Greater Charlotte Biz 2015.08-09 August-September 2015

featuring‌ august/ september 2015

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Georgia Department of Economic Development Georgia Ports Authority Coalogix / SCR-Tech Hyde Park Partners Atom Power

EORGIA

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POWERING THE CHAR-LANTA

MEGAREGION!

GOT A HEAD START

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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.

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featuring…

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EORGIA

GOT A HEAD START

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Powering the Char-lanta Megaregion!

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Creating a Complete Supply Chain Network

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Creating a Cleaner Environment

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Productivity Solutions for Manufacturing

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Are Your Circuit Breakers Smart?

Atlanta got a head start in spurring the megaregion’s growth. Says Commissioner Chris Carr of Georgia’s Department of Economic Development, “What makes Georgia stand out as an ideal location for business activity is our integrated partnership approach to economic development—from state, local, international, educational sectors and beyond, our teamwork collaboration continues to meet the needs of companies that locate in our state.”

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Georgia Ports contribute $39 billion a year to the Georgia economy and 100,000 jobs in metro Atlanta alone. The Port of Savannah is the fourth-busiest container port in the country and the second busiest on the East Coast. Executive Director Curtis Foltz describes the state’s Network Georgia initiative covering Georgia as well as portions of Alabama, Florida, North Carolina, South Carolina, and Tennessee.

Bill McMahon, president and CEO of CoaLogix Inc. and its subsidiary SCR-Tech LLC, maintains that “Coal has to be a part of our future.” Asked what makes his company stand out, he responds, “We’re a relatively small company dealing with behemoths like Siemens, Shaw and Babcock & Wilcox. We’re in that crowd because we think a little differently on the entrepreneurial side. And that’s how we’re changing things.”

“To see what could be versus what is,” that was the vision of Clifton Vann IV five years ago; “Going a step beyond…,” that is his vision now for his Charlotte-based Hyde Park Partners, Inc. Vann has always been in the vanguard of American ingenuity in engineering and manufacturing. He, like his father Clifton B. Vann III, believes in doing “whatever it takes to ensure the long-term health of U.S. manufacturing.”

CEO Ryan Kennedy of Atom Power, LLC has developed a new circuit breaker that is software driven, allowing operators to dynamically change characteristics: “We’re trying to fix something that is broken; change the industry. It is a slow process but in a $40 billion industry, slow is a relative term. I expect it to take about 20 years for our technology to become the standard for power distribution.”

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o f i n t e re s t …

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Positive Impact: Your 5 Company’s Sustainability Policy

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Be Seen Or Not To Be Seen On 6 ToLinkedIn? That Is The Question

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august/september 2015 | greatercharlottebiz.com

Can the U.S. Remain Competitive In The Global Marketplace?

The ObamaCaravan Rolls On: It's Time to Check Your Ticket for 2016

Atom Switch

Desiderata

Go placidly amid the noise and haste, and remember what peace there may be in silence. As far as possible, without surrender, be on good terms with all persons.

Speak your truth quietly and clearly; and listen to others, even to the dull and the ignorant, they too have their story. Avoid loud and aggressive persons, they are vexations to the spirit.

If you compare yourself with others, you may become vain and bitter; for always there will be greater and lesser persons than yourself.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

Exercise caution in your business affairs, for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals, and everywhere life is full of heroism.

Be yourself. Especially, do not feign affection. Neither be cynical about love, for in the face of all aridity and disenchantment it is perennial as the grass.

Take kindly to the counsel of the years, gracefully surrendering the things of youth.

Nurture strength of spirit to shield you in sudden misfortune.

But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness.

Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here. And whether or not it is clear to you, no doubt the universe is unfolding as it should.

Therefore be at peace with God, whatever you conceive Him to be, and whatever your labors and aspirations, in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery and broken dreams, it is still a beautiful world.

Be cheerful. Strive to be happy.

Max Ehrmann, originally copyrighted in 1927

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In Memoriam Clifford M. Lane, Jr. 1927-2015

august/september 2015 | greatercharlottebiz.com

August/September 2015 Volume 16 • Issue 8 Publisher

John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x101 mlane@greatercharlottebiz.com

Creative Director

Melissa Leet Schropp 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

Contributing Writers Zenda Douglas Paul Matthews Pete Prunkl Andrew Rusnak Gene Stowe

Contributing Photographer Fenix Fotography

Galles Communications Group, Inc. 7300 Carmel Executive Park Dr., Ste. 115 Charlotte, NC 28226-1310 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com

• 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

POSITIVE IMPACT:

YOUR COMPANY’S SUSTAINABILITY POLICY

W

hat is your company’s sustainability policy?

According to Wikipedia, corporate sustainability is “a business approach that creates long-term consumer and employee value by creating a ‘green’ strategy aimed toward the natural environment and taking into consideration every dimension of how a business operates in the social, cultural, and economic environment.”

When most businesses think of increasing profitability, the fi rst thought that comes to mind usua lly isn’t susta inability.

“Regardless of However, sustainability can have a the scope of the number of positive impacts to your company’s financials. sustainability It can and likely will decrease initiative, the numerous expenses including environment will energy, water, waste and materials.

It has also shown positive impacts benefit and, in on employee retention, which decreases expensive hiring and many cases, so will the company’s training expenses. In addition to increasing profitability, corporate bottom line. If sustainability can have even greater long-term social and all companies environmental impacts.

participate, it can make a world of difference.”

Ever y business ca n get started on the road to corporate sustainability by developing a sustainability policy for managing its environmental footprint and bottom line. Every policy should start with a mission statement detailing a commitment to sustainability.

The policy should include specific actions and target dates for completion of each action. It is highly advisable, if not imperative, to have an individual or group of individuals designated as the company’s champion with the responsibility of ensuring company compliance with the policy.

Each policy will differ from company to company and industry to industry. However, there are some general initiatives that should be considered by most companies.

If a business wants to take its commitment further, there are various “green” certifications it can earn that can help in marketing the business. Also, there are now Sustainability Accounting Standards to help companies report on sustainability performance to outside parties like investors, customers, and potential employees.

Regardless of the scope of the sustainability initiative, the environment will benefit and, in many cases, so will the company’s bottom line. If all companies participate, it can make a world of difference.

RECOMMENDED SUSTAINABILITY INITIATIVES  Recycle paper, plastic, aluminum, and other office

products

 Use water coolers with reusable cups rather than

bottled water

 Encourage the use of communal dishware and utensils

rather than disposable items

 Go as paperless as possible; when printing is required,

   

     

use recycled paper for printing and set printers to double-sided printing as a default Update mailing lists to prevent sending unnecessary letters which will save paper, postage, and printing Turn off computers, power strips, monitors, etc. at night and on weekends Incentivize employees to use alternative methods of transportation to work (carpool, walk, bus, bike, etc.)

Allow employees flexible work schedules to reduce travel, such as work weeks consisting of four 10-hour days or optional working from home Consider videoconferencing or teleconferencing to replace unnecessary travel, where possible Use energy-efficient, motion-sensored lighting systems Install automated waterworks, soap and paper towel dispensers in restrooms Use environmentally-friendly cleaning products Adjust the thermostat by one or two degrees in the summer and winter to save energy Conduct sustainability education seminars for employees

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 Aaron Reece, CPA, Senior Assurance Manager and in charge of the firm’s Sustainability Practice. For more information, contact Aaron at aaron.reece@greerwalker.com or 704-377-0239 or visit www.GreerWalker.com.

Reece

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greatercharlottebiz.com | august/september 2015

OF INTEREST: Get Linkedin or Be Leftout

TO BE SEEN OR NOT TO BE SEEN ON LINKEDIN? THAT IS THE QUESTION

H

ave you ever wondered why some people who have viewed your profile can be seen completely while others are identified by their industry and/or location or in some instances are totally anonymous? It is the individual’s personal strategic decision to be seen or not to be seen.

How Anonymous Can You Be on LinkedIn and Why? Most people don’t understand how or why they might navigate LinkedIn anonymously. This can be a valuable option when you want to look at a prospect’s profile but don’t want that individual to know that you were there. Job seekers and recruiters often use this technique to check out candidates and prospective employers.

LinkedIn has three settings to choose from to decide how anonymous you want to be.

You can choose to be ‘Totally Anonymous’ and no information will be given about your visit to the profile. Please note that when you choose not to show your name and headline when viewing other people’s profiles, you won’t be able to see who’s viewed your profile.

We have found that having the ability to see who has viewed our profile is extremely valuable. If we see someone who might be a good connection or a prospect we reach out to them and make the first move. This has led to several very profitable new accounts.

The next choice is what LinkedIn calls ‘Anonymous Profile Characteristics.’ This option will show your title and industry but not your name or photo. The strategy behind this setting is to peak someone’s interest without fully identifying yourself.

The final choice is not being Anonymous at all and is titled ‘Your Name and Headline.’ Typically your entire name, headline and photo will be displayed to the viewer. Simply, this setting says you are open to connecting and you are fine with anyone knowing you viewed their profile.

It is important to note that anonymity can be temporary. If you visit a profile as anonymous and then visit that profile again within a 90-day period as non-anonymous, LinkedIn will switch all of your prior anonymous visits to show your name, headline and photo.

Basses

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How to Browse Profiles Anonymously You have the option to browse profiles anonymously. When you view a profile, you’ll appear in that person’s Who’s Viewed Your Profile section as “LinkedIn Member - This person chose to be shown as anonymous.” To browse anonymously:  Move your cursor over your profile photo in the top right of your homepage and click Privacy & Settings. For verification purposes, you may be prompted to sign in again.  On the Profile Tab to the left, click Select what others see when you’ve viewed their profile.  Choose the setting you prefer.  Click Save Changes.

As mentioned above, it can be very valuable to look at who has

august/september 2015 | greatercharlottebiz.com

viewed your profile. This option is different depending on the type of account you have.

LinkedIn Free Account.



If you have chosen your settings to display your name and headline when viewing profiles, you’ll see up to the most recent five viewers in the last 90 days, as well as a list of suggestions for increasing your profile views.

 Once you have five or more viewers in a 90-day period, you’ll see a graph of viewer trends above the list of viewers.

LinkedIn Premium Account.



You’ll see the entire list of viewers from the past 90 days. If you have at least one viewer in the past 90 days, you’ll also see the viewer trends and insights.

 In addition to the free account experience, you’ll be able to click into the weekly data points to drill your viewer list down to viewers from that week. You can do the same for viewer insights.

With any account, you may see a list of suggested actions you can take to increase your profile views.

T hese i nc lude prompts to follow Influencers, join groups, and add skills.

Note: Even if you have a Premium account, you won’t see the names of viewers who chose to display themselves as anonymous.

There are 2 ways to navigate to the Who’s Viewed Your Profile page:  Move your cursor over Profile at the top of your homepage and select Who’s Viewed Your Profile.  You can also look next to your profile photo at the top of your homepage, and click the number next to # of people viewed your profile.  Please note that you won’t see this box if you haven’t had any profile views in the past 90 days.

It’s in your court. Be seen or not to be seen? Your LinkedIn strategy will determine the best route to take, but don’t take this decision lightly.

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.

OF INTEREST: Immigration Matters

CAN THE U.S. REMAIN COMPETITIVE IN THE GLOBAL MARKETPLACE?

IMMIGRATION ACCOUNTABILITY EXECUTIVE ACTION IMPACTS

I

n an earlier article in May 2015, we discussed how President Obama’s “immigration accountability executive action” announced in November 2014 could support the U.S. business need for highly-skilled workers and foreign-born entrepreneurs. Two recent developments in those initiatives could affect U.S. competitiveness in the global market by impacting employers’ ability to acquire and retain foreign talent.

Extending OPT for Foreign STEM Graduates On August 12, 2015, a federal court handed down a decision that may be the nudge the Department of Homeland Security (DHS) needs to move on expanding employment opportunities for foreign nationals educated in the U.S. Under current law, a foreign national on a temporary F-1 student visa may request “optional practical training” (OPT) to work in a field relevant to his/her degree. Based on a rule issued in 2008, students in the fields of science, technology, engineering, and math (STEM) are eligible for an additional period of OPT for employers registered with DHS’s voluntary federal employment verification program known as e-Verify.

In Washington Alliance of Technology Workers v. U.S. Department of Homeland Security [U.S. District Court for the District of Columbia, Case No. 1:14-cv-00529, filed on March 28, 2014], the court decided that DHS broke federal administrative law when it issued the 2008 rule permitting OPT extensions for students holding U.S. STEM degrees and working for e-Verify participating employers.

In the decision, the court grants DHS until February 12, 2016, to provide notice and invite public comment through the federal rulemaking process as it should have done in 2008. Failure of DHS to meet the deadline will result in the elimination of this immigration benefit.

At first blush, the decision is alarming.

However, a silver lining may exist. In order to cure the procedural deficiencies of the 2008 rule, the court has given DHS an opportunity and a push to implement President Obama’s executive action to expand STEM OPT to include more degree programs eligible for OPT and to extend the period of OPT for foreign STEM graduates.

If DHS acts promptly, it will be a win-win for employers and STEM graduates.

