featuring‌ june/july 2015
South Carolina Department of Commerce South Carolina Ports Authority Spirit Communications York Technical College MSS Solutions
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MAKING ECONOMIC DEVELOPMENT
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featuring… GETS IT!
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Making Economic Development Work!
Bobby Hitt of the S.C. Department of Commerce states it succinctly: “The bottom line is this. We run a customizable state. We look for strong companies, provide them with the resources they need, and let them conduct business as they see fit. We make sure South Carolina is just right for all of our companies, and it works. In South Carolina, business is part of our culture.”
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Propelled by Momentum!
Jim Newsome of the South Carolina Ports Authority knows that the state’s economic development efforts are aggressively growing its port freight base; the momentum generated is creating new opportunities and driving new investments. He agrees with Bobby Hitt: “It’s the Port of Charleston and its system of ports, highways and railroads that become a statement to the world that South Carolina gets it.”
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Relaying Innovative Service Offerings “With all the success that South Carolina is experiencing having recruited many new corporations, such as BMW, Boeing, Mercedes and Volvo,” says Spirit Communications CEO Bob Keane, “it is essential that the communications infrastructure support these and other firms. We deliver on that promise by engineering fast, reliable and secure solutions.”
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One College. Many Opportunities.
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SERVICE OF
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CELEB
York Technical College CEO Greg Rutherford and Marc Tarplee in business services agree there’s been a resurgence in the manufacturing sector: “In the next 15 years, most jobs created will require a two-year degree. Manufacturers are looking for skilled employees; that’s our bread and butter. In addition to creating a skilled workforce, we can leverage our resources to attract companies.”
TIN G
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Building Solutions Together
“Building systems are our business,” says MSS Solutions CEO Hunter Edwards. “We’re driven by our clients’ needs, and we can tailor-fit a solution, whether it’s a new project or an existing building. Our mission is to be the single source provider of comprehensive facility solutions, meaning that our customers have one partner for all of their facility needs.”
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o f i n t e re s t … Retirement Plans: The What, 5 Audited Why, Benefits and Particulars
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The Transatlantic Economy 2015: Why It Matters to the Carolinas
june/july 2015 | greatercharlottebiz.com
You’re Connected on LinkedIn: 37 After Follow-up is Crucial
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publisher’spost Industry 4.0: Foundational Pillars for Future Advances
The new neighbor you already know The Charlotte community has trusted CPCC as a valuable learning partner for more than 50 years. During that time, we’ve provided continuing education classes and custom workforce training to meet the needs of local residents and of employers large and small. As we open our new CPCC Ballantyne Center in July, we look forward to helping you advance your career or strengthen your workforce through our skills-focused, Corporate and Continuing Education courses and certifications. Find out how we plan to be the neighbor you need and deserve. Visit www.cpcc.edu/campuses/ballantyne to learn more or to sign up for our email updates.
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June/July 2015
Volume 16 • Issue 6 Publisher
John Paul Galles x102 jgalles@greatercharlottebiz.com
Associate Publisher/Editor Maryl A. Lane x101 mlane@greatercharlottebiz.com
Ro
Graphic Artist
l l i adK
Susanne Corrado graphics@greatercharlottebiz.com
Account Executives
Gina M. LaRosa x104 704-778-0728 Cell glarosa@greatercharlottebiz.com Nelson E. Sweezy x105 704-778-8866 Cell nsweezy@greatercharlottebiz.com
Business Development Consultant Philip Volponi x107 704-574-0439 Cell pvolponi@greatercharlottebiz.com
Is your message— are your ads—road kill on the digital highway? Are you getting slaughtered in the mass media monetization of the Internet?…Users driving by without even a glance…your message getting wasted without so much as a blink… You’re not alone. ComScore estimates that well over half of all digital ads are never even seen by the user,† run over in the digital flow going elsewhere, becoming part of a vast electronic wasteland. �
If you’re tired of bleeding those precious marketing dollars on the digital highway,
�
If you’re standing at the crossroads of digital, social media and community-branding,
We invite you to consider being where the drivers are…the users’ eyeballs. And that is beside good content. Ditch the click and experience the newer content-metric approach of the Financial Times.‡ ► Don’t find yourself a digital dead-ender. Make sure your message is proximate to good content. ► Make sure you’re armed with alternate routes to get your message out there—including direct-mail print media. ► And take advantage of our resources to help your company with destination content marketing.
You have valuable contributions to make to the community…
4 ComScore estimates a full 54% of display ads are not seen: http://www.comscore.com/Insights/Blog/ViewabilityBenchmarks-Show-Many-Ads-Are-Not-In-View-but-Rates-Vary-by-Publisher ‡ London’s Financial Times is rolling out rates based on time—the number of hours their ads appear in front of readers— rather than impressions: http://adage.com/article/media/digital-advertising-ready-ditch-click/295143/ †
june/july 2015 | greatercharlottebiz.com
Let ou r eleva platform te being you from road kill.
Contributing Writers Zenda Douglas Paul Matthews Pete Prunkl Andrew Rusnak
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• Press releases: editor@greatercharlottebiz.com. • Editorial: mlane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com or sales@greatercharlottebiz.com. • Subscription or change of address: subscriptions@greatercharlottebiz.com. • General: info@greatercharlottebiz.com. © Copyright 2015 by Galles Communications Group, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group, Inc. makes no warranty to the accuracy or reliability of this information. Products named in these pages are trade names or trademarks of their respective companies. Views expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102. Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.
OF INTEREST: Focusing on the Needs of Privately Held Middle-Market Companies
AUDITED RETIREMENT PLANS:
THE WHAT, WHY, BENEFITS AND PARTICULARS As our national and local economies continue to recover and companies add employees, many employers are learning that their retirement plans have grown to a size which requires an audit. To many, this is an unexpected burden and cost. Why does my plan have to be audited? What benefit will I receive from this audit? How do I select an auditor? Do I have to bear this cost? First we need to understand why and when plans are required to be audited. Generally, all funded employee benefit plans are governed by the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). ERISA requires all plans with 100 or more participants as of the beginning of the plan year to engage an independent qualified public accountant to audit the plan. There is an exception for plans that initially exceed the 100-participant threshold, as long as the number of participants stays below 120, it may be exempt from the audit requirement. This can be a tricky situation and you should consult with your plan’s third-party administrator and your auditor for further clarification. As with many things, the devil can be in the details. Who is a plan participant? Many employers would say it is an active employee who is contributing to the plan. Not according to ERISA. A participant is defined as any person eligible to participate in the plan and any terminated employees with remaining account balances in the plan. As an example, as of January 1, 2014, ABC Company has 110 employees, 90 are actively participating in the plan, 20 more are eligible, but have elected to not participate and 20 terminated employees have account balances remaining in the plan. Under ERISA definitions, the plan has 130 participants; therefore, the plan is required to be audited. This definition is important and underscores the importance of assisting terminated employees with moving their account balances out of the plan; ideally by rolling the balances into other qualified plans or individual retirement accounts. So your benefit plan requires an audit. What benefit is there to the plan, your company and the plan participants? ERISA was enacted to protect the interests of workers; the audit requirement is one of the protection mechanisms. The auditor performs procedures to ensure the plan is operating in accordance with laws and regulations as well as requirements of the plan itself. For the plan participants, they gain comfort that the plan is operating as it was designed and that they are receiving the benefits to which they are entitled.
As the plan sponsor, the company has a fiduciary responsibility to the plan participants to oversee plan operations. Any legal violations related to the plan could result in significant penalties to the company. A quality annual audit should give a certain level of comfort to the company that its fiduciary responsibility is being met. Selecting a qualified auditor is another factor of the plan sponsor’s fiduciary responsibility. Too often, however, companies take the quickest or cheapest route available without checking the auditor’s qualifications. A recent report from the Department of Labor found that almost 40 percent of retirement plan audits were deficient. The vast majority of these were performed by auditors with insufficient training or experience in benefit plan auditing. The American Institute of Certified Public Accountants has established the Employee Benefit Plan Audit Quality Center. There are many resources for plan sponsors on their website which include the importance of audit quality, how to evaluate potential auditors and a Request for Proposal template. Those resources can be found on their website at www.aicpa.org/ interestareas/employeebenefitplanauditquality. A quality auditor will not only perform the procedures required by professional standards and ERISA, but they will offer helpful suggestions Employee Benefit Plan for ways to improve the plan and keep the plan Audit Quality sponsor up-to-date on key issues and changes. Center The cost of a quality audit can vary depending upon the complexity of the plan, the condition of the employer’s personnel and payroll records, and the quality of the third party administrator. The majority of employers elect to cover the audit cost; however, the audit is a requirement for the plan and the cost can be covered by the plan under ERISA guidelines. Having a retirement plan audited may seem a daunting task to some and a mere nuisance to others, but regardless, due diligence should be taken in selecting a quality auditor. Failure to do so could mean lost benefits to employees and stiff penalties to employers. Content contributed by GreerWalker LLP, a Charlotte-based accounting and business advisory firm offering assurance, accounting, tax, and consulting services primarily to privately held middle-market companies, their owners, and their executive management teams, as well as a range of consulting services directed to publicly traded companies. Content written by Tony Smith, CPA, Partner. For more information, contact Tony at tony.smith@greerwalker.com or 704-377-0239 or visit www. GreerWalker.com.
Smith
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greatercharlottebiz.com | june/july 2015
OF INTEREST: Positioning Charlotte as a Global Hub of Commerce
THE TRANSATLANTIC ECONOMY 2015: WHY IT MATTERS TO THE CAROLINAS
Guest
Contributor
Dan
Hamilton Sponsored by
T
he United States is currently negotiating a number of “mega-regional” trade agreements with scores of countries around the world. Those agreements could open up significant markets for American companies. Most of Washington’s attention these days is focused on the Trans-Pacific Partnership with 11 other Asia-Pacific countries. But another mega-regional deal, the Transatlantic Trade and Investment Partnership (TTIP) with the 28 countries of the European Union (EU), is likely to mean more for the Carolinas. Here’s why. One of the best kept secrets in Washington is how companies actually work. Across the Pacific, they deliver goods and services mainly through trade. But across the Atlantic, they deliver goods and services mainly through investment. The Charlotte region has been a major beneficiary of this investment.
Across the Pacific, they deliver goods and services mainly through trade. But across the Atlantic, they deliver goods and services mainly through investment. The Charlotte region has been a major beneficiary of this investment.
ATLANTIC FUTURE: The TTIP and the Wider Atlantic
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Foreign Direct Investment, 2008
EU Investment Abroad
Foreign Direct Investment, 2008
Foreign Investment in EU
Understanding this simple distinction helps us understand why the global economy still rests squarely on the shoulders of the transatlantic economy, despite all the chatter about the ‘‘rise of the rest.’’ Here are eight critical ties that bind Europe to the United States—and especially to the Carolinas. Production. American companies in Europe and European companies in America are among the largest and most advanced economic forces in the world and an important glue binding together the two
june/july 2015 | greatercharlottebiz.com
sides of the Atlantic. The combined output of transatlantic affiliates—nearly $1.3 trillion—is larger than the output of most countries. Europe accounts for almost half of the global output of American companies
operating abroad, and double U.S. corporate output in all of Asia. U.S. affiliate output in the UK is four times greater, and in Germany double, U.S. affiliate output in China. Meanwhile, European affiliates account for nearly two-thirds of all foreign
North Carolina and Europe
South Carolina and Europe
Employment European investment in North Carolina directly supported 153,200 jobs in 2012.
Employment European investment in North Carolina directly supported 82,600 jobs in 2012.
Direct Sources of Investment-Related Employment within North Carolina, 2011
The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free trade agreement between the European Union’s 28 member countries and the United States. The American government considers the TTIP a companion agreement to the Trans-Pacific Partnership (TPP). An agreement is not expected to be finalized before 2016. affiliate output in the United States. German affiliate output in the United States roughly equals Japanese output and is greater than Canadian output. Jobs. America is the largest source of onshored jobs in Europe, and Europe is the largest source of onshored jobs in America. Fifteen million workers owe their livelihoods to robust transatlantic commerce. Most workers working for American companies outside the United States are European, and most workers employed by European companies outside of Europe are American. What’s more, on average those jobs pay better, and offer better benefits, than domestically-sourced jobs. Assets. Europe is the largest investor in the American economy, just as America is the largest investor in Europe’s economy. Europe accounted for 70 percent of the $2.8 trillion invested in the United States in 2013—most of it by firms from the UK, the Netherlands, France, Switzerland and Germany. Similarly, Europe accounts for roughly 60 percent of all U.S. assets globally. Knowledge and innovation. U.S.-EU flows in research and development (R&D) are the most intense between any two international partners. European companies account for over three-quarters of total foreign private sector R&D spending in the United States. American companies spend 60 percent of their global R&D in Europe. Europe and America are knowledge economies,
Direct Sources of Investment-Related Employment within South Carolina, 2011
Country Employment Germany 29,000 UK 27,000 Switzerland 20,200 Japan 19,800 Canada 11,800
Country Employment Germany 21,400 France 17,200 Japan 14,500 UK 11,700 Canada 8,900
Goods Trade • In 2013, Europe purchased $6.4 billion worth of goods from North Carolina. • Chemical manufactures account for a quarter of total exports to Europe. • North Carolina exported 2.5 times as many goods to Europe as China in 2014 ($5.2 million vs. $2 million.) Top European Goods Export Markets, 2013 Country Germany France UK Belgium Netherlands
Top European Goods Export Markets, 2013
Exports ($ Millions) 1,000 1,000 899 800 716
Country Germany UK Belgium France Netherlands
TOP 5 European Regions—North Carolina Jobs
Region Brussels, Belgium Baden-Württemberg, Germany Paris—Île-de-France, France London, England Dublin/Ulster/East Ireland
Investment-Direct Overall 32,876 95,000 15,434 45,000 10,470 30,000 6,850 26,000 6,818 26,000
TOP 5 European Regions Providing Charlotte Jobs
Region Brussels, Belgium Oxford/Southeast England Baden-Württemberg, Germany Dublin, Ireland Paris—Île-de-France, France
Goods Trade • In 2013, Europe purchased $7.4 billion worth of goods from South Carolina. • 52% of the state’s exports consists of transportation equipment. • South Carolina exports 2.2 times as much to Europe as to China in 2013 ($6.8 million vs. $3.2 million.)
Investment-Direct Overall 5,229 15,000 3,807 11,000 3,474 11,000 2,943 9,000 2,893 9,000
Exports ($ Millions) 3,183 1,364 514 404 383
TOP 5 European Regions—South Carolina Jobs Region Bavaria, Germany Baden-Württemberg, Germany Paris—Île-de-France, France Brussels, Belgium London, England
Investment-Direct Overall 10,205 31,000 8,183 25,000 7,300 22,000 6,833 21,000 5,117 15,000
TOP 3 European Regions Providing Spartanburg Jobs Region Bavaria, Germany
Investment-Direct Overall 8,591 26,000 North Rhine—Westphalia, Germany 2,583 8,000 Baden-Württemberg, Germany 1,220 3,000
Investment is the key. There is more European investment in North Carolina or South Carolina alone than total U.S. investment in China, Japan and India combined. Companies from the European Union account for 69 percent of global investment in North Carolina and 65 percent in South Carolina. and companies seeking competitive advantage are seeking that extra slice of knowledge that they can turn into an extra slice of profit. More often than not, they look across the Atlantic. Trade within the company. In the Pacific economy, trade is king; investment flows are secondary. In the transatlantic
economy, however, investment drives trade—a sign of a deep and dense economic partnership. Most trade across the Atlantic, in fact, is conducted among two or more parts of the same company. It’s when BMW sends engines from its plant in Bavaria to its plant in South Carolina. It’s what makes BMW America’s No. 1 auto exporter by value. Over half of
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greatercharlottebiz.com | june/july 2015
OF INTEREST: Positioning Charlotte as a Global Hub of Commerce
The Carolinas and Europe
are double those in all of South America.
• Roughly 700,000 jobs are directly or indirectly related to the Carolinas’ commerce with Europe.
Profits. The United States is the most profitable place in the world for European companies, just as Europe remains the most profitable region of the world for U.S. companies. In 2014, European companies earned $110 billion in the United States. And despite Europe’s recent economic struggles, American companies made more money in Europe in 2014 than ever before—$238 billion, a 6.2 percent jump. Europe—not Asia or Latin America—accounts for over half the global profits of U.S. companies.
Jobs
Guest
Contributor
Dan Hamilton Sponsored by
Investment
• There is more European investment in North Carolina or South Carolina alone than total U.S. investment in China, Japan and India combined. • EU accounts for: 69% global investment in North Carolina and 65% in South Carolina 76% global investment in Durham; 70% in Charlotte; 61% in Raleigh 88% global investment in Spartanburg; 71% in Charleston; 56% in Greenville
Exports
• The Carolinas exported goods valued at $14 billion to Europe in 2013. • Services exports also important, but little good data • Top goods exports: • Chemical manufactures from North Carolina • Transportation equipment from South Carolina (52% of state exports)
U.S. exports to Belgium or the Netherlands takes place because American companies are sending products to their affiliates in those countries. Without that substantial investment presence, trade would shrivel and American communities would suffer.
