2011 Jan/Feb South Carolina Business by South Carolina Chamber of Commerce

J ANUARY /F EBRUARY 2011 V OL . 32 | N O .1

ECONOMIC DEVELOPMENT

Charting New Territory 2011 Competitiveness Agenda Turning the Tide TORTS TODAY:

Fact More Fantastic Than Fiction NEW COLUMN

HEALTH CARE CHECKUP

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| SOUTH CAROLINA BUSINESS | January/February 2011

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contents >> CONTENTS

F E A T U R E S 11 14

2011 COMPETITIVENESS AGENDA by Darrell Scott TORTS TODAY: FACT MORE FANTASTIC THAN FICTION by Ingo Angermeier TURNING THE TIDE by Matthew Gregory

IN EVERY ISSUE ECONOMIC DRIVERS

FORMING ECONOMIC DEVELOPMENT PARTNERSHIPS by Rebecca Battle-Bryant

Member Spotlight A COMPANY ON TARGET by Julie Scott

by Stephen R. Covey and David K. Hatch

Business Costs by Debbie Hester

Education / Workforce

HEALTH CARE CHECKUP by Robby Kerr

Legal Environment by Steve Warren

Infrastructure by Buck Limehouse

Dynamism / Entrepreneurialism by Ashley Hannah

DEPARTMENTS & NEWS From the President .............................................3 by Otis Rawl

Member News ....................................................30 Compiled by Matthew Gregory

Business Briefs ...................................................26

Welcome, New Members ...............................31

After the Event Manufacturers Conference .............................27 31st Annual Summit ........................................28 2010 Silver Crescent Awards ...........................29 Best Places to Work .........................................29 Workplace Diversity Awards ...........................29

Upcoming Events ..............................................32

10 Quality of Life by Kristie Byrum, APR

Coming Next Issue The March/April issue will take a closer look

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

at South Carolina’s billion dollar tourism industry and what can be done to continue to grow this vital component of South Carolina’s economy. This issue will take

1st PLACE MAGAZINE 2009 S.C. Press Association 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.

| SOUTH CAROLINA BUSINESS | January/February 2011

an in-depth look at destination marketing plans and what needs to happen at the State House to keep tourism strong during the current economic climate.

>> FROM THE PRESIDENT

The elements of economic development January/February 2011 Volume 32, Number 1

SOUTH CAROLINA CHAMBER OF COMMERCE 1201 MAIN STREET, SUITE 1700 COLUMBIA, SOUTH CAROLINA 29201 800.799.4601 WWW . SCCHAMBER . NET

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( SOUTH CAROLINA BUSINESS MAGAZINE E DITOR MATTHEW GREGORY A RT D IRECTION & D ESIGN TIM MCKEEVER / TMCA INC. P RODUCTION & P RINT C OORDINATION TMCA INC. D IGITAL I MAGING & P RINTING R. L. BRYAN COMPANY A DVERTISING S ALES CONVERGING MEDIA LLC DEIDRE MACKLEN 803.318.3923 C OVER SC S TATE P ORTS

STATE CHAMBER with Distinction

Copyright © 2011 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

O t i s Rawl

he South Carolina General Assembly will convene January 11, expecting to face a more than $800 million budget shortfall. Though we know tough decisions will have to be made, in 2011 the General Assembly’s primary focus must be on job creation, beginning with the passage of focused economic development priorities. A great sign of the appetite to create jobs is the appointment of Bobby Hitt of BMW Manufacturing to lead the South Carolina Department of Commerce, the agency responsible for the recruitment of strong companies and the retention of existing companies that call the Palmetto State home. The South Carolina Chamber of Commerce applauds Governor Nikki Haley on the appointment. Bobby Hitt is a strong business leader, who I have worked with closely on a number of issues, and he understands the opportunities and challenges facing businesses interested in expanding in South Carolina and those considering locating in the Palmetto State. The business community and Governor Haley have both consistently talked about the importance of putting quality busi- Rawl is president and chief executive ness leaders in critical government positions. A strong Department of Commerce officer of the South Carolina Chamber head is a crucial element of economic competitiveness, and the appointment of of Commerce. Hitt to lead the agency is a step in the right direction. I am pleased to present the 2011 Competitiveness Agenda, the business community’s annual list of legislative priorities, in this issue of South Carolina Business. After 10 Grassroots Meetings across the state this summer and hundreds of conversations with business leaders, we believe this legislative agenda provides a focused economic development roadmap critical to moving South Carolina forward in the global marketplace. First, there is still much work to be done on tort reform. South Carolina ranks fifth worst in the nation in non-economic damage caps, sixth worst in punitive damages and 10th worst in class action lawsuits. The business community is calling for the passage of comprehensive tort reform this year. Senate Majority Leader Harvey Peeler pre-filed legislation that includes punitive damage caps, limits on appeals bonds and seatbelt admissibility, amongst other measures. The business community urges the General Assembly to pass this important bill. One of the most important economic development tools the Palmetto State has is our port system. In 2007, legislation to help move port expansion forward in Jasper County under the direction of the South Carolina State Ports Authority (SCSPA) passed the General Assembly. Another bill, which provided $167.5 million for a port access road serving expanded facilities at the Charleston Navy Base site, also passed the legislature. Then, in 2009, the General Assembly passed legislation to restructure and stabilize the SCSPA. With the widening of the Panama Canal by 2014, which will double its capacity and allow for bigger ships, our port has the opportunity to be the first port of call on the eastern seaboard for these larger vessels. Many experts believe the widening of the Panama Canal will encourage numerous shipping companies currently doing business on the West Coast to move their business to the East Coast. We cannot miss this opportunity and must continue port expansion, which includes dredging and deepening as well as a dual rail solution. In this issue of South Carolina Business, we introduce you to Jim Newsome, who took the helm of the SCSPA in 2009. Since then, port volume continues to rise, with recent numbers pointing to a 16 percent increase in the first five months of fiscal year 2011. Newsome has moved the port forward with a variety of projects, including strengthening ties with shipping customers and expanding a new container terminal at North Charleston’s former Navy base. We also unveil a new health care column in this edition. Numerous changes are on the way for businesses during the next several years as provisions included in the Patient Protection and Affordable Care Act go into effect. To kick off this informative column, Robby Kerr has provided an overview of policy changes that will affect businesses through 2018. In addition to the new column, the Chamber will closely follow the Medicaid budget process during this legislative session, because any shortfalls in Medicaid will result in a direct cost-shift to the business community. It is estimated that for every $100 million not funded through the Medicaid program or match, there is a direct cost shift of between ½ and 1 percent to employers who currently provide health insurance. With cooperation between business leaders and legislators, I know 2011 can be a successful year. I encourage the General Assembly to pay close attention to our 2011 Competitiveness Agenda to ensure pro-business legislation is passed. If the right decisions are made, South Carolina can emerge from the economic recovery as a global leader.

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ECONOMIC DRIVERS

> > E D U C AT I O N & W O R K F O R C E

Creating leaders, one child at a time St e phen R. Covey and Davi d K. Ha tch

ew are blind to the fact that there are problems in today’s schools. But amidst the challenges, there are encouraging success stories emerging. Among these victories is what is taking place with schools that are teaching principles of personal leadership in elementary schools, including schools in South Carolina The idea originated at A.B. Combs Elementary in Raleigh, NC in 1999. The school looked like so many other public schools. It had a 50-year-old building, a racially diverse population, half the students were on free-and-reduced lunch plans, and test scores were low. The principal, Muriel Summers, had tried multiple programs to ignite improvements with little lasting success. About that time, Summers attended a 7 Habits of Highly Effective People presentation. As she engaged in the content and observed the 700 or so adults in the room, she kept thinking, “Why do we wait to teach these concepts until people reach adulthood? Why don’t we teach them to children when they are young before their habits become set?” Before long, Summers had her entire staff trained in the 7 Habits. The school established a theme, Developing Leaders, One Child at a Time, and began teaching the habits to the students in creative ways. The focus was not on making CEOs but on helping children learn how to lead their lives. Of the 7 Habits, the first three focus on helping children to be self-sufficient. They emphasize taking personal responsibility for one’s life, having a plan and making good use of time. The next three habits focus on how to interact effectively with others. They emphasize how to seek win-win solutions to problems, listening and speaking skills, and skills for working in teams. The seventh habit emphasizes the need to address the whole child, including their physical and social/emotional needs. It wasn’t long before teachers and parents saw a dramatic difference in the school’s culture. Teachers not only enjoyed teaching the principles, but also applying the habits themselves. Discipline problems dropped dramatically. Not only were there less problems, but students were given the language and tools to solve problems on their own. Parent satisfaction went up. Meanwhile, even though the new emphasis was not on academics, students passing end-of-grade tests rose from 65 percent to 97 percent. The teachers knew they were on to something. In 2006, A.B. Combs was named the #1 Magnet School in America. That’s when other schools took notice. In 2008, The Leader in Me book was published telling the A.B. Combs’ story and the successes of other schools that had adopted the leadership theme. In the two years since that book was released, 400 schools have implemented the process in the U.S. and abroad. CONSISTENT OUTCOMES THAT ARE REPORTED BY SCHOOLS IMPLEMENTING THE LEADER IN ME CONCEPT ARE: • Increase in students’ self-confidence. • Decrease in discipline problems. • Increase in teacher satisfaction and effectiveness. • Acquisition of skills necessary for today’s world. • Improvements in academic scores. In 1999, the Association of Chamber of Commerce Executives held its national convention in Raleigh, NC. Ten A.B. Combs students were brought onstage during the keynote to highlight how leadership skills can be learned at a young age. The audience’s response to the children was overwhelming, and in the past year, nearly 50 schools across the U.S. have started incorporating the leadership model thanks to support from members of local chambers of commerce. Due to support from the business community, The Leader in Me program is now in South Carolina. Lori Dibble, principal of Summerville Elementary, leads one of the South Carolina schools incorporating the program.

Rita Berry (center), CEO of the Greater Summerville Dorchester County Chamber, attends a ribbon cutting ceremony with Summerville Elementary Principal Lori Dibble (right).

“This year at Summerville Elementary has been an amazing year. Not only did my teachers embrace The Leader in Me process fully, but our community did as well!” said Dibble. “The Greater Summerville Dorchester County Chamber of Commerce and its CEO, Rita Berry, have walked hand in hand with us on this journey. The goal is to have all students comfortable with who they are, know what they want in life and know how to write a plan to get there. It is a goal parallel to that of the Chamber, and together we can create a stronger workforce, stronger families and a stronger community and region.” While FranklinCovey continues its focus on bringing the 7 Habits and other leadership courses to corporate and government circles around the globe, nothing is more thrilling than what is happening in the classrooms, particularly in the elementary schools. There is much to do in fixing problems in today’s schools, but rather than joining the masses of critics, more people should celebrate and applaud the teachers who are really doing so much to make a difference in young people’s lives and improve our communities. To learn more about how you or your business can bring The Leader in Me program to your community, contact Chad Smith, southeast area director with FranklinCovey’s Education Practice. He can be reached at (404) 285-7046 or chad. smith@franklincovey.com. Dr. Stephen R. Covey is the author of The 7 Habits of Highly Effective People.

Dr. David K. Hatch is director of The Leader in Me Strategic Initiatives.

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ECONOMIC DRIVERS

>> BUSINESS COSTS

Fighting back against theft by pen Debbie Hest er

he collection of bad checks has become more difficult and costly in recent years. Now a merchant can only obtain an arrest warrant on a bad check through a law enforcement officer, and a recent South Carolina Supreme Court decision requires an officer of the court to prosecute bad checks. These requirements limit the power of a victim to seek criminal action against a person on their own. However, some victims are taking advantage of a free service offered by their local solicitor’s office to handle the collection and prosecution of fraudulent checks. This free service is called the Solicitor’s Worthless Check Program, and 34 of South Carolina’s 46 counties have this offender-funded, self-sustaining program. The program is supported through cooperation of judicial, law enforcement, county council and community service agencies. One of the most successful Worthless Check Units (WCU) was established in Lexington County in October 2003. The Lexington WCU has collected and returned to merchants more than $5,069,932 in restitution and more than $838,460 in merchant service fees. The Lexington WCU has received over 42,000 checks, and

50.11 percent of merchants have a 100 percent collection rate on prosecutable check cases. The Lexington program provides training and assistance to the newer programs within its own solicitor’s office. The WCU collects monies on bad checks and distributes restitution to the victims. The program transfers the collection process from the victim to the solicitor’s office, decreasing the victim’s work and cost associated with collections. The WCU handles all legal requirements, including mailing all correspondence, collecting restitution, service fees and all other fines and assessments, and disbursing restitution and service fees to victims. Upon full collection of a worthless check, the WCU sends the victim the full amount of the check plus all legally approved service charges, which is currently $30.00. If restitution is not made, the WCU verifies the facts of the case with the victim, prepares and signs an arrest warrant on the victim’s behalf and prosecutes the check writer to the fullest extent of the law. Theft with a pen is more subtle than theft with a weapon, but it is still theft—and it is your loss. The

Solicitor’s Worthless Check Program is designed to help anyone who has a bad check. Each program is operated independently. Contact your local solicitor’s office to learn more about the Worthless Check Program. Debbie R. Hester is the director of Lexington County’s Worthless Check Unit in the 11th Circuit Solicitor’s Office. She can be reached at (803) 785-8142.

>> LEGAL ENVIRONMENT

The tangled web of social media St e ve War ren

ALEX SLOBODKIN

n less than 20 years, employers have seen the problems the Internet can create in the workplace. As a result, many employers now restrict employee communications via the Internet and social media. Not surprisingly, the government is now focusing its attention on how far an employer can go in limiting an employee’s right to communicate with social media and the Internet. The National Labor Relations Board’s (NLRB) General Counsel recently filed a complaint against an employer for discharging an employee who disparaged her supervisor on Facebook. The NLRB has not issued a decision, but the General Counsel claims the employer’s blogging and Internet policy violates Section 7 of the National Labor Relations Act (NLRA) because it prohibits disparaging the company/supervisors or depicting the company on the Internet in any way without permission, i.e. protected concerted activity. The text of the posting is not important. The complaint in and of itself puts employers on notice that the NLRB may scrutinize any policy or disciplinary action that restricts employee communications posted on

the Internet. Furthermore, employers must assume that employees who use social media will be aware of this complaint and their new rights. More and more employers are discarding their ”ostrich approach” and adopting or revising their policies. What should you do to protect your business? Adopt a social media policy. An employer’s failure to adopt a personnel policy often results in a decision based on a personal policy determined by whose ox is gored, or who gored the ox. Establish your policy before the ox is dead. The objective. Explain that the policy is for the protection of the company and employees, and you respect employees’ rights of self-expression and concerted activity. Educate. With millions of users, electronic communications live forever and are seldom private. An EEO employer. Harassment, bullying, discrimination and retaliation are not permissible between coworkers, whether they occur in person or online, even if posted after hours or from home. Laws apply. The law applies to the Internet and people who post comments, pictures or other infor-

mation. People are sued and discharged for postings considered to be libel, defamation, disloyal, etc. Confidential and proprietary information. Employees must not disclose any confidential or proprietary information. Discipline. Any violation will subject an employee to disciplinary action up to and including termination. Disclaimer. The company respects every employee’s lawful right of free speech, and the company will not take any action against an employee whose communication is protected by the NLRA or any other state or federal law. Document. Ensure that every employee receives and signs a copy of your policy. Stay tuned. Round one has begun, and the fight promises to be a 15-rounder. Steve Warren is the managing partner of Constangy, Brooks & Smith’s Greenville office. The firm also has an office in Columbia, as well as 20 other offices located across the country. Warren can be reached at (864) 242 242-2577 2577 or swarren@constangy.com.

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ECONOMIC DRIVERS

>> INFRASTRUCTURE

New SCDOT permit rules improve international shipping B u c k Lim ehouse

n 2009, the General Assembly made the secretary of transportation an ex officio member of the South Carolina State Ports Authority (SCSPA) board. This step has improved communication and cooperation between the state’s two largest transportation agencies and led to new South Carolina Department of Transportation (SCDOT) permit rules that are enhancing economic development in South Carolina. International shipping involves multimodal transfers and global supply chains. One weak link can impact the whole chain. In recent years, the shipping of South Carolina export commodities has suffered from truck weight limitations for international shipping containers. In some cases, this has led to the relocation of industries to neighboring states. The most heavily impacted industries have been frozen poultry, bulk grain and bulk minerals. It was apparent to transportation officials that South Carolina needed to become more competitive to increase exports. Typically, it is illegal for trucks to exceed a gross vehicle weight (GVW) of 80,000 lbs, but the law allows SCDOT to issue special overweight permits to haulers

carrying non-divisible loads. It is the interpretation of the Federal Highway Administration that a sea-going shipping container with an international bill of lading is non-divisible because it cannot be divided until it reaches the point of delivery. Based on that interpretation, SCDOT is legally allowed to issue overweight permits for the movement of sea-going shipping containers. Legal considerations aside, permit limits could not be raised without some detailed engineering analysis and planning. The state’s roads and bridges are getting older, and limited highway funding means many routes are simply incapable of sustaining heavier loads. In January 2010, the decision was made to use refrigerated containers as a test group to assess the potential impact of increased weight limits. This had an immediate beneficial impact on the state’s poultry industry. For nine months, input was received from those directly affected by the program: SCDOT engineers, law enforcement agencies, transport police, trucking interests, exporters and SCSPA officials. As part of the analysis, statewide bridge inspection data was integrated with road quality data, and routes were

identified that would minimize damage to the highway system. The end result was a permitting program that allows permittees to buy annual permits for loads up to 100,000 pounds using up to five specified routes. Permittees still have the option of obtaining container permits for up to 90,000 pounds for use on any Interstate, U.S. or South Carolina route. The new rules became effective November 1, 2010. They apply to all international sea-going shipping containers. To obtain a permit, haulers may contact SCDOT toll-free at 877349-7190. Buck Limehouse is South Carolina’s secretary of transportation.

>> DYNAMISM/ENTREPRENEURIALISM

The building blocks of S.C.’s knowledge economy As h le y Ha nnah

t has been said that, “To create your own future, you must invent it.” In March of 2009, South Carolina Research Authority (SCRA) CEO Bill Mahoney, City of Charleston Mayor Joe Riley and Medical University of South Carolina (MUSC) President Ray Greenberg each plunged a shovel into the dirt at a site off of Meeting Street in downtown Charleston. It was the first of three groundbreaking ceremonies to build Innovation Centers across South Carolina. These new Centers are planned in partnership with and in close proximity to the state’s three research universities. The third Innovation Center is scheduled to open in Anderson in March 2011. As part of SCRA’s mission to develop South Carolina’s knowledge economy, these Innovation Centers are built to house and support the development of emerging, technology-based companies. Studies have shown that start-up and small businesses have

tremendous economic contributions. According to a recent Kauffman Foundation study, all net new jobs in the U.S. since 1980 were created by start-up companies. The U.S. Small Business Administration reports that small businesses account for 50 percent of the country’s private nonfarm gross national product, create between 60 and 80 percent of the net new jobs and are 13 to 14 times more innovative per employee than large firms. SC Launch, an SCRA collaboration, also supports the commercialization and development of cuttingedge companies in South Carolina through business mentoring services, investment and access to a network of resources. SCRA has provided funding and support, through its SC Launch program, for 188 qualified entities since SC Launch’s inception in 2006. “There are many factors that contribute to economic development,” said SCRA CEO Bill Mahoney. “We believe that creating the best environment for emerging companies will bring positive outcomes for South Carolina. SCRA currently adds value for our partners and for the state through tangible assets, such as

| SOUTH CAROLINA BUSINESS | January/February 2011

Innovation Centers and SC Launch investments, but we are also shaping our future with these programs to realize the vision of a strong knowledge economy in South Carolina.” Tenants are already filling the Innovation Centers with technology-based companies; many through the commercialization of South Carolina university research. The SC Launch program has attracted more than $104 million in add-on, private equity investment funding in South Carolina knowledge-based start-up companies. SC Launch companies are also creating quality jobs with average salaries well above the current state and national averages. As the third Innovation Center opens soon, remember that the economic strength of South Carolina will not build itself, but will build on the investments made today. Ashley Hannah is a project manager at SCRA. She has worked with South Carolinabased technology start-up companies since 2002.

TRANSFORMING THE BUSINESS LANDSCAPE

OUR TEAM L-R: Carl W. Blackstone*; William R. Johnson; John A. Hodge; Kimberly Witherspoon; Robert S. Galloway III; Jeremy L. Cook; Edward G. Kluiters, chair; Julie O. Medich; Tigerron A. Wells; Gary W. Morris; Frank T. Davis III; Kathleen C. McKinney; S.J. (Seph) Wunder, Jr.; Benjamin T. Zeigler; Michael A. Tongour**

LOCAL KNOWLEDGE DEVELOPED WITH A GLOBAL PERSPECTIVE Haynsworth Sinkler Boydâ&#x20AC;&#x2122;s Economic Development Team works extensively with state and local governments and agencies in successfully locating projects in South Carolina. Companies from the U.S. and around the world rely on our knowledge and experience in doing business in South &DUROLQD ZKHWKHU IRU WKH Ă&#x20AC; UVW WLPH RU LQ H[SDQVLRQV RU UHVWUXFWXULQJV RI H[LVWLQJ RSHUDWLRQV Our lawyers and government relations advisors are committed to the growth and prosperity of our communities. Bring Haynsworth Sinkler Boyd in on your next project and put our world of knowledge to work for you. * Non-attorney professional ** Admitted to practice in DC only

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ECONOMIC DRIVERS

>> QUALITY OF LIFE

USC Upstate works to grow the creative class Kr is t ie Byr um , APR

hile journeying through San Diego’s Gaslamp music scene, pianist Gregg Akkerman recognized that getting onto the stage meant a lot of hard work behind the scenes, planning gigs, connecting with agents and marketing his skills. Now, student musicians at the University of South Carolina Upstate call him Dr. Akkerman, as he shares his skills and talents with participants in the university’s new commercial music major. “To be honest, this is the type of major I wish I had,” said Akkerman, the associate professor of music and director of jazz studies and commercial music at USC Upstate. “The commercial music major is a performancebased degree that emphasizes career-management skills in contemporary music environments.” The new commercial music major is the first-of-itskind in the state and illustrates advancements in South Carolina to grow the creative class. The program, housed in the Department of Fine Arts and Communications Studies, is a new offering of the College of Arts and Sciences at USC Upstate. In his 2002 book, The Rise of the Creative Class, Dr. Richard Florida documented that diversity and creativity combine to drive population growth and robust eco-

Pianist Gregg Akkerman

nomic development. The evidence in South Carolina continues to mount with the advent of the new major and artistic cornerstones, such as Spoleto and Artisphere. “This major typifies the forward thinking efforts that help to enhance the quality of life for individuals living in the state,” said Irv Welling, chair emeritus of Elliott Davis and advocate of numerous arts program throughout South Carolina. “The state will benefit dramatically from the creation of the major, both from an economic development perspective and the fact that burgeoning artists create a lively atmosphere for the growth of the state’s creative class.”

University officials believe the major will enhance the local community and promote the state nationally. “We anticipate this program will attract students from across the Southeast region, as it provides a unique curriculum that may be found in Nashville or Florida, but has not been available in South Carolina until now,” said Akkerman, who studied more than a dozen commercial music majors nationwide while drafting the curriculum. The next step for the program is national accreditation by the National Association of Schools of Music (NASM). “We will continue to add curriculum and update content to affirm that we are offering students the most relevant information for the contemporary working environment,” said Marsha Dowell, senior vice chancellor for academic affairs. Future plans include facility expansions and enhancements to simulate production and performance facilities. Kristie Byrum, APR is president of the Byrum Innovation Group Inc., a strategic marketing and communications firm based in the Upstate.

Kay Biscopink, CPA Shareholder and International Tax Practice Chair

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12/8/10 10:43 AM

>> FEATURE

2011 COMPETITIVENESS AGENDA

Business community releases legislative priorities B y D a rre l l S co tt

THE SOUTH CAROLINA CHAMBER OF COMMERCE, THE STATE’S UNIFIED VOICE OF BUSINESS, HAS RELEASED ITS LEGISLATIVE PRIORITIES FOR 2011, CALLED THE COMPETITIVENESS AGENDA. THE COMPILATION OF ISSUES GIVES THE SOUTH CAROLINA GENERAL ASSEMBLY A CHANCE THIS LEGISLATIVE SESSION TO PASS SIGNIFICANT MEASURES TO REPAIR AND PREPARE THE STATE FOR THE EVEREVOLVING GLOBAL MARKETPLACE.

eveloping the annual Competitiveness Agenda begins with Grassroots Network Regional Meetings across South Carolina. Here, business leaders come together to discuss legislative priorities and the issues they need the legislature to address to become more competitive. In the end, the Grassroots Network hears from more than 1,000 business leaders.

TAX REFORM STILL A TOP PRIORITY uring the 2006 legislative session, South Carolina’s General Assembly attempted to address rising homeowner property taxes with Act 388, piecemeal legislation that provides relief from school operating taxes for owner-occupied homes and is funded with revenue from a 1-cent increase in the state sales tax. Exacerbating the issue, the current economic downturn has clouded revenue projections, and sales tax collections have fallen well below expectations, threatening and reducing school funding across the board. Schools are facing a shortage of operating dollars thanks to the bill, which in FY 2009-10 generated less than $500 million of the $615 million needed. This resulted in a more than $100 million shortfall. It is estimated Act 388 has cost the state more than $585 million since its passage, which has

put more pressure on the General Fund. Business leaders across the state continue to say the No. 1 economic development issue for South Carolina is reforming commercial and industrial property tax rates. South Carolina businesses pay the second highest property tax rates in the nation for industrial property and the seventh highest rates for commercial property. And, a recent poll of GSA Business Journal readers found that nearly half of citizens say to repeal Act 388 immediately. It is imperative that state government take a comprehensive, holistic look at tax reform in South Carolina, which includes examining property taxes, exemptions, sales taxes, etc. if the state is to improve its global competitiveness and succeed in retaining and attracting good jobs for citizens.

PROMOTING ECONOMIC DEVELOPMENT ncentives to promote prosperity through economic development are required to create a sustainable, competitive business environment that will help increase individual wealth for all citizens by growing and attracting new investment. South Carolina’s unemployment rate is still above 10 percent, and the creation of jobs must be a top priority in 2011. A strong

scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

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Department of Commerce should be supported, including dollars allocated for the Closing Fund. In 2005, the General Assembly achieved a tort reform bill, but there is still much work to be done. The business community is calling for comprehensive tort reform, which includes addressing punitive damage caps, limits on appeals bonds and seatbelt admissibility. South Carolina ranks fifth worst in the nation in noneconomic damage caps, sixth worst in punitive damages and 10th worst in class action lawsuits. Promoting economic development includes maintaining and creating sound infrastructure to encourage businesses to locate and expand in the state. The business community is calling for continued port expansion as the state prepares for completion of the Panama Canal widening project, which includes a dual rail access solution and port dredging. In addition, dedicated funding for the maintenance of South Carolina’s roads and bridges must be achieved. Other key issues to promote economic development include: providing available and cost effective energy; strengthening intellectual property rights of employers; full funding for ReadySC and the South Carolina Manufacturing Extension Partnership (SCMEP); adequate, dedicated and recurring funding for broad tourism marketing and matching dollars around the state; and, supporting seed capital and microloan legislation to spur economic growth.

PREPARING THE FUTURE WORKFORCE t is vital to the economic competitiveness of the state that students coming out of South Carolina public schools are ready to meet employment demands of an increasingly knowledge-based private sector. Between 2010 and 2030, it is estimated South Carolina’s employment demand will increase by approximately 16 percent while the traditional labor pool available to fill these jobs will only increase by approximately 7 percent. The General Assembly passed the Education and Economic Development Act (EEDA), now called Personal Pathways to Success, in 2005 and approved needed implementation funding in 2009. The primary goals of Personal Pathways are to increase high school completion rates, better prepare students for work and college, increase parental involvement and increase options for students at risk of dropping out of school. This landmark legislation has had amazing results, and students who began Personal Pathways in 2005 as eighth graders are now just one semester away from completing

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their education and the career planning process under the program. Adult education in South Carolina also continues to present enormous challenges. Often those who lack reading skills are parents raising children and attempting to prepare them for future careers. Programs to retool and reeducate also must be enhanced and readily accessible to citizens in South Carolina. A partnership of action and cooperation between the public and private sectors is needed to ensure accountability and success related to education and workforce development. The Chamber supports funding for key education initiatives, including Personal Pathways to Success (EEDA) and the endowed chairs program, legislation to help achieve the business community’s 2020 Education Goals and early childhood reading initiatives.

PROVIDING REGULATORY RELIEF overnment and regulatory policies have the potential to support strong economic development or inhibit it, both at the federal and state levels. It is estimated that between now and 2025, the Palmetto State’s population will increase by more than one million. Current statistics show the state’s energy reserve margins shrinking each year. Congress must consider the impact of foreign competition on U.S. industries if the Environmental Protection Agency’s (EPA) regulations are too stringent, creating competitive disadvantages. The annual cost of federal regulations in the U.S. increased to more than $1.75 trillion in 2008. These regulations cost small businesses with fewer than 20 employees as much as $10,585 per employee. Since taking office, the Obama administration has had under consideration 230 economically significant regulations from 16 different federal agencies. In addition, the timely issuance of environmental permits is important for businesses looking to locate in South Carolina and those furthering their investment. It’s vital the General Assembly adequately fund the South Carolina Department of Environmental Control (SC DHEC) so there is enough qualified staff to make timely decisions on important permits. To ensure federal and state regulatory policies do not inhibit economic development, the Chamber supports ensuring South Carolina environmental standards are no more stringent than federal EPA guidelines and streamlining the environmental permitting process.

ADDRESSING HEALTH CARE COSTS ealth insurance costs now represent the second highest expenditure for businesses after wages, and as the burden continues to increase, some employers have been forced to stop offering health insurance to their employees. The cost of health care in the United States represents more than 17 percent of gross domestic product (GDP), and the costs are rising more than twice as fast as GDP. On an absolute basis, the U.S. now spends two and a half times as much per person as the average of the Organization for Economic Cooperation and Development (OECD) nations and 50 percent more than Norway, which has the second most expensive health care system. An estimated 720,000 South Carolinians are uninsured. Currently, 98 percent of medium and large employers provide health care for their employees. Only about 40 percent of small businesses are able to provide even some resemblance of coverage. Employers who provide health insurance for employees pay an additional 23 percent to cover South Carolina’s uninsured population. In addition, the increasing deficits

in South Carolina’s Medicaid budget could lead to further cost shifts to employers. In fact, conservative estimates show that for every $100 million lost in Medicaid funding, employers can expect an additional cost shift of ½ to 1 percent. Businesses will face changes over the next several years as different portions of the federal Patient Protection and Affordable Care Act of 2010 go into effect. Employers with more than 50 employees will be forced to offer coverage or pay a $2,000-per-employee fine. Businesses also will face a $3,000-per-employee fine if the coverage they offer is deemed “unaffordable” for employees. Something must be done to help businesses afford the increasing costs of health care coverage. The Chamber believes health care costs must be addressed to ensure affordable health care insurance is an option for all South Carolinians and supports legislation to ensure employers are able to provide sound and cost-effective health insurance for employees.

are the reduction in education funding, processing of permits and delays in infrastructure projects. Many businesses fear these strains will force the General Assembly to rely on businesses to pick up additional costs. Therefore, the Chamber is calling for a revived look at how revenue forecasting and budgeting is performed at the state level. To ensure more efficiency, accountability and fiscal responsibility in state government, the Chamber also supports creating a state spending cap with a budget stabilization fund to bring more predictability to state spending and amending state statutes to move away from a revenue estimating-based budget process to a prior-year’s budget as a basis for projections. In addition, the Chamber supports consolidating the administrative functions of the South Carolina Budget and Control Board into the Office of the Governor, appointing the offices of state Superintendent of Education, Secretary of State, Adjutant General and Commissioner of Agriculture and making these offices cabinet positions and jointly electing the Governor and Lieutenant Governor.

RESTRUCTURING GOVERNMENT outh Carolina has seen a nearly $3 billion drop in state revenues over the last four years. The state is also facing its third consecutive year of negative revenue growth, which has only occurred two other times since 1953. As the state recovers from the economic downturn, it is vital to adopt certain measures for the long-term sustainability of state services. Currently, mid-year cuts have placed strains on government services. These cuts negatively impact the business community. Some examples

Darrell Scott is vice president of public policy and communications for the South Carolina Chamber of Commerce.

scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

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TORTS TODAY:

FACT MORE

FANTASTIC THAN FICTION By I n g o A n g e rme i e r

n America, and particularly in South Carolina, the system of civil liability adjudication has become a major industry of its own. Direct tort costs alone (attorney fees, settlements, expenses and court costs) account for more than 2.2 percent of our gross domestic product (GDP), more than two and a half times more expensive than the average of other industrialized countries. These direct costs capture only a small portion of the total societal costs of the imbedded, fear factor costs in our runaway tort system. The hidden cost of tort liability adds 30 percent to the cost of step ladders, 90 percent to the cost of vaccinations and 95 percent to the cost of medical implantable devices. In the most complete study of defensive medicine costs by the Massachusetts Medical Society in 2009, it was conservatively estimated that more than 30 percent of the cost of delivering medical care in the United States is caused by physicians over-ordering tests and consultations to protect against lawsuits. This represents 6 percent of our GDP, nearly three times the direct costs of tort liability. Have you seen a diving board in a public pool or a merry-go-round in a public playground lately? Many useful products are no longer available in the United States because of liability concerns. The prospect of lawsuits drives the job descriptions of many risk managers and safety officers from truly meaningful work, costing private industry millions of man hours and productive opportunity costs. The amount we spend to support our liability system is more than what Americans spend on new automobiles every year. The direct and indirect costs we pay to support our out-of-control tort system are well into double digits of our GDP and add nothing to the value of goods and services. Even without knowing the magnitude of this “hidden tort tax” we all pay, the majority of Americans (75 percent to 85 percent) support massive tort reform. Sadly, even in the face of pervasive demands for reform, the system has become far too self-perpetuating to change. It took the exposure of massive political fraud at the state attorney general level in Texas for that state to finally undertake the significant reforms of the mid 1990s. Not surprisingly, the economic impact of tort reform in Texas saved consumers more than $2.5 billion, more than $1,000 dollars per family. Even in our

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current recession, more than one half of the new private sector jobs created in the United States from August 2009 to August 2010 (214,000 total vs. 119,000) were created in Texas. The enactment of significant tort reform is largely credited with this growth. Why is it so hard to fix this system of liability that traps us? Why would it be so hard to enact some version of “loser pays” after an expert panel review? The following separation of fiction from fact may be useful: FICTION: ANY SYSTEM OF LOSER PAYS IS BOTH UN-AMERICAN AND UNCONSTITUTIONAL. FACT: During the writing of the U.S. Constitution and the first 30 years of the country’s history, America operated under a loser pays system of attorney compensation. Any percentage fee arrangements were considered illegal under what was known as the Champerty Law. In the 1820s and beyond, judges began ignoring side-bar financial arrangements, which by custom and not legislation, became the norm. Incidentally, Alaska has historically had a loser pays system of attorney compensation from when it was purchased from Russia. Its direct liability costs are less than half that of the lower 49 states. FICTION: ALL ATTORNEYS WILL FIGHT LOSER PAYS AND TORT REFORM TO THE DEATH. FACT: Some attorneys will. While the United States has more attorneys than the rest of the world combined, most do not practice trial law. Corporate law, tax law, contract law and family law are far more common than the plaintiff’s bar. Take out those who defend rather than offend, and perhaps less than 10 percent of all practicing attorneys in the United States practice the kind of liability law that would be affected by tort reform. Indeed, most attorneys are for some form of tort reform and are embarrassed by the Yellow Pages and television advertising of their “ambulance-chasing” brethren. Sadly, campaign support disclosures reveal this small minority represents the third largest contributor to political campaigns.

FICTION: OUR LEGISLATIVE, JUDICIAL AND EXECUTIVE BRANCHES ARE SEPARATED TO MAINTAIN A BALANCE OF POWER. FACT: Many folks know the South Carolina governor has fewer executive powers than almost any other governor in the United States. It’s a hold-over from our desire to limit the powers of a “carpet bagger” governor appointed during Reconstruction. South Carolina and Virginia are the only two states where judges are appointed by a vote of the legislature. The ethical implications for such power by practicing plaintiff attorneys in the legislature are staggering. One Spartanburg senator openly bragged that it was now time for him to return to the practice of law because, “I appointed all of the judges and magistrates who will hear my cases.” Most states have adopted what’s known as “The Missouri Plan” of the 1940s, which is firmly based on judicial merit and periodic evaluation. FICTION: THE SETTLEMENT OF LIABILITY CASES IS NEEDED TO PROTECT THE CONSUMER. FACT: Liability settlements have done little to improve product and worker safety. The increased availability of consumer reports and federal safety regulations has clearly taken over this role. FICTION: THE DEMAND FOR EXPANDED TORTUOUS ACTION COMES FROM THE PUBLIC. FACT: A vast preponderance of client litigants are sought and found by attorneys, not the other way around. Targeted attorney solicitation is extremely telling. Within 24 hours of the US Airways Flight 1549 landing in the Hudson River, every passenger had been solicited by at least three legal firms.

against a small business dry cleaner who lost a pair of pants? The business owner won. The trial judge refused a loser pays motion for the $100,000 it cost to win the case. The business is now closed. The man who brought the suit is a judge by profession. FICTION: WORKERS’ COMPENSATION IS A FORM OF TORT REFORM. FACT: That was the intent when it was passed in 1962. It was supposed to pay an injured worker a fixed price for a known injury. No courts were to be involved. Slowly, the plaintiff attorneys got involved. Today in South Carolina, 22 percent of all workers’ compensation dollars from the fund is paid to plaintiff attorneys, the highest percentage in the U.S. Last year, Texas got half of the new private sector jobs in the U.S. because Texans had the courage to address tort reform. This year, let’s add South Carolina to that list. Undoing our expensive tort liability system will not be fast, nor will it be easy. We must contact our legislators and demand real and long lasting changes in tort incentives, judicial appointments, attorney disciplining systems, pre-trial authorization by expert panels and a whole host of other changes. The savings now and the economic development potential in the future are far too great to ignore. Let’s get the hidden costs of liability out of our institutions and into our pockets. Ingo Angermeier is the president and CEO of Spartanburg Regional Healthcare System.

FICTION: THE CURRENT LEGAL SYSTEM ALLOWS FOR JUDGES TO ASSIGN LOSER PAYS, SO A CHANGE OF LAW IS NOT NECESSARY. FACT: In less than 1 percent of requested cases, judges grant motions for the loser of a tort case to pay the costs of the opposing side. Remember the $54 million lawsuit

scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

South Carolina State Ports Authority

JIM NEWSOME

January~February 2011 Centerfold

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scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

By Matthew Gregory

PH OTOG RA PH BY PA T CRA WFORD

hen Jim Newsome took the helm of the South Carolina State Ports Authority (SCSPA) in September 2009, he knew there was much work to be done. At the time, cargo volume had fallen 40 percent from 2005 levels, and there was ongoing debate about the future of port. Less than 16 months later, the SCSPA can tout numerous accomplishments thanks to Newsome’s leadership. In addition to volume being up by 16 percent in the first five months of fiscal year 2011, Newsome has moved the port system forward with a variety of projects, including strengthening ties with shipping customers, expanding a container terminal at North Charleston’s former Navy base and building a $25 million dollar passenger cruise terminal on the north end of Union Pier. “We’re heading back in the right direction,” said Newsome. “The reality is we have a lot more to do. It can be described as a good start.”

Turning the tide

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Turning the tide JIM NEWSOME / South Carolina State Ports Authority

announced it would stay in Charleston, renewing its contract through 2014. Newsome’s shipping background has given him firsthand experience with the crucial role of developing and maintaining relationships with clients. In early December, Newsome was scrambling to meet his self-imposed goal of meeting with all overseas clients by the end of the year. “If you take a job like this and view it as an administrative job, then you’re lost, because this job is about doing whatever you can to leverage the position of this port to bring business here. That’s what will make or break us,” he said. Newsome said he is not in a complicated business. “It’s just the simple function that there’s 20 lines in the world that operate 90 percent of the world’s containership capacity. You have to go talk to each one of them, find out what services they can bring here and then make it attractive for them to bring it here,” he said. “To bring ships here, you have to have more cargo.” On the import side, he is determined to get more companies to locate distribution centers in South Carolina similar to the TBC Corporation, one of the largest marketers of automotive replacement tires, which announced plans to occupy a 1.1 million square foot distribution center in Berkeley County in October of 2009. On the export side, Newsome acknowledges that manufacturing facilities aren’t built overnight, so he’s working to bring more cargo to the port. One method of increasing cargo is raising weight permit limits on trucks, which the South Carolina Department of Transportation did in November. According to Newsome, this was a critical step for South Carolina, as it leveled the playing field with Georgia, which had its weight permit limit raised in 2002. Newsome said the other method of bringing more cargo is convincing distributors to send it through the port’s rail service provided by Norfolk Southern and CSX that allows transit to key cities in the South, Midwest and Mid-Atlantic. Under Newsome’s guidance, the SCSPA is also undertaking a critical expansion project at the Navy Base Terminal in Charleston. Charleston’s container terminal is the only permitted new facility in the Southeast and Gulf regions and will boost capacity at the port by 50 percent. Since receiving the final permit approvals in 2007, the SCSPA has completed preliminary demolition, site preparation and containment wall construction on the new 280-acre terminal. The $1.3-billion capital plan also will provide extensive improvements to existing terminals. The new terminal’s first phase

P H O T O G R A P H Y C O U R T E S Y O F S C S PA

he maritime world has been a part of Newsome’s life since childhood. Newsome grew up in Savannah, where his father worked as director of operations at the Georgia Ports Authority. As a child, Newsome and the family dog would go to work with his father every Saturday morning. “I’d grab a bicycle and ride around the place, just generally bugging everyone who was working that day,” said Newsome. Newsome’s father taught him the importance of having a strong work ethic. At the age of 15, Newsome got a part-time job stocking the frozen food section at the Winn-Dixie two blocks from his house. He also credits his father with teaching him the unique nature of the global logistics business. “He built the first container cranes in Savannah and grew up believing containerization was the future of the industry,” said Newsome. Deciding he wanted to follow in his father’s footsteps, Newsome attended the University of Tennessee, where he earned a bachelor’s degree in Transportation and Logistics in 1976 and a MBA in Transportation and Logistics in 1977. He began his shipping career with Strachan Shipping Company. He worked for Nedlloyd Lines from 1987 to 1997, serving as executive vice president of the Americas and president. In 1997, he joined Hapag-Lloyd, the world’s fifth-largest ocean shipping company, where he served as president and was responsible for all activities in North America and Latin America. When he accepted the job as president and CEO of the SCSPA, becoming only the fifth leader of the organization since it was founded in 1942, Newsome said he knew Charleston was a great port community with good facilities that had lost volume. “I thought I had some skills I could bring to the table. I had some contacts with shippers that could really turn this port around and bring it back to where it should be,” said Newsome. “I was a customer of the port in my shipping line time. I had customer relationships with Michelin, BMW, Springs Industries and companies like that.” Newsome made one of his first priorities keeping one of the world’s biggest shipping companies as a customer. Before his arrival, Maersk had announced it was leaving the port once its contract expired in 2010. Newsome quickly recognized the SCSPA’s contracts were not as competitive as some of its competitors’ contracts. Under Newsome’s guidance, contracts were improved, and in October 2009, Maersk

Under Newsome’s leadership, Maersk renewed its port contract through 2014.

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Shipping volume at state port facilities is up by 16 percent in the first five months of fiscal year 2011.

is projected to be complete by December of 2016. Looking ahead, Newsome said the SCSPA’s most important project is deepening the Charleston Harbor. With the Panama Canal expansion estimated to be completed in 2014, very large container ships will soon be able to pass through the Canal and move toward the East Coast. While Charleston is currently the deepest port in the Southeast at -45 feet mean low water (MLW), these larger ships will require a deeper channel. New York, Baltimore and Norfolk are already at -50 feet MLW. There is also a compelling national interest for harbor improvements, as the Obama administration has started an export initiative with the goal of doubling exports in five years. “We really need the federal government to uphold their responsibility to deepen our channels,” said Newsome. With all the success stories Newsome has helped write over the past year and a half, the progress has not gone unnoticed. In December, Newsome traveled to Newark, NJ to accept the Containerization & Intermodal Institute’s Connie Award, which recognizes individuals who have made extraordinary contributions to the evolution of containerized shipping and intermodalism. Newsome accepted the award in front of a crowd of 400, including SCSPA Board Chairman Bill Stern and Senator Larry Grooms, chairman of the state’s Port Oversight Commission. Newsome said he hopes the next decade sees South Carolina’s port system back in a preeminent position in the U.S. Port industry where it should be. He said he also hopes everyone who wants to work in the Charleston shipping market can find a good job. “There are a lot of people running around in the state talking about economic development. Economic development is like talking about democracy; it’s got different meanings for different people. For me, the first definition of economic development is jobs,” said Newsome. “There is a very underemployed, capable maritime com-

The new Navy Base Terminal’s first phase is projected to be complete by December 2016.

munity in this town that could do more. One of my primary responsibilities is making sure these companies can grow and people can work in this wonderful industry.” Matthew Gregory is the multimedia coordinator at the South Carolina Chamber of Commerce and the editor of South Carolina Business magazine.

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scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

>> FEATURE

Come to the table:

Forming economic development partnerships B y R e be cca Bat t le-Br yant

erious events, problems and sometimes even opportunities bring people together. Plant relocation announcements, into or out of a community, can galvanize organizations and people into action, such as implementing a job transition center to aid those displaced by a plant closure or creating a workforce training plan to prepare potential employees for new jobs. Sometimes the challenge is bigger than the resources of any one organization or community and begs the question of how to engage collaborations in the form of community-wide partnerships or teamwork within organizations. I had the privilege of exploring the process of developing and sustaining partnerships/ teams in a research study of six rural community partnerships and actually participated in a seventh partnership in Orangeburg County. The study was conducted through a private grant funded by The Duke Endowment to create economic development success for communities. Lessons learned from these partnerships provided insight into some fundamental truths regarding the components of collaboration needed in any community or organization. The phrase “come to the table” or “at the table” was used more than 225 times by 26 interviewees to describe the partnerships they created, maintained, and in some cases, sustained. Those phrases evoked images of a dining experience, which can vary depending on the setting and the diners. Business, industry and economic development professionals represented in the study asked what they could do to positively affect change through workforce development and wealth creation in their communities and organizations. The answer: Come to the table. Be willing to step up and participate on a team, whether internal or external to your organization. Communities need input and feedback from business and industry leaders, especially regarding education and workforce development. The people who come to the table are critical. The leaders/participants who are tapped must be willing to share resources with one another, have a sincere desire to help and enable others in their communities, observe basic meeting facilitation skills and possess communication skills that allow them to communicate at all levels of social strata. Additionally, all of the partnerships need that one person who is the “glue that binds” to keep the team organized, enthusiastic and accountable. One partnership in the study from northwestern North Carolina had a diverse group of business leaders, government officials, chambers of commerce and economic developers form a public/private partnership to promote industrial and workforce development in a three-county region. They not only worked together to recruit companies but to leverage resources by sharing workforce skills, training and educational institutions, suppliers, competitors and customers. They transformed a region once dominated by furniture manufacturers into a new advanced manufacturing cluster. They have continued to receive grants and financial support to build a stronger local economy and have improved their global competitiveness through economic change. The director of the industry cluster initiative stated, “How I initially started the cluster and getting that relationship started…was I put them in a room and closed the door. It took me about eight months to get three county governments…just comfortable enough to be in the same room.”

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A central North Carolina partnership had business, industry, chambers of commerce and economic development leaders refocus their strategic vision and revitalize their region, which they felt was headed into a decline. They addressed job-related adult education, the K-12 education system and the lack of leaders from under-represented citizens by further developing their small business center, providing training to develop the skills of the local workforce and implementing WorkKeys as a means for recruiting and upgrading workforce skills for existing and new industries. Their efforts resulted in additional grant funding and a committed group of leaders who still work together to create positive economic changes. The president of the local economic development commission said, “The thing that I would consider a really positive outcome of this was that some [relationships] strengthened, or new partnerships were formed institutionally.” Another partnership, formed in Orangeburg and Dorchester counties, also experienced success collaborating. The team, consisting of church members, technical colleges, adult education, local agencies, and business and industry leaders, helped find employment for almost 70 percent of approximately 400 trained graduates in pre-employment manufacturing, health care and truck driving. The partnership has continued to exist for more than seven years and has developed a local leadership program to discover and maximize leadership capacity within the community. Senator John W. Matthews (Orangeburg) was instrumental in spearheading that grassroots effort. “We’ve got to get out there and save ourselves. And really, when you can convince a group of people to do something to bring about change in their community, they are committed to it,” said Matthews. One team leader asked, “Was our success serendipitous?” There is much more to partnerships than serendipity, but those interested in getting people to the table need to be aware each partnership is different and must be evaluated within the unique contexts, people and resources of local communities or business organizations. Just like any culinary experience, the fundamentals – table, place settings, diners – are the same. What creates the difference between different dining experiences is how those components are used. The same analogy applies to partnerships. The components are universal, but it is up to each team to determine how to use them within the context of their community or organizations. There are many applications, a “menu” of partnership basics, that exist from this study to aid local economic developers, businesses and industries, and grant funders in understanding the innerworkings of effective collaborations for the purpose of creating jobs and a stronger workforce in South Carolina. Come to the table. Be engaged, be active and participate. For more information regarding this study or a copy of the Economic Development Partnership Menu, please contact: Rebecca Battle-Bryant, Ph.D., Associate VP, Career Training & Development Orangeburg-Calhoun Technical College (803) 535-1231, battle-bryantr@octech.edu

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| SOUTH CAROLINA BUSINESS | January/February 2011

>> MEMBER SPOTLIGHT

FN MANUFACTURING:

A COMPANY ON TARGET By J ulie Scot t

ust off Interstate 20 in Northeast Columbia sits FN Manufacturing, a Midlands precision machining manufacturer responsible for making weapons used by the military and law enforcement. FN Manufacturing is one of just three manufacturers designated by the United States government as the domestic industry base for small arms production. In fact, 90 percent of the company’s business is making small arms for the U.S. Armed Forces; a responsibility the company’s 580 employees do not take lightly. “We have a workforce here prouder of what they do than any other workforce I’ve ever run across. These folks take what we do really seriously,” said Eric Brisbon, vice president of operations at FN Manufacturing. “They know that if you put a weapon in a soldier’s hand that doesn’t go ‘bang’ when you pull the trigger, you’ve just put a life at stake, and nobody here forgets that.” With tolerances that can be plus or minus one-tenth the width of a human hair, precision is key. Weapons exiting FN Manufacturing, often traveling straight to a soldier’s hands, are put through rigorous rounds of testing. This commitment to excellence and precision is the reason the company has been in business since 1888, when the Belgian Army asked three gunsmiths in Herstal, Belgium to make 150,000 guns. Its early success enabled the company to enter into a long-lasting relationship with John Moses Browning, a well-known firearms designer. Today, FN Manufacturing’s Columbia facility specializes in machine guns and M-16s. The company also has a commercial group, which makes rifles and a series of handguns. Its parent company, FN Herstal, owns FN Manufacturing, Browning Firearms and the licensing for Winchester Rifles and Shotguns. In the 1980s, the company broke ground in the Palmetto State, attracted by the low union environment, the area’s work ethic, its proximity to higher education and its closeness to Interstates. Brisbon said one of the biggest attributes South Carolina brings to the manufacturing community is its right-to-work status. In fact, Ralph Young, vice president of human resources at FN, said there is really no legitimate reason for a union in a well-run company today.

“Unions tend to want to have as many members as possible, so they can collect as many dues as possible,” said Young. “One of the first things they do is try to come up with reasons you need a union, meaning to try to drive a wedge between management and the workforce. Our relationships here are fine with our workforce, but we don’t make promises that we don’t keep.” It is this pledge to employees that attracts technicians and machinists to FN Manufacturing’s Columbia facility, creating a long waiting list of qualified applicants. “Our reputation in the community is such that if you have good machinist skills, FN tends to be high on your list. I’ve been told on more than one occasion of people attempting to get a position here for five, six or seven years,” said Brisbon. FN also gives back to the Midlands and Carl Smith, heat treat operator level II, plays a crucial role all of South Carolina. The company holds in the manufacturing process. tours and days solely for veterans. They also are active in education and workforce development, holding a seat on the South Carolina Chamber of Commerce’s Excellence in Education Council and working alongside the University of South Carolina’s engineering programs. “One thing I’ve found about South Carolina’s workforce is their open minds. They are very willing and able to work within guidelines. Culturally, there is some truth to southern hospitality,” said Brisbon. “You end up with an extraordinary and dedicated workforce.” Julie Scott is public relations manager at the South Carolina Chamber of Commerce. David Fambro, assembler level II, shows one of FN Manufacturing’s finished products.

s c c h a m b e r. n e t | J a n u a r y / F e b r u a r y 2 0 1 1 | S O U T H C A R O L I N A B U S I N E S S |

H E A LT H

CARE

CHECKUP

Health care provisions that will impact business 2011

B y R o bby Ker r

t seems the debate over the Patient Protection and Affordable Care Act (PPACA) may never end. With the recent electoral changes, adjustments to the law are likely, but both sides generally agree that repealing the entire legislation is unlikely. Despite resurgence in the debate, implementation of major provisions of the Act is underway, and many more are scheduled to come online over the next seven years. According to a recent Colonial Life survey of human resources representatives, half of employers surveyed were unsure about the impact of the PPACA on employers. Here is a list of important changes already in effect and others that will impact businesses in the years to come.

2010 • Tax credits up to 35 percent for small employers (less than 25 employees) that provide health coverage. • Dependent coverage for adult children to age 26. • Temporary retiree health benefit subsidy. • Temporary high-risk pool for uninsured individuals with pre-existing conditions. • Lifetime and annual benefit limits. • Preventive services without cost sharing.

• Rebates to consumers if medical loss ratios fall below 85 percent for large groups and 80 percent for small groups. • Payroll deduction for new long-term care insurance program. • Grants to small employers that establish wellness programs. • Penalty increased to 20 percent for non-qualified distributions from health savings accounts.

2012 • Self-funded plans must provide uniform coverage explanations to employees. • Self-funded plans must pay annual per-participant fee.

2013 • Threshold for deducting unreimbursed medical expenses increases to 10 percent of adjusted gross income. • Limit on flexible spending account contributions. • Employer deduction for Medicare Part D subsidy eliminated.

2014 • • • • •

•

Medicaid coverage increased to 133 percent of the Federal Poverty Level (FPL). Health Benefit Exchanges for individuals and small businesses to purchase coverage. Premium subsidies to families with incomes between 133 percent and 400 percent of the FPL. Plans must guarantee coverage regardless of health status. Employers with 50 or more employees that do not offer coverage and have at least one FTE receiving a premium subsidy will be assessed a penalty of $2,000 per employee. Wellness program employee rebate limit increased.

2018 • Excise tax on ”Cadillac” plans.

The law doesn’t fix the ever-increasing cost of health care due to chronic health problems. The United States spends as much as twice that of other countries on health care, and life expectancy is, at best, only marginally better. We must prepare for the impact of the PPACA, but perhaps more importantly, we must address the real problem, which is our unsustainable spending to support poor lifestyle choices. Robby Kerr is the president and founder of Kerr & Company, a private consulting firm. He has worked in state government for more than 20 years and is a former director of the South Carolina Department of Health and Human Services.

| SOUTH CAROLINA BUSINESS | January/February 2011

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s c c h a m b e r. n e t | J a n u a r y / F e b r u a r y 2 0 1 1 | S O U T H C A R O L I N A B U S I N E S S |

>> BUSINESS BRIEFS

Governor Haley appoints Bobby Hitt to lead Commerce Department

overnor Nikki Haley has announced the appointment of Robert (Bobby) M. Hitt to be the next Secretary of the South Carolina Department of Commerce. Hitt, who lives in Simpsonville, has managed corporate affairs at BMW Manufacturing Company since 1993. “During the course of the campaign, we said that jobs and the economy are top priorities and that we need a Commerce Secretary who knows that ‘can’t’ is not an option,” said Governor Haley. “No one has more economic development experience over the last two decades than Bobby Hitt. A businessman who has been at the negotiating table with commerce officials and business leaders many times, Bobby Hitt’s involvement in every aspect of economic development in our state means he’ll have no learning curve. He’ll hit the ground running in January.” A native of Charleston and a University of South Carolina graduate, Hitt also has served as chairman of the southeast region for the vice National Association of Manufacturers and on the executive committees of AdvanceSC and the Upstate Alliance.

South Carolina State Ports Authority moves forward on truck replacement program

ontinuing its efforts to reduce portrelated air emissions, the South Carolina State Ports Authority (SCSPA) has completed the first truck survey in the Southeast and is collaborating on a regional program aimed at helping truck owners replace the oldest trucks. The truck survey, which was compiled by Wilbur Smith Associates, represents the first comprehensive look at trucks serving a major port in the region. The survey examined fleet age and trip frequency for trucks working in the Port of Charleston, with emphasis on quantifying the population of the oldest trucks – those with engine model years 1993 and older. The survey revealed that a relatively small number of trucks – the true local drayage fleet – do most of the work in the port. Of the nearly 13,000 individual trucks that visited the port’s terminals during a 12-month period, 20 percent of the trucks moved about 90 percent of the cargo. Of the trucks that visited the port at least 52 times a year, about 10 percent (or 262 trucks) were pre-1994

model year trucks. To reduce emissions and assist truck drivers in replacing their pre-1994 trucks with newer, more efficient rigs, the SCSPA is collaborating with the Coalition for Responsible Transportation (CRT) and the Environmental Defense Fund (EDF) on a program that would cover ports across the region. “Both the Coalition for Responsible Transportation and the Environmental Defense Fund have had great success working with ports on truck programs that make economic and environmental sense for our industry,” said Jim Newsome, president and CEO of the SCSPA. “We’ve been pleased to collaborate with them, and we look forward to formulating a voluntary, regional approach.” The multi-dimensional program, which could be implemented as soon as next year through a mix of public and private funding, could involve a “scrapping” incentive for truck owners to replace their pre-1994 trucks, low-interest loans or leases on new trucks and retrofits to further reduce emissions from diesel engines. The truck program will continue the SCSPA’s successful collaboration with the local transportation industry on environmental projects. In two Diesel Emissions Reduction Act (DERA) grant rounds, the SCSPA developed more than $5.2 million in programs to cut emissions and fuel consumption. These projects installed cleaner, more fuel-efficient engines in port equipment (such as cranes and harbor craft) and helped trucking companies and owner-operators upgrade more than 110 trucks, improving fuel utilization while reducing air emissions.

Sonoco appoints Sanders to president and chief operating officer

onoco, one of the largest diversified global packaging companies, has named M. Jack Sanders president and chief operating officer. Sanders will report to Harris E. DeLoach Jr., chairman and chief executive officer. “We are very pleased to have Jack become president and chief operating officer of Sonoco. Over his 23-year career with the company, Jack has demonstrated exceptional operations leadership while running all of our Global Consumer and Industrial businesses,” said DeLoach, who has been president of Sonoco since 2000. In this new leadership role, Sanders will have global operating responsibility for Sonoco’s

| SOUTH CAROLINA BUSINESS | January/February 2011

businesses serving consumer markets, including Global Rigid Paper and Closures, Global Rigid Plastics, Global Flexible Packaging and Global Services. He also will have responsibility for the company’s businesses serving industrial markets, including the company’s vertically integrated global industrial converting and paperboard operations. Combined, these businesses operate more than 300 plants in 35 countries.

National Association of Manufacturers names Timmons president and CEO

he National Association of Manufacturers (NAM) has named Jay Timmons president and CEO. Timmons has served as executive vice president at the NAM and succeeds former Michigan Governor John Engler in this position. Timmons has extensive experience in government relations, public affairs, political campaigns and business. He is a proven leader at the NAM, working alongside the nation’s leading manufacturers, members of Congress and the administration to advance a promanufacturing agenda. In his former position as executive vice president at the NAM, Timmons oversaw all policy development, communications, government relations and advocacy efforts. Timmons is a native of Chillicothe, Ohio, a manufacturing community that instilled in him the value of manufacturing and its positive impact on people, families and communities. “My grandfather was a manufacturing worker, and I benefitted from learning firsthand the commitment and pride manufacturers have for their products, jobs and community,” said Timmons. “I am humbled and honored to now lead an organization that advocates and fights for an environment and platform in which American manufacturers can create, innovate and employ millions of Americans.” Timmons’ experience includes service as a chief of staff in the U.S. House and Senate as well as the Virginia Governor’s office. He is also a member of the Business Industry Political Action Committee (BIPAC) Executive Committee.

>> AFTER THE EVENT

S.C. Chamber holds inaugural Manufacturers Conference

anufacturers from across South Carolina gathered on Hilton Head Island December 5-7 for the South Carolina Chamber of Commerceâ&#x20AC;&#x2122;s Manufacturers Conference: Manufacture America, held with the participation of the International Trade Administration of the U.S. Department of Commerce. Presented by McNair Law Firm P.A., the inaugural Manufacturers Conference provided attendees with valuable networking opportunities and up-to-date information from a variety of expert speakers. Conference topics covered such areas as workforce training, encouraging careers in manufacturing, exporting, state and federal legislative outreach and accessing capital credit. Featured speakers included Rick Wade, deputy chief of staff, U.S. Department of Commerce, Nicole Y. Lamb-Hale, assistant secretary of commerce, U.S. Department of Commerce, and Peter Perez, deputy assistant secretary for manufacturing, U.S. Department of Commerce. Plans are already underