Greater Charlotte Biz 2003.12 by CLT.biz & Charlotte Biz & Greater Charlotte Biz

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cfiaflotte iz December 2003 Volume 4 • Issue 12 Publisher John Paul Galles jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane maryl .a.lane@greatercharlottebiz.com

Creative Director/ Asst. Editor Tara Mill er tmiller@greatercharlottebiz.com

Account Executives Ken Biltcliffe kbiltcliffe@greatercharlottebiz.com Belinda Kenda ll bkendall@greatercharlottebiz.com Emily G . Lu ndel l elundell @greatercharlottebiz.com

Contributing Writers Susan Benedict Ell ison Clary Andrea Cooper Heather Head Lynn Mooney John E. Silvia

Contributing Photographer Wayne Morris

Greater Charlotte Biz is published 12 times per year by: Galles Communications G roup, Inc . 560 I 77 Center D rive, Suite 250 Charlotte, NC 282 17-073 5 www.greatercharlottebiz.com 704.676.5850 Phone 704.676.5853 Fax Press releases and other news-related information, please fax to the attention of "Editor" or e-mail: editor@greatercharlottebiz.com. Editorial or advertising inquiries, please call or fax at the numbers above or e-mail: info@greatercharlottebiz.com. Subscription inquiries or change of address, please call or fax at the numbers above or visit our Web site: www.greatercharlottebiz.com. All contents

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[publisher'spost] $8 7,000,000,000.00 Susan Sontag once remarked, "War-making is one of the few activities that people are not supposed to view 'realistically'; that is, with an eye to expense and practical outcome. In allout war, expenditure is all-out, unprudent- war being defined as an emergency in which no sacrifice is excessive." In October, the President and Congress approved an $87 billion package to fund the occupation of Iraq and operations in Afghanistan. Since we are no longer at war, one wonders whether such after-effects of war-making are prudent. Personally, my own preference would be to avoid such an expenditure if at all possible (but it's not), given the enormity of our federal budget deficit. In fact, this number is not even included in the calculation of our current budget deficit, which is approach i ng $500 billion. Wasn't it Ill inois Senator Dirksen who said, "A billion here and a bill ion there, and pretty soon you're talking real money... "? With inflation and the growth of government spending, we might be near a new quote using the descriptor "trillion." Eighty-seven billion dollars ... That is a staggeringly large sum for anyone to conceptualize. Media outlets and think tanks have attempted to describe it in terms of images and alternative spend ing programs. Acco rding to one source, a stack of eighty-seven billion dollar bi lls wou ld compare to a 10-story bui lding on two-thirds of a city block! Or if we were to spread t he $87 bill ion bills over a football fie ld, it would not "afford" much of a game as the players would be buried in 55 feet of money! It is true that $87 billion could be spent a lot of different ways; Newsweek and the Center for American Progress, among others, have offered comparisons with alternative spending programs as fo llows: • $87 billion is more than all of the states' current budget deficits, combined. • $87 billion is more than twice the amount of national spending on Homeland Security. • $87 bi lli on is roughly the tota l of two years' worth of all U.S. unemp loyment benefits. • $87 billion is enough to pay 3.3 million people who have lost their jobs a check fo r $26,363 each. • $87 billion is 87 times the amount the federal government spends on after school progra ms. • $87 billion would allow schools to hire 2,000,000 new teachers. • $87 billion is 8 times the total of Pelt grants to students to finance the cost of attending four-year public colleges . • $87 billion is 9 times what the federal government spends on special education. • $87 billion is 10 times what the federal government spends on all environmental protection. • $87 billio n is more than the cost of the first three year5 of the Medicare prescription drug proposal. • $87 billion is enough to give $300 to every man, wom an and child in America . The alternate uses of $87 billion are not the issue. Fight ing the war against terrorism or rebui lding a country in the aftermath of war is not a cho ice, at least not for us here in America. Appreciating the alternate uses of $87 billion, however, is helpful in realizing the enormity of the task being mounted, and realizing the cost of doing so relative to other uses that might more directly, and certainly more immediately, affect each and every one of us. This is the very kerne l of po li tics, a process we too after overs imp lify in backlash to its complexity of tradeoffs. So frequently there is no one best choice, but a combination of choices that are better than another. As electioneering heats up, and the real issues rise to the top of our national debate, we will all have a chance to choose candidates that reflect our ambitions within those tradeoffs. Get ready! The 2004 elections give us another opportun ity to pa rticipate in that debate and give direction to our country!! i

Galles Communications Group. Inc .

december 2003

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Charlotte's Economy: Perils of False Choices Commentary by John E. Silvia, Ph.D., Chief Economist, Wachovia Corporati on

uilding upon my last column concerning the evolution of the Charlotte economy (October 2003 column), we can begin to understand the context in which economic decisions for the Queen city must be made. Charlotte's evolution has delivered us a complex, diverse economy and a society that does not fit nicely into a molded set of choices for future progress. Let's examine this economy and the balance it requires for success.

Branding Charlotte: Neither Blue nor White-Collar Some cities are characterized by their blue-collar heritage , such as Pittsburgh or Cleveland. Other cities are decidedly white-collar, such as Washington D.C. Charlotte, however, is both. Our city is both a blue-collar magnet for NASCAR, hardware (Lowe's) and steel (Nucor), as well as a white-collar world of finance. Therefore , there is no need to choose office and service development over manufacturing and transport. Finance can thrive uptown while manufacturing and transport will do very well on Westinghouse Boulevard and near the airport. Economic diversity is key to successful economic growth. Economic shocks arrive in many forms, and therefore an undiversified economy, which relies on one major industry, no matter how glamorous at the time, is setting itself up for volatility in both economic growth and economic success. For a vivid example, we should review how much impact the dot-com bubble had on home prices in San jose relative to the impact the bubble had on Charlotte home prices over the same period. In Graph l on the facing page , the glamorous, one-dimensional economy of San jose led to spectacular home price appreciation during 19992000 but then outright depreciation when the dot-com bubble burst. 8

december 2003

Meanwhile, the diversified Charlotte economy registered relative tortoise-like home price appreciation. Yet when recession hit, Charlotte prices continued to rise.

Neither Transit nor Trucks, But Transportation Population will continue to grow in the Charlotte metropolitan area (Graph II, facing page). That growth will be in both the central core of the city with apartments and condominiums and in the outer areas with apartments and single-

"For Charlotte, the choice is not between having and not having a financial assistance program, but how generous the aid and how focused the

in the city. Traffic and congestion will grow over time in Charlotte. Transit will not eliminate congestion. However, transit will reduce future congestion. Moreover, the biggest regret some communities may have in the future is that transit options are not avc.ilable for their residents. Here, I refer to the rapid growth in Union and Cabarrus counties and consider the commuting issues 20 years ahead. From my experience reviewing transit systems at the U.S . Senate, one of the best decisions Charloue made was the use of alternative mode of transit - light rail , buses and heavy rail- for different density/commuting patterns. This flexibility will be key to controlling costs over the long run. Finally, transit , like highways, is actually a regional choice (even if current elected community leaders do not recognize it) , and , given the growth of York County, S.C. , perhaps even a multi-state imperative.

effort will be." -john E. Silvia, Ph.D.

family homes. The transportation needs of both areas of the Charloue region will reflect the demands for mass transit and roads. There is no choice between transit and highways Both will be required for a population with increasingly flexible workplace and lifestyle demands. Moreover, both mass transit and road options are regional choices reflecting the broad metropolitan area. To the casual observer it seems that all truck and car traffic is forced to enter the city because there is no loop of Interstate 485 that connects Interstates 77 and 85 at any of the four possible corners. Improvement in air quality will be limited in Charlotte until the 485 loop is completed and trucks and commuters no longer have to idle at traffic lights

False Choices: Neither Government nor Private Sect o r Domination Unlike Waohington, D.C. or the recent California story, Charlotte is not a jurisdiction dominated by government decision-making. Nor is it an area where decisions are made by a small clique of private interests. Instead , Charlotte appears to have developed a more balanced approach. This more balanced approach will be tested in the years to come on se路veral fronts, but two in particular. First , at the margin , public sector financial assistance is useful in securing private firms' commitments to expand or relocate to the Charlotte area. We have seen this in several recelll moves. lncemives alone do not make firms move or expand but, at the margin, they do lower the cost of relocation and they signal the community commitment to attracting and retaining employers. For

greater charlotte biz

Charloue, the choice is not between hav-

Graph 1: Ho me Prices Year-Over-Yea r Percent Ch ange

ing and not having a financial assistance program , but how generous the aid and how focused the effort will be. Land use decisions within and

35%

outside the transit corridors will inspire

25%

another controversial balancing act between public and private decisionmakers. This is not an issue of unbridled

20%

capitalism against tyrannical government although, at times , the rhetoric appears

10%

to trend that way Rather, there is some economic rationale to cluster high-density economic activity closer to transit and

30%

Green line ;::; San Jose Blue line= Charlotte

15%

-5%

leave lower density acti vity to be pursued in areas away from transit. In many American cities it is common to fi nd apartments, retail and entertainment sites clustered along transit lines while single family residential and campus office

Graph II: Charl otte MSA Po pul ation Percent Change

Blue bar = Percent Change in 2002 Green bar= Average Annual Growth, 1997-2002

parks are further away This is not a matter of government fiat but a rational economic response to the amount and type of traffic and the cost of land. Conclusion Union

Economics is a science of choice. For Charlotte these choices reflect the relative diversity of our workforce and traffic patterns. Single-minded decisions often come with high costs because the marginal costs of committing economic development or traffic to only one outcome are extremely high. Instead, society benefits when these patterns reflect a balance of uses. Achieving that balance is sometimes difficult when individuals call out for absolute solutions in a complex world, we must step ca refull y

Corporation. Prior to joining Wachovia, Silvia worked on Capitol Hi/ os senior economist for the Senate

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Joint Economic Committee and chief economist for the Senate Banking, Housing and Urban Development Affairs Committee. He had forme rly been chief economist of Kemper Funds and managing director of Scudder Kemper Investments, Inc. Silvia holds a B.A. and Ph.D. in Economics

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greater charlotte biz

december 2003 9

Legislative and Regulatory Highlights for Area Employees State Borrows from Private Lenders

For the third time this year, orth Carolina has borrowed money to pay unemployment benefits. The state has b:mowed from private lenders and will repay the loans when the Emp!o)mem Security CJmmission (ESC) collects unemployment _llSUrance taxes from employers. Labor Commissioner Cherie Berry fears that borro11~ng may hinder the stabilization of the unemployment fund. However, ESC Chairman Hany Payne Jr.

interest rates were lower, saving North Carolina more than $6 million in interest payments. The state, which once had one of the largest unemployment funds in the country, now has one of the smallest. (Hicko1y Daily Record)

IRS Increases Standard Mileage Rate

The IRS has increased the standard mileage rate by one and one-half cents to 37.5 cents per mile for business dri1~ng next year. The

