2010 SC Biz 4 by SC Biz News

Winter 2010

Haley’s turn

After historic win, S.C.’s new chief executive walks into budget ﬁrestorm

Economic forecast Signs point to slow but positive growth in 2011

Special Section Best Places to Work in S.C.

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Contents VOL.4, ISSUE 4

CEO and Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110

Winter 2010

COVER STORY

Haley’s turn A big state budget hole could derail any efforts by Gov.-elect Nikki Haley to impose her agenda at the Statehouse.

Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3141 Special Projects Editor - Allison Cooke Oliverius aoliverius@scbiznews.com • 843.849.3149 Senior Copy Editor - Beverly Morgan bmorgan@scbiznews.com • 843.849.3115 Publisher, Columbia Regional Business Report Bob Bouyea bbouyea@scbiznews.com • 803.401.1094, ext. 204 Staff Writer - Mike Fitts mfitts@scbiznews.com • 803.401.1094, ext. 204 Staff Writer - James T. Hammond jhammond@scbiznews.com • 864.235.5677

Cover and contents photo by Renee Ittner McManus RIM Photography rimphotography.com, 803.622.4054

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FEATURE 20

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2011 Economic Forecast

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Check out the 25 companies that made this year’s Best Places to Work in S.C. list.

SC BIZ | w w w. s c b i z m a g . c o m

Wide open

S.C. Ports Authority leaders hope the Panama Canal’s expansion will open the ﬂoodgates to Far East trade Page 42 A P U B L I C AT I ON

OF SC BIZ NE WS

Photo/Panama Canal

Authority

Ports, Logistics & Distribution in South Carolina

Viewpoint

South Carolina needs two senators on its side

epublicans are understandably in a works and what doesn’t in state government.. celebratory mood after big victories The answers rarely fit easily into ideologicall in elections countrywide and the evo- pigeonholes. lution of the South into a purely “Red State” You can hardly find a better example off region. the perils of the promotion of ideology overr That’s certainly true in South Carolina, critical economic goals than U.S. Sen. Jim De-where the political divisions now seem to Mint’s decision to put federal funding for thee be mainly between moderately conservative Army Corps of Engineers’ Charleston Harborr Republicans and those who want to “double deepening study further down his priority listt o down” on inflexible positions than his personal crusade to based on a strict interpretation kill congressional earmarks. Without both our of right-wing ideology. DeMint, R-S.C., has by that nents to retaliate by stalling the funding of our Let’s start on a positive note decision put the state’s eco- harbor study. Politics is a contact sport, and senators going by congratulating Gov.-elect nomic future in serious peril. everybody gets to play, not just DeMint. after funding as By now, it has been widely explained in the Nikki Haley on her success in Without funding for the study, the recent election. We should the Corps of Engineers cannot national media that earmarks are only about their top priority, all wish her well and hope she be tasked to deepen Charles- 1% of the federal budget and their eliminais as successful in governing as ton Harbor, a project needed tion would just mean concentration of more we could ﬁnd she was in running for office. to accommodate the flood of decision-making power in the hands of fedourselves in even super-sized containerships eral bureaucrats rather than our elected repDespite all the slings and arrows launched during the that will head to the East Coast resentatives. Yes, there’s plenty of waste in the deeper economic campaign, Haley really has a through the Panama Canal af- earmark system, but that calls for earmark reblank slate to work with: She ter the widening project for form, not elimination, which will have virtutrouble than we ally no impact on the deficit or overall governcan choose to be pragmatic in the canal is complete. are in now. her policy positions and colThat’s just a few years away. ment spending. DeMint is undoubtedly seen as a hero laborative with members of We are already behind other the General Assembly, or she states in moving forward on by some South Carolinians, but he’ll be my can choose the more perilous path of squaring this critical need, and without both our sena- hero when he convinces me that he is putting off against legislators based on rigid ideologi- tors going after funding as their top priority, South Carolina’s needs first and his personal cal viewpoints, much as her predecessor did we could find ourselves in even deeper eco- political ideology second. for eight years. nomic trouble than we are in now. If she takes the more promising path, she DeMint’s assurance that some other way will find receptive legislative leaders in her will be found to come up with the funds offers own party whose policy views extend well little comfort. By playing the role of tea party Bill Settlemyer beyond the tiresome “low tax, limited govern- hero on this issue, he’s inviting political oppo- bsettlemyer@scbiznews.com ment” mantra. In recent years, for example, the General Assembly’s Republican leadership has successfully introduced and passed innoNEW SUBSCRIBERS: vative legislation that promotes stronger partSubscribe online at nerships between our research universities SCBIZ reaches thousands of South Carolina’s top www.scbizmag.com or call and the state’s economic development efforts. decision-makers. Add your name to the list by 843.849.3116. Other measures support capital investment in ordering a print subscription to SCBIZ. our state and meet other critical economic deYour subscription also includes SCBIZ Daily. Deliv- CURRENT SUBSCRIBERS: velopment needs. Change your address online Regardless of where an elected official’s ered to your e-mail inbox each weekday morning, views fall on the political spectrum, creation SCBIZ Daily is your link to statewide business news. at www.scbizmag.com or call 843.849.3116. of good public policy requires a commitment One year for $43.50 to engagement in objective analysis of what SC

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4 SC BIZ | w w w. s c b i z m a g . c o m

Upstate

Midlands

Lowcountr y

Upfront R E G I O N A L N E W S | D ATA

New supplier named for plug-in vehicle stations Eaton Corp. will replace AeroVironment Inc. as the agency to supply and support eight public electric vehicle refueling stations in South Carolina. Plug In Carolina, the Charleston-based nonprofit charged with creating the network, said the project was reassigned to Eaton because that company has the ability to meet the immediate needs of the project. The project, which launched June 15, is funded by two state grants secured through the S.C. Energy Office. The stations will be deployed in Greenville, Spartanburg, Blythewood, Columbia, Charleston, Rock Hill, Union and Myrtle Beach. “We are thrilled that Eaton was in a position to step up and ensure that this important green transportation initiative stays on track,” said James Poch, executive director of Plug In Carolina. “With their help, we look forward to positioning South Carolina as one of the first EV-ready states in the country.” The program will provide publicly accessible electric vehicle charging stations at locations such as municipal parking garages, public streets and retailers. Founded in 2006, Plug In Carolina is a sponsored by S.C. Electric & Gas Co., Duke Energy, Santee Cooper and Lockhart Power.

“10.7% feels pretty good, considering.” Economist Bruce Yandle, speaking about South Carolina’s unemployment rate for October See the full story, page 20. Photo/BMW Group

BMW opens new $750M expansion BMW Manufacturing Co. officially opened its new 1.2 million-square-foot assembly plant Oct. 13. The expansion is intended to give the German automaker the flexibility to add new models and adjust more readily to volume changes. “Our past capacity was approximately 150,000 units, and now we are going up to 240,000 units per year,” said Josef Kerscher, president of BMW Manufacturing in Greer. Altogether, BMW celebrated the opening of the new assembly hall, which will begin production of the X3, and a 300,000-square-foot expansion of its paint

shop. The $750 million investment was announced in 2008. Thus far, the expansion has generated 1,600 jobs, with the expectation that 1,000 BMWs will roll from the assembly line every day, BMW Chairman Norbert Reithofer said. Since the plant opened in 1994, more than 1.6 million BMW vehicles have been manufactured in Greer. About 70% of all cars produced locally are exported to 130 global markets, said Rick Wade, senior adviser and deputy chief of staff for the secretary of the U.S. Department of Commerce.

2010 State Rankings Report: Business Facilities magazine Economic Growth th Potential 1. South Carolina na 2. Tennessee 3. Virginia 4. North Carolina 5. Texas

Wind Energy Manufacturin Manufacturing 1. Iowa 2. South Carolina 3. Utah 4. Arkansas 5. Nevada

Business Climate te 1. Texas 2. Virginia 3. Kansas 4. South Carolina na 5. Tennessee

Source: S.C. Commerce mmerce Department w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

State chamber announces fastest-growing companies in S.C.

South Carolina climbs two places in State Business Tax Climate Index

The 25 fastest-growing companies in South Carolina were recently unveiled during the S.C. Chamber of Commerce’s annual summit at Wild Dunes Resort on the Isle of Palms. Wild Creations, a Myrtle Beach company whose signature product is a mini aquarium that includes live African dwarf frogs, was the fastest-growing company in South Carolina. The company saw a 313% average growth, the state chamber said. The two founders of the company talked about the opportunity associated with starting a company in South Carolina and the challenges of finding a sustainable business model. Two years ago, they were trucking vans of live frogs to Wisconsin, said Rhett Power, who founded the company with Peter Gasca. Today, Wild Creations is going global, with new offices in California and China. The company will have its products in Toys ‘R’ Us and Target this season and has scheduled television appearances. “We based ourselves in South Carolina because there’s a lot of opportunity here,” said Gasca, adding that too few people know that South Carolina has a good business climate. “We’ve got to encourage entrepreneurship and small business development here.” Presented annually by The Capital Corp., South Carolina’s FastestGrowing Companies was co-sponsored by Dixon Hughes PLLC; SC Business Publications LLC, publisher of SCBIZ magazine, Columbia Regional Business Report and GSA Business; and the chamber. The winners were an eclectic mix of companies that came from all parts of the state and represented a variety of industries, including defense contractors, marketing companies, manufacturers, toymakers and physicians, among others.

South Carolina gained two spots in the Tax Foundation’s latest ranking of state tax climates but remains middle of the pack nationally at No. 24. The state ranked No. 9, however, in the category measuring corporate taxes. That favorable ranking was offset by a No. 43 ranking in the category that measures states’ unemployment insurance taxes. “States do not enact tax changes in a vacuum,” said Scott Hodge, president of the Tax Foundation. “Every tax change will affect a state’s competitive position relative to its neighbors.” South Carolina scored favorably when compared to its neighbors. Georgia ranked No. 25, one spot below South Carolina, and North Carolina ranked No. 41. The organization’s 2011 State Business Tax Climate Index promotes low tax rates and tax policies with as few deductions, exemptions and credits as possible. The Washington D.C.-based research group, which is critical of incentive packages that states often use to attract industry, said South Dakota has the nation’s most favorable tax climate, while New York’s is the worst. “Good state tax systems levy low, flat rates on the broadest bases possible, and they treat all taxpayers the same,” wrote staff economist Kail Padgitt in the introduction to the index. “Variation in the tax treatment of different industries favors one economic activity or decision over another. The more riddled a tax system is with politically motivated preferences the less likely it is that business decisions will be made in response to market forces.” Padgitt said the index rewards states based on how they apply tax policies in five areas: major business taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes. In subcategories, the Tax Foundation ranked South Carolina’s sales tax policies among the best, along with Missouri, Kentucky, Virginia and Indiana. “These states avoid the problems of tax pyramiding and have low excise tax rates,” the report stated. The state’s overall ranking the sales tax category was No. 22. South Carolina’s corporate income tax rate of 5% also was among the nation’s lowest, the Tax Foundation said. Each state’s laws and tax collections were assessed as of July 1, 2010, the first day of the 2011 fiscal year. Newer tax changes are the subject of commentary in an appendix but are not tallied in the scores and rankings. “The methodology of the State Business Tax Climate Index is centered on the idea of economic neutrality,” the Tax Foundation stated. “If a state’s tax system maintains a level playing field for businesses, the index considers it neutral and ranks it highly. However, each state’s final score depends on a comparison with the other 49 states.”