TTIP and the Geopolitics of the U.S.-EU relationship
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Services—the sleeping giant of the transatlantic economy. Most American and European jobs are in the services economy, which accounts for over 70 percent of U.S. and EU GDP. The U.S. and the EU are the biggest services economies in the world and each other’s most important commercial partners when it comes to services trade and investment. U.S. services exports to Europe reached a record $250 billion in 2013, and European services exports to the U.S. reached a record $186 billion, up 21.6 percent from the depressed levels of 2009. Moreover, American companies in
Transatlantic economic ties are strong and deep. But they still suffer from various barriers to investment, trade, and services. The TTIP negotiations are focused on clearing away needless or costly impediments to investment, trade and services. Foreign affiliate sales. Everybody thinks of Germany as an export powerhouse. But German companies based in America sell far more than German companies export to America. European companies deliver goods and services to Americans primarily through the sales of their affiliates based in America, not through exports. In 2013, European affiliate sales in the U.S. of $2.3 trillion were more than triple European exports to the United States. The same is true for American companies. U.S. foreign affiliate sales in Europe are roughly half the global total, double sales in the entire Asian region, and more than total U.S. worldwide exports. Sales in the UK alone
june/july 2015 | greatercharlottebiz.com
Transatlantic Free Trade Area The Transatlantic Free Trade Area shows U.S. and EU in dark blue and the other possible members in light blue (NAFTA and EFTA).
Europe and European companies in America sell more than 2.6 times what they export in services to each other. Yet services sectors on both sides of the Atlantic are more protected than agriculture and manufacturing combined. Removing barriers to services through TTIP would be equivalent to 50 years’ worth of GATT and WTO liberalization of trade in goods and would be the most important international initiative to create jobs. Why TTIP Matters to the Carolinas
• Reduce Tariff Barriers • Reduce Barriers to Services [Jobs!] • Facilitate Investment Flows— the Lifeblood of the Transatlantic Economy • Reduce Regulatory Friction • Reposition Europe/U.S. for New Global Economy • Ensure HIGH standards • Living Agreement
What it means for the Carolinas. These deep linkages across the Atlantic continue to be very significant for the Carolinas. All told, about 700,000 jobs are directly or indirectly related to the Carolinas’ commerce with Europe. Investment is the key. There is more European investment in North Carolina or South Carolina alone than total U.S. investment in China, Japan and India combined. Companies from the European Union account for 69 percent of global investment in North Carolina and 65 percent in South Carolina. They account for 76 percent of global investment in Durham; 70 percent in Charlotte; and 61 percent in Raleigh. In South Carolina they account for 88 percent of global investment in Spartanburg; 71 percent in Charleston; and 56 percent in Greenville. Trade is also substantial. The Carolinas exported goods valued at $13.8 billion to Europe in 2013. Europeans bought $7.4 billion worth of goods from South Carolina and $6.4 billion from North Carolina. Each state exported more than twice as many goods to Europe as to China in 2014. This translates into jobs. It also tells us what European regions are important to the Carolinas and to the Charlotte-Spartanburg region. For North Carolina, the top jobgenerators are companies from Brussels, Belgium; the southeastern German state
from—surprise—Bavaria, but also from Baden-Württemberg, Paris, Brussels and London. For Charlotte the knowledge region around Oxford is also important, and for South Carolina the industrial companies of Germany’s Ruhr valley are also key. In short, transatlantic economic ties are strong and deep. But they still suffer from various barriers to investment, trade, and services. The TTIP negotiations are focused on clearing away needless or costly impediments to investment, trade and services. And since so many European labor, environmental and consumer standards are equivalent to American norms, TTIP is not about lowering standards, but repositioning Europe and America to maintain high quality standards together in a world of dif-
Example BMW
• By 2016 $7.3 billion investment in Spartanburg, S.C. • 8,000 direct jobs; 23,000 additional • $16.6 billion per year local economy • 40 additional in-state suppliers; 220 nationwide • 70% exported to 140 countries • BMW No. 1 U.S. Auto Exporter by value TTIP: • $500 million savings by cutting 2.5% U.S. auto import tariff and 10% EU auto import tariff • More savings re standards—EU standards front bumper lower than U.S. • 5-7 % cost reduction every car and truck
Guest
Contributor
Dan Hamilton Sponsored by
Since so many European labor, environmental and consumer standards are equivalent to American norms, TTIP is not about lowering standards, but repositioning Europe and America to maintain high quality standards together in a world of diffuse economic power and intensified global competition. The Carolinas stand to gain from such a 21st century partnership. of Baden-Württemberg, Germany; Paris, London and Dublin. South Carolina jobs are primarily onshored by companies
fuse economic power and intensified global competition. The Carolinas stand to gain from such a 21st century partnership.
This expert analysis is made possible by Shumaker, Loop & Kendrick, LLP, a full-service law firm with offices in Charlotte, North Carolina; Tampa and Sarasota, Florida; Columbus and Toledo, Ohio. At Shumaker, “We think global. Our practice is relationship-driven; our goal is global reach with local depth.” For more information, contact David H. Conaway at 704-945-2149 or dconaway@slk-law. com or visit www.slk-law.com. Content written by Daniel S. Hamilton, Ph.D., Executive Director of the Johns Hopkins University Center for Transatlantic Relations; co-author with Joseph P. Quinlan of The Transatlantic Economy 2015. For more information, contact him at 202-663-5878 or dhamilt5@jhu.edu.
Hamilton
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greatercharlottebiz.com | june/july 2015
The Volvo Deal
GETS IT!
Making Economic Development Work! BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Probusiness Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW • Business Facilities No. 1 Economic Growth Potential • Continental Tire • Michelin Tire • Giti Tire • Site Selection Top 10 State Business Climates • Bridgestone Firestone • Harbor Freight Tools • Forbes No. 8 Pro-business Regulatory Environment • Northern Tool • Belk • Element Electronics • Business Facilities No. 4 Best Business Climate • Keer Group • JN Fibers • Toray Industries • BMW •
F
by paul matthews
amous business magnate Walt Disney once said, “Do what you do so well that they will want to see it again and bring their friends.” In the economic development arena, this has been South Carolina’s winning strategy. “It’s a strategy started in 2011,” explains South Carolina’s Secretary of Commerce Bobby Hitt, “guided by Governor Nikki Haley’s leadership, bringing our state together as ‘Team South Carolina’ to attract business and jobs to the Palmetto State.
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“As a state, we encourage companies to come and discover what global heavyweights BMW, Boeing, Bridgestone, Continental, Google, Michelin already know—South Carolina is just right for business. “By nurturing our talent, building a business-focused environment and working together as a team, we are winning here at home,” he affirms decisively.
Focused Representation
Robert M. (Bobby) Hitt III South Carolina Secretary of Commerce
Bobby Hitt on CBR
Bobby Hitt: S.C. Manufacturing
“And now with our teamwork approach to economic development, South Carolina is producing record results, and emerging as a Southeast magnet for new jobs, investment and growth. “In the last four years,” Hitt continues, “we’ve celebrated major recruitment wins, including announcements by the world’s top automotive and aerospace companies, boosted opportunities for small businesses, and created an environment that encourages existing industry to continue expanding within our borders. “For a state relatively small in size, we have made big gains. Our economic development reputation has earned us the moniker ‘Beast of the Southeast,’ and South Carolina is consistently ranked as one of the top states for doing business by Area Development, Chief Executive and Business Facilities magazines. “Moreover, we’ve increased our state’s global reach,” Hitt touts. “For two years in a row, IBM named South Carolina the top state in the U.S. for new jobs created by international companies, on a per-capita basis. Our unprecedented success shows we are doing the right thing, the right way, and the world is taking notice.
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june/july 2015 | greatercharlottebiz.com
Bobby Hitt was one of Governor Nikki Haley’s first appointments when she assumed office in January 2011. As manager of corporate affairs at the BMW plant in Spartanburg, Hitt had been running interference for BMW through all the questions, complexities and concerns of the
“The bottom line is this. We run a customizable state. We don’t attempt to steer companies or campaign for business plans that benefit our state over the business. We look for strong companies, provide them with the resources they need, and let them conduct business as they see fit. We make sure South Carolina is just right for all of our companies, and it works. In South Carolina, business is part of our culture.”
public and government bureaucracy affecting BMW since before its first completed vehicle came off the Greer assembly line in September 1994. The success of the ever-expanding BMW production facility has been a remarkable testimony to South Carolina’s ambition to successfully woo more advanced manufacturing plants to its territory and Hitt knows how to tell that story. He calls it “The BMW Effect.” Today, BMW manufacturing employs 8,000 people to produce the X3 and X5 Sports Activity Vehicle and the X4 and X6 Sports Activity Coupe. The 1,150-acre, 5-million-square-foot campus generates its own power, offers an on-site family health center, and provides 24-hour security and firefighting personnel. To date, BMW has invested nearly $7 billion in its South Carolina operations. It was the fastest factory start-up in automotive history— a record 23 months from site groundbreaking to first car produced. With a daily output of about 1,200 vehicles, it has produced over 2,900,000 to date. It has 270 North American suppliers with 40 located in South Carolina itself. Hitt not only has an intimate knowledge of the BMW experience, he also has spent nearly 20 years in the journalism business. Out of college, he went to work at the Columbia Record in 1971 and was named managing editor in 1980 to 1987, and then managing editor of its sister publication, The State, which he held until 1991. Raised in Charleston and a graduate of the University of South Carolina, Hitt is a serious-minded
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public servant with a dry sense of humor, who is uniquely dedicated to the task of bringing jobs to South Carolina. He is nonchalant in manner, but keenly • JUNE focused on his targets 1 – AUGUST 31 and what needs to be
done to close deals with companies who are choosing new locations in a very competitive arena. He is especially conscious of the global nature of international commerce and always ready for the next challenge.
Formula for Success Early on in his position in the Department of Commerce, Hitt was asked what works for South Carolina. “So much of success is attitude,” he responded, “and our success boils down to one thing: We do what we say we will do. Outsiders will tell you that South Carolina is a success because of cheap land and cheap labor. Nothing could be further from the truth. “The bottom line is this. We run a customizable state. We don’t attempt to steer companies or campaign for business plans that benefit our state over the business. We look for strong companies, provide them with the resources they need, and let them conduct business as they see fit. We make sure South Carolina is just right for all of our companies, and it works. In South Carolina, business is part of our culture.” The state’s most recent success was capturing Volvo Cars and Mercedes Benz Sprinter Vans. Hitt comments: “It’s the Port of Charleston, with its new terminal and its system of ports and the highways and railroads, that become a statement to the world that South Carolina gets it.” The state has made a $2 billion commitment to building the port, expanding its Palm-Lobster-Mailer 2015_Layout 1 5/6/15 3:41 PM Page 1
“We have all the ingredients for smart growth. We are aware and knowledgeable about logistics and know the value of RO/ROs in the Carolinas. Halfway between Miami and New York City, we are perfectly positioned to take the lead. We can build near our ports or the I-85 corridor. We are even looking to develop the I-77 corridor from Charlotte to Columbia. It would be great to have an industrial corridor along I-77, but we are missing the essential infrastructure meaning sewers and water, etc.” Gaston
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greatercharlottebiz.com | june/july 2015
Haley Welcomes Bridgestone
BMW Additional Investment
Haley Welcomes Boeing
capacity and networking that port through a system of highways and railroads that are part of a supply chain system serving advanced manufacturing and logistical needs. Hitt continues, “This is an international economy that’s expanding rapidly. Southeastern ports have the advantage because of weather and rail capability. The pie is getting bigger and there will be traffic everywhere. “For example, South Carolina produces more tires than anyone in the world and there are no rubber trees here. Everything comes in and everything goes out. We produce 90,000 tires a day. Logistics is the key.” Speaking of tires, it was around this time last year that Singapore-based Giti Tire Group announced its plans to build a $560 million plant in Chester County to produce over 5 million radial passenger, light truck and SUV tires annually. They join Bridgestone Americas and Michelin North American already in the state. “Our state is always ready to provide new companies with the resources they need, no matter their focus,” attests Hitt. “We do our homework. We learn what we don’t already know and employ a workforce that is good at what they do. “South Carolina has been a manufacturing state for many years. We have universities and technical colleges to train workers for advanced manufacturing.” Indeed, since January 2011, South Carolina has recruited over $6 billion in capital investment and well over 15,000 jobs that include the automotive sector as well as the aerospace sector.
Gov. Nikki R. Haley State of South Carolina
countries. Germany and Japan have alternated number one and two over the years, but we have sought Chinese companies and we recently went recruiting in India with Governor Haley looking for companies interested in entering the U.S. domestic market,” continues Hitt. Then he points up the state’s secret weapon—Governor Nikki Haley. “She is a remarkable governor. I have been around a while. I have worked around the state capital since I started in the newspaper business in 1971. In that time, the two governors who really knew and understood business were Carroll Campbell and Nikki Haley. She is very good.
“The governor is a big player. She is very attentive, asks great questions and is really great to make calls. She will pick up the phone and speak directly to the CEO or the contact person we are working with. And she follows through with them or by telling us what needs to be done. She works for the close.”
The Secret Weapon
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“We are in the relationship business,” maintains Hitt. “South Carolina went to Europe 40 years ago; Hoehst Celanese came here 35 years ago as a direct result.” With BMW, even Hitt admits it was a bold move. South Carolina cold-called BMW. They tried to find an interest level and transform it using all the association links they could find. Hitt categorizes BMW as a game-changer. “We have investments from many
june/july 2015 | greatercharlottebiz.com
“The governor is a big player. She is very attentive, asks great questions and is really great to make calls. She will pick up the phone and speak directly to the CEO or the contact person we are working with. And she follows through with them or by telling us what needs to be done. She works for the
close,” attests Hitt. “We want to get deals done and done well to mutual satisfaction. Governor Haley is fully integrated into our program. She is good. She knows everybody in the room. She is an economic development governor. She is aggressive. “She was extremely valuable on our trip to India having Indian heritage. We visited six Indian states. We are trying to establish relationships with businesses from those countries that want a presence in the U.S. markets. We are building global relationships. “We have relationships with the USC Moore School, the Clemson engineering school, the College of Charleston. We are constantly looking for people with contacts and relationships that can be helpful to us. “We don’t just recruit businesses or work on big business,” explains Hitt, “we work on medium to small businesses as well. We work on business relationships—helping businesses connect with each other and helping them grow. If a business is having a problem, I want to know about it.”
Making It Happen “Business goes to where business works,” Hitt sums it up. South Carolina boasts low taxes with a five percent corporate tax rate and no state property tax, local income tax, inventory tax, or sales tax on manufacturing equipment, industrial power or materials for finished products. There isn’t even a wholesale tax or unitary tax on world profits. The state has a significant incentive package that is customized to the needs of different businesses which include corporate tax credits for jobs, corporate headquarters, research and development, investments, and biomass resources. They also identify discretionary income, license and withholding incentives for job development and job
“Manufacturers want a place that is great to work in and great to live in and in this state, we’re able to match both of these needs. That’s the South Carolina advantage— what we can give to companies is the knowledge that if they come here, they’ll find success. We want companies to know that South Carolina is a business-friendly state.”
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retraining as well as corporate moratorium, trade incentives and port volume increases. South Carolina works to provide a stable job market as a right-to-work state with a low unionization rate of 3.3 percent. For more than 50 years, the SC Technical College System has provided well-trained employees to qualifying companies. The ReadySC program includes 16 community-based technical colleges and serves over 240,000 students. Hitt continues, “We have all the ingredients for smart growth. We are aware and knowledgeable about logistics and know the value of RO/ ROs in the Carolinas. Halfway between Miami and New York City, we are perfectly positioned to take the lead. We can build near our ports or the I-85 corridor. We are even looking to develop the I-77 corridor from Charlotte to Columbia. It would be great to have an industrial corridor along I-77, but we are missing the essential infrastructure meaning sewers and water, etc. “I think Rock Hill has done a pretty remarkable job building younger communities. These places are figuring it out and learning. One place learns from another; they are thinking ahead.
Miami
“The name of the game in growing our economy,” maintains Hitt, “is new money. And we see foreign direct investment as new money. South Carolina has international offices in Munich, covering Europe, Shanghai, covering Asia, Tokyo and India. We will keep building and nourishing relationships to make things happen for South Carolina. “Companies come here to make a profit. And what we know is that if they come here and are profitable, then they are going to hire more South Carolinians, and that makes me happy,” Hitt smiles. “Manufacturers want a place that is great to work in and great to live in and in this state, we’re able to match both of these needs. “That’s the South Carolina advantage— what we can give to companies is the knowledge that if they come here, they’ll find success. We want companies to know that South Carolina is a business-friendly state.” Paul Matthews is a Greater Charlotte Biz freelance writer. Some images provided by the S.C. Department of Commerce.
