2012 SC Biz 1 by SC Biz News

Spring 2012

Growing impact Forestry builds up S.C. economy Womenâ&#x20AC;&#x2122;s center in business S.C. entrepreneurs get timely assistance

Special Section: Cities Mean Business

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Contents Vol.6, Issue 1

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Spring 2012

cover

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Growing Influence

Senior Copy Editor - Beverly Morgan bmorgan@scbiznews.com • 843.849.3115 Special Projects Editor - Licia Jackson ljackson@scbiznews.com • 803.401.1094, ext. 206 Staff Writer - James T. Hammond jhammond@scbiznews.com • 803.401.1094, ext. 201

28... South Carolina’s forestry industry has $17.4 billion impact 34... Restoring the king of pines Cover Photo: A log loader is used in Georgetown to draw freshly cut trees through a debrancher. Logs are then sorted for use by size and quality. (Photo/Leslie Burden)

FeatureS

Staff Writer - Chuck Crumbo ccrumbo@scbiznews.com • 803.401.1094, ext. 201 Staff Photographer - Leslie Burden lburden@scbiznews.com • 843.849.3123 Creative Director - Ryan Wilcox production1@scbiznews.com • 843.849.3117 Senior Graphic Designer - Jane Mattingly production2@scbiznews.com • 843.849.3118 Graphic Designer - Jean Piot production3@scbiznews.com • 843.849.3145 Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143

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Open for Business

Clearing a hurdle

S.C. Women’s Business Center to make counseling available statewide

Westinghouse earns NRC approval for reactor design to be built in S.C.

4 | Upfront

R O L I NA N OF SOUTH CA PA L AS S O C I AT I O OF THE MUNICI A P U B L I C AT I O N

ISSUE 1

2012

8 | Trends 10 | Spotlight: Horry County

Ready, set, go Sports tourism a winner

48 | 1,000 words

for cities

Saving timebusinesses Streamlining helps

Cities Mean Business 2

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

Ports, Log istics

& Distribu ti

chamber president urges

By Chuck Crumbo,

12 20 1,

B U S IN E S S

s.c. Delivers

Cities Mean

SPECIAL SECTION PAGE 37

3 | Viewpoint

SPECIAL SECTION PAGE 25

Departments

on in s.c.

s.c. leaders to suppo rt port

Staff Writer

“We’re already behind the “we need to figure out eight ball to get how we’re going infrastructure improvements in to make charleston this state and successful. if we do the reluctance to put money into it right, it doesn’t matter infrastructure is going to be what savannah downfall of the Charleston the does. we’re going to port and the South Carolina win the battle community,” Rawl said. Rawl worried that otis rawl state leaders president, S.C. Chamber will be preoccupied of Commerce by the state Department of Health and Envi- (Photo/Leslie ronmental Control’s Halpern) decision to issue a dredging permit that will noted, is the key driving force allow the deepening of the harbor the of larger post-Panamax state’s economy. at the Port of Savannah, ships that that federal are a commoney to help pay set to be the norm for the “We need to figure petitor to the Charleston fu- for the $350 million out how ture, following port. project won’t we’re going to make completion of the The decision has Charleston Panama be around after Congress been Canal expansion in implecized by both Democratic criti- successful. If we do it right, 2014. ments another round it Those ships require and doesn’t matter of deep cuts a harbor that in Republican members what Savannah the next budget cycle. of the Gen- does. is 50 feet deep. We’re going to win eral Assembly. the batRawl suggested that Charleston has the tle,” he said. “I’m the state deepest proceed “We’re going to spend the administration hopeful that this harbor in the region alone on the project inat 45 feet but stead whole year now talking , as they talk about of waiting on the about this economic can only accommodate federal issue of Jasper-Savanna development, will the larger government. see ships during h,” Rawl fit to support “We need to think high tides. Harbor said. “What we really the biggest driver of about being prepared need to be economic deepening would to dredge allow 24-hour our focused on is spending development we have access to the port, for us to be able money on in this port. to state and that’s our infrastructure.” ourselves, for us investing do it port.” The Port of Charleston The ports are in a race in our The Port of Charleston, re- infrastructure to deep- ceived Rawl en their harbors to make us sucfunding for the to accommodate initial study phase, but there’s concern See PORT, Page 40 A P u b L i c At i ➤ on of

sc biz news

Ports, Logistics & Distribution in S.C.

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Viewpoint

The state budget: Big numbers, questionable results

ack when I was a small-business revenue, appropriation, expenditure, FTE and owner, necessity required that I make other data through Nov. 15, 2011.” The title myself the leading expert in my com- was dense and so was the data, but at least I pany’s finances. If you’re a business owner or began to grasp some of the basics of the state’s manager, this may sound familiar: In a split- budget. second glance at the latest monthly profit As I have read in the past, the report shows and loss statement or balance sheet, my eye that “general funds” appropriations, the porwould involuntarily land on the one number tion of the budget that gets the most attention that seemed unusual or out of in the press, accounts for only a place. Before I turned off the fraction of total annual spendAs with any mental alarm bells, I made ing. In FY 2010-2011, total exsure I understood why the business, it’s hard penditures were just under $22 number didn’t look right and billion, with $5.2 billion comto grow if you whether it indicated we had ing from general funds, $9.4 a serious problem with some don’t invest in the billion from federal funds and aspect of our business. $7.5 billion from “other funds.” future, and there Recently, I’ve been thinkI’m not yet sure what makes ing about how well I under- are probably many up all those “other funds,” but I stand (or don’t understand) did find that other state fundareas including the business of state governing sources include the highment. In a very real sense, way trust fund ($1.3 billion) education, we’re all investors in South and Education Improvement infrastructure Carolina’s government, and Act funds ($600 million). its success or failure affects A look at “Expenditures by and economic our own personal and busiFunctional Group” was also and industrial ness bottom lines as well as informative. The one number our quality of life. that jumped out at me was the development The state budget has al$402 million spent on correcwhere we could ways been a mystery to me. tional institutions, a full twoHow big is it? Where does the thirds of what we spend on productively revenue come from? How is it higher education ($594 milspend more. spent? Who makes the decilion). sions on expenditures and are Another chart showed the their decisions good ones? substantial amounts shipped To learn more about the state budget, I back to counties and municipalities to make turned to the S.C. Budget and Control Board’s up for property tax relief, also a fairly big Web site, www.budget.sc.gov. I sifted through number. a 117-page document titled “Historical AnalMany of you reading this column probably yses – A compilation of analyses of certain understand the state budget far better than I

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do, but others, like me, ought to make it our business to know more about how $22 billion a year is spent, where the money comes from and how it is appropriated. A few things are obvious. First, for all the carping about the federal government, the state would be in a world of hurt without the huge annual infusion of federal funds that helps support the state’s expenditures. Second, while spending and taxes can always be cut, either can also be increased if warranted. As with any business, it’s hard to grow if you don’t invest in the future, and there are probably many areas including education, infrastructure and economic and industrial development where we could productively spend more. That said, we need to demand better performance from the administrative and legislative branches of state government. For example, legislators recently said they wouldn’t consider raising the state’s gas tax, despite being the fourth lowest in the country. It was said that giving more money to the DOT would be like giving a drunk the keys to the liquor store. If problems such as incompetence, corruption or undue influence are preventing the DOT from efficiently and effectively meeting the state’s needs, that tells me that our elected leaders are not doing their jobs. We’re the shareholders in state government, and we need to hold those who run it accountable for their performance in office. SC

BIZ

Bill Settlemyer bsettlemyer@scbiznews.com

New subscribers: Subscribe online at www.scbizmag.com or call 843.849.3116. Current subscribers: Change your address online at www.scbizmag.com or call 843.849.3116. w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

Upfront r e g i o n al N e ws | D ata

Upstate

Midlands

Lowcountr y

2012 kicks off with BMW and Amazon announcements

n mid-January, BMW announced plans to hire 300 people this year and up to 700 more by 2014 as it adds production of a new X4 sports activity vehicle at its Spartanburg County plant. The company will invest $900 million to prepare for production of the new model over the next two years. “This is one reaction to the rising global demand for our BMX X models,” said company President Josef Kerscher. The X4 will be the fourth model built at the Upstate factory. Others built there are the X3, X5 and X6. Kerscher said the workforce, infrastructure and access to the Port of Charleston play a major role in the company’s continued expansion in the Upstate. BMW is the largest automotive exporter to the non-NAFTA nations. BMW exports 70% of its products. A new assembly line in Spartanburg was opened in 2010, leading to dramatic production growth, from 150,000 vehicles annually to more than 276,000 in 2011. The X4 is expected to increase production at the plant to 350,000 annually. A timeline for the X4’s production has not been released, and no product details could be discussed yet.

9.5% That’s the December 2011 unemployment rate in S.C. South Carolina’s seasonally adjusted unemployment rate fell to 9.5 % in December 2011, the lowest rate since December 2008, when unemployment stood at 9.2 %. The decrease in the most recent December was a 0.4 percentage point drop from November 2011’s 9.9 % rate and was the fourth consecutive monthly rate decline. See more on unemployment on Page 9. Source: S.C. Department of Employment and Workforce

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As for Amazon, the massive online retailer plans to construct a second facility in South Carolina, this time in Spartanburg County. Amazon will invest about $50 million in a 1-millionsquare-foot distribution facility, creating 390 jobs. The facility will be just off Interstate 26, near its interchange with I-85. Amazon’s first S.C. distribution center, in Lexington County, already has a full-time workforce of 550 employees and expects to launch another round of hiring once its 1 millionsquare-foot building is completed and more equipment is installed later this year The Spartanburg plan is part of Amazon’s commitment to invest $125 million and hire 2,000 people by the end of 2013, a

deal the company cut with the South Carolina legislature to receive incentives and exemption from collecting the state sales tax. South Carolina’s location makes it a prime place for fulfillment centers, said Paul Petta, general manager of Amazon’s facility at the Saxe Gotha Industrial Park in Cayce. “South Carolina is a place where we want to grow,” Petta said. “If you look at it logistically, South Carolina is in a great position. The cities that we support are not just in South Carolina, but they are far beyond. They’re in Florida, Georgia, North Carolina and up to Virginia.”

Haley’s campaign against unions has small target Gov. Nikki Haley is waging a campaign in South Carolina against labor unions, pledging to make their finances more transparent and to strengthen the state’s right-to-work laws. But South Carolina has Haley only a small percentage of workers who are union members, according to the latest data from U.S. Bureau of Labor Statistics.

Eight states had union membership rates below 5% in 2010. North Carolina 3.2% Arkansas 4.0% Georgia 4.0% Louisiana 4.3% Mississippi 4.5% South Carolina 4.6% Virginia 4.6% Tennessee 4.7%

Source: U.S. Bureau of Labor Statistics, Union Members Summary released Jan. 21, 2011. www.bls.gov/cps

Recyclers plugging economic value Recycling has become a key cog in South Carolina’s economic development machine. In just the past year, the recycling industry has racked up $330 million in investments and created more than 800 new jobs with 15 new or existing companies. And, over the past five years, the industry has brought more than $4 billion in investments and created 6,000 jobs, said Gerry Fishbeck, chairman of the S.C. Recycling Market Development Advisory Council. The recycling industry includes haulers, collectors, processors, brokers, recycling equipment sales and manufacturers and endusers or manufacturers that take recycled material feedstock and make recycled content products from them, Fishbeck said. Emphasizing the industry’s economic development impact, the S.C. Recycling Council has launched a new initiative called RecyclonomicsSC. The initiative, supported by New Carolina’s cluster strategy, seeks to bring together manufacturers that use recycled materials to create new recycled-content products. The RecyclonomicsSC program aims to promote recycling as a smart, environmentally friendly strategy that can have a positive impact on the state’s economy, said Elizabeth Garrison, president of Greenville-based Evergreen Recycling and a board member of the Recycling Council. “We all know that recycling is good for the environment,” Garrison said. “We are here to show that recycling is about economics. Recycling creates jobs.” The annual economic impact of the recycling industry in South Carolina totals $6.5 billion through jobs, manufacturing of recycled materials and material management.

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6PM Cocktail Reception | 7PM Dinner & Award Ceremony FEATURING KEYNOTE SPEAKER

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AND TOWNES AWARD RECIPIENT

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Add a little EdVenture to your next event. Unique spaces for groups large and small.

Recycling in S.C., 2011 By the numbers $330 million in investments

800

plus in new jobs

$6.5 billion in economic impact

Source: S.C. Recycling Market Development Advisory Council

MEETINGS | PARTIES | CORPORATE EVENTS 211 Gervais Street, Columbia SC | www.edventure.org Information or Reservations: 803-400-1151 w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

Upfront

r e g i o n al N e ws | D ata

Retirees have Carolina in mind The website TopRetirements.com compares data on friendliness to retirement between neighboring states, especially those where retirees most like to move with their money. This month, the site focused on The Carolinas. One striking point noted: The Carolinas are becoming the more desirable alternative to Florida.

Comparison point.......................... N.C................... S.C. Population..................................9.5 million.......... 4.6 million Median home prices....................$130,000........... $114,700 Average temps, high/low...................88/32................. 91/36 Highest overall tax burden...................16th.....................37th Median property taxes *...................$1,209.................. $689 Max income tax rate.........................7.75%..................... 7% Sales taxes**....................................5.75%..................... 6% Estate and inheritance taxes.......... Fed rate.................. None *Both states have homestead exemptions for qualifying seniors that can reduce this amount significantly. **Both states allow local governments to levy additional sales taxes.

