myself, department heads in the manufacturing area, the mechanical and control teams, someone who takes care of the supply chain side, a controller on the finance side, and a project management team. This allows Eclipse Automation to remain nimble while still being able to take on large projects from top manufacturers.”

Another key to the company’s success is word-ofmouth advertising. While Eclipse Automation does attend trade shows and use traditional advertising on occasion, Nitsche says that doing a job well is the best way to market. In addition, digital tools such as social media are being implemented in order to get the

Eclipse Coming to Charlotte

Eclipse Automation name out.

At the heart of it all, however, is the employee selection process. Eclipse Automation recruits skilled tradespeople and engineers based upon experience, aptitude and education. Additionally, all employees are supervised by veterans, and teamwork is a must.

Nitsche explains, “All that we do is teambased. Collaboration is crucial in our business, and having brought in a lot of people from different backgrounds has been challenging, but it’s worked out great because so many people have different experiences and skill sets. While we’re working with the tools that our headquarters has provided, we’re doing so with a whole new cast of characters.

“As far as measuring success, ultimately, it comes down to three things: Can we be proud of the end product? Is our customer satisfied?

And did we profit at the end of the day?

“Because we’re a team, there’s not necessarily a key performance indicator. Unlike surpassing the last month’s sales expectations, performance is evaluated different in our industry. As a company, we certainly have goals, objectives, and measurable, but it takes a team to get things done.”

Manufacturing Making a Comeback In an interesting turn of events, manufacturing as a whole is making a comeback in North America. Although many companies have gone offshore in recent years, they have been met with unforeseen challenges. Quality control issues have been a thorn in the side of many in the offshore manufacturing sector, and natural disasters, such as the tsunami that struck Japan’s Fukushima nuclear reactor, have crippled many in the industry.

“Manufacturers are starting to realize that, with all of these issues, they are losing

control of what they can and can’t do, so a lot of companies are rethinking things and bringing their businesses back to North America; yet they’re still pressured to be competitive, and automation is a key component in that,” says Nitsche.

“The world we live in today changes and turns over so quickly. If you do today what you did last month, you’re already behind. But it’s a fine line. You have to leverage engineering where it makes sense. You don’t want to keep reinventing wheels, but you don’t want to ignore new technology.

There’s always better ways to do things.

“For example, we have already started to utilize 3D printing in some ways. It’s a complimentary technology that I’m sure we’ll find more and more ways to utilize.

“In order to get things right, now and

“In fact, it wouldn’t surprise me if our American operations ‘eclipse’ our Canadian operations somewhere in the next decade. The opportunity and audience are just that much bigger.” going forward, we have to plan, plan, plan,” Nitsche maintains. “When a project comes along, the tendency is to jump right in, but what we have to do is slow down for a minute and gather everyone and plan.

Everybody needs to be on the same page.

“That could take two hours, it could take two days, it could take two weeks, but it’s a make-or-break point. Everyone needs to understand the requirements and budgets and effort required, and then plan the project accordingly, and then monitor progress in realtime and follow the plan through.”

One challenge that Nitsche mentions is finding qualified people in a competitive market. He says, in fact, that sometimes Eclipse Automation SE has had to look outside of the region for skilled employees, but fortunately Charlotte isn’t a hard sell.

“Because Charlotte offers so many amenities…good school systems, professional sports,

entertainment, museums, the weather…it’s easier to attract employees to Charlotte versus many other areas of the country. Charlotte has a lot going for it, and when we have to go outside of the region to recruit, we’ve got a good story to tell,” Nitsche comments.

As for the future of Eclipse Automation and the automation industry as a whole, Nitsche is enthusiastic and excited.

“Looking forward, first off, Eclipse Automation has always been extremely successful, and now that we’re here in the Charlotte area, I think it’s going to open doors that were never open before.

“We have a tremendous legacy and tools and processes that we’ll be able to offer to a far bigger audience. When people start to see what we have to bring to the table, it’s going to explode.”

He laughs, “In fact, it wouldn’t surprise me if our American operations ‘eclipse’ our Canadian operations somewhere in the next decade. The opportunity and audience are just that much bigger.

Will we have more locations in the U.S. going forward? That’s certainly possible, although not on the drawing board just yet.

But, even just here in the Charlotte area, the

opportunities are immense, the industry is ripe, and to me, the sky is the limit.”

Andrew Rusnak is a Greater Charlotte Biz freelance writer.

Some images provided by the company.

Eclipse Automation Southeast, LLC 2920 Whitehall Park Drive Charlotte, N.C. 28273 Phone: 704-588-8705 Principal: Eric Nitsche, President Parent: Eclipse Automation, Inc., Cambridge, Ontario, Canada In Business: 2014 (Charlotte); 2001 (parent) Employees: 40 (Charlotte), approximately 175 (parent) Recognition: Canadian Business and PROFIT ranked Eclipse Automation No. 393 on the 26th annual PROFIT 500, the definitive ranking of Canada’s Fastest-Growing Companies Business: Supplier of custom automated manufacturing equipment for the energy, health sciences, transportation, mining, consumer and industrial, and telecommunications and electronic industries; partners with Fortune 1000 companies to build efficient and profitable assembly and testing solutions. www.eclipseautomation.com

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Fly&Wifi by carol gifford

HIGH faster

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december 2014 | greatercharlottebiz.com

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(l to r) Eric L. Legvold CEO and Cofounder Jetpool, L.L.C. Ryan M. Stone Chairman and Cofounder Jetpool, L.L.C. President SmartSky Networks, LLC

Jetpool and SmartSky ir travel is a necessity for most businesses, but if you ask any business traveler what he or she thinks about air t ravel you are likely to hear a litany of complaints about high costs, lengthy trips, time away from the office, stress, and concern about safety protocols.

Ryan Stone and Eric Legvold are making it more convenient and faster for business people to travel and offering an alternative that will allow them to work while they travel.

Their businesses, Jetpool and SmartSky, work to relieve the stress of commercial business travel while providing a speedy, reliable and capable telecommunications connection.

The two business partners go back a long way. Growing up in Florida, they lived across the street from each other and attended middle school together. Fast forward a number of years when the two friends relocated to Charlotte around the same time, and reconnected.

Legvold, a pilot, was flying planes for a charter company. Stone, a Naval Academy graduate and submarine officer, was working as an engineer for Duke Energy. Stone was also pursuing an MBA and was looking at new business opportunities. The two started talking about using their different areas of expertise to start a business, and the genesis of Jetpool was underway in 2004.

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A

Are Taking Off‌

Jetpool’s turnkey professional aircraft management services allow companies to focus on their core business, knowing their aircraft is entrusted to a partner with impeccable standards. Jetpool services enable employees to better service key clients and be in position to act rapidly on business opportunities.

24 Why Jetpool Is Different december 2014 | greatercharlottebiz.com

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JetPool Hangar, Charlotte, N.C.

Eric L. Legvold CEO and Cofounder Jetpool, L.L.C. Legvold had started flying at the age of 18. He learned corporate aviation during his eight years working as a corporate and charter pilot. He has more than 19 years of professional aviation and industry experience.

Stone’s contribution was his business acumen and his access to business coaches and professional reviews of business plans through the MBA program at UNC’s Kenan-Flagler Business School.