Bcnuses and Overtime Mmy members may offer employees some sor of •onus this month but do r.ot know whethe to :ount this as income when calculating a::1 ho rly or non-exempt eoployee's "regular -ate• for :letermining overtime pay for :~ours wo ked over 40 in the w.Jrkweek. The Fair Labor Standards Act (FLSA) spdls out what types of payments may or nay not be excluded in computing an employet's regJlar rate. In general, cliscretiomuy bonu.:e5

believes the fund will be restored if North Carolina experiences sooe economic recovery next year to reverse the current trend of paying out more than th:: economic fund is receiving. The first two times North Carolina borrowed money it went to the government for interest-free loans. Th third time, Wash-

employers may reimburse employees who use personal vehicles for company business. In addition, the rate for use of an automobile in connection with charitable services, obtaining medical care and as pan of a deductible house-

gift=, and employer payments to catain prditsha..ing, thtift and savings plans rray be excuded. A bonus is discretionary when it is n unexpected , one-time payment that is n01. part of a defined bonus pbn with specific crit·:ria. For example, if a company says on December 21st that, as a -eward for the en· Floyees' hard work, all employees will b~

ington had to add interest to the loan. So, the state opted to go to private lenders, whose

hold move 1vi.l1 increase to $.14 per mile. (Employee Benefits Alert)

rec ving a surprise $100 bonus, this would be;: truly discretionary bonus.

new rate goes into effect january l, 2004. The standard mileage rate is the rate at which

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A bonus is non-discr~tionary when it i.: part of an announced borus plan. For exarrple, if a company says that employees 1vill reccive a $500 bonus if the company makes a $:0,000 profit this year, this would be noodiscetionary Section 778.33 1 of the FLSA describes hov. to handle awards for performance on the job..l states that "where a prize is awarded br the t..uality, quantity or e!Ticiency of work doot by :.:.e employee during hts customary working ours at his normal assigned ta;ks it is Jbvbusly paid as additional remuneration fer ~mp oyment. Thus prizes :Jaid for cooperati:m., :our.:esy, e!Ticiency, highest production, best J.tterdance, best quality of wor~, greatest nu-n·Jer t•f overtime hours wm.--<ed, etc., are part of the cgular rate of pay." As such, non-discretionary bonuses like aue::dancc bonuses, pay-for-performance bonues, and bonuses given in lieu of an anr-ual pa.,' increase must normally be added to tl-e empbyee's regular pay in order to properly calc ..:late the regular rate and the 01 ertime ra·e. Taxhg Holiday Gifts Mar; businesses offer some kind of gi ft to em pi >yees during the holidays. While many

greater charl:>tte biz

omp:nies still hand JU!Lhe holiday ham.

2003-2004 Wage & Salary Adjustment Survey

ethers g:> all out for fc·rrr3l dinners, caslt-onus=s, or gift cenifbnt:s. Wha _many ernplcyers may not

ruL~.

however, is L'UL

t:lany of their gifts to ~r:-.ployees are con;dered :o m1=~nsation

by the lrtemal Revenue

~ervice

Employers need to stay cu rrent with pay increase tre nds in order to reta in their most valuable employees. The Employers Association's ann ual Charlotte area Wage & Salary Adjustment Survey serves as a resource for local companies to compare actual base pay increases for the previous year and projected increases for the upcoming year. Below is a part ial summary of this year's survey. Please contact Lauren Merritt at The Employers Association at (704) 522-801 1 for more information.

QRS) :md are subject _o f~deral and staLE incor:-e taxes, as well a~ Social Security tal{es. 1 he way around h;.·ing to c.dd the VJlue of a r-ft to the emplo:e.:'> W-2 ir.come is _o

-Jene=t, a gift must bo: c. product or s~rv_cz that s so o-rnall that it is m tc:1sonable or Jdrrnisrali\-cly impractical

irclude it in inccne.

Ther: is no specific ooll:r amount ir_ Lre tax aws lOr de minimus gifts In general, an en~Jyer can hand out a

P roj ect ed : 7/l/03 - 6/30/04

Co mpa nies who gave Wage/Sala ry In creases

Companies wh o will give Wage/Salary In creases

Res ponses

(%) Average Adj ustment*

Num ber of Respo nses

(%)Ave rage Adjust ment*

Manufacturing Non-Manufacturing Total

37 33 70

2.95 3.46 3.19

32 34 66

2.95 3.38 3.17

Non-Exempt Office & Tech nical Manufacturing Non-Manufacturing Total

33 39 72

3.01 3.82 3.45

29 37 66

3.02 3. 50 3.29

3.38 3.82 3.62

30 40 70

3.10 3.46

3.51 3.42 3.46

26 31 57

3.31 3.83 3.59

Num ber of

Employee Category

makE sure the gift qwL "-es as a "de minirus" Tinge benefit. To quc:_i~· as a de -nini-nu:; iinge

Actu al: 7/l/02 - 6/30/03

Non -E xemnt Hourly Prod uctio n, Nonuni on

. urkl:r :>r a ham and no::: be requirec to i::lclude Exenmt Ma nageri al & Profess io nal

the \.:tlue in the em(:io·...t.e's W-2 income, beca_se a mrkey is ".anpble personal J:roperLy' that giv~

::~as

a nominal 18lllf'. But if an employer

each employee a :::10 gift cenifica·e LO

Manufacturing Non-Manufacturing Total

32 39 71

3.41

Exec utive and O tli cer

purchase a turkey at a g-ocery S<ore, the gift cf a "cc.sh equivalent" rJJ longer qualifies as a de

Manufacturing No n-Manufacturing Total

25 29 54

mini-.us fringe benef. L A "cash equi.ralcn" is any :nethod such as J g'Jt certif-cate or the usc of a ned it card that .:~ l k:ws purchase of a prod-

*Please note: The above "Actua l" results do not re fl ect the 23% of respondents who did not increase employee wages. The above " Projected" resul ts do not reflect the 24% of respondents who will not give employee base pay

uct cr service as if C1-Sb were being used Any

increases.

casr an employer gi"'e:: Loan employee at

an~

LimE- whether it is a salary, bo:ms, ho.iday gift, x safety award- must be added w the

Source: The Employers Association 2003 Wage & Salary Adjustment Survey

con ·inutd 01 page 37

ONEFORTHE 0FFJCE

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d e ce m ber 2003 II

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ACCOUNTING FOR GROWTH DANIEL, RATLIFF & COMPANY GOES ABOVE AND BEYOND TO BRING AUGMENTED ACCOUNTING, BUSINESS DEVELOPMENT, AND INFORMATION TECHNOLOGY SERVICES TO THE SMALL-BUSINESS MARKET IN CHARLOTTE

he satiric band Monty Python may have tongues in their cheeks when they sang, 路路: t fun

to charter an accountant ," but at Daniel, Ratliff & Company, chartering an accountant is fun -at le<:st, it is if your definition of fun is finding a champion for your small business. Daniel , Ratliff & Company's full range of growth-oriented business development services combine with a supportive approach to offer small, entrepreneurial businesses a helping hand in building their bt.siness.

Putting One and Two Together When Debbie Daniel, her husband john Ratliff, and friend Terry Corriher founded Daniel, Ratliff & Company in 1996, their goal was to offer tax, audit and business development services to the small-business market. >

greater charlotte biz

<lece:mber 2003 13

They believed that this market needed more senrces than could be offered by small two or three-person CPA offices, but more :mention and guidance than they coulc get at the larger regional and national accounting firms. Daniel had run a private practice since l99L , serving this type of smallbusiness c ientele, but as a sole proprietor she w=:1s able to offer only a small portion of the services she envisioned. Ratliff was working in the Charloue office of Daniel Professional Group (DPG) where he and Daniel had meL, and Corriher was managing DPG's Mooresville office. Says Daniel , "l had no in-house audit expertise so l was using John's firm LO do the audit and compilation work that l needed ... and so we just looked at each other one day and we said, 'We're going in different directions in the morning. Why are we doing this separately?""

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.sil~plt

They sat down together with Corriher ard wrote a business plan. In 1996 they purchased the Charloue and Mooresville offices of DPG , and rolled Danid's existing practice into it. Although Daniel is no relation to the "Daniel" of DPG, the coincidence provided convenient brand recognition when they relabeled the firm "Daniel , Ratliff & Company." The three partners in the new company form a well-rounded team. Ratliff's almost 30 years in audit and review services complement Daniel's approximately 20 years in the profession. Corriher, who grew up in China Grove and knows the Mooresville region intimately, brings 17 years in accouming LO his management of the Moores\ille office. And although she had been in her own practice for two years, Daniel herself had helped found the Charlotte offices of DPG in the mid1980s and was already familiar with their systems, precesses and clients. From the stan, the partners aimed LO create consistent systems and processes across the company. "There's always some resistance to change," says Daniel of this process. "But because we had known each other so well and were from the same backgr:mnd, we really were able to make that happen pretty smoothly"

greater charlotte biz

Meanwhile, they continued to fine-tune their goals and began tailoring their services to better serve the small-business market.

VVE FILL TEMPORARY, TEMP-TO-HIRE, AND DIREG

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Multiplying Services Traditionally, CPA firms provide three basic services - financial record processing, tax planning and preparation, and audit and review. Clients receive periodic reports which they read, distribute and file, and that's the end of the CPA-client relationship until the next reporting period. But Daniel and her partners perceived a need for a much more hands-on relationship with small-business clients, a relationship in which Daniel, Ratliff & Company could help the client to understand their reports, create benchmarks, identify problem areas, and generally use the CPA services to help their companies grow. That's why Daniel, Ratliff & Company offers a full range of business development services, including workshops, business counseling, and plenty of partner face-time. Daniel, Ratliff & Company sits down with clients to analyze documents together. They can help the client identify potential areas for growth, areas where they can improve efficiency, and potential trouble signs. They then assist in developing a plan to address these areas and grow the company. Craig Cass , vice president of The Tinder Box, has worked with Daniel (at first while she was with DPG) since his company's inception over 15 years ago , and they have worked together as his company has grown from a single store in Winston-Salem to multiple locations in North and South Carolina. He says that Daniel's company "has been an integral part in the growth and success of our business." This is exactly the kind of relationship Daniel, Ratliff & Company strives to create with all of their clients. In addition to business development , the firm offers information technology services, helping clients analyze their needs, incorporate the latest technologies, and integrate them into their business model. In short, Daniel, Ratliff & Company strives to become a champion for each client's business, even going >

greater charlotte biz

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decemt::er :.J03 15

so far as to hold hands as necessary, mail reminders to file quarterly taxes or renew business licenses, and offer encouragement and a sympathetic ear. Even the partners in the firm are only a phone call away, no matter who is calling: "We don't screen calls,'' says Daniel. "We simply answer the phone , 'Good morning, how can we help you7'" But not all of Daniel, Ratliff & Company's "small-business" clients arc small. Among their larger clients, they have

some aspects of busmcs= ~~ent ro ha:1.dlirg all aspects. nd as Ll~ ::o-npany grows, .ike ·heir cliert5, Lk: r1L:ilccntinue tc change and <.dJ-:>1.!:. =.1 r..~L, they are z.ble to help :le r d FJ:.ts -::!an for growth fom a down--it- _h::..:;:r :::h:s standpc•int. Another challeng:: .A. ·c1 F_u.ltlT Sr Compa1y shares wit- . "EI rrtr::pLn~ur ial clicmele is attracti~ .:?,O•_,..: J re-,: lalo:nt

"If I had

to ::·.IT1

recently partnered with Freeman White, Inc., a more than 100-year-old, 200-perso:profes ional services firm performing work

it up, we "'P3.nt to e knovn1 as th e

in 41 states. While smaller clients especiaL:; appreciate Daniel , Ratliff & Company's hands-on approach, David Thompson, COO/CFO of Freeman White , Inc. says that they chose Daniel, Ratliff & Company because it is "progressive in terms of culture and has a similar growth philosophy." Daniel adds that they can offer a level of personal attention that the client wouldn't get from a larger firm where they would be

small-bu~ines~

among the smallest clientele.