South Carolina’s Fastest-Growing Companies for 2010 include: 1. Wild Creations, Myrtle Beach 2. Pegasus Steel, Goose Creek 3. Barling Bay, North Charleston 4. JH Global Services Inc., Greenville 5. Levelwing, Mount Pleasant 6. Dennis Corp., Columbia 7. CareCore National, Bluffton 8. Lindbergh & Associates, North Charleston 9. Thomas Glover Associates Inc., Inman 10. Nason Medical Center, North Charleston 11. Rhythmlink International, Columbia 12. International Public Works, Charleston 13. SYS Constructors Inc., Greenville 14. J. Banks Design, Hilton Head Island 15. Human Technologies, Greenville 16. Heritage Healthcare Inc., Greenville 17. Weir Capital Management, Simpsonville 18. Vapor Apparel, North Charleston 19. Sabal Homes, Mount Pleasant 20. Electric Guard Dog, Columbia 21. Network Controls & Electric Inc., Greenville 22. Egroup Inc. Mount Pleasant 23. Orian Rugs Inc., Anderson 24. Cynergi Systems, Duncan 25. CoastalStates Bank, Hilton Head Island

6 SC BIZ | w w w. s c b i z m a g . c o m

Here’s how South Carolina ranked in this year’s index: Corporate tax .....................................9 Individual income tax .......................27 Sales tax..........................................22 Unemployment insurance tax ...........43 Property tax .....................................23

3O 4 th verall

Te c h n

vation

Columbia company develops mobile workstations for hospital, industrial use By Bob Bouyea, Publisher, Columbia Regional Business Report n the early 1990s when Fred Babaee was carrying around a mobile phone as large as a briefcase, he knew mobility was going to be a key factor in advancing technology. With that phone, he was available to anyone who needed him, regardless of where he was, he recalled. “That idea of having mobility has been a factor in technical advancement. Most people now have a BlackBerry or iPhone and communicate using voice, data, video and over the Internet,” said Babaee, president and CEO of Corlogix, a Columbia firm that designs and manufactures mobile computerized workstations for the health care and other industries. In July, they started delivering the first units to hospitals in Louisiana. And the staff at Providence Hospitals has been a test site for the company. The challenge Babaee took on was bringing mobility to a desktop PC. Although laptops have been around for years, they can’t hold power long — two to four hours, generally. “The question was, ‘How can I get AC current to a battery and energize my PC?’ ” he said. Ray Reckelhoff, the company’s vice president of engineering, tackled the task. When power is converted from alternating current to direct current and then back to alternating current, which is needed to power a PC, a lot of power is lost in the process, reducing the potential hours of operation. The solution was to look at every piece that goes into a PC and to incorporate elements that expend less power. By doing this, Babaee’s team is able to build a mobile computer that can be used for up to 12 hours before the battery has to be recharged, he said. By having computers that last longer, hospitals need fewer carts. And because they will be recharging less, they use less energy and save the user money, Babaee said. But when Babaee’s folks took the first prototype into a hospital, the first question the nurses asked wasn’t how long the battery would last, it was how you clean the cart. Unlike his competitors’ carts, Babaee’s features a keyboard and mouse that can be sub-

8 SC BIZ | w w w. s c b i z m a g . c o m

merged. The computer screen, protected by Plexiglas, can be sprayed with alcohol. It can tolerate the high levels of ultraviolet light that hospitals use to kill bacteria, said Carl Rizzo, the company’s business developer. “The other thing nurses asked was ‘How easy is it to roll?’ If it’s going to be mobile, you have to be able to move it,” Babaee said. The ball bearings used in the wheels make the cart easy to roll and allow it to be maneuvered in tight quarters, such as between beds and in intensive care units, Rizzo said. The wheels were specially designed so that no static is created when it is moved, and they have wipers that knock off any dirt or debris that might stick. As hospitals adapt to the requirements of the health care act Congress signed into law

earlier this year, moving away from paper charting and into electronic medical records, mobile workstations will be in greater need. “Entering the data at the bedside improves workflow and helps reduce the possibility of mistakes, as the doctors have the ability to pull the patient’s medical records all together,” Babaee said. About 56% of hospitals and medical clinics are not ready to incorporate electronic medical records; of those, 90% are rural hospitals. “Rural hospitals are our target. By the year 2014, they have to be EMR-ready,” Babaee said. And from there, the future is in advancing the technology so a doctor can communicate with others around the world from a patient’s bedside.

Fred Babaee Computer screen • Protected by Plexiglas • Can be cleaned with alcohol • Can tolerate high levels of ultraviolet light used in hospitals

Mouse and keyboard • Can be completely submerged in water

Stand • One-button electronic height control

Wheels • No static is created as they move • Two wipers remove dirt and debris • Ball bearings make it easy to roll on tile or carpet

• President and CEO • of Corlogix

BIZ

USC chemistry researchers help visualize bloodstains hemists at the University of South Carolina have developed a camera with the ability to see the invisible, such as bloodstains at a crime scene. The new technology, which uses a process called “multimode imaging in the thermal infrared,” could eventually be used in crime scene investigations, because it can capture bloodstains that the human eye can’t see. Stephen Morgan and Michael Myrick, professors in the department of chemistry and biochemistry in USC’s College of Arts and Sciences, published their work in a series of three reports in the American Chemical Society’s semimonthly journal Analytical Chemistry. Graduate students Heather Brooke, Megan Baranowski and Jessica McCutcheon were also authors of the study. “Detecting blood is like the holy grail of forensics,” Morgan said. “When you are able to detect blood at a crime scene, you know something bad has happened.” Blood detection is important because blood can be typed and can provide DNA, and pattern analysis of blood spatter might be able to help determine the sequence of events

in a crime, he said. He said the luminol test widely used to detect blood stains and other body fluids at crime scenes has several disadvantages. Luminol — a crystalline compound that glows bluish when treated in an alkaline solution with an oxidizing agent — is potentially toxic; it can dilute blood solutions so much that DNA cannot be retrieved; it can cause blood spatter patterns to smear; and it can produce false positive results. Morgan and Myrick have built and tested a camera that captures hundreds of images in a few seconds while illuminating subjects with pulses of infrared light waves. Some of the photos are taken through special filters that

block out particular wavelengths, allowing certain chemical components — including blood — to stand out. The system enables the camera to see contrasts, thus making invisible stains and patterns emerge from a background of four different types of fabric. It can also distinguish whether a stain was made by blood, household bleach, rust, soda or coffee. By using the camera, the surface doesn’t have to be changed in any way while it is being examined. “With this, we view the scene without touching it,” Morgan said. He said the technique can detect a contrast for any surface stain, adding that it would have other possible forensic and industrial applications. But he said more tests are needed before the camera finds its way to crime scenes. “This is not next week’s CSI tool,” he said. “We still have to do validation studies and real-world studies.” Funding for the study came from the National Institute of Justice. The researchers have been working on the project since January 2008. 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

Center for Hydrogen Research

w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

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Improved insulated panel wins New Ideas SC Contest he winning idea in this year’s New Ideas SC Contest is a concept for the manufacture of structural insulated panels that is faster, leaner and more affordable. Winners of the sixth annual contest, which drew more than 300 business ideas, were announced Nov. 3 at the ThinkTEC Innovation Summit in Charleston. The winning idea came from Charlie Banks of Newberry County. As grand-prize winner, Banks will receive $5,000 in seed money for development of his idea, a scholarship to the FastTracSC entrepreneurial training program and access for a year to a team of mentors. Winners are chosen based on the viability, innovation or vision, and profit or revenue potential of the submitted ideas. Five first-place prizes were awarded. Each winner receives $2,500 and a scholarship to FastTrac. Five $1,000 honorable mention prizes also were awarded. Istvan Bognar of Greenville County took first place in the bioscience category. Bognar’s idea is for a device that makes it easier to develop a scar tissue track in a dialysis fistula.

Development of the scar tissue track reduces the issues associated with establishing an IV line at every dialysis visit. An honorable mention went to Brady Evans of Orangeburg County for the Cook uEat idea, a full-service nutritional program providing meals and recipes to improve hospital patients’ health after they are discharged. Banks’ idea for a new method of manufacturing structural insulated panels won first place in the engineering category. The honorable mention went to Tiki Bietri of Dorchester County for the Foot Guardian, a device that improves the safety of manual pallet jacks by reducing the risk of foot injuries and foot rollovers. Robert Horner of Charleston County was the first-place winner in the environmental sustainability category. Horner’s idea is a process that uses waste heat produced by power plants to dry biosolids from nearby public wastewater utilities. The biosolids can then be burned to produce energy. Ron Fulbright of Spartanburg County took honorable mention for the idea of a truck that

has a detachable bed, giving it the ability to switch from a full-size truck to a basic passenger vehicle with lower gas consumption. Gordon Jones of Aiken County won first place in the information/technology software category with his idea for a website that gives first responders real-time information on the emergency to which they are responding. The information is based on data and videos submitted by people already on scene. Andy Richardson of Beaufort County won an honorable mention for the idea of an iPhone application that measures distances when taking a photograph. The first-place prize in the wild card category went to Lauri McLeland of Darlington County for her Speedway Plays idea. The product is a play mat that allows children to play with their toy cars on models of several actual speedways. The honorable mention went to Harlan Richards of Berkeley County for the idea for the EZ Gown, a hospital gown that provides more coverage while still allowing for medical testing and procedures. SC

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Expanding Your Business. South Carolina St yle

We have a good thing going here in the Palmetto State. There’s plenty of room to grow, unmatched recreational opportunities, a low cost of living, a willing and able workforce, an unbeatable business climate and South Carolina’s Power Team. The Power Team is composed of Santee Cooper and the state’s 20 electric cooperatives. Together, we are committed to building strategic partnerships with smart, forward-thinking businesses. And we back this commitment by delivering quality service and reliable electric power at some of the lowest rates in the nation. So when it’s time to expand, ask yourself, “Why do businesses and industries that already call the Palmetto State home decide to expand here?” The answer is: they have it made in the shade in South Carolina. To find out more, visit www.scprimesite.com.