South Carolina Department of Commerce 1201 Main St., Ste. 1600 Columbia, S.C. 29201 Phone: 803-737-0400; 800-868-7232 Principals: Nikki Haley, Governor; Robert X. (“Bobby”) Hitt, Secretary of Commerce www.sccommerce.com
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›› Port of Charleston, S.C.
SOUTH CAROLINA PORTS STRATEGIC VISION
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Infrastructure Development
Cargo Growth
The S.C. Ports Authority and the State of South Carolina have initiated a 10-year, $2 billion capital investment campaign dedicated to portrelated infrastructure. These projects include a new 280acre container terminal, deepening of Charleston harbor to allow all-tide access for fullyloaded neo-Panamax vessels, a new, dual-served intermodal container transfer facility central to the Port of Charleston, expansions and improvements to interstate highways, and the new inland port facility in Greer, S.C.
june/july 2015 | greatercharlottebiz.com
Clearly, a port is only as strong as the freight base it serves. An aggressive, integrated statewide effort is continuing to experience success in attracting new port-dependent business. In recent years more than $6 billion has been invested by port-dependent businesses comprising nearly 20 million square feet. There is ample evidence those efforts are paying off in volume. Since 2011, the Port of Charleston’s container volume has grown 16%, making it the fastest growing major port in the United States.
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Productivity & Efficiency South Carolina Ports are known around the world for high efficiency. The Port of Charleston enjoys the position of the most productive container port in North America averaging 43 moves per hour per dockside crane and 22-minute truck turn times. Charleston is 60% more productive than U.S. West Coast ports, a position that it has maintained for decades. Protecting and enhancing this benefit is vital to its success as a port.
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Financial Sustainability For more than 30 years, South Carolina’s ports have been self-supporting on an operating and capital basis. Retaining this financial sustainability, which is not tied to government budgets, is key to future growth. From cargo growth, since FY2010, Charleston container volume is up 32%. Over the next 10 years, South Carolina plans to implement $2 billion in capital projects.
PROPELLED BY MOMENTUM South Carolina Ports Dig Deep by pete prunkl
S
outh Carolina’s ports are being propelled by sheer momentum—the momentum of the state’s economic development successes. The Port of Charleston’s 2014 fiscal year container volume was up 8 percent from the prior year and up 29 percent since fiscal year 2010. Non-container business at both Charleston and Georgetown was strong, especially in the power-generation, metals, and roll-on/roll-off vehicle commodity sectors.
A Deep Commitment
SC Ports 2014 Summary
S.C. Inland Port of Greer
greatercharlottebiz.com | june/july 2015
“The Port of Charleston has emerged as a driver of port business in the South Atlantic states over the last four years. Container volume continues to grow well above the market, making it the fastest growing major port in the U.S.”
Jim Newsome on Carolina Business Review
networking that port through a system of highways and railroads that are part of a supply chain system that serves advanced manufacturing and their special logistical needs.
Strategic Assets
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Even better news, South Carolina’s freight base is growing rapidly through aggressive economic development efforts. Major investments from international brand leaders such as BMW, Continental Tire, Michelin Tire, Giti Tire, Bridgestone/Firestone, Toray Industries, Harbor Freight, Northern Tool, Belk, and a 10fold increase in cold storage facilities foretells a bright future. When Secretary of Commerce Bobby Hitt was asked about the reasons for success recruiting Volvo Cars and Mercedes Benz Sprinter Vans to South Carolina, he quickly responded, “It’s the Port of Charleston with its new terminal and its system of ports and the highways and railroads that become a statement to the world that South Carolina gets it.” Indeed, the state of South Carolina has made over a $2 billion commitment to building the port, expanding its capacity and
june/july 2015 | greatercharlottebiz.com
Established by the South Carolina General Assembly in 1942, the South Carolina Ports Authority (SCPA) is tasked with promoting, developing, constructing, equipping, maintaining and operating the state’s harbors and seaports. The SCPA owns and operates the public port and transportation facilities at the South Carolina Ports of Charleston and Georgetown, as well as the South Carolina Inland Port in Greer. The largest facilities are located at the Port of Charleston, where the SCPA operates five major ocean terminals capable of handling breakbulk and container shipments in addition to passenger vessels. All of the SCPA’s container terminal facilities are at the Port of Charleston, where the primary focus is the movement of containerized shipments to and from the vessels. A sixth facility—a new container terminal at the former Charleston Navy Base—is currently under construction, set to open around 2019. The Port of Georgetown facility along the Sampit River is the SCPA’s second largest and serves as a bulk and break bulk facility handling the top commodities of steel, cement, aggregates, forest products, mill scale, alloys and scrap metal. Opened in the fall of 2013, the South Carolina Inland Port in Greer extends the reach of the Port of Charleston more than 200 miles into the interior. Connected to the Port of Charleston via Norfolk Southern’s overnight rail, the inland port handles containerized goods to and from the fastest-growing part of the Southeast—the I-85 corridor.
An economic development engine for the state, the SCPA handles international commerce valued at more than $63 billion annually while receiving no direct taxpayer subsidy. According to an economic impact study, port operations facilitate 260,800 jobs across South Carolina (one in every 11 jobs) and nearly $45 billion in economic activity each year. Jim Newsome is president and CEO of SCPA Newsome has served in the role since 2009, but his background is steeped in transportation and logistics. He previously served as senior vice president and then president of the Americas of Hapag-Lloyd AG; executive vice president and then president of the Americas for Nedlloyd Lines; and various positions before becoming president of Strachan Shipping Company’s Hoegh Lines Agency Subsidiary. The Savannah native received his bachelor’s and master’s degrees in Transportation and Logistics from the University of Tennessee in Knoxville.
Building on Economic Development Success “The Port of Charleston has emerged as a driver of port business in the South Atlantic states over the last four years,” Newsome points out. “Container volume continues to grow well above the market, making it the fastest growing major port in the U.S.” The state’s economic development efforts are aggressively growing the South Carolina port freight base with significant progress. The momentum generated is creating new opportunities and driving new investments. Nowhere is the momentum more visible than in the Port of Charleston’s recent container volume numbers. Since 2011, Charleston’s volume is up 16 percent. The overall U.S.
fenix fotography
James I. (Jim) Newsome, III President and CEO South Carolina Ports Authority (SCPA)
“It’s the Port of Charleston with its new terminal and its system of ports and the highways and railroads that become a statement to the world that South Carolina gets it.”
container market grew only 6 percent in that same period. Even more remarkably, the Port of Charleston captured 72 percent of all the container volume growth that has occurred in its competitive range since 2011. Another sign of momentum is the rapid growth of port-dependent business locating in South Carolina. From January to December 2013, the state closed 127 economic development projects, totaling $5.4 billion in capital investment and 15,457 new jobs. Many of those projects included port-dependent business. Among them are BMW’s $1 billion plant expansion in Greer, S.C.; Continental Tire’s largescale tire manufacturing plant near Sumter, S.C.; Michelin Tire’s $900 million expansion in Lexington and Anderson, S.C.; Bridgestone Firestone’s new$1.2 billion large-scale mining tire production plant near Greenwood, S.C.; and Giti Tire’s new $560 million tire manufacturing plant in Chester County, S.C. Other notable port-dependent business expansions included Element Electronics, Harbor Freight Tools, Northern Tool, Keer Group, JN Fibers, and Toray Industries.
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“Our port’s performance is a strong reflection of our state’s economic development successes, and it positions us well to serve imports and exports for our nation.”
Share of Container Volume by Trade Lane With regular services touching all parts of the globe, South Carolina’s ports open the door to more than150 nations worldwide. Container service in Charleston is diverse, reaching trade lanes far-flung and closer to home. The growing Northeast Asia trade is covered with several services by both Panama and Suez Canal transit.
n North Europe................................... 37.16% n Northeast Asia................................. 24.00% n All Other........................................... 22.45% n South America West Coast.................5.19%
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n South America East Coast..................3.99% n Mid East..............................................3.44% n Mediterranean....................................3.78% Source: CY’13. PIERS Data Loaded import & export boxes only.
june/july 2015 | greatercharlottebiz.com
Seeing such an immediate return on investment is bringing confidence about improvements lined up for the future. The SCPA’s board approved an ambitious 2015 fiscal year plan that includes across-the-board increases in cargo volumes, operating revenues and capital investments. Operating revenues are expected to reach $172.8 million in fiscal year 2015, up $13.2 million from projected 2014 totals. Above-market growth for the ensuing years is a critical part of the port’s strategy, which includes diverse port operations. In non-containerized cargo business segments, the SCPA plan includes breakbulk tonnage increases of 9.8 percent in Charleston and 0.5 percent in Georgetown, driven largely by strong performance of state manufacturers. “Volume across all business segments continued to grow through the 2014 fiscal year, giving us the confidence to approve this aggressive plan,” according to SCPA Board Chairman Bill Stern.. “Our port’s performance is a strong reflection of our state’s economic development successes, and it positions us well to serve imports and exports for our nation.” The Charleston Harbor has been a key economic driver for more than 300 years. Charleston is already a well-positioned port in the Southeast. Among other ports on the Eastern seaboard, it has the deepest water, highest productivity, best value proposition and capacity; its proximity to the growing Southeast market puts it at a huge advantage.
Connect the Dots When South Carolina’s Inland Port of Greer opened in 2013, it was not a “build it and they will come” experiment, says Newsome. SCPA had already secured a commitment from BMW, the German luxury auto manufacturer, to move their export operations there. BMW’s leading role in the Inland Port’s early life is one of two critical differences between the Greer and Charlotte intermodal facilities.
With BMW, Greer had an anchor tenant; Charlotte does not. Using shipping lingo, Newsome observes, “Charlotte’s intermodal facility doesn’t have a base cargo; that’s the least freight that makes a shipment worthwhile. Charlotte lacks a significant importer or exporter to anchor its intermodal facility.” Newsome points out that having access to rail directly to ports is equally important. Greer has a direct connection to the Port of Charleston by Norfolk Southern. “That’s Charlotte’s second problem. Charlotte has a beautiful, state-of-the-art, world-class intermodal facility, but it is essentially a terminal,” says Newsome. “Charlotte’s intermodal facility does not offer a world-class connection to a port.” In his conversations with Charlotte business leaders, he was told that they wanted a rail connection. “You have some work to do if you want that to happen. There has to be overnight train service between Charlotte and Charleston. It’s pretty simple. Inland ports only work if there is an overnight train service,” says Newsome. Establishing a relationship requires reciprocal initiative and commitment. “It’s really up to the railroad to decide,” says Newsome. And it’s up to the importers and exporters to use that facility. All the raw material is there to make something of it at Charlotte; someone has to connect the dots.” Last year BMW Manufacturing cited the Inland Port of Greer as a major factor in its decision to announce a $1 billion expansion. In addition to the X3 and X5, BMW will soon produce a new, large SUV, the X7. The X7 means adding 800 jobs to a payroll that already exceeds 8,000. When the X7 is in full swing, BMW expects their South Carolina production to top 450,000 vehicles a year. And if current trends continue, they will export 70 percent of production from Greer to more than 140 countries through the Port of Charleston. Despite BMW’s dominant role in the initial development of the Inland Port, SCPA officials knew there were others who would find it attractive. “We had a marketing plan to zero in on those clients one by one. Today BMW is less than 50 percent of the container volume that goes through the Inland Port,” says Newsome. “I consider the Inland Port at Greer a success story.”
Digging Deep to Compete Globally Greer feeds the massive Port of Charleston, North America’s fastest growing port according to a May 2015 report by commercial real estate and investment firm CBRE. Taking
›› Port of Georgetown, S.C.
into account port infrastructure, real estate and industrial factors, the Port of Charleston ranked seventh among the 15 large ports studied by CBRE. Of North America’s top 10 ports, Charleston had the second lowest occupancy costs, behind Savannah, and the second highest shipping volume, behind Houston, a market 16 times the size of Charleston. The Port of Charleston is comprised of five terminals. Two are located on the historic Charleston peninsula: Columbus Street and Union Pier. Further up the Cooper River are Veterans and North Charleston. One more is located on the Wando River at Mount Pleasant, the 689-acre Wando Welch Terminal. In 2010, SCPA invested $30 million to convert the 155-acre Columbus Street Terminal from a container-handling facility to a modern, large-scale roll on/roll off, break bulk and project cargo terminal. “The big idea was to diversify the cargo business,” explains Newsome, “and work aggressively to recruit more noncontainer cargo business. Since the conversion, break bulk cargo at Columbus Street has increased 36 percent.” In shipping, break bulk cargo are goods that must be loaded individually, and not in intermodal containers nor in bulk as with oil or grain. At Charleston, the leading break bulk export is rolling stock, primarily automobiles. Columbus Street is where thousands of BMW vehicles come for export. Automobiles driven on and off a ship using their own power are given the alliterative title RO/RO for roll-on/ roll-off, but they are still break bulk. On the import side, Charleston’s leading break bulk commodities are steel coils and wire, rolling stock and heavy
lift items such as turbines and generators. The 74-acre Union Pier includes the SCPA headquarters building, warehouses and, Newsome describes, “a single vessel, single cruise passenger homeport terminal location.” That’s bureaucratese for an unattractive warehouse with a concrete deck over the Cooper River that serves as the embarkation and disembarkation points for Carnival and other cruise ship lines. Carnival now bases its 2,000plus passenger liner Fantasy in Charleston. By the end of this decade, Charleston will boast its sixth terminal and a deepened river channel. “These things work in tandem,” says Newsome. The new terminal is on the site of the former federal Naval Base and Charleston Naval Shipyard which the Pentagon closed in 1996 as a cost-savings measure. The channel is being deepened from 45 to 50 feet; the dredged sand and clay are being used to in-fill a new man-made wharf at the old base. The first phase of the massive project began in 2007. In addition to creating the wharf, SCPA is demolishing the old Navy Base buildings, constructing new buildings, building the container yard and linking the waterfront to Interstate 26 and to a new intermodal rail yard. When the first phase is completed it will add 171 acres to the Port of Charleston and increase its container capacity by 50 percent. “A terminal takes a long time to build,” says Newsome. “It is moving along fine.” “At some point in the 2030s, the Charleston and Savannah Terminals will reach their practical capacity limit,” says Newsome. Faced with uncertainties about what world trade, ship sizes and the economy will look like in 20 years, ports officials can’t wait for ports to run completely out of capacity before looking for new property. “At 80 percent capacity,” comments Newsome, “we need to think about bringing
›› Inland Port of Greer, S.C.
another terminal on line. And as unlikely as it seemed in 2007, there is a high probability that the next new American port will be the Jasper Ocean Terminal. That is a 1,500acre site on the South Carolina side of the Savannah River, upriver from the Port of Savannah and may be the last potential deepwater port on the East Coast. Pete Prunkl is a Greater Charlotte Biz freelance writer. Some images provided by the S.C. Ports Authority.
South Carolina Ports Authority 176 Concord Street Charleston, S.C. 29401 Phone: 843-723-8651 Principals: James I. (Jim) Newsome III, President and CEO Ports: Charleston, Georgetown and Greer, S.C. Established: 1942 Administrative Staff: 30 Employees: 480 Business: To promote, develop and facilitate waterborne commerce to meet the current and future needs of its customers, and for the economic benefit of the citizens and businesses of South Carolina. www.ourportsourjobs.com www.port-of-charleston.com www.scspa.com
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Spirit Communications Channels Deep Local Heritage to Relay Innovative Service Offerings
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Spirit Communications
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by andrew rusnak
resident and CEO Bob Keane believes strongly that Spirit Communications’ deep local heritage and innovative service offerings differentiate it from larger, traditional public telecom firms. The company has evolved from telecom roots dating back to 1896 and prides itself on constant innovation. “Spirit Communications and its owners are visionaries who realize that the future of business, educational, health care, industrial, social and economic development depends on the availability of a strong telecommunications and broadband infrastructure,” says Keane.
june/july 2015 | greatercharlottebiz.com
Connecting the Carolinas
“We, along with our owners, are committed to providing the best broadband and communications infrastructure in the Carolinas and will continue to invest in response to changing technological requirements and the growth demands of our customers. “With all the success that South Carolina is experiencing having recruited many new corporations, such as BMW, Boeing, Mercedes and Volvo,” continues Keane, “it is essential that the communications infrastructure support these and other firms. We intend to deliver on that promise. “It is our passion to engineer fast, reliable and secure solutions that give local and regional businesses the freedom to create, grow and gain a true competitive edge.” Bob Keane President and CEO Spirit Communications LLC
Well-Connected
With all the success that South Carolina is experiencing having recruited BMW, Boeing, Mercedes and Volvo, it is essential that the communications infrastructure support these and other firms. We intend to deliver on that promise. It is our passion to engineer fast, reliable and secure solutions that give local and regional businesses the freedom to create, grow and gain a true competitive edge.”
