2013 SC Biz 3

Fall 2013

Brewing industry S. C. beer makers help craft favorable laws Jaime Tenny and husband, David Merritt, co-owners of COAST Brewing in North Charleston.

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Economic Development in S.C. | Special Section: Cities Mean Business | S.C. Delivers

Table of

Contents COVER STORY: Brewing Industry 34

How a feisty group of entrepreneurs teamed up to help bring South Carolina into the craft beer scene

Left: Not even torrential rains could stop the crowd from attending COAST Brewing’s Annual Brewvival Festival.

Cover & Table of Contents photos: Chrys Rynearson

Feature: Economic development in S.C. 20

Rural S.C. towns aim to land ‘our Boeing’

28

Change from within

32

Infrastructure grants help lure companies to S.C.

Photo/Jeff Blake

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Departments

2

4 Bill Settlemyer’s Viewpoint

10 Spotlight: Florence County

5 Upfront

40 S.C. Delivers

8 Business Accelerator

48 1,000 words

Special section: Cities mean Business Cities plan for future by upgrading quality of life, attractions for young professionals

SCBIZ Magazine Editor - Licia Jackson ljackson@scbiznews.com Managing Editor - Andy Owens aowens@scbiznews.com

From the

Midlands Editor - James T. Hammond jhammond@scbiznews.com Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com Staff Writer - Chuck Crumbo ccrumbo@scbiznews.com Staff Writer - Bill Poovey bpoovey@scbiznews.com Staff Writer - Liz Segrist lsegrist@scbiznews.com Staff Writer - Matt Tomsic editorial@scbiznews.com Creative Director - Ryan Wilcox rwilcox@scbiznews.com Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com Graphic Designer - Jean Piot jpiot@scbiznews.com Graphic Designer - Andrew Sprague asprague@scbiznews.com Graphic Designer - Mallory Baxter mbaxter@scbiznews.com SCBIZ Account executives Director of Business Development - Mark Wright mwright@scbiznews.com Senior Account Executive - Sue Gordon sgordon@scbiznews.com Senior Account Executive - Robert Reilly rreilly@scbiznews.com Account Executive - Bennett Parks bparks@scbiznews.com Account Executive - Alan James ajames@scbiznews.com Account Executive - David Lorick dlorick@scbiznews.com Account Executive - Reneé Piontek rpiontek@scbiznews.com • 843.849.3105 Contributing Writers Timmons Pettigrew, Holly Fisher, Nike Kern Contributing Photographers Jeff Blake, Leslie Burden, Chrys Rynearson, Kevin Greene President and Group Publisher - Grady Johnson gjohnson@scbiznews.com Vice President of Sales - Steve Fields sfields@scbiznews.com

Dear Reader,

Editor

If there’s one thing I’ve learned in my years in this state, it’s this: South Carolina is full of surprises. We’re tapping into one of those surprises – well, not literally – in the fall issue of SCBIZ magazine with a story on our budding brewery business.

Welcome to the fall issue, by the way. While SCBIZ always digs into the economic landscape to look at what’s beneath the surface, this issue’s focus is on giving you an economic development update. And there is a lot to tell you.

In our biweekly newspapers – Charleston Regional Business Journal, Columbia Regional Business Report and GSA Business – with their accompanying email reports, we write a lot about economic development in South Carolina’s biggest cities. In this issue of SCBIZ, you’ll read about economic development in the smaller towns and rural areas. Some of these areas have unemployment rates as high as 15%. Landing a new company that will hire 200 workers can have as much impact for them as Boeing has had on Charleston. And the S.C. Department of Commerce is helping rural counties smooth the way for just that kind of development .

Combining the energies of 11 state agencies is the state’s Coordinating Council for Economic Development, which is run Licia Jackson

by Commerce. We report on what this council has been up to, Editor, including giving $47.8 million in grants last year to companies SCBIZ Magazine expected to create more than 10,000 jobs and invest more than $3.5 billion across our state.

And sometimes, a community takes its economic future into its own hands. Such is the case with the Sterling community in West Greenville, which has created a land trust to try to purchase the old Plush Mill and redevelop it to bring jobs back to the community. You’ll enjoy reading the residents’ fascinating story of what was and what can be.

The breweries story fits in with the economic development picture in this way: Changes in South Carolina’s laws that make it easier to operate are setting the stage for a booming craft beer scene. Money that had been left on the table by antiquated laws will be finding its way into cash registers, from Holy City to Thomas Creek.

A bonus within our magazine is Cities Mean Business, the award-winning publication of the Municipal Association of South Carolina. This issue looks at ways cities enhance the quality of life, attract young professionals, and explore the real meaning of community development.

Speaking of awards, we’d like to let you know that we’re an award-winning publication too! In our first year of competition in the S.C. Press Association’s associate/individual division, SCBIZ was chosen Best Magazine or Special Publication for 2012.

So, grab a cup of coffee – or maybe a beer – and sit back and enjoy this issue.

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3

Bill Settlemyer’s

Viewpoint Caution – rough roads ahead

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summer vacation in the mountains of North Carolina is a time honored tradition for many Charlestonians wishing to escape the Lowcountry’s heat and humidity. In July, my wife and I joined this annual pilgrimage. We got our mountain scenery and cooler weather, but we also got more than we bargained for – a stark lesson in the differences in how each state invests in its infrastructure.

Crossing the border north of Rock Hill and approaching Charlotte, we couldn’t help but notice that the highways were better, both in condition and appearance. Driving north of Charlotte, we took advantage of a clean, modern and beautifully landscaped rest area that gave a message to travelers that North Carolina takes pride in its highways and the image the state presents.

Even up in the mountains around Boone and Blowing Rock, I was surprised by the good condition of most roads in a region where snow and ice can wreak havoc on roads and require regular and costly maintenance.

Having become accustomed to North Carolina’s roads over a two-week period, we were shocked and embarrassed by the contrast as we crossed back into South Carolina. Aside from rough and broken pavement, we saw mile after mile of untended waist-high weeds lining the highways as well as grass and weeds growing through the concrete in bridges and other highway structures along the roads.

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It was the highway equivalent of driving from a neighborhood of well-tended lawns into one full of weeds and trash. You know what that does to property values, right?

Well, think about what it does to the image of our state.

The S.C. Chamber of Commerce has something to say about the issue of highway infrastructure on its web site: The last time the state increased its gas tax, to 16 cents per gallon, was in 1987, and the state relies almost solely on the gas tax for road funding. Highway funding accounts for only seven percent of the state budget today compared to 17 percent in 1970. According to the Tax Foundation, South Carolina has one of the lowest gas taxes in the country, ranked 47th out of the 50 states.

To borrow and modify a phrase from the history of historic preservation in Charleston, our state is “too poor to pave and too cheap to tax” to pay for better roads.

And while the S.C. Chamber may be more concerned about the contribution that good roads make to economic development and less about aesthetics, they and other organizations focused on economic growth also understand that image as well as functionality affect the attractiveness of our state as a place to locate and grow a business.

Unfortunately, this penny-pinching mindset affects other aspects of life in South Carolina, like education funding and other initiatives that promote economic opportunity

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for our citizens, businesses and communities.

The contrast between our state and North Carolina is not flattering, whether you’re talking about highway funding or other investments like those in education and services to the state’s citizens. Up to now, North Carolinians have always been able to say “Thank God for South Carolina” in the same way that we say “Thank God for Mississippi” in comparing the well-being of our residents to those elsewhere.

But there’s hope. North Carolina recently achieved conservative nirvana, with conservative Republican super majorities in the state legislature and a like-minded Republican in the governor’s office. They have been busy slashing public school funding and want to take an ax to the state’s current tax structure. It’s a stunning reversal of the state’s reputation as a progressive Southern state that has always managed to strike a balance among the views of the state’s conservative, moderate and liberal voters.

So don’t despair. If education funding is going south in the Tar Heel state, road funding can’t be far behind. With any luck, their highways will soon look just as threadbare and untended as ours.

