May 4 - May 17, 2015 • www.charlestonbusiness.com
Volume 21, No. 10 • $2.00
Tech startups want flexible commercial options By Liz Segrist
Biggest markets for port cargo
Data show largest commodities, trading partners for port. Page 15
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lsegrist@scbiznews.com
even moves in three years. That’s how many times Good Done Great has relocated its Charleston operations since 2012 — and it’s not the only Charleston tech company to have to make multiple moves.
Good Done Great President Earl Bridges started the software company from his Daniel Island home along with company CEO David Barach, who runs the Tacoma, Wash., office. They created software that would make charitable giving easier for employees at Fortune 500 companies like clients IBM, Monsanto and Staples. Bridges looked at space at the Charleston
Company asks students. Here’s how they answer. Pages 2, 16
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The Machinists union could come back for another election in six months. Page 3
Volvo or not?
Upfront............................. 2 In Focus: Ports, Logistics and Distribution............ 15 List: Motor Freight Companies.................... 24 At Work.......................... 27 Business Digest.............. 27 Hot Properties................. 29 People in the News......... 30 Viewpoint........................ 31
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By Ashley Heffernan
Union cancels vote at Boeing
INSIDE
See OFFICE NEEDS, Page 8
Businesses see trends in office, wireless devices
What do you want from a job?
Filing shows Berkeley County has economic development prospect that could bring 4,000 jobs. Page 5
Digital Corridor in 2012. He moved in that day and hired his first employee that week. The company operated out of five different offices altogether within Flagships 1 and 2 in downtown Charleston before relocating to a 2,500-square-foot office on Daniel Island. “I remember walking in and thinking that
IN THE Mix Madam Adam bandmates Scott Gould (left) and Alan Price started their own recording studio in West Ashley to distance themselves from major labels and create homegrown music. Page 10
Photo/Hybrid Audio Solutions
aheffernan@scbiznews.com
he days of having to charge a mobile phone with a cord, dial into a conference call with a phone and send a presentation to colleagues via email might be numbered. Laura Blackmer, senior vice president of business-to-business sales for Sharp Electronics Corp., gave a presentation about the future of office work during the North Charleston Business Expo last month. About 175 exhibitors came for the daylong conference that drew hundreds of businesses and entrepreneurs to hear speakers and see new technology and office trends. Sharp is developing a cloud-based platform, tentatively called Centro, that will gather details from a Microsoft Outlook calendar, a Word document or a Prezi presentation, and organize it to help employees manage workflow. Blackmer described what she encounters each morning when she arrives at work and said the experience is practically the same for many office employees around the country. See SHARP, Page 6
Conference puts focus on manufacturing in S.C.
State leaders, manufacturers, developers, job seekers and students flood Greenville’s TD Convention Center for conference. Pages 16-17
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Upfront: What if someone asked what you wanted in an employer?
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hat would you say? SEW-Eurodrive asked that very question of high-school students attending the SCRA Career Fair at the S.C. Manufacturing Conference and Expo last month in Greenville. Assembly trainer Jared Scott said he was blown away by some of the answers, but just asking the question created a buzz around the SEW-Eurodrive booth at the conference. SEW-Eurodrive is a Germany-based company with its U.S. headquarters and manufacturing facility in Lyman. The company makes gear reducers, adjustable speed drives, electric motors, brakes and electronic controls for a number of industry sectors. Students used sticky notes and pens to answer the question and posted them on a board at the conference. We’re publishing a selection from the more than 100 responses received. More than 1,000 students attended the fair, which was designed to introduce high-schoolers to opportunities in manufacturing. See more on Page 16.
Briefs, brights and business news
“Work from home controlling robots on production equipment.” -BRANDON
“Work in the metal industry, use CNC machinery, work with my hands.” -JONATHAN
Photo/Andy Ow
ens
“I want a company that will treat me the way they would want to be treated.” -MIA
“Building houses with robots and have the weekends and Monday off.”
“Seeing different things every day.” -TYLER
-TIMOTHY
“Flexibility, great and safe environment, well-managed and retire from there.” -ERICA
“I am looking for an adventure.” -SAVANNAH
“An employer that knows how to do the job that is required of the employee.” -UNKNOWN
May 4 - May 17, 2015
Union cancels election at Boeing SC, files charges By Liz Segrist
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lsegrist@scbiznews.com
he International Association of Machinists and Aerospace Workers withdrew its petition for a unionization election at Boeing South Carolina a few days before it was to occur. More than 3,100 production and maintenance workers at the 787 Dreamliner campus in North Charleston would have been eligible to vote April 22 on union representation. The IAM canceled the election on April 17, citing “a toxic environment and gross violations of workers’ lawful organizing rights.” Union leaders had said in the weeks leading up to the election that they were considering withdrawing the petition if they did not think they had enough support to win. The IAM conducted home visits with more than 1,700 Boeing workers last month to gauge support. Home visits were suspended after two organizers were threatened at gunpoint and others reported hostile confrontations, according to the IAM. “After speaking with Boeing workers who we were previously unable to reach, we’ve determined now is not the right time for an election,” lead IAM organizer Mike Evans said in a statement. “An atmosphere of threats, harassment and unprecedented political interference has intimidated workers to the point we don’t believe a free and fair election is possible.” The IAM has filed Unfair Labor Practice charges with the National Labor Relations Board. The Charleston Regional Business Journal has filed a Freedom of Information Act request with the NLRB to gain access to the documents detailing the union’s charges against the Boeing Co. The IAM has not responded to requests for comment on any of the allegations. Boeing South Carolina spokeswoman Candy Eslinger said that the “IAM’s allegations are ridiculous” and that Boeing has “taken a very transparent approach to informing our teammates and the community about what it means to be represented by the IAM.” The IAM said it plans to continue organizing efforts for a future election. The union cannot petition for another election for at least six months, according to NLRB rules. The IAM did not comment on when it will seek re-election. “Boeing’s campaign of rumors and threats may have succeeded in delaying this election, but the fight to win collective bargaining rights for thousands of Boeing South Carolina workers is far from over,” Evans said in a news release. The IAM said Boeing workers had reached out to the union regarding forced
overtime, wages, rising health care costs and a lack of respect on the shop floor. The NLRB scheduled the election in March after the IAM petitioned the board with enough signed authorization cards to justify an election, which is 30% of the workforce that’s eligible to vote. That means at least 930 of the roughly 3,100-employee production and maintenance workforce signed cards. Signed authorization cards are generally valid with the NLRB for 12 months. The cards used to get an election scheduled will be returned to the IAM. “How those cards would be handled in the future if they should be resubmitted is very fact-specific, so I can’t comment to that at this point,” NLRB spokeswoman Jessica Kahanek said in an email. Both the IAM and Boeing flooded media channels with advertisements leading up to the scheduled election, and many politicians shared their stances. During the S.C. Manufacturing Conference and Expo last month in Greenville, Gov. Nikki Haley said a unionized Boeing plant could hurt future recruitment of manufacturers, hinder the state’s international reputation for being nonunionized and lead to more union campaigns around the state. “This will start to happen all over South Carolina because they (unions) see the opportunity. They see the success happening here. ... So this isn’t a Boeing issue. This isn’t a Charleston issue. This is our issue,” Haley said. IAM spokesman Frank Larkin has said workers have a legal right to decide whether they want representation. “Gov. Haley’s involvement in this campaign is nothing less than the heavy hand of state government coming down hard in a matter where it has no business,” Larkin said. Beverly Wyse, Boeing South Carolina vice president and general manager, said workers do not need union representation to talk to management. Wyse also said production and maintenance workers’ wages are competitive for the area at $20.59 an hour, compared with an average hourly wage of $16.93 for production workers and $21.53 for maintenance workers across South Carolina, according to U.S. Bureau of Labor Statistics data. Boeing’s Washington workers, who are represented by the IAM, make $31.43 an hour, according to the union. In a response to the canceled election, Wyse said, “We now have the opportunity to make Boeing South Carolina and our local community an even better place to work and live.” cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142
Business news from around S.C. Columbia firms playing big part in baseball project
Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119
Approximately 86% of the minor-league facility’s construction will be subcontracted, far exceeding the initial requirement of 49%. Twenty-four of the 33 bid packages went to local companies, five of which are considered disadvantaged business enterprises.
Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144 Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.843.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145
Gaffney Medical joins Mary Black in Spartanburg
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Gov. Nikki Haley (from left), BorgWarner plant manager Chris Walsh and Lynn Harton, president and COO at United Community Bank. (Photo/Kim McManus)
5 companies honored at S.C. Manufacturing Excellence Awards BorgWarner TorqTransfer Systems was named the 2015 Silver Crescent Award winner during the S.C. Manufacturing Excellence Awards held last month at the TD Convention Center in Greenville. The awards were judged by a panel of experts from the Association for Manufacturing Excellence and based on demonstrated performance in citizenship, employee engagement, customer satisfaction, environmental stewardship, innovation, financial performance and a longevity plan. BorgWarner produces transfer cases for pickup trucks, SUVs and passenger cars at the company’s location in Seneca. 2015 Manufacturing Excellence Award winners: • Cox Industries, Orangeburg • Honda of South Carolina Manufacturing Inc., Timmonsville • Mack Molding Co., Southern Division, Inman Smart Choice SC Award winner: Tokyo-based Toray Industries, a carbon fiber producer that plans to create 500 jobs and invest $1 billion in an advanced materials manufacturing plant in Moore, was given the Smart Choice SC Award. The new award honors a company that has made a significant economic development announcement for the state during the previous year. It was judged by the editors of SC Biz News. — Andy Owens
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Synnex to expand Greenville headquarters, add 150 jobs Synnex Corp., a distributor of information technology products and services, is investing $6.5 million in an expansion of its distribution headquarters in Greenville County. The company announced plans for a 40,000-square-foot addition to accommodate its growing workforce.
SCE&G plans to shutter 9 business offices across S.C. The company said factors such as low customer traffic and operational efficiencies led to the closings. The Cayce-based utility said customers will continue to have payment options including online, by mail and in person at SCE&G authorized payment agencies.
Firm investing $110M in Barnwell paper plant Orchids Paper Products Co., based in Pryor, Okla., will establish its first Southeastern operation at a greenfield site in Barnwell County and create 134 jobs. The first production line is expected to be operational at the end of 2015.
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Gaffney Medical Center has become Mary Black Health System – Gaffney. A new affiliation with Spartanburg-based Mary Black Memorial Hospital is not changing leadership or operations at Gaffney’s acute-care facility, a spokeswoman said. Both are part of Franklin, Tenn.-based Community Health Systems Inc.
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‘Project Soter’ could bring plant, 4,000 jobs to Berkeley County By Liz Segrist
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lsegrist@scbiznews.com
n unnamed manufacturer is considering a site in Camp Hall Commerce Park in Ridgeville for its advanced manufacturing facility, according to a regulatory filing. If the project comes to fruition, manufacturing facilities would be built in two phases on about 900 acres near Interstate 26 off exit 187 and Ridgeville Road in Berkeley County. The campus would employ about 4,000 people over the next decade. Berkeley County filed the permit application with the U.S. Army Corps of Engineers, Charleston District, on behalf of the unnamed company, referred to as “Project Soter.” Rep. Chip Limehouse, R-Charleston, said in a March interview that Volvo is considering a site in Berkeley County near a highway interchange, as well as a site in Georgia. The Project Soter application does not mention any company by name. The Swedish carmaker plans to pick a site sometime this month for its first U.S. car manufacturing plant, an estimated $500 million investment. Several Georgia media outlets have said the Pooler Megasite, an industrial park in Pooler, Ga., outside of Savannah, is in the running for the site. S.C. Secretary of Commerce Bobby Hitt, the Charleston Regional Development Alliance and the Savannah Economic Development Authority all declined to comment. Typically, economic developers do not talk during recruitment for competitive reasons. Many developers sign a non-disclosure agreement prior to official announcements, which happened when Daimler announced its new plant in North Charleston in March. Berkeley County and the Commerce Department did release a joint statement on the application for Project Soter: “As outlined in the public notice, this project offers a tremendous opportunity to bring needed jobs and economic activity to northern Berkeley County, near the I-95 corridor, and do so in a way that also preserves and enhances the local environment. This project’s aggressive timeline necessitated filing at this time, but because plans are still in progress, we cannot yet discuss the client or confirm additional details.” According to the application, Phase 1 includes building about 23 million square feet of manufacturing and production space and 1 million square feet of administrative offices and a visitor’s center. Phase 1’s total footprint would be about 575 acres. The manufacturer plans to employ 2,000 workers in Phase 1 at full capacity.
Phase 2 calls for building a second manufacturing, assembly and production space, which would be approximately 14 million square feet, on 322 acres. Phase 2 would employ an additional 2,000 workers at full capacity. “While the timing of construction of Phase 2 is dependent on market conditions, it is expected to be constructed and operational within 10 years of the initiation of construction for Phase 1,” the application said. The manufacturing facility needs
direct access to the highway system and to be within 50 miles of an airport and a port, the permit says. The proposed site sits off Interstate 26 and is about 30 miles from the Port of Charleston and Charleston International Airport. As a mitigation plan for possible environmental impacts to surrounding wetlands and waters, the applicant proposes that the company should preserve or restore about 1,500 acres of wetlands within 2,500 acres of property.
That land would be permanently protected in the Dean Swamp and Walnut Branch watersheds and Four Hole Swamp tributaries, which the National Audubon Society defined as priority areas in need of protection. The Army Corps is reviewing the application. The application also needs approval from the S.C. Department of Health and Environmental Control. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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May 4 - May 17, 2015
www.charlestonbusiness.com SHARP, continued from Page 1 ➤
“I take my iPhone out and plug it into the wall because I have to charge it. I take my laptop out, plug it in and make sure it’s connected to the wireless network, which is kind of spotty. If it’s not, I’ll connect with a hardwire,” she said. “It’s a mess. I carry wires. I’m constantly calling IT for help.” She said many people are connected to the Internet in their personal lives, citing 2013 research from NPD Group that there were more than 400 million electronic devices in U.S. homes and the average home had nine devices. But problems arise, according to Blackmer, in the business atmosphere. “What if we could come into an office and, instead of going through what I just described, take your phone and lay it on your desk?” she said. “Now it starts charging, and it actually starts connecting to the Internet.” West Ashley-based Charleston Imaging Products, a Sharp dealer, recently changed its name to The Office People. One of the reasons for the switch was new technology products, including Centro, coming down the pipeline. “The future of business is changing,” said Sean Mummert, president of The Office People. He said the company is selling more interactive displays and technology services than ever before, in addition to what it was previously known for, which included office furniture and copiers. The Sharp platform, which Mummert will also sell, will begin planning a worker’s day as soon as his or her cell phone touches a specialized type of glass — the second part of the company’s vision — that allows it to connect wirelessly to a power source and network. The glass would sit on top of a normal desk, Blackmer said. The platform may tell the worker, based off the calendar, that a conference call is coming up soon and will automatically send the presentation associated with the call to each attendee. At the scheduled time, it will also dial each person into the conference call. “I did nothing, except sometime during my day the day before or week before, I scheduled the fact that I had this meeting coming up and here are the attendees and here’s what we’re going to talk about,” Blackmer said. She said the cloud-based platform, sans the glass tabletop, is about 80% complete and will likely be released by the fall of 2016. The same functions will be capable without the glass, but wires will be required. The glass top could arrive the following year. Blackmer expects the platform will replace office computers entirely several years from now. “It leaves us better time to be thinking, developing, creating and not worrying about ‘What’s that ID number
Laura Blackmer, senior vice president of sales for Sharp, speaks at the North Charleston Business Expo. (Photo/Ashley Heffernan)
for my conference call because I forgot to write it down?’ or ‘How do I get all those presentations out to all the people that need to see it?’” she said. After declinig to disclose a price, Blackmer said the platform will eventually be conventional for most businesses. But she predicts it will go through a typical technology cycle. “Early adopters will pay a lot of money for them, and as they cross over into the mainstream, they’ll become more affordable,” she said. Blackmer said she thinks Sharp’s new platform will likely make as big of an impact on how society connects to the Internet as Apple’s iPhone did when it was introduced nearly eight years ago and like the company’s new watch will do over the next year. “In our personal world, we are connected. We are on. We have access to information. It’s simple, it’s easy and no one reads an instruction book anymore. So what the heck happens when we go to work?” she said. “Why can’t we make work work? Why can’t it be like what I do every day when I get up in the morning at home? Why does it have to stop the minute I walk into an office?” Mummert, from The Office People, added, “Imagine getting up, putting your hand on the table, and it tells you what your temperature and heart rate is. You can actually take a bowl of cereal, and it will tell you how many calories are in it when you sit it on the table.” The Office People currently has about 5,000 customers at its three Charleston-area locations. By the end of the summer, the company will be open in Savannah, and next year, sites are expected in Jacksonville, Fla., and Augusta, Mummert said. cr bj
Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.
May 4 - May 17, 2015
Developers gearing up to fight Mount Pleasant growth plan By Ashley Heffernan
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can’t vote on it again until the candidates have already filed.” Fort, who leads the Developers Council, said people are concerned the plan “will promote sprawl, limit development of the type of housing young professionals are seeking, among others, and increase the cost of housing in the town, which, in turn, hinders the town’s ability to attract and retain economic development.” He said vehicle commuting data compiled by the chamber show that 17,000 people commute into Mount Pleasant to work every day, while 26,000 people commute out of town to work. “There is a clear mismatch of jobs and employment, with the upperincome households leaving town every day to work and the other jobs commuting into town because those people can’t afford to live in the town of Mount Pleasant,” Fort said.
ome tri-county developers may be stepping into the political game this fall to fight Mount Pleasant’s new growth management plan. In late March, town officials outlined a plan that would reduce residential density, increase transportation impact fees, and raise taxes to purchase and develop public green space. Jeff Fort, vice president of community development for Gramling Brothers Real Estate & Development Inc., told developers at a Charleston Metro Chamber of Commerce event in late April to keep in mind that four Town Council seats will be up for election in November and that, even though Council has given the plan a first reading, members won’t vote again for four to six months. Fort said Save Shem Creek Corp., a nonprofit group in favor of smaller devel- Working together John Darby, CEO of The Beach Co., opments and the proposed growth plan, “has publicly stated that it’s their intent to touted Seaside Farms as a success story. “Seaside Farms is field a candidate or a great example of candidates for these open positions in “Development agreements the benefits of the town and developers November.” “As a develop- ensure a good balance of the working together for long-term success,” ment community, we have to have a right kinds of development in he said. “Development agreements greater voice and strategic places.” ensure a good balbecome more orgaance of the right nized if we want John Darby kinds of developto offset this new CEO, ment in strategic movement to stop The Beach Co. places.” or control growth Mount Pleasant in our region. Our opponents will not be hindered unless annexed 525 acres of land at Seaside we work to organize a movement in the Farms and OK’d a planned development business community to grow responsibly agreement with the company in 1998. The development, at the intersection and sustainably.” Fort said Mount Pleasant’s “anti- of the Isle of Palms Connector and Rifle growth movement” started with the Range Road, includes 369 single-family Coleman Boulevard overlay district and homes, 654 multifamily units and over 338,000 square feet of commercial space, has intensified since. “It’s imperative that we have a large according to the company. Riviera Apartnumber of voices pushing back on this ments, the final component of Seaside issue, otherwise the only opinion and Farms, was completed recently. The Beach Co. estimates the town voice they hear will be from Save Shem has gained about 660 jobs in the retail, Creek,” Fort said. Stuart Whiteside, vice president at office, hospitality, medical and profesMount Pleasant-based architecture, plan- sional services industries as a result of the ning and design firm Seamon White- development. The company said its capiside and Associates, said the Developers tal improvements with the project since Council — an arm of the chamber that 1998 totaled more than $392 million and is working to streamline the development produced about $2.58 million annually in process for the Charleston area — will total property tax revenue for the town. “Communities like Seaside Farms are need funding, staffing and a social media sustainable and create the high quality of campaign to help fight the town’s plan. “They said, ‘We’re going to delay a sec- life people are seeking when they come to ond reading for four to six months.’ Well Mount Pleasant,” Darby said. that puts it in October or November, so it’s going to be an election issue,” White- Reach staff writer Ashley Heffernan at side said. “You can’t avoid it because they 843-849-3144 or @AshleyBHeff on Twitter. cr bj
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Good Done Great President Earl Bridges (right) moved the company into a former church building on Rutledge Avenue. (Photos/Liz Segrist) OFFICE NEEDS, continued from Page 1 ➤
space was way too huge,” Bridges said. The company outgrew it quickly, however, and now employs nearly 30 people in a 6,000-square-foot former church building on Rutledge Avenue. The company ripped out the pews, put down desks and got to work. Coders work a few feet away from the baptismal pool. As the company seeks to raise $2.5 million, Bridges said investors want to see the company spending money on product development, not rent. “When you’re first starting, you have big ideas but you are not sure exactly how big this thing is going to get. ... The hard thing about it is: Buildings are static and the company is growing at a rate that’s dictated by how successful you are, and you never know what that success will look like,” Bridges said. “It’s like jeans on growing teenage boy. They fit at first, but soon they are too short.” Some tech startups in Charleston are hiring faster than anticipated and end up having to move into larger spaces year after year. Several tech company CEOs want to see shorter lease terms — preferably one year — and expansion options like renovated warehouses or developments with vacant buildings nearby. Bridges said the Digital Corridor’s Flagships 1 and 2 are great options for startups to move in quickly and add employees. It’s once companies get to the range of 20-plus employees that options become more limited, according to several startup founders. Blue Acorn founder and CEO Kevin Eichelberger said startups want open floor plans, “cool spaces” and one-year leases. “Like the Digital Corridor ... it’s great as an incubator, but beyond one to two years, lots of growth-mode companies need something bigger,” Eichelberger said. “To commit to three years of office
space when your fate is determined every quarter makes it really hard to decide how large your space should be.” As a co-founder of The Harbor Entrepreneur Center, John Osborne has launched co-working and accelerator office spaces in Summerville, Mount Pleasant and downtown Charleston. He said buildings with expansion options or movable walls would benefit growing startups as they quickly scale up or downsize unexpectedly. It’s a bit of a gamble for the developers, landlords and startup founders. If developers build expandable spaces with tech companies in mind, they could lose money if they are not at capacity. Landlords could lose money with shorter lease terms as they seek new tenants after a growing company moves out. Startups do not want to — and often cannot afford to — spend more on space when they do not yet have the staff to fill it; but they also want space quickly when adding employees. Peter Fennelly, a principal with Colliers International – Charleston, said commercial real estate professionals understand that tech companies want to move quickly when growing, but he said landlords and developers want to ensure a return on their investment through multiyear tenants. Fennelly said tech companies that want renovations should likely expect to sign a longer lease and wait more than six months before moving in. Spaces that are move-in-ready in high-demand areas like the peninsula are quickly absorbed.
May 4 - May 17, 2015
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“I wanted short-term leases and small spaces. I wanted to be conscious of cost as a startup.” Kevin Eichelberger founder and CEO, Blue Acorn
Supply is scarce, Fennelly said. “If someone wakes up in the morning and wants to take space that day, it’s not that easy. That’s the nature of the business,” Fennelly said. “Sometimes tech companies are trying to move so fast, it’s hard for them to take the time to see that it might take six months of planning to get into the space. To make it really work, there has to be understanding and flexibility from both parties.” Blue Acorn started in a 450-squarefoot space and then a 1,200-squarefoot law office, both in Mount Pleasant, before moving to a 3,000-square-foot office on Rutledge Avenue in downtown Charleston. The company expanded to nearly 6,000 square feet in that space and then had to move some employees to the Digital Corridor. “We were growing faster than our space would accommodate,” Eichelberger said.
Blue Acorn began operations out of a 450-square-foot office in Mount Pleasant and has since moved four times. The e-commerce firm is now in 12,000 square feet at the Half Mile North development. CEO Kevin Eichelberger says finding space when growing quickly is difficult. (Photo/Blue Acorn)
Blue Acorn is now run out of a 12,000-square-foot building at 145 Williman St., part of Raven Cliff Co.’s Half Mile North development. The company will expand into a neighboring 8,000-square-foot warehouse this year. “Early on in a startup, there’s a lot of risk. ... From my standpoint, we could have been a niche agency and stayed at a few employees or grown a lot,” Eichel-
berger said. “I wanted short-term leases and small spaces. I wanted to be conscious of cost as a startup.” Fennelly said developers want to create more opportunities for Charleston’s burgeoning tech economy through mixed-use developments, like Half Mile North, the corridor’s planned Flagship3 or the city of Charleston’s planned tech district, all on the upper peninsula.
“Buildings are full; vacancies are tight. That’s a sign of a strong economy in Charleston. The tough part is if you are starting a company or growing one, you find limited options,” Fennelly said. “I see opportunities in our marketplace for more people to take old industrial buildings, reconfigure and recycle them and turn them into something creative.” Good Done Great will remain in the downtown church building for about a year until moving into a 14,000-squarefoot space in the former DwellSmart building off Morrison Drive. Bridges expects the company to add about 35 positions by the time it moves into the renovated space. Including those jobs, Bridges anticipates creating 144 jobs in Charleston by 2019. With its recent acquisition of Give. com, Bridges hopes to roll out what he’s dubbing a “401(g)” program for employees, a personal savings account similar to a 401(k) but with funds going toward donations instead of retirement. “Here’s the problem with commercial leasing in South Carolina. We’re finding everyone wants a five-year lease on their property. ... When we started five years ago, we fully thought we would still be working out of our home offices by now,” Bridges said. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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Charleston-based bandmates Scott Gould and Alan Price renovated a 2,000-square-foot facility in West Ashley and opened Hybrid Audio Solutions in January. The recording studio includes a central live tracking room (pictured) and three control rooms. (Photo/Hybrid Audio Solutions)
Musicians, fed up with big labels, open own studio By Ashley Heffernan aheffernan@scbiznews.com
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fter working with music producers at Capitol Records and Virgin Records, among others, Charleston musician Scott Gould finally got fed up with what he called their “relentless quests” and decided to open a studio and start a label with bandmate Alan Price. “Screw those guys and their tall buildings and their fancy suits,” Gould said. “We can do it ourselves, and we can do it organically. I think that’s where music is going. I think it’s going to be more homegrown instead of major, super-suit guys.” Gould and Price, who are members of the Madam Adam rock band, leased a 2,000-square-foot facility in West Ashley and spent nearly six months renovating it. Hybrid Audio Solutions opened in January, and the company’s record label, Senor Face Records, will release its first album in July. Inspiration for the studio, which includes three independent control rooms that are connected to a central live tracking space, came from a recording facility in Tennessee. “We recorded a record in Nashville at Kent Wells’ place, which is where Dolly Parton records her records,” Gould said.
“It kind of gave us the idea of how to set this place up and get the best possible results. It’s all about hearing as clearly as possible in the recording process and in the mixing process.” Everything inside the rooms, including the walls, is tuned just like an instrument, and it’s all based on sound frequencies, according to Price. “All the panels and all the flooring and the position of the desk, the items that are in here, the diffusion on the back walls, they all play into this room sounding the way it does and allowing us to get a mix that nobody else around here can really do,” he said. The interior renovation cost about $5,000, Gould said, which is a fraction of the amount they spent buying all the equipment needed for the bands that use the space. The pair recently recorded the Charleston Battery soccer team’s fight song with punk rock band First World Problem and has produced for country singer Mitchell Lee, rock band Unit 8, alternative rock duo Ultra Lo-Fi, vocalist Stacy Pandya and others. Musician Kail Baxley — who was raised in Williston, spent a few years performing in Charleston and is now based in Los Angeles — recorded an acoustic
track, titled Chasing James Dean, with Gould and Price for a record he’s releasing June 2. He said recording in the Hybrid Audio Solutions studio is “like making a record at the spa.” “It’s one of the most comfortable recording studios I’ve been in,” Baxley said. “That big, wooden live room gives it a warm, cozy intimacy.” He said that kind of comfort level is not common in other recording studios around the country. “A lot of times you’re pressed for time, and there’s unnecessary pressure,” he said. “But when you’re trying to do something as truthfully and as beautifully as you can, there should be no stress involved. It should be a natural birth, I guess.” So far, Gould and Price have essentially chosen their own clients. They typically start the process by going to a band’s rehearsal, and then they decide from there whether they want to work with the band. “We want to get into their world a bit. Then we have them come in, and usually we have some ideas to restructure the song in some way,” Gould said. From there, the group starts tracking. See STUDIO, Page 12
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Musicians Tristina Miller (above) and Todd Hutzler perform at Hybrid Audio Solutions, a new recording studio in West Ashley that opened in January. (Photos/Alan Price) STUDIO, continued from Page 10 ➤
Drums are recorded, then the guitar and other instruments. Vocals are usually the final part so the singer can have a feel for how the rest of the song sounds. It then usually takes three to four weeks for Price to edit, mix and revise the song’s mix. “It’s balancing instruments and using distance and reverb and effects and that kind of thing to make it sound amazing,” Price said. “Like a great chef would use spices and herbs to make a regular old chicken breast taste amazing.” Hybrid Audio Solutions typically charges about $2,000 to record and produce each song, but the price can vary. And after it’s mastered, the artist is responsible for marketing the song or album. But for artists who sign with Senor Face Records, that’s just the beginning. The label would take the finished songs to iTunes, Spotify and other outlets, as well as help set up nationwide or world tours for the artists. So far, the only band on the label is Gould’s and Price’s own Madam Adam. Its third album — the first for the label — is set to be released in July. “Our new album hasn’t even released yet, and we have 65 songs written on top of that since we’ve opened the studio,” Price said. “All the crazy influences we get here, they’re rubbing off on our music.” Price said many studios he’s used aren’t worried about a band’s future beyond how many hours they rent recording space. “We try to be a launching pad for people. A band comes in here, whether they’re experienced or not, and hopefully we have some kind of knowledge that they don’t have to offer them,” he said. “We hopefully can recharge those artists to go out and fuel their careers a little bit more than they were before.”
In addition to helping already established artists, the duo wants to meet with upcoming artists and has reached out to Charleston-area schools to help boost music programs. Price has already visited a class at his alma mater, James Island High School, and expects to interact with more students soon. He said he was lucky to have grown up in a musical family, but he doesn’t think music is a priority for the rising generation. “My grandmother was a choir director, so she forced me to sing, and my dad was a trumpet player,” he said, remembering that his first experience in a recording studio was in Columbia at the age of 12. “I’ve been playing music since I was able to hold a guitar.” Gould, who also grew up in Charleston, remembers music being one of his favorite classes. “It’s not in schools anymore, unfortunately,” Gould said. “Now it’s overlooked. Now it’s more algebra. We need the arts back.” Price said he wants children and teenagers, especially, to realize that producing music is not just about pushing buttons and recording bands. “We start with an artist and get to know them and find out what makes them tick and what makes them write the words. We then try to figure out how to become part of that and twist it and turn it and make it into something a little different or see what it becomes,” he said. “Then we record, then we push buttons, then we put microphones up and try to capture magical moments.” cr bj
Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.
May 4 - May 17, 2015
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Renovation of McLeod Plantation complete By Ashley Heffernan
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aheffernan@scbiznews.com
he Charleston County Park and Recreation Commission completed a multimillion-dollar renovation of McLeod Plantation and opened the site as a public park in mid-April. The 37-acre plantation, located near the intersection of Maybank Highway and Folly Road on James Island, was closed for about a year while the agency built a welcome center, pavilion and creek viewing deck. The property’s main house and two former slave houses were repaired, and exterior work was done on the gin house and garage. “We were able to come in here, protect it and it’s forever in perpetual easements and it’s in public hands,” Executive Director Tom O’Rourke said. “Every single story that we will tell has been researched greatly, and the thing that we have to be very careful of is that we are not just making things up and talking about a story we heard here or a story we heard there.” O’Rourke said the plantation will likely bring in about 50,000 visitors per year, and three employees were hired to work at the site along with several volunteers. Stabilization of the deteriorating buildings cost about $750,000; planning
The McLeod Plantation main house was repaired during a yearlong renovation project by the Charleston County Park and Recreation Commission. (Photo/Ashley Heffernan)
for the $4 million construction project totaled $308,000. Added to the $3.3 million price tag to buy the plantation, the commission spent nearly $8.4 million. Prior to becoming a Sea Island cotton plantation, the site was occupied by Native Americans and was for a short time the location of James Towne in 1671, according to the commission. The McLeod family purchased the nearly 1,700-acre tract in 1851, and as many as 100 slaves lived on the property
during the height of cotton production, the commission said. Various 40-acre lots of the plantation were divided up after the Civil War by Union Gen. William Sherman, and eventually the children of William W. McLeod regained ownership, commission research found. William Ellis McLeod was the final member of the family to live on the plantation. He died in 1990 at the age of 104 and left the property to Historic Charles-
ton Foundation, which sold it to the parks commission in 2011. In addition to the main house, the plantation includes six houses originally built for slaves. Only one facility has running water, and people were still living in the 17-by-11.5-foot, one-story homes until the 1980s, according to Shawn Halifax, cultural history interpretation coordinator for the commission. “We’re approaching our interpretation kind of in phases,” Halifax said. “For this first phase, we were really looking at the period that the McLeod family owned the property. So the focus of our interpretation when we open will be from 1851, when the McLeod family purchased the property, until 1990.” Visitors should be able to finish a mobile-app guided tour of the plantation in about two hours, Halifax said. “We like to have oral history that can be verified by at least two other sources, whether those are other oral histories or written documentation. It’s kind of a good standard to follow,” he said. Admission is $10 for adults and $5 for children; visitors with a Gold Pass and ages 2 and younger are admitted free. cr bj
Reach staff writer Ashley Heffernan at 843849-3144 or @AshleyBHeff on Twitter.
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In Focus:
Ports, Logistics and Distribution
LIST Motor Freight Companies, Page 24
Port Royal sale again falls through By Liz Segrist
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Forest products are the biggest commodity by volume coming through the Port of Charleston as of 2014, followed by chemicals and vehicles, boats and aircraft. Ports Authority CEO Jim Newsome said more distribution facilities and transload operations will help grow the cargo base. (Photo/Kim McManus)
Asia, Europe top markets for Charleston port cargo By Liz Segrist
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lsegrist@scbiznews.com
ires, unfinished rubber and plastic products were the fastest-growing commodity at the Port of Charleston in 2014, according to data from the Port Import/Export Reporting Service. Imports of tires, rubbers and plastics increased by 50% and exports grew by 101% since 2011, according to Piers data. Though that commodity saw the largest percentage increase, the No. 1 commodity by volume at the Port of Charleston was forest products, followed by chemicals; vehicles, boats and aircraft; yarns, fibers, textiles and apparel; and machinery parts, data show. South Carolina’s manufacturing base is one of the biggest sectors propelling port growth as manufacturers import raw materials and export cars, transmissions and tires. Machinery parts, plastics and car parts are imported from Europe and Asia to support the Southeast’s automotive manufacturers, including BMW Manu-
facturing in Greer, ZF Transmissions in Laurens and Mercedes-Benz in Alabama and North Charleston, S.C. State Ports Authority CEO Jim Newsome said. Those automotive manufacturers then export cars and transmissions back through the Port of Charleston to global markets.
“Our goal is to diversify more freight to Asia over time.” Jim Newsome CEO S.C. State Ports Authority
Unfinished rubber imports support tire companies around the state like Michelin, Giti Tire and Bridgestone, which in turn export finished tires through the port. These companies have lifted South Carolina to the spot of top tire producer and exporter in the country, according to S.C. Commerce Department data.
Although Newsome expects cargo trade with northern Europe to continue to expand as more cars and tires are made in South Carolina, he also anticipates future cargo growth to stem from increasing trade with Northeast Asia. China imported more through the Port of Charleston than any other country in 2014, up 40% from 2011, according to Piers data. China was also the port’s top market for exports in 2014, up 42% from 2011. “What has changed dramatically in the last 10 years is that the Asia trade has grown inordinately,” said Newsome, who attributed the growth to the outsourcing of retail manufacturing, more direct shipping services between Charleston and Asia and a growing demand for U.S. products in that continent. “Our goal is to diversify more freight to Asia over time.” As of 2014, the Port of Charleston does the most business with markets in Northern Europe, Asia, South America and India. Newsome said growth in See PORT CARGO, Page 20 ➤
lsegrist@scbiznews.com
he sale of the Port Royal Terminal site has fallen through a little over two months away from the state-imposed sale deadline of June 30. Furman Co. Investment Advisory Services LLC, a division of Greenville-based The Furman Co., planned to buy the entire 317-acre site for $15.42 million. The S.C. State Ports Authority board unanimously approved the sale in November. The contract was applauded by several Port Royal residents and town officials, along with ports authority board members, all of whom have been pushing for the sale of the Beaufort County property for years. The former terminal has been vacant since operations closed there more than a decade ago. In a push to get the site sold, the S.C. Legislature passed a law last summer requiring the ports authority to sell the Beaufort County site by June 30 or give it to the state Division of General Services to be auctioned. After the board vote in November, the S.C. Budget and Control Board had to approve the offer before the ports authority could issue a contract. The buyers then had 150 days to perform due diligence and inspections and an additional 30 days to close on the property, which would have put a closing date likely in May. The contract was terminated last month with little explanation. Both the ports authority and The Furman Co. said the firm’s contract would expire prior to the completion of due diligence, which was needed before closing. “It became apparent that the time
Offers must meet a minimum bid of: Port Village: $6,332,800 Bluff Neighborhood/Ribaut Village: $8,469,600 Marina Village: $2,639,200 Purchased in whole: $14,825,360 Source: NAI Avant
See PORT ROYAL, Page 19 ➤
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
Conference explores manufacturing M
ore than 1,700 professionals from manufacturing and supply chain companies around the Southeast made connections and discussed industry challenges at the inaugural S.C. Manufacturing Conference and Expo, held by SC Biz News at the TD Convention Center in Greenville last month. Attendees heard from 36 experts on topics important to manufacturers, such as getting access to capital for startups and expansions, improving cybersecurity solutions and using new technologies, like 3-D printers or driverless cars, to improve efficiencies within manufacturing and research-and-development operations.
Attendees networked at 80 booths during the two-day expo; more than 900 people attended Greenville Technical College’s Advanced Manufacturing Job Fair; and about 1,000 high-school students met with employers during the SCRA Career Fair. During keynote addresses, Gov. Nikki Haley, S.C. Commerce Secretary Bobby Hitt, Michelin North America President Pete Selleck and S.C. Manufacturers Alliance Chairman Mikee Johnson all reinforced the need for improved roads and bridges and more workforce training programs to continue growing the state’s robust manufacturing sector.
Haley not satisfied with S.C.’s success By Andy Owens
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aowens@scbiznews.com
outh Carolina can’t be satisfied with job gains and economic growth experienced over the past several years, Gov. Nikki Haley said to 650 attendees at the S.C. Manufacturing Excellence Awards luncheon. “The success of a state is not necessarily in job numbers. It’s not necessarily in financial growth. Success in a state is opportunity and quality of life,” Haley said during the conference. To help the state move into the next phase of growth, Haley proposed her Succeed South Carolina jobs training initiative, which is making its way through the Legislature. Succeed South Carolina is geared toward developing workers with in-demand skills and focusing on those workers who might not have the money for a program to get access to training without paying upfront. Another goal would be replacing unemployment offices and career fairs with “centers of opportunity” where workers direct their own training programs and can decide what job they want to pursue. Haley said strides have been made in South Carolina since the recession
wreaked havoc on the economy in 2008. Upon taking office in 2011, Haley said she focused on aggressive company recruitment, improved customer service through the “It’s a great day in South Carolina” mantra and additional workforce training through programs like ReadySC. After expansions and job announcements began to roll in, particularly from aerospace, automotive and tire manufacturers, other sectors saw a ripple effect, Haley said. South Carolina’s tourism numbers jumped, along with in-migration from other states. To date, the state has posted more than $15 billion in investment from business and industry and has announced more than 64,000 jobs under Haley. The state’s unemployment rate is at 6.6% as of March, down from 10.5% when Haley took office. “Where does South Carolina take our next step?” Haley said. “We don’t relax. We don’t enjoy it. We now have to work twice as hard to keep it.” cr bj
“The success of a state is not necessarily in job numbers. It’s not necessarily in financial growth. Success in a state is opportunity and quality of life.” Gov. Nikki Haley
Students talked to a variety of businesses at the SCRA Career Fair held during the S.C. Manufacturing Conference and Expo in Greenville. (Photos/Kim McManus)
Students see opportunities in manufacturing careers By Liz Segrist
lsegrist@scbiznews.com
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ichael Bramlett did not set out to become a product engineering technician at BorgWarner. While inquiring about jobs at the global powertrain manufacturer’s Seneca site, a manager said they needed someone to paint the plant. Bramlett accepted the gig. “They said they needed someone, so at 6 o’clock the next morning, I was there with a paintbrush,” Bramlett said. “I had no idea how or when I was going to get paid, but I showed up every day.” He is now a product engineering technician for the company. “It has turned into this great career,” Bramlett said. “If I had known this kind of opportunity was out there when I was in high school, the transition would have been a lot smoother for me.” Bramlett was among employees from nearly 30 S.C. manufacturers who talked to more than 1,000 students from 60 school districts during the SCRA Career Fair at the manufacturing conference in Greenville. Frank Hatten, an education relations specialist at Boeing South Carolina, said he encourages students to focus on science, technology, engineering and math subjects and to earn certifications or undergo soft skills training from a local technical college, all while still in high
school. “A lot of students assumed if they didn’t have a college degree or a huge amount of experience that they wouldn’t have an opportunity,” Hatten said. “We explained to them that what they are doing in high school can set them up for opportunities.” SEW-Eurodrive corporate trainer Jared Scott said he wanted to inform students that the company has a mechatronics apprenticeship program. To connect students with open positions at S.C. manufacturers, the students need exposure to the field by middle school, said Jonathan Beeco, a quality engineering team leader at BorgWarner. “It’s getting kids to see that every day, I can pass an F-150 (Ford truck) on the road and say, ‘I made part of that vehicle. ... Once kids see that, they get really excited,” Beeco said. During the career fair, employers talked to students about what they want in employees: a willingness to show up every day, problem-solving abilities and critical thinking skills. SEW also gave students a chance to share what they want from future employers. Students covered a board in sticky notes describing their ideal job perks: good pay, weekends off, respect from management, a clean work environment and work that interests them. One student wrote: “I want to be happy in my career.” cr bj
May 4 - May 17, 2015
IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
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Panel: Manufacturers need patience, planning when seeking financing By Teresa C. Hopkins gsanews@scbiznews.com
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hen manufacturers consider seeking financing, one of the first things investors and owners of small to medium-sized businesses need to surmount is fear of failure, according to Jason Premo, chairman of Greenville-based Premo Ventures. “If you look at the very best venture firms out there, look at their portfolios. A lot of times 40-50% of their portfolio is underwater,” Premo said. “It’s one of the rules of the game, knowing that half of your decisions — regardless of how good your due diligence is or how great the market is — 50% of your portfolio is going to go into hibernation or out of business.” Once that fear of failure is under control, investors need to gather as much information as possible in the early stages of a business startup or investment, according to panelists speaking about venture capital and manufacturing startups at the manufacturing conference. Arguably, cash is the largest obstacle in manufacturing investments, specifically the aerospace industry, according to Robert Browning, general partner of AB Solutions LLC in Greenville. Browning said companies should vet their ideas with as many people as possible and pay attention to the input they receive.
Peter Bastien, business development officer for Toyota Tsusho America in Boston, agreed, saying that companies should have a funding plan from the very beginning and have multiple brainstorming sessions. William Johnson, a shareholder at Haynsworth Sinkler Boyd P.A. in Columbia, said he is seeing more companies focus on cash needs on the front end of the startup or investment process. SCRA CEO Bill Mahoney listed key factors for success in manufacturing investments: Cultivate stable investors, leverage tax credits, find fast-moving markets and be patient. cr bj
Several panel discussions held during the S.C. Manufacturing Conference focused on competitiveness, education, technology and trends in manufacturing. Below: Michelin North America President and CEO Pete Selleck closes out the conference with a keynote address. (Photos/Kim McManus and Kathy Allen)
“America is incredible in terms of its ability to adapt. ... I truly believe manufacturing will continue its upswing in the coming years.” Pete Selleck president and CEO, Michelin North America
Far left: S.C. Commerce Secretary Bobby Hitt delivered a keynote address. Left: Gov. Nikki Haley spoke during the S.C. Manufacturing Excellence Awards luncheon where BorgWarner was honored with the Silver Crescent Award for 2015. (Photos/Kim McManus and Kathy Allen)
“We need to continue to focus on our workforce because that is the key to our success.” Bobby Hitt S.C. Commerce secretary
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
May 4 - May 17, 2015
Sunland Logistics Solutions runs the 300,000-square-foot distribution facility in Goose Creek for MWV Specialty Chemicals. Products ship from the facility to customers around the world. (Photo/Liz Segrist)
MWV, Sunland partner on chemical distribution facility By Liz Segrist
lsegrist@scbiznews.com
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WV Specialty Chemicals and Sunland Logistics Solutions have partnered to open a distribution facility in Goose Creek that will handle 1 million pounds of chemical products each day. Several years ago, MWV Specialty Chemicals, a division of Richmond, Va.based MWV Corp., saw a need to consolidate existing warehouses and expand warehousing capacity to handle growth and meet customer demand. The MWV chemical plant runs 24 hours a day, every day of the year, and “real estate there is very tight” to store all of the products being manufactured, said Jerry McDowell, assistant plant manager for MWV Specialty Chemicals. Chemical products were previously kept in an 80,000-square-foot facility dedicated to MWV, plus in five other warehouses that the company leased around the state. “We had a very fragmented approach. We had multiple locations, and at times, we had the wrong product in the wrong location,” McDowell said. “This simplifies the system and enables us to put everything under one roof. It gives us one point of shipment to our customers, and we can gain lots of efficiencies as a result of that.” Packaged chemical products coming from MWV Specialty Chemicals’ plant on Virginia Avenue in North Charleston will be trucked to the new distribution facility at 300 Eagle Road, where they will be scanned, stored and shipped on demand to customers around the world. “That frees up space at the plant to manufacture more,” McDowell said. The packaged products leave the distribution facility via truck, either for domestic shipments or to the Port of Charleston for international shipments. Company officials estimate about 500,000 pounds of product will enter the facility for storage each day and 500,000 pounds
of product will ship out each day. The site does not have active rail access. About 20 people will be hired initially, and that number may grow over time as volumes increase, officials said. “This is a great addition to our logistics and supply chain,” said Martin Heyne, MWV Specialty Chemicals’ vice president of operations, during the official opening in late April. MWV vetted more than 10 third-party logistics companies and decided to partner with Sunland Logistics Solutions, a Simpsonville-based third-party logistics provider with warehousing and distribution facilities in Greenville and Charleston. Sunland will operate the distribution facility in Goose Creek for MWV. The 300,000-square-foot warehouse has been upfitted to handle flammables, combustibles and corrosives, which McDowell said is important from a safety perspective. If a fire alarm goes off, large fireproof doors immediately close off flammable rooms from the rest of the warehouse. The warehouse facility includes 16 dock doors, 20,000 square feet of flammable storage and 11,000 square feet of corrosive storage. The chemicals coming into the facility are divided based on what type of storage they need. Site manager Jeff Carter said every product is scanned so employees know exactly what is in stock and where it is located. The facility has 1,400 bin locations holding 17,000 pallets for products. The MWV specialty chemicals unit makes compounds used in printing inks, asphalt paving and adhesives. Its additives are used in soaps, detergents, coatings, lubricants, and mining and construction chemicals. MWV announced in January it would fully separate specialty chemicals from the rest of the company by the end of 2015. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
May 4 - May 17, 2015
IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
NAI Avant lists the 317-acre Port Royal site for $14.8 million. The state requires a sale by June 30 or the land goes to auction. (Photos/Phil Alling) PORT ROYAL, continued from Page 15 ➤
allowed by the contract to complete due diligence would expire with some of the site is sold as a package for development. The site has been placed under conpurchaser’s requirements incomplete, leaving the purchaser unable to proceed tract before, but deals have repeatedly to closing under the terms of the con- fallen through. The board and Port Royal residents tract,” port spokeswoman Erin Dhand have been eager to sell the site since Gov. said in an emailed statement. The Furman Co. and co-develop- Mark Sanford directed the port to close er Chaffin Light met recently with port business there in the early 2000s. Port Royal Mayor Samuel Murray said officials to discuss the contract. None he is disappointed of the parties would that the sale did not provide additional details regarding the “We are in waiting mode close. He said he hopes a developer contract termination or whether a connow. All we can do is sit will buy the property rather than it tract extension was feasible, citing priva- back and see what else will going to the state to be auctioned off. cy for land sales. “I was hoping it The state Budget happen.” would be sold by and Control Board Samuel Murray now. We all were,” did not respond Port Royal mayor Murray said. “We by press time to are in waiting mode requests for comnow. All we can do is ment regarding the sit back and see what else will happen.” site or the contract. Murray said the property could be In a statement, The Furman Co. said it is still interested in developing the a valuable asset for the town. Currentproperty: “We are still very interested in ly, the land is not on the town’s tax roll, the unique opportunity to re-engage the he said, and a mixed-use development Town of Port Royal with its waterfront could bring in economic development, by the development of this property. At jobs, tourism dollars, property taxes and such time as the authority seeks new increased home values for the town. The town’s development plan calls offers, we intend to pursue a continuafor dividing the property into three section of our efforts.” tions for single-family housing developThe parcel ments, a marina and commercial space NAI Avant began again to solicit — including a hotel, office and retail offers for the Port Royal site as of April buildings, restaurants and a convention 23. Offers must be received by 5 p.m. center. May 26. The entire site is for sale for When the sale contract was approved $14.8 million, down from $22.5 million in November, Port Royal resident Judith a few months prior. Alling, who spearheaded the “Sell It The 317-acre site has one mile of Now” campaign to push for the sale, waterfront land and 51 acres of high said: “We have been waiting for this ground along the confluence of Battery for 10 years. This is literally going to Creek and the Beaufort River, according change the lives of the residents of Port to NAI Avant. Royal for the better. We are so excited The site can be broken into three about it.” districts or sold as one property. Ports authority board Chairman Bill Stern has Reach staff writer Liz Segrist at 843-849said the ports authority hopes the entire 3119 or @lizsegrist on Twitter. cr bj
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION PORT CARGO, continued from Page 15 ➤
Europe has not been as significant in recent years since East Coast ports have always been dominant there. While exports to Australia and New Zealand have skyrocketed — up more than 2,000% and 3,000%, respectively, since 2011 — Newsome said that is mainly the result of a new ship service starting at the Port of Charleston in 2012 rather than a major influx of new trade.
Cargo growth
Newsome said that although cargo numbers show which industries are growing in South Carolina and which international markets are buying U.S. products, the ports authority pays attention to containers. The port makes money on each container, whether it’s empty or loaded and regardless of what it contains. To date in fiscal 2015, the S.C. State Ports Authority has handled nearly 1.4
million 20-foot equivalent units, a common industry measurement known as TEUs that counts every 20 feet worth of container. This is up 14.3% from the same period in 2014. The port wants to continuously expand its cargo base by adding more shipping services, increasing the number of facilities around the state that can handle cargo and growing the state’s manufacturing base. “What we really need to do is increase the number of private sector facilities that handle cargo: transload facilities, distribution centers and cold storage facilities. That grows the cargo base,” Newsome said. “But there’s no substitute for manufacturing. Any shipping line executive will tell you that ships go where the cargo is.” cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
Biggest Markets for Exports
Biggest Markets for Imports
#3 NETHERLANDS TEUs loaded in 2014: 40,503
#4 NETHERLANDS TEUs loaded in 2014: 44,717
#7 UNITED KINGDOM TEUs loaded in 2014: 29,060
#10 PAKISTAN TEUs loaded in 2014: 14,872
#7 UNITED KINGDOM TEUs loaded in 2014: 18,877
#8 RUSSIA TEUs loaded in 2014: 24,766
#6 FRANCE TEUs loaded in 2014: 19,511
#2 GERMANY
#1 CHINA
TEUs loaded in 2014: 54,840
TEUs loaded in 2014: 82,516
#2 GERMANY
#1 CHINA
TEUs loaded in 2014: 137,623
TEUs loaded in 2014: 183,634
#6 BELGIUM TEUs loaded in 2014: 31,870
#5 AUSTRALIA
#5 BELGIUM
TEUs loaded in 2014: 35,964
TEUs loaded in 2014: 25,139
#9 BRAZIL
#10 JAPAN
TEUs loaded in 2014: 20,542
TEUs loaded in 2014: 18,215
#9 BRAZIL
#8 JAPAN
TEUs loaded in 2014: 17,373
#4 INDIA
TEUs loaded in 2014: 18,642
TEUs loaded in 2014: 39,437
#3 INDIA Source: Port Import/Export Reporting Service data
TEUs loaded in 2014: 51,845
May 4 - May 17, 2015
IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
Tires, rubber and plastics were collectively the fastest-growing commodity, based on percentage growth, at the Port of Charleston from 2011 to 2014. S.C. manufacturers import raw materials and parts and export BMWs and tires. (Photos/Provided)
Top commodities by volume: Rank
Commodity
Loaded TEUs in 2014
1
Forest products
237,906
2
Chemicals
156,639
3
Vehicles, boats, aircrafts
148,119
4
Yarns, fibers, textiles, apparel
137,773
5
Machinery Parts
121,422
Imports with the highest percentage growth Rank
Commodity
TEUs loaded in 2014
% change from 2011
1
Tires, unfinished rubber, plastic products
60,832
50%
2
Machinery parts
76,121
41%
3
Forest products
59,157
33%
4
Vehicles, boats, aircraft
95,021
33%
5
Furniture, sporting goods, toys
55,457
32%
Exports with the highest percentage growth Rank
Commodity
TEUs loaded in 2014
% change from 2011
1
Tires, unfinished rubber, plastic products
41,723
101%
2
Foodstuffs, basic agricultural materials
87,089
96%
3
Vehicles, boats, aircraft
53,095
63%
4
Machinery parts
45,295
13%
5
Forest products
178,838
9%
THE PORT OF CHARLESTON’S TOP MARKET FOR IMPORTS AND EXPORTS IN 2014: Source: Port Import/Export Reporting Service data Graphic by Emily Matesi
CHINA
www.charlestonbusiness.com 21
22
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
May 4 - May 17, 2015
About 200 containers can be transported via rail each day from the S.C. Inland Port in Greer to terminals at the Port of Charleston. (Photo/Liz Segrist)
Inland Port grows cargo volumes, customers By Bill Poovey
C
bpoovey@scbiznews.com
argo business at the S.C. Inland Port in Greer is exceeding expectations, and more customers are signing on to use the 18-month-old railtruck terminal, according to port officials. The S.C. State Ports Authority is now operating the $47 million rail-truck operation near Interstate 85 seven days a week, up from six, to meet demand from BMW. The neighboring automotive manufacturer uses the inland port to move cars from Greer to the Port of Charleston for export. Terminal manager Michael Hoffman said that since the port opened in late 2013 with BMW as its lone customer, businesses in eastern Tennessee, western North Carolina and north Georgia have discovered that the inland port offers cost and operational advantages over long-distance trucking. A Norfolk Southern train runs overnight from Charleston to Greer, stops at the inland port to drop off containers and continues on to Atlanta. In the evening, the train runs in reverse, picking up containers in Greer before heading to Charleston. The port declined to name specific customers. Ports Authority CEO Jim Newsome said that more than 10 companies use it currently. BMW and the Adidas distribution center in Spartanburg have confirmed that they are customers. Hoffman said that the inland port has a growing list of customers — some of which might open operations in the area — and that BMW accounts for about 60% of the terminal’s overall volume. The rail service can move more than 200 containers a day, according to Hoffman. The inland port recently moved a record 219 import containers off the rail and onto trucks. “I’ll be the first to admit that a truck can move freight faster from this part of
the state down to Charleston, in about four hours, but that’s only one box. ... We can move an extremely large volume of cargo very quickly, overnight.” he said. Hoffman said the cost of shipping between the inland port and Charleston is “equal or lower” than shipping by truck. “When you compare the price to truck from here to Charleston is around $800,” he said. “To rail is significantly less. So here is a huge savings there.” S.C. Trucking Association President and CEO Rick Todd said in an email that the $800 cost figure is “misleading.” Asked about the amount Norfolk Southern charges customers for shipping from the inland port to Charleston, Todd said: “That is the million-dollar question. From the trucker’s perspective, it depends on who the customer is.” Todd said some shippers use trucks “because it is overall cheaper for them compared to rail.” He said truckers like the inland port because “access is easier from a credentialing standpoint, and the port is open 24 hours, seven days a week.” Hoffman and Norfolk Southern executives who spoke at an Upstate S.C. Alliance event said intermodal operations like the inland port are replacing long-distance trucking. “A (truck) driver can do four or five short local moves here in the area,” Hoffman said. “When they time out at the end of the day, they are sitting at their dinner table eating supper and sleeping in their own bed. In the past, a lot of them were sleeping in the cab of their truck at a rest area or truck stop somewhere on the interstate.” S.C. Ports Authority records show the inland port had 5,187 rail moves in March, the most since opening and more than twice as many as in March 2014. cr bj
Staff writer Liz Segrist contributed to this report. Reach staff writer Bill Poovey at 864-235-5677, ext. 104.
May 4 - May 17, 2015
IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
www.charlestonbusiness.com 23
Michelin chief says lawmakers’ job is to figure out how to fix S.C. roads Bill Poovey
F
bpoovey@scbiznews.com
ive months after describing South Carolina’s roads as a “disgrace,” Michelin North America Chairman and President Pete Selleck said he is encouraged that state lawmakers are debating road-funding measures. “Obviously we are encouraged that they are taking the issue very seriously,” Selleck said at the S.C. Manufacturing Conference and Expo in Greenville. “We are excited to see that underway, and we are reasonably optimistic.” In November, Selleck had described the state’s roads as a “disgrace” and said without a solution to a funding shortfall for road work, “Michelin is going to have to look about further expansion in this state.” The state’s highway department will need more than $40 billion above what it’s expecting to receive during the next few decades to meet state infrastructure needs, such as repairing roads, bridges and high-
“It is a tremendous opportunity right now that they have, and it’s really important that they seize that opportunity. It’s important to the future and particularly for the future of our children and our grandchildren.” Pete Selleck president and CEO, Michelin North America
Michelin North America President Pete Selleck said the state needs better roads and highways to ensure continued growth from manufacturers. (Photo/Kathy Allen)
ways, according to S.C. Transportation Secretary Janet Oakley. The S.C. House approved a bill last month that would generate more than $400 million a year by raising the state’s 16.75-cents-per-gallon gas tax by 10 cents per gallon. The House measure also would raise the maximum sales tax on cars from $300 to $500 and trim the state income tax enough to save the average taxpayer about $48 a year, backers said. While significant, the House measure
falls short of meeting an S.C. Department of Transportation estimate that the state is running about $1.5 billion short of cash annually to keep up its roads and bridges. A plan in the Senate would increase the gas tax by 12 cents a gallon and increase fees for driver’s licenses and vehicle tags to generate $800 million for roads. The Senate plan doesn’t cut income taxes. Gov. Nikki Haley has proposed raising the tax by 10 cents per gallon and reducing the state income tax over 10 years, from 7% to 5%.
Selleck said that he doesn’t have a favorite among the lineup of tax and fee increase plans and that it’s “their job to figure out how to do it.” “It is a tremendous opportunity right now that they have, and it’s really important that they seize that opportunity,” Selleck said. “It’s important to the future and particularly for the future of our children and our grandchildren.” cr bj
Reach staff writer Bill Poovey at 864-2355677, ext. 104.
24
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
May 4 - May 17, 2015
Motor Freight Lines Ranked by No. of Drivers in the Charleston Area Company
Phone/Website Email
Atlantic Trucking Co. Inc. 7240 Cross County Road North Charleston, SC 29418 Bulldog Hiway Express 3390 Buffalo Ave. North Charleston, SC 29418 CMC Landstar Ranger 669 Marina Drive Bldg#202 Suite B6 Charleston, SC 29492 B.W. Mitchum Trucking Co. Inc. 549 Long Point Road Mount Pleasant, SC 29464 TCW 2355 Charleston Regional Parkway Charleston, SC 29492
843-767-1045 www.atlantictrucking.com kevin@atltrucking.com 843-744-1651 www.bulldoghiway.com rmoseley@bulldoghiway.com 843-849-6700 www.cmc-landstar.com fred@cmc-landstar.com 843-881-5444 www.bwmitchumtrucking.com bwmtc@bellsouth.net 843-388-8688 www.tcwonline.com chsdispatch@tcwonline.com
ATS Logistics Inc. 4033 W. Montague Ave. Charleston, SC 29418
Top Local Official(s)/Year Founded
Drivers: Local/Statewide
Tractors/Trailers
Kevin O'Donnel 1985
120 150
Philip L. Byrd, Rod D. Moseley 1959
Trucking Type/Specialization
Industry Focus
150 125
Intermodal / Operates 400 Power units in the South through nine service centers
Paper, machinery
90 100
195 300
Dedicated, flatbed, intermodal / Local drayage, line haul flatbed, heavy load super bed division
Machine parts, freight and containers
Fred J Otterbein IV 1978
75 125
8,850 7,500
Ronald B. Cooper 1954
65 175
Gary Duffel 1948
843-308-6555 www.atsinc.net jimmieg@atsinc.net
Jimmie Gianoukos 1986
Partner Transport Inc. 2020 Azalea Lane Summerville, SC 29483 Tybo Transportation 7101 Design St., Suite 300 North Charleston, SC 29405 BP Express Inc. 929-B Commerce Circle Hanahan, SC 29410
843-871-4489 pti@sc.rr.com 843-529-9550 www.greatwide.com cindy_barrs@hotmail.com 843-760-0700 www.bpexpressinc.com sales@bpexpressinc.com
Ron Curry 2002
Superior Transportation Inc. 1940 Hanahan Road North Charleston, SC 29406
190 275
Bulk, dedicated, expedited, flatbed, frozen/refrigerated, hazardous materials, intermodal, LTL/TL / Full Service , OOG, Explosives, Hazmat, Air, Military Bulk, dedicated, frozen/refrigerated, intermodal, LTL/TL / secure yard, 24/7 monitor of reefer units, travel 36 states van division, intermodal dry and refrigerated, heavy hauler
chicken, paper, aluminum, wood, dry food items
65 125
86 50
Dedicated, expedited, hazardous materials, intermodal, LTL/TL / Intermodal drayage, depot services, crossdock and warehousing,
Drayage
55 60
60 17
Dedicated, hazardous materials, intermodal, LTL/TL / Local , statewide and nationwide container and dry 53' van drayage, (30) triaxle chassis'
Food-grade certified, automotive, low-grade hazardous, beverages and all products on pallets
50 5,000
5,000 5,000
Truckloads, LTL, flatbeds, rail, transloading, specialty loads
Cindy Barrs, Rose Bradford 2002
50 5
50 0
Dedicated, expedited, flatbed, LTL/TL / Third-party logistics company providing all types of transporting and trans loading nationwide, Over sized permitted loads, Step Deck, RGN's Intermodal / House carriers for International Paper and Sonoco. Have 10 local drivers, 20 dedicated and 11 road.
Ryan Justice 1995
45 45
51 0
Intermodal / Ocean container drayage, intermodal transport
Hazmat, overweight
843-740-1840 www.superiortransportation.us pat@superiortransportation.us
Patrick T. Barber, Lawrence Puckhaber 1998
40 40
40 100
Flatbed, intermodal / Heavy haul, over width, over height, high value, project cargo, Specialized trucking
Cowboy USA LLC 8100 Palmetto Commerce Parkway North Charleston, SC 29420
843-767-8693 www.cowboyusallc.com dispatch@cowboyusallc.com
Mark Derry 2005
35 20
25 25
Infrastructure (bridge girders,concrete pipe), power generation, steel and automotive machinery Hmfg plants for airplanes and vehicle mfg - Hazardous materials
Hunter Transportation Co. Inc. 2357 U.S. 17 N., Suite C Mount Pleasant, SC 29466
843-849-9192 vchambers@huntertransport.com
Randall Orvig 1998
31 0
32 0
Anyware Express 9016 Palmetto Commerce Parkway, Suite 102 North Charleston, SC 29418
843-225-6430 www.anywareexpress.com info@anyware.biz
Adam Lawrence, Cindy Myers, Al Levesque 2006
30 55
21 35
Dedicated, expedited, flatbed, hazardous materials, intermodal, LTL/TL / warehousing and 3PL Nationwide, Courier services, Over dimensional cargo all sizes and weights. Hazardous materials, intermodal / Local and over-the-road container drayage; 10x40' chassis, 2x20' Tri-axle chassis, 2x40' drop deck chassis and 2x40' 12 Pin chassis; heavy weight and Intermodal containers with hazardous materials Dedicated, expedited, flatbed, intermodal, LTL/TL / Local pickup and delivery, ground expedite, truckload, flatbed, warehousing and distribution, Warehousing, flatbeds, 24-foot straight trucks with lift gates All major verticals and Sprinter vans
LTL=Less-than-truckload. TL=Truckload. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.
Large Variety
FAK
Researched by Melissa Verzaal
May 4 - May 17, 2015
IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
www.charlestonbusiness.com 25
Motor Freight Lines Ranked by No. of Drivers in the Charleston Area Company
Phone/Website Email
Top Local Official(s)/Year Founded
Drivers: Local/Statewide
Tractors/Trailers
Lexington Intermodal 2637 Clements Ferry Road Charleston, SC 29492
843-216-1865 www.wallstreetsystemsinc.com mdaniel@chsips.com
Michael D. Daniel 1996
30 15
15 0
ATS Logistics Services P.O. Box 2078 Mt. Pleasant, SC 29465
800-323-2286 www.atsinc.com/trucking-services/ logistics-services-company.jsp scottcr@ats-inc.com
Scott Cromer 1955
25 25
2,500 3,500
GW Tanks 2025 Austin Ave. North Charleston, SC 29405
843-406-3452 www.gwtanks.com tom.oppold@gwtanks.com
Tom M. Oppold Jr. 2008
25 25
30 65
YRC Freight 2243 Wren St. North Charleston, SC 29406
800-610-6500 www.my.yrc.com customer.service@yrcfreight.com
Ron Claudon, Mary Louise Williamson, Jonathan Bryant 1924
20 80
100 200
Land Container 7150 Bryhawke Circle North Charleston, SC 29418 Liquid Box Inc. 3135 Pacific St. North Charleston, SC 29418
843-207-9080 www.evansdelivery.com arthur@teamtransportation.com 843-745-0023 www.liquidbox.us scott.liquidbox@gmail.com
Arthur O. Smith 1996
16 30
30 40
Scott Reid Adams 2007
16 25
26 40
Dedicated, expedited, hazardous materials, LTL/TL / Expedited, exhibit and trade show services, retail, oversized parcel program, volume LTL, serving Canada, Mexico, Puerto Rico, the U.S. Virgin Islands, Hawaii, Alaska and Guam Bulk, dedicated, expedited, hazardous materials, intermodal, LTL/TL / Intermodal drayage and 53 foot swing door van service. Haz mat drivers available. Intermodal / Dry and Liquid Intermodal trucking heavy and legal weight; Full flexi tank services, ISO tank chassis, tri axles 20ft & 40ft chassis available, Flexi tank
Premier Logistics Solutions 904 Commerce Circle Charleston, SC 29410
843-554-7529 www.premierlogisticssolutions.com sales@premier3pl.com
Hal R. Burton 2003
15 15
15 15
Bulk, dedicated, expedited, flatbed, hazardous materials, intermodal, LTL/TL / Hazmat, transport, overweight container, drayage, freight brokerage, freight consolidation
Logistics, warehousing, distribution fulfillment, foreign trade zone, container freight station
Service Transfer Inc. 4361 Headquarters Road North Charleston, SC 29405 Wilson Trucking Corp. 708 Jedburg Road Summerville, SC 29483 All Points Transport 1040 Lincoln Ave. North Charleston, SC 29405 ASF Intermodal LLC 2538 Clements Ferry Road Charleston, SC 29492
843-744-5470 www.servicetransfer.net jwarren@servicetransfer.net 843-871-9528 www.wilsontrucking.com csd@wilsontrucking.com 843-576-5930 asc@allpointstransport.com 843-376-1696 www.asfintermodal.com charleston@asfintermodal.com
Kermit G. Paschall Jr. 1970
14 14
14 0
Intermodal / Intermodal Only
Sealed Ocean Containers
Kirk Rogers 1978
14 60
14 10
Dedicated, expedited, hazardous materials, LTL/TL / LTL, Truckload, Dedicated/Expedited, Worldwide , various other vehicles
General Commodities
Bill Ashley 2003
12 35
35 13
Dedicated, frozen/refrigerated, hazardous materials, intermodal, LTL/TL / Port of Charleston, freight in the Southeast
HAZ MAT, Heavy, Refrigerated
Rick Pound 2011
12 26
38 25
Dedicated, hazardous materials, intermodal, LTL/TL / Intermodal throughout our 13 offices. Chicago, Dallas/FTW, Charleston, Savannah, Norfolk, Memphis, Houston, Atlanta, Mobile and Dedicated.
Intermodal and dedicated.
G&D Integrated Inc. 3350 Business Circle North Charleston, SC 29418
843-207-8094 www.gdintegrated.com rhoehne@gdtr.com
Richard A. Hoehne Jr. 2000
12 40
44 35
Dedicated, hazardous materials, intermodal, LTL/TL / Drayage, dedicated, O-T-R TL and Intermodal, 255 chassis fleet
Mining, agriculture, paper, dry grocery, machinery, heavy machinery, general commodities
LTL=Less-than-truckload. TL=Truckload. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.
Trucking Type/Specialization
Industry Focus
Intermodal / Intermodal
Intermodal Machinery, tank and overdimensional transport, plant relocations, heavy equipment, electronics, generators, crate Hazardous and NonHazardous Chemical Freight Carrier - Iso Tanks /Flexi Bag Containers
Dedicated, expedited, flatbed, frozen/refrigerated, LTL/TL / Specialty vans, Heavy Haul, Specialized, Project Freight , Van, Specialized, Heavy Haul Hazardous materials, intermodal / Iso Tank Freight Carrier, Flexi bag Carrier, Container Carrier
General Freight
Customer satisfaction Anything
Researched by Melissa Verzaal
26
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IN FOCUS: PORTS, LOGISTICS AND DISTRIBUTION
May 4 - May 17, 2015
Motor Freight Lines Ranked by No. of Drivers in the Charleston Area
Company
Phone/Website Email
Top Local Official(s)/Year Founded
Atlantic Intermodal Services 2500 Clements Ferry Road, Suite A Charleston, SC 29492
843-216-1045 www.atlanticintermodal.com aissales@atlanticintermodal.com
Barnhart Crane and Rigging Co. 2120 Noisette Blvd., Suite 106B North Charleston, SC 29405
Drivers: Local/Statewide
Tractors/Trailers
Jeff Banton 2006
10 40
843-414-3280 www.barnhartcrane.com mlpowers@barnhartcrane.com
Jeff A. Bailey 1969
Intermodal Cargo Services Co. LLC 2650 Carner Ave. Charleston, SC 29405
843-723-7788 www.intermodalcargoservices.com rates@assoctrans.com
RoadOne 2003 Cherry Hill Lane Charleston, SC 29405
Trucking Type/Specialization
Industry Focus
40 10
Intermodal / Container drayage
Freight of all kinds
10 20
20 40
Dedicated, expedited, flatbed / Strategically located and offers port facilities with barge access and rail services. We handle transportation and heavy haul logistics for oversize and overweight transports. We are equipped to handle unloading from ship's gear and provide anchor-to-anchor bolt services., Heavy lift/rigging and Heavy haul/transportation
Nuclear power, Department of Energy, fossil fuel, chemical, heavy industrial, commercial, ports, paper and pulp, manufacturing
Bobby Knight 1970
10 30
30 0
Intermodal / Local and Over the Road
textiles
843-723-5008 www.roadone.com charleston@roadone.com
Jeremiah Carruthers, Boyd Abernathy 1928
10 50
50 0
Hazardous materials, intermodal / Intermodal Containers
International and Domestic Container Shipping
Saia LTL Freight 1015 Bankton Circle Hanahan, SC 29406
800-765-7242 www.saia.com customerservice@saia.com
Bryan Sedell 1924
10 75
4,000 12,000
Expedited, hazardous materials, LTL/TL / Saia offers customers a wide range of LTL services through its network of 147 terminals in 34 states.
General commodities
Sunteck Transport 85 Vincent Drive Mount Pleasant, SC 29464
843-971-0181 www.suntecktransport.com peter@suntecktransport.com
Peter G. Wallace 2000
10 20
20 20
Bulk, dedicated, expedited, flatbed, frozen/refrigerated, hazardous materials, intermodal, LTL/TL / Truckload
Truckload
Port City Transportation 1003-A Lincoln Ave. North Charleston, SC 29406
843-747-7188 www.portcitytrans.com john@portcitytrans.com
Jerry Pope 1985
5 16
0 0
Dedicated, intermodal / Intermodal
Intermodal
3R of Charleston Inc. 238 Eagle Drive Goose Creek, SC 29445
843-824-0711 www.3rofcharleston.com walt@3rofcharleston.com
Tom Rhodes 1990
4 4
12 8
Intermodal / Oily water disposal, industrial cleaning and recycling
-
Jolly Roger Trucking 2071 Vestry Drive Charleston, SC 29414
843-696-4302 Kevin L McKeithan www.jollyrogertrucking.com greasejunkie@jollyrogertrucking.com 2008
4 -
3 0
Intermodal / Local container drays
Containers
Robin's Messenger Service 113 Newcastle Loop Goose Creek, SC 29445
843-513-4471 www.robinsmessenger.com rmsfrt@yahoo.com
Robin E. Todd 1981
4 0
0 0
Dedicated, expedited, LTL/TL / Hot shots, time sensitive delivery, local delivery
Customs brokers, warehouses, automotive plants
Goodsell Transport LLC 511 Old Mt. Holly Road Goose Creek, SC 29445
843-797-3111 www.uswr.net info@uswr.net
Paul Goodsell 2005
3 0
4 6
Bulk / Glycol; accepts oily wastewater mostly from ships in the Port of Charleston and local industries; cleanup operations, Bulk Tanker, Vacuum Tanker, Air Mover, Dumper Trailer.
Disposal; vacuum tanker services; wastewater disposal; industrial clean up. Spill, Emergency response.
Regal Logistics 1980 Technology Drive Charleston, SC 29492
866-300-5580 www.regallogistics.com sales@regallogistics.com
Garry Neeves 1970
3 3
3 1
Dedicated, intermodal, LTL/TL / Regal dedicated trucking/drayage service, chassis pool, distribution, pick and pack, export/import shipping, consolidation, cross docking, trans-loading, administrative support, drop shipping, value added services, 351,000 sq. ft. of warehouse space, 10 Chassis
Retail, seasonal, toys, apparel, electronics, footwear, chemicals, hardware, housewares, textiles, home furnishings
IDEA, LLC 6331 Fain St. North Charleston, SC 29406
843-744-2727 www.ideallc.com tomdemuth@ideallc.com
Tom DeMuth 1999
2 2
1 3
Flatbed, intermodal / Focused on local drayage, local home delivery and specialty flatbed, various small trucks
Textiles, consumer goods
Performance Team 400 Long Point Road, Building 402 Mount Pleasant, SC 29464
843-416-5924 www.performanceteam.net marketing@performanceteam.net
Terry Vera 1986
2 2
0 0
Dedicated / Port drayage, Local drayage, transload, FTZ, value-added services, EDI interfacing, etc.
