2012 Sep-Oct South Carolina Business by South Carolina Chamber of Commerce

S eptember /O ctober 2012 V ol . 33 | N o . 5

Manufacturing

South Carolinaâ&#x20AC;&#x2122;s Worldwide Reach Sequestration Takes Aim The State of Infrastructure FUJIFILM

A Broader Focus

Tire Empire

We bring advanced HVAC technology to the nation. And jobs to South Carolina.

Allied Air™ builds some of the nation’s most technologically advanced heating and cooling products under the Armstrong Air,™ AirEase,™ Ducane,™ Concord,™ Magic-Pak™ and Allied Commercial™ brands. We’re proud to say, we build them right here in South Carolina, bringing more than 500 jobs to our state, along with major support to local vendors. Because we believe in our community as much as we believe in our technology.

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TRANSFORMING THE MANUFACTURING LANDSCAPE®

Tubes manufactured by Sonoco for a South Carolina textile yarn plant The cutting-edge technologies employed by today’s manufacturers give rise to unique issues in business transactions, regulatory compliance, and dispute resolution. Haynsworth Sinkler Boyd has more than 30 attorneys dedicated to the Firm’s packaging, automotive, textile, medical device, and chemical manufacturing clients. We work hand-in-hand with our clients in: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Negotiation of domestic and global supplier and customer contracts Domestic and international acquisitions and divestitures of assets and businesses Real estate Employment law and executive compensation Intellectual property Environmental permitting and compliance Economic development incentives Securities registration and reporting compliance Commercial and collection litigation International, federal, and state tax advice Conventional and tax-exempt debt and equity financing

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Anne S. Ellefson, Managing Directoror, 75 Beattie Place, 11th Floor, Greenville, SC 29601

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FEATURES

Sequestration takes aim at South Carolina’s burgeoning defense industry........................................10

By Sandy Mau

The state of South Carolina’s infrastructure............12 By Julie Turner

A glimpse into the business world................................14 By Robbie Barnett A broader focus...........................................................16

By Matthew Gregory

South Carolina’s tire empire.........................................20 By Dana W. Todd

ECONOMIC DRIVERS Manufacturing rebirth and the missing skills issue • Robbie Barnett. ...................... 4 The resurgence of U.S. manufacturing • Jay Timmons........................................... 4 Rational reforms to Medicaid • Robby Kerr............................................................ 5 Promoting manufacturing careers for the future • Ann Brown.............................. 7 Grassroots meetings proactively identify legislative priorities • Julie Scott.............. 7

14 20

D E PA RT M E N T S Message from the President......................................3

Member News...........................................................30

Otis Rawl Welcome, New Members.........................................31

After the Event

2012 Manufacturer of the Year Awards...........24

Events Calendar.........................................................32

Tish Anderson

Advertiser Index........................................................32

Upcoming Events

33rd Annual Summit...........................................26

Diversity Awards..................................................28

The opinions and views expressed by the contributors to this publication do not necessarily reflect the opinions and views of the South Carolina Chamber of Commerce, its staff or members.

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A M e ss a g e f r o m t h e P r e s i d e n t ~ O t i s R a w l

September/October 2012 Volume 33, Number 5

South Carolina Chamber of Commerce 1301 Gervais Street, Suite 1100 Columbia, South Carolina 29201 800.799.4601 www . scchamber . net

M P resident & C hief E xecutive O fficer OTIS RAWL V ice P resident of P ublic P olicy & C ommunications DARRELL SCOTT A ssociate V ice P resident of C ommunications

JULIE SCOTT G raphics & W eb A dministrator BOBBY BAKER

M SOUTH CAROLINA BUSINESS MAGAZINE I nterim E ditor JULIE SCOTT A rt D irection & D esign TIM MCKEEVER / TMCA INC. P roduction & P rint C oordination TMCA INC./CONVERGING MEDIA LLC A dvertising S ales CONVERGING MEDIA LLC DEIDRE MACKLEN 803.318.3923

STATE CHAMBER

pat crawford

with Distinction

Copyright © 2012 by the South Carolina Chamber of Commerce and Converging Media LLC. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for the South Carolina Chamber of Commerce by Converging Media LLC. 803.256.3010

Greater access to domestic energy equals jobs

obs continue to be the No. 1 concern of businesses and their employees: how to create them, how to retain them and how to find talented individuals to fill them. As business leaders know, the policies created by elected officials can either help or hinder job creation. The South Carolina Chamber of Commerce continues to make jobs its No. 1 priority as well, and I am pleased to report that through our direct advocacy efforts at the State House this year, South Carolina businesses will benefit from more than $800 million in legislative changes that will make the creators of jobs more competitive. I encourage you to take a look at the enclosed 2012 Legislative Year-In Review and Scorecard to see how your legislators voted on key business issues. This legislative session, 41 legislators scored 100 percent on the Scorecard and will be honored with Business Advocate Awards. Business leaders should thank these outstanding elected officials who are committed to improving the business climate and creating jobs. Speaking of jobs, time and again we have seen how responsible development of our nation’s oil and gas resources creates jobs, tax revenue and energy security. An “all-of-theabove” energy strategy must include increased access to the nation’s vast oil and gas resources, including those resources off South Carolina’s coast. Despite widespread in-state support for opening the waters off of South Carolina to oil and gas exploration, the Obama Administration recently released a new five-year plan for offshore leasing that limits development to the areas where it historically has always been located: a section of the Gulf of Mexico and offshore of Alaska. This approach is a missed opportunity as 85 percent of the Outer Continental Shelf remains off limits to development. Without increased access to our offshore resources, we simply will not know what is there. Oil and gas exploration and development takes time. Lease sales are the first step in a process that can take a decade or more to bring new production online. Current estimates of the oil and gas available off the Eastern seaboard likely do not reflect reality. In the Gulf of Mexico, due to increased access and technological innovation, we have produced six times more oil and gas than experts in the 1980s believed would ever be available. Increased domestic oil and gas production means less dependence on fuel from unstable regions of the world, new jobs here at home and billions in revenue for states and the federal treasury. Our recent shale gas and oil revolution underscores the benefits of increased energy development. In just the last half decade, technological innovation has opened up vast reserves of oil and gas trapped deep in shale rock once thought inaccessible. States across the country, from Texas and Louisiana to North Dakota and Pennsylvania, have reaped the benefits of new oil and gas production.

In Texas, development of the Eagle Ford Shale produced $25 billion in 2011. In Louisiana, development of the Haynesville Shale generated 57,000 new jobs in 2009. When Pennsylvania’s economy was reeling, production in the vast Marcellus Otis Rawl is president and chief Shale created 72,000 executive officer of the South jobs in 18 months Carolina Chamber of Commerce. between the close of 2009 and early 2011. And in North Dakota, development of the Bakken Shale is the key driver in producing a projected $2 billion budget surplus and the lowest unemployment rate in the country. Opening up development off South Carolina’s coast should be a central part of a new U.S. energy strategy that reflects the promise of increased domestic oil and gas development. Governor Nikki Haley, Senator Lindsey Graham and Congressman Jeff Duncan have all put their support behind developing South Carolina’s offshore resources. In addition, the U.S. House passed H.R. 6082, which would replace the Obama Administration’s five-year plan with an approach that provides far greater access to our offshore resources, including those off South Carolina’s coast. Senators from both sides of the aisle introduced complimentary legislation in the Senate. Increased access to the nation’s offshore resources could provide tens of thousands of jobs, billions of dollars in desperately needed revenue and a more secure supply of fuel for the country. Congress should continue to push for a revised five-year plan that provides the nation with greater access to our vast energy resources and a true “all-of-the-above” energy strategy. In this edition of South Carolina Business magazine, we discuss manufacturing, an industry that depends on a strong energy strategy. We explore manufacturing’s revival in the U.S., filling the manufacturing talent pipeline and how South Carolina is quickly becoming a tire empire. We also introduce you to FUJIFILM, a company that has called South Carolina home for almost 25 years but has reinvigorated its operations over the last decade.

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E conomic D ri v ers

Manufacturing rebirth and the missing skills issue B y R obbie B arnett

anufacturing is alive and well in South Carolina, providing 16 percent of the state’s gross domestic product. From January 2010 to May 2012, South Carolina has seen an 8.35 percent growth in manufacturing employment. From January 2011 to 2012 to-date, more than 200 manufacturing firms have committed to invest $7.4 billion in South Carolina through projects with the South Carolina Department of Commerce. These investments are linked to commitments by the companies to create more than 24,000 new manufacturing jobs in the state. This is all bodes well for South Carolina’s future, but there is a major concern we must address if we are to fully reap the benefits of this advanced manufacturing rebirth. There is a broadening gap between the availability of adequately skilled workers and the employee performance requirements of modern manufacturing. On the SC Works website, there are approximately 2,000 jobs currently available that have “production/ manufacturing” contained in their listing, yet the state’s unemployment rate is still hovering around 9 percent. Why is this number so high when there are good

manufacturing jobs available? One of the main reasons is the skills of the potential applicants do not match with the needs of employers. Fortunately, there are two major statewide initiatives underway that hold much promise in helping solve the missing skills issue. The first lies at the door of the nationally recognized South Carolina Technical College System, which is actively developing a plan for a mid-2013 launch (subject to funding) of a statewide manufacturing skills development initiative that would be available at each of its 16 colleges. The goals are to educate and prepare a portion of South Carolina’s workforce for entry-level positions in the manufacturing and logistics industry. Entry into the program will require a high school diploma or GED and a WorkKeys Silver level certificate. Modeled after the National Association of Manufacturers’ (NAM) Manufacturing Skills Standards Council (MSSC) for both Production and Logistics, individuals will participate in a competency-based production or logistics simulation to measure job fit. Participants successfully completing the program will be certified as production technicians or logistics associates

and will be eligible for more advanced training. The second initiative is South Carolina WorkReady Communities. The goal behind the initiative is to match job seekers with job openings and to address the skills gap in the state. By comparing those required skills with applicants’ WorkKeys certification levels, employers are able to ensure applicants have the necessary abilities to adequately perform the work. A state team is in the process of providing a framework of how the initiative will be rolled out and measured in each county. The success of these two new initiatives will help empower the success of our manufacturing rebirth. South Carolina manufacturers need to stand together in their support for both. Robbie Barnett is associate vice president of workforce, education and manufacturing policy at the South Carolina Chamber of Commerce.

