2016 SCBIZ - Issue 2

Summer 2016

Swinging for the fences Columbia’s Bull Street hospital site is transformed with a ballpark and office space.

And that’s just the beginning.

CHANGE SERVICE REQUESTED 1439 Stuart Engals Blvd.

Suite 200 Mt. Pleasant, SC 29464 SC Biz News

County Spotlight: Laurens | Trending: Automotive Industry in S.C. | S.C. Delivers

Table of

CONTENTS FROM THE COVER: A WHOLE NEW BALL GAME 34

The Columbia Fireflies are playing ball at the new park on the site of the former S.C. State Hospital on Bull Street, the centerpiece of a major redevelopment plan in the capital city.

Left: Columbia Fireflies outfielder Kevin Kaczmarski slides safely into third base.

Cover photo: Fireflies first baseman Dash Winningham takes a swing. (Photos/Jeff Blake)

TRENDING: AUTOMOTIVE IN S.C. 16 SPRINTER FOR THE LONG HAUL Mercedes-Benz Vans building full-scale production facility and campus in the Lowcountry

www.scbizmag.com

28 WHAT IS PRODUCED BY BMW IN THE UPSTATE?

2

FEATURE

22 BMW MANUFACTURING CEO: ‘IT HAS ALL WORKED OUT FOR US’ 30 EXPANDING THE BOUNDARIES OF REALITY

38 SALUTE TO MANUFACTURING HONORS FIVE COMPANIES Travelers Rest company earns Silver Crescent

DEPARTMENTS 6 Grady Johnson’s Viewpoint

10 Spotlight: Laurens County

7 Upfront

40 S.C. Delivers

48 1,000 words

Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546

From the

Associate Editor - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145

EDITOR

Creative Director - Ryan Wilcox rwilcox@scbiznews.com • 843.849.3117 Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118

Dear Reader,

LOWCOUNTRY NEWSROOM

My morning commute, like that of many thousands of others working in South Carolina, involves driving on a stretch of interstate into downtown.

After months of driving on this washboard of a roadway, I decided to make my life better.

Like many of you, I’ve begun driving in on surface streets, avoiding the interstate altogether. It may – or may not, depending on traffic – take a few minutes longer, but it’s a much smoother ride.

I sincerely hope this is the last time I need to write about the

Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119 Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144 Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.843.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104

condition of roads in South Carolina. At this moment, it does

Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128

sound as though the Legislature has finally found a way, through

Assistant Graphic Designer - Emily Matesi ematesi@scbiznews.com • 843.849.3124

bonding issues, to provide money to fix our roads. We get that an increase in the gasoline tax is not going to happen, and it’s promising that our lawmakers have found another way.

Licia Jackson Editor, SCBIZ Magazine

Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142

Writing about roads leads naturally to thinking about cars, and

MIDLANDS NEWSROOM Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Staff Writer - Melinda Waldrop mwaldrop@scbiznews.com • 803.726.7542

that’s the trending topic of this issue of SCBIZ. We’re taking a look

Research Specialist - Patrice Mack pmack@scbiznews.com • 803.726.7544

at South Carolina’s automotive manufacturing cluster, which is

UPSTATE NEWSROOM

growing yet again with the addition of Volvo and Mercedes-Benz vans. The longtime automotive engine of our state, BMW, celebrates its 100th year in business this year and we examine the Upstate manufacturer’s impact.

Another part of our package covers the cool new world of augmented and virtual reality

Editor - Matthew Clark mclark@scbiznews.com • 864.235.5677, ext. 107 News Editor - Don Fujiwara dfujiwara@scbiznews.com • 864.235.5677, ext. 106 Staff Writer - Bill Poovey bpoovey@scbiznews.com • 864.235.5677, ext. 104

and its uses in automotive and other manufacturing. It’s a great tool for training workers,

Staff Writer - Teresa Cutlip tcutlip@scbiznews.com • 864.235.5677, ext. 103

allowing them to make mistakes without hurting themselves or damaging multimillion-

ACCOUNT EXECUTIVES

dollar equipment.

Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143

We also show you what’s going on at the site of the former S.C. State Hospital at Bull Street, a place well known across the state. The Spirit Communications Park, home of Columbia’s new minor league baseball team, is a first-class facility, and construction work is proceeding all around the 165-acre property.

Also in this issue are the winners of the S.C. Manufacturing Awards, given at the recent S.C. Manufacturing Conference and Expo in Greenville. Enjoy!

Senior Account Executive - Sue Gordon sgordon@scbiznews.com • 843.849.3111 Senior Account Executive - Alan James ajames@scbiznews.com • 803.726.7540 Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109 Account Executive - Bennett Parks bparks@scbiznews.com • 843.849.3126 CONTRIBUTING PHOTOGRAPHER: Jeff Blake President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103

www.scbizmag.com

Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110

MailingCorporate address: & Commercial Publishing Division 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 Phone: 843.849.3100 • Fax: 843.849.3122 www.scbiznews.com SC Business Publications LLC

4

A portfolio company of Virginia Capital Partners LLC Frederick L. Russell Jr., Chairman

The entire contents of this publication are c­ opyright by SC Business Publications LLC with all rights reserved. Any reproduction or use of the content within this p ­ ublication without permission is prohibited. SCBIZ and South Carolina’s Media Engine for Economic Growth are registered in the U.S. Patent and Trademark Office.

Director of Audience Development - Rick Jenkins rjenkins@scbiznews.com • 864.235.5677, ext. 112 Event Manager - Kathy Allen kallen@scbiznews.com • 843.849.3113 Audience Development & IT Manager - Kim McManus kmcmanus@scbiznews.com • 843.849.3116 Event Planner - Jacquelyn Fehler jfehler@scbiznews.com • 864.235.5677, ext. 113 Accounting Manager - Vickie Deadmon vdeadmon@scbiznews.com • 864.235.5677, ext. 100

Grady Johnson’s

VIEWPOINT Reflecting on our governor’s good instincts

I

www.scbizmag.com

’m writing this after a very ugly Republican presidential primary, before the national conventions and the general election. Being afflicted with a chronic case of hindsight has taught me to be wary of typing things I may later regret.

So I’m not saying anything about presidential outcomes until the election is over, but I will comment on how wisely our governor has reacted to the national spotlight.

And she’s certainly gotten her share of it in tragic circumstances, economic development announcements and presidential primaries.

It has now been almost a year since the horrific killings at the Mother Emanuel AME Church here in Charleston. I will forever remain in awe of the reaction of the victims’ families and the community. People everywhere were holding their breath in anticipation of the community tearing itself apart in an eruption of violence. The opposite happened in a testament to the wisdom and grace of the AME church congregation, the relationships built over decades with former Mayor Joe Riley, Gov. Nikki Haley being there in lock step response with Mayor Joe, and in attendance at every heartbreaking funeral.

President Obama’s coming to Charleston and attending the memorial service for the victims was an unprecedented event. Think about this: The president of the United States came to our port city, went to one of our churches, spoke eloquently about the

6

victims and the values of our country and – sang. It’s one of the most incredible and moving things I’ve ever seen.

And yet, watching the governor seize the moment to push through the removal of the Confederate flag from its place at the State House was more than gratifying. It is one of the few times in recent memory when I can actually say I saw our state leadership work past the bickering and political infighting to do the right thing. Gov. Haley’s leadership in putting things right and bringing this state together was exemplary. I’m sure there was no calculation at the time, but I will posit that the South Carolina summer of 2015 will be remembered more for Nikki Haley taking down the flag than for the president of the United States coming to Charleston and singing.

More recently, our governor scuttled a “bathroom bill” that could have had grave consequences. As I observed our neighbors to the north shoot themselves in the foot, I couldn’t help but wonder if our economic development officials were standing gleefully on our side of the border with a big ol’ catcher’s mitt. Then I held my breath when state Sen. Lee Bright, R-Roebuck, introduced the same lunacy into our General Assembly. Again, Gov. Haley showed exemplary wisdom by calmly saying this is not a problem in South Carolina and this bill is going nowhere. And guess what? It isn’t, and it hasn’t.

But you have to ask yourself why there

wasn’t some big political ruckus with all the self-righteous trimmings. Well, having our neighbor try to act like everything’s normal with a shot foot is a pretty good reason, but I also have to believe that the governor has earned the grudging respect of the Legislature and they know that when she’s right, she’s right.

Finally, I watched with some trepidation the Republican response to President Obama’s recent State of the Union address because this political plum has been traditionally offered to the next-to-be-anointed presidential candidate. Would Gov. Haley go all Sarah Palin on us and say something cringe-worthy or use the spotlight to overtly promote her own political aspirations?