Bill Settlemyer bsettlemyer@scbiznews.com

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UPFRONT

regional news | data

Hydrogen power back on front burner

H

ydrogen fuel research – an area where South Carolina is a leader — had become the unpopular kid with the Obama administration.

But fortunately, that has changed and the administration is now encouraging hydrogen power as part of the nation’s clean energy future, according to leaders in the field.

At the S.C. Clean Energy Summit in Columbia in July, the considerable efforts to make that change were recounted by state and national leaders. Energy Secretary Steven Chu had cut the federal funding for hydrogen fuel research in 2009. Hydrogen was not as promising as other energy alternatives, Chu said.

Now the administration is giving moderate support and Chu visited South Caro-

A BMW team member at the plant in Spartanburg drives a hydrogen fuel cell-powered material handling train.

(Photo/Provided)

lina to see the possibilities of hydrogen and fuel cells, said Morry Markowitz, president and executive director of the Fuel Cell & Hydrogen Energy Association.

South Carolina is a leader in demonstration projects. BMW uses forklifts and material handling trains powered by hydrogen fuel cells. The forklifts are more

efficient and take up less warehouse space, said Shannon Baxter-Clemmons, executive director of the S.C. Hydrogen and Fuel Cell Alliance.

It’s the start of a revolution in clean energy and the potential for uses for hydrogen are endless, according to BaxterClemmons.

FAST FACTS | Beer industry in the U.S. In 2012, South Carolina ranked 40th among craft breweries per capita with 16 breweries and brewpubs operating statewide or one brewery for every 289,085 people.

U.S. breweries operating as of June, 2013 1,165

Microbreweries

Brewpubs

97

24

31

Cover Story

Page 34 Infographic/Jean Piot Source: Brewers Association

Regional Craft Large Non-Craft Other Non-Craft Breweries Breweries Breweries

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1,221

5

Upfront

Duke Energy selects sites to prepare for industrial development

Downtown Marion, S.C. (Photo/Jeff Blake)

RURAL SOUTH CAROLINA By the numbers In 2012, the Department of Commerce recruited $784 million in capital investment and 3,850 jobs from 46 firms to rural areas of South Carolina or areas that are not part of a metropolitan statistical area 20 percent of South Carolina’s labor force lives in rural counties.

Since January 2011, South Carolina has recruited more than $1.28 billion in investment and more than 8,700 jobs have been created in rural counties.

South Carolina’s rural counties had unemployment rates well above the state’s rate of 8.1% in July, the most recent numbers available. Jobless rates of 15.2% (Marion County) and 14.5% (Allendale and Bamberg counties) were among the highest rates in the state.

For more about economic development in rural counties, see Page 20.

Source: S.C. Department of Commerce, S.C. Department of Employment and Workforce

RecyclonomicsSC Arrive at 75%

Goal for recycling municipal solid waste in South Carolina

2030 www.scbizmag.com

Year by which the goal should be reached

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20,000

Number of jobs created in reaching the goal Read more about the growing business of recycling in South Carolina in RecyclonomicsSC, coming in the winter issue of SCBIZ. Source: RecyclonomicsSC.com

Duke Energy has selected five sites in South Carolina – from Darlington County woodlands to Marlboro County farmland – to prepare for potential industrial development.

The utility hired Greenville-based McCallum Sweeney Consulting to conduct site studies for its 2013 Site Readiness Program. The findings will be presented to county officials.

Duke will collaborate with county leaders and local economic development professionals to develop a strategy for providing water, sewer, natural gas and electricity to the sites. Road improvements, easements and rights of way required for development will also be recommended, as well as steps to mitigate potential environmental impact.

After the sites’ readiness has been advanced, Duke Energy’s business development team will market them nationwide.

The properties selected are: CW Love Industrial Park 200 acres of former farmland in Marlboro County, southwest of McColl.

The Tech Foundation Park site 143 acres of woodlands in Darlington County, located in Palmetto near I-95 and U.S. 52.

The Jeff Price Industrial Site Located in Dillon County, 170 acres of undeveloped land between Dillon and Little Rock.

The McLendon Young site 215 acres of undeveloped land in Florence County. It is 10 miles south of Florence and fronts I-95 near the Honda plant.

The Howard B. Smith site Located in Marion County, a 250-acre property located north of Marion, near U.S. 501 and I-95.

NEW ECONOMIC DEVELOPMENT Here are announcements made in South Carolina since June 15, 2013.

Company

County

Investment

Jobs

Edgewater Automation

Spartanburg

$3 million

53

Monteferro USA

Orangeburg

$2.1 million

10

Tognum America

Aiken

$225 million

10

ZF Transmissions

Laurens

$175 million

450

Standard Textile

Union

$2.5 million

15

DLS Retreading

Lancaster

$2.5 million

53

BID Group

Dorchester

$3 million

40

Weber Automotive

Charleston

$51 million

84

Sportsman Boats

Dorchester

$2.35 million

50

Caliber Funding

Florence

N/A

100

Exel

York

$38 million

133

PTR Industries

Horry

$8 million

145

Beaufort

$13 million

307

Spartanburg

$400,000

32

Eco Dual Lindoerfer + Steiner GmbH

Source: S.C. Department of Commerce

Business accelerator

Business Accelerator

Charleston Digital Corridor – growing the knowledge-based economy

By Holly Fisher

After the Charleston Digital Corridor hosted the CODEshow technology conference in March, participants gathered at South End Brewery for the after-party.

The Flagship 2 provides offices for startup and growing companies in the Charleston Digital Corridor.

(Photos/Leslie Burden)

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ince 2001, the Charleston Digital Corridor with director Ernest Andrade at the helm has been working to nurture and promote Charleston’s knowledge-based economy. But it wasn’t until 2009, when the Digital Corridor opened the Flagship, that people really started to understand the vision and what the Digital Corridor could do for Charleston’s economy.

The Flagship – located in a former video rental space on East Bay Street – was designed to offer short-term office space to startups and emerging businesses working in the digital and tech industries. The oneand two-person offices are just right for an up-and-coming business. Demand for one of only 14 spaces in the Flagship was fast

and furious and two years later, the Digital Corridor opened Flagship2 – commonly referred to as FS2 – next door in a former TV station.

FS2 was for businesses that had graduated beyond the Flagship and needed more space. At 13,700 square feet, FS2 has 16 furnished offices that can accommodate three to 12 employees. The exposed ceilings and concrete floors continued the hip, tech vibe started in the original Flagship space.

The Flagship also houses the City of Charleston’s Business Development office, which includes the Charleston Digital Corridor, the CharlestonWORKS portal and the new CODEcamp independent learning platform.

In June 2013, the Digital Corridor an-

nounced plans for a 40,000-square-foot, three-story FS3 on Morrison Drive, not far from the existing Flagship facilities. Andrade intends to combine the tenancy of the other two Flagships with mature companies on the top two floors and startups on the first floor. FS3 is slated to open in summer 2015.

“In practice, we have seen this engagement leads to mutual benefit on both sides,” Andrade said. “There are people here with skill sets who can teach and impart knowledge.”

That concept of engaging the participating businesses and encouraging them to share resources, advice and ideas with one another is at the core of the Digital Corridor’s success.

“Why this works is the entire program is built around the needs of young startup companies,” Andrade said. “The rules are written for people who come in and can grow high-wage companies.”

The success of Charleston’s knowledgebased and tech economy is due in large part to Andrade’s efforts and the Digital Corridor. Since June 2009, Flagship residents

Facts

Flagship • • •

Opened June 2009 5,200 square feet 12 offices

Flagship2 (FS2) • • •

Opened June 2011 13,700 square feet 16 offices

Business Accelerator

and graduates have created about 285 jobs in Charleston infusing more than $15 million in payroll into the local community.

Charleston’s tech community – dubbed “Silicon Harbor” – boosts such tech startup success stories as PeopleMatter and Boomtown along with heavyweights Blackbaud, Benefitfocus and Google.

The Digital Corridor actively promotes their successes while using them as examples to companies just starting their tech journey. It goes back to developing this entrepreneurial community, which, as Andrade points out, is even more important than providing inexpensive office space.

