Greater Charlotte Biz 2011.04

legalbiz

|

consultingbiz

|

webbiz

|

bizprophet

|

accountingbiz

|

employersbiz

april 2011

PUTTING CHARLOTTE

Front and

! ! ! Eastover Investment Advisors ! ! ! Livingston & Haven ! ! ! Waypoint Solutions Group ! ! ! Hankins & Whittington Funeral Service ! ! ! Ameritech Die & Mold

Center CRVA Ambassadors Southern Hospitality All the Way to the White House

Scan to view greatercharlottebiz.com

Tim Newman Chief Executive Officer Charlotte Regional Visitors Authority

CHANGE SERVICE REQUESTED 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, N.C. 28226-1310

PRSRT STD U.S. Postage PAID Permit No. 505 Charlotte, NC

in this issue

f

2

e

a

t

22

u

r

e

s

cover story

Charlotte Regional Visitors Authority

Many in Charlotte know Tim Newman’s name and face, but few understand the real meaning of the work he and his team do, and why it matters so much to our city. Charged with marketing Charlotte as a destination, he has worked to elevate the city as a contender for major convention and tourism opportunities, and succeeded in the case of the Democratic National Committee Convention next year. Newman is very clear about the CRVA’s goals for the future and the challenges he needs to address.

12

Eastover Investment Advisors David Morgan and Don Toney describe their private firm as a client-centric, affording more personalized, consultative service. The firm currently holds over $175 million under management and has 15-year-plus relationships with the majority of their clients. Advocating simplicity and transparency, they are bullish on communication and customer service.

#$ Livingston & Haven L&H is a family-owned motion-control engineering company that problem-solves to help manufacturers work smarter.

With its high fabrication capabilities, its engineering solutions can look more like artwork than industrial tools. As Clifton Van IV points out, “We provide an off-balancesheet engineering resource for our clients without them having to bear that cost.”

28

Waypoint Solutions Group “We are the IT department for many small and medium-sized companies,” says Dan Wilson, CEO of Waypoint Solutions Group. “We offer an entire spectrum of services from day-to-day desktop support and email hosting to higher end security and managed services with maintenance and monitoring.” “We’re passionate about technology,” says Tony Shannon.

ap r i l 2 0 1 1

departments publisher’spost

4

legalbiz

5

Transforming the Business of Law to Meet the Needs of Business

consultingbiz

6

Managing and Delivering Change to Optimize Business Value

webbiz

7

bizprophet

8

New Media Strategies, Secrets and Solutions

Engaging and Inspiring Thought Leadership in the New Millennium

accountingbiz

10

Accounting, Tax and Consulting Solutions

employersbiz

21

Legislative and Regulatory Highlights for Area Employers

biznetwork

44

on the cover:

legalbiz

|

consultingbiz

|

webbiz

|

bizprophet

|

accountingbiz

|

employersbiz

april 2011

Tim Newman Chief Executive Officer Charlotte Regional Visitors Association

PUTTING CHARLOTTE

Front and

! ! ! Eastover Investment Advisors ! ! ! Livingston & Haven ! ! ! Waypoint Solutions Group ! ! ! Hankins & Whittington Funeral Service

! ! ! Ameritech Die & Mold

Center CRVA Ambassadors Southern Hospitality All the Way to the White House

Scan to view greatercharlottebiz.com

Tim Newman Photo by Wayne Morris

Tim Newman Chief Executive Officer Charlotte Regional Visitors Authority

!"

"%

“Undeniably, the funeral home handles the needs that arise upon a death. But many of their services are intended for the living. We seek to help the family go away from this experience knowing that they have truly honored their loved one’s memory,” says Ken Poe. He and his staff have been serving Charlotte for over 60 years.

Ameritech designs and builds molds for the plastic industry. “Successful companies are all about creating solutions,” says founder Steve Rotman. “We learn the customer’s business and become an asset to that business.” Ameritech has transitioned from being a mold maker to a mold manufacturer without losing the quality and innovation that had made its reputation.

Hankins & Whittington

Ameritech Die & Mold

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

bcbsnc.com

Health Care Reform. It’s here.

But what does it mean for you?

Find out what health care reform means for you — today — and in the years ahead. + For employers and employees + For health care providers + For all North Carolinians Visit nchealthreform.com

An independent licensee of the Blue Cross and Blue Shield Association. U7369, 9/10

[publisher’spost] Keys to Job and Income Growth in America It seems that many economic indicators are showing a continuing upward trend in the U.S. economy. Momentum continues to build, but job growth is still weak. Most economists project that job growth will not return to pre-recession levels until 2014 and beyond. Unfortunately, a significant number of jobs that have been lost will not return.

Many proposals for job creation—from tax cuts to more stimuJohn Paul Galles lus spending—have been put forth from different political perspectives. Yet none of these recognizes the fundamental changes that businesses have experienced over the last 25 years.

Just recently, Steven Pearlstein, columnist for The Washington Post, wrote about boosting job growth in the United States. He reported about the work of Michael Spence, former dean of Stanford Graduate School of Business and former dean of Harvard’s faculty of arts and sciences, and Sandile Hlatshwayo, a new colleague of Spence at New York University’s Stern School of Business, and how their findings affect job growth strategies.

Together, Spence and Hlatshwayo have formed a cohesive perspective of the American economy based upon what happened between 1990 and 2008—a period of rapid globalization. Jobs in the United States fall into two basic buckets from a statistical standpoint.

One bucket, the tradable bucket, includes jobs from those companies that operate in the global market, subject to competition from foreign firms and suppliers. Generally, that includes manufacturing, agriculture, minerals, energy and a significant section of business and financial services. The second bucket includes jobs that are non-tradable such as government, health care, retail, construction, hotels, transportation and wholesaling.

They conclude that most of the job growth over that 18-year period came from nontradable activities, primarily in government, construction and health care. During the same time, substantial job losses came from the tradable bucket. They also learned that GDP growth over that period was nearly equal from both buckets, with the tradable sector experiencing a slight edge.

Summarizing the study, the conclusion is that one bucket—the tradable bucket—produces income growth while not losing jobs, and the other bucket—the non-tradable bucket—produces jobs, but not much income. As a result, our economy produces unequal and disparate growth leading to political polarization.

Our U.S. economy is in the midst of a huge structural shift as a result of globalization. Some argue for trade barriers…others advocate simple free-market capitalism.

Spence’s view is that what is needed is a policy that brings together the efficiency and growth of globalization and delivers offsets to the inequality of income and jobs that it creates. Redistribution of income is also not the answer, he says. What must be done is to find a way to encourage multinational corporations to invest in American workers, making them more productive than their foreign competitors.

One successful example of this policy was the “voluntary” auto-import quotas negotiated with the Japanese in the 1980s. Foreign companies established U.S. assembly plants. With extensive training and investments in the latest production equipment, these companies found they could produce quality cars at competitive prices right here in the U.S. It is likely that the same “voluntary” quotas could affect other industries as well.

Unless or until globalization reaches equilibrium of production, wages, income and security, we will need to seek some targeting of resources to opportunity. Wealth cannot continue to only go to investors, PhDs and MBAs. The American middle class needs to grow as well. That means job growth and equitable income to workers regardless of their economic bucket. This is an evolutionary problem for the United States as the rest of the world seeks to participate in economic development. biz

Let me know what you think - jgalles@greatercharlottebiz.com

4

ap r i l 2 0 1 1

704-676-5850

April 2011 Volume 12 • Issue 04 Publisher John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x104 mlane@greatercharlottebiz.com

Creative Director Trevor Adams x107 tadams@greatercharlottebiz.com

Sales Manager Scott C. Mayer x106 smayer@greatercharlottebiz.com

partners !CC Communications, Inc. !Central Piedmont Community College !Elliott Davis, PLLC !NouvEON Technology Partners, Inc. !The Employers Association !Wishart, Norris, Henninger & Pittman, P.A.

Contributing Writers Zenda Douglas Carol Gifford Casey Jacobus Amanda Pagliarini Mary Storms

Contributing Photographers Trevor Adams Wayne Morris 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 and other news-related information: editor@greatercharlottebiz.com.

• Editorial: mlane@greatercharlottebiz.com.

• Advertising: jgalles@greatercharlottebiz.com.

• Subscription inquiries or change of address: subscriptions@greatercharlottebiz.com.

• Other inquiries: please call or fax at the numbers above or visit our website www.greatercharlottebiz.com. © Copyright 2011 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.

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

Wishart, Norris, Henninger & Pittman, P.A.

[legalbiz]

Transforming the Business of Law to Meet the Needs of Business

!Installment Sales Beware &'()*+(,-./(0,/(*11*20+340)(0*(5/66()*+2(6-378(9/( :-2/'+6(,*;()*+(7*(40<(=*+(>-)(,-./(,/-27(*'(-(02-35?

-:04*3(;,/2/(0,/(5/66/2(-::/105(4350-66>/30(1-)>/305( '2*>(-(9+)/2('*2(6-378(9+0(0,/(5/66/2(@/05(0*(A//1(0,/( 7//7(+3046(0,/(9+)/2(>-A/5(0,/(6-50(1-)>/30< B*20,(C-2*643-(;-305(0*(9/(:/20-43(0,-0(-66(1-204/5( -2/(02/-0/7('-426)(43(0,/5/(02-35-:04*35<(D,/5/(-@2//? >/305(>+50(9/(43(;24043@(-37(:*30-43(-66(*'(0,/(0/2>5( *'(0,/(-@2//>/30<(&3(-77404*38(0,/(:*302-:0(>+50(:*3?

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

!Lease to Own Your Risk North Carolina has taken steps to help homebuyers and homeowners recently. In the 2010 Short Session of the General Assembly, the law governing leases of homes with options to purchase has some new teeth for property owners who act badly. This law applies to leases with options to purchase for homes that the tenant/ buyer will use as a principal residence.

First, the contract must be in writing. In addition, a buyer’s option to purchase property can’t be forfeited unless an express obligation in the written contract is breached by the buyer, the buyer is notified of the breach, and the buyer is given a chance to cure the breach.

The buyer’s right to cure exists for one default in every 12-month

period of the lease term.

If the seller happens to default on a loan secured by the property, the buyer can exercise the option to purchase or cancel the contract.

In addition to other remedies, the buyer can seek to get all the money back that he paid the seller. If the buyer cancels the contract, however, the seller will get to keep an amount equal to fair rental value of the property plus amounts necessary to fix any damages to the property by the buyer above and beyond normal wear and tear.

Also, to really make certain that sellers don’t try to swindle buyers, a violation of this law by a seller is an “unfair trade practice.” This means that the buyer gets three times the amount of damages from the seller.

This part of the law does not apply to the individual homeowner selling his or her principal residence.

!You Really Thought This Would Work?

Some opportunities are too good to be true. Even when they come with letters from law firms providing opinions about the opportunity.

That’s because those letters don’t always say what they are advertised as saying. And, in most cases, those letters are not a defense if you are found to have broken the law.

A husband and wife thought they had a great plan. They became members of a financial planning company. One of the financial strategies was a “family public charity” created through the financial planning company’s 501(c)(3) charity. The strategy was advertised as a “tax reduction” program and designed to benefit charities and the families creating the fund.

The investment materials discussed using pre-tax dollars to fund the accounts, gaining tax-deferred growth in the investments, and using funds for personal teaching, research, and college scholarship programs.

The families could also be compensated by their own charity for working for the charity and doing “good works.”

Further, the charities could make student loans. The loans could be repaid by providing charitable services for designated periods of time.

The husband and wife set up their own charity through the financial planning company, and they got a letter from the company’s law firm.

The letter stated that it was more likely than not that contributors to the “family charities” could deduct their contributions for tax purposes.

BUT, the letter stated the law firm had not reviewed any documents about and would not render an opinion on many of the programs advertised to be part of the family charity program.

The husband and wife used their family charity to loan money to their son for college. In exchange for the loan, the son promised to perform 2,000 hours of charitable work for each year his expenses were covered by the charity. If, for some reason, the son did not perform his charitable work, he agreed to repay the loans over 15 years beginning 5 years after he graduated school.

The Tax Court decided that the charity wasn’t really a charity. The husband and wife were not allowed to deduct any of their contributions to the fund. The Court stated that the couple was negligent and did not make a reasonable attempt to verify if what they were doing was correct. The Court viewed the strategy as something a reasonable or prudent person would find too good to be true. The letter from the law firm didn’t help them.

!Expanded Foreclosure Requirements In 2008, the General Assembly enacted the Emergency Program to Reduce Home Foreclosures Act to provide certain rights and “foreclosure relief” for “subprime” home loans. This Act has been renewed and expanded to cover all residential home mortgages.

The Act requires that a lender send a notice to the borrower at least 45 days before filing a notice of hearing in a foreclosure process to let the borrower know of any resources available to help prevent foreclosure. The notice must include the amount of payments required to bring the loan current and a list

of all past-due amounts.

The lender must also make a filing with the Administrative Office of the Courts and pay a $75 fee with each filing. This fee funds a “State Home Foreclosure Prevention Trust Fund.” The fees will be used to pay the costs of the fund, to fund nonprofit counseling agencies and to fund nonprofit legal service providers to help homeowners both in and near default.

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

Content provided by Wishart, Norris, Henninger & Pittman, P.A., which partners with owners of closelyheld businesses to provide comprehensive legal services in all areas of business, tax, estate planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, contact Robert Norris at 704-364-0010 or visit www.wnhplaw.com.

ap r i l 2 0 1 1

5

[consultingbiz]

NouvEON Technology Partners, Inc. Managing and Delivering Change to Optimize Business Value

Project Portfolio Management:

Past Performance Should Ensure Future Success

W

hen it comes to managing our personal investment portfolios, we are all familiar with the phrase, “Past performance does not guarantee future returns.” We see it in legal-sized font on the bottom of investment marketing materials and hear it in a super-fast voice at the end of those flashy investment commercials.

Unfortunately, it seems that this holds true for our business investments in projects as well. But what if it didn’t have to? What if we could ensure the returns we get on our project investments?

We’ve heard it all before. The project was abandoned before implementation. I can’t get funding, or resources, for my important project. The project timeline is slipping because of contention or dependencies with other projects. We don’t get the promised ROI on our projects, or we don’t know what our ROI is on our project spend. Multiple projects deliver duplicate solutions, or deliver solutions that are then abandoned over the next couple of years.

Any or all of the above may strike a familiar chord. However, they all reduce down to a common problem: How do we ensure that we are spending our precious project dollars on the right activities and are then caring appropriately for those investments?

Many organizations are now taking an enterprise portfolio approach to manage project investments. Project requests are submitted from across the organization, and then prioritized against each other for funding. But how are these projects prioritized? Office politics can play a big role. Oftentimes, this portfolio approach devolves into a “we need this now” situation or a “we generate the revenue” perspective that brings us back to where we started.

If our prioritization criteria is not well established or well thought out, then our portfolio prioritization process is simply a “squeaky wheel gets the grease” approach in disguise. Have you ever been asked to build a stronger business case by making larger assumptions about the benefits? This is simply a mechanism to make your wheel squeak louder. This also sets up departments as adversaries, competing for project dollars and creating an environment detrimental to the collaboration required in our more integrated world.

We all practice some form of Project Portfolio Management, even if it is as simple as deciding to fund a project or prioritize one project over another.

However, the solution lies in a holistic and robust approach to Project Portfolio Management that addresses these three key areas: Project Selection, Project Coordination, and Result Tracking.

Project Selection Projects should be selected by the enterprise. Stakeholders from across the entire organization select the “right” projects in which to invest company dollars. This creates awareness across the enterprise of the project work occurring throughout the organization. This, in turn, helps engage stakeholders beyond the immediate scope of the project, increases the ability to leverage soluStephan Ahlquist, tions across multiple business Senior Managing areas, reduces the number of Consultant and Delivery Management Knowledge duplicate solutions and sets the Domain Leader stage for coordinating projects through delivery.

