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Hollings Cancer Center attains National Cancer Institute designation Prestigious honor oďŹ&#x20AC;ers new hope for South Carolinians with cancer.
National Cancer Institute (NCI) designation means cancer patients in South Carolina will have expanded in-state access to novel clinical trials and the most promising new therapies being developed by the physicians and scientists at the Medical University of South Carolinaâ&#x20AC;&#x2122;s Hollings Cancer Center. The elite status will also help attract to MUSC the best and brightest researchers and cancer specialists from around the world. The stateâ&#x20AC;&#x2122;s economy is another big winner, as NCI-designated cancer centers receive substantial research grants. At MUSC Hollings Cancer Center, we are committed to making hope a reality for all our patients. With NCI designation now a reality, there is more reason for hope than ever before.
For more information, visit HollingsNCI.info
This public announcement was made possible through private donations.
TRANSFORMING THE BUSINESS LANDSCAPE
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“The coming months will bring great opportunities to communities all across the U.S. as the economy recovers and stalled projects restart.” —
KATHLEEN CRUM (KATHY) MCKINNEY PRESIDENT NATIONAL ASSOCIATION OF BOND LAWYERS
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Chair, Furman University Board of Trustees
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Board Member, South Carolina Independent Colleges and Universities
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Board of Directors, South Carolina Association of NonproÀt Associations
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Consistently recognized in The Best Lawyers in America—Public Finance and Chambers USA
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Named to Society of International Business Fellows
ATTORNEYS AND COUNSELORS AT LAW
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Contents VOL.3, ISSUE 4
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Winter 2009
COVER STORY 14 Competitive streak 23 Wave of economic optimism ripples across state
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26 Beyond Boeing Cover design by Ryan Wilcox
FEATURE
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24 Boeing’s flight path to S.C.
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Preparing the next generation
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Michelin North America launches an employee volunteer program to mentor schoolchildren Photo/James T. Hammond
DEPARTMENTS 4 | Viewpoint 6 | Upfront 8 | Technovation 10 | Ports, Logistics & Distribution 12 | Spotlight: Beaufort 48 | 1,000 words 2
S P E C I A L S EC T I O N PA G E 3 5
Best Places inSC to
WORK
2009
Check out the 20 companies that made this year’s Best Places to Work in S.C. list.
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Viewpoint
South Carolina’s roadmap to a stronger economy he past year has been a rough ride for the U.S. economy, and the pain appears unlikely to end soon here or across the country. Amid the gloom, however, there is some light at the end of the tunnel. A great deal of serious economic development work has taken place in recent years, and that has created a conceptual and legislative foundation to shape the future growth of the state. To get up to speed on where we are now, I checked in with several key organizations pushing hard to stimulate economic growth in our state, including New Carolina, the Palmetto Institute and the S.C. Research Authority. Here are some of the highlights and concerns that are at the top of the list for these and other groups focused on economic development.
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Topping the list The right legislation is in place. State legislative leaders have played a key role in passage of legislation vital to a brighter future: The Personal Pathways to Success program, supported by the Education and Economic Development Act, is designed to put middle and high school students on viable career paths and keep them motivated and in school. This program needs more funding and continued support. The Endowed Chairs program through the Centers of Economic Excellence is bringing top-level academic and research talent and programs to our state’s research universities. The Endowed Chairs program is beginning to bear fruit and shows great promise. Other key state legislation includes the Innovation Centers program, the Industry Partners Act and the Venture Capital Investment Fund. Work force development is still missioncritical. Our state needs to invest in early education, especially pre-kindergarten programs for at-risk children. We also need to support and strengthen our technical colleges, because the evolving entrepreneurial and innovation economies demand not only Ph.D.’s, MBAs and engineers, but also workers with the tech4 SC BIZ | w w w. s c b i z m a g . c o m
nical training to fill a wide swath of jobs that are critical for “new economy” growth. We need to fix a broken tax structure. Want to hear something truly crazy? The sum total of special sales tax exemptions is now equal to the amount actually collected in sales taxes (about $2.7 billion a year). This is just one example of how messed up our tax structure has become. In the words of one key economic development executive, we need a tax system that is “adequate, equitable and competitive.” We need a diversified economic development strategy. A recent report from the Kauffman Foundation describes four approaches to state economic development: The first is traditional “smokestack chasing,” looking for big companies from out of state to come in and have a big impact. Second is the “cheap and easy” strategy, promoting low taxes, affordable workers and business-friendly regulators as the keys to growth. The third strategy beefs up a state’s resources with big investments in education, social programs and infrastructure (Massachusetts would be an example), but often a good chunk of the resulting profit is taxed away to support the programs. The fourth and more recent strategy is to focus on targeted efforts to support entrepreneurship and innovation. The benefit of this strategy is that you build “homegrown” knowledge economy clusters that are less vulnerable to foreign competition and more likely to keep their corporate headquarters here as they grow. SCRA has placed a strong emphasis on entrepreneurship and innovation through
its award-winning d-winning “SC Launch” program, which is beginning to produce those economic “green shoots” that every economist has been looking for in the current downturn. For the state as a whole, a blended strategy using elements drawn from all four approaches is entirely appropriate.
Energy policy If “plastics” was the magic word for those old enough to remember the movie The Graduate, then “energy” is today’s word to the wise. Restrictions on carbon emissions are on the way, and South Carolina can profit greatly from being a source of non-fossil fuel energy sources and technology, as well as by focusing on promotion and investment in energy efficiency in our homes, offices, factories and transportation systems.
Leadership from the governor’s office Finally, our next governor must be a strong leader who can avoid wasting time fighting with the Legislature and can unify the state behind a coherent and inspiring economic development strategy that is designed to give every S.C. citizen a better shot at a more prosperous and productive life. We’ve got our work cut out for us, but, if we do things right, that light at the end of the economic tunnel could prove to be bright and promising. We must all do our part, so let’s get to work! SC
BIZ
Bill Settlemyer bsettlemyer@scbiznews.com
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Boeing and South Carolina. The Dream Begins.
www.nexsenpruet.com C HARLOTTE | GREENSBORO | RALEIGH C H A R L E S TO N | C O LU M B I A | G R E E N V I L L E | H I LTO N H E A D | M Y R T L E B E AC H
12 3 0 M a i n S t r e e t , S u i t e 7 0 0 , C o l u m b i a , S C , 2 9 2 01 – L e i g h t o n L o r d , L a w F i r m M a n a g i n g P a r t n e r
Upfront REGIONAL NEWS
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Upstate
Midlands
Lowcountr y
Pee Dee
Grand Strand
D ATA
Wind farms 8 miles off the coast would still be visible
This photo simulation compares the visibility of wind turbines placed at varying distances from shore. Specifically, the turbines are depicted at 2 miles (from left), 3 miles, 4 miles, 5 miles, 6 miles, 7 miles and 8 miles from the shore. Different light, wind and haze conditions could make them more or less visible. (Photo illustration/Jim Huff, Santee Cooper)
Monster.com opens facility in Florence FLORENCE – Monster.com, an online career and recruitment company, has officially opened its new customer service facility in Florence. Developed by Red Rock Developments, the 75,000-square-foot building currently employs approximately 150 full-time employees and has the ability to grow its staff over time. Monster opened a temporary facility in Florence in October 2008 and has been recruiting employees and conducting training since the initial announcement in June 2008. “The opening of this customer support service center represents our continued efforts to centralize our operation and to always ensure our customers get best-in-class service and support,” said Art O’Donnell, executive vice president of global customer services for Monster. “We chose Florence because it has the talent, standard of living and educational resources we needed to bring premier service to our customers. This opening represents another major milestone for Monster as we continue to expand our products and services to help connect job seekers and employers.” 6
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HORRY COUNTY – A Santee Cooper-commissioned study says that offshore wind farms located up to eight miles past the shoreline would be visible from the coast. The study, conducted by Clemson University’s S.C. Institute for Energy Studies, said a typical summer haze would reduce the visibility by half. The photo simulation (pictured) is part of Santee Cooper’s ongoing research project to determine whether wind farms off South Carolina’s coast could be a viable source of energy. The visibility issue relates to study of the potential impact wind farms could have on tourism and commercial and residential real estate. In the simulation, Clemson researchers photographed ocean views from various coastal points along Horry and Georgetown counties. Those areas roughly match the two areas hosting an ongoing wind buoy study by Santee Cooper and Coastal Carolina University.
$61 million The amount state agencies spent on travel in fiscal 2008-2009 Comptroller General Richard Eckstrom recently compiled a report on the travel expenditures of state agencies and released the information to all state agency department heads in a memo. He said the information should be used as a “management tool to assist agency heads in ensuring that the state’s financial resources are being used efficiently.” The comptroller general’s office compiled the information from data recorded in the Statewide Accounting and Reporting System.
“In this new economy, the South is a very real strength for America and is a competitor for manufacturing jobs, and is a very real threat for the Northwest and others as well.” Aaron Reardon executive director of Snohomish County, Wash. See the full story, page 14.
Food processing facility opens in Pee Dee MULLINS – Sopakco has opened a new, 200,000-squarefoot facility to make heat-and-serve packaged meals in Mullins. The company is one of the largest manufacturers of prepackaged meals for the U.S. military. The new facility will produce consumer products that don’t require refrigeration. The plant will employ about 80 people when it reaches capacity. It will feature a product development lab, a test kitchen and automated production facilities. “Not only will this bring employment to an area much in need, but it will also raise spirits as we see an increase in economic opportunities in our community,” Sen. Kent Williams, D-Marion, said at the announcement.
‘Fastest-Growing Companies’ named MOUNT PLEASANT – Direct Source Imports LLC was named South Carolina’s fastest-growing company for 2009 at the S.C. Chamber of Commerce annual summit. Direct Source Imports, which sells wood products used in the construction industry, saw revenue grow 225% in 2008. The company was founded in 2006 and is based in Mount Pleasant. South Carolina’s Fastest-Growing Companies 2009 recognizes 25 companies statewide for exceptional performance in revenue and employment growth. The awards are co-sponsored by The Capital Corp. investment banking firm and the S.C. Chamber of Commerce. Arnold Construction Corp. of Columbia, a commercial and multifamily general contractor and design-build firm, came in second place with a 153% increase in revenue. Liberty-based TSP, a manufacturer and distributor of irrigation products, turf equipment and pumping systems, took third place with 133% revenue growth. Nominations for South Carolina’s Fastest Growing Companies 2009 were accepted between June and August. Participation was open to public and private nongovernmental entities in any business or industry sector that have headquarters in South Carolina. Nominees must have been in operation for at least two full fiscal years and have revenue of at least $3 million (or $50 million in assets for financial institutions) in the most recent fiscal year. Fifteen of the 25 winning companies reported annual revenues exceeding $10 million. The median revenue for all finalists was $10.9 million. Rankings are based on a weighted equation factoring in growth in revenues and increases in full-time employment. #
COMPANY
DESCRIPTION
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Direct Source Imports LLC
Retailer of high-quality wood products used in the construction industry
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Arnold Construction Corp.
Commercial construction company serving the Southeast
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TSP
Irrigation products, turf equipment and pumping systems
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Small Business Group Inc.
Construction, environmental and demolition services
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Dennis Corp.
Engineering, surveying and construction management
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Network Controls and Electric Inc.
Design, installation and maintenance of communication networks and electrical infrastructure
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B2B Media Inc.
Vehicle and architectural graphics
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The Tides Commodity Trading Group
Commodity traders of bulk foods
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avVenta Worldwide
Digital production and interactive communication services
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Industrial Service Group Inc.