The resurgence of U.S. manufacturing B y J ay T immons

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Alliance for Productivity and Innovation (MAPI), and that excludes the cost of labor. Corporate taxes are the most significant driver of the cost differential. Today, the United States has the highest corporate tax rate in the world, after surpassing Japan earlier this year. Our high corporate tax rate deters business investment, especially as our competitors around the world are reducing their corporate tax burden. It is also more expensive to manufacture in the United States because of burdensome regulations. The U.S. Environmental Protection Agency (EPA) is proposing rules that would impose expensive mandates on manufacturers and cost thousands of jobs. South Carolina knows too well the power an overzealous agency, like the National Labor Relations Board (NLRB), can wield over a manufacturer. Another factor in the cost disadvantage facing manufacturers is employee benefits, notably health care. Ninety-seven percent of manufacturers offer health benefits to their employees even as health care costs rise.

So far, Washington’s efforts to rein in those costs—like the Affordable Care Act—have fallen well short. Despite these obstacles to competitiveness, the United States has an opportunity to gain on its competitors by utilizing the abundant energy sources available on and offshore. We have plentiful resources at our disposal—like shale gas reserves—but too often these resources are placed off-limits, or onerous regulations or burdensome permitting requirements hold up development. For a true resurgence of U.S. manufacturing, we need to reduce the cost of doing business on U.S. soil. South Carolina has a lot at stake. Manufacturers in the state contribute roughly $25 billion to the economy each year and put more than 207,000 South Carolinians to work. A strengthened manufacturing sector will lead to more robust economic growth and job creation. Jay Timmons is president and CEO of the National Association of Manufacturers (NAM).

B r y ce K roll

anufacturing is poised for a renaissance in the United States, and the upcoming elections will go a long way toward determining whether we achieve that goal. While there are some positive signs—for example, some manufacturers have begun investing back in the United States—major challenges loom ahead. Unemployment remains high in the stalled economy, and manufacturers will face much uncertainty in the future. According to the NAM/ Industry Week’s most recent quarterly survey, two-thirds of manufacturers cite an unfavorable business climate as their primary challenge. Bringing about a true manufacturing renaissance will require a comprehensive agenda to reduce the cost of manufacturing in the United States and make this country a more competitive place to do business. Currently, it is 20 percent more expensive to manufacture in the United States than it is for our major trading partners, according to a study by the Manufacturing Institute and the Manufacturers

B y R obby K err

ack in the early 1990’s, campaign strategist James Carville coined the now famous phrase “the economy, stupid.” His purpose was to keep former President Bill Clinton’s campaign workers on message, which actually had three components: 1) change versus more of the same 2) the economy, stupid and 3) don’t forget health care. Carville’s clever maxims are even more relevant for the 2012 elections than they were 20 years ago. The fiscal challenges we face today seem enormous compared to those of the early 1990’s. We are mired in recession, and our debt is now about the same as our gross domestic product. The Congressional Budget Office (CBO) recently modeled different scenarios to

for citizens up to 400 percent of poverty, including a dizzying array of subsidies, plans and penalties. Unfortunately, this complex configuration is too complicated for most people to navigate and contains enough flaws to make it unlikely to achieve its intended purpose. Perhaps there is a better and more effective approach. Why not transform the Medicaid program to achieve entitlement reform, and then properly use Medicaid as the foundation to simplify the Affordable Care Act? Medicaid, in effect, is already a fully funded subsidy. Rather than create an entirely new subsidy program, give states the flexibility to create a premium buy-in program scaled on an individual’s income.

incrementally as eligibility increases above 100 percent. • Base state matching requirements could be based on a fixed cost per eligible person. In

other words, the state matching payment might be a percentage of an average cost per person. This number would be actuarially derived based on cost experience for that region. This “capitated” approach would give the state budget certainty and provide an incentive for the federal government to operate the program as efficiently as possible.

E conomic D ri v er S

Rational reforms to Medicaid

• Provide states the option to allow individuals above 100 percent of poverty to buy into the Medicaid program. The state, at its discretion, could require that eligible individuals participate in paying a portion of the state’s share of the Medicaid premium. The amount of participation should be scaled according to the individual’s income. • Offer individuals the option of applying the actuarial value of Medicaid coverage toward equivalent private insurance coverage. Should an individual

desire to have private coverage rather than Medicaid, he or she should be allowed to apply the value of their Medicaid toward purchasing private coverage.

measure the impact of the public debt on the economy. The resulting report stated that increased entitlement spending is making the long-term outlook for the national debt increasingly dire. More specifically, “the explosive path of federal debt…underscores the need for large and timely policy changes to put the federal government on a sustainable fiscal course.” The CBO believes entitlement programs like Medicare, Medicaid and Social Security are at the core of spending problems. Clearly, health care is a major spending contributor. President Obama has stated, “Nothing will be more important to this goal (fiscal stability) than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. Make no mistake: health care reform is entitlement reform.” The Affordable Care Act does contain many positive reforms like guaranteeing access to insurance coverage. However, it would be a stretch to characterize it as entitlement reform. It actually expands the existing entitlement of Medicaid and creates a new entitlement

Here are five elements that could be incorporated into a modernized Medicaid program: • Centralize the operations of Medicaid. Instead of running 56 separate programs, standardize payment and coverage policies while gaining significant administrative economies of scale by centralizing claims processing at the federal level. • Provide states the option to offer coverage to all individuals within an eligibility range not to exceed a ceiling, perhaps 300 percent of poverty. However, the state’s matching requirement will now increase on a graduated scale. Currently, each state pays a specific, fixed percentage of their Medicaid cost regardless of their eligibility thresholds. A better option might be to increase the state’s share as eligibility limits increase. For example, a state could be responsible for only 20 percent of costs for below 100 percent of poverty but that share would rise

These elements represent a more logical approach to Medicaid. Many other details would of course need to be addressed, such as establishing the appropriate base level of coverage and ensuring new configurations are at least budget neutral. However, a model like this could be beneficial to a business where employees fall within the Medicaid expansion range. We can proactively create change or react to change, but one thing is for sure. Medicaid and entitlements are going to change. James Carville had it right. “It’s the economy.” Robert Kerr is president and founder of Kerr and Company, a private consulting firm located in Columbia. He is also a former Director of the South Carolina Department of Health and Human Services.

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B y A nn B rown

tmca stock

ccording to the National Association of Manufacturers (NAM), U.S. manufacturers are the most productive workers in the world—far surpassing the productivity of any other major manufacturing economy. But according to NAM President Jay Timmons, five percent of manufacturing jobs go unfilled every day because there aren’t enough skilled workers. NAM estimates the skills gap represents about 600,000 open positions in a job sector that continues to grow. South Carolina’s manufacturing presence has grown steadily in recent years with expansions of companies like BMW, Bridgestone and Boeing. Developing a skilled and productive manufacturing workforce is critical to sustaining this growth and bringing future investment to the state. In Columbia, Microburst Learning associates have worked with many business and educational partners throughout South Carolina to promote manufacturing careers to young people. The company collaborates with the South Carolina Department of Education’s Personal Pathways to Success initiative to show students the world of manufacturing through an online job

Manufacturers are in need of megatronic technicians.

shadowing tool called MicroCareerBurst™. The online job shadowing lessons are specifically created for middle school through young adult attention spans and daily lifestyle usage of multimedia to explore new information, such as potential career opportunities. These interactive e-lessons are vital tools for sharing information about a variety of jobs and allow students to see firsthand what these jobs require in terms of training and education, typical hours and tasks, compensation

levels, opportunities for advancement and, most importantly, why this career path is challenging and rewarding. Lessons are fun and interactive, combining videos of manufacturing employees discussing their jobs with informative games, animation, lively music and energetic graphics to keep students engaged as they explore the many facets of a selected career. Thanks to partners like Alcoa, General Electric, BMW, Cooper Standard, DEPCO and FESTO, Microburst Learning has created lessons highlighting careers as a CNC machinist, chemical operator, materials planner, environmental health and safety manager, production technician, mechatronics technician and manufacturing engineer. Free, online access is provided 24/7 to students, educators and parents throughout the state via SCPathways.com. No matter where students reside, they all have equal access to learn about manufacturing career choices.