Interstates in the News INTERSTATE

The 221 miles of Interstate 26 connecting Upstate manufacturers with the busy Charleston port are urgently in need of improvement, says Otis Rawl, president of the South Carolina Chamber of Commerce. (See more of Rawl’s comments about the port, Page 37.) Vehicular traffic: • 150,000 per day in parts of Charleston County • 140,000 per day in parts of Richland County Cost of widening: • $15 million to $20 million per mile • $40 million for an interchange

Highway Congested Highway

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Amount S.C. has available to spend yearly on interstate improvement: • $144 million Projects in top 10 in priority in the state: • $35.9 million widening of I-26 from Montague Avenue to exit 218 near Charleston • $76.5 million widening from I-77 interchange near Columbia to Old Sandy Run Road, exit 125

A $5.1 million contract to develop final construction plans for a 5.7-mile section of Interstate 73 has been awarded to LPA Group Inc., a Columbia-based unit of Michael Baker Corp., by the S.C. Department of Transportation. The section is between Interstate 95 and U.S. 501 in Dillon County, near Latta. This will be the first section of the new I-73 to be constructed in South Carolina. LPA will provide the final design for the roadway, including 10 bridges, as well as drainage, geotechnical, maintenance of traffic and traffic control, signage, pavement marking, erosion control and utility plans. INTERSTATE

“I’m more than just an SCE&G employee. I’m also an SCE&G customer who cares about South Carolina. That’s why I’m proud to be on the team that is building our two new nuclear units. We’re making great progress on our commitment to our customers – including me – to deliver clean, reliable energy for the future.” SCE&G employees are dedicated to making sure you’ll always have the energy you need—now and into the future.

Johnnie Waller, SCE&G Engineer sceg.com

Tr e n d s S.C. Job Changes by Industry, Dec. 2010 - Dec. 2011 0.4 hours

Government Leisure and Hospitality

That’s the increase in the state’s average weekly manufacturing workweek over the month.

Educational and Health Services Professional and Business Services Financial Activities Information Trade, Transportation and Utilities Manufacturing

Nonfarm payroll employment dropped 3,800 from November to December, but was up 17,800 from a year ago.

Construction Natural Resources and Mining Total Nonag. Employment -10,000

-5,000

5,000

10,000

15,000

20,000

Source: S.C. Department of Employment and Workforce

Aiken and Edgefield Counties, South Carolina

Look Closer.

The Aiken and Edgefield County area is a modern community of cutting-edge manufacturing, worldchanging research and development, all the while being a part of the quintessential Southern experience. • A leader in chemicals, plastics, automotive technology and hydrogen technology • A stable, quality workforce with advanced manufacturing skills • Major highways, rail lines, air service and port access • Small-town atmosphere with proximity to big-city amenities

AIKEN AND EDGEFIELD COUNTIES

For a closer look, contact: Will Williams, Director wwilliams@edpsc.org

P.O. Box 1708 | Aiken, SC 29802 | Phone: 803.641.3300 | Fax: 803.641.3369 | www.edpsc.org 8

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Tr e n d s The 10 Highest Unemployment Rates by State - Dec. 2011 Nevada 12.6% California 11.1%

Rhode Island 10.8%

D.C. 10.4%

New economic development

Announcements made since mid-December 2011 Company

Location

Investment

Jobs

Darlington County

$100 million

SafeRack LLC

Georgetown County

$9 million

TWL Precision

Charleston County

$5 million

Sportsman Boats

Dorchester County

$2 million

Barnwell County

$5 million

Horry County

$1 million

150

Greenwood County

$16 million

Spartanburg County

$900 million

300

Greenville County

$750,000

Spartanburg County

$50 million

390

Sonoco

Climax Global Energy Inc. AvCraft Technical Services

Mississippi 10.4%

Crown Casting Industries

Florida 9.9%

BMW plant expansion

North Carolina 9.9%

Southern Air Repair Amazon

Illinois 9.8%

Pactiv LLC

Georgia 9.7%

Uniscite Inc.

South Carolina

9.5%

U.S. 8.5%

Unemployment by County, Oct. 2011

Aiken County

$5.5 million

Laurens County

$70 million

100

Darlington County

Pratt Industries

Spartanburg County

$3.5 million

Highland Baking Co.

Spartanburg County

$9 million

196

Chester County

$7.89 million

Nucor Corp. expansion

Ring Container Technologies

*Part of a $290 million expansion that includes two other locations Source: S.C. Department of Commerce

- Unemployment has Increased - Unemployment has decreased - Unemployment has remained the same Marion.............. 17.9% Allendale.......... 17.3% Marlboro........... 17.3% Union................ 15.5% Barnwell........... 15.3% Chester............. 15.1% Bamberg........... 14.4% Dillon................ 14.2% Orangeburg...... 14.2% Clarendon......... 13.9% McCormick....... 13.8% Williamsburg..... 13.5% Lancaster......... 13.4% Cherokee.......... 12.9% Chesterfield...... 12.8% Lee................... 12.6% Fairfield............ 12.5% Hampton........... 12.5% York.................. 12.3% Colleton............ 12.2% Horry................ 11.6% Calhoun............ 10.8% Darlington......... 10.7%

Abbeville........... 11.3% Georgetown...... 10.4% Greenwood....... 10.4% Sumter............. 10.3% Florence........... 10.0% Edgefield.............9.5% Newberry.............9.4% Spartanburg.........9.3% Oconee................9.2% Berkeley..............9.0% Laurens...............8.9% Anderson.............8.8% Aiken...................8.5% Kershaw..............8.5% Jasper.................8.4% Richland..............8.3% Pickens................8.2% Saluda.................8.0% Dorchester...........7.9% Beaufort..............7.5% Charleston...........7.4% Greenville............7.4% Lexington.............7.0%

Source: S.C. Department of Employment and Workforce

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Horry County

Special Advertising Section

The Grand Strand’s 60 miles of sandy beaches are ranked “World’s Best Beach” by Yahoo! Travel.

HORRY County

Expanding the economy beyond tourism success Myrtle Beach faces a challenge unique in South Carolina, says Brad Lofton, president and CEO of the Myrtle Beach Regional Economic Development Corporation. It’s extremely successful in tourism – to the tune of 14 million visitors yearly – but there’s an urgent need to expand the economy beyond conventions and vacations. “We’re working on diversifying the economy with non-tourism jobs,” Lofton said. “We have high unemployment here in the county, and we’ve got to create some good-paying jobs.” It’s a revolution in the area, but that’s nothing new for Myrtle Beach. Over the course of its history, a common theme prevails: growth and rebirth. Since the early 1900s, the Myrtle Beach area has grown, evolved and prospered, and the “Grand Strand” has become a worldfamous tourist destination and home to thousands of new residents each year. 10

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For businesses, Myrtle Beach is the ultimate work/life community in the Southeast. It offers a strategic location, proud workforce, superior education, quality health care and commitment to a bright future. These are just a few reasons, economic development leaders say, why an increasing number of businesses are choosing to call this community home. “We’re expecting a record year this year,” Lofton said, discussing the outlook for economic development. “Our efforts are getting attention around the Southeast.” The corporation has about 25 active projects going, he said. Myrtle Beach and surrounding communities are located in Horry County. The county is strategically located in the northeastern corner of the Palmetto State between the port cities of Charleston and Wilmington, N.C., and halfway between New York and Miami. In December, AvCraft Technical Services,

an aircraft maintenance, repair and modification provider, announced plans to expand its operations in Horry County. The $1 million investment is expected to generate 150 new jobs. “Location was a major factor in choosing to expand operations here. Myrtle Beach gives us a centralized location to most efficiently reach our customer base,” Mike Hill, president of AvCraft, said at the time. “Horry County officials and the Myrtle Beach Regional EDC made expanding here a very easy process.” The Myrtle Beach MSA has consistently been ranked as one of the fastest-growing areas in the country, according to the U.S. Bureau of Labor and Statistics. And it is located in one of the 10 states with the lowest cost of labor in Business Facilities’ 2009 Rankings report. Integra Fabrics moved its operations to Loris from Anderson in 1992. The appeal of

Special Advertising Section the beach was strong, said Debbie McArthur, company president. When Integra sought to expand six years ago, the company was able to move into a 70,000-square-foot building on 17 acres, with incentives from Loris and the state. The company, which does heat-transfer printing of fabrics on contract for the hospitality and health care industries, “came here to stay and grow,” McArthur said. Company officials are looking to add a division to sew their products, which will require training. McArthur speaks highly of nearby Coastal Carolina University, whose business school has provided three of the company’s top employees. The area boasts a quality workforce, tax and financing incentives, prime building sites and a low cost for doing business. South Carolina helps fund the training needs of South Carolina businesses through major workforce training options. As an integral part of the S.C. Technical College System, the readySC program provides qualifying companies with a pretrained and productive workforce from the first day of operations. This state-funded program offers recruitment, assessment, training

Horry County

Coastal Carolina University is ranked by Forbes magazine as one of America’s “100 Best College Buys” for delivering outstanding value for the cost of education.

development, management and implementation services to companies who are creating new jobs with competitive wages and benefits. Each training program is customized to meet company standards. Almost without exception, readySC is provided at little or no cost to the company. South Carolina supports existing companies by offsetting a portion of the cost asso-

ciated with the retraining of existing workers. The retraining must be approved and coordinated by Horry-Georgetown Technical College.

Education The Horry County School District boasts 48 schools, including two academies with concentrations in technology, science and

Myrtle Beach, SC

A world recognized location with strategic business advantages

With the fastest growing labor force in the U.S., the Horry County business environment is highly conducive to finding, recruiting, and retaining the type of employees your business needs to succeed. MYRTLE BEACH REGIONAL ECONOMIC DEVELOPMENT

P.O. Box 261966 | Conway, SC 29528-6066 | 843-347-4604 www.mbredc.org w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

Horry County

Special Advertising Section

Higher education COASTAL CAROLINA UNIVERSITY 2011 fall enrollment............................... 8,772 Full-time faculty members........................ 353 Student-to-faculty FTE Ratio.................... 18:1 Average range SAT score for first-time freshmen..........................920-1080 • 54 major fields of study • Seven master’s degree programs • More than $115 million in major construction currently under way HORRY-GEORGETOWN TECHNICAL COLLEGE Approximate enrollment......................... 7,314 Full-time faculty members........................ 134 Part-time faculty members..... more than 134 Student-to-faculty ratio............................ 18:1 arts, and an Early College High School. There are also eight private school options and three charter schools with specialized concentrations. More than $500 million has been invested in Horry County schools over the past decade. That’s an investment for the area’s future, with nearly 20 schools built and valuable technology and facility upgrades made during

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that time. Horry County Schools have proudly produced National Merit Scholarship semifinalists who go on to win national scholarships. The robotics team, made up of high school students from the Academy for Technology and Academics, also competes nationally in projects with NASA. Seven schools have been named National Blue Ribbon Schools of Excellence by the U.S. Department of Education. The district’s SAT scores are 33 points above the state average. Additionally, 94% of high school students who sought International Baccalaureate diplomas received them. Horry County Schools have the highest-performing IB program in the state. Palmetto Achievement Challenge Test scores outpace the state at every level and Horry County is the first district in South Carolina to earn district-wide accreditation. Fueled by excellence in the K-12 education system, Horry County has three institutes of higher learning. It is also within a half day’s drive to some of the most prestigious universities in the country, such as Duke University, Georgia Tech, Medical University of South Carolina, Clemson University and University of South Carolina.

Continuing education Coastal Carolina University and HorryGeorgetown Technical College offer a multitude of opportunities for retraining and/or educational advancement with degrees and certification programs in more than 60 fields of study. Webster University provides workers with an alternative educational opportunity to complete their graduate degrees. The Pittsburgh Institute of Aeronautics opened a Myrtle Beach campus in 2011. It is located at the International Technology and Aerospace Park, near Myrtle Beach International Airport. PIA’s airport location provides an ideal atmosphere for aviation training as well as aircraft accessibility to the school’s facilities. The first class began in January with an enrollment of 33 students for the Aviation Maintenance Technician program. In nearby Florence, the Southeastern Institute of Manufacturing and Technology provides technical service and a training facility for industry in the Southeast. It’s the first facility of its kind in the United States and features an Advanced Manufacturing Center, a Virtual Reality Center and a National Robotics Center. SIMT offers open enrollment, onsite and

Special Advertising Section “Myrtle Beach was an amazingly good fit customized training as well as manufacturing for us. Our employees were the best surprise, startup assistance and consulting services. and we have had an incredible technology partnership with the Horry Telephone CoopUtilities As with most businesses, utility costs are erative,” said Jeff Littlefield, vice president of a major factor in location decisions. Horry operations of BlueCross BlueShield of South County has abundant supplies of electric, gas Carolina subsidiary PGBA. The company operates a technology and and water at competitive rates that are 24% below the national average. Fiber optic tele- claims processing support center in Surfside communications are installed throughout the Beach. Also the Grand Strand Water & Sewer county, served by major phone and Internet providers including Horry Telephone Coop- Authority has invested $120 million in facilities in the last two years alone and currently erative and Verizon.

Horry County

has more than 1,400 water distribution lines throughout the county and 1,200 miles of sewer lines.

Transportation Horry County provides access to the world via its roads, rails and ports. Port proximity is important to Metglas Inc., which develops and commercializes amorphous metal in Conway. “Ninety percent of our sales are off-shore,” said Dodd Smith, president and chief operating officer of Metglas. “The Port of Charleston

Myrtle Beach Regional Economic Development Corp. Mission statement: Myrtle Beach Regional Economic Development Corporation is a public/ private partnership dedicated to diversifying the economy of Horry County. Our mission is to provide professional business recruitment and expansion services, location assistance, and economic and community information on the Myrtle Beach region of South Carolina in an effort to facilitate the growth of this great area. It is our vision to make Myrtle Beach the preeminent place to do business in the Southeast. Contact a staff member: Brad Lofton President and CEO, blofton@mbredc.org Kate MacArthur Director of Marketing and Existing Industry, kmacarthur@mbredc.org Kelly Stuart Director of Recruitment, kstuart@mbredc.org Laura Townsend Business Manager, ltownsend@mbredc.org Candace Howell Membership Director, chowell@mbredc.org

Helping business turn potential into prosperity. For more than 60 years, Nexsen Pruet has been working with regional, national, and international companies to turn their potential into prosperity. With more than 185 lawyers and 30 practice areas, we have the skills and experience to help you capture all of the opportunities within your reach. And by doing that, we can keep you on the road to success for years to come.

www.nexsenpruet.com 11 0 1 J o h n s o n A v e n u e , S u i t e 3 0 0 , M y r t l e B e a c h , S C 2 9 5 7 7, F r a n k l i n D a n i e l s – M a n a g i n g P a r t n e r R A L E I G H G R E E N S B O RO C H A R LOT T E G R E E N V I L L E CO LU M B I A M Y R T LE B E AC H C H A R L E S TO N H I LTO N H E A D

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Horry County

Special Advertising Section

Myrtle Beach International Airport is undergoing a $118 million terminal expansion project that will be complete in the first quarter of 2013.

is a huge advantage for us. Within two hours, our products leave our plant and are on the way to our customers.” The company ships 80 to 150 containers per month through Charleston, most of them headed to Asia. The company is located 100 miles from the Port of Charleston via U.S. Highway 17. The port is ranked 10th nationally in tons of shipments, according to the 2009 U.S. Army Corps of Engineers, Waterborne Commerce.

