Charleston Regional Business Journal - March 23, 2015 by SC Biz News

March 23 - April 5, 2015 • www.charlestonbusiness.com

Volume 21, No. 7 • $2.00

North Charleston campus on MUSC’s horizon By Ashley Heffernan

I Conference preview

S.C. Manufacturing Conference and Expo set for next month. Inside

aheffernan@scbiznews.com

f the Medical University of South Carolina’s plans go according to schedule, a $40 million pediatric medical campus could open in North Charleston as early as summer 2017. A $350 million children’s hospital and

women’s pavilion in downtown Charleston could follow in 2019. Patients across the country increasingly want their health care options to be closer to where they live and are requesting more outpatient ambulatory services than ever before, according to Dr. Patrick Cawley, CEO and executive director of Medical University Hos-

EDUCATING THE PRINCIPAL

pital. To keep up with the changing health care landscape and because the hospital’s pediatric ambulatory clinics in Rutledge Tower in downtown Charleston need to be updated, MUSC is building a campus at the corner of See MUSC, Page 12

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Cell service cost increase creates static By Ashley Heffernan

ome cellphone carriers are fighting a bill in the S.C. Senate that Sen. Luke Rankin argues will level the playing field between landline and cellphone companies. Rankin, R-Conway, co-sponsored Bill 277, also known as the State Telecom Equity in Funding Act, in January along with Sens. Thomas Alexander and Brad Hutto. Currently, only landline customers pay a fee into the S.C. Universal Service Fund, which helps landline companies offset the cost of installation and maintenance of telephone lines in rural areas of the state. The new bill would add a similar fee for cellphone customers. Rankin, who also runs a law practice, said businesses are the primary customers for landline carriers and they’re paying a disproportionately higher fee because cellphone customers aren’t paying anything. “When the Universal Service Fund was created almost 20 years ago, the goal was for all citizens to have access to affordable service, and all who used the network would

787 support

Aerospace structural component supplier opens in North Charleston. Page 3

Turmoil at S.C. State

Orangeburg businesses worried about future. Page 10

INSIDE Upfront............................. 2 In Focus: Hospitality and Tourism.................. 15 List: Area Attractions... 20 At Work.......................... 23 People in the News......... 25 Business Digest.............. 26 Viewpoint........................ 27

aheffernan@scbiznews.com

Burke Middle High School Principal Maurice Cannon says he doesn’t know how to talk to his students about the manufacturing industry. That’s why he is building a relationship with DuPont manager Paul Patterson (right). Full story, page 6 Photo/Ashley Heffernan

See CELLPHONE, Page 8

MERCEDES-BENZ VANS PLANT EXPANSION

Rolling into town

Mercedes-Benz Vans brings automotive manufacturing operations to North Charleston along with 1,300 jobs. Page 14

200 ACRES

1,300 $500M jobs

initial investment

of land for a new body shop, paint shop and assembly line

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Upfront:

Briefs, brights and business news

On the Record “It is a great day in South Carolina and a damn wonderful day in North Charleston.” — North Charleston Mayor Keith Summey at the Mercedes-Benz Vans announcement

Business Journal repeats award for best newspaper pub in S.C. The Charleston Regional Business Journal and its compatriots across South Carolina came away with 20 awards from the S.C. Press Association in March, including a first place award for best newspaper in South Carolina and first place award for best electronic newsletter for the Daily Journal. That’s the second consecutive year the Charleston Regional Business Journal has won the top award for best newspaper in its respective category, and the entire haul is the most S.C. Business Publications has ever won during its short time as a member of the statewide trade group. The Business Journal received eight awards for writing, photography, design, online journalism and business reporting, including three first-place awards, during the S.C. Press Association’s recent meeting in Myrtle Beach. The production and custom publishing departments, which also are headquartered in Charleston, brought the total to 12 awards.

2015 Awards from S.C. Press Association FIRST PLACE • • • • • •

Best Newspaper Publication — Charleston Regional Business Journal Best Electronic Newsletter — Daily Journal Best Magazine or Specialty Publication — SCBIZ magazine Best Event Marketing — Jane Mattingly, Power Breakfast Series Best Graphic Design — Andrew Sprague, Lake Wylie Today Best Photograph — Ryan Wilcox

SECOND PLACE • • • •

Best Business Reporting — Ashley Heffernan Best News Reporting — Liz Segrist Best Graphic Design — Ryan Wilcox, SCBIZ magazine Best Editorial — Andy Owens

THIRD PLACE

• Best Electronic Newsletter — Beverly Barfield, Weekend! 10 Ways to Play • Best News Reporting — Ashley Heffernan

What would the real Sgt. Jasper think about his namesake high-density, multiuse development? So there’s a lot of hubbub over the future of the Sergeant Jasper apartment building on Broad Street. Enough dissatisfaction was expressed during a public hearing on the plans that The Beach Co. withdrew its proposal for the large-scale, multiuse development. We fully expect The Beach Co. to come back to the table on this piece of property that’s gotten up the hackles of a lot of South (and slightly North) of Broad folks, but when and how big is anyone’s guess. But it got us to thinking — who was this Sgt. Jasper guy anyway, and what would he think looking ahead 235 years after he died in the Revolutionary War? He’s got a statue in Savannah. He’s got a county in South Carolina. He even has Sgt. William Jasper raising a makeshift flagstaff an official state holiday, known as Carolina during a battle that inspired Carolina Day. (Photo/ Day, though that’s not totally his. Now he’s National Park Service) got a controversial multiuse development that’s causing his name to be uttered in not the most favorable conversation. Not everyone knows about South Carolina’s and the Lowcountry’s critical role in the American Revolution, but the story of William Jasper gives a small glimpse. A historical marker in Savannah reports that Jasper died near the city on Oct. 9, 1779, during a Revolutionary War battle. Jasper, ever the Palmetto Statesman, died trying to plant the flag of the 2nd Regiment of South Carolina Continentals on top of British embattlements. But in this state — Charleston in particular — he’s known for not dying during a defining battle with Gen. William Moultrie. Here’s how we paraphrase the story: During the Battle of Fort Sullivan on June 28, 1776, the S.C. crescent flag was shot down by the Brits. They hit the wooden flagstaff and snapped it in half. The flag fell. Jasper saw it happen and freaked out. He was like, “Gen. Moultrie, we gotta get the flag back up or our allies and even our enemies will think we’ve given up!” Moultrie was like, “Dude, they shot it down. Do you have a new flag pole? Because I don’t.” Jasper then probably replied, “Well, no, but I’m sure we can find one since you cut down all those Palmetto logs to make this fine fort we’re trying to defend.” So that’s what Jasper did. He found the shot-down flag, got something to stick it on and ran through a hail of British gunfire to plant that sucker back where it belonged, in the sand atop the fort, so everyone could see the resolve of South Carolina’s rebel forces. Everyone loved the act of symbolic heroism. Too bad when he tried to do a similar thing in Savannah, the British forces were having none of it and killed him. So what would Sgt. Jasper think of the Beach Co. being rebuffed by those residents who oppose the company’s plans for a namesake development? Who knows, but we’re 100% sure that if he saw a building that big, he’d definitely want to put a flag on top of it.

One Number

1,562,008

Number of people debarking airplanes at Charleston International Airport for all of 2014 based on data from the S.C. Department of Parks, Recreation and Tourism. That is a 7.8% increase from the previous year. For more tourism-related statistics, see a special report on Hospitality and Tourism starting on page 15.

Fort Moultrie monument in Charleston, also known as Sgt. Jasper Monument. (Photo/Brian Stansberry)

March 23 - April 5, 2015

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Washington aerospace supplier opens facility in North Charleston By Liz Segrist

lsegrist@scbiznews.com

Washington-based aerospace supplier has opened its North Charleston facility to assemble parts for the 787 Dreamliners made at Boeing South Carolina. Senior Aerospace AMT’s expansion from Washington state to South Carolina “moves parts closer to Boeing South Carolina rather than shipping them from Arlington, Wash.,” according to Dan Guzman, AMT South Carolina’s general manager. By being within seven miles of Boeing South Carolina’s campus off International Boulevard in North Charleston, AMT can provide just-in-time deliveries, Guzman said. AMT makes and assembles structural components for the 787 Dreamliner, though Guzman declined to say the exact parts AMT makes for the commercial jet. The components are currently machined and assembled in Washington state. Once AMT South Carolina is fully established, the components will continue to be machined in Washington and will be shipped to South Carolina, where they will be assembled and delivered to Boeing South Carolina. The local

Senior Aerospace AMT of Washington state opened a North Charleston facility to assemble parts for Boeing. (Photo/Dan Guzman)

Dreamliner campus produces the 787-8 and 787-9 and it will be the sole producer of the 787-10 starting in 2017. AMT South Carolina occupies about 39,000 square feet in the 273,000-squarefoot No. 4 building at Crosspoint, an industrial campus within Palmetto Commerce Park, according to Charleston Industrial broker in charge Mike White. AMT’s facility sits across the street from Boeing South Carolina’s propulsion and interiors centers. Guzman plans a six-phase ramp-up of the facility. By July, Guzman plans to have 24 employees and all of the component assembly work for South Carolina-made Dreamliners moved to the local site. See AMT, Page 13

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U.S. Commerce gives Trident Tech $2M toward aeronautical training center By Ashley Heffernan

aheffernan@scbiznews.com

rident Technical College will receive a $2 million grant from the U.S. Department of Commerce to help fund its proposed $79 million aeronautical training center. The department’s Economic Development Administration is providing the funding to help pay for infrastructure and site work, including road development and site clearing, according to a news release. “Supporting local economies and helping them grow their emerging industries is the core of EDA’s mission and work,” Jay Williams, assistant secretary of commerce for economic development, said in a statement. The investment “will help the Charleston region bolster its aerospace workforce to support its growing aerospace cluster, helping the region become more competitive on the global stage.” The 215,000-square-foot facility will have space for classrooms, laboratories and open bay areas to accommodate aircraft and large parts, as well as

shops, offices and administrative areas. A 100,000-square-foot aircraft ramp also will be included. The proposed center at Trident Tech’s campus in North Charleston is expected to provide training in aircraft assembly, maintenance and avionics for the college’s academic programs. Training for employees at the Boeing Co. and area vendors through the ReadySC program, which is housed at Trident Tech, is also anticipated to take place in the center. Charleston County has agreed to pay for $18.75 million of the facility as long as the state provides $51.25 million, or 64.9% of the total cost. North Charleston is expected to add $1 million, and Trident Tech will contribute $4 million in cash and $4.124 million in the value of the 25 acres of land the center will sit on. The S.C. Legislature is currently considering a $35 million general obligation bond and a $5 million allocation in the capital reserve fund for the center. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

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

March 23 - April 5 , 2015

Business news from around S.C.

Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119

CertusHoldings sells small business finance unit

Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144

Florida-based BankUnited Inc. has agreed to acquire CertusHoldings Inc.’s small business finance unit. A statement said the purchase price will include a $20 million premium on top of the unit’s loan portfolio that on Jan. 31 totaled about $203 million, as well as most operating assets and some liabilities.

Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145 Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118 Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128

Automaker looking for Upstate plant site

Assistant Graphic Designer - Emily Matesi ematesi@scbiznews.com • 843.849.3124 MIDLANDS NEWSROOM Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Special Projects Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546

More than 1,500 people work at Amazon’s 1.25 million-square-foot fulfillment center in Lexington County. (Photo/Staff)

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

Amazon adding 500 jobs in Lexington

UPSTATE NEWSROOM News Editor - Don Fujiwara dfujiwara@scbiznews.com • 864.235.5677, ext. 106

The online retailer, which opened its 1.25 million-square-foot Midlands distribution center in 2012, has created more than 1,500 full- and part-time jobs in the area. Amazon said it is adding new positions to meet growing customer demand. Employees will pick, pack and ship customer orders. “The 500 new jobs this expansion will create is terrific news for the Midlands community,” Gov. Nikki Haley said, “and we look forward to watching Amazon continue to grow here for many years to come.” Amazon operates its Midlands facility at Saxe Gotha Industrial Park. “Having such a recognized company make repeat expansions in our state is a credit to South Carolina’s positive business climate and workforce,” Commerce Secretary Bobby Hitt said. The Seattle-based company employs more than 150,000 full- and part-time employees worldwide. It also has a 1 million-square-foot fulfillment center in Spartanburg County.

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Hartsville-based Sonoco acquires stake in Brazilian firm

Arauco plans $30M expansion of Pee Dee facility

Graffo, which had sales of $35 million last year, operates printing presses and lamination applications in Brazil and employs about 230 people. Terms of the deal were not disclosed, but the transaction is expected in the second quarter.

The Chile-based company, which specializes in sustainable forest products, will use the investment to expand its particleboard and thermally fused laminate operations. The expansion will generate additional long-term jobs.

Ratan Tata, chairman emeritus of Tata Sons, said Jaguar Land Rover is looking for a plant site. S.C. officials aren’t saying whether South Carolina is in the running, but one Clemson University official said the school’s International Center for Automotive Research was instrumental in bringing Tata to Greenville.

Furniture company to invest $12.6M in York County Broad River Furniture, a licensee of Ashley Furniture HomeStore, plans to consolidate its operations at a new corporate campus in Fort Mill. The company, which employs 500 workers, expects to add another 200 positions in the move.

Spirit closes on purchase of SCANA unit The acquisition is a major milestone for Spirit, said Bob Keane, president and CEO of the Columbia-headquartered company. “This acquisition supports our facilities-based focus, increases our fiber footprint in South Carolina and improves the fundamentals of our business, both operationally and financially,” he said.