High-performance lining and coatings for power generation industry
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SYS Constructors Inc.
Commercial construction, specializing in design-build
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Cynergi Systems LLC
Technology solutions provider serving the education and health care fields
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Force Protection Inc.
Survivability solutions and vehicles for the U.S. military and its allies
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Yeargin Potter Shackelford
Commercial and industrial general contractor
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Rhythmlink International LLC
Design, manufacture and distribution of neurodiagnostic and sleep accessories
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Insurance Applications Group LLC
Benefits design and communications
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Kestrel Horizons LLC
Construction, remediation and operation of environmental facilities and sites
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Weir Capital Management
Financial planners and money managers
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Acumen I.T. LLC
Technology consulting
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AssetPoint LLC
Software sales and service
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Mercom Inc.
Design and implementation of voice, video, data and security applications
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AccountSource
Accounting and finance professionals
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Marketplace Staffing
Comprehensive staffing solutions for growing businesses
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M33 Integrated Solutions
Transportation management and logistics
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eGroup Inc.
Enterprise solutions design and consulting
Seven out of 10 The number of taxpayers in the Carolinas now using e-file Taxpayers in the Carolinas e-filed a record 4.3 million federal income tax returns during 2009 for tax year 2008. In South Carolina, more than 1.5 million taxpayers used the Internal Revenue Service’s e-file, an increase of nearly 3.5%. In North Carolina, more than 2.8 million taxpayers used e-file, an increase of 5.12% compared with last year.
Housing index judges college town affordability Each fall, nostalgia grows for the tradition, lifestyle and spirit of college towns. This year’s Coldwell Banker College Home Price Comparison Index reveals that these schoolcentric areas also sport very affordable homes, in addition to the culture and economic stability associated with higher education institutions. The annual index released by Coldwell Banker Real Estate LLC provides an apples-to-apples comparison of 2,200-square-foot, four-bedroom, 2 1/2-bathroom homes in the markets that are home to the 120 Football Bowl Subdivision schools. This year, Akron, Ohio, (University of Akron) is ranked as the most affordable college town, where a typical four-bedroom home costs $121,885. Muncie, Ind., (Ball State University) took the No. 2 spot at $144,996. Ann Arbor, Mich., (University of Michigan) came in as the No. 3 most affordable college market, where the sample-size home costs $148,000. Though they didn’t crack the top 25, Columbia (University of South Carolina, average home price $191,075) and Clemson (Clemson University, $222,767) were in the upper half of the rankings, at No. 31 and No. 53, respectively. Overall, the 2009 index revealed that real estate buyers can find a typical four-bedroom home for less than $250,000 in 62% of the college markets surveyed. Palo Alto, Calif., (Stanford University) was the most expensive college town in the index. An average 2,200-square-foot home there costs $1.49 million. w w w. s c b i z m a g . c o m | W i n t e r 2 0 0 9
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Clemson to advance optoelectronics research CLEMSON – Clemson University has raised $4 million in public and private funding to create an Optoelectronics Research Center of Economic Excellence in the Holcombe Department of Electrical and Computer Engineering. Telecommunications companies Comporium Communications and PalmettoNet donated $1 million each to match state funding. The optoelectronics field focuses on improvement of the devices, systems and protocols used in high-speed communication networks, but the research could find other applications as well. The Upstate Alliance, for
example, just cited optoelectronics as a key component to the advanced materials industry, one the alliance said is positioned for significant growth in the Upstate. “Optoelectronics are everywhere,” Clemson President James F. Barker said. “They are found in lasers, television and computer screens and in communication, medical and defense systems. To see this technology advanced at Clemson University is an honor and we are very grateful to Comporium, PalmettoNet and the state of South Carolina.” The new Center of Economic Excellence will be supported by the PalmettoNet Endowed
PalmettoNet Pr esident and CE O R. Vernon W (from left), an illiams d Comporium President and Bryant G. Barn CEO es with Clem son President Barker. (Photo James F. /Comporium Communicatio ns)
Chair in Optoelectronics and the Comporium Fund for Excellence in Optoelectronics. The center will strengthen the research program in the Center for Optical Materials Science and Engineering Technologies and will be located along with the center and the electron microscope facility at the Advanced Materials Research Laboratory in Anderson County.
Clemson shares in USDA’s largest fruit grant California tech company merges with CLEMSON – Clemson University plant scientists are part of the largest U.S. Agriculture Department grant awarded for improvement of fruit crops. Clemson will receive $400,000 for research into improved methods of peach breeding. The award is part of a $14.4 million USDA grant for the RosBreed project, which seeks to revolutionize the translation of DNA-based information into practical applications for crops in the botanical family Rosaceae, or rose. After grasses and peas, Rosaceae is thought to be the third-most economically important crop plant family, according to Clemson. It includes apples, pears, almonds, peaches, apricots, plums, cherries, strawberries, raspberries, blackberries and cut roses. “Being a peach breeder and part of the RosBreed team is very exciting,” said Clemson researcher Ksenija Gasic. “RosBreed focuses on bridging a gap between genetics and genomics technologies and their practical application in breeding programs, with the ultimate goal of delivering fruit that is desirable by consumers and more profitable for fruit growers. It’s all about delivering the best product to the final consumer using the latest techniques guided by stakeholders’ needs and consumer preferences.”
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Georgetown algae production facility GEORGETOWN – Renewed World Energies, based in Georgetown, is merging with California-based BioCentric Energy Holdings. Renewed World Energies, started by two engineers in 2008, manufactures and sells algae products called automated microalgae photo-bioreactors for the commercial production of energy feedstock. The fuel can be used directly or after gasification by turbines to generate electricity. BioCentric CEO Dennis Fisher said, “After extensive talks and comparative data exchanges between the two companies, it became apparent that major synergetic opportunities would evolve if both companies were to combine efforts to advance photo-bioreactor closed-loop technology and algae reproductive systems with the advanced capability of producing power in the form of electricity, passing directly into the ‘grid’ system.” Renewed World Energies and BioCentric will merge all assets, and the company will be renamed. Together, the two companies hold more than $6 million in algae product. The corporate headquarters will be in Huntington Beach, Calif.; the research and development arm will be in Prague; and the Georgetown location will have the engineering equipment for the manufacturing and production of the algae product. The one-acre photo-bioreactor system in Georgetown will start the purchase order production. The company will increase the size of the facility incrementally, with the capacity of growing to 20 acres of adjacent property and a possible 300 acres when required. It is expected to be operational by the end of this year, with the first orders completed by December 2010.
inn
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south carolina Ports, Logistics & Distribution
Trifecta Port scores three big deals this fall By Molly Parker, Staff Writer t’s not only bad things that happen in threes — the S.C. State Ports Authority proved that this fall. With newly minted CEO Jim Newsome at the helm, the SPA closed two major deals in recent months and will benefit substantially from the third — the landing of As one of the largest users of the port, tire importer TBC Corp. in Jedburg. TBC expects to bring thousands of containers The expected influx of new tires and the through the Charleston port annually. SPA’s freshly inked contracts with Maersk and In a coup on the passenger side of the busiCarnival Cruise Lines have provided an injec- ness, the SPA announced in September that tion of optimism into a maritime community Carnival Cruise Lines will begin offering reguthat has suffered from the dwindling number lar cruises from Charleston next spring, setting of containers crossing Charleston’s docks. the first-ever year-round cruise schedule for In delivering his first State of the Port ad- the port. Carnival will operate five-, six- and dress on Oct. 22, Newsome said it is unaccept- seven-day trips from the passenger terminal able that Charleston’s trade volumes are on par in downtown Charleston to the Bahamas with those posted a decade ago and Key West, Fla., beginning — even considering the global May 18. “Ladies and recession. Newsome said he is gentlemen, the Port sales chief working to make sure the Port of Charleston comes out on best years of this forecasts a ‘cold nuclear winter’ the other side of the recession great port are The Port of Charleston as a competitive force on the continues to bleed business East Coast. ahead of us, not at a faster rate than its coun“Ladies and gentlemen, the behind us.” terparts across the country, best years of this great port are though efforts are afoot to ahead of us, not behind us,” he Jim Newsome diversify trade opportunities said. CEO, S.C. State Ports and rein in losses. A few hours before his Authority From July to September, speech, shipping giant Maersk the number of containers Line announced that it had signed a new agreement with the SPA and will — measured by 20-foot equivalent units — continue to call on Charleston until at least crossing Charleston’s docks dropped almost 2014. This brought an end to almost two years 28% compared with the same period a year of often terse negotiations and put concerns ago, according to the American Association to rest that the port could lose about 20% of of Port Authorities’ monthly report. On the East Coast, Savannah’s business was its business. The TBC Corp. announcement came a few down about 10%; Virginia’s Port of Hampton weeks prior. Though it was not acting alone, Roads registered a 16% drop; and the Port of the SPA was a major player in the orches- New York & New Jersey’s container traffic fell tration of this deal as well. TBC, the parent 13%. Chief Commercial Officer Paul McClintock company of Tire Kingdom, plans to build a 1.1 million-square-foot distribution center off said his sales team is working diligently to add new trading partners to the authority’s portInterstate 26 in Berkeley County.
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folio, particularly in the Far East. In October, McClintock spent 2 1/2 weeks in Asia, where he attended a trade conference and met with potential clients. Any new partners won’t be added immediately, McClintock said. Although China appears to be leading the way out of the global recession, that country’s recent economic success is largely domestically driven, through stimulus programs, and that is doing little to bolster trade volumes, he said. McClintock said the steamship line executives who spoke at the trade conference were not optimistic about an uptick moving into the next year. “It was just gloom and doom from all the carriers,” McClintock said. “It’s going to be a cold nuclear winter.”
Columbia businessman chosen to lead State Ports Authority board Columbia developer Bill Stern will take over as chairman of the SPA board on Jan. 1, replacing current Chairman David Posek, a retired executive from Greenville. Posek will remain on the board.
Columbia real estate firm selected to market SPA’s Daniel Island property In November, the SPA board selected Columbia-based NAI Avant to market the authority’s 495 acres of waterfront property on Daniel Island, a portion of the property where the SPA had once planned to build the Global Gateway. NAI Avant is charged with all aspects of the sale. A listing price had not been announced as of press time. SC
BIZ
Who’s Who in Logistics
Blackhawk Logistics supplies solutions for supply chain challenges Jerry Ward founded Blackhawk Logistics in 2005 to provide true and complete logistics services to customers’ supply chain needs and challenges. Ward saw that while other companies used the term “logistics” in their company name or description, they did not truly have the resources, knowledge, experience or the ability to think far enough outside the box to provide complete logistics services to customers. So, Ward and his team of experienced problem solvers set out to Àll this gap and have succeeded in creating a company that can provide true turnkey, cost-efÀcient solutions to customers. Blackhawk Logistics’ array of services includes freight forwarding, drayage, warehousing, distribution, bulk handling, packaging, fulÀllment, assembly, recycling and the transportation of goods to customers. In addition to handling import and export business from the Ports of Charleston, the company also handles direct-to-consumer and retail product order fulÀllment. Many of the products they handle are those sold on television infomercials, QVC, and HSN and on Web sites like Amazon.com. Blackhawk also Àlls retail orders for customers like Best Buy, Apple Stores, Wal-Mart and Cracker Barrel, just to name a few. Blackhawk’s versatility in distribution is apparent when you consider it has shipped more than 500,000 fulÀllment orders with UPS alone in the past 12 months. Meanwhile, it also imported and exported hundreds and hundreds of containers of paper, plastic, chemicals, Àsh oil, truck parts and other commodities — all from one of the largest public warehouse operations in the state.