Additionally, the Port of Wilmington, N.C., is just 86 miles from Myrtle Beach, and the Port of Savannah is 200 miles away. CSX Transportation, Norfolk Southern and seven affiliated and independent lines combine to offer rail service seven days a week in every metro area, operating almost 2,300 miles of rail in South Carolina. The county is also well-connected by major highways:

‘The cost of doing business in Myrtle Beach is very favorable.’ -- Dodd Smith, Metglas

• U.S. 501 from the west connects Myrtle Beach to South Carolina’s network of highways • U.S. 17 from North Carolina (from north) and Charleston (from south) • 65 miles from Interstates 95 and 20 via U.S. 501 and U.S. 76/301 • Newly constructed Carolina Bays Parkway (Route 31) and Conway Bypass (Route 22)

Last year 90% of our graduates found jobs or successfully transferred to four-year colleges for additional study. Best of all, they paid less than one-third the cost of tuition for regional public and for-profit colleges. With 70 technical areas of study and student-friendly faculty at HGTC, you’ll find a program that fits your future.

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Special Advertising Section

Horry County

G lf and Capital so much more Myrtle Beach should see job growth of 3% in 2012, according to forecasts by IHS Global.

• Planned Interstate 73 will connect Myrtle Beach to Sault Ste. Marie, Mich. The connection to the interstate highway system is being pursued to make the area more attractive to industry. It can be difficult to talk to business about coming into the area when there is no interstate, said Dodd Smith of Metglas, who is also chairman of the Horry Industrial Alliance.

Infrastructure Within the next five years, an additional $450 million will be spent on creating or improving four industrial parks for development in Horry County with two of the new industrial parks focused on the aviation and marine industries. The International Technology and Aerospace Park (iTAP) is a 460-acre industrial park with an aviation focus. Opened in January, the park features completed infrastructure, buried fiber optic, an all-digital IP-based network and access to a 9,500-foot lighted runway. iTAP has been designated a South Carolina Certified Site. It is located on the Myrtle Beach International Airport and is adjacent to The Market Common, an upscale lifestyle center offering shops, restaurants and living accommodations. The Pittsburgh Institute of Aeronautics is also located next door to the park, and iTAP is within 100 miles of Boeing’s new Charleston facility via a fourlane U.S. highway. Bucksport Marine Industrial Park is a 200acre park slated to be move-in ready by early 2013. Located on the Intracoastal Waterway, this industrial park offers premier access to the Ports of Wilmington, Charleston, Georgetown and Savannah and is uniquely situated

Besides the 60 miles of white sandy beaches along the Grand Strand, Horry County is known as the “Golf Capital of the World.” It has: • Four Grand Strand courses named on Golf Magazine’s “Top 100 You Can Play” list; • 13 Grand Strand area courses ranked among the Top 20 in South Carolina; • Two Grand Strand golf schools ranked in Top 25; • Seven Grand Strand courses among “America’s 100 Greatest Public Golf Courses” in the 2009-2010 listing by Golf Digest. However, golf is not the only interest that is supported in the area. There are nine major shopping centers including Broadway at the Beach, Barefoot Landing and two Tanger Outlet malls. Nine area marinas offer access to water recreation such as parasailing, scuba diving, kayaking, boat rentals, jet skis, dolphin cruises, fishing charters and more. Myrtle Beach is home to the Myrtle Beach Pelicans, a minor league baseball team, and the Myrtle Beach Stingrays/Carolina Rays, a part of the National Indoor Football League. There are nine campgrounds, two state parks, five museums and an art and sculpture garden. Other entertainment options abound with shows and concerts available at Alabama Theater, the Carolina Opry, Legends, Long Bay Symphony, Pirate Adventure, Medieval Times, the Palace Theater and the Wheelwright Auditorium.

Committed to helping our clients and the people and communities they serve grow and prosper.

Henrietta U. Golding Shareholder hgolding@mcnair.net | 843.444.1107 McNair Law Firm, P.A. Founders Centre 2411 Oak Street, Suite 206 Myrtle Beach, SC 29577

Labor / Employment Litigation Commercial Litigation

To learn more about our attorneys and areas of practice, visit: www.mcnair.net

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TH_SCBIZ_Ad_Feb_2012.pdf 1 2/2/2012 9:42:53 AM

Special Advertising Section

CMY

At top, the upscale urban village, The Market Common, offers office, retail, and residential space. Above, Horry County gives exporters a location between ports of Charleston and Wilmington, N.C.

for marine manufacturing, product testing ogy and headquarters, marine manufacturing and back office industries, such as medical and convenient shipping. and credit card billing.

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South Carolina and the Myrtle Beach region offer a pro-business atmosphere. South Carolinaâ&#x20AC;&#x2122;s tax structure is designed to encourage economic growth and prosperity. The state does not levy inventory, unitary or wholesale taxes, and industries receive tax exemptions from sales tax on industrial machinery and electricity. In addition, Horry County offers local cash incentives up to $4,000 per job on qualifying projects. The Myrtle Beach Regional Economic Development Corporation has a $2.1 million budget and for the first time has a closing fund and a product development fund, said Lofton, who has been on the job since April 2011. The efforts are targeted toward four good prospects for the area: aviation, technol-

Quality of life Quality of life is an attraction for Horry County. Besides the 60 miles of white sandy beaches along the Grand Strand, the area is known as the â&#x20AC;&#x153;Golf Capital of the World.â&#x20AC;? There is something for everyone in Myrtle Beach. â&#x20AC;&#x153;This is my home,â&#x20AC;? says Ebbie Phillips, president of Tyson Sign Co., which in 2005 moved into a 50,000-square-foot state-of-the-art manufacturing facility in Conway. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve traveled the world but I always come back to this place. I love it here and Iâ&#x20AC;&#x2122;m committed to making this company and this region great.â&#x20AC;? Sources: Myrtle Beach Regional Economic Development Corporation, S. C. Department of Commerce, Staff Reports SC

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Phillis Kalisky-Mair, right, owner of the Patat Spot restaurant, gets advice on bookkeeping from Christie MacConnell, director of the S.C. Womenâ&#x20AC;&#x2122;s Business Center. w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

hillis Kalisky-Mair had 27 years of experience in the food industry, most of that time working as a server, when she and her husband, Jeff Mair, opened their own restaurant last year. The pair own the Patat Spot Friet and Falafel in Charleston. The European-style snack restaurant near the College of Charleston serves fresh hand-cut fries with toppings and falafel-filled pita pockets with a topping bar. But they struggled with several aspects of running a business. Enter Christie MacConnell, director of the new S.C. Women’s Business Center. KaliskyMair was referred to MacConnell by Jennett Robinson Alterman, executive director of the Center for Women, who in the course of visiting the restaurant learned that the entrepreneur could benefit from business counseling. “Christie helped me with managing people,” said the restaurant owner. She learned to respect limits in scheduling her 16 employees, most of whom are college students with busy class schedules, while still stressing customer service. MacConnell also counseled her on financial planning and records. “We can help existing businesses get a stronger foothold,” MacConnell said. “We can help improve their odds of surviving.” For women who are starting or who already own businesses in the Charleston area, the Center for Women’s entrepreneurial and business programs have been a major resource. Now, those programs are being taken statewide through the new S.C. Women’s Business Center. A grant from the Small Business Administration is making the statewide expansion possible, said Alterman, executive director of the Center for Women. The five-year, $750,000 grant will fund the S.C. Women’s Business Center, which will operate out of the Center for Women’s office in Charleston. Initially, the program will offer counseling, education and technical assistance for women in Charleston, Berkeley and Dorchester counties, but by the end of the year the plan is to have a presence in Greenville, Alterman said.

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Phillis Kalisky-Mair â&#x20AC;&#x2DC;s restaurant near the College of Charleston depends on students as both customers and employees. (Photography Leslie Burden)

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Three entrepreneurs’ stories

Laura Olsen

Vicki Pittman

Corrie Silvers

Business: Laura Olsen Imagery, specializing in children and pets photography

Business: Family Matters Cleaning Services, commercial, home and apartment cleaning; staging for real estate open houses; porter services for events

Business: Teacups and Trucks, theme parties for children

Her story: Olsen got involved with the Center for Women around nine years ago, wanting to develop as a businesswoman. At the time, she was working in real estate in Charleston. Then two years ago, she started her photography business. “I wouldn’t have had the courage to go into business myself if I hadn’t seen the great example of all the women they (the center) bring in,” Olsen said. The example they set was a major boost. She attended the Entrepreneurial Women in Business program series, with panelists giving advice on the nuts and bolts of starting and running a business. Later, whenever she had a question, someone at the center would answer her or refer her to someone who could. Partnering with the center to use her services, Olsen photographed numerous events, which in turn helped build her business. Working at center events and networking helped build strong friendships as well, she said. “Women in the community know me from that.”

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Her story: Vicki Pittman started her business in 2007 as a cleaning service franchise. She attended some programs at the Center for Women, where she was encouraged to break out on her own. Pittman took that advice in 2010, but found there were gaps in her experience. “With a franchise, they do all the paperwork,” she said. “I didn’t have experience with that. My office became a room in my home with receipts and papers everywhere.” She applied for a $1,000 micro loan from the Center for Women. When she received it, she used the money to equip her home office with a filing cabinet, laptop computer, desk and chair. There was also enough money to hire someone to set the office up. Pittman looks to the center’s programs for training and to answer questions. “They have an expert to talk to you.” Family Matters serves the Charleston area but plans to expand, looking into government contracts. Pittman, who has a regular full-time job with CSX, wants to turn the business over to her 23-year-old daughter and work for her.

Her story: Life’s a party for Corrie Silvers – she enjoys decorating and working with children. She found that many parents hate dealing with birthday parties and were willing to hire her to make a party special and stress-free. That’s how the now two-year-old Teacups and Trucks was born. Silvers brings everything needed for the party – tables, chairs, decorations, favors, costumes – to whatever venue is chosen: a yacht, a park, a home. Other entrepreneurs sent her to the Center for Women for business advice. Silvers was just in time for the S.C. Women’s Business Center’s startup, and she has been meeting with director Christie MacConnell. “They actually care about me and how I’m succeeding,” she said. She received one of the first micro loans from the center. That was huge, because it helped her buy a van. Before, she was limited to her personal car. “This catapulted our business. We could do more parties and expand our themes,” she said. Now, in addition to Silvers and her fiance’, she employs four others, and they usually put on five or six parties each weekend.

MacConnell, director of the S.C. Women’s Business Center, has more than 15 years’ experience in business counseling and economic development. She worked at one of the first such centers, the Maine Women’s Business Center, where her clients owned businesses such as pile-driving companies, fishing boats and marble countertop manufacturers. “We offer free one-on-one counseling service for women in business,” MacConnell said. The counseling is confidential and is available to women in all stages of business development. An entrepreneur can receive help with developing a business plan, growing an established business, preparing financial reports, finding a micro loan and networking. For those without a business center location in their community, there’s a plan to offer programs online so that anyone in the state will have access. The basic workshops can be set up as a webinar, so they can be viewed at any time, MacConnell said. The S.C. Women’s Business Center is gearing up slowly, getting the word out about its services in the first quarter of 2012 and looking for partnerships around the state, Alterman said. In the Lowcountry, partnerships have been established with the Charleston Metro Chamber of Commerce, Small Business Development Centers, Community Development Corporations, SCORE and other groups serving entrepreneurs. Myrtle Beach will be the next target area after Greenville, and Columbia will be a constant, the site for a statewide conference specifically for women business owners in South Carolina, now in the planning stages. A networking group will soon start meeting once a month in Charleston. Entrepreneurs tend to be isolated, MacConnell said, and need to connect with other women to get ideas and referrals. The networking group will be replicated in other parts of the state. Alterman places women entrepreneurs on the cutting edge of a major economic development trend. “This will put South Carolina back to work,” said Ginger Rosenberg, the Center for Women’s marketing coordinator. An example: The Center for Women gave three micro loans of $1,000 each to three entrepreneurs and these have resulted in seven or eight full-time jobs. “They are doing the same thing Boeing

is doing, on a more modest scale,” Alterman said. According to the Center for Women’s research, there are an estimated 157,400 women-owned or equally owned firms in South Carolina, employing 191,200 and generating $27 billion in sales. Between 1997 and 2011, women-owned businesses in South Carolina grew at a rate of 64% compared to the national average of 50%. The growth in women’s entrepreneurship can be explained in part by the loss of jobs and opportunities for women in South Carolina, especially during the economic downturn. On average, a woman in the state earns 78 cents for every $1 a man earns. Alterman said the new Women’s Business Center is looking for donors to set up a small loan pool for entrepreneurs. The payback rate for women is high, Alterman said; creating a relationship with the client helps ensure repayment. “When women find success, the first thing they do is feed their family and educate their children,” Rosenberg said. A small loan that supports a woman’s business can have an impact on her whole family. Women’s Business Centers are found in all 50 states. North Carolina and Florida have three each and Georgia has two, according to the directory of the Small Business Administration’s Office of Women’s Business Ownership. The Center for Women is a non-profit that has been offering personal and professional development resources for women in the Lowcountry for more than 20 years. The center began programs for women entrepreneurs in 2002 and saw the need to expand this assistance. Since early 2009, the center’s Successful Job Search Strategy program has assisted 400 women affected by job loss. The Center for Women approaches women’s success from a holistic perspective, Alterman said. In the background there may be an elderly parent with Alzheimer’s, a personal health concern, a child with special needs or a divorce to get through. The center provides support services to help deal with these challenges. For assistance from the S.C. Women’s Business Center, contact Christie MacConnell at (843) 763-7333, ext. 212, or e-mail info@scwbc.net. To find out more about programs, go to www.scwbc.net.