SC BIZ | w w w. s c b i z m a g . c o m

Tr e n d s

Employment

Unemployment rate

Employment

Aug. ’10

Sept. ’10

Oct. ’10

Employed (Total nonagricultural)

1,828,500

1,828,000

1,834,100

Government

344,200

358,400

361,800

Leisure & Hospitality

217,200

207,600

205,200

Manufacturing

210,900

210,400

211,700

Trade, Transportation & Utilities

347,800

343,300

346,300

Unemployed

236,600

236,900

230,600

6% 4% 2%

< <

J A

S.C. 2009

U.S. 2010

Higher than previous month

8.7% - 9.9%

V =

Lower

10.0% - 11.9%

Same

12.0% - 14.9%

15.0% - 19.9%

< <

< < =

M A

*Seasonally adjusted rates. Source: S.C. Department of Employment and Workforce, U.S. Department of Labor

20% and higher

S.C. 2010

Un Unemployment Rate Ra

< <

< < <

< <

< < <

< < < =

10%

< < <

Source: S.C. Department of Employment and Workforce

12%

Source: S.C. S.C Department of Employment and Workforce, July 2010. County rates are not seasonally adjusted

Economic Development Announcements: Sept. 1 - Nov. 23, 2010 Month New/Expansion Company County Investment Jobs Created Sept. ..................... E .................. Kronotex USA ..................................................Barnwell ............................................ $45 million ................................. 40 Sept. .....................N ................. Lava USA ........................................................York .................................................. $3.8 million ................................. 30 Sept. ..................... E .................. Schaeffler Group .............................................Chesterfield ....................................... $26 million ................................. 70 Sept. ..................... E .................. South Atlantic Canners ....................................Lee ................................................... $4.5 million .................................NP Oct. ....................... E .................. OldCastle Lawn and Garden ............................Cherokee ............................................. $625,000 ................................ 30 Oct. .......................N .................. Odermath USA Inc...........................................Spartanburg ................................... $3.25 million ................................. 12 Oct. .......................N .................. Winbro Group Technologies .............................York ................................................... $10 million ................................. 25 Oct. ....................... E .................. REI Automation ...............................................Richland .............................................. $500,000 ................................ 15 Oct. ....................... E .................. Elite ES ...........................................................Fairfield ............................................ $2.5 million ............................... 100 Oct. .......................N .................. Coast Sign Inc. ................................................Greenville ......................................... $2.4 million ............................... 135 Oct. .......................N .................. Unitex USA .....................................................Anderson ............................................. $4 million ................................. 40 Oct. ....................... E .................. Husqvarna North America ...............................Orangeburg ..................................... $105 million .................................NP Nov. ......................N .................. Heritage Propane Express ...............................Anderson ......................................... not provided ................................. 24 Nov. ...................... E .................. Ascend Performance Materials........................Greenwood ..................................... $3.25 million ................................. 32 Nov. ......................N .................. Treleoni Group ................................................Clarendon ....................................... $7.75 million ............................... 100 Nov. ......................N .................. Southeast Renewable Energy ..........................Allendale ............................................$50 mllion ................................. 20 Nov. ......................N .................. S.C. Tissue LLC ...............................................Barnwell .......................................... $140 million ............................... 200

YEAR-TO-DATE TOTALS:

$246.04 billion

10,160

announcements

in announced investments

jobs expected to be created

Source: S.C. Department of Commerce, NP = Not Provided w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

Tr e n d s Passenger Boardings Airport

Apr. ’10

May ’10 June ’10

Q2 ’10

% chg.

July ’10

Aug. ’10 Sept. ’10

Q3 ’10

% chg.

Charleston International

93,059

95,353

96,845

285,257

29%

95,022

89,863

85,014

269,899

-5%

GSP International

51,653

55,641

60,105

167,399

19%

62,159

57,204

53,504

172,867

Hilton Head Island

7,596

7,912

7,947

23,455

50%

7,629

7,617

7,266

22,512

-4%

Myrtle Beach International

69,574

94,551

83,418

247,543

49%

111,046

112,584

85,888

309,518

20%

Columbia Metropolitan

44,627

45,370

44,112

134,109

18%

43,647

41,920

40,611

126,178

-6%

857,763

32%

900,974

Total

Source: Individual airports

2010 Hotel Occupancy Rates

2009 –

2010 –

70% 60% 50% 40%

53.0 45.3 45.0

52.5

Jan.

Feb.

57.9

58.3

58.9

54.7

55.7

55.0

Mar.

Apr.

May

64.9

67.9

60.7

63.5

63.9

59.9

60.0 56.1

61.3 57.4

30% 20% 10% 0%

June

July

Aug.

Sep.

Oct.

Source: Smith Travel Research

Who are the 2011 FIVE STAR Wealth ManagerSM Award Winners in the South Carolina area? Find out in the Spring 2011 issue. FIVE STAR Promotional Section

WWW.FIVESTARPROFESSIONAL.COM

12 SC BIZ | w w w. s c b i z m a g . c o m

How do you know if they are work ready?

www.workreadysc.com

They can prove it! South Carolina’s Employee Credentialing Program powered by WorkKeys®… WorkReady SC is an employee credentialing program that tests and scores job skills. Jobseekers then receive Silver, Bronze, Gold, or Platinum certi¿cation based on their score! It gives jobseekers proof of their abilities and gives employers a way to identify employees with the most potential. WorkReady SC gives employees a hiring advantage: • Streamlines recruitment decisions • Reduces turnover • Reduces training costs • Saves time and money

For more information about this widely used and highly successful program, please contact the South Carolina Department of Employment and Workforce South Carolina Department of Employment and Workforce ~ 1550 Gadsden Street, Columbia, SC 29201 (803) 737-2671 ~ Relay Service dial 711(TTY) ~ EEOC Compliant

GREENWOO

Spotlight

D FACTS

Greenwood By Allison Cooke Oliverius, Special Projects Editor

Photos supplied by Greater Greenwood Chamber of Commerce

14 SC BIZ | w w w. s c b i z m a g . c o m

t has been a busy year for Greenwood County officials. Three major economic development announcements have been made so far in 2010, amounting to approximately $20.25 million in investment into the region and the creation of 121 jobs. Capsugel kicked off 2010 with news of its $15 million expansion that is expected to create 50 new jobs. Capsugel manufactures liquid capsules for the pharmaceutical and health food industries and already employs more than 700 workers at its Greenwood facility. The company is planning a 14,500-squarefoot expansion that will create additional office, lab and production space. It is scheduled to be completed by January 2011. Jatco Inc., a plastic molding and manufacturing company, followed with an announcement that it will invest $2 million to create a new production facility and generate as many as 39 jobs. Most recently, Ascend Performance Materials announced it would invest $3.25 million to expand its existing Greenwood County plant and hire up to 32 more workers over three years. Ascend produces nylon industrial fiber used in applications such as airbags, tire cord and military products. “Ascend Performance Materials could have expanded anywhere in the world and chose Greenwood. This is a strong testament to the conducive business climate this state has and the fact that the Upstate is a great location for businesses to enjoy continued successes,” Hal Johnson, president and CEO of the Upstate SC Alliance, said in a statement. Located about an hour south of Greenville, Greenwood benefits from a strong economic development team made up of Greenwood County government, the Greater Greenwood Chamber of Commerce, the Greenwood Partnership Alliance and the Upstate Alliance. The region once prospered from railroads and textiles, but in more recent years, the region has landed large manufacturing companies, including Fuji Photo Film, which has invested more than $1.5 billion in Greenwood, and Velux, the world’s largest manufacturer of roof windows and skylights.

Greenwood

69,671

County pop

ula

tion, 2009 456 squar e m il es Green wood Coun

MAJOR EM

ty area

PLOYERS

Self Region al Healthca re .............. S.C. state g ............. 2,2 overnment. 48 .................. Fuji Photo ............. 1,1 Film Inc. .. 59 .................. Solutia Inc. ............... 1 .... ,050 Greenwood .................................. ............. 95 County Sch 0 ool District Greenwood ............... 7 Pa 55 Capsugel – cking Plant .............. .............. 74 Division of 0 Pﬁzer........ Eaton/Cutl ................ 6 er-Hammer 80 .. .. .................. Covidien .. .................. ............. 49 .................. 0 VELUZ Gre .................. enwood In 470 c. .............. .................. Source: Gre enwood Par . 450 tnership Alli ance, employ ers

Greenwood has also become known for its health care and research institutions. In July, Self Regional Healthcare became the first hospital in the Southeast — and the fourth facility in the nation — to use BrainSUITE iCT, an advanced surgical imaging technology that allows surgeons to view images not only of the brain, but also of the neck and back where surgical precision is critical, during operations. Self Regional Healthcare began in 1951 as Self Memorial Hospital. Along with emergency and urgent care services, the hospital has grown into a 421-bed facility that offers advanced care services through its Cancer Center, Heart Center, Women’s Center and Wound Healing Institute. The hospital also specializes in neurosurgery, vascular, neurology and bariatric services. In addition, the area is home to the Greenwood Genetic Center, which opened in 1974 and provides clinical genetic services and laboratory testing, and the J.C. Self Research Institute of Human Genetics, which opened as part of the Genetic Center in 1996. Scientists at the J.C. Self Research Institute study the causes, treatment and prevention of birth defects and mental retardation. The S.C. Biotechnology Incubation Facility is a startup facility for businesses with commercial applications for life sciences products and processes. A 500-acre Biotechnology Park has been created adjacent to the incubation facility. Greenwood officials also tout the region’s quality of life, which includes a rich arts and culture scene in uptown Greenwood, a variety of opportunities for recreation countywide, and a top-notch education system, which includes Piedmont Technical College and Lander University. SC

BIZ

SC BIZ | w w w. s c b i z m a g . c o m

Haleyâ&#x20AC;&#x2122;s Turn By James T. Hammond & Mike Fitts, Staff Writers

A big state budget hole could derail any efforts by Gov.-elect Nikki Haley to impose her agenda at the Statehouse

Photo/Renee Ittner McManus/rimphotography.com w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

ikki Haley emerged victorious as the state’s next governor after an 18-month campaign. She now has one month to be ready to face a volatile political environment and a major budget crisis. Haley, 38, was elected Nov. 2 to be the 116th governor of South Carolina. The daughter of Sikh parents from the Punjab region of India, she’s the first woman, and the first person of Asian descent, to be elected the state’s chief executive. The Lexington County Republican state representative defeated Democratic state Sen. Vincent Sheheen, 51% to 47%. The move catapults Haley from the role of rebellious back-bencher to that of governor. Haley clashed with House and Senate leaders over voting transparency and other issues during her time in the S.C. House; now, those relationships could be vitally important in her term as governor. Haley will take office from Gov. Mark Sanford, another outsider who struggled to work with leaders in the Legislature. At a raucous Election Night celebration, Haley said her victory was a mandate to change the way government operates in South Carolina. “We wanted it to be about jobs, and we wanted government to remember that every dollar was not government’s money, it was the taxpayers’ dollars,” Haley said. “And now it’s time for us to get to work for you.”