“The community that has developed around the facilities is more important than the facilities themselves.”

It’s why he describes the Digital Corridor as really more of an accelerator than an incubator. “Entrepreneurs will succeed in spite of challenges,” Andrade said. “We have removed some of the impediments to accelerate their growth.”

Flagship3 (FS3) • •

Coming summer 2015 40,000 square feet

By the numbers 61 companies

have graduated from the Flagship and FS2.

23 companies are currently in residence.

$66 million in funding

from public/private sources raised by residents, both current and graduated, since January 2009

created in Charleston by Flagship residents and graduates since June 2009

$15 million in payroll

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285 jobs

in the local community from jobs created

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county spotlight

Florence

Johnson Controls’ new automotive battery recycling center added 250 jobs.

Florence County Global reach with a Southern touch

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lorence County is thriving as a commerce hub for the southeastern United States due to its strategic location and pro-business mindset. Located at the junction of I-95 and I-20, halfway between New York City and Miami, this dynamic county is being touted as one of America’s top areas for business relocation and expansion.

“More and more, companies are realizing the benefits to locating or expanding not only in South Carolina, but particularly in Florence County,” says Frank J. “Buddy” Brand, Florence County Economic Development Partnership chairman.

“Our strategic location, our ready workforce and training Special Advertising Section

Florence County demographics: Florence County population ..... 137,948 South Carolina population .... 4,723,723 Average growth.................. ......... 0.8% Labor force (civilian popu 16 years and older).............lation ........62.1% People Per Square Mile.. ..............171.1 Land Area in Square Miles ..... 799.96 2012 estimates provided by the U.S. Census Bureau (2013)

County Spotlight: FLORENCE

The Southeastern Institute of Manufacturing and Technology (SiMT) trains workers from all over the Southeast in engineering, CADCAM, rapid prototyping and 3D/virtual reality.

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programs, plus a well known pro-business climate make Florence an ideal location in addition to us being well suited for advanced industrial manufacturing, food processing, distribution and call centers.”

The Florence County Economic Development team provides an array of strategic quality services to new and expanding clients with the utmost in confidentiality.

Today the county is a major hub for both industry and infrastructure and a regional center for business, medicine, culture and finance. With some of the lowest property taxes in the state, a well-trained workforce and diversified economy, Florence County is moving all types of industries forward.

So far in 2013, Florence County has released seven new business announcements with more on the horizon. The county’s incentives for development include a number of statutory, discretionary and individualized programs such as multiyear exemptions for corporate, state and local sales taxes, job development and employee retraining credits, property and fees-in-lieu and other customized incentives. “Economic development in Florence County is about teamwork. We are committed to creating quality jobs, no matter the industry,” says Joe W. King, executive director, Florence County Economic Development. “Our strong network of partners remains steadfast in helping us achieve continued success.”

For example, in 2008 Florence County and the state of South Carolina announced that the Heinz Co. would locate its manu-

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Special Advertising Section

facturing operations on a 49-acre site in the Pee Dee Commerce City Park in Florence. Today the plant manufactures frozen food products at the new facility to meet increased customer demand and support the company’s southeast and northeast distribution centers. Heinz utilizes the readySC worker training program, which continues to be nationally recognized for its ability to offer customized training for businesses.

Founded as a railroad hub that later became the junction of three major railroad systems, the city of Florence was named after the daughter of its founder, Gen. W.W. Harllee, a celebrated businessman and president of the Wilmington to Manchester Railroad who had relocated to the area. After the Civil War, the Northeastern Railroad was the primary regional employer, and Florence grew around the transport of tobacco and other agricultural products from the surrounding Pee Dee River Basin.

In 1888, the S.C. General Assembly created the County of Florence, encompassing the towns of Timmonsville, Coward, and Lake City with the town of Florence as its county seat. Two years later, the City of Florence was incorporated.

Florence County is home to a number of training programs that serve as a foundation to its widespread economic development and business community. Programs like readySC provide customized training for new and expanding businesses and industry in Florence County and across the state.

With worker training provided at little or

County Spotlight: FLORENCE

Gov. Nikki Haley attended Honda’s announcement of a new production line at the Florence plant.

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no cost to qualifying companies, readySC promotes the economic and workforce development of the state by helping companies afford to grow. Employers find that readySC provides the recruiting and training assistance they need to get up and running.

In addition, SC Works online services link all of South Carolina’s state and local workforce services and resources on the web for easy and effective job hiring. The partners in this informative venture are the S.C. Department of Employment and Workforce and South Carolina’s 12 Workforce Investment Boards.

The Southeastern Institute of Manufacturing and Technology (SiMT) serves as the premier technical service and training provider for industry in the southeastern United States. In its state-of-the-art facilities, located on a 146-acre campus in Florence, SiMT provides engineering, CADCAM, rapid prototyping and 3D/virtual reality training in addition to leadingedge manufacturing workforce development and business training. All in all, Florence County offers a backbone of services to finding, training and growing companies in the area.

Florence County’s commitment to excellence has won many friends in the international business community, including ABB, G.E., Honda, OTIS Elevator, Monster, QVC, Roche and several others. The labor force is bolstered by seven technical colSee FLORENCE COUNTY, Page 16 Special Advertising Section

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County Spotlight: FLORENCE FLORENCE COUNTY, from page 13

2013 announcements to date:

leges in a 60-mile radius with enrollments exceeding 12,000 students annually; these programs have historically generated a 17:1 ratio of applicants per opening, meaning quality applicants are plentiful.

A prime example of how Florence County works with Commerce is illustrated in the 2008 announcement by Monster.com to expand to the region. Representatives from the Florence County Economic Development Partnership, the S.C. Department of Commerce and Red Rock Developments celebrated the grand opening of Monster’s customer service center. Monster is the leading global online career and recruitment resource and flagship brand of Monster Worldwide Inc. Developed by Red Rock Developments and located in a 75,000-square-foot building at 2701 Alex Lee Blvd., Monster.com® currently employs about 150 full-time workers and has planned for ability to grow its staff.

Before its facility was completed, Monster started in a temporary location in Florence in October 2008. The company has been recruiting talent and conducting training ever since the initial announcement in June 2008.

“Moving some parts of our business from overseas to Florence, S.C., was an investment Monster continues to be very pleased with given our performance. Since our initial establishment of operations in Florence, we have expanded our footprint to include higher levels of customer support as well as a growing sales team. We con-

ICE Recycling LLC: Facility expansion Investment: $1.05 million investment Potential job creation: 15+

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Monster.com, which announced its plans for Florence County in 2008, employs about 150 full-time workers in a 75,000-square-foot service center.

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Special Advertising Section

Wellman Plastics and Recycling: Facility expansion Investment: $5.5 million Potential job creation: 50+ GE Healthcare: New facility Investment: $17 million Potential job creation: 50+ Duke Energy Progress: Industrial development Site ready property development Angus-Palm: Facility expansion Investment: $13 million Potential job creation: 55 HONDA: New production line Investment: $27 million Potential job creation: 65+ Caliber Funding: New facility Potential job creation: 100+ tinue to be impressed with the capability of the workforce,” says Jeremy Curley, site director, Florence, S.C., Monster Worldwide.

“We are proud to be members of the Florence business community and the continued investment in our Florence operations is an integral part of our business strategy.”

Other prime examples of public/private partnerships at work include the Florence Recycling Center, where Johnson Controls opened its center for automotive battery recycling in 2012. The facility expands

Johnson Controls’ presence in Florence with a capital investment of more than $150 million, representing 250 new jobs, and 1,000 indirect jobs in the area. Currently, 200 employees are working onsite as the facility continues to improve its production, with approximately 132,000 metric tons per year or the equivalent of more than 14 million automotive batteries recycled.

OTIS Elevator, having purchased the former Maytag facility, houses manufacturing, engineering, contract logistics and field support in the 423,000-square-foot space. This facility allows OTIS to enhance customer support and product development for use in manufacturing its state-of-theart elevators in a single U.S. location. The new location supports OTIS’ commitment to innovative technology and world-class manufacturing under an umbrella of environmentally sound operations.

The quality of life in Florence County flourishes both in the business community and culturally, too. Just recently, Florence’s downtown revitalization efforts earned the coveted Economic Development Award from the Municipal Association of South Carolina. Based on Florence’s application, the city’s public sector investments led to significant growth with Francis Marion University’s $37 million Performing Arts Center. The PAC serves as a main anchor for much of downtown Florence’s cultural activities.

Other private sector projects such as the Hotel Florence and other business newcomers have prospered through the city and

County Spotlight: FLORENCE Francis Marion University’s $37 million Performing Arts Center is a big draw for Florence’s downtown area.

county’s investment in the cultural arts as an economic tool. The business community enjoys restaurants such as Victor’s Bistro and others that are thriving while office and retail space is being redeveloped for new and existing tenants.

“The addition of the Francis Marion Performing Arts Center illustrates how a successful downtown redevelopment plan can bring residents and visitors to a city

Victor’s Bistro is among downtown restaurants enjoying an uptick in business as nearby offices and retail spaces fill up.

center to enjoy all of the cultural amenities of a hometown,” says Miriam Hair, executive director of the Municipal Association of South Carolina.

In terms of higher education, Florence County is home to an array of educational opportunities to support industry and overall personal growth. Francis Marion University, with an enrollment of 4,200, is the only state university in the Pee Dee

region. Florence-Darlington Technical College is a two-year community college and part of the South Carolina Technical College System. Established in 1963, FlorenceDarlington Tech has an enrollment exceeding 6,000 students.

Coker College in Hartsville, about 20 minutes from Florence, is a private, co-ed four-year liberal arts school that emphasizes small classes and a practical application

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County Spotlight: FLORENCE

of the liberal arts with a discussion-based learning system. Coker College was ranked among the “Best Colleges” in the South by U.S. News & World Report and The Princeton Review. Nearby, Coastal Carolina University in Conway is home to 9,300 students and offers a far-reaching liberal arts education.

The new Virginia College is enrolling students within a fast-track curriculum for success in the growing fields of business and health and medical support.

Another important secret to Florence County’s success is found in the excellent health care services, including an impressive array of medical specialists through both the McLeod Regional Medical Center and Carolinas Hospital systems.

Newcomers find that the county’s industrial parks can efficiently accommodate growth. Pee Dee Commerce City, the Fox Building and the White Hawk Site are popular for multi-use business headquarters and easy expansion.

Aside from direct interstate access to the entire Southeast region, the Florence business community enjoys daily flights to Charlotte, N.C. A major domestic and international travel hub, Charlotte is the southeastern United States’ gateway to doing business in the Carolinas.

All-in-all, Florence County continues to gain the respect of not only local, regional and Fortune 500 corporations but has found itself on the map for multinational companies looking for a tax-friendly, pro-business environment. Through a commitment with the state of South Carolina, this county is showing the rest of the state how to bring industry to a region, nurture it and, ultimately, allow it to succeed.

For more information on Florence County contact: Florence County Economic Development Partnership www.fcedp.com, (800) 984-0682 www.scbizmag.com

County of Florence, South Carolina www.florencecounty.org readysc, www.readysc.org SCWorks, www.scworks.org SiMT, www.simt.com Special Advertising Section

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Economic development in S.C.

Economic development in S.C.

Rural S.C. towns aim to land

‘our Boeing’

By Chuck Crumbo, Staff Writer

F

At left, Sen. Kent Williams, D=Marion, stands in front of the former Blumenthal Mills plant in Marion, soon to be renovated and reopened by Essex Holdings (sign above) of Miami Gardens, Fla. The company says 215 jobs will be created. (Photo/Jeff Blake)

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or more than three years the abandoned Blumenthal Mills plant served as a painful reminder of Marion County’s dire economy, where nearly one in five workers is unemployed.

Opening in 1975, the brick-and-steel facility had employed 800 workers. When it closed shortly before Thanksgiving in 2009, about 140 were on the payroll.

At one time, officials considered tearing down the plant at the entrance to Marion, the county seat, to remove a symbol of the county’s economic plight.

“It was a reminder that people once had jobs,” said S.C. Commerce Secretary Bobby Hitt.

The plant won a stay of execution in late March when Essex Holdings of Miami Gardens, Fla., announced plans to invest $54.4 million in the facility and create 215 jobs.

It was economic news that hard-hit Marion County was glad to hear.

“The revitalization of this site will be a turning point for Marion County,” said state Sen. Kent Williams, D-Marion. “Upon entering Marion, visitors will once again see a thriving and viable plant.”

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What happened in Marion County is being repeated across South Carolina as manufacturers move into abandoned factories, build new facilities, and expand existing operations, creating jobs and opportunities in rural communities.

Examples include: • Harbor Freight Tools USA Inc. plans to spend $75 million and expand its existing distribution center in Dillon County by 1 million square feet and create 200 jobs.

The facility currently employs about 350 people.

• The former Federal Mogul plant in the Clarendon County town of Summerton is being converted into a production facility for Spirit Pharmaceuticals, headquartered in Centereach, N.Y. The company is investing $12.2 million and creating 296 jobs.

• In June, Tampa, Fla.-based Masonite International launched production to make interior doors in a new 200,000-squarefoot facility in the Bamberg County community of Denmark. The $14 million investment is expected to create 200 jobs.

A worker checks production at the new Masonite International interior door manufacturing facility in Denmark, in Bamberg County. The plant opening in June was the result of a two-year collaboration.

The revival of manufacturing in rural communities is just part of the state’s efforts to recruit new companies and nurture existing firms to expand. Since January 2011, the state has landed more than $9 billion in capital investment and more than 26,000 jobs in the manufacturing sector, according to the S.C. Department of Commerce.

Why a company prefers to operate in a

rural community rather than a metropolitan area depends on their needs and business plan, Hitt said.

In a way, companies can be as different as people.

“They have different personalities, they want to operate differently. Some are very open with you, some are not,” Hitt said.

“Some will tell you an awful lot about their

entrance to Marion, had been seized by local government for back taxes. Although the building had been looted and some repairs were needed, the facility was structurally sound, Berry said.

The state and county offered a range of incentives and grants that made the move easier and quicker for Essex Holdings. More importantly, Berry said, local officials and executives of Essex Holdings quickly built a strong, personal bond.

“Essex Holdings is here to stay for a long time,” said Navin Xavier, president and CEO of Essex Holdings. He added that Essex wants to do whatever it can to “infuse ourselves to do good for the county and the city.”

Essex will use the Marion facility to package and distribute long-grain rice imported from Cambodia through the Port of Charleston.

The company also plans to install five lines to manufacture Max Star Choice baby diapers. Essex Holdings expects to begin operations in the second half of this year.

The new jobs will pay about $13.90 an hour.

“Every one of these jobs will have an impact in Marion and will help keep the community sustainable for years to come,” Hitt said.

Excitement builds for new jobs Anticipation of new jobs is building in Summerton as the Spirit Pharmaceutical facility moves toward launching operations in the first quarter of 2014.

“I get lots of calls from people on how to apply for jobs,” said Dwight Stewart, chairman of the Clarendon County Council.

“There’s just a lot of excitement out there, just seeing the lights back on and cars in the parking lot again.”

Federal Mogul was one of the area’s largest private employers, providing about 325 jobs, Stewart said. “Now Spirit will bring back almost that many.”

Spirit is just one of three recent economic development announcements welcomed

by Clarendon County, which in July had a jobless rate of 12.1%.

In May, Advanta Southeast, a maker of

Economic development in S.C.

process, what they do and how they like to operate, and others not.”

Ultimately, a company makes a decision on where to operate based on whether they can make money.

What draws a company to one community or another depends on the availability and quality of the workforce and facilities.

For example, Essex Holdings’ interest in Marion County began last summer with a phone call to Rodney Berry, who at the time was executive director of the county’s Economic Development Commission and mayor of Marion.

The conversation initially focused on an unoccupied, 50,000-square-foot spec building that was available, said Berry, who now works on economic development issues for U.S. Rep. Tom Rice, R-S.C. “It gave us something to talk about,” Berry said of the spec building.