Offsetting the Challenges Daniel, Ratliff & Company's success in serving the growth-oriented business market stems in part from the fact that they face the same challenges and opportunities as their clientele. As a 16-employee (including shareholders) firm with high growth goals, they fit the same profile as their tat·gct market. Like many new companies, Daniel , Ratliff & Company faced the early challenge of transitioning, in Daniel's case, from a small company to a much larger one, and, in Ratliff and Corriher's case, from handling

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december 2003

champio·~ - ., - Deobie Danie , =·r::::d~r.t as they zro·,v. For Danie , -::.aL_-:0: ~: Compar.y this challenge s cc~j.;:..tc:l by :wo major factors- c. :-.~'0\· rcg.L<tion requirins prospective CPA:. :o fimsJ::. five years of scr.ooling (irstea:i ._,: J:.c f-:ur previou:ly requ ired), ard tf·.: :C.:::t .lat :hey are headquanertJ ir ,_ t:~ f.Wlled with larger accounti~ Jr<l: ':inaner: hrms. Further ::cm?licating her~ _;: ,;;: sh:mage of a\·ailable talent is n~ 8::t ..:-~x: in Chc.rlott~ especially, }O'lr-g ~·'::··? ~ fini;hing their CPA exams <U fucec. v:i.h an enormous qLantity of cpp. r:Ln t: n. f:rm the size ·Jf Daniel, Ratli T ~ ,- rnprry

sim?ly or't offer moneJx:, :::.J~Fma tion equ·valent to tha. o T::JC::i IJ:; 8rge regiJnal and national h-rrs Just as they advise 1hc: · :l~..s -o do, Dand Ratliff & G..l~VID:,.. kc f.Jund creative so.utions to tli~ cl~ £-~-::, ::ac<ling another common smc.l -C3T..::S:>

challenge at the same time. For CPAs in particular and all small businesses in general, achie\'ing a good quality work/life balance for 0\vncrs and employees alike is often neglected and always difficult. But Daniel and her partners have been committed to this goal from the outset, and they help their clients find ways to do the same. Although during tax season employees may work long hours , during the summer the company goes to a four-day work week to allow employees time with their families. Several employees work on a Oexiblc schedule and the company encourages and supports family commitments, sponsoring many of the activities that employees' children are involved in and trying to be nexiblc in allowing parents to auend children's events. Social interaction among employees is encouraged and augmented by company-sponsored parties on a semi-annual basis. Besides being a good model for their clients and providing a good quality of life for themsekes and their employees, Daniel and partners feel the work/life balance they strive for will help them to auract enough new talent to continue to fuel their growth.

Adding Up to Growth Growth is more than a by-word for Daniel, Ratliff & Company. It is a passion. With the exception of one two-year period, their re\·cnues have grown at least ten to fifteen percent every year, almost doubling revenue since inception. Including the acquisition of a small bookkeeping firm, this year's growth has totaled approximately 25 percent. To the original nine employees, they have added six more and they have moved first from a 1,200-square-foot office space on N. Tryon into a larger space at S. McDowell and Third Street, and then into their current 3,200-square-foot office in the same building. Daniel says she foresees similar growth in the future, with a goal of ten to fifteen percent revenue growth each

greater charlotte biz

year. "There may be years where that's lower," says Daniel, "because we want to control our growth and not work our people into a frenzy" Still, they would like to be "a much larger company" says Daniel, and they have their eyes open for suitab le acquisition targets. While their revenues are growing, the firm expects to be able to offer an extended range of services. ''At our size now," says Daniel, ''it's hard to have one person devoted to one set of skills, so 1 would imagine that we will expand our estate planning and our financial planning side, as we're ab le to bring on more people that want to focus on certain areas." [n addi tion, she expects to develop stronger niches in several industries where they already have a focus- construction, real estate and retail. But through the growth, Daniel says they want to "keep that small company feeling" that is achieved through their open-phone and customer-first philosophy "We go above and beyond to make sure that the client feels like they are number one," she says . "[f [ bad to sum

Bt..siness Meetings

200 \;\{ '1es JY t '1e G c.ss

Contemporary American Cuisine

it up, we want to be known as the small-business champion." biz

Heather Head is a Charlotte-based freelance writer.

Daniel, Ratliff & Company

Bar /'/\eru

30 I S. McDowell Street, Suite 502 Charlotte, NC 28204-2622 Phone: 704-371-5000 Principal: Deborah A Daniel, Majority Owner and President Number of Employees: 16 Year of Inception: 1996 Additional Location: Mooresville, NC

Products/Services: Accounting, business development, and information technology services to the small-business community. www.danielratliff.com

greater charlotte biz

december 2003 17

by su sc n be nedict

'BuiGf:n

over 'Brea

0 ast

No, it's r:ot nearly m···=-ing tel:; si:::>n

Learns as the ::::arolina Panthus, tre San

~how.

F ·anciscJ

No, it'~ not a <af:":=~ klar~c:- . Hor is

49~rs

and the

Ter.nesse~

.11it:1

Tita:ts.

ex~· ing

chents ud 11eet r.eVi' 'll.Si-

ress prc·spects. Tb · J=eG•Jnal contao:t "Vi . l. conswnly changing' group Jf spJn:;;::·r~

it, as fotmde- an c.. J=re£:.ent ScoL :J-tes

When h s co:ttract expired, he faced the

c.damantly stEsse-, ·'si:nply ::t ncr,"vidng

<:Ecision of \\hat

guests, f-::quently c~ds nn-rral<ers , ·hcir

organization "

do next Ee clidn't -v:1t

to uproct his fami ly - his so-r Te-ry, wa;:

Brec:kfas: Cl ub Arr...: rica s r ..c: more .

high school :enior at the tirr.e So he orga..l.-

lL is a profes;ion:Jl:-trunaged bus.1....ss

ized his own marketing cor::rpany. lst & lO

developmen org3!Lza::-o:J dEs gned to

}.larketing, Inc. , anc came up with the iC,.a

appealw de:: sio:J-:na

rs. Dt:r 'b : nine-

of Breakfast Club America.

c•wn ri5fu, elimina_s<:cH calls ard •7e-s the door to fut.Jre bu:.;ir ss op~· ou. .J...:i~. No·.: that Cri:es

ltSE:~

the tErm sp.m-

501:5 ins...2ad of m er l:~rs. The way t} .. Breakfast Club worh is this: Ir ordn to

ltonth pericx. from o -· ::ober tbt<:r.g} june,

Thougt his experience. he knew tl-.i.

joh, a c:ompary llli'l<~s a spcn"or~r".iJ=

3CA sta5es c. series of :>usintss-t::• b.1siness

S?Orts were a comrro n aura:tion for many

.JeveloplleJL evcr.ts, b:J~ne~s ent~ruin

CEO's nd p residen.s of an:a •:orr panies

reserved for lioting A I.a . categcry th~

-nent events. and busir...:ss Lrab'n£ -=''ents

Sports event; are not only a Hgh y destr-

business is in, and ;vl.a the : ompar :·

·or spor.sor~ thei · ~m •.oyees a:d L'-eir

able souce of persc nal emeruinmem,

:ustomers. Uost ae L _.::[ inw SJXI·:ing

also pravide opporLUnities .J entertain L:y

;:vents cr fec.rure I.Itio·ully ace a .1~ d

clients c.nd reward outstanclirg

a::leb·itie~

sports

"It's :all abou 'J•Jing

people wge·ber, wnh =pJrts as so they will do

busin~.:, tog~~. '

uaw, s1ys

Crites. o one unclcr:>LO ::C. the va sponsorshij:~ to

businr::;s more

asts

greater ceharlot:.e biz

"needs ana lysis' ::ll1.:1

tespo:-~cls

wi..h a

JT•Jposcll, suggestiTI?; wh ch of .. he ;: ,.. le-.eb Jf spor:

serve the busi"'lcss commu-:i-

rship rna> be nost effeaivc fCl

ty. lL w;;s my vision to brin_;o businesses

th ~

LOgethe- anc to help them grow JY sharing

Tde, H.::>st, E>_ecutivc, .'\ssocia e,

their key custc-rrers .., The

· l~n

Scott

Breakfast Cl.1b events bring tushess ~eo

feaw-i -?;~t.:c h

·=rites' staff re\ievvs the a-pplication :.1

my callmg

exposure

North Caro ina -acio ll.f::l.work, se:..1ng

J o;:s. After receivn5 _h ~ informa.ir-.

Crites, a spiritual man, says <l fe:lt it ""~

· sport;

FL ivbrkc.rng ·or c. J:ajor

sponso-s fo- brc_

e11p lo)ec~.

T::E •:

Crites, ·..vho for s.:\-er· :rear;-. ser:~::J as the Director of

l::tt

recuest 3pace on the ap? lication i5

cor ;:1any; and

1ich rnc.y be a.-::Ua'::le.;. P ~r.: -rcr,

Sr:ecialist, or Con=u an t. Tre ::o;-.t o ·a sponscrship nnge-5 .::-011 $2.000 tc• mo~

pie wgether- 200 to 300 :m~ndees iocLd-

than S-'15 ,000 de:;•-:::r J ing

ing 50 ·o 7C sponsors and t~ir ·:ustonlC·s

expoSL---;: and pa· i::..:Ja..ion desire:d .