“There is a lot of room for companies like ours that focus solely on aviation,” explains Legvold, Jetpool’s cofounder and CEO. “We provide charter services to clients in planes that we acquire or lease. We also maintain the aircraft and provide all the regulatory compliance.”

Even in the early days of Jetpool, the partners couldn’t help but notice another big issue in business air travel—how to increase productivity on electronic devices by surmounting telecommunications constraints.

“Making a mobile phone call, let alone conducting business via telecommunications connections via video or audio during a flight, has always been fairly impractical, to say the least,” says Stone. “As a consequence, businesspeople are forced to figure out what they need to download before they travel.”

Enter SmartSky, the partners’ new launch, to provide interconnectivity with air-to-ground transmitters, allowing business travelers to work during air travel on anything that requires connectivity—making phone calls, downloading documents, or conducting video conferences.

Both businesses are located near the Charlotte Douglas International Airport, where it is easy to meet with customers.

Getting Off the Ground Both Stone and Legvold are quick to credit the Charlotte business community as essential to the establishment of their companies.

“We’ve found some nice partnerships,” comments Stone. “Charlotte is the kind of community where people work together to help each other with business needs.”

Both praise Packard Place, a hub for business start-ups, as extremely helpful. They also laud the Business, Innovation and Growth Council (BIG), which the two joined when starting Jetpool, and a place they returned to later.

“When we were ready to open SmartSky, we went back to BIG and got feedback and pushback that was helpful in starting the second company and separating the two,” adds Stone.

Stone’s MBA coaches and classes offered assistance.

The Jetpool founders presented a business problem to a class asking for assistance with cloud-based computing. The students returned good business advice, even recommending three vendors to consider, from which Jetpool selected one to develop its IT system.

Stone and Legvold also consulted with the Golden Leaf Foundation-backed Wireless Research Center of North Carolina on patent work and wireless analysis.

Jetpool was incorporated in 2006 with three partners; Paul Sameit, another pilot, joined Legvold and Stone as CFO. Opening during the recession was difficult, but soon after its start, Jetpool was asked to bid on and won a contract for aviation from a local Fortune 500 company. Day-to-day operation benefitted from Stone’s

Accountants First, Advisors Foremost

systems engineering and Sameit’s business background, while Legvold provided the aviation and aircraft system experience.

“We provide aircraft management and charter services; we are a turnkey operation,” says Legvold.

“We offer our clients safe travel on their time, and have the ability to schedule and maintain airplanes to the level required by a Fortune 500 company,” assures Legvold.

“Business executives and corporations have come to view business travel as a necessity, with the goal being to use it as a tool and a time machine.”

Private jets allow key executives to pack more into their day. Private jets typically land five to 10 miles from the traveler’s ultimate destination, allowing executives to avoid long waits for commercial flights, overnight stays and long rental-car rides. In addition, there are no security checkpoints to endure, saving even more time.

“Over the long term, the effects of wasted time and added stress can even affect career choices or early retirement options,” Stone points out. “We are able to offer a time-effective, cost-effective, productivity-effective alternative at Jetpool.”

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SmartSky uses on-board WiFi connectivity with ground antennas for faster speed.

Jetpool’s complementary business, SmartSky Networks, will offer airborne connectivity with the same kind of service available in an office or home by connecting aircraft to ground antennas, rather than satellites in orbit, to allow for real-time sharing of data. SmartSky is scheduled for a betacustomer launch in late 2015, followed by a national commercial launch in 2016.

SmartSky 4G System

SmartSky avoids the latency that results from satelite use.

“Jetpool has grown every year, and been profitable since it began,” boasts Legvold. “Yearover-year we’ve seen a 35 percent growth in revenue. In the future, I see us holding to a minimum 20 percent growth rate.”

Legvold points out that safety is a core value of Jetpool, learning and adopting a mindset from its Fortune 500 clients on how to build a “culture of safety.” The company has earned an IS-BAO, an international certification for business aircraft operators similar to ISO 9000, becoming one of the first adopters of this certification.

Trust is another core tenet and a companion to safety for Jetpool clients.

“It’s different from commercial airlines where you don’t know who’s flying the plane and you’re not sure how well the plane was maintained or why there might be a maintenance issue delaying your flight,” says Legvold.

Legvold says the company gets to know its passengers over a period of years: “We know their habits and what they like so we can be better prepared and always ready to serve them. One client’s ‘few minutes’ might be an hour or so, while another client’s ‘few minutes’ might be 15 minutes. We’re always ready and operating on their time.”

He thinks that the company has the “right mix” of people working in maintenance, operations and scheduling to continue its expansion, perhaps into the Washington, D.C., market.

SmartSky Set to Launch Stone and Legvold’s newest brainchild, SmartSky, will offer airborne connectivity with the same kind of service available in an office

SmartSky’s 4G ATV Connectivity Air-to-ground (ATG) network lowers latency, or the time delay caused when the signal is travelling to an orbiting satellite and back again “Beam-forming,” or targeting specific aircraft with specific networks so users don’t have to share with other aircraft in the same area 60 MHz of spectrum allowing for a larger bandwidth, 10 times the speed and capacity currently available.

SmartSky Networks

26

Jetpool clients are a mix of large companies and smaller clients. For companies that require extensive executive travel, Jetpool offers charter management. Companies that don’t require as much time in the air can access private aviation through hourly chartered flights or by participating in Jetpool Shares, which combine the access of jet ownership with the financial accessibility of a lease.

Essentially, Jetpool acts as an outsourced aviation department, maintaining aircraft, providing pilots and scheduling fights. At present, the company has 30 employees; 15 fulltime and three part-time pilots with seven airplanes, up from four in 2013.

december 2014 | greatercharlottebiz.com

or home by connecting aircraft to ground antennas, rather than satellites in orbit, to allow for real-time sharing of data. SmartSky is scheduled for a beta-customer launch in late 2015, followed by a national commercial launch in 2016.

Stone says the impetus for the new venture originated from a Jetpool client: “We had a specific request for telecommunications connectivity, and when we looked at the options available, we found limited services available. So we set out on a quest, and SmartSky was born.”

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greatercharlottebiz.com | december 2014

Untangling the Regulation

28

“Nothing in aviation is simple,” Stone comments. “And starting SmartSky was a complicated business with the bureaucracy of the telecommunications industry and compliance requirements “We realized very quickly that we needed telecommunications expertise,” says Stone. “We needed someone with an intimate knowledge of the marketplace. Haynes Griffin, our chairman and CEO, was the CEO of Vanguard Cellular (one of the co-owners of Cellular One), and the first chairman of the

december 2014 | greatercharlottebiz.com

Ryan M. Stone President SmartSky Networks, LLC

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SmartSky was incorporated in 2011.

Stone takes primary responsibility as the new company’s president and director. The leadership team of Stone and his Jetpool founding partners Legvold and Sameit are rounded out by a fourth partner, Stan Eskridge, who served as Stone’s MBA business school coach, and is the company’s COO and a director.

“Particularly on a plane, everyone wants the same standard of connectivity they have everywhere else,” comments Stone. “The airlines have spent a lot of money to get to 3G, which is state-of-the-art for commercial planes. Unfortunately, that is like accepting a 3G level of performance on your cell phone while the rest of the world is becoming a 4G system.”