However, it turned out Essex Holdings had plans for something much larger. So, Berry showed company officials the Blumenthal site, which has 500,000 square feet under roof.

The facility, located near U.S. 76 at the

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Economic development in S.C. Marion County, with its tree-lined roads and smalltown neighborliness (above and below) has had an unemployment rate as high as 16.3% this year. “People in this county are accustomed to work because that’s all they’ve ever done,” says Sen. Kent Williams of Marion. (Photos/Jeff Blake)

RURAL DEVELOPMENT, from page 23

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reusable packaging, said it plans to invest $3.5 million and create 30 jobs. Advanta Southeast, based in Duncan, will move into an existing 53,000-square-foot building in Manning.

And in January, Swift Green Filters of Canada announced plans to open its first U.S. manufacturing operation in Manning. An initial $3.5 million investment is expected to generate 60 new jobs.

“When Federal Mogul left, it was like sticking a pin in a balloon,” Stewart said.

“Now, we feel like we’ve turned the corner and are headed in the right direction.”

Geography and access to interstate highways and seaports such as the Port of Charleston also factor into a company’s decision to locate in certain areas.

Harbor Freight CEO Eric Smidt said the company’s s existing facility in Dillon, located in an industrial park on

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Interstate 95, “has been a hub of our eastern distribution network for over a decade.”

The California-based company, which has a network of 430 retail stores, aims to complete the Dillon expansion by early 2014 and begin hiring for new positions this October.

Masonite also cited geography, along with the availability of a skilled workforce, for its reasons to expand in Bamberg County.

When Masonite announced its plans, Glen Coulter, executive vice president of global operations and supply chain, noted that the Denmark facility was near several major interstates, close to major customers and the company’s door fabrication plant in Yulee, Fla., which pre-hangs doors for Southeast retail customers.

‘Our Boeing’ Invariably, local officials characterize economic development announces like Essex’s, Spirit’s and Masonite’s as

equivalent to Charleston County’s landing of Boeing Company, an aerospace company that employs about 7,000.

“This is our Boeing for the rural areas,” said Williams, who represents Marion in the S.C. Senate.

In Marion County, which in June had an unemployment rate of 16.3% – more than double the state average of 8.1% – the Essex announcement was greeted with a collective joyfulness.

“It gives new life and new hope to the citizens of this great county,” Williams said.

Essex, he noted, has already begun hiring for the facility, which is scheduled to begin operations later this year. Workers are needed to help make repairs and install machinery, Williams said.

When a company moves to town, people are put back to work, which improves the community’s quality of life and broadens the local tax base, Williams said. That, in turn, provides for schools and municipal services like police, fire and EMS. “People in this county are accustomed to work because that’s all they’ve ever done,” Williams said. “They just want to be given that opportunity again.”

Recruiting new companies and creating jobs requires patience, a cooperative effort among local and state leaders, and diligence, Williams added.

“It’s always hard and tough to get that first one,” Williams said.

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Change fro The Sterling community in Greenville received an extension to raise funds to buy the Plush Mill and the land around it. The mill will be turned into a commercial development to spark revitalization.

By Liz Segrist, Staff Writer

T

he Rev. Allen Freeman remembers a Sterling community from the past.

He remembers the mostly black community in which many residents owned their homes and small businesses in the 1950s in West Greenville. He worked in his parents’ grocery store, tended to their family’s garden and spent time visiting on the front porch.

He remembers a community that he hopes to resurrect.

Enter the Sterling Land Trust, a group of residents led by Dot Russell. The trust wants to acquire the Plush Mill along S.C. 123 and renovate it into a commercial space that will bring jobs back into the community.

An undisclosed, health servicesrelated tenant plans to occupy part of the 77,000-square-foot mill. The tenants’ rent will funnel back into the community to fund projects to improve an area stained with blight and poverty.

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The trust plans to use the funds to create a multi-site urban farm that would hire residents and produce healthy foods. The former Huddle soda shop will become a training center for residents to hone in on their skills, such as tailoring.

The mill redevelopment would enable residents to stay within the community and avoid displacement by the rapid growth of downtown Greenville, according to trust leaders. It could serve as a model for the plethora of old mills throughout the state left from the booming textile era.

“Through the mill, the land trust has something that it can control,” said Freeman, the land trust vice president and 1950 Sterling High School graduate. “It will funnel money back into the community to buy more land for gardens, businesses, a senior center or housing.”

After renovations proved to be more expensive than originally calculated, the trust had to raise $450,000 by June 1 or the deal with the mill owner would expire.

The property owner, who didn’t respond to requests for comment, has granted a 12-month extension for the trust to raise the funds. The trust aims to close in the next 90 days, Russell said.

It still needs to raise $350,000 – and the clock is ticking.

Catalyst for change The large Plush Mill has stood vacant in Greenville for more than 30 years. It sits on three unkempt acres. Weeds climb the mill’s exterior walls. The doors creak in the wind.

Jagged shards of glass shine in the sunlight from the broken windows. Doors marked “men” and “women” in peeling paint still stand. Piles of bricks and wood sit in the mill – a job left unfinished.

But when Dot Russell looks around the Plush Mill, all she can see is the rebirth of Sterling and the promise of a brighter future.

See CHANGE, Page 30

Economic development in S.C.

om within “The mill will serve as the catalyst to bring jobs back into the community for its residents. It will jumpstart everything.”

Dot Russell

chairwoman, Sterling Land Trust

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Dot Russell sees the redevelopment of Plush Mill as a chance to build Greenville’s legacy. (Photo/Liz Segrist)

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Economic development in S.C.

“I was sitting in a neighborhood meeting hearing about their visions and I thought, ‘What can I do?’”

Peggy Baxter

founder, The Odessa Street Community Garden Photo/Liz Segirst

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CHANGE, from page 28

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“The mill will serve as the catalyst to bring jobs back into the community for its residents,” said Russell, the land trust chairwoman and Sterling Neighborhood Association president. “It will jumpstart everything.”

The Plush Mill project with the proposed tenant originally cost an estimated $5 million. The Sterling Land Trust secured $4.5 million in New Market Tax Credits financing through TD Bank with an undisclosed equity partner providing $500,000.

Through a pro-bono alliance, The Furman Co. offered services to the land trust, including a valuation of real property. A March assessment determined that the mill and its land would cost $6.2 million instead due to uncalculated renovations and square footage.

The trust is using its second extension to raise the additional funds to purchase the land, removing the expense from the debt and lowering the costs back down for the proposed tenants.

“We need help to raise this money,” Russell said. “This could be another part of Greenville’s legacy, blending Greenville’s and Sterling’s history to show how Greenville has evolved.”

Back to its roots The Sterling High School was destroyed by a fire in 1967. The cause of the fire was

never discovered. The high school was never rebuilt. Many graduates, like Freeman, left Greenville to attend college and advance their careers elsewhere.

As some return decades later, they find their childhood community quite different from the way they left it. The community struggles with high crime rates, kudzu curtains and unkempt rental properties. Job opportunities are scarce.

The trust sees the mill as a way to bring opportunities back to the community. In the meantime, residents are working to rebuild it themselves.

Peggy Baxter donated the vacant lot next to her childhood home to create The Odessa Street Community Garden to increase access to healthy food in the Sterling community.

Residents and volunteers tend to the 6,000-square-foot garden, growing tomatoes, okra, green beans, eggplant, potatoes, onions, herbs and both fig and persimmon trees. Anyone can benefit from the garden for free.

In conjunction with community partners, the trust turned the only building that survived the high school fire into a community and senior center. A kudzu field has been transformed into a cycling and pedestrian trial, the Sterling Tiger Trail.

“We want to bring jobs in for the people that need them – and it all starts with the mill,” Russell said. “The trust wants to buy the mill, own it and lease it out to show that this can happen for our community. We can redevelop from within.”

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Infrastructure grants help lure companies to S.C.

By Matt Tomsic

B

acked by a full flight line last May, Gov. Nikki Haley talked about the role of government incentives in luring businesses like the Boeing Co. to the Palmetto State.