Instead she used the time allotted to chide Republicans to remember what they stand for in the midst of a horrible presidential campaign season in which those values seem to be radicalized for the benefit of the fringe or thrown out the window altogether.

All told, South Carolina’s governor came through with flying colors and demonstrated wisdom well beyond her years in office.

Wait a minute. I used South Carolina’s governor and wisdom — all in the same sentence?

Could be she’s won me over as a fan.

Grady Johnson President and Group Publisher, SC Biz News

SUBSCRIPTION INFORMATION SCBIZ reaches thousands of South Carolina’s top decision-makers. Add your name to the list by ordering a print subscription to SCBIZ.

Your subscription also includes SCBIZ Daily. Delivered to your e-mail inbox each weekday morning, SCBIZ Daily is your link to statewide business news.

One year for $43.50

SUBSCRIBERS Subscribe or change your address online at www.scbizmag.com or call 843.849.3116.

UPFRONT

regional news | data

Are you feeling thirsty?

S

outh Carolina’s Department of Parks, Recreation and Tourism is counting on you and thousands more needing to “Satisfy Your Thirst” in a big way this year.

From sweet tea to moonshine, the “Thirst” campaign is promoting the distinctive beverages produced and sold in South Carolina.

The campaign is modeled after the successful South Carolina Barbecue Trail (featured in SCBIZ last year) that attracted national attention. The thirstsatisfying campaign includes a tour map and a mobile app.

“We’re giving consumers a refreshing new look at the Palmetto State to help them consider us for their future

vacations,” said Duane Parrish, director of SCPRT, which administers the state tourism program.

More than 90 establishments are listed on the tour map, including: • Bottlers such as Blenheim Plant in Hamer • Breweries like the Hub City Tap House in Spartanburg • Distilleries such as the Daufuskie Island Rum Co. • Wineries and vineyards including La Belle Amie in Little River • The Charleston Tea Plantation in Wadmalaw Island • Dairies like Hickory Hill Milk in Edgefield (after all, milk is the state beverage) All these places offer tours and sampling.

For more information, check out the state’s travel website, DiscoverSouthCarolina.com. Click on the box that says “Satisfy Your Thirst” for maps, the app and more.

FAST FACTS | AUTOMOTIVE INDUSTRY IN S.C. Section starts on

Page 16

Annual economic impact

$12.1 billion Capital investments announced since 2011

46,000

Number of South Carolinians employed in the industry

Source: S.C. Automotive Council, ‘Economic Impact of S.C.’s Automotive Cluster’

300+

Number of automotive manufacturing companies in S.C.

www.scbizmag.com

$27.1 billion

7

New Economic Development

www.scbizmag.com

UPFRONT

Here are announcements made in South Carolina since late March 2016

8

COMPANY

COUNTY

INVESTMENT JOBS

COMPANY

Sunbelt Rentals Inc.

York

$8M

N/A

Chartspan Medical Technologies Inc. Greenville

Viva Holdings Group Inc.

Berkeley

$28M

200

United Phosphorus Inc.

Williamsburg $20M

65

Southeast Frozen Foods

Calhoun

$6M

30

CABTEQ Solutions

York

$3M

125

thyssenkrupp Industrial Services

Charleston

N/A

32

Roy Metal Finishing

Greenville

$16M

40

Sioux Chief Manufacturing

Cherokee

$2.5M

77

MSI-Forks Inc.

York

$3.5M

33

Sitel

Spartanburg $2.5M

400

MAKROChem

Lancaster $7.5M

20

J&L Wire

Colleton

$2.5M

50

Comcast

Charleston $21.4M

550

Husqvarna North America

Orangeburg

$29M

N/A

Schaeffler Group USA

York

105

Zero Connect

Pickens

$1.3M

72

Jiangnan Mold Plastic Technology Spartanburg $45M

150

Reliable Automatic Sprinkler Co.

Pickens

$23M

100

SterAssure Processing

Greenville

$2.2M

25

Mercom

Georgetown $6M

152

WG Plastics Technology Group

Abbeville

$2.7M

50

The Lighthouse for the Blind Inc.

Dorchester

20

$2M

COUNTY

INVESTMENT JOBS $3.2M

$36.5M

300

Source: S.C. Department of Commerce

A

re you a part of the technology community in South Carolina?

We all are to some extent – but those who live and breathe technology have a new way to connect, initiated by the S.C. Department of Commerce’s Office of Innovation. It’s called the S.C. Innovation Hub (available at scinnovationhub.com).

Its purpose is to give those in the technology sector a platform to access resources and connect with each other. It’s interactive, letting registered users post news stories and other information. There’s also a place to post events; current ones range from a high-tech 5K to an open house at a coworking space.

It’s a lively site with brightly colored photos and graphics and quick links to events, like-minded groups and resources. In addition, the Innovation Hub features a directory of technology companies and jobs in South Carolina. Users can register with an existing

More manufacturing jobs coming to S.C.

S

outh Carolina’s efforts resulted in recruiting 9,680 new manufacturing jobs to the state in 2015, according to the S.C. Department of Commerce.

That number was about 56% of the total jobs recruited, at more than 17,000.

UPFRONT

Innovation community has new way to connect

Here are some other numbers: Tech workers share space at SOCO in Columbia.

(Photo/Chris Cox)

LinkedIn profile.

“We know that business doesn’t sit still.

It’s constantly changing and evolving,” said Secretary of Commerce Bobby Hitt. “This new tool – a front door to companies working in the technology sector and the knowledge economy – fulfills many requests from the entrepreneurial community for a statewide resource, allowing these rapidly growing firms to connect and help them succeed.”

• S.C. manufacturers employ 11.6% of the state’s workforce.

• There were 231,600 manufacturing employees in South Carolina in 2015, with average annual compensation of $69,000 in 2014.

• Manufacturing companies in the state exported $3 billion worth of manufactured goods in 2015. Exports of manufactured goods rose by about 53% last year, compared to 2010.

Source: S.C. Department of Commerce, National Association of Manufacturers

www.scbizmag.com

9

county spotlight

LAURENS

Musgrove Mill golf course.

(Photo/Laurens County Development Corporation)

LAURENS COUNTY Small towns with big opportunity

By Jenny Peterson, Staff Writer

www.scbizmag.com

L

10

aurens County’s location in the center of the Piedmont region makes it an ideal place to do business. Bordered by Spartanburg and Greenville counties, and with easy access to Atlanta, Charlotte and the Port of Charleston, Laurens County bills itself as a gateway to the Upstate.

Laurens remains a quaint and charming community with a strong manufacturing industry. Amidst the rolling hills and lush forests is a robust manufacturing community that includes ZF Transmissions, Wal-Mart Distribution Center and Faurecia, the sixth largest international automotive parts manufacturer in the world.

Special Advertising Section

Laurens County by the numbers EMPLOYMENT BY INDUSTRY Manufacturing...... ........................ 7,7 64 Health care and social assistance.. ....................... 2,00 9 Educational service s......................1,673

Median value of ow ner-occupied housing units............ .................. $81,000 Total population........ .................... 66,537 Source: U.S. Cens us Bu

reau

COUNTY SPOTLIGHT: LAURENS

With a lower cost of doing business than nearby counties, Laurens maintains a high quality of life. The county is paradise for history lovers, with a number of important Revolutionary War battles having been fought at the Musgrove Mill state historic site along the Enoree River.

Lakes abound in Laurens County, including Lake Rabon and Lake Greenwood, with more than 200 miles of shoreline. The Enoree and Saluda rivers provide fishing and boating opportunities.

Many of Laurens’ textile mills have been replaced with high-tech automotive, manufacturing and advanced materials. The county is investing heavily in its future workforce, providing technology-based training at the Center for Advanced Manufacturing as well as offering high school graduates free tuition at Piedmont Technical College.

“When you put the whole puzzle together, we come out as a very attractive place to locate a company,” said Jonathan Coleman, executive director of the Laurens County Development Corporation. “Our central location, along with our trained and ready workforce, makes it a great place to do business.”

Diverse industrial base Laurens County has a thriving and growing manufacturing industry, with more than $200 million in investment over the past two years.

Top: Groundbreaking for Prebysterian College School of Pharmancy in Clinton. Bottom: The School of Pharmacy accepts 80 students each year. (Photos/Laurens County Development Corporation.)

www.scbizmag.com

Woodfield Industrial Park.

12

Special Advertising Section

COUNTY SPOTLIGHT: LAURENS

The Center for Advanced Manufacturing at Piedmont Technical College.

Groundbreaking for the Clinton I-26 Corporate Park.

New expansions include: • $30 million for CCl Label commercial printing • $20 million by Inteplast Plastic Film • $16 million for Anderson Floors.