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Charleston Regional Business Journal (USPS 0018-822) is published biweekly, 27 times per year, including one special issue in January, by SC Biz News. P.O. Box 446, Charleston, SC 29402. Periodicals postage paid at Charleston, SC. Mailing address: 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464. Postmaster: Send address changes to: Charleston Regional Business Journal, P.O. Box 446, Charleston, SC 29402

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

March 23 - April 5, 2015

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Beach Co. backs off Jasper plan By Ashley Heffernan aheffernan@scbiznews.com

iting a lack of “consensus among the stakeholders,” The Beach Co. withdrew its request with the city of Charleston to rezone the Sergeant Jasper apartment building site to a planned unit development. The company’s proposal to tear down the 1950s-built Sergeant Jasper and replace it with three buildings, collectively known as The Jasper, was met with resistance from the community. Hundreds of residents showed up to a recent Planning Commission meeting at which the rezoning was expected to be discussed, forcing the commission to defer the discussion until a larger space could be found. That rescheduled meeting was then canceled after the application was withdrawn. In a statement, The Beach Co. said the climate is “no longer conducive for informed, productive public discussion” and much of the resistance was “largely due to misinformation about the project that was widely distributed throughout the community.” “As evidenced by our open dialogue

with our neighbors on the peninsula over the past six years, we have been committed to transparency surrounding this important project,” Beach Co. CEO John Darby said. “We have a talented, dedicated team that is committed to building a quality project that best serves the people who would like to call The Jasper ‘home.’ I am confident that we will create another great plan.” The company said the planned unit development for 310 and 322 Broad St., along with the vacant lot next door known as St. Mary’s Field, was proposed based on feedback from the community and a recommendation from the city’s Planning Department. Melanie Mathos, a spokeswoman for The Beach Co., said she expects a new plan to be announced in the next couple of months. “They’re going back to the drawing board,” Mathos said. The company said there are other options to consider, although they were not specified, and it “remains committed to building a quality project.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Charleston chamber optimistic about 2015-16 in economic forecast By Ashley Heffernan

aheffernan@scbiznews.com

he Charleston region is now far enough past the Great Recession that historical economic trends are no longer projecting downward, according to the Charleston Metro Chamber of Commerce. The chamber, in partnership with College of Charleston economist Frank Hefner, released the 2015-2016 economic outlook forecast in early March and predicts the years will be full of opportunity for the Lowcountry.

by nearly 12% at Charleston’s port last year, which was the largest gain of any port in the country. Next year, the forecast predicts container volumes will continue to go up.

Residential real estate

The chamber estimates that the region’s population grows by an average of 43 people per day, which will keep the demand for residential development high. Home sales are forecast to grow at a 6.5% rate for the year, while median and average sales prices will likely level off.

Employment

Growth in hotel revenue per available room, the typical measure of a property’s overall financial performance, is expected be limited to about 2% in 2015, because the area will absorb several new hotel projects in the next few months.

The chamber predicts employment and the labor force will increase in the next two years and, as a result, unemployment rates in the region will continue to decline, reaching 4.6% by the end of 2016. About 6,000 new jobs are expected to be created in the area this year, with an additional 5,000 arriving in 2016.

Airport

Attractions

Tourism

Total passenger activity at Charleston International Airport set a record in 2014 with more than 3 million passengers. Total passenger volumes are forecast to grow by 3.8% in 2015 and 1.3% in 2016.

Poor weather last year and the temporary closure of the Gibbes Museum of Art caused attendance at area attractions to decrease by 2.4% in 2014. The forecast is for attendance to remain flat in 2015 and increase by 1.5% in 2016. cr bj

Port

Total 20-foot equivalent units — the standard industry measure — increased

Reach staff writer Ashley Heffernan at 843849-3144 or @AshleyBHeff on Twitter.

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March 23 - April 5 , 2015

DuPont, Charleston school forging relationship By Ashley Heffernan

“Mr. Cannon’s office is wherever he happens to be. He’s all over the school, talking and interacting with people.”

aheffernan@scbiznews.com

art of Maurice Cannon’s job is to coach students. As principal of Burke Middle High School in downtown Charleston, Cannon spends much of his day roaming the halls, talking to students and developing relationships. When students get off track, he pulls them aside and has a quick discussion to head off worse problems in the future. “Have the conversation, redirect, show them how the way in which they handled that situation might not have been the best way to handle it, give them some pointers on how to navigate that situation in the future, and try to get them back on task,” Cannon said. “It works that way a lot in the building.” Cannon’s disciplinary philosophy is clear. But when it comes time to talk to his students about entering the manufacturing industry, Cannon goes quiet. “Talk about four-year college, twoyear college, Boeing — these are the buzzwords I know I can have an extensive conversation with students about,” Cannon said. “But other opportunities and what other companies do, I don’t feel as

Paul Patterson human resources manager, DuPont

Paul Patterson, human resources manager for DuPont, speaks to students at Burke Middle High School about working for the company. (Photo/Ashley Heffernan)

if I’m as knowledgeable as I should be as their principal.” When the opportunity came in March to invite a businessperson into the school through the Charleston Metro Chamber of Commerce’s Principal for a Day program, Cannon made a special request.

“Interestingly enough, we were one of the last to get paired up, and it was almost a match made in heaven,” said Paul Patterson, human resources manager for DuPont. “He was looking for a manufacturing, science, business person, and I work for DuPont, and we’re a science

company, manufacturing as well. It was a great match.” Patterson arrived at Burke Middle High a few minutes before 8 a.m. on March 5. He spent about five minutes in Cannon’s office, and then the pair were on the move. “Mr. Cannon’s office is wherever he happens to be. He’s all over the school, talking and interacting with people,” Patterson said. They helped coordinate activities, made sure students were getting to their classes on time, listened in on lessons in various classrooms, took photos with students who wanted to show off their artwork and watched over as much of the

March 23 - April 5, 2015

school as they could. “He knows every student by name; I was amazed,” Patterson said. “He calls them by their first and last names, so that’s quite a feat when you’re looking at nearly 400 students. The pair squeezed in a trip to a Board of Education meeting in the morning and were quickly back on campus to participate in part of a class discussion of the movie Selma, which the entire school had watched a few days prior, before returning to hallway patrol. “Cannon to radio holders: Does anyone have a visual on Coach Alston?” the principal said via walkie-talkie to all faculty and staff members. He wanted to find Wayne Alston, Burke’s athletic director, to start preparing for the school’s evening pep rally to send the boys basketball team off to the Class A state championship. In the middle of the search for Alston, Katy Perry’s song Roar started echoing through the hall. Children from Mitchell Math and Science Elementary School, who were visiting Burke so seniors could read to them in celebration of Dr. Seuss Week, were playing musical chairs. “This is an important relationship build for us. ... Once they reach a certain level, parents in the downtown community sometimes feel as though Burke is not an option,” Cannon said. “So this is a way in which we are really exposing the stu-

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Students in Brittany Mendez’s Algebra 1 class at Burke Middle High School learn how to graph and write inequalities. (Photo/Ashley Heffernan)

dents of an early elementary school age to Burke, and we expect this to be an ongoing relationship so through the years they become those who bleed Burke blue.” The 10-year-old school has a reputation among some community members of having a high rate of failure in student achievement, so some families send their children to other schools, according to Cannon. From 2010 to 2012, the school earned overall ratings of “at risk” from the S.C. Department of Education, but it improved to “average” in 2013, according to public report cards published by the state.

“We’re still doing a lot to build the relationship with the community so they can come inside the school and really see this is a dynamic school where you can get a quality education,” he said. Before finishing his thought, the principal suddenly announced, “You found your shoes!” to an upperclassman. Cannon explained to Patterson that he caught the student wearing shower shoes earlier in the day. “He was like, ‘They’re upstairs Mr. Cannon, they’re upstairs.’ I said, ‘Yes, but your feet are downstairs,’ ” Cannon said before transitioning to a discussion on

how he can get his students into the job market. “Our students don’t necessarily connect with industry enough to know what are the expectations, how do I get my foot in the door in that direction and what’s a pathway for growth and advancement?” Cannon said. Patterson added that fewer women and minorities apply for manufacturing jobs than white men. “We need to change that perception and show these young folks that it’s a great opportunity for them, good paying jobs in places where they can earn a good living and support their families in the future,” Patterson said. In the months after Patterson’s visit to Burke Middle High School, Cannon will spend a day at DuPont to learn more about the plant. Then Patterson and Cannon expect to work out a plan to connect the business with the school. “He’s building the employees of the future here, and I’m very interested in that,” Patterson said. “This is just a start for us. First, they have to know where we are, what we offer, and it’s really about educating them about manufacturing as an option for a career. Then, part of the goal will be to get the students to work at our plant after they graduate.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

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March 23 - April 5 , 2015

pays nearly $200 per year in wireless taxes, including state taxes, local sales taxes, a bear the cost,” Rankin said. “Now you’ve state 911 fee, a municipal license tax and a got 4 million or so wireless customers federal Universal Service Fund charge. and a million-plus landline customRobinson said landline companies are ers, which includes me, as a business, losing customers at a steady rate and the includes churches, schools, etc., and so bill is subsidizing a failing industry. we are paying for the lion’s share. In fact, “Arguably, if this bill passes, the landwe’re paying it all.” line phone companies could have no He said when legislators passed the customers, and still they would get the law in 1996, they recognized there would money, only now they’re getting it from be a day when a new technology would 4.5 million more South Carolinians,” require the law to be updated. Robinson said. “There’s nothing in this “We’re at that point now,” Rankin said. bill that would prohibit it.” If the bill is signed into law, S.C. UniRobinson said agreements are already versal Service Fund fees for landline in place that are “quite lucrative for the customers would likely go down as fees landline companies.” for cellphone customers would go up, “In 2014, Verizon paid tens of milaccording to Rankin, who said it’s fair lions of dollars to landline companies in because cellphone customers use land- South Carolina for use of landline netline networks. He estimates customers works,” she said. “We paid this money across the board will pay a fee of about directly to landline companies consistent 1.1% of their bill. with agreements we have with them for The fees will this purpose. These go into the fund, agreements are which is adminiscommon.” tered by the Office She reluctantof Regulatory Staff, ly called the proand then about two posed charge a tax dozen telephone but said it’s actually companies will be worse than that. eligible to draw “A tax assumes from the fund to you get some benbuild and maintain efit in the form landlines. of government Rankin said resources, like there is currenthealth care, schools ly a cap of about ... but wireless con$170 million on the sumers will get “A tax assumes you get fund, but it’s only nothing in return. paying out about some benefit in the form of It’s almost a trib$42 million a year. ute,” she said. The bill he is sponDon Weaver, government resources, like soring would cap president of the the fund at $42 milS.C. Association of health care, schools ... lion so no compaTaxpayers, doesn’t nies could petition but wireless consumers will think the charge for more funding in is a tax either. But get nothing in return.” the future. he has a different National cellstance on the issue. Michelle Robinson phone carriers “It’s not realvice president of state government affairs, Verizon, Tracfone, ly a tax issue. We Verizon Sprint, US Cellular think it is more of and T-Mobile are an equity issue,” he against the idea, said. “In my busisaying the proposed fee is actually a tax. ness, we get cellphone calls from customTogether, they sent a letter to the Senate ers, but they’re coming over a landline to Judiciary Committee asking for the bill finish that call. They’re still finishing over to be stopped. a landline. You can’t say they shouldn’t be Michelle Robinson, vice president of paying into the system because everyone state government affairs for Verizon, said is using the lines.” the bill establishes a permanent financial Weaver said the association’s memgift to landline companies. bers are primarily 50 and older and the “It means that landline phone compa- majority are in favor of the bill. nies will be guaranteed payments from “A lot of them still have landlines. If every South Carolina individual and the burden of this was not spread among family that purchases wireless services, all users, what would happen to the Uniand these good people get nothing in versal Service Fund? It could double or return,” Robinson said. triple,” he said. “It (currently) just doesn’t A study by the Tax Foundation, an inde- seem to be fair.” pendent tax policy research organization, estimates that a typical S.C. family with Reach staff writer Ashley Heffernan at a shared plan priced at $100 per month 843-849-3144 or @AshleyBHeff on Twitter. CELLPHONE, continued from Page 1

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cr bj

March 23 - April 5, 2015

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www.charlestonbusiness.com

March 23 - April 5 , 2015

Orangeburg shop owner George Dean said the closing of S.C. State University, his alma mater, would be “devastating to this community.” (Photo/Chris Cox)

Future of S.C. State worries small business, impacts recruiting By Chris Cox

ccox@scbiznews.com

eorge Dean stands outside his Russell Street clothing store, greeting each passerby with a wave and a smile. When he steps inside to chat up customers, each seems to know everything about him, backstory and all. George Dean is Orangeburg County. A 1964 alumnus of S.C. State University, and before that a graduate of the segregated Wilkinson High School, Dean is the living embodiment of his hometown. He is a hardworking, small-town guy with a love for his Bulldogs and a passion for the revitalization of his struggling area. “I’m part of the inner fabric of this community,” he said, proudly. That fabric has been stressed to the hilt since the S.C. House Ways and Means higher education subcommittee voted last month in favor of temporarily closing the university in order to fix the school’s financial deficit, which according to various legislative sources ranges from $10 million to more than $18.6 million. While the committee has since set aside that proposal in favor of approaches that would keep the school open but reform its administration and provide greater legislative oversight, it has nonetheless set off debate about what the school’s closure would mean to the community. It could mean trouble for business owners such as Dean, who count on the university’s faculty, staff and students to be customers. His first store, George’s Boutique, opened in the black business district along the railroad tracks next to S.C. State in 1970 and has been an Orangeburg mainstay ever since. “The economic impact of the closing of that university for one month would be

devastating to this community,” he said during an interview inside his current store, Deans Ltd. “Period and absolute. The facts are right in front of us.” Gregg Robinson, the executive director of the Orangeburg County Development Commission, said a potential closing would affect stores such as Dean’s the most. “It’s the local dry cleaner, it’s the accommodations, the sporting events, it’s the overall impact of an institution of higher learning and all of the dollars that the students spend,” he said. “Every single one of those students is responsible for a significant investment in a yearly fashion in the local economy. They’re a vital part.” The university has struggled to hold up its end of that bargain. S.C. State’s enrollment has fallen almost 40% since 2007 and currently sits at 2,985 students. And some students said they may not have enrolled at S.C. State had they known they may be facing serious changes. “Nobody could have seen this coming,” said Jamal Crawford, a freshman from Charleston. “I didn’t see this coming. If we knew this back then, I don’t think most students would have come.” Though a shutdown faces little chance of approval by the Legislature, the mere discussion of it has caused concern among potential new businesses, said state Sen. Brad Hutto, D-Orangeburg. He noted a recent call from a potential investor who wondered whether he should still consider relocating to the area. “The discussions have been counterproductive in that when we try to focus on the positives of bringing people to the area, it’s one more thing that now has to be explained in context,” he said. Although it has the state’s fourth-highest unemployment rate at 10.4%, Orangeburg County recently has been successful recruiting new jobs and investment.