A month earlier, the aerospace giant announced its second phase in the Lowcountry, which will add another 2,000 jobs and invest another $1 billion during the next eight years.

Haley praised the company, the state’s workers and its philosophy to provide incentives for infrastructure costs, which she and other state leaders say pay for resources that remain in the state for generations.

“We make sure we give them the proper site with sewer, water, whatever,” Haley said. “It is important for us to always remember government’s role is to take care of infrastructure costs so these companies can be here.”

To tackle those needs, the state created the Coordinating Council for Economic Development in 1986 to put state leaders on the same page for economic development efforts and to disburse funds for infrastructure costs associated with industry expanding into South Carolina. In 2009, the council awarded a $5 million set-aside grant for site preparation to help bring Boeing to North Charleston.

Often, those grants help level the playing field between South Carolina and other states that may have move-in ready sites, officials said.

“It’s definitely a major piece of our puzzle,” said Steve Dykes, director of economic development for Charleston County. “It’s a major tool in our toolkit.”

‘A coordinating function’ The Coordinating Council for Economic Development consists of representatives from 11 state agencies and is run by the S.C.

From left, Ludger Reckmann, ZF Transmissions Gray Court vice president of powertrain technology; Stefan Sommer, CEO of ZF Friedrichshafen AG; Lord Mayor Andreas Brand, city of Friedrichshafen, Germany; and Gov. Nikki Haley at the ZF ribbon-cutting event. (Photo/Bill Poovey)

Department of Commerce. The agencies include the S.C. State Ports Authority, S.C. Department of Agriculture, S.C. Technical College System, S.C. Research Authority and others.

In 2012, the council issued $47.8 million in grants to companies that are expected to create roughly 10,000 jobs and invest about $3.5 billion in the state, according to Commerce Department figures.

In 2013, the council has been involved in several projects, including ZF Transmissions’ expansion in Laurens County, Weber Automotive’s new facility in Charleston County and Davis Aircraft Products’ new facility in Georgetown County.

Commerce Secretary Bobby Hitt said the council’s role is to share advice and updates with state agencies that need to be involved in economic development.

“The point is exactly what the title says,” Hitt said. “It’s a coordinating function. It’s basically the agency heads sitting together to look at the work that we’re doing and help me and my staff to do that work and make

sure we thought through all the pieces.

Their role to me is very, very important.”

The coordinating council approves grants, and Commerce then puts together a performance agreement that includes claw back measures if the company doesn’t meet investment or job creation targets. The money for the grants comes from a variety of sources, Hitt said, including the Closing Fund, the Rural Infrastructure Fund and the Economic Development Set-Aside Fund.

Dykes said Charleston County receives grants for projects inside the county, and it reimburses the company with the grant funds as the company meets its requirements and invoices its expenses.

Hitt said he hasn’t had to claw back any grants during his tenure as Commerce secretary. The grants target infrastructure needs, Hitt said, like sewer connections, railroad access, building upfitting, land acquisition and road construction.

The council set aside a $2 million grant for land acquisition as part of ZF Transmissions’ expansion in Laurens County. The

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company supplies drivelines and chassis technology across the world, and its expansion is expected to add 450 jobs and invest more than $175 million.

For Davis Aircraft Products, the council set aside $300,000 to upfit a building in Georgetown County. Davis makes aviation tubing systems and is relocating to South Carolina. The move is expected to create 100 jobs with an investment of $5.5 million.

For Weber Automotive, the council set aside $200,000 for road improvements in Charleston County. Weber expects to create 84 jobs and invest more than $51 million as part of its operations to make vehicle components in the Lowcountry.

Hitt said the council also helps the state attract business by putting everyone on the same page. He referred to ZF Transmissions’ expansion, saying the company has special training needs, and since the chairman of the state technical colleges is on the council, he had been involved in the project and could offer the colleges’ help in training.

Ultimately, Hitt said the council also helps business navigate state laws and regulations. “Commerce is charged with the role of smoothing out the wrinkles and trying to make everything work,” he said. “These are people who are making decisions that are affecting South Carolina.”

County economic developers have also praised the council.

Gene Butler, director of economic development for Berkeley County, said the program helped the county lure Nexans, a cable manufacturer that is expected to invest $85 million and create up to 200 jobs. The coordinating council approved a $1.6 million grant to help pay for site preparation and infrastructure improvements.

Dykes of Charleston County said the grants are useful in the many cases when a company has the right site or building but some piece of infrastructure is missing.

“It’ll be a net minus if you can’t help make it happen,” he said. “When those things are missing, these grants become indispensable.”

Dykes said the grants also show the state’s long view of economic development.

Infrastructure improvements benefit a community over generations, he said, and often, the grant’s dollar amount is a fraction of the company’s investment.

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Economic development in S.C.

Brewing industry How a group of thirsty idealists took on Columbia and brought an explosive industry to South Carolina

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By Timmons Pettigrew

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Economic development in S.C.

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Photo/Chrys Rynearson

S.C. Craft Beer industry

“That (the Pop the Cap Law) was the catalyst. If it didn’t pass, we were opening a brewery outside of South Carolina.”

Jaime Tenny

founder of Pop the Cap SC, and co-owner of COAST Brewing

Photo/Leslie Burden

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S

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urveying the economic landscape over the last few years reveals very hilly terrain. Industries have waxed and waned, adapting to the “new normal,” or in some cases perishing.

Among the chaos, the craft beer industry has maintained year-over-year growth, both nationwide and here in South Carolina.

“Craft” beer differentiates itself in a number of ways, but there is no rock-solid set of criteria. Its definition is as much about intent as it is execution. This is beer produced not just with malted barley, hops, yeast and water, but with dedication and independent spirit. It’s by the underdog, for the underdog. It strives to bring more than just a buzz to your table, but new flavor experiences and opportunities to connect with your fellow drinker. Moreover, its fans are rabid, and its converts permanent, making it an industry any community should welcome with open arms.

Pre-Pop In modern-day South Carolina, that all started with Palmetto Brewing. The first

post-Prohibition brewery to open in the state, Palmetto cranked up in 1994, back when craft beer was a twinkle in microbrew’s eye. In addition to the struggles that any start-up experiences, the brewers of Palmetto had to deal with a state government that told them they couldn’t legally open.

The state was proved wrong, ultimately giving co-owners Ed Falkenstein and Louis Bruce a handful of restaurant liquor license applications, with portions scratched through by hand to try and accommodate a brewery. And thus, the tumultuous relationship between certain South Carolina entrepreneurs, and a state government that simply didn’t how to handle them, was born.

The late 1990s saw three more production breweries pop up in other parts of the state. It’s important to note that production “breweries” are legally different from “brewpubs” in South Carolina, with the former able to distribute their products to stores and bars, unlike the latter, which can only sell what they produce in-house. (This article focuses on the former.) Spartanburg’s RJ Rockers was founded in 1997 by Gulf

War veteran and New Jersey transplant Mark Johnsen. Then the state got a doubledose in 1998 with Thomas Creek opening in Greenville, and New South opening in Myrtle Beach.

After that, production brewery startups halted in the state for nearly 10 years, while hundreds opened in other parts of the country. Why the disparity? There are many culprits, but South Carolina’s beer laws are certainly on the list.

Pop the Cap Until mid-2007, beer could not be commercially produced or sold in this state over 6.25% Alcohol by Volume (ABV). South Carolina laws capped an entire beverage category, leaving a vast array of consumer choices out of reach. This restriction kept stronger beer off the shelves, discouraged out-of-state breweries from distributing here as their product offering would be limited, and threw a Palmetto-tree-shaped wrench in the creative works of the state’s few breweries. This wasn’t a deliberate move by the State House, but was a hold-

S.C. Craft Beer industry

North Charleston Mayor Keith Summey attended the opening of Holy City Brewing in North Charleston.

From left to right: Mac Minaudo, Joel Carl, Mayor Summey, Sean Nemitz, Chris Brown and brewery mascot Brewtus.

over from post-Prohibition legal jargon. It needed to go.

Enter Jaime Tenny, the founder of Pop the Cap SC, and now co-owner of COAST Brewing in North Charleston with her husband, David Merritt. She organized a movement to get the law changed, mirroring a recent effort in North Carolina, because of her plans to open COAST with Merritt, in addition to her love of craft beer. What seemed to proponents like an obvious “fix” to an antiquated law turned into a quagmire, with everyone from beer wholesalers, resistant to change their profitable environment, to neo-prohibitionists involved. There were, however, some sympathizers. State Rep. Bill Herbkersman, R-Beaufort, whose family

Chris Brown

co-owner and head brewer, Holy City Brewing

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Photo/Leslie Burden

“Thanks to the new pint law, HCB has already been able to grow our business and put two more people on payroll. Pretty nice for three months in.”

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S.C. Craft Beer industry

“I’m happy the powers that be recognized that and passed the pint bill.

Our Westbrook society is an even happier one thanks to them!”

Morgan Westbrook

co-founder/marketing director, Westbrook Brewing

owned the first post-Prohibition brewpub in the state, originally introduced the bill in the 2006 session and has remained a friend to the cause ever since. Finally in May 2007, Pop the Cap prevailed, and beer availability in South Carolina blossomed.

COAST had already opened at that point. Tenny reorganized Pop the Cap as the South Carolina Brewers Association.

While victory was hard fought, it would be the first in a series of battles to bring the state’s beer laws into the 21st century, and foster the growth of the industry.

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Tastings & Direct Sales

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The state’s four breweries could now brew nearly whatever they wanted (up to 17.5% ABV). But visitors could not legally taste the beer on the premises. Further, they could not buy beer directly from the brewery. Dry visits make for very few visitors, leaving huge cash flow opportunity on the industry’s table.

The next fight would be focused on rectifying this, and would again be spearheaded

by Tenny. Through a long slog of education, and compromises with the beer wholesale lobby (who until then got a piece of every beer sold to anyone outside of a brewpub), they settled on a limit of four 4-ounce tastings per person per day, and a retail purchase of up to 288 ounces per person per

Morgan Westbrook, co-founder/marketing director, with husband, co-founder and CEO Edward Westbrook of Westbrook Brewing Co. in Mount Pleasant. (Photo/Chrys Rynearson)

126-Year U.S. Brewery Count 2,500

Number of U.S. Breweries

The bottling line at Thomas Creek Brewery in Greenville. (Photo/Kevin Greene)

2,011

2,538

1887- June 2013

2,000

1,179

1,500

703

1,000 500

Prohibition

89

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Infographic/Jean Piot. Source: Brewers Association

day to take home. The law hit the books in mid-2010, after again being introduced by Herbkersman.

By the end of 2010, Westbrook Brewing came online in Mount Pleasant, complete with a purpose-built tasting room, and Holy City Brewing in North Charleston opened in mid 2011. South Carolina had three breweries open from 2007 to 2011, nearly doubling a count that hadn’t moved since 1998.The fun was just beginning.

The Pint Bill At this point, you could go to a South Carolina brewery and taste some beer. But go to a North Carolina brewery, taking your pick from the dozens that call it home, and you could buy a pint. You could even have

more than one. You, as an adult over the age of 21, could perform transactions with a legally sanctioned, tax-paying business with no arbitrary, state-imposed limit.

SCBA set their now-seasoned sights on what would come to be known as “The Pint Bill,” lifting the four 4-ounce sample limit up to something more reasonable. And again, the struggle began, with this round’s adversaries including MADD, who joined forces with one Greenville senator who would become the bill’s sole objector. Meanwhile, the cause gained another fast friend in Sen. Sean Bennett, R-Dorchester, who sponsored and fervently supported the bill throughout the session, citing its positive economic impact. A three-pint limit was the ultimate compromise, and in 2013, visitors

S.C. Craft Beer industry

From left to right: Matthew Ellisor, the vice president and assistant brewer, and Joseph Ackerman, president and head brewer at Conquest Brewing in Columbia. (Photo/Provided)

started enjoying pints of beer at our state’s breweries.

Meanwhile, brewery choices were growing in spades. River Dog in Ridgeland, Conquest in Columbia, Frothy Beard in North Charleston, and Quest in Greenville all opened in 2013. There were no less than five breweries (Brewery 85, Olde Charlestowne, River Rat, Seminar and Swamp Rabbit) being planned around the state at the midpoint of the year.

After three State House battles, countless hours of education, blood, sweat, tears, and beers, South Carolina is seeing its production craft brewery count skyrocket. Creating a legislative environment that is helpful to the industry is a key component of this growth. The effects are felt not just by the state’s brewers, but by the local farmers who feed their livestock with spent grain, by barley and hop farmers around the country, by the hospitality and retail industries that sell their products, by steel mills and fabricators producing massive tanks and kettles, and the list goes on. Craft brewing is a worthy and welcome complement to our state’s culture and economy.

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Timmons Pettigrew is the author of “Charleston Beer: A High-Gravity History of Lowcountry Brewing,”cofounder of CHSBeer.org with Chrys Rynearson, his book’s photographer, and precariously holds an M.A. in economics from the University of South Carolina. Follow him on Twitter @CHSBeer.

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S.C. DELIVERS

Ports, Logistics & Distribution

S.C. Inland Port The port facility is slated to open in September, providing a direct rail connection from the Upstate to the Port of Charleston.

This rendering shows the 375-acre tract of land the Greenville-Spartanburg International Airport owns next to the S.C. Inland Port. This airport rendering provides an idea of the buildings that could be constructed on the property. The airport is marketing the land for lease and views the property as ideal for manufacturers and distribution companies.

Truckers play waiting game over inland port

By Bill Poovey

T

rucking companies have heard the predictions: There will be more trucks operating around the S.C. State Ports Authority’s inter-

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modal container yard when it opens in October at

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Greer and fewer big rigs will be hauling intermodal containers between Charleston and the Upstate.

See TRUCKERS, Page 42

S.C. Delivers Tractor trailers crowd onto I- 526. Trucking companies are waiting to see how rail transportation to the inland port affects their business. (Photo/Leslie Burden)

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TRUCKERS, from page 40

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What truckers say they are not hearing: What deals are their customers being offered to switch from trucks to Norfolk Southern, their rail competitor given exclusive access to the new facility? Who will get the new port business?

Truckers say that for them, those answers will determine the winners and losers.

“That seems to be the most secretive thing in the world,” said G&P Trucking Co. President Clifton Parker, who said he is optimistic about new opportunities the port will offer.

Parker’s company acquired land near the inland port with hopes of landing business there.

S.C. Trucking Association President and Chief Associate Rick Todd said there is a lot of uncertainty about what the new rail yard means for the industry that the organization he leads has represented since the 1930s.

“For the truck lines that have historically been doing a longer dray from Charleston to that point along Interstate 85 or back this will pose a challenge,” Todd said. “Some of their customers will continue to use them.

Others will say, ‘Let’s price it out.’”

“For the truck lines that have historically been doing a longer dray from Charleston to that point along Interstate 85 or back this will pose a challenge.”

Rick Todd

President and Chief Associate, S.C. Trucking Association

The ports authority said about 20% of its container business is handled by rail.

Norfolk Southern’s Brian Gwin, when asked at a forum about the rates to transport containers by rail for 212 miles between the Port of Charleston and the inland port, said “we wholesale our transportation services to the steamship lines, so I can’t necessarily give you a number and say this is the number we are going to be charging. ” Gwin then said, “I think it will be a growing and learning process for everybody.”

Norfolk Southern spokesman Robin Chapman said the railroad’s trucking subsidiary, Thoroughbred Direct Intermodal Services, will do the drayage for BMW when the port opens and all the other companies will be selected by the steamship lines.

Chapman declined to discuss the amount of cargo or the cost arrangement that Thoroughbred has with BMW. Jim Newsome, president and CEO of the ports authority, has said that initially after the port opens it will take about 25,000 trucks off Interstate 26 and other highways, and eventually the overnight rail service will take 50,000 trucks off S.C. highways.

The inland port will link docks in Charleston with a container yard in the Upstate through an overnight train service.

Now, a loaded container is trucked from Charleston to the Upstate and unloaded.

That empty container then travels back to Charleston where the port has a yard for empty containers. If a shipper needs an empty container, the process repeats in reverse: A trucker grabs an empty container from Charleston and drives it to the Upstate.

See TRUCKERS, Page 44

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S.C. Delivers

TRUCKERS, from page 42

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Inland port opening delayed by weather

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he S.C. Inland Port has lost nearly 60 workdays to rain, and the ports authority now expects the first cargo to move through the Greer facility in October, not September as planned. The inland port will open in September, when the S.C. State Ports Authority plans to test its equipment there. By October, it will be fully operational.

Ports CEO Jim Newsome said construction crews have been delayed by 58 rain days, and customer contracts dictate that some cargo can’t leave Charleston for Greer until October.

“We can use the time because we lost 58 days on the rain,” Newsome said. “It’s incredible the work that has been done.”

The port continues to meet with customers who are interested in the facility, and Norfolk Southern Corp. is also bullish on the project’s potential, Newsome said. “I think we’re going to look back on it one day and say it was a very, very good business decision,” Newsome said.

Once the inland port opens, empty containers can collect there for use by Upstate shippers instead of being driven back to Charleston. The ports authority predicts as many as 100,000 container moves annually through the $47 million inland port, which could serve customers in the Upstate, western North Carolina, eastern Tennessee, northern Georgia and the Midwest.

G&P Trucking Co., which also has locations in Columbia and Charleston, has bought another 10 acres in Greer for $850,000 — adding to its 14-acre operation — to expand as the port opens.

“Do we have any customer we bought that for? I hope so, but I don’t have that person today,” G&P’s Parker said.

“There are definitely going to be more trucks in that 5-mile radius of the inland port,” Parker said. “Everything is going to begin there and end there. Today it begins and ends in Charleston.”

Parker said that when told about plans for the port, “the first thing I did was hang

up and start crying. But it is going to give the Upstate some options that today they don’t have.”

Parker said he is shopping for trucks powered by natural gas to do some of the dray work from the port in hopes that environmentally conscious customers will support fuel-efficient trucks.

“I think you are going to find smalltruck facilities open all over the place in the Upstate,” he said. “I think there are a lot of Upstate carriers trying to figure out how to get in the intermodal game. In Charleston they are saying, ‘If you’re going to take my business maybe I need to move.’ Then you have people who are newcomers to the table and customers who may use their own trucks.”

Parker said he has been in the business for 36 years and what “we don’t know yet is 250 miles to 500 miles west of the Upstate, will be able to convert more of that business to that rail facility rather than it being trucked to Charleston? You can get it to the Upstate and really you would only use one driver day.”

By Matt Tomsic

Lowcountry export initiative unveiled

he World Trade Center Charleston has unveiled its export initiative to boost Charleston’s exports and help the area’s small and mediumsized exporters grow.

The plan came together through a partnership with the World Trade Center, an initiative of the Charleston Metro Chamber of Commerce, and the Brookings Institution, which chose the Lowcountry for its metro export initiative.

The plan’s strategies include coordinating public and private experts to help area exporters; promoting large exporting companies in the Lowcountry; and targeting certain economic clusters and markets for trading relationships.

Jeff Cain, director of the World Trade Center Charleston, said the organization’s next steps in the export initiative are to translate its objectives into a business plan,

5,000 jobs are created for every $1inbillion exports Source: Marek Gootman, director of strategic partnerships at Brookings

create a regional export council and generate $255,000 in funding for the initiative’s operating budget in 2014.

Marek Gootman, director of strategic partnerships at Brookings, said the organization chose Charleston because of its capacity for export growth and the commitment of the area’s leaders in business and government.

“We’re talking about the launch of something that is putting Charleston on the

leading edge among all regions of the country,” Gootman said, adding Charleston is the sixth region to launch an initiative and is joining cities like Los Angeles and Chicago.

“Exports are going to be a critical, leading driver in the next economy.”

Gootman said about 5,000 jobs are created for every $1 billion in exports, and one “tradable sector” job creates three other local jobs.

“The U.S. economy is increasingly driven by exports as opposed to domestic consumption,” he said.

Michael Masserman of the U.S. International Trade Administration said 80% of growth during the next decade will happen outside of the U.S. and now is the time for cities to be deliberate in their plans to foster economic growth and increase exports.

“Today Charleston is on the international map,” Masserman said. “You are setting standards for other cities across the U.S.”

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Exports

SSA Cooper Full-Service Stevedoring & Terminal Operation Breakbulk Handling Specialists

Charleston Office:

(843) 971-2900 PO Box 1048, Mt. Pleasant, SC 29464 in Savannah (912) 652-0599

in Jacksonville (904) 665-0400

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Look for us worldwide including all major and minor ports in the U.S.

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S.C. Delivers

Manufacturing

Staff Report

BMW begins making third-generation X5 in S. C.

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roduction of the third-generation BMW X5, which was launched recently, marks another key milestone in the 21-year history of the German automaker’s South Carolina operation.

BMW began making the X5, a mid-sized luxury SUV, in 1999 – seven years after the company announced plans to build a facility in the Upstate, said Josef Kerscher, president of BMW Manufacturing.

“The X5 has been a significant contributor to the Spartanburg plant’s global success,” said Kerscher, who will be leaving the South Carolina plant Nov. 1 to assume new responsibilities as managing director of BMW Plant Dingolfing in Bavaria, Germany.

“Our team will continue to build the next-generation X5 with

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the superior quality that our customers around the world have come to expect from South Carolina,” Kerscher said. His remark offers an endorsement of the quality of the state’s workforce and its ability to make complex machines such as cars and airplanes, said S.C. Commerce Secretary Bobby Hitt, who worked for BMW before leading the Commerce Department.

“While our state has always been good at making things, in the last 20 years, we have reached a new level of complexity and significance through advanced manufacturing,”

Hitt said in the agency’s weekly newsletter.

“This trend is largely due to what I call the BMW effect. Since setting up shop in 1992, BMW has helped to nearly quadruple South Carolina’s automotive industry.”

Since 1992, BMW has invested more than $5 billion in its South Carolina operation and about 50 of the company’s 170 North American suppliers have located in the state.

Originally projected to provide 2,000 jobs, BMW Manufacturing has more than 7,000 workers who report to the plant. Another 16,000 people work for suppliers who moved to South Carolina.

A 2008 study by the Darla Moore School of Business at the University of South Carolina estimated that BMW annually pumps $8.8 billion into the

X6

X5

X3

S.C. Delivers

state’s economy, leading to the creation statewide of 4.3 jobs for every job created at the Upstate factory.

The first new third-generation X5 to roll off the assembly line on Aug. 1 was a mineral white M50d, with a six-cylinder inline diesel engine that will be exported to a dealer in Eastern Europe.

The final second-generation X5 was produced at the plant June 28 and will become part of the permanent BMW historic car collection.

Between September 2006 and June 2013, the plant in Spartanburg County produced 728,107 second-generation X5 models, making the model series the best-selling in the history of the plant.

More than 1.3 million first- and secondgeneration X5s have been produced at the S.C. facility. The Spartanburg plant is completing a major $900 million expansion to increase production capacity to 350,000 vehicles per year and to prepare for the launch of an entirely new vehicle, the X4 in 2014.

About 70% of the plant’s annual output is shipped to 140 global markets.

Mixed results for Made-in-S.C. Bimmers Year-to-date, the BMW Group reported a 9% increase in U.S. sales for the first six months of the year. Here are results for the models made in South Carolina.

BMW X6

BMW X5

BMW X3

2,836

19,981

14,417

(-1.4%)

(+7.4%)

(-1.2%)

SOURCE: BMW Group, year-to-date sales through June

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1,000 WORDS

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Campbell’s Bridge, built in 1909 near Landrum, is the last covered bridge in South Carolina. Built over Beaverdam Creek, it is believed to be named for Lafayette Campbell, who operated a grist mill there. (Photo/James T. Hammond)