E conomic D ri v er S

Promoting manufacturing careers for the future

Ann Brown is the chief operating officer of Microburst Learning. To learn more, visit microburstlearning.org.

Grassroots meetings proactively identify legislative priorities B y J ulie S cott

S . C . chamber

undreds of members of the South Carolina Chamber of Commerce and local area chambers of commerce are already preparing for a successful 2013 legislative session by identifying legislative priorities to improve South Carolina’s business climate and create jobs. Since this important policy-changing work begins at home, at the grassroots level, the South Carolina Chamber travels the state to hear from employers about the issues impacting their businesses. Ten regional Grassroots Meetings serve as open-forum sessions and are one of the first steps in creating the Competitiveness Agenda, the business community’s annual list of legislative priorities. With the support of local chambers across the state, the meetings have continued to grow. Once issues are defined and strategies are developed, the Chamber works with legislative officials to create an environment that will enable Palmetto State businesses to create jobs. In 2012, more than 25 local chambers of commerce endorsed the Competitiveness Agenda, strengthening the business community’s voice at the State House. In turn, the General Assembly passed

a host of these business priorities, with a return on investment of more than $800 million for South Carolina businesses. Many of the same issues continue to be top of mind for business leaders, including comprehensive tax reform, which they say must be achieved to compete with other states. For many years and especially since the passage of Act 388, calls for comprehensive Close to 100 business leaders attended the Midlands session. tax reform have gotten louder. South Carolina With little investment in infrastructure in more businesses pay some of the highest state and local taxes in the nation. In fact, manufacturing companies in South than a decade, increased attention to funding for Carolina pay the nation’s highest property taxes. South the state’s roads and bridges is also a top priority. As Carolina employers continue to call for restoring balance the state’s roads continue to crumble and more and and predictability to the state tax system. Continued on page 29 s c c h a m b e r. n e t | S e p t e m b e r / O c t o b e r 2 0 1 2 | S o u t h C a r o l i n a B u s i n e ss |

When the community works together, the community works. Like individuals, businesses are members of the community too. The most extraordinary enterprises take this connection to heart, doing what they can to help their neighborhoods grow. Bank of America is pleased to support the businessmen and women who thrive on active community involvement and appreciate its important role in advancing the public good.

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Sequestration takes aim at South Carolina’s burgeoning defense industry B y S andy M au

ext time you see a U.S. soldier on the news, you may catch a glimpse of South Carolina craftsmanship. The uniform may be made of high-tech fabric manufactured in Spartanburg. The armored vehicle probably rolled off an assembly line in Ladson. The automatic weapon could have been made in Columbia. Military manufacturing is big business in South Carolina, with 3,301 firms supplying goods and services through Department of Defense contracts and impacting all 46 counties. In FY 2011, 4,943 military contracts were awarded to South Carolina entities, with a total value of almost $4.2 billion. The products vary widely, from replacement parts to mine clearing vehicles and Meals Ready to Eat (MREs). “Defense and security is a growth industry, and South Carolina ranks high in manufacturing capacity against all other states,” said Ed Marshall of Defense Management Group, a non-profit consulting firm for the defense, security and law enforcement market sectors. With all the positives, there is a storm cloud dimming South Carolina’s bright future in defense manufacturing: sequestration. Because Congress has not agreed on ways to cut back the total federal budget, automatic spending cuts will occur, amounting to 10 percent over 10 years, starting January 2, 2013. That adds up to $492 billion in cuts to the defense budget. President Obama’s proposed budget, if adopted, contains $487 billion in defense cuts. Sequestration is already chilling the economic forecast. In August, some defense contractors announced their intent to distribute early layoff notices this fall. Company executives from Lockheed Martin said they may be forced to send the warnings to all 123,000 Lockheed employees, even though not all positions would actually be cut. Lockheed Martin’s Greenville operation employs 720 badged employees and just over 100 contractors. The plant takes retired P-3 and

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C-130 aircraft and refurbishes them for both the Department of Defense and the Department of Homeland Security. One current U.S. Navy contract involves fitting new wings onto a dozen retired P-3s, refurbishing engines and installing state-ofthe-art missionization gear. In 2011, the Greenville facility was responsible for about $750 million in federal contracts. “Sequestration represents the single greatest challenge faced by Lockheed Martin and the total defense industry, and it’s certainly a challenge for Greenville,” said Don Erickson, director of the company’s Greenville site operations. “We don’t know what the impact will be to our programs. But we also use a significant number of suppliers in the area. They’re reliant on large entities like a Lockheed Martin or a Boeing for their lifeblood. Now there’s a fog of uncertainty, and we’re not in a position to make long-range contracts with our suppliers.” Todd Littleton is director of operations of Jankel Tactical Systems, LLC in Duncan. The niche operation is the market leader in the manufacture of survivability seating, specially engineered seats for military vehicles. If the vehicle is hit by an IED, the seats absorb the blast force so it doesn’t A Mark 3.0 survivability seat manufactured by Jankel.

(Top) First flight of a new-winged P-3 aircraft by Lockheed Martin’s Greenville site. (Bottom) General Dynamics Land Systems is the global leader in combat vehicles designed for military customers to protect occupants from land mines, hostile fire and IED’s.

transfer through the seat, injuring a soldier’s spine. Jankel has close to $85 million in military contracts for 2012 and employs about 80 people. Littleton said he is hoping companies like his will be less likely to see cuts because it is retrofitting vehicles the military already owns, and troop survivability remains a priority for the U.S. Department of Defense. But Jenkel is hedging its bet. “We also have our vehicle business unit that we just launched, for production of specialty light vehicles that we up-armor and retrofit - mostly Jeeps and Toyotas,” Littleton said. “While the vehicles are also targeted

Companies that locate in South Carolina benefit from a convergence of factors: Eleven major military installations and a large base of skilled retirees: With Army, Air Force, Navy, Marine and Coast Guard facilities, South Carolina boasts a number of significant bases. The moderate climate and low cost of living make the state a prime military retirement destination. In turn, many retirees take their military know-how to local manufacturers. Strong political support for military manufacturing: U.S. Senator Lindsey Graham serves on both the Appropriations and Armed Services Committees; U.S. Representative Joe Wilson serves on the House Armed Services Committee; and, U.S. Representative Jeff Duncan serves on the Homeland Security Committee. A ready workforce: South Carolina is a right-to-work state. And, its technical college system is ranked among the best in the country for programs tailored to train and place skilled workers. Established technical supply chain: Manufacturers, like BMW in the Upstate and Boeing in the Lowcountry, draw suppliers that feed smaller manufacturing operations. There are technical differentiators that go hand-in-hand with aircraft maintenance and manufacturing, or vehicle upgrades and production, that benefit from local manufacturing density.

for Department of Defense applications, expanding production capability for more vehicles offers the company maximum contracting flexibility.” There are other South Carolina companies where military contracts constitute a portion of sales. “There is a major worry that big companies that have hired and employed so many people are going to have a very hard time staying in business and keeping intact the brains and knowledge they’ve assembled over the past decade,” Defense Management Group’s Marshall said. “In Columbia, you’ve got FN Manufacturing. All the machine guns in the U.S. are manufactured there. If those government contracts go away, the skilled machine tool capacity and the intellectual capital of the folks who work there will go away, too. We have to find a way to retain these jobs.” Sandy Mau is a freelance writer based in Columbia, S.C. s c c h a m b e r. n e t | S e p t e m b e r / O c t o b e r 2 0 1 2 | S o u t h C a r o l i n a B u s i n e ss |

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T mcastock

infrastructure

T he state of S outh C arolina’s B y J ulie T urner

he business world has taken notice of South Carolina. With newcomers such as Continental Tire and expanding operations including Michelin, BMW Manufacturing and Boeing, additional manufacturers are taking a close look at South Carolina and liking the business landscape. One of the strongest arrows in the state’s development quiver is an extensive infrastructure — a well-connected network of rails and easy-toaccess roads leading to one of the nation’s deepest seaports. “A well-maintained interstate system moves commerce smoothly, safely and timely,” says G. Clifton Parker, president and general manager of G&P Trucking. “Our state realizes how important infrastructure is to keep and create jobs and to encourage economic development.” Unfortunately, awareness can’t fund improvements. “The South Carolina Department of Transportation presently does not have the funds to meet all the infrastructure needs,” says Parker. The South Carolina Department of Transportation (SCDOT) plans, builds and maintains the nation’s fourth largest state-owned highway system of 41,459 miles of road and 8,344 bridges. In addition to General Fund dollars and federal reimbursements, the primary funding resource for improvements is a 16.8-cents motor fuel user fee established in 1987 that is among the nation’s lowest. An annual budget of about $144 million for interstate improvements does not go far when widening costs $15-20 million per mile plus $40 million per interchange. The budget must also cover statewide resurfacing and maintenance projects. Strained roadways increase the cost of doing business for companies like Piggly Wiggly Carolina Company, whose fleet of 47 trucks logged more than three million miles in 2011 according to Christopher Ibsen, director of corporate affairs. “Roads are not keeping up with demand,” says Ibsen. “Interstate 26 needs to be widened to four lanes from Summerville to Columbia. Interstate 95 will only see more traffic in the future, especially when the Port of Charleston is deepened, so clear improvement planning should be taking place.” Parker agrees. “South Carolina highways are our offices and the way we work every day. If the infrastructure is not maintained, it causes delays and detours. In the trucking business, it is very hard to get the customer to pay you for