Keane explains, “I came on board Spirit Communications in October of 2010. I started my career in the old Western Electric company—now Alcatel Lucent—which was the manufacturing arm of AT&T. We manufactured those old rotary dial phones that had the Bell System stamp on them.” He laughs, “Those unbreakable telephones…I still have one in my home to remind me of how far we have come and all the great technology advancements since.” Keane recounts his work experience, transitioning through a variety of roles with Western Electric, and then on to AT&T, spending a lot of time working with customers, such as independent telephone companies and the BellSouth’s of the world, exploring new and innovative products and services together. All told it was 18 years with AT&T in telecom equipment sales, business development, product and access management and providing leadership in the development of local service, Internet, cable and access services. In 1997, he was named vice president of
AT&T’s local services with responsibility for strategic and fundamental planning in support of business, consumer and Internet business units, which included the integration of Teleport Communications Group (TCG) into AT&T. “By 1999, I got recruited into Comcast. At that time, the company was about the fourth largest cable company,” continues Keane. “As senior vice president of what is now Comcast Business Services division, I had to figure out how Comcast could get into the telephony business.” As Keane grew Comcast’s communications business, he was tapped to create and head the new division, Comcast Business Communications. As president and CEO; he had full financial and operating responsibility for the development and delivery of fiberbased services to small and medium-sized businesses. In 2010, Keane was approached to head up Spirit Telecom and PalmettoNet in South Carolina. Keane says he was drawn to the opportunity because of its unique character and ownership group.
Making Connections Spirit Telecom was formed in 2002 to bring several communication service companies under one roof and provide voice, data and Internet services to its owners as well as customers in South Carolinas. The vision was to develop innovative business solutions to a cross section of businesses, government agencies and health care organizations with focused growth into the Carolinas and Georgia. PalmettoNet was formed in 1985 as “a carrier’s carrier,” to provide transport and fiber to the tower to prominent telecommunications carriers along with interstate and intrastate IP transport services. Today, the company has over 6,000 fiber route miles.
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At the time Keane came on board, both companies were owned by the same consortium of independent phone companies and cooperatives of South Carolina: Chesnee Communications, Comporium, Farmers Telephone Cooperative, Hargray Telephone Company, Home Telephone Company, Horry Telephone Cooperative, Palmetto Rural Telephone Cooperative, Piedmont Rural Telephone Cooperative, Sandhill Telephone Cooperative, TruVista Communications, and West Carolina Rural Telephone Cooperative. Keane says he was intrigued by the ownership mode. “The ownership group consists of 11 companies which all provide similar services in the state in their respective geographies. So the board consists of a group of CEOs from the same industry with same interest but at the same time running independent companies,” says Keane. “Not your typical board of independent directors from very different industries.” Under Keane’s leadership, PalmettoNet was merged into Spirit as its carrier division in 2011, and the resulting combination renamed Spirit Communications. PalmettoNet, known as a Spirit Communications company, is the largest provider of digital fiber optic networks
Spirit Communications Park in the new multi-use venue at Columbia Common in Columbia, S.C.
Spirit Communications Park
in the Carolinas. “By combining the companies, our customers benefited from the increased focus and investment on our local markets and deployment of capital in ways that make our services and operations more robust, reliable and efficient,” explains Keane. Today, Spirit Communications is a fiber-based CLEC in South Carolina, North Carolina and Georgia, serving a cross-section of commercial businesses, state and federal
government agencies, and health care organizations throughout the Southeast. It is headquartered in Columbia, S.C., with regional offices in Charleston and Greenville, S.C., and Charlotte, Wilmington and Asheville, N.C. The company is now among the top 35 privately-held firms in the state with over 225 Carolinas-based employees. Keane says he’s in it for the long haul. “That was fundamental to my decision,” he asserts. “In prior positions, I built companies for three
CELEBRATING 25 YEARS OF POURING OUR HEARTS INTO THE CAROLINAS
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“At this stage in my life, I want something that has longevity; I want to create long-term value, have an impact on the community and I want to do it with people who will recognize that value.”
Service to Customers and Community to five years and then they were sold off. When you start in those jobs you know there’s a very clear end in sight. There’s no long-term ownership, long-term value creation or commitment to the community. It’s all about the value of the dollar realized in the transaction.
“I focus on how this company provides service to its customers,” says Keane. “I know a lot of companies say that, but here it actually is the case. Our customers include our owners and ultimately their commercial and residential customers.”
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Service to community is also important, Keane points out: “If you look at our owners— such as Comporium in Rock Hill—they’re very community-oriented. A perfect example is the new Fountain Park that Comporium built in downtown Rock Hill. It is demonstrative of their support and connection with the local community.” To add to this sense of community, Spirit Communications also works with public and private universities to expand access to research. We have partnered with the state as well as the University of South Carolina, and the Medical University of South Carolina in Charleston and at Clemson University to build a research network envied by many states. Keane points out, “This enables private industry to connect with the research universities in a compelling way. We believe in raising the tide so that everyone can improve the Carolinas together. It’s an infrastructure enabler to help businesses as well as students and researchers.” Spirit Communications also provides the Palmetto State Providers Network (PSPN), which is a dedicated network for public and private health care providers in rural areas across South Carolina. Spirit built and manages the network providing bandwidth to medical offices and hospitals. As Keane explains, it’s just about raising standards: “We allow people and industry to get to universities and research hospitals. We provide this network ubiquitously. Again, helping the community, we’re committed to those kinds of initiatives.” In addition to serving the owners of the company and the community, Spirit Communications also has a relationship with South Carolina government that stretches back over 20 years. Spirit Communications provides gigabit Internet, wide-area networks, and virtually 100 percent of all voice and long-distance services to and across state governmental offices and public schools to date. If you call South Carolina Governor Nikki Haley’s office, chances are very good that you’re going to be utilizing Spirit Communications. Spirit provides critical services to the wireless industry. “As the world goes wireless, we have our own Spirit Communications towers and also provide fiber and co-location services to major carriers like Verizon, T-Mobile and others. That adds value and allows for even larger relationships to be formed. As the leader of this company, creating value-based relationships is one of my top priorities.” Spirit Communications has recently
Spirit Communications also partners with the state as well as the University of South Carolina, and the Medical University of South Carolina in Charleston and at Clemson University to build a research network envied by many states.
This enables private industry to connect with the research universities in a compelling way. We believe in raising the tide so that everyone can improve the Carolinas together. It’s an infrastructure enabler to help businesses as well as students and researchers.” acquired naming rights for a new multi-use venue at Columbia Common, to be known as Spirit Communications Park, just blocks away from its headquarters. This marks the return of professional baseball to Columbia in the state-of-the-art ballpark. The company has also announced a partnership with the city to provide free public Wi-Fi access to help Columbia Common become a gigabit community. “We are delighted to make this investment in what we are sure will be one of the most important and transformative projects our hometown of Columbia has ever seen,” says Keane. “It’s a natural fit.”
Responsive Innovation Spirit Communications has a history of innovation, whether it’s pioneering multi-protocol label switching (MPLS), hosted IP voice technology or managed cloud services with secure and reliable support. Just last year they launched secure, private LTE wireless backup
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In order to be forwardthinking, you have to be innovative and pay attention to technology. But before you can successfully do that, you have to do right by the people. That’s what we’re doing at Spirit Communications, and that’s what we’re doing for the Carolinas.” and hosted firewall services as well as a number of new cloud-based products and services. “We’re also reaching the rural areas in a major way,” reports Keane. “We’re aiming toward total coverage through our partnerships. Our owners are critical to meeting this objective.” Most recently, Spirit Communications completed its acquisition of SCANA Communications Inc. (SCI), including its interest in FRC, LLC (FRC), a fiber network joint venture between SCI and Spirit Communications. SCI was the communications subsidiary of SCANA Corporation (NYSE: SCG), a South Carolina-based energy company that has been doing business in the southeast for 160 years.
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SCI’s fiber network includes over 1,125 route miles of dense long haul and metro fiber, and extends across multiple markets in South Carolina, as well as in North Carolina. SCI’s services include Metro Ethernet, long haul high bandwidth IP Transport and SONET-based transport capacity, and state-of-the-art data center and co-location facilities. “We had strategically partnered with SCANA in providing communication services, including forming a joint venture that extended from Raleigh all the way down to Charleston,” explains Keane. “We have enjoyed a long and successful partnership, and this acquisition enhances our extensive and unique network in the Carolinas, and solidifies our
Charlotte-Mecklenburg Police Department • Proffitt Family Cattle Company • F.D.Y., Inc. • Harper Corporation of America • TPM of Charlotte, LLC • Mantissa Corporation • NC Music Factory • Your Event Source, LLC • AdvanaClean Systems, Inc. • Gardner-Webb University Charlotte Campus • Ethel Harris, Inc. • Charlotte Latin School • Nexcommunications, Inc. dba Nexcom • Metrolina Builders, Inc. • KS Audio Video, Inc. • Cook Truck Equipment • Birds-I-View • Swiss Farms • Chapter IV Investors, LLC • NewDominion Bank • Carolina Sorting Arms • Blue Cross and Blue Shield of NC • Express Employment Professionals • Archadeck of Charlotte • Siemens Energy, Inc. Charlotte Energy Hub • Marand Builders, Inc. • DW2, Inc. dba PROSHRED Charlotte • Mellow Mushroom • FireFold • Mooresville Ice Cream Company, LLC • UNC Charlotte Athletic Department • Northeastern University Charlotte • Garfinkel Immigration Law Firm • ettain group, inc. • Hood Hargett Breakfast Club, LLC • StayConnect, LLC • Wake Forest University Charlotte Center • Morton’s/Charlotte LLC • iMapCharlotte • Morgan Chair, Inc. • Suite 1000 • Deloitte & Touche LLP • Clear Channel Broadcasting, Inc. • Tropical Nut & Fruit Co. • Stafford Consulting Engineers, Inc. • Records Reduction, Inc. • Knowmad Technologies • Arts & Science Council • All About the Pipes Plumbing, Inc. • Tattoo Projects, LLC • H.E.A.T. Pro Fitness • A Love for the Game • Greenspring Energy • Committee for Charlotte 2012, Inc. • Larner’s Office Furniture • Birdsong Gregory, LLC • Anvil Prototype & Design • The Baldwin Company, Inc. • Handshaw, Inc. • Belk, Inc. • CHS Carolinas Corporate Health & Wellness • Hotel Sierra Charlotte about ourSolutions, Biz Profi Center City/Hyatt • Killingsworth Environmental of the Carolinas, LLC Ask • Simile Imaging Inc.les • Presbyterian Healthcare • BizED 2011-2012 • Business Wise, Inc. • American Red and Cross BizXpert Carolina Piedmont Region • United Sleep Sections Medicine, L.L.C. • Potter & Company, P.A. • The Shaw Group Inc. (Power Group Headquarters) • Hensley Fontana Public —we’ve led over 900 Training & Relations & Marketing • Medallion Athletic Products, Inc. • The Darton Group, LLCprofi • Henricks Corporate Development, Inc. • Organic Plant Health, Inc. • Microsoft Corporation Charlotte Campus • Spivey Construction Company, Inc. companies—you can trust • Carolina Urology Partners, PLLC • BLUERIDGE Analytics, Inc. • Cardno TBE • Paddock Pool Equipment Company, Inc. • us to do the job. Charlotte Regional Visitors Authority • Eastover Investment Advisors, LLC • Livingston & Haven, LLC • Waypoint Solutions Group, LLC • Hankins & Whittington Funeral Services • Ameritech Die & Mold, Inc. • The Duke Energy Foundation • Skookum Digital Works • Carolina Digestive Health Associates, P.A. • Tobin Starr + Partners, PPLC • Data Recovery Group • Blue Cross and Blue Shield of North Carolina • Red Moon Marketing, LLC • NouvEON • Van Hoy, Reutlinger; Adams & Dunn, PLLC • Integra Staffing, LLC • AAA Carolinas • Keffer Management Company, LLC • Verian Technologies, LLC • Hampton Inn & Suites SouthPark • Charlotte Speech & Hearing Center, Inc. • Scholz and Associates, Inc. • Time Warner Cable Business Class Carolinas • Hilton Charlotte Center City • Anderson LeNeave & Co. • Superior School of Real Estate, Inc. • Air Tight Mechanical, Inc. • Muzak Holdings LLC • Jerald Melberg Gallery, Inc. • University City Partners, Inc. The Ben Craig Center • David R. Badger, P.A. • Addison Whitney LLC • Charlotte Motor Speedway, LLC • Enventys, LLC • MidasNation ™ • Harris Communications • Engineering Sales Associates of the Southeast, Inc. • Fifth Third Bank, N.A. • Mountain Khakis, LLC • Wishart, Norris, Henninger & Pittman, P.A. • The Performance Group, Ltd. • Avantgarde Translations, Inc. • Melange Health Solutions L.L.C. • Carolina Panthers • Sports Media Challenge Buzz Manager, Inc. • Charlotte Arrangements • The Olde Mecklenburg Brewery LLC • Barefoot and Company • NASCAR Hall of Fame • BizEd 2010-2011 • File Vault, LLC • Living Well Health Solutions, LLC • Griffin Home Health Care, Inc. • Hendrick Automotive Group • Technekes, LLC • Bruce Julian Clothier • Charles Luck Stone Center • Rose Chauffeured Transportation, Ltd. • Bank of America • James, McElroy & Diehl, P.A. • Elliott Davis, PLLC • Tri/Meck Mechanical, Inc. • HF Financial • Iverify.us Inc. • Hickory Construction Company • UNCC
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commitment to serve SCANA and all South Carolina businesses, government agencies, medical institutions and research universities. “The acquisition of SCI is a major milestone for Spirit and a key piece of our long-term strategy. The acquisition supports our fiber-based focus, increases our fiber footprint in South Carolina and improves the fundamentals of our business, both operationally and financially. We are acquiring a significant amount of fiber in the Carolinas along with our joint interest in the FRC partnership, a multi-state fiber network,” continues Keane. Spirit Communications also acquired SCI’s cellular tower business, which includes the construction and management of cell towers for wireless carriers in the Carolinas and Tennessee. “This acquisition combined with our current operations makes us one of the largest fiber-based CLEC in the state of South Carolina and continues our investment in North Carolina,” he adds. “Spirit’s investment in these technologies and infrastructure is only part of the story, though. At the end of the day it’s less about technology and more about people,” maintains Keane. “Our people, our owners, and their customers. In order to be forward-thinking, you have to be innovative and pay attention to technology. “But before you can successfully do that, you have to do right by the people. That’s what we’re doing at Spirit Communications, and that’s what we’re doing for the Carolinas.” Andrew Rusnak is a Greater Charlotte Biz freelance writer. Some images provided by the company.
Spirit Communications LLC 1500 Hampton Street Columbia, S.C. 29201 Phone: 800-411-8157 Principal: Robert M. (Bob) Keane, President and CEO In Business: Since 1985 Employees: Over 225 Recognition: Among the top 35 privately-held firms in S.C. Coverage: Headquartered in Columbia, S.C.; serves thousands of customers in over 150 service locations throughout South Carolina, North Carolina and Georgia Business: Provider of voice, data, Internet and fiber optic solutions, along with a full suite of cloud services to commercial businesses and government agencies across the Southeast enabling customers to transform their operations through fast, stable and secure offerings that flex with business demand. www.spiritcom.com
Global Leaders Seek Charlotte Businesses Ambassadors, Diplomats and Distinguished Leaders See Charlotte as Entry to U.S. Domestic Market When world leaders visit the United States, they most often visit Washington, D.C. first. In recent years, Charlotte, North Carolina, has become one of the next most frequented cities to visit. Why? Because Charlotte is home to over 1,000 foreign-owned companies that have chosen to do business in the United States. Not only do international businesses benefit from the camaraderie of other forWACC eign-owned firms, they also benefit President and CEO from the support mechanisms the L.J. Stambuk community provides to help them acclimate and thrive. The World Affairs Council of Charlotte (WACC) is a very integral mechanism in that regard. It was founded in 1983 as an outreach program of UNC Charlotte and its Office of International Programs as a non-profit, non-partisan organization. It is supported by private funding from individual and corporate member dues and contributions. We are pleased to present some of our program highlights. Ambassador of the Czech Republic to the U.S. The World Affairs Council of Charlotte recently hosted Ambassador Petr Gandolovič who shared his perspectives on the relationship between the Czech Republic and the United States in addition to addressing some of the current challenges facing the European Union as it pertains to economic growth, regional conflict, immigration and defense and security. The United States and the Czech Republic formally established diplomatic relations in 1993 following the Gandolovič collapse of the Soviet Union and the subsequent breakup of the Czechoslovakia. Both countries share a mutual interest in working together to strengthen security, advance economic development and democratic values and defend basic humans right. As members of NATO and the EU, the
Czech Republic is an important ally in the region through its regular support for U.S. interests. Ambassador Gandolovič also introduced Petr Vasicko into the office of the Honorary Consul of the Czech Republic in North and South Carolina. Director of Rational Middle Energy Series The World Affairs Council recently hosted Gregory Kallenberg, Director of the Rational Middle Energy Series, who moderated a discussion about the future of energy and how it’s changing the world around us. The Rational Middle aims to jumpstart the discussion with a goal of creating change through individual, Kallenberg municipal, corporate and government action. With the need to provide access to energy, food and clean water for a growing global population; economic efficiency; security; and the threat of the effects of climate change inaction, the energy future is a topic that needs to be addressed. Our ability to face these challenges with civil, solutions-based discussions is crucial to finding solutions that will benefit all mankind. Kallenberg pointed out, “We use a lot of energy. The problem Rational Middle is that it affects our world every Energy Series day and many of the costs are not found in the price you pay at the pump or on your monthly bill. Take a look at how energy is changing the world around us and what we stand to face if we don’t start changing our habits.”