Improving Transferability of Foreign Employees The L-1B visa program allows multinational companies to transfer foreign employees who have “specialized knowledge” of the company’s products or processes to the U.S. from abroad. It serves as a vital tool for managing a global workforce.

In recognition of its importance, President Obama issued an executive order directing U.S. Citizenship and Immigration Services ( US C I S) to i m prove program coherence, integrity and consistency in adjudications.

USCIS appears to be taking the order to heart. In a recent USCIS performance data report, the rate of L-1B denials has dropped from 31 percent during the first quarter of fiscal year 2015, to 27 percent during the second quarter and to 21percent during the third quarter.

In addition, on August 17, 2015, USCIS issued a policy memorandum to guide adjudicators in determinations made on or after August 31, 2015. The memorandum clarifies how employers may demonstrate that an employee possesses specialized knowledge.

The memorandum also provides greater clarity concerning rules about off-site employment of L-1B workers.

It has met with mixed reviews. Some argue that it does not go far enough and is so loosely drafted that adjudicators may continue a status quo of inconsistent and unreasonable adjudication of L-1B petitions. Others are hopeful that it is a step in the right direction.

For multinational employers, the decision as to whether to expand or remain in the U.S. may hinge on the ability to transfer global talent. Having assurance that visa applications will be fairly adjudicated goes a long way in reassuring these employers that the U.S. is open to global business.

The information contained in this article is not, nor is it intended to be, legal advice, nor does it create an attorney-client relationship. You should consult an attorney for advice regarding your individual situation.

Cory

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Content contributed by Jennifer L. Cory, J.D., a partner in the Garfinkel Immigration Law Firm specializing in employment-based immigrant and nonimmigrant petitions. For more information, contact her at 704-442-8000 or jennifer.cory@ garfinkelimmigration.com or visit www.GarfinkelImmigration.com. greatercharlottebiz.com | august/september 2015

#CLTStaysHome

TH E

LA

-EVENT G N A O N

e t t o l r a ChSTAYS HOME

THIS SUMMER, WE INVITE YOU TO RELAX AT HOME. AND MAKE “Home Sweet Home” A REALITY FOR EVERY FAMILY IN CHARLOTTE-MECKLENBURG. Instead of incurring all the costs of an actual gala, we’re having a virtual celebration — a “non-event.” You stay home and do what you enjoy, and your contribution will help families stay in their homes with their basic needs met. It’s simple, but life-changing.

Visit crisisassistance.org/charlottestayshome to make your gift. presented by:

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Crisis Assistance Ministry has been the community’s safety net for families facing financial crisis since 1975. On a typical day more than 200 families seek help with emergency rent and utility assistance, household goods, clothing, and furniture.

Your gift prevents homelessness and preserves dignity for families in crisis.

THANK YOU!

500-A Spratt Street, Charlotte, NC 28206 • 704-371-3001 • crisisassistance.org

Learn how you helped Kisha and her family at crisisassistance.org/charlottestayshome.

august/september 2015 | greatercharlottebiz.com

OF INTEREST: Insightful Solutions Perfectly Matched to Your Corporate DNA

THE OBAMACARAVAN ROLLS ON:

IT’S TIME TO CHECK YOUR TICKET FOR 2016 AND BEYOND

B

usinesses are watching the sixth year of the Affordable Care Act (ACA) unfold. By now, supporters and critics have had a rollercoaster ride of hopes and expectations, most easily seen in the business community for whom deadlines have been set, extended and altered as the ACA has been rolled out and the legal challenges defeated.

The ACA will continue to create ripples in reporting for all employers and employees, as the mandates continue and the information-gathering intensifies. Here is what we have already seen, and where we are going, as the ObamaCaravan moves forward.

The ObamaCaravan Started Moving in 2010 The ACA was signed into law on March 28, 2010, and, although the legal effects were delayed for six months, the impact on individual and employer group health plans was immediate. Early implementation considerations for employers included “grandfathering” group medical plans (or not), dealing with the new benefits required and old restrictions prohibited by the ACA, and the initial review of the “employer mandate” and the “play-or-pay” rules applicable to “large group employers.”

Even as the ObamaCaravan started, employers had to learn a new lexicon of group medical plan terms that would influence decisions for the next decade.

The Early Stations for the ObamaCaravan While group health plans were dropping lifetime limits on medical coverage and adding dependent coverage to age 26, employers were aware of the legal challenges to the ACA’s funding methods.

The ACA rests upon the concept of “shared responsibility,” the requirements that large group employers offer affordable and adequate medical coverage to full-time employees, and that individuals not covered by an employer’s plan obtain individual coverage.

In each case, noncompliance by large group employers or individuals result in financial penalties, which were quickly challenged as impermissible mandates that Congress could not impose on citizens. The U.S. Supreme Court disagreed with that interpretation on June 28, 2012, finding that the penalties were, in fact, taxes and could be imposed by Congress.

The ObamaCaravan left the most recent station with the Supreme Court’s decision on June 25, 2015, upholding another critical funding aspect of the ACA. The Supreme Court upheld and affirmed the administration’s position that federal subsidies should be available for qualifying individuals purchasing medical insurance through the state insurance exchanges established to help individuals obtain medical insurance.

What’s Ahead for the ObamaCaravan, and Will it Stay on Track Small and mid-sized employers know to carefully monitor the number of full-time employees, and are aware of the penalties that can result if a large group employer fails to offer affordable and adequate coverage to eligible employees.

In 2016, the definition of large group employer will revert to the 50-plus definition contained in the statute, with implications for employers who have previously avoided the employer mandate.

2015 brought additional reporting and recordkeeping requirements for all employers, with the new IRS Form 1095-C for 2014 requiring covered employers to report monthly information on all employees, even part-time employees whose hours determine fulltime equivalent employees. The “Applicable Large Employer” information in Form 1095-C is the backbone of federal oversight, but 2015 presents a challenge for covered employers who must provide additional information to employees and the IRS. The tax on employer-sponsored high-cost health plans, referred to by its critics as the “Cadillac Tax,” begins in 2018. Intended to both limit an employer’s use of excessively generous benefits and to generate funds for the subsidies offered to low-income individuals, this 40 percent excise tax applies to the employer sponsoring the group health plan.

An “excess benefit” generally is one where the cost of coverage exceeds annual limits of $10,200 for individual and $27,500 for family coverage. Although the tax was predicted in 2013 to affect 3 percent of all medical benefit plans, it is budgeted to raise billions in revenue. Opposition from both employers and unions is growing, and this excise tax will become a major obstacle to the ObamaCaravan as 2018 approaches.

As the ObamaCaravan rolls on, significant change is unlikely until after the 2016 election cycle, and then only if the political power shifts significantly towards opposition to the ACA. Many of the ACA reforms are widely popular even as the burden on employers increases and the costs remain a problem.

The most likely path for the ObamaCaravan is steady implementation with some funding changes (altering the Cadillac Tax) and relief for smaller employers. The societal forces powering the ObamaCaravan will keep it moving and should keep it in the forefront of business planning.

Content contributed Shumaker, Loop & Kendrick, LLP, a full service law firm founded in 1925 with more than 240 attorneys practicing in Toledo and Columbus, Ohio; Tampa and Sarasota, Florida; and Charlotte, North Carolina. Content written by James H. Culbreth Jr., Partner, whose principal area of practice is employee benefits.

For more information, contact Jim Culbreth at 704-945-2186 or jculbreth@slk-law. com or visit www.slk-law.com.

Culbreth

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greatercharlottebiz.com | august/september 2015

CHAR-LANTA

Dubbed as a mega-region

by The Atlantic’s Richard Florida, Char-lanta is home to 22 million people and takes in 45 metros including Atlanta, Ga., Raleigh, N.C., and Birmingham, Ala. With over $1.3 trillion in economic output, its economy is bigger than that of South Korea’s, placing it among the world’s 15 largest economies.

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august/september 2015 | greatercharlottebiz.com

G

EORGIA

GOT A HEAD START

POWERING THE CHAR-LANTA by paul matthews

I

MEGAREGION!

t was September 1990, when a broadcaster from Tokyo announced that Atlanta had been chosen to host Summer Olympic Games. That was the beginning of the city’s transformation to international recognition.

Anchored by Hartsfield Airport and the home base of Delta Airlines along with the corporate strength of the headquarters of Coca Cola and Home Depot, Atlanta and the state of Georgia began preparations for its debut of a world-class event.

COO of the Atlanta Olympic Committee, A.D. Frazier, is quoted as saying, “I think our image as a destination was fundamentally changed. It was a pivotal turning point for the city.”

Frazier and CEO Billy Payne from Augusta National Golf Club directed the efforts to design, build and operate those games. They used Barcelona’s Placa d’Espanya city center as a model for Centennial Park. Its development along with private investment added major hotels, condominiums and office structures, and opened the doors to business engagement around the world.

We Speak Business

Georgia is Built for Business

The population of Atlanta has grown from about 3.5 million in 1996 to nearly 5.5 million today. According to one report, overall employment in the areas affected by the games rose by 17 percent during and after the events. Over 77,000 full-time jobs were created. From 1991 to 1997, the impact of the Olympic Games was estimated to be more than $5 billion.

Georgia’s Sweet Spot Global Insights—Global Connections

However, the first 10 years of the next century were not nearly so generous. Atlanta was broadsided by the Great Recession the same as other major cities.

Fortunately, while unemployment was rising in Atlanta, Georgia has had a sweet

Chris Carr Commissioner Georgia Department of Economic Development

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august/september 2015 | greatercharlottebiz.com

s p o t m a king great gains: The Georgia Ports Authority had been increasingly aggressive in the shipping industry. Between 2000 and 2015, the Port of Savannah has grown to the fourth busiest deep-water port in the nation with throughput volume growing from just under one million containers per year to over 3.8 million “The deep-water ports of Savannah and Brunswick have become cornerstones of Georgia’s future success and major factors in creating new jobs and prosperity across the state,” announced Georgia Gov. Nathan Deal.

“The wave of economic impact created by our logistics network supports virtually every industry, from manufacturing and agriculture to mining, distribution, technology and transportation.”

Georgia’s Department of Economic Development Commissioner Christopher Carr reflects on the Olympic experience: “There is no doubt that the Olympics solidified Atlanta as an international city. The exposure of Atlanta to individuals and to companies from around the world demonstrated opportunities from a business perspective as well as a quality of life perspective.

“C u lt u ra l ly we grew. We’ve got the third most visited Museum of Art, The High Museum. The Olympics were definitely a catalyst and a boost into the international arena. Atlanta has become a cultural center.

Millennials also want to move to Atlanta.”

Even though Georgia began 2015 with an unemployment rate of 7.2 percent—the second highest in the nation—it fell to 6.1 percent by mid-year. According to Commissioner Carr, “The volume of projects that we have had, our tourism hitting record numbers, our trade hitting record numbers, and being a booming entertainment center have caused a steep drop. Governor Deal believes that it is the role of government to get out of the

Anchored by Atlanta, the Char-lanta mega-region is facing sustained growth over the next 50 years. With over $1.3 trillion in manufacturing production each year, the Piedmont region along the I-85 corridor is expected to double or even triple.

way and let the private sector stimulate the economy.”

As in most states, Georgia suffers from an urban/rural conflict of its own in addition to the struggles within the metro Atlanta region. In total, metro Atlanta includes 150 cities across 29 counties. Tax breaks in one county lure companies from adjacent counties. One recent example is the Atlanta Braves move from Atlanta to Cobb County. With 159 counties, the battles are abundant. There is still banter about whether to live ITP or OTP— inside the perimeter of I-285 or outside the perimeter of I-285, a loop traveling almost 64 miles around Atlanta.

Even amidst those struggles, Georgia was named the best state to do business in both 2014 and 2013 by Site Selection magazine largely because of its workforce-training programs and low tax rates. At the same time, Georgia has slashed funding for education by $8.3 billion since 2003 and reduced aid to students attending technical colleges. Smaller county budgets have been weakened from sweeping sales tax reforms that have broadened exemptions for the agricultural industry.

A Tough Competitor One of Georgia’s major conquests is landing the Mercedes-Benz USA headquarters earlier this year. News reports suggest that the State of Georgia offered $23 million in tax credits and other incentives to attract Mercedes from New Jersey. The combined package included job-tax credits, exemptions, development funds and lower corporate tax rates.

Of that total, $17.3 million are five-year tax credits given by the state in exchange for each new job brought to Georgia, and the corporate tax bill will be reduced by $4,000 per job, every year for up to five years. It is expected that Mercedes will bring in at least 800 jobs; they had about 1,000 in New Jersey. Carr said that Mercedes looked at neighborhoods

and schools as well as the business case.

Carr is also proud that Georgia is home to 20 Fortune 500 company headquarters as well as 31 Fortune 1000 headquarters. He goes on to add, “We have 25 consuls general and around 44-45 honorary consuls (number fluctuates). We have a great relationship with our consulate corps. They are part of the fabric of this community. They are a great asset.”

Other successes for Georgia include about 2,100 employees with the NCR Corp.