Are you ready to start your own business? One role of the S.C. Women’s Business Center is to help a would-be entrepreneur decide whether she is on the right path. Here are some things to consider: • • • • • • • • • • • • • •

BIZ

• •

Where is the money coming from? Who will be your competitors? What is your target market? How will you reach it? What will your target customer be willing to pay? What sets your product apart from other similar ones? How will you get your product to the customer? Do you have the support of your spouse and children? Where will you work? Is what you want to do a hobby or a business? Will this be your main source of financial support? Are you a self-starter? How well do you get along with different personalities? Are you good at making decisions? Do you have the physical and emotional stamina to run a business? How well do you plan and organize? Is the business in your area of expertise? Source: South Carolina Women’s Business Center and Christie MacConnell, director.

S p r i n g 2 01 2

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Cities Mean

Business A p u b l i c at i o n o f t h e M u n i c i pa l As s o c i at i o n o f S o u t h Ca r o l i na

Ready, set, go Sports tourism a winner for cities

Saving time

Streamlining helps businesses

Issue 1

2012

You see a police carâ&#x20AC;Ś

We see a police officer who works closely with fire departments and EMS, who knows every business owner downtown, who can name every city street and who buys 12 snow cones on Saturdays even though his T-ball team has never won a game. www.CitiesMeanBusiness.org

Contents 12 Sports tourism Cities, towns play to their strengths By Amy Murray Cover: More than 100 professional athletes competed for the US Cycling Road Race Championship in Greenville in a 115-mile race. (Photo/Casey Gibson)

Cities Mean

Business

6 Streamlining processes

A publication of Municipal Association of South Carolina 1411 Gervais St., P.O. Box 12109 Columbia, SC 29211 803.799.9574 mail@masc.sc www.masc.sc

Saving time and money

By Amy Geier Edgar

Miriam Hair Executive Director, Municipal Association of SC Reba Campbell Deputy Executive Director, Municipal Association of SC

9 Hit the trail The Palmetto Trail weaves through cities and towns

Editorial staff Meredith Waldrop Mary Brantner Contributing writers Amy Geier Edgar Amy Murray

Published by

www.scbiznews.com

Features

Cover Story

By Amy Geier Edgar

DepartmentS 4 Letter from the Editor

5 Companies are Coming

By Bobby Hitt

S.C. Secretary of Commerce

By Reba Hull Campbell

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 3

Letter from the

editor

When businesses consider opening in a particular area, many factors influence the decision whether to locate in a certain city or town. This issue of Cities Mean Business magazine takes a look at several of these factors that make a difference for companies looking to relocate or expand. Commerce Secretary Bobby Hitt notes in his column that cities and towns play a critical role in â&#x20AC;&#x153;setting the tableâ&#x20AC;? for companies to visit, and locate in, South Carolina. He encourages local leaders to think about the inventory such as buildings, water and sewer, that cities and towns need to have ready when companies come calling. Cities and towns can also be ready for business by streamlining their permitting and licensing processes to be more business-friendly. We focus in this issue on several cities that are cutting down on time-consuming processes for the business owner and the local government. Quality of life amenities are also critical when companies are making location decisions. Sports tourism is proving to be a big success for cities that have found their niche with ongoing events and tournaments. Also, the Palmetto Trail, running through 26 cities and towns across the state, brings tourism dollars and attention to these communities. Taken together, quality of life, ease of doing business and necessary inventory will ensure that cities and towns are ready to welcome new business and new jobs to their communities.

Reba Hull Campbell rcampbell@masc.sc

Editor

4 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

Companies are Coming

Cities and towns get ready – companies are coming By Bobby Hitt, S.C. Secretary of Commerce

Traveling South Carolina’s highways and

Capitalize on what is naturally great about your

roads thousands of miles per month gives me a great

community, and how you can put a fresh face on it.

perspective on our state’s cities and towns. I am

I love to meet up with local folks and hear them

excited with what I see. Cities and towns are the

brag about what they have been working on in their

center that defines an area. They are the soul of a

town. I can tell you businesses are very positive about

region and of our state.

that. They want to be where there is a feeling of

For companies wanting to locate or expand in Bobby Hitt

South Carolina, cities and towns should be “setting

success, not a feeling of desperation. Often cities and towns focus on downtowns first as

the table.” Economic development is like setting up for

the focal point for economic growth, but businesses

the family holiday celebration: Spruce up for the

are trying to locate in an area as good capitalists. They

occasion; show your best.

are not interested in revitalizing a city’s downtown.

The South Carolina Department of Commerce can

They locate to make a profit, and will end up where

help cities and towns set the table by helping improve

they can be successful – where there is a strong talent

the product by supporting community development

force, low costs of doing business and solid inventory.

and infrastructure projects. Inventory, such as

I believe a community needs two things to be

buildings and sites for economic development, is key.

successful: payroll and retail. I think manufacturing is

Of the projects we worked last year, more than 70

the real driver of this. Once a facility locates in a

percent involved companies looking for a structure

community, people get to work and retail emerges;

that was ready and available. Cities and towns must

all of which create jobs and build community. An

develop property that has water, sewer and transpor-

offshoot of a healthy economy is trade. An announce-

tation access – development parks set aside for

ment of 100 jobs in a small town can make a big

industrialization.

impact. There is nothing more exciting for the

South Carolina has a history of one-industry

Department of Commerce than when we are able to

towns, and in some cases we are still digging out from

locate a company – especially one in a small commu-

that. It was a good model for a period of time, but it is

nity – and 150 or 200 people go to work. We know it

not a good model going forward. We need diversity.

will change that community.

Each community really has to look inside itself and

The emotion and energy of the Department of

ask what makes it unique, what makes it more than a

Commerce are toward creating jobs and having an

wide spot in the road?

impact, but we can’t do it without the cities and towns.

What assets does your city have? What makes your town special now, not just what you want it to be?

A publication for the Municipal Association of South Carolina

Companies want to see successful cities and towns. Give them something you can brag about.

•

www.citiesmeanbusiness.org | Cities Mean Business 5

B u s i n e ss P r o c e ss e s

Municipalities minimize time, costs By Amy Geier Edgar

evelopers in Hilton Head Island were

A number of local government leaders

The stakeholders suggested the creation

frustrated. The townâ&#x20AC;&#x2122;s commercial

have found that they, like Hilton Head

of Project Advocates -- one person who

permitting process was time-con-

Island, can have a hand in job creation by

would walk the developer through the

establishing an environment that is con-

process from the first day to the end of the

focused on doing their own thing rather than ducive to growth. And with Main Street

process. They also suggested that the town

communicating with each other as a whole.

businesses making up a large sector of job

simplify and streamline its forms and make

growth, the role that local government plays

them available online.

suming, and different departments seemed

Town leaders heard the concerns, and they took steps to streamline the process. The Town of Hilton Head Island brought

is perhaps now more important than ever. Hilton Head Islandâ&#x20AC;&#x2122;s regulations had been

Along with those changes, the town also took steps to reduce hand-offs from staff to

together 60 stakeholders -- including archi-

formed to balance preserving a delicate barrier staff, and to minimize the number of times

tects, land planners, attorneys and develop-

island with the rapid growth of new develop-

that developers had to appear before boards,

ers -- to ask them about their experience in

ment in the 1990s. Yet, two decades later and

a process that adds time and expense.

obtaining needed permits. The result was a

facing a vastly different economic climate,

six-month effort to simplify the commercial

town leaders recognized changes needed to be

work of another committee that is rewriting

permitting process, said Jill Foster, Hilton

made to spur redevelopment and minimize

zoning and land-use regulations. The work of

Head Island deputy director of community

time and cost to both property owners and

that committee likely will take another year

development.

government, Foster said.

to complete, Foster said.

6 Cities Mean Business | www.citiesmeanbusiness.org

The changes go hand-in-hand with the

A publication for the Municipal Association of South Carolina

Left: The Boeing 787 Dreamliner arrived in North Charleston recently. The city worked to get Boeing’s certificate of occupancy in record time. (Photo/Leslie Burden). Above: Mount Pleasant’s BIZ INC offers new businesses an array of services, including office space. (Photo/Town of Mount Pleasant)

Meanwhile, the changes to streamline,

and site photos were added to the ordinance

the commercial review process; shows the

reduce redundancies and educate

so that a developer can better understand

design guidelines for commercial develop-

developers on the permitting process took

the standards. The town designated one staff

ment; provides applications and checklists;

effect in October 2011, and feedback has

member within the planning division and

and links back to permitting within the

been positive, Foster said. Town officials are

one within the building division as the main

building division.

hoping the changes will encourage more

point of contact for commercial approvals.

developers to take a chance and move for-

These contact people can guide a developer

have been to make the process for approv-

ward with business plans.

through the process and even follow up with

als more expeditious, more predictable and

outside departments or agencies to help

more business friendly,” DeMoura said.

The new environment is more supportive of business, said Todd Theodore, vice president of the landscape architectural firm Wood + Partners.

move a project forward, DeMoura said. To reduce the number of times developers

“The goals associated with these changes

The Beach Company has been working on a large scale mixed-use development in

must go before boards and commissions, the

the town for more than a year. The town’s

town brings in a design review staff member

efforts to streamline the submittal and review

helping us to find solutions,” Theodore said.

from the beginning on commercial projects

process have helped to reduce the amount of

“The idea is to be more supportive in the

that may also require rezoning or special

large format paper submittals, resulting in

process, knowing that there’s an investment

exception approvals. Although commercial

more timely feedback on review items and

being made into the community.”

design approvals may not be granted until all

overall improved efficiency for all parties,

other board approvals have been finalized,

according to Daniel Doyle, vice president of

own changes to provide a positive environ-

allowing reviews to occur simultaneously

development at The Beach Company.

ment for businesses.

greatly reduces the length of time for approv-

“Instead of throwing out obstacles, they’re

Other municipalities are making their

The Town of Mount Pleasant has been working to streamline its permitting process. The majority of the changes have been to the

als prior to issuance of a building permit,

enabled us to implement revisions in

DeMoura said.

response to staff comments within a shorter

In addition, the town launched a new

commercial review approval and permitting

website that allows people to apply online

process, according to Town Administrator

for rezonings, variances and even commer-

Eric DeMoura.

cial design review. Submittals can be made

The regulations for commercial design

“This enhanced communication has

electronically and fees paid online. The new

timeframe, resulting in a faster turnaround and fewer delays,” Doyle said. “We appreciate the town’s efforts toward this process improvement.” Officials with the City of Sumter knew

were rewritten to provide greater clarification

website also includes a page for the

they also had to make improvements to their

and flexibility, DeMoura said. Architectural

commercial approval process, which explains

application process as they struggled with

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 7

Business Development Coordinator Quin Stinchfield. Katherine Fishburne moved her company, Innovink, into BIZ INC. in August. “The program has helped me by providing me an affordable, exceptional working environment, where I can bounce creative ideas off of the other tenants, and discuss the learning curves that we’re all facing as new entrepreneurs,” Fishburne said. “It has also helped with exposure in the local community that I would never have been able to achieve, or afford, at Tidal Design, one of the BIZ INC. companies in Mount Pleasant, creates a triadic color scheme for a current design project using a color wheel. (Photo/Mount Pleasant)

this stage in my company’s growth.” A city’s assistance in the business process helps not only small, local companies, but

customer wait times averaging 38 days and

instance, perform “feasibility” inspections for

problems with internal communication, said

new businesses looking to locate in a specific

Sumter Communications, Tourism and

facility. The cities will visit a potential site

inspections department, working in con-

Recreation Director Susan Wild.

with the business owner and review zoning

junction with the Boeing Company and its

also major industry as well. The City of North Charleston’s building

The Business License Department turned

considerations and do code evaluations for

facility design and construction teams, was

to “Kaizen,” a program based on the Japanese

the proposed use. This prevents small busi-

able to provide a certificate of occupancy

word meaning “improvement” or “good

ness owners from making costly mistakes by

for its 650,000-square-foot final assembly

change,” to eliminate waste. The goals of the

letting them know upfront what they need to

building seven months ahead of schedule,

program were to reduce process cycle time

move into a new site.

said Ray Anderson, special assistant to

and improve customer service throughout the department. The efforts paid off, with the business

And several cities, including Mount Pleasant, Charleston, Columbia and Green-

the mayor. The feat was accomplished because the

wood, work hands-on with new companies

building inspections department – with

license office establishing a single contact

through business incubator programs.

support from the zoning, fire and public

point for customers, speeding up service

These incubators nurture emerging small

works departments – administered inspec-

times, and improving communications

businesses by providing a variety of busi-

tions immediately, at the contractor’s request,

among departments, Wild said.

ness support services, shared resources

Anderson said.

Customers said they have noticed the

and networking opportunities. The goals of

North Charleston has proved before

changes during recent experiences with the

incubation programs typically are to create

that they can assist businesses on a tight

business license department.

or retain jobs in a community, foster a com-

timeframe. As with Boeing, the city worked

munity’s entrepreneurial climate, and grow

closely with Sam’s Club on the completion

the local economy.

of a new building to meet a quick relocation

“The business license staff was extremely helpful and jumped right on the issues we needed to clear up,” said Marty Atkinson,

Mount Pleasant’s incubator program, BIZ

deadline. The city responded to inspection

controller at Sumter Transport Co.. “Their

INC, offers a wide array of business support

and permitting requests around the clock,

office was very busy that day, but their cus-

services and resources such as fully furnished

and even maintains a three-person team

tomer service was top notch. They were cour- office space and equipment, networking

from the building, zoning, and code enforce-

teous to everyone in line and took care of

events, educational seminars and marketing

ment departments on Saturdays.

each person quickly and professionally. They

assistance.

were a pleasure to deal with.” There are numerous other ways that

“North Charleston understands that

“We have a vested interest in these busi-

private business and industry do not stop at 5

nesses succeeding because we want them to

p.m. or on the weekends, and we refuse to be

municipalities support small businesses.

graduate from the program and locate in the

the impedance to any enterprise looking to

Both Rock Hill and Spartanburg, for

Mount Pleasant business community,” said

operate in the city,” Anderson said.