6

ap r i l 2 0 1 1

Project Coordination Project Coordination begins with the approval, prioritization and initiation of a project. Significant efficiencies can be obtained if our prioritization and scheduling activities take project interdependencies into account when initiating new projects. For example, rearranging the order of services generated in a Services Oriented Architecture (SOA) project to align with the services needs of a new Web portal project can reduce duplicate requirements definition activities, streamline testing activities, provide a valuable proof of concept for the remainder of the SOA buildout and eliminate the need to retrofit the Web portal into the new architecture.

This level of coordination can only occur if the entire organization is aware of project activities across the enterprise.

The solution lies in a holistic and robust approach to Project Portfolio Management that addresses these three key areas: Project Selection, Project Coordination, and Result Tracking.

Result Tracking Tracking the results of the project, particularly that the proposed benefits have been realized, is the key to maximizing the effectiveness of Project Portfolio Management. After all, the whole reason we undertook this project in the first place was to achieve certain benefits. The only way to know that we have realized those benefits to is track them. This brings focus and maintains commitment to achieving the promised results. Benefit realization tracking also enables us to implement a feedback loop for future project selection activities, allowing us to improve our project cost estimating or benefit forecasting processes.

Effective Project Portfolio Management can help ensure organizations achieve the benefits promised by the projects in which we invest. It provides the framework to select the right projects by taking an enterprise view of our investments and evaluating these projects based on the benefit case and alignment with our business strategy.

Project Portfolio Management enables the prioritization and coordination of these projects to ensure we are maximizing efficiency through the project delivery lifecycle. Tracking the realization of the project benefits brings focus and rigor to capture the benefits promised by the projects. This allows us to use those results in a feedback loop to improve the quality of the cost estimation and benefit projection in the project selection process. With effective Project Portfolio Management, past performance should guarantee future returns.

Content contributed by NouvEON, a management consulting firm. For more information, visit www.nouveon.com. To contact NouvEON’s Delivery Management expert, e-mail him at sahlquist@nouveon.com or follow on Twitter@NouvEON.

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

CC Communications, Inc.

[webbiz]

New Media Strategies, Secrets and Solutions

!!!

WORK ! PROXI –

Powerfully Simple Project Collaboration

PROXI is a new line of environmentally-responsible home care, personal care, and oral care products that uses the power of hydrogen peroxide (H2O2) to keep you and everything you touch clean. Performance you expect.

Ingredients you trust. Powerfully simple. The PROXI management team used this same powerfully simple approach to create, design, produce and launch their new website at www.proxiproducts.com.

Starting with the end in mind, PROXI initiated processes early on that brought together advertising and interactive agency professionals, graphic designers, and Web developers to form a cohesive team focused on producing a first rate website. The end result? As expected, a powerful Web presence announcing and promoting the brand, excellent online product positioning, and growing buzz through popular social media. Project collaboration at its best!

QUESTION

&

ANSWER can I cut down Q: onHowemail spam?

~Charlotte, NC

A:

Estimates suggest that 80 percent or more of all email sent on the Internet is spam. Wow! No wonder your inbox is filled up with this stuff.

Nobody likes it, but how do you get rid of it?

Email providers differ in their available solutions, but here are some methods to help you cut down on unsolicited emails. Aggressively mark uninvited messages as junk or spam. Most email services block those messages in the future. Be careful using email “mailto” links on your website. These links are low hanging fruit for email solicitations. Secure your computer(s) and mail server to prevent spammer hijacking. Never reply to spammer email and never open any suspicious files. Delete harmful phishing emails and report them if you can.

Have a question about Web design or online marketing? Submit your question to www.greatercharlottebiz.com/webbiz. Questions & Answers may be reprinted here in upcoming editions of Greater Charlotte Biz! Content provided by CC Communications, a Web design, programming and Internet media company providing a full array of services to businesses and organizations to enhance and produce effective Web, email, multimedia marketing initiatives and business process improvements. For more information, contact Kip Cozart at 704-543-1171 or visit www.cccommunications.com/resources_articles.cfm.

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

Help is Just a Few

!"#$%&'("$)*+,#

With the recent earthquake and tsunami devastation in Japan and last year’s disaster in Haiti, we are reminded about the potential power of the Internet to draw us together as a worldwide community to offer help and donations to those in times of need. Emerging online technologies now make it easier than ever before for individuals and businesses to raise funds for worthwhile causes.There are numerous ways to get involved. Think “Online Giving.”

Mobile SMS Texting Donations… Utilizing “short message service” (SMS) texting on most mobile phones is a convenient and effective way to rapidly generate small cash donations at critical times of need. By texting a keyword to a designated “short code” address, a small payment (typically $5 or $10) is added to the donor’s upcoming phone bill which is later forwarded to the designated charity. (Example:Text “REDCROSS” to “90999” to give $10 for Japan disaster relief.)

Through this simple “call-to-action” response, both contributor and recipient bypass traditional online credit card processing fees that might otherwise be deducted from the transaction. SMS contributions are currently restricted to fixed amounts and individual donors are limited to a small number of donations any given time. But, while disbursements from the participating phone carriers can take time (approximately 60 to 90 days), the popularity of this form of “impulse gifting” is growing exponentially.

SMS contributions are facilitated by fundraising agencies such as mGive, the Mobile Giving Foundation, GreaterGiving.us, Qgiv and others.

E-commerce Strategies… Social minded businesses that operate existing e-commerce programs may incorporate charitable giving within the framework of their commercial storefronts. Shoppers may be encouraged to add an optional donation to their order at checkout, or offered an online product discount that includes a matching contribution to the designated charity. Businesses without existing storefronts can get involved by creating simple online collection points, utilizing inexpensive plug-ins by PayPal Donations, Google Checkout, and others. Companies can further support deserving causes by promoting links to independent donation websites such as JustGive.org, DonorsChoose.org, NetworkForGood.org, eOfferingPlate.com and many more.

Educate and Inform… There are many creative avenues available to organizations that engage in “cause marketing.” Consider hosting an informative webcast, using a service like GoToWebinar.com, where the event registration fees are donated to the featured charity. Offer a weekly, subscription-based podcast, where the proceeds are passed along as a donation. Sponsor a CharityGiftCertificates.com rewards program, allowing frequent customers the opportunity to earn loyalty points that may be converted to charitable gifts for an organization of their choosing.

Give with Confidence… Be a wise contributor. Ask important questions before donating online. “What percentage of my donation will actually be delivered directly to the charity that I have chosen?” (Many mobile SMS texting campaigns lose as much as 50 percent of the amounts collected due to processing fees that are charged by the users’ cell phone carriers, while other straightforward e-commerce donations are diluted by traditional online credit card processing and administrative fees.) “Is the charity a good steward of my money?” (Consider selecting a gift recipient that has met the standards for accreditation through the Better Business Bureau’s “Charity Seal Program.”)

~Kip Cozart

ap r i l 2 0 1 1

7

[bizprophet]

The Performance Group, Ltd. Engaging and Inspiring Thought Leadership in the New Millennium

!

THE NEW AMERICAN HERO business owner friend of mine compares the struggle he’s in today with the years he fought in Vietnam. Survival was the goal. Even when he saw people slaughtered all around him, he knew his only choice was to keep going and to protect the survival of others in his platoon. He sees it as clearly today as he did then.

That’s why Jim is one of my heroes. He keeps engaging the battle— not because it’s making him rich— but because he wants to do his part to protect the jobs of his people, rebuild confidence and engage the marketplace battlefield.

A few years ago, Jim was providing jobs for hundreds of people inside the $20M-a-year business he founded. The business was to be his legacy; he would pass it on to his children one day.

Last year, Jim determined he was no longer winning bids because of marketplace pressures for the cheapest price. His company couldn’t win against competitors who were willing to use inferior materials and take dangerous shortcuts. Jim wasn’t willing to compromise the quality his reputation was built on.

Come June, the work runs out. Today, he’s down to fewer than 100 employees. The head count will slide below 40 within 60 days.

But Jim perseveres, determined to stay in the game and keep thinking through new ways of rebuilding or reinventing to succeed within the fundamentals of healthy competitive engagement.

Diane is another one of my heroes. She owns a small 20-year-old manufacturing company that’s hanging on, thanks to a niche that’s not going away.

She could probably play it safe, continue to weather the recession and come out the other end with a company she can rebuild.

But Diane has developed an eco-friendly product that she’s passionate about bringing to the world—and it’s going to take significant capital

8

ap r i l 2 0 1 1

to make that happen. If she brings in an investor, she could do her part to create a healthier planet and secure the jobs of her people. But it’s risky. She worries that making the change could take longer and cost more than she anticipates—it almost always does.

Although she’s cautious about the implications of the accountability that comes with partnership capital, Diane knows it’s in the best interests of survival and creating a significant future for her business. I’m betting she’s going to make the bold and selfless choice. Heroes tend to do that.

Bob’s a hero, too, although he’d find it hard to see it that way. Bob hopes to do $3M in business this year; two years ago, he was at $13M. He also faces the dilemma of maintaining quality or churning money by lowering his standards. He’s tried reinventing his business model; he’s held on to as many employees as possible. But the low bidder keeps winning.

A less savvy business owner likely would have faced bankruptcy a year ago. Bob responded to his circumstances by embracing simplicity for his life and putting his shoulder to the plow the way he did in the early days. Like Jim, he’s choosing to stay in the game, determined to discover a new formula that will create opportunities for his business.

Here’s how I define a hero: Heroes look beyond themselves to embrace a greater cause or purpose and have the guts to sacrifice for the well-being of the greater whole.

And here’s how to spot the business owners and leaders who are the new American heroes. New American heroes: " Recast vision even during uncertainty. Even in the face of so much evidence optimism may not be the most realistic outlook, they breathe life into possibilities. "#Fight to generate new opportunities for others to work. They feel a deep sense of responsibility for the people they bring around them.

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

the performance group

"#Risk boldness when it would be easier to hoard what they have and let somebody else take risks. Often that means they run counter to the culture of risk aversion thatâ&#x20AC;&#x2122;s especially strong in times of uncertainty. "#Fight for standards of quality in a world where cheap seems to be king.

People like Jim and Diane and Bob are heroes precisely because they are committed to making the right choices to restore their enterprises to health in this new economic era. Theyâ&#x20AC;&#x2122;re doing what few others will do. These three and others like them have had to dig deep into their souls.

From that place in their souls, the question is no longer, How do I get mine? The questions theyâ&#x20AC;&#x2122;re asking are, What do we stand for? Where is our strength? What is our responsibility to the world, to our nationâ&#x20AC;&#x2122;s economy and to our employees, today and in the future?

Getting Healthy Enough to Create Jobs We will not get out of the economic mess weâ&#x20AC;&#x2122;re in without creating jobs.

But how? How does a business get healthy enough to provide jobs? A business in todayâ&#x20AC;&#x2122;s economy will point itself in that direction by focusing on the following key components of the business.

Leaders/team: Do we have the best leaders in our inner circle, the ones who can be counted on to think and act boldly in the service of extraordinary results?

Niche: Have we compromised our unique brilliance for the sake of another sale, another contract? If so, weâ&#x20AC;&#x2122;re spending extra energy in places where the best we can hope for is to be as good as the next guy. Never chase cheap.

Capital: Have we cultivated a capital partnership, or do we just hope we can get by without it until the banks come back around?

Not going to happen.

Brain power: Do we have what it takes to unleash a new level of creativity and innovation in our businesses? Or are we too close to the problem to see solutions?

Customer/client success: Are we making our customers/clients more valuable on their battlefields?

Content provided by Sam Frowine, founder and owner of The Performance Group, which works with business owners to build the value of their business asset, and Performance Capital Group, a boutique investment bank. For a complimentary copy of Enterprise Capital 2011 Sam Frowine about implementing a successful capital strategy, contact him at 704-597-5156 or sam@ theperformancegroupusa.com.

6*' %11.'4 9#; 61

)1 )4''0

;17 &10Âś6 *#8' 61 )1 61 )4'#6 .'0)6*5 61 )1 )4''0 6*#0-5 61 &+#/10& 524+0)5 174 4'6740#$.' )#..10 $166.'5 #4' 6*1417)*.; %.'#0'& 5#0+6+<'& $'(14' $'+0) 4'(+..'& 9+6* 274' &'.+%+175 &+#/10& 524+0)5 9#6'4 +0 (#%6 9*'0 +6Âś5 6+/' 61 6#-' 6*'/ 176 1( 5'48+%' 6*';Âś4' 4'%;%.'& &1 ;1745'.( 51/' )11& $; .+(6+0) # ).#55 #0& &1 ;174 2.#0'6 51/' )11& 9+6*176 .+(6+0) # (+0)'4 &+#/10& 524+0)5 6*' %11.'4 9#; 61 )1 )4''0

2.'#5' 4'%;%.'

'0'4); 56#4 9#6'4 %11.'45 #8#+.#$.' $; 4'37'56

(14 /14' +0(14/#6+10 %#.. 14 8+5+6 999 &+#/10&524+0)5%#41.+0#5 %1/

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

ap r i l 2 0 1 1

9

Âť!"#$%&'(')%*+,%-."/,""#

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

Executive Looks.

Exceptional Prices

SERVICES OFFERED New & Used Office Furniture Competitive Rental Rates Space Planning & Design Upholstery File & Storage Cabinet Painting Custom Furniture Chair, Carpet and Cubicle Cleaning Moving & Installation Furniture Repair, Touch up and Refinishing Brokering New, Remanufactured and Used Cubicles Used Artwork, Lamps, Rugs, Etc. New & Refurbished Carpet Squares

JK ( LMNO&PK ( NQM ( CQPDNOKMP ( NQDPDEBR&BS( PKMT&CK ( JU&VK ( LMNT&R&BS ( WQEV&D= ( BKJ ( EBR ( QPKR( NXX&CK ( XQMB&DQMK ( ED ( EXXNMREYVK ( LM&CKP <(

PLEASE CHECK OUT ALL WE HAVE TO OFFER:

10

ap r i l 2 0 1 1

scan our QR code for a virtual showroom tour

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

Elliott Davis, PLLC

[accountingbiz]

Accounting, Tax and Consulting Solutions

!ARE THERE LURKING ISSUES IN YOUR EMPLOYEE

W

Terri McNaughton, CPA, Employee Benefit Plan Practice Leader

ith the recent high-profile failures of companies with large employee benefit plans, today’s work force has heightened concern about what employers are doing to protect their retirement assets.

Considering the number of 401(k) plans has increased to more than 300,000 covering more than 42 million people, it is easy to see why this issue is a hot one—and why employers should take great care to ensure their plans are well-managed.

Consequences of Mismanagement Many administrators of employee benefit plans merely process plan information and may not monitor compliance with plan documents, legal or regulatory requirements.

As a result of this growth and a perceived lack of fiduciary oversight, the U.S. Department of Labor (“DOL”) has stepped up its enforcement activities dramatically to Keith Hendrix, CPA, look for prohibited transactions, delinquent remittances Audit Practice Leader of 401(k) employee contributions and other Employee Retirement Income Security Act (ERISA) noncompliance.

Federal agencies and Congress have adopted tough new rules that place fiduciary responsibility for mismanaged retirement plans in the hands of company directors and officers. The DOL and the Internal Revenue Service (IRS) have the ability to impose sanctions of up to 20 percent of plan assets for failing to manage a plan in accordance with the plan document, the Internal Revenue Code and ERISA requirements. In addition, agencies are working with private plaintiffs to go after individual directors and officers in court when a pension plan collapses.

A high quality audit of a plan’s financial statements can sometimes assist in identifying some of the most common fiduciary, administrative and DOL focus issues.

Common Fiduciary Issues There are several common fiduciary issues that auditors come across during audits of employee benefit plans. #1 – Lack of an employee benefit plan committee, or an existing committee that meets periodically but does not record or retain committee minutes of the matters discussed. #2 – Lack of a written investment policy. With the significant number of investment failures within benefit plans, the complexity of investment alternatives, and the complexity of the tax laws covering the qualifications of the plan and fiduciary responsibilities of the trustees of the plan, it is important that the trustees adequately document the due diligence exercised over operations of the plan (including selection of an investment policy and investment alternatives). The trustees should meet periodically to review the investment performance including returns, soundness, investment managers’ performance, monitor tax and qualification compliance, and approve plan amendments. #3 – Lack of oversight of third party administrators.