Corporate Membership and Support: Will You Invest in the World Affairs Council of Charlotte? Why become a Corporate Member of the World Affairs Council of Charlotte? • Learn about international affairs from foreign government/state officials, renowned authors, and world leaders. • Build professional networks through Council events. • Support international education in the Charlotte community. • Increase corporate publicity through program and education sponsorships. • Reach out to sophisticated and high level individuals in the Charlotte community. • Build, maintain and strengthen client relationships. For more information regarding Corporate Membership with the World Affairs Council of Charlotte, please contact Charlotte Klopp at cklopp@ worldaffairscharlotte.org or 704-697-7759.
World Affairs Council of Charlotte Upcoming 2015 Programs October 1, 2015 ................WACC CEO Series with Duke Energy President and CEO Lynn Good November 9, 2015 ............Partnership Program with Providence Day School, hosting Christo Brand, Nelson Mandela’s former prison guard and longtime friend November 12, 2015 ..........WACC Speaker Series with Peace Core Director Carrie Hessler-Rodelet November 18, 2015 ..........Joint WorldQuest / Academic WorldQuest
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YEAR S
SERVICE OF
CELEB
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MAXIMIZING STUDENT SUCCESS York Technical. One College. Many Opportunities.
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ecognizing 50 years of service to York, Chester, and Lancaster Counties in South Carolina, York Technical College can be rightfully proud. The institution has graduated thousands of students with education and training towards advanced learning and career placement, making the college a critical partner to the education, industry
by zenda douglas
and business communities in the area. Since opening in 1964 as the York Technical Education Center with 60 students enrolled in seven programs all housed in one building, the college has grown to serve over 9,000 students annually enrolled in 89 programs spread out over 15 buildings including several off-campus centers. In 1974, the name was changed to York Technical College. 31
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“We’ve had a resurgence in the manufacturing sector in the United States. In the next 15 years, most jobs created will require a two-year degree. Manufacturers are looking for skilled employees. That’s our bread and butter; that’s what we do.”
York Technical College Program & Career Guide
Greg Rutherford. Ph.D. President York Technical College
Mission is to Maximize
Dr. Rutherford on Job Ready
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The college’s mission is to build the community through maximizing student success, and its administration is ever-focused on driving forward to meet upcoming needs. “As president and chief executive officer, my purpose and responsibility as well as my personal mission are to make sure we are always getting better,” affirms Greg Rutherford who has led the college since 2007. “If students don’t get jobs or transfer to the university, I don’t personally feel that we’ve been successful,” he continues. “First, we have to recruit them. Then, we exhort and encourage them to finish their programs because we know that finishers do better than those who don’t. Finally, we help them find a job in their field of study.” York Technical College boasts a 93 percent placement rate, according to Rutherford. That’s the simple version. In reality, maximizing student success has many more benchmarks including meeting all the standards and regulations of accrediting organizations, the Federal Department of Education, and the state of South Carolina; numerous financial benchmarks; student recruitment, retention, completion and placement rates; building the college’s foundation and raising money; and metrics on pass rates on licensure and certificate programs. York Technical College’s Master Campus Plan, too, offers insight into the commitment by the school to grow into the future and maintain a state-of-the-art environment. Spanning almost 10 years, the plan calls for a total investment of $120 million to be spent on new building projects. Funding, which will come through contributions from individuals and corporate donors as well as some appropriations from state
and county government, will provide for road and traffic flow projects, a transformation of the Ann Springs Close Library to a “learning commons,” and the construction of an “enterprise campus,” where collaborations can take place between students, instructors and community partners. A business incubator is expected to be an integral part of this new campus. “I feel very blessed to have the
support from the local community, our business community and elected officials,” remarks Rutherford. “Without them and their support and help to maintain this mission, it would be extraordinarily challenging.” Still, Rutherford considers “making ends meet” among the biggest challenges. “Most of our budget is made up of salaries and benefits,” reports Rutherford. “You can’t automate it. There has not been developed an artificial intelligence that can take over teaching. We’ve tightened up in all the places where there is low and medium hanging fruit. It doesn’t get less expensive.” The state of South Carolina provides roughly 15 percent of the school’s budget; approximately $5 million this year as opposed to 50 percent or $10 million in the year 2000. “Funding has been slashed,” continues Rutherford. “We are now more dependent on students, and consequently on financial aid which comes with a plethora of requirements, rules and regulations.” Despite these challenges, York Technical College has a stellar record among technical and community colleges. The school enrolled 7,000 credit-seeking students last year and served upwards to 16,000 including
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continuing education students and those in corporate training programs. Several off-campus centers are set up to serve the surrounding area and specific interests. These include the Chester Center, Kershaw-Health Springs Center, Indian Land Center, a Construction Trades Facility, a Heavy Equipment Operator Facility, and a Truck Driver Training Facility.
“We’ve had a resurgence in the manufacturing sector in the United States,” Tarplee points out. “In the next 15 years, most jobs created will require a two-year degree. Manufacturers are looking for skilled employees. That’s our bread and butter; that’s what we do.” The college uses a “pull-through” approach, described as starting with the employer and working backwards to pull students through. “We’re connecting supply and demand,” explains Tarplee. An example is the work the college is doing with Schaeffler, a Fort Mill manufacturer of bearings for the automotive industry, through a program called Tech Scholars. “We recruit students for that program and they have a job with Schaeffler,” says Tarplee. “Students get their college paid for and a shot at a full-time job. Schaeffler gets to test drive employees. We currently have 60 or more students in that program. “We also support economic development efforts in the area,” continues Tarplee. “In addition to creating a skilled workforce, we can leverage our resources to attract companies.” York Technical College allows manufacturers to use their facilities for training. The Okuma Center, in particular, gives students and workers a place to learn high-end manufacturing processes. Okuma is a leading machine tool manufacturing company. “They chose to enter into a partnership with us many years ago and had us training their North American employees,” comments Tarplee. “Now, they send employees from around the world; they fly into Charlotte, stay in Rock Hill and train and fly back.”
“We use a pull-through approach, starting with the employer and working backwards to pull students through. Through a program called Tech Scholars, we recruit students to the program and they have a job with a company. Students get their college paid for and a shot at a full-time job; the company gets to ‘test drive’ employees.”
York Technical College Campus Tour
The Pull-through Approach
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York Technical College serves the community and state by preparing students and workers for jobs being made available in the region. “We are the institution that puts people to work,” says Marc Tarplee, vice president for Business Affairs and interim chair of the industrial, engineering, and technical division of the college.
june/july 2015 | greatercharlottebiz.com
According to Rutherford, the college has had as many as 800 students involved in workplace learning through cooperative work programs. “We work with all the major manufacturers in York County. Another example would be Meritor, a supplier to the auto industry,” says Tarplee, explaining that most of the work falls in York County because it is the most populated of the three counties the college serves and has the closest proximity to Charlotte. “We are now working on a huge project in Chester County with Giti Tire in concert with Ready SC, a division of the S.C. Technical College System,” continues Tarplee. “They are ready to break ground on a half-billion dollar facility that will put 1,700 people to work. That’s just the tip of the iceberg. Other supplier companies will move in to support that effort. “We’ve also housed a company, Winbro Technologies, which, upon coming to Rock Hill, could not find a suitable building. By providing space, they were able to select Rock Hill. Now, five years later, they are moving into their own facility.”
The Logistics of Education Asked about the differences between York Technical College and other community colleges, Rutherford says it’s mostly a matter of geography. “We are all tasked with—but we are locally situated to be sensitive to—the needs of the area and the constituency we serve. That’s the value of a community college. We morph, adapt, adjust, recreate, and repurpose for whatever that community wants and needs.” Tarplee comments that although the general education/university transfer side of operations is most profitable, York Technical College has maintained a strong emphasis on technical programs because they are in such high demand and complementary to the state’s economic development efforts: “We’ve stayed close to technical, which is more expensive to run, but the right fit to our community right now.” In any given year, about half of York Technical College’s incoming students will require some type of remediation study. Tarplee explains, “Ours is not a traditional student population—our average age student is 27. These aren’t students who’ve just graduated from high school. If you don’t use math, for example, you will lose skills. So some remediation will be necessary.” Tarplee also cites challenges with what is being taught in K-12 schools: “It is not always in alignment with our expectations.” Proximity to the North Carolina border and
the city of Charlotte is impactful. Interestingly, there are both advantages and disadvantages. “It is helpful to be near a major metro center with all that it brings—a transportation hub, financial hub, and also culture,” points out Tarplee. “When companies are looking to relocate, there is consideration to the environment they are bringing their employees into.” But it’s a dual-edge sword. Real estate values are higher because of proximity to Charlotte and there is a certain amount of congestion. “Plus,” says Tarplee, “we are not empowered to recruit students from Charlotte because the tuition is often prohibitively higher for N.C. residents. There is a whole pool of students we can’t effectively reach.” Economic development, spurred in part by the efforts of York Technical College, has changed York County over the years. “The nature of work in York County has changed. It used to be blue collar and textiles. Now it is primarily driven by white collar knowledge and technology workers,” comments Tarplee. “In general, this has led to a rising tide of higher wages and affluence. The county has grown somewhat wealthier.”
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Talented Leadership Rutherford is serving his eighth year as president of York Technical College. Prior to joining the College, he worked in the North Carolina Community College System for 19 years. He is proud to say that he began my college education at a two-year institution just like York Tech, Asheville-Buncombe Technical Community College in Asheville. “Earning my associate degree built a strong foundation for me to accomplish my personal and professional dreams,” says Rutherford, who went
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greatercharlottebiz.com | june/july 2015
on to obtain his B.S. in management from UNC Asheville, M.B.A. from Western Carolina University, and Ph.D. from the University of Texas at Austin where he completed the Community College Leadership Program. In 2009, Rutherford was recognized as a distinguished graduate of the Community College Leadership Program by the University of Texas at Austin. Currently, Rutherford is involved in and serves as a leader in numerous economic development, governmental, educational, chamber, and other state and regional groups. Nationally, Rutherford serves on the TransAtlantic Technology and Training Alliance where he has presented at their Annual Conference in Denmark. Rutherford describes himself as having a passion for the mission of York Technical College. He acknowledges that, in his position, he deals largely with financial and legal issues. “I am first a business person,” he says. “I’m a business person who fell in love with the mission and outcomes of the community and technical colleges.” Rutherford reports to the York Commission for Technical
“We also support economic development efforts in the area. In addition to creating a skilled workforce, we can leverage our resources to attract companies.” Education, appointed by local delegations and the governor. Tarplee came out of the industrial world. A graduate of the University of South Carolina, Tarplee oversaw the manufacturing and
distribution operations for a $100M chemical specialties manufacturer with five facilities located across the eastern U.S.A. and headed up a specialty lubricants manufacturer. He began as dean of the Industrial and Engineering Technologies Division at York Tech, becoming associate vice president for academic affairs, before his present position. Tarplee describes himself as “a doer.” He says, “My objective is to provide leadership that adds value to my organization and its customers.” Tarplee wants the public to know that that the college is not just a place to learn carpentry or low-end skills. “We are operating in a more highly skilled environment. We’re so much more than a vocational school, and definitely not your father’s technical college. We basically have programs that will put you to work for a good wage or send you forward to a university. “We get people ready to move on,” says Tarplee. “We have generally far outstripped the public perception of us.” Rutherford offers advice to all those looking for a better way, whether a prospective student or an employer: “Give your local community or technical college a close look because there is a solution there for you.” Zenda Douglas is a Greater Charlotte Biz freelance writer. Photos courtesy of Corey Nolen Photo.
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York Technical College 452 South Anderson Road Rock Hill, S.C. 29730 Phone: 803-327-8000 Principals: Dr. Greg F. Rutherford, Ph.D., President and CEO; Marc Tarplee, Ph.D., Vice President, Business Services; Melanie Jones, Vice President, College Advancement Established: 1964 Member: South Carolina Technical and Comprehensive Education System Enrollment: 7,000 credit; up to 9,000 continuing education and workers; open admissions policy for qualified students Curriculum: Engineering technology, industrial technology, information technology, business, health sciences, and human services; transfer program to senior colleges and universities Business: Two-year higher education institution offering a variety of associate degrees, diplomas, and certificates; offers a comprehensive selection of corporate and continuing education courses, personal interest, and business and industry growth. www.yorktech.edu
OF INTEREST: Get LinkedIn or Be LeftOut
AFTER YOU’RE CONNECTED ON LINKEDIN:
FOLLOW-UP IS CRUCIAL
Y
ou have spent significant time uncovering and connecting with prospects for collaboration, potential employees and new business opportunities on LinkedIn. You’ve met or asked for a meeting, a phone call with a promise to follow up at a later date. Time passes and you get caught up in your day-to-day workflow. Before you know it, that person who you were intrigued with fades from view and your mind. One day you remember that you forgot about an opportunity that seemed promising back when you connected. It was exciting but sadly, it’s gone. There’s an easy way to keep track of your communication with LinkedIn connections while knowing all this information is visible only by you. You have the ability to: ›› Remind yourself what you spoke about during your first and subsequent conversations. If you were introduced by a shared connection, you would know by whom and what the circumstances were that brought you together. ›› Send reminders to yourself to get back in touch with an individual and why you want to do so. By doing this you are taking full advantage of a customized scheduling program. ›› Create a custom tag to classify the individual for communication purposes.
The Relationship Tab When you first connect with an individual on LinkedIn you are able to create all the prompts and reminders described previously using the Relationship Tab imbedded into your first level connections’ profile. The tab appears next to their Contact Tab, which resides just below their personal information section at the top of their profile page. Here’s how the sections work.
Note Section In this section, maintain a chronological reference sheet of your communications with the individual. Never worry again about what was said and where you kept track of your conversation. Remind yourself of the initiatives you discussed and next steps. Any personal information about the individual can be managed in this section as well. You define the notes you wish to maintain and be confident it is all based on your connections’ profile.
Reminder Section LinkedIn starts this section with a friendly “What should we remind you about?” with space to prompt you what the subject is, when you are notified. This is a CRM (Customer Relationship Management) tool. Reminder allows you to designate prompts including one day, one week, and one month or even recurring. Let’s say you know you want to stay in touch every three months? The recurring section allows you to designate this time frame along
with every six months, every year and even on a customized basis which allows for any number of days to be reminded.
How You Met You met each other at a networking event; a social event or someone introduced you. Maybe you had had one or more things in common which precipitated your meeting. Include this in How You Met. If a connection on LinkedIn introduced you, simply by typing their name in the “Who Introduced You” section of How You Met, LinkedIn will automatically populate their picture and a link to their profile. Imagine when you and this connection are collaborating and achieving great results together, you will instantly know who was at the forefront of this.
Tag Section Have we left the best for last? Yes! Until you Tag your connections, they all appear to be the same. Once you Tag them with a customized label of your choice, you’re now able to compartmentalize each individual into as many categories as you’d like. This becomes incredibly important when you wish to send several individuals the same message. You may Tag a single connection with as many custom labels as you wish. Each Tag will now appear as part of the person’s profile (again, only you will see this) on the same line as their Contact Info and Relationship Tabs. Examples of typical Tags are: Prospects, Clients, Colleagues, Alumni, etc. Finally, all communication with your connections, including messages sent via LinkedIn, is now imbedded in the Relationship section. If all this seems a little abstract to you and you would prefer to see all this come to life, we have created a short video designed to take you through all the elements described here. Go to https://www.youtube.com/ watch?v=XMgmJ_NC-uM for our tutorial or use the QR code. The Relationship Tab is an underutilized, misunderstood function of LinkedIn. It will provide LinkedIn Relationship you with the command you may need to manage Tab Tutorial your valuable LinkedIn connections. Your success is predicated on your ability to stay in touch, keep tabs of your connections and communicate with them in a timely fashion. 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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olutions Provides Comprehensive Facility Services 38
june/july 2015 | greatercharlottebiz.com
BUILDING SOLUTIONS TOGETHER
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MSS Solutions Brochure
by andrew rusnak
here’s no doubt that the Charlotte region has changed, grown, and become something amazing over the past 40 years. From its beginnings as a small trading hub in the southeast to its current state as an up-and-coming destination for global commerce, Charlotte is growing at a pace that few could have imagined. What this means is a greater need for infrastructure, a greater need for residential space, a greater need for commercial space, and a greater need for industrial space. Combined, all of this means a greater need for MSS Solutions, LLC (MSS), headquartered in Charlotte.
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Hunter Edwards President and CEO MSS Solutions, LLC
“We’re here to provide services and solutions for our clients, and that’s measured, in my opinion, by repeat business. We’re driven by our clients’ needs, and we can tailor-fit a solution, whether it’s a new project or an existing building.”