With the widening of the Panama Canal, it is necessary that the Port of Charleston is able to accommodate post-Panamax vessels 24-hours a day.

in-transit delays. Sitting in traffic has a huge lost opportunity cost,” says Parker. One obvious infrastructure asset is the Port of Charleston. The seaport has the deepest channels in the South Atlantic and is preparing to deepen its harbor to 50 plus feet, increasing the ability to accommodate container vessels regardless of tides. The improvement will position the port to receive post-Panamax supertankers and container ships — the largest the Panama Canal locks can accommodate — that will arrive from a third set of locks opening in 2014. “The port is vital to the business of Michelin North America,” says Steve Evered, vice president of government affairs. He notes that one-third of everything Michelin moves in and out of the United States comes through the Port of Charleston. “Obviously the deepening of the Port of Charleston harbor is the No. 1 concern. As we are approaching 2014, when the widening of the Panama Canal is to be completed, it is necessary that the Port of Charleston is able to accommodate the super post-Panamax vessels 24-hours a day,” says Evered. Another significant proposal under consideration includes a large intermodal transfer facility in Greer. The inland port — a hub where cargo can move between trains and trucks — would dramatically reduce the number of truck trips between Greenville and Charleston and relieve traffic congestion on Interstate 26. With much focus on the economics of commercial growth, Jay Summer, vicepresident and director of the large loss division of Afterdisaster ®, urges officials to heed human logistics. “South Carolina is not ready for another Hurricane Hugo. We haven’t made a single road

SCDOT builds and maintains the nation’s fourth largest state-owned highway system of 41,459 miles of roads and 8,344 bridges.

change in response to what we learned from that event, and now there are an additional 200,000 people in those areas,” he cautions. “Not only do we need to plan for natural disasters, there’s potential for manmade disasters like terrorism.” South Carolina’s infrastructure is more important than ever, and the stakes keep rising.

Growing established businesses, increasing manufacturing capacity and attracting new companies will enhance South Carolina’s bottom line, but only if the state can help meet the objectives of effective, efficient operations. Julie Turner is a freelance writer from Columbia, S.C.

John Otten, CPA Manufacturing & Distribution Practice Chair

From inventory to export, we assemble financial solutions for Manufacturing & Distribution. Since 1925, manufacturing and distribution clients have depended on Elliott Davis and its experienced team of advisors. From benchmarking and cost controls to capital expenditures and international interests, we understand all facets of the industry, aiming to make a deep, vertical impact on your organization. Elliott Davis is a member of the CPA Manufacturing Services Association, a nationwide association of CPA firms specifically selected for their experience in and commitment to serving the manufacturing industry. South Carolina • North Carolina • Georgia • Virginia www.elliottdavis.com

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7/30/2012 3:24:10 PM

A glimpse into the business world B y R obbie B arnett

n July, close to 200 of South Carolina’s brightest young minds from every corner of the state descended upon the campus of Presbyterian College in Clinton, S.C. to spend an exciting week learning about the business world. South Carolina Business Week, presented by the South Carolina Cable Television Association, offered high school students the unique opportunity to interact one-on-one with business leaders and student peers to learn more about a successful career. Business Week students tested their newly acquired knowledge in a unique computer simulation called Entrepreneur provided by Interpretive Solutions and designed to achieve a real company feel with challenging, realworld situations. Along with an emphasis on teamwork and leadership skills, Business Week included programs on entrepreneurship, ethics, leadership and diversity. Business Week is made possible by Company Advisors loaned from some of South Carolina’s top businesses and sponsorships from a number of companies, individuals and organizations. During an episode of CEO Corner, Mary Anne Jacobs, Time Warner Cable’s senior director of governmental relations and a leader of the South Carolina Cable Television Association, said, “Business Week is something we’ve always felt is a catalyst for students to get an idea of what they want to do when they grow up. Business Week provides an opportunity for students to understand what happens in a corporation or in an entrepreneurial position.” When students arrived on Sunday, they met their company (or teammates) for the first time, beginning the process of making lifelong friends and learning the importance of teamwork and collaboration in business. Peter Stone, an educator at Spartanburg Community College and Lead Company Advisor at Business Week said, “The nice thing about this program is it introduces students to business, and they actually get to meet business people. They are able to put faces to a career and are starting to understand the importance of networking. It is no longer just a topic in a classroom.” Many of South Carolina’s top business and government leaders stopped by during the week to discuss relevant business topics and lend their support to this crop of future leaders. These leaders included Mary Anne Jacobs; Ray Lattimore, president and CEO of Marketplace Staffing Services, Inc.; Pamela Lackey, president of AT&T

| S o u t h C a r o l i n a B u s i n e ss

Along with an emphasis on teamwork and leadership skills, Business Week included programs on entrepreneurship, ethics, leadership and diversity.

South Carolina; Representative Bakari Sellers; and South Carolina Superintendent of Education Dr. Mick Zais. The week is rigorous and often students have an “aha” moment before its conclusion. Trenton Billings, a rising senior West Florence High School, attended Business Week for the first time. “I want to go into science but after this, I might want to go into business too,” said Billings. And, every student takes away a unique perspective on the importance of the week. Robert Broadwater, a rising junior at Strom Thurmond High School in North Augusta, said he enjoyed the computer simulation. “I learned a lot from my company. We came together. We made great decisions, and that’s what I loved about it.” Broadwater said his favorite presentation topic was leadership. “Our presenter taught me a lot about how to be a leader, to listen, to take in what

2012 Business Week Company Advisors

Talent Night is one of the highlights of Business Week.

you’ve learned, to accept your mistakes,” Broadwater said. Billings said his favorite topic was financial planning, which took students through the real costs of living in 2012. Business Week also included college scholarship awards for stand out student leaders. Carol Anne Hester of Clover High School in York County was awarded the S. Hunter Howard Jr. scholarship in the amount of $5,000. Kelly Danielle Spencer of Ashley Ridge

Business Week students often make lifelong friends and contacts during their time at Presbyterian College.

High School in Dorchester County received the Ron McNair Leadership Award in the amount of $3,000. Austin Ralph Pahl of Pinewood Preparatory School in Dorchester County was awarded the Rawl Family Scholarship in the amount of $2,000. Antonio LaShawn Riley of Lakewood High School in Sumter County was awarded the Chelse Ward Elliott Scholarship in the amount of $2,000. “This is one opportunity in South Carolina that could touch every community in the state,” said Jacobs. Like companies across South Carolina, Stone’s employer allows him to spend a week at Business Week, and he feels it is vital to the future. “When we get here and meet the kids, you think, we’re going to be ok. You get excited and rejuvenated when you go back to work because you know there is a future group of employees that are going to be great.” Robbie Barnett is associate vice president of workforce, education and manufacturing policy at the South Carolina Chamber of Commerce.

Crystal Adams, Verizon Wireless

Bruce Vander Heide, The R.L. Bryan Company

Shannon Ashford, Midlands Technical College

Candice Lanford, CH2MHill-Lockwood Greene

Cynthia Bennett, South Carolina

Kathy Olson, United Way of the Midlands

Chamber of Commerce

Lee Ann Palmer, CH2MHill-Lockwood Greene

Matthew Capelli, Michelin North America

Sherry Prioleau, South Carolina

Chase Clelland, AlliedBarton Security Services

Chamber of Commerce

Kimani Dilday, Entrepreneur

Peter Stone, Spartanburg Community College,

Tony Elliott, SCANA

Lead Company Advisor

Chris Fant, Spartanburg Community College

Phil Waddell, United Way/Entrepreneur

Clarence Hair, Michelin North America

Carla Whitlock, South Carolina Technical

Paul Halphen, First Citizens Bank

College System

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8/13/12 3:17 PM

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fu j ifi l m M a n u f a c t u r i n g u . s . a . I n c .

tomoyoshi “ john” ueno

September~October 2012 Centerfold

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B y M atthew G regory

P hotograph y b y S and y A ndrews

s president of FUJIFILM Manufacturing U.S.A. Inc., Tomoyoshi “John” Ueno recognizes the tremendous amount of change his company has undergone over the past several decades. When FUJIFILM established its North American manufacturing and research and development headquarters in Greenwood, S.C. in 1988, the company manufactured many products that are now practically obsolete, including 35mm film, X-ray film and VHS videotapes. When FUJIFILM’s earnings experienced a downward spiral after peaking in 2000, the company transformed its business structure as consumers latched on to digital cameras and mobile technology. “Today’s children don’t understand what a film cartridge is. They also don’t understand instant cameras like the Polaroid. They think it is a camera with a built in printer,” said Ueno. The Japanese company has not only survived but thrived, earning global revenues of $25.8 billion in the year that ended March 31, 2011. Under Ueno’s leadership, FUJIFILM’s Greenwood facility continues to diversify the company’s product line.

A broader focus

September~October 2012 Centerfold Tomoyoshi “John” Ueno FUJIFILM Manufacturing U.S.A. Inc.

S o u t h C a r o l i n a B u s i n e ss

Despite a decline in demand, FUJIFILM manufactures the QuickSnap camera for global markets, producing approximately 20 million a year.

Bernice King holds a tray of “flash units,” a component of FUJIFILM’s QuickSnap one-time-use cameras.

images courtes y of fujifilm manufacturing u . s . a . inc .

hen Ueno was a child growing up in Japan, he was fascinated with taking apart and reassembling objects so he could see how they worked. From clocks to radios, Ueno wasn’t satisfied until he understood the inner workings of the world around him. His fascination led to him to pursue a degree in mechanical engineering from the Kyushu Institute of Technology in Fukuoka, Japan. Ueno began working for the FUJIFILM Corporation in Japan in 1977, where he served as an engineer for the Production Engineering and Development Center at the Ashigara Factory. He worked in the film and coating production division’s designing section until he was promoted to manager in 1994. In 1997, he was transferred to the FUJIFILM B.V. facility in the Netherlands to serve as senior staff engineer of the P1 Plant Maintenance and Engineering section. Ueno, his wife, Michiko, and two sons enjoyed their time in the Netherlands, where they lived for five years. After further promotions, he served as general manager of the Fujinomiya Factory in Japan before being named president of the company’s North American headquarters in April. The Greenwood facility employees about 1,200 workers and has more than 2.5 million square feet of manufacturing space under one roof, which is equivalent to more than 40 football fields. Ueno said South Carolina is a great location for the company’s North American headquarters because of its high-quality water, which is vital for film manufacturing. Cultural aspects also factored into the decision. “FUJIFILM always knew it wanted to be in the Southeast because the people in the Southeast U.S. are very friendly,” said Allen Creighton, vice president of EHS and corporate compliance and deputy general counsel. “Especially in Greenwood,” added Ueno. In addition to cultural similarities, Creighton said South Carolina is close to the same latitude as FUJIFILM’s mother plant in Japan. This means each location has similar temperatures and humidity levels, which are important when making film. Under Ueno’s leadership, FUJIFILM’s Greenwood facility is helping the company expand its product line. The Greenwood plant houses multiple manufacturing facilities for PS printing plates, color photographic paper, inkjet paper technology and disposable QuickSnap cameras. Despite a decline in demand, FUJIFILM manufactures the QuickSnap camera for global markets, producing approximately 20 million a year. The Greenwood facility also houses FUJIFILM’s Printing Services Group, which provides a wide range of mass customized manufacturing and fulfillment services with more than 200 unique photo products offered. Companies like Walmart and Shutterfly rely on the Printing Services Group to manufacture photo prints, posters, photo books, cards, calendars and other personal photo gifts that are shipped all over the country. These products are especially popular during Christmas, which has led to FUJIFILM hiring seasonal workers to keep up with demand. Last year, the Greenwood plant hired almost 1,000 seasonal workers for Christmas. “I am proud of this business because all of the products have to be produced one by one. There are hundreds of thousands of products, and every one of them is different,” said Ueno. “We can supply happiness and fun to the people, and all of the products are of smiling faces.” In keeping up with the ever-changing market, FUJIFILM has expanded into new territory. One obvious step for the company has been digital imaging, producing digital cameras in emerging countries. The company has taken advantage of the ongoing growth in the liquid crystal panel (LCD) market as the company’s experience in optical films has translated into films for LCD displays. FUJIFILM has also entered the medical systems/life sciences market. “Consumers probably don’t recognize us as a medical company, but in the health care field they do. A big reason is X-ray film. We had expertise in X-ray film, but we also made X-ray equipment. That evolved into imaging equipment, such as digital X-rays and digital mammography,” said Creighton. FUJIFLM has now expanded to pharmaceuticals, diagnostic equipment and cosmeceuticals, cosmetics with biologically active ingredients that have health benefits. FUJIFILM bought a pharmaceutical company in Raleigh last

year and purchased a company in Seattle this year that makes portable ultrasound equipment. Greenwood is home to FUJIFILM’s largest distribution center in the world. The 800,000 square foot distribution center handles more than 22,000 different items and receives and ships a volume of more than 2 million cases during a typical month. The distribution center operates as a foreign trade zone due to its large volume of imported and exported goods. The site’s large volume of imports and exports has led to FUJIFILM regularly ranking as one of the top 10 South Carolina port users. FUJIFILM has had a huge economic impact on Greenwood, providing numerous jobs and a total investment in the complex that has exceeded $1.5 billion. In addition, the company has made environmental stewardship a big priority, constructing its own water treatment facility at the Greenwood plant to make sure it puts clean water back into the system. The company also pipes in methane from a landfill and burns it in its boilers. “We’ve reduced our carbon dioxide emissions here by more than 25 percent in just the last three years,” said Ueno. Fujifilm has a wide-ranging philanthropic and community relations program, including corporate support for United Way and routine philanthropic support, including contributions to Upstate Forever, Lander University’s Focus on Japan Week, the City of Greenwood’s Click646 event, Keep Greenwood County Beautiful’s 2011 Lake Greenwood Clean Up and the South Carolina Festival of Flowers. Looking to the future, Ueno said he wants the Greenwood facility to be the best location in the entire company. He also wants to continue introducing new products that will create high levels of customer satisfaction. While Ueno recognizes he has lofty goals, he maintains a good philosophy about meeting them. “I don’t mind if you can’t meet a goal, but try for the highest goal possible,” said Ueno. Given its success, lofty goals are nothing new for the company. FUJIFILM was largely defined by its film products less than two decades ago. Today, the 78-year-old company has triumphed through diversification while similar competitors have struggled in a growing digital world.

FUJIFILM’s manufacturing facility is located on a 500 acre campus outside of Greenwood, S.C. and includes an 800,000 square foot climate controlled distribution warehouse.

Matthew Gregory served as the multimedia coordinator at the South Carolina Chamber of Commerce and editor of South Carolina Business.

Expanding Your Business. South Carolina St yle

We have a good thing going here in the Palmetto State. There’s plenty of room to grow, unmatched recreational opportunities, a low cost of living, a willing and able workforce, an unbeatable business climate and South Carolina’s Power Team. The Power Team is composed of Santee Cooper and the state’s 20 electric cooperatives. Together, we are committed to building strategic partnerships with smart, forward-thinking businesses. And we back this commitment by delivering quality service and reliable electric power at some of the lowest rates in the nation. To find out more, visit www.scprimesite.com/SCB.

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South Carolina’s Tire Empire B y D ana W. T odd

ach week, the average driver spends about 15 hours in the car. Though they may not think about it too often, effective tires are essential to that travel. These days, it is becoming more and more likely those tires are produced in the Palmetto State. Three top-tier tire manufacturers recently announced plans to build or expand facilities in South Carolina. According to Tire Business, these investments will propel South Carolina as the No. 1 ranking tire producer in the nation in the next five years, leapfrogging Oklahoma and North Carolina. Michelin North America, following an expansion announcement in May 2011, is investing another $750 million to build an off-theroad (OTR) plant in Anderson as well as expand its OTR operations in Lexington. Bridgestone Americas is investing $1.2 billion to build an off-road-radial (ORR) facility and expand an existing passenger and light truck tire plant in Aiken County. Continental Tire is building a new passenger and light truck tire manufacturing plant in Sumter and investing $500 million in the process. Both of Michelin’s plant expansion announcements and Bridgestone’s new plant will produce the extra large earthmover tires commonly used in the mining industry. A large portion of that market’s production – 80 percent according to Michelin – will be exported because of unprecedented global demand.

Continental Tire is bulding a new passenger and light truck tire manufacturing plant in Sumter and investing $500 million in the process.

A Willing Workforce

hese companies will need to fill about 3,000 job openings in the next few years. Dr. Doug Woodward, economics professor and director of research at the University of South Carolina’s Darla Moore School of Business, said, “Traditionally, the automotive industry has the highest job impacts. The good part is where the jobs are located - many of them in a more economically challenged area of the state.” Is South Carolina’s workforce is ready to meet the technical demands of these jobs? “South Carolina is known for having one of the best workforce training programs in the U.S.,” says South Carolina Department of Commerce Secretary Bobby Hitt. “We’re very focused on the importance of education. We have the best job candidates, but it’s also the speed with which we 20

S o u t h C a r o l i n a B u s i n e ss

Michelin North America plant expansion will produce extra large earthmover tires commonly used in the mining industry.