“Our manufacturing sector continues to thrive,” said Coleman. “Eighty percent of our economic development announcements are related to existing industries already doing business.”

New businesses are high tech – some supply the BMW Manufacturing plant in Spartanburg County, including ZF Automotive Transmissions, which has invested over $600 million and provides more than 1,600 jobs in the county.

“ZF Automotive transmissions continues to be our shining star,” Coleman said.

The county’s top industries for employment are manufacturing and health care.

The county school district also employs more than 1,000 people.

Many industrial sites are strategically situated along Interstates 26 and 385 and certified for immediate move-in.

neighbors in the Southeast,” Coleman said. The county offers job development credits, job tax credits and fee in lieu of property tax credits and it works heavily with the readySC training program to provide a qualified workforce.

lows companies elbow room.

“The Piedmont has the large flexible space to do whatever any industry needs,” Coleman said.

State and discretionary incentives are offered to those looking to relocate or expand.

“We are very competitive with our

www.scbizmag.com

Major sites in Laurens County include: • Power South Industrial Site • Owings Industrial Site • Hunter Industrial Park • Clinton I-26 Corporate Park.

There are commercial sites, industrial sites, parks and buildings to suit any need, and the expansive area in the Piedmont alSpecial Advertising Section

13

COUNTY SPOTLIGHT: LAURENS Musgrove Mill State Park in Clinton.

Laurens County residents find many choices for shopping. (Photo/Laurens County Chamber of Commerce)

Investing in Laurens County

Recent company announcements and expansions in Laurens County

www.scbizmag.com

Company 2014

14

Location

No. jobs created

Investing in the workforce Investment

Anderson Floors - Shaw Clinton UTI Logisitics Laurens Emitec Fountain Inn McClure Laurens RAI Gray Court CCL Label Clinton CeramTec Laurens 2014 Total 2015

70 $16M 15 -20 $3M 0 $4M 30 $4.5M 98 $30M 40 $13.2M 273 $70.7M

3S International Hickory Tavern Inteplast Gray Court CB&I Laurens ZF Gray Court Mogul Gray Court UTI Logisitics Laurens AstenJohnson Clinton RAI Gray Court Brawo USA Laurens Cobb-Vantress JoAnna 2015 Total

2016

120 $15M 40 $20M 56 $4.4M 545 $22.5M 38 $17.8M 50 -0 $32M 0 $5.5M 30 $8M 13 $22M 892 $147.2M

D&W Fine Pack Bodycote

Special Advertising Section

Fountain Inn Fountain Inn

62 30

$20M $3.5M

Source: Laurens County Development Corporation

Laurens County is committed to investing in its future workforce. The Laurens County Future Scholarship, open to any resident who graduates from high school there, allows students to attend Piedmont Technical College for two years free.

“The graduating class of 2015 was the first class that was able to take advantage of the program, and we saw a 30 percent increase of students enrolled at Piedmont Technical College,” Coleman said.

The Center for Advanced Manufacturing, which serves students at Piedmont Technical College, uses the most updated and advanced C&C machining, welding, mechatronics, robotics and more.

“Manufacturing in general is moving toward automation and robotics,” Coleman said.

Rusty Denning, associate vice president, Workforce Development and Continuing Education, said, “Our three main programs of study are welding, mechatronics and our machine tool technology. That’s the main need of our local industries.”

The 39,000-square-foot facility is a partnership among Piedmont Technical College, county and city governments, the Laurens County Development Corporation and local industries.

Transportation Interstates offer convenient connectors to and from Laurens County. The Greenville-Spartanburg airport is nearby, and the Laurens County Airport serves business, private and corporate jets. More than 40 motor freight carriers are ready to ship goods with a quick two-day drive to all major markets on the East Coast.

The Carolina Piedmont Railroad, a subsidiary of Genesee & Wyoming, oper-

COUNTY SPOTLIGHT: LAURENS

Associate degrees and certifications at the Center for Advanced Manufacturing include: • general technology welding • mechatronics technology • welding certifications • machine tool CNC precision operator • manufacturing production technician • precision metrology certificate.

Denning said the center adds classes based on industry needs. “The whole purpose of that center is to ask, ‘What does industry need and how we can help?’” he said.

The center also has an industrial lab, where companies train employees on large equipment; it also offers training areas and classrooms for rent.

Piedmont Technical College also has a number of students enrolled in health care, with nursing and certified nursing assistant degrees.

Other education options in Laurens County include Presbyterian College, in Clinton, a Carnegie-One Liberal Arts College and one of the top in the nation. A new School of Pharmacy has recently been added.

Piedmont Technical College Laurens County Higher Education Center. (Photos/Laurens County Development Corporation)

ates a 35-mile rail system between Laurens and Greenville, parallel to I-385. Rail service is also offered by CSX Transportation, with the company’s main line passing directly through Clinton.

“Another one of our strengths is a great number of industrial sites that can be served by rail,” Coleman said.

Quality of life Laurens County features forests and gently rolling hills. Hiking trails, hunting areas and recreational opportunities abound.

Private and public lakes are plentiful in Laurens County.

Rich in agriculture, the county has more than 830 farms that thrive there.

Laurens County has two private 18-hole golf courses: Musgrove Mill, an Arnold Palmer World Class Championship Course, and Lakeside Country Club, which includes swimming and tennis.

The Enoree Ranger District of the Sumter National Forest consists of more than 170,000 acres, partially located in Laurens County.

The county offers a wide range of outdoor recreation activities, including the Musgrove Mill Revolutionary War site.

Clinton is a vibrant community that hosts a number of festivals and family-friendly events all year long. County seat Laurens is a charming community where people still gather downtown to shop in the town square.

Laurens County Memorial Hospital is a collaboration between Greenville Health System and Laurens County Healthcare. The hospital has 90 beds, offering a host of health care services, including cancer screening, children’s services and a birthing center.

With an average home price of $81,000, Laurens County is an affordable and attractive place to live, work and play.

Walmart distribution center

www.scbizmag.com Special Advertising Section

15

TRENDING: AUTOMOTIVE IN S.C. www.scbizmag.com

16

Roof assembly on the main line of the Sprinter Plant in Düsseldorf. (Photo Mercedes-Benz Vans)

TRENDING: AUTOMOTIVE IN S.C.

SPRINTER FOR THE

LONG HAUL

Mercedes-Benz Vans building full-scale production facility and campus in the Lowcountry

By Liz Segrist, Staff Writer

www.scbizmag.com

17

TRENDING: AUTOMOTIVE IN S.C.

“The American market is a very important market for us. We have seen in the past very stable growth, not only for short period, but on a long-term basis.”

Michael Balke

Mercedes-Benz Vans CEO at the S.C. Manufacturing Conference and Expo in Greenville

Photo/Kim McManus

F

or the past decade, Mercedes’ vans have arrived at the Port of Charleston from Europe in pieces.

Originally assembled in plants in Spain and Germany, the vans are then disassembled, packed into shipping containers and sent to the Port of Charleston. One car typically occupies two containers — the body of the car in one and the remaining parts, such as the drive train and headlights — in the other.

The complex supply chain, known as a semi-knocked down process, helps the company avoid high tariffs accrued from importing fully produced cars into the U.S.

This process has worked well since 2006 — when the company put down roots in the Lowcountry — but the German automaker is now ready to overhaul its existing logistics process and make a bigger commitment to the North American market, Michael Balke, Mercedes-Benz Vans CEO in S.C., said.

In March 2015, the company announced plans to expand its existing operations by building a full-scale production facility and automotive campus on more than 200 acres in Ladson. Site preparation and early-stage construction have started.

Mercedes-Benz Vans, a division of

Daimler, plans to build the vans from start to finish at its Lowcountry plant and grow its area workforce 10 times its current size.

“We want to produce the cars locally — not only assembling, but building them from beginning on,” Balke said during the recent S.C. Manufacturing Conference and Expo in Greenville.

The $500 million investment will be spent on a new assembly building and line, body shop and paint shop where an estimated 1,300 new employees will build next-generation Sprinter and Metris vans for the U.S. and Canadian markets.

These commercial vans are mostly used by

through readySC and at the Ladson plant.

Some of the employees will also undergo training at other Mercedes-Benz facilities around the world, where they will learn firsthand how to run a body shop or work in a paint facility, for example.

“We need a lot of people who will operate this facility,” Mercedes Benz Vans CEO

Michael Balke said. “Building this facility is relatively easy. The main thing is to have the right people on board to operate it.”

Mercedes is currently hiring specialists in information technology and engineering.