8 Cities Mean Business | www.citiesmeanbusiness.org

•

A publication for the Municipal Association of South Carolina

the Palmetto

Cross-state pathway economic asset to cities and towns By Amy Geier Edgar

outh Carolina’s terrain is rich and

conversions. It passes through two Revolu-

Steven P. Wolochowicz. “They often stop in

varied, ranging from mountain ridges

tionary War battlefields, cemeteries and

our office looking for trail maps.”

to forests, from swampy marshes to

waterways, all of which are part of the

pristine coastlines. Linking all of these diverse natural resources with cities and

Wolochowicz said most of those visitors

tapestry of the state’s history.

are from other parts of the state, and most

Visitors want to experience the trail’s

are avid outdoors people who have hiked

towns along the way is the Palmetto Trail, the

story, and that means an economic impact

other trails in the state. The trail is a fun

state’s largest bicycle and pedestrian project.

to towns and cities. Both local residents

recreational opportunity for visitors, but also

The trail aims to promote conservation and

and tourists have taken advantage of the

an important conservation effort, he said.

outdoor recreation, all while positively

trail’s recreational opportunities, and often

“It’s a pretty area, very natural. It’s a

impacting the economic development of

stayed to check out the surrounding towns,

great resource,” Wolochowicz said. “As we

cities and towns in its path.

Britt said.

see the county grow, the importance of

The Palmetto Trail, first conceived in

“We have people calling us all the time,

1994, is the primary project of the Palmetto

from all over the country, wanting to plan

Conservation Foundation. This federally-

trips,” Britt said.

designated Millennium Legacy Trail is one

these resources increases. Once it’s lost, it’s lost forever.” Spartanburg City Councilwoman Cate

Her group puts out a guidebook for places

Ryba has been very involved with the

of only 16 cross-state trails in the country. It

to eat and bed and breakfast spots in the

Palmetto Trail through her work at the Mary

currently is about two-thirds complete with

Lowcountry, and Britt said she would like to

Black Foundation, which provided funding

more than 300 miles open to the public,

put out similar guidebooks for other areas of

for a portion called the Hub City Connector.

according to Palmetto Conservation Execu-

the state.

The Connector is a 12-mile pathway of

tive Director Natalie Britt. Twenty-two cities

The trail runs through the Town of

and towns in 13 counties lie along the trail.

Landrum, which has a population of about

through downtown Spartanburg. It includes

The trail is being built as a series of

2,500 people, in Spartanburg County. This

several sections such as the Mary Black Rail

passages, each of which is accessible for

passage of the trail extends from the forest to

Trail, a two-mile rail conversion through

single- or multi-day trips. It features secluded

the city streets of downtown Landrum.

downtown; the path through Liberty

mountaintop and forest paths, as well as urban bikeways, greenways and rail-to-trail

“We do see tourism because people use the trail,” said Landrum City Administrator

A publication for the Municipal Association of South Carolina

greenways, bicycle lanes and sidewalks

Garden, which connects Wofford College with the Heart Center at Spartanburg

www.citiesmeanbusiness.org | Cities Mean Business 9

Feature Story

the Palmetto

Above, Spartanburg’s Croft Passage, open for hiking, biking and equestrian use, runs through the S.C. School for the Deaf and Blind. (Photo courtesy of Palmetto Conservation League) At left, Boy Scouts hike the Fort Jackson Passage near Columbia. (Photo/Matthew Forster)

Regional Healthcare System; and a section

seeking quality bikes coming from as far

highlight that unique landscape and distin-

near the S.C. School for the Deaf and Blind

away as Columbia, Greenville, and Asheville

guish this city as someplace new and excit-

that features Braille interpretive signs.

and Charlotte, N.C.

ing,” said Columbia Mayor Steve Benjamin.

The trail connects neighborhoods, Ryba

Turner has done his part to contribute to the

“My understanding is that, on a nice day,

said. Other recreation sites, such as a skate

growth of the trails and outdoor recreation in

the Riverfront Park section can see upwards

park and a new $10 million YMCA (which is

Spartanburg. After he was awarded a $25,000

of 400 to 500 visitors an hour,” Benjamin

scheduled to open in March), are growing up

grant from the Mary Black Foundation, he gave

added. “That kind of recreational draw not

around it. Restaurants have advertised with

half the money to an outdoor leadership school

only brings shoppers into Columbia, but also

signs on the trail. And businesses, including a to provide bikes and a transport trailer to help

helps us convince new industries that this is a

bike shop and bike-share rental stations, have

expose kids to biking. He gave the other half

community they should invest in.”

located along the trail, she said.

to the City of Spartanburg to build more trails

Eric Turner moved his business, Bike Worx, to its current location along the trail in 2009. The site is central to town, and offers

As the trail continues to grow, other lead-

in Duncan Park and expand opportunities for

ers in small towns say they would like to see

people to ride bikes.

it extend to them, citing the positive

The Capital City Passage of the Palmetto

economic benefits.

the unique opportunity for customers to take

Trail is 7.5 miles of hiking and biking trails

a bike for a test drive right out the back door

that run through the City of Columbia. This

Upstate. Mayor Elaine Harris said town

and onto a real trail.

urban section of the trail takes users from

leaders have discussed how the trail’s intent is

Fort Jackson, past the University of South

a natural fit with their mission to draw

can sometimes influence people on

Carolina and the State House, to the Broad

economic development through tourism.

bicycling,” Turner said. “Usually people take

River. Shopping, restaurants and several

“That first test drive outside of the store

Pacolet is a town of about 2,200 in the

“One of our major focuses in Pacolet is

a test drive in a parking lot, and they’re dodg- tourist stops are along the way.

to celebrate our natural resources and our

ing cars. It’s nice for us having the rail trail. It

heritage,” Harris said. “The trail would help

makes a positive impact.”

“The three beautiful rivers running through the heart of Columbia give our city

us as we promote our community. The tour-

an environment that is characteristically

ism would bring economic development. We

back, which means an economic boost for

urban and natural at the same time. The

feel like it would be a great asset to have the

the community. Turner said he has people

Palmetto Trail is another way for us to

Palmetto Trail.”

That impact has kept customers coming

10 Cities Mean Business | www.citiesmeanbusiness.org

•

A publication for the Municipal Association of South Carolina

Feature Story

N UPSTATE

approx. completed

102

MILES

MIDLANDS

approx. completed

MILES

LOWCOUNTRY approx. completed

162

THE PALMETTO

MILES

TRAIL Approx 304 miles developed

developed undeveloped

Map Illustration/Jean Piot

Palmetto Trail by County and Municipality The following cities and counties have some part of the Palmetto Trail running through them. Charleston County • Awendaw Berkeley County • Bonneau • Moncks Corner • St. Stephen

Orangeburg County • Santee • Eutawville • Vance Clarendon County Sumter County • Sumter • Pinewood • Wedgefield Richland County • Columbia

A publication for the Municipal Association of South Carolina

Fairfield County Newberry County • Prosperity • Newberry • Peak • Whitmire • Pomaria Laurens County • Clinton Union County

Spartanburg County • Campobello • Landrum • Spartanburg • Inman Greenville County Pickens County Oconee County • Walhalla

www.citiesmeanbusiness.org | Cities Mean Business 11

US Cycling Pro Championship Road Race peloton in downtown Greenville. (Photo/Casey Gibson)

By Amy Murray

When RBC and Boeing signed on as sponsors of the Heritage tournament last June, they ensured the continuation of what is arguably South Carolinaâ&#x20AC;&#x2122;s most prominent and tradition-laden sports tourism event.Â

12 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

When people think about the intersection of sports and tourism, golf may be the first thing to come to mind for many South Carolinians -- from high-profile events such as the PGA Championships, coming to Kiawah Island in 2012, to the thousands of amateur golfers who descend on the state’s 360 championship-caliber courses each year. But South Carolina’s sports tourism industry is more diverse than many people realize, and several cities and towns around the state have established their own strengths within the sector.

Building from the ground up Many in the state consider Rock Hill a pioneer in sports tourism. Cherry Park hosts state, regional, and national tournaments year-round. The complex is part of an extensive network of sports facilities that have brought nearly 475,000 visitors to Rock Hill during the past six years and had a $59 million direct economic impact on the city. “These sports tourism facilities . . . act as an important economic development tool to grow our city,” says Ed Thompson, director of Rock Hill Parks, Recreation and Tourism.

Above: Cherry Park hosts state, national and regional tournaments year-round. Right: Manchester Meadows is the location for a college tournament. (Photos/City of Rock Hill)

Thompson says that all kinds of hospitality and retail businesses, from hotels, restaurants and gas stations to department

challenging. “To have a national champion-

that it could help put Greenville on the map

stores, pharmacies and laundromats, get a

ship, they want it to be the survival of the

in the cycling world.”

boost from the tournaments.

fittest. They want the best to come to the top,

“Some new businesses, such as Dick’s Sporting Goods, have established themselves near [our] sports facilities,” Thompson says. Greenville was able to capitalize on its

While no official economic impact study

so having the Paris Mountain course as our

has been done on any of Greenville’s cycling

course allows that.”

activities, Prosser says that anecdotally, “we

Prosser says winning the prestigious event

know we put a lot of heads in beds” once all

was just another step in a journey Greenville

the cyclists, event volunteers and out-of-town

natural terrain, rather than a constructed

started in the 1990s, when city leaders

fans are considered. “We hear it from the

facility, when it was awarded the USA

decided to play to their sporting strengths

hotels,” Prosser says.

Cycling Professional Championships in 2006,

and make Greenville a hub for cycling.

ending a 21-year run for Philadelphia, which had hosted the event since its inception.

“We started with a vision, and every year

She says that the economy is also stimulated by the excitement that the champion-

we worked to do a little bit more,” Prosser

ships generate throughout the city. “The

says. “Our parks and recreation department

month after USA cycling, the bike shops,

says Angie Prosser, director of public infor-

got involved with the [local cyclists and]

we’ve heard that their sales increase. That’s

mation and events for the City of Greenville.

started sponsoring small amateur races, then

the true reason that Greenville is interested

She notes that both the time trial and the

some of them became larger, then we got

in this [event]. Not just one weekend and

road race routes for the event are technically

involved with the Tour DuPont, and we saw

the ‘heads in beds,’ but it’s the spin for

“[The event organizers] love the course,”

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 13

Greenville as a community—being a

has been involved with Greenville cycling

cycling community,” says Prosser. “The

events for years.

number of bike shops has increased

Finding your niche

in Greenville.”

Thompson and Prosser have advice for

“When you see a pack of professional riders flying by on Paris Mountain, people

other communities that are considering

get excited, and they say, ‘You know what?

adding a sports-related component to their

I’m going to go buy a bike.’ Not necessarily to

tourism or economic development efforts. Thompson brings it back to building

race, but it just spurs it on,” Prosser says.

strong relationships and trying to gain broad

Keys to victory

community support. “Support from city

Even with Rock Hill’s top-tier facilities,

council and citizens, with input [from] a

“it’s a very competitive process” to attract

parks, recreation and tourism commission, is

events, says Thompson. “Rock Hill must

invaluable.” Also: “Be conservative with eco-

compete against other cities from across

nomic impact projections.”

the country.”

Says Prosser, “I think that every town

The city obviously knows what it takes to

owes it to themselves to figure out what they

win. Rock Hill was awarded the 2012

can do well, and stick with it. And not try to

national championships for U.S. Youth

duplicate what someone else is doing well.”

Soccer, which will be held at Manchester

“Rock Hill built Cherry Park, and they

Meadows Soccer Complex.

were probably the best in the state as far as

Incidentally, Greenville will host U.S.

pushing sports tourism,” Prosser says. “Then

Youth Soccer’s Region III finals, the first time a state has hosted the championship as well as a regional tournament. Thompson says that attracting events

everybody tried to duplicate what Rock Hill New sponsors have secured the future for the Heritage Golf Tournament on Hilton Head Island. Golf boosts S.C. tourism, but is by no means the only sport to do so.

involves “attending various conferences and

was doing.” Instead Prosser emphasizes, it’s really about working with what you have. “[We thought,] we don’t have a beach, we don’t

conventions, building relationships with

Prosser of Greenville also cites partner-

really have a mountain, what do we have? We

event holders, nurturing those relation-

ships as an essential ingredient for success in

have wonderful terrain for cycling,’” she says.

ships, and building regional partnerships,”

attracting events.

“We started looking at cycling events and

such as those Rock Hill’s Parks, Recreation

“If the cycling community, the city and

asking, ‘how can we promote this and make

and Tourism has established with the local

the county are not at the table, we would

sure that we always have a cycling event in

convention and visitors bureau, Chamber

not have US Pro,” says Prosser. “It absolutely

our calendar?’

of Commerce, YMCA, school district and

takes the [whole] community to support it,

Winthrop University.

[including] sponsors. If Greenville Hospital

there, and [towns] need to figure out what

“There are a lot of different sports out

System, Duke, GE and TD Bank didn’t step

they can do that is different from the next

however, that word of mouth is our best

up to the table, we wouldn’t have US Pro.

town over—not just to compete and do the

method for attracting tournaments.”

Without that corporate sponsorship and

same thing, but to find their own niche.”

Thompson continues: “We feel strongly,

He says that the experience participants and visitors have in Rock Hill should be top-

support, these events wouldn’t take place.” Keeping the championships year after

“I think I’m seeing that trend more now,” Prosser says, citing the fishing tournaments

notch from beginning to end, from the signs

year involves teamwork, as well. “Between

that have become established across the state

that direct visitors to the facilities, to keeping

the City of Greenville, Greenville County

as an example. “Now we’re really starting to

the parks meticulously clean throughout the

and Medalist Sports, we produce a wonderful

see those communities say, we can do this.”

event, to providing excellent customer ser-

event,” says Prosser. Medalist is a sports event

vice to all attendees.

management company based in Atlanta that

14 Cities Mean Business | www.citiesmeanbusiness.org

•

This article is reprinted with permission from the SCEDA Voice.