Blackhawk’s range of expertise comes from its 30 employees who have hands-on experience in safety and compliance, hazardous material handling, permitted overweight port moves, recycling solutions, packaging and fulÀllment, bulk product handling and many years of LTL, TL and container drayage. “We have a wide range of expertise because we are all hands-on and are a ‘been there, done that’ type operation, so our ideas and knowledge come from hands-on experience,” Ward said. “Our team of experienced people with a can-do attitude, along with our desire to understand the needs of our customers’ customers, has been the cornerstone of the company’s growth,” Ward said. “We also feel we think way outside the box in creating cost efÀcient solutions to our clients’ challenges and needs. All companies have challenges and we are not an exception. What we do differently is bring versatility, Áexibility and creative, value-added services for a wide range of products that allows us to be diversiÀed and not have all our eggs in one basket.”
Address 5801 North Rhett Ext. Hanahan, SC 29410
The Blackhawk facility is located 1 mile off Interstate 526 and 6 miles from the new Boeing manufacturing plant. The 505,000-square-foot warehouse is on 34 acres secured with 100% perimeter fencing. It is Charleston’s only public warehouse operation with a 24/7 gated guard service. In addition, the facility has a fully-automated, multi-axle certiÀed truck scale that is open to the public at a cost of $5. The facility also has 45 truck doors, 20 rail doors, three drive-in doors and is 100% sprinkler protected.
Fax 843-744-8355
“Blackhawk can provide a solution to any supply chain challenge that a customer has,” Ward said.
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Spotlight
Beaufort C
Beaufort By Allison Cooke Oliverius, Special Projects Editor
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Beaufort’s beauty and quality of life are two major assets when it comes to attracting businesses to the region. (Photos supplied by the Lowcountry Economic Network and Alliance)
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ontraditional” is the term Kim Statler uses to describe economic development efforts in Beaufort County and the surrounding area. “It’s not the traditional model, but we have to understand, you take the asset you have, and that’s what you sell,” said Statler, who for the past three years has served as executive director of the public-private Lowcountry Economic Network and Alliance. For Beaufort, those assets are beauty and quality of life. “We are very good at tourism and positioning ourselves as a place to be when you retire. And that has provided our county with great resources,” Statler said. “We have wonderful amenities, beaches, trails. We have protected our scenic view and we feel like we have this wonderful, well-preserved place with a great opportunity to attract the next generation of business.” These things may seem secondary in the economic development of an area. But they are deal closers for Generation X and Y, as well as retired executives who are looking for a place to relocate and start their second career. That’s why, in addition to traditional economic development strategies, the network has expanded its Web marketing campaign, begun advertising in real estate magazines in the Northeast and attended a recent aeronautics conference in Florida. In short, Statler said, quality of life attracts knowledge-based businesses, which, in turn, create high-paying jobs.
acts
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0,415* Employme nt by indu s tr y (top five): Leisure and hospitality .. .................. Trade, transp ........ 22.0% ortation and utilities ...... Governmen ...... 18.3% t ................ .................. Professional .. .. .. .... 15.1% and busines s services .. Education an ....... 11.0% d health serv ices ............ ...... 8.7% Largest em ployer: S.C . Departmen Resources t of Natural
Source: S.C. Department of Commerce . *2008 estim ate
With this focus, the network, which represents Beaufort and Jasper counties, has created a strategic plan that focuses on four key areas for economic development. Aeronautics and defense. Beaufort is home to three different military installations, and the F-35B Joint Strike Fighter will be stationed at the Marine Corps Air Station there beginning in 2014. The network has created the Beaufort Commerce Park, 150 acres of space that is ready for the arrival of the F-35B and any spin-off businesses that might follow. And, since the Boeing announcement, “We’ve already received several calls from local, state and federal officials asking us what companies in the Lowcountry touch Boeing, how does Boeing correlate with the F-35 and what assistance can they offer to connect these dots?” Statler wrote on her blog. Logistics and distribution. With easy access to Interstate 95 and longrange plans for U.S. 17 to be four lanes, Statler said officials are looking at the possibility of attracting logistics and distribution businesses. Alternative energy. Area leaders continue to recruit alternative energy businesses. Knowledge-intensive communities. Companies can be anywhere, and CEOs are making decisions now based on where they want to live. “It’s great infill for Hilton Head Island, Bluffton and Beaufort, where we have created a wonderful sense of place, and now it’s time to use it for economic development,” Statler said.
Where business is good. And life is better. How did the South Carolina Lowcountry become the new high-tech hub? Maybe it’s the infrastructure the region has to get your business up and running. Then again, it may be the hassle-free turnkey support the community provides. But, considering tech-based operations can be performed from just about anywhere, we’re guessing it’s because this is about the best ‘anywhere’ you can live. Right where the sun meets the sand. Where high-tech meets Lowcountry. phone (843) 379-3955 :: lowcountrynet.org
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SPECIAL REPORT: BOEING LANDS IN S.C. he Boeing Co. recently broke ground on its new Dreamliner assembly plant in North Charleston. But with its move down South, Boeing is hardly breaking new ground. For years now, Southern states have engaged marquee manufacturing companies in chivalrous courtship. “When it comes to relocating in the South, they (Boeing) are following, not leading. Cars have led the way for decades now. There’s been a heavy Southern manufacturing presence for years,” said Richard Aboulafia, an analyst with the Teal Group aerospace consulting firm. It might be the finely aged traditions of the South that capture the nation’s fascination with our region. But it’s not bluegrass and country gravy that are drawing and keeping the likes of Boeing, Toyota, Volkswagen, BMW, DuPont, General Electric and Honda — to name a few. The South has long been a manufacturing stronghold. But even before the recession, even at the height of production, the industry was shedding jobs. Automation and lean manufacturing have been good for the industry’s bottom line but tough on workers. Other jobs have moved overseas, as companies found less expensive locations to produce such commodities as textiles, apparel and furniture. “A lot of that was here during the last wave of manufacturing,” said Ted Abernathy Jr., executive director of the Southern Growth Policies Board, a think tank focused on creation of prosperity through economic development in the Southeast. Abernathy called those sectors that boomed in the ’50s and ’60s “lower-value manufacturing.” This more recent wave of manufacturing Workers in Everett, Wash., assemble the first 787 Dreamliners bound for customers of the new passenger jet. companies moving to the Southeast repre- The Boeing Co. is building a similar production facility in North Charleston. (Photo/Molly Parker) sents a “move up the value chain,” he said. enticement. Sweeney Consulting to help communities in For instance, in the Mississippi town of its seven-state Southeastern territory land Moving south Boeing executives turned southbound as a Tupelo, a host of laid-off furniture makers large manufacturing companies. means for diversifying manufacturing opera- represented a ripe and easily trained work After the states and counties laid the tions outside of the Seattle area. The Chica- force for Toyota, said John Bradley, senior groundwork, McCallum Sweeney certified go-headquartered company has lost tens of vice president of economic development for eight so-called megasites. To earn that title, millions of dollars as a result of acrimonious the Tennessee Valley Authority. a site must be at least 1,000 acres in size and relations with the Machinists union in Wash“Toyota saw this as a transferable skill,” fully permitted, allowing a company to land ington. Bradley said. “They (workers) already have and build a large-scale operation quickly. Other pivotal factors in these feather- the basic skill sets, things like good eye-hand So far, five of those megasites have been in-your-cap types of deals are large swaths coordination.” sold, translating into multibillion-dollar cash of shovel-ready land, proximity to ports, afThe Tennessee Valley Authority, a federal infusions for Southern communities, many of fordable power, reasonable wage scales and corporation, is the nation’s largest public pow- them rural and struggling. healthy government incentive packages. er company. A few years back, the authority Toyota led the way in 2007 when the JapaA pool of laborers eager for jobs is another contracted with Greenville-based McCallum nese automaker announced plans to invest
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SPECIAL REPORT: BOEING LANDS IN S.C. $1 billion in an SUV plant in Mississippi’s upper reaches. After the Toyota announcement, Volkswagen decided to plant a $1 billion flag in Chattanooga, Tenn. These are the TVA’s highestprofile deals, the list of which also includes the landing of a large steel company and several polysilicon plants that fuel the solar-power panel industry. The TVA’s service area takes in all or parts of Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee and Virginia. “This is, honestly, pretty unbelievable,” Bradley said. “As you know, there aren’t that many deals of that size floating around. To be able to land most of those is pretty amazing. Sometimes I sit here and scratch my head. The competition is so stiff, yet all of this has happened in the South.” For South Carolina, it happened big this year.
3,000 miles and 3,800 jobs
Boeing employees work on fuselage sections of the Dreamliner at the company’s plant near the Charleston International Airport. Boeing plans to build its new facility nearby. (Photo/Leslie Halpern)
Gov. Mark Sanford signs the incentive package for Boeing to build a new plant in North Charleston as state and federal officials share the moment with him. (Photo/Courtesy of the Governor’s Office)
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Jaws dropped from coast to coast when the Boeing Co. announced plans to build its second Dreamliner assembly plant in North Charleston — almost 3,000 miles away from its sprawling manufacturing campus located just outside of Seattle. The departure from Everett, Wash., represented a first for Boeing with respect to its commercial airline division. Many were shocked — including many in South Carolina. Lawmakers hailed Boeing’s announcement as the largest economic development deal in state history. Boeing’s ability to change the state’s economic fabric was compared in scope to the early ’90s deal that landed German automaker BMW in Upstate Greer. But the fact that South Carolina was on Boeing’s mind came as little surprise to Aaron Reardon, the executive director of Snohomish County, of which Everett is the county seat. Several months ago, during an interview with SC Biz, he called South Carolina the “No. 1 competitor” against Washington. Reardon said he had set off warning flares years before that went largely ignored by his economic development colleagues and partners. Boeing’s moved to South Carolina hardly appeared out of thin air. In 2003, Boeing picked Everett as the location for its Dreamliner production facility, but not before the company vetted several other sites. Many of them were in the South, including the North Charleston campus where Boeing will build the second 787 assembly line.
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SPECIAL REPORT: BOEING LANDS IN S.C. Charleston International Airport
lifter Dreamlifter Fuselage ge sections are loaded onto a modified 747 andd transported hington for final to Washington bly. The Dreamassembly. so brings in lifter also sectionss for integration al Aeronautica. at Global
Global Aeronautica This production facility is jointly owned by Alenia and Boeing Co.
Boeing Charleston footprint Outline shows the area encompassing the Boeing Co.’s presence in North Charleston, including Boeing Charleston, Global Aeronautica, the Dreamlifter and the future site of the second 787 assembly line.
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The factory will eventually employ 3,800 workers next to its existing fuselage production facilities. Shortly after the decision, Reardon hopped on a southbound plane. “I took the time to fly around and see what you all were doing,” Reardon said. “I wanted to know what this New South was all about. “What I’ve discovered, what I’ve tried to convey to my peers and elected officials, is the South is indeed very modern and very competitive. In this new economy, the South is a very real strength for America and is a competitor for manufacturing jobs, and is a very real threat for the Northwest and others as well.” The Teal Group’s Aboulafia pointed out that two of the nation’s three central aviation clusters, Wichita, Kan., and Dallas, are firmly rooted in the South. Companies such as Cessna, Lear Jet and Spirit Aerosystems are located in Wichita. Lockheed Martin, Bell Helicopter and Vought Aircraft Industries are out of Dallas, among others. The third, Washington’s Puget Sound region — the home to Boeing manufacturing — will remain the nation’s largest. Even so, Boeing’s decision to move a small slice of its
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SPECIAL REPORT: BOEING LANDS IN S.C. business to South Carolina was ill-received in the Northwest.