UJ:OL

the .cvcl o

-to de·;elop relaticnships with c·ther sp::-n-

TWe sponsorshhs are the m·J: : :xper-

so rs, develop deeper busines; re .ationsblps

sive aocl are highl:r fl'i;:cd. IJ1 .:harlc•:Le. ~

decembEr :;•: J:;

The more steps you take to recognize y r employees, the higher they'll climb

for example, Hood Hargett has sen·ed a" the title sponscr o{ the Charloue club siJJce

based on their grade p.Jin. average ·.m. ry

the clubs first )'ca- n 2000. "I worked

munity in·:olvemen. , and requirement _hal

with Scou as an ad,.enising sponsor of tre

they be a member cf 8 \·arsity team. "E ::;t

in excess of 4.0), leado-shir qualities,

L"ln-

NFL radio broac.-

.Jf all," llooJ sr:.s

casts. Even befo-e

poudly, "I get " give the award ·

".. .we'\'e _far exceeded our exy~ctations, ana have 6ookea a (ot bt-:siness here as :A- nsu(t."

he left that pos:Lion, he had the idea lO host sorrc breakfasts featur n?; sports personal lie:;

The club o:or..:::::p ha3 gro·.vn sub9Jn tiall~ - since ~oo =' Crites founc.

that were very popular events. Since, he's turned

himself sper.dJL, a lot of Lime in Gr ~ envillc,

this idea into a - Elizabeth Lyc•ns, national sales

business, and it was natural that ..ve

mana~er,

should work

Exposi: io r Cent er

his son was

SMG/Palm etto

auer.ding

Non ~

Greenvi 'le CvlLg, so he found(;cl

together," says Chuck Hood,

SoL

Carcolina, be·:au,oe

p~esident

and owner.

"Bei~

a club in that city with Title sponsor \\:ill Capitol, headed ,y Greg Zander.

the Title sponsor h13 brought us much

~Lreet

more exposure than simply being one of

Launching this club, Llut serves the

several adveniser5 o)f a radio broadcast.

Greenville-Spananburg-AnJerson area,

The local chapte1

i~.

called the Hood

coincided with the lc.urchhg of Wall S_-eeL

Hargeu Breakfa,L O..tb Ame rica and this

Capitol in this market, -:vhich gave the r _w

gives us much grea _er name recogn ition-

C;:Jmpany instanL expos.ne Lc highly qw.. -

it gives our sale, ll :magers a leg up. Plus, we do business

·~o. iLl.

other sponsors, refer

fied prospects. Zander, -nore than

pleas.-~:i

with the association, sa·>·s "Using the v~ht: .e

Breakfast Club as a

our good customns :•J events."

networking has not onl::' brought guest5

Who wouldn't ";am lO attend these

for

profe~ic·-11

business to one J 1.c ther and we all bring

and business leaders to;;ether, it has J

:::vents? Future ev::rLS include Pat Williams, a rem:;. I hb le man (adopted 19 : hildren), au thor vf •Yver 20 books and 3enior executive\ ic president of the

Breakfast Club America

.:Jrlando Magic; :...2e Corso, ESPN Studio

Home Office: I02 1-C Maxwell Mill Road Fort Mill, SC 29708

'-\nalyst for College ::;a me Day; and John 3tallwonh, Pro Fcotball Hall of Farner mel former J.

Pittsbur.~

Steeler, to name

few. Plus, Crites ad:ls, "We've had

1ospitality events in :uites at Ericsson Stadium and at Lcvw:s Mowr Speedway c.nd numerous enn og receptions and ~olf

outings. A lot o ·cur event ideas come

~om

the sponsors " httendance is not

::>pen lO the public The only people who

F::>r employee recognition that's o•ter the top, call CA Short

c._t\. SHoRT COM P ANY

800-535-5690 www.cashort.com 20

dec~mber

2003

:an auend are

spJCl~ors,

their employees

:ond their guests. "There$ kind •)f c.. warm and fuzzy 'llgle Lo the club, 0•),'. adds Hood. "Every -l.onth each club §:ivz:s away a $1,000 s:::holarship lOa lo:ai high school athlete, ;lnd at the end of nine months, we award :111.

Phone: 803-547-784 [ ::>r 704-556-73I: Principal: Scott E. Cr tes. Founder and President Numbe r of Emp loyees: 16 In Business: 4 years Re mote Office s: Greenville, SC and Or.anco, FL Products/Services: Bushess-tobusiness development :events, business entertainment events and bJsiness training events for spo1sors, employees and customers to help- themcreate new busiress relations1ips. www.breakfastclubameticaco m

"Ath lete of the '{elr" with a $5,000

s~holarshi p. Thes~

students are chosen

greater charlotte t::. z

are 'lcld n .:ntlllj ..1- :1 ere ~cld ~ -ilc spon.sor'> 1:-.Gin_~s c :..1 ton B=k[lst CL t ~·r~l<Crs

Amcica oiLrs

har..:!k tl-£ ··col:ing

BJrca.t Jncl·wi 1

:.J- =pc.kets:

fe-r 5prJ'l-

sor: Sj:ec d e·.'<:lb 10 rel1.:e::. ·c

Brea'< -a~ t Cl.r. C::>l outllg>. ,.cdal :.":::ms md an nrrtzl '{ccrEno::. Awa·d;; 133'L::J-c nun ..: oJi t- e yc<n ev.:-lls Scatt .:::i~·

Charlotte, NC

·, ~KT

to :;crvc ~ busi-

nes3 C•1rrnuni.)' c:-nhuts Pmt:g b J.>iGreenville/Spartanburg/Anderson, SC ~

z '\.ZTie-:' of tu -mes

:; tcg::tkr in

..3 :: a,'i.~

en·,i_r•Jnme-ts

o[ fo- e\7ryo•~

Thr due's W.:c 3i~ b fur of Le;t.r.lOrud~ of sp·Jns T> \,l-o -c. c lr enj::r_: tne ctJa i ~

Or1ando,FL ~

of· he

E:\'e:-

lll. LS.,:} ha

c incrc::.sed

thd - s':JOn:o::nh' r:

tht:r bu,. i-c~ J3>~

panio:tpn crL l'cm :.r.s jas:1n H ~ U..C r, r--es-

dett of I.tloo

t 1eme of winning by bringing key profes--

Chamber, Js w.::ll. "Th: B-eakh>t Club

s.onal sports personalities and local stu-

concept i~ nC\~ l in .b . . spcrG bgJres Jre

cent athletes together- all who exempli f) ::~

winning altitude." Elizabeth Lyons, national sales manag-

eatured as 11e m 1g~- " :=ri :es se.:s p3rtnering wi.h :=hamb~s of Corrmerce

;:tS

J natural- a:1.d an o·rorL·;-L·, fer e1.h 'A~

er of SMG/Palmello Exposition Center in

organization to grow

Greenville, echoes the value of exposure i1

expands,' S<Jf~ Critc~. 'sc "' i[J comp ~ jl on

lle cco'lom;-

that market. "Each month, as a host spo•-

for custoDle-s. The I.r::aH::3t Cub i~

so r, we showcase our facility to at least )({1

proven a~ a fe :~.ds gncra'..:::> .··

local businesspersons per e\·cnt. 1 guess,

the spon' Jr'i llse. r.~ht. h .he Break -;c.;t

-:Jersons for these club events. So, we've

Club AITL:ri:a office~. ·'\'e do all the W•Jrk

·ar exceeded our expectations, and have

here in o.tr '-iEad=JUH ..::r. l•ffiocc," ~a;o

Jooked a lot of business here as a result.'

Crites, "<Jild l ~ouldn'l d., L ~i.hJut ':'

Scheduling works out well for the Centet

excellem staff here rr J

as the breakfast meet.ngs are usuall y he c

agers and e·:nt co·xdin.:.L•YS il c~1c1

early on Friday mornings. Most of the

market. " )j:Jllsors a: rot.ified o- ezch

Exposition Center clients use the facilit)'

event wcll in 3d"'an:c acd are erco•Jra.;sed

The third club, bunched this fall,

tlu· CLr "-530~no- ."!th t'le Erc.skfa;t

C .Jb has mor:

:lZ'J

in":s_r~rt.

biz

tl'

narkct run-

-i.:

to subm- t'1e:cr imi .z~ io::t lis.s 10 h ~ ·Neb

site, pro"id.J:rs a p-cfi!e :mel wn.act in 'or-

Nnc~l ~a

•I l

){a

•

mation br :a::h gus. Th.:-ee week

Na ·analt)•

direct result of the enthusiasm and supprL

Ametica SeiCS CUI

of jerry Fountain, Carolinas regional pre'-

responsE. rc::tnes.. u

Regarded Search

dent of Verizon Wireless in ::;reenville.

is availa~:.le tc· all SJ=~Iscr.,, sn tl-ey \' iD

Unlike the Charloue and Greenville ciLL,

know wi:lo is: auer.ci:ng 1rd can plan LD

iP'YlL:'U. on anJ

CJC'1

n'-'iL:e. T'lG ::iata

make cc1t~c bcfc t~ .ht e\'en \iJ. c-"!Jail or

Regional Chamber of Commerce as a pr:-

at the e'-etL This

senting sponsor. "Our club concept is

databas.:

constantly evolving,' said Crites, "and

for lead' prosp~clin,!!. Th.::: ·c is dsc .:m

aligning with Chambers of ::::ommcrce in

opportLiil)' to :lis play 'Jr::•du..:ts and infor-

mid-tier cities is a lc•gical direction for

mation in

our future."

breakfa:;ts .1r d a cll<:lco: t: s:1cc u c

w;cy~

raibble

3u~iness

1:1.

this club has partneted wit!- the Orlandc

greater charlotte biz

' rit·al

•I •

ach·ance J f ~cc h en:n.., r.r-a <.f:l.sl :::h. 'J

may fuel new memberships for the

t~1c

_tl ·g

is the Verizon Wireless Breakfast Club

Chamber supports the partnership, whi..::h

k:Jr

S?edalizin~ h E·<e{:Lti ve \1: 1agum: n.

Ame1ica in the Orlardo market , and is t ~

Locally, Carroll Gray of the Charlot"'

]'li

Thos:: lta1s an: ~ll d•1CLU1c:nttd fx

•Jver time , we've hosted more than 5,000

during the week.

J~ ~~a-dt Slli!S it Lp, " ..Vk P'.L "- lot .,[ W.'lt~:- _ nto oJr c=c siJr to j·J n )-<::".tr o~:r.i.:uion. 1r.d l •.Jn cclf rn .,_ i.Lh _o- 'ide nee :l."ld tr -e"'trL ~

to spon:;o~s

·.r::· rtior tc• L~

Cc·nsukant

704-541-8844 F

-v

I 5 7'2f•

lot I

Lid. .lJll ....... ,.~

*'~ 5~ L f) .t: • '-ut -<i ..d •m

-he T>p 11dUilJial S~l ~ .3'1'd U.rte·dnl Aec ·att!l'1

.(.