A publication for the Municipal Association of South Carolina

Hom etown

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w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

Westinghouse earns NRC approval for reactor design to be built in S.C.

Clearing a hurdle T

he Nuclear Regulatory Commission has unanimously approved the design of Westinghouse Electric Co.’s AP1000 reactor, the last hurdle South Carolina Electric & Gas Co. needed to clear in winning the panel’s approval to press ahead with expansion of the V.C. Summer Nuclear Station. Approval of SCE&G’s application to build the reactor units could come soon, since the NRC waived its customary 30-day waiting period and made the rule effective with publication in the Federal Register in December. SCE&G and its state-owned partner, Santee Cooper, are building two AP1000 1,100-megawatt units at the power station in Jenkinsville in Fairfield County. Investor-owned SCE&G is paying 55% of the estimated $9.8 billion price tag for the project. The Summer plant now has one reac-

tor unit, which went into operation in 1984, operated by SCE&G and Santee Cooper. “Receiving final approval of the AP1000 design reaffirms our selection of this technology, which has undergone rigorous reviews to demonstrate that its design meets all regulatory requirements,” said Kevin Marsh, chairman and CEO of SCANA, parent of SCE&G. Another energy provider, Southern Co., is seeking approval to build two AP1000 units at its Vogtle power plant along the Savannah River near Augusta, Ga. Westinghouse estimates 3,000 jobs will be created at each construction site, “positively impacting America’s manufacturing and construction industries with materials and labor expected to be provided from more than 20 states.”

Presently, about 1,000 employees are involved in preconstruction work at the Summer plant, located about 25 miles northwest of Columbia. Westinghouse first sought approval of the AP1000 design in 2002 and the NRC certified the design in January 2006. Since then, the AP1000 design has been modified to meet new and additional NRC requirements, including those that require it to withstand the impact of an aircraft crash on the shield building. The shield building is a steel-reinforced concrete structure approximately 3 feet thick that protects the steel containment vessel, which houses the reactor. Both the shield building and the containment vessel are part of the passive safety systems in the AP1000 design. This allows it to safely shut down with no, or minimal, operator action and no AC power.

An artist’s conception of the Westinghouse-designed AP1000 reactor, two of which are being built at SCE&G’s V.C. Summer station near Jenkinsville in Fairfield County. The design incorporates passive shutdown systems.

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

The design was recognized by the NRC as providing added capability that would allow the plant to survive a Fukushima-type event, Westinghouse said, referring to the March earthquake and tsunami that heavily damaged a commercial reactor unit in Japan. “The design provides enhanced safety margins through use of simplified, inherent, passive or other innovative safety and security functions, and also has been assessed to ensure it could withstand damage from an aircraft without significant release of radioactive materials,” said NRC Chairman Gregory B. Jaczko.

Next generation of plants

Certification of the reactor design sets the foundation for the next generation of nuclear power plants in the United States, officials said. The AP1000, which incorporates the use of modular construction, allows for the same design to be used at multiple sites. Presently, no two nuclear power plants in the United States have the same design, leading to higher construction and operating costs. “The road to receiving design certification has been long and sometimes arduous,” said Aris Candris, president and CEO of Pittsburgh-based Westinghouse Electric Co. “Now, our U.S. customers are one step closer to constructing AP1000 units and putting thousands to work to ultimately provide future generations with safe, clean and reliable electricity.” A design certification is valid for 15 years from the date of issuance and can be renewed for an additional 10 to 15 years.

Nuclear packs economic punch

The construction projects under way at the Summer facility and in Georgia are the tip of the iceberg when it comes to the impact of the nuclear industry in the region. The economic clout generated by the Carolinas’ nuclear power business produces more than $2.3 billion in annual wages, provides 37,000 jobs and pours $750 million into state and local government coffers each year. “Our nuclear cluster is both an important source of energy to residents and businesses, as well as a major player in Carolinas’ job and income creation,” said Clemson University’s Mark Henry, author of the study published by the S.C. Council on Competitiveness. The report, “The Economic Impact of the

This building now houses surplus weapons-grade nuclear materials at Savannah River Site.

Nuclear Cluster in the Carolinas,” showed that in the nuclear energy industry in North Carolina and South Carolina the benefits come from private sector firms and public sector participation. Four utilities — Duke Energy, Progress Energy, South Carolina Electric and Gas and Santee Cooper — own seven commercial reactor units in the Carolinas.

Nuclear supply chain

The facilities are supported by major firms in the nuclear supply chain, including: engineering and construction services such as AREVA NP, the Shaw Group, Fluor and URS; manufacturers GE Hitachi, Westinghouse and Siemens; an assortment of firms that make valves, motors, and pumps; maintenance companies; and service firms such as security companies and laboratories. In addition, major public-sector ventures in the Carolinas nuclear cluster are at the Savannah River and Barnwell sites. Both include private-sector participation. Barnwell hosts a low-level radioactive waste disposal site operated by Chem-Nuclear under a South Carolina state license. The U.S. Department of Energy’s Savannah River Site near Aiken is a major source of defense-related and commercial nuclear activities, including the processing of nuclear waste into fuel for commercial reactors. The site also houses the Savannah River National Laboratory. The three utilities in the region are planning to build as many as eight new nuclear reactors on existing and new sites. Just building a reactor unit generates an economic punch. For example, the projected

cost of the SCE&G and Santee Cooper project at Jenkinsville, scheduled to be completed in 2019, is $9.8 billion, and much of that trickles down into the regional supply chain. According to the Nuclear Energy Institute, a single new nuclear power plant requires approximately: • 400,000 cubic yards (305,840 cubic meters) of concrete — as much concrete as was used to build the Pentagon; • 66,000 tons of steel — the same amount used to build the Empire State Building; • 44 miles (71 km.) of piping; • 300 miles (483 km.) of electric wiring — enough to stretch from Boston to Philadelphia; and • 130,000 electrical components. Sourcing goods from small and local firms is an industry aim. At an annual energy CEO panel in Charlotte, N.C., last April, one multinational nuclear executive cited a goal to source 90% domestically for its U.S. projects, with small firms playing a key role. Another benefit of nuclear power is the fact that the jobs can’t be exported. According to the Clemson study, a plurality of employees earn between $75,001 and $100,000. Second in frequency is between $100,001 and $150,000 per year. Nuclear power also offers a stable, affordable and reliable energy source to industry. Nuclear is the low-cost producer of base-load electricity, with production costs declining more than 30% in 10 years, averaging 2.0 cents per kilowatt-hour (includes costs of operations and maintenance, nuclear fuel and paying for the management of used fuel). Less than 30% of nuclear production costs are fuel, compared to 80%-90% for fossil-fired generation. SC

BIZ

w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

r G inf Sou th

By Sally Huguley

lue nce

rol i

Photography by Leslie Burden

g n i w

ome would say that

na ’s f has ore $17 stry .4 b ind u illi on stry im pac t

you can’t see the economic

impact the forestry industry has on

the state for the trees.

Wallace Wood, the state’s tree farmer of the year, is one

who believes the industry doesn’t get noticed regardless of the more than 13 million acres of timberland in production and the billions of dollars the industry pumps into the economy. The reason: “It’s been around for a long time. Economic development has focused on other things,” he said.

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In Darlington fallen trees are sorted for various uses such as pulp, chip and saw, and sawtimber.

w w w . s c b i z m a g . c o m | S p r i n g 2 01 2

S.C. Forestry Industry

Tony Schipes, an operator at Collum’s Lumber Products in Allendale, oversees logs as they are de-barked and scanned. Computers scan each incoming log and map out the most efficient saw plan, customized to maximize wood recovery.

The industry affects all of the state’s 46 counties with an annual economic impact of $17.4 billion. About 90,600 South Carolinians work in forestry-based businesses, with an annual payroll of $4.1 billion, making it the state’s largest manufacturing industry. In addition to the wages paid to workers, there is impact in the profitable “stumpage” fees land owners receive for allowing their trees to be harvested, and in the timber products shipped throughout the world, said Wood, a retired Clemson University forestry agent. Cam Crawford, president of the S.C. Forestry Association, said he believes the industry’s influence is hidden because its numbers are divided between manufacturing and agriculture. Even then, timber is still the No. 1 agricultural crop, bringing in $679 million annually. “When you back out the numbers and look at them separately, you see the economic impact of forestry,” Crawford said. The reach of the forestry business is set to grow. State Forester Gene Kodama said the forestry community has a plan to increase the number of forest-related jobs by 12,000 and 30

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the overall monetary effect to $20 billion by 2015 – just three years from now. This initiative includes not only rising domestic demand, but also the prospect of growing exports of wood products from South Carolina. With the capacity of the Panama Canal doubling by 2014, Kodama said the state’s wood products business must be ready. “This will shorten the route to Asia,” the chief forester said. “The demand is going to be there. We’ll have the mechanism to get there. We need to be prepared to take advantage of this.”

Daily Whitten, advanced machinery operator, works at Canfor Southern Pine’s Darlington lumber mill.

economic growth that manufacturing plants receive. Kodama agrees. “The impact of the forestry industry is not well known. Timber farmers are working out in the fields, so you don’t see them,” he said. According to Kodama, there are 350,000 private tree farms throughout the state, with 200,000 farms of fewer than 10 acres. The beauty of the industry is that while it continues to export more tree-related products globally, the jobs never leave South Carolina, Kodama said. There is no outsourcing of jobs in forestry. Not only that, it’s an industry with little A quietly productive business waste. When a tree is cut, every Traditionally, tree farmers are “hardworkpart of it is used to make proding and humble people,” ucts ranging from paper and said Crawford, t of the c a p im packaging to sawdust for fuel. of the S.C. For“The t o n is y r A wide range of items – even estry Association. indust forestry food products and makeup – “They’re not out . Timber n w o n k use some forest-related matethere tooting their well g in k r o rial, Crawford said. own horns or beatare w farmers “It’s not your granddading their chests.” ou lds, so y e fi e h t dy’s sawmill anymore,” he Maybe for these out in .” m e h said. Technology helps the reasons, they don’t t don’t see state’s seven mills get the get the credit for dama Gene Ko rester State Fo

NATURE’S TREASURE CHEST More than 5,000 wood and paper products make our lives better each day. Chances are you ate some wood today, wore it, and brushed your teeth with it. Wood is the best resource available, and here are some reasons why:

Renewable

Energy Efficient

Recyclable

Environmentally Friendly

Unlike aluminum, steel, concrete, or plastic, wood is a renewable natural resource. As long as we take care of our forest land, we will never run out of wood.

Wood can be re-used, recovered, and recycled. There are limits to the number of times a product can be recycled, but we are learning more all the time about how to extend the life of wood fiber.

Biodegradable

Wood is an “all natural” product which can be safely disposed of once it has outlived its usefulness. Wood can be readily returned to the natural cycle of decay and decomposition.

It takes less energy to manufacture, and less energy to use wood than products made from steel, aluminum, concrete, or plastic.

Manufacturing processes for wood products release fewer toxins into the air, water, and soil than manufacturing processes for any alternative resources we have available.

Versatile

Trees may be used as solid wood, fibers, chemicals, and lignin. Each of those products is used in the manufacture of thousands of items we use every day.

Using every part of the tree Bark is used as fuel in mills and is also a

source of chemicals, resins, waxes, vitamins, plywood adhesives, plastic fillers, lacquers and mulch.

Wood flour and resins using cellulose filler are principle components of dinnerware, electrical receptacles and parts, toys, handles for cooking utensils and camera cases. Ethyl cellulose is used in making tool

handles, photographic film, and football helmets. Acetate filament yarns make textile products such as clothing, drapes, and rugs.

Torula yeast is a high protein product

made from wood sugars as a byproduct of the pulping process in papermaking. Type S Torula is used in baby food and cereals. Type F Torula is used in feed supplements for cattle, fish and chickens.

Some products that come from trees: cork, shoe

polish, cosmetics, grouting, stain remover, cologne, solvents, baby food, imitation bacon, cereals, explosives, vegetarian foods.

Turpentine and tall oil are resinous

materials that are also reclaimed from the paper pulping process. They are important ingredients in paint, varnish, adhesives, soaps and polishes. Synthesized essential oils are used in gum, toothpaste, detergents and shampoos. Infographic/Jean Piot Source: South Carolina Forestry Association

Forestry

by the numbers Jobs

Forestry-based businesses provide 90,600 jobs in South Carolina with an annual payroll of $4.1 billion. Woodrelated jobs pay 35 percent higher than the state’s average wage. (Source: S.C. Forestry Commission)

Exports

$1.1 billion in forest products are exported to Canada, Japan, China, Taiwan, Australia and other places. In 2010, one-third of the port of Charleston’s cargo volume came from wood products. Since 2001, South Carolina’s forestry-related exports have doubled.

Ownership

Almost 90% of South Carolina’s forests are privately owned. Of these, 64% are family-owned.

Top 3 counties IN DELIVERED TIMBER VALUE $44.6M

$33.2M

$29.0M

Stacks of lumber outside the drying kiln at Simpson Lumber Co., Georgetown. Sawmills such as this one use their own scrap chips to heat their driers, reducing the amount of waste.

most from timber production to meet market demands; computers can even calculate how to cut a straight board from a crooked tree. While some complain the U.S. market is flooded with goods from Asia, the reverse is true for forest products, said Keith Harris, vice president of marketing for Cox Industries in Orangeburg. Cox Industries, which produces pressuretreated wood, has seen a rise in demand for its products overseas, mainly due to the growth of the middle class in countries such as China. The need for treated wood piling and telephone poles has increased in Asia. In order to supply electricity for growing cities, the Chinese are buying treated wood poles, which last 75 years, to construct power grids. As it takes 25 to 30 years to grow a tree large enough to produce poles, two forests can be grown during the lifespan of the pole, Harris said. This regeneration emphasizes the environmentally friendly nature of forestry. Harris laughed as he remembered walking through a trade show and seeing a tall steel tree with a banner reading, “Steel is green.” There was no such banner needed for the forestry display.