Boeing defends S.C. workers
The Boeing 787 Dreamliner’s interior is meant to create a new sensation for passengers. Innovations in the cabin — such as sweeping arches, wide aisles, larger lavatories and dynamic lighting — are being considered, and Boeing says the goal is connecting the passenger with the flying experience. (Photo/Boeing Co.)
Welcome, Boeing
Aeronautical Studies
Critics of the move said the quality of Boeing’s planes will suffer as a result. But Boeing has defended its decision and stuck up for South Carolina’s work force — including when the insult came by way of an editorial cartoon. South Carolina’s new wingman gave a rare chastisement to a media outlet for its publication of a cartoon that Boeing called “simply out of line.” The David Horsey drawing in question appeared recently in the Seattle Post-Intelligencer. It depicts cartoonish S.C. workers stacked four men high trying to attach a wing to an airplane’s body. A Confederate flag hangs in the background, and a boss-like character is standing on top of the wing. A dog snoozes nearby, its nose near a roll of duct tape, which the workers beg it to fetch. The caption reads: “How many non-union South Carolinian workers does it take to attach a wing to a Boeing airplane? Five … and a dog.” Boeing said it was “deeply disappointed.” “Our team in South Carolina is educated, dedicated and hardworking,” the company’s statement said. Lewis Creel, the director of human resources and public affairs for Alcoa’s Goose Creek plant, also said he takes exception to anyone who challenges the quality of the Lowcountry’s work force. Creel said the Berkeley County plant is the only U.S. facility that the company — the world’s third-largest aluminum maker — did not close or otherwise curtail operations of during the recession. “The reason we’re still in business is because of work force efficiency,” Creel said. “We’re the most productive aluminum smelter plant in the world.” That efficiency, Creel said, is measured by work hours per metric ton. The local facility employs 600 workers at an average wage of $19.65 an hour. The plant — the last one Alcoa built in the United States — turns 30 next year. Alcoa recently parceled off a portion of its land to lure Google to town. The plant’s next-door neighbor is now one of the Internet giant’s highly secretive data server farms. Google opened a similar data center in Lenoir, N.C., last year. The South, Creel said, is indeed a good place to do business. SC
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SPECIAL REPORT: BOEING LANDS IN S.C.
Wave of economic optimism ripples across the state BY SCOTT MILLER, STAFF WRITER he gears started turning as soon as Boeing Co. announced its plans to locate in South Carolina. Clemson University quickly identified contacts at the aircraft maker’s research and development office, with an eye toward a partnership similar to the university’s multimillion-dollar International Center for Automotive Research. The Upstate Alliance, meanwhile, put together a list of all the suppliers in the Boeing 787 chain. “We know who they are, and we’re going to go after them,” alliance CEO Hal Johnson said. “I think you will find many, many announcements related to this Boeing announcement.” These efforts could turn Boeing’s announcement into something even bigger.
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Expanding operations Not only could Boeing bring new suppliers into South Carolina, its presence could create new opportunities for manufacturers already located here, said Ed McCallum of McCallum Sweeney Consulting, which assisted Boeing when the company was deciding where to locate its first 787 plant. “This makes sense for Boeing,” he said. The Midlands has several advanced manufacturing firms that can support the aviation industry, too, said David King, director of marketing and new industry for the Central South Carolina Alliance. McCallum rattled off some corporate names as potential beneficiaries of the Boeing announcement in the short term. Michelin North America supplies aircraft tires. General Electric builds turbine blades for the 787 at its facility in Greenville and develops aircraft engines at other facilities. Cytec Industries makes carbon fibers for the aerospace industry. American Titanium Works plans to build a $422 million facility in Laurens County and an R&D center at CU-ICAR. The company didn’t plan to supply titanium to the aviation industry, said McCallum, who assisted the company in its site selection. But that could change, he said, and if it does, American Titanium could attract even more suppliers. “The competitive advantage up here will be in advanced materials,” McCallum said.
Research and development That’s an advantage on which Clemson also hopes to capitalize. The university’s growing Advanced Materials Center in Anderson is conducting research on composite materials that could be used in the aerospace industry, said John Ballato, associate vice president for research and economic development at Clemson. And the S.C. Research Authority is building
an Innovation Center there, where young startup companies will be working to bring new advanced materials to the market. Boeing’s planned investment in South Carolina “bodes well for us going back to the corporate office and seeing if there are some potential R&D partnerships with the university that could help them accelerate their return on investment in this state,” Ballato said. He referred to CU-ICAR, where BMW Manufacturing, Timken Co., Michelin North America and others have invested millions in research, as one of two bookends for Clemson. The other would be a partnership with Boeing. As soon as Ballato heard the news about Boeing, he contacted an old friend who once worked for Boeing’s R&D department. “He can help identify the right people at Boeing to contact,” he said. “Clemson does have and is continuing to build up its assets in Charleston, too.” That includes the Restoration Institute at the former Navy Base in North Charleston, the H.L. Hunley submarine and Clemson Conservation Center, as well as a growing partnership with the Medical University of South Carolina, Ballato said. “Those don’t necessarily relate to Boeing, but we have a presence in Charleston that is starting to grow and bear fruit,” he said. “As a land-grant university, we do have a responsibility to the entire state.”
Small state Economic developers are quick to point out that North Charleston is a short drive from any part of the state — four hours at the most. “We’re already looking at how much it costs to get product there,” Johnson said. “A project of this size is truly going to affect the entire state.” And the Midlands has several shovel-ready industrial sites and available buildings within a 45-minute drive of the Boeing site, King said. The military installations in central South Carolina offer the trained aircraft mechanics that Boeing and other aviation companies will need, he said, and the local universities and technical colleges can supply graduates to the industry. “I can assure you that there are a few more companies in and around the Puget Sound contemplating a move to South Carolina,” he said of the area where Boeing’s Washington facility is located. “I would expect that Boeing will have a supplier symposium in the near future, and perhaps at that time we will have the opportunity to meet these companies,” King said. “In the meantime, we will begin to develop a strategy that will market our region’s assets to these suppliers.”
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SPECIAL REPORT: BOEING LANDS IN S.C.
Boeing’s flight path to S.C. Nearly a decade has passed since Vought Aircraft Industries put South Carolina on a course to becoming a Boeing production site. In less than a century, the company William Boeing began in 1910 in a Seattle shipyard has become synonymous with aerospace and defense innovation and excellence around the world. Now, Boeing’s entrance on the Eastern Seaboard adds yet another pivotal moment to the company’s storied timeline.
Boeing merges with Rockwell aerospace and defense units. The Rockwell units are renamed Boeing North American and operate as a subsidiary.
Boeing selects Vought to build two aft fuselage sections for the 787 Dreamliner, the newest product line of the company’s midsize commercial airplanes.
2004 2003
Vought Aircraft Industries is formed after Northrop Grumman sells its aerostructures division to The Carlyle Group.
2002 2001 2000
1999 1998 1997
1996 The Boeing Co. merges with McDonnell Douglas Corp.
Vought selects North Charleston as the location for a new, 240-acre greenfield site adjacent to Charleston International Airport where it will build sections of the 787.
Boeing moves its world headquarters from Seattle to downtown Chicago.
The company announces it will use four modified 747s, renamed the Dreamlifter, to ferry 787 parts and sections from its global suppliers and eventually on to Everett, Wash., for final assembly.
Alenia North America and Vought Aircraft Industries form Global Aeronautica LLC in a 50-50 joint venture in support of the 787.
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Vought and Global Aeronautica break ground in North Charleston on two adjacent facilities to build and integrate 787 fuselage sections from Vought and suppliers in Italy and Japan.
2006 2005
2009 2008 2 2007 The International Association of Machinists and Aerospace Workers strikes for seven weeks at Boeing’s plant in Everett, Wash., during one of the deepest recessions in U.S. history.
Vought holds grand opening for its new, 342,000-squarefoot facility, and the Dreamliner is featured in a “virtual rollout” in Everett, Wash.
Boeing purchases Vought Aircraft Industries’ entire 787 operation in North Charleston for $1 billion in July.
Boeing purchases Vought’s 50% share of Global Aeronautica.
The Dreamlifter delivers the first 787 major assemblies to Global Aeronautica in North Charleston for integration and then shipment to Everett, Wash., for final assembly.
Boeing announces in October that it will locate the company’s second assembly line for the 787 near its North Charleston operation. Sources: Vought Aircraft Industries, The Boeing Co., Global Aeronautica, International Association of Machinists and Aerospace Workers
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SPECIAL REPORT: BOEING LANDS IN S.C.
Beyond Boeing Officials weigh in on what South Carolina needs to land the big companies, expand the knowledge economy and nurture existing business By Allison Cooke Oliverius Special Projects Editor
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rant Jackson of the Greater Columbia Chamber of Commerce is thrilled Boeing decided to bring its second production line for the Dreamliner to South Carolina. “It is a wonderful thing that the state was able to come together and land Boeing. It will have a tremendous impact in North Charleston and across the state,” said Jackson, the Columbia chamber’s senior vice president of community development. “That said, however, we cannot grow our economy simply on the backs of a Boeing or a BMW once every 10 years. We have to have an integrated economic development strategy in this state.”
Buffalo hunter From the mid-1980s through the late 1990s, South Carolina was a feared economic machine. Jackson said the state’s economic development leaders hunted buffalo and bagged them. Inexpensive land, inexpensive labor and low taxes helped the state secure companies like BMW Manufacturing, Fujifilm, Michelin North America and Bose Corp.
“Those were certainly the days when you went out and tried to attract a BMW or a Boeing — a big company to bring in their business and set up a plant and manufacturing facility. We did it better than anyone in the country, probably,” Jackson said. But since those days, several things happened. Global competition increased, and manufacturers discovered great fiscal advantages in sending business offshore. Competition within the United States also grew. “At any given time, there are about 15,000 economic development agencies around the country chasing about 1,500 economic development projects — not all the size of Boeing,” Jackson said. “But today there are still manufacturing operations (to get). It’s also logistics and distribution centers — big projects. You can grow your economy on those. Unfortunately, for the last eight years, we didn’t have a governor that is particularly interested in that kind of economic development — or any kind of economic development.” The combination of these factors has led Jackson to believe the state’s economic strategy needs to change. “We still need to do the buffalo hunting and land those big ones every five, 10, 15
years. We need to do that, but that’s not the only thing we need to do,” he said.