The 3G air connectivity standard for most commercial airlines leads to problems with speed and bandwidth, a function of the system which uses older technology or satellites in space.

“This is not an easy market to enter; there is so much noise in the market,” Stone points out. “We were able to acquire some patents and work on a ‘secret sauce’ that will allow us to offer a viable solution.”

The company’s initial plan was to offer 4G connectivity first to business aviation and later to commercial airlines, but, Stone says, “The airlines came to us and asked us to get to them sooner. We’re now involved in discussions with leading commercial airlines.

“The reason for the intense interest is clear—with the 4G connectivity experience, SmartSky will offer 10 times better than what you would get today,” continues Stone. “It’s the same as you would get in your home or office.

You’ll be able to make video conference calls, download documents and watch movies.”

With its launch, SmartSky will be the first company in the U.S. that will have this combination of high bandwidth and low latency—or delay—for connectivity in the sky, says Stone.

“With its launch, SmartSky will be the first company in the U.S. that will have this combination of high bandwidth and low latency—or delay—for connectivity in the sky.” cellular industry association, and a mentor.

We feel fortunate that he was interested in getting involved in our new venture.

“Haynes brought in other world-class experts, including former FCC Chairman Reed Hundt, to help us with regulatory strategy. We needed a view of where the world is headed and so we added two Intel Corp. board members.”

SmartSky also needed to line up partners. It worked with Textron Aviation (owner of iconic brands Cessna and Hawker Beechcraft), Duncan Aviation, and DAC International as partners to help with the certification and installation of hardware, Satcom Direct as a subscription and customer support partner, and Harris Corporation as a radio development partner.

“We decided to keep our launch of the business under wraps until we could check the boxes on all the major risk items,” says Stone.

“We made our first public announcement at beginning of October after working with our partners for more than a year, and working on the business for more than three years.”

Cost for SmartSky’s new service will be comparable to its main competitor’s cost, Stone says, and likely to be embraced by potential customers, hungry for some new options in air travel telecommunications.

Potential competitor AT&T backed out of entering the air-to-ground telecommunications field in April, based on its decision to focus on other core parts of its business.

“We have this unique vantage point. The vision of the company is to transform aviation through disruptive communication,” says Stone. “We can give customers something they desperately need and keep innovating so we won’t be disrupted ourselves.”

SmartSky’s closest competitor Gogo has 2,500 subscribers, using just 4 MHz of bandwidth. In contrast, SmartSky will access 60 MHz of spectrum and a huge, patented 4G pipeline, boasts Stone.

“The potential market is huge—there are about 12,000 business jets in commercial aviation so there is plenty of untapped market,” says Stone.

Business growth is good at Jetpool and expected to be in demand at SmartSky. Legvold attributes their business success to “finding the right people to grow the company.”

“As an entrepreneur, it never seems as fast as you want it to go, but what we’ve accomplished over the past few years is extraordinary,” reflects Legvold.

“Our growth is also a story of embracing local entrepreneurial ventures,” adds Stone.

“If you start one business, you are more likely to start another.

“And, if our business plan goes well, we may be the next Fortune 500 company.”

Carol Gifford is a Greater Charlotte Biz freelance writer.

Some images provided by the company.

Jetpool, L.L.C. 4690 First Flight Drive Charlotte, N.C. 28208 Phone: 888-537-1392; 704-359-4674 Principals: Ryan M. Stone, Chairman and Cofounder (Jetpool), President (SmartSky); Eric L. Legvold, CEO and Cofounder (Jetpool); Paul C. Sameit, CFO (Jetpool) Established: 2004 Employees: 30 Business: Provides private air travel domestically and worldwide, private jet aircraft management, on-demand charter, shares ownership, and a range of complementary services. www.flyjetpool.com SmartSky Networks, LLC Phone: 800-660-9982 Established: 2011 Launch: Beta customer trial launch of airto-ground network in late 2015, followed by national commercial launch in 2016 Business: Airborne 4G LTE-based network by using 60 MHz of spectrum for Air-ToGround (ATG) data communications in system hardware design that can work at multiple frequencies. www.smartskynetworks.com

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Bill Strickland Owner-Operator The Goddard School Fort Mill, S.C.

december 2014 | greatercharlottebiz.com

Amy Strickland Owner-Operator The Goddard School Rock Hill, S.C.

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Introduction to the School

school

Fort Mill, S.C.

house rocks!

T

he cost of day care now rivals the price tag for college tuition in some parts of the U.S., according to a recent Child Care Aware of America report. Day care expenses are overshadowing the amount a family spends on housing, food and transportation.

The eye-popping figures include $16,549, which is how much parents had to pay per year on average for infant day care in Massachusetts in 2013, according to the report. Or $12,280, which was the price tag for a year of day care for a 4-year-old in New York.

In fact, the average annual cost for infant day care was higher than a year’s tuition at a four-year public college in 30 states and the District of Columbia.

For parents of two children, full time day care is the highest single household expense in the Northeast, Midwest and South.

And the trend of increasing cost and increasing importance is only escalating. As the report points out, “The economic recovery will greatly benefit the day care industry. As parents and guardians, particularly females, rejoin the workforce, demand for day care services will grow. Additionally, expected increases in disposable income will allow families to spend more on child care, including high-value services such as early education programs.”

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32

“MANY PEOPLE, INCLUDING SOME UNIVERSITIES WITH EDUCATION PROGRAMS, BELIEVE THAT EARLY CHILDHOOD EDUCATION BEGINS LATER IN LIFE AT 3 YEARS OF AGE. WE DON’T AGREE WITH THAT, AND THERE’S A LOT OF SCIENCE BEHIND THE IDEA OF HAVING CHILDREN ENGAGED FROM BIRTH. AS A RESULT, WE ALSO BELIEVE THAT HAVING RESOURCES IN THE CLASSROOM—TECHNOLOGICAL AND TRADITIONAL RESOURCES IN THE CLASSROOM—IS VERY IMPORTANT.”

december 2014 | greatercharlottebiz.com

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21st Century Skills

Few people are more familiar with the impact of an early and high quality preschool education than Bill and Amy Strickland, owner-operators of two locations of The Goddard School. The pair, hailing from the Southeast themselves, opened their first private preschool in Fort Mill in 2009, and a second in Rock Hill in 2013. At present, there are 10 Goddard School franchises throughout the greater Charlotte region.

“Goddard Systems, Inc. is the franchisor,” explains Bill Strickland, “and the interesting thing is, the guy who started the company— Tony Martino—was the same one that started Maaco.”

Anthony A. Martino, a well known and celebrated guru in the franchising world, took companies from the ground up and made them national brands. He was the force behind the Aamco (an acronym of his initials) Transmissions enterprise which he started up and sold, and subsequently Maaco Enterprises which he built into a 450-franchise collision repair and auto painting retail network.

Along the way he developed a franchise of tune-up shops he sold to Meineke, and also the early development child care franchise called The Goddard School.

The Goddard School concept came about in 1988, when Martino was approached by a former associate with an idea for providing upscale child care with degreed teachers at every level, he thought it could and should be duplicated. Based on an educational philosophy that emphasizes nurturing the

whole child, the Goddard School focuses on emotional, social, intellectual and physical development as well as standard educational goals for children six weeks to six years.