The challenges

U.S. Sen. Lindsey Graham said Gov.-elect Nikki Haley has the opportunity to “start over with the Legislature with a conservative reform agenda that will unite people.” (Photo/File)

Rainey, who has been an active supporter of Republican gubernatorial candidates since Carroll Campbell, broke with the GOP before the election, openly questioning Haley’s integrity. He questioned whether the Republican mantra for more tax cuts will address the looming fiscal crisis. “Tax cuts may stimulate growth over time,” Rainey said. “But we don’t have time. I don’t know where we’ll get the money” to avoid $1 billion in spending cuts. “We’re approaching the likelihood of eliminating entire agencies of state government,” he said. Burnie Maybank, a Nexsen Pruet attorney and a key player on economic development in the Statehouse, has been chairman of the S.C. Tax Realignment Commission, which is crafting an overhaul of state taxes. But he said he thinks the political tenor of the times and the financial crisis shaking state government make it unlikely that TRAC will be taken up in 2011, Maybank said. “The political environment is just so toxic,” he said.

Otis Rawl, president and CEO of the S.C. Chamber of Commerce, said big financial challenges will quickly confront the new governor and Legislature. The state faces a $1 billion shortfall, including the money needed for Medicaid, and that will come before any ambitions about tax reform can be addressed. “Staring at them is a budget dilemma they’ve got to solve,” Rawl said. John Rainey, chairman of the state Board of Economic Advisors, appointed by Sanford, said, “We’re faced with an overwhelming problem next year, approaching a $1 billion shortfall between revenue and current spending. “She’s going to need every good mind she Move toward cooperation Haley should be able to build a better rapcan assemble to lead the state through some very tough economic times. We’re going to port with key lawmakers than Sanford did, at least in the short term, Maybank said. Maycontinue to have high unemployment.”

SC BIZ | w w w. s c b i z m a g . c o m

bank endorsed Haley’s general election campaign. In her Cabinet choices and early moves, Haley will have an opportunity to show that she’s different from Sanford, Maybank said. Business and legislative leaders will be watching for it, he said. Haley picked David Wilkins, a former S.C. House speaker and U.S. ambassador to Canada, as chairman of her transition team. Haley noted that Wilkins has been part of five gubernatorial transitions, saying she sees his veteran guidance as important as her team looks to get moving. “He knows what went right and what went wrong,” Haley said. Wilkins said he has confidence in Haley’s skills to be a successful governor, despite the financial and political challenges ahead. Haley is a hard worker and “a great communicator,” Wilkins said. She emphasized that she is interested in bringing new blood to top leadership posts in Columbia. Haley wants to see “good businesspeople in the agencies,” people who know that time is money for those who have business with state government, she said. Rawl said Haley and lawmakers need to give businesses the certainty and increased confidence they need to get off the sidelines and move forward. Working to strengthen the Commerce Department and encouraging more job growth would be ways to do that, he said. A vital early issue, to Rawl, is making sure that the Port of Charleston is ready to compete once bigger ships begin moving through the Panama Canal. The port is a major job creator, Rawl emphasized, and needs to stay competitive. U.S. Sen. Lindsey Graham said he will work with Haley to get the resources to improve the port, including going after federal money to deepen the harbor. “The state can’t afford the $350 million to $400 million cost of deepening the port. The federal way is the only way,” Graham said. “I’m convinced the Port of Charleston must be deepened. To allow it to become noncompetitive would be a disaster.” Rawl expects there to be considerable momentum toward cooperation in the Statehouse because of the challenges ahead. “Everyone understands we’re in a deep hole,” Rawl said.

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Republican movement Graham said Haley has an opportunity to help the Republican Party grow in South Carolina and nationally after her win. “She has an opportunity to start over with the Legislature with a conservative reform agenda that will unite people,” Graham said during a conference call after her win. Haley identified early in her political career with Sanford’s libertarian leanings. She was openly supported by Sanford and his exwife, Jenny Sanford. Her campaign took off following her endorsement by Sarah Palin on the S.C. Statehouse steps. In winning her party’s nomination, Haley defeated three white, male, Republican establishment politicians who ran from the elected posts of lieutenant governor (Andre Bauer), attorney general (Henry McMaster) and U.S. House of Representatives (Gresham Barrett). SC

BIZ

Visit the relaunched website today!

For more information, call 843.849.3104 or visit our web site at www.SCJobMarket.com

From the publishers of

w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

SIGNS OF

improv By Allison Cooke Oliverius

conomist Bruce Yandle expects there will be positive, albeit weak, economic growth in 2011 as South Carolina and the nation â&#x20AC;&#x153;clawâ&#x20AC;? their way out of the Great Recession.

While there are many factors involved in the economic recovery, all

eyes are on the unemployment rate as an indicator of how things will progress, Yandle said. South Carolina reported a 10.7% unemployment rate for October, down from 11% in September and 11.1% in August.

SC BIZ | w w w. s c b i z m a g . c o m

vement 2011 ECONOMIC FORECAST

w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

2011 Economic Forecast “That was the second decline in two months running now, and 10.7% feels pretty good, considering. I would say the prospects are bright for the continued decline of unemployment in South Carolina, but still staying at a high level relative to history. I expect we will still see South Carolina in the low to mid9% range for 2011,” Yandle said. South Carolina showed growth of 10,700 nonagricultural jobs in October, according to the S.C. Department of Employment and Workforce. This includes private-sector growth of 7,300 jobs and an increase of 3,400 in government jobs. Growth was seen across several industries in the private sector. Those were construction, up 2,700; manufacturing, up 1,100; retail trade, up 1,900; professional and business services, up 2,000; and education and health services, up 1,300. Manufacturing has experienced an overall increase of more than 5,000 jobs over the past 12 months. “South Carolina’s economy is tightly linked to the nation’s manufacturing engine,” Yandle said in his most recent economic report. “This is a curse when there is a manufacturing recession, but a real blessing (when) the big factory starts running again.” Nationally, the auto industry is leading the

“The state’s automotive sector is healthy and expanding, and we have an air transportation sector that is building, too.” Bruce Yandle Economist

charge in recovery. “Bailouts seem to matter, but there is some real growth taking place, too,” Yandle said. Bright spots Education and health services will be bright “The state’s automotive sector is healthy and expanding, and we have an air transportation spots for the state’s economy, Yandle said, and both sectors are driven by federal funding and sector that is building, too.” federal stimulus activities. The health sector Construction, home sales will continue to experience a higher demand Although the number of construction jobs for services as the state’s population ages. increased in October, Yandle said the industry There has also been some improvement in is not expected to experience a meaningful in- retail sales, a sector that has been led by auto crease in activity in 2011. sales and other big-ticket items. Yandle exIn the latest report from the Carolinas As- pects this trend to continue. Consumers have sociated General Contractors, those in the spent the last year and a half cutting back on industry expect the low level of public works spending, and increasing savings and paying construction to continue next year, account- off debt where possible.

TOP 10 ECONOMIC DEVELOPMENT ANNOUNCEMENTS BY INVESTMENT

INVESTMENT

ing for much of the diminished expectations for overall growth in 2011. Home sales are not expected to experience much of an uptick, either. “An excess of supply was at the root of the cause of the Great Recession,” Yandle said. “Nationally, it’s estimated that there are 3 million too many homes built and for sale. South Carolina did not participate in that overproduction as much as other states, but we have some of it. What has to happen is the absorption of existing houses before building permit activity can pick up. And a good many are bank-owned, so we’ll be wrestling with that for a while.”

Source: S.C. Department of Commerce

1,300

$1B

$1,000,000,000 $900,000,000

1,000

$800,000,000

900

$700,000,000

PROTERRA INC. Proterra was formed in 2004 to design and construct electric transit buses. The Coloradobased company selected Greenville for its permanent research and assembly facility.

$600,000,000 $500,000,000 $350M

$400,000,000 $300,000,000

900

$200,000,000

900 900

$100,000,000 COMPANY NAME RANK 22

FIRST QUALITY TISSUE

ZF GROUP

S.C. TISSUE LLC

NA HUSQVARNA NORTH AMERICA

1ST

2ND

3RD

4TH

SC BIZ | w w w. s c b i z m a g . c o m

$68M

$60M

PROTERRA INC.

NA MOHAWK INDUSTRIES INC.

5TH

6TH

“There has been some relaxation in the minds of consumers with respect to not only ‘how are we going to manage and pay our bills,’ and getting used to a slower economy than the one we were experiencing when we ran off the tracks,” he said. Professional and business services industries are expected to pick up in 2011. “We should see a recovery in terms of employment growth, and that sector is important with respect to accounting, finance, consulting professionals — all of those knowledge economy activities,” Yandle said.