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“What makes Georgia stand out as an ideal location for business activity is our integrated partnership approach to economic development—from state, local, international, educational sectors and beyond, our teamwork collaboration continues to meet the unique needs of companies that locate in our state.”

Mercedes-Benz USA Chooses Georgia

14

headquarters from Dayton, Ohio; 1,120 employees with Chime Solutions call center, 650 employees with Toyo Tire North America, 550 with Keurig Green Mountain, 500 with Shaw Industries, Pulte Group, Engineered Floors, Athena Health, Verizon Wireless, Greenway Health and Kubota Manufacturing. Most recently, Georgia attracted GeoDigital from Ontario, Canada, and Mizuno USA. Even with all these successes, it was disappointing to Georgia to lose Swedish automaker Volvo Cars to South Carolina. Volvo selected a site near Charleston for a plant that would employ as many as 4,000 workers.

The all-out effort by Georgia was overcome

august/september 2015 | greatercharlottebiz.com

by a package of incentives from South Carolina worth over $200 million for the investment by Volvo of over $500 million.

While stung by the loss of Volvo, the Governor’s chief of staff says that since that decision, other projects have been brought to Georgia totaling more than $800 million and the promise of 3,455 jobs.

An Integrated Growth Strategy The Georgia Department of Economic Development is the state’s sales and marketing arm, the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, locating new markets for Georgia products, attracting tourists and promoting the state as a destination for the arts, events and location for film, music and digital entertainment projects in addition to planning

and mobilizing the resources for economic development.

“Governor Deal is the number one salesman for the state and he is personally involved in everything we do,” says Carr. “To be selected by him to do this job when his number one issue is to bring jobs to this state is a real honor. He calls the plays and we execute.

“What makes Georgia stand out as an ideal location for business activity is our integrated partnership approach to economic development—from state, local, international, educational sectors and beyond, our teamwork collaboration continues to meet the unique needs of companies that locate in our state.

“Our integrated approach to economic development allows our divisions to provide a variety of resources to small towns, big cities and beyond depending on their assets. While the majority of the population resides in metro Atlanta, Georgia’s diverse topography provides different drivers in each community—it could be agriculture (the state’s no. 1 industry), tourism, manufacturing and beyond.

“In addition, we travel internationally to bring business to our state. We have visited Israel, Brazil and most recently, the Georgia Department of Economic Development led a trade mission to Qingdao, Beijing and Shanghai, China in July of this year. The delegation included state of Georgia officials and business leaders who explored business, trade, education, agriculture, and tourism opportunities.

“Georgia had an exceptional year in economic development because of our partnerships with international markets that are thriving and the intelligence and support we receive from 12 international representatives located across the globe. They operate in Brazil, Canada, Chile, China, Columbia, Europe, Israel, Japan, Korea and Mexico.”

“The film industry has also been a point of pride for the governor, the legislature, the mayor of Atlanta,” continues Carr. “It has been a new and exciting evolution to watch the capital investment go from $250 million to a $6 billion. Watching the supporting companies come along—it has been great to watch this mature. Support from local governments and Hartsfield Airport was just great. And, we have a vibrant and growing restaurant scene.”

Agriculture is the number one industry in Georgia with poultry in the north, pecans and peanuts in the center, and soybeans and blueberries to the south. The Hartsfield Airport and the ports move that produce and livestock around the world. Agriculture is

THE VALUE OF

GEORGIA’S

AEROSPACE EXPORTS

RANKS 4TH IN THE U.S. HITTING

$4.3 BILLION

AUTOMOTIVE 200 ARE LOCATED IN GEORGIA RELATED COMPANIES

managed under a separate Department of Agriculture.

However, the two departments work together frequently.

Supply Chain Network Georgia’s transportation infrastructure is incredibly important to their success.

Atlanta is ninth largest city by area, but 18th in terms of congestion. They have recently announced the opening of a new intermodal north of Atlanta to get 50,000 trucks off their roads annually. This intermodal center also helps Georgia reach the interior U.S. markets.

“The Georgia ports also play a major role in the supply chain network,” explains Carr.

“When we are talking to prospects and/or site consultants as well as companies who are looking to import and export, they are a fantastic partner and they work closely with our economic development team.

“One of the most critical factors facing companies today is workforce and our workforce division is playing a key role in ensuring we have a talented and prepared workforce for the future. The Governor’s High Demand Career Initiative has been critically important to opening the lines of communication between Georgia businesses, the University System of Georgia and the Technical College System of Georgia.”

When asked about what industries they target for recruiting to Georgia, Carr says, “Automotive, headquarters activity and innovation are at the top of the list, but we also have significant interest in cybersecurity, Help IT, mobility, financial technology and entertainment.

‘Project activity is strong and the pipeline continues to grow with good, quality projects. From California and New Jersey, to Germany and Japan—headquarter relocations, the automotive industry and international investment are leading the way.”

Geographically Georgia boasts being within a two-day truck haul or twohour flight of 80 percent of the U.S. market. They recently added a new international wing to their airport—one of the world’s busiest—and they are also working to further develop their interstates and deepen their ports so that they can accept bigger ships and cargo.

Without any shame, Carr speaks about using every network available to him.

“We use supplier networks and we try to leverage every asset to our community,” affirms Carr. “Last year, 75 percent of business expansion announcements were for existing businesses.

“We are proud to work closely with Georgia industry to support them with logistics, workforce, job training, pro-business environment, world-class universities and college.”

Georgia Named No. 1 State in U.S. for Business

America’s Top State for Business

Paul Matthews is a Greater Charlotte Biz freelance writer.

Some images provided by the Georgia Department of Economic Development.

Georgia Department of Economic Development Technology Square 75 5th Street N.W., Ste. 1200 Atlanta, Ga. 30308 Phone: 404-962-4000 Principals: Chris Carr, Commissioner of Economic Development Business: The Georgia Department of Economic Development (GDEcD) is the state’s sales and marketing arm, the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, locating new markets for Georgia products, attracting tourists to Georgia, and promoting the state as a destination for arts events and location for film, music and digital entertainment projects, as well as planning and mobilizing state resources for economic development. www.georgia.org

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FLOYD

Rome

CHEROKEE

FRANKLIN

575

BARTOW

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CLARKE

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20

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Athens

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MORGAN

TALIAFERRO

20

NEWTON

CLAYTON HENRY FAYETTE COWETA

JASPER

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MCDUFFIE

COLUMBIA

Augusta

WARREN

85

RICHMOND

PUTNAM DADE

HANCOCK 59

BUTTS

SPALDING

TOWNS

FANNIN

CATOOSA

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GLASCOCK MURRAY

WHITFIELD WALKER

75

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75

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JEFFERSON DAWSON

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FAYETTE JOHNSON COWETA

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RICHMOND HANCOCK

EMANUEL

LAMAR

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JEFFERSON

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95

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BRYAN

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MITCHELL

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95

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GEORGIA’S PORTS CREATE COMPLETE SUPPLY CHAIN NETWORK by pete prunkl

W

hen the Olympics were held in Atlanta in 1996, Georgia’s largest port, the Port of Savannah was ranked ninth in a listing of the top 10 U.S. ports, transporting approximately 456,000 TEUs (twenty-foot equivalent units, a common unit of cargo capacity on container ships).

The Port of Charleston transported nearly twice as many at 801,000 TEUs, but both figures were significantly less than the cargo at Los Angeles or Long Beach at 1,873,000 TEUs and 2,357,000 TEUs respectively.

Fast forward to 2014, Savannah’s port has undergone the largest growth spurt of any of the country’s major ports—a 10.2 percent increase— transporting over 3.34 million TEUs, with. Savannah’s Garden City Terminal emerging as the nation’s fourth busiest for handling cargo containers used to ship retail goods.

Georgia Ports Always Moving Forward

17

Georgia Ports Economic Impact

greatercharlottebiz.com | august/september 2015

NETWORK GEORGIA

country for automobile imports.

Foltz is proud of the records set by the GPA last year in terms of volume and traffic moved through the ports, but he’s quick to point out that the numbers don’t really tell the story of the impact of Georgia ports on the state and the region.

“Whenever we announce a new record in container volume or number of autos moved through the ports, that means that we’re adding jobs to the Georgia economy,” he says. “Everything we do is about bringing more business and jobs to Georgia and the Southeast.”

ZONES:: 1. SW Georgia-Cordele 2. NW Gerogia 3. Port Atlanta 4. I-95 Corridor–North 5. I-95 Corridor–South 6. Middle Georgia

Georgia Ports: Closer to Markets That Matter

Georgia Ports: More Capacity for More Services

And, according to recently released figures for 2015, there has been a 16.6 percent calendar year-to-date increase in container volumes— the Port of Savannah has moved 2.55 million TEUs since the start of this calendar year, and TEU containers grew by 4.4 percent in August alone. That put the Port of Savannah at 3.7 million TEUs for the fiscal year, a whopping 17 percent growth.

“Those are container volumes we didn’t expect to see until 2019,” Georgia Ports Authority (GPA) Executive Director Curtis J. Foltz says with a smile.

Still at the top of the list of busiest ports are Los Angeles and Long Beach, but they only saw a two percent increase in container volume, with all West Coast ports barely able to register a one percent gain in 2014.

The ports of Savannah and Brunswick contribute $39 billion a year to the Georgia economy, according to the University of Georgia, and 100,000 jobs in metro Atlanta alone are related to the port. The Port of Savannah is the fourth-busiest container port in the country and the second busiest on the East Coast, while the Port of Brunswick is the No. 1 port in the

NETWORK GEORGIA DIVIDES THE SOUTHEAST INTO SIX ZONES. EACH ZONE IS TO HAVE AT LEAST ONE INLAND PORT. AND EACH INLAND PORT IS TO SERVE AS A REGIONAL HUB FOR GOODS HEADING TO OR COMING FROM THE SAVANNAH PORT. Supply Chain Network Interestingly, Savannah’s centuries-old rival, the Port of Charleston in South Carolina, has experienced the growth trend in reverse.

In 2000, Charleston, not Savannah, was the fourth largest American container port.

Despite inspired leadership and growth, Charleston in 2014 was ranked the nation’s

PORT OF SAVANNAH (GCT) THROUGHPUT

USWC Port Congestion/ Labor Unrest

15-year Calendar Year History Suez Services Emerge

3,500

IN THOUSANDS OF TEUS

18

2,500 2,000

USWC Port Closure

China Enters WTO 1 M TEU Milestone

1,500 1,000 500

▲21% ▲.5%

▲21%

▲13%

▲23%

▲15%

▲9%

▲14%

▲14%

▲20%

▲10% ▲4% ▲1% ▲2%

▼10%

Source: GPA Marketing (loads & empties)

3,000

Economic Recession

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CAGR BEFORE THE RECESSION USA = 4.8% SAVANNAH = 13.3%

august/september 2015 | greatercharlottebiz.com

CAGR SINCE THE RECESSION USA = 2.0% SAVANNAH = 7.3%

sixth busiest with 1.79 million TEUs. Foltz’s immediate predecessor, Doug Marchand, the Texan who captained the GPA team from 1995 through 2009, initiated the Port’s startling transformation. Foltz was Marchand’s chief operating officer during Marchand’s last five years. An Oklahoma native and East Carolina University bachelors and masters grad, Foltz took over from Marchand in January 2010.

One of Marchand’s first growth-inducing decisions was to balance Georgia’s meager imports with its abundant exports. Sitting less than a mile from the Port of Savannah, and adjacent to Savannah International Airport, was a ready-made partial solution: a 1,700-acre former wetland property known as Crossroads Business Center.

In Marchand’s first year, Home Depot took over 1,400,000 square feet of space at Crossroads, a decision that helped kick off Savannah’s economic development. The idea was to use the center to deconsolidate imported goods to Home Depot retailers in the U.S. Over the next six years, the GPA and the Savannah Economic Development Agency (SEDA) encouraged other corporations to develop distribution centers at Crossroads.

Among the early adopters were Carson Products, Dollar Tree and Wal-Mart. They were convinced of the value of bringing newly imported goods to distribution centers close to the Georgia port.

Additional logistics-friendly business parks sprouted near the port or in Chatham County. IKEA and Target are housed outside the Crossroad complex at nearby Riverport Business Park, which is owned by the GPA. Other centers are located at the privatelyowned NorthPort Industrial Park. The Georgia Department of Labor currently lists over 400 transportation and warehousing establishments in Chatham County.

The GPA estimates there are 225 more portdependent distribution centers in Georgia outside Chatham County, some hundreds of miles from Savannah and Brunswick, the state’s other deepwater port located 80 miles south of Savannah.

Many of these corporations are known in the trade as Beneficial Cargo Owners (BCOs), a concept Georgia Trend magazine actually attributed to Marchand. BCOs are importers that take care of their own cargo at a port. They don’t rely on freight forwarders to move their cargo inland.