Today, the franchise has grown to over 400 child care centers with more than 50,000 students in 35 states. It has been ranked the No. 1 childcare franchise for the last 13 years

by Entrepreneur magazine, and in the Top 200 Franchise Systems (worldwide sales) by Franchise Times for the eighth year.

The Goddard School Attraction “The Goddard Schools rely on the franchise model of offering a nurturing environment, advocating genuine learning, and collaboration with parents to help children reach their fullest potential,” says Bill. You can walk into any Goddard School and feel the uncommon level of quality, value and education—consistently.

“We’re both owner-operators of the Rock Hill and Fort Mill schools. I think what makes us work so well together is that we have complementary skills. My background is more in technology and business and consulting, while Amy’s is in retail, education, human resources and sales. As a result, we perform alternate but complementary functions.”

The couple began their journey toward becoming Goddard School franchisees in an interesting way. When first married, the Stricklands moved around the country and the world, living in places such as Atlanta, Singapore, Washington, D.C., and Cleveland.

Having three daughters with Amy as a

stay-at-home mom, the couple was always finding new pediatricians, orthodontists, and other care providers when they moved… including preschools.

“When we moved to a suburb just outside of Cleveland, I did what I always did and asked around for preschool recommendations,” says Amy. “Where do you hear good things, where do people seem happy? And Goddard Schools kept coming up. So I visited—just as parents visit our schools to see if we are the right fit for their families—and I just fell in love with it.”

Because the couple’s daughter was attending a Goddard School at the time, and because all Goddard Schools require on-site ownership, Amy was able to get to know the owner of her daughter’s school, learning about the challenges and rewards of franchise ownership in the process.

At the same time, Bill was getting tired of getting on an airplane every week for his consulting work, and was receptive to a small business opportunity. Together, the Stricklands found the Goddard School concept so compelling, that they decided to try it themselves as a franchisee.

“Ohio wasn’t home for us,” comments Amy. “The Southeast is more our home; we have family down here. So, we scouted a lot of locations and decided on Fort Mill. We opened our first location in January of 2009, and then expanded to a second location in Rock Hill in January of 2013.”

Bill adds, “One of the reasons we decided on the Charlotte area is because my background is in financial services consulting, so the thinking

was that I could keep doing that while she was setting up and running the school. I did continue doing that for a few years, but now with two schools, I’m plenty busy.”

“Charlotte offers so much in the way of infrastructure, and the Fort Mill and Rock Hill areas are growing like weeds,” he continues.

“Also, the reputation of the public schools in Fort Mill and Rock Hill is tremendous, and the Carolinas are a very pro-business environment.”

“I would also add that, in the greater Charlotte area, you’re a day trip to the beach or a day trip to the Great Smokey Mountains, you can easily get down to Savannah or Charleston or Atlanta, and the whole region has such a rich history,“ says Amy. “Also, the international airport is perfect for when you want to fly to Europe or the Bahamas. Climate is a big one too…here, you get a little bit of everything.”

Brain-based Learning “My primary focus is sales and marketing— to keep the schools full, to reach out to the community, and to set the culture for the school,” explains Amy. “I also do classroom observations. I’m heavily involved with recruiting and screening new teacher candidates, and I handle

PRESIDENT OBAMA’S NEW GOAL OF ENROLLING 6 MILLION CHILDREN IN HIGH-QUALITY PRESCHOOLS BY THE END OF THE DECADE INCLUDES 3-YEAR-OLDS, IN ADDITION TO THE 4-YEAR-OLDS WHO ARE PART OF HIS EARLIER PRESCHOOL FOR ALL INITIATIVE: “IF WE MAKE HIGH-QUALITY PRESCHOOL AVAILABLE TO EVERY CHILD, NOT ONLY WILL WE GIVE OUR KIDS A SAFE PLACE TO LEARN AND GROW WHILE THEIR PARENTS GO TO WORK; WE’LL GIVE THEM THE START THAT THEY NEED TO SUCCEED IN SCHOOL, AND EARN HIGHER WAGES, AND FORM MORE STABLE FAMILIES OF THEIR OWN.”

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Robotics at The Goddard School

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Franchise Units: Over 400 in 35 states Franchise Fee: $135,000 Min. Investment: $704,700 - $880,000 Min. Cash: $150,000 EBITDA (2013): $250,000+ per unit

many of your typical HR issues. Bill’s approach is a little bit different.”

“My goal is to get the message out and craft the brand,” contributes Bill, “to keep reinforcing the message of education, to keep setting a higher standard for what we’re all about. I would say each school has a mission, and I’m very proud that ours is all about educational excellence—about preparing each and every child for kindergarten while becoming become independent, enthusiastic learners. In fact, lifelong learners.”

Amy explains, “Goddard’s educational philosophy is brain-based, which is learn through play. The way that I share that with families is, let’s say you’re working on letter formation.

You could give a child a pencil and a piece of paper and have him or her practice writing the letter 25 times, which is not very fun.

“A more fun approach would be to take a cookie sheet and pour on a couple tablespoons of kosher salt and then have the child draw the letter in the salt with a finger. The, you shake it up or turn it and have the child repeat the exercise. You’re reinforcing the same skill, but one feels like fun and one feels like work. Play with purpose is one way I like to frame things.”

The word “preschool” means a lot of things to different people as it is often used interchangeably with “child development center” and “daycare.” The Strickland’s approach through their Goddard Schools, however, is different. The Goddard School educates children as young as seven or eight weeks old with the concept that learning begins at birth.

“Our ultimate goal for any of our learners is successful entry into any public or private kindergarten program,” explains Amy. “We use an overall approach in building skill sets, and that includes cognitive, social/emotional, gross motor skills, fine motor skills…those are all puzzle pieces that are necessary for a child to have a successful year in kindergarten.

“So, that doesn’t start at three years old… learning begins at birth. That’s why we write lesson plans in our infant classrooms. We’re trying to set up activities that foster the development of certain skills.”

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Higher Standards for Higher Learning “One of the main things that sets our schools apart,” Amy continues, “is the education level of our teachers. All of our teachers are degreed, something that isn’t common in many childcare centers. Early childhood education is all of the learning, both formal and informal, that takes place before kindergarten.

“Many people, including some universities

“RESEARCH SHOWS THAT IF YOU DON’T GIVE KIDS A GOOD START, THEY TEND TO FALL BEHIND SOONER RATHER THAN LATER, AND IN SOME CASES, THEY MAY NEVER CATCH UP. THE LATER YOU WAIT, THE HARDER IT IS FOR THOSE KIDS TO GET BACK ON TRACK, AND THIS CAN GO ON TO AFFECT THEIR ENTIRE LIVES.”

with education programs, believe that early childhood education begins later in life at 3 years of age. We don’t agree with that, and there’s a lot of science behind the idea of having children engaged from birth. As a result, we also believe that having resources in the classroom—technological and traditional resources in the classroom—is very important.”

“Here, our teachers are working, teaching, educating each child, not just watching them,” adds Bill. “We set out at the beginning to say that we’re not going to be a daycare or a typical childcare center. We’re a preschool, and even at infant level, as Amy said, learning begins at birth.