..-r!]])-, 11- : R V l EW

appointmw·s after •1e e·:en.. The brokf3.SI~ are .JI.)' c·ne fcatw·c of club sp.m~o-ship 3usin~s <oundt~bles

r,. l>rgest l noo p• · c~nt ~~~ es./WI:Irket hg re-c r wtl-g ... e · wlrk. n lit• L s • " 11h woo l ovlae a-r llat1D1 ~

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across the board NATIONAL GYPSUM LEADS QUIETLY AND CONFIDENTLY IN THE MARKET AND IN THE COMMUNITY n a quiet corner of Charlotte's outhPark, a building products giant oversees the production of enough gypsum wallboard to circle the globe 14 times annually, supplying millions of construction sites throughout the United States. National Gypsum owns over 20 percent of the wallboard market, making it a major player in the construction industry, yet it operates in an unassuming manner, much like its soft-spoken CEO. "We try to let our actions speak for themselves," says Tom elson, president and chief executive officer That applies to his personal life as well . The 41-year-old son of Swedish immigrants, elson is Stanford and Harvard (MBA) educated, and has been an investment banker, a White House Fellow, and , at age 26 , a co-founder of a venture capital firm. Among his more notable experiences he cites an overland trip from Lhasa to Katmandu in a Chinese-made jeep; landing on the deck of the USS Theodore Roosevelt in an F-14; and leading humanitarian missions into the former Soviet Union in 1993. He sports a string of national and local civic >-

greater charlotte biz

d e c e m be r 2 0 0 3 23

memberships that fill a standard page, including the Harvard joint Center for Housing Studies, Foundation for the Carolinas, United Way, Boy Scouts, Charlotte Chamber, and the Blumenthal Performing Arts Center. Yet, hes reticent to speak in detail about his community work. "l do that (civic work) because ropefully I can bring a business perspective and show them how they can benefit those constituents they serve," says elson. For a less modest appraisal, listen to United Way President Gloria Pace King: "l find Tom a great s路-lpponer, but he also challenges us with tough budget questions. l can't think of anything I've asked him to do that he hasn't done. " And as for ational Gypsum, King says, 'They are one of the few companies that do a dollar-ford:::>llar match for each employee's United Way contribution." With more than 90 percent United Way

participation, this years total raised by the company and its employees was in excess of 225,000. "They lead by example," King says of the company, and that's the

utive officer in 1999. During his tenure, the company has increased production 45 percent, made major investme ts in plants and equipment, anJ earned the respect of us-

"I DO THAT (CIVIC WORK) BECAUSE H 0 P~ FU LLY I C ,A. ~ B RI N G A B U S I NESS PERSPECTIVE AND SHOW THEM >-lOW Tr-tY CA~ BENEFIT THOSF CONSTITUENTS THEY SERVE

"' Tom Nelson, President & CEO

way Nelson describes his management style: "I let people get their own things done as opposed to getting in their way. " Nelson came to ational Gypsum as chief financial officer shortly after the Spangler family purchased the company in 1995 and was named president and chief exec-

tamers and competitors. Recent growth stems from the U.S. hou ing market which has reached a 1-time highs, driven by low interest rates. People are adding to existing homes and building new ones that are significantly bigger and with taller ceilings. The residential market represents approximately 60 percent of National Gypsums business with the remainder in commercial and manufactured housing. "The cemographics for housing look very good for the next decade," Nelson says, "and we think we're well-positioned for that. We intend to grow with the aggregate demand for housing. " "We are the low-cost producer in an industry that is price sensitive and requires operational excellence," he continues. "National Gypsum is a company that has executed. We are more profitable than any of our competitors. " In addition to its 20 wallboard plants (one in Wilmington, N C), National Gypsum owns eight gypsum mine5 and quarries, including the largest gypsum deposit in the world loca:ed near Halifax, Nova Scotia. Gypsum, or calcium sulfate, is the primary material in the wallboard core The company also owns and operates four paper mills which produce the face and back papers for the wal~board. greater charlotte biz

ational Gypsum has eight plants producing interior finishing products including the ready mix used to finish wallboard. Three cement board plants, a business acquired in 1998, produce underlayment for tile l1oors and walls. The company's major brands are: Gold Bond drywall; ProForm interior finishing products, and PermaBase cement board. All are sold in Charloue-area building supply centers. Nelson ticks off his company's advantages including a national network of plants located near major markets which minimizes freight costs; vertical integration, giving the company quality and cost control of its raw materials; and modern manufacturing technology which has allowed the company to continually improve productivity and quality. The wallboard the company produces is 99.95 percent perfect, Nelson points out. "We have had an incredibly strong last decade of productivity improvement. " Dressed in an open collar shin and khaki trousers, the former private equity executive with Morgan Stanley & Co . says he loves what he is doing and turns the conversation toward customer service. National Gypsum supplies Home Depot and Lowe's as well as other "big box

stores," but a large portion of its business is with smaller, specialty distributors. Every day, thousands of orders come through the company's centralized call center tucked away on the third l1oor of its headquarters. The center schedules trucks for delivery, pu lling material from the nearest plant. It is not uncommon for a customer to get material in 24 hours or less. A special Web site allows customers to check availability, obtain pricing, receive invoices, and track orders. In fact, global positioning systems on trucks allow customers to see precisely where the truck

'T·H=Y'Rr ;:A~ AND AWAY T--1;:: fASI~ST TO D') BLSI~fSS WITH - Dave Walsh, Building Materials Wholesale loaded with their wallboard is located . "They're far and away the easiest to do business with," says Dave Walsh, whose Charloue-based Building Materials Wholesale buys 40 percent of the drywall it supplies

to contractors and homebuilders from National Gypsum. "I think they vvere the first in our industry to centralize customer service." Walsh's company is a member of the Drake Group, the nation's largest organization of independent gypsum specialty dealers, which honored National Gypsum with its Vendor of the Year Awctrcl in 2001 and 2002. Independent Builders Supply, an organization of North Carolina dealers, also ga\'e ational Gypsum its 2002 Vendor of the Year award. Another topic elson likes are the advances the company has made in research and development and the products it has spawned. Last year, after finding a suitable building within a stone's throw of the company's Rexford Road headquarters, Nelson promptly mo,·ed R&D from Buffalo to Charloue. "We now have R&D working side-by-side with sales and marketing and manufacturing to improve our processes and quality, lower costs, and come up with new products and services that will make a difference ," he touts. For instance, there's "G ridMarX," wallboard made with guide marks printed on the surface to help contractors fasten it to the studs. "It's a great labor-saver, and we're getting terrific feedback (from customers)," ~

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greater charlotte biz

d e c e m be r 2 0 0 3 25

Nelson says of the product the company is patenting. The company introduced five new products this year, but innovation exte:::1ds to the process as well. elson points to the firm's plants near Pimburgh and Tampa which produce wallboard from synthetic gypsum. This byproduct gypsum results fr.Jm power plants scrubbing of coal-fired emissions. The two new wallboard plants are located near coal-fired power plants and can produce waTiboard at a rate of 500 feet per minute. At that speed, the company car_load five trucks every hour. This use of byproduct gypsum earned the company the Pennsylvania Governor's Award for environmental excellence . The calcium sulfate procuced by the power plant's scrubbing operation is now recycled rather than going to a landfill. The company's emphasis on safety has also earned it praise from the outside. This fall , National Gypsum

december 2003

was named one of America's Safest Companies by Occupational Hazards magazine. The company was among 16 in the nation to win the award including industrial giants,

"WORKING SAFELY IS THE NUMBER ONE REQUIREMENT FOR OUR A S S0 :: I AT ES . '' ... Tom Nelson, President & CEO

DaimlerCrysler, DuPont, and Exxon Mobil Chemical. National Gypsum's safety performance also has been recognized by the National Safety Council, the Gypsum Association, the Mine Safety and Health Administration, and the National Mining Association.

"Working safely is the number one requirement for our associates,' Nelson attests. "In fact we list saby as one of our five core values. \i\f::-ten operations are detailed enough to have a stro'1g safety performan::.:e., good productivity, quality, service, and profitability follow. " The workforce of 2,700 , w_tl300 in Charlotte, is predominantly male with various levels of educ::tion. The c:Jmpany reimburses employees' continuing education costs, regardless of whether theire job related. Pay and benefits corr_pare well with local community standards, Nelson says, but he add~ a caveat: '·People stay long-term, net because of pay, but because they feel a good cultural fit, feel like they':-e treated well and respected, and they're dcing work that's importmt " Page Odom, who has worked fc•r the coop:my nearly 30 years, sa:'s, "We're performing at the highest level we ever have in any category " Yet, Nelson is so reticent about

greater charlotte biz

National Gypsum's success that Odom says he's "almost surprised" he agreed to an interview. Currently senior vice president of Business Development and Technology, Odom calls Nelson a pragmatic leader who challenges everyone to find better ways to operate. elson is a private person, but he takes pride in having been a White House Fellow in 1992-93, working for Vice President Dick Cheney when Cheney was defense secretary He values his membership in The Business Roundtable, a national group of business leaders focusing on the economy and fiscal policy He also spends as much time as possible with his wife Anna Spangler Nelson and their daughters. He and Anna are also founding partners in the North Carolina private equity firm , Wakefield Group . When he is not working, Nelson enjoys skiing and golf. "He has a passion for golf," says Barnes Hauptfuhrer, co-head of the Corporate Investment Banking Division for Wachovia Corporation, who helped fashion the $1 billion deal - financed entirely in Charlotte and involving the old First Union and the former NationsBank - that enabled the Spangler family to acquire National Gypsum. Even on the golf course, frequent links partner Hauptfuher says Nelson continually seeks improvement. "He still has not perfected his L-4 position," Hauptfuher chuckles, then quickly adds, "I don't know what that means either." Working at National Gypsum or in civic organizations either nationally or locally, Hauptfuher says Nelson is team-oriented. He likens him to what business excellence author Jim Collins calls "Level 5 leaders" whose ambition "is first and foremost for the institution, not themselves. " "Tom Nelson serves our community with quiet resolve ," says Michael Marsicano, president of Foundation for the Carolinas, on gre a te r charlotte b i z

whose board Nelson serves. Rarely do you see his name in lights but, frequently, he is behind the scenes getting the job done. " Nelson sees himself and other National Gypsum associates filling that role in Charlotte. "We do make our impact known, not only in the jobs we provide but by what we give back to the community," he says, adding that employees serve in multiple civic roles, both as leaders and as supporters. For the future , Nelson plans for National Gypsum to grow with its markets and to continue to make a difference in the building products business and the communities where the company has operations. Everyone can count on his doing that quietly and confidently. iz

Ellison Clary is a Charlotte-based freelance writer.