March 23 - April 5, 2015

Since the start of 2011, the county attracted $207 million in capital investment and 951 jobs to the area, according to the S.C. Department of Commerce, including nearly $55 million investment and 165 jobs in 2014. Companies such as GKN Aerospace ($38 million, 250 jobs), Koyo ($10 million expansion), Cox Industries ($11.2 million investment and 60 additional jobs) and Sigmatex ($12 million and 50 jobs) have all created jobs and poured money into the area. And while many of those companies’ local interests fall more in line with the recruitment of students at Orangeburg-Calhoun Technical College, losing a four-year institution would still have its pitfalls. For example, S.C. State is the only university in South Carolina and the only HBCU in the United States that offers the only bachelor’s degree in nuclear engineering. It’s also home to an ROTC program, which was founded in 1947, that averages approximately 100 cadets and is one of the largest producers of minority officers for the Army. S.C. State has graduated 19 general officers, 15 of them into the Army, prompting civil rights historian James Felder to refer to the university as “West Point South.” ‘A Ghost Town’ “Clearly, the community suffers more than the economic development recruitment suffers,” Robinson said. “However, for any type of development — what I call the derived externalities that come into a community as a result of industry — this significantly impacts small business and the multiplier effect of small business.”

www.charlestonbusiness.com 11

S.C. State’s annual economic impact totaled $187.4 million, according to a study the school released last year. About $99 million of that sum is labor income. Orangeburg losing out on that financial influx would cripple the county, said university professor Joseph Onyeocho, who helped write the study. “This town, this county would turn into a ghost town,” Onyeocho said at a news conference where the report was discussed, the Orangeburg Times and Democrat reported. Whether the university closes or not, the damage has nonetheless been done, Hutto said. The university will still see an impact on recruiting next year’s class of students, he added, which will in turn affect the local economy. “This is certainly an economically down time for them and they’ve got some issues they’ve got to address, but I don’t think they’re insurmountable and I don’t think anybody thinks what came out is anything close to reality,” he said. “But it didn’t help. It’s something we’re going to have to work on.” The compromise would still beat the alternative: a possible increase in an already abundant number of shuttered small businesses as the county deals with the aftermath of its most recognizable institution closing its doors. “It’s often been said that Orangeburg would be just another country town without these universities,” Dean said. “And that’s just a fact. We would be just another rural community.” cr bj

Reach Chris Cox at 803-726-7545 or @chrisbcox on Twitter.

Obama makes first visit to S.C. as president By Ashley Heffernan

aheffernan@scbiznews.com

resident Barack Obama visited South Carolina on March 6 for the first time since winning the state’s Democratic primary in 2008. He held a town hall-style event at Benedict College, a historically black private college in Columbia and focused much of his time on higher education and how young people will impact the country’s future. President Barack Obama at “This is a good thing for me to get out of Washington Benedict Colle ge in Columbia. and talk to normal folk,” Obama said. (Photo/White House) A public relations consultant and mother of an 18-year-old student attending S.C. State University asked the president for advice on how to keep her son motivated. She noted S.C. State is “facing an uphill battle” related to its current financial situation and turmoil surrounding its leadership. Obama urged students at historically black colleges and universities to remain “wildly optimistic” about their possibilities and futures. “The truth is today, right now, you are more likely to be healthier, wealthier, less discriminated against, have more opportunity, less likely to be caught up in violence than probably any time in human history,” he said. “Your ability to start your own business or carve your own path has never been greater.” He said there are schools in South Carolina that were built in the 1800s and haven’t been repaired or replaced, don’t have decent restrooms and lack proper books. “We’ve got to do some more work to make schools more equal,” he said. “Even in the most rundown school, you can put in the effort to get a good education.”

www.charlestonbusiness.com

March 23 - April 5 , 2015

Kristen Brammer, a registered nurse in MUSC’s sickle-cell clinic at Rutledge Tower, cleans IV equipment before new patients arrive. (Photo/Ashley Heffernan) MUSC, continued from Page 12

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Rivers Avenue and Mall Drive in North Charleston. The campus will include a 33,000-square-foot pediatric ambulatory surgical center, which will have four operating rooms, three procedure rooms, an endoscopy suite and space for pre- and post-operation recovery. The campus will also have a 40,000-squarefoot pediatric multispecialty medical office building with 48 to 60 examination rooms, an urgent care center and a laboratory. Nearly 140 free parking spaces will be available as well. “We felt like getting it off the peninsula would let patients more easily access us,” Cawley said. “We do a lot of specialty services that no one else does, and this will allow anyone in the tri-county and those much further away to reach us easier.” The academic hospital submitted a certificate of need with the S.C. Department of Health and Environmental Control in December for the new center to relocate four pediatric ambulatory operating rooms from Rutledge Tower to the North Charleston site. The vacated beds and space in the downtown Charleston tower will likely be used to expand adult services. MUSC is also planning to file another certificate of need soon for imaging services on the new campus. Cawley expects to hear back from DHEC on both requests in the next few months. “If we don’t have any issues with the certificate, we’ll start building and breaking ground as early as next year,” Cawley said.

He wants the surgical center and medical office building to be built at the same time. Currently, about 85 employees work in the downtown pediatric ambulatory clinics and an additional 36 work in community clinics. Cawley said a majority of the downtown employees will move to the new campus, and there will likely be a need to hire more people, although he wasn’t sure exactly how many. “The old children’s health outpatient side continues to grow almost every month. By the time we open up this building and have more capacity, we’ll need to hire more employees,” he said. Hospital leaders started discussing the project internally about a year ago and brought it to the attention of North Charleston officials in the fall. “They immediately saw having MUSC children’s health up there as a positive for the community as well as good for patients in general,” Cawley said. “It’s been moving along at a very fast planning rate really because the city of North Charleston has been so easy to work with on this.” The campus is something North Charleston Mayor Keith Summey has wanted for many years. City Council agreed in late February to purchase the 24-acre lot, worth nearly $4 million, and give it to MUSC free of charge. North Charleston will pay for the property using funds from the Commerce Department railroad settlement. “It’s not normal. But there’s a difference in dreams and visions. Visions, you put money to it,” Summey said. “I think it’s an opportunity for this to stimulate other investment in that area.”

March 23 - April 5, 2015

The lot includes 6 acres of wetlands, and Summey said it’s the city’s intention for MUSC to have access to the entire parcel. “I think it’s going to be a great addition to have a medical university complex located in the city of North Charleston in that area, and I think it’s going to be a major enhancement to watch that commercial node along Rivers Avenue in that area be rekindled and have more investment in it as well.” MUSC spokeswoman Heather Woolwine said there is usually a list most mornings of 25 to 40 sick patients who are in need of inpatient specialty care at MUSC. “These patients are waiting in the MUSC emergency room, other emergency rooms and inpatient beds located in hospitals throughout the state,” Woolwine said in a statement. “Our local and statewide community needs us to come to them, whenever and wherever we can.” The hospital intends to pay for the campus using its capital funds and is focusing all philanthropy efforts on the new children’s hospital and women’s pavilion in downtown Charleston. As of March 10, MUSC had raised about $14.8 million of its $50 million community goal, according to Woolwine. The $50 million is essentially a down payment on the $350 million project, which will be financed mostly through a federal Housing and Urban Development initiative for hospitals. The new hospital was initially expected to open in 2020, but Cawley said the opening has been pushed up a year because of the price tag. “We think, because of the improving economic environment, if we wait, the cost of the project will escalate. So we’re trying to break ground in 2016 to hold down the total cost,” he said. “The early response has been very positive, and we continue to hear great things from many donors.” The new facility will sit at the corner of Courtenay Drive and Calhoun Street at the site of Charleston Memorial Hospital, which will be demolished. It’s expected to include more than 200 beds for intensive care-unit patients, neonatal ICU patients, acute-care patients, and new and expectant mothers. The new downtown hospital will be the centerpiece of MUSC’s pediatric services, according to Woolwine. “Our vision for children’s care is probably best described if you think about a wheel, with a hub in the center and spokes reaching out from that center to support various parts of the wheel, which in turn form a continuous, effective circle,” Woolwine said. “We are building a new footprint for pediatric specialty care.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

www.charlestonbusiness.com 13 AMT, continued from Page 3

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“Our intent is to provide just-in-time service for parts and assemblies as they’re required,” Guzman said. “I see the ability to expand as we need to, depending on work packages awarded.” AMT South Carolina recently celebrated its soft opening. Three employees transferred from Washington, including Guzman, and 12 assemblers were recently hired. The new hires flew to Washington to train on AMT’s assembly lines for about five weeks. They also went through the

ReadySC program, a state-run workforce initiative that trains employees on each company’s equipment and processes. When Senior Aerospace AMT announced plans to open a North Charleston office in July, the company projected it would create 60 jobs over time. AMT performs high-precision machine shop operations — such as three-, four- and five-axis machining, simple and complex assemblies and structural component work — for original equipment manufacturers around the world.

Senior Aerospace AMT has five buildings and about 500 employees on its Washington campus. It is a division of United Kingdom-based Senior Plc. Guzman said AMT South Carolina has the potential to grow as Boeing South Carolina grows and if it receives other work from Boeing or manufacturers throughout the Southeast. “Our focus and starting point is to support our largest customer in the area, and of course, that’s Boeing,” Guzman said. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

www.charlestonbusiness.com

March 23 - April 5 , 2015

Daimler brings van manufacturing to Lowcountry with new automotive plant By Liz Segrist

lsegrist@scbiznews.com

n one of the largest economic development announcements ever made in the Lowcountry, Mercedes-Benz Vans, a division of Daimler, plans to build its Sprinter vans and create 1,300 jobs at a new manufacturing facility in North Charleston. This is the second-largest jobs announcement in the Lowcountry since 2011, with Boeing’s being the largest and Benefitfocus being third-largest. The company plans to invest about $500 million to build a full-scale production facility on more than 200 acres in North Charleston. This new Mercedes-Benz plant brings another vehicle manufacturer to South Carolina — in addition to BMW in Greer — that will produce U.S.-made vehicles from start to finish. “We are so excited to be announcing that Mercedes-Benz Vans (will have) full manufacturing right here in Charleston County. ... Now these (vans) will be made in America,” Gov. Nikki Haley said to state and local officials, company executives and employees during the announcement. This new automotive manufacturing campus will build off Daimler’s current operations at 8501 Palmetto Commerce Parkway in North Charleston, where vans are currently reassembled after being manufactured in Germany. The new van manufacturing campus will include a plant, body shop, paint shop and assembly line, where employees will build next-generation Sprinter vans for the U.S. and Canadian markets. Plans for the new production facility will enable the company to get the vans to market faster, to be closer to North American customers and to be more economical, according to Volker Mornhinweg, head of Mercedes-Benz Vans. The United States is Daimler’s second-largest market for vans worldwide, behind Germany. The company sold almost 26,000 of its Sprinter vans in the U.S. in 2014, up 30% from 2013. The new Charleston plant is part of Daimler’s plan to expand Mercedes-Benz Vans’ global production network. Company officials declined to comment on production rates. Mornhinweg said it takes about two days to produce one Sprinter van. “It makes perfect sense that we will be building our vans where we sell them. ... We are investing around half a billion dollars to create a top-notch Mercedes-Benz van plant here in South Carolina,” Mornhinweg said. “This plant

Volker Mornhinweg, head of Mercedes-Benz Vans, and Gov. Nikki Haley unveil plans for the new facility that will manufacture Sprinter vans in North Charleston. (Photo/Kim McManus)

is key to our future growth in the very dynamic North American van market.” Mornhinweg said expansion at the local site is an option in the future. The German automaker will begin construction on the plant in 2016. An opening date was not provided for competitive reasons, according to company officials. The state’s Coordinating Council for Economic Development approved undisclosed job development credits and a $14 million Closing Fund grant to fund property improvements at the site. “It’s another reassurance and validation that folks can do the work here in our state,” Sen. Paul Campbell, R-Goose Creek, said. “It’s validation that we can support major manufacturing operations and help them be successful.” Over the past two decades, South Carolina has transformed from being primarily a textile and agricultural state to focusing on automotive and aerospace manufacturing, largely a result of a push by legislators and governors and recruiting efforts by Commerce and economic development agencies as states compete for companies. Global automotive and aircraft manufacturers have moved to or expanded within South Carolina in recent years, including BMW in Greer, Honda in Florence, and Daimler and Boeing in North Charleston. The state is also considered to be on the short list for a Volvo plant. From 2011 to 2014, manufacturing jobs in South Carolina grew by 13.5%, a rate nearly double the Southeast average, according to the state Commerce Department. The state’s automotive industry — including tires — employs 57,600 people, according to Commerce’s

industrial directory. South Carolina now houses more than 250 automotive-related companies and suppliers, according to Commerce. Rep. Chip Limehouse, R-Charleston, said the new Mercedes-Benz plant is likely going to attract other car manufacturers to the region and create an automotive cluster in the Lowcountry, which could result in a “10x factor” for job creation, similar to BMW in the Upstate. “This is certainly big news by anyone’s standards in terms of the expansion of Daimler Chrysler resulting in 1,200 new jobs; but moreover, this indicates that South Carolina is rapidly becoming a leader in the automotive manufacturing industry,” Limehouse said. Daimler announced its North Charleston assembly plant in 2005. The company reassembles and distributes its Sprinter vans from the facility under the Mercedes-Benz and Freightliner brands. The North Charleston facility employs 140 people currently, and the company previously announced plans to hire 60 more for reassembly. The company has delivered more than 2.8 million Mercedes-Benz Sprinter vans to customers in 130 countries worldwide. The Sprinter van has been assembled and sold in the United States since 2001. “Every time I now see a Sprinter van ... I’ll know it was produced in North Charleston,” North Charleston Mayor Keith Summey said. “It is a great day in South Carolina and a damn wonderful day in North Charleston.” cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

04.14-15.2015 TD CONVENTION CENTER | GREENVILLE, SC TO VIEW AGENDA AND REGISTER, GO TO:

scmanufacturingconference.com

2 // Register at scmanufacturingconference.com

Presented by

Crowne Plaza

Southeastern Institute of Manufacturing & Technology

Palmetto Security Group Phillips Staffing

SCMEP Dority & Manning

SC Council on Competitiveness

TD Convention Center Upstate Chamber Coalition

Florence-Darlington Technical College

Eastside Transportation Service

NAI Earle Furman

Ten at the Top

Recover

Join manufacturing professionals from across the Southeast U.S. to discuss the latest manufacturing trends and topics, share their vision, become inspired and immerse yourself in South Carolina’s manufacturing future.

The Salute to Manufacturing Awards Luncheon. The prestigious Silver Crescent Award, Manufacturing Axcellence Awards and the Smart Choice SC Award will be presented. Five Keynote Speakers S.C. Commerce Secretary Bobby Hitt, Michelin President Pete Selleck and others.

AME’s (Association for Manufacturing Excellence) annual SE United States Convention. Eight panel discussions Cyber Security, Venture Capital, Next Generation Manufacturing, Digital Manufacturing, Creating a Workforce, Supply Chains of the Future, Additive Manufacturing, The Future of Intellectual Property

Greenville Technical College’s Advanced Manufacturing Job Fair Manufacturing career fair for high schoolers. An exposition with national, regional and state manufacturing suppliers. Workshops, manufacturing tours, VIP receptions and much more!

FEATURED SPEAKERS

Nikki Haley

Bobby Hitt

Pete Selleck

Governor, South Carolina

Secretary of Commerce, South Carolina

Chairman and President, Michelin North America

Tuesday, April 14, 12:00 p.m.

Tuesday, April 14, 4:30 p.m.

Wednesday, April 15, 4:15 p.m.

Salute to Manufacturing Awards Luncheon

The State of Manufacturing in South Carolina

The Future of Manufacturing in South Carolina

Gov. Haley will give the keynote speech at the Salute to Manufacturing Awards Luncheon. Haley will honor winners of several state-wide manufacturing excellence awards at the luncheon. Haley was re-elected as the 116th Governor of South Carolina in 2014. An individual ticket for the Awards Luncheon is $60 and a corporate table is $495. Both can be purchased online.

Bobby Hitt was appointed by Gov. Nikki Haley to serve as Secretary of Commerce in 2011. Previously, he was the manager of corporate affairs at the BMW Manufacturing Company in Spartanburg and was involved in bringing BMW to the Upstate. He is also a past chairman of the South Carolina Manufacturers’ Alliance. After Bobby Hitt’s speech, he will hold a short press conference to take questions from the media.

Pete Selleck’s keynote will close the conference. Selleck is responsible for coordinating all activities of Michelin in North America. With more than $10 billion in sales and 21,500 employees across Canada, Mexico and the United States, Michelin is a global leader in the tire industry. Selleck joined Michelin in 1982 and served in manufacturing and general management in Greenville and Clermont-Ferrand, France. The first half of his career was focused on engineering, quality, and operational and leadership roles in North American manufacturing plants.

4 // Register at scmanufacturingconference.com

EVENTS AT THE CONFERENCE AND EXPO Conference The 2015 conference will feature panel discussions led by key players in the manufacturing industry. Topics include “Cyberthreats and the Future of Security for Manufacturers,” featuring John Toomer, director of Intelligence, Information and Cyber Systems with Boeing in Washington, and “Creating a Skilled Workforce,” featuring Molly Spearman, S.C. superintendent of education. Other panel discussions include Supply Chains of the Future, The Future of Intellectual Property for Manufacturers and Opportunities in Additive Manufacturing, which will feature an overview of 3-D printers. Industry experts will host a series of presentations throughout the two-day event covering real-world topics, such as “The Challenges and Opportunities for Next-Generation Manufacturing” and “Digital Manufacturing and the Future of Long-Term Data Retention.”

Expo More than 70 exhibitors, manufacturing suppliers and vendors from across the Southeast will be available at the exposition venue each day. The exhibit hall will be set up so that all attendees will be able to maximize networking.

Workshop The Association for Manufacturing Excellence (AME), a national trade organization, will hold its annual Southeast U.S. annual convention and Southeast Region Workshops in conjunction with the conference. Workshops and special-interest sessions will be held over the two days, including how to be an effective leader in the manufacturing industry, how to train effective employees and manufacturing best practices from Silver Crescent winner Bridgestone.

Career Fair Access to a highly-skilled and educated workforce is the most critical element for innovation success. More than 1,300 high school students from 59 South Carolina school districts are set to attend a manufacturing-centered career fair on Wednesday, April 15, in conjunction with the conference and expo. Sponsored by the SCRA, the Career Fair will show high school students from across the state that a career in manufacturing can be both exciting and financially rewarding.

Job Fair Greenville Technical College will sponsor the Advanced Manufacturing Job Fair, held in conjunction with the Expo, on Tuesday, April 14. The Job Fair, which is open to the community, will include representatives from 30+ South Carolina manufacturing

companies. They will be available to discuss current job availability as well as anticipated future openings. Staffing agencies that specialize in finding qualified applicants for manufacturing jobs will be on hand to talk to job seekers.

BMW tours BMW’s only American factory is a marvel that blends modern engineering with design aesthetics. See how the “ultimate driving machine” is built during a guided plant tour, with an up-close look of the assembly line featuring the body and paint operations at the Greer plant. It’s the ultimate backstage pass. Four tours will be held on Monday, April 13, in the morning and afternoon. Tour buses will leave from the TD Convention Center. Only 20 people allowed per tour. Reservations only.

6 // Register at scmanufacturingconference.com

TUESDAY // APRIL 14TH 8:00 am REGISTRATION, NETWORKING AND REFRESHMENTS 9:15 am WELCOME Keynote Speaker: Mark C. Fava, chief counsel, Boeing South Carolina 9:30 am PANEL DISCUSSION Cyber-Threats and the Future of Security for Manufacturers As computing becomes more sophisticated and integrated into the manufacturing process, so does the potential for hackers to penetrate manufacturing systems and intellectual property. The panel will explore the current challenges facing IT departments and new ideas for cyber security in manufacturing. Session Chair: Michael McGrath, consultant, senior tech advisor at analytic services, Reston, VA Panelist: Keith Stoufer, mechanical engineer, Intelligent Systems Division, NIST (National Institute

of Standards and Technology), Gaithersburg, MD Panelist: John Toomer, director of intelligence, information and cyber systems, Boeing, Washington DC 10:45 am PANEL DISCUSSION Venture Capital and Creating Ecosystems for Manufacturing Startups Many small to medium-sized manufacturers have difficulty finding funding programs to bridge the gap from R&D to commercialization due to long-term return on investment, risk, and many other factors. The discussion will give an overview of established programs and explore existing and future funding models. Session Chair: Bill Mahoney, chief executive officer, SCRA Applied Technologies in Columbia, SC Panelist: Bob Browning, general partner, AB Solutions, Greenville, SC Panelist: Will Johnson, shareholder, Haynsworth Sinkler Boyd, Columbia SC

Panelist: Jason Premo, chairman, Premo Ventures, Greenville SC Panelist: Peter Bastien, business development officer, Toyota Tsusho America, Boston, MA 12:00 pm FEATURE EVENT Salute to Manufacturing Awards Luncheon Manufacturing excellence awards, including the prestigious Silver Crescent Award, will be presented to South Carolina manufacturers at this annual luncheon. The awards recognize exemplary manufacturing operations, which demonstrate superior performance in seven categories, including citizenship, employee engagement, customer satisfaction, environmental stewardship, innovation, financial performance and longevity planning. An individual ticket for the Awards Luncheon is $60 and a corporate table is $495. Both can be purchased online. Emcee: Tom Crabtree,

news anchor, WSPA-TV 7, Spartanburg, SC Keynote Speaker: Nikki Haley, Governor, South Carolina 2:00 pm Challenges and Opportunities for Next-Generation Manufacturing Presentation #1: Customers’ design and quantity requirements are increasingly pushing suppliers into flexible manufacturing systems that allow transition from large-scale production to small runs and back again. Opportunities are created by today’s manufacturing challenges to profitably determine the path of products and process innovation. Presenter: Tom Kurfess, professor and HUSCO/Ramirez distinguished chair in fluid power and motion control at Georgia Institute of Technology,Atlanta, GA. Director, Campbell Graduate Engineering Center Presentation #2: Manufacturing success in the future will

Employment in the Upstate is improving, and manufacturing leads the way! Meet employers, apply on the spot and learn how to qualify for thousands of high-paying jobs with

Greenville Technical College Advanced Manufacturing Job Fair at the SC Manufacturing Expo

Tuesday, April 14 from 9 a.m. to 3 p.m. TD Convention Center

Visit gvltec.edu/manufacturing for more information.

increasingly rely upon international coordination and cooperation in research and development between governments and other entities. The presenter will outline some existing models for international cooperation and coordination. Presenter: Dan Nagy, managing director, inter-regional secretariat at Intelligent Manufacturing Systems (IMS), Arlington, VA 3:15 pm PRESENTATIONS Digital Manufacturing and The Future of Long-Term Data Retention Presentation #1: Traditional product timelines from R&D to production are lengthy and capital intensive. Innovations in digital manufacturing strategies reduce the time and cost of producing complex systems and parts, strengthen the supply chain and reduce acquisition costs. Presenter: Dean Bartles, executive director, Digital Manufacturing & Design Innovation Institute at UI Labs, Chicago, IL

Judged by a panel of experts from the Association for Manufacturing Excellence (AME), the Manufacturing Excellence Awards featuring the prestigous Silver Crescent Award, honor companies demonstrating excellence in Seven Crescents of operations: citizenship, employee engagement, customer satisfaction, environmental stewardship, innovation, financial performance and commitment to longevity in South Carolina.

2015 award recepients are: • Honda of South Carolina Manufacturing Inc. • Mack Molding Company Southern Operations

Presentation #2: As manufacturers design and plan on digital platforms, international standards for data storage and retrieval need to be established to mitigate data loss due to future obsolescence of IT systems. This session explores the need to create a system that has the staying power of paper blueprints.

• BorgWarner TorqTransfer Systems • Cox Industries Inc.

Presenter: Don Hemmelgarn, senior executive vice president, International Technegroup, ITI, Inc., Milford, OH 4:30 pm The State of Manufacturing in South Carolina Keynote Speaker: Bobby Hitt, secretary of commerce, SC

5:00 pm PRESS CONFERENCE Location: GSA Business, 7 On Your Side Media Center (on Exhibit Floor) 5:15 pm RECEPTION Location: Exhibit Floor

8 // Register at scmanufacturingconference.com

WEDNESDAY // April 15th 7:30 am POWER BREAKFAST Creating a Skilled Workforce Breakfast will be served prior to the panel discussion. Manufacturers throughout South Carolina continue to struggle to find qualified employees to fill myriad of open positions. High school seniors are increasingly beginning to make manufacturing their career choice. However, the gap between available jobs and available homegrown talent remains significant. Panelists will explore ways to close that gap. An individual ticket to the breakfast panel discussion is $35 and can be purchased online. Moderator: Chris William, executive producer, Carolina Business Review Panelist: Jimmie Williamson, president, SC Technical College System, Columbia, SC Panelist: Molly Spearman, state superintendent of education, South Carolina

Panelist: Dr. Keith Miller, president, Greenville Technical College Panelist: Henry Giles, president, Spartanburg Community College Panelist: Cheryl Stanton, executive director, SC Dept. of Employment & Workforce 9:45 am Update on Center for Manufacturing Innovation Speaker: Dr. Keith Miller, president, Greenville Technical College 10:30 am PANEL DISCUSSION Supply Chains of the Future Many global supply chains are not equipped to cope with a future where the relative advantage of manufacturing locations can change quickly. Some innovative manufacturers are preparing themselves by splintering their existing supply chains into smaller, nimbler ones to manage higher levels of complexity and

reconfiguring their manufacturing footprints as hedges against uncertainty. The panel will look at how leaders are preparing today to get more from their supply chains in an uncertain future. Moderator: Grady Johnson, group publisher, SC Biz News Panelist: Peter Straub, executive director, South Carolina Applied Research Center for Supply Chain and Logistics, Summerville, SC Panelist: David Stieren, technical manager, program development, NIST (National Institute of Standards and Technology), and Hollings Manufacturing Extension Partnership, Gaithersburg, MD Panelist: Alfred Haas, department manager, Material and Transportation Control, Delivery Assurance, BMW Manufacturing Company, Greer, SC 12:00 pm CONVENTION CENTER CAFE OPEN FOR LUNCH

1:15 pm PANEL DISCUSSION Opportunities in Additive Manufacturing The U.S. Department of Energy anticipates that, compared to today’s “subtractive” manufacturing processes, additive processes (3-D printing) will reduce energy use by more than 50 percent. Combined with shorter lead times, mass customization, reduced parts count, more complex shapes, parts on demand, and less material waste, it’s no wonder that additive manufacturing is generating interest. Experts in the field will give the latest insights on how additive manufacturing will impact small to large manufacturers. Moderator: Andy Owens, managing editor, SC Biz News Panelist: James Simmons, director of additive manufacturing, SIMT (Southeastern Institute of Manufacturing Technology), Florence, SC

Panelist: Jim Williams, vice president, Aerospace & Defense, R&D, 3D Systems Corporation, Langhorne, PA Panelist: Mark Cotteleer, research director, Deloitte Services, LP, Milwaukee, WI 2:30 pm PRESENTATION The Latest Options in 3-D Printing Presenter: Kevin Hunter, president, Simplified Office Systems 3 pm PANEL DISCUSSION The Future of Intellectual Property for Manufacturers Some products which formerly were manufactured physical products are now being sold in digital form, with no manufacturing required. The “Internet of things,” the “open-source” movement and the proliferation of 3-D printing are producing an increased need for manufacturers of all kinds to secure

returns from assets by paying more attention to IP issues. The panel will discuss this evolving playing field and look at ways to protect assets and take advantage of new business opportunities. Moderator: Natalie Corella, Exec. vice president, Contracts & Compliance, SCRA, Summerville, SC Panelist: Jason Allen Jennings, attorney, Dority & Manning P.A., Greenville, SC Panelist: Douglas Kim, attorney, McNair Law Firm, P.A., Greenville, SC 4:15 pm KEYNOTE The Future of Manufacturing in South Carolina Speaker: Pete Selleck, chairman and president, Michelin North America 5:00 pm RECEPTION Location: Exhibit Floor

The winner of the Smart Choice SC award, for an economic development announcement in 2014 is Toray Industries Inc. The Tokyo-based company plans to invest $1 billion and create 500 jobs at a new plant in Spartanburg County. Toray Industries is the world’s largest producer of carbon fiber, and is one of Boeing’s largest suppliers of composite material for the 787 Dreamliner manufactured and assembled in North Charleston and Everett, Wash. This announcement represents one of the largest initial capital investments in South Carolina’s history. Toray Industries manufactures fibers and textiles, plastic resins, films and carbon fiber composite materials. Carbon fiber has applications ranging from golf clubs to aircraft to natural gas pressure vessels. The company has acquired 400 acres in Moore, S.C., for its future business expansion. It views the United States as a key expansion market due to the revival in manufacturing that is pushing demand for advanced materials. In addition to Japan and the United States, Toray’s global network includes facilities in Asia, Europe, Mexico and Brazil. Because of the size of its investment, its commitment to the manufacture of cutting-edge materials and its anticipated contribution to South Carolina’s growing aerospace industry, we are pleased to give the Smart Choice SC award to Toray Industries.

10 // Register at scmanufacturingconference.com

Presented by

Crowne Plaza

Upstate Chamber Coalition

Dority & Manning

SCMEP

NAI Earle Furman

Ten at the Top

TD Convention Center

Southeastern Institute of Manufacturing & Technology

Palmetto Security Group

Eastside Transportation Service

SC Council on Competitiveness

Florence-Darlington Technical College

Phillips Staffing Recover

12 // Register at scmanufacturingconference.com

In Focus:

Hospitality and Tourism

LIST Area Attractions, Page 20 Disposable Income

Wine & Food Festival near sellout in 10th year

Tourism drives a lot of economic activity across the Southeast — including more than $11.7 billion in South Carolina, which hit the top 10 in regional hospitality cash flow.

Top Southeastern Tourism States Numbers based on domestic and international travel tourism dollars for 2012.

State

Opening Night Gala

Mike Lata’s Fish Fry

Southern Betty Brunch

Photos/Andrew Cebulka

By Harriet McLeod

Contributing writer

icket holders to the Charleston Wine & Food Festival’s “first tasting” in Marion Square stood in line on a chilly Friday for jalapeno bacon with collard green pesto, pimiento cheese and a quail egg on a sweet corn cake, served up by Matt Farley, executive chef of Southern Steak and Oyster in Nashville, Tenn. Photographers stooped to capture close-ups of the little bites resting in paper-thin bamboo boats. Foodies picked them up and chomped them, then moved on to rinse — with wine, whiskey, bourbon, vodka or beer — and repeated throughout the festival’s Grand Tasting Tent. The 10th annual food festival, held March 4-8, sold out all but a handful of its events, from a $40 Pecha Kucha night to a $750-a-plate North South East West dinner, a mashup of four-star chefs. Twenty-four signature restaurant dinners, some with several seatings, sold out at $175 a plate. Organizers said 23,500 people attended this year’s festival, including participants and vendors. The festival has about 500 volunteers, spokeswoman Cathryn Zoller said.

Glitches were few, she said. Some signage went awry and some snowtrapped northeastern visitors had a hard time getting to the festival. Thursday night rain and Friday’s chill gave way to a beautiful sunny weekend, Zoller said. “As Chris Chamberlain of Food Republic said, you can experience all four seasons in just five days in Charleston.”

“We have a community that is so aware of every new restaurant that opens and the new beer that’s being poured at Edmund’s Oast” Gillian Zettler festival director, Wine & Food Destival

While chefs and restaurants have driven Charleston’s national and international culinary reputation, the festival could be driving a new reason to visit Charleston. “Charleston as a culinary destination really is a fairly modern concept,” said Wayne Smith, associate professor of hospitality and tourism management at the College of

Charleston’s School of Business. “In tourism surveys in the past, when people were asked, ‘Why did you come to Charleston?’ most said, ‘History.’ “Around 2009 and 2010, ‘For the restaurants’ started creeping up,” Smith said. “In the last three years, that answer is equal to the number of people who are coming for the history. I think Wine & Food is a catalyst for that.” The festival’s economic impact has grown from $2.2 million in 2007 — its second year — to just under $10 million last year, according to the college’s annual surveys and economic impact studies. It more than doubled its contribution to state and local taxes in the same time period, Smith said. Out-of-town festival attendees are 51 years old on average, he said. Most are married or have partners and are well-educated, he said. Almost three-quarters of them report household income over $100,000 a year. They report spending an average of $700 in Charleston over the weekend, he said. “They’re not the Motel 6 crowd,” Smith said. “This is a dream target market. They have money to spend, they’re professionals, they can See WINE & FOOD, Page 17 ➤

Tourism dollars

Florida

$74.8 billion

Georgia

$24.0 billion

Virginia

$21.7 billion

North Carolina

$20.1 billion

Tennessee

$16.2 billion

South Carolina

$11.8 billion

Louisiana

$10.2 billion

Alabama

$8.4 billion

Kentucky

$8.1 billion

Arkansas

$6.2 billion

118,100

Jobs supported by tourism in the state

8.3%

Private employment attributable to tourism sector

$1.7 billion Taxes generated by tourism each year Source: Southeast Tourism Society

F&B Dollars Lead Food service leads the breakdown of sectors impacted by the tourism industry with nearly 30% of tourism-based revenue coming from food and beverage in 2013.

Tourism sector

Income

Food service

$3.4 billion

Auto transportation

$2.7 billion

Hotels

$2.5 billion

Retail

$1.1 billion

Public transportation

$1.1 billion

Entertainment

$814.3 million

Source: S.C. Department of Parks, Recreation and Tourism

Next Issue’s Focus:

Education and Workforce Development

www.charlestonbusiness.com

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summer sessions can help you:

accelerate your degree program. focus on tougher courses. graduate on time. more than 300 courses will be offered this summer, including study abroad and online classes, independent studies and internships.

for more information:

March 23 - April 5 , 2015

IN FOCUS: HOSPITALITY AND TOURISM

843.953.4831 summer@cofc.edu | go.cofc.edu/summer

Arts organizations expand marketing, offerings to target younger patrons

By Holly Fisher

he average age for patrons of the Charleston Symphony Orchestra is mid- to upper 60s. The CSO is among several organizations that are revamping some of their focus in hopes of attracting younger audience members. The CSO is increasing its social media presence, using Facebook and Twitter to share information and educate new concertgoers. Last yearâ&#x20AC;&#x2122;s Oktoberfest at Palmetto Brewing Co., a Mardi Gras party, and the Pops! series featuring jazz bands and a sold-out Beatles musical tribute have attracted a much younger crowd, according to Bryan Hutchison, CSO marketing coordinator. By broadening its events and musical repertoire, the CSO is able to draw in a new generation of symphony enthusiasts. â&#x20AC;&#x153;Young professionals are what weâ&#x20AC;&#x2122;re looking for,â&#x20AC;? Hutchison said. â&#x20AC;&#x153;They have disposable income, they have some interest, and they may be starting a family or just married. We can reach out to those people with (events like) Oktoberfest and Mardi Gras. Now that we have them in the CSO circle, we hope they will have further interest in future concerts for when they want to go out on a date.â&#x20AC;? Yet, while the CSO is seeing its attendance rise, attendance at arts events nationwide is down. Recently released data from the National Endowment for the Arts found that since 2002, adult attendance rates have dropped for a core set of arts activities, including classical music, theater, ballet or visits to an art gallery or museum. In 2012, 33% of adults attended an arts event, compared with 39% in 2002. The declines were the greatest among non-Hispanic whites, adults ages 35 to 54 and higher-educated adults, according to the endowmentâ&#x20AC;&#x2122;s Survey of Public Participation in the Arts. Older Americans were the only demographic that reported an increase in attending visual and performing arts activities in the past decade.

Targeting young professionals

In 2010, some board members and volunteers with the Gibbes Museum of Art began to look for a way to engage younger arts patrons. They launched Society 1858, an auxiliary group for ages 21 and older. The organization started with a few social events but has grown to add an educational component and partnerships with other local arts organizations, said Lasley Steever, director of programs and events. Society 1858 has maintained a steady membership of about 215, even with the temporary closing of the Gibbes for renovations. Last year, Society 1858 took over

the Factor Prize for Southern Art. Now named the 1858 Prize for Contemporary Southern Art, it awards $10,000 to a Southern artist who â&#x20AC;&#x153;contributes to a new understanding of art in the South.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very cool connection for this group,â&#x20AC;? Steever said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just an auxiliary group raising money for an organization, but they have this really clear purpose and now an opportunity to engage with this process of winner selection.â&#x20AC;? In the theater world, itâ&#x20AC;&#x2122;s about trying something new and even pushing the envelope a bit to fill the seats with younger theatergoers. â&#x20AC;&#x153;The types of shows many theaters are doing can be more progressive and controversial, and that lends itself to a younger audience,â&#x20AC;? said Emily Wilhoit, executive director of the Theatre Charleston. â&#x20AC;&#x153;Theaters arenâ&#x20AC;&#x2122;t playing it safe. (They are more) contemporary and want to make people think.â&#x20AC;? Wilhoit said itâ&#x20AC;&#x2122;s also important to make sure the theater is accessible. Most local theaters donâ&#x20AC;&#x2122;t charge more than $30 per ticket and several offer â&#x20AC;&#x153;pay what you willâ&#x20AC;? or $10 ticket nights. â&#x20AC;&#x153;The challenge is making sure people know theater is not something just for the wealthy,â&#x20AC;? she said.

Art equals quality of life

Charleston is bucking the national trend, and rather than seeing audiences declining, it is experiencing a renaissance. The city is home to the world-renowned Spoleto Festival, dozens of local arts festivals, theaters, galleries, ballet and childrenâ&#x20AC;&#x2122;s arts programs. Later this year, the Gaillard Center will open its door to welcome productions of all kinds in a world-class performance hall. â&#x20AC;&#x153;Charleston is a growing area for young professionals, and one of the key quality-of-life components is a thriving arts scene,â&#x20AC;? said Mike Gibbons, executive director of the Charleston Regional Alliance for the Arts. â&#x20AC;&#x153;The growth of arts over the last several years reflects that weâ&#x20AC;&#x2122;re filling that need in terms of new exhibitors and productions.â&#x20AC;? Arts organizations in the Lowcountry are developing specialties and carving niches for themselves in this growing artistic landscape. â&#x20AC;&#x153;Charleston is different from other cities,â&#x20AC;? Gibbons said. â&#x20AC;&#x153;You have to have the marriage of producers and consumers. There are counties in our state where you could produce the greatest art, but you wouldnâ&#x20AC;&#x2122;t have any consumers who want to see it. â&#x20AC;&#x153;Here, art is not seen as a luxury, but as an economic driver and an important part of education. Itâ&#x20AC;&#x2122;s the cultural cornerstone of what makes Charleston stand out.â&#x20AC;? cr bj

March 23 - April 5, 2015

www.charlestonbusiness.com 17

IN FOCUS: HOSPITALITY AND TOURISM

WINE & FOOD, continued from Page 17 ➤

afford to be in downtown Charleston on that weekend.” Hotel occupancy during last year’s festival was 92% in peninsular Charleston and 90% in the area at large, he said. “Cities love to have that.” Locals who attend have long complained about “the two P’s” — prices and parking, Smith said. This year’s festival added a dropped-price “locals day” on Sunday and included 40 events that were priced under $50. The festival also stressed oneon-one events with chefs and added food- and produce-related cultural excursions, to Wadmalaw Island, to an Asian grocery store, and onto a boat for a cruise of area waterways. Organizers branded the anniversary events with painted, lighted and topiary “X”-shaped signs, the Roman numeral for 10. The festival’s new social media hashtag #chswff trended nationally, Zoller said. “We have a community that is so aware of every new restaurant that opens and the new beer that’s being

Michael Mitchell Gallery is used as a backdrop for the North South East West event featuring chef Frank Stitt of Highlands Bar and Grill in Birmingham, Ala. (Photo/Andrew Cebulka Photography)

poured at Edmund’s Oast,” new festival director Gillian Zettler said. “They care about the food culture here. We wanted the festival to be inclusive and fun and to not take ourselves too seriously.” Board Chairman Johnny Wallace said, “The festival is in wonderful shape. We’ve sold $100,000 more in tickets than last year and we’re up $200,000 in corporate sponsorships. I wouldn’t want to see the festival get much bigger. Our goal is to make it

The Lighter Side of the South Lunch at Leon’s Oyster Shop featured Charleston chef Ari Kolender and chef Ben Towill of the Fat Radish in New York. (Photo/Andrew Cebulka Photography)

better.” In its first year under Zettler, the festival retained all its corporate sponsors and gained new ones, Wallace said. Among the new sponsors was the Bermuda Tourism Authority. The Bermudans came for one of the festival’s more unusual events: uncorking a bottle of wine recovered from the shipwreck of a Civil War blockade runner that sank off their coast in 1864.

They told the story of the unlikely find in a hidden boatswain’s locker on the skeleton of the iron-hulled sidewheel steamer Mary-Celestia, just 55 feet below the surface and one of the island’s most popular dive sites. In front of about 50 amused guests, wine experts tasted the cloudy, yellow-gray sulfurous liquid that came out of the bottle and declared it to be nasty, medicinal bilge water, with hints of alcohol and a saline finish. cr bj

www.charlestonbusiness.com

IN FOCUS: HOSPITALITY AND TOURISM

March 23 - April 5 , 2015

Charleston-area events by the numbers The numbers tell the story of the annual events that help drive the Charleston economy. The Business Journal editorial staff examined some of the largest generators event by event. Charleston International Film Festival Attendees: 7,400 Year the event started: 2008 One more thing: The 2014 festival featured 75 films, animations, documentaries, and shorts representing 11 countries around the world. Photo/Rick McKee

Charleston Antiques Show Attendees: 15,000* Year the event started: 2003 One more thing: Dealer Charles Edwin Puckett is bringing a Virginia-Florida Map circa 1606-1634 by Jodocus Hondius that predates Charleston and the Carolina colony. The engraving includes hand coloring. Photo/Liz Segrist

Photo/Family Circle Cup

Photo/Andrew Cebulka

Charleston Wine and Food Festival Attendees: 23,500 Year the event started: 2006 One more thing: More than 200 chefs participate in more than 100 events. Photo/The Chart Group

Charleston Fashion Week Attendees: 7,500 Year the event started: 2007 One more thing: The event has 1,400 working credentials (meaning tech people, hair, makeup, volunteers, staff). Saturday nightâ&#x20AC;&#x2122;s event was streamed live this year.

Fall Tours of Homes & Gardens Attendees: 5,000 Year the event started: 1976 One more thing: Requires the support of more than 100 homeowners in Charlestonâ&#x20AC;&#x2122;s historic district and more than 300 community volunteers who serve as storytellers and street marshals.

Cooper River Bridge Run Attendees/participants: 40,000 runners Year the event started: 1978 One more thing: The race had 700 runners in its first year.

Family Circle Cup Attendees: 88,000 Year the event started: 1973 in Hilton Head Island; 2001 in Charleston One more thing: 7,200 tennis balls are used throughout the tournament; 12,000 feet (about 2 1/4 miles) of string will be used on more than 400 tennis rackets Festival of Houses & Gardens Attendees: 15,000* Year the event started: 1947 One more thing: In 2014, visitors from five continents came to the festival to see nearly 150 houses.

Photo/Charleston County Parks

Holiday Festival of Lights Attendees: 236,000 over 52 nights Year the event started: 1990 One more thing: The festival features an estimated 2 million lightbulbs and 700 individual light displays. Within the first few weeks of the 2014 event, gatekeepers were able to count license plates from all 50 states on vehicles entering the park. Photo/The Chart Group

Lowcountry Oyster Festival Attendees: 10,000 Year the event started: 1983 One more thing: About 72,000 pounds of oysters are cooked during the oyster roast at Boone Hall Plantation.

March 23 - April 5, 2015 Photo/City of Charleston

IN FOCUS: HOSPITALITY AND TOURISM

Southeastern Wildlife Exposition Attendees/participants: More than 40,000 attendees, 300 exhibitors and 105 artists Year the event started: 1983 One more thing: The farthest place an artist has traveled from for SEWE is South Africa. The Dock Dogsâ&#x20AC;&#x2122; 40-by-20-foot tanks are filled with 27,000 gallons of water. Spoleto Festival USA Attendees: Around 60,000 Year the event started: 1977 One more thing: Ticket buyers from all 50 states come to see 147 performances over 17 days in 12 venues. Photo/Provided

Moja Arts Festival Attendees: 60,000 Year the event started: 1983 One more thing: MOJA has been repeatedly recognized as one of the top destination events in the Southeast region and attracts visitors from around the world. Sweetgrass Cultural Arts Festival Attendees: 7,300 Year the event started: 2005 One more thing: The festival includes a fashion show with Charleston School of the Arts students modeling clothing garments created by local sweetgrass basket makers. Photo/Ryan Johnson

North Charleston Arts Festival Attendees/participants: 30,000 Year the event started: 1982 One more thing: About 2,400 pieces of artwork (both 2-D and 3-D) were exhibited during the festival. Photo/The Chart Group

Taste of Charleston Festival Attendees: 9,000 Year the event started: 1980 One more thing: Fifty local restaurants offer tastings during the main event at Boone Hall Plantation. Photo/MIddleton Place Foundation

Plantation Days at Middleton Place Attendees: 531 Year the event started: 1970 One more thing: On average, Middleton Place presses about 300 stalks of sugar cane during Plantation Days, using a horse-powered cane press. This amount yields approximately 5 gallons of cane juice that will be boiled down into molasses. Photo/City of Charleston

Piccolo Spoleto Attendees/participants: 160,000 Year the event started: 1979 One more thing: The 24-by-36-foot mural of Andre the Giant installed on the bulkhead of the Francis Marion Hotel was the largest Andre mural ever created by Charleston native Shepard Fairey.

Photo/Town of Mount Pleasant

Town of Mount Pleasant Blessing of the Fleet Attendees: More than 15,000 Year the event started: 1988 One more thing: Ten commercial shrimping and fishing vessels out of Shem Creek participated and each received a $500 participation fee to help support their preparations for the season ahead. YMCA Flowertown Festival Attendees: Around 200,000 Year the event started: 1972 One more thing: The Summerville Family YMCA uses the proceeds to pay for memberships for people who cannot afford one. *Attendance combined for these events.

www.charlestonbusiness.com 19

www.charlestonbusiness.com

March 23 - April 5 , 2015

IN FOCUS: HOSPITALITY AND TOURISM

Area Attractions

Ranked by Average Annual Attendance

Company

Phone / Website Email

Fort Sumter National Monument 340 Concord St. Charleston, SC 29401

Single Adult Admission / Group Rates Available?

Description

Top Local Official(s)/ Year Founded

Annual Attendance

843-577-0242 www.nps.gov/fosu fosu_information@nps.gov

Tim Stone, Dawn Davis 1948

727,000

$19 Y

Ferries departing daily from Charleston and Mount Pleasant to tour the site of the opening battle of the Civil War

North Charleston Coliseum & Performing Arts Center 5001 Coliseum Drive North Charleston, SC 29418

843-529-5035 http://www.northcharlestoncoliseumpac.com/ IHaveaQuestion@northcharlestoncoliseumpac.com

Dave Holscher 1993

500,000

Vary per show Y

The North Charleston Coliseum is a 13,000 seat multipurpose arena, and North Charleston Performing Arts Center is a 2,300 seat proscenium theater

James Island County Park 871 Riverland Drive Charleston, SC 29412

843-795-7275 www.charlestoncountyparks.com/jicp customerservice@ccprc.com

Randy Woodard, Kevin Gillum 1990

438,589

$1 N

643-acre park with crabbing, fishing, biking, lagoon boating, dog park, playgrounds, shelters, climbing wall, cottages, campsites and challenge course

Wannamaker County Park 8888 University Blvd. North Charleston, SC 29406

843-572-7275 www.ccprc.com customerservice@ccprc.com

Edmonds Brown, Christine Volousky 1998

434,936

$1 N

1,015-acre park, two playgrounds, 20-foot play hill, picnic sites with grills, open meadows, paved trails, boat rentals, water park, meeting space

South Carolina Aquarium 100 Aquarium Wharf Charleston, SC 29401

843-577-3474 www.scaquarium.org -

Kevin Mills 2000

426,243

$24.95 Y

Home to North Americaâ&#x20AC;&#x2122;s tallest tank and South Carolina's only Sea Turtle Hospital

Exchange Park 9850 U.S. Highway 78 Ladson, SC 29456

843-572-3161 www.exchangepark.org denise@exchangepark.org

Michael Carney, Denise Massey 1979

400,000

Varies per event N

170-acre multipurpose event complex hosting a wide variety of special-event programming

Carolina Ice Palace 7665 Northwoods Blvd. North Charleston, SC 29406

843-572-2717 www.carolinaicepalace.com -

Matt Mons 1997

325,000

$6-$10 Y

Two National Hockey League size ice skating rinks, sports lounge, meeting rooms, pro shop, birthday party rooms, catering, figure skating, hockey

Edwin S. Taylor Folly Beach Fishing Pier 101 E. Arctic Ave. Folly Beach, SC 29439

843-588-3474 www.ccprc.com customerservice@ccprc.com

Mark Patrick 1995

302,304

$10 per vehicle N

Fishing pier, gift shop, restaurant, rental equipment available, tournaments, special events

Charleston RiverDogs 360 Fishburne St. Charleston, SC 29403

843-723-7241 www.riverdogs.com admin@riverdogs.com

Dave Echols 1996

300,000

$6-$20 Y

Minor League Baseball team, single-A affiliate of the New York Yankees; facility also hosts numerous non-baseball events, fundraisers and concerts

Fort Sumter Tours 360 Concord Street Suite 201 Charleston, SC 29401

843-722-2628 www.fortsumtertours.com sales@spiritlinecruises.com

Ian Harris 1961

300,000

19 Y

Fort Sumter Tours, daily tours departing from Liberty Square and Patriots Point

Boone Hall Plantation 1235 Long Point Rd. Mount Pleasant, SC 29464

843-884-4371 www.boonehallplantation.com info@boonehallplantation.com

William Harris McRae, Laura T Bowers, Rick W. Benthall 1681

275,000

$20 Y

One of America's oldest working, living plantations. Presents over 300 years of history, beauty and grace

Patriots Point Naval & Maritime Museum 40 Patriots Point Road Mount Pleasant, SC 29464

843-884-2727 www.patriotspoint.org info@patriotspoint.org

Mac Burdette, Bobby Kotlowski, Chris Hauff 1975

260,000

$18 Y

Patriots Point is home to the USS YORKTOWN, USS LAFFEY, the interactive Vietnam Experience Exhibit and the Medal of Honor Museum

Coastal Carolina Fair 9850 Highway 78 Ladson, SC 29456

843-572-3161 www.coastalcarolinafair.org info@coastalcarolinafair.org

Denise Massey, Michael Carney 1957

229,113

$8 N

Fair that runs for 11 days starting the last Thursday in October

Mount Pleasant Pier 71 Harry Hallman Blvd. Mount Pleasant, SC 29464

843-762-9946 www.charlestoncountyparks.com customerservice@ccprc.com

Chris Pounder 2009

200,690

Admission Free/$8 fishing fee Y

1,250-foot long pier at the foot of the Ravenel Bridge featuring covered pavilion, cafe, gift shop, fishing equipment rentals, seating, restrooms

Charleston Harbor Tours & Events 10 Wharfside St. Charleston, SC 29401

843-722-1112 www.charlestonharbortours.com sales@charlestonharbortours.com

Drew K Yochum, Beth Scribner, Robert Scribner 1908

200,000

N/A Y

Harbor Tours, Combination Tours, Group Tours, Corporate Events, Weddings, Social Events. Three vessels of varying sizes to accommodate events

Magnolia Plantation & Gardens 3550 Ashley River Road Charleston, SC 29414

843-571-1266 www.magnoliaplantation.com events@magnoliaplantation.com

Jessica Cruz 1676

200,000

$15 Y

Pre-Revolutionary War plantation house with early American antiques, biblical garden, antebellum cabin, train tour, nature boat tour, slave cabin tour

Palmetto Islands County Park 444 Needlerush Parkway Mount Pleasant, SC 29464

843-884-0832 charlestoncountyparks.com/picp customerservice@ccprc.com

Jim Hoy 1979

189,606

$1 N

943-acre nature-based park with playgrounds, trails, boating, biking, shelters, water park, special events

Isle of Palms County Park 1 14th Avenue Isle of Palms, SC 29451

843-886-3863 www.charlestoncountyparks.com customerservice@ccprc.com

Cynthia Wilson, Cole Thomas 1996

158,027

$10 per vehicle N

Dunes, boardwalk, showers, restrooms, lifeguards, vending, 350 parking spaces

Whirlin' Waters Adventure Waterpark 8888 University Blvd. North Charleston, SC 29406

843-572-7275 www.splashparks.com Charlestoncountyparks@ccprc.com

Edmonds Brown, Mindy Perrault 2001

149,000

$19.99 Y

27,000-square-foot wave pool, lazy river, treehouse play structure, kiddie pool area, seven-story multislide complex, racer slides, vending, birthday parties

Because of space constraints, only the top-ranked companies are printed. For a full list of participating companies, visit www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com, fax to 843-531-5402 or go to www.tinyurl.com/joinourlists.

March 23 - April 5, 2015

www.charlestonbusiness.com 21

IN FOCUS: HOSPITALITY AND TOURISM

Area Attractions

Ranked by Average Annual Attendance

Company

Phone / Website Email

The Charleston Museum 360 Meeting St. Charleston, SC 29403

Single Adult Admission / Group Rates Available?