Information submitted to the third party administrator should be adequately reviewed and approved by an appropriate level of management. In addition, a plan sponsor must review the procedures performed by the third party service providers on a periodic basis.

They also must review reports produced and assumptions made including annual review of the Service Auditors Report (SAS 70).

These reports indicate whether controls at the plan sponsor and service

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

PLAN?

providers are operating in a way to ensure timely and accurate processing of plan data and also address any noted exceptions and how those exceptions may affect the plan.

Common Administrative Issues In addition to the fiduciary issues noted, there are also common administrative errors auditors come across during audits of employee benefit plans. #1 – Failure to follow the terms of the plan document and/or the plan adoption agreement is the most frequent error. It is very common for the plan sponsor to misapply the definition of eligible compensation and improperly include/exclude bonuses and fringe benefits as well as fail to withhold deferrals from manual checks. #2 – Not verifying participant eligibility is another source of frequent errors. In these instances, employees may be participating prior to eligibility or may not be informed of their right to participate when they do become eligible. #3 – Maintaining a fidelity bond or having fiduciary insurance is another area of confusion. The primary purpose of the ERISA-required fidelity bond is to protect the plan against fraud or dishonesty (such as embezzlement from the plan). Therefore, the plan must be the named insured. Usually employee dishonesty policies meet the bonding requirement; however, the plan should be the named insured either in addition to or in lieu of the employer. The purpose of fiduciary insurance is to protect the fiduciaries (for example, the decision makers) from liability. It is possible that fiduciary insurance can qualify as fidelity bonding, but that depends on how the insurance contract is written.

Department of Labor Issues Two items that the DOL has commonly noted in employee benefit plan audits are late remittances and partial plan terminations. Effective January 14, 2010, employee 401(k) contributions and loan repayments to “small” plans (those with fewer than 100 participants) must be deposited by plan sponsors no later than the seventh business day following the payroll date. Currently, this ruling does not extend to plans with more than 100 participants who are still subject to a shorter timeline which requires the deposit as soon as the funds “may reasonably be segregated,” typically the day after the plan sponsor determines the amount of the withholdings.

Partial plan terminations are potentially triggered if 20 percent or more participants are terminated involuntarily as the result of a plant closure, company downsizing or product line termination and could result in all affected participants becoming fully vested. This termination period could extend over multiple years and many times require the assistance of ERISA counsel in analyzing whether a partial termination has occurred.

Selecting an Auditor Selecting an experienced auditor for your plan is critical. More than 10,000 CPA firms perform more than 80,000 annual audits of employee benefit plans.

However, only 54 CPA firms perform more than 100 plan audits. According to the DOL: “The more training and experience that an auditor has with employee benefit plan audits, the more familiar the auditor will be with benefit plan practices and operations, as well as the special auditing standards and rules that apply to such plans.” With that in mind, it is good practice to inquire about the resources of your CPA firm in this unique area prior to a plan audit.

Content contributed by the Charlotte office of Elliott Davis, PLLC, an accounting, tax and consulting services firm providing clients the solutions needed to achieve their objectives in 10 offices throughout the Southeast. For more information, contact Terri McNaughton at tmcnaugton@elliottdavis.com or Keith Hendrix at khendrix@ elliottdavis.com or visit www.elliottdavis.com.

ap r i l 2 0 1 1

11

[bizprofile]

by amanda pagliarini

“Taking care of someone else’s money requires an enormous amount of trust.

These are stressful times and clients are concerned about their ability to remain financially independent and maintain their current lifestyle. It’s not been easy, but it’s certainly been rewarding.” ~David J. Morgan Partner and Managing Director

!

astover Investment Advisors’ founder, Donald Toney, won the Charlotte Economics Club Standard & Poor’s 500 Forecast Contest for 2009. On January 27, 2010, the Charlotte Economics Club presented Toney the 1st Place Award for predicting the S&P would close 2009 at 1111. It closed at just above 1115.

Some would call it luck, others might credit his decades of experience in the industry. If you ask Toney, he’ll tell you he’s “just learned the right people to talk to.”

Before founding the Eastover Investment Advisors, Toney built a career in portfolio and investment management with Hartford National Bank in Connecticut.

In 1976, he moved his family to Charlotte to continue his career with NCNB and later helped organize Interstate Asset Management where he served as chief investment officer.

Toney ultimately abandoned the comforts of a corporate career to open Eastover in 1988. “My wife thought I was crazy. But I wanted to be in control of my own destiny and, most importantly, I wanted to choose how to service my clients.”

EASTOVER INVESTMENT ADVISORS:

BULLISH ON COMMUNICATION AND CUSTOMER SERVICE …THE WAY IT USED TO BE, PERSONALIZED AND EFFECTIVE Keeping it simple In what Toney describes as a client-centric business, the private firm model at Eastover Investment Advisors affords the ability to offer more personalized, consultative service. Perhaps that’s why the firm, which currently holds a little over $175 million under management, has 15-year-plus relationships with the majority of their clients. Toney considers the $1 million to $5 million dollar client to be their sweet spot, though accounts range from $500,000 up to $17 million.

After decades spent working for large corporate banking institutions, the investment advisors at Eastover all joined the company for the same reason it was started—client service capabilities. Like Toney, they saw more opportunity in the privately owned model.

“There are so many road blocks to client service in the larger financial institutions,” David Morgan comments. “Corporate interests and

12

ap r i l 2 0 1 1

goals and client interests don’t consistently align. Here, I’m not serving ‘senior management and the street analysts.’ I’m not urged to recommend products because of the demands to increase profits or meet top-down goals.”

Oftentimes there are even limits to the types of clients you are able to serve in the larger financial institution. Morgan continues, “If a family has $500,000 to work with, but your firm has a $5 million minimum, why should you have to turn them away when you know you can help them?”

Sandy Carlson, the firm’s planner is a CPA and a CFP. She says, “It’s often the families with smaller amounts of money that need the most help. And that help goes beyond investing.”

Carlson handles clients’ financial and estate planning needs as well as insurance review. She is also focused on small business retirement $

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

ap r i l 2 0 1 1

13

(l to r) David J. Morgan, Jack Hinson, Sandra B. Carlson, Stephanie Rhodes, Donald J. Toney, Donal Barrett

plans. “Wealth management to us means more than just making investments. We look between the cracks to see what the client is not focusing on and advise them on solutions to potential problems.

It’s a very fluid situation with each client.”

The newest member of the team, Donal Barrett, came to Eastover after a 15-year career with U.S. Trust and Wachovia, now Wells Fargo. “In my last 10 years at the bank, the name of my department changed three or four times. Each time the name changed, the model of how we worked changed.”

Through affiliations with broker dealer Allen, Mooney & Barnes, and with Fidelity and Raymond James as custodians, there are no limitations in what Eastover can provide their clients versus that of a larger institution. In fact, Morgan notes, “We’re much less expensive than our competitors. Eastover’s fee-based model is generally less than the 1.25 to 1.50 percent (plus the underlying expenses of third party managers and funds) minimums our competitors charge.”

Many prospective clients would probably look right past the team at Eastover Investment Advisors because of its conservative approach. With a company policy to “invest conservatively, service aggressively,” Morgan doesn’t believe you have to take big risks to make money. On the contrary, their clients make money by understanding and managing their risk If you sat in their office in 2009, you might be convinced that they were on to something. While most of “[In 2009] we saw a lot their industry was weathering hurricanes, they saw little of value in the corporate more than clouds. bond market and Their policy on client service might be aggressive, but municipal bonds held up when it comes to investments and financial planning, Eastover commits to keeping it simple. Carlson, Morgan, fairly well. There were Toney and Barrett all squirm in disapproval when menreally only one or two tioning hedge funds or eccentric investments.

frantic calls we fielded during the economic crisis. I think it had to do with the fact that our clients trust us.”

Objectivity and Accountability “Anything that doesn’t have transparency or liquidity—we’re not interested,” Morgan says with conviction.

“I’ve seen what lack of transparency can mean to an investor; clients take comfort in knowing exactly what ~Donald J. Toney they own.”

Managing Director Toney credits a relatively quiet 2009 despite the tumultuous economy, in part, to this strategy. “We saw a lot of value in the corporate bond market and municipal bonds held up fairly well. There were really only one or two frantic calls we fielded during the economic crisis. I think it had to do with the fact that our clients trust us,” Toney says modestly.

Part of earning that trust comes from clarity and this overarching policy of keeping everything, including statements, simple. Client statements are kept to a couple of pages with clearly identified, simplified information.

“We don’t believe in sending out 50-page statements of crowded information with eight different managers listed. We’re more hands-on and want the person reading the statement to understand it,” Morgan explains.

14

ap r i l 2 0 1 1

One’s money and how it is handled is an emotional matter, a fact Eastover doesn’t take lightly.

“Outside of taking care of someone else’s children, taking care of someone else’s money requires an enormous amount of trust,” Morgan admits. “These are stressful times and clients are concerned about their ability to remain financially independent and maintain their current lifestyle. It’s not been easy, but it’s certainly been rewarding.”

Advising is based on a client’s lifestyle, life events, and future plans. They don’t believe in financial planning templates, but rather creating plans that are tailored specifically to each client’s needs, risk tolerance, and longterm goals.

“So when clients come to us and want to take action following the latest sound bite, it’s our job to ask, ‘Does this adhere to the plan that is based on your long-term goals?’ We try to take the knee-jerk emotions out of the process and help refocus our clients’ attention to their ultimate goals,” explains Morgan.

“If you have the time and expertise, managing your own investments is not a poor decision. Generally though, you don’t build your own house. You need the help of an architect, engineer, mason, designer…”

He argues that even armed with knowledge of the markets, it’s too challenging to make decisions and react objectively about your own money. And there again, disseminating all of the information and distinguishing fact from noise is critical.

“Over my career, I’ve gotten more calls from clients wanting to know more about something Jim Cramer said the night before on Mad Money,” says Barrett.

Toney’s founding model based on consistent and regular communication is still Eastover’s foundation today. “When you communicate

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

regularly, you mitigate surprises,” affirms Toney.

In fact, Eastover insists on annual meetings, even when the client expresses satisfaction with the current strategy or plan. “The clothes I have on today might not fit quite right the next year,” Morgan explains. “You have to have that annual ‘fashion’ check-up to make sure everything still fits properly.”

“We make house calls, though,” Toney chuckles. “We’ll come to you, meet over a meal or over coffee. We just feel strongly about that face-to-face time.”

In a time when many Americans are jaded by the financial industry, the need for accountability from financial service providers is paramount.

“For the past several years, greed ran the thinking in this country,” Toney says plainly.

“Beyond the moral or ethical implications, the consensus at Eastover is that simply ‘greed is not good.’”

In their 2010 Winter Newsletter, Morgan touched on a meeting with a non-profit that was referred to Eastover after expressing dissatisfaction with their current advisor’s lack of answers regarding performance. In the newsletter, Morgan addressed the issue of accountability to clients with a nod to The Blues Brothers: “The movie The Blues Brothers, with Dan Akroyd and John Belushi, has many outrageously funny scenes, but the one that stands out to me right now is the confrontation in the sewer between Belushi and Carrie Fisher, the jilted bride-to-be. Before Carrie can shoot Jake, he drops to his knees and spouts a litany of excuses: “I ran out of gas, I had a flat tire, I had no money for cab fare, my tux didn’t get back from the cleaners, an old friend came into town, someone stole my car, a terrible flood...locusts.. an earthquake...it wasn’t my fault!!!!!!!!”

Eastover continually stresses the attributes of accountability, simplicity and transparency. They believe that when clients have questions about performance, they should have answers.

(l to r) Donald J.Toney Managing Director David J. Morgan Partner and Managing Director Eastover Investment Advisors, LLC

“So when clients come to us and want to take action following the latest sound bite, it’s our job to ask, ‘Does this adhere to the plan that is based on your long-term goals?’ We try to take the knee-jerk emotions out of the process and help refocus our clients’ attention to their ultimate goals.” ~David J. Morgan Partner and Managing Director

Multi-Generational Stewards “Because we are a small firm, we can’t hide behind an institution and be relative to how everyone else is doing,” Morgan notes. “Some people get in this business for their livelihood, and some just want to go for that brass ring.” Those who want the brass ring don’t last because, as Morgan jokes, once you’re in the business you realize there’s no such thing.

Last year, Morgan met with a client’s son, a recent college grad, to discuss setting up his first 401(k) plan. “There’s no money in that, but

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

it means a lot to the client. And frankly, it’s a sound financial decision—it’s time for him to start saving.”

When you consider clients to be family, meetings such as these are par for the course.

The advisors at Eastover enter into client relationships to be a steward of their money, through multiple generations. That’s just what Toney has accomplished.

“Clients’ children become clients and before you know it, we’re discussing plans and accounts for their children. I go to clients’ wedding anniversaries, birthdays, their children’s weddings, family funerals. You really develop relationships with not just one client, but their family,” says Toney.

Morgan, Carlson and Barrett concur: “You can approach this business in a very sterile fashion, but because you really get to know your clients, you’re affected by the things going on in their lives and you really want to deliver for them.”

Having built a successful and respected practice that has attracted top talent to the team, people often inquire about when Toney plans to retire.

It is important to Toney that the firm has added investment depth and strength with its association with Raymond James and Allen Moody and Barnes, and having quality people like Barrett, Carlson and Morgan there so there will always be business continuity.

Although he adamantly states, “I have no thoughts or plans to get out of the business or retire. If I did, I would lose 95 percent of my friends. And besides,” he smiles, “I don’t think my wife wants me around the house that much.” biz Amanda Pagliarini is a Charlotte-based freelance writer.

Eastover Investment Advisors, LLC 5605 Carnegie Blvd., Ste. 375 Charlotte, N.C. 28209 Phone: 704-336-6818 Principals: David J. Morgan, Partner and Managing Director; Donald J. Toney, Managing Director; Sandra B. Carlson, Managing Director Established: 1988 Employees: 6 Business: Provides investment advisory services, financial and estate planning, and insurance services for individual and institutional clients. www.eastoverwealth.com I N V E S T M E N T

A D V I S O R S,

ap r i l 2 0 1 1

L L C

15

[bizprofile]

by mary storms

Driving EFFICIENCY !"#"$%&'($)*)+,#-$)./(#"0-&)1$$(#,'"#-) ./(023'"#"'4)5(62'"($&)7(/)8,$27,3'2/"$%

T

o see what could be versus what is.” That’s the vision Clifton Vann III and Clifton Vann IV have had for Charlotte-based Livingston & Haven (“L&H”) since Vann III bought the company in 1980.

It’s an unexpected vision for a 64-year-old regional, family-owned motioncontrol engineering company with its roots in the plain vanilla petroleum handling equipment business. But then, lots of things about L&H are unexpected.

A Lean Strategy First, the basics: What does L&H do? It’s a $70 million engineering company that specializes in motion control—that is, automating pneumatics and hydraulics for manufacturing companies.

Motion control plays a critical role in robotics and sophisticated machine tools, using devices such as hydraulic pumps and electric motors to control a machine’s position and/or velocity.

However, L&H is not a manufacturer. It is a problem-solving 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.

“The common theme in our solutions,” says L&H President Vann IV, “is that we provide an off-balance-sheet engineering resource for our clients without them having to bear that cost.”

L&H is a distributor for more than 100 vendors for manufacturers in six southeastern states: Georgia, North and South Carolina, Tennessee, West Virginia, and Virginia, including three express stores selling industrial accessories. “We have about 6,000 customers in the Southeast U.S., from Nucor Corporation to small garage businesses,” says Van IV. L&H is also a design/build engineering firm whose mission includes helping its clients see beyond what is.

Says Vann IV, “We help solve their problems and even help articulate what they are. More than ever, our manufacturing clients want to do something they’ve never done before and they don’t know where to start. We’re willing to take them from the napkin drawing to the end.