“It’s a one-of-a-kind operation for the WalMarts and Home Depots of the world as well as exporters like Black & Decker, Westinghouse

TOP 10 NORTH AMERICAN PORTS 2014 Annual Container Volumes Percent of Total

Los Angeles

8,340,06

13%

Long Beach

6,820,80

11%

New York & New Jersey

5,772,30

9%

Seattle/Tacoma Alliance 3,427,56

5%

Savannah

3,346,02

5%

Vancouver, Canada

2,912,92

5%

Oakland

2,394,06

4%

Norfolk (Port of Virginia) 2,393,03

4%

Manzanillo, Mexico

4%

Houston

2,347,84 1,951,08

3%

Top 10 Ports

39,705,73

63%

North American Ports

62,818,027

fenix fotography

Total TEUs

Port

-

Source: American Association of Port Authorities, 2015

and Hanes,” says Foltz.

Today, thanks in part to Georgia’s vast array of distribution centers and the GPA’s retailerfriendly attitude, Savannah boasts a near 50/50 balance of imports and exports. The average for all U.S. ports tips toward the import side, at 61 percent imports and 39 percent exports.

THE PATH TO SUCCESS IS NARROW. WE’LL HELP YOU FIND IT.

Transportation Corridors Distribution centers are but one of a dozen reasons for the GPA’s remarkable gains. SEDA President Hugh “Trip” Tollison pinpoints 2004 as a watershed year for Georgia ports.

Savannah’s growth, says Tollison, began after ports on the West Coast experienced massive train and truck tie-ups following a sharp, unexpected increase in imports from Asia.

Labor issues, container shortages, inadequate roads and port infrastructure compounded the problem and led to 10-day unloading delays.

“West Coast port congestion had been building for decades,” adds Foltz. “All East Coast ports gained market share as a result.

Logistics managers and major retailers decided they needed to diversify their supply chains and they shifted business to alternative gateways.

“The East Coast got its share and Georgia ports happen to be located in the sweet spot of the Southeast. People and businesses are moving to the Southeast. The supply chain has finally matured.”

Georgia’s sweet spot is expected to get even sweeter. In 2007, 61 percent of U.S. imports came to West Coast ports. But by 2014 that percentage slipped to 55 with the East Coast’s portion rising from 39 percent to 45 percent.

“With 70 percent of the U.S. population living in the eastern one-third of the country, it is

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Georgia Ports: Better Mobility Beyond the Port

reasonable to think that more and more commerce will move to that market,” explains Foltz. “With manufacturers moving south and with the advent of Post-Panamax ships, 50 percent West Coast imports and 50 percent East Coast should soon make headlines.”

The GPA is already underway with the Savannah Harbor Expansion Project (SHEP), dredging the Savannah River to 47 feet to accommodate the Super Post-Panamax vessels that will travel through the Panama Canal after the Panama Canal Expansion Project is completed in 2016.

The GPA is also skilled and knowledgeable in moving automobiles in and out the U.S. Their roll on/roll off (RO/RO) terminal at

20 AREA OF DETAIL

august/september 2015 | greatercharlottebiz.com

Colonel’s Island at Georgia’s Brunswick port is the second largest automobile processing port in the country after Baltimore. Over 700,000 automobiles come in or out of Brunswick with an 80/20 ratio of imports to exports.

Exported autos include MercedesBenz, Daimler, Toyota and General Motors.

Brunswick’s imports run the gamut from tiny to turbocharged: Subaru, Audi, Bentley, Saab, Hyundai, Jaguar, Kia, Nissan, Porsche, Rolls Royce, Land Rover and Maserati.

The automobile business has been strong; “We’re basically full,” says Foltz of the Colonel’s Island facility, and notes that the GPA is embarking on a phased expansion to the south with additional acreage, rail and rail terminal.

Networking Georgia In addition to deepening the Port of Savannah, the GPA is also concerned with how the facility will handle the hoped-for increase in cargo. The GPA does have a $1.4 billion plan to expand its cargo handling capacity, but, Foltz points out, it still needs to create a better network to attract and manage goods heading to and from the port.

The GPA has devised an ambitious outreach to manufacturers and shippers in Georgia and five neighboring states called Network Georgia, a business development plan for Georgia’s ports.

PROPOSED JASPER OCEAN TERMINAL

GEORGIA’S SWEET SPOT IS EXPECTED TO GET EVEN SWEETER. IN 2007, 61 PERCENT OF U.S. IMPORTS CAME TO WEST COAST PORTS. BUT BY 2014 THAT PERCENTAGE SLIPPED TO 55 WITH THE EAST COAST’S PORTION RISING FROM 39 PERCENT TO 45 PERCENT. Network Georgia divides the Southeast into six zones. Each zone is to have at least one inland port. And each inland port is to serve as a regional hub for goods heading to or coming from the Savannah port.

The first inland port created under this scenario was in Cordele in southwest Georgia. The Cordele Inland Port is a privately owned 40acre rail terminal 175 miles west of Savannah, handling cotton, clay, lumber and other agribusiness exports for customers in Georgia, Alabama and Florida. In addition to rail, Cordele owns a private fleet of tractor trailers for transit between Cordele and Savannah via I-75 or Georgia highways 300 and 280.

A second regional port was recently announced—the Appalachian Regional Port in Chatsworth, to service North Georgia, Alabama, Tennessee and parts of Kentucky.

“By providing a direct link to the Port of Savannah, the Appalachian Regional Port will create and expand international markets for businesses, and further the economic success of the Southeastern U.S.,” Foltz points out.

“This new inland port is located in an industrial belt, which includes the production and export of carpet and flooring, automobiles and tires,” he continues. “The Appalachian Regional Port will make those commodities more competitive in the global market by saving port customers money on inland transit costs. Moving more containers to rail will also reduce carbon emissions.”

“As part of our Network Georgia initiative,” says GPA Board Chairman James Walters, “our goal is to create the largest inland intermodal complex in the eastern third of the U.S., expanding our reach with more economical shipping alternatives for new and existing customers.”

Curtis J. Foltz Executive Director Georgia Ports Authority The Appalachian Regional Port will open by 2018 with an annual capacity of 50,000 containers. A 10-year development plan will then double that capacity.

The GPA says it has plans for additional inland ports to be announced. If they follow in the same pattern, they will eventually provide overnight container train services three times a week to the Garden City Terminal or Brunswick. All the freight handled is expected to be international and will extend the reach of Georgia’s ports to areas of Florida, Alabama, Tennessee and both North and South Carolina.

Georgia’s two existing inland ports at Bainbridge and Columbus are small, domestic and rural hubs. It is expected that neither will be included in the Network Georgia initiative.

“We are taking the districts one at a time, and making sure we have good rail and road access in those areas,” Foltz says. “Network Georgia is taking us well beyond the port; it builds a stronger base for commerce for inland locations in the port network.”

Rivaling the Competition Network Georgia covers a region that takes in all of Georgia as well as portions of Alabama, Florida, North Carolina, South Carolina, and Tennessee. Georgia isn’t unique in fostering a network of inland ports, but some have noticed that it is proceeding in a way that certainly seems “overtly ambitious.”

North Carolina’s State Ports Authority, for example, touts inland ports in Greensboro and Charlotte. According to its website, both of those inland ports are: “Strategically located at the heart of manufacturing and distribution sites in the Southeast.”

Network Georgia dwarfs North Carolina’s distribution network, and most certainly will heat up the competition with ports in those states as Georgia seeks to grow its ports trade.

“It’s part of the larger initiative we are taking in order to take our port connectivity to a new level,” Foltz says.

Regarding the long term future of East

Coast ports, GPA’s Curtis Foltz and South Carolina Ports Authority President Jim Newsome agree on the necessity for a new East Coast Intermodal Complex, the Jasper Ocean Terminal (JOT) straddling the two states.

“I firmly believe that it has to be done,” says Foltz. “I think it has to happen. There is not a lot of new port capacity on the East Coast.”

Both Georgia and South Carolina ports will be out of capacity in 10 to 20 years, JOT’s planned start time. JOT’s 1,700 acres technically in South Carolina on the Savannah River will make it the nation’s single largest port. There are many unknowns in developing JOT, but, Foltz adds, “Things that make sense find a way to happen.”

When asked what we in Charlotte can do to enhance the supply chain network between the Queen City and the Hostess City of the South, Foltz was blunt: “Invite me there more often!”

Foltz likes Charlotte. He has lived here five different times—when he graduated from South Mecklenburg High School, and different occasions when he worked for HarrisTeeter, CSX World Terminals and Overnite Transportation.

He challenges Charlotte to support cooperation between the Chamber of

Commerce, employers and the various Southeastern ports as well as efforts to build out our rail network.

“Enhancement,” says Foltz, “begins with dialogue.”

Pete Prunkl is a Greater Charlotte Biz freelance writer.

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Georgia Ports Authority Corporate Headquarters Administration Building 2 Main Street Garden City, GA 31408 Phone: 912-964-3874 Principal: Curtis J. Foltz, Executive Director Ports: Ports of Savannah and Brunswick, Bainbridge and Columbus; Network Georgia initiative ports including Cordele Inland Port and Appalachian Regional Port Terminals: Garden City, Ocean Terminal, Colonel’s Island, Mayor’s Point Founded: 1945 Employees: 1,071 Business: To develop, maintain and operate ocean and inland river ports within Georgia; foster international trade and new industry for state and local communities; promote Georgia’s industrial and natural resources and maintain the natural quality of the environment. www.gaports.com

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AIR

CLEARING THE COALOGIX’ SCR-TECH CREATES A CLEANER ENVIRONMENT

by andrew rusnak

A

sked what makes his company stand out, Bill McMahon, president and CEO of CoaLogix Inc. and its subsidiary SCR-Tech LLC responds, “We’re a relatively small company dealing with behemoths like Siemens, Shaw and Babcock & Wilcox. We’re in that crowd because we think a little differently on the entrepreneurial side. And that’s how we’re changing things.”

McMahon’s company is most concerned about energy and engineering innovation, specifically how to economically reduce the environmental footprint of electric, coal-powered utilities.

“Our world is using significant amounts of coal and we have to make it cleaner,” he says bluntly.

“The United States produces over one-third of its electricity from coal and that will be true for the next 10-20 years; it’s one of the least expensive sources.

Coal comes from inside the United States and there’s a lot of it. In addition, mine safety technology has allowed for automated mining, leading to fewer accidents and greater access to coal with better efficiency.

23 Coalogix’ SCRTech Catalyst Regeneration [Presently Owned by Energy Capital Partners]

greatercharlottebiz.com | august/september 2015

fenix fotography

(l to r) D. Brett Ellis Chief Financial Officer Michael F. Mattes COO and President of USA Operations William J. McMahon President and CEO Joe B. Cogdell Vice President, General Counsel and Secretary CoaLogix Inc. / SCR-Tech LLC “Coal has to be a part of our future,” he continues. “Just to maintain our way of life, we’ve been growing at about 1.6 percent a year for gross domestic product. Our electricity use grows with GDP, so that’s about 6,000 megawatts a year. We need to make sure that the country continues to build power plants of all types to meet this need.”

An increase in coal-powered production means an increased need for pollution control equipment as well, because of the nitrous oxides (NOX) and sulfur dioxide (SO2) released into the air. Fortunately, these pollutants, along with dust, have already been reduced over 65 percent in the U.S. since 1970 despite the increase in power required by a 235 percent increase in GDP, a 54 percent increase in population and a 44 percent increase in electricity consumption.

That’s where CoaLogix’ SCR-Tech’s business comes into play—reducing the environmental footprint of electric, coal-powered utilities.

SCR-Tech uses a chemical process to transform bad emissions into largely harmless emissions, reducing the customer’s cost of reduction by as much as 50 percent. The method known as Selective Catalytic Reduction, or SCR, is the principal NOX emission control technology, and CoaLogix has earned a 70 percent market share in regeneration.

Catalyst Regeneration

24

Charlotte-based SCR-Tech is changing the way that energy producers manage not only pollution, but also governmental regulations. SCRTech regenerates catalysts that are used to reduce pollution produced by coal-fired power plants.

“We are in the holistic application of technology,” describes McMahon. “We focus on coal environmental impact reduction, on how to burn coal logically.”

august/september 2015 | greatercharlottebiz.com

“TO GET A LITTLE MORE TECHNICAL, WHEN COMBUSTION OCCURS IN A COAL-POWERED PLANT, NITROUS OXIDE IS FORMED. IT’S A GREENHOUSE GAS AND, THEREFORE, MUST BE REDUCED. SCR OR SELECTIVE CATALYTIC REDUCTION IS A CHEMICAL PROCESS THAT ACCOMPLISHES THAT WITH ABOUT 90-95 PERCENT EFFICIENCY. SCR DOES THAT

BY TURNING NITROUS OXIDE INTO HARMLESS WATER AND NITROGEN. THE AIR WE BREATHE IS 80 PERCENT NITROGEN.” “To get a little more technical, when combustion occurs in a coal-powered plant, nitrous oxide is formed. It’s a greenhouse gas and, therefore, must be reduced. SCR or selective catalytic reduction is a chemical process that accomplishes that with about 90-95 percent efficiency. SCR does that by turning nitrous oxide into harmless water and nitrogen. The air we breathe is 80 percent nitrogen.”