“Research shows that if you don’t give kids a good start, they tend to fall behind sooner rather than later, and in some cases, they may never catch up. The later you wait, the harder it is for those kids to get back on track, and this can go on to affect their entire lives.”

Although Goddard Systems provides franchisees with a multitude of educational resources, Bill and Amy have found that, because many of their students were coming from homes where learning was already a part of everyday life, they needed to raise the bar. In fact, some of the local schools are taking note as graduates of Goddard Schools often crave even more education and are surpassing their peers

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ONLINE or PRINT?

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ONLINE NOW?”

Print advertising still plays an important role in the customer journey.

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MEDIA MOST LIKELY TO SPARK NEW IDEAS (US ADULTS)

Print Magazines

Online

89%

r

Social Media

81%

Print Magazines

2014

72%

Mobile Apps

Online

And consumers are actually most receptive to print advertising in magazines.

77%

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Mobile Apps

Social Media

ADVERTISING RECEPTIVITY INDEX (US ADULTS)

116 96 95

Print Magazines TV

And consumers are actually most receptive to print advertising in magazines.

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TV

3.7x

96 Ads in magazines are more likely to be noted than online ads.

95 (Attention level ratings - US Adults)

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And consumers are actually most receptive to print advertising in magazines.Available for an appointment: Mon-Thu 7-7 • Fri 9-2

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december 2014 | greatercharlottebiz.com

upon entering the public school system.

“One of our philosophies is to adhere to continuous improvement. We set the bar in one place, surpass it, and then move it again,” explains Bill. “We also revamped our educational processes to embrace 21st century skills, an initiative that looks to go beyond just reading, writing and arithmetic to additionally teach critical thinking skills, creativity, communication and collaboration.

“An organization that supports 21st Century Learning (Washington, D.C.-based P21.org) visited our schools in 2012 and recognized our schools as being Exemplar in 21st Century Skills learning, one of 20 in the United States.”

Bill continues, “Today, businesses are saying to the educational community, ‘We need people who can think, not just memorize.’ When you look at it, all the information you need is available at your fingertips on the Internet these days. But, now that you have information, can you solve problems with it?

“We’ve changed how we teach, andCharlotte then “In the face of global competition, needs to p we started taking it up another notch and port’ with easy access to rail, interstate highways and t rolledwith out aurgency.

S.T.E.M.Ifprogram on to compete, s we don’tthat havefocuses a strategy science, technology, engineering and math. ~Chase Saunders, organ We have kids building robots, kids as young as three doing computer programming.”

Additionally, the Strickland’s Goddard Schools use iPads, interactive whiteboards, and other technology in the classroom in order to prepare students for the digital landscape that is unfolding before them.

“This is where Bill and I bump heads a little bit,” laughs Amy, “because I’m more oldschool. I certainly recognize the value of technology, but as we often say, ‘Parents are teachers too.’ We encourage our parents to unplug from the technology for a while.

“While you’re walking the dog with your child, encourage them to find a license plate from another state or one with a certain letter or number. Identify living and non-living things.

Challenge your child to find things that come in pairs in the bedroom when tucking him or her in at night. So, yes, technology is important, but so is person-to-person interaction.”

CONCLUSION un about print: un facts facts about print: facts about print: FunFun facts about print: fenix fotography

THE BEST APPROACH EMPLOYS PRINT AND ONLINE MEDIA STRATEGICALLY THROUGHOUT THE CUSTOMER JOURNEY, FIRST TO AWAKEN INTEREST AND INSPIRE CUSTOMERS, AND THEN TO MOVE THEM TOWARD A PURCHASE.

What marketing expert first

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ISN’T COMMON IN MANY CHILDCARE CENTERS. EARLY New trend: Book-a-zines rule the Newsstands and are the ultimate in print niche marketing.

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Without’s Gluten-Free are the ultimate in print niche Examples are the ultimate in print niche marketing. Examples ALL OF THE LEARNING, BOTH Holiday Guide, USA Today Fresh Women’s include Living Without’s Gluten-Free Holiday Living Without’s Gluten-Free Holiday Health Guide and USA Today Auto Guide.

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Bills adds with a smile, “And that’s one of the strengths that Amy and I have—we push MONEY IN ONLINE NOW?” each other and challenge each other, but that’s Charlotte-Mecklenburg Police Department • Proffitt Family Cattle Company • F.D.Y., Inc. • Harper Corporation of America • how innovation and achievement come about.

TPM of Charlotte, LLC • Mantissa Corporation • NC Music Factory • Your Event Source, LLC • AdvanaClean Systems, Inc. • Study the problem and negotiate. And that is University Charlotte Campus • Ethel Harris, Inc. • Charlotte Latin School • Nexcommunications, Inc. dba d online; as a result, Print advertising still plays an important roleGardner-Webb in the customer journey.

Nexcom • Metrolina Builders, Inc. • KS Audio Video, Inc. • Cook Truck Equipment • Birds-I-View • Swiss Farms • Chapter IV nal forms of advertising, one of the many reasons we’re successful.

Investors, LLC • NewDominion Bank • Carolina Sorting Arms • Blue Cross and Blue Shield of NC • Express Employment “Our mission is educational excellence, Professionals • Archadeck of Charlotte • Siemens Energy, Inc. Charlotte Energy Hub • Marand Builders, Inc. • DW2, Inc. dba and through our two Goddard MEDIA MOST LIKELY TO SPARKSchools, NEW IDEAS (US ADULTS) PROSHRED Charlotte • Mellow Mushroom • FireFold • Mooresville Ice Cream Company, LLC • UNC Charlotte Athletic ULTS we’re proud to combine Sources: our skills to comSources: Department • Northeastern University Charlotte • Garfinkel Immigration Law Firm • ettain group, inc. • Hood Hargett eMarketer, 2014; Software Information Industry Association, Association of Businessof Media and Media Information, 2013; Connected Consumers,Consumers, Media, 2014; eMarketer, 2014; and Software and Information Industry Association, 2013; Association Business and Information, 2013; Connected IPC Media, 2014; Breakfast Club, LLC2013; • StayConnect, LLC • Wake Forest University Charlotte Center • Morton’s/Charlotte LLC IPC • iMapCharlotte plete the mission.”

Experian Experian Marketing Services, Services, Simmons, Simmons, 2012; MRI, 2012;MRI, Hanley Wood, 2013; Nielsen, 2012 Marketing 2012; 2012; Hanley Wood, 2013; Nielsen, 2012 89% 81%

New trend: Book-a-zines rule the Newsstands and New trend: Book-a-zines rule the Newsstands and are the ultimate in print niche marketing.

Examples are the ultimate in print niche marketing.

Examples include Living Without’s Gluten-Free Holiday include Living Without’s Holiday Guide, USA Today Fresh Gluten-Free Women’s Health Guide • Morgan Chair, Fresh Inc. • Suite 1000 • Deloitte & Touche Health LLP • Clear Channel Broadcasting, Inc. • Tropical Nut & Fruit Co. • Guide, USA Today Women’s Guide Andrew Rusnak is a Greater Charlotte Biz freelance writer.

Print Magazines Online What’s your Story? and USA Today Auto Guide.