“Our real value is in sharing our experience. We’ve processed chicken. We’ve made aircraft carriers. The breadth makes us uniquely qualified to help. My grandfather used to play the Concentration game with us: Where have I seen that card before? That’s like our business: Where have we seen that problem before?” continues Vann IV. L&H’s tagline, Driving Efficiency, speaks to their problem-solving approach for customers and themselves. “That tagline is reminds us to open our own minds and not be isolated in our own worlds,” Vann IV explains. After struggling with profitability in the early 2000s, L&H decided to implement a strict “lean” manufacturing mentality inside and out—from process$ ing orders to helping customers package products more efficiently.

16

ap r i l 2 0 1 1

ap r i l 2 0 1 1

17

“We took on the risks and parlayed that into better opportunities for them and for us.”

Clifton B.Vann IV President Livingston & Haven, LLC

“The common theme in our solutions is that we provide an off-balance-sheet engineering resource for our clients without them having to bear that cost.” ~Clifton B. Vann IV President “Because we’re not really a manufacturer, lean is the big answer for us internally. We use lean as the overarching value for driving waste out of our internal structure,” says Vann IV. Vann IV uses the same lean mentality for his customers, from processing orders, to running the plant or packaging the product more efficiently.

He gives an example of helping a customer rebuild a machine that makes bottle sleeves. For L&H’s client to meet its customer’s needs, the machine had to run twice as fast, producing 100 sleeved bottles per minute, rather than 50.

In the Genesis Group, L&H’s R&D facility, L&H solved the bottle problem with no upfront costs to its client, just a promise of royalties. “This creative financing and manufacturing approach opens up new markets for our customers because they can sell to bigger companies, says Vann IV.

18

ap r i l 2 0 1 1

Men with a Vision Vann IV’s vision, like his father’s, looks beyond L&H and U.S. manufacturing. He sees today a nation that has forsaken the manufacturing economy for services, and he’s on a mission to change that in Charlotte, in North Carolina, and across the U.S.A. In 2006, the national Progressive Manufacturing Awards recognized L&H as the company doing the most to increase awareness of the importance of preserving American manufacturing. “No one was more surprised than us, since we were up against the likes of GE and IBM,” Vann IV admits.

“Our goal is to preserve manufacturing in the U.S. through the use of the technologies we sell,” Vann IV emphasizes. “John Q. Public needs to know the value of building things for today and for generations to come. We can’t count on other countries to provide the critical industrial products our nation needs.”

To further this goal, Vann IV started his own video blog, TheHomeForInnovation. com. It emphasizes that America will create stable jobs and long-term wealth by retaining its manufacturing base: “Real wealth equals manufacturing. Manufacturing equals real wealth.” In other words: Stop outsourcing manufacturing to other countries.

In his blog, Vann IV talks about rebuilding the future of American manufacturing for his three boys and generations beyond them: “My oldest boy is interested in science and is frustrated because his friends aren’t usually interested. Is that because they’re not interested or not exposed?”

Using online video to build a national platform isn’t Vann IV’s only push-the-envelope idea.

L&H’s culture of seeing what could be is infused in everything the company does. In fact, in 2008, L&H won the Progressive Manufacturing Awards’ Innovation Mastery Award.

“The Mastery Award was for a specific technology: the KD-RIG, designed to optimize suspension systems for NASCAR teams,” Vann IV explains, “where making a difference as minute as milliseconds means the difference between coming in first and coming in 42nd.”

It has become standard race-team equipment.

In July 2008, L&H completed a 60,000-square-foot corporate headquarters across from its original offices on Wilmar Boulevard in southwest Charlotte. It includes a warehouse with $5.5 million of just-in-time inventory, and an 8,500-square-foot R&D wing for the Genesis Group. Genesis serves as “an area and a state of mind for creating and trying out new ideas,” Vann IV explains. Many of L&H’s 155 employees annually participate in 100 or more hours of Genesis’ creative education.

L&H’s vision for what could be extends beyond its staff and clients to vendor-partners.

The new headquarters houses its Institute of Applied Technology, open to employees and partners, and offers a vendor-partner certification program.

Vann IV defines innovation as, “Any kind of creative thinking that solves a problem.

Innovative solutions come from all over our company. The key is to constantly keep your eyes open.”

All in the Family L&H began in Charleston in 1947 as a petroleum-handling equipment company. In 1980, Clifton Vann III bought it.

Livingston and Haven were the founders of the company. “Mr. Livingston, I never knew. Mr. Haven, however, was very influential in the company and lived until 1993 when he was 93. He fought in WWI and WWII and was friends with Erwin Rommel.”

According to Vann IV, Haven was “the dictionary definition of entrepreneur. He was learning to speak Chinese in his later years, and was mad

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

VoIP

when the mortgage company wouldn’t give him a 30-year mortgage.”

The Vanns were drawn into the L&H picture in 1966 when Clifton III started working for then-President John Flint in Charleston. Flint was impressed and made Vann III an offer he could refuse—but didn’t. Vann took the job at half the income he was making at a large paper mill. That was the same year Vann IV was born.

one company | one call

Unified Communications !Business Telephone Systems !Structured Cabling Systems

“We help solve their problems and even help articulate what they are. More than ever, our manufacturing clients want to do something they’ve never done before and they don’t know where to start. We’re willing to take them from the napkin drawing to the end.” ~Clifton B. Vann IV President

!Office & Warehouse Paging !Data Networking Build & Design !Telecom Management & Consulting !"#$%& '()*+,&-. %/ 0'+0, %/ &,/.0% / 1-,.2++0 3%'/%#"#!4 56$789"7$566%% : : : 7 + 0 .:- , 0 7 / 2 ;

NAVIGATING THE SEA OF TECHNOLOGY

e Companies

wing Privat

Fastest-gro

Serving Our Customers Since 1947

REAL SUPPORT Regardless of your business's needs, basic or complex, Waypoint Solutions Group is the IT consulting firm that can help you. Whether you need to build your IT network from the ground up, are ready to refresh your existing network, or just need reliable IT support, Waypoint Solutions Group can help you.

“It seemed a little crazy,” said Vann IV. But that wasn’t the last crazy thing his father did. “In 1973, my family moved here from Charleston to start the Charlotte branch. My dad ended up trading a commission check for equity in the company. That vision has been a part of our family and company culture since the very beginning. To see what could be versus what is.” $ The younger Clifton started working

/////////// /////////////////////////////////////////////////////////////// Learn how Waypoint Solutions Group can cut your IT costs and improve computer uptime

9305 Monroe Road Suite L Charlotte, NC 28270

Phone: 704-246-1717 Toll Free: 877-4U-EASYIT

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

!www.waypointsg.com ap r i l 2 0 1 1

19

Re V so ast ur ce s

C Vi om si m on itm & en t

at L&H 27 years ago. By age 13, he was a regular fixture, sweeping warehouses and packing boxes every summer while he attended Charlotte Country Day, then N.C. State, where Va l he earned a B.A. in business Seuerv Ad ice de management. s d “Then I came back to the school of hard knocks to finish my education,” laughs Vann IV. At L&H he had held “just about every position in the company” on his way to becoming president in 1998 at age 32, earning the respect of a team who remembered him as a 13-year-old floor sweeper.

Although, from time to time, other family members have spent time in the business, today it’s just Vann III and Vann IV. “We had two captains of the ship for a while,” Vann IV says. “We worked on that over time and today, it’s as good as it’s ever been in terms of relationship and having clarity in our roles.”

Vann IV notes that succession is one of the greatest threats for a family business. Only 30 percent of them survive through the second generation and only 3 percent survive beyond that. Part of his vision is for L&H to survive the failure rate. His advice for family businesses:

“Treat the family members no different than anyone else.

Ask can they do the job, and are they committed?

It’s a tough conversation.”

Keeping It in Harmony The elder Vann is still active at L&H. Says his son, “He doesn’t work on Fridays and works less in good weather. He sits at the highest place in the boat, seeing things that we don’t see from down on the deck. That’s incredibly beneficial.”

The previous president also leads one of L&H’s visions for the future, MROstop.com, “an Internet business selling the same products worldwide that we sell as a distributor,” Vann IV explains.

“Tomorrow is the Internet. Dad doesn’t understand all the bits and bytes, but he understands the importance.”

As a sideline for the last 10 years, the younger Vann has been guitarist and back-up singer in the non-profit rock band “Charity Case” with Ace, of Ace & TJ, a syndicated morning radio show on Kiss 95.1 FM. Charity Case events have raised over $750,000 for Ace & TJ’s Grin Kids, a non-profit foundation that benefits disabled and terminally ill children, showing them what could be on a trip to Disney World each year.

!"#$%&'()$"*&'" +,-".('%/0

We care about our customers and make every effort to provide you with the finest in medical equipment and supplies.

!Durable medical equipment !Respiratory equipment & Services CHARLOTTE 4231 Monroe Road Charlotte, NC 28205 704.347.1993

GASTONIA 2515 E. Ozark Avenue Gastonia, NC 28054 704.868-3132

But most of the time, L&H’s lead guitarist focuses on identifying his business’ next long-term gig because the rhythms of business change so rapidly. “The automation that exists today didn’t exist in 1985,” says Vann IV. “We were mostly a hydraulics company.

In 2010, for the first time, our company sold more automation than hydraulics. It’s all motion control. We can do that through the use of air (pneumatics), oil (hydraulics) or electromechanical solutions,” he continues.

Vann IV lauds the L&H team and credits its constant communications with keeping all the company’s parts in harmony, from RECON, with its focus on green manufacturing, to MROstop. com, using the Internet to broadcast its offerings worldwide. Teamwork has helped raise the revenues of this Charlotte-based engineering firm from $43 million in 2004 to its current $70 million.

In contrast to the rock band Charity Case, L&H won’t be looking backward, singing other people’s music. Vann and his team are writing new material, bringing in more business “by being creative, not just hoping to do more of the same.”

Their plan for what should be? Increasing the hum of high-end manufacturing in Charlotte and across the U.S.A. biz Mary Storms is a Charlotte-based freelance writer.

Livingston & Haven, LLC 11529 Wilmar Boulevard Charlotte, N.C. 28273 Phone: 704-588-3670; 800-825-4969 Principals: Clifton B. Vann III, CEO; Clifton B. Vann IV, President Employees: 155 In Business: Since 1947 (64 years) Business: Providing innovative productivity solutions for manufacturing including automation, hydraulics, pneumatics, mechanical linear, connectors and lubrication.

Awards: Charlotte’s Top Technology Consulting Firms, Charlotte Business Journal (2008, 2007); Progressive Manufacturing 50 Awards Program, Managing Automation (2008, 2007); High Achiever Award for Innovation Mastery, Managing Automation (2008); Silver Winner of Health at Work Award, ComPsych Corporation (2008); Progressive Manufacturer of the Year, Managing Automation (2007); Sales Achievement Award, MTS Systems Corporation (2006) www.lhtech.com www.mrostop.com

w w w. g r i f f i n h o m e h e a l t h c a r e . c o m 20

ap r i l 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

THE EMPLOYERS ASSOCIATION

The Employers Association

Trusted HR Advice, Tools & Training

[employersbiz]

Legislative and Regulatory Highlights for Area Employers

!MESSAGE FROM THE PRESIDENT

ESC NEEDS AN OVERHAUL I’m hearing from many employers that the North Carolina Employment Security Commission is badly in need of an overhaul. According to the most recent numbers, the ESC owes the federal government about $2.5 billion, and the first interest payment of roughly $100 million is due in September. North Carolina has the fourth highest debt level per employee in the United States, which is the highest in the southeast region.

The state has been hoping the federal government will forgive the debt. But with the federal deficit increasing by the minute, there is no indication that this will take place.

Something needs to be done.

While the ESC has been a good friend to TEA over the years, it has been brought to my attention that the ESC has hired a number of new adjudicators and appeals referees, and there are questions about whether or not they have received proper training. There is a perception that more subjective personal opinions are reflected in the decisions they render, rather than case law or good business sense. As North Carolina is facing a severe budget crunch, many legislators are backing the idea that the ESC be merged with the Department of Commerce. They say that the Commerce Department is better managed, plus there could be considerable savings in manpower and technology.

I know that many of you have been frustrated with rulings from the ESC, and it seems that many claims that should be denied because of “misconduct” are actually being upheld in the employee’s favor. The Employers Coalition of North Carolina (made up of members from the three North Carolina employers associations) is lobbying very hard to have the definition of “misconduct” rewritten so that it is more clear and more favorable to the business community. It appears we have the attention of several key legislators, and we are hopeful that changes will come in the near future.

To show you how the ESC rulings can be puzzling, let me tell you about two recent rulings received by member companies. In the first case, a medical practice had a nurse who was forging prescriptions for herself. She was addicted to prescription medication, which caused health problems for her. The practice terminated her for forging prescriptions. The ESC granted her benefits, ruling she “left work due to a health condition—solely because of a disability.” While she may have had a disability, the reason for the termination was forging prescriptions, which is not only against company policy, but is also illegal. I think we can all agree that illegal activities should be classified as misconduct and therefore disqualify someone from receiving unemployment benefits.

In the other situation, a company had “no weapons” signs prominently posted at their workplace, and they had a no weapons policy in their handbook. An employee brought a gun onto the worksite and stored it in his locker. When confronted, he denied having a gun at work, and when they searched his locker and found the weapon, he claimed he forgot it was in there. Of course, he was terminated, but the ESC granted him partial benefits stating this was a “one time event,” ruling it was “substantial fault” rather than “misconduct.”

Using that logic, I guess the ESC could rule that an employee could punch his supervisor, drink on the job, or embezzle money, and still receive unemployment benefits, as long as it is a one time event—or maybe they can blame it on a health condition. Think about it!

!"--#)./)0'12"&% President

)

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

!Paid Trainee or Intern?

"# $#

We are considering recruiting several college students for summer internships. Do we have to pay them?

In some cases, individuals working for an employer in a training capacity do not qualify as “employees” under the Fair Labor Standards Act (FLSA) and therefore do not have to be paid.

Their activities and work completed during the internship will determine their employment status.

The following criteria are used to determine if the trainees or students are employees within the meaning of the FLSA. ALL of these criteria must be met in order to establish the internship as unpaid.

1.

The training, even though it includes actual work done at the facilities of the employer, is similar to that which would be given in a vocational school. The learning experience encompasses a sequence of activities that build upon one another, increase in complexity, promote mastery of basic skills, and are coordinated with education provided via the school-based learning component.

2.

3.

The training is for the benefit of the trainees or students.

The trainees or students do not displace regular employees, either in not hiring someone who would otherwise be hired or in fewer hours worked.

4.

The employer receives no immediate advantage from the activities of the trainees or students and, on occasion, may have operations impeded. Any productive work that the trainee performs would be offset by the burden to the employer from the training and supervision provided.

5.

The trainees or students are not necessarily entitled to a job at the conclusion of the training period. This does not preclude employers from offering a position at the end of the training program.

6.

The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.

Content provided The Employers Association, providing comprehensive human resources and training services to a membership of over 860 companies in the greater Charlotte region. For more information, contact Laura Hampton at 704-522-8011 or visit www.employersassoc.com.

ap r i l 2 0 1 1

21

The most recent additions to Charlotte’s architectural identity are the Tryon Bridge Beacons, two bridge pylons that flank one of the major streets that enter uptown. They are a gift from the Queen’s Table, a group of local philanthropists who work behind the scenes to enhance the quality of urban life in Charlotte.

They commissioned Friedrich St.Florian, the Austrian-born and Columbia-trained Providence, Rhode Island architect who designed the World War II Memorial in Washington and has had a distinguished career as an avant-garde designer of monuments.

St.Florian has created a symbolic gesture that redefines the entrance to Charlotte’s commercial heart. The 25-foot-high stainless steel pylons are triangular in elevation; their upward-sweeping canopies provide a sense of lightness, while sinuous, cast acrylic curtains billow out from the canopies. The bases of these framing devices are 16 feet square and the sail-like canopies displace 18 square-feet.

The curtains are lit along their edges by LED fixtures that create an ethereal glow at night.

Asked his impressions of Charlotte, St.Florian comments: “Charlotte seems to me to be the quintessential 21st-century American city…I counted 20 building cranes on the skyline. Unlike the older northeastern cities, Charlotte is a ‘City in Process,’ one that looks forward to its best days. This aspect had an influence on my design.”