Enhancing the environment

Colleton

Fairfield

Georgetown

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The forest product business naturally has the dual purpose of economic development and environmental enhancement, said Patricia Layton, director of the School of Agriculture, Forestry and Environmental Sciences at Clemson University.

“It’s an important industry because it adds to the quality of life and the public good,” Layton said. Forests contribute to clean air and water, prevent soil erosion, protect habitat and endangered species, and provide recreational land for hunters, she noted. Wood also is biodegradable, reusable and recyclable. Forestry is not just a rural enterprise -there is urban arbor culture, too. “What does a city do when it wants to beautify an urban setting? It plants a few trees,” Layton said, adding that trees are used in streetscaping and landscape architecture. Urban forestry also includes clearing rights of way and tree trimming for power lines – jobs requiring skill to be done right. Consumers often overlook the importance of trees. “Nobody pulls down toilet paper from the grocery shelf and thinks ‘Weyerhauser Mill in Bennettsville’,” Layton said, and foresters are even further down the consumer chain. There are times when tree cutting has “made foresters the bad guys,” particularly when land is clear cut for development. However, the ethics of forestry requires a balance between what is good for the environment and the economy, the Clemson professor said. An imbalance occurred early in the 20th century when forests were cut for agriculture and other needs, Layton said. The result was significant soil erosion, only corrected during the administrations of Presidents Theodore and Franklin D. Roosevelt with programs that

S.C. Forestry Industry

Trent Moore, procurement manager, Simpson Lumber Co. in Georgetown, discusses how the tightness of the wood grain is affected by an accelerated growth cycle. The faster a tree grows, the wider apart the rings are spaced.

planted millions of trees. The impact of forests on clean air and the reduction of greenhouse gases cannot be overstated. According to the Southern Pine Council, just one pound of wood grown by a forest removes 1.5 pounds of carbon dioxide from the air, replacing it with a pound of oxygen. So much oxygen is produced by the state’s forests, there is a growing trend to sell oxygen credits to industries that emit a lot of carbon dioxide, said retired Clemson forestry agent Wood. “Industries exceeding carbon dioxide limits can pay and buy oxygen credits from foresters. It’s a new and emerging market.”

Johney L. Haralson, landowner and tree farmer, is past chairman of the S.C. Forestry Association, is a certified prescribed fire manager, and a State Farm agent of 36 years. He has been growing trees since 1988 and has been involved with the Conservation Reserve Program for 20 years. He owns four tracts of land near Denmark, totaling approximately 600 acres, some of which is for commercial use and some preserved for game hunting and wildlife habitats. Bottom left: Year-old loblolly pines grow in Georgetown. Bottom right: Loblolly pinecone

Reluctance to plant means the state’s for“seriously behind” in what needs to be planted and growing now to meet market demands in ests are out of balance regarding the age and size of the trees, he said. This needs to be corthe future. rected so that as the recession subsides, forestLupold said data suggest tree planting in A time to plant ers will be ready to provide the type of timber the state is no better today than it was in 1954, While forests are prolific across the state, needed to fulfill market demand. tree farmers must project market demand for and there is a 30-year recovery gap. To deal with this need, the state Forestry The recession has made some tree farmers their harvests several decades out. Unlike single season agriculture crops, trees take time to cautious in their planting, particularly since Commission is pushing what it calls the 20/15 mature – a cycle that can last 15, 30 or 100 the business took a huge hit from the housing Initiative, funded by a grant from the U.S. years. Different sizes of trees are used for dif- market collapse. Residential construction or Forest Service. The purpose of the project is remodeling requires many to position forestry so that as the economy ferent products. wood products such as recovers, tree farmers will be ready to meet This is why Max Lu“It’s an impo rtant framing, plywood, floor- rising demand using the best data to project pold, a forestry consultant industry bec ing, roofing and cabinetry. present and future forest resources from Camden, is urging ause it This is the plan mentioned earlier, which But these economic dips the state’s tree farmers to adds to the q uality “come in waves,” Lupold aims to add 12,000 forest-related jobs in take a proactive stance on of life and th said, pointing to the 2001 South Carolina and expand the overall ecothe planting and growe public recession in the paper in- nomic impact from $17.4 billion to $20 biling of trees. He said data good” lion by 2015. dustry. show South Carolina is Patricia Layt on Clemson Un w w w . s c b i z m a g . c o m | S p r i n g 2 01 2 3 3 iversity SC

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Restoring the king of pines

By James T. Hammond, Staff Writer

ark Paden is planting trees that his grandchildren may one day harvest. The longleaf pine once covered 90 million acres from Virginia to Texas. Giants 400 to 500 years old soared against the Carolina skies and provided much of the treasure in natural resources that Europeans found here when they first pushed inland from their Charleston settlement. Today, longleaf pine stands are reduced to less than 2% of their original range. They were pushed aside in favor of loblolly and slash pines, which produce inferior timber but grow much faster. Paden, 68, owns 3,225 acres of timber land in Hampton and Jasper counties. Most if it is planted in the loblolly pines that now blanket much of the south. But in the last decade, he has joined an effort by government and private landowners to restore some of the longleaf stands that disappeared more than a century ago. Paden’s holdings far exceed the typical forest holdings in the private sector. According

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Mark Paden prepares to plant longleaf pine seedlings on his Hampton County tree farm. (Photos/James T. Hammond)

to the South Carolina Forestry Commission, the average family-owned forest is 66 acres and 74% of those owners live on the land. The Forestry Commission says 88% of South Carolina’s forests are privately owned, and 64% of private forests are family-owned. Paden’s holdings include trees ranging in

age from newly planted to about 40 years old. He staggers planting to ensure he’ll always have some mature trees to harvest to provide the cash flow necessary to maintain his timber business. But his longleaf stands range only from newly planted to about 8 years old. This year, he planted about 100 acres in longleaf seedlings, raising his holdings of that species to about 230 acres. Paden believes this king of pines is a solid investment, but he cautions that it is not a venture for anyone after the fast buck. He’ll pass his timber company on to his sons, and it may be only their children who reap the benefits from harvesting the longleaf pines. Asked why he invests in something from which he’ll not reap any financial reward, he says, “I like the way they look.” Pausing a moment, he added, “It’s the way it’s supposed to be.” Restoring the natural habitat of the region is important to Paden, a retired banker who says he has always had a strong tie with the land. “If I’d known in college that I’d end up growing trees, I might have studied forestry,” he said. “But if I hadn’t been a banker, I would

S.C. Forestry Industry

not have had the money to buy enough land to make the business successful.” Paden was born in Missouri and grew up in Tennessee. He earned a graduate degree from the Thunderbird School of Global Management in Glendale, Ariz., spoke Spanish and Portuguese, and began a career that took him to Germany, Brazil and other Latin American nations. But when he wasn’t traveling overseas, Paden would get in his car at his base in Charlotte and drive to his first timber land near Varnville. In 1972, he bought his first tract of 282 acres. “All my income went to pay for it,” he said. When he retired from banking in 1996, he was senior vice president of the international division at NationsBank, today known as Bank of America. And he had about 1,800 acres of timber land that was free of debt. He wanted to run the timber land as a business “rather than as a hobby or a hunting tract,” Paden said. It’s a long-range business with periods of big expenses that will require decades to recoup. Taxes, insurance and reinvestment create tens of thousands of dollars in expenses every year. The business also has perverse waves of slack and peak demand. Paden talks about the “wall of wood” that economists are predicting will come on the market at a time when demand in the housing market in particular has crashed. The current glut of supply was created, he said, by massive replanting after Hurricane Hugo in 1989, as well as other government incentives to landowners to plant trees.

To protect trees from fire, Mark Paden regularly plows fire lanes through his stands of pines, allowing access and adding open space that would block the spread of flames.

The perverse impact, which will ripple long into the future, is that landowners today are not planting because of the slack demand. Those trees not planted today will impact supply 20 to 40 years into the future. Becoming a tree grower requires a really long view of one’s life and its priorities, Paden said. “It takes a long time,” he said. “You have

to start pretty young. It takes a long time to amass enough land to make the business worthwhile.” The marriage of banking and tree farming may seem unusual to some, but for Paden it has a certain logic. “I saw myself as a tree farmer who had to work in a bank to be able to buy the land,” he said. SC

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S.C. Delivers

Ports, Logistics & Distribution in s.c.

Chamber president urges S.C. leaders to support port By Chuck Crumbo, Staff Writer

ne of the state’s most influential business leaders thinks political squabbling over DHEC’s permitting Georgia to dredge the Savannah River could divert the Legislature’s focus on improving the Port of Charleston. “What we really need to be focused on is spending money on infrastructure, widening the lifeblood of business in South Carolina which is I-26,” said Otis Rawl, president of the S.C. Chamber of Commerce. “We’re already behind the eight ball to get infrastructure improvements in this state and the reluctance to put money into infrastructure is going to be the downfall of the Charleston port and the South Carolina community,” Rawl said. Rawl worried that state leaders will be preoccupied by the state Department of Health and Environmental Control’s decision to issue a dredging permit that will allow the deepening of the harbor at the Port of Savannah, a competitor to the Charleston port. The decision has been criticized by both Democratic and Republican members of the General Assembly. “We’re going to spend the whole year now talking about this issue of Jasper-Savannah,” Rawl said. “What we really need to be focused on is spending money on infrastructure.” The Port of Charleston, Rawl

“We need to figure out how we’re going to make Charleston successful. If we do it right, it doesn’t matter what Savannah does. We’re going to win the battle Otis Rawl

president, S.C. Chamber of Commerce

(Photo/Leslie Halpern)

noted, is the key driving force of the state’s economy. “We need to figure out how we’re going to make Charleston successful. If we do it right, it doesn’t matter what Savannah does. We’re going to win the battle,” he said. “I’m hopeful that this administration, as they talk about economic development, will see fit to support the biggest driver of economic development we have in this state and that’s our port.” The ports are in a race to deepen their harbors to accommodate

A p u b l i c at i o n o f s c b i z n e w s

larger post-Panamax ships that are set to be the norm for the future, following completion of the Panama Canal expansion in 2014. Those ships require a harbor that is 50 feet deep. Charleston has the deepest harbor in the region at 45 feet but can only accommodate the larger ships during high tides. Harbor deepening would allow 24-hour access to the port. The Port of Charleston received funding for the initial study phase, but there’s concern

that federal money to help pay for the $350 million project won’t be around after Congress implements another round of deep cuts in the next budget cycle. Rawl suggested that the state proceed alone on the project instead of waiting on the federal government. “We need to think about being prepared to dredge our port, for us to be able to do it ourselves, for us investing in our infrastructure to make us sucSee PORT, Page 40

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Briefs

BMW No. 1 luxury car in U.S.; S.C. plant to produce X4 model

MW, which has a production facility in Spartanburg County, overtook Lexus and Mercedes-Benz to become the top-selling luxuryvehicle brand in the United States for 2011. Toyota Motor Corp.’s Lexus had topped the list of luxury-vehicle sellers for 11 years but its production suffered following the March earthquake and tsunami in Japan, leaving Mercedes and BMW to battle it out for top luxury brand in the U.S., based on sales. BMW reported total 2011 U.S. sales of 247,907, up 12.6% from 2010. That was 2,676 vehicles more than Mercedes. To meet growing demand, BMW boosted production at its Spartanburg plant more than 80% this year and sales of the X3, X5 and X6 models built there have been strong, up 54.9% for the

BMW’s Spartanburg facility produced 121,561 units on the X3 line in 2011. (Photo/BMW Manufacting Corp.)

year. The South Carolina facility, which employs more than 7,000, produced 276,075 units in 2011. That total includes 121,561 X3s, 110,605 X5s, and 43,899 X6s. Approximately 70% of the vehicles assembled at the S.C. plant

are exported. Looking ahead, BMW announced Jan. 12 that it plans to hire 300 people this year and up to 700 more by 2014 as it adds production of its X4 sports activity vehicle at the S.C. plant. The project represents a $900

million investment in the company’s 4-million-square-foot Spartanburg facility, said Frank-Peter Arndt, BMW Group board member responsible for production. BMW Manufacturing Co. President Josef Kerscher said the workforce, infrastructure and the Port of Charleston play a major role in the company’s continued expansion in the Upstate. BMW is the largest automotive exporter to the non-NAFTA countries. The X4 is expected to push production at the plant to around 350,000 annually. BMW has now produced 2 million vehicles in Spartanburg County since launching U.S. production in 1994. Since its opening, the plant has undergone four major expansions and produced six different BMW models and their variants: 318i, Z3, Z4, X5, X6 and X3.

SCDOT to develop plan to move freight to port

he state Department of Transportation is leading efforts to develop a 20year statewide multimodal plan to move freight from the Port of Charleston throughout South Carolina. The plan will prioritize future transportation infrastructure requirements, and serve as a tool to spur job creation, business expansion and education, officials said. The plan also will analyze infrastructure requirements as well as rail, freight, and transit components, said S.C. Transportation Secretary Robert St. Onge. “This plan will be developed in full consultation with our government partners, especially the Department of Commerce and the State Ports Authority,” as well as the private sector partners represented by the recently formed Transportation, Distribution and

38 | S.C. Delivers

Logistics Council, St. Onge said. “The feedback received from our partners, both public and private, will be essential in making this a functional and usable broad-based blueprint for the state’s collective transportation activities and future investments,” St. Onge said. More details about the plan will be offered at the TDL Summit in Columbia on March 13, he added. The council, launched by New Carolina – South Carolina’s Council on Competitiveness, joins leaders of the private and public sectors in an effort to boost the state’s economy, create jobs and attract investment in the transportation, distribution and logistics industry. Business leaders say development of the TDL industry is vital to the state economy. During the past year, South

Carolina has seen capital investment of more $194 million and more than 3,000 jobs created from distribution and logistics companies, said S.C. Commerce Secretary Bobby Hitt. “The goal is to make South Carolina more competitive and the TDL Council will only enhance our state’s ability to attract new firms and build our economy,” Hitt said. The council also helps industry stakeholders align their goals and work together to accomplish them, said Jim Newsome, president and CEO of the S.C. Ports Authority. “The TDL Council looks to network transportation, distribution and logistics leaders from across the state, which will ultimately help our ports and the state’s economy flourish,” Newsome said. The governing board of the

council consists of no more than 30 seats, with one seat reserved for each of the public partners— SCDOT, SCDOC and the SCPA. To ensure the entire state is represented, seats have been established to ensure geographic and industry diversity. Additional industry stakeholders are invited to participate via an associate member level. Council members include, Alliance Consulting Engineers, ATS Logistics, Columbia Metropolitan Airport, CSX, Duke Energy South Carolina, Greenville-Spartanburg Airport, Johnson Development Associates, MeadWestvaco Corporation, Myrtle Beach Airport, Norfolk Southern Corporation, Nucor, Performance Team, QVC Florence, SC Power Team, Southeastern Freight Lines, Superior Transportation, Universal Trade Solutions and UTi.