Stafford Consulting Engineers, Inc. • Records Reduction, Inc. • Knowmad Technologies • Arts & Science Council • All About Created by Wray Ward | wrayward.com Created by Wray Ward | wrayward.com 2014Some images provided by the company. and USA Today the PipesAuto Plumbing, Guide.

Inc. • Tattoo Projects, LLC • H.E.A.T. Pro Fitness • A Love for the Game • Greenspring Energy •

Other

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Committee for Charlotte 2012, Inc. • Larner’s Office Furniture • Birdsong Gregory, LLC • Anvil Prototype & Design • The SocialCompany, Media Inc. • Handshaw, Inc. • Belk, Inc. • CHS Carolinas Corporate Health & Wellness • Hotel Sierra Charlotte Baldwin Center City/Hyatt • Killingsworth Environmental of the Carolinas, LLC • Simile Imaging Solutions, Inc. • Presbyterian Healthcare • BizED 2011-2012 • Business Wise, Inc. • American Red Cross Carolina Piedmont Region • United Sleep CTR of Rock Hill, LLC dba Medicine, L.L.C. • Potter & Company, P.A. • The Shaw Group Inc. (Power Group Headquarters) • Hensley Fontana Public The Goddard School Relations & Marketing • Medallion Athletic Products, Inc. • The Darton Group, LLC • Henricks Corporate Training & 415 Clouds Way And consumers are actually most receptiveDevelopment, to print Inc. • Organic Plant Health, Inc. • Microsoft Corporation Charlotte Campus • Spivey Construction Company, Inc. advertising in magazines.

Rock Hill, S.C. 29732 • Carolina Urology Partners, PLLC • BLUERIDGE Analytics, Inc. • Cardno TBE • Paddock Pool Equipment Company, Inc. • Phone: 803-328-0101 Charlotte Regional Visitors Authority • Eastover Investment Advisors, LLC • Livingston & Haven, LLC • Waypoint Solutions 32% ADVERTISING CTR of Fort Mill, LLC dba RECEPTIVITY INDEX (US ADULTS) Group, LLC • Hankins & Whittington Funeral Services • Ameritech Die & Mold, Inc. • The Duke Energy Foundation • Skookum 18% Digital Works • Carolina Digestive Health Associates, P.A. • Tobin Starr + Partners, PPLC • Data Recovery Group • Blue Cross The Goddard School 18% and Blue Shield of North Carolina • Red Moon Marketing, LLC • NouvEON • Van Hoy, Reutlinger; Adams & Dunn, PLLC • 868 Gold Hill Road Print Magazines Integra Staffi116 ng, LLC • AAA Carolinas • Keffer Management Company, LLC • Verian Technologies, LLC • Hampton Inn & Suites 18% Fort Mill, S.C. 29715 SouthPark • 96 Charlotte Speech & Hearing Center, Inc. • Scholz and Associates, Inc. • Time Warner Cable Business Class TV 16% Phone: 803-802-2112 Carolinas • Hilton Charlotte Center City • Anderson LeNeave & Co. • Superior School of Real Estate, Inc. • Air Tight Mechanical, Internet 95 Principals: Bill and Amy Strickland, Owner12% Inc. • Muzak Holdings LLC • Jerald Melberg Gallery, Inc. • University City Partners, Inc. The Ben Craig Center • David R. Operators Badger, P.A. • Addison Whitney LLC • Charlotte Motor Speedway, LLC • Enventys, LLC • MidasNation ™ • Harris 11% Employees: 48 Communications • Engineering Sales Associates of the Southeast, Inc. • Fifth Third Bank, N.A. • Mountain Khakis, LLC • 9% In Business: 2009 (Fort Mill); 2013 (Rock Hill) Wishart, Norris, Henninger & Pittman, P.A. • The Performance Group, Ltd. • Avantgarde Translations, Inc. • Melange Health Business: Locally owned franchises of 8% Solutions L.L.C. • Carolina Panthers • Sports Media Challenge Buzz Manager, Inc. • Charlotte Arrangements • The Olde Ads in magazines are national preschool Mecklenburg Brewery LLC • Barefoot and Company • NASCAR Hall of Fame • BizEd 2010-2011 • File Vault, LLC • Living 7% more likely to be noted than online ads. education, early childhood Health Solutions, LLC • Griffin Home Health Care, Inc. • Hendrick Automotive Group • Technekes, LLC • Bruce Julian (Attention level ratings - US Well Adults) s: 5% development school model.

Clothier • Charles Luck Stone Center • Rose Chauffeured Transportation, Ltd. • Bank of America • James, McElroy & Diehl, s: 2014; www.goddardschool.com P.A.Association, • Elliott Davis, PLLC • Tri/Meck Inc. • HF Financial • Iverify.us Inc. •Media Hickory Construction Company • UNCC eter, Software and Information Industry 2013;Mechanical, Association of Business and Information, 36%

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We want to learn about your business!

37

704-676-5850 x 102 | John Galles

2013; Connec eter, 2014; Software andSimmons, Information Industry Association, of Business an Marketing Services, 2012; MRI, 2012; Hanley 2013; Wood,Association 2013; Nielsen, 2012 Media and Information, 2013; Connec an Marketing Services, Simmons, 2012; MRI, 2012; Hanley Wood, 2013; Nielsen, 2012 greatercharlottebiz.com | december 2014 d by Wray Ward | wrayward.com

by zenda douglas

Legacy

Peace Of

P 38

is

Mind

H.B. Cantrell Serves the Community Faithfully

lanning around life’s unknowns can be difficult to explain and do and, often, even to think about. But a single life event such as an accident, storm, disability, or death can suddenly change the direction of an individual’s, family’s, or company’s path.

Father-and-son team Henry B. Cantrell, CLU and John F. Cantrell, CIC, CEO and president, respectively, and coowners of H. B. Cantrell & Co., spend much of their time helping people protect themselves, their loved ones, and/ or their businesses and property against the unexpected.

“There’s no problem until there’s a problem,” says Henry. “We help potential clients understand the damage they may sustain if a certain occurrence takes place with life, property or business. When there is a problem, we want to make sure the solutions are there.”

(l to r) John F. Cantrell President Henry B. Cantrell CEO H.B. Cantrell & Co.

39

safe “The selection of insurance carrier is very important.

Everyone wants the most competitive price and everyone, after the fact, wants the best possible outcome.”

40

december 2014 | greatercharlottebiz.com

“We take a complicated subject and make it easier for people to understand,” continues John. “While clients may not want to talk about such things, we can help them contemplate unforeseen circumstances and navigate through what is needed, presenting solutions that make sense—making it more palatable.”

On the other side of an incident causing loss or damage, Cantrell is there to help clients through a bad situation and make it less burdensome by the protections that were put in place. “Our product for over 35 years, now, is peace of mind,” says John.

Comprehensive Coverage Cantrell Insurance is regarded as an “all lines insurance broker,” which means that they work with a broad range of insurance products in the areas of auto, home, business, life and disability. Each partner is fully licensed for both life and property/casualty insurances.

“Our philosophy is to find the best product for the client and then service that client for the long term,” says John. One of the ways they do that is by working with a large and varied list of reputable insurance

insurance

peace of mind

carriers that consistently offer competitive rates and excellent claims response.