Existing businesses and the knowledge economy Jackson, who also spends a chunk of his time working with New Carolina – South Carolina’s Council on Competitiveness, believes the new strategy should include paying attention to and nurturing existing businesses. “In any community, the majority of job growth comes from businesses already in their community,” he said. “It may be as simple as ‘I need to get a pothole filled.’ We need to pay attention to those things because they need to grow jobs.” Jackson also joins a host of leaders saying the state must pay special attention to growth of its knowledge economy to create new, higher-paying jobs. Earlier this year, Clemson University economist Bruce Yandle told SC Biz News, “It’s brains that will make a difference for us. States that rank highest in the knowledge economy suffer the lowest unemployment. We are in a brains race, and the states around us are winning.” In November, the Centers of Economic
Agricultural sector looks for ways to grow By Ashley Fletcher Frampton, Staff Writer n order to grow and add jobs, leaders of South Carolina’s agricultural sector say they want a seat at the table with state policymakers, right alongside other big industries. They want help with recruiting and expansion of businesses and marketing and export of S.C. agricultural products, leaders said at the Palmetto Institute’s fourth annual Agribusiness Summit held in November in Charleston. Those steps are part of the sector’s strategy for increasing its economic impact in South Carolina to $50 billion by 2020. A study released in September 2008 by the Palmetto Institute and the Palmetto Agribusiness Council found that the
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economic impact is $34 billion. Expansion of agribusiness in the state is one way to increase the wealth of all S.C. residents, said Darla Moore, founder and board chairwoman of the Palmetto Institute. She said her group’s mission is to increase S.C. residents’ income. S.C. Forester Gene Kodama, speaking at the summit, said the average per-capita income for agriculture workers is $46,000, compared with the average per-capita income for all South Carolinians of about $34,000. According to the 2008 study, agriculture, forestry and associated industries represent 200,000 jobs in the state. S.C. Agriculture Commissioner Hugh Weathers said the addition of $16 billion to the economic
impact of the industry could come from expansions to alternative energy production programs, including biomass. Another focus area is expansion of the portion of money S.C. residents spend on food produced in the state. Consumers’ food expenditures in South Carolina total $7 billion annually, Weathers said. Locally grown products represent less than 10% of that. “We need a bigger market share of that,” he said. Officials said the agricultural sector should focus on exports of its products to other parts of the country, and the world, through state ports. In addition to working with state leaders, Moore said the agricultural sector needs to create
Excellence Council of Chairs formed a new organization with a mission of attracting world-class companies to the state, as well as increasing research-based startups. Paula Harper Bethea, chairwoman of the CoEE Review Board, said the Council of Chairs will advise the state’s economic development leaders and “help reshape our economy to one partially based on scientific achievement and knowledge creation, so that we can increase opportunities for our citizens and better compete in the global economy.” Said Jackson: “What we make is knowledge, and we can monetize knowledge.”
Nuts and bolts For Otis Rawl, president and CEO of the S.C. Chamber of Commerce, the key to higherpaying jobs, nurture of existing businesses and attracting of new industries lies in the nuts and bolts: work force education and taxes. “Making sure we have a skilled work force and letting people know about it is key,” he said. “The chamber is working on a statewide-nationwide marketing plan to educate businesses and site developers across the world that we have an educated work force and we are preparing our kids and retraining our adults and we can fill jobs with good employees.” When it comes to taxes, Rawl said the state needs to re-evaluate Act 388, a sales tax bill that offered homeowners relief from funding of school operations but now leaves business owners holding the bag. In addition, he said the state’s industrial property tax rates are the highest in the country at 3.73%; and the state’s commercial property tax rate is the seventhcontinued on page 28
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a public-private partnership that will work to help advance the industry and speak for its members. The agribusiness industry needs a group similar to SC Launch, the state organization that helps knowledge-based ventures start and grow. Billy Ray Hall, president of the N.C. Rural Economic Development Center, spoke at the agribusiness summit and explained how his organization, which is a public-private partnership, got started 22 years ago to advance rural communities in North Carolina. Moore said the per-acre value of agricultural products produced in South Carolina, at $481, lags behind North Carolina by about $735 and Georgia by $219. She said that shows room for growth. SC
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Upstate Alliance targets four industries By Scott Miller, Staff Writer utomotive, advanced materials, biosciences and energy: Those are the industries to watch. According to a six-month study conducted for the Upstate Alliance, those industries present the best opportunity in the 10-county Upstate for job growth, based on the Upstate’s existing businesses, infrastructure, research and other assets. The alliance has even narrowed down “Top 10” lists of companies in each sector that it plans to try to recruit immediately. The lists were not released, but here’s how the alliance broke down the potential from each sector:
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Advanced materials • Metal fabrication • Optoelectronics/photonics • Advanced textiles Automotive • Diesel power train • Boutique and specialty original equipment manufacturers • Automotive R&D in fuel efficiency, batteries and plug-in hybrid vehicles Biosciences • Medical devices • Biomaterials R&D • Clinical testing and outsources R&D Energy • Energy grid components • Energy systems solutions • Nuclear components • Wind and solar “Some of our recommendations are based on proprietary information we have on these industries,” said Ed McCallum, a principal with the Greenville-based global site selection firm McCallum Sweeney Consulting. “In the next six months to a year, things are going to pick up pretty quickly. Are you going to be ready?” McCallum Sweeney conducted the study along with Avalanche Consulting Inc. and Greyhill Advisors. To attract growth in these industries, the Upstate Alliance asked its investors to help it increase its annual budget by 45%, from about $1.73 million to $2.5 million. The Upstate marketing and economic development organization
is funded with public and private dollars. To be successful, the alliance must increase marketing efforts — within the Upstate and externally — for each targeted industry, said Amy Holloway, president of Avalanche Consulting. That means more industry events, more trips, updated marketing materials and maps detailing the specific assets of each of the 10 counties in the Upstate Alliance. The alliance also wants to hire four managers to lead efforts in each targeted industry — four industry veterans with a Rolodex full of names that will ensure the Upstate gets its foot in the door. “This is what the very best economic development organizations in the country are doing,” Holloway said. The plan will work, Holloway said, because those other economic development organizations can’t boast the same assets, particularly Clemson University. “We need to further involve Clemson in economic development. ... These assets are not found anywhere else in the world,” Holloway said of Clemson’s various research centers. In addition, “Crossover in these industries makes the Upstate unique,” she said. This increased marketing effort will triple the number of looks from businesses that the Upstate receives each year, from 40 to 120. “This is not a cost. This is an investment,” said Upstate Alliance President and CEO Hal Johnson. “I would be extremely disappointed if that number is only 120.” Johnson called this the most targeted strategy the alliance has developed in its 10 years. He also called it the best developed by any such agency in the country. Holloway agreed, noting that “we have worked on a lot of them.” More than 200 individuals, organizations and businesses provided input for this study. For more information on the study, visit www.upstatetargetstrategy.com. SC
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SPECIAL REPORT: BOEING LANDS IN S.C.
Endowed Chairs examine economic growth s South Carolina celebrated the news that Boeing will soon establish a major presence in the Charleston area, the Centers of Economic Excellence Endowed Chairs came together in Columbia to form a new organization with a mission of attracting even more worldclass companies to the state. They also discussed how to increase researchbased startup companies and create more highpaying jobs in South Carolina. The scientists and engineers who have been recruited to South Carolina through the Centers of Economic Excellence program form the membership of the Council of Chairs. In addition to their work at the state’s research universities — the University of South Carolina, the Medical University of South Carolina and Clemson University — these scientists, known as CoEE Endowed Chairs, will lend their talents to the council. There are currently 22 council members, and that number will grow as more scientists are recruited to the state to fill Endowed Chair positions. Through the Council of Chairs, the Endowed Chairs will provide advice and leadership for the state on matters related to science and technology. Growing South Carolina’s science base will
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increase the state’s ability to create high-paying jobs. The council will also work to help guide the overall progress of the CoEE Program and ensure that it is achieving its mission of increasing hightech research and development and industry in the state. “We have created the Council of Chairs to take advantage of the intelligence, experience, creativity and vision that the CoEE Endowed Chairs have brought to South Carolina,” said Paula Harper Bethea, chairwoman of the CoEE Review Board, which provides general oversight for the CoEE. “We are putting those talents to use to help reshape our economy to one partially based on scientific achievement and knowledge creation, so that we can increase opportunities for our citizens and better compete in the global economy.” The Council of Chairs held its first meeting in November. Dr. Richard Swaja, CoEE Endowed Chair in Regenerative Medicine at MUSC, was elected chairman of the council, and Thomas Kurfess, BMW Endowed Chair in Manufacturing at Clemson, was elected vice chairman. “It’s very gratifying to realize how much we can be an asset to the state — how we can have an effect on South Carolina’s future economic success,” Kurfess said. SC
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highest in the nation. “We don’t have a problem on residential property, but we have a big problem on commercial and industrial property, and we have to correct that,” he said. Other factors that will impact the state’s growth include the port expansion’s staying on track so South Carolina is ready when the Panama Canal expansion is complete, and protection of the state’s right-to-work status. “We need to make sure we are a right-towork state and a low-union state,” Rawl said.
Boeing’s message In spite of the work that remains to grow South Carolina’s economy, Boeing’s decision to locate its operation here, bringing with it a $750 million investment and thousands of new jobs, shines welcome light on the state. Rawl hopes this decision will resonate with other businesses considering South Carolina. “I think it (the Boeing announcement) was a wonderful day for South Carolina,” he said. “It’s one of those marquee days from a marketing standpoint and commerce standpoint ... that sends a message to other companies: ‘If Boeing can be there, why shouldn’t we be there?’ ” SC
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AIKEN AND EDGEFIELD COUNTIES: WHERE MANUFACTURERS AND TECHNOLOGY MEET PO Box 1708 Aiken, SC 29802 www.edpsc.org fhumes@usca.edu
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Center for Hydrogen Research
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100,000 sq. ft. “Spec” Building at I-95, Exit 62 East
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generation Michelin North America launches an employee volunteer program to mentor schoolchildren By Scott Miller, Staff Writer Photography by James T. Hammond
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Michelin North America President and CEO Dick Wilkerson (far right) said his isn’t the type of company that writes a check and walks away. Instead, he has challenged his 8,000 employees to make a difference in area schools by mentoring students.
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ue Cleveland Elementary School Principal Karen Chambers recalls sending letters to 70 Upstate businesses seeking volunteers to mentor students. She received two responses. One of them included a financial donation. “I bought books and gave them to the kids because some of them don’t even have books at home,” Chambers said. “But what these kids really need is the time with adults.” Finally, someone called. This fall, Michelin North America Inc. of Greenville launched Michelin Challenge Education, with company employees from all departments volunteering at local schools throughout the Upstate and in Lexington County. At Sue Cleveland, 20 Michelin employees read to students every Friday morning from about 8 a.m. to 8:45 a.m. before going to work. The children’s faces light up when they come into the room, and so do the faces of the Michelin volunteers. “This is a dream of mine,” Chambers said as she watched a group of volunteers read to students.
Open-ended contract Businesses of every size across the state make substantial investments in S.C. schools in different ways, donating money or equipment or time, or all three. Some also open their doors for S.C. high schoolstudentstoshadowemployeesintheirjobs or to serve as interns, S.C. State Superintendent 32
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Jim Rex noted. “What sets Michelin apart here is the level of commitment that this initiative represents,” Rex said. “Potentially every employee could be involved in these schools. It’s really pretty broadly defined in what they are willing to do over time. It’s sort of an open-ended contract with the public schools.” Michelin has said it will be there. The rest is up to the schools. Michelin lets the schools determine the extent of the program, including the curriculum and the hours. Many Michelin volunteers spend their lunch break at the schools or go in before their workday starts. The schedule “is not to suit Michelin; it’s to suit the students,” said Pierre Andreani, a Michelin plant supervisor who is organizing the volunteer effort at Sue Cleveland Elementary. Production has not suffered because employees have been off work, he said. “It is not negatively impacting the business. This is positively impacting the work force of the future,” Andreani said. “We want these students to dream of being science heroes. In the U.S., we put entertainers and celebrities on a pedestal. We want to put science on a pedestal.” Tom Whalen, facility manager of a separate plant that sends 40 volunteers to Fairforest Elementary School in Spartanburg, agreed, saying the impact on Michelin production was never a consideration. “These people are trying to do the right
thing. The work continues; they have to make up the time on their own. The expectations haven’t changed,” Whalen said. “It’s a matter of committing and scheduling. You make up your mind that you want to do this and see what you can do with your business schedule and personal schedule.” That has varied at every school, and the opportunities could grow as Michelin and the schools feel out the program. For Michelin’s part, Andreani had more volunteers than needed. In the schools, financial restrictions have prevented them from implementing many before- or after-school programs, said Stephen Krawczyk, principal of Fairforest Elementary. Michelin’s involvement changes that, he said. “We’re tapping Michelin for a lot of people for a good number of hours. It’s such a testament. Not only do they say that they have those values, but you can tell that they are living with them every day,” Krawczyk said. “Our students see that you can have a very successful, multimillion-dollar company that’s run with a heart. An international company has time for little Fairforest Elementary. It’s humbling to think that we’re that important. “To me, Michelin is throwing down the gauntlet and challenging some other big companies here.” That’s the challenge Michelin North America President and CEO Dick Wilkerson has given his 8,000 S.C. employees. “I believe public education is the key to our
culture. It’s the foundation of our society, the foundation of our economy and the foundation of our democracy,” Wilkerson said.