Beginning in early 2017, the automaker will begin hiring for shop floor positions, Balke said.

www.scbizmag.com

A growing workforce

18

Initial projections call for hiring around 1,300 employees, though the company expects to eventually employ 3,000 people at its Lowcountry plant, according to a regulatory permit filed recently with the U.S. Army Corps of Engineers, Charleston District.

The majority of new hires will be trained

TRENDING: AUTOMOTIVE IN S.C. In March 2015, Volker Mornhinweg, head of Mercedes-Benz Vans, and Gov. Nikki Haley, reveal plans for the new automotive campus in the Lowcountry. (Photo/Kim McManus)

logistics companies, hotels or resorts for the transport of people and goods.

Sprinter van production will occupy the bulk of the expansion; those vans will be built from start to finish in Ladson. A second line for Metris van production will also

be added, though Balke said that business will “stay as is” for now, meaning those vans will continue to be reassembled from parts shipped from overseas.

“If we go full production for the Metris van, that decision will be made later on, but

at least we are preparing ourselves to have the opportunity for that decision,” Balke said.

The decision to bring the entire lifecycle of Sprinter van production to the U.S. was sparked, in part, by a new model. Mercedes will begin full production of the next generation of the Sprinter van in 2018.

“It makes sense if you do it with a new model because every new model needs some specific tooling. ... You can utilize the tooling for the complete life cycle,” Balke said. “And we start this full operation with the next generation of the Sprinter, and this is launching in 2018. This is why we have chosen this timeline.”

Balke said some parts will be localized with area suppliers, particularly those parts that are specific to the U.S. market, but the bulk of its supplier base will likely remain in Europe.

“We will localize some of the components, but to be honest, we are not localizing too much because the Sprinter vans are not exclusively assembled here, and as long as the volume assembled in Europe is bigger than the volume assembled here, it makes more sense to ship the smaller portion of the parts to a different country,” Balke said.

The United States is Daimler’s secondlargest market for vans worldwide, behind Germany. The company sold around 26,000 of its Sprinter vans in the U.S. in 2014,

www.scbizmag.com

Why did Mercedes-Benz Vans choose to expand in South Carolina?

20

A decade of experience running a successful operation in the Lowcountry — coupled with the desire to simplify its supply chain and capture more of the North American market — prompted MercedesBenz Vans to expand in Ladson, division CEO Michael Balke said.

Close relationships with Gov. Nikki Haley, the S.C. Commerce Department, Charleston County and North Charleston also played a big role in their decision to build more facilities in the Charleston region.

“This is a very good place to do business. Whenever we face problems, we have partners to talk to that support our business. It’s a good atmosphere,” Balke

said. “We have also seen employees be successful in meeting targets in terms of quality and delivery. We are feeling very confident about expanding our plant here rather than somewhere else where we don’t have that experience.”

When the company decided to open a plant in the region in 2005, proximity to the Port of Charleston was also crucial.

Containers that hold the disassembled Mercedes vans travel on cargo ships from Europe into the Port of Charleston, and then in trucks for about 25 miles to the company’s Ladson facility to be reassembled.

Balke said the less time the vans spend traveling, the better. Each van has to be

inspected repeatedly for any damage or scratches that might have occurred en route.

“Even though the vans were assembled in Germany and Spain and they were checked before and then again, our brand is known for quality, and we want to ensure the car reaches the customer with perfect quality,” Balke said. “So we inspect again and again to ensure whether anything has been damaged during transportation or reassembly.”

With expansion plans underway, Balke said being close to the port remains vital for the company to receive materials and parts quickly, export finished vehicles and keep up with production rates.

TRENDING: AUTOMOTIVE IN S.C.

up 30% from 2013. The new Charleston plant is part of Daimler’s plan to expand Mercedes-Benz Vans’ production globally, company officials have said.

Bringing the Sprinter van production stateside will make the Ladson plant more flexible to meet U.S. customers’ specific demands, as well as shorten the time to get product to market, Balke said.

“The American market is a very important market for us. We have seen in the past very stable growth, not only for short period, but on a long-term basis. We had double digit growth during our operations last year and a very successful first quarter,” Balke said. “We are sure that the market will also grow in the future and this is the reason we want to be part of it.”

The 200-acre manufacturing campus will include:

Source: Company permit filed with the U.S. Army Corps of Engineers, Charleston District

www.scbizmag.com

• An assembly, logistics and production facility; a body shop; and a multilevel paint shop building.

• A storage facility — dubbed the “Karoloa building” — to house painted vans because painting is expected to outpace final assembly.

• Vehicle storage areas that could accommodate up to 33 finished vehicles before they are moved to the marshaling yard. The marshaling yard will have 2,700 stalls for finished vans, representing 10 days’ worth of production at projected volume once the expansion is fully complete.

• A power substation and energy center that will provide power to the production facilities, particularly for assembly robotics and water treatment.

• A trailers and empties yard where incoming materials are deposited to begin production and emptied trailers are stored. The yard is expected to handle about 155 containers delivered each day once the facility reaches full production. It will store at least 123 empties at any given time.

• Parking spaces for 2,205 employees.

• Administrative areas.

21

100 www.scbizmag.com

As B MW celeb

rates auto manu its 100 th y ear, w factu rer’s e tak impa e a lo ct in o its 22 k at the years in So uth

22

BMW X5 M and BMW X6 M. (Photo/BMW Manufacturing Co.)

Caro

lina.

By Matthew Clark, Editor, GSA Business Report

I

n the early 1990s, the BMW Group was looking for a place to expand. It had recently found success in South Africa with its Rosslyn plant as well as its facilities in Dingolfing (Germany), Steyr (Austria), Regensburg (Germany) and Eisenach (Germany), and it was looking for additional expansion capability.

Enter South Carolina.

On Sept. 8, 1994, the BMW Group started production at its first North American production facility, located in the Upstate of South Carolina. It has now grown into the largest auto manufacturing facility in the BMW Group chain, recently closing on $9.8 billion in exports in 2015.

BMW Manufacturing Co. President

Manfred Erlacher said in an interview that even though there were only “about 60,000” BMWs sold in North America, the company recognized “a lot of possibilities” with the location of a plant in Spartanburg County.

“There was a highly-skilled workforce around and we recognized there is a really pro-business attitude in South Carolina,” Erlacher said. “The infrastructure with the highways and the port and Charlotte gave us really good possibilities to expand in the future.”

Fast-forward more than 20 years later and the BMW Group is in the midst of completing a $1 billion expansion to the Upstate facility that will further increase vehicle production from its current 400,000

TRENDING: AUTOMOTIVE IN S.C.

BMW Manufacturing CEO: ‘It has all worked out for us’ vehicles per year to approximately 450,000.

Erlacher said construction is expected to be complete in 2017 and the facility will be ready to welcome the new X7 model to add to the X series lineup exclusively produced in South Carolina.

“I think no one dreamed that it would be possible,” Erlacher said. “We recognize that we are still growing and we will increase our employment by an additional 800 jobs by the end of this year.”

Erlacher has been with the BMW Group for more than 30 years. He was appointed BMW Manufacturing Co. president in November 2013. He succeeded Josef Kerscher, who returned to Germany to head operations at the group’s Dingolfing plant in Bavaria.

Prior to joining BMW Manufacturing, Erlacher was head of the group’s Leipzig, Germany, plant and led the plant through expansion to produce the See BMW Page 26

www.scbizmag.com

23

ADVERTISEMENT

TRENDING: AUTOMOTIVE IN S.C. Manfred Erlacher, president of BMW Manufacturing Co. (center) observes work being done on the production floor of the company’s plant located in Spartaburg County. (Photos/BMW Manufacturing Co.)

BMW continued from Page 23 BMW i3 and i8. Over his career at BMW, Erlacher also led assembly and body shop operations at the Munich plant before being named the managing director of the plant.

In the two full years since Erlacher was named head of BMW Manufacturing Co., the facility has begun production of the second generation X6 coupe, has undergone the $1 billion expansion (the fifth expansion of the plant since its opening), announced

the future production of the X7 and has generated more than $16 billion in annual economic impact to the state.

On top of all of that, Gov. Nikki Haley told a group of auto suppliers at the recent S.C. Auto Summit that it was BMW that helped attract other companies such as Daimler and Volvo to the state. Erlacher said the company believes it is all about being a good resident.

“We want to be a part of the community where we live,” Erlacher said. “In South Car-

BMW Group Upstate plant manufacturing statistics

www.scbizmag.com

• Following the 2012 expansion, the plant is now over 5 million square feet under roof.

• Opened for production: July 11, 1994.

• First vehicle produced: White 318i, Sept. 8, 1994.

• Average daily output: About 1,400 vehicles.