Board sees some economic growth in state he State Board of Economic Advisors forecast some growth in revenues for this year and the next during Chairman John Rainey’s final meeting. The board raised its projection for this year’s state revenue by 1.5%, citing growth in individual and corporate income taxes. Tax receipts already are $94 million more than the year before, an increase of 4%. The forecast adds a projected $229 million to state coffers for the year, but several agencies are expected to run deficits. One, the Department of Health and Human Services, has said it expects to be over budget by $228 million. The board also forecast an additional 1% growth in income for the next fiscal year. The forecast for this year reflects “some mellow optimism” from Rainey and the board that there’s some economic growth afoot in the state, the recently resigned chairman said. Withholding taxes are above expectations, but the state’s unemployment numbers have not dropped much. To Rainey and the board,

Looking forward As for the current economic climate, Yandle said data indicate there is real growth in gross domestic product. As things stand, the economy should see 2.5% to 3% growth in the year ahead, he predicted. On another positive note, a recent survey of commercial banking senior loan officers show that reserve positions are improving and more lending is taking place. “This adds to a sense of optimism about the year ahead and removes some concern about swooning into a double-dip recession,” Yandle said. SCBIZ staff writers contributed to this report. SC

BIZ

that means companies are adding hours of work, but not new employees. Part of the state’s business growth will have to be diverted to repay the debt owed to the federal government for unemployment insurance. The state must repay $1 billion more than its usual unemployment insurance under the new plan being implemented to cover debt accrued by the former Employment Security Commission. That will take a total of 1% of the state’s growth and send it to Washington, the board noted. “That was not an inconsequential mishap” by the commission, Rainey said. Rainey said he submitted his resignation to Gov. Mark Sanford the day after the election, effective as of the end of the day Nov. 10. Before the election, Rainey had spoken out on what he thought might be ethical violations by then-candidate Nikki Haley. Rainey said the decision to resign was his alone. After eight years, he said, it’s simply time for someone else to lead the board. — Mike Fitts, Staff Writer

JOBS CREATED

KKRONOTEX RONOTEX UUSA SA

MMTU TU DDETROIT ETROIT DDIESEL IESEL IN INC. NC

Kronotex USA’s expansion will enhance clean energy development and increase production capacity by 60%, as well as create 40 jobs.

MTU celebrated the grand opening of its engine production facility in Aiken on Dec. 1. The plant is expected to employ up to 250 people within four years.

220 $50M

20 SOUTHEAST RENEWABLE ENERGY

$50M DEFENSE VENTURE GROUP

7 TH - TIE

190 $47M IMO GROUP

8TH

$45M

KRONOTEX USA

$45M PARKDALE MILLS INC.

9TH - TIE

283

250

RETAINING 145 $45M

MTU DETROIT DIESEL INC.

$35.6M

1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100

AKEBONO BRAKE CORP.

10TH w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

2011 Economic Forecast

Growth during the recession

Photo/ScanSource Inc.

After experiencing a sharp decline in business during the recession, several S.C. businesses have been lucky enough to ﬁnd themselves on a fast track to regrowth. Sage Automotive supplies automotive seating fabric to original equipment manufacturers worldwide, including Toyota, GM, Ford, Nissan, Honda and Hyundai. The Greenville-based company operates ﬁve manufacturing facilities in North America, four of them in South Carolina.

In 2007, the automotive industry experienced one of its strongest years; between 16 million and 17 million vehicles were produced or sold in North America. That number dropped to about 6.5 million in 2008 and 2009. “Our customers became bloated in inventory, cut production schedules and had significant cash flow problems. Two of our largest customers went into bankruptcy,” CEO Dirk Pieper said. There was a significant downturn in business,

which meant the company needed to restructure in 2008 and 2009. At the same time, Milliken & Co., then owner of Sage Automotive, decided to exit the auto business and concentrate on other sectors. Pieper, who worked for Milliken for 30 years, along with other management, decided to acquire the company. “There weren’t a lot of people loaning money in the automotive sector,” he said. “It was extremely painful because no one wanted to loan money and the industry outlook was one with some pretty dark clouds.” Greenville-based Azalea Capital and Milliken helped execute the sale. Right after the sale in September 2009, the government bailed out GM and Chrysler and then offered the Cash for Clunkers incentive, which gave Sage Automotive a boost right out of the gate. The company has gone from 911 employees in September 2009 to nearly 1,090 today. Even with the pullback of incentive programs, the industry continues to experience growth. “The outlook in Detroit is very bullish,” Pieper said. “We will continue to see growth in the next year ... from the perspective of the industry, it should be about 10%.” ScanSource, a wholesaler for technology products including barcode scanners, telephone systems and security cameras, stayed aﬂoat during the recession ﬁrst by reducing its work force through attrition, and second by issuing pay cuts across the board, rather than laying off employees. “March of 2009 was the worst for us,” President Mike Baur said. “But from then on, we have seen nice, steady improvement.” In fact, ScanSource recently experienced two consecutive quarters of record sales, and the company hired about 20 employees during the past six months. “There are still some challenging areas,” he said, adding that huge growth isn’t in the forecast. “We see steady growth for 2011, and we have made our way back to where we were a year and a half ago.” ScanSource employs 1,200 people worldwide, including about 400 at its Greenville headquarters.

Photo/Sage Automotive Interiors

SC BIZ | w w w. s c b i z m a g . c o m

Best Places to Work 2010

est Places to Work in South Carolina is an initiative between SC Biz News — 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; 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. The program, launched in 2006, is open to all S.C. 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. • Have been in business a minimum of one year. For more information, visit www.bestplacestoworksc.com.

LARGE EMPLOYERS (250 OR MORE EMPLOYEES IN SC) Rank Company 1............Edward Jones 2............Colonial Life 3............Elliott Davis 4............Palmetto Health 5............Select Health of South Carolina Inc. 6............AgFirst Farm Credit Bank 7............Blackbaud Inc.

SMALL/MEDIUM EMPLOYERS (15-249 EMPLOYEES IN SC) Rank Company 1............Barling Bay LLC 2............SynTerra Corp. 3............ArborOne ACA 4............Johnson & Johnson 5............Life Cycle Engineering 6............VC3 Inc. 7............Hilliard Lyons 8............First Community Bank 9............First Reliance Bank 10..........McAngus, Goudelock & Courie LLC 11..........C.F. Evans & Co. Inc. 12..........Palmetto Citizens Federal Credit Union 13..........Pee Dee Electric Cooperative Inc. 14..........Mars Petcare 15..........S.C. Education Lottery 16..........Human Technologies Inc. 17..........Buist Moore Smythe McGee P.A. 18..........Rosenfeld Einstein

Sponsored by ®

w w w. s c b i z m a g . c o m | W i n t e r 2 0 1 0

Large employers (250 or more employees ) ACES PL

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Colonial Life Colonial Life’s brand promise, “Making benefits count,” is a philosophy the company applies to its customers and its own employees. Headquartered in Columbia, S.C., and founded in 1939, Colonial Life is a market leader in providing benefits solutions in one neat package: excellence in communications, enrollments, service, and personal insurance products and services. For employees whose insurance plans leave them feeling vulnerable, the company helps restore peace of mind through products and services that complete their coverage. Colonial Life has a strong support system in place to make employees feel they are valued. At every possible opportunity, the company gives employees the flexibility to do their jobs to the best of their ability. Employees have access to an onsite Wellness Center that includes fitness classes and equipment. The onsite

Health Resource Center is staffed by a nurse educator who works on health programs and opportunities for employees. The Employee Social Council organizes events and provides discounted tickets for local entertainment and sporting events. A corporate chaplain is available to employees at no cost. The company also strives to be a good corporate neighbor in the Midlands community. Colonial Life sponsors activities throughout the year by donating funds and resources. Some of these sponsorships provide employees the opportunity to take part in activities on the clock with manager discretion and approval. “Our position as one of the Best Places to Work is a testament to the value we place in our employees,” said Randy Horn, president and CEO. “We strive to create an environment where our employees know they’re making a difference both at work and in our community.”

1/3 S ADVERTISER NAME

1200 Colonial Life Boulevard | Columbia, SC 29210 (803) 798-7000 www.coloniallife.com

26 SC BIZ | w w w. s c b i z m a g . c o m

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Edward Jones works with clients to understand personal goals — from college savings to retirement — and create longterm investment solutions that emphasize a well-balanced portfolio and a buy-andhold strategy. Edward Jones embraces the importance of building long-term, faceto-face relationships with clients, helping them understand and make sense of the investment options available today.

Headquartered in Greenville, S.C., and founded in 1925, Elliott Davis is one of the largest accounting, tax and consulting services firms in the Southeast. With 10 offices and more than 400 employees, the firm provides its clients with smart solutions and its people with rewarding opportunities.

Palmetto Health is the region’s largest, most comprehensive locally owned nonprofit health care resource, with nearly 9,000 employees, 1,000 physicians and more than 1,000 licensed beds. Palmetto Health is recognized as a best place for patient care, best results and a best place to work. For more information, visit PalmettoHealth.org.

Top Executive: Wendell Jones, Financial Advisor 602 S. Coit St., Florence, SC 29501 843-661-6441

200 E. Broad St. Greenville, SC 29601 864-242-3370 www.elliottdavis.com

293 Greystone Blvd Columbia, SC 29210 803-296-2273 (CareCall /Call Center)

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Select Health of South Carolina, the state’s largest Medicaid health plan, has a special concern for low-income families and its mission is to help people get care, stay well and build healthy communities. Its mission and award-winning wellness program, Select Wellness, are highly regarded among employees.

Part of the Columbia community since 1916, AgFirst Farm Credit Bank has grown as Columbia has grown. With assets exceeding $30 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 U.S.

4390 Belle Oaks Drive, Suite 400 North Charleston, SC 29405 843-569-1759 www.selecthealthofsc.com

1401 Hampton St., P.O. Box 1499 Columbia, SC 29202-1499 803-799-5000 www.agfirst.com

28 SC BIZ | w w w. s c b i z m a g . c o m

Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, offering solutions for fundraising, constituent relationship management, financial management, website management and more A publicly traded company that values innovation, the career and learning opportunities at Blackbaud are endless. Headquartered in Charleston, S.C., Blackbaud also has operations in Australia, Canada, Hong Kong, the Netherlands and the United Kingdom. 2000 Daniel Island Drive Charleston, SC 29492 800-443-9441 solutions@blackbaud.com www.blackbaud.com

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Best Places to Work 2010

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Palmetto Citizens Federal Credit Union As a not-for-profit institution organized in 1936, Palmetto Citizens is known for offering better loan and savings rates and fewer fees than profit-driven banks. However, the real difference is their staff and the friendly, personalized service they provide. Members know they can turn to Palmetto Citizens for financial advice and to find the right products to meet their needs and budgets. Often recognized for their “family atmosphere,” Palmetto Citizens builds a unique trust with members by looking out for their best interests, first and foremost.

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PCFCU Staff at the Grand Opening of their newest office in Red Bank

To ensure they are offering the right solutions to their 48,000 members, Palmetto Citizens places a large focus on financial education, not just for those they serve, but for their staff, as well. By equipping staff with the knowledge they need to achieve their own financial goals, they are able to provide better guidance to members.

Palmetto Citizens applies the philosophy of “people helping people” to members and the community through their commitment to their staff. Development programs to help staff grow within the organization, robust benefit packages with salary incentives and ongoing community involvement all help the staff of this organization truly feel they are given a place to succeed while making a real difference.