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Founded in 1996 as Mechanical Systems & Services, Inc. by President and CEO Hunter Edwards along with six others, the company currently provides a range of building solutions including commercial and industrial HVAC services, building automation systems, fire and security systems, capital projects, which includes installing mechanical and other systems for new and existing buildings, and project management. “Our vision is to be the leader in our target segments,” says Edwards. “My leadership position depends on what’s going on within the company. I do anything from recruiting to business development to working on client relationships. I’m involved in operational decisions when the team needs me, but I have
june/july 2015 | greatercharlottebiz.com
leaders for each of our respective groups that I rely on to get the job done on a daily basis. “One minute I might be working on a financial program for a client, the next, I’m working on our software needs,” Edwards continues. “It’s different every day and I often wear a number of different hats, but my passion is ultimately serving our clients and that’s what I’m committed to doing.” In addition to its overall core competencies, MSS also specializes in engineering, design, fabrication, and installation services. Whether you need a customized fire alarm system, security system, HVAC solution, or other building system, MSS can handle it. In fact, MSS clients also enjoy the easeof-use of allowing MSS to contract out to a third-party monitoring partner to handle security and fire alarms. As MSS is an authorized Honeywell, Notifier and ProWatch Systems representative, this makes it easy, efficient and affordable for clients seeking new installs and retrofits for such systems. “We design, fabricate, and install fire alarm systems along with security and CCTV solutions, all of which we contract monitoring for,” explains Edwards. “Building systems are our business. If it’s a system within an office building—regardless of height—or hospital or industrial facility, we have the capacity to perform. “We also have a project management group that consults with clients to help them on their design, procurement and construction practices. It’s more of a construction management fiduciary responsibility that we have within that group, the goal of which is to find the right ways to get mechanical engineering and installation completed at the right price.” In most project management cases, the process for MSS services begins with the end customer. He or she will usually have drawings for the work to be done. After preliminary work is completed, MSS will be consulted regarding logistics and timelines. From there, MSS professionals set to work
installing control systems and more using the latest in technology.
Blueprint for Customer Satisfaction “We’re here to provide services and solutions for our clients,” affirms Edwards, “and that’s measured, in my opinion, by repeat business. We’re driven by our clients’ needs, and we can tailor-fit a solution, whether it’s a new project or an existing building. “Our mission is to be the single source provider of comprehensive facility solutions, meaning that our customers have one partner for all of their facility needs. We believe in long-lasting relationships through a relentless focus on customer service.” When it comes to client relationships, MSS is dedicated not only to communication, but also to follow-through. In virtually any type of industry, it can be easy to lapse into the ability to give lip service, but MSS’ top leadership understands that brand loyalty cannot be achieved without following through. Edwards notes, “It always goes back to the client relationship. I feel we do a good job of listening to the client—what they need—and then our team provides a solution that fits. We don’t have a one-size-fits-all attitude. I think that the closer we get to the client, the more we understand their needs and what their ultimate goals are. We strive to deliver the best possible solution to our clients.” “In the end,” he concludes, “it’s a listening process.”
“Our mission is to be the single source provider of comprehensive facility solutions, meaning that our customers have one partner for all of their facility needs. We believe in long-lasting relationships through a relentless focus on customer service.”
With approximately 300 total employees across the Carolinas, including 200 in MSS’ Charlotte home, it’s important to focus on brand loyalty in order to grow. Edwards explains, “We build brand loyalty by doing
Southpark Referral Partners
what we say we’re going to do and by understanding clients’ needs…by making sure that we provide a solution and follow through. “Word-of-mouth and positive results go a long way. On-time, withinbudget…that’s a pretty simple marketing plan. You can fight hard to overdo it, to make things more complicated than they need to be. We seek out effective, efficient solutions and that’s it.” MSS also creates the foundation for its marketing by offering training for both new and experienced employees. With a commitment to training, the company offers a specialist who is dedicated to coordinating education and safety training programs, including lunch-and-learns, as well as industry presentations and experienced professional oversight. On most jobs, MSS has a project manager overseeing all aspects of a job, and then a field supervisor steps in. From there, another layer of oversight is added in the form of a superintendent who manages the field staff on a particular project.
networking group, we pride ourselves on NETWORKING...... providing solid referrals to our members which in As members of the Southpark Referral Partners turn equates to closed business.
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Virtual Administrative Services Emma Farmer 704-256-4717 emma.farmer@cybertary.com
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On the service side of things, a service manager and team leaders manage a handful of professionals, and these leaders are responsible for performance throughout day-to-day activity, from scheduling to following up with the client to ensure satisfaction. Edwards clarifies, “All of our protocols are designed to ensure client satisfaction. Different disciplines are measured differently. An HVAC mechanic that’s running a welding machine is measured differently than an area manager. However, we also have incentive plans for each different group, and those are based on customer satisfaction and group performance.” Today, MSS is focused on its customers with both the diversity of product lines it offers and the geographical span across the Carolinas in all lines except project management, which covers national and international work. MSS now has locations in Charlotte, Raleigh, Winston-Salem, Asheville, N.C., and Myrtle Beach, Charleston and Greenville, S.C., and plans on moving into Columbia. The Myrtle Beach and Charleston offices came from an acquisition of Thompson Mechanical earlier this year in order to better serve the coastal areas of South Carolina.
Building Positive Results
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MSS has had its share of challenging projects. At 400 South Tryon Street, they were tasked with upgrading a cooling tower and chiller equipment in a busy uptown Charlotte Class A office building during night and weekend hours. The project required additional steel support, traffic and large crane
june/july 2015 | greatercharlottebiz.com
“Word-of-mouth and positive results go a long way. On-time, withinbudget…that’s a pretty simple marketing plan. You can fight hard to overdo it, to make things more complicated than they need to be. We seek out effective, efficient solutions and that’s it.” management, removal of concrete block to accommodate larger sized chillers, and maintenance of climate-controlled rooms. At Lake Norman Regional Medical Center, MSS upgraded an existing BAS Controls computer due to obsolescence, installing the Honeywell Niagara System on hospital IT infrastructure to comply with current technology while utilizing the existing field controllers and sensors. For an international banking institution, MSS integrated a new Web-based controller system from Tridium and American AutoMatrix to control temperature and lighting systems across more than 3,500 branch locations, among other things, reducing annual electrical energy consumption by 15 percent. At Presbyterian Hospital’s central energy plant MSS added new boilers and cooling towers, rerouted the chilled water pipe, replaced pumps and added generators without downtime. The project was delivered seven percent below the estimated cost. For Lowe’s corporate headquarters in Mooresville, MSS was tasked with constructing a new 4,200-ton central energy plant,
and fabricating and installing HVAC, piping and plumbing systems for a seven-story, 750,000-square-foot office tower, meeting LEED requirements. For Arvato Digital Services in Weaverville, MSS provided automatic chiller staging for runtime/demand control and decreased energy use of the entire chiller plant operation by installing a new Honeywell/WEB Solutions system and integrating the existing proprietary controls platform into the new Webbased controls system. MSS also installed a Honeywell system for Mission Hospitals Dogwood Expansion. At Duke Energy’s College Street Data Center, MSS integrated multi-vendor controllers and software for the entire building with zero downtime. The work was extensive as MSS needed to engineer, design and install a single Honeywell/WEB Solutions system to interface to all existing and new controls in the building and provide future expansion capabilities. For another international banking concern, MSS installed state-of-the-art energy management and fire management systems incorporating strategies to achieve a LEED Gold rating and meet NFPA requirements while maintaining an aggressive construction schedule. At CMC University Hospital, MSS was tasked with adding new boilers and cooling towers, rerouting the chilled water pipe, replacing pumps and adding generators. Despite the fact that they had to demolish the existing steam and chilled water plant and construct a new steam and chilled water plants without downtime, the project was delivered seven percent below the estimated cost. At a regional data center in Maiden, N.C., MSS upgraded the generator rooms, data halls and high-temp chiller rooms of a 400,000-square-foot data center on a fast track construction schedule and exceeding the expected construction schedule while working in a crowded environment.
Charlotte Makes the Difference “I grew up in Charlotte, I went to school in Charlotte, and I’ve worked my whole career in Charlotte, says Edwards, “so I have a bias. I just think it’s a great area. It’s close to the mountains, it’s close to the beach, and it’s a major employment center, known for banking, energy, health care, and data centers. This helps drive the business climate in the market.” The education system in North Carolina has also been attractive to MSS. With top rank colleges in the Carolinas, seeking out qualified professionals is in close proximity, and the
quality of life and economics of the area have been attractive to many businesses. MSS has already partnered with major engineering universities such as UNC Charlotte, Clemson, and N.C. State, and it continues to maintain relationships with various community colleges across the region. In fact, MSS has provided financial aid to employees who work part-time with the company while also seeking out higher learning and maintaining a specific grade point average. “Our senior technical staff and leadership are all very experienced. For new hires, we tend to bring folks in who are ready to grow. In the sales world we look for folks who demonstrate the capability of managing customer relationships.” Going forward, MSS recognizes the everadvancing and ever-changing tide of technology. As digital is advancing each and every day, MSS is continually investing to stay ahead of the curve. On the controls side of building automation, security, and fire safety systems, MSS is currently integrating wireless backup systems that work in conjunction with landline and cabled monitoring. However, the company’s biggest challenge in the Charlotte region is finding qualified
From France, With Love
technical professionals for certain jobs. This challenge is one that is industry-wide, Edwards says. “With our training and compensation plans in place, we are a great home for qualified talent,” he maintains. “From a growth perspective, we want to continue to grow organically through business development, and we’re going to look strategically to purchase in different markets, if it makes sense and if there’s an opportunity, and just continue to train our people to be the best they can be. “We have over 100 projects taking place at any given time. From small to large, our projects are a constant source of pride for MSS and our team. One project may be a two-day job, whereas another may last for 18 months or longer. “We stay busy and we fight to protect our customers’ interests,” Edwards sums it up. “Our success is our people. The chain is only as strong as its weakest link. Over the past several years, we’ve worked hard to recruit and develop qualified professionals within the organization to lead us into the future. “We make sure to involve not only our client, but also our team, to ensure that everyone is on the same page, everyone involved has
Doesn’t
Space
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Perfecting
It Takes Care of It
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ust last year, France’s largest privately owned design firm opened a U.S. headquarters in Charlotte. Team Créatif USA, located uptown in the Carillon Building at 227 W. Trade Street, brings with it a powerhouse of branding and package design from working with some of the world’s leading brands. “The agency was founded in 1986 by Sylvia Vitale Rotta and Nick Craig, two designers who met in Paris, France,” explains Team Créatif USA CEO Attila Akat. “The company’s first major brand was Dannon, the yogurt company, and as Sylvia and Nick grew the business, the pet care division of Mars joined our family of clients.”
Attila Akat CEO Team Creatif USA, Inc.
by andrew rusnak
Blum … In the Kitchen and Beyond
lum has been conceiving, developing and building brilliantly functional and ergonomic home storage solutions for over 60 years. Amazingly smooth, superbly damped motion for doors, pull-outs and lift systems combined with outstanding use of storage space is the Blum hallmark. The Blum mission is summed up as “Perfecting Motion.” Their goal is to make the opening and closing of furniture all over the house—but especially in the kitchen—a special experience. The same goes for commercial offices, retail showrooms, hotels and food and beverage outlets. Some of the Blum products include: AVENTOS lift systems, TANDEMBOX pull-out systems, TANDEM runner systems, CLIP hinges and ORGA-LINE dividing systems—all designed to inspire with perfect motion: movement so silent and effortless it has to be seen to be believed.
Team Créatif USA march/april 2015 | greatercharlottebiz.com
[bizprofile]
aking out the trash may seem like a chore, but for Wastequip, it’s big business. The company manufactures many of the common trash cans consumers use every single day, but it also manufactures a large variety of steel containers, compactors, and vacuum truck systems that are used across a variety of industries. “The company was founded in 1989,” explains Wastequip CEO Marty Bryant. “At that time, the focus was on the steel container side of things. But around 2007, Wastequip started to grow larger, integrate, and buy new brands. “Today, Wastequip is the leading manufacturer of waste handling and recycling equipment in North America. We specialize in products, systems and solutions to collect, store, transport, and manage a wide range of waste and recyclables. We’re one of the few companies that manufacture a complete line of both steel and plastic waste handling equipment.”
carts are produced using a patented, stress-free molding technology known as Advanced Rotational Molding, which uses all the superior characteristics of conventional roto molding while enhancing the aesthetic and structural quality of all Toter products.
17 fenix fotography
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A
ccording to the United Nations, 1.2 billion people, or one-fifth of the world’s population, live in areas of water scarcity. It’s a problem that affects every continent and is expected to be an issue for many societies in coming decades. In the United States, drought levels from moderate to exceptional stretch from California to Texas; the Colorado River is starting to run dry in places; and Lake Mead, which currently supplies water for 22 million people, may be a thing of the past by 2021. When most people think of water scarcities, they think of water for household use: water for drinking, showering, washing clothes or watering lawns. What many don’t realize is the essential part water plays in their local economy.
Water as an Economic Driver Water is an economic driver. The agricultural sector most obviously depends on water availability, but so do many other industries. Water supply/ demand imbalances also affect decisions on corporate locations and expansions. In other words, an adequate water supply supports a region’s economic growth. For the same reasons, a growing region requires more water. And Charlotte is growing. With a projected annual population growth rate of 1.98 percent and an annual job growth rate of 3.1 percent, the Charlotte Metro Area (including parts of Upstate South Carolina) ranked ninth in Forbes 2015 list of America’s Fastest-Growing Cities. Water for the people and businesses in the Charlotte Metro Area is supplied by the Catawba-Wateree River Basin extending from the headwaters of the Catawba on the slopes of Grandfather Mountain near Blowing Rock, N.C., to the Wateree River's confluence with the Congaree River east of Columbia, S.C. The Catawba and the Wateree Rivers are essentially one 224mile river that begins in the Blue Ridge
thirst for growth requires managed use
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Blum Expertly Blends Form and Function
MSS Solutions, LLC MSS Fire & Security, LLC Mechanical Systems & Services, Inc. 1001 Tuckaseegee Road Charlotte, N.C. 28208 Phone: 704-372-4344; 877-372-4344 Principal: D. Hunter Edwards Jr., President and CEO Employees: Approximately 300 employees; 200 in Charlotte Founded: 1996 as Mechanical Systems & Services, Inc. Locations: Headquartered in Charlotte, other locations in Raleigh, Winston-Salem and Asheville, N.C., and Myrtle Beach, Charleston and Greenville, S.C. Business: Providers of commercial and industrial HVAC services, building automation systems, fire and security systems, capital projects and other facility solutions. www.msssolutions.com
by barbara fagan
Ta lk
by andrew rusnak
by andrew rusnak
Andrew Rusnak is a Greater Charlotte Biz freelance writer. Some images provided by the company.
Water Wise
Wastequip
Motion Workflow
TEAM CRÉATIF USA PRODUCES APPEALING BRANDING AND PACKAGING
the same vision, and that we are delivering the same message, across the board.”
Trash Talk
Here in this Toter brand manufacturing facility in Statesville, N.C., the Advanced Rotational Molding manufacturing process literally rotates the product within its mold, eliminating built-in stress and resulting product weakness associated with injection molded products.
Advanced Rotational Molding Process
Toter Bear Tight Cart
january/february 2015 | greatercharlottebiz.com
greatercharlottebiz.com | january/february 2015
Mountains of western North Carolina and flows through the Charlotte metropolitan area into Lake Wateree in South Carolina, 30 miles northeast of Columbia. The name of the river changes to the Wateree River in Lake Wateree and eventually joins with the Congaree River upstream of Lake Marion. There are 11 major lakes or reservoirs in the basin and the dams that form these lakes have a major impact on the flow of the river. Largest of these in terms of usable storage capacity are Lake Norman, Lake James and Lake Wateree which provide recreation, water and hydroelectric power for the area. Duke Energy is the managing authority for the reservoirs and 13 hydropower stations (Catawba-Wateree Hydro Project) under a license from the Federal Energy Regulatory Commission (FERC). The licensing process defines how the basin will be managed over the license term, which could be up to 50 years. During Duke Energy’s re-licensing process with FERC (the license, issued in 1958, expired in 2008), a water supply study uncovered a critical problem. Namely that, without intervention, given the current rate of growth in this region, the water demands on the Catawba River would reach maximum capacity by the year 2048. It was in conjunction with the re-licensing process, in concern for this situation, that the Catawba-Wateree Water Management Group (CWWMG) was formed in 2007.
Your Business is Unique!
The CWWMG Cooperatively Works to Ensure Our Water Supply Meets Future Demands
Catawba-Wateree Water Management The CWWMG is a 501(c)(3) non-profit formed to identify, fund and manage projects that will enhance the capabilities of the Catawba-Wateree River to provide water resources for human needs such as water supply, power production, industry, agriculture and commerce, while maintaining the river’s ecological health. The CWWMG has 19 members; one member representing each of the 18 public water systems in North and South Carolina which rely on the 4,750-square mile river basin, and one member representing the utility company Duke Energy Carolinas, LLC, which built the reservoir system beginning in the early 1900s through the 1960s.