26

• Total production since 1994: 3,500,000 vehicles (through May 19, 2016).

• Number of jobs: 8,000.

• North American Suppliers: 270.

• South Carolina Suppliers: 40.

Source: BMW Manufacturing Co.

A worker inspects the door of a BMW coming through the production line at the company’s plant in Spartanburg.

olina, there are very friendly and supportive people and we want to be a part of that.

“The attitude of the government, the Department of Commerce, the Ports Authority and the colleges has been great and we want to give back a little bit. We think this is a game changer to show what is possible here in South Carolina.”

Heading into a future filled with talk of new technology, Erlacher said the Upstate plant will remain focused on helping to implement things like alternative power

TRENDING: AUTOMOTIVE IN S.C.

engines, hybrids and increased connectivity to the internet. Autonomous driving will also be in the mix and Erlacher said “it will be a challenge to innovate those changes in our plant.”

“We have to make sure all these things work properly,” Erlacher said. “In the next 10 years, we have to have the right qualifications here, and we want to really have perfect products for our customers.”

For the immediate future, he said, demand for the cars being produced continues to increase – global sales of the X models have trended up over the last six months according to the BMW Group – and the associates at Plant Spartanburg “are doing a really good job to get out that volume.” The company does not expect to see that trend slow down as recent sales forecasts by the company are for more sales records to fall in 2016.

Erlacher said the company still believes locating its first North American plant in the Upstate was the best decision for the BMW Group.

“Now, more than 20 years later, we can say ‘yes, it was all that we predicted’ and all of this has worked out perfectly with positive results,” Erlacher said. “It was the best to come to the Spartanburg area.”

On the floor at the BMW Group Upstate plant

Source: BMW Manufacturing Co.

www.scbizmag.com

• BMW Manufacturing Co. was the first manufacturer in the U.S. to use waterborne color matched primer.

• More than 36 feet of MIG Weld are used on the X5 body to create more rigidity.

• The Body Shop is 100% automated.

• Positions on the line are rotated to reduce repetition, as well as being used for cross-training.

• Paperwork verifying the correct collaboration and installment of parts travels with the vehicle throughout the line.

• Ten bolts are used to mount the engine to the engine compartment. Total time is about 3 minutes for the engine marriage process.

27

TRENDING: AUTOMOTIVE IN S.C.

What is produced by BMW in the Upstate?

By Matthew Clark, Editor, GSA Business Report

T

he BMW Manufacturing Co. facility in Greer has been producing vehicles since September 1994 when the first BMW 318i rolled off the production line.

In May 1998 the production facility changed when the BMW Group announced a $600 million, 1 million-square-foot expansion to the Upstate facility in order to start production of the new X5. That started to mold

what the plant does today – to be the global producer of most of the BMW X models.

Norbert Reithofer, then-BMW Group chairman, told a crowd at the State House in Columbia “it’s a mature facility with a mature workforce ready to take on larger and more complex tasks” when he announced the expansion.

Since its first 318i came off the production line, BMW Manufacturing’s Upstate fa-

cility has produced over 3.3 million vehicles.

Today, the Upstate facility produces the X3 sports activity vehicle, X4 sports activity coupe, X5 sports activity vehicle, X5 M sports activity vehicle, X6 sports activity coupe, X6 M sports activity vehicle and, coming soon, the new BMW X7.

Here is a look at the different vehicles produced today by the nearly 8,000 employees at the Upstate factory:

X5 X3

The X3 was first introduced in 2003 and was BMW’s first foray into the sport vehicle genre.

In over a decade, there have been more than 1 million X3 vehicles coming off the production line in the Upstate. The second generation of the X3 was introduced in 2010. The BMW X3 featured a new kind of permanent power transmission to all four wheels – BMW xDrive. The first generation of the X3 sold nearly 600,000 models before being replaced with the second generation.

The Upstate plant started production of the second generation X5 model in 2006. Now BMW offers several variants of its X5 model including the xDrive50i, xDrive30d, xDrive35d, xDrive40e, M50d and the X5 M. At its launch, the X5 had three different types of engines available: • 330 kW/450 hp V8 for the BMW X5 xDrive50i; • 190 kW/258 hp six-cylinder in-line diesel for the BMW X5 xDrive30d; • 280 kW/381 hp six-cylinder in-line diesel with M Performance three-stage turbocharging for the BMW X5 M50d.

BMW added the xDrive40e and its 230 kW/313 hp four-cylinder engine. In 2008, the xDrive35d entered the North American market from the South Carolina plant. It included a 3.0 liter, inline six-cylinder engine with 265 horsepower and an ability to go 585 miles on a single tank of gas.

www.scbizmag.com

X6

28

X4

The BMW X4 launched in 2014 in a coupe model – different from its other X model cousins. The X4 is offered with six different engine variants and also has the same xDrive transmission as the X3. BMW Group has reported selling 250,000 of the X4 units since production began.

In 2008, BMW launched the first sports activity coupe in the X6. The next year, the company introduced the ActiveHybrid X6 which was powered by an eight-cylinder petrol engine and two electric motors and transferred via the four-wheel drive system BMW xDrive to the front and rear axles. It has a system output of 357 kW/485 hp. Also in 2009, the X6 M was developed with its 4.4-liter V8 engine and an 8-speed Steptronic transmission.

However, BMW rolled out one more X5 model in the X5 M which includes a newly-developed 4.4 liter V8 M engine that delivers a reported 575 hp at 6,000 to 6,500 rpm. In 2005, the Upstate plant rolled off the 500,000th first generation X5. In just a few years after starting second generation production, sales of the X5 grew to nearly 800,000.

The fast-growing fields of virtual and augmented reality are creating

G

liding soundlessly through the water, the great white shark sneaked up on the submerged cage. It rattled the bars with a streamlined snout studded with sharp teeth.

The cage’s occupant swallowed a scream.

All appearances to the contrary, the shark wasn’t real.

The threatening shark, as well as the ocean that surrounded it, were part of an immersive virtual reality experience at the Southeastern Institute of Manufacturing and Technology in Florence. A wearer of a Samsung Gear VR headset, powered by Oculus and responding to programming in a smartphone fitted into the visor’s faceplate, could almost reach out and touch the fish flitting by before the shark’s sudden arrival.

A bit of fun with obvious implications for the video gaming and entertainment industries, the virtual and augmented reality technologies being developed at places such as the Southeastern Institute of Manufacturing and Technology (SiMT) are also changing the way companies of all stripes do business.

At a computer station in SiMT’s interactive digital showroom, a pair of holographic 3D glasses and a stylus allow the examination and dissection of machine parts. At the click of a button, any of the 123 parts of an on-screen rail car that weighs around 12,000 pounds in physical reality can be pulled apart, rotated, examined and returned to their original position.

30

Building Information Modeling offered by Choate Construction helps the customer ‘see’ the actual structure before it is built. This can avoid costly mistakes and corrections later. (Photo/Choate Construction)

“This is a great way to be able to start figuring things out quicker,” said David McBride, assistant director of SiMT, which opened in 2008.

SiMT, a research and training arm of Florence-Darlington Technical College, designs custom apps using the zSpace 3D technology for businesses ranging from manufacturers wanting to train new employees quickly to nursing programs attracted to simplified simulations of human anatomy.

Such technology is reshaping how busi-

nesses in automotive manufacturing, plant construction and many other areas function across South Carolina.

At Greenville-based VRWorks Plus, clients can see architectural files transformed into virtual reality within an hour.

“We had one client who was looking at their property for the first time in virtual reality, and they immediately called their architect to come over and see it because they saw that they needed to make changes to the floor plan,” said solutions consultant Melanie Hill. “You can catch things that you

new possibilities for businesses and consumers. might not catch until it’s too late.”

Similarly, Choate Construction Co., which has offices in Charleston, uses a Building Information Modeling process to allow clients, including automobile makers and dealerships, to virtually walk through a detailed design. Superintendents and subcontractors communicate easily and often, while the visible progress of a project helps keep it on schedule.

“You can put your client inside of that environment,” said Todd Barrett, Choate director of virtual construction. “Is everything laid out how they expected? How does it flow? They’re seeing the layout of the facility, equipment, where things are placed.

It’s a lot different than looking at a picture.”

Field work can be coordinated with construction models, Barrett said, saving the expense and time of corrections later in the process.

Hill of VRWorks Plus said virtual reality also allows greater creativity in design.

“You can get your really crazy, far-out ideas and visualize them and then work on them until it’s something functional,” she said. “Without having the virtual prototyping, you might not be able to go through that imagination process.”

By Melinda Waldrop, Staff Writer

The modeling process can allow a client to virtually walk through a detailed design.

(Photo/Choate Construction)

the institute offers to clients.

At a second, newer 3D station, objects can be lifted from the screen as a camera tracks on-screen movements.

“This is augmented reality,” assistant director McBride said. “Not only are you moving it on the computer screen, but you’re moving it in 3D space.”

The interactive digital showroom

features a large, simulated movie screen.

It displays a spiced-up virtual tour of local pharmaceutical company Roche Carolina, which wanted something more inviting than a standard learning management system. Each door of the virtual theater opens to reveal a different aspect. New employees begin with an introduction module and “level up” to other doors, such as the warehouse.

A world of possibilities Imagination is on full display at SiMT, where students train in the additive manufacturing and rapid prototyping, advanced machining and advanced design engineering

31

TRENDING: AUTOMOTIVE IN S.C. www.scbizmag.com

David McBride of SiMT, above. At top right, the 3D model of a skull used to practice surgery.

At bottom right, the manufacturing training room at SiMT, middle right. (Photos/Melinda Waldrop)

32

Though impressive, the simulation is not totally immersive. A viewer can look away from the screen and be separated from the CAVE – computer-assisted virtual environment. The CAVE also costs $750,000, while the visor the shark lives in can be snatched up for $99.

“We’re moving away from large displays and going to the visor technology,” McBride said. “This Christmas, children are going to be asking for visors.”

The next wave in visor VR is represented by the Oculus Rift, a headset capable of creating a more immersive experience.

Purchased by Facebook for $2 billion, Oculus VR is poised to become even more of a game-changer.

“Imagine being able to watch Netflix on a 40-foot movie screen,” McBride said.

“The NBA is streaming live games. They’re taking a special 360-degree camera, putting it courtside, and now you have the best seats in the house. ... Imagine being able to turn your head, and there’s your friend right next to you (who) is actually 1,000 miles away. You’re able to communicate that way. Talk about taking teleconferences to a whole new level.”

Zach Inks, a virtual reality developer and a doctoral student in human-centered computing at Clemson University, sees many business training applications for such virtual reality advancements.

“Years ago, I drove a forklift at the GE plant in Greenville,” he said. “I had handson training, but that training didn’t allow me to do things like flip the machine over or run it into a wall. I can’t experience levels of use and failure that I would learn from, because it’s cost-prohibitive and dangerous. In the virtual world, you could definitely do training like that, and have it look and feel fairly close to real.”

Hands-on technology At SiMT, technology is also quite tangible. In an expansive work area, an array of 3D printers turns various powders into just about any object imaginable.

Computer-assisted design drawings are etched in layers of powder, then heated and fixed into place with ultraviolet lasers, providing less expensive prototypes that use less resources and take less time than a larger-scale pre-production process would consume.

Holding a small replica of a human skull in his hand, McBride pointed out a shrapnel wound. The wound damaged the eyesight of a soldier and left him facing a long road to recovery – until his medical team learned about 3D printing. The surgical team covered a one-to-one replica of the soldier’s skull with a titanium mesh and performed the necessary repairs preoperation, reducing what could have been

“Imagine being able to turn your head, and there’s your friend right next to you (who) is actually 1,000 miles away. You’re able to communicate that way. Talk about taking teleconferences to a whole new level.”

David McBride

assistant director, SiMT

an eight-hour surgery to two hours.

“You’re giving the surgeons a chance to rehearse,” McBride said.

Other, less life-changing applications of 3D printing are equally important to clients, such as an air duct SiMT makes for the Stewart-Hass racing team. Different conditions and tracks require constant modification, and 3D printing can make those changes on a low-production scale.

“It’s not going on a thousand race cars.

It’s going on four race cars,” McBride said.

TRENDING: AUTOMOTIVE IN S.C.

Augmented reality stations at SiMT allow users to practice manipulating parts and assembling products. (Photo/Melinda Waldrop)

“It’s cost-effective to be able to do it. It’s great for them, and it works great for us.”

Putting technology into practice

www.scbizmag.com

Companies learn this symbiosis and other key principles next door at SiMT’s business incubator. Catering to start-ups or businesses without substantial resources, the incubator rents office and manufacturing space to companies who also have access to all of SiMT’s technological toys.

Twenty-two companies, representing industries from finance to cybersecurity, work out of the incubator, which also rents its Makerspace room, featuring 11 small CubePro Trio 3D printers, to anyone in the community, including high school classes.

“They’re already talking about 3D printing food and furniture, houses and cars,” incubator manager Ashley Dingle said.

“We’re bringing that technology to the students and to the people in this area.”

The future of VR and AR also features many varied visions.

VRWorks Plus is developing interaction where clients use their hands to manipulate designs instead of a keyboard or a mouse, Hill said, while Inks of Clemson foresees an expansion of the augmented reality already prevalent. It’s a relatively short leap from shooting video on a smartphone to dialing up immersive surround video, he said.

McBride envisions augmented reality eventually accessible through glasses and contact lenses.

“Imagine one day not needing your cell phone, or you would just have a very small device that interfaces with the cloud,” he said.

“The technology is already shrinking.”

33

34

www.scbizmag.com

TRENDING: AUTOMOTIVE IN S.C.

TRENDING: AUTOMOTIVE IN S.C.

Columbia’s Bull Street project begins to shine

By Melinda Waldrop and Chuck Crumbo | Photography by Jeff Blake

www.scbizmag.com

35

BULL STREET Fans sit on the berm to watch the Columbia Fireflies home opener at Spirit Communications Park.

www.scbizmag.com

I

36

n his 37 years as a baseball scout, Rick Arnold has seen a lot of things.

He added another experience to that lengthy list, settling into his seat at Spirit Communications Park two hours before the Columbia Fireflies’ first pitch of their inaugural home opener.

“It’s beautiful, it truly is,” Arnold said, entering players’ names and tools onto his iPad as he glanced around at the $37 million stadium. “Once you get inside, it’s great. Outside, there’s still a lot of work to do.”

Arnold was among some 9,000 people who filed through the gates to see the Fireflies take on the Greenville Drive in the April 14 debut of Spirit Park, centerpiece of the Commons at BullStreet, an urban mixeduse community in Columbia that’s been more than a decade in the making.

In May 2005, the S.C. Department of Mental Health announced that it was selling the 165-acre tract, bordered roughly by Calhoun, Bull and Harden streets, and Colonial Drive, at the edge of downtown Columbia. Five

years later master developer Bob Hughes, of Greenville-based Hughes Development Co., put a contract on the property. It took an-

Mason the Firefly is the mascot of the Columbia minor league team.

Columbia Fireflies pitcher PJ Conlon pitches in the first inning.

other four years to get the city to greenlight his plans.

Groundbreaking for the $37 million ballpark took place in January 2015 and construction of the four-story, 85,000-squarefoot First Base Building next to it began weeks later. The office building’s first tenants – 35 lawyers, paralegals, and support staff of the Ogletree Deakins law firm – began moving into their fourthfloor offices in late April.

“People were so excited,” said Kathy Dudley Helms, managing shareholder of Ogletree Deakins’ Columbia office. “This had the wow factor. It was new, and it was a neat opportunity.”

Although there’s a projected 20-year buildout for Bull Street, developers said 54% of the land – 89 acres – already is “either under development or under contract.”

Plans have been submitted for a student housing complex between Gregg and Barnwell streets at Calhoun Street by Atlanta developer Haven Campus Communities.

In addition, there are plans to build 275 to 300 market-rate family apartment units, a 150-room boutique hotel, a movie theater and 50,000 square feet of office space – all to be built above 85 storefronts ranging from retail shops to restaurants.

Altogether, the plans represent about $500 million in private and public investment, developers said. When completed, the Bull Street project is expected to

The historic Babcock Building, a part of S.C. State Hospital. (Photo/S.C. Dept. of Mental Health)

Bull Street comes full circle When the Bull Street hospital was founded in the 1820s as the S.C. Lunatic Asylum, it was a forward-thinking facility. Before that, mentally ill people received grossly inadequate care. Two legislators, Col. Samuel Farrow and Maj. William Crafts, convinced fellow lawmakers in 1821 to pass a measure funding construction of the asylum.

Renowned architect Robert Mills was hired to design the S.C. Lunatic Asylum and the cornerstone for the Mills Building was laid in 1822. It was one of the first in the nation built expressly for the mentally ill and funded by state government.

The first patient arrived late in 1828. A few black people, mostly slaves, were admitted in early years, but were not officially allowed until 1848.

As the patient census grew, the S.C. Lunatic Asylum suffered from shortage of funding. During the Civil War, problems grew worse. The grounds were used as a prison camp for Union officers for a few months in late 1864 and early 1865.