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Twelve Midlands Locations & 35 ATMs (803) 732-5000 pcfcu@pcemail.org www.palmettocitizens.org

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Barling Bay

Barling Bay provides leading edge solutions to federal government and private sector customers with a focus on systems engineering, information assurance/cyber security, research and development, and program management and administration. Its mission is to provide the highest quality professional services and products at the most cost effective price for its customers. In addition to being selected as one of the Best Places to Work in South Carolina for 2010, Barling Bay was also selected third of the state’s 25 Fastest Growing Companies. Barling Bay is headquartered in Anchorage, Alaska and its corporate offices are in Charleston, S.C. It also has locations in Houston and Washington, D.C. and locations outside the U.S. The company’s success is rooted in its corporate values, which include a commitment to ethics and excellence. Its employees are encouraged to do what’s right, do their best, maintain a dedication to excellence and innovation as well as have fun and enjoy their journey. Barling Bay participates in and develops initiatives to support the local communities where it has offices. It is also an organization of people who value one another and who treat each other and their customers with respect. Its leadership believes in creating and fostering a work environment in which employees continually demonstrate that they respect opinions, attitudes, attributes and feelings of anyone with whom they come in contact during their daily work. “At Barling Bay, we believe that our employees are our No. 1 asset.” www.barlingbay.com

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VC3 VC3 has been on the leading edge of Information Technology since 1994, providing a full range of IT services to both the private and public sectors in South Carolina, North Carolina and Georgia. Headquartered in Columbia, S.C., VC3 was named one of South Carolina’s Fastest-Growing Companies in 2007 and again in 2008. Most recently, VC3 ranked sixth of the Best Places to Work in South Carolina 2010.

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VC3 is a member of the Consortium for Enterprise Systems Management (CESM) and will be involved in managing the day-to-day operation of the CESM Data Center located in our new headquarters, The Tower at 1301 Gervais Street. Our move will take place in early 2011. Be on the lookout for open house dates! Our company’s professionals implement IT projects and services to provide above average returns on investment, significantly enhance productivity and lower technology ownership costs. Services include but are not limited to: managed support services, technology assessments, VCIO services, hosted desktop, premise and hosted voice, disaster recovery, security audits, website design and application development. For more information on VC3 and to view our full suite of solutions, please visit us at www.VC3.com.

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First Community Bank

First Community Bank is proud to have been named a Best Place to Work in South Carolina for the third year in a row. It is the dedication and commitment of the bank’s employees that truly makes First Community a great place to work and it is through their efforts that the bank was able to earn this recognition. First 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. As First Community pursues 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. The bank’s product offerings are oriented around three main lines of business: commercial banking, residential mortgage banking, and financial planning and investment advisory services. Experienced professionals in each of these areas work with customers to provide advice, service and support to help them achieve their financial goals and objectives. Founded in 1995, First Community is based in Lexington, S.C., and has 11 banking offices in the Midlands. Learn more about First Community at www.firstcommunitysc.com.

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First R Reliance li Bank First Reliance Bank’s commitment to making its customers’ lives better has resulted in the bank being named to South Carolina’s “Best Places to Work” list for 2010. This is the fifth consecutive year the S.C. Chamber of Commerce has named First Reliance to its annual ranking of the state’s best places to work. The chamber honored the bank at an awards ceremony in October at the Marriott in Columbia, S.C. “An important goal of First Reliance Bank is to provide associates with an incredible work experience,” said Rick Saunders, President and CEO. “We do this with the guidance of a committed and caring leadership team, giving associates an opportunity to do their best work, and providing rewards and recognition that make their lives better.”

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First Reliance Bank’s unique culture focuses on providing our customers with an incredible experience and that can only be accomplished with a team of highly motivated, service-oriented associates. Saunders noted that First Reliance associates are a special group who appreciate being able to use their individual talents to serve their customers and community. “We go to great lengths to recruit people who are committed to our purpose of making the lives of our customers better,” Saunders said.

He added that, along with the bank’s unique, custom-designed programs and unmatched convenience, the company’s associates are a key reason why the bank has achieved a 98% customer satisfaction rating.

“We are very proud of our team’s commitment and appreciate being recognized as one of the Best places to work in South Carolina,” Saunders said. First Reliance Bank, founded in 1999, has assets of approximately $600 million and employs more than 145 highly talented associates. The bank serves West Columbia, Lexington, Mount Pleasant, Charleston and Florence markets in South Carolina. The bank was also recognized as one of the Best Places to Work in South Carolina by SCBIZ magazine for five consecutive years and was named 2009 Lender of the Year by the S.C. Housing Authority. First Reliance’s commitment to making its customers’ lives better, and the idea that “There’s More to Banking Than Money,” has earned the young bank a customer satisfaction rating of 98% (Lamothe & Associates Inc.) and the No. 1 market share in its headquarters city of Florence, S.C. First Reliance Bank is traded as FSRL.OB. Information about the company is available at www.firstreliance.com.

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Pee Dee Electric Cooperative Pee Dee Electric Cooperative has been serving six counties in northeastern South Carolina for 71 years. The company maintains hundreds of millions of dollars in infrastructure as it provides the region with reliable and affordable electricity. The infrastructure, however, is not the heart of the company — it’s the employees. “All this (poles, lines, equipment) would be worth nothing without the men and women who manage it,” said E. LeRoy “Toy” Nettles, president and CEO. “In my view, our employees are the greatest asset of Pee Dee Electric.”

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Toward that end, PDEC offers many programs to enhance the work experience and quality of life for its employees. Workers are encouraged to take advantage of training and educational opportunities. Reimbursement for tuition, fees and books for college, technical school or correspondence courses have all helped many employees increase their knowledge and skills as well as stimulate superior performance and growth.

The company also offers a defined benefit pension plan for eligible employees with all contributions made by the cooperative. This, along with a 401(k) plan, health insurance and wellness programs, makes Pee Dee Electric an exceptional workplace. Based in Darlington, Pee Dee Electric Cooperative, a nonprofit electric distribution utility, is owned by the members it serves and is locally governed by a board of trustees elected from the membership.

PeeDeeElectric.com

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SynTerra, a consulting and engineering firm in Greenville, S.C., specializes in the environmental, process, civil and transportation fields. Typical services include: regulatory compliance; remediation; brownfields redevelopment; wetlands; hydrogeology; and civil, roadway, intersection and bridge design. Our clients range from manufacturing, industrial and commercial operations to local, state and federal government agencies.

ArborOne Farm Credit is an agricultural lending cooperative owned by its member-borrowers. It provides loans for farming (land, equipment, livestock and production); recreational property; crop insurance; and rural home mortgages. A part of the national Farm Credit System, ArborOne covers the 12 counties of the Pee Dee region of South Carolina.

Founded in 1930, Johnson & Johnson, a wholesale insurance agency, promotes a family atmosphere where our highly trained professionals are recognized as insurance industry leaders. Our success is built on a foundation of long-term relationships with our independent insurance agents and companies.

148 River St., Suite 220 Greenville, SC 29601 864-527-4644 Fax: 864-679-3744

800 Woody Jones Blvd. Florence, SC 29501 1-800-741-7332 www.ArborOne.com

200 Wingo Way Mount Pleasant, SC 800-487-7565 www.jjins.com

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Life Cycle Engineering is a strengthsbased organization where employees are given the opportunity to grow personally and professionally each day in a fun, supportive work environment. LCE’s culture promotes a strong balance between workload and family life, and each individual is valued by his colleagues and clients. LCE provides consulting, engineering, applied technology and education solutions to private industry, government and the military.

Hilliard Lyons focuses on the creation, preservation and distribution of clients’ wealth. The firm specializes in planning issues that include retirement, business succession, trust and estate planning and education funding. Hilliard Lyons offers comprehensive financial services and advice, including managed accounts from the country’s premier managers, as well as a broad menu of investment vehicles to facilitate the strategies recommended.

Top Executive: Jim Fei, CEO 4360 Corporate Road, Charleston, SC 29405 843-744-7110 info@LCE.com • www.LCE.com

Top Executive: Quincy Kennedy IV 2051 Elijah Ludd Road, Florence, SC 29501 800-707-6997 • Fax: 843-662-9620 www.hilliard.com

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Founded in 1995 in Columbia, McAngus Goudelock & Courie is a young, fullservice law firm with six offices in North Carolina and South Carolina. In 14 years, the firm has grown from four attorneys to more than 100. Originally a boutique workers’ compensation firm, MG&C now offers comprehensive legal services in a wide range of practice areas.

Meridian, 10th Floor 1320 Main St., Columbia, SC 29201 803-779-2300 • www.mgclaw.com McAngus Goudelock & Courie has offices in Columbia, Charleston, Greenville and Myrtle Beach, S.C., and Charlotte and Raleigh, N.C.

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For owners and developers who need quality construction on time and within budget, C.F. Evans is a construction management services firm that delivers trusted, quality construction and worldclass customer service. We build it like it’s ours and always do the right thing for everyone involved.

Mars Petcare in Columbia is a familyowned company that produces some of the world’s most beloved pet food, including Pedigree brand food for dogs and Whiskas brand food for cats. More than 115 associates share their passion for pets by making nutritious food that pets love and owners trust.

The South Carolina Education Lottery’s mission is to enhance education funding in South Carolina through the fun, entertaining and socially acceptable games and products we offer to adults. One of the greatest reasons that we are a best place to work in South Carolina is because of our mission: It is all about the transfer to education, and therefore a better tomorrow for South Carolina.

Top Executive: John P. Evans 125 Regional Parkway, Suite 200 Orangeburg, SC 29118 803-536-6443 E-mail: kevans@cfevans.com www.cfevans.com

Mars Petcare U.S. - Columbia 1720 Pineview Drive Columbia, SC 29209 803-695-3100 • www.mars.com

1333 Main St., Suite 400 Columbia, SC 29201 www.sceducationlottery.com

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Headquartered in Greenville, S.C., Human Technologies is a multifaceted human resource advisory firm providing professional recruiting, industrial staffing, human resource consulting and outsourced manufacturing services. Founded in 1999, Human Technologies is one of the Southeast’s most innovative and versatile human resource firms, leveraging the development and delivery of custom-designed programs.

300 E. Coffee St. Greenville, SC 29601 864-467-0330 www.htijobs.com

Buist Moore Smythe McGee P.A., Charleston’s business law firm, provides business and litigation legal solutions for businesses and individuals throughout the state of South Carolina. For 40 years, the firm has been committed to providing exceptional service to local, national and international clients, and it is honored to be named once again among the Best Places to Work in South Carolina for 2010.