PORT PORT, From Page 37

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cessful.” State Sen. Ronnie Cromer, RNewberry, agreed. “Otis is right,” Cromer said. “You can’t count on the federal government to do a lot for you. We probably need to be going ahead and getting the study done … and look where we can match funds from the federal government and get it dredged on our own.” Some of the $1 billion state budget surplus might be used to pay for the deepening project if the federal government doesn’t continue to back the effort, key leaders of the S.C. legislature said. “The Republican House caucus will be in favor of doing whatever we can to help the project, including using surplus money,” said Rep. Bruce Bannister, RGreenville, assistant majority leader. “To the extent that we can, we have to do whatever is necessary to dig the port,” he said.

“We probably need to be going ahead and getting the study done … and look where we can match funds from the federal government and get it dredged on our own” State Sen. Ronnie Cromer R-Newberry

The federal government has committed to pay for part of a feasibility study on deepening the harbor. About $4.2 million for the study by the Army Corps of Engineers was secured in the 2012 budget by Sen. Lindsey Graham, R-S.C. If South Carolina were to take on the entire cost of the port expansion, the state would also be committing itself to ongoing maintenance and other future costs. For this reason, port officials and other leaders have said it’s not feasible for the state to go it alone in deepening the port. Even if the

initial costs of studies and dredging work could be handled, the future costs would be significant and wouldn’t take into account the income generated by the port for the U.S. economy. House Minority leader Harry Ott, D-Calhoun, said he supported getting the studies done and backed the deepening project. But he also criticized Gov. Nikki Haley’s handling of the port issue. “What I’m waiting on quite frankly is some leadership in the governor’s office to make sure we want to do the Charleston harbor and not the Savannah harbor,” Ott said.

“Once we get some leadership from the governor’s office, I think Democrats and Republicans alike will get the shovels, if necessary, and we’ll go down there and start helping them,” Ott said, adding he’d support using some of the surplus for the port project. Senate Minority Leader John Land, D-Clarendon, said he backed the project and also thinks the state should do what it can to get “as much participation out of the federal government as we can.” But Land suggested that before tapping the budget surplus, the state consider using its bonding authority to cover its share of the costs. “That’s a capital project. Interest is very, very low at this point in time and the deepening of the harbor will last a long, long time,” Land said. “So, I’d do the same thing as you would do with your business capital project and amortize it out over a long period of time.”

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PORT

South Carolina strengthens ties with Hong Kong By Chuck Crumbo, Staff Writer

ong Kong may be 9,000 miles from South Carolina, but the economic ties between the two grow stronger every day. In just three years Hong Kong has zoomed to No. 18 from No. 29 on the list of top trade destinations of South Carolina products. South Carolina exports to Hong Kong and China between 2009 and 2010 more than doubled to $2.4 billion from $995 million. And then there’s the partnership between the University of South Carolina’s Darla Moore School of Business and the Chinese University of Hong Kong. The schools have launched a program focusing on international business and Chinese enterprises. “We are seeing more South Carolina students studying in

Hong Kong’s port is the destination for a growing proportion of goods exported from South Carolina. (Photo/File)

Hong Kong and vice versa,” said strates the growing ties between of the Midlands International Anita Chan, director of the Hong South Carolina and Hong Kong.” Trade Association, offered several Chan, who was in ColumKong Economic and Trade Office in New York. “And this demon- bia recently to talk to members See HONG KONG, Page 42 ➤

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PORT HONG KONG, From Page 41

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examples of why the Palmetto State should be doing even more business with Hong Kong, which became a special administrative region of China in 1997. At the top of her list was the fact that Hong Kong is regarded as the global business and financial center of the Asian Pacific region and the gateway to the world’s second-largest economy, producing a $1 trillion annual GDP. For those interested in selling consumer items, Chan said Hong Kong has no sales tax, no tariffs, and almost no government corruption. “There are no hidden costs” to doing business in Hong Kong, Chan said. Another reason to ship goods to Hong Kong, Chan said, is Chinese tourists. Some 22 million flocked to Hong Kong last year mostly to shop. The Chinese, she added, are fans of American-made products,

42 | S.C. Delivers

S.C. exports to Hong Kong and China $2.4B

$995M

2009

2010

perceiving them to be of high quality and good value. And, she added, the Chinese have cash to spend. Another plus to trading with Hong Kong is that about 50% of goods are re-exported to other countries in the region. Hong Kong is a key location for companies looking to do business in Asia, she added. The city of more than 7 million is within a five-hour flight of other major cit-

ies in the region. About 1,300 U.S. companies have offices in Hong Kong, she said. Such good fortune wasn’t in the picture when it was announced in 1995 that Great Britain was turning over its colony to China. Fortune magazine even published a story forecasting the region’s future demise with the headline “The Death of Hong Kong.” But China, which has a socialist form of government, has stayed true to its promise that Hong Kong “would continue to be run under a capitalist system with a great degree of autonomy,” Chan said. “We are one country and two systems.” China is unlikely to want to change things. It has emerged as the world’s second largest economy producing more than $1 trillion worth of goods and services, almost 10 times more than in 1995. China’s per capita income also has grown to $7,600 from $1,500.

Hong Kong, too, has grown. Its per capita GDP is $31,000 compared to $22,000 in 1995. Hong Kong has not gone into decline, Chan said. “We are very much alive and doing quite well.” Hong Kong has been a key destination for companies looking to do business in Asia, said Fred Monk, president of ECIFind New Markets. “It has been a focal point for Asia for a long, long time,” said Monk, who also serves as president of the trade association. “It is hub for Asia and gateway into China. It’s a place where people feel comfortable doing business. “I tell people if they’re looking at Asia, Hong Kong and Australia are the two places to start.” The reasons, Monk said, are that English is spoken in both countries and they abide by the rule of law with a legal system similar to that in the United States. “For someone doing international business and trade, it lowers the risk of doing business.”

•

Briefs

Speculative buildings help state lure economic development prospects By Chuck Crumbo, Staff Writer

hen GKN Aerospace announced plans to invest $38 million and create 278 jobs over the next six years, a new 150,000-square-foot facility was waiting. The speculative building and its accompanying 22-acre site near U.S. 301 and Interstate 26 had finally paid off for Miller Valentine Group, which developed and constructed the facility. It also confirmed an axiom about commercial and industrial real estate that guides Miller Valentine, which has offices in Columbia, Charleston, Cincinnati and Dayton, Ohio. â&#x20AC;&#x153;You try to put supply in the way of demand,â&#x20AC;? said Steve Koewler, president/partner of Miller Valentine. Thereâ&#x20AC;&#x2122;s no doubt Miller Val-

GKN Aerospace found this speculative building developed by Miller Valentine Group near Orangeburg fit its needs..

entineâ&#x20AC;&#x2122;s decision to construct a speculative building was crucial to landing one of the biggest economic development deals this year in South Carolina, said Gregg Robinson, executive director of the Orangeburg County Development Commission. â&#x20AC;&#x153;It was critical,â&#x20AC;? Robinson said. â&#x20AC;&#x153;Because we had that speculative building and because we

have that location adjacent to the interstate, and because of a number of other factors â&#x20AC;Ś we were able to keep the company focused on this location.â&#x20AC;? Mike McCann, GKN Aerospaceâ&#x20AC;&#x2122;s senior vice president for business development and strategy, said the size and layout of the building â&#x20AC;&#x153;fit very nicelyâ&#x20AC;? with the companyâ&#x20AC;&#x2122;s plans, which were an-

nounced in November. Having a building ready for a prospective company is an advantage in the recruiting business, said S.C. Commerce Secretary Bobby Hitt. GKN, for example, will be able to shave off four to six months that would have been needed to See SPEC BUILDING, Page 44

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S.C. Delivers | 43

Industrial building SPEC BUILDING, From Page 43

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launch operations because it has a ready-made building, Hitt said. And instead of sinking capital into construction and waiting for a building to be constructed, the company can get people on the payroll sooner, Hitt added. Location always is important when deciding where to construct a spec building, but timing can be just as crucial, Koewler said. Extensive planning and analysis goes into the decision to build. “A lot of it is objective, but there’s a big component of it that’s subjective and it comes in your ability to interpret the data,” Koewler said. The company looks at where there’s demand for industrial and distribution space, and what’s causing it, Koewler said. Then, it does a gap analysis of supply and demand. Some of the many ingredients Miller Valentine considers for constructing a spec building

44 | S.C. Delivers

“It’s always a timing thing and making sure you’re putting your building up at the right time.” Steve Koewler president/partner, Miller Valentine

include industry sector trends, growth in the region, proximity and quality of the transportation network, incentives offered by state and local governments, market vacancy, rent and project cost. Another factor is the local labor market, Koewler said. Companies need to be in places where the workforce has the necessary skills to do the work that’s needed. When it came to the building’s design, Miller Valentine decided to construct a building that’s flex-

ible enough to be used as either a manufacturing facility or distribution center. The structure in Orangeburg is a Class A industrial building that features 28-foot clear height and is expandable from 150,000 square feet to 300,000. The structure fit GKN’s needs to assemble fuselages for a new client, HondaJet, a light businessclass passenger plane that’s being built in Greensboro, N.C. The building’s layout “worked very nicely for our production flow,” McCann said. “We really do strive for very lean, single-piece flow in our production processes and this building did fit nicely into it.” Developing and constructing speculative buildings, though, requires patience and deep pockets. Koewler said the company’s business model factors in an absorption rate of two to three years. The Miller Valentine building in Orangeburg had been empty for

2½ years. “It’s always a timing thing and making sure you’re putting your building up at the right time,” he said. Presently, the state has about 400 empty buildings of various sizes suitable for manufacturing or distribution, he said, but only about 20 structures are speculative buildings. Most of the available speculative buildings range from 50,000 to 150,000 square feet although there’s a 400,000-square-foot structure on the market. Buildings less than 50,000 square feet make up 38% of the market while those ranging from 50,000 to 150,000 square feet comprise 26% of the market, Hitt said. “We need to set the table” to successfully recruit companies to South Carolina, Hitt said. “We need spec buildings. We need sites that are ready. We need all those things.”

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RAIL

S.C. site among first five picks for CSX Select program By Chuck Crumbo, Staff Writer

n industrial park in Florence County has been picked by CSX Corp. for a new program that provides customers a way to find certified, rail-ready properties through the rail companyâ&#x20AC;&#x2122;s website. White Hawk Commerce Park, located off East Old Marion Highway, is one of five sites certified for the CSX Select Sites program. CSX said 11 more sites are in the certification process. The â&#x20AC;&#x153;CSX Selectâ&#x20AC;? designation indicates â&#x20AC;&#x153;green lightâ&#x20AC;? properties along the companyâ&#x20AC;&#x2122;s network where â&#x20AC;&#x153;projects can move forward rapidly because all known risk factors have been identified and potential issues resolved,â&#x20AC;? the company said. â&#x20AC;&#x153;All of the data suggest manu-

White Hawk Commerce Park in Florence County is a 1,175-acre site with multimodal transportation links. (Photo/ White Hawk Commerce Park)

facturers prefer certainty in their selection of new plant locations,â&#x20AC;? said Clark Robertson, CSX assistant vice president for regional

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development. â&#x20AC;&#x153;We intend to assist for these new investments and communities across the network jobs.â&#x20AC;? to identify sites that can provide certainty and compete effectively See CSX, Page 46 â&#x17E;¤

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S.C. Delivers | 45

Rail CSX, From Page 45

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White Hawk is a 1,175-acre tract that features multimodal transportation links. It has mainline frontage, two sidetracks, and unit train capabilities, and access to the Port of Charleston. The site actually adjoins the CSX rail terminal in Florence. Also it’s about three miles from Interstate 95, around five miles from Interstate 20, and one-half mile from Florence Regional Airport. Southern Business & Development magazine considers White Hawk to be “the best automotive assembly site the South has to offer right now.” White Hawk is a McCallum Sweeney Consulting certified site, meaning that automakers can save 12 to 18 months in zoning and permitting time, Southern Business said. “This multimodal transportation megasite features an incredible supply of all utilities a major

46 | S.C. Delivers

CSX, which serves the White Hawk park, provides rail, intermodal and rail-to-truck transload services. (Photo/File)

manufacturing plant would ever need,” Southern Business said. “And the site is at the other end of the state, meaning no competition for labor but close enough to the huge supply chain that supports BMW in South Carolina and other automakers in the South.” To promote White Hawk and

other selected sites, CSX has a new web page with a GIS-enabled search feature that shows high-resolution views of topography, rail and road layouts. Properties in Kentucky, Illinois and Ohio also were selected for the program. Detailed profiles of CSX Select Site properties can be found there.

CSX provides rail, intermodal and rail-to-truck transload services. Its transportation network spans 21,000 miles, and serves 23 Eastern states and the District of Columbia. The network also connects more than 240 short line and regional railroads and more than 70 ocean, river and lake ports.

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

Sunset on the Greenway

The West Ashley Greenway is a 10.5-mile hiking and biking trail located in the West Ashley area of Charleston. (Photo/Ryan Wilcox)

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