“The selection of insurance carrier is very important,” comments Henry. “Everyone wants the most competitive price and everyone, after the fact, wants the best possible outcome. We want to provide the personal aspect to the client while dealing with the carrier. I am available personally 24/7 with the exception of when I am asleep,” laughs Henry. “I want to know if there are problems.”

Henry balks at the idea of “selling” insurance. “We do not sell—I am not a salesman,” he states emphatically.

“I want to evaluate and show you where you’re at and see if I can be of assistance. I always come away feeling good if I’ve made you aware and educated you to the risks and the available protection.”

Most clients have a need for more than one type of insurance, according to Henry. “I work to build a relationship so that when a client thinks about insurance, they think about us.”

Sixty-five to 70 percent of the company’s book of business is in property/casualty. Commercial versus

personal business is about 50/50. “This diversification is intentional and is what helped us through the economic downturn,” says Henry.

Cross-media study shows print advertising has highest ROI

“Being a part of the community is an extension of who we are; what our business is.”

The company is not normally involved in group medical and employee benefit plans.

“For my first 10 years, 30 percent of my income came from medical,” continues Henry, “but then the market changed and the customer was not happy with what was occurring. I can’t be dealing with a product where the customer is not happy, so I redirected into other areas. I didn’t want to be the communicator that gets killed.”

Cantrell focuses on the Charlotte and surrounding area, but handles business as their clients’ needs demand in other areas. “Working with our clients is more about relationships than geography,” explains John. “If clients have business in other areas, we will follow that.”

The business started out in the South Park area of Charlotte and then was moved to East Seventh Street just a few doors away from where they are now. The purchase of an insurance company named Bowers changed the dynamics of the company and doubled it in size. Outgrowing their space, the company moved into its current offices in 1998.

While every advertising campaign should feature a mix of media, magazines provide the highest return on investment.

{ ROI score Across advertising campaigns } INDEX

140 120

120

130 110 90

100 80

60

60 40 20 0

Source: www.inma.org

ROI – gross media spend compared to additional sales during campaign

Magazine advertisements produce the highest ROI of all media channels

Hampton Inn & Suites SouthPark at Phillips Place

Assessing Risk Carefully Consulting over the unknown can be risky business. And in an industry where competitive pricing is strongly demanded, it is all the more challenging to manage risks effectively.

“It is important to evaluate risk carefully,” says Henry. “In any situation, we look at

SouthPark’s most prestigious hotel. Surrounded by retail shopping, dining, and entertainment venues. Features 124 beautifully decorated guest rooms and suites. We offer special Bridal, Shopping, and Couple’s Night Out Packages. Select rooms feature balconies, patios, mini refrigerators, microwaves, whirpools, and garden bathtubs. Two room suites feature full refrigerators, microwaves, sofa, recliner, end tables, and select suites have a whirlpool spa and replace.

41 ›704.319.5700 www.hamptonsouthpark.com

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greatercharlottebiz.com | december 2014

Personal Touch

“You can’t really commoditize it—you can’t take away the fact that people are emotionally tied to their homes and businesses. When something goes wrong, you want to sit down with someone you know and work through it. There is still a place at the table for the local guy who maintains a relationship.”

42

the history of claims, accidents, behavior, activities and habits.”

“We are taking great latitude with the carriers,” explains John. “Carriers look at loss ratios. They look at agents based on the business they write and whether or not these agents help them to become profitable. We can write a contract that can cost them a million dollars tomorrow, so they evaluate us based on our ability.”

Cantrell helps their clients identify, measure and reduce risks for their business, their personal property and their lives. In today’s busy world, people don’t necessarily stop and think about things and the risk they may be exposing themselves to.

John explains, “At a recent business insurance review, we discovered that the client had purchased another business and forgotten to call us. It’s important to think about how what you do might impact your level of risk.”

The process for evaluating a person’s or company’s level of risk is called front-end underwriting. The agent attempts to evaluate the situation in areas that the carriers cannot see. This process is largely responsible for the management of risk and the ultimate success of the insurance industry in terms of financial stability and profitability, according to the Cantrells.

Henry and John express frustration over some companies that tend to operate on the back end, totally on price. These companies, they say, sell a lot of low-priced policies to high-risk customers, who often come away underinsured.

“Due to the widespread appeal of these types of companies and their advertising focused on price only, much of the public has begun to see insurance as a commodity rather than a service,” says John. “You can’t really commoditize it—you can’t take away the fact that people are emotionally tied to their homes and businesses. When something goes wrong, you want to sit down with someone you know and work through it,” says John. “There is still a place at the table for the local guy who maintains a relationship.”

“You’re not really giving them the lowest price by giving them the lowest coverage,” adds Henry. “Those limits

december 2014 | greatercharlottebiz.com

are often not sufficient to cover them or another person injured (in the case of an automobile accident). We want to make sure that clients are sufficiently covered. We explain the limits so they can make an educated choice.”

Most of the Cantrells’ clientele are generated by referrals from other personal and commercial business. Proof of insurance is often required by financial lending institutions, state governments, and even discerning customers. Regulation is handled on a state-by-state basis.

Working Faithfully The Cantrells are proud of the long-term status of their employees, and attributes longevity at the company to its philosophy, flexibility and family-friendly orientation. Most their employees have been with them for more than 10 years.

“Most of us spend more time at work than with our family,” says John. “We treat employees like family with flexible working hours and time to do things.”

The company also offers fitness programs and lunch-and-learn sessions on parenting, health, nutrition and other topics. Cantrell offers up an unusual order of priorities for its employees.

“We believe your faith is first; family takes priority over your job; then your job,” says Henry. “The reason is simple. We want employees to work in a moral manner and, for most people, this is guided by their faith, whatever that may be. When people see how you work, they see who you are.”

The company emphasizes teamwork, a concept that they had opportunity to test a number of years ago.

“Dad had double bypass heart surgery,” remembers John. “But the business didn’t miss a beat, the company progressed and he was able to heal. The team effort carried things forward.”

Still, the biggest challenge is regarding staff, according to John. “It takes time to build and train staff. It’s a

complex business and takes time to put the right people together.

Community Roots Henry graduated from East Carolina University in 1965 with a degree in business. After working for a brief period of time with Pure Oil Company, he was drafted into military service where he attended Officer Candidate School and graduated as a distinguished cadet. He ended up serving in Germany as a company commander and was awarded the Army Commendation Medal for his service.

“We take a complicated subject and make it easier for people to understand.”

Returning to the company, now Union 76, he moved between Richmond, Raleigh and Charlotte. While in Raleigh, he realized that the corporate life was not a good fit.

He entered the insurance business in 1973 with Travelers Insurance Company. “It was basically a three-year salaried training program.

They provided zero leads; everything I had was what I could come up, with but they gave me facilities and a cushion to get started.”

From there Henry started his own company. “I wanted to have a job that would allow me to be of service and allow me to be rewarded based on my ability to be of service to people. I’ve had a philosophy of customer service and being empathetic with whom you’re dealing with.”

In a deliberate move, Henry let go of the businesses in 1985, entering into a threeyear employment contract with what was then First Union National Bank.

“I did that for two reasons. It gave me opportunity to receive a payment that would provide some security for the future and also to see how the big boys did it. What I came away is that they didn’t do it as good as I was already doing it. So after three years and two months I returned to being an independent broker.”