Asked his symbolism behind the architecture, St.Florian explains: “The Tryon Street Bridge is an important point of entry into uptown Charlotte. There is a sense of theatrical splendor that radiates from the assembly of high rise buildings. It is like a stage set before your eyes as you cross Tryon Street Bridge.

The new bridge heads are framing devices that offer focus and compression not unlike the opening of the curtain at the beginning of a lyric opera.

Surely, there couldn’t be a more appropriate time to herald Charlotte’s entrance onto the international stage of destination cities—front and center.

(Friedrich St.Florian, www.fstflorian.com/tryon.html; William Morgan, http://readinform.com/feature/ tryon-bridge-beacons-beckon/)

22

ap r i l 2 0 1 1

Tim Newman photo: Wayne Morris

!Tryon Bridge Beacons

Tim Newman Chief Executive Officer Charlotte Regional Visitors Authority

by amanda pagliarini

[bizprofile]

PUTTING CHARLOTTE

Front and

Center

CRVA Ambassadors Southern Hospitality All the Way to the White House

%

en full-to-the-brim rolodexes occupy fully one-third of Tim Newman’s desk, proof that the persona he displays on the streets of Charlotte is authentic. In a business community where many think it important to know him, he believes it important to know them.

In his seventh year as CEO of the Charlotte Regional Visitor’s Authority, most in Charlotte know Newman’s name and face, many know his title and where he works, and some could probably tell you what he oversees. But few understand the real meaning of the work he and his team do, and why it matters so much to our city.

Getting the Authority The Charlotte Regional Visitor’s Authority (CRVA) is responsible for marketing our destination through Visit Charlotte (formerly the Convention & Visitor’s Bureau), and overseeing the management and operations of Charlotte’s public facilities which include the Convention Center, Time Warner Cable Arena, NASCAR Hall of Fame, Bojangles’ Coliseum, and Ovens Auditorium.

Newman was serving as president of Center City Partners when was he was tapped to run the newly formed CRVA by its City Council and mayor-appointed board of directors. A native North Carolinian, Newman was well qualified for the position. He attended UNC at Chapel Hill on a Morehead Scholarship obtaining a B.A. with Distinction in economics and political science, and later attended Columbia Business School in New York as a Lawrence Wien Fellow, obtaining an MBA. He worked for Morgan Stanley & Co.’s public finance unit in the southeastern coverage and sports transaction groups and for Wachovia Securities where he covered the Carolinas in both taxexempt and sports finance. He then joined Beaver Sports Properties where he coordinated interests in five minor league baseball franchises and represented Mr. Beaver in his Major League Baseball efforts. He was named vice president and general manager of the Charlotte Knights, the position he held until becoming president of Charlotte Center City Partners, where he was responsible for the marketing and management of Charlotte’s Central Business District.

As the CEO of CRVA, Newman is charged with elevating Charlotte as a destination to attract events to town that will grow the local hospitality industry. He describes his role as “head coach for tourism.” One of his first self-appointed tasks was what he refers to as “a listening tour,” meeting with various groups. Among the comments heard most frequently at those meetings was that there $ was “nothing to do around the Convention Center.”

ap r i l 2 0 1 1

23

!"#$%&''()*+ +++++,&'+#+%&'-

To date, the most newsworthy convention wins for the city have been the 2010 National Rifle Association (NRA) Annual Meeting and the 2012 Democratic National Committee Convention (DNCC). There are those who feel the DNCC has become an over-boasted, talked-to-death sound bite, but to those who have worked to grow Charlotte into a destination, it is a grand testament to city progress.

“The totality of these additions has elevated Charlotte as a contender for major convention and tourism opportunities. These facilities allow us to play in an arena we couldn’t play in before.” ~Tim Newman CEO “We had no destination asset,” Newman explains. With meeting planners as his target audience, this was unarguably a profound void.

“Meeting planners look for three things when selecting a destination: amenities, affordability, and access.”

Newman notes that with Charlotte Douglas International Airport and a lower cost of living relative to other parts of the country, we had two of the three factors. “But two out of three wasn’t going to put Charlotte on the map.”

Playing in a New Arena In 2000, Charlotte had been put on the short list of cities to host the Republican National Convention (RNC), but was ultimately passed over for Philadelphia. The RNC felt Charlotte was too

24

ap r i l 2 0 1 1

low on hotel rooms and took issue with the fact that our coliseum was miles outside of our city center.

“We got on the short list because of relationships, but we never could have pulled it off,” admits Newman.

Since the CRVA was created in 2004, Newman has rallied to build a destination that could. Over the last seven years, he has been instrumental, and at times the ringleader, in bringing the city Time Warner Cable Arena, upgrades to the Convention Center, and most notably, the NASCAR Hall of Fame. And when it came to other city additions outside of the CRVA’s mandate, such as the EpiCentre, LYNX light rail, and the Cultural Campus, Newman worked to support them.

In an ‘If you build it, they will come’ fashion, The Ritz-Carlton, Starwood Hotels (Aloft Hotel), and Hotel Sierra took note of Charlotte’s growth and in turn built facilities, giving the city a needed increase in hotel rooms in close proximity of the Convention Center.

When the city chased down The NASCAR Hall of Fame, the vision for the Hall was bigger than just a facility that would attract fans. With the Hall came additional meeting and convention space that could accommodate groups of up to 2,500, intentionally adjacent to the Convention Center.

“The totality of these additions has elevated Charlotte as a contender for major convention and tourism opportunities. These facilities allow us to play in an arena we couldn’t play in before,” affirms Newman.

CRVA Board Treasurer and President of Bissell Hotels Joe Hallow says, “Tim has been instrumental in propelling Charlotte to an international tourism destination. There are very few that love Charlotte and the region as much as Tim Newman does.”

What Does it All Matter?

Last month, close to 200,000 visitors came to Charlotte for the CIAA Tournament. They left behind close to $40 million of their dollars. Since 2006, the CIAA Tournament has brought $156 million to the Charlotte economy.

One of the CRVA’s first signature deals, the Tournament just renewed their contract thru 2014.

According to the Hospitality and Tourism Alliance, the Charlotte hospitality industry generates over $3 billion in annual revenue and employs more than 60,000 people in Mecklenburg County.

Events held in May 2010 brought in a record $400 million in economic impact to the city.

Included in these events were the NASCAR Hall of Fame grand opening, the NRA convention, and the Quail Hollow Championship.

But it’s not just the nationally coveted events that Newman and the CRVA woo. Newman illustrates, “We’ll have a big CIAA one weekend, then a tech conference for a week, and then later on the Mary Kay convention will be in town.”

Newman considers events with 3,000 to 4,000 attendees to be their “bread and butter”, of which they have 20 to 25 weeks a year. “We don’t want to be Orlando or Las Vegas,” explains Newman, which he says are considered prime convention cities, “but we want to be able to compete with them for business.”

As Newman puts it, “People come to town, spend their money, and don’t require a school seat… it’s the cleanest kind of economic development.”

Aside from the revenue brought into the city, Newman points out the number of subsequent opportunities that tourism offers. Executives brought to town for a conference create a bridge for those at the Chamber or Charlotte Regional Partnership whose mission it is to entice companies to move to our region.

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

Though Center City Partners are leading the charge to bring retail to uptown, Newman stands beside them in their quest. “Retailers want to see 20,000 residents in a given location. Right now, uptown has about 15,000.” But Newman makes the argument, “On any given day, tourism can add 2,000 to 40,000 to that number.”

“His job is very challenging but he has an amazing grasp of the big picture,” attests Tom Sasser, CRVA board member and owner of Harper’s Restaurant Group.

Coach Under Fire Despite the successes, Newman has received backlash from some city leaders, most recently involving the NASCAR Hall of Fame.

During the bidding process, the CRVA predicted attendance of 800,000 during the Hall’s first year. Though this estimate was arrived at with the help of a research company, Newman admits he wasn’t concerned about the validity of the number at that point in the process.

Additionally, sponsorship dollars projected in 2006—a time when the country as a whole was blissfully unaware of what lie ahead in ’08 and ’09—have fallen short. The Hall now forecasts $1.3 million in losses, in contrast to the expected $620,000 in profits.

But Newman doesn’t seem worried. He references Charlotte’s history with new projects, noting the dismal outlook given to the fate of Time Warner Cable Arena and the U.S. National Whitewater Center, both now operating profitably.

“When the new arena went up, you couldn’t find anyone to say anything positive about it.

Now anyone with a lick of sense sees what a valuable asset it is,” Newman says. Like the Whitewater Center that only recently found its way to profitability, Newman says they’ll work out the kinks and get it right.

Despite falling way below the initial projection, the NASCAR Hall of Fame’s actual expected attendance figures of between 250,000 and 350,000 are on par with those anticipated at the Baseball Hall of Fame and Museum in Cooperstown, N.Y., according to an ESPN source, and are ahead of the Pro Football Hall of Fame in Canton, Ohio.

While direct numbers from the Hall of Fame have been low, Newman points to revenue streams most people don’t see. “We have $225 million in confirmed events that booked their business in the Hall of Fame Ballroom.”

The Hall’s studio spaces maintained by NASCAR Media Group were one element that impressed the DNC when touring Charlotte.

The DNC typically has to build a separate tent to accommodate the media, but because of the capabilities and space afforded by the Hall, the media $ covering the DNC will be housed there.

CANON BUSINESS SOLUTIONS TERECK Inc.

/0123%45464781

!"#$#%&'()#*((% +$,'-)$#(. !"#$%&$'()*+",,-.

!"#$#%&'()#*((%+$,'-)$#(9%$::*;)#<%"=";>6=)##)#<%*?')@A*#-% "#>%('@@$;-9%B"(%*C@"#>*>%$';%$@*;"-)$#(%)#%-B*%!B";,$--*% ";*"D%!",,%'(%-$>"E%-$%F#>%$'-%B$=%$';%'#)?'*%G'()#*((% "#",E()(%H"#%/01/,)&,%)++2%;*>'H*%E$';%$I*;",,%H$(-(J

30+,%40&5,%"&$'"6%-*/ 7*"805,%"&$92/,-:/ ;%8-$<"*:),$7*%&,-*/ $$=7$7*%&,-*/ >"50:-&,$3)&)?-:-&, 9066+%-/$)&8$3-8%)

T A K I N G I N I T I AT I V E

AUDIT & ATTEST SERVICES ACCOUNTING SERVICES GOVERNMENTAL & A-133 AUDITS MERGER & ACQUISITION PLANNING

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

TAX COMPLIANCE & PLANNING REAL ESTATE CONSULTING SERVICES ESTATE & TRUST TAX PLANNING MULTI-STATE TAX PLANNING

10815 Sikes Place, Suite 100 Charlotte, NC 28277 704-841-9800 (fax) 704-841-9802 www.bbwpllc.com

Accountants First, Advisors Foremost ap r i l 2 0 1 1

25

“I’ll always admit when I’m wrong,” Newman contends. “But the critic doesn’t mean anything to me…unless you’re offering up an idea.”

Looking Ahead Newman is very clear about the CRVA’s goals for the future and the challenges he needs to address to achieve them. For a man who just booked the President of the United States and all of his friends, you might be surprised to learn what Newman has his sights set on for the future—amateur sports.

“I won’t say anything is recession-proof, but amateur sporting events are recession-resistant,” Newman says. When a kid is participating in an activity, Newman points out, the family comes in tow. But in order to capture that business, Charlotte is going to need more sports facilities.

“Right now we’re losing a lot of that business to other cities with great complexes.”

Additionally, with the success of the Belk Bowl (formerly the Meineke Bowl), Newman lets on that he intends to work towards bringing a signature Labor Day football game. To those who know Newman well, his vision for growing family tourism opportunities through sports is a business decision likely born from his greatest passions—his children and the Tarheels.

When it comes to the DNC, Newman says

“We don’t want to be Orlando or Las Vegas, but we want to be able to compete with them for business.” ~Tim Newman CEO Charlotte will be an order taker moving forward.

Locally, Will Miller has been appointed as acting executive director of the committee referred to as “Charlotte in 2012,” but once the DNC sets up office here in June, they run the show, calling on local support as needed.

Newman urges, “You’re crazy to get out of town that week.” He and his team are already planning special events for the regular Charlottean who might not otherwise have any involvement with the Convention.

Though he’s in charge of bringing outsiders to our city, Newman stresses how important it is for Charlotte’s residents to know what an amazing

S6*9-6( >-2A/058( :*?7/1/37/30( /:*3*>4/58( 0/:,3*6*@4/5( 0,-0(02+6)(:,-3@/(0,/(;-)(9+543/55(45(7*3/Z-66(*'(0,/5/(-37( >*2/( -2/( *''/243@( :,-66/3@/5( *'( -( >-@340+7/( ;/( ,-./3I0( '-:/7(9/'*2/<(Y+543/55(-5(+5+-6(;*3I0(@/0(0,/([*9(7*3/<

2011 is the Year for Business-Savvy Innovators to Revive and Thrive!

Join Us!

0122*&3456(453I0([+50(-(9+\\?;*278(40I5(-(>-37-0/](D,/( ^%##(5/-5*3(*'(YP&(;466('*:+5(*3(3/;(47/-58(3/;(;-)5(*'( 7*43@( 9+543/558( -37( 3/;( 0/:,3*6*@4/5Z0,/5/( ;466( 724./( )*+2('+0+2/(5+::/55<

April 26 | The life cycle of an idea, from idea to market;

understand what it takes to encourage and embrace innovation!

June 28 | Techno-transactions offer new ways to bring buyers and sellers together; from QR codes to mobile phone apps, the way you connect is changing drastically!

August 23 | Joining forces; leverage is critical in this fast-changing world—partner for greater success and explore strategic partnership ideas!

October 25 | Risks, rules and regulations; find out how changes in technology, privacy issues, and on-going legislative changes impact your business and the risks you face!

!"#$%&$'($)*+'(%,'-%)($./&%+(/.$0)*$12&%(/&&$)3(/*&4$5/61/*&$6//-$7$8/$-%6/&$/'9:$;/'*$ -)$'..*/&&$<*)1=/6&$'(.$)<<)*-2(%-%/&$&</9%7$9$-)$9=)&/=;>:/=.$12&%(/&&/&4$?:/;$*/9/%8/$ %(&%+:-@$%(0)*6'-%)($'(.$/(9)2*'+/6/(-$'&$-:/;$'..*/&&$-:/%*$9)6<'(%/&A$9:'==/(+/&4

place it is. “If you don’t believe it, please let me spend a weekend with you and show you around town,” he says with an eagerness that suggests he means it.

Whether it’s the strides the CRVA has made under his direction or simply his character and inclusive spirit, Newman has the respect of his constituents and colleagues. “Serving on his board of directors for six years provided me a tremendous education as a leader for tourism, and I am fortunate to have learned from such a great mentor,” says Sally Ashworth, executive director of Visit Lake Norman.

When asked about Newman, Sid Smith, executive director of both the Charlotte Area Hotel Association and the North Carolina Business Leadership Network says, “You can reach him, and he always answers. No person or entity is too small. I don’t care what your stature or position in the community is, you always walk away with the sense that ‘He’s one of us.”

For one of the city’s busiest people who just offered to the community his services as a personal guide—you can’t argue with that. biz Amanda Pagliarini is a Charlotte-based freelance writer.

Charlotte Regional Visitors Authority (CRVA) 501 South College Street Charlotte, N.C. 28202 Phone: 704-339-6040 Principals: 13-member board of directors gives leadership and guidance to Chief Executive Officer Tim Newman; CRVA management staff reports directly to the board which in turn is accountable to the City of Charlotte and the mayor’s office Established: 2004 (combined Visit Charlotte with operation of Charlotte public facilities) Employees: Over 215 full-time Operating Budget: Exceeds $30 million annually Events: CRVA facilities host over 600 events attended by approximately 2 million residents and visitors Business: Municipal authority charged with ensuring that visitors and events coming to the area have a positive experience.