Ne.v I"~GC, Inc. d/b/a

National Gypsum Company 200 I Rexford Road Clur k>tte, NC 2821 I PhonE: 704-365-7300 Chairman: C.D. Spangler;;-. Pres dâ&#x201A;Źnt and CEO: ThoJrms C. Nelson Sta.tus: Privately held Number of Employees: :::.,700 Onginal Company Foun.:Jed: 1925 Headquarters: Charlotte Number of Facilities: 4C t hroughout the: U S.<tnd Canada ProdJCts/Services: Natk:nal G:-psum is a fully integrate:J ma l ufacturer and supplier ::f bui ding anc construction products vvorldwide. Cc~any

www.nationalgypsum.co:wn

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loss. Construction, manufacturing, management team of a middle market wholesale dis tribution, health care, fi rm , much like an accountanL or trucking and the like, make up attorney," says Monk. "We bring our the majority of their client base . expertise to these companies, show According to Monk, these companies them how to prevent loss occurrences generally do not have a full-time and manage claims. lL is really that dedicated risk manager ; the job of simple." negotiating insurance often falls on Rodney Pills , chairman of Southern Elevator Group, Inc ., a the shoulders of a controller, a CFO or even a human leading regional elevator service and resources manager. "The insurance industry "They have many re pair firm located has conditioned businesses in Charlotte, is a things on their plate ," that the role of an says Monk. "They believer in the Scot t insurance agem or broker en d up just buying Insuran ce service insurance rather than model. According is to simply acL as a seeking the opportuto Pitts , the elevator conduit to the market. ni ty to manage risk industry IS conside red We are committed to high-risk b) insurers and truly reduce providing much more .., th ei r net cost." with the pote nt ial for "We call that acc idents in volving - Andrew Chambers, Acco unt Manage r, Charlotte the insurance-onl y the publi c, involving trap," says Andrew workers in close Chambers, a Scoll account manage r. proximi ty to machine ry, and for workers who ar2 often situated on top of an "The insurance industry has conditi oned businesses that the role of an eleva tor car or in the "pit" with the car above them. Pills was seeking to miniin surance agem or broker is to simply act as a conduit to the market. We are mize costs and ma ximize worker sa fety committed to providing much more." when approached by Scou Insurance. "We regard Sco tt's total insurance A counter-cultural model program as a good way to man age There it is; th at line item on the claims and a means of gene rating company balance sheet. Whether it's significant savings which adds to our a $ 10 million company paying $ 1 pre- tax income, " says Pius. "ln an era million annually for property/casu alty when few p eople wo rk h ard , Scoll insuran ce or a $400 millio n company Ins urance is committed to its clients payi ng $400,000 , the issues a re often and wo rks 1.a rd with a particu lar foc us the same - the need to p revent risk on loss preven tion an d cla ims manageoccurrences o r losses, and to manage me nt . At renewal, we partnered with losses when they occur. "We address colt becau se they are dedica ted to behavior as muc h as we do outcomes, " providing service th at insuran ce comsays Chambers. "We ask our clients to pani es n ormally don't provide to firms step back and take a differe nt perspecof our size. '' Pitts adds that even in the tive toward their risk. It's abo u t va lues short period of tim e h is company and cultu re. After all , managi ng risk has been with Scott, it has received is abou t more than an insurance policy tremendous follow-up , helpful materior a safety manual on a shelf someals and aids , and significant attenri.on where. " from the claim s/loss prevention staff. To accomplish that change, the Southern Elevator, which emplo ys a team at Scott Insurance bills itse lf as staff of 75 , ;;, ]read y has mad e ch anges outsource risk managers who do far in its procec.u res due to ad vice from more than foc us on accomplishing Mike Monk and his team . Fo r examthe simple financial tra nsaction of ple , ma nagem ent n ow communicates purchasing insurance. "Our goal is with its employees via a n ews letter to be a trusted counselor, pan of th e co ntaining on-the-j ob safety tips: one

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6135 Park South Drive, Suite I 00 Charlotte, NC 2821 0 Phone: 704-556-1341 Principals: Walker P. Snydor,Jr., President (Lynchburg,VA); D. Michael Monk, Vice President (Charlotte); Andrew Chambers, Account Manager (Charlotte); Latimer Williams IV, North Carolina Marketing (Charlotte & Greensboro)

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Number of Employees in Charlotte: 6 ( 160 company-wide) In business: 21 months in Charlotte; 139 years in Lynchburg,VA Products/Services: High-touch commercial insurance to middle market clients. www.scottins.com

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AUTHORIZED STEELCASE DEALER

december 2003 33

he executive with E! Entertainment Network thumbed through an investment book at an airport bookstore. Most books on investing didn't do much for her. But this one was different. The tone was easy to understand and friendly. The advice made sense. When she got home, she called the author, Bill Staton, and asked, "Can you help mel " That was Len years ago . The executive, Fran Lauson, became president of The E! Entertainment Ne twork. Lauson is still a client of Bill Staton and his wife and business partner, Mary. And that story illustrates how the Statons have built a mini-empire , one client at a time, from their Charlotte home. The Statons run Staton Financial Advisors LLC , which provides money management services to clients with $250 ,000 or more (som etimes significantly more) in inves table assets. Many clients are entrepreneurs who want assistance with the wealth they've accrued, or executives who aren't happy with their companies, retirement plans and want to try an approach that works . The Statons have about $50 million under management currently, with the goal of tripling that within a few years. They also run The Staton Institute which creates newsletters, books and other products to teach the average jon and j ennifer how to manage their money themselves. ln a difficult economy when stock market performance has put off plenty of inves tors , the Statons' businesses are thriving. McGraw-Hill

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l.as ju : t published th c:. r n ew tool<,

..Vorry-Free Fam;ly Fin ~ nc es. -;-r.;'ee 5teps b Building and Mamtaining Y.:>ur ,;;-amil}'s Financiul Well-Being. T"l.e :itatons' guided portfolioJ, trac•:ed in :heir ..,eekly e-mail n ewsletter, is up :)3.4 1:=ercent since its incep t.cn ir:. June ~0 00 . H e ir "Arne ica's Finest Comp;mies ," ar: annual dire·: Lc·ry ~f :::omp;Jnies wit!- ten or ::nore con~c utive ;ears of higher -earnings . di"'icdends or both , has n:ned in res·1lts that 'Fould hav~ mad e it ono:: d the top performing stock mutuel fund s natio wide oveT the r:a.;t ter. years, -wi th G. compound anr.ual return of 14.64- percent through june 30. Wrote james G.assm<0:::1 in I te WashL11gton Pos t last year, "WJ-.at distingu--hes Staton 's li::r is mcderation. With : ew exceptions, the bt·s:neses (he p :::ks) just keep g ro w ing, sloNly but suely, year after :tear. " T\e Staton s' own busint:s:;es 3.re growi:l.g, too - throug!-_ twc p~ riods when lean times forced the coup e to

re- inven t th eir :: ::: n:Ynies . and. even throug!-_ the re::cnt :iuth ::o f he c::uple'5 close ~:-lo d ::md l:..:.sru:s:o pc.rtner GorC.co::. \.'/iJ ams

from Securitie!> A ,alys.t to Entrepreneur F ollowi:~g an 1-.rE!-. in fin:mc-: frc -:11

The Wtanorc ::c hod Un:.-:e-,.i_y ::)( Fennsy.nnia" Bill ~ :c.: on ~ oild Ir.terstc.re Securi ti~5 c.s a so:: c1 riti es analyst "I had absolute!)- n c idea 'Y'lhat I <;,~as doing " 1..:: acL.,-,:.G nc:·,.., 'Y'Iith a laugh . 'I , :': : good du::aLi::m , bu it didr:'t c..p-•ly t::· my firs t job. " He .ived t·-:.:-:::ll.tg.h. his :}r:;L bear market. l9L t•.:o 1974. T.::::· ~ -~e;:rs were Lcugh. ·'Our re~ ~ arc:h cepaLment rr_ade .oc n e l:::t::;y rc::: Jtn--n-::ndc..tions ," he reca! G: . In ~ 9 74 . he v:as pron ::· ~ LJ: r esearc~l. dir:o ctc:: a1d set c.c::JuL m .: k:ng changes. Br:::ke-~ woC.:.d tell diems w h en ~= ;~ll. ::10t jus: vlt::r10 buy. The firm wou ld sr:ar _ t::ack n_:; ~1ow it :: picks ;•:: rfor-oed -:e-sus >cecEmb::r 2)::3

the market as a whole. The tracking report , published several times a year, gave the firm credibility. With Bill Staton's research , the firm's choices were now beating the market. From that first report on, Staton documented his record. He left Interstate in 1985 to begin Staton 's Stock Market Advisory, his first subscription newsletter. The newsletter steadily gained subscribers until the crash of 1987 , when 80 percent of them quit. It took five years Lo rebuild his readership , years he describes as "well beyond lean. " ln 1990 , he published the first "America's Finest Company" directory, the listing that would introduce him to the national press and become the cornerstone of his philosophy: Buy sound businesses with slow, steady growth . He also began dating Mary Tunstall jackson , a strategic marketing consultant he had hired to help him expand the business. They married in 1994. Re-invent once, re-invent twice

Staton kept publishing his newsletter, but also began self-publishing books , producing tapes , and giving speeches on money management. He has always been an active volunteer, teaching single moms and even pris-

executives just didn't have the Lime, or the interest , to fool with it on their own. This time he said yes. The Statons would become mone y managers, billing on a fe e-only basis. Ty and Pat Boyd of the Excellence in Speaking In stitute in CharloLLe became one of their early

oners in jail the basics of money management so they could build a better future. With a background in advertising, marketing, and business development, Mary directed those aspects of the company. Then came the Internet. "We'd been based on a business

SOME RECENT STOCK PICKS Bill and Mary Staton publish a weekly e-mail newsletter trac king The Baker's Dozen , their guided portfolio. Stocks in the portfolio change fro m time to ti me , depend ing on their performance. In November, these stocks included: ALLTEL Corp.- Telecommuncations

Myers Industries Inc.- Manufacturer

Atmos Energy Corp.- Natural Gas Bristol-Myers Squibb Co. Pharmaceuticals Cedar Fair L.P.- Amusement Parks Federal Realty lnv. Trust - Real Estate

NUCOR Inc. - Steel Quaker Chemical Corp.Specialty Chemicals Washington REIT - Real Estate Investment Trust Weingarten Realty Investors - Real Estate Investment Tcust

Frisch 's Restaurants Inc . - Restaurants Haverty Furniture Cos. Inc.- Furniture Health Care Property Investors- Real Estate Investment Trust

model of a monthly print newsletter. But suddenly you could get financial information on the Web all the time ," Mary Staton says. "The cornpetition overwhelmed us. " A handful of newsletter subscribers had been pestering Bill for years to manage their money. He had always turned them down , insisting he could Leach them to do it themselves. But he began to realize some

clients. The Statons oversee the Boyd 's pe::-sonal investments and their company's pension/profit sharing plan . "Bill is instinctively knowledgeable about stocks," says Ty Boyd. "He's so approachable and easy to talk to , and he 's a good listener. That's critical for what he docs. " In 1997 , the Statons joined forces wit::, another mone y > continued on pg 38

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ccr'inued from page ll cn-ployee's W-2 income. Companies would b~ wise to plan ahead to insure they do not ·,relate IRS guidelines during the upcoming Uiday season. h"oiding Liability at Holiday Parties

'J3ny employers sponsor some type of year::-d event where employees gather together for one large social activity. While companies