A catalyst works on a molecular level to transform pollutants. As a plant burns coal to generate power, the exhaust goes through multiple layers of the catalyst material where chemical forces work to remove NOX. The catalyst material is a ceramic and

contains many tiny pores and huge surface area, so much so that each catalyst from one power plant has a surface area that, if stretched out, would make a half-mile wide road around the equator.

Over time, however, the catalyst will become clogged and poisoned with fly ash and other contaminants that reduce its efficiency at removing nitrous oxide from emissions. “In this catalyst are elements like arsenic, vanadium and heavy metals,” McMahon explains. “Our process actually regenerates this catalyst and puts it back into service rather than a landfill.”

These catalysts typically are the size of a compact car and weigh about 3,000 pounds.

McMahon shows a photo of spent catalyst from one typical-sized coal-fired plant. It fills a 15,000-square-foot CoaLogix warehouse and the units are stacked near the rafters of its high ceiling.

In an SCR, the massive amounts of catalyst are deactivated over time. Every three years or so, our customers replace the deactivated catalyst with either new or regenerated catalyst which saves 40 to 50 percent.

“The amount of catalyst that would be landfilled annually equals about 50,000 cars per year,” explains McMahon. “To put that into perspective, Panther Stadium and the lots around it would hold about 10,000-20,000 cars on a game day.

“We do that at a fraction of the cost of new catalyst, and the result is cleaner air and cleaner ground.

“By restoring these catalysts to full performance, SCR-Tech can reduce a coal-fired plant’s landfill impact by 75 percent. Further, because it can regenerate a used catalyst for much less than the cost of a new one, utilities save money,” continues McMahon.

“Our customers here and in China have billions of dollars of catalyst in their power plants.

About one-third of that has to be replaced every year. There’s a replacement market of hundreds of millions per year, not counting the inspections, catalyst management, tuning and general SCR management we also perform.”

SCR-Tech also buys catalyst and regenerates it. In its west Charlotte warehouse, the firm has about 2,000 megawatts of catalyst, cleaned and ready to customize with the right mix of chemicals for an individual customer.

Employing a range of professionals, including chemical engineers and mechanics, CoaLogix is a 24/7 operation. At the company’s Charlotte headquarters off Westinghouse Blvd., catalysts are shipped in to be regenerated from across the country and to China.

Once there, they are inspected and tested in

SELECTIVE CATALYTIC REDUCTION (SCR) 2

Ammonia is added to the flue gas.

1 Flue gas containing nitrogen oxides is admitted from the boiler to the SCR.

4 This reaction converts the nitrogen oxides to pure nitrogen and water.

The flue gas then continues throught the catalyst channels for additional treament or atmospheric discharge.

Catalyst Module

3 The gas mixture flows over catalyst elements, which cause the nitrogen oxides and ammonia to react.

Catalyst Layer

Selective catalytic reduction (SCR) systems are a means of reducing the nitrogen oxide emissions of power generators. The figure above shows the typical design features and location of an SCR catalyst reactor installed in a coal-fired power plant.

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a lab where the determination can be made as to what the best regeneration process will be. The team gets to work removing the contaminants and some of the active ingredients (chemical engine) from the catalyst and then reapplying a new chemical engine, returning it to like-new condition, testing it for quality and shipping it back out.

A Catalyst for Growth Born in Manhattan and raised just north of New York City, McMahon earned a bachelor’s in nuclear engineering from Georgia Tech, an MBA from Xavier University, and an advanced management degree from Duke University’s Fuqua School of Business.

Unique technology was a strong draw for McMahon, a nuclear engineer who had run

multiple energy-related businesses, when he took the reins of SCR-Tech. “The impact of this technology was just unbelievable,” he recalls.

“I knew this was going to be a fun business.”

McMahon explains, “The technology was created in Germany in the late ’90s. SCR-Tech was purchased by Catalytica in 2004 and they brought me on board in 2005. I have a broad background in environmental science,” describes McMahon, “and I knew it was time to regroup. I changed out almost the entire management team and we started focusing on the technology—and sales really started taking off.”

In 2007, McMahon brought Mike Mattes on board who is now president of USA Operations.

When Catalytica merged with another

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company, the team found there was an opportunity to purchase SCR-Tech. They promptly found private equity backers and they won the bidding in a sale in November 2007.

CoaLogix and SCR-Tech are presently owned by Energy Capital Partners, a private equity fi rm with over $13 billion in capital commitments. The firm focuses on investing in the power generation, midstream oil and gas, electric transmission, environmental infrastructure and energy services sectors of North America’s energy infrastructure.

SCR-Tech has been awarded the Platts Global Energ y Award for Commercial Technology recognizing leadership and innovation (kind of the Academy Awards of the energy industry) a number of times, as well as the NCTA Green Tech Award. CoaLogix beat out hundreds of nominees and finalists, including the China National Offshore Oil Corporation, Lennox Industries and Salt River Project.

In addition, the company has a new designation to tout. It has recently been recognized by the On-site Consultation Program’s Safety and Health Achievement Recognition Program (SHARP) as a small business employer operating an exemplary injury and illness prevention program. Acceptance into SHARP from OSHA is an achievement of status that singles a business out among its peers and exempts the worksite from OSHA programmed inspections during the period of the SHARP certification.

Catalysts for Environmental Stewardship Friends since 1980, McMahon and Mattes both have a deep commitment to protecting the environment. “You do feel good that you’re doing something for the environment. Ninety percent of my career has been environmental.

I always heard people talk about doing something to reduce pollution, but I wanted to actually do something about it,” says Mattes.

“What we do is keep the NOX out of the air,” explains Mattes. McMahon adds, “I think we’re doing something really big for the environment, for the world—that’s important.”

T he i mplement at ion of c at a ly st regeneration has a significant positive impact on

“COAL HAS TO BE A PART OF OUR FUTURE. JUST TO MAINTAIN

ROW

OUR WAY OF LIFE, WE’VE BEEN GROWING AT ABOUT 1.6

Non-Coal 60%

PERCENT A YEAR FOR GROSS DOMESTIC PRODUCT. OUR

WORLD ELECTRIC GENERATION

BY FUEL

China

Coal 40%

COAL USE

BY NATION

Europe Canada

South Korea

Russia Japan

ELECTRICITY USE GROWS WITH

USA

GDP, SO THAT’S ABOUT 6,000

India

MEGAWATTS A YEAR. WE NEED TO MAKE SURE THAT THE COUNTRY CONTINUES TO BUILD POWER PLANTS OF ALL TYPES TO MEET THIS NEED.” pollutants. The carbon footprint for regenerating catalyst is much less than manufacturing new catalyst. As a result of this, regenerated catalyst annually removes the same amount of CO2 that would be removed if 100,000 traditional vehicles were replaced with electric vehicles. The regeneration process can also save power plants around $200 million per year.

The desire to clean up the pollution put out

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by coal-fired power plants lies at the heart of CoaLogix’ business philosophy, but the company is also committed to its customers. As Mattes explains, CoaLogix strives to be a trusted advisor for their customers, making the company more of a service provider.

“Our customers are dealing with very complicated environmental and operational issues.

We assist them in evaluating the options that are available and the impact of these options on their 10-year budgets,” says Mattes.

“In most cases, our recommendations include both new and regenerated catalyst. We make a conscious effort to give the customer the

PUT YOUR COMPANY’S

advice that we would want if we were in their shoes doing the same thing.”

Sometimes it might cost CoaLogix in the short-term, as McMahon points out an instance where the company recommended that a potential customer purchase a new catalyst instead of regenerating, but ultimately the company came back to CoaLogix to have the new catalyst regenerated.

Mattes notes, “I think increased government regulation coupled with significant economic challenges, is one of biggest challenges our industry is facing. Our goal is to meet our customer’s ever-changing needs. This often means

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North Carolina plant, in December of 2014. We built this plant with our joint venture partner Longking, a large, publicly traded environmental company in China. That plant will service 10

“OUR CUSTOMERS HERE AND IN CHINA HAVE BILLIONS OF DOLLARS OF CATALYST IN THEIR POWER PLANTS. ABOUT ONE-THIRD OF many projects need to be performed on an emergency basis, so we have to be very flexible.

“We do that by having a strong organization and good people, and we have a lot of communication with our customers. We talk to our customers regularly, becoming that trusted advisor, and this, in turn, allows us to earn and keep their business.”

Catalysts for China When it comes to pollution, China is high atop the list of the world’s greatest opportunities. As a result, the Chinese government has imposed some of the most stringent regulations and environmental standards in the world.

Experiencing this firsthand, McMahon and Mattes decided that serving the Chinese market

would be the perfect opportunity to carry out their mission of reducing the environmental footprint of power plants.

“We’re trying to do the same thing in China,” comments McMahon. “China has the tightest nitrous oxide regulations in the world now. They’re at 100 to 50 mg of nitrous oxide/ cubic meter. The U.S. is at about 135. The EU and Japan are at 200.

“At the same time, the Chinese market in general is arguably close to 8 times larger than the U.S. It’s grown very fast. It’s too big to ignore.

“We have a much better foothold today in China because we presently have 12 plants running on regenerated catalysts, but the potential is much larger. We also decided to build a plant in China, the next generation from our

EVERYTHING IS DATA. BIG DATA. And we’d love to help you leverage that power.

THAT HAS TO BE REPLACED EVERY YEAR. THERE’S A REPLACEMENT MARKET OF HUNDREDS OF MILLIONS PER YEAR, NOT COUNTING THE INSPECTIONS, CATALYST MANAGEMENT, TUNING AND GENERAL SCR MANAGEMENT WE ALSO PERFORM.” percent of the market, so we have our work cut out for us there.”

This partnership has allowed CoaLogix access to new technologies and products that offer greater environmental protection for the 12 Chinese power plants the company currently serves, but it also allows for the potential to bring new technologies to CoaLogix’ U.S. customers.

McMahon concludes, “Between adding products and services here and in China and building in China, we’re always looking out for our customers and for opportunities to create the best value for our customers, employees and investors.”

Andrew Rusnak is a Greater Charlotte Biz freelance writer.

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CoaLogix Inc. SCR-Tech LLC,

A CoaLogix Inc. Company

11707 Steele Creek Road Charlotte, N.C. 28273-3718 Phone: 704-827-8933 Principals: William J. McMahon, President and CEO; Michael F. Mattes, COO and President of USA Operations Founded: 2003 Parent Company: CoaLogix, owned by Energy Capital Partners Employees: 235 globally, 120 in Charlotte Revenues: Less than $75 million Locations: Headquartered in Charlotte; plants in Charlotte and near Shanghai, China Business: Provides selective catalytic reduction services, environmental protection. www.coalogix.com www.scr-tech.com

GLOBAL LEADERS SEEK CHARLOTTE BUSINESSES Ambassadors, Diplomats and Distinguished Leaders See Charlotte as Entry to U.S. Domestic Market 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 foreign-owned WACC President firms, they also benefit from the and CEO L.J. support mechanisms this comStambuk munity provides to help them acclimate and thrive.

The World Affairs Council of Charlotte (WACC) is a very integral mechanism in that regard. As a regional center for education and discussion of world affairs, the Council seeks to provide leadership for global thinking, believing that a broad perspective is necessary for effective competition in the global economy and for responsible citizenship in an increasingly interdependent world.

We are pleased to present some of our program highlights.

Associate Professor, China Maritime Studies Institute (CMSI) U.S. Naval War College The World Affairs Council of Charlotte recently hosted Dr. Lyle Goldstein, Associate Professor at the China Maritime Studies Institute (CMSI) withGoldstein in the U.S. Naval War College, who discussed his observations about diffusing the emerging U.S.-China rivalry as described in his newest book, Meeting China Halfway: How to Defuse the Emerging US-China Rivalry.

According to Goldstein, though a U.S.–China conflict is far from inevitable, major tensions are building in the Asia-Pacific region. These strains are the result of historical enmity, cultural divergence, and deep ideological estrangement, not to mention apprehensions fueled by geopolitical competition and the closely related “security dilemma.”

Despite worrying signs of intensifying rivalry between Washington and Beijing, few observers have provided concrete paradigms to lead this

troubled relationship away from disaster. Goldstein’s approach to U.S.-China relations is dramatically different from others.

His explicit focus is on laying bare both U.S. and Chinese perceptions of where their interests clash and proposing new paths to ease bilateral tensions through compromise. He proposes “cooperation spirals”— the opposite of escalation Goldstein: spirals—to illustrate policy Meeting China Halfway proposals.

Goldstein provided highlights of his book wherein he not only parses findings from the latest American scholarship but also breaks new ground by analyzing hundreds of Chinese-language sources, including miliNational Comm. tary publications, never beon U.S.-China Relations fore evaluated by Western experts.

Goldstein described some of the 100 policy proposals he makes in his book, not because these are the only solutions to arresting the alarming course toward conflict, but rather to ignite a genuine debate regarding cooperative policy solutions to the most vexing problems in U.S.-China relations.