can prepare them. We are trying to expansion in North America, where investment in South Carolina. Bridgestone’s Stewart says, “South educate everyone about what a modern all three tire manufacturers making manufacturing workforce looks like. In recent announcements already have Carolina’s friendly business environment was key in our decision. People here want to work, manufacturing, training is a constant. thriving facilities. Every plant has to get better at what it In addition, Secretary Hitt says the have a good work ethic, and the state has a does every year.” automotive industry is resurging after good educational system.” “It’s like a new universe out there now,” For its part, Continental Tire is not declining from 2008 to late 2010, “Many jobs are expecting applicants to be fully trained highly specialized, when auto sales decreased from $17 says Hitt. “We still have a lot of growth to prior to recruitment, according to Sumter but there will million to $10.5 million. The recession make up from where we were in 2008, and plant project manager Craig Baartman. be on-the-job reverberated throughout the tire that’s a lot of tires.” “Many jobs are highly specialized, training. We have industry but gave manufacturers but there will be on-the-job training,” partnered with time to plan growth strategies to Dana Todd is a freelance writer and a public readySC and Baartman says. “We have partnered local technical implement when the economy relations consultant based in Columbia, S.C. with readySC and local technical colleges.” – Craig rebounded. Now, tire manufacturers colleges.” are simply implementing those Baartman But, finding technically skilled strategies, resulting in a surge of workers can be a challenge. “Hiring technically skilled people is one of the biggest issues we are facing,” says Michelin’s Vice President of Government Affairs Steve Evered. “All manufacturers have this challenge. That’s where technical colleges come into play. We are in constant contact and have a good relationship with these colleges.” Encouraging young adults to pursue manufacturing careers is vital, according to business leaders. “How do we encourage young students in middle school to begin thinking about a career in manufacturing? These are good jobs that are very well compensated. Most people don’t understand a tire is a high-technology product and the design, construction and production is a complicated process,” says Evered. “We have a close relationship with Aiken Technical College,” says Bridgestone’s John Stewart, Graniteville plant manager. Bridgestone runs a Technical Scholar Program in which qualified technical college students work parttime at Bridgestone’s manufacturing plant while attending school full-time, netting job training and scholarships to pay for books and tuition. • Paying individuals “under the table” Twelve graduates have been hired in full-time to avoid unemployment taxes jobs at the plant through the program, according to Stewart. • Paying an employee who is

Unemployment Frau Costs You Money

Unemployment fraud is:

P hotograph y courtes y of michelin , continental tire

Right Place, Right Time

here are reasons why now is the right time to expand tire production in South Carolina. First, Dr. Woodward says the tariff placed on Chinese passenger tire imports creates a more competitive environment that is friendly to North American companies. A slowing European market diverts dollars to

submitting unemployment claims • Purposely categorizing employees as independent contractors

For more information,

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SC Department of

EMPLOYMENT AND WORKFORCE

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After the event

2012 South Carolina Manufacturer of the Year Awards B y T ish A nderson

he 2012 South Carolina Manufacturer of the Year Awards Luncheon, presented by Nexsen Pruet, was held August 29 in Columbia. The awards program recognizes companies that strive for manufacturing excellence, have a positive economic impact, remain committed to workforce development and are outstanding community stewards. Ray Tanner, longtime University of South Carolina (USC) baseball coach and recently named USC athletics director, presented the keynote address.

Congratulations to the 2012 Manufacturers of the Year: Manufacturer of the Year (Small), Cytec Industries, Inc., located in North Augusta Manufacturer of the Year (Medium), Holcim (US) Inc., located in Orangeburg Manufacturer of the Year (Large), The Boeing Company, located in North Charleston Other Nominees: Allied Air Enterprises Carolina Ingredients, Inc. Domtar Corporation Lockhart Power Company Meritor Procter & Gamble Duracell Manufacturing Scout Boats Inc. Sumter Packaging The 2012 Small South Carolina Manufacturer of the Year is Cytec Industries Inc., a global specialty chemicals and materials company focused on developing, manufacturing and selling value-added products. Cytec products serve a diverse range of end markets, including aerospace, adhesives, automotive and industrial coatings, inks, mining and plastics. The 2012 Medium South Carolina Manufacturer of the Year is Holcim (US) Inc. Since Holcimâ&#x20AC;&#x2122;s arrival in 1966, the company has had a strong economic impact, not just in eastern Orangeburg County communities but in the entire region encompassing upper Dorchester County. Holcim believes that active involvement in the communities in which it operates is essential to the success of its business. Holcim is also committed to continuously

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University of South Carolina Athletics Director Ray Tanner gave the keynote address.

Presenting Sponsor Nexsen Pruet Platinum Sponsors BlueCross BlueShield of South Carolina Lockhart Power Company Procter & Gamble - Duracell Manufacturing Gold Sponsors Alcoa Mt. Holly BB&T Blue Ridge Electric Cooperative

WIS-TV’s Judi Gatson served as the emcee for the awards.

The Boeing Company Elliott Davis LLC Fisher & Phillips LLP MAU Workforce Solutions Scout Boats Inc. South Carolina Manufacturing Extension Partnership Silver Sponsors Allied Air Enterprises Inc. Cytec Industries, Inc. Duke Energy Carolinas

S . C . C hamber of C ommerce / U ni v ersit y of S outh C arolina

William Floyd of Nexsen Pruet, the Presenting Sponsor of the 2012 Manufacturer of the Year Awards.

improving its environmental performance. The Holly Hill Plant successfully maintains both ISO 9001 and 14001 Certifications annually while producing more cement than any other manufacturer in the state. The 2012 Large Manufacturer of the Year is The Boeing Company. Boeing South Carolina (BSC) is providing the world’s most advanced aerospace products in South Carolina. BSC operations have generated more than 6,000 employment opportunities in South Carolina, and more than 90 percent of the direct contracted dollars for the construction projects were with South Carolina-based companies. Boeing’s charitable contributions in South Carolina exceeded $4.3 million in 2011. In just two and a half years, the final assembly and delivery team has rolled out and flown its first 787 Dreamliners. Each of these operations has implemented “best in the class” safety, quality, training, employee development and environmental stewardship programs that will meet and exceed its global customer base.

Holcim(US) Inc Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Sonoco Bronze Sponsors Food Service, Inc. McNair Law Firm, P.A. Nelson Mullins Riley & Scarborough LLP Orangeburg County Development Commission

Tish Anderson is associate vice president of programs and events at the South Carolina Chamber of Commerce.

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U pc o m i n g E v e n t s

After the Event

Save the date for the 33rd Annual Summit

he South Carolina Chamber of Commerce’s annual meeting and premier gathering of the state’s business leaders is November 7-9, 2012 at Wild Dunes Resort on the Isle of Palms. The 33rd Annual Summit, presented by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices), is your opportunity to network with hundreds of the state’s business leaders as we celebrate our successes and discuss goals for our future. The theme for this year’s meeting is The Stars of Business. Governor Nikki Haley has been confirmed as the keynote speaker during the luncheon set for November 8. More information regarding the agenda and the 2012 honorees will be announced very soon. Only a few exclusive sponsorship opportunities remain. For more information, please contact Tish Anderson, associate vice president of programs and events at the South Carolina Chamber, at tish. anderson@scchamber.net or 803255-2627. To learn more, visit www. scchamber.net, and click on the 33rd Annual Summit under the Events section.

2012 Membership Receptions

he South Carolina Chamber of Commerce held its annual Membership Receptions in four regions around the state: the Lowcountry (The Cooper River Room, Mt. Pleasant), the Midlands (IT-oLogy, Columbia), the Pee Dee (Osbornes, Florence) and the Upstate (BMW Zentrum, Greer). The South Carolina Chamber would like to give special recognition to the Platinum Sponsors of all four reception locations: Bank of America, BlueCross BlueShield of South Carolina, Blue Marlin-Signature Catering and Womble, Carlyle, Sandridge & Rice, LLP.

Jim Reynolds, CEO of Total Comfort Solutions and chairman of the S.C. Chamber of Commerce Board of Directors.

Guests at the Midlands Reception enjoy wonderful refreshments by Signature Catering.

CMC is Proud to Support

South Carolina. From the steel we manufacture to the people we employ, for almost 100 years CMC has provided the support to improve our local communities.

Rita Berry of the Greater Summerville-Dorchester Chamber and Shellie Hodges of the Bluffton Chamber chat at the Lowcountry Reception.

We are a part of what makes South Carolina great and are committed to making our communities a better place to live and work.

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Cayce, SC 29033 Cayce, SC 29033 Columbia, SC 29201 Lexington, SC 29072

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S.C. Chamber President and CEO Otis Rawl talks with Upstate members.

chamber staff

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U pc o m i n g E v e n t

Excellence in Workplace Diversity Awards Nominees Announced

ominees have been announced for the 8th Annual Excellence in Workplace Diversity Awards, recognizing businesses’ significant contributions to moving South Carolina forward in diversity initiatives. Several criteria are considered in choosing companies for the Excellence in Workplace Diversity Awards, including diversity initiatives, effectiveness and applicability/replicability. Congratulations to this year’s nominees: Columbia Metropolitan Airport – West Columbia Greenville Hospital System - Greenville Lockheed Martin Aeronautics – Greenville Midlands Technical College - Columbia Savannah River Nuclear Solutions LLC - Aiken Smith Moore Leatherwood - Greenville TD Bank - Greenville U.S. Engine Valve - Westminster Verizon Wireless - Greenville WSI SRS – Aiken

The keynote speaker for the 8th Annual Excellence in Workplace Diversity Awards Dinner, September 13 at the Embassy Suites in Columbia, is John Zubizarreta, Ph.D. Zubizarreta is a professor of English and director of honors and faculty development at Columbia College. As the 2010 Carnegie Foundation/ CASE U.S. Professor for Baccalaureate Colleges and a former CASE Professor for South Carolina, he is also the winner of several national and international teaching

awards. Among his numerous book and journal publications, he is the author of The Learning Portfolio: Reflective Practice for Improving Student Learning (2nd ed. JosseyBass, 2009; 1st ed. Anker, 2004), co-author of Inspiring Exemplary Teaching and Learning: Perspectives on Teaching Academically Talented College Students (NCHC, 2008), and The Robert Frost Encyclopedia John Zubizarreta will be the keynote speaker at the 8th Annual Excellence in (Greenwood, 2001). Zubizarreta will tell his own story Workplace Diversity Awards dinner. as a Cuban-American who grew up in Harlem, NY and how a remarkable chain of experiences and extraordinary mentors led him to where he is today. He will speak on Why Being Different Matters: Diversity and the Gift of Higher Education. In addition to the keynote, all nominees and winners of the 2012 awards will be recognized during the dinner. Event sponsorships are still available. Please contact Tish Anderson, associate vice president of programs and events at the South Carolina Chamber, at tish.anderson@scchamber.net or 803-255-2627. To learn more, visit www.scchamber.net.