Managing Director: Henry B. Smythe Jr. 5 Exchange St., Charleston, SC 29401 843-722-3400 www.buistmoore.com

Rosenfeld Einstein is a regional, independent insurance agency/brokerage and consulting firm providing employee benefits, insurance (personal, commercial property and casualty, life and health), workplace safety and wellness services and one of only three South Carolina firms named a 2010 Best Practices Agency by the Independent Insurance Agents & Brokers of America.

Top Executive: Dan Einstein, principal 870 S. Pleasantburg Drive Greenville, SC 29607 864-271-6336 www.RosenfeldEinstein.com

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STATEWIDE

Business decision-makers rely on SC Biz News publications for the most current in-depth coverage of local and state business news. Whether your focus is hyper-local or statewide, you can rely on SC Biz News publications to deliver your marketing message to our targeted audience of business leaders.

For more information, contact Steve Fields at sfields@scbiznews.com or 843.849.3110

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S.C. Delivers

PORTS, LOGISTICS & DISTRIBUTION IN S.C.

Wide open S.C. State Ports Authority leaders hope the Panama Canal’s expansion will open the ﬂoodgates to Far East trade Page 42 Photo/Panama Canal Authority A P U B L I C AT I O N O F S C B I Z N E W S

BRIEFS S.C. DOT’s plans for $10 million grant receive federal approval COLUMBIA – The S.C. Department of Transportation has received the go-ahead to use the $10 million grant it received from the U.S. Department of Transportation for the Interstate 73 project. The S.C. DOT applied for $300 million in Transportation Investment Generating Economic Recovery grant money for the project in 2009. The department received $10 million at that time. S.C. DOT staff members submitted plans to the Federal Highway Administration for improvements to U.S. Highways 501 and 301 that will eventually tie in to I-73 when construction on that road begins. The modified plan for the TIGER grant will meet the $10 million budget approved for I-73. The project involves the widening of about one

mile of U.S. 301 and approximately 1.25 miles of U.S. 501 near Latta from two lanes to three, as well as the realignment of the existing U.S. 501/U.S. 301 intersection. Also included will be the replacement of the Catfish Church Road bridge over Interstate 95 and associated frontage road relocation. Interstate 73 is designed to connect South Carolina and Michigan. S.C. DOT Commission Chairman Danny Isaac of Myrtle Beach welcomed the green light from the highway administration. “I think the public will be pleased to see some actual work begin on I-73,” Isaac said. “The improvements that will be made to U.S. 501 and U.S. 301 will bring about immediate benefits until more funding for I-73 can be secured.”

Belgian knitting company opens facility in York County YORK – Lava USA Inc., a manufacturer of knitted fabrics for mattress covers, has located its new operations in York County. The company invested more than $3.8 million to renovate a former plastics manufacturing facility and expects to add 30 new jobs over the next five years. “We are pleased to have our new plant up and running and look forward to adding more production capacity over the next few years. York County had an excellent building available that suited our needs and provides us with ample space to grow,” said Robert Jones, plant manager for Lava USA. Lava USA has located its new textile production and warehouse facility in the former Sattler Plastics building on Railroad Avenue in York. The company has already begun operations at the new facility and plans to continue adding machinery to the 100,000-squarefoot facility over the next few years. “It is refreshing to see a globally competitive manufacturing operation added to York County’s rich textile history. We welcome

the new jobs and investment from Lava USA in western York County,” York County Council Chairman Buddy Motz said. The company has already begun hiring and is accepting applications. The company plans to add at least 10 new employees this year, with more positions coming open as equipment is added to the facility. Lava is a family-owned and -operated knitting company that has been in business since 1925. The company specializes in the production of knitted fabrics for mattress covers and has offices in Belgium as well as the United States. The S.C. Department of Commerce and York County joined in the announcement.

Southwest Airlines announces S.C. routes GREENVILLE – Chicago, Baltimore/Washington, Nashville, Tenn., and Houston. Those are the destinations to which Southwest Airlines will fly nonstop each day from Charleston International Airport, the company recently announced. The discount airline made a simultaneous announcement in the Upstate but added Orlando, Fla., to the mix of destination cities for Greenville-Spartanburg International Airport. The company will be flying Boeing 737s, which hold 137

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passengers, out of South Carolina. Southwest also plans to add about 40 employees at the airport. Bob Montgomery, vice president of properties for Southwest Airlines Co., said previous traffic patterns helped the airline decide how it wanted to launch in South Carolina. “It’s all based on research, and we found that more people are coming from these places than others,” Montgomery said. The destinations are not set in stone, however; Southwest could change routes and

likely will expand service. When asked, company representatives said there are no direct flights between Greenville and Charleston because the goal, at least initially, was to connect the S.C. markets with existing networks, not with each other. “Southwest Airlines is delighted to bring our special brand of low-fare, high-quality customer service to travelers in GreenvilleSpartanburg and Charleston,” said Dave Ridley, Southwest Airlines’ senior vice president of marketing and revenue

management. The Greenville-Spartanburg International Airport plans to expedite facility upgrades to have space ready for Southwest Airlines by the end of the first quarter of next year.

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Ports Authority hires firm to refine scope of new passenger terminal CHARLESTON – The S.C. State Ports Authority is wasting no time laying the groundwork for a new, $25 million cruise passenger terminal, after announcing in early September that it would move forward on

the project. The maritime agency hired an engineering firm to develop a more detailed scope of work and cost estimate for the effort. The plan will see the SPA’s cruise operations moved to a

100,000-square-foot converted building north of where they’re currently located at Union Pier. The authority’s board selected CH2M Hill, headquartered in Meridian, Colo., to “further analyze the improvements to the wharf, building and surrounding site necessary for a modern, appropriate and efficient cruise facility,” according to a news release. A contract for the work, not to exceed $250,000, also was approved by the board. CH2M Hill’s work will build on previous site analysis conducted during a yearlong planning process and will serve as the basis for requests for proposals that the SPA will send out for architectural design services this fall, the agency said. Port officials say the project will reduce traffic at Union Pier, remove 200 cargo ship calls a year, eliminate daily rail activity and make the 63-acre property’s southern end available to the public.

BMW Co. traffic also would be shifted under the plan. The agency’s collaborative actions included the formation of the Cruise Neighbors Advisory Council, which represents neighborhoods most affected by the Union Pier Terminal. The SPA has kept the door open for a revamping of its existing cruise terminal, should the plan stall. The SPA will solicit design plans for the redevelopment in the coming months and begin the design phase early next year. That stage should be finished about a year from now, with construction set to begin in late 2011. If all goes well, ships will be calling on the new terminal in the third quarter of 2012. The SPA would then start master planning for non-maritime properties at the terminal, which could include projects such as a park around the Bennett Rice Mill facade.

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Tencarva makes Industrial Distribution’s Big 50 list NORTH CHARLESTON – Tencarva Machinery Co. has been ranked No. 42 in the Big 50 list of largest industrial distributors in the United States in the fall issue of Industrial Distribution magazine, based on 2009 annual revenue. “We are pleased to have experienced only a 10% drop in our sales during 2009 and attribute this relative success to our outstanding team of employees,” said Rod Lee, president of Tencarva. “We were able to keep our team intact with no layoffs and to make strategic investments in our business during the downturn. We have enjoyed growth in our market share as a result. Business is now growing again, and we are fully prepared to take advantage of the growth.” This year’s ranking marks the fifth straight year that Tencarva has been ranked in the Big 50.

Ed Pearce, secretary-treasurer of Tencarva, said, “While our business declined in 2009, our market share increased. As a result, our 2010 revenues will be close to or exceed our 2008 revenues, which were the highest in the company’s 32-year history.” Tencarva, based in Greensboro, N.C., is a distributor specializing in pumps, liquid process, compressed air, vacuum equipment and custom-designed systems for the industrial and municipal marketplace. The firm has a branch office in Greenville. Tencarva also was ranked No. 59 in the Grant Thornton North Carolina 100 listing of the largest privately held companies in the state published in the October 2010 issue of Business North Carolina. This ranking is also based on annual revenue in 2009.

S.C. companies to build barges for Navy S YONGES ISLAND – Metal Trades Inc. will build two new types of double-hull barges for the U.S. Navy after being contracted by Maybank Industries LLC. Three liquid fuel barges and one ship waste offloading barge are slated to be built, each with identical, 6,900-barrel-capacity cargo and double hull configurations. The American Bureau of Shipping-class barges are being designed by Bristol Harbor Group of Bristol, R.I., at 180 feet long and 44 feet wide. Bluewater Designs Inc. of Delray Beach, Fla., is handling production engineering services. This deal marks the second time that Metal Trades, Charlestonbased Maybank Industries and Bristol Harbor have teamed to design and build a new type of

double-hull barge for the Navy. The vessels meet the latest operational requirements and are in full compliance with the Oil Pollution Act of 1990, Metal Trades officials said in a news release. The latest contract addresses two new requirements: a more compact fuel barge design for space-constrained facilities and a new type of double-hull barge that can offload and discharge waste from Naval vessels. Ships built previously under the partnership were 14,000-barrel fuel barges.

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S.C. DELIVERS | 41

PORT

Panama could open floodgates for Charleston By Daniel Brock, Staff Writer

s the 96-year-old Panama Canal undergoes a $5 billion expansion that will allow many of the world’s largest cargo ships to pass through its locks, a delegation from the Charleston area saw the project firsthand recently. The 23-person S.C. delegation, which included port officials, business leaders and state lawmakers, spent two days in Central America meeting with Panama Canal Authority leaders and touring the facilities. “We are a very capable South Atlantic port,” said S.C. State Ports Authority President Jim Newsome, recounting the October trip before speaking at an annual growth forum hosted by the Charleston Metro Chamber of Commerce Developers Council. The work in Panama will not

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The Panama Canal is undergoing a $5 billion expansion that will let the largest ships through when it opens in 2014. (Photo/Panama Canal Authority)

only widen the canal, it will also open the floodgates to Far East trade, SPA leaders hope. In 2014, when the widening is scheduled for completion, giant ships from Asia will be able to utilize the expanded canal, bringing their cargo to ports on the East Coast, and more specifically

to ports that are deep enough to accommodate the vessels. The canal now can handle ships with capacity for about 5,000 20-foot equivalent units. The larger ships that are coming later this decade, known as postPanamax, will hold more than twice that number.