Without intervention, given the current rate of growth in this region, the water demands on the Catawba River would reach maximum capacity by the year 2048.
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march/april 2015 | greatercharlottebiz.com
greatercharlottebiz.com | march/april 2015
Now, with the US Airways and American Airlines
by zenda douglas
Your customers and potential clients choose your business through your marketing materials.
› Great design makes
merger underway to create the world’s largest airline, and with the Norfolk Southern Intermodal Facility at the airport becoming operational late this year, Charlotte Douglas’ role will expand from being the largest hub for the nation’s fifth largest airline to a global hub for the world’s largest airline and one that can be
up to the East coast because of the expansion of the Panama Canal (to be completed next year), Charlotte Douglas is poised to become an “inland port” for world trade. It is no wonder the city of Charlotte and the North Carolina Legislature have recently begun battling for control of this crown jewel.
Orr is responsible for all aspects of the airport’s operation. Orr is a native of Charlotte and a 1962
A Better Approach
graduate of North Carolina State University where he received a bachelor degree in Civil Engineering. From 1962 until 1975, he operated his family-owned land surveying business. In 1975, Orr joined the City of Charlotte’s Aviation Department as a staff engineer and was named Aviation Director in 1989.
AndujAr ConstruCtion’s
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Combined Benefits The compelling reason for a merger of this kind is the rapidly changing medical environment towards protocol care; that is, standardization. Protocol care requires a certain level of sophistication that is difficult to provide in a smaller environment. “Protocol care provides the best quality and makes sure nothing falls through the cracks,” says Cohen. Most of the established protocols for urol➤ ogy are designed by the American Urological Association.
T
by zenda douglas
Andujar has taken his talent and put it together with a “Never say no” mantra to build a multi-million dollar commercial construction business that has successfully weathered the economic storms that have impacted the building industry over the past several years.
m ay 2 0 1 1
Designing a Business Based in Charlotte, Andujar Construction is a full-service design+build commercial contracting company offering services ranging from feasibility studies, design adaptation analysis, extensive value engineering through the complete building experience. The company is licensed to work in North Carolina, South Carolina, Virginia, Georgia, Tennessee and Arkansas, and will soon be licensed in Alabama. Since 1994, it has focused primarily on office, medical, restaurant and retail buildings, although Andujar emphasizes that he doesn’t like to be pigeon-holed into one niche.
TO THE
“We’ve done hundreds of office builds and upfits—all types. I love to do base building work and also to build out the interiors. A building is a building is a building—sticks, bricks, concrete, electrical and mechanical, whether the sign on the outside is medical or retail.” Examples of completed works include Colony Professional Center, The Arbors, Baxter Place, multiple Auto Bell locations, over 15 daycare facilities and over 200,000 square feet of retail space.
~Michael R. Cram M.D.
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c o n s t r u c t i ve c a t a ly s t fo r c re a t i ve c o n s c i o u s n e s s
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ACCESSIBILITY
Photo: Fenix Fotography
story forts. I’ve always been able to use my hands in ways that I didn’t need to learn from other people,” says Andujar, owner of Andujar Construction, Inc. “Construction just made sense to me from day one.” 1927 South Tryon
Competitive “bid and build” systems often result in delays, change orders, and cost overruns, making this approach a risky choice for owners. Andujar’s Design+Build Approach allows for design quality, while controlling costs and schedules, ensuring timely completion of projects.
“We cover a very large swath of the region. Between the seven divisions, we take care of about a quarter of a million patients.”
With the issue of jobs reigning supreme in the minds of business, government and the american family, charlotte Works has just one thing on its agenda—getting qualified people into suitable jobs.
He says his management strategy hasn’t changed from 24 years ago: “We decided that was about
Never-Say-No approach SucceedS
o say that Ken Andujar has a natural affinity for building is an understatement. “When I was nine years old, I used to go into the woods and build two-
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(l to r) Kenneth Andujar Owner and President Anthony Andujar Jr. Vice President Andujar Construction, Inc.
july 2013 | greatercharlottebiz.com
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educate empower engage
Successful Leadership T. J. “Jerry” Orr is the chief executive of Charlotte Douglas International Airport. As Aviation Director,
Carolina Urology Partners Wraps Its Offices Around the Community
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greatercharlottebiz.com | july 2013
WORLD
Visionary Jerry Orr Puts Charlotte Douglas In Play
providing the highest level of service at the lowest possible price. So that’s how we structured the program, and that’s how we’ve always run the program.” Eric Spanberg of the Charlotte Business Journal
by jim froneberger
captures the “plainspoken visionary’s” personality regularly in his news columns. One example: “At
hen Chiquita Brands International was looking for a new headquarters location, one of the primary reasons they chose to
71, Orr remains blunt and spry. His cryptic sense of humor is a constant, as demonstrated by his relish for telling CEOs and civic groups the airport is spend-
move to Charlotte was Charlotte Douglas International Airport. With direct flights to many of Chiquita’s main business centers in Europe and Central
ing money ‘like a bunch of drunken sailors.’ The truth, of course, is anything but.” Or his description to Spanberg of running the
T. Jerry Orr Aviation Director Charlotte Douglas International Airport
and South America, Charlotte was a perfect fit. That scenario has played out any number of times, with
airport: “We look at it like we’re running an infrastructure platform that is publicly owned and
and refined unique solutions to challenges in an ever changing industry, resulting in an air transportation facility with continued airline growth that is one of
Charlotte Douglas figuring sizably in corporate decisions to move to the Queen City as well as event planners to host in the city. As the largest connecting hub for US Airways, Charlotte may have
operated without any cost to the public, which is a pretty good deal. We run it very much like a business. We don’t like to tell people ‘no’; we don’t like to
the most cost-efficient airports in the world. Orr also developed the CLT Air Cargo Center and has led the extensive development of corporate avia-
the best air service of any city its size in the world. Charlotte business and leisure travelers benefit from over 700 daily nonstop flights to over 100 cities in the United States, plus 35 more around the globe. It
make people mad. We like to find common ground, knowing that if we make them successful, it will make us successful.”
is the 6th busiest airport in the world in aircraft movements, and is 11th nationwide and 25th worldwide in passenger traffic. Without a doubt, Charlotte Douglas has been a key driver of economic growth for the Charlotte region over the last three decades. According to UNC Charlotte’s Center for Transportation
Although the 71-year-old hints from time to time about his imminent retirement, talking about
the establishment of the airport-based intermodal facility, connecting four modes of transportation—air, rail, sea and highway—in one location, transforming
how much he enjoys picking oranges from the tree outside his house near Charleston, when asked point-blank about retiring in 2013, he responds in his
Charlotte into a major global freight center. Voted Charlotte Business Person of the Year 2012 by the Charlotte Business Journal as man-in-charge of
Policy Studies, the airport contributes nearly $10 to 12 billion in annual total economic impact to the region, and more than 100,000 jobs are either directly or indirectly tied to the airport
usual taciturn style, “No. Maybe another year.” Known for his unique style and fiscal stewardship, Orr is respected as a visionary in aviation by
and its services.
leaders in the industry. During his 38-year tenure at Charlotte Douglas, Orr has developed, implemented
what has become an airport of international distinction and one that is vital for keeping and recruiting companies and jobs to the region, he is noted for being “off limits” to political rhetoric and none too keen on excessive supervision.
Focuses on the Development oF a Globally competitive WorkForce For charlotte area employers
tion, resulting in the locating of seven Fortune 500 corporate flight operations at CLT. He has spearheaded
april 2013 | greatercharlottebiz.com
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W
by zenda douglas ith the issue of jobs reigning supreme in the minds of business, government and the American family, Charlotte Works has just one thing on its agenda—getting qualified people into suitable jobs. To
accomplish this, however, means spending a great deal of time and effort working and collaborating with businesses and organizations, municipal governments and schools and colleges to develop a globally competitive workforce for employers in Charlotte and Mecklenburg County. “We’ve just celebrated our first anniversary rebranded as Charlotte Works,” announces Steve Partridge, president and CEO of Charlotte’s newest one-stop, which is a consolidation of former offices. The 501(c)(3) organization was established in 1998 as the Charlotte-Mecklenburg Workforce Development Board with the passage of the federal Workforce Investment Act. As in other states, federal funds are provided to the governor’s office and channeled through the Department of Commerce and down to local levels. In 2012, Charlotte’s Workforce Board was rebranded as Charlotte Works. “Our goal is to get people out of unemployment and back to work,” says Partridge. “The rebranding was needed to improve employment-related services for both employers and potential employees.” “Previously, we were a much smaller organization and subcontracted out most of our services,” explains Partridge. “We realized that to carry out our mission to upgrade and
Photos: Fenix Fotography
BOTH WORLDS t all started with a phone call from urologist Todd Cohen to his former colleague, Michael Cram. That, in turn, led them to host a meeting with several other urologists having practices in the Carolinas. Gathered around a platter of sandwiches and a batch of fresh ideas, the group spent three to four hours discussing the feasibility of creating a new, combined practice group. Then, the serious work began. It took a year of research, legal strategy and requirements, vetting background and compliance records, contract negotiations, asset acquisition, real estate assessment, licensure and privilege applications, human resources development and a new Medicare identification number, to combine 31 physicians and 200+ employees under one group name with 13 urology centers—Carolina Urology Partners, PLLC. The newly formed entity was official as of March 1, 2011. The ambitious merger of seven independent practices, now called divisions, extends Carolina Urology Partners’ footprint across seven counties in the Charlotte region and makes it the eighth largest urology group in the country. “We cover a very large swath of the region,” says Cram, co-CEO for the group. “Between the seven divisions, we take care of about a quarter of a million patients.” “One of the things we want to communicate to our patients is that the long-standing relationships they’ve had with their physicians and their community won’t be changing,” says Cohen, sharing CEO responsibilities with Cram. “We have different scrubs on and a different sign on the door, but none of the doctors from the practices are changing as a result of this merger.”
Photo: Fenix Fotography
simultaneously accessed by air, rail and highway. Alongside the new trade corridors being opened
All Seven The Best of
expand services, we were going to have to raise the bar on the qualifications of the people hired to deliver these services.” Now, with 24 professional employees, Charlotte Works is directly engaged in a broad array of customized services including coaching, training and networking—all targeted to the ever-changing needs of the Charlotte-area employers.
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by carol gifford
[bizprofile]
Trees
I
Seeing the Forest for the
Wanted: “Everyone has great ideas, but you also need the time, money and patience to see the idea start at the drawing board and make it through the process to the end product.”
harlotte seems like the perfect fit for new city manager Ron Carlee. He spent over three decades in the Washington, D.C., suburb of Arlington, Virginia, but even though he’s been on the job here in Charlotte for just a short time, the Birmingham, Alabama, native already feels right at home.
“I’m definitely a southern boy, there’s no question about that,” he says with
a big grin. “The day we were unpacking, Interim City Manager Julie Burch
~Louis J. Foreman
dropped by with a bottle of champagne. That was a sure sign I was back in the
Founder and CEO
South, because nobody in Washington ‘drops by’ to see anybody, anywhere, anytime. That really told me that I was out of Washington.” Carlee says he stumbled onto the Charlotte opportunity almost by accident. He was working as chief operating officer of the International City/County Louis J. Foreman Founder and CEO Enventys, LLC
Photos: Fenix Fotography
Management Association (ICMA), but had served as Arlington County manager from 2001 to 2009. In the fall of 2012, he ran into an old friend who happened to work for a search firm that was competing for the contract for the Charlotte city manager search. “I was very happy at ICMA and wasn’t job hunting, but I did miss city management a little,” Carlee admits. “The Charlotte job profile had my name all over it. If I were writing a profile for myself, I wouldn’t have changed a word. It even said that experience as a chief operating officer in the private sector would be helpful. When I sent it to a couple of my references, they read it and said, ‘This is your job.’”
17 When their little one spilled Cheerios all over the back seat of the minivan for the umpteenth time, lightning struck and Melinda Shepard described her “spill-proof bowl” concept to her husband Brad, an engineer. With the assistance of Enventys, the bowl-in-bowl technology to prevent spills came to life as the Löopa Gyro Bowl complete with website, logo, and industrial design.
Ron Carlee City Manager City of Charlotte greatercharlottebiz.com | may 2013
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october 2010
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Based on that premise, Stewart went to New York and pitched an idea to some private equity groups, raised some capital and started Forest2Market, Inc. in 2000. Stewart, president and CEO of Forest2Market, likens the company to a Bloomberg-type news service specifically for the forest products industry.
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november 2012 | greatercharlottebiz.com
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october 2012 | greatercharlottebiz.com
greatercharlottebiz.com | october 2012
(l to r) Michael Ramich Partner Andrew Lindner Managing Partner Joel Lanik Partner Richard Maclean (not pictured) Managing Partner Frontier Capital
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leads into customers.
What does a profitable, high growth company do when it sees an exciting new opportunity—whether it be a major new product initiative, a geographic expansion, or a major acquisition—but lacks the capital required to move rapidly? It might approach Richard Maclean, Andrew Lindner and their experienced team at Charlotte-based Frontier Capital, a 13-year-old growth equity firm formed in 1999. Growth equity firms such as Frontier provide companies with the capital they need to seize such opportunities. Similar to venture capital firms, but focusing on established companies rather than startups, growth equity firms receive investments from high net worth individuals and institutional investors and then redeploy that capital in profitable, high growth companies. The equity firm and their investors share in the profits as those companies grow and prosper.
september 2012 | greatercharlottebiz.com
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greatercharlottebiz.com | september 2012
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[
“For a brief period in college, when I really started to care about my studies,” Lackey recalls, “I went from barely making it to doing quite well, but I didn’t want to just get As—I wanted 100s.” For Lackey, playing soccer revealed other personality quirks as well. “Looking back at how I played, it’s clear that I loved taking risks. With two or three seconds left on the clock, there are always players praying that they don’t get the ball. But that wasn’t me—I was
Intellinet Helps Companies Know Their Business
the one screaming for it. I wanted to make that last shot to win.” Lackey, founder and CEO of his sixth startup, KYCK.com, admits that, even as a child, he had personality traits typical of an entrepreneur. But he credits a light bulb moment for starting him on his unconventional career path. “Out of school, I started working at a software development company,” Lackey remembers. “It was maybe my first or second day on the job when the company president called a brainstorming meeting in his office. Everybody started gathering up their paper and pens but he held up his hands to me and told me to stay out and answer the phone. “I had such a visceral response to that. I had ideas. I couldn’t figure out why he didn’t want my input. That’s when the light bulb went off and I decided that I couldn’t be in an environment where my ideas wouldn’t be heard or I couldn’t push ideas that are important to me. I resigned six months
Bell still serves as Intellinet’s chairman, but Mark Seeley, president and senior partner, now oversees the day-to-day operations. Seeley joined Intellinet in 1996 after working as a senior management and process consultant at Andersen Consulting. In his over 20-year career, he has founded or co-founded five different companies in a variety of industries including software, e-commerce, logistics, and real estate. Intellinet entered the Charlotte market in 2003, and because of the Carolinas market’s rapid growth, the company decided to further focus business development efforts by bringing in Glenn Williams as regional vice president in 2007 to run the Carolinas practice. Prior to joining Intellinet, Williams served as the vice president of sales and co-owner of Infovision, a Charlotte-based Microsoft Business Solutions partner.
Charlotte entrepreneur combines soccer and social media for startup success
mac:lackey Founder and CEO Kyck.com
UNC Charlotte’s Solar Decathlon House Combines the Best of Education and Industry for Sustainability
the Club at longview is a vision unCompRomised
E
The Club at Longview
mericans invented the solar cell, wind turbine and lithium battery. Not a bad start in the highly competitive, alternative energy marketplace. While the U.S. earns points for genius, our impact on society has been tepid at best. For example: solar power. It is a free, renewable, clean and seemingly inexhaustible resource. Why isn’t the sun America’s
ach time Mel Graham passes through the gates at The Club at Longview, he is struck by the natural beauty of the land—the rolling topography of old trees, natural streams and Six-Mile Creek, along with natural land preserves. “God gave us a wonderful canvas to work with,” says Graham, the founding partner and visionary of The Club at Longview. And what a
The Club at Longview is situated in a 500-acre private gated residential community south of Charlotte with the region’s only Jack Nicklaus Signature Golf Course. The Club is consistently ranked one of the top 20 private clubs in North Carolina by Golf Digest ‘Best in State.’
masterpiece he and his partners have created. The Club at Longview is situated in a 500-acre private gated residential community south of Charlotte with the region’s only Jack Nicklaus Signature Golf Course. The Club is consis-
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greatercharlottebiz.com | november 2012
■■■
by zenda douglas
later and I, and an engineer I’d become friends with at work, decided to start our first company, a software development company we called InTouch Interactive.”
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Eden urban
Revisited
]
“People are going to connect about things they want to talk about. Ultimately, sites that get mind share with people are going to win and backyard projects just don’t get mind share.”
by barbara fagan
Carolinas Key to Growth
Glenn Williams Regional V.P. of Client Solutions - Carolinas Intellinet Corporation
Frontier Capital Partners with High Growth Business Services
The Scottish Muir
KYCKs
When a major logistics company wanted to provide information on fuel costs, weather and specialized route information to their drivers on the road, they needed a way to deliver that data to hundreds of trucks all over the country. When AAA Carolinas wanted to learn more about what services their customers used and how to make better customer-focused decisions, they needed to pull data from multiple disparate systems to create actionable customer information. And when a manufacturing company wanted to understand the profitability of different SKUs, customers and regions, they needed to bring together data from financial accounting systems, inventory management systems, and sales management systems. All three of these companies turned to Intellinet Corporation, an Atlanta-based management consulting and Microsoft-centric technology services firm. Founded by Frank Bell in 1993 as a boutique technology services company, today Intellinet is a broad-based management consulting and business technology services firm consulting on IT strategies, processes, and the complete stack of Microsoft enterprise-level products. While the corporate offices are in Atlanta, Intellinet operates regional offices in Charlotte and Durham, and the Carolinas market is playing an important role in the company’s growth strategy.
Intellinet helps clients define their IT strategy, optimizes business processes with change management and project management techniques, and provides assistance with business solutions that allow companies to better align their technology with their business objectives.
Show me the Money!
dollars trying to figure out the market. If a company our size was spending that kind of money, I could only imagine what the largest forest products companies were spending to get good market data. Billion dollar companies like Weyerhaeuser and International Paper had to be spending just tons of money.”
Peter J. Stewart Founder, President and CEO Forest2Market, Inc.
› Great design turns
by jim froneberger
from Texas A&M University and a master’s degree in forest economics from the University of Georgia. No matter how casually made, the career choice turned out to be a smart one. According to the American Forest & Paper Association, the forest products industry accounts for about five percent of the total U.S. manufacturing GDP, producing approximately $175 billion in products each year and employing close to 900,000 people.
before Stewart first noticed a systemic problem. “About 30 percent of all timberland is owned by pension funds,” Stewart explains, “and I was in charge of valuing it. But I could never find good data. It was nearly impossible. “I began thinking that there’s got to be a better way to collect, handle and distribute this data. At the time I worked for a company of about 50 people and we would literally spend hundreds of thousands of
Just f r
by jim froneberger
As a kid growing up in Charlotte, all Mac Lackey wanted to do was play soccer—all day, everyday, until it was dark. It was all he cared about and luckily he had talent which took him to Wake
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Equity
Stewart admits that his career in forestry began as a high school toss-up between oceanography and forestry, which he jokes is proof that “17-year-olds should never make decisions that affect the rest of their lives.” A couple of college career days later he was studying forestry, eventually earning a bachelor’s degree
It was also a good choice for Stewart who found that he enjoyed the business and its surprisingly mathematical and statistical bent. His first job as a consultant in the industry moved him from his native Texas, where he was a wood buyer for a large forest products company, to Charlotte. It was not long
Reaching Out to Inventors “Everyone has great ideas, but you also need the time, money and patience to see the idea start at the drawing board and make it through the process to the end product. “I want people to understand the product development process and to educate them on the responsible way of doing it,” says Foreman, personal inventor and holder of 10 patents. “Many inventors with new product ideas start on the process get disillusioned and can’t get to the final destination.” The company grew out of his own personal frustration, says Foreman. He founded the company in 2001 in Huntersville. The next year, he moved it to the 23,000-square-foot converted grist mill warehouse location in Charlotte. The company also has a Taiwan office. ➤
p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe
by barbara fagan
In business, innovation is a good thing—a pathway to growth, a doorway to progress and possibly even a trajectory to industry leadership. But while innovation may be good for business, Pete Stewart found that being a business innovator wasn’t always easy.
Enventys Means Hope for Everyday Inventors ow many times have you seen a product, delighted in its straightforward utility, and thought, “I could have invented that!”? So many products—charms for wine glasses, silly wrist bands shaped like animals and sports figures for kids to wear on their wrists, waste cans that open with a touch to a foot pedal, and other popular products—they seem so simple that it begs the question: Why did it take so long for this to hit the market? Many reasons, says Louis Foreman, founder and CEO of Enventys, a Charlotte product innovation development company that helps people and companies introduce new products and redesign existing ones. Foreman’s company transforms compelling ideas into new products, offering a suite of services.
by pete prunkl
Forest on a soccer scholarship and to a year of playing pro soccer as a Charlotte Eagles’ forward. But Lackey’s obsession with soccer was more than just a passion; it was a clear example of his “all in” personality. He did everything to an extreme.
Photos: Fenix Fotography
Forest2Market Provides a Canopy of Market Information
Innovative Ideas and New Challenges
Fenix Fotography
“On the back of our business cards is our motto, ‘Promises kept.’ I bet a majority of our employees would say that’s one of the main reasons they came to work for Intellinet. Beyond us being a great strategy and technology company, we strive to do what we say, and at the end of the day, that’s what’s most important. After all, we’re in the people business.”
october 2010
Growth
Fenix Fotography
Charlotte’s New City Manager Carlee is Well-Suited to the Job
Fenix Fotography
A Southern
GENTLEMAN
C
Great design conveys your message clearly and impressively at a time when every moment counts.
july 2013 | greatercharlottebiz.com
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by jim froneberger
I’m definitely a southern boy, there’s no question about that. The day we were unpacking, Interim City Manager Julie Burch dropped by with a bottle of champagne. That was a sure sign I was back in the South, because nobody in Washington ‘drops by’ to see anybody, anywhere, anytime. That really told me that I was out of Washington.”
›
Steve Patridge President and CEO Charlotte Works greatercharlottebiz.com | april 2013
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tently ranked one of the top 20 private clubs in North Carolina by Golf Digest ‘Best in State.’ Graham began design and construction of the Club in 2000 and completed it in 2003. He owns it in partnership with James Little, formerly an investment banker, and Bruce Anderson and Pat Welsh of Welsh, Carson, Anderson & Stowe. Together, the partners have built a community that promotes an atmosphere of relax-
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ation and exclusivity with uncompromised conveniences and amenities for members to enjoy, with respect for the highest quality design concepts and land preservation.
september 2012 | greatercharlottebiz.com
greatercharlottebiz.com | september 2012
may 2013 | greatercharlottebiz.com
by barbara fagan
primary source of power? The poet T.S. Eliot knew the answer. “Between the idea and the reality, between the motion and the act,” he said, “there falls a shadow.” An enormous portion of the solar shadow is cost. A few years ago real estate agent Binnie Orrell investigated running his Charlotte home entirely on solar power. He received an estimate of $25,000 to install a single photovoltaic (PV) solar panel on the roof. “It was absurd,” comments Orrell. “Prices for photovoltaic systems that generate electricity have dropped dramatically in the past few years,” says solar energy engineer Tommy Cleveland of the North Carolina Solar Center. “A quote today
Tommy Cleveland adds another solar fact of life: “It costs more to retrofit a house for solar than new construction.”
UNC Charlotte’s “Urban Eden” house incorporates truly revolutionary approaches to sustainable design and construction, including the choice of building material (geopolymer cement concrete), an innovative passive cooling and heating system integrated into the walls and ceiling of the house, and responsive technology that allows the house and its inhabitants to adapt to changing environmental conditions.
Envisioned as an urban infill project for empty nesters or young professionals, the house design is defined by a strong connection between indoor and outdoor living areas; even in an urban context, the outdoor living area allows one to privately enjoy the outdoors. The UNC Charlotte team began work on the design in October 2011, broke ground in February 2013, and will complete construction over the summer before transporting the house to California in September 2013. The competition takes place October 3-13, 2013.
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The Club at Longview
greatercharlottebiz.com | may 2013
march 2013 | greatercharlottebiz.com
The Choice
SHARON SQUARE
would be half of what it was three to four years ago.” Part of the reason for the price reduction is the Chinese government. When they decided to subsidize solar panel production, other manufacturers like Bosch Solar in Mooresville, quickly dropped their prices.
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your marketing materials more attractive and eye-catching, as well as easier and more enjoyable to read.
greatercharlottebiz.com | march 2013
by paul matthews
Print design, including flyers, brochures, infographics, business cards and more… We create specifically for your business in the style that matches your personality and your business branding, demonstrating your company’s uniqueness and effectively communicating your message.
for
Magellan Aviation Group takes flight with global solutions
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greatercharlottebiz.com | april 2013
bu i l di n g
Pappas Properties’ Vision Creates Extraordinary Value by jim froneberger
When you listen to Charlotte developer Peter A. Pappas talk, it doesn’t take long to understand why he’s been so successful in the Charlotte real estate market. He absolutely loves what he does. “I really enjoy real estate,” beams Pappas. “It’s not just my career. It’s my hobby and it’s my passion. I don’t feel like I’m going to work. I’m just going to do something I love doing every day.” Over the last 25 years, Pappas has been at the center of some of the most transformative real estate projects in the Charlotte region—Phillips Place, Birkdale Village, Metropolitan, and now Sharon Square—all innovative developments that have changed the way area residents live, work, dine and shop. Guided by two of the most influential real estate developers in Charlotte history—Johnny Harris and Smoky Bissell—Pappas learned the trade from the best and has continued to expand the boundaries with his own firm, Pappas Properties, and a new venture announced in May, Terwilliger Pappas Multifamily Partners.
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july 2013 | greatercharlottebiz.com
Opportunities Grounded in Ethics
Gardner-Webb University's Godbold School of Business: Where Bright Futures Ignite
(bottom right) Michelle J. Menard President Vernon J. Menard Vice President Choice Translating, Inc.
“I
by laurie williams
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Peter A. Pappas Founder and President Pappas Properties, LLC april 2013 | greatercharlottebiz.com
GLOBAL
Because Meaning Turns on a Word
PLACEMAKING
Photo: Fenix Fotography
ir travel delays are a fact of life. Bad weather is a frequent culprit, but delays can be caused by equipment problems as well. The most serious equipment problems prevent aircraft from flying, described by a term called AOG or “aircraft on ground.” “For us, AOG has the same meaning and urgency as the term STAT does in a hospital,” explains Bill Polyi, president and CEO of Magellan Aviation Group. “When an aircraft is grounded there may be a couple of hundred passengers waiting in a terminal somewhere. That’s where we come in. One of our greatest strengths is being an AOG (same day service) company.” Magellan Aviation Group is a global aftermarket supplier of aircraft parts and products and a specialist in aircraft engine leasing and trading. The group’s Magellan Aircraft Services operates out of 108,000 square feet in southwest Charlotte. The company also operates Magellan Aviation Services out of 25,000 square feet in Shannon, Ireland, and has satellite offices in Florida, Peru, China, Singapore, Germany, Indonesia, Israel, and South Africa.
Rachelle Foucachon
“Our vision at Pappas Properties is to create places and build communities that add value to the cities that we work in. We’ve always said that any project that we undertake would need to check that box or we wouldn’t do it.”
Photo: Fenix Fotography
parts and products and a specialist in aircraft engine leasing and trading.
Translating
& COMMUNITY
»A global aftermarket supplier of aircraft
greatercharlottebiz.com | july 2013
30
Michelle and Vernon Menard UNCC: Why Every Word Counts
elebrating 20 years in the linguistic services business, Choice Translating founders Michelle and Vernon Menard look back as witnesses to a technology revolution that has certainly changed the fundamental ways in which they do business. Yet what has been most critical to them has been to maintain their extreme dedication to accuracy, precision and localized style—something that has been appreciated by the organizations they serve. One client, Travis Dowell, director of international sales with OttoEnvironmental Systems, speaks to their performance. “The services and support Choice Translating has provided us have been ‘second to none,’” he says. “The team’s assistance on a conference call with our Mexico City distributor was extremely helpful in gleaning every nuance on a sales call and led to large orders for Mexico. We may not have realized record sales to Mexico without Choice Translating’s support and accurate services.”
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n business, the greatest rewards come to those who can adapt to the changing dynamics of a global economy without losing sight of their core values. These are the ethical entrepreneurs—innovators and leaders who understand that maximizing profits and maintaining integrity aren’t mutually exclusive,” maintains Dr. Anthony Negbenebor, dean of one of North Carolina’s rising star schools and insightful thought leader. That is how success is defined at the Godbold School of Business at Gardner-Webb University, a private Christian school with its main campus in Boiling Springs, N.C., and satellite campus in Charlotte. The school’s renowned graduate programs—including its online M.B.A., ranked No. 1 in the U.S. in 2012 (U.S. News & World Report) and No. 9 worldwide (BusinessMBA. org)—are led by seasoned practitioners from around the world.
march/april 2015 | greatercharlottebiz.com
The Gardner-Webb Brand
Boiling Springs, N.C., Founding Campus
IGNITE YOUR
future
Dr. Anthony Negbenebor Dean Gardner-Webb University Godbold School of Business
39
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greatercharlottebiz.com | march/april 2015
greatercharlottebiz.com | june/july 2015
[publisher’spost]
OF INTEREST: Promoting Thought Leadership Across the Carolinas
INDUSTRY 4.0:
Foundational Pillars for Future Advances
Y
ou cannot ignore it. We are in a global economy. Outside our border lies 80 percent of the world’s purchasing power, 92 percent of the world’s economic growth, and 95 percent of the world’s consumers. The U.S. economy is still the largest in the world at $17.4 trillion annually in a global market that is $77.6 trillion. The U.S. is followed by Canada, China, Mexico, Japan, Germany and South Korea. While the U.S. seeks to expand outwardly around the world, global countries seek to do business in the domestic U.S. market. John P. Galles We have entered a whole new era of Publisher global economics where innovation, production, distribution and wealth are growing all over the globe measured by the movement of goods, services, Please feel free to contact me at finance, people and broadband 704-676-5850 x102 or jgalles@ in all directions. Competition is greatercharlottebiz.com. thriving. And the likelihood of new trade agreements will further advance global commerce. In order to seize the greatest opportunities going forward, we must identify those businesses which will lead throughout the Boston 21st century. A recent Consulting Group: Industry study by the Boston 4.0 Consulting Group (BCG) entitled Industry 4.0—The Future of Productivity and Growth in Manufacturing Industries does just that. It analyzes the transformation of design, manufacturing, operation, and service of products and production systems we are witnessing. According to the report, “Connectivity and interaction among parts, machines and humans will make production systems as much as 30 percent faster and 25 percent more efficient and elevate mass customization to new levels.” Manufacturing will be 44 transformed from single automated cells to fully integrated automated facilities that communicate with one another and boost flexibility, speed, productivity and quality.” june/july 2015 | greatercharlottebiz.com
The report describes us as “in the midst of a fourth wave of technology advancements with the rise of new digital industrial technology known as Industry 4.0." This transformative technology is powered by the nine foundational pillars for future advances. Big Data and Analytics. In an Industry 4.0 context, the collection and comprehensive evaluation of data from many different sources—production equipment and systems as well as enterpriseand customer-management systems—will become standard to support real-time decision-making. Autonomous Robots. Robots are becoming more autonomous, flexible and cooperative. Eventually they will interact with one another and work side-by-side with humans and learn from them. These robots will cost less and have a greater range of capabilities. Simulation. 3-D simulations of products, materials and production processes are already used, but simulations will be used more extensively in plant operations as well, leveraging real-time data to mirror the physical world in a virtual model, allowing operators to test and optimize the machine settings for the next product in line in the virtual world before the physical changeover. Horizontal and Vertical System Integration. With Industry 4.0, companies, departments, functions and capabilities will become much more cohesive, as cross-company, universal data-integration networks evolve and enable truly automated value chains. The Industrial Internet of Things. More devices—sometimes including even unfinished products—will be enriched with embedded computing and connected using standard technologies, allowing field devices to communicate and interact both with one another and with more centralized controllers, enabling real-time responses.
Cybersecurity. With Industry 4.0, the need to protect critical industrial systems and namufacturing lines from cybersecurity threats increases dramatically, as does the need for secure, reliable communications as well as sophisticated identity and access management of machines and users. The Cloud. With Industry 4.0, machine data and functionality will increasingly be deployed to the cloud, enabling more data-driven services for production systems. Even systems that monitor and control processes may become cloud-based. Additive Manufacturing. 3-D printing primarily used for prototyping will be widely used to produce small batches of customized products offering construction advantages. McKinsey & High-performance, deCompany: Manufacturing centralized additive the Future manufacturing systems will reduce transport distances and stock on hand. Augmented Reality. In the future, companies will make much broader use of augmented reality to provide workers with real-time information to improve decisionmaking and work procedures. These are the smart businesses that we should immediately be seeking for this region. We can grow our own with innovation, entrepreneurship and production facilities and/or we can attract foreign direct investments from around the world that also build businesses and hire more workers. Rapid and effective adoption of these pillars will deliver remarkable change over the next 50 years. Competition will be stiff and come from all corners of our world. Nevertheless, we should be seeking smart companies with smart innovation strategies for the future. That will create another new wave of growth to sustain the future for the next generations.
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