CORPDATA P

since1984

hr;e good intentions when atnnging for a >J:ial event, there are many issues they must f:s.ce. Potential pitfalls are wage/hour issues, '"ust-liability" issues, and social issues. In

• !=rirrt n;J

• Direct Mail • Presertation F:~l ers • ::m.elopes

cder to avoid the liability that may occur v·<en alcohol is served at company parties,

runy employers have a policy that prohibits n=: use of company funds for the purchase of c.kohol. They may have another policy that t• td1ibits supervisors from providing alcohol

Self Mailer Solutions Pressl.l'9 Seal • EquiJ=rrEn; • Forms • Check!:

their employees. This is to help protect the mployer from any suit that may follow a puty where alcohol was served. Here is a list o[ recommendations as outlined by the D

C:::Jmpensation Clearinghouse: - ::-!old parties off-site • .Since holiday parties tend to be held close to a religious time for many different organized religions, try to incorporate symbols of all kinds equally or not at all. • Make attendance voluntary. Avoid any direct or indirect pressure to attend the event. • Do not keep records or lists of people who attend. • Avoid holding parties during regular working hours. • Do not deduct the cost of the party as a business expense. • Do not hand out awards or presents at the party. This tends to make employees feel obligated to attend. • Do not label the celebration as a recurring event in order to avoid having employees feel as if the party is a regular benefit or entitlement of employment. o Have employees participate in planning and funding the party • Do not serve alcohol. o Events should not be held at facilities that are known to have disCiiminated against any minority groups represented in the workforce. lJ alcohol \viii be served, then: > continued on page 3~

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d:=cember 2003 37

o nlinued f rom page 36 nanager who had c. propueto.::- 1 _imilg model. Neithe::- 3i1l nor U;rry were proponents c[ rrarket ti:tT ing, tut they believed this m ::del -v.o~ld work with their ph:lo3ophy. They were wrons They o::>b . [-om their partner in 200C. h 1he experience wasn't al ·Jac, M<r:5taton believes. "It f;a.re us tre c;pponunity to thoroughly leatl. th ~ money management l:usire3o . including all the rul~o:: arc_ ::-eLl<-tions you have to d~ l with v.;~ 1lso learned to stick wit:- "Vhat wt: t::-ow. " The Statons turned to brck~ r Cordon Williams, 3ills best f-ie d. They had met at Wha-to:1. 'Nai· i.r...g in line to register for conses. V..iliams juked about that gu} o.hea::l c - 1i::-n \\ith the eastern N·Jrth Carcol.n:t twang, and from tra -nomen . .a f1iendship was born. Williams handled 1ll tr.e .. Lnal b.Jying, selling , and p:t petwolk fc·r Staton clients. He .wd h .s lun,

Fb , !=-o .;idecl res car:: h sc.pJ•Oit The ~-- :~tors o'.kc::::. .y~r \'lilli.ams ~ \ er .r :.a:; Sc it'; r::::-peo.::s:jle o un::le:-e::ti-natE. - b~ Jlov fr:::m JJI r:arLy r.·: mng p. -one c< -l just ·J :::o:e Lc.bor :J:;.y. Gocon \'.' illi1rrs h:~C. :li :.d in a :notxc) ck <' :c~ent. r-::n ~ling -rom r- e mo .-: rtx.r_ 'lcrr_~ -, ~- d jn;t 'Jur±: ;e::.. VIC:l _s \PifC

Dee.peni ng : r. e Tec.m The Sr: tc.s -.J" ~r.: dn· _sr.ated. 3rt ove:::- t :nE. sonet1ing Je:Jd cial ~r:e rron ±e tra~c.::J:,. Th)' met Ot'leT3 31. Raym:mc : ares 01rc lea.::neJ ab:•ut .b:: c_q::.t} ::Jhese:ucl. aL::I3J(: ;: crt ~ cvi.::x:s tile 6r:m .J ff~ -cd _ The·- al;c =a·.v :1 oe....,. op:: ::JL Lrit:'· Frr, ioLSl,., -h.e:' l-ad ::cr_ce:n.:Tiltcd •Jn ch _ut5 "<Vi . i - vesl;:~bl:: lSStl~ of ::nore t -.n $1 mi lion. B..1t Ma-y beli~,r::d :::lzr ty :.Jf "J-hcr:; neecc their 1-~ lr Tfu:; dcve1•lFC a •-:·,i:;i=n (•f S::~ -..:::n Fi nm_ 3.1 A ::. vi...:. o:::-~ l.Jr:tUf.h '.V<~chc,ic Seu __ j~ (ar :t:: 'lt:: ..,.,-tb

assets. The Statons are proud of the fact they have never lost a money management account - something of a feat, given the personal nature of their business. When joey Lamb , chief financial officer for Twin City Knitting Co. in Conover, agreed to become a Staton client, the Statons liquidated several low-performing stocks Lamb was emotionally tied to. That was a little challenging for Lamb and his wife Carolyn, but "we decided to see where it would go ," Lamb says. "lt's done nothing but grow." Says one other client , a Texas entrepreneur who owns a real estate investment trust, "In my view, transparency and integrity are absolutely essential. l've known Bill for several years. 1 believe him to be a man of unquestioned integrity." The Statons anticipate doing even more work with entrepreneurs in coming years . Mary, who holds an MBA from The McColl Graduate School of Business at Queens University and will become a registered investment advisor next year, will handle more of the research for future editions of "America 's Finest Companies. " The couple has developed a company Web site to offer an array of products and advice. For at least the next decade, the Statons expect to produce annual returns for clients in the area of 8 percent to 9 percent per year in an overall weak stock-market environment. And that suits them fine. "Our first focus is not losing money. lf we aren't losing, we'll gain, " Mary says. They have no plans to slow down. "I can do this business anywhere in the world ," Bill says. "lt's fun for me to talk with clients and mull over portfolio decisions. I like getttng notes from them, hearing about their families and their communities. The day 1 die is the day I retire- around 105. " biz

Andrea Cooper is a Charlotte-based freelance writer.

december :20(3

greater charlotte biz

wntinuedfmm page 37 • Communicate in advance that excessive alcohol consumption will not be tolerated. • Have plenty of nonalcoholic beverages and food on hand. • Stop serving alcohol at a specified time, well before the scheduled end of the party. • Inform all servers (including caterers) not to serve intoxicated individuals. • Provide alternative transportation. • Do not pay for drinks. • Establish a policy that prohibits alcohol from being consumed on company premises during or after working hours. NCUI Form I 04 ~mployers

should have received their annual :=umulative Experience Rating Statement :NCUI Form 104) from the North Carolina Employment Security Commission (ESC) in mid-November. This tax rate notice form provides explanations for unemployment account balances, computation of credit reserve ratios, and assigned tax rates for the upcoming year. Companies should review this statement to cletennine if charges are proper and whether or not a voluntary contribution may reduce next year's costs. The cut-off elate for the ESC to receive voluntary contributions is 30 clays from the mailing elate of the NCUI 104. The ESC Web site has a "calculator" where employers can determine if a voluntary contribution would benefit them. This year, employers will need their account number and PIN to access this section. Go to www.ncesc.com, click on Business Services. Go to the "Save Money" header and click on "More." Click on the Voluntary Ul Tax Conuibution header. Then login with an lD and PI Employers were given an account number and PIN on the year 2002 CU I104. For a PIN or without Internet access, call the local ESC office and ask to speak to a tax auditor, or call the Raleigh Tax Status Unit at919-733-7l56. biz The Employers Association is a nonprofit Charlotte organization providing comprehensive human resources and training services. Founded in 1958, the Association maintains a broad-based membership of over 700 companies from all industries in the greater Charlotte region.

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cecember 2003 39

[bizdigest] Johnson &:. Wales and Compass Group Sign Covenant Agreement

SBA Announces Top Lenders in North Carolina for 2003 The U. S. Small Business Adm inistration (SBA) made 30 percent mo re loans in

Top Community Banks

North Carolina in Fiscal Year 2003 than in

Surrey Bank & Trust

Contract foodservice and hospitality leader Compass Group North America and career

FY 2002. In FY 2003 , 968 lo ans were

Bank of Granite

education leader Johnson & Wales University

guaranteed for over $252 million com-

Southern Bank & Trust

have signed a unique Covenant that cements a partnership designed to support a range of

pared to 741 loans for $264 million in 2002.This represents one of t he best

Top Small Business Lending

degree programs and career opportunities

years in the histo ry of SBA's North

Companies

for students at all University campuses.

Carolina District O ffice . New loan

Self-Help Credit Union

Compass Group North America has

records were set fo r: the greatest num-

CIT Small Business Lending

made a $2 million gift to Johnson & Wales to

ber of loans in one month (24 in

GE Capital Small Business

support the University's ongoing efforts to establish innovative career education initiatives.

September 2003) and t he greatest num-

Elements of the Covenant include

Top SBA Certified Develo p ment

ber of 7(a) loans in o ne yea r (860).

Compass Group Scholarships for promising

Companies SBA Top Lenders 2003

Self-Help Ventures Fund

Charlotte Certified Development

Top Banks Bank of America

254

First Citizens Bank

Capital One Federal Savings Bank

Corporation

giant, and development of a global career

students, graduates and alumni to Compass

network to better connect Johnson & Wales

Centralina Development Corporation

high school students, progressive cooperative education opportunities with the food service

opportunities.

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Accupo inte Professional Account ing Systems Altman Initiative Group Blair, Bohle & Wh itsitt PLLC Bob Janet Bonterra Carolina Volkswage n Carolinas Medical Center C.A. Short Company Cha rlotte Steeplechase Coffeeboss College Fund of North Carolina Com pass Ca reer Management Solutions Corp Data Products Diamond Springs Dun hill Hotel Employers Assoc iation Exervio First Citizens Haircolorxperts Hood Hargett Juba Aluminum Knauff Insurance Meeting House Office Environments Penny Group R. l . Bryan Company Road Runner Business Class Ron Snead Sedona Staffing Services Shipping Essentia ls Son itrol Security Southern Tree & l andscape Stripling & Beck Sunshine Uni form Service, Inc. Tota l information Source Vance Flouhouse & Garges, PLLC Wachovia Wachovia Wea lth Management Wh itehead Associates

pg. pg. pg. pg. pg. BC

40 33 9 14 17

pg. 1 pg. pg. pg. pg. pg. pg. pg. pg. pg. pg.