John joined his Dad in the business after graduating from East Carolina University in 1992 with a degree in finance.

Serious about their role in the community, the Cantrells have a long family history of civic involvement including Rotary Club and the Charlotte Chamber of Commerce.

John, an Eagle Scout himself, is an assistant scout master at Troop 11 meeting at Providence United Methodist Church.

The pair are active at Covenant Presbyterian Church and offer support for breast and brain cancer research, Samaritan’s Feet, and the YMCA. John enjoys athletics and has completed several triathlons including an Ironman Triathalon. “Being a part of the community is an extension of who we are; what our business is,” says John.

Henry lives in Charlotte with his wife.

His younger son is a 19-year veteran of the Charlotte Mecklenburg Police Department.

John lives with his wife, Ashley, who is a neo-natal intensive care nurse, and his three children, ages 15, 14, and 12.

Henry and John have an obvious bond and rapport—they enjoy and appreciate the opportunity to work together. “We get to see each other every day and talk whenever we can,” says Henry. “I don’t try to ‘big-dog’ and I don’t dictate. If you look on my card, you don’t see a title. That’s the way we manage the whole office.”

“I feel blessed,” says John. “I like that there is opportunity to provide a legacy to my children in that they could have a legitimate place to make a living. Plus, I get to go home every night. Lots of people have to get on an airplane and stay in a hotel to have a

successful career in sales. I have been able to participate in my kids’ lives. It’s been good.”

Asked about potential for retirement, Henry states that he has begun to work fewer days and hours but is still quite active in the business. “I want to deal with those customers who want to deal with me for as long as I am able,” he says, his commitment and determination apparent.

Zenda Douglas is a Greater Charlotte Biz freelance writer.

H. B. Cantrell & Co. 1501 East 7th Street Charlotte, N. C. 28204 Phone: 704-954-9000 Principals: Henry B. Cantrell, CLU, CEO; John F. Cantrell, CIC, President; Co-owners Established: 1976 Employees: 12 Business: Independent insurance agency servicing the Carolinas offering personal insurance coverages including home, life and vehicle; benefits policies for disability and life insurance; and commercial insurance coverages including business owners packages, general liability, commercial auto and workers compensation. www.hbcantrell.com

?

43

704-540-2255

www.ballantynedentistry.com greatercharlottebiz.com | december 2014

[publisher’spost]

OF INTEREST: Promoting Thought Leadership Across the Carolinas

ADVANCED/ADDITIVE MANUFACTURING CAN RESCUE THE MIDDLE CLASS

O

John P. Galles Publisher

“In every society, manufacturing builds the lower middle class. If you give up on manufacturing, you end up with the haves and have-nots and you get social polarization.

The whole lower middle class sinks.”

CPCC Apprenticeship 2000

44

ne of the most clairvoyant articles I have gleaned in the past month was an interview in Wired magazine with a man named Vaclav Smil. Bill Gates has said of Smil: “There is no author whose books I look forward to more than Vaclav Smil.” High praise indeed.

Smil is a Distinguished Professor Emeritus at the University of Manitoba and is a specialist, a polymath more accurately, on the world’s biggest challenges including the future of energy, food production and manufacturing. Having written three dozen data-heavy books, he has expertise in many areas and a remarkable way of framing basic facts.

In one of those books, Made in the USA, Smil powerfully rebuts the notion that manufacturing is a relic of predigital history and that the loss of American manufacturing is a desirable evolutionary step toward a pure service economy. Smil argues that no advanced economy can prosper without a strong, innovative manufacturing sector and the jobs it creates.

According to Smil, the history of manufacturing in America is a story of nation-building. Manufacturing became a fundamental force behind America’s economic, strategic and social dominance.

Smil believes that innovation is tied to the process of making things. He fears for the future of the U.S. given the demise of American manufacturing in recent years, believing it will doom the country intellectually and creatively: “In every society, manufacturing builds the lower middle class. If you give up on manufacturing, you end up with the haves and have-nots and you get social polarization.

The whole lower middle class sinks.”

Restoring manufacturing, Smil argues, would mean training Americans again to build things. He points out that only two countries, Germany and Switzerland, have done this well, principally because they have apprenticeship programs and younger trainees learn from the more senior. Smil cites the production of BMWs as an example; we can illustrate with Siemens here in Charlotte and BMWs in Greer, S.C. While manufacturing jobs in the U.S. have suffered massive casualties over the last two decades, unless you’ve been living under a

december 2014 | greatercharlottebiz.com

rock, you’ve heard the buzzwords “additive manufacturing,” also known as “3D manufacturing” bandied about as the next big thing.

Using materials like titanium, stainless steel, and everyday plastic to make everything from cars to meat (yes, food) to guns (yes, guns), a 3D printing machine can manufacture the most intricate of designs and personalize product design in unprecedented ways. Already, successful implementation includes custom-made medical implants, prosthetics, and even organs.

The technology, which involves layering three-dimensional materials on top of one another and adhering them together, has been around for more than three decades. Chuck Hull was one of the first developers of the technology used and also the file format for translating computer-aided design software into 3D-printing-friendly modules. Hull founded and is presently CTO of 3D Systems, headquartered in Rock Hill. We are privileged this month to profile Avi Reichental, CEO of 3D Systems, who describes how they have become an industry leader.

Additive manufacturing is presenting new opportunities for innovative companies, much as the digital music revolution empowered startup technology even as legacy firms suffered. Fortunately, the rise of additive manufacturing will also increase the demand for more skilled and better trained workers than ever before.

Combined with the increase in advanced manufacturing (the use of innovative technology to improve products or processes), it is predicted that the demand for highly capable labor force will reach an all-time high.

We are already beginning to see new manufacturing opportunities developing in and returning to the U.S. American workers are perceived to have a strong work ethic, and there is a sensitivity to the training programs necessary to equip the workforce.

Here in the Carolinas, we are fortunate to have Tony Zeiss and Central Piedmont Community College, along with many other technical schools and colleges, that are stepping up and establishing training programs and developing apprenticeships.

CNN has a great videoclip on CPCC Apprenticeship 2000 program, an initiative that equips CPCC students with today’s manufacturing skills, helps them graduate with no debt, and guarantees them a job after graduation. Every student and parent should see this video before they make up their minds about their future education and training.

www.cnn.com/video/data/2.0/video/cnnmoney/2014/11/14/ivory-apprentice.cnnmoney.html 3D or additive manufacturing is predicted to bring advanced manufacturing “hyperlocal,” with a concordant “democratization” of technology, the process by which access to technology rapidly continues to become more accessible to more people.

These are exciting times. We are living in an age of innovation and customization that seems magical, with machines as marvelous as the extraordinary creatures in any Harry Potter movie. We are serving up a future for the next generations that invite creativity and big ideas.

We must adjust our mindsets and prepare our students for a future in manufacturing as a means of support and advancement. And we need to be attentive to and explore developing opportunities in the ever-changing world of technology.

By recognizing and embracing the processes and possibilities brought about by advanced manufacturing and additive manufacturing processes, we can rebuild the middle class and increase our productivity to the benefit of our communities and our nation. In the process, we will open doors to international trade and commerce and business growth that will be the next great economic wave.

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