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PUBLISHING & MEDIA SERVICES

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Grassroots Meetings, Continued from page 7

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t SLS Consulting our primary role is to assist our clients in identifing needs, developing plans and facilitating change to improve the success of their organization. Our management services and customized training are designed to assist both domestic and foreign-owned organizations with U.S. employee management and government compliance.

Annual Grassroots Meetings are held in conjunction with local chambers of commerce.

Our Services are ~ HR Audits, Handbooks, Compliance, Investigations, HR Consulting, Employee Management We offer Customized Training in ~ Diversity, Harassment, Workplace Violence, Supervisory Training, Emotional Intelligence

more bridges are deemed substandard, employers are hugely concerned about the timely movement of goods as well as the safety of their employees. They also recognize the South Carolina State Port Authority’s enormous economic impact and the need for sound infrastructure to move even more goods with pending port expansion. Continued expansion efforts at the port before the completion of the widening of the Panama Canal will undoubtedly provide increased opportunities SLS Consulting for the state. Infrastructure to support the port system, including expansion of the Human Resources Services and Training Interstate system, is of great importance. And, while millions of tourists visit South For additional information, contact us at 843-819-5129, Carolina each year, contributing greatly to the state’s coffers, sound, safe and reliable or visit us on the web at www.sls-consulting.biz infrastructure must keep up with tourism demands. Continued attention to education and workforce development must remain a top priority. Business leaders say there is a gap between the availability of skilled SLS-SCB1-4Page#2.indd 1 7/30/12 workers and performance requirements for today’s jobs. A high-performing workforce is essential to future business success. While the state has made strides in education, to make South Carolina as attractive as possible to global industry, continued focus on skilled and well-educated citizens is paramount to competing fully in the worldwide economy. Business leaders continue to call for support of For more than 30 years, PDQ has been the oneinitiatives that work, like the Education and Economic Development Act (EEDA), now stop source for custom molded injected parts. known as Personal Pathways to Success, and the state’s technical college system. Call us today at 843-672-3582 or visit our Additionally, business leaders around the state say special attention must focus on web site, pdqsouth.com, to see how early childhood education initiatives, which include third grade reading proficiency. we help with your next manufacturing Current and potential actions at the federal level will have enormous impacts project. on South Carolina. Labor issues, including protecting South Carolina’s right-to-work DESIGN | ENGINEERING status and an overreaching National Labor Relations Board, were top concerns MOLD BUILDING across the state. Rising health care costs and the impact of the Affordable Care Act MOLD MAINTENANCE at the federal and state levels continue to weigh on employers, and they support PRECISION MACHINE PARTS continued focus on cost reduction measures. Additionally, business leaders want MANUFACTURING | MOLD PLASTIC INJECTED PARTS attention focused on business negative regulations and compliance issues, especially relating to environment and energy policies. The rising national debt, including C A P A B I L I T I E S pending sequestration and its impact on the state, are also top on the list of business Short run | custom • Long run | production • Integrated mold build concerns. and injection molding “under-one-roof” • 3rd party mold building and Time and again, the business community has seen the power of a unified voice mold maintenance programs • Precision machine parts with 5-axis CNC • Value added | secondary operations for assembly, packaging in pushing through vital issues and halting those that are harmful to the state’s and fulfillment business climate. Regional Grassroots Meetings wrap up September 12 in Bluffton. For more information on the issues discussed, visit www.scchamber.net.

DESIGNING, MACHINING AND MANUFACTURING

2:58 PM

Julie Scott is the associate vice president of communications at the South Carolina Chamber of Commerce. PDQ South InjectIon technologIeS, Inc. Pageland, SC sales@pdqsouth.com

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Anderson

Baker

Cooper

Mcalister

Phillips

Ramasubramanian R o d g e r s

AFL, a leading manufacturer of fiber optic cable and accessories, has received the BB&T Lighthouse Beam Safety Award for Excellent Safety Performance. Pamela Lackey, president of AT&T South Carolina, has been elected president of the University of South Carolina’s University Associates for 2012-2013. AVX, a global manufacturer and supplier of electronic and interconnect components, plans to increase manufacturing and research operations in Greenville County. Announced in

Evans

Falls

Grant

Johnson

Kennedy

Kingsmore

Roser

Stubley

Ta s c a

Walker

Wilson

collaboration with the Greenville Area Development Corporation, the more than $14 million investment is expected to generate 279 new jobs over the next several years. An additional 150 jobs are expected to relocate to Greenville County from AVX’s Myrtle Beach area operations. Melur K. “Ram” Ramasubramanian has been appointed chairman of the mechanical engineering department at Clemson University’s College of Engineering and Science. Most recently, Ramasubramanian was the lead program director for the National Science

Lackey

ESAB Welding and Cutting Products opened a new manufacturing facility in Union County on June 20. The 260,000 squarefoot plant on Midway Drive is ESAB’s stateof-the-art production site for welding wire manufacturing. Daniel Young of the South Carolina Department of Commerce, state and local lawmakers and Union County dignitaries were on hand to celebrate the opening, which brings 101 new jobs to South Carolina.

Foundation’s IGERT (Integrative Graduate Education and Research Traineeship) program. IGERT was developed to meet the challenges of educating Ph.D. scientists, engineers and educators in the U.S. Internet2 has announced that Jim Bottum, chief information officer and vice provost for computing and information technology at Clemson University, is its inaugural presidential fellow.

products. Michelle White has been named assistant vice president, account management. Richard Dunlap has been named director, new business and agency systems. Belinda Maffei has been named director, broker marketing.

Shareholder George Kennedy has relocated to Elliott Davis LLC’s Greenville office. A certified public accountant with more than 20 years of experience, Kennedy provides Collins & Lacy P.C. attorney Jack comprehensive assurance services Griffeth has assumed the office of to clients in the higher education, president of the South Carolina Bar government and not-for-profit industry Foundation. His 35-year practice of sectors. He previously worked in Elliott law has focused on defense trial work, Davis’ Greenwood office. representing employers in employmentrelated litigation and mediation. Fisher & Phillips associate C. Edward Governor Nikki Haley has appointed Rawl Jr. has received a 2011-2012 attorney Kristian Cross to the South South Carolina Bar Young Lawyer’s Carolina Board of Accountancy. Division President’s Medal. The award recognizes young lawyers who have Colonial Life has named five individuals exceeded expectations and requirements to new management roles in the for serving the Young Lawyers Division of company. Jeff Koll has been named the South Carolina Bar Association. The voluntary benefits life actuary in the President’s Medal is awarded to those company’s U.S. finance organization. who have continually served the Young Steven Johnson has been named Lawyers Division with dedication and assistant vice president, life and disability enthusiasm, as well as encouraged new

S o u t h C a r o l i n a B u s i n e ss

MEMBER N EW S Compiled by Matthew Gregory (Send publicity and event photos to: julie.scott@scchamber.net) young lawyers to become involved with the South Carolina Bar. Todd R. Davidson has joined Gallivan, White & Boyd P.A.’s Greenville office as a partner. Curtis L. Ott has joined the firm’s Columbia office as a partner. GEL Engineering LLC is pleased to announce that Cameron Baker, P.E. recently received his professional engineer license from the South Carolina Department of Labor, Licensing and Regulation Board. Baker is a project manager/project engineer in GEL’s Civil Engineering Group. Katy Kingsmore has joined Insurance Management Group as an account executive. She brings 13 years of experience working with Columbia businesses providing employee insurance benefits. Kingsmore is a licensed Life, Accident & Health agent, as well as a member of the National Association of

Health Underwriters. KeenanSuggs was one of four South Carolina agencies and the only one in the Midlands to receive the Accident Fund Insurance Company of America’s 2011 President’s Club Award. The annual award is presented to a select number of independent insurance agencies that meet specific criteria for written premium and sustained profitability. President’s Club qualifications for 2011 included written premiums exceeding $1.5 million, a cumulative loss ratio of 52 percent or less and premium retention of 78 percent or higher. Lexington Medical Center has been named one of “The 25 Best Hospitals to Work for in the U.S.” by Health Exec News, a national publication. This distinct honor recognizes hospitals that have provided outstanding work environments with opportunities for professional development, excellent benefits, compensation, activities, efficient workflow and employee satisfaction. Summer Withers has joined Marketplace Staffing as a placement

Welcome, New Members AFTERDISASTER Greensboro, N.C.

Heritage Community Bank Hartsville, S.C.

Alfred Williams & Company Columbia, S.C.

Knight Printing & Graphics Charleston, S.C.

Anderson Hardwood Floors Standard Plywood Lexington, S.C.