20 44 16 2 10 37 11 30 15 39 pg. 7 IBC pg. 26 pg. 24 pg. 14 pg. 42 pg. 33 pg. 36 pg. 43 pg. 3 pg. 21 pg. 15 pg. 31 pg. 31 pg. 32 pg. 41 pg. 39 pg. 25 pg. 38 pg. 5 IFC pg. 27

gr e a t er c h arl ott e biz

Grid Computing to Have $10 Billion Impact on NC Economy Through 2010 A new North Carolina Grid Computing Initiative is leading the way in ensuring North Carolina's

SBA Rule Provides Greater Advantage for Small Businesses to Compete for Federal Contracts The U.S. Small Business Administration

Advo cacy, every I 00 " bundled" contracts

has published a final rule on contract

means that I 06 individual contracts are no

unbundling which will allow small businesses

longer available, and every $1 00 awarded

to better compete for federa l contracts.

on a " bund led" contract has led to a $33

Contract bundling refers to the prac-

decrease in contracts to small businesses.

place in the national and international grid

tice of combining several smaller contracts

computing evolution. A recently released study

into one larger contract to simplify the con-

loopholes an d mit igat es the effects of

The final rule cleans up regulatory

sponsored by the Rural Internet Access Authority

tracting process and contract administra-

contract bundling by, among other things, strengthening co m pl iance wit h subcontract-

estimates grid computing will give a $10 billion

tion.Widespread in the mid-1990s

economic boost to the state's economy through

to speed up and streamline government

ing plans, facil itating the develo pment of

20 I 0, leading to an additional 24,000 jobs and

acquisition, the practice puts small business

small business team s and joint ventures, and

$7.2 billion in personal income.

contractors at a disadvantage because

revising the definitio n of con t ract bundling

Grid computing is the next evolution in computing. Nationally and internationally, companies, educational institutions and government

they are generally unable to satisfy all

to include multiple award contract vehicles

the requirements in a bundled contract.

and task and delivery orders.

According to the SBA's Office of

entities are linking their resources together to accomplish work previously only possible through supercomputing machines. Much like an electric power grid provides electricity services, businesses and institutions can tap into computing power

Getting People to Collaborate at Work is Top Leadership Challenge

and information linked by the grid throughout the state, nation or even globally as though it

Getting people to work together who have

the leadership challenges (5 6%), followed by

were provided by a single supercomputer. When

different agendas is one of the biggest

motivat ing an d inspiring employees in a world of co nstant change (48%).

businesses or researchers use grids, they can

obstacles facing business leaders today,

complete computing-intensive tasks in hours

according to a recent survey conducted by

Executives w ere asked to select five

that previously required days.

American ManagementAssociation (AMA).

challenges they face from a list provided.

Sixty percent of executives who responded

Accompli shing difficult assignments without

computers behaving like a single entity will be

listed lack of collaboration as one of their

the necessary resources (45%), balancing

able to rip through problems at up to 13.6 trillion

top leadership challenges.

the needs of t he organization with those of

According to one source, networked

floating-point operations per second, or teraflops

AMA surveyed 461 members and cus-

the individuals (42%), adjusting to a faster

tomers about the leadership and business

pace and m o re multidimensional job (37%)

academic supercomputer available today. Such

challenges they currently face .According to

and staying connected to people and avoid-

speed will enable scientists to tackle some of

the results, balancing competing demands

ing beco m ing isolated and aloof (34%)

the most computationally intensive tasks on the

and priorities was ranked second among

rounded o ut t he t o p selections.

- eight times faster than the most powerful

research docket - from problems in protein folding that will form the basis for new drug designs to climate modeling to deducing the content and behavior of the cosmos from astronomical data. (www.techreview.com) The North Carolina Grid Computing Initiative will include deployment of grid computing technology using the existing statewide network developed by MCNC and the UNC Office of the President When the multi-year, multi-million dollar Initiative is complete, North Carolina will be one of the first states in the nation to deploy a statewide computing grid.

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greater charlotte biz

december 2003

[ontop] ___________________________________________ • Two of the Southeast's largest CPA firms, Dixon Odom PLLC and Crisp Hughes Evans LLP, have agreed to join forces in merger of equals. Effective January I, 2004, the combined firm will be known as Dixon Hughes PLLC. • Garage Tek of the Carolinas and Overhead Door Co. of Charlotte have announced a new partnership whereby Overhead Door has become the exclusive distributor of GarageTek's unique organizational systems for garages, as well as the custom-designed flooring and lighting packages that complement the system. • Wake Forest University's Babcock Graduate School of Management has earned national and international recognition from two recent ran kings, The Financial Times of London ranked Wake Forest's Executive MBA program No. 55 in the world and 28th among U.S. schools and a survey conducted by the World Resources Institute's Initiative for Social Innovation Through Business has praised the Babcock School as one of the top MBA schools for incorporating social impact management into its curriculum. • Chartwells and UNC Charlotte have signed a I0-year food services contract with a division of Charlotte-based Compass Group worth upwards of $123 million. The Southeast Car Wash Association has named the Autobell Car Wash located at 51 I I Piper Station Road in Charlotte as one of the top five full-service car washes in the Southeast. Charlotte-based Autobell is America's third largest privately held, conveyor-operated car wash company. The Juvenile Diabetes Research Foundation has awarded David Auger, president of Time Warner Cable's Charlotte Division, the 2003 Living and Giving Award for his company's commitment to juvenile diabetes. A direct mail campaign by The

Marketing Consortium has been awarded "Best of Show" in the Business Marketing Association (BMA) of the Carolinas 2003 ProAd Awards from over I00 submissions from the two-state area. Hicko ry's Valley Hills Mall has been recognized for marketing excellence by the 32nd annual MAXI Awards program of the Inte rnational Council of Shopping Centers. Sterrett Dymond Stewart Advertising has won four awards for outstanding radio commercials in the 2003 Silver Microphone Awards competition. ColeJenest & Stone, P.A. has received an Honor Award presented by the North Carolina Society of Landscape Architecture for The Green at Wachovia, an urban park and mixed-use development located in uptown Charlotte. Michael Brooks, Multimedia and Web Design program instructor at the Art Institute of Charlotte, has had a JAVA Scripting textbook accepted for publication by Prentice Hall and has been given a contract for another four books from Prentice Hall: Brooks owns a small web design and development company, Scenic Interactive, as well as teaches fulltime at AiCH . Joe S. Epley, APR, Fellow, chairman and CEO of Epley Associates, Inc./Public Relations, has been named chair of the Public Relations Society of America (PRSA) College of Fellows for 2004; and Michael L. Herman , APR, Fellow, president and COO of Epley Associates, has been inducted as chair of the PRSA Counselor's Academy. Plllllll• Travis Carroll of Staybridge Suites at Ballantyne Resort has been named InterContinental Hotels Group Manager of the Year: Carroll and his team propelled the Staybridge Suites at Ballantyne Resort to the No. I position of all 54 Staybridge Suites

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properties nationwide and the No. I I position of all 3,300 InterContinental Hotels Group properties worldwide. Anthony T. Pressley, president and CEO of MECA Real Estate Services, LLC, has been elected to the Board of Directors of the Business Committee for the Arts, Inc. Tara Goodfellow of Matthews has been named Director of Administrative and Financial Services for the Art Institute of Charlotte. Crisp Hughes Evans has promoted Kelly Schmid, CPA, CVA, ABV to Senior Manager. First Citizens Bank has named Frank Spencer to its Mecklenburg Area Advisory Board. Food Lion has named Eric Watson to vice president of diversity and inclusion. Bonnie Daley has been named assistant vice president at First Citizens Bank in Charlotte. Linda Lott has been promoted to project acco untant I at ColeJenest & Stone, P.A. Johnson & Wales University has named Bernice Parenti community outreach coordinator for its Charlotte campus. Ballantyne Resort has hired Chad New as associate director of sales to attract business from throughout the Southeast to Ballantyne Resort. Diana Ellard has joined The Bainbridge Crew as a bookkeeper and human resou rces specialist. Melinda Foard has joined The Bainbridge Crew as a receptionist. Jonathan Crowder has joined ColeJenest & Stone, P.A. as a project landscape architect, and Travis Mcleod has joined as an engineering intern . Elizabeth Bennett has been appointed to the board of directors for the Charlotte Child ren's Ch::>ir; Bennett is a public relations client rranager for Corder Philips Wilson. Practical Software Solutions, Inc. has named Jennifer Koures sales and implementation specialist for SA Business One soft-~., ware. Mark Bullock has joined Residential Support Services as finance manager. Robert Baysden has joined ColeJenest & Stone, P.A. as a project civil engineer.

greater charlotte biz

Julie Tache and Suzanne Thierry have joined the Randolph Rd. office of Helen Adams Realty as Sales Associates. Brenna Morgan and John Geuss have joined the Ballantyne Office of Helen Adams Realty as Sales Associates. Kelly Lane has joined as Sales Assistant. Alan T. Shao, the North Carolina Ports professor of marketing and international business in the Belk College of Business Administration at the University of North Carolina at Charlotte, has been appointed to the North Carolina District Export Council. Kathy Rowan has joined Corder Philips Wilson as a public relations counselor. Lisa Duffy has joined Mariner as a Project Manager. Energy User News has chosen Food Lion to receive two awards honoring the company's achievements in reducing its energy use and costs. Food Lion has received the 2003 Best Retail Project award and the 2003 Energy Manager of the Year award. Rick Heithold, Food Lion's strategic sourcing manager of energy and maintenance, is receiving the manager

award for leading the company's energy

management program, which has reduced the grocer's overall energy use by more than 20 percent over the last three years. John Corder, president of Corder Philips Wilson, has been appointed to the board of directors of the CharlotteMecklenburg Police Athletic League. ALLTEL has named Karen Ward business sales manager for its Charlotte market area. First Charter has appointed Erin Coburn to the position of Business Relationship Officer in South Park, and Michael Shultz to Senior Vice President of Commercial Real Estate Lending. Ray's Splash Planet has announced the addition of Janet Goretti to its staff. Former men's head basketball coach and athletics director Jeff Mullins has been named Alumnus by Choice at the UNC Charlotte Alumni Association awards banquet. Additionally, the board, for the first time ever, inducted a legacy into the Hall of Fame when it added Misty Cowan Hathcock and her mother Linda Humble, along with the late Russell Lee Kologiski to its ranks. Also honored were Mary Ann

Rouse:, who was honored as Distinguished Alumna, and Arthur Wylie was tapped as Outstanding Young Alumnus. Richard H . Toenjes, UNC Charlotte's faculty presi-

dent c1d an associate professor of philosophy, v.as recognized for Faculty Service. Danelle Lane has been appointed client mana~er, brand planner for Corder Philips Wils :>n. Claude Lilly, dean of the Belk College

of B~iness Administration at the University of North Carolina at Charlotte, recently traveled :o Italy to be a keynote speaker at the cpening convocation ceremony for the Polytechnic ofTorino's Biella campu. Clark Nexsen announced that Eric Wor kman, P.E. , has joined the Engireering Teanr as the new Mechanical Engineering Dep3rtment Head in the Charlotte office. First Charter haas announced the appcintments of Brenda Van Valen to the position of Vice President in Private Asset Mangement and Emma Allen :o the positior of Senior Vice President of Community Ou:reach Banking. Collin Brown has joined the law firm of Horack Talley Pharr & Lowndes as an '!.Ssociate. bi~

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december 2003 43

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