The Port of Charleston already hosts multiple post-Panamax vessels, which arrive each week via various other ocean routes. Meanwhile, about 400 ships go through the Panama Canal on their way to or from Charleston each year. That number is expected to increase in the post-Panamax era. Speaking to business leaders about what they could expect from the port in coming years, Newsome said there is opportunity for Charleston to siphon off up to 3 million TEUs annually that would previously have been destined for West Coast ports. With the increased production of ever-larger containerships — which are more cost-effective for shipping lines — and their ability to utilize the expanded Panama Canal, the balance of power could tilt toward East Coast ports.

A ship passes through the Panama Canal. (Photo/Panama Canal Authority)

also are keys for future success, Newsome said. In recent months, a furor has arisen over a $400,000 federal earmark that would fund part of a study that would examine deepening the harbor beyond 50 feet. Business leaders at the Developers Council event were appreciative of the chamber’s efforts to keep them up to date. Daniel Hiers, a senior manager at the accounting firm Elliott Davis, said that his company works with an array of businesses associated with the port. © 2010 Rogers & Brown Custom Brokers, Inc.

“Logistics is a cost game,” Newsome said. At minimum, post-Panamax ships need 40 feet of draft to enter a harbor. Charleston, which leads the Southeast with a 45-foot-deep shipping channel, can accommodate up to 48 feet, depending on the tide. Port leaders say that’s Charleston’s primary advantage as the Panama Canal expansion is completed. As of mid-October, the port had hosted 80 ships with 40 or more feet of draft. It’s paying off: July was the busiest month volume-wise at the port since October 2008, and volume is above budget for the first part of the fiscal year. Newsome said the port was trying to get back its “natural share of the market.” The harbor’s width, which allows for two-way traffic; the container terminal under construction at the former North Charleston Navy Base; and continued distribution center growth

“Five years ago, you didn’t hear as much about the port,” he said. “There’s a lot more emphasis on how important it is to the economy.” Later in the afternoon, Newsome addressed the Charleston County Legislative Delegation’s SPA Ad Hoc Committee. There, he touched on the bigticket items that the port has dealt with in the past year, including the cruise industry; new container terminal; and harboring deepening. “Quite frankly, there has been

some sensationalism,” he said, referring to environmental concerns that have been raised over the cruise industry. Newsome said that, although competitor ports might need more than $600 million to dredge to Charleston’s current depth, deepening Charleston Harbor to 50 feet — or deeper — would likely come at a price of about $310 million. “We’re the best value in this region for harbor deepening,” he said. The meeting eventually turned toward a discussion of rail access to the new terminal before Senate Transportation Committee Chairman Larry Grooms, R-Bonneau, said that discussion was best left for another time. Grooms said his committee was continuing to work on a report about rail access that likely would include such findings as the opinion that any rail plan “had better not give one line advantage over the other.”

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S.C. DELIVERS | 43

PORT

State of the Port: Full steam ahead By Daniel Brock, Staff Writer

n his first State of the Port address, in 2009, S.C. State Ports Authority President and CEO Jim Newsome said that the best years of the port lay ahead of it, rather than in the past. It was bold rhetoric from the new head of an agency that had fallen off its once lofty perch in the maritime world — the port tumbled from fourth to ninth nationally in container traffic between 2004 and 2009. And Newsome admitted during this year’s oration on Nov. 16 that his assertion wasn’t totally confidence-based. “After barely two months into the job, I have to be honest with you that I sincerely hoped that I was right,” he told the crowd of nearly 500 people at the annual event hosted by the Propeller Club of Charleston on Nov. 16. Having overseen a marked

“We have a clear message for our customers and our stakeholders — that being that we are aggressive and will compete for business everywhere in the world.” Jim Newsome S.C. State Ports Authority President and CEO

turnaround during the past 12 months, Newsome told the audience — this time without reservation — the port’s future is bright. Newsome said a new culture has taken hold at the SPA, one in which “a sense of urgency and decisiveness are critical.” “We have a clear message for our customers and our stakeholders — that being that we are aggressive and will compete for business everywhere in the

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world,” Newsome said. He checked off a list of accomplishments from the past year that included the attraction of several major new shipping lines, the port’s position at 16% ahead of its volume plan in fiscal 2011 and the ongoing construction of a new container terminal at the former Navy base in North Charleston. Newsome didn’t shy away from a point of concern that has arisen

in recent months: the proposed deepening of Charleston Harbor. The project would allow the port, already the deepest in the Southeast with a 45-foot channel at low tide, to accommodate giant postPanamax containerships without tidal restrictions. At its current depth, the port in the first nine months of the year hosted more than 90 ships with capacity of more than 8,000 20-foot equivalent units. That would increase significantly if the shipping channel is deepened. But progress on the years-long dredging process has been slowed by some federal lawmakers, led by U.S. Sen. Jim DeMint, R-S.C., who want to do away with the earmark system that would fund a crucial study on the deepening. Newsome was adamant about the need for the money — and

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from where it should come. “This is, without question, the best value in harbor deepening in the South Atlantic and is the clear responsibility of the federal government,” Newsome said. U.S. Sen. Lindsey Graham, R-S.C., who recently joint DeMint’s earmark moratorium push, addressed the crowd earlier in the evening by phone from Washington, D.C. Graham said he would ask President Barack Obama’s administration to include funding for the project in its next budget or try to amend legislation to acquire the money. Either way, Graham said, the $400,000 needed for the study wouldn’t be seen this year. Gov.-elect Nikki Haley spoke briefly as well, at one point taking a swipe at Georgia, South Carolina’s chief maritime rival. “You now will have a governor that does not like to lose,” she said. “Georgia has had their way with us for just way too long, and I don’t have the patience to allow

it to happen anymore.” As for Newsome, his message was simple: full steam ahead. “Charleston has been a port since 1670 — it is the reason there is a historic Charleston, by the way,” he said. “And it will be a successful port long after all of us are gone.”

Rising tide raises some wages Some port employees could be receiving a 3.5% pay raise, if they meet performance-based criteria. SPA Human Resources Committee Chairman David Posek made the announcement during the maritime agency’s November board meeting. The increases are available to most of the authority’s nearly 450 employees and will be awarded based on a computer matrix. A further pair of variable compensation plans could be paid out to crane operators and the general work force after the current fiscal year ends June 30. Those programs will be “totally based on

meeting financial and productivity measures,” Posek said. “If we don’t meet our minimum cash-flow requirements, there is no raise,” he said. Port officials credited increased volume for the raises; port volume is 16% over budget for fiscal 2011. Container cargo was up 11% year over year in October and 15% ahead of September.

Terminal developments Also at the meeting, the board awarded Collins Engineers a $160,533 contract to perform an underwater inspection and draw designs for a seismic upgrade of the warehouse where it plans to move its cruise operations. Charleston-based Collins performed similar work on the 1940s naval building that now houses Fleet Landing restaurant. Bringing the new cruise building up to seismic code could cost $6 million, officials said. The entire project is slated at $25 million, and the SPA is slated to send

out design requests for proposals early next year. The new terminal is scheduled to open in late 2012. Meanwhile, Newsome said the proposed move of BMW Manufacturing’s Union Pier operations to the Columbus Street Terminal could begin in January. The shift will remove rail traffic from the Union Pier area. Board Chairman Bill Stern reported that the S.C. Budget and Control Board approved the sale of the SPA’s Port Royal to Gramling Brothers Real Estate & Development Inc., which is finalizing its land-use plan. Transportation Secretary H.B. “Buck” Limehouse, who played a key role in recent weight increases for containerized cargo on S.C. roads, said he has received assurances from Georgia officials that they would not re-up their limits. Both states now have 100,000-pound caps. “We won’t have to go through any more escalations with that,” he said.

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TRUCKING

Allowing heavier trucks could give S.C. advantage By Daniel Brock, Staff Writer

ll international shipping containers hauled by truck in South Carolina will be allowed to weigh up to 100,000 pounds under new permit rules unveiled in November by the S.C. Department of Transportation. Officials with the S.C. State Ports Authority applauded the move and said it will make the Port of Charleston and other S.C. industries, including agriculture and recycling, more competitive. SPA Chief Commercial Officer Paul McClintock said the new permit structure could increase export business at the port by 30% or 40%. Previously, shipping containers in South Carolina were allowed to weigh only 90,000 pounds, while limits in neighboring states were higher than that. North Carolina allows for 94,500 pounds,

Trucks travel along Interstate 26 in the Upstate. (Photo/James T. Hammond)

while the Georgia restriction was The announcement followed lowed refrigerated containers up 100,000 pounds, and included no a pilot program launched earlier to 100,000 pounds to be permitroute regulations. this year by the S.C. DOT that al- ted for truck transport.

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McClintock said the enhanced permitting structure opens overseas markets to South Carolina famers, who were shut out of exporting because lower weights required in the state weren’t cost effective for shipping lines. In effect, port officials said, the new rule is a 100,000-pound increase, as opposed to a 10,000bump. “It wasn’t going to be anything before. We weren’t carrying the business,” McClintock said of the exports. “We’re now going to participate in all this cargo that we weren’t before.” And that’s what the increase was meant to do, according to Transportation Secretary Buck Limehouse. “Part of our job at S.C. DOT is to support economic development,” Limehouse said. “Our highways, ports and rail systems are the infrastructure for economic development. We all work together to make South Carolina as competitive as we can in global

markets.” Jim Newsome, the maritime agency’s president and CEO, described the permitting increase as “an extremely important development” for export cargo business, which had historically faced disadvantages linked to weight restrictions. “Secretary Limehouse and SCDOT have shown great leadership and foresight by improving our competitive capability in world markets,” Newsome said. The state’s recycling industry also will likely see a boon, according to McClintock. Waste paper is country’s No. 1 export to Asia, he said. It comes back to the U.S. in the form of packaging. “That export has to go out heavy or it doesn’t go out at all. So, instead of winding up in our landfills, now there’s a market to ship it off overseas,” McClintock said. He added the new rules likely will make Charleston more attractive for large companies such

as Lowe’s or Home Depot, who import heavy commodities such as power tools and tile when they’re looking to build distribution centers. McClintock said he has a new card to play in dealing with shipping lines by making use of Charleston’s 48-foot depth. “They understand that this deep water’s valuable. They understand that they can load heavier ships and deeper ships in here and more cargo,” McClintock said. For instance, with a five-foot depth advantage over Savan-

nah on outgoing ships, vessels can load about 500 extra 40-foot containers. “However, you’ve got to have the cargo,” McClintock said. “I could have 100 feet of water and it doesn’t matter if I don’t have the cargo. And that’s what this (the permit increase) does: This helps solve the cargo problem.”

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The sun peeks through snow-covered trees in Greenville last winter. (Photo/Kevin Greene)