Med Center Pharmacy & Medical Inc. Darlington, S.C.

Argos Cement Harleyville, S.C.

Pratt Industries - Greenville Converting Simpsonville, S.C.

AVANTech Columbia, S.C. CAOTTI - A Dish Retailer McCormick, S.C. Clayco Inc. Chicago, Ill. Compact Power Inc. Rock Hill, S.C. Design Strategies LLC Greenville, S.C. EagleMed Wichita, Kan.

counselor in the firm’s Greenville office. Karen Wilson has joined Marketplace Staffing as a recruiter in the firm’s Fountain Inn office.

Meeting elected officers and board members to the Association’s board of directors. Mayor Randy Randall, City of Clinton, was elected president.

M. Stephen Stubley, a partner with McKay, Cauthen, Settana, & Stubley P.A., has been awarded the AV Preeminent Rating by Martindale-Hubbell Peer Review Ratings. This designation signifies that Stubley has received the highest possible rating for his legal abilities and ethical standards.

NAI Avant has named Michael Grant information technology and research associate. Grant joins NAI Avant with more than 20 years of experience in information technology, graphic communications and graphic design. NAI Avant has also named Traci Tasca, CPA, MAFA chief financial officer. Tasca has more than 20 years of experience in commercial real estate accounting, financial management and risk management.

McNair Law Firm P.A. has announced it is expanding its footprint by opening an office in Lexington, Ky. It has hired local public finance attorney Gillard (Gil) B. Johnson to open the office and help drive growth in the market. The Lexington location will be the firm’s tenth office, adding Kentucky to its current locations in South Carolina and North Carolina. Kip McAlister has joined the firm as an associate in its Columbia office. He will focus his practice on the defense of industry and business in environmental regulatory compliance cases in state and federal courts. Andy Evans has joined Mungo Homes as sales manager for its Columbia division. Delegates at the Municipal Association of South Carolina’s 72nd Annual

NBSC, a division of Synovus Bank, recently announced that Jason Corry Rogers has been promoted to branch manager. In this new role, Rogers will oversee quality customer service at the Irmo branch. He will also be responsible for loan and deposit growth. Robert G. Phillips has been named regional executive for the South Coastal Region that includes Charleston, Berkeley, Dorchester and Beaufort counties. Pacolet Milliken Enterprises Inc. has announced the addition of two senior members to its Energy and Infrastructure Division: Ralph Walker as the senior vice president of energy and William D. Falls

SAIC Energy Environment & Infrastructure LLC Aiken, S.C. Shaw Lumber Company Inc. Sumter, S.C. SIB Development and Consulting Charleston, S.C. Sloan Construction Company Inc. Duncan, S.C. Southern Tide Greenville, S.C.

Environmental Consulting & Technology Inc. Columbia, S.C.

The Sunnie and DeWorken Group Greenville, S.C.

GKN Aerostructures North America Irving, Texas

Westminster Chamber of Commerce Westminster, S.C.

Greenwood Capital Associates Inc. Greenwood, S.C.

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Events

Calendar

September 7, 2012 Environmental Technical Committee Columbia

For the fifth time, Palmetto Health has been recognized as one of the “Most Wired” organizations by Hospitals & Health Networks magazine. Palmetto Health is the only Midlands health care provider to meet the magazine’s strict criteria and is one of only five “Most Wired” organizations in South Carolina. Palmetto Health previously won the award in 2003, 2005, 2010 and 2011.

September 13, 2012 8th Annual Excellence in Workplace Diversity Awards Dinner Columbia

Richardson, Plowden & Robinson P.A. attorney David A. Anderson has been elected as a member of the Federation of the Defense and Corporate Counsel (FDCC).

September 18, 2012 Safety, Health & Security Committee Columbia

Robinson McFadden would like to recognize Rebecca A. Roser for all she and the Young Lawyer Division (YLD) of the South Carolina Bar have accomplished during her years of service to the Bar. Roser will complete her service to the YLD as its immediate past president for the 2012 – 2013 year. She has served as an officer of the Division since 2009, first as secretary/treasurer, then president elect and last year as its president.

September 6, 2012 Business Classic Golf Tournament Lexington

Board of Directors Meeting Columbia Executive Committee Columbia September 20, 2012 Excellence in Education Council Columbia October 4, 2012 Best Places to Work in South Carolina Columbia October 5, 2012 Environmental Technical Committee Columbia October 10, 2012 Small Business Committee Columbia October 18, 2012 PR Advisory Committee Columbia October 25, 2012 Manufacturers Steering Committee Columbia November 7-9, 2012 33rd Annual Summit Isle of Palms

For additional events, visit s cc h a m b e r . n e t .

as the division’s chief financial officer.

| S o u t h C a r o l i n a B u s i n e ss

Sage Automotive Interiors has acquired and installed 24 new weaving machines for its Sharon plant, located in Abbeville, to meet the rising demand of its global products. The new growth, which has resulted in new jobs to the plant, is the result of a $2.7 million investment. Schnabel Engineering Inc. has promoted April Rodgers to senior staff scientist. Rodgers resides in Schnabel’s Columbia branch office where she brings more than 14 years of environmental experience. Pamela Oree has been promoted to project engineer. Oree resides in Schnabel’s Columbia branch office where she brings more than seven years of civil and geotechnical engineering experience. SC State University alumnus Capt. Michael T. Pope was recently named the top Army Reserve Officers’ Training Corps (ROTC) recruiting operations officer and received the U.S. Army Cadet Command Award for Excellence. Capt. Pope was commissioned through SC State’s Bulldog Battalion in 2003. SC State University has received a $50,000 Coca-Cola First Generation Scholarship from the Coca-Cola Foundation, which will benefit four students who are the first in their immediate family to attend college. Select Health of South Carolina has announced it is the recipient of a 2012 Gold Aster Award. The company was recognized for its 2011 Annual Message to the Community: Growing to Touch More Lives. To receive a Gold Aster

Award, a company must score among the top 5 percent in the nation. Select Health offers the largest Medicaid health plan in South Carolina, First Choice, which serves more than 230,000 members.

Advertiser Index ALCOA................................. Outside Back Cover Allied Air..................................Inside Front Cover

The South Carolina Hospital Association was one of 10 South Carolina organizations recognized as winners of a Palmetto Hospital Trust (PHT) Safety Award and one of fourteen winners of a PHT Transitional Duty Award at the PHT General Membership Meeting.

Armstrong Air.................................................. 27 Bank of America.................................................8 CMC Steel South Carolina.............................. 26 Dixon Hughes.....................................................9

Spartanburg Water has received a national award for maintaining the Directors Award of recognition from the Partnership for Safe Water, a national volunteer initiative developed by EPA and other water organizations representing water suppliers striving to provide their communities with drinking water quality that surpasses the required federal standards. Spartanburg Water has maintained the Directors Award for five years, an honor achieved by only 165 water utilities across the country.

Duke Energy.................................................... 22 Economic Development Partnership.............. 27 Elliott Davis....................................................... 13 Haynsworth Sinkler Boyd, P.A............................1 Palmetto Pride.................................................. 15 PDQ South Injection Technologies.................. 29 Santee Cooper................................................. 19

SynTerra Corporation has announced the opening of its Jacksonville, FL office under the leadership of Alissa Svenson.

SCDEW............................................................ 21 SCRA................................................................ 11

TD Bank has named Michael B. Cooper as vice president, senior lender in Middle Market Lending in Greenville. He is responsible for managing and growing TD Bank’s diverse Middle Market client base in upstate South Carolina and its surrounding counties. Time Warner Cable executives, employees and Summerville Mayor Bill Collins celebrated the unveiling of a new hub site, which utilizes a new innovative “pod” concept to better serve customers. The hub is the second largest to be built in South Carolina by Time Warner Cable and houses technical equipment, including fiber, coaxial cable and Ethernet, enabling engineers to manage and make changes quickly and easily. Turner Padget Graham & Laney P.A. has announced that Elaine H. Fowler has been elected to serve as secretary-treasurer of the South Carolina Bar Foundation, which serves as the philanthropic arm of the South Carolina Bar. Tourism expert Rich Harrill has been named the new acting director of the School of Hotel, Restaurant and Tourism Management at the University of South Carolina. Harrill is also director of both the Alfred P. Sloan Foundation Travel and Tourism Industry Center and the International Tourism Research Institute.

SLS Consulting................................................. 29 SONOCO............................................................6 Stäubli.............................................................. 23

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“

Our concerns are our members’ concerns. Strong business advocacy ensures South Carolina becomes more globally competitive.

”

— Otis Rawl, President and CEO of the South Carolina Chamber of Commerce

Founded in 1940, the South Carolina Chamber of Commerce is the Palmetto State’s largest statewide broad-based business and industry association and voice of business at the State House. The South Carolina Chamber keeps a close eye and constant presence at the State House, engaging legislators in meaningful dialogue while working to get positive business legislation passed and halting dangerous anti-business bills. The business community’s annual list of legislative priorities, the

Competitiveness Agenda, is based on feedback from the more than 18,000 businesses the Chamber represents. Over the past four years alone, the return on investment for South Carolina businesses has been $2 billion through legislative advocacy on issues like workers’ compensation reform, Employment Security Commission reform, port restructuring and more. Contact us today at 800-799-4601. Learn more at www.scchamber.net.