Corporate Membership and Support: Will You Invest in 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 5................. Voyagers Club: CHINA Town Hall 2015 with Jamie Horsley, Executive Director of The China Law Center at Yale University October 8................. WACC CEO Series with Michael Tarwater, CEO of Carolinas HealthCare System October 14............... WACC Speaker Series with Major General Michael J. Kingsley, Chief of Staff, AFRICOM October 22............... WACC Speaker Series with Karl-Theodor zu Guttenberg, German Federal Minister of Defense (2009-2011); German Federal Minister of Economics and Technology (2009) October 28 WACC Ambassadors Circle Series with H.E. Ashok Kumar Mirpuri, Ambassador for Singapore to the United States November 10 ........... Partnership Program with Providence Day School, hosting Christo Brand, Nelson Mandela’s former prison guard and longtime friend November 12 .......... WACC Speaker Series with Carrie Hessler-Radelet, Director of Peace Corps November 18 .......... 2015 WorldQuest / Academic WorldQuest December 3 ............. WACC Speaker Series with Matthew Bishop, Globalization Editor for The Economist magazine

www.worldaffairscharlotte.org

LOBAL OPPORTUNITY MINDSET by gene stowe

Hyde Park Partners Innovates Productivity Solutions for Manufacturing

“To see what could be versus what is.” That was the vision of Clifton Vann IV for his company Livingston & Haven, LLC five years ago.

“Going a step beyond…” That is his vision now for the various entities encompassed within his Charlotte-based holding company Hyde Park Partners, Inc., which owns and provides corporate services for Livingston & Haven, MROStop LLC and AEG International, LLC. Vann has always been in the vanguard of American ingenuity in engineering and manufacturing. He, like his father Clifton B. Vann III, the consortium’s chairman, believes in doing “whatever it takes to ensure the long-term health of U.S. manufacturing.”

“To see what could be versus what is... and going a step beyond...� ~ Clifton B. Vann IV

31 Clifton B. Vann IV at TEDxCharlotteED greatercharlottebiz.com | august/september 2015

Livingston & Haven (L&H), Vann’s flagship company, was formed as an industrial distribution company in Charleston, S.C., in 1947, that later expanded into pneumatic components and hydraulics. Vann’s father had joined the firm in 1966, and in 1973 opened a branch in Charlotte that became the headquarters for the company when he purchased it in 1980.

Today, L&H is a $75 million leading industrial technology provider in the Southeast.

The company specializes in providing solutions in the automation, hydraulic, pneumatic, lubrication and connector industries.

L&H utilizes a collaboration of engineers and industry-focused specialists to provide innovative productivity solutions for manufacturers. L&H also offers a variety of services including: engineering design and fabrication, research and development and resource efficiency and conservation.

“The common theme in our solutions is that we provide an off-balancesheet engineering resource for our clients without them having to bear that cost.”

Clifton B. Vann IV CEO Hyde Park Partners, Inc.

Charlotte Small Business Spotlight

Vann considers L&H a problemsolving company that helps manufacturers work smarter. With some of the highest fabrication capabilities in the country, its engineering solutions can look more like artwork than industrial tools. Vann likens it to “providing an offbalance-sheet engineering resource for clients without them having to bear that cost.”

“We’ve worked on solutions that range from improving the speed of machines that put sleeve labels on plastic bottles, to designing and reconstructing a rocket cradle used to facilitate the launch to the International Space Station,” touts Vann.

“We are a large distributor, so we took 68 years of playing with different kinds of products, 6,000 customers in 150 industries, and said ‘Given our experience, I bet we could write our own music.’”

Promising Markets in Developing Countries L&H represents more than 850 vendors with one million products across a vast array of industries in the

broad field of motion control, including fluid power, hydraulics and lubrication—“Anything that needs to be moved or packaged or distributed or built,” Vann says.

That includes aerospace, automotive, steel, medical, consumer, packing, printing, textiles, cigarettes, beer, tires, plastics, carbon fiber, extruded aluminum, fiber optics, wood products, nails, tools, and the plastic safety inserts for electrical outlets.

Employees are spread across the Southeast, numbering approximately 190, including 50 home-based salespeople.

The company’s products have evolved since its postwar beginnings when it offered gas pumps and air brakes for trains.

“We’ve changed as technology has changed,” says Vann. We’re branching out into more energy-related technologies. Solar was not part of our past.”

Vann sees promising markets in developing countries where millions of people are coming out of poverty. A decade ago, for example, Ethiopian farmers had to finance the $125 price of conventional irrigation pumps; today, they can afford to buy solar-powered pumps.

It has resulted in a broader application of skills to new products, processes and industries, all the while keeping the focus on high quality and unsurpassed knowledge the company is known for. “After all,” Vann says, “the process of vetting vendors for solar panels isn’t all that different from vetting vendors for hydraulic pumps.

“We had to think outside the box,” he continues. “We didn’t want to do something so far afield that we didn’t know what we were doing. We kept the same sort of paradigm thinking about ourselves, but we changed what we do.”

To free money for new ventures, Vann hired Strategic Pricing Associates, a consultant whose advice improved the company’s margins.

“We created a way to rob Peter to pay Paul without Peter feeling poor,” he says. “We were able to improve our corporate margins by almost 4 percent. It was a very conscious plan to develop strategy, but also to figure out a way to pay for the strategy.

“Going to Africa, making our own products, takes time. We need to be in position to be able to withstand the test of time.”

Unlocking Foreign Trade In 2009, Vann had launched an online sales initiative MROStop which revealed the potential of global marketing far beyond the company’s six-state Southeastern

base. MROStop is an e-commerce resource for quality MRO products like hose, fittings and adapters; hydraulic products; pneumatic products; pumps and lube equipment; electrical supplies and fasteners.

MROStop demonstrated the promise of broader marketing. The website made $4,000 in 2009 after it was launched in August, $60,000 in 2010, $300,000 in 2011, $1 million in 2012, and $3 million in 2013.

Customers from such far-flung places as Russia, the United Kingdom and Thailand were paying high freight costs to get quality products from the distributor—mostly the same products L&H already sold stateside.

The site now sells in 72 countries.

“That made us look internationally,” Vann says. “That made us look at other products, and that made us look at existing products in a new way. We started to wake up to this idea that there’s this whole world out there— to think about small business on global scale rather than regional or national. It’s like a gateway drug.”

MROStop also opened a solution to the distributor’s longtime, frustrating, limited ability to deal with multiple big suppliers, each wanting to block competition.

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This is Livingston & Haven

Clifton Vann IV on Carolina Business Review

34

Others in the industry addressed the problem by buying other distributors, a consolidation phase that Vann, who had a longstanding territorial contract with Bosch, did not consider a solution.

“I decided not to do that because it was more of the same,” he says. “I decided to look for new territories outside the U.S. It turned out I could do things for our current suppliers in Africa that I could not do in the U.S. This was a new opportunity.”

They started in Tanzania, where Vann now has a store with 10 Tanzanian and two U.S. employees. At a trade show this year, they drew crowds with a Parker under-sink reverse-osmosis water filtration system.

“We’re getting tremendous interest in that in Tanzania. While this is not a product we would think about selling here,” Vann points out, “we’re not only developing new products— we’re finding new markets for our existing products, too.

“We can get business in other countries and people want to buy from us. We’re selling solutions, but we’re really brokering knowledge.”

In the process of exploring solar energy, Vann found that Bosch, the longtime partner for hydraulics, made solar panels with a distributor in Mooresville. So L&H started researching and developing locally generated and distributed direct current systems.

“Then we started building systems for

august/september 2015 | greatercharlottebiz.com

B o sc h,” Vann says, adding that the systems have markets in both the United States and Africa. “Our distribution was very nimble; we could do things for them in weeks that would otherwise have taken months. We became a contract R&D house for Bosch for renewable energy. Our facility continues to be a guinea pig for the next level of technology for Bosch.

“We’re not really in the solar business; we’re in the power management business.

We look at power usage and identify waste—it makes no sense to create solar power to supply waste. We reduce the total energy footprint, then talk about where energy comes from, saving enough money to pay for the solar system. That’s really the way we approach everything,” Vann describes.

“Now we’re imparting our knowledge with solar, water, hose, fittings, and lubrication to our African friends,” says Vann. “Of course, that portfolio will grow as we determine what the needs of the community are and where those products are. When you think about it, we’re a concierge service basically for the continent of Africa.”

American Engineering Group (AEG) was the next step in Hyde Park Partners’ mission to provide innovative solutions to the global community. AEG offers the highest quality engineering products and expert engineering solutions; products that improve efficiency and quality of life with a focus in water purification, renewable energy solutions and industrial technologies.

The approach involves strong connections among L&H, AEG, and MROStop that accelerate the success of each. AEG’s Firefly technology, for example, is for sale on MROStop.

“It was all done purposely with synergy in mind,” Vann says. “We want to broker our U.S.

c u s tomers from our core businesses to our customers in Africa. We’re about selling the knowledge. If we don’t have it, we’ll find somebody who does and sell it to you—from bridges and cranes to skyscrapers and aircraft carriers.”

These types of brainstorming sessions have fostered a mindset constantly open to opportunity. Vann is working on a plan to sell water drilling equipment hoses from Tanzania to Ethiopia.

“My challenge was to unlock the thinking of the team, to think about our business a little differently, to think about who our customers could be, rather than who our customers are. When you think about what’s next for your company, think about what you know, not what you do.”

“My challenge was to unlock the thinking of the team, to think about our business a little differently, to think about who our customers could be, rather than who our customers are,” he explains. “The mindset was really the biggest challenge. When you think about what’s next for your company, think about what you know, not what you do.

“We usually know a lot more than what we do. What do you do every day that other people will pay you for? The risk of doing nothing is guaranteed risk. Let’s play offense, not defense.”

Unlocking Trade With Africa A number of Hyde Park Partners’ solarpowered products are already successful in Nigeria—namely the Firefly and the Oasis and the newer GoSol Power Box. Made under the AEG aegis, Firefly is a solar-powered device that powers up to five bright LED lights, is lightweight, customizable, and has a built-in USB port to easily

charge mobile devices—especially useful in a region where cell phones are as ubiquitous as sunlight but little electricity.

“We’re selling them in-country,” Vann says. “We’re working with NGOs, faith-based organizations, high net worth individuals— anybody who’s interested in changing the life of someone in Africa.”

Installation takes no training, the necessary screwdriver is included, the plastic box is fireproof, the lights are waterproof, and the software-run system prevents pirating by curious Chinese competitors.

Vann also works with local banks to help customers get microloans and with local cellular providers, a natural fit.

In addition to Firefly, the company created Oasis, a water filtration system that can use solar or other power to produce 75 gallons of drinking water a day by filtering any water except seawater, including chlorinated and brackish water. Smaller microgrids can run enough for a home, while larger microgrids can provide power to filter water for businesses, banks, hospitals, and other commercial operations.

“One of the things we have to overcome in Africa is the idea that solar doesn’t work,” Vann says, explaining that cheap Chinese products have made African customers wary of the technology. “We’re having to re-educate them on what solar is or can be.”

The former CEO of GE in Nigeria was powering his 12,000-square-foot house with diesel generators until he bought a AEG-designed microgrid system and saw how electric lights should shine. He flew to Charlotte and bought a second system to double his power this year.

When neighbors stopped hearing the noisy generators, they found out about this U.S.-designed microgrid and started ordering systems for themselves.

Likewise, in-

ternational firms that find a home in Charlotte often attract their business associates to join them.

Vann also has a Tanzanian partner in AEG Tanzania, part of American Engineering Group that hires local Tanzanians, a welcome contrast to most Asian and European firms doing business in the country.

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“ P a r t of our commitment in going to Africa was not only to bring American quality products and American technology and innovation, but to integrate ourselves into the culture and be good stewards,” he says. “It gives us a chance to present a first impression. They know American products; they love American products. It’s one of the places in the world where we are still cherished.”

The local stake qualifies Vann to export to

Tanzania, opening a route for Hyde Park Partners customers to sell in that country. “I can go to our customers that make cranes, paving equipment, chicken processing equipment, steel mills, electrical plants—you name it—and say, ‘Do you want to sell something in Tanzania?’

“I can broker that now. I’ve established a bridge to make that possible,” he says.

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“It was all done purposely with synergy in mind.

We want to broker our U.S. customers from our core businesses to our customers in Africa.

We’re about selling the knowledge. If we don’t have it, we’ll find somebody who does and sell it to you—from bridges and cranes to skyscrapers and aircraft carriers.”

Hyde Park Partners, Inc 11529 Wilmar Blvd.

Charlotte, NC 28273 Phone: 704-588-3670; 800-825-4969 Principals: Clifton B. Vann III, Chairman; Clifton B. Vann IV, CEO; Tim Gillig, President, Livingston & Haven, LLC; James McGinn, President, MROStop LLC; James T. “Tod” Skinner, President, AEG International, LLC Members: Livingston & Haven, LLC (1947), MROStop LLC (2009); and AEG International, LLC (2013) Employees: 190 over the Southeast: Georgia, North and South Carolina, Tennessee, West Virginia, and Virginia In Business: 68 years Revenue: Over $75 million Business: Holding company that owns and provides corporate services for Livingston & Haven, an engineering company providing solutions in the automation, hydraulic, pneumatic, lubrication and connector industries; MRO Stop, an e-commerce resource for hoses, fittings and other related technologies; and AEG International, focusing on solar and other renewable energy technologies, water filtration systems, and industrial hose fittings for the global market. www.livhaven.com www.mrostop.com www.aeginternational.us www.go-sol-power.com www.hydeparkpartners.us

R POWER AFRICA R CHARLOTTE Power Africa Charlotte 2015 “We have a keyhole view of Africa,” says Vann, the self-styled ‘ambassador between Charlotte and the African continent.’

“It’s not your National Geographic Africa anymore,” continues Vann. “These people have more buying power than the Chinese or the Brazilians. This place has come into modernity. Nigeria just had its first democratic election in history.

“The world changes and grows up. There are 50 to 100 million people coming out of poverty every year on the planet.”

Power Africa is an initiative of the U.S. Agency for International Development to bring power to sub-Saharan Africa where 600 million people—70 percent of the population—lack electricity.

Vann was so impressed with the opportunities Power Africa opens for improving people’s lives and the potential it

represented for emerging markets that he hosted a Power Africa conference here in Charlotte in September 2014, bringing together about 130 business and political leaders from Africa and the United States.

Vann plans to collaborate with other regional leaders to host a larger Power Africa conference here next spring. A collateral benefit: Positioning Charlotte as a leading place of interracial partnership and mutual benefit at a time of heightened attention to black-white relations.

“How do you get middle market American and small business more involved in being the internal driver for the export economy?” he asks.

“It’s not your National Geographic Africa anymore.

These people have more buying power than the Chinese or the Brazilians.

This place has come into modernity. Nigeria just had its first democratic election in history.”

The answer, he maintains, is to combine education—both technical skills and cultural competence—with a regional perspective on economic growth and attracting international partners.

“I think what we’re seeing in industry, at least where I live in manufacturing, employers are less and less concerned whether you have a degree or not,” Vann says. “We don’t care what you know; we care what you can do.

We’re going to have to educate you on what to do anyway.”

Global connections call for cultural training, including language education, beginning in K-12. Vann has learned that Nigerian culture is more gregarious and boisterous like American culture while Tanzanians are more reserved and humble, with different expectations in the partnership.

“How can we be global if we don’t understand where you are on the map and what it means to be you?” he says. “If you want to relate to these people, you can’t go with your American glasses on. You have to begin to learn what motivates them. It’s not the same as it is with us.”

By way of example, Vann recounts how a visiting CEO of Coca-Cola from Tanzania somewhat nervously got into a car at Lowe’s Motor Speedway for a 185-mile-an-hour spin

around the track, but so enjoyed it he keeps a picture of the experience on his desk and tells everyone who visits about Charlotte. “ C h a r l o t t e ’s a great place— Southern hospitality, great place to be,” Vann says.

“As they come, they define their good time. They go home and tell everybody about it.

Let’s start talking it up and not taking it for granted and thinking about what’s next. We need a vision. I think we’ve got a good one. It resonates.”

For Vann, that vision involves a re-invigoration of American innovation that he has seen dwindle in recent decades.

“Our free country allows us the freedom of innovation and individualism that we grossly underestimate,” he says. “We used to be explorers; we went to places like the moon. It feels like today, we’re just happy to sit on our own porch.

“Get off the porch, talk to people you think might not be related, look under rocks that look uninteresting, network. To me, that’s part of the concept in terms of what’s we’re trying to sell to local businesses—get off your island, keep innovating. Companies have to continue to re-invent themselves.

“Look at the foreign companies that have come here,” Vann says. “The first German one comes, their friends come later. There’s unbelievable things happening around the world, many of which we’re not participating in. I think there’s a great opportunity there if we can open this concept up to more American companies—not just Africa but in general.”

Firefly and Rural Electrification

37

Gene Stowe is a Greater Charlotte Biz freelance writer.

Some images provided by the company.

greatercharlottebiz.com | august/september 2015

ARE YOUR CIRCUIT BREAKERS

SMART?

Atom Power

utilizes digital technology to dynamically control circuit breakers by zenda douglas

W

hile most industries have marched onward with smart computers, smart phones, smart cars, and smart household appliances, electricity—the very thing that powers all the rest—has been lumbering along in the shadows of its old-fashioned mechanical, thermal magnetic-based distribution system for close to a century now.

“We have analytics and controls over everything else,” exclaims Ryan Kennedy, CEO of Atom Power, LLC. “Electricity got left out. Circuit breakers, through which electricity is distributed, open with a switch and close with a switch—purely mechanical. Their characteristics cannot be altered.”

The Atom Switch is a circuit breaker that provides all of the functionality of a traditional circuit breaker but is software driven,allowing operators to dynamically change characteristics.

From early on in his electrical background, Kennedy thought there must be a better way, a safer, more efficient way, to distribute electricity. His company, Atom Power, established in 2014, is now ready to prove this idea and change how the electrical distribution industry operates and how we all receive electrical power.

The Series A funded energy technology company moved in 2015 into new headquarters in the Portal Building on the University of North Carolina at Charlotte campus.

ATOM SWITCH Core Features: • Solid-state switching, overcurrent, and short circuit protection • Extremely fast—mitigating short circuit and arc flash hazards • Dynamic time-current characteristics • Analytic data output such as current, voltage, KW, KVA, power factor, and temperature

• Built-in intelligence: It knows where it’s at in the system • 100 to 600VAC output rating • Electronic ink display illustrating circuit breaker rating, name, and real-time current • Autonomous operation

39

Atom Switch

greatercharlottebiz.com | august/september 2015

SOLID-STATE POWER DISTRIBUTION ATOM SWITCH

ATOM OS

ATOM PANEL

ATOM SWITCH

ATOM SWITCH

Ryan J. Kennedy CEO Atom Power, LLC

New Circuit Breaker Technology

40

Atom Power has developed a new circuit breaker technology that utilizes digitally controlled solid-state components built into a product call the Atom Switch. The Atom Switch is a circuit breaker that provides all of the functionality of a traditional circuit breaker but is software driven, allowing operators to dynamically change characteristics.

“Using the Atom OS software platform, we could have one Atom Switch be a 20-amp circuit breaker one day, then simply program it to be an 80-amp circuit breaker on another day, depending upon need and circumstance,” explains Kennedy.

In addition to being able to manipulate the ampacity, the Atom Switch is fast, operating over 100 times faster than mechanical circuit breakers, mitigating short circuit and arc flash hazards. Atom Power has created an end-to-end product, both with the hardware and tightly integrated software.

“For the first time in history, we will allow full digital control of an electrical infrastructure all while making it safer and easier,” says Kennedy.

Every electrical system within any building has an incoming utility service and is protected by a network of circuit breakers which “trip” or interrupt the flow of electricity in the event of a short circuit or power overload.

august/september 2015 | greatercharlottebiz.com

In today’s commercial buildings, multiple branch circuit breakers feed everything from the HVAC system to the lights and receptacles to security.

Circuit breakers have to withstand huge amounts of electrical current and they are very imprecise when they trip. “There are only limited methods by which you can tell anything about them or how much current is flowing through them. The existing systems operate under a big veil of mechanical complexity,” says Kennedy.

Engineering companies are routinely engaged to do complicated, detailed coordination studies to decipher the order in which circuit breakers will trip in case of an overload as well as to determine how much electrical energy will be created in the event of an arc flash event due to a short circuit.

“An inherent cost of engineering a building is in doing coordination studies, which figure out which circuit breakers trip first, which parts to use for large systems, and how big the fireball will be in the event of a short circuit event. Everything you do affects everything downstream,” explains Kennedy.

“These studies are quite expensive for building owners to have done. Now, OSHA

has adopted standards for ensuring electrical safety in the workplace (most hazards of which are caused by the slow speed of mechanical circuit breakers), making these studies just short of mandatory.”

“Using the Atom OS software platform, we could have one Atom Switch be a 20amp circuit breaker one day, then simply program it to be an 80-amp circuit breaker on another day, depending upon need and circumstance.”

Atom Power is lifting the veil of complexity with its software designed to make the function of its solid-state circuit breakers visible. With the software in play, operators can now see all of the circuit breakers and panels in their infrastructure, see how much power is being consumed at the circuit breaker level, change the characteristics of the system, and

ATOM PANEL Features: • • • •

Contains all the Atom Switches, fully networked together Ethernet communication output to the Atom OS software platform Plastic construction for a beautiful, lightweight product Electronic display illustrating name, fed-from, voltage class, and amp rating • 100 to 600VAC output rating

control remotely (turn breakers off and on).

“It’s been taken for granted for so long that this is just complex; that to know how to actually install a full electrical system, you have to have all these experts, conduct all these studies, analyze all these products, and be told what to buy. Our product is self-aware; it knows where it’s at in the system. It tells you everything about itself,” says Kennedy.

The slow tripping speeds of traditional circuit breakers are also problematic—they can cause short circuits and arc flash hazards.

When the circuit breaker is slow to respond to a short circuit, huge amounts of energy are released with risks that include fires, explosions and personal injury.

With thousands of breakers in a system, operators can’t truly know for sure which one will trip first in a fault, which is why they must rely on engineered coordination and arc flash studies, says Kennedy.

“Believe it or not, these problems still have not been solved,” Kennedy continues, shaking his head. “Conversely, an entire industry has been born out of these problems. Lines of protective wear are available for workers who must handle these electrical risks. Insurance companies are now asking building owners what their arc flashing hazards are within their facilities.

“Our Atom Switch trips over 100 times faster than a traditional mechanical circuit breaker,” compares Kennedy. “As soon as we see a short circuit happening, we snuff it out— no delay. It knows to trip itself before the one upstream. Now we don’t have to have such huge amounts of power or design a system to tolerate such huge faults. We are going to eliminate arc flash and short circuit hazards in the industry.”

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greatercharlottebiz.com | august/september 2015

Breaking the Circuit The fact that an entire electrical system can be controlled by three products is huge.

“This represents an incredible leapfrog in technology,” touts Kennedy. “Currently, it takes hundreds of different parts in various voltage, amperage, and short circuit capacities to do this job. Now there is one box that I can program from 0 to 100 amps. It’s a truly unified design.”

Sensibility Sparks Ingenuity

UNC Charlotte PORTAL

42

In 1994, Kennedy, a Charlotte native, was fresh out of high school and unsure about what he wanted to do. His mother was an architect; his father taught photography.

Sparked by the amount of construction underway in uptown, Kennedy decided to become an electrician: “I started out with tools and a hard hat.”

“I didn’t understand why we were doing a lot of things in the trade the way we were doing them,” he recalls. At that time, he says, a lot of emphasis was put on the tradesmen to figure out how to carry out the drawings and intent of the drawings.

As an electrician, Kennedy soon discovered that he wanted to be involved with the engineering behind the systems; to be a person who designs some of it. That desire prompted him, five years later, to return to school and study electrical engineering at the UNC Charlotte, and to become a professional engineer licensed in several states.

He continued to work in industrial and commercial construction in Charlotte, but his thoughts about how electrical power should be distributed never left him entirely.

In 2004, while working on a project with solid-state lighting controls using “bricks of silicon,” the question surfaced again: “Why can’t we use transistor-based, solid-state materials to provide and control power to electrical circuits in general, not just lights?”

august/september 2015 | greatercharlottebiz.com

It seemed the industry was not ready.

When Kennedy, the newly graduated engineer, talked with fellow engineers about this idea, most were confounded by the technical challenges and preferred to stick with the old, tried-and-true circuit breakers.

Kennedy notes that this was around the time Google was becoming popular and before the Internet of things. So he tabled the idea once more.

Until 2012.

“Talking with some colleagues at UNCC, it dawned on me that there had been quite a few advances in the past 10 years, especially around solid-state devices for power applications. It prompted me to revisit the idea,” shares Kennedy.

“Myself and a couple of Ph.D folks got together and discussed the physics behind it, some potential applications and agreed that there is a huge opportunity.”

Atom Power will soon have three products on the market: the Atom Switch (or solidstate circuit breaker), the Atom Panel which will contain switches of deliberately selected ampacities and that will allow operators to see their system at work, and the tightly integrated Atom OS software which allows operators to see, control, and modify their entire electrical distribution system.

“This represents an incredible leapfrog in technology.

Currently, it takes hundreds of different parts in various voltage, amperage, and short circuit capacities to do this job. Now there is one box that I can program from 0 to 100 amps. It’s a truly unified design.”

Atom Power is focused on the facilityside commercial and industrial power distribution markets. “They could be installed in a large high-rise building or something that only requires one panelboard,” says Kennedy.

“That’s the beauty—this is an accessible product that will reach all markets.

ATOM OS SOFTWARE PLATFORM



Automatic layout of distribution system

ATOM OS

ATOM OS

ATOM OS

  

Change and control Atom Switch characteristics Built-in metering of Atom Switches Control breakers remotely



Automatically coordinate between Atom Switch breakers

“We’re trying to fix something that is broken; change the industry. It is a slow process but in a $40 billion industry, slow is a relative term. I expect it to take about 20 years for our technology to become the standard for power distribution.”

fame or notoriety, according to Kennedy, but he does want the company to be a household name.