Retail, manufacturing, apparel, consumer electronics, home goods, footwear
TranSouth Logistics 4210 Azalea Drive Charleston, SC 29405-7407
866-587-6884 tran-south.com TSLCS@tran-south.com
Craig Hollowell 2003
2 8
8 10
Bulk, dedicated, hazardous materials, LTL/TL / LTL/TL Hard to handle freight Warehousing
Flooring, Glass, Textiles
A&S Intermodal Services Group 1011 Trident St. Hanahan, SC 29410
843-576-2426 www.aandstrucking.com kennethkelly@aandsintermodal.com
Rick L. Kelly, Kenneth Kelly 1980
0 11
11 0
Dedicated, expedited, flatbed, frozen/refrigerated, hazardous materials, intermodal, LTL/TL / Intermodal
Transportation warehousing logistics
Fastrans Intermodal 1301-B Charleston Regional Parkway Charleston, SC 29492
843-416-2159 www.fastransintermodal.com clarke@fastransintermodal.com
Clarke Seaton 2009
0 15
0 12
Intermodal / Intermodal drayage
Intermodal drayage
Grey Wolf Logistics 509 Long Point Road Mount Pleasant, SC 29464
843-764-3860 cherylg@homesc.com
Cheryl Griffin 2014
0 0
10 0
Dedicated, flatbed, frozen/refrigerated, intermodal, LTL/TL / otr fcl out of ports and rail of Charleston, SC
Containers, domestic
Holy City Solutions 904 Commerce Circle Charleston, SC 29410
843-202-2149 www.holycitysolutions.com burtonb@holycitysolutions.com
Elizabeth Burton 2006
0 0
0 0
Bulk, dedicated, expedited, flatbed, hazardous materials, intermodal, LTL/TL / Logistics, warehousing, WBE business is partnered with an SDVOSB/VOSB business with the trucking transportation resources listed (drivers and equipment)
R&R Express Inc. 2927 Riverwood Drive Mount Pleasant, SC 29466
843-388-9792 dispatch.rrexpress@comcast.net
James Pierantozzi 1999
0 33
33 0
Dedicated, intermodal / Intermodal container drayage, power only, one-way & round trip container drayage.
Auto parts, textiles, general commodities
Rogers & Brown Custom Brokers Inc. 2 Cumberland St. Charleston, SC 29401
843-577-3630 www.rogers-brown.com -
Raymond Kelley, Gabe McGann, Mark Hughes 1968
0 0
0 0
LTL/TL / Automotive, paper, chemicals, retail, food and beverage
Automotive, chemicals, retail, food and beverage
LTL=Less-than-truckload. TL=Truckload. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.
Researched by Melissa Verzaal
At Work:
People, places and happenings across the Lowcountry
Hot Properties 29 Viewpoint 31
People in the News
Business Digest
MANUFACTURING
Verizon marks employment milestone Verizon Wireless held an appreciation dinner for several Charlestonarea organizations to recognize them for assisting the company in filling 346 jobs in 2014. Verizon gave special recognition as community partner of the year to SC Works, a statewide organization dedicated to linking job seekers with employers. SC Works regularly works with Verizon to hold Charleston-area job fairs, interview events and overall career preparation workshops. Verizon celebrated reaching its goal of hiring 346 new workers in 2014 with an appreciation dinner for the Lowcountry organizations that helped the company reach its goal.
Products, secretary; Dr. Jennifer Fiorini, The Breast Place, fund development chairwoman.
Lily Rain open in Mount Pleasant
9Round trainer Byron Addison (from left), 9Round co-owner Reba Cole and son Tucker, Summerville Mayor Bill Collins, Greater Summerville/Dorchester County Chamber of Commerce President and CEO Rita Berry; 9Round trainer Erick Sanderson and 9Round co-owner Billy Cole celebrate the facility’s recent grand opening.
9Round celebrates grand opening in Summerville
The Greater Summerville/Dorchester County Chamber of Commerce and 9Round 30 Minute Kickbox Fitness held a ribbon-cutting ceremony to celebrate the gym’s grand opening at 109 E. Grandview Drive in Summerville. 9Round is a fullbody, 30-minute workout with no class times; rounds, which include a trainer, start every three minutes.
Komen foundation names new 2015-17 board of directors
The Lowcountry Affiliate of Susan G. Komen, a breast cancer fundraising and awareness organization, has announced its 2015-17 board of directors: Shirley Nilsen, East Cooper Medical Center, president; Stacey Hollings, Elliott Davis LLC, treasurer; Leslie Haywood, Charmed Life
Lily Rain is opening its newest location in Towne Centre in Mount Pleasant. Lily Rain is a national retailer of clothing, accessories and home decor. Designers carried by the store include Chan Luu, Sara Designs, Paige Denim, Original Minerals, Soludos Shoes, Tom Dixon, Jonathan Adler, Monserat De Lucca, Dogeared, Davis Studio, Oliver Peoples West Sunglasses, Nest, Cynthia Vincent, Prudence Jewelry, REN Skin Care and Tokyo Milk. The new store is located at 1239 Belk Drive, Suite 101, Space X2. Lily Rain also has locations in Houston, San Antonio and Plano, Texas, and Birmingham, Ala.
project, the Hilton Garden Inn in Mount Pleasant, and is in the early stages of design for a Hilton Homewood Suites off Ashley Phosphate Road.
John Holloway (from left), CEO of the Medical Society of S.C. and Roper St. Francis Physicians Endowment; Summerville Mayor Bill Collins; Greater Summerville/Dorchester County Chamber of Commerce president and CEO Rita Berry; and Kay Phillips, executive director of Dorchester Children’s Center, cut the ribbon on the center’s new expansion.
Dorchester Children’s Center celebrates grand opening
R IV Architecture firm to open office in North Charleston
R IV Architecture P.A. is opening an office June 1 on Rivers Avenue in North Charleston. R IV is a commercial architectural firm with a focus on hospitality. Michael J. Remesi is president of R IV, which just completed its most recent
The Greater Summerville/Dorchester County Chamber of Commerce and Dorchester Children’s Center held a ribbon-cutting ceremony to celebrate the grand opening of the center’s 6,000-square-foot building addition. The center provides support and service for victims of child abuse. The recent expansion gives the center extra room to conduct day-to-day operations and for growth. See BUSINESS DIGEST, Page 29 ➤
Susan Brock has been promoted to CFO of Cargo Composites, a producer of lightweight cargo containers that fit in the belly of wide-body airplanes.
FINANCIAL SERVICES CresCom Bank has promoted John Riddick to Charleston commercial market executive and senior vice president; Bailey Gronbeck to branch manager for the James Island branch location; Jordan Miller to vice president; and Dawn Small to assistant vice president and university training consultant; and has hired Jeff Fleming as vice president and Summerville executive. Riddick joined CresCom in February 2014 as a commercial relationship manager. He earned a Bachelor of Arts in economics from Wofford College. Gronbeck joined CresCom in July 2013 as a customer service representative. She earned a Bachelor of Science in business administration from Appalachian State University. Miller will also continue as credit department manager, a position he’s held since January 2014. Small joined the bank in 2014 as an instructor for the internal training and development program. Fleming most recently served as vice president and business services officer for BB&T. He has a degree in finance and economics from Lander University. UBS Financial Services has hired Karl I. Riner to lead its Charleston wealth management business on Daniel Island. Riner has 32 years of experience Riner in financial services and is a graduate of Syracuse University.
ENGINEERING Jack Brandon has joined Hannah Solar Government Services as project engineer. He graduated from North Carolina State University with a dual degree in comBrandon puter engineering and electrical engineering, with a concentration in renewable electrical energy systems. See PEOPLE, Page 30
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Europe and Asia on the mend
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rowth in Europe and Asia is projected to be relatively anemic this year. But these regions are receiving considerable stimulus from a variety of sources, and growth could turn out to be more robust than is generally anticipated.
Europe
First, in January, European CenStephen D. tral Bank PresiSlifer dent Mario Draghi announced a quantitative easing strategy similar to the one adopted by the Federal Reserve. The European Central Bank intends to purchase securities amounting to 60 billion euros per month through the end of September 2016 or until it sees a sustained upward adjustment in the path of inflation. That means the package will amount to at least 1.1 trillion euros. This aggressive action by the European Central Bank sent a strong message about its determination to address the challenges that have been stalking the continent. Second, the quantitative easing program has also weakened the euro. In fact, the euro has fallen 22% in the past year from $1.38 per euro to $1.08. This means that European goods are now cheaper for Americans to buy, which will, hopefully, stimulate demand for European exports and provide further stimulus for the region’s economy. Finally, Europe is an oil-importing region, which means that, like the United States, European consumers now pay less to fill their car’s tank with gas. The cost of Brent crude declined 60% from a high of $113 per gallon in September of last year to $45 by mid-January, before rebounding to about $60 currently. With crude oil storage facilities around the globe near capacity, prices will remain low for the foreseeable future. In response to this combination of events, European stock markets are surging. The Euro Stoxx 50 has climbed 10.0% in three months as investors put their stamp of approval on the program. The German stock market, the Dax, jumped 15.0% in the same period of time.
Asia
The story for Asia depends to a large extent on what happens to China on one side and Japan on the other — the world’s second- and third-largest economies. In China, growth in gross domestic product is slowing down as government officials orchestrate a shift from an industrial-based economy to more consumer-driven growth. Growth has
“Also like the United States and Europe, Japan is an oilimporting nation and benefits from the dramatic drop in oil prices that has occurred since September.” slowed from a double-digit pace in 2010 and 2011 to 7.4% last year, and it is expected to slide further, to 6.8% this year. But the Hang Seng stock market index in Hong Kong has risen 17% in the past three months to its highest level thus far in the cycle. If growth is sputtering, why are stocks doing so well? Japan’s story is quite different. Like the United States and Europe, the Bank of Japan is pursuing a quantitative easing strategy. This program has caused the yen to weaken 55%, from 77 yen per dollar at the end of 2012 to 120 yen currently. That will, hopefully, make Japanese goods more attractive to foreign buyers and stimulate growth in exports. Also like the United States and Europe, Japan is an oil-importing nation and benefits from the dramatic drop in oil prices that has occurred since September. The prospect of more robust economic activity — triggered by the dramatic shift in monetary policy, a weaker currency, and lower oil prices — has lifted the Japanese stock market 34% during the past year, to the highest level since the mid-1990s. Japanese investors seem to think this combination of events could actually work. Our sense is that economists are unduly pessimistic about GDP growth prospects outside the U.S. Quantitative easing programs in Europe and Japan ensure that extremely low interest rates will prevail at least through the end of next year. Those same quantitative easing programs have significantly weakened the euro and the yen and boosted the value of the dollar. That has the impact of shifting GDP growth from the United States, where growth is relatively robust, to Europe and Japan, where GDP growth is more modest. A rebalancing of world growth is not a bad thing. Finally, the drop in oil prices will stimulate growth in almost all developed countries. This combination of events should provide a welcome boost to GDP growth in Europe and Asia in particular. cr bj
Reach economist Stephen D. Slifer at steve@numbernomics.com.
May 4 - May 17, 2015
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Business Digest Ravenel Associates opens new brokerage, development division
Ravenel Associates is launching Ravenel Commercial Properties, a commercial real estate brokerage and development division that will focus on land, office, industrial, retail and investment property in Charleston, Dorchester and Berkeley counties. The new office is at 960 Morrison Drive in downtown Charleston. Jules Deas is broker in charge of the new division.
JTE Marketing merges with Print Management Solutions
Charleston-based JTE Marketing Group has merged with Print Management Solutions. The merger gives JTE Marketing the capability to add printing to its existing services of website design, content and social media management, marketing strategy and consulting.
SCRA Technology Ventures adds 3 companies to programs
SCRA Technology Ventures has added two new companies to its SC Launch Program and one to its Resource Partner Network. Charleston company ToleRaM
Nanotech and Upstate company Purilogics were recently accepted as client companies and Florence-based HillSouth is now a member of the Resource Partner Network. ToleRaM Nanotech focuses on synthesizing nanoparticles to aid in organ-transplant surgery.
ServisFirst Bank earns investment-grade ratings
ServisFirst Bank, a subsidiary of ServisFirst Bancshares, has earned investment-grade ratings from the Kroll Bond Rating Agency. The bank was assigned a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB, a short-term rating of K2 and an outlook of stable. ServisFirst Bank was assigned a senior deposit rating of A-, a short-term rating of K2 and outlook of stable.
footwear, accessories and items for the home.
SCRA’s Stage 2 invests in Integrated Biometrics
The Stage 2 affiliate of Summerville-based SCRA has made a Technology Ventures investment in Spartanburg-based Integrated Biometrics. The Upstate firm develops and manufactures small, lightweight, FBI-compliant fingerprint scanners. SCRA’s Stage 2 sponsors investments of $1 million to $5 million in mature, S.C.-based technology companies. It invests its capital in partnership with outside, private investors.
Mungo Homes names 2015 advisory board
A new Tommy Bahama store is set to open on May 4 at Freshfields Village, at the crossroads of Kiawah, Seabrook and Johns islands. The Seattle-based island-lifestyle brand sells men’s and women’s sportswear, swimwear,
Mungo Homes has appointed its 2015 Charleston Realtor Advisory Board: Gray Bailey, Drake Herrin, Katherine Keadle, Diana Johnson-Pellum, Tom Tillery and Deb Walters of Carolina One Real Estate; Becky Barrett of Agent Owned Realty; Ron Henderson of Century 21; Jennifer Finger Krause of Coldwell Banker; and Mattie Nesmith of The Elite Realty Group.
to Orrie Lee Tawes III and Satinwood Ltd. Gerry Schauer of Avison Young represented the tenants.
in downtown Charleston to Raven Cliff Co. Michael Wooddy of Raven Cliff Co. represented the buyer.
Thomas G. Buist of Lee & Associates Charleston represented the seller, ITT Aerospace Controls LLC, in the sale of a 41,816-square-foot industrial building at 5154 U.S. Highway 78 in St. George to Comact Equipment Inc. for $850,000. Charlie Moore of Carolina Commercial LLC represented the buyer.
Todd P. Garrett of Avison Young represented Infinger Family LLC in the lease extension of a 4,500-square-foot office and warehouse building at 4748 Franchise St., Suite C, in North Charleston to K Construction Co. Inc.
Tommy Bahama retail store opening on Kiawah Island
Hot Properties The following commercial real estate transactions were recently completed in the Charleston area. For weekly updates on commercial deals, see the Hot Properties feature every Monday in the Daily Journal email or online at www.charlestonbusiness.com. To submit items for the feature, send email to dailyjournal@scbiznews.com. Jack V. Owens of Lee & Associates Charleston represented the seller, North Central Apartments L.P., in the sale of a 31,711-square-foot former skating rink at 1056 King St. in downtown Charleston for $1.225 million. R. Hamilton Morrison with Reyworks LLC represented the buyer. Thomas Boulware VI and Dexter Rumsey IV of NAI Avant’s Charleston office represented the seller, MWVParks of Berkeley LLC, in the sale of a 1.607-acre outparcel in MeadWestvaco’s Nexton development, at the intersection of Interstate 26 and U.S. Highway 17-A in Summerville, to Fenton Development Group, for Rainbow Child Care Center, for $482,100. Edward Robinson of The Beach Co. represented the landlord, Sherry Lee Taylor, in the lease of 1,200 square feet of office space on the second floor at 178 1/2 King Street in downtown Charleston
Jeremy Willits and Gerry Schauer of Avison Young represented the landlord, Long Point Center LLC, in the lease of a 7,027-square-foot office space at 503 Wando Park Blvd. in Mount Pleasant to Lueder, Larkin & Hunter LLC. Tradd Varner of Coldwell Banker Commercial represented the tenant. John H. Tison of Cushman & Wakefield Thalhimer represented the buyer, Bartlett Tree Experts, in the purchase of a 9,000-square-foot flex building on 1.2 acres at 2285 Technical Parkway in the Wildwood Business Park in North Charleston from Plan C Investments LLC for $781,000. Patrick Bell of Dunes Commercial Properties and Kristin Walker of Dunes Properties of Charleston represented the seller in the sale of 706 Meeting St.
Thomas Boulware of NAI Avant’s Charleston office represented the landlord in the lease of 1,000 square feet of space at Midway Plaza, 1300 Savannah Highway, Unit C, in Charleston, to the electronic cigarette group Zuluvape. Todd P. Garrett of Avison Young represented the buyer, 1063 Morrison Drive LLC, in the purchase of a 7,364-squarefoot office and warehouse building at 1063 Morrison Drive in Charleston from Lord & Evans Investment Corp. LLC for $1.087 million. J. Steve Wray of Carolina One Real Estate Services represented the seller. Amanda Reeves and Jack Owens of Lee & Associates Charleston represented the buyer, King Street Partners LLC, in the purchase of 583 King St. in Charleston for $3.325 million from TKH Holdings Group LLC. Anton Sedalik of Prospect Real Estate Brokers LLC represented the seller.
Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.
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People in the News Thomas & Hutton has appointed Steve Dudash as Charleston regional director and named Tony Woody a vice president and civil engineering departDudash ment manager in the Charleston office. Dudash joined the company in 2014; he earned a bachelor’s degree in horticulture from Clemson University and a master’s degree in landscape architecture from Louisiana State University. Woody earned a Bachelor of Science in civil engineering from North Carolina State University. Additionally, former president and CEO Mitchell Bohannon returned to full-time work as an engineering consultant with the company. Anchor Consulting Engineers LLC has hired Andrew C. Gillette as an assistant project manager. Gillette has 20 years of experience in land development, land surveying, AutoCad design and construction management. He is a 1997 graduate of The Citadel with a degree in civil engineering and has been a licensed surveyor in South Carolina since 2009.
CONSTRUCTION John Garfield has been hired by Pella Window and Door as trade sales manager for the company’s new Charleston office at 3375 Maybank Highway.
Robbins
Marino
Frampton Construction has promoted Derek Robbins to director of preconstruction and hired Phillip Marino as assistant preconstruction manager. Robbins was hired in 2012 as preconstruction manager and has more than 25 years of experience in the construction industry. He is a graduate of Appalachian State University, where he studied construction management and marketing. Marino, who holds a bachelor’s degree in civil engineering from The Citadel, has been in the commercial roofing industry since 2010. He previously served as an estimator and project manager for Baker Roofing. Courtney Lydecker has been named marketing coordinator for the Charleston-
Myrtle Beach division of Ryland Homes, and Neal Crisp was named sales assistant for The Elms in North Charleston and The Landing at Poplar Grove in Ravenel. Lydecker formerly served more than four years as business development manager at Kia Country of Charleston. She holds a bachelor’s degree in business administration with a focus on marketing and management from Coastal Carolina University. Crisp received his real estate license in 2009 and was formerly in property management at Carolina One real estate in Charleston.
HOSPITALITY & TOURISM
Morris
Michael Morris was recently named wine director of The Park Cafe in downtown Charleston. Morris moved to Charleston from New York City in 2005 and has been with The Park Cafe since April 2014.
HEALTH CARE Charleston Veterinary Referral Center has added Dr. Samantha Nelson to its surgery team. Nelson has extensive experience with cranial cruciate ligament injury in dogs and determining the optimal surgical treatment for it. She also specializes in trauma, oncology and minimally invasive procedures. Dr. Benjamin Toll has been named associate professor in the Medical University of South Carolina Department of Public Health Sciences. He has also been appointed as chief of tobacco cessation and health behaviors. Prior to joining MUSC, Toll was an associate professor of psychiatry at Yale University and director of the tobacco cessation program for Yale Cancer Center’s Smilow Cancer Hospital. Toll earned a bachelor’s degree in psychology from Cornell University and a master’s degree and doctorate in clinical psychology from Nova Southeastern University. He completed a postdoctoral fellowship at Yale University School of Medicine and VA Connecticut Healthcare System. Kevin Scoggin has been named COO for Summerville Medical Center. He previously was COO of Kingwood Medical Center in Kingwood, Texas. He earned a bachelor’s degree from Texas A&M University and a master’s in health care administration from Trinity University in San Antonio.
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
Veto override might be only avenue to fixing S.C. roads
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large coalition of statewide associations and local chambers with personal and business road-user constituencies sent a letter to the state Legislature urging them to pass a real road-fix bill this 2015 session. Piecemeal funding was provided in 2013 from budget redirects, appropriations and onetime surpluses. But J. Richards long-delayed maintenance and needTodd ed major upgrades will cost hundreds of millions more than can be taken from existing state funds. Basic needs are a fiscal reality, confirmed by objective, rational analysis. We’ve done it, and we represent groups that dislike government regulation and taxation as much or more than any. Politically inseparable issues like the Transportation Department’s structure/ “reform,” how to reduce the number of roads the “state” should be responsible for, and tax cuts further complicate things. We assured the Legislature that we support the current system of user fee-
Editor's note:
If the S.C. Senate does not take up debate on its version of the roads bill before the legislative session ends, the bill would be shelved until next session. By press time, the Senate's intentions were not clear.
based financing of road infrastructure. Businesses and citizens demand services and have been willing to pay for them when the fees are direct, dedicated, fairly apportioned and efficiently administered. An entire generation has passed since our citizens agreed to pay more for the use of our road system. Our current user fees do not adjust for inflation, unlike other tax revenues that ride up with values/prices. Hence, the buying power of these user fees has been greatly diminished and we are now literally paying the price for inaction. Adjusting these user fees would provide the investment capital required for more modern, safe and efficient road systems which serve our citizens and their commerce. So, we urge the Legislature to act on this initiative in this 2015 session. Because if they don’t, it will likely be years before they can. Here’s why. Next year our state will be one of the Republican presidential primary epicenters, and big-money groups will be here
ginning up their bases, railing against (federal) government spending. They will flood our airwaves, confusing voters and intimidating our local elected officials. 2016 is also a re-election year for our legislators, and conventional wisdom holds that tax issues are too hot for even normal election cycles. The most active “tax protesters” are the vocal minority, technology-enabled and energized by out-of-state-financed organizers. We’re already getting robocalls and other messaging attacking the “gas tax” and our conservative legislators who are willing to tackle and resolve this issue. We should not allow them to hijack an issue that greatly determines our quality of life. Without action this 2015 legislative session, the governor will beat up on the General Assembly as a whole, and select lawmakers in particular, for “not fixing our roads, not cutting taxes and the goodold-boys taking back control of the DOT Commission by sunsetting the secretary’s post.” Even though it’s a win-win-win for her, it keeps the status quo for our roads. That should be unacceptable to everyone. Cutting and reforming taxes, while well and good, is most difficult because every group, profession and occupation is a “special interest group,” with their own tax preferences. Adjusting road-use fees
strictly for road improvements should be separate and distinct from this larger debate. Up to now, it always has been. We think a better solution is compromise. But if they can’t get close enough, yet find a way to pass a good road fix bill only to have it vetoed, they’ll have to muster a two-thirds majority within the House and Senate for an override. That’s the Legislature’s prerogative as the people’s directly elected representatives. In some respects, with a veto override, everybody wins. Our roads get the long-overdue attention they need, the legislators show that a supermajority accepted the challenge and bit the bullet collectively, the Legislature and the governor can check this off the state’s priority list, and the governor’s quest for fiscal purity is preserved ... she can blame the Legislature. We urge citizens to press their members of the General Assembly to immediately take up the mantra “I Voted to Fix Our Roads in 2015.” On that score, we could truly say to our citizens and industry: “It’s a great day in South Carolina.” J. Richards Todd is president and CEO of the S.C. Trucking Association and is active in the Coalition for Road and Bridge Improvements.
Build U.S. infrastructure with American companies, workers
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By David Zalesne
n May 31, funding for all federal highway, bridge and transportation projects will expire. Until then, expect to hear about the need for a long-term, well-funded infrastructure program. But as the clock ticks down to zero, expect to hear about a short-term extension being cobbled together, funded by gimmicks and transfers to keep projects from shutting down. This has become our federal approach to infrastructure — agree on the need to invest, but squabble over funding sources and priorities until nothing gets done. Funding sustained infrastructure construction would unleash enormous benefits through the economy: skilled labor job creation, improved productivity, and better and safer transportation systems. So as a first step, take away the excuses for doing nothing. Infrastructure development is a core function and responsibility of the federal government. Article I, Section 8, of the Constitution grants Congress the power
to establish “post roads.” As transportation needs expanded beyond post roads, our national commitment to infrastructure remained strong. We built an extraordinary network of highways, bridges and transportation systems, which drove extraordinary economic growth and personal and societal mobility. Infrastructure proved to be exceedingly worthy of the public care, as James Madison predicted in the Federalist Papers. But infrastructure is not static, and it requires new ideas and new investments as demographics and technologies evolve. To keep pace with modern needs, the administration has proposed the Grow America plan — a six-year, $478 billion investment in American infrastructure. Recently, Vice President Joe Biden and Transportation Secretary Anthony Foxx visited our steel fabrication plant in Columbia. They saw firsthand how manufacturers depend on infrastructure to get raw materials and employees to our plants and to get finished goods from plants to customers and ports. They heard from employees who are forced to waste
time and money in traffic jams and car repair shops due to “malfunction junctions” in Columbia — and virtually every other American city. They noted demographic trends that make roads designed decades ago inadequate today, let alone for expected usage 20 years from now. Surrounded by steel, and speaking to our employees fabricating that steel for major construction projects, Biden recalled that growing up in Delaware, the steel industry was the backbone of the middle class. Steel not only created the bridges and buildings that made our infrastructure systems work, it created the jobs that made our nation work. “The question we have to answer, both here and throughout the country, is not ‘What is the cost of doing this?’ but ‘What is the cost of doing nothing?’ ” Biden said. Gas taxes have historically been a fair and democratic method for funding roads; the people who use the roads more pay more of the costs for building and maintaining them. But there is more to infrastructure than just roads, and there are other ways to apportion costs
among beneficiaries. Like most funding issues, the solution requires creativity and leadership. But any funding plan must also recognize that infrastructure is more than a business opportunity; it is a public trust. To that end, Congress has enacted important Buy America laws, to ensure that American tax dollars are reinvested in the U.S. economy. While public-private partnerships and infrastructure banks may be part of a solution, they cannot become vehicles for circumventing safeguards that mean America’s infrastructure is built with American material, American labor and American quality. No funding plan is worth ceding our infrastructure base to China. That’s exactly the type of solution Grow America embodies. In the coming weeks, Congress should move forward and pass this long-term, well-funded infrastructure plan for America before the current funding expires. It is their obligation, rooted in our Constitution. David Zalesne is the president of Owen Steel Co. in Columbia.
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