In 1896, the name was changed to the S.C. State Hospital for the Insane. As the hospital grew, it became self-sustaining with a bakery, farm, dairy and laundry. However, the community was always surrounded by a wall to keep the patients separated from the outside world.

In the first half of the 20th century, Dr. C. Fred Williams, hospital superintendent, realized the need for community mental health clinics.

The development of these clinics, as well as establishment of treatment hospitals around the state, led to the gradual phasing out of the centralized hospital.

In 2010, the property was sold to Hughes Development Corp. of Greenville.

Sources: S.C. Department of Mental Health, S.C. Humanities Council

www.scbizmag.com

represent an investment of about $1 billion.

The Commons will be a neighborhood where people can find something to do from morning to midnight, said Mike Cohn, regional president and co-founder of Lennar Commercial.

“It’s a live, work, play community that functions as a stand-alone, comprehensive mixed-use development,” Cohn said. “But more importantly, we view it as a growing part of this much greater place.”

Another part of the ongoing Bull Street project is the restoration of three historic buildings – the Parker Annex, the Bakery and the Ensor Building.

When Will Batson first saw the Parker Annex, he thought he was looking at part of a ghost town.

“The building was very dark and there was no electricity,” said Batson, chief development officer at Diversified Development, which began renovating the historic building after buying it last October. “A lot of the roof was caved in, and there were homeless living in the facility.”

Five and a half months later, the 9,300-square-foot building on the southeast corner of the state hospital grounds has been transformed into a bright, modern space ready for business.

The Parker Annex was built in 1919 to relieve overcrowding of male African American patients at the state hospital.

“In the early 1900s, mental health was

BULL STREET

The game ball is delivered by a skydiver.

not where it is today,” said Batson, whose company will occupy the second floor of the structure at Barnwell and Calhoun streets and lease 4,000 square feet on the lower level to yet-to-be-determined tenants. “We took a building that has a lot of stigma about it and we’re trying to make a fun place to work. To take a building that had an isolation ward and to bring it full circle 100 years later is pretty cool.”

Diversified Development partnered with Studio 2LR Architects and Hood Construction on the project and received input from the Historic Columbia Foundation. Batson credited engineers Davis & Floyd Inc. and paving contractor C.R. Jackson Inc. with keeping the renovations on track despite last October’s floods.

“That entire campus is really unique in Columbia and in the region for the story that it tells about mental health in Columbia, but also it’s a great snapshot of our architectural history,” said Robin Waites, executive director of Historic Columbia.

“Retaining those places that enable you to tell a unique story makes places like the Bull Street campus special and will set it apart from totally new developments where you don’t have that sense of place.”

To Columbia Mayor Steve Benjamin, the Bull Street project is more than just bricks and mortar. It’s about the city’s ability to attract talent and new companies by leveraging its strength as a livable community.

“We’ll see in the new few years where livability will take us off the map,” Benjamin said.

“It will be exciting. We’re going to continue to use that for a very good, honest tool for driving development here.”

Livability already is one of Columbia’s strengths, according to EngenuitySC’s recent Regional Competitiveness Report.

Columbia ranked No. 5 among 10 peer communities for livability, due in part to its cost of living, which is below the national average, as well as the growth in arts, entertainment and recreation.

“If we are able to retain talent, then we are able to attract more of the industry that we want,” Benjamin said. “And if we are able to attract more industry, then we get a chance to reinvest. It’s the way capital is supposed to work.”

37

S.C. MANUFACTURING CONFERENCE AND EXPO Employees of T&S Brass and Bronze Works celebrate their Silver Crescent Award at the S.C. Manufacturing Conference and Expo in Greenville. (Photos/Kathy Allen)

Salute to Manufacturing honors five companies

By Matthew Clark , Editor, GSA Business Report

T

ravelers Rest-based T&S Brass and Bronze Works was honored with the Silver Crescent Award at the recent S.C. Manufacturing Conference and Expo at the TD Convention Center in Greenville.

The business, founded in 1947 by George Theisen, is a manufacturer of faucets, fittings and specialty products for the food service, industrial and commercial plumbing markets, as well as for laboratories. Among

their products are touchless faucets for the food service industry.

“I am extremely proud of our company, and I feel we are a world class manufacturing company,” said Claude Theisen, owner of T&S Brass and Bronze.

The Silver Crescent Award is presented to select manufacturing companies that meet a comprehensive set of criteria, during the Salute to Manufacturing award luncheon, part of

the S.C. Manufacturing Conference and Expo presented by SC Biz News, with Dixon Hughes Goodman and the S.C. Chamber of Commerce.

The company was recognized for its efforts in the Travelers Rest area, including bringing a YMCA to northern Greenville County. The George I. Theisen North Greenville YMCA was established after fundraising efforts and a donation from the company.

Other award winners from the annual Salute to Manufacturing awards luncheon included:

www.scbizmag.com

Volvo Car Group, winner of

38

the United Community Bank Smart Choice SC award for a major economic development announcement.

In May 2015, Volvo Cars announced it had chosen Berkeley County as the location for its first manufacturing facility in North America.

Carolina Poly Inc., winner of the United Community Bank Smart Choice SC award for community impact. Carolina Poly Inc., formed

by Grand Prairie, Texas-based PolyAmerica, is investing $100 million in a new facility and adding 300 jobs in Chester. The parent company is one of the largest polyethylene film manufacturers in the U.S.

Sandvik Coromant earned an Excellence in Manufacturing Award.

Sandvik, located in Westminster, is a world supplier of tools, tooling solutions and know-how in the metalworking industry.

Mahle Behr Charleston qualified for an Excellence in Manufacturing Award. Mahle Behr offers engine systems, filtration and thermal management products for automotive companies like BMW, Volvo and Daimler Trucks.

S.C. DELIVERS

Ports, Logistics & Distribution

Photo/File

TRUCKING EMPLOYMENT OFFERS OPPORTUNITY BUT HAS IMAGE PROBLEM, INDUSTRY GROUP SAYS

www.scbizmag.com

By Bill Poovey , Staff Writer

40

W

ith business growth accelerating demand for freight services, trucking companies are struggling to keep up. Entry-level jobs are paying $50,000 or more a year, but empty drivers’ seats have the companies

turning away customers.

See TRUCKING, Page 42

S.C. DELIVERS Trucks pass through Columbia on Interstate 26. (Photo/Jeff Blake)

www.scbizmag.com

TRUCKING continued from, Page 40

42

“We as an industry are seeing daily needs for drivers that we don’t have,” said Rusty Davis, Southeast region operations vice president for Superior Carriers in Greer. He said the need for truck drivers will “continue to grow.”

The industry’s top advocate in the state, S.C. Trucking Association President and CEO Rick Todd, said the profession has an image problem despite lucrative pay and work schedules that in many cases allow

drivers to spend their nights at home. Todd said that commercial driving is hard work with long hours but that the bigger problem is recruiting young drivers.

“Parents seem to have this obsession with sending their kids to a four-year college” Todd said. He said the mindset that truckers are always on the road and the work is dirty is an outdated one. The lament is similar to that of manufacturers — that a traditional image of the industry deters qualified job prospects.

“That is a huge issue,” Todd said. “Every-

where I go, from industry to construction, they are very concerned about the lack of enough truck drivers. That will hold back growth more than anything. When you talk about ‘How is business?’ and ‘What can make it better?’ it is the ability to hire more drivers, by far.”

Davis agreed that the driving profession has an image problem and said he is seeing young applicants who are more familyoriented. He said many trucking companies “have evolved to a point where we recognize the need of the driver and try to do things that make it more attractive.”

Davis said Superior is a national carrier and has about 35 to 39 drivers in Greer.

“We could easily, out of Greer, run 45-plus drivers,” Davis said. He said if a call comes for service and no driver is available, “We just turn down the opportunity. Once we are booked for that day we just turn that down.”

He said manufacturing growth in the Upstate has had an even bigger impact on boosting demand for truck services and providing more job opportunities that are “out-and-back loads for drivers.”

“In our area, we have the BMWs and things coming off the port in Charleston and the Savannah market,” Davis said. “All those things are turnable in a day’s shift.

Where before we didn’t have the BMWs and the manufacturers that have the support group around here within a shift’s turn.

“I think the industry has not changed as much as the manufacturing suppliers’ availability.”

At Greenville Technical College, trucking students finishing the nine-week commercial driver’s license course are typically hired by companies that require up to eight weeks of on-the-job training. Greenville Tech truck driver training instructor Todd Lantz said he always has a waiting list for upcoming classes.

Department of Transportation regulations have put new limits on numbers of students per instructor while training in a truck. Lantz said his day class has 20 enrolled and the night class has 15. He said the day class runs 8 a.m. to 5 p.m., Monday through Thursday. The first two weeks are in a classroom.

“That way they get prepped to go to

are going to get trained by employers as newly licensed drivers. He said they typically are paid $500 to $600 a week during training and “once they finish their training with that company the earning potential in that first year should be over $50,000.”

Lantz said “whether it be a local or over the road, drivers can make more money.” He said a company that hires Greenville Tech graduates “told us the earning potential and being home every night is $52,000 to $55,000 a year.”

Earning a license to drive a big rig is a “little harder” than getting an automobile license, Lantz said. He said the commercial test includes a pretrip inspection, a skills test and road test and “takes about three hours at the

DMV. Once they are done with that they have a certificate, and they have their license.”

S.C. Department of Motor Vehicle records for 2015 show there are 45,935 heavy trucks, those weighing more than 26,000 pounds, on the road compared with 42,843 in 2012.

“We have had some growth,” Todd said.

“Certainly the vehicle fleet is about back to where it was prerecession. Some companies are larger now. You are going to have a large number, probably a disproportionate number, in the Upstate just because of the manufacturing presence. There is a lot in Charleston.” Todd said trucking company operators “will all tell you that lack of qualified drivers is holding them back.”

S.C. DELIVERS

the DMV to get their permit, and then the last seven weeks is in the trucks and on the backing range,” Lantz said. With an earned certificate after nine weeks “we set them up at the DMV. They have three opportunities at the DMV to get their license.”

Lantz said there are about 150 graduates in a year, a number limited by the federal training rules.

Graduates who are younger than 21 drive inside the state only, he said.

“You have to be 21 to drive interstate,” Lantz said. “Companies typically aren’t going to hire someone under the age of 21, number one, because typically they go out of state.”

Lantz said students who earn certificates

www.scbizmag.com

43

S.C. DELIVERS An affiliate of Lowe Enterprises, a California real estate development firm with ties to the Lowcountry, plans to buy the S.C. Ports Authority’s site on Charleston Harbor. (Photo/Liz Segrist)

Port

By Liz Segrist, Staff Writer

California firm contracts to buy port’s downtown property

www.scbizmag.com

T 44

he S.C. State Ports Authority is moving forward with a bid on its longtime headquarters building in downtown Charleston.

After a closed-door session in April, the ports authority board voted unanimously in open session to authorize staff to go ahead. The bidder, an affiliate of Los Angeles-based Lowe Enterprises, plans to buy the entire 1.74-acre site, which includes the port’s office building at 176 Concord St. and Fleet Landing Restaurant & Bar at 186 Concord St. The offer amount was not disclosed.

The port’s Real Estate Development Commission, headed by former board chairman Bill Stern, had recommended that the board accept the current offer.

The bidder put down a $1 million deposit and has a 120-day period for due diligence to investigate the property. Dur-

ing that time, the bidder can retract the bid or move forward. The deposit becomes nonrefundable after the inspection period.

After due diligence, the buyer must close within 30 days, which would make the sale final by October.

No details have been released about the buyer’s plans for the site.

The sale also requires approval from the S.C. Department of Administration.

The port announced plans to sell the downtown site in January and relocate office operations to Mount Pleasant. The maritime agency has operated out of the 36,000-square-foot brick building along the waterfront since the 1970s.

The port has requested that the buyer lease the site back to the authority for 24 months while a new headquarters is found.

Ports Authority President and CEO Jim Newsome said he does not want employees

to have to move twice — into a temporary location and then to a new, permanent office.

The port has looked to relocate office operations from the peninsula to Mount Pleasant for years.

Newsome said it is important for the port’s future to be near container operations and to consolidate all office and administration operations into one building.

The port plans to build an office near the Wando Welch Terminal in Mount Pleasant on land it already owns. No details are available yet about how large the facility will be or how much it will cost.

The money from the sale will be used to pay for the new building. Newsome said he hopes to have additional money left over to invest in other port infrastructure projects.

Staff Report

Port

T

he S.C. Department of Transportation has selected Fluor-Lane South Carolina — a joint venture of Texasbased engineering firm Fluor Corp. and Connecticut highway contractor The Lane Construction Corp. — to design and build the new Port Access Road in North Charleston, according to a news release.

The road will connect Interstate 26 and the planned Hugh K. Leatherman Sr. Terminal, which is in the early stages of construction on the former Navy base. Phase one of the base is expected to open in 2019.

The project scope includes: • A new interchange on I-26.

• Construction of Bainbridge Connector Road.

• The extension of Stromboli Avenue.

• Improvements to surrounding roadways to integrate container terminal traffic with existing traffic.

S.C. DELIVERS

Contractor selected to build new Port Access Road “We understand the economic importance of commerce and statewide impact the Port of Charleston has on this region.”

Hans Dekker

president, Fluor’s infrastructure business

According to a memorandum from the S.C. DOT, the total cost of the project is estimated at $220.7 million. Fluor plans to book its share of the contract value in the second quarter, according to the news release.

“We understand the economic importance of commerce and statewide impact the Port of Charleston has on this region,” Hans Dekker, president of Fluor’s infrastructure business, said in the release. “We believe our local team is uniquely qualified to deliver this design-build project on time

and on budget by providing capital efficiency and integrated solutions to support the vitality of the fastest growing major container port in the U.S.” To win the contract, Fluor beat out a joint venture between Traylor Bros. Inc. and United Infrastructure Group Inc., which bid $235.8 million; and another joint venture between Skanska USA Civil Southeast Inc. and PCL Civil Constructors Inc., which bid $297.8 million, according to the DOT memo.

www.scbizmag.com

45

S.C. DELIVERS

Distribution

Staff Report

Husqvarna planning distribution center in Orangeburg

H

usqvarna Consumer Outdoor Products N.A. Inc., which manufactures outdoor power products, is planning to build a 513,000-square-foot main distribution center on its Orangeburg manufacturing campus as part of a $29.8 investment at the facility.

The building, which will serve warehousing, staging and storage functions and will use automation to transfer finished products from assembly lines, will be built on the campus at 172 Old Elloree Road. It is scheduled to be completed in December.

The investment also includes the purchase of an adjacent 134-acre site, bringing the Orangeburg site to more than 1.9 million square feet.

“We are very excited about the addition of the distribution center to our Orangeburg

Distribution

“It’s always important to have businesses expand their operations in our state, but it’s even more significant when it’s a globally recognized brand, like Husqvarna” Bobby Hitt

S.C. Commerce Secretary

operations and the operational efficiencies which will be realized on the integration of this new warehouse facility with the current manufacturing operations,” said company president Jeff Hohler.

Husqvarna North America is part of the Husqvarna Group, which makes outdoor power products including robotic lawn mowers, ride-on mowers and chainsaws.

The company has more than 14,000 employees in 43 countries worldwide.

In addition to its global headquarters in Stockholm, Husqvarna’s largest operations are located in Germany, China, Japan and South Carolina.

“It’s always important to have businesses expand their operations in our state, but it’s even more significant when it’s a globally recognized brand, like Husqvarna,” S.C. Commerce Secretary Bobby Hitt said.

“We’re proud to have one of the world’s premier manufacturers of outdoor power products operating and succeeding within our borders.”

Staff Report

Norfolk Southern launches rail service connecting Charleston, Charlotte

www.scbizmag.com

N 46

orfolk Southern now has rail service connecting Charleston and Charlotte five days a week, according to a news release.

The two-day service launched in March. It will connect the Port of Charleston and the Charlotte Regional Intermodal Facility using existing dedicated intermodal trains.

Containers will ride the overnight intermodal train between Charleston and Spartanburg and then connect to intermodal train service between Spartanburg and Charlotte.

S.C. State Ports Authority President and CEO Jim Newsome said in the release the new service “builds on the existing, high-speed intermodal network between Charleston and the South Carolina Inland Port in Greer.”

“Charlotte is most logically served via the Port of Charleston, and this link provides a very reliable rail option that has not previ-

Norfolk Southern has started rail service connecting Charleston and Charlotte. The service runs five days a week and uses intermodal trains. (Photo/S.C. State Ports Authority)

ously existed. The Charlotte market is fastgrowing and offers a very diverse containerized cargo base, including furniture, home

improvement goods, general department store merchandise and chemicals,” Newsome said in the release.

1,000 WORDS

www.scbizmag.com

When a new ballpark opens — and the team wins its first-ever home game — it’s time to celebrate. The Columbia Fireflies do just that, with fireworks over Spirit Communicatons Park in the capital city.

(Photo/Jeff Blake)

48