Orangeburg County... Experience it again for the Àrst time
Making a challenge Wilkerson said it’s usually easier to donate money than time. But to improve an education system that has produced students who typically lag in national testing, financial donations aren’t enough, Wilkerson said. “Michelin is not a company that writes a check and walks away,” he said. “We are the people who roll up our sleeves and get involved. This announcement is about the human capital investment — the time, effort and heart — our employees will provide to improve public education.” So, engineers, researchers, technicians, executives, managers and manufacturing professionals from the tire maker’s eight S.C. facilities will be volunteering at the respective schools in their communities: • East North Street Academy of Greenville (Michelin North America Headquarters). • Ellen Woodside Elementary of Pelzer (Michelin Americas Research Co.). • Grove Elementary of Piedmont (Greenville Manufacturing US1). • Townville Elementary of Townville (Anderson Semi-Finished US2/US8). • Fairforest Elementary of Spartanburg (Spartanburg Manufacturing US3). • Forts Pond Elementary of Pelion (Lexington Manufacturing US5/US7). • E.B. Morse Elementary of Laurens (Laurens Proving Grounds). • Sue Cleveland Elementary of Piedmont (Molds US6, Greenville Manufacturing Prime). “These are our communities,” Wilkerson said. “In many cases, these are our children, and certainly they are the next generation of leaders. It is clear to us that we must actively support our public school system if we wish to secure their future.” Rex hopes Michelin is setting an example that other S.C. businesses will follow. “In many cases, I think writing a check is easier,” he said. “You can’t overstate the importance of having Dick Wilkerson at the top saying that this is a priority, a commitment of the company. He’s the catalyst of this thing.” Private support such as this is becoming more important as public schools lose state dollars and the economy forces more schoolchildren into poverty. For the first time, more than 50% of the 700,000 students in S.C. schools are on the state’s free and reduced
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IKEA Distribution Center (right) and Target Import Warehouse (left) Savannah, Georgia The Target Import Warehouse is a 168 acre site with 1,050,000 square foot distribution center under one roof. IKEA Distribution Center is a 61 acre development consisting of a 780,000 square foot Phase1 building and a 780,000 square foot building pad for future development.
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Many Michelin volunteers spend their lunch break at the schools or go in before their workday starts. lunch program, meaning they’re at or below the poverty level, Rex said. He also knows that this support is a twoway street and that businesses want a return on their investment. That’s why schools are working with state and local chambers of
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commerce, among other business groups, to craft the curriculum to suit their work force needs, he said. “We’re asking the business community what they can do with the schools in their community, but we’re also asking them what
they need,” Rex said. “One of our major initiatives is to get businesses and schools joined at the hip,” he added. “Businesses are telling us what the job needs will be in the future, and we’re working on the curriculum.” This is the future of education, said Dick Riley, a former S.C. governor and U.S. Secretary of Education. Riley can attest to the impact community involvement can have on a child’s future. He can pinpoint the spark that fueled his own lifelong learning. He was in first grade and his mother was serving as a chaperone as his class at Donaldson Elementary School was visiting a local fire station. “I’ll never forget that,” Riley said. Since then, Riley has dedicated his life to the advancement of education. He has achieved that goal through his many roles in public service, which was capped by his appointment in 1992 by President Bill Clinton to serve as U.S. Secretary of Education. That’s the past, he said; this is future. “The school of the future is one that serves as the center of community learning,” Riley said. “If this is true, then you have to have people from the community coming into the school to volunteer.” SC
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est Places to Work in South Carolina is an initiative between SC Biz News LLC — publisher of the Charleston Regional Business Journal, the Columbia Regional Business Report, GSA Business and SCBIZ magazine — and Best Companies Group. The focus of the program is to find and recognize South Carolina’s best employers. In addition to the positive impact the award has on employee relations and recruitment, the driving force for companies to join in the program is the remarkable impact workplace improvements can have on their bottom line. Best Companies Group, assisted by the workplace excellence consulting firm ModernThink LLC, conducts a simple, yet thorough, assessment of participating companies. Companies that participate are involved in a two-part process. In part one, the employer completes a questionnaire; in part two, employees of the company complete a survey. The collected information from both assessments is combined to produce a detailed set of data enabling the experts at ModernThink to determine the strengths and opportunities of the participating companies. ModernThink ranks the workplaces based on this data and then creates the Assessment Findings Reports that are returned to each participating company. The goal of the Best Places to Work in South Carolina campaign is to raise the bar for our state’s employers and create the kind of excellence and employee satisfaction in the workplace that will attract talented people for years to come. We are convinced that the real value in participation in the program is not whether a company wins an award but in the employee survey feedback. The cost an individual company would have to pay if the analysis were done independently would be considerably more, as economies of scale apply when Best Places Group conducts a survey with a large number of participants from the same state. And the employee feedback, which can be used to improve and streamline an already successful company, is, as they say, priceless.
Sponsored by
The program, launched in 2006, is open to all South Carolina organizations that meet the eligibility requirements. Companies must: • Be a for-profit or not-for-profit business or government entity. • Be a publicly or privately held business. • Have a facility in the state of South Carolina. • Have a minimum of 25 employees in the state of South Carolina. • Must be in business a minimum of one year.
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For more information, visit www.bestplacestoworksc.com.
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dward Jones understands that a spirit of collaboration works better than one of competition among employees. “There’s a strong culture of mentoring and helping people who are new,” said Wendell Jones, regional leader for the S.C. branches of the national investment firm. “If people take care of each other, it helps the new people, then that helps their clients, then that helps the business.” And helping the business is especially important to Edward Jones employees. Since the company is privately owned, employees are part owners and share profits from the day they start working at the firm. “They have a financial stake in the firm,” Jones said. “You think differently if you’re an owner rather than an employee; it’s not just your job, it’s your business.” Although each individual branch is part of the bigger company headquartered in St. Louis, each of the S.C. branches — there are more than 100 — has the freedom and autonomy to address a client’s individual needs. “The big advantage is that our focus is on doing the right things for our clients, and we are focused on the individual client,” Jones said. This comprehensive mindset of being focused on the client and on employees working together permeates the working environment. “It really shapes the way we do business every day,” Jones said. “We do the right thing.” ACES PL
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ith a flurry of growth over the past several years, accounting, tax and consulting firm Elliott Davis LLC remains focused on its mission: to provide clients the solutions needed to achieve their objectives and offer its people rewarding opportunities. Recently established offices in Charleston, Charlotte and Myrtle Beach have added to Elliott Davis’ depth and breadth of talent. Growth and advancement of that talent is a primary goal of managing shareholder Rick Davis. “We recognize that clients and employees are individuals,” Davis said. “With that, each person has unique needs that require customized, personal attention. I think that’s what sets Elliott Davis apart — we’re not one-size-fits-all.” That personal attention comes in the form of one-on-one coaching for recent college recruits in order to maximize their success. A clearly defined career path with numerous internal and external training and development opportunities adds to the overall employee experience. In addition, whether it’s the fast track or a reduced workweek, Elliott Davis offers flexible scheduling options that help staff members advance their careers at a pace matching their personal needs. “I don’t just want to finish my job at the end of the day; I want to get smarter doing it. Elliott Davis is an environment where I can grow,” said Leah Maybry, an Elliott Davis senior manager. By offering a wide range of programs such as flexible scheduling, a 36 SC BIZ | w w w. s c b i z m a g . c o m
Managing shareholder Rick Davis, CPA
college savings plan and a Women in Leadership initiative, employees have an a la carte selection of what suits them and their goals. “We want our employees to aim high and soar,” Davis said. “We strive to give them the tools to help them achieve their ambitions.”
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for more than 25 years. The company emphasizes taking time to match the right job with the right person, knowing that happy employees are more productive and more likely to stay. “AgFirst values each employee, and we demonstrate that by providing training and benefit programs that have resulted in a workplace with high morale, many long-term employees and a strong team spirit,” said Andy Lowrey, president and CEO. “Our people are highly dedicated and talented with a strong connection to both the company and its customers.” Said Francis: “We have excellent programs and benefits, such as 401(k), tuition reimbursement, generous annual and sick leave plans, health insurance and more. But our greatest lesson learned is that it all boils down to how people are treated. We continue to work with our managers on ways to recognize employees, bringing fun to the workplace, teamwork and cohesion. The programs are really the icing on the cake.” ACES PL
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art of the Columbia community since 1916, AgFirst Farm Credit Bank has grown as Columbia has grown. With assets exceeding $29 billion, AgFirst is the largest financial institution headquartered in South Carolina. The bank is part of the Farm Credit System, a nationwide network of agricultural lenders and the largest single lender to agriculture in the United States. Its customers include 22 farmerowned Agricultural Credit Associations serving 80,000 borrowers in 15 states and Puerto Rico. “AgFirst’s mission is to enable our customers to be the lender of choice to agriculture and rural America,” said Steve Francis, vice president of human resources. “By designing benefit programs that meet employees’ needs and enable them to achieve their personal and professional goals, we’re ensuring the satisfaction of our customers. It’s a win-win situation for everyone.” Many of AgFirst’s 300-some employees have been with the bank
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and Lexington counties. In the Upstate, Palmetto Health jointly owns and operates Baptist Easley Hospital with Greenville Hospital System University Medical Center. That 109-bed hospital provides more than 35% of the care for Pickens County residents. The latest technology and treatment protocols go hand-in-hand with quality patient care. Palmetto Health was created in 1998 from the union of two existing hospital systems — Baptist Healthcare System and Richland Memorial Hospital — both of which had almost a century of service to the community. The two came together to preserve nonprofit health care for the citizens of the communities served, finding that the values and visions of the two systems were aligned. The system now operates with one governing body, one CEO and a single corporate structure for human resources, finance, information technology and the like, reducing duplication and administrative costs. w w w. s c b i z m a g . c o m | W i n t e r 2 0 0 9
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tanley Inc. is a leading provider of information technology services and solutions to U.S. defense, intelligence and federal civilian government agencies. Founded in North Charleston in 1966, Stanley offers customers systems integration solutions and expertise to support their missionessential needs at any stage of program, product development or business life cycle. Its five service areas include systems engineering, enterprise integration, operational support, business process outsourcing, and advanced engineering and technology. Some examples of its work in South Carolina include the Charleston Passport Center, where employees provide a variety of services including personalization of passport books and provision of critical logistics services and network systems administration. Stanley’s work with the State Department began in 1992 with a $12 million contract. Stanley has been awarded the contract four times since 1992, most recently in 2008. The latest contract has a value of $570 million. Stanley also supports the U.S. Space and Naval Warfare Systems Center in Charleston with a variety of programs aimed at supporting and protecting American soldiers, sailors and Marines. The company strives to foster a culture that includes opportunities for employees to enjoy a career — not just a job. The company continues to introduce new programs and initiatives each year in support ACES PL
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eadquartered in downtown Columbia, Seibels, Bruce & Co. is one of the oldest operating businesses within the city limits. The company provides property and casualty insurance products and services and has been “building relationships since 1869.” This applies to relationships with clients as well as relationships with employees. Seibels understands the importance of creating a caring culture and fostering the creativity and innovation of its staff. Many of Seibels. Bruce & Co.’s employees have been with the company for more than 15 years and enjoy its high morale and positive work environment. Employees also can take advantage of a wide range of perks and benefits, such as health insurance, a 401(k) with a company match, flexible spending accounts, free parking, birthday gift cards, tuition reimbursement, business casual dress and celebration picnics. “This year was our first time entering the Best Places to Work competition, and we are excited that we have made the list,” said Brittany Singleton, human resources. “Our employees take great pride in our company, and it boils down to the way people are treated here. One thing that makes us unique is that there is a strong sense of cooperation and kinship that people feel. “It’s a great place to work. The friendly smiles and helpful attitudes offer a visitor a true reflection of the overall atmosphere.” 38 SC BIZ | w w w. s c b i z m a g . c o m
of its employees One current program is its employee stock ownership plan. The stock ownership benefit is open to all employees from their first day on the job, and discretionary contributions are made annually at no cost to employees. Employees are 100% vested in the employee stock ownership plan after three years of employment.