Responsibilities include destination marketing through Visit Charlotte and management of Charlotte’s public assembly facilities which include Bojangles’ Coliseum, Charlotte Convention Center, NASCAR Hall of Fame, Ovens Auditorium, and select services for Time Warner Cable Arena. www.crva.com www.charlottesgotalot.com

For times, locations and membership information visit www.business-success-institute.com or call Denise Altman at 704-315-9090

26

ap r i l 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

BCDD%-E53F5;%G125HE !"#$%&'%()%*""+%*(,-.))%/,.(01(')%23&4%1",% 25(,3")).6'%7,.8#.,%$.)9",0#$-%.:7.,#.$;.

NEXT MEETING B'*6/=$B)2(-*;$B=21 1;$%(8%-'-%)($)(=;

The Hood Hargett Breakfast Club

is a ‘category exclusive’ business development organization that develops and hosts some 36 events throughout the year for its members and guests. The goal of these events: to provide success-minded business owners with first-class venues to entertain clients and prospects.

7$(%8"",$ Youth Advocate and Author of The Other Wes Moore

May 13, 2011

4"@'?%-#').

Fox Business Analyst and Co-host of FNCs “Bulls and Bears”

Oct. 14, 2011

APR

%_ 2011

5,'J%K+=L#=?

Author of Socialnomics and Social Media and Technology Expert

Apr. 8, 2011

9$,,:%;'<.=,>("?

Owner Carolina Panthers

Sept. 9, 2011

75G!*85%257 858I5;CPI Security Compass Group Conrad Trosch & Kemmy, P.A.

8=))%5A$,(#=??

Hero of Black Hawk Down and the Battle of Mogadishu

Nov. 11, 2011

Griffin Brothers Companies Nexcom

“Prime-time is the best word that describes Hood Hargett Breakfast Club. It’s a networking and business development group that puts you at the right place, at the right time, every time. Run by quality leadership, the members of the group are all top quality people and businesses.” ~Daryl Larner, Larner’s Office Furniture Outlet

“The Hood Hargett Breakfast Club is the premier business development group in Charlotte. They helped me launch my business when I came to Charlotte and continue to help me grow it through access to and relationships with top Charlotte business leaders.” ~ Lou Amico, L.A. Management Company, LLC

“Hood Hargett Breakfast Club has been instrumental in developing new business relationships and strengthening existing ones. It is respected among business leaders and serves as a valuable resource for philanthropic initiatives throughout the community.” ~ Gary LaBrosse, LaBrosse/Byerley Group, Merrill Lynch

Call For More Information Call Jenn Snyder at 704-602-9529 • jenn@hoodhargett.com !www.hoodhargettbreakfastclub.com

!"#$%"&$'%( ((((&)*(+*"(,-(((( ((((((((.*/)',0,%1

Wikipedia: A waypoint is a reference point in physical space used for purposes of navigation. Waypoints have only become widespread for navigational use by the layman since the development of advanced navigational systems, such as the Global Positioning System (GPS) and certain other types of radio navigation. Waypoints located on the surface of the Earth are usually defined in two dimensions (e.g., longitude and latitude); those used in the Earthâ&#x20AC;&#x2122;s atmosphere or in outer space are defined in at least three dimensions (four if time is one of the coordinates, as it might be for some waypoints outside the Earth).

28

ap r i l 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

by carol gifford

%

he cloud is the latest buzzword in computer technology. It refers to a version of utility computing: databases, operating systems, memory, microprocessors and the Internet, all rolled up in one, a kind of “virtual” server over the Internet, and many believe it is the wave of the future.

Small business owners might think this new technology is as cloudy to them as most IT concepts.

That’s where Waypoint Solutions Group steps in. It offers companies a complete array of IT expertise—including cloud services—and understanding and support, so business owners and employees can concentrate on running their businesses.

“We are the IT department for many small and medium-sized companies,” says Dan Wilson, president and CEO of Waypoint Solutions Group. “We offer an entire spectrum of services from day-to-day desktop support and email hosting to higher end security and managed services with maintenance and monitoring.”

“Technology’s everywhere and in everything,” says Tony Shannon, vice president at Waypoint Solutions Group. “We help businesses navigate it—whether it’s questions on what kind of new mobile phones to how to purchase or use them, how to set up new computers and A/V TVs for video conferencing, or information on Wi-Fi capabilities.”

Determining Technology Personality Waypoint works with clients to help them view technology as a way to grow their business. Wilson and Shannon spend time working with clients to learn about their technology personality.

“I must have answered at least 200 questions on Ipads alone in December,” says Wilson, who added that he and his staff purchase and use new products in the field so they can answer questions and show clients how to work with different devices. “We encourage our clients to contact us with any technology questions they have. We provide tech tips on our Facebook page and on Twitter.”

“Each person and company has a technology personality,” explains Shannon. “It’s not a label; it has more to do with the way they process information, confront and adopt technology. Some people are early adopters and others take more time to figure it out before they want to use it.”

No one wants to admit they don’t understand how a new technology works or how it could be used, so Shannon says, “We give them information in small bits so they can understand it and become more comfortable with it.”

Wilson says Waypoint finds out about a client and their technology needs and usage by visiting by asking questions about the business.

“It’s all about being a good communicator,” says Wilson. “When we’re talking to clients, we want to see the light bulb go off. If it doesn’t, we need to $ restructure our discussion until there’s a deeper level of understanding.”

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

[bizprofile]

Waypoint Solutions Group is a Beacon of IT Services and Support

(l to r) Dan Wilson President and CEO Tony Shannon Vice President Waypoint Solutions Group, LLC

ap r i l 2 0 1 1

29

The Ben Craig Center, a small business incubator that works in partnership with UNC Charlotte, works with Waypoint to manage its workstations, server and backup server, and access issues, says Robert Aldrich, controller.

“We’ve also used Waypoint to help us with our IT budget, to recommend what products to purchase, help us find a good deal, and then service our systems,” says Aldrich, whose company uses IT help desk assistance and its computer system monitoring to help guarantee that there are no “hacker” issues or operational hiccups.

“It’s more of an assurance when you don’t hear from them, because that’s a good thing,” Aldrich says. “We may interact with them about twice a month and Waypoint provides a good value for us; they’ve certainly met our expectations.”

Expanding Need for IT Services The demand for IT help is huge, says Wilson. The recession and the slowdown in the economy have forced small and mediumsized businesses to find new ways to save money. Small business owners recognize that they need sophisticated technology to win new customers but they cannot afford to hire their own IT team, he says.

At the same time, Wilson says, small business owners cannot afford to lose customers because a technology problem has shut them down so they are “thinking smarter about the ways they manage their business and time.

“In the last three years our company has grown 78 percent year over year,” says Wilson.

“In the first quarter of 2011, our revenues were up 110 percent from last year.”

Waypoint Solutions Group provides service to companies of all sizes. About 70 percent of its clients are small businesses with employee size ranging from less than five to 75, says Wilson.

Waypoint services 150-plus customers in 11 states and six different countries.

Customers can choose from different service level agreements and/or design a customized solution, says Wilson.

Waypoint’s team of 22 engineers supports performance, capacity, security, availability and management of IT systems. It has a 24/7 Network Operations Center (NOC) to provide continuous service, including protection against “intrusion,” or spam, viruses, spyware or filters.

It partners with Microsoft, Calyptix Security, HP, and GTI, and can offer certified services and purchase discounts to its clients.

“Most small businesses evolve in their need for IT support,” explains Wilson. “In the

30

ap r i l 2 0 1 1

(l to r) Dan Wilson President and CEO Tony Shannon Vice President Waypoint Solutions Group, LLC

“It’s all about being a good communicator. When we’re talking to clients, we want to see the light bulb go off.

If it doesn’t, we need to restructure our discussion until there’s a deeper level of understanding.” ~Dan Wilson President and CEO beginning, one employee is the technology expert and answers all the questions and helps clear up computer problems. Then, as the company grows, this ‘expert’ begins to spend half his time taking care of technology and neglecting his ‘real’ job.”

Waypoint also supplements a company’s IT support team, says Wilson, providing expertise in infrastructure development and maintenance, backup and disaster recovery, network security, and 24/7 monitoring, and processes to help the company better plan its future technology needs.

Evolving IT to Client Needs “We’re big enough to have an in-house person do our IT work,” says Mike Griffin, a partner in Griffin Brothers, a company with 225 employees and 100 computers and servers for its 15 locations. “But I’m not sure that one in-house person could take care of servicing our tech needs at different locations and provide the expertise in standardizing our equipment and systems and the monitoring, preventative maintenance and planning

involved in it. Waypoint provides more resources and expertise.”

Griffin Brothers uses Waypoint for all its IT needs. Griffin says Waypoint supplies it computer structure and networking needs, including a T-1 Internet backbone connection, provides the network links for all its locations, operates its Internet-based VOIP phone system, and provides technology assistance, as needed. He says when the company decided to make changes in its PDAs or smart phones, “We went straight to Waypoint to help us decide the best options.”

“We’re a growth company,” says Griffin, whose business includes a diverse group of holdings including tire and automotive centers, a golf course, a real estate development company, and a construction and demolition debris management company, including recycling facilities. “We’re always building and we depend on Waypoint to help us with our technology installs and work with the permitting processes to get it all done.

“Over the winter we opened a new recycling center in Harrisburg,” says Griffin. “Waypoint was there helping us throughout the process, overseeing the installations early morning and late at night in sub-freezing temperatures.

“IT is the backbone of our business. We’re extremely dependent on the Internet and technology to provide customer service,” says Griffin. “Our CFO is pretty demanding and we’ve found that Waypoint keeps things going well and allows us to keep a laser focus on our core businesses.”

Choosing the Right IT Provider “We were looking for someone who could take us from early inception to way in the future,” says Gary Hummel, executive vice

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

president of the US Airline Pilots Association (USAPA), an organization based in Charlotte that represents over 5,000 US Airways pilots based across the country.

The union established its headquarters in Charlotte in 2008 and worked with Waypoint to develop its technology capability in its 8,000-square-foot office for five full-time employees with remote office space for members to work.

“Waypoint has the expertise to coach you, give you standards and technology options relative to your budget,” explains Hummel.

“They support all our IT needs and solutions for our boardroom and conference rooms and necessary capabilities. They set up and service our server, computer workstations and laptops, website and email capabilities.”

SPECIALISTS IN VOICE NETWORKS FOR 32 YEARS.

“Waypoint has the expertise to coach you, give you standards and technology options relative to your budget. They support all our IT needs and solutions for our boardroom and conference rooms and necessary capabilities. They set up and service our server, computer workstations and laptops, website and email capabilities.” !!"#$%&!' ($")'

~Gary Hummel Client

Hummel says the need to have reliable communication around the clock with its pilots is imperative, particularly in a situation such as the US Airways plane crash on the Hudson.

During that incident, pilots across the country needed to be informed about breaking news of the situation, says Hummel.

USAPA is in the process of moving its headquarters to a new office and Waypoint is overseeing that transition.

“Waypoint is integral in our office move,” $ says Hummel. “They’ve worked with our

!!*&++#!, +-'.'

"Before

After"

No matter what type of foundation you have, Dry-Pro Basement Systems can develop permanent solutions to keep your home dry.

Isn’t your family worth the peace of mind?

!!/+-'.0#)!"+1.#+& !!2$')/)1.!% $.)#(#++*-13 !!*+014$.-+1!#)($-#

Serving North Carolina for Basement Waterproofing, Crawl Space & Foundation Repair

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

'56789:7!;!!"##!)<=>?;=7

1-866-437-9776 @@@A$%&'%()&)*+,)A5B? ap r i l 2 0 1 1

31

architect and interior designer to help with infrastructure needs such as Wi-Fi access, VOIP telephone service and A/V hookups. I rely on them to provide us with cost-effective solutions today and set us up for the future.

“I know how to fly an airplane,” says Hummel, an executive who transitioned to his organization for a short-term leadership position, and will then return to his job as a pilot. “If it’s anything to do with hardware, software or technology needs, I rely on Waypoint to service us.”

Resolving IT Issues According to Shannon, some customers reach out because they are in pain, angry or frustrated because of their technology problems,” says Shannon, and they need immediate assistance to deal with a technology breakdown.

Suite 1000 President Laurie Leonard approached Waypoint after some disastrous problems.

“We had four IT provider failures in a row before we found Waypoint,” says Leonard, who runs a small business which provides telephone answering and administrative

“We’re passionate about technology—this is who we are and how we do it. To us, it’s not a job, it’s our lifestyle. Dan and I have been technology freaks our whole lives.” ~Tony Shannon Vice President services to customers across the country with 20 employees.

“Before we worked with Waypoint, it used to take an act of Congress to get someone to come to our office, and one of my stations was down the whole time I was waiting,” says Leonard.

&3(2/:/30()/-258(9-3A5(-37(9*3743@(:*>1-34/5(,-./(9/@+3( 0*( 43:2/-5/( 0,/( `(3-3:4-6( 2/1*2043@( 2/a+42/>/305( *'( 0,/42( :+50*>/25( 2/a+4243@( 0,/>( 0*( 12*.47/( 2/.4/;/7( *2( -+740/7( `(3-3:4-6( 50-0/>/305<(D,/( 9+27/3( *'( :*>16)43@( ;40,( 0,/5/( 3/;( `(3-3:4-6( 2/1*2043@( 2/a+42/>/305( :-3( 9/( 4304>47-043@( -37( *./2;,/6>43@<( N+2( `(2>( ,-5( 7/./6*1/7( .-24*+5( 12*:/7+2/5( -37( 12*:/55/5( 0*( ,/61( *+2( :64/305( >//0( 0,/42( `(3-3:4-6(2/1*2043@(*964@-04*35(;,46/(12*.4743@(>/-343@'+6( 9+543/55(43'*2>-04*3(-37(A//143@(9+543/55(430/22+104*3(0*( -(>434>+><(2(33%8.<%=())%=#33.,<%)"%+#';&''%5"9%>($#.3<% ?()3#11%@%2"87($A%;($%5.37%A"&B

trust+strategy+integrity+planning+insight+experience

it all adds up!

We’re not your typical CPA firm. Instead, we go beyond traditional accounting services, adding valuable insight and guidance to your growth process.

32

ap r i l 2 0 1 1

!"#$%&'()"*&$++( ,(-./0"#1 301 S. McDowell St., Ste. 502, Charlotte, NC 28204 704.371.5000 www.danielratliff.com

“Now, if I call Waypoint, they open a ticket about the problem and I get continuous updates on how they are correcting it. Waypoint is our outsourced IT department.”

Leonard talks to Waypoint about once a month and says it’s not more frequent, “because they’ve already dealt with any concerns.”

She uses Waypoint to service her computer workstations, monitor the system and provide assistance on performance issues and application updates.

Before working with Waypoint, Leonard took on the job of figuring out her company’s IT requirements, spending much time reviewed options and purchases.

“I think small business owners sometimes spend a lot of time on things that they don’t understand as if that time doesn’t have any value or opportunity costs,” says Leonard. “Having an efficient, stable and dependable IT system is important—and it’s effective and cost-effective.”

Wilson estimates about 80 percent of his clients come from referrals or word of mouth marketing. “We have one client who is the result of referrals to the 6th power,” says Wilson, adding that Waypoint clients feel comfortable reaching out to the company whenever they have technology questions because the company makes them feel comfortable asking and responds quickly and accurately.

“We’re passionate about technology—this is who we are and how we do it. To us, it’s not a job, it’s our lifestyle,” says Shannon. “Dan and I have been technology freaks our whole lives.” biz Carol Gifford is a Charlotte-based freelance writer.