“We’re trying to fix something that is broken; change the industry. It is a slow process but in a $40 billion industry, slow is a relative term. I expect it to take about 20 years for our technology to become the standard for power distribution.”

Zenda Douglas is a Greater Charlotte Biz freelance writer.

Some images provided by the company.

Atom Power Portal Building, Ste 218 Charlotte, NC 28223 Phone: 704-718-2268 Principals: Ryan J. Kennedy, CEO; Greg Crumpton, Chief Marketing Officer; Dr. Dennis Kouroussis, Chief Technology Officer Established: 2014 Employees: 11 Business Summary: Integrates hardware and software into revolutionary, seamless, end-to-end power distribution products; developer of digitally controlled solid-state circuit breaker technology for commercial and industrial buildings. www.atompowerusa.com

Asked about the company’s biggest challenge, Kennedy responds simply, “To make it work consistently, safely and to go through UL (United Laboratories) and National Fire Protection Association testing—it’s never been done before.”

Atom Power is not in this for money or

Water Wise

From France, With Love

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.

by barbara fagan

TEAM CRÉATIF USA PRODUCES APPEALING BRANDING AND PACKAGING by andrew rusnak

J

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.

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

17 fenix fotography

16

Team Créatif USA march/april 2015 | greatercharlottebiz.com

greatercharlottebiz.com | march/april 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.

11

march/april 2015 | greatercharlottebiz.com

greatercharlottebiz.com | march/april 2015

› Great design makes

by zenda douglas

All Seven The Best of

educate empower engage

BOTH WORLDS Carolina Urology Partners Wraps Its Offices Around the Community

I

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.”

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.

Focuses on the Development oF a Globally competitive WorkForce For charlotte area employers

“We cover a very large swath of the region.

Between the seven divisions, we take care of about a quarter of a million patients.”

W

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.

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 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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›

Steve Patridge President and CEO Charlotte Works

~Michael R. Cram M.D.

m ay 2 0 1 1

w w w. g re a t e rc h a r l o t t e b i z . c o m

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

m ay 2 0 1 1

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by jim froneberger

Growth

A Southern

GENTLEMAN

Fenix Fotography

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.”

Charlotte’s New City Manager Carlee is Well-Suited to the Job

C

Equity

› Great design turns

by jim froneberger harlotte seems like the perfect fit for new city manager Ron Carlee. He spent over three decades in the Washington, D.C.,

Show me the Money!

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

Frontier Capital Partners with High Growth Business Services

W

a big grin. “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.”

Carlee says he stumbled onto the Charlotte opportunity almost by accident.

He was working as chief operating officer of the International City/County

leads into customers.

What does a profitable, high growth company do when it sees an exciting new

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

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.

(l to r) Michael Ramich Partner Andrew Lindner Managing Partner Joel Lanik Partner Richard Maclean (not pictured) Managing Partner Frontier Capital

30

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.

Ron Carlee City Manager City of Charlotte greatercharlottebiz.com | may 2013

september 2012 | greatercharlottebiz.com

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greatercharlottebiz.com | september 2012

by pete prunkl

Eden ■■■

urban

The Scottish Muir

Revisited by zenda douglas

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

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 consistently 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.

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.’

may 2013 | greatercharlottebiz.com

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

greatercharlottebiz.com | may 2013

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.

9

greatercharlottebiz.com | march 2013

by paul matthews

GLOBAL

& COMMUNITY

Opportunities Grounded in Ethics

Gardner-Webb University's Godbold School of Business: Where Bright Futures Ignite

bu i l di n g

“I

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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Peter A. Pappas Founder and President Pappas Properties, LLC july 2013 | greatercharlottebiz.com



march 2013 | greatercharlottebiz.com

PLACEMAKING

22

Tommy Cleveland adds another solar fact of life: “It costs more to retrofit a house for solar than new construction.”

The Club at Longview

SHARON SQUARE

“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.”

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.

8

greatercharlottebiz.com | july 2013

38

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

your marketing materials more attractive and eye-catching, as well as easier and more enjoyable to read.

Great design conveys your message clearly and impressively at a time when every moment counts.

july 2013 | greatercharlottebiz.com

16

Your customers and potential clients choose your business through your marketing materials.

Photos: Fenix Fotography

[bizprofile]

Photo: Fenix Fotography

“There is art to this as well as science.

We were able to put more of the right-brain approach to it so that it would be compelling for the customer, so they could see and feel it. We’ve made our products very simple and easy to understand. Now you can walk up to an electrical panel and even someone with no electrical experience can understand what’s going on. We’ve made the user experience one of the highest priorities.”

Kennedy expects that Atom products will be a draw to clients interested in new technology that want something that looks really cool in their building. “Now, electrical panels are ugly and you can’t see anything happening. With these,” he motions to his boxes, “you can see it working—lights light up and you can see how much power is moving through.”

Kennedy, who sits on the board of the Electrical Engineering Department of the UNCC College of Engineering, is joined by two partners in founding Atom Power.

Greg Crumpton, founder of Charlotte-based AirTight Mechanical, Inc., an HVAC company that was recently acquired and merged with FaciliTech, under the Service Logic, LLC brand, serves as chief marketing officer.

Denis Kouroussis is the third founder and serves as chief technology officer. Kouroussis holds a Ph.D. in electrical and computer engineering from University of Toronto and was the founder and CEO of Volta Energy. With 10 years of experience in the industry his background spans the world of semiconductors, EDA and power electronics.

Prior to becoming an entrepreneur, Kouroussis had designed and implemented solutions in low power design and developed algorithms for power grid verification with numerous publications in the subject matter. Kouroussis previously held engineering and technical management positions at ATI/AMD, IBM Microelectronics and Apache Design Solutions.

The staff of Atom Power is diversified across engineering disciplines. “We have mechanical, electrical and computer engineers on board,” says Kennedy. “We need an equal share of all of those. There are also many resources here locally that we can use to ramp up.” Kennedy expects to almost double his staff within the coming year.

Kennedy finds Charlotte to be a better place to operate now that it has, itself, become an energy hub. “Charlotte is becoming internationally known for power and energy engineering. This is where you go to learn about energy.”

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

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.

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greatercharlottebiz.com | march/april 2015

greatercharlottebiz.com | august/september 2015

[publisher’spost]

OF INTEREST: Promoting Thought Leadership Across the Carolinas

EMERGING ECONOMIES OFFER GREAT BUSINESS OPPORTUNITIES

W

e know that 80 percent of global business activity is outside the United States, and that 82 percent of business growth occurs outside our borders.

Furthermore, 95 percent of consumers are beyond the borders of our country.

Thinking globally, you might first look for opportunities in Mexico or Canada, or maybe even Europe or China because of their strong and growing economies.

Perhaps you should re-think that and instead examine emerging countries where John P. Galles you can have the most impact.

Emerging economies need so many Publisher things; they will likely have only increasing needs for products and services from the United States. They are seeking support and business strength to build Please feel free to contact me at infrastructure, energy sys704-676-5850 x102 or jgalles@ tems, health care facilities, greatercharlottebiz.com. and educational programs.

At the same time, you have to determine how to use your limited resources and time. You can learn a lot from the experiences of others doing business outside the U.S. For example, Clifton Vann, CEO of Hyde Park Partners, provides significant insight into the opportunities in sub-Saharan Africa.

WORLD BIRTH RATES (2007-2012)

175-232 125-175 80-125 60-80 40-60 20-40 10-20 0-10 Births/1,000 Women

44

M Tracy Hunter . Licensed under CC BY-SA 3.0 via Commons - https://commons.wikimedia.org/wiki

His business activity in Nigeria and Tanzania and other African nations is indicative of the opportunities that exist in the global marketplace. His company’s success even prompted him to to host the inaugural

august/september 2015 | greatercharlottebiz.com

“Power Africa Charlotte” conference in the fall of 2014. He is working to hold an even larger conference in May of 2016 to educate other businesses to the openings for business growth.

One very important indicator for opportunity is population growth. Emerging countries face staggering population growth rates within just a few decades. As a benchmark, for a country to sustain itself at current population levels there must be a fertility rate of at least 2.10 babies per woman over her lifetime. In the United States, the current fertility rate is about 1.90. That is just below a replacement rate— and if that rate is maintained or lowered, the U.S. population is likely to decline absent immigration.

A brief survey of birth rates around the globe shows that most European countries are likely to decline in population because their fertility rate is not replacing the current population. For instance, Germany is among the lowest with a fertility rate of 1.44 per mother; Italy is at 1.49; the United Kingdom is at 1.90. Outside Europe, Russia is at 1.64 and Japan is among the lowest at 1.46. These numbers are likely to produce smaller populations over the next 50 to 100 years.

On the flip side of the fertility rate charts, Nigeria is among the highest at 5.25 per woman, Zambia is at 5.76 and Kenya is at 3.54. These nations and other similar countries will see rapid growth.

When you examine the impact of these numbers along with improvements in health care within each country, you can project population growth into the future.

Europe is not likely to grow without immigration, China’s population will decline, but Africa is likely to grow rapidly as the economies within that continent improve their health care and diets. Where population is rapidly growing, there are even greater economic opportunities.

It is very interesting, and sometimes amusing, to discover the incentives offered by various countries to raise their fertility rates. Some nations have declared

holidays so that couples will have more time procreate.

Russia has identified September 12th as the “Day of Conception” giving couples the day off from work to conceive babies.

The government then rewards couples who “give birth to a patriot” during its June 12 festivities with money, cars, refrigerators and other prizes.

The French government provides tax and transportation breaks as well as child care and pre-school and health care benefits. Their package of incentives must be working because France now has the highest birth rate in Europe.

In Sweden, parents are given 18 months of government paid leave from their employment. In Spain and Italy, they are offering cash incentives—with one village offering $15,000 per child. In Great Britain, the government extended paid maternity leave from 26 to 39 weeks. The measure also allows fathers up to 26 weeks of unpaid paternity leave.

Denmark has even created a national campaign to have more babies. They call it, “Do It For Denmark!” View this amusing if somewhat risqué video to see Do It For their campaign: https:// Denmark w w w.y o u t u b e . c o m / watch?t=12&v=vrO3TfJc9Qw. An analysis of population growth will provide interesting information about likely business opportunities in foreign countries. It will also lead you to an understanding of the needs that a country is seeking to fulfill.

The Hyde Park Partners profile demonstrates one company opening a pathway to commerce with sub-Saharan Africa, which has enormous needs but also increasing resources to dedicate to procuring products and services addressing those needs. You may want to learn more.

The opportunities are substantial and there are fewer competitors in these early stages of growth.

We want to say

Thank You

to all of our members!

1st Americard Adams Outdoor Advertising American Red Cross American Security Mortgage Andrew Roby AVP Nationwide Productions Bethlehem Center BlueCross BlueShield of North Carolina Boatsman Gillmore Wagner Boingo Graphics Business Wise Carolinas HealthCare System Carolina Panthers Charlotte Hornets Charlotte Knights Charlotte Observer Charlotte Regional Partnership Classroom Central COGNITION CPI Security Systems Crisis Assistance Ministry Diamonds Direct Southpark Duke Energy First Tee of Charlotte Greater Charlotte Biz Greater Charlotte HTA Hampton Inn & Suites at Phillips Place Hilldrup Movers Hood Hargett & Associates Humane Society of Charlotte Ike Behar Jamie Kimble Foundation for Courage Keffer Hyundai Killingsworth Environmental L.A. Management Company, LLC Larner’s Office Furniture Littler Mendelson, P.C. March Forth with Hope Foundation NewDominion Bank Palm Restaurant Piedmont Natural Gas Premier Sotheby’s International Realty Red Rover Communications Ronald McDonald House of Charlotte Rose Chauffeured Transportation Ltd. Second Harvest Food Bank of Metrolina See The Matrix Simile Imaging Solutions Time Warner Cable Business Class UNC Charlotte Extended Academic Programs WBT Radio 1110-AM Wells Fargo Advisors-The Golden Group WTVI-PBS Charlotte YMCA of Greater Charlotte

Membership has its rewards year after year at Hood Hargett Breakfast Club!

Don’t miss our 2015 speakers. Join Today!

Friday, January 9th Troy Vincent Former NFL All Pro & Current NFL Executive VP of Football Operations

Thursday, April 2 Woody Durham “Voice of the Tar Heels”, former play-by-play radio announcer at University of North Carolina at Chapel Hill

Friday, September 11th Elizabeth Smart Abduction survivor and Founder of the Elizabeth Smart Foundation

Friday, February 13th Jim Knight Culture, Branding and Customer Service Catalyst

Friday, March 6th Jim Morgan President & Chief Executive Officer Krispy Kreme

Friday, May 15th Nick Faldo & Ian Baker-Finch CBS Sports Golf Analysts

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Friday, November 13th Michael Leiter Former Director of the National Counterterrorism Center

Interested in Membership? Contact: Jenn Snyder at 704-602-9529 or email jenn@hoodhargett.com www.hoodhargettbreakfastclub.com

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