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aking sure all employees know they are valued is of great importance at Johnson & Johnson Inc. That is why the Mount Pleasant-based insurance company has cultivated a culture in which employees not only enjoy a challenging career but understand how they contribute to the success of the company and how they may grow within the organization. Employees are kept apprised of how the organization is performing and where it is headed. One way in which employees are keenly aware of the company’s success is through its profit-sharing program, through which 15% of the company’s net profit is shared monthly with all employees. An integral part of the company culture includes Johnson & Johnson’s dedication to education. The company pays for all employees’ completion of 16 hours of education courses annually. Promotion from within and career ACES PL
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tracks are available for continued growth of the employees and the company. Respect, communication, compassion and camaraderie are a part of daily activities, as employees work as a team to accomplish goals. Employees are expected to work hard, but they are recognized regularly for their work. They are rewarded with four events each year, plus tickets to local sporting events, quarterly departmental social events and birthday dinners with the board. The company encourages employees to improve their quality of life and offers opportunities for them to obtain a worklife balance — such as a 35-hour workweek and an on-site gym and expansive employee lounge. And it also recognizes the need to give back to the community and has adopted several charities.
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ynTerra pivots its name on its employees. “The ‘syn’ in SynTerra speaks to the powerful synergies that emerge when talented, knowledgeable people collaborate to develop solutions to our clients’ business challenges,” said President Mark Taylor. This environmental engineering firm based in Greenville puts a lot of stock into its employees, trusting them to perform up to standards and respecting that they will get their job done. Relationships are central to SynTerra, among employees and with clients. Each client is different and is treated that way. “We so deliberately tailor the way we do business to fit their cir40 SC BIZ | w w w. s c b i z m a g . c o m
cumstances and needs,” Taylor said. SynTerra specializes in environmental studies, design and management for industry, government and commercial clients. Typical projects include regulatory compliance, brownfield redevelopment, wetlands assistance, civil engineering infrastructure and hydrogeology. The company’s clients are a diverse group, including small specialty chemical manufacturers, large mining and pulp and paper facilities, local governments, the S.C. National Guard and the S.C. Department of Transportation. Trust and collaboration among employees has become the cornerstone of each project as well as the company.
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elect Health of South Carolina has been selected for the second year in a row as one of the Best Places to Work in South Carolina. “We are extremely honored to be chosen again as one of South Carolina’s Best Places to Work,” CEO J. Michael Jernigan said. “This award demonstrates our continued commitment to providing the best work experience for our associates, and we continue to make their satisfaction our No. 1 priority.” Select Health’s award-winning wellness program, SelectWellness, continues to score high with employees. The program provides unique opportunities for the company’s employees to become healthy, including participation in weight loss and walking programs, health and wellness luncheons with nutrition experts, and midday workday exercises classes such as yoga and pilates. The program also recently won its second Gold Well Workplace Award from the Wellness Council of America; that award honors workplaces that make employees’ health and wellness a priority. Along with providing employees with a comprehensive and competitive benefits package, the company also continues its strong commitment to diversity. It accomplishes this by recruiting and training employees for all areas of the organization that are reflective of the diversity of its membership. Select Health, incorporated in 1995, was licensed as a health
maintenance organization in 1996 by the S.C. Department of Insurance. Later that year, the company contracted with the Department of Health and Human Services to offer First Choice, the state’s first Medicaid managed care plan. Select Health is accredited by the Utilization Review Accreditation Commission and is a wholly owned subsidiary of AmeriHealth Mercy.
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Best Places to Work in South Carolina is an annual initiative between SC Biz News LLC, publisher of SCBIZ, and Best Companies Group. Visit www.bestplacestoworksc.com for more information or details about how you can get involved in the awards program.
The law firm of McAngus Goudelock & Courie is proud to be named one of the Best Places to Work in South Carolina. Experience. Service. Results. mgclaw.com Columbia Charlotte Charleston Greenville Raleigh Myrtle Beach w w w. s c b i z m a g . c o m | W i n t e r 2 0 0 9
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lover Community Bank was founded in 1987 by a group of community leaders who decided the Clover area needed a community bank to serve local citizens and businesses. The bank now employs 45 people, and its range of services has grown to include a variety of deposit and loan products and services for commercial, individual, civic and nonprofit entities. The bank’s success in the community lies in its ability to be flexible and make “custom-fit” and quick decisions for business customers. “We reach out to the community to ask their needs and develop products to fit those needs,” said President and CEO Gwen M. Thompson. “We give back to the community with monthly projects for those in need.” The company also invests in its employees. “It is the belief of management that if your employees are taken care of, they will take care of your customers,” Thompson said, adding that the company’s leadership, including the board of directors, is committed to the belief that the employee is the heart of the organization. “Everyone is given the opportunity to advance,” Thompson said. “One of our most cherished core values is ‘family first.’ When an employee has a family crisis, all employees rally to give that employee the support and confidence that all is well with the bank family so that the personal family can be taken care of. Our culture is one where the ACES PL
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hrough KeenanSuggs’ “Refer-a-Friend” incentive program, employees have a chance to land a new car if a referral results in a new account. This is just one of the ways KeenanSuggs offers incentives and rewards to its employees. “We recognize our employees when they reach certain years of service. They receive a personal plaque as well as a monetary award that coordinates with their years of service,” said President and CEO Thomas E. Suggs. KeenanSuggs was originally created in 1949 by Russell Rooney as the Rooney Agency and has grown to be a full-service insurance, risk management and employee benefits firm with more than 70 employees. Representing more than 60 insurance companies, KeenanSuggs operates with the goal of finding solutions to help clients be successful. The company has set three core values: relationships, service excellence and professionalism. “We manage our firm by these three values, and it translates into a great place to work and be a client,” Suggs said.
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John Brigman (from left), vice president; Tommy Suggs, president and CEO; Bob Graham, vice president; Andy Goss, vice president; and Mitch Watson, COO/CFO.
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and our employees affords us the opportunity to look beyond our traditional business and continue to grow and expand to meet the needs of a dynamic marketplace.” The company’s growth is a key factor in its being able to attract and maintain quality employees. On top of that growth, the company’s ability to offer a cohesive and secure environment is a major benefit of working at Environmental Express, Fitzpatrick said. The company puts employees first and shares its success with employees through aggressive pay rates, strong benefits, companywide bonuses and a profit-sharing program. In addition, not only does Environmental Express give back to the local community and encourage employees to do so as well, but it offers a positive, family-like community atmosphere at work that is focused on equality and fairness.
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ongleaf Holdings USA LLC of Spartanburg is the parent company of Longleaf Development, a real estate company; RJ Rockers, a microbrewery; and Total Product Destruction, a company that specializes in secure product destruction and recycling services. The current company grew out of Shred First, which was started in 1997 and sold in 2006. From that startup, company leaders began to develop a management system that would allow them to operate multiple companies through a central office. Through the system, employees are given a clear focus and set goals, and they are given the training and authority to make decisions on their own. “We have created a workplace that enjoys exuberant fun and happiness built on servant leadership and accessibility that inspires trust
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and loyalty and encourages teamwork,” said founder Nick Wildrick. “We inspire each other to participate in adding to the unique environment that will encourage each of us to perform at a high level while enjoying work.” In addition, Wildrick said the company has created an environment that encourages continual improvement through self-motivation, personal development, team unity and vision. The result is a staff that is passionate about its work, which translates into the ability to provide customers with a secure, reliable and timely response to their needs. Since being established in 1997, the company has received numerous accolades and has twice been named to Inc. Magazine’s list of the top 500 fastest-growing companies.
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bank at First Reliance Bank,” said President and CEO Rick Saunders. “Our associates deliver this through their high level of commitment to customer service. They are why we have a 98% customer satisfaction rating and 73% of our customers have referred family members, friends or business associates to our bank.” First Reliance remains committed to providing a positive experience to every customer and fulfilling its mission “to make a positive difference in the lives of our customers and earn their loyalty.” Founded in 1999, First Reliance Bank is ranked as one of the top 20 banks in South Carolina, with assets of $695 million and 145 employees. The bank’s growth rate is attributed to its strategy of convenience, service and innovative products delivered by highly engaged associates. ACES PL
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yle Evans is quick to point out that the employees at C.F. Evans & Co. Inc. are a large part of the company’s success. “Our people are our greatest asset, and we strive to create a culture in which our employees can thrive,” said Evans, an analyst with the family-owned contracting company. This culture includes respect for the importance and commitments of family and a supportive environment that encourages employees to fulfill their potential and enjoy what they do on a daily basis. The company has committed to core values that emphasize integrity, excellence, superior service to clients, civic responsibility and always doing the right thing. “Our business is founded on relationships and integrity, and more than anything else, the partnership and team experience that owners and clients enjoy while working with C.F. Evans are what set the company apart,” Evans said. “That experience is driven by a commitment embraced by all C.F. Evans employees to provide world-class customer service by building quality relationships, quality teams and quality projects. “We take this mission very seriously, and it extends throughout our entire organization and in everything we do. Employees at C.F. Evans trust each other and share an enthusiasm and pride for the work our company performs.” C.F. Evans & Co. was founded as Evans Construction in 1948 by Clarence Felder Evans and his cousin Fred Evans. The cousins even-
tually amicably dissolved their partnership in 1959, but the business continued, under the current name. The company is now run by Clarence Evans’ son Johnny Evans, who has been president of the company since 1987. C.F. Evans provides an array of contracting services. Past projects include multifamily and student housing, senior living communities, and industrial and commercial ventures. w w w. s c b i z m a g . c o m | W i n t e r 2 0 0 9
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irst Community Bank’s vision is to be the provider of choice for financial solutions to local businesses, entrepreneurs and professionals in the markets it serves. First Community employees understand this vision and it is their efforts that have made the bank successful. Although employees have different positions at the bank, each is equally important and critical to the bank’s success. As First Community works to achieve its vision, it remains focused on the three core values that have existed since the bank was formed: ensuring quality and integrity in every endeavor; maintaining a passionate focus on the customer experience; and upholding mutual respect for employees and their role in the bank’s success. These core values drive the performance of each of the bank’s employees every day. It’s not all about banking, though. First Community is committed to giving back to the community and encourages employees to volunteer their time and talents. Over the past year, employees have volunteered with important causes and organizations including the American Cancer Society Relay for Life events, Harvest Hope Food Bank and Families Helping Families. First Community was founded in 1995 and has 11 banking offices in the Midlands.