Waypoint Solutions Group, LLC Charlotte Headquarters: 9305 Monroe Road, Suite L Charlotte, N.C. 28270 Phone: 704-246-1717 Principals: Dan Wilson, President and CEO; Tony Shannon,Vice President Branch Offices: Greenville, S.C.; Freehold, N.J., Miami, Fla. Employees: 22 Established: 2002 Business: Provider of flat rate IT infrastructure design, implementation and support for businesses of all sizes. It offers 24/7customizable IT managed services and project management for customers in the transportation, military, medical, legal, accounting and retail markets. www.waypointsg.com

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

&'() !"#$ !"#$%&'(

ad design design packages packages ad from $250 $250 || logos logos from promotional brochures brochures promotional and mailers mailers || press press and releases and and corporate corporate releases communications communications

your

Get out out in in front front â&#x20AC;&#x201D; â&#x20AC;&#x201D; Get Make things things happen happen Make

)'*!%+*,'-./ Featuring MessageEnvyâ&#x201E;˘ MessageEnvyâ&#x201E;˘ Featuring The best way to get get your your The best way to message across across media media message

M$('N?%O;*P%-)+>'" M$('N?%O;*P%-)+>'"

b!%%(C-2>/6(KF/:<(L-2A(R2<8(P0/<(##c b!%%(C-2>/6(KF/:<(L-2A(R2<8(P0/<(##c C,-26*00/8(BC(^_^^$?#!#% C,-26*00/8(BC(^_^^$?#!#% b%"?$b$?c_c%(F#%c b%"?$b$?c_c%(F#%c ;;;<7/54@3'2*@50+74*<:*> ;;;<7/54@3'2*@50+74*<:*>

!"#$%&&!"#$ !"#$%&'(&) "#$%&'(&) ) !"#$%&'(&) "#$%&'(&) )

â&#x201E;˘ â&#x201E;˘

Print

Mobile

Engage your market with automated texting.

5DWS )*$,03: SN MNV SN RDD ENQ XNTQRDKE 4S@MC@QC Q@SDR @OOKX

Empowering Your Visual Marketing Print2Mobile is a service of The Hickory Printing Solutions a leading privately held print marketing provider. www.hickoryprinting.com | 1-800-HICKORY 725 Reese Dr SW | Conover, NC 28613

ve ccaattaaly lysstt fo forr ccre reaattiive ve ccoonnsscciioouussnneessss ccoonnssttrruuccttiive

j a nuap a rr yi l 22001111

3333

GK./2)('->46)(-37(/./2)( 540+-04*3(45(74''/2/30<(D,/2/(45( 3*(d0)14:-6I('->46)<(Y+0(0,/)( -66(,-./(3//75(-37(0,/)(-2/(-66( 5*(-112/:4-04./(*'(;,-0(;/(7*( '*2(0,/><(D,-0I5(;,-0(A//15( +5(@*43@e(>-A43@(-(74''/2/3:/( -37(A3*;43@(0,-0(;/(,/61/7( 0*(,*3*2(-(64'/(-37(-55450(0,/( '->46)(0,2*+@,(-(74'`:+60(04>/<H( ~Ken Poe President and General Manager

Kenneth W. Poe President and General Manager Hankins & Whittington Funeral Service

34

ap r i l 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

by zenda douglas

[bizprofile]

!"#"$%&'()*

Memories !"#$%#&'(')!%**%#+*,#'-.#/0"1' &/02%3/'!"&'&/02/4'3!"01,**/' -"5%1%/&'-,0',2/0'67'8/"0&

ociety has changed. When Ken Poe first got into the funeral business and a family walked through the door of the funeral home, he knew, 90 percent of the time, there was going to be a traditional funeral—a burial two to three days later and a visitation the night before.

Today, options are more plentiful and schedules are less rigid as families make arrangements for their final tribute to a loved one.

“Now, about 50 percent of families opt for burial, with the other half choosing cremation,” says Poe. “The funeral/memorial service might be at a church, the funeral home or graveside—and held at any time of day or evening, if they have one at all. Visitation gatherings may be small intimate groups of family or larger groups of mourners and supporters. Some funeral homes, like ours, can even provide catering. Memorial services may be held weeks after the death. And technology has made it possible for those who cannot attend in person to participate via webcasting.”

Poe has spent the past 35 years—25 of them as president and general manager of Hankins & Whittington Funeral Service—keeping up with cultural, business and lifestyle changes that impact the ways in which we, as a society, honor, memorialize and bury our deceased; all while caring for bereaved families. The one thing that hasn’t change is Poe’s passion for caring for people at the most difficult time in their lives.

And this is a passion shared by his hand-selected staff.

A Natural Fit Currently in its 65th year, Hankins & Whittington, one of the largest funeral home firms in Charlotte, is located on East Boulevard in Charlotte’s historic Dilworth neighborhood. The building which has housed the firm since 1964 was built in the late 1920s and purchased from St. Luke’s Lutheran Church. The former church was renovated and adapted for use as a funeral home, maintaining the 175-seat chapel with beautiful stained glass windows, vaulted ceiling and brick walls, and lobby fireplace. $

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

ap r i l 2 0 1 1

35

Founders Irvin W. (Hank) Hankins and James B. Whittington served together during World War II and returned home to found Hankins & Whittington Funeral Directors in 1946. The enterprise also included an ambulance service until the late 1960s. Both Hankins and Whittington remained involved with the funeral home until their deaths; the firm is now owned by national funeral home and cemetery operator Foundation Partners Group, LLC. After Hankins passed away, Whittington wanted to find a qualified Charlotte native to run the business. Ken Poe had grown up about a mile away from the funeral home in Charlotte and was working in the eastern part of the state in Farmville for his father-in-law who was the funeral director there. “I was already 10 years in the business,” says Poe, who jumped at the opportunity to return to Charlotte.

When Poe first started working with his father-in-law at age 24, he didn’t view it as entering the funeral business. His wife’s father also had a furniture store, gift shop, tobacco farms, export business and rental properties, so Poe learned a great deal about running small businesses. But over time, he developed a love for the funeral business.

“It was kind of a natural fit to be in this business—it suits my personality,” says Poe, who describes himself as soft-hearted and someone who cares about how people are feeling. “Both of my grandfathers were Baptist ministers. We grew up in the church and with the concept of caring for people and doing for others.”

Because he already had a college degree (Wofford College), Poe did not have to go to mortuary science school. All that was required at the time was a college degree, a year’s apprenticeship and passing the state exam. Upon completion of these, Poe received a funeral directing license. This license allows an individual to direct the funeral process and business but does not include embalming. Poe went on to earn his M.B.A. from East Carolina University.

Today those seeking to become licensed in the funeral business must go through a course curriculum at a community college or online.

Courses include biology, anatomy, psychology, funeral business practice and economics, and result in an Associates Degree. A year’s apprenticeship is still required.

In addition to the funeral directing license, two other licenses are available: a funeral service license which allows one to do both funeral directing and embalming; and an embalmers license which only allows for embalming. “The people I employ have a funeral service license,” says Poe. There are five funeral directors, one

36

ap r i l 2 0 1 1

GN+2(2*6/(45(0*(6450/3(-37(0*(>-A/(-22-3@/>/305(;40,43(-(04>/?

'2->/(-37(5:,/7+6/(0,-0(>-A/5(5/35/<(J/(-2/(-65*(,4@,6)(5/35404./( 0*(0,/(`3-3:4-6(:*3:/235(*'(0,/('->46)<(X+3/2-6(5/2.4:/(43(C,-26*00/( 45(-(,4@,6)(:*>1/0404./(9+543/55(-37(;/(,-./(0*(9/(0,/(>*50( :*>1-554*3-0/8(:2/-04./8()/0(.-6+/?724./3(12*.47/2(1*55496/<H( ~Ken Poe President and General Manager pre-need director, three administrators and one utility person on staff.

A Celebration of Life Funeral home services are most often focused upon a death not completely unexpected and usually involving an older person. “While you hear about the tragic deaths such as a police officer or young person, those are actually rare and not necessarily what we work with day-to-day,” says Poe. “Most deaths are sad but not tragic.”

The efforts of the funeral home personnel are geared toward finding a comfort level for the families so they can celebrate the life of their loved one in a proper way which gives him or her honor and respect, according to Poe. “Our role is to listen and to make arrangements within a time-frame and schedule that makes sense. We are also highly sensitive to the financial concerns of the family. Funeral service in Charlotte is a highly competitive business and we have to be the most compassionate, creative, yet value-driven provider possible,” says Poe. Many people still choose to have a funeral service two to three days after the death. This is primarily driven by custom as well as newspaper deadlines for obituary notices.

Contrary to older traditions of midmorning and afternoon services., Hankins & Whittington encourages

families to schedule services at the time that will work best for those attending.

The biggest change that Poe has witnessed over his years in the business has been the increase in demand for cremation. “We’ve gone from doing around 20 percent to, as of this year, nearly 50 percent of our business in cremation services.” The attitude that having the body present for services is not as prevalent as it used to be. Also, families are more spread out geographically so it’s harder to get people together ,and many people think of cremation as being easier and allowing a service to be scheduled at a more convenient time.

In North Carolina, embalming is not required for burial. Funeral homes must ask for permission to embalm to temporarily preserve the body, a procedure that was developed during the Civil War for the bodies of soldiers being returned.

Today, more families are declining the request to embalm; a trend that goes along with fewer people having open-casket services.

Lots of people are choosing to bury the cremated remains of a loved one in a plot previously bought for a traditional burial. Some choose church columbariums and others haven’t given much thought to a final disposition and truly don’t know what to do. “They take them home to decide at a later date,” says Poe. “We live in such a transient society; some are $

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

LOCATION-BASED MARKETING IS BACK! Satellite Image and Google Places

S**@6/(L6-:/5

3D Building Image and Geo Plug-in

%

S**@6/(K-20,(

ADD f

S**@6/(K-20,(

A THIRD DIMENSION

With a whole new avenue for bringing customers to your front door!

Claim your business site with a 3D model on Google Earth!

Make Your Reservation at Hampton Inn & Suites SouthPark at Phillips Place Today!

TM

& Search

!Plan Your Stay

Hampton Inn Rates

"hampton inn & suites !Company/Business Listing !Information !Directions !Products/Brochures !Help/Instructions !Rates/Pricing !Coupons/Deals !Schedule of Events !Reviews !Press

"

"Plan Each Day

&

!Learn

!Don't Miss...

!Visit

!Site Help

!Calender !Events !Attractions !Recommendations

Click on surrounding area locations on the above map to visit the desired location.

"area !Attractions !Hotels !Restaurants !Shopping !Golf Courses !School Districts !Zoning !Transit Lines !Public Parking !Weather

$

"virtual !Photos !Videos !Audio !360 Spin Tour

"

$

!website

" Easily plugged into your existing website as well as pushed to potential customers and prospects via QR code to reach them anywhere any time. " Geo mapping features available through the Google Earth platform. One portal through which to access all of the information about your business. " Improves your Google search ranking.

$

SouthPark Golf Courses

"directions HAMPTON INN & SUITES SOUTHPARK

PHOTOS

VIDEO

360 SPIN TOUR

#Turn by Turn Maps

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

Geo Plug-in Accessible by QR Code

!"89+37:+./0+123.456"#$%&$'#(" )*+,"-+(.$#(("/,#(#$'#"&$0"/,*1.0#(")*+" *//*,2+$.2.#("3*,"0.,#'2"4&,5#2.$67 " Bring together your building in 3D, a fly-in, your images, your online videos, your 360 spin tours, your product brochures, your existing web presence, special offers and coupons, all of the digital materials your company has available, all in one place—a geo plug-in.

"

"search area

& Search

!blog Find the Hampton Inn & Suites on your favorite site.......

CD$")2-:E'*F$?*'.%-%)($ )0$GH9/==/(9/I

"area map

Call us today and let us show you how a

geo plug-in can enhance your business presence.

TM

./0+123.4567

w w w. 3 d u s a . c o m

7300 Charlotte Executive Park Dr., Ste. 115 | Charlotte, NC 28226-1310 | 704-676-5850 x102

GQ37/34-96)8(0,/('+3/2-6( ,*>/(,-376/5(0,/(3//75(0,-0( -245/(+1*3(-(7/-0,<(Y+0(>-3)( *'(0,/42(5/2.4:/5(-2/(430/37/7( '*2(0,/(64.43@<(J/(5//A(0*( ,/61(0,/('->46)(@*(-;-)('2*>( 0,45(/F1/24/3:/(A3*;43@(0,-0( 0,/)(,-./(02+6)(,*3*2/7(0,/42( 6*./7(*3/I5(>/>*2)<H(( ~Ken Poe President and General Manager reluctant to bury in the area where they live since they will likely be leaving that place.”

Hankins & Whittington offers numerous styles of urns in which to place cremation remains; some fashioned as clocks, picture frames, jewelry, custom art objects or other decorative containers.

“I have a deep-seated feeling that everyone deceased deserves to be in a permanent place with their name on it, whether it’s a plaque on a wall in a memorial garden or in a cemetery or columbarium,” says Poe. “We need to leave behind for future generations something that says we were here.”

Many people love to visit beautiful old cemeteries and examine interesting monuments, according to Poe who laments that not a lot of them are being erected anymore. “I wonder if future generations will say, ‘What happened to the people who died in 2011?’”

38

ap r i l 2 0 1 1

Making a Difference Costs are a necessary consideration when making arrangements to pay last respects. Burials can run from $2,000 upwards to $15,000 or $20,000, with most of the variance hinging on the choice of casket. Beyond the professional services of the funeral home, there are costs associated with cemetery charges, flowers, limousines, catering and newspaper notices. The average family will spend between $8,000 and $10,000 for burial arrangements. Costs for cremation usually run between $1,700 and $4,000 dollars.

Around 60 percent of the funeral home’s patronage comes from legacy business. Forty percent is generated through advertising and church and heath care referrals. Hankins & Whittington expects to have revenues between $2 million and $3 million this year.

“Undeniably, the funeral home handles the needs that arise upon a death. But many of their services are intended for the living. We seek to help the family go away from this experience knowing that they have truly honored their loved one’s memory,” says Poe. The unexpected does happen, according to Poe, who recounts situations in which a pallbearer backed out at the last minute or unplanned speakers stood up and ‘stole the minister’s thunder.’ Dealing with modern-day families where there are second and third marriages may necessitate negotiations between members or seating in separate rooms. Occasionally, a girlfriend will appear that no one knew about. Or, the limousine carrying the family may have to pull into the Arby’s drive-through to alleviate the burden of hunger. Because life is sometimes complicated,

funeral home services become diverse.

Like churches and other faith-based organizations, funeral homes are part of the community fabric. Part of the important work that Hankins & Whittington does in the community is providing for indigent burials. The firm works closely with Catholic Social Services to deliver services to impoverished people.

“Even if they do not qualify for CSS assistance, we’re not going to turn anybody away,” says Poe. Members of the Hankins & Whittington staff are also involved in civic clubs, such as Rotary and Knights of Columbus, and area churches. The firm supports the American Cancer Society, hospice organizations, Little League and conducts an annual holiday memorial service.

Technology is being employed in the funeral business to expand inclusiveness and ultimately, to pay tribute. Video tributes, featuring photos and scenes of the departed’s life have become very popular. “They give people a chance to think about the person’s whole life rather than just their death,” says Poe. In reference to his own mother, Poe shares, “When she passes away, I don’t want to remember just the last few years. I want to remember when I was in high school and would sit on a stool in the kitchen and talk to her for hours while she fixed dinner—the good parts. We’re here to pay tribute to the good times and good memories.”

“The thing is, every family and every situation is different,” says Poe. “There is no ‘typical’ family.

But they all have needs and they are all so appreciative of what we do for them. That’s what keeps us going; making a difference and knowing that we helped to honor a life and assist the family through a difficult time.” biz Zenda Douglas is a Charlotte-based freelance writer.

Hankins & Whittington Funeral Service 1111 East Boulevard Charlotte, N.C. 28203 Phone: 704-333-6116 Owned by: Foundation Partners Group, LLC Principal: Kenneth W. Poe, President and General Manager Established: 1946 (Irvin W. Hankins and James B. Whittington) Employees: 10 Revenue: $2 to 3 million Business: Full-service funeral home providing traditional burial and cremation services along with facilitation of ceremonial activities. www.hankinsandwhittington.com

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

!

Instant Marketing with QR Codes

QR Codes (Quick Response Codes, QRCs) are a relatively new, 2-dimensional form of barcodes. Already very popular in Europe and Japan, businesses and consumers throughout the U.S. are discovering hundreds of exciting uses for this flexible, convenient (and free) information connection.

How QR Codes Work… QR Codes can be displayed almost anywhere. They can be found on printed literature, business cards, highway billboards, product packaging, advertising banners and more. They can be inserted into digital signage and even screen printed onto apparel. QR Codes include embedded text information, web page links and simple programming commands that directly connect customers to timely information about you, your business, and your products or services.

Using a mobile “smart phone,” equipped with a built-in camera, customers simply snap a digital photo of the code symbol.

Then a free, downloadable QRC “reader” interprets the code and initiates one or more actions, such as accessing a Web page or online map using the phone’s Web browser, displaying onscreen text information, opening an e-mail delivery (mailto) form, sending a (SMS) text message, dialing a phone call or other actions.

What QR Codes Can Do for Your Business… QR Codes can be your on-demand sales and customer service representatives. Display text messages, exchange vCard information, initiate a phone call, link to prerecorded audio or video, collect customer “loyalty points,” facilitate online purchases like e-tickets, and easily perform other customer interactions. You can specify a limited date range to convey your content or provide ongoing access to your information. And, each customer connection can be tracked by your organization.

Further, you can update and personalize information provided at the point of the exchange. Messages can be updated manually or programmed to change automatically based on the time of day, day of week, weather conditions, etc. Many QRC readers can utilize the mobile phone’s built-in GPS locator and customize information based on the customer’s current proximity. Content can be changed by the business any time to take advantage of current weather or business conditions.

Architectural Photography Frankie’s Fun Park, Raleigh, NC Edifice Inc., General Contractor

• Corporate • Advertising • Industrial • Editorial

• Web Images • Architectural Interiors & Exteriors • Professional Portraits

wayne@wmphoto.biz www.wmphoto.biz

704.545.7001

THE EMPLOYERS ASSOCIATION Trusted HR Advice, Tools & Training

!Benchmarking for Success Are you competitive?

Are your employees engaged?

Will they stay as business improves?

Tools to compare on a local and national basis. # Wage & Salary Surveys #$Employee Engagement Surveys #$Benefits Survey #$Policies & Practices Survey #$Focus Groups

For more information on The Employers Association please visit us at www.employersassoc.com or call 704-522-8011.

Your Trusted HR Resource Since 1958 with 865 Local Member Companies 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

ap r i l 2 0 1 1

39

Ameritech Die & Mold, Inc.’s modern 28,000-squarefeet facility in Mooresville is fully climate controlled with an overhead crane system in each bay (maximum of 10 ton).

Steve Rotman President Ameritech Die & Mold, Inc.

AMERITECH DIE & MOLD, INC. is a designer and builder of molds for the plastics industry.

Medium to large, single or multi-cavity, injection, compression or blow molds are their specialty.

Ameritech offers complete CAD-CAM capabilities, utilizing the latest 3D systems that are directly linked to CNC machining centers and high speed mill. They also incorporate engineering changes to existing molds and perform mold repairs.

40

ap r i l 2 0 1 1

S

teve Rotman has lived the American Dream.

Growing up in Grand Rapids, Michigan, he always knew he wanted to own his own company. He wasn’t particularly interested in going to college; he liked working with his hands.

His father had been a mold maker before moving on to management, so Rotman did a four-year apprenticeship with a local die and engineering firm directly after finishing high school. It seemed most owners of tool and die shops had started as mold makers and he perceived this was the path to ownership.

Along the way, he’d gotten to know another mold maker, Ronald Wozny, a potential partner with experience. Wozny had worked in Greensboro, North Carolina, and knew there was limited competition in the South in the mold making industry. Together, the two mold makers and Wozny’s brother Richard decided to leave Michigan to pursue their opportunities in Mooresville, N.C. Rotman sold some rental properties he had acquired to raise capital, and, at age 29, he was on his way.

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

by casey jacobus

[bizprofile]

the mold 9:-/"'-3;),<<6"-&)';-) ';-)6,'-&')'-3;$(6(%4)'() :--'):,/=-')0-:,$0&

“I never looked back,” says Rotman. “This was my best chance for success. I had an opportunity to go as far as I wanted in my career path.”

Destined for success Upon arrival in Mooresville the partners leased a 6,000-square-foot building. They put up a sign the first day staking their claim in the small business venture, Ameritech Die & Mold, Inc., and they lived like gypsies for several months in a camper inside the building while they got the business up and running.

“It was an adventure,” remembers Rotman.

“I’d never been to Mooresville before. We

couldn’t all afford to come down to check it out, so my partner Ron had been our scout.”

Ameritech began to specialize in complex 3D parts, mainly for the automotive industry. In fairly short order, the company gained a reputation for on-time delivery of molds that met customers’ requirements 100 percent of the time.

“These are Class A parts that cannot have flash or trimming,” Rotman explains. “We have excellent design capabilities with a propensity to perform better than any other mold shop.”

A couple of years later in 1987, they purchased a 3.3 acre site in Lakeside Park and constructed their own building of 15,600 square feet. Then, in

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

1996, they expanded their facility to 55,000 square feet, occupying 26,500 square feet of the building themselves and leasing out the other portion to an engineering firm for the electrical power industry.

The partnership lasted for 16 years, before Rotman bought out the Wonzy brothers in 2001.

At the time Rotman acquired sole control of the company, the China explosion was having its first impact on the industry. Between 1998 and 2003, the United States lost 11 percent of its manufacturing jobs to overseas companies.

“At the time, no one had any idea how big the China explosion was,” Rotman recalls, “but it $ began a new era for Ameritech.”

ap r i l 2 0 1 1

41

Ameritech was able to transition from being a “mold maker” to a mold manufacturer without losing any of the quality and innovation that had made its reputation. Rotman says he “began to understand the role that design should play in a successful mold making company.” He added high speed equipment to increase productivity and increased engineering staff to play a bigger role in the design process.

“Successful companies are all about creating solutions,” says Rotman. “We were creating strong relationships with good customers. We were learning the customer’s business and becoming an asset to that business.”

In 2004, Rotman and his plant manager were presented with the opportunity to buy out an existing mold shop in Ormond Beach, Florida, which they renamed Ameritech Die & Mold South, Inc. That company turned out to be a perfect fit with Ameritech.

“They are a great compliment to the parent company,” explains Rotman. “The future has to be to develop more products for multiple customers to maintain a similar volume of business.”

Competitive through technology Ameritech specializes in building and repairing large, complex molds, most commonly for the automotive and appliance industry. Its niche is creating molds for airbag covers for various auto companies, as well as engineering parts for home appliances.

“Anything plastic has to have a mold,” explains Rotman.

These molds—as much works of art as they are precision tooling—use choreographed movement of accurately machined lifters and slides to create the various undercuts and slots those plastic parts require.

Very soon after opening in 1985, Ameritech acquired its first CNC (Computer Numerical Control) machine—an Enshu VMC (Vertical Machining Center) that is still used today. (CNC has touched almost every form of manufacturing process in one way or another. CNC machines typically replace (or work in conjunction with) some existing manufacturing process/es.)

This purchase laid the foundation for the company’s philosophy of applying the latest machining technologies and automation to provide customers with the highest quality molds with lead times to meet today’s market demands.

It uses extensive robotics and Erowa palletized tooling to achieve superior accuracy, as well as maximize unattended machining.

Ameritech’s machinists are also CAM programmers. By combining these tasks, the employees have an inherent sense of process ownership and

42

ap r i l 2 0 1 1

“Successful companies are all about creating solutions. We were creating strong relationships with good customers. We were learning the customer’s business and becoming an asset to that business.” ~Steve Rotman President adherence to quality. With each new job, the shop involves machinists early in the design phase so that they can offer input as to how best to design the mold to facilitate the machine work. By the time the job gets to the floor, the machinists have familiarized themselves with the mold design and can start programming and machining straightaway.

2006, Henry Moser, president of the Illinois-based Agie Charmilles Corporation, discussed how the average American is all but oblivious to the manufacturing world. He noted that Americans know products come from somewhere, but aren’t exactly sure where or how they are made.

In addition to the general ignorance of American high school students about possible jobs available in the manufacturing industry, educators themselves often misunderstand the level of competency required for such skilled positions.

“We’ve had to fight a generally negative impression of manufacturing as a career path,” says Rotman. “Finding a skilled, trained work force has always been difficult, but it has become increasingly so in recent years.”

In 1996, Ameritech joined a consortium of manufacturing businesses in a program called Apprenticeship 2000, which allows apprentices to work for their sponsor company while earning a

!"#$%&%'(&)*"'+,(

Finding a work force One of Ameritech’s biggest challenges has been finding qualified, interested employees. This is a problem shared with many manufacturing companies across the country. At the American Mold Builder’s Association meeting in Asheville in

manufacturing technology degree (AAS) at Central Piedmont Community College (CPCC).

Learning from European-style apprentice programs, drawer systems manufacturer Julius Blum Inc. and printing equipment maker Max Daetwyler Corp. developed the program in 1994.

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

In addition to Ameritech, medical research equipment firm Sarstedt, Inc., Pfaff Molds LP, and bearing and steel supplier Timken Bearing Co. are part of the consortium. All six companies are based in the Charlotte area.

“Finding the next mold making protégé is my passion. It is so rewarding to me when I find a young person that sees and tastes this business, then grabs hold of it and claims it as his very own.”

?

~Steve Rotman President

The program targets 11th graders in math and design classes. After a presentation at local high schools, students and their parents are invited to attend an open house at the business. After that, students attend an orientation to build a takehome project with the trainers of the sponsor companies. Students identify which company appeals to them and the companies evaluate the students. The students chosen then enter a paid six-week summer internship program.

“We’re looking for students with strong math skills as well as mechanical ability,” says Rotman, “but also with the attitude that they take great pride in what they create, almost going overboard to achieve perfection.”

During the summer, the students attend CPCC two days a week taking preparatory classes, and work at company the other three days. At the end of the six weeks, the students who have performed well and want to proceed are signed up with the N.C. Department of Labor for an 8,000-hour state-certified apprentice program.

Students accepted into the program spend their senior year attending school half days with the other half at the company. Once they graduate, the apprentice becomes a full-time employee of the company, working four days a week and attending CPCC one day a week, as well as one evening.

Their college tuition and fees are fully paid and they are paid for the work they do as well .Once the basics are learned, the apprentices may choose one of five specialties: CNC machinist, mold/plastics technician, quality technician, machine technician or tool and die maker.

“Finding the next mold making protégé is my passion,” asserts Rotman. “It is so rewarding to me when I find a young person that sees and tastes this business, then grabs hold of it and $ claims it as his very own.”

704-540-2255

www.ballantynedentistry.com

DESTINATION: [the book]

BUY THE BOOK TODAY!

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

ap r i l 2 0 1 1

43

[biznetwork] Thank you to our advertisers who make this publication and its distribution to over 100,000 readers possible! Enjoy their products and services as Charlotte’s leading business-to-business suppliers.

Ameritech currently has five employees from the apprentice program and Rotman says that, because students are trained from the first day on how things are done at Ameritech, they have a better chance of becoming viable employees than those hired from another shop.

“Before we began participating in Apprentice 2000, we had a five percent retention rate for employees,” explains Rotman. “The upfront cost of training and tuition for apprentices is well worth it.”

Shaping the future Many economists in recent years have heralded the death of American manufacturing.

The nation has lost 2.5 million manufacturing jobs since 2001. Statistics indicate that manufacturing as a share of the U.S. economy is plummeting. In 1965, manufacturing accounted for 53 percent of the economy; by 1998, it only accounted for 39 percent; and, in 2004, it accounted for just 9 percent. As early as 2004, Benson’s Economic and Market Trends (Feb. 27, 2004) was warning that the U.S. is facing the “gutting, hollowing out and closing down of American manufacturing forever.”

Forester Research Inc. predicts U.S. employers will move 3.4 million white-collar jobs and $136 billion in wages overseas by 2015. A University of Californian at Berkley report finds 14 million jobs are at risk of being sent overseas and predicts job losses will exceed the Forrester study’s projections.

Recognizing the threat of globalization of manufacturing and the outsourcing of jobs, Rotman urges the U.S. government to pass aggressive tax incentives for investments in technology and equipment, incentives to help implement costly apprenticeship programs to gain workers back into the trades, and incentives to companies that work with other U.S. companies to keep the country’s manufacturing structure stable.

“Our future generations will pay a huge price if something isn’t done to correct the damage to the U.S. economy by offshoring,” Rotman asserts.

44

ap r i l 2 0 1 1

Yet, Rotman believes in the future of Ameritech and worries about the succession of ownership. He supported his son Mark’s wish to join the company after graduating from Appalachian with a business degree.

“I never pushed him to come into the business,” says Rotman, “There are no guarantees about the future in any business; it is up to each individual to shape and mold their destiny.

I have seen huge programs shipped to China.

I have no control except to figure out how to compete and survive.”

For now, Rotman reports the mold making industry is flush. Work has stayed steady for the past two years, and with a boom coming, Rotman says there is a pent up demand that should push the business to even greater productivity.

“Several automakers and appliance manufacturers are preparing for big model changes and replacement programs,” he predicts. “Our molds are one to two years ahead of the actual retail marketplace and the path to the future looks promising.” biz Casey Jacobus is a Charlotte-based freelance writer.

Ameritech Die & Mold, Inc. 107 Knob Hill Road Mooresville, N.C. 28177 Phone: 704-664-0801 Principal: Steven J. Rotman, President Founded: 1985 Employees: 35 Business: Designs and builds molds for the plastic industry; specializes in medium to large, single or multicavity, injection, compression, or blow molds.

Awards: Special Program Award for Apprenticeship 2000, North Carolina Department of Labor (2006); Supplier Award,Takata Safety Restraints (2004) www.amdiemold.com

37

3D USA 3dusa.com

31

ATCOM atcombts.com

43

Ballantyne Center for Dentistry ballantynedentistry.com

25

Blair, Bohlé & Whitsett PLLC bbwpllc.com

03

Blue Cross Blue Shield of North Carolina bcbsnc.com

26

Business Success Institute business-success-institute.com

25

Canon Business Solutions/Tereck, Inc. tereckoffice.com

IBC

Carolina Medical Center carolinascorporatehealth.org

01

Central Piedmont Community College cpcc.edu

32

Daniel, Ratliff & Company danielratliff.com

33

Design Frog Studio designfrogstudio.com

43

Destination Charlotte the book destinationcharlottethebook.com

BC

Diamonds Direct SouthPark diamondsdirectsouthpark.com

09

Diamond Springs diamondsprings.com

31

Dry Pro dryprosystems.com

20

Griffin Home Health Care griffinhomehealthcare.com

10

Group Benefit Solutions gbs-benefits.com

33

Hickory Printing hickoryprinting.com

27

Hood Hargett Breakfast Club hoodhargettbreakfastclub.com

10

Larner’s Office Furniture Outlet larnersoffice.com

39

QR Codes greatercharlottebiz.com

19

TelWare Corporation telware.com

39

The Employers Association employersassoc.com

IFC

Time Warner Cable - Business Class carolinas.twcbc.com

39

Wayne Morris Photography wmphoto.biz

19

Waypoint Solutions Group waypointsg.com

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

www.carolinascorporatehealth.org

THE SOLUTION FOR EMPLOYEE WELLNESS. ON-SITE CLINICS

We also offer drug screenings, free health fairs with clinical

ONE POINT OF CONTACT

experts and access to the regionâ&#x20AC;&#x2122;s most comprehensive

OVER 20 YEARS OF EXPERIENCE

healthcare system with facilities open 24 hours a day, seven

EFFICIENT, SEAMLESS CARE

days a week. Proven solutions for a healthier workforce.

Schedule On-Site Wellness Education and Health Services 704-446-8400 | solutions@carolinashealthcare.org

Gent’s Wedding Bands

4521 Sharon Road, Charlotte NC 28211 • 704.532.9041 or 888.400.4447 (Located across from SouthPark Mall) Hours: Monday-Friday 10:00-7:00, Saturday 10:00-6:00 www.DiamondsDirectSouthpark.com Diamonds Direct Birmingham | Mountain Brook, AL | 205-201-7400 • Diamonds Direct Crabtree | Raleigh, NC | 919-571-2881