Description

Top Local Official(s)/ Year Founded

Annual Attendance

843-722-2996 www.charlestonmuseum.org info@charlestonmuseum.org

Susan McKellar, Carl P. Borick 1773

126,071

$12 Y

America's first museum, showcasing a variety of cultural and natural history artifacts relating to the South Carolina Lowcountry

Charles Towne Landing State Historic Site 1500 Old Towne Road Charleston, SC 29407

843-852-4200 www.charlestownelanding.travel ctlandingsp@scprt.com

Rob Powell, Jayson Sellers 1970

120,000

$10.00 Y

Birthplace of the Carolinas. Charleston's largest natural habitat zoo, costume interpretation, 17th century trading ship, picnic area, bike rentals

Children's Museum of the Lowcountry 25 Ann St. Charleston, SC 29403

843-853-8962 www.exploreCML.org info@explorecml.org

Beth Kerrigan 1995

120,000

8 Y

Nine interactive and hands-on exhibits, including a two-story Medieval Castle, a pirate ship and a dedicated Art Room

Kiawah Beachwalker Park 8 Beachwalker Drive Kiawah Island, SC 29455

843-768-2395 charlestoncountyparks.com customerservice@ccprc.com

Tif Miller 1976

102,816

$10 per vehicle N

Beach access park with 300 feet of ocean frontage, dressing areas, outdoor showers, restrooms and seasonal lifeguards

Fort Moultrie 1214 Middle St. Sullivan's Island, SC 29482

843-883-3123 www.nps.gov/fosu FOSU_Information@nps.gov

Tim Stone, Dawn Davis 1960

102,000

$3 N

History of American seacoast defense from 1776-1947; visitor center with museum exhibits, film and bookstore

Middleton Place 4300 Ashley River Road Charleston, SC 29414

843-556-6020 www.middletonplace.org info@middletonplace.org

Charles HP Duell, M. Tracey Todd 1741

100,000

28 Y

A National Historic Landmark and home to Americaâ&#x20AC;&#x2122;s Oldest Landscaped Gardens

SpiritLine Cruises and Events 360 Concord St., Suite 201 Charleston, SC 29401

843-722-2628 www.spiritlinecruises.com sales@spiritlinecruises.com

Ian Harris 1961

100,000

$59.53 Y

Fleet is available for private charters & dinner cruises

James Island County Park Splash Zone 871 Riverland Drive James Island, SC 29412

843-795-7275 www.splashparks.com charlestoncountyparks@ccprc.com

Randy Woodard, Mindy Perrault 1995

79,000

$11.99 Y

Two 200-foot slides, lazy river, Caribbean play structure, concessions, kiddie pool, lockers, lifeguards, vending

Charleston Tea Plantation 6617 Maybank Highway Wadmalaw Island, SC 29487

843-559-0383 www.charlestonteaplantation.com jknight@rcbigelow.com

Bryn Riley, Jane Knight, Preston Wilson 2003

70,000

Factory tour free; trolley ride $10 Y

Tea plantation with informational tours of the on-site factory and trolley rides designed to educate the public on the growing and processing of tea

Old Santee Canal Park 900 Stony Landing Road Moncks Corner, SC 29461

843-899-5200 www.oldsanteecanalpark.org parkinfo@santeecooper.com

Mary S. Bell 1989

60,951

$3 Y

195-acre park on America's first canal, boardwalks and trails lead through Biggin Creek; 11,000-square-foot interpretive center

Charles Pinckney National Historic Site 1254 Long Point Road Mount Pleasant, SC 29464

843-881-5516 www.nps.gov/chpi FOSU_Information@nps.gov

Tim Stone, Dawn Davis 1990

53,000

Free N

Country estate of Charles Pinckney; Constitution history, archaeology, African-American history

Charleston Stage 135 Church Street Charleston, SC 29401

843-577-7183 www.charlestonstage.com email@charlestonstage.com

Julian Wiles Jr., Marybeth Clark, Brian J. Porter 1978

51,740

$43.50 - $57.50 Y

South Carolinaâ&#x20AC;&#x2122;s largest professional theatre company in residence at Dock Street Theatre, providing plays, musicals and youth productions

Cypress Gardens 3030 Cypress Gardens Road Moncks Corner, SC 29461

843-553-0515 www.cypressgardens.info webcyp@berkeleycountysc.gov

Dwight Williams, Heather Graham 1931

50,000

$10.00 Y

Features unique adventures including boat rides on a black water swamp, 3.5 miles of walking trails, butterfly house, swamparium & Heritage Room.

Edmondston-Alston House 21 E. Battery St. Charleston, SC 29401

843-722-7171 Edmondston-Alston.com vmizel@middletonplace.org

Virginia Mizel 1825

50,000

$12.00 Y

Daily tours, reception and dinner space availabile

The Nathaniel Russell House 51 Meeting St. Charleston, SC 29401

843-724-8481 www.historiccharleston.org/russell -

Winslow Hastie, Michelle Palmore 1947

50,000

$12 Y

Plasterwork ornamentation, geometrically shaped rooms, free-flying staircase, garden

Calhoun Mansion 14-16 Meeting St. Charleston, SC 29401

843-722-8205 www.calhounmansion.net calhounmansion@yahoo.com

Frankie A. Villalta 1876

45,000

$16 N

The largest privately owned house museum on the Charleston peninsula

Palmetto Islands County Park Splash Island 843-884-0832 444 Needlerush Parkway www.splashparks.com Mount Pleasant, SC 29464 customerservice@ccprc.com

Jim Hoy, Mindy Perrault 1994

40,838

$7.99 Y

200-foot slide, Cyclone swirling water ride, 16-foot otter slide, kiddie pool, sprays, waterfalls, geysers, vending

Irvin-House Vineyards & Winery 6775 Bears Bluff Road Wadmalaw Island, SC 29487

843-559-6867 www.charlestonwine.com fran@fireflyvodka.com

Fran Collins 2003

40,000

$5 tastings Y

Winery

Friends of the Hunley, Inc. 1250 Supply St. N. Charleston, SC 29405

843-743-4865 www.hunley.org correia@hunley.org

Kellen Correia 1997

39,000

$16.00 Y

The H. L. Hunley was a submarine of the Confederate States of America that played a small part in the American Civil War

www.charlestonbusiness.com

March 23 - April 5 , 2015

At Work:

People, places and happenings across the Lowcountry

Viewpoint 27

People in the News

Business Digest

LAW

Clemson Restoration Institute honored by engineers group The Clemson University Restoration Institute in North Charleston received the Engineering Excellence Award from the American Council of Engineering Companies of South Carolina. The institute was officially recognized as an award winner in the “building and technology systems” category at the 2015 Engineering Excellence Awards Gala at the Columbia Museum of Art. The award cited work done by Clemson on the SCE&G Energy Innovation Center. The Clemson University Restoration Institute was recognized for its work on the SCE&G Energy Innovation Center.

Hussey Gay Bell drops DeYoung from company’s name

Engineering, consulting, design and development firm Hussey, Gay, Bell & DeYoung has changed its name to Hussey Gay Bell. The name is trademarked under which the family of Bell Cos. operates, with offices in Savannah, Atlanta, Charleston, Columbia and Riyadh, Saudi Arabia. According to the company, the decision to drop “DeYoung” was the result of a client survey in which the company learned it was most recognized and most often referred to as “Hussey Gay Bell.”

Carolina One to handle sales of single-family homes in Mixson

Carolina One Real Estate will represent the Mixson development in North Charleston as primary real estate agents of the first series of completed single-family homes. Mixson currently has three units available, with an additional 20 to be completed this year. Community manager Marcos Vargas of Carolina One Real Estate’s New Homes division will lead the on-site sales office and will lead single-family home sales. Mixson will have 300 single-family homes, town houses and condominiums when it is completed.

Heritage Trust earns 5-star rating from BauerFinancial

Heritage Trust Federal Credit Union has earned BauerFinancial’s 5-Star Superior rating for strength and security. BauerFinancial Inc. has been evaluating and rating credit unions since 1983. A

5-Star Superior rating indicates that Heritage Trust Federal Credit Union is one of the strongest in the nation, excelling in capital, loan quality, profitability and other areas. The credit union, established in 1955, currently operates through 12 branch offices serving various employer groups throughout Charleston, Dorchester, Colleton and Berkeley counties.

Building Arts College receives power tool donation from Makita

The American College of the Building Arts has received power tools, equipment and accessories valued at more than $20,000 from Makita USA. The products will be used to support training in the college’s six craft specializations and for outfitting the shops at the college’s new main campus, currently under renovation at 21 Magazine St. in Charleston.

Lowcountry marinas receive federal Fish & Wildlife grants

U.S. Fish & Wildlife Service announced the recipients for the fiscal year 2015 Boating Infrastructure Grant program, including five grants for recreational boating given to S.C. marinas and municipalities in the Tier 1 and Tier 2 categories. The Charleston City Marina was awarded a grant in Tier 1, and the Bohicket Marina received a grant from Tier 2. The Charleston City Marina will receive $34,698 for replacement of utility pedestals, electrical receptacles, threepole breakers and nine fuel hoses along transient slips. Bohicket Marina will receive $833,120 to extend the existing T-head dock, add and widen other slips,

add three-phase power and high-speed in-slip fueling for larger vessels, renovate several upland facilities including the laundry and restrooms and create a Transient Boater Welcome Center.

Thomas & Hutton honored for engineering excellence

The American Council of Engineering Companies of South Carolina recognized two Thomas & Hutton projects in its 2015 Engineering Excellence Award program. Thomas & Hutton won an Engineering Excellence Award in the Energy Category for its work on the Colleton Solar Farm project in Walterboro and was a state finalist in the Studies, Research and Consulting Category for the Forest Acres Drainage Improvement Project in Charleston.

Art of Health opens on Johns Island

Art of Health celebrated its grand opening Feb. 26 with a ribbon-cutting at its new office at 3069 Maybank Highway on Johns Island. Art of Health will specialize in chiropractic care and corrective exercises.

SBA seeking award nominations

The U.S. Small Business Administration is seeking nominations for its annual Tibbetts Awards and Small Business Innovation Research Hall of Fame Awards. The deadline is 11:59 p.m. April 10. The Tibbetts Awards are presented to small businesses, support organizations and See BUSINESS DIGEST, Page 26 ➤

Carlock, Copeland & Stair LLP has hired Douglas MacKelcan and promoted Laura Paton to counsel. MacKelcan has experience in civil litigation, alternative dispute resolution and licensure matters. His practice involves the defense of professionals in legal, accounting and real estate malpractice lawsuits as well as directors and officers of homeowners associations. Paton is a member of the firm’s construction litigation and general liability practice groups and serves in the areas of insurance defense, personal injury defense and premises liability defense. Lauren J. Schumann has joined Steadman Law Firm P.A. as an associate. She will focus her practice primarily in the areas of bankruptcy and mortgage loan modification. Elizabeth Scott Moise, a partner in Nelson Mullins Riley & Scarborough LLP’s Charleston office, has received a G. Dewey Oxner Jr. Moise Mentor of the Year Award from the S.C. Supreme Court Chief Justice’s Commission on the Profession, honoring exemplary service and demonstrated professional excellence as a mentor to a new lawyer participating in the Supreme Court’s Lawyer Mentoring Program. Moise’s practice is focused in the areas of insurance coverage and bad faith, consumer finance, class action litigation, and product liability defense.

HEALTH CARE Dr. John Kelley, director and owner of Private Therapy Services Physical Therapy & Sports Medicine Center, has earned the designation of ImPact Trained Athletic Trainer by completing concussion care management training. Immediate Post-Concussion Assessment and Cognitive Testing is the most widely used and scientifically validated computerized concussion evaluation system available. Christine “Chris” Thornton has been named chief financial officer at Pain Specialists of Charleston. She was previously a staff accountant for the organization. See PEOPLE, Page 25

➤

www.charlestonbusiness.com

March 23 - April 5 , 2015

Spreading the wealth T

here is sufficient evidence from a variety of sources to conclude that in the past decade the share of income and wealth going to the richest Americans has increased while those at the bottom are less well-off. The reasons this is happening are not well understood.

Income

Income inequality can widen in a variety of different ways. If income is rising for all Americans but rising more rapidly for the top 5% than for the vast majority, that is generally not regarded as a problem. Indeed, that was the largely the case from 1989 until the recession. From 1989 through 2004 income for the top 5% rose 22%, income for the next 45% rose 17%, and for the bottom 50% it rose 19%. The recession changed all that. From 2004 through 2013 income for the top 5% rose 31%, but for the next 45% it declined 7%, and for the bottom 50% it fell 9%. To have income for those at the top rising while income for the vast majority of Americans is falling is inconsistent with the notion of equal opportunity for all.

Stephen D. Slifer

Wealth

The situation with respect to wealth was similar between 1989 through 2004. Wealth for the top 5% rose 76%, for the next 45% it climbed 53%, and for the bottom 50% it increased 39%. Rising home values benefited everyone and higher net worth families received additional value from the rising stock market. Since 2004 wealth for those in the top 5% has increased 6%, but for the next 45% it declined 14%, and for the bottom 50% it plunged 60%. Specifically, wealth for the lower half of the distribution declined from a peak of $31,000 dollars in 2007 to just $11,000 by 2013. A Fed survey indicates that one-fourth of these families reported zero or negative net worth because they owed more on their home than it was worth. Another major source of wealth for many families is financial assets which include stocks, bonds, mutual funds and private pensions. Families in the top 5% own almost two-thirds of all these financial assets while families in the next 45% own the remainder. Those in the bottom half own just 2% of the pie.

Causes

What is going on? Most economists agree that labor-saving technology has eliminated many manufacturing and service sector jobs. There is also general agreement that globalization has allowed U.S. firms to take advantage of low cost workers overseas at the expense of more expensive

workers in this country. These developments eliminate jobs in the short term, but create many more jobs longer term once workers acquire the skills necessary for these new positions. Other possible causes are far more controversial. Low capital gains tax rates tend to benefit wealthier individuals. True, but the low rate on capital gains is also meant to encourage savings and investment, which creates jobs and helps the economy grow. Low inheritance taxes allow the rich to pass along their wealth from one generation to the next. But the income that was used to generate that wealth has already been taxed. Should it be taxed again when it is passed to the next generation? Others are quick to blame the decline of union membership. No doubt unions can attain higher wages for their workers. But that implies higher labor costs for heavily unionized firms relative to their non-union counterparts. In a global marketplace with low wages available elsewhere, unionized firms tend to lose market share and might ultimately be forced out of business, which results in a significant number of job losses. In the longer term did the workers really benefit? Probably not. It is also important to recognize that union membership has been falling for the past 50 years. Even the Federal Reserve is being blamed. By holding short-term interest rates near 0%, it has helped support the stock market which, as we have seen, benefits wealthier individuals. But if the Fed had raised rates sooner, the economy might not have been able to withstand it and possibly dipped back into recession. We suspect that those arguing that the Fed is responsible for the wider income gap would not have been happy if the Fed had chosen to raise interest rates a year ago. Then there is the question of good, old-fashioned greed. While not confined to any one sector, the financial industry instantly comes to mind. Young people today are not choosing to join investment banking firms because of some desire to enhance the greater good of society, but because of the lucrative financial rewards. Is that bad? Can you blame them? Corporate leaders receive multi-million dollar payouts even though their firm underperforms. Similarly, they receive huge payments when they are ousted by the board. Are those practices defensible? There can be little doubt that income and wealth for the top 5% has increased in the past decade while living standards for the majority have been stagnant. Because of the numerous causes, it is difficult to find a solution. But this is an important issue. The American economy is based on the idea of equal opportunity for all. That does not appear to be the case in todayâ&#x20AC;&#x2122;s society. cr bj

Reach economist Stephen D. Slifer at steve@numbernomics.com.