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Buist Moore Smythe McGee P.A.’s executive management team is Charles P. Summerall IV (from left), managing director Henry B. Smythe Jr. and Charles J. Baker III.
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n 2008-2009, the S.C. Education Lottery met several major milestones. It reported more than $1 billion in sales, and it transferred more than $260 million for educational programs statewide, bringing total contributions to the Education Lottery Account to more than $2 billion since 2002. â&#x20AC;&#x153;Our family of employees here at SCEL is the No. 1 reason for our continued success and growth,â&#x20AC;? said Claire Yarborough. â&#x20AC;&#x153;We have a world-class lottery thanks to our world-class employees. We have immense individual commitment to a group effort here at SCEL.â&#x20AC;? Yarborough added that the S.C. Education Lottery is unique in many ways, most evident in its close-knit family environment that en-
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compasses its TEAM philosophy: Together Everyone Achieves More. â&#x20AC;&#x153;Branching off of our TEAM philosophy, we practice an open-door policy here at SCEL,â&#x20AC;? Yarborough said. â&#x20AC;&#x153;SCEL regards its employees as important assets and respects each employee as an individual.â&#x20AC;? In addition, she said, â&#x20AC;&#x153;Our employees believe in what they are doing; and for us all, it is about the transfer to education and therefore a better tomorrow. Every day, you come to work knowing that you are offering the opportunity for every child in South Carolina to have a better education and to further the education of adults as well. With over $2 billion transferred to education, what we do here every day at SCEL has greatly impacted the lives of our fellow South Carolinians.â&#x20AC;?
NOW SERVING ALL OF SOUTH CAROLINA September 29 - October 12, 2008
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Pastides: An insider with a global vision
Shocking SCE&G electric rate increase proposal November:
UP
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by Francis B. Allgood fallgood@gsabusiness.com
Acquisition helps Upstate recycling firm grow.
By James T. Hammond jhammond@scbiznews.com
Commercial customers
wo agencies involved in economic development are bringing accountability and focus to the forefront.
H
arris Pastides took office Aug. 1 as the University of South Carolinaâ&#x20AC;&#x2122;s new president, riding a wave of success he helped shape with former President Andrew Sorensen. He can point to record levels of private funds raised in the past year, the largest freshman class in the schoolâ&#x20AC;&#x2122;s history enrolling this month and likely another record average achievement level by that class of 3,850 students. And now he has another milestone to tout: During his tenure as vice president for research and health sciences, $200 million was raised in annual external research funding for the first time in the universityâ&#x20AC;&#x2122;s history. Pastides played a major role in that campaign. Pastides Pastides now finds himself in the spotlight, with the expectation that heâ&#x20AC;&#x2122;ll continue the string of successes he helped create â&#x20AC;&#x201D; in a sense, heâ&#x20AC;&#x2122;s competing with his own record.
Industrial customers
January 2009:
The Greater Greenville Chamber of Commerce has unveiled a new brand that coincides with a new mission and vision. The Upstate Alliance has also released
UP
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UP
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Commercial customers
Industrial customers
See more UPFRONT PAGE 2
In Focus
Bon Voyage
a new strategic plan to enhance its program of work. Both initiatives seek to clarify economic development objectives and brand the organizations against other regions. â&#x20AC;&#x153;If I look back five years ago, we were kind of fresh off the problem between the chamber and (Greenville) County Council,â&#x20AC;? recalls Ben Haskew.
What Upstate, Chattanooga learned from VW courtship. PAGE 13
Spotlight
Jerry Smithâ&#x20AC;&#x2122;s exporting business grew by 48% last year, and he expects to see a double-digit increase this year too. PAGE 8
SEE OUR SPECIAL PULL OUT SECTION
Signs of the times?
September 1 - 14, 2008 â&#x20AC;˘ www.charlestonbusiness.com by Richard Breen
PAGE 21
INSIDE
To subscribe IntoFocus: GSA Business call (843) 849-3116 Health Care & Insurance
In vitro and fertility clinics are family business. PAGE 19
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At Work ....................21 Money Matters .........24 People in the News ...25 Calendar ...................26 Leads .......................27 News Briefs ..............28 Viewpoint..................30
Tri-county hospitalizations for childbirth More tri-county residents are hospitalized to have babies than for any other reason.
Berkeley Charleston Dorchester County County County Source: Market Facts 2008
At work
Silvia Johnson tests chemical products in the lab at MeadWestvacoâ&#x20AC;&#x2122;s Specialty Chemicals division in North Charleston. (Photo/Renee Lyons)
By Scott Miller smiller@scbiznews.com
Director of MUSCâ&#x20AC;&#x2122;s sickle cell clinic helps hundreds of children manage disorder. PAGE 27
MeadWestvaco Corp. might have sold its North Charleston paper mill, but it continues to invest in the lesser-known chemicals plant next door, its MWV Specialty Chemicals division. see MEADWESTVACO, page 12
To subscribe to the Charleston Regional Business Journal, call (843) 849-3116 www.charleston business.com
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P
atriarch Partners has a history of pulling companies off the scrap heap, of resurrecting them from bankruptcy. The New York-based investment firm is doing so with American LaFrance and intends to follow suit with Protected Vehicles Inc. The two companies could become roommates in Summerville. In all, Patriarch has a $6 billion portfolio of about 70 companies. â&#x20AC;&#x153; â&#x20AC;&#x2DC;Dust to diamondsâ&#x20AC;&#x2122; is our theory,â&#x20AC;? Patriarch owner and CEO Lynn Tilton said after a bankruptcy hearing on the purchase of PVI last month in Charleston. A judge approved Tiltonâ&#x20AC;&#x2122;s $6 million bid for PVI af-
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City to regulate roadside vendors By Ashley Fletcher Frampton
Upfront ......................2 List: Laser Eye Facilities ..................... 22 List: Home Health Care Agencies .................... 24
At work....................27
aframpton@scbiznews.com
hether theyâ&#x20AC;&#x2122;re selling fresh shrimp or freshly made tacos, roadside vendors are likely to become a rarer sight along the roads of North Charleston in the coming months. North Charleston City Council is cracking down on EXECUTIVE the businesses, which counSUMMARY: cil members say are unsightly New rules will and dangerous. Some also require transient are bothered that the vendors businesses to have avoided fees that fixed have permits and businesses must pay. property ownersâ&#x20AC;&#x2122; The city is nearing final permission. approval of rules intended to prevent vendors from setting up shop wherever they please â&#x20AC;&#x201D; sometimes in see STANDS, page 11
INSIDE
olumbiaâ&#x20AC;&#x2122;s downtown commercial real estate market shows healthy vital signs, but can it consume the supersized meal that looms ahead: EXECUTIVE the space being vacated by SUMMARY SCANA? Real estate brokers Recent analysis indicates are bracing for the continued strength in the impact of 600,000 downtown market. which has been seeing demand for its trades dwindle. square feet of availâ&#x20AC;&#x153;At the moment, itâ&#x20AC;&#x2122;s the able office space. itâ&#x20AC;&#x2122;s$6.95 ever been,â&#x20AC;? said Price Inside: $1 billion in construction. PAGE 14 August/September 2008 best
projects from six entities. This is saving the construction industry,
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see COMMERCIAL, page 7
389 Johnnie Dodds Blvd, Suite 200, Mt. Pleasant, SC 29464
By16 Scott Miller See Charticle page
The right chemistry W
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In spite of an economic downturn that is hammering the state
and nation, the Columbia region can boast $1 billion in building Susie VanHuss puts retirement on hold to lead the Central Carolina Community Foundation in a new direction and find her replacement. PAGE 23
3,707
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By James T. Hammond jhammond@scbiznews.com
see PVI page 15
1,787
By Mike Fitts
September 1, 2008
GSA Foreign Manufacturers
Leading Off .................3 In Focus: Manufacturing ..........13 List: Largest Employers ...............14 List: Industrial Suppliers .................18
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SCANA leaving downtown in flux
Stories by Holly Fisher Photos by Chris Smith and Paula Illingworth
Things are looking different at GSA Business, the Volume 14, No. 18 â&#x20AC;˘ $2.00 business journal for Greenville, Spartanburg and Anderson. As you can see, our cover has been reconfigured, with new colors and a new layout. But as you look inside, you will find many more changes, additions and improvements. For a full explanation and guide to the redesigned GSA Business, please turn to Page 4.
see SIGNS, page 7
Economic development hinged to future of railway system PAGE 17
389 Johnnie Dodds Blvd, Suite 200, Mt. Pleasant, SC 29464
INNOVATORS
PVI now part of $6 billion company
rbreen@gsabusiness.com On a rail As new shops come to downtown Greenville, tensions have once again bubbled up between supporters of independent businesses and the chains that want to join in the districtâ&#x20AC;&#x2122;s redevelopment.
Construction equipment dots the landscape of what will be the home of The Gervais & Main tower, across the street from the Statehouse in Columbia. The 17-story tower, being constructed by Holder Properties of Atlanta, will offer more than 400,000 square feet of office space. (Photo/Brett Flashnick)
INNOVATORS
Something old is new, for you
see PASTIDES, page 10
At Work
see MISSIONS, page 11 Roger Quesnel sits outside his North Main Street restaurant, whose sign has drawn attention from neighbors.(Photo/S. Kevin Greene)
MASC chief looks back on years of helping cities.
When your focus is local and statewide we have the publications to serve your business decision making needs.
August 25 - September 7, 2008
Upstate Alliance, Greenville chamber redefine missions
GOING GREEN
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Upfront .......................2 In Focus: Architecture, Engineering & Construction .............13 List: General Contractors .............17 At Work ....................23
Marketing Matters ....24 People in the news ...26 Business Digest ........27 Leads .......................28 Calendar ...................29 Viewpoint..................30
See a sampling of construction projects under way in the Columbia region. PAGE 18
South Carolinaâ&#x20AC;&#x2122;s developers take steps toward green building
Wave of development Waterfront communities to transform lower PeeDee
Back to the future Vacant textile mills ďŹ nding a new purpose as homes, ofďŹ ces
Special Section: South Carolina Under Construction Pullout Section: INClusion The power of diversity in the workplace
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Civil rights, environmental law Carroll on Work ........28 Marketing Matters ...29 Leads ......................35 Calendar ..................37 Viewpoint.................38
Legal groups open in Charleston, Page 8 Charleston County online system gives contractors way to schedule same-day inspections of their work. Page 14
CHANGE SERVICE REQUESTED 389 Johnnie Dodds Blvd, Suite 200 Mt. Pleasant, SC 29464
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{
Itâ&#x20AC;&#x2122;s not easy being green
This American green tree frog (Hyla cinerea) was photographed in Hell Hole Swamp, which is part of the Francis Marion National Forest. (Photo/Kim McManus)
}