March 23 - April 5, 2015

www.charlestonbusiness.com 25

People in the News

Cole

Rohrer

The new chapter of the National Academy of Inventors at the Medical University of South Carolina inducted 52 charter members, including Medical UniverVournakis sity of South Carolina President Dr. David Cole, at its inaugural reception. In addition, the chapter recognized two NAI National Fellows from MUSC, professor Barbel Rohrer, an endowed chair in the Department of Ophthalmology, and John Vournakis, a graduate studies professor. Gail W. Stuart, dean of the Medical University of South Carolina College of Nursing, has been appointed to a four-year term on the National Advisory Council of the Substance Abuse and Mental Health Services Administration, the agency within the U.S. Department of Health and Human Services that leads public health efforts to advance behavioral health. Stuart, an expert in psychiatric nursing, is the only nurse currently serving on the national board. She is a professor in the MUSC College of Medicine, in the Department of Psychiatry and Behavioral Sciences. Stuart’s clinical and research interests involve the study of depression, anxiety disorders, clinical outcomes and mental health delivery systems. Rebekah Faulk has been named director of marketing and public relations for Trident Health. She will serve as spokeswoman for public relations and lead marketing and Faulk branding efforts through the development of social media strategies, internal and external communication plans and website management. Faulk previously served as manager of internal communications at Georgia Southern University in Statesboro, Ga. She also worked as a public relations specialist at Floyd Medical Center in Rome, Ga., for nearly four years. An alumna of Georgia Southern, she earned a Bachelor of Science degree in public relations in 2005.

Dr. Cathryn Caton has joined Select Health of South Carolina as a medical director. Caton has more than five years of experience as a hospitalist and Caton will oversee Select Health’s utilization review, care management and provider education areas. She previously worked at the Medical University of South Carolina as an attending physician and medical director of a medical and surgical unit. Caton earned an undergraduate degree in business management at Hampton University in Hampton, Va. She completed her medical degree, internship and residency in internal medicine at MUSC. She is board-certified in internal medicine.

BUSINESS SERVICES PST has promoted Kim Holcombe to vice president of training and marketing, Lisa Zakis to general manager and Tess Craven as a customer support executive. Holcombe, who has been director of training since 2008, oversees the company’s application training, soft skills training, curriculum selection and development, online learning, and marketing efforts. Zakis served as customer service and office manager since 2011 and will now oversee the day-to-day operations of the company. Craven is charged with overseeing client support services, quality assurance and testing services. Cat Taylor has joined ByrdHouse Public Relations LLC as a partner. Taylor was an intern with the Charleston firm while attending the College of Charleston.

CONSTRUCTION Professional Builders Supply LLC has named Dwayne Farrell as Charleston market president, Diana Wood as credit manager and Terry Whirlow as purchasing, pricing and inventory manager. B.G. Flanders has joined Statesville Roofing & Building Restoration in the company’s Charleston office. He will work in sales and project estimates and will assist building owners in Flanders setting up maintenance plans. Flanders has an extensive background in commercial, residential and historic building restoration and will cover the state east from Columbia to Charleston and north to Myrtle Beach.

Matt Grayson has joined Palmetto Construction Group as vice president of business development. Grayson has extensive real estate development and Grayson construction experience, including work on large, urban, mixed-use projects; marinas; The Sanctuary Hotel on Kiawah Island; the Olympic Games in Atlanta; and downtown Daniel Island. He has performed executive-level work in operations, strategy, business development and international ventures. Most recently, Grayson served as director of operations for Darkness to Light and vice president of development for IBG Partners.

ACCOUNTING Tyler K. Gibbons has been named a partner at the accounting firm of Riser, McLaurin & Gibbons LLP in North Charleston. A graduate of the University of South Carolina, Gibbons had been an associate with the firm for the past five years, concentrating his practice in tax and accounting services. Mark D. Moore has joined the Charleston office of Moore, Beauston & Woodham LLP accounting and consulting firm. Moore has a bachelor’s Moore degree in business administration and accounting from Charleston Southern University and a Bachelor of Science in practical theology with New Testament Greek from Southeastern University. He is a CPA candidate and a member of the S.C. Association of Certified Public Accountants.

TECHNOLOGY Michael Finnell has joined CMIT Solutions of Charleston as an information technology support specialist. Liz Mitchum has joined Bluetowne as marketing and business development manager. She will focus on the information technology firm’s strategic marMitchum keting initiatives. She has 11 years of experience in marketing and partner relations and worked with eGroup and QuickFarm in similar roles.

Chris McClellen has joined BoomTown as chief technology officer. He will help the firm develop technology strategy, grow the engineering team and accelerate the developmtent and delivery of new real estate software. He was formerly senior vice president of digital technology at The Weather Channel. Geocent has hired Craig Gooding as a senior systems administrator, William “Sandy” Lee as a senior software engineer and John McCarron as a senior systems administrator in the company’s Charleston office.

ARCHITECTURE / ENGINEERING Hunter Smith has joined SGA Architecture as marketing coordinator in the Charleston market. Smith graduated from the College of Charleston with a bachelor’s degree in communication. She previously served 27 months in the Peace Corps as an English project specialist and teacher in the Philippines. Gregory H. Tedder has been hired as business development manager for ECS Carolinas in Charleston. He will focus on the geotechnical and materials Tedder testing fields for the engineering and construction firm. He has eight years of experience in those fields and previously worked designing high-voltage overhead and underground transmission lines.

HOSPITALITY Kelly Sherrill has joined Batch Charleston as local director and curator. She will be responsible for locating culinary goods and artisan items in the LowSherrill country for inclusion in Batch Charleston’s monthly subscription boxes and other gift offerings. Brent Gresham, general manager of the French Quarter Inn, has been named Lodging Manager of the Year by the S.C. Restaurant & Lodging Association, honoring exemplary service in the hospitality industry to customers, the community and the company. Gresham graduated among the top of his class from the School of Hotel, Restaurant and Tourism Management at the University of South Carolina and is a graduate of the Ecole Hoteliere de Lausanne in Switzerland.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

www.charlestonbusiness.com

March 23 - April 5 , 2015

Business Digest individuals who have leveraged a Small Business Innovation Research and Small Business Technology Transfer investment in a way that has generated a measurable return in value to small business innovation and the national economy.

Purpose Money Assistant Manager Andrew Braun (from left), District Manager Pamela Budlong and Manager Vicki Butler; Lisa Wallace, director of administrative services and clerk and treasurer for the Town of Summerville; Rita Berry, president and CEO of the Greater Summerville/Dorchester County Chamber of Commerce; and Cherell Skelton, customer service representative for Purpose Money.

Purpose Money celebrates grand opening in Summerville

The Greater Summerville/Dorchester County Chamber of Commerce and Purpose Money held a ribbon-cutting cere-

mony to celebrate the store’s grand opening at 710 Bacons Bridge Road, Suite E, in Summerville. Purpose Money is a financial institution specializing in noncredit-based automotive title loans, as well as tax preparation and filing. Money Gram service is also offered, including bill payment and sending and receiving of money.

company, which manufactures screen, digital and pad printing inks, grew significantly in 2014, requiring a capital investment in a facility that will provide additional space and resources for the multinational corporation. The $1 million investment includes formulating and testing labs, a conference center and a training facility.

Gallivan, White & Boyd P.A. opens Charleston office

Agape Hospice opens new office in North Charleston

Gallivan, White & Boyd P.A has opened a new office in Charleston. Founded more than 60 years ago, the firm also has offices in Columbia, Greenville, Anderson and Charlotte. Mikell Wyman has joined the firm as a partner and Blakely Molitor has joined as an associate in the new office. Practice areas will include defense of employers, insurance companies, self-insured corporations, third-party administrators, and claims servicing agencies in workers’ compensation matters.

Marabu buys North Charleston building to expand facilities

Marabu North America has finalized the purchase of a building at its headquarters in North Charleston for the purpose of expanding facilities and capabilities. The

Agape Hospice has opened a new Charleston-area office with a new executive director. The new office is located at 2680 Elms Plantation Blvd., Suite 101, in University Place in North Charleston. Matt Whitehead was named the new executive director of the office. He attended Winthrop University, where he earned a bachelor’s degree in health care administration. Whitehead has been employed by Agape Hospice’s parent company, Agape Senior, since 2009.

BlueCross BlueShield gives $1M grant to CSU nursing program

The BlueCross BlueShield of South Carolina Foundation has awarded a threeyear, $1 million grant to the Charleston Southern University College of Nursing

to fund scholarships for nursing students who commit to working in community or home-based settings in South Carolina upon graduation. The grant will fund up to 18 Community and Home Health Nursing Scholarships for CSU junior and senior nursing students per year for three years beginning this fall. In addition, several of those students will be eligible for a scholarship for full room and board at CSU.

MUSC College of Nursing ranked 14th in research funding

The MUSC College of Nursing has been ranked 14th out of 63 U.S. nursing schools on the National Institutes of Health’s research funding list, marking the fifth year the college has achieved a national ranking. Rankings are established by the amount of research dollars awarded to each school of nursing. In 2014, MUSC College of Nursing research faculty attracted more than $2.6 million in federal grants for research. These funds enable the school to continue its efforts in areas such as leg ulcer prevention, wound care, spinal cord injuries, weight loss, enhancing kidney donation and health literacy and disease management in black people.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

Viewpoint:

Views, perspectives and readers’ letters

Fix S.C. State University or shut it down M

any loyal supporters of S.C. State University have been forced to make painful choices about the state’s only public historically black college in recent weeks. U.S. Rep. James Clyburn, a graduate of S.C. State, last month called for President Thomas Elzey’s dismissal, and on Feb. 23, the board of trustees placed the embattled president on administrative leave. On March 16, multiple media outlets reported that the trustees voted to fire Elzey. The trustees themselves likely will be dismissed by the General AssemJames T. bly before the lawHammond makers adjourn in May. The Orangeburg campus has an important legacy in a state with a less-than-stellar record of providing opportunities for its minority population. The predominantly black student population, drawn to enroll there because of the school’s traditions, has been ill-served by trustees and administrators who allowed its education values to wither and a culture of mismanagement and corruption to flourish. Former S.C. State board chairman Jonathan Pinson was convicted last year of abuse of position and racketeering. He is awaiting sentencing and faces the possibility of up to 18 years in federal prison. The inexorable decline in the school’s reputation has eroded the pool of high school graduates who seek admission to the historically black university, leading to a declining enrollment. That has meant shrinking student fees, which has contributed to a budget crisis that Elzey has been unable or unwilling to solve. Meanwhile, as the accompanying chart shows, S.C. State is failing at its most important mission: to graduate young people with a college degree. Only 14% of students who enroll at the state university in Orangeburg earn an undergraduate degree in four years. And when the data window is expanded to six years, only one out of three S.C. State students earns a bachelor’s degree. The financial and academic woes of this institution place its accreditation at risk, an action that would be just short of a death sentence. S.C. State has for too long been allowed to fail its students academically, wasting taxpayers’ and students’ money to support an administration and faculty that

fall far short of the sort of institutions this or any other state should be supporting. There appears to be a window this year when black and white lawmakers can agree that the money pit in Orangeburg must be changed, dramatically, or cease to exist. The current students at S.C. State — and S.C. taxpayers — would be better served if the General Assembly simply gave each of those students a voucher good for their tuition at any other state university, and closed the institution during a thorough review of its operations, its inadequacies and its virtues. At the end of that process, the General Assembly could decide whether S.C. State University should reopen as a “university”; should be reconstituted as some kind of specialized school or institute; or should be allowed to go out of business permanently. South Carolina’s other state universities could easily absorb the number of students currently enrolled at S.C. State. And statistics suggest they would be far more likely to earn a college degree at any of those other institutions. There are many reasons that graduation rates vary from institution to institution. Some of the gap is accounted for simply through the process of students transferring to other institutions. The accounting process for graduation statistics is not perfect. And some schools have larger percentages of students who must work or attend school part time, factors that push many students into the six-year plan. But when two-thirds of a school’s students have failed to earn a degree by the end of the sixth year, it is reasonable to ask whether that institution should continue to receive millions of dollars to support faculty and staff who are not doing their jobs.

GRADUATE RATES OF SOUTH CAROLINA PUBLIC UNIVERSITIES

4-year 6-year

S.C. State University

14%

34%

Francis Marion University

16%

41%

Coastal Carolina University

27%

46%

Winthrop University

35%

56%

College of Charleston

52%

65%

USC-Columbia

54%

73%

Clemson University

59%

83%

The Citadel

62%

69%

Source: S.C. Commission on Higher Education

An analysis last year by The State newspaper showed that while enrollment at half of South Carolina’s state-assisted universities was growing at double-digit rates, two had experienced declining enrollment. Winthrop University in Rock Hill saw its enrollment dip 3.9%. But at S.C. State, enrollment had plummeted 29.8% between 2007 and 2013. Students are voting with their feet — and their tuition money — by choosing other schools. S.C. State’s student population peaked in fall 2007 at 4,644. Today its enrollment hovers around 3,000. And the loss of the tuition and fee revenue from those missing students is a large part of the school’s financial problems. Apologists for S.C. State will cite several superlatives in arguing for forgiveness and a new lease on life for the institution. Those will include sports traditions and a good record of sending football players to professional teams. (South Carolina has no business running a farm team for the NFL.) And they will cite its role as a historically black university. (Its neighbor Claflin University, a private HBCU, has set high academic goals and has earned national

recognition for its programs.) And the school has a laudable record of black students who have risen high in the ranks of the U.S. military. (South Carolina already has a military college and does not need another one.) It is time to stop making excuses and fix S.C. State University or consign it to the history books. It is time to admit that while it served a laudable purpose in the past, it has forfeited its right to a future in S.C. higher education. If closing the institution for good is politically impossible, then I urge everyone concerned to vow to accept nothing less than excellence in a reconstituted S.C. State University. A 34% six-year graduation rate should no longer be acceptable. Students and taxpayers deserve better. Do not settle for more mediocrity, even if it means firing every employee of the college and refilling their positions with people committed to a program of study of which the state can be proud. A new mission for the college should not be out of the question. Every program at the school should be put under a magnifying glass. Only those programs that benefit the students and the state should survive. And they should be kept only if they can become national leaders in their field. Fix S.C. State University or close it. Reach James T. Hammond by email at jthammond46@gmail.com.

We want to hear from you Write: Andy Owens, Managing Editor Charleston Regional Business Journal, 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 Email: editorial@scbiznews.com

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March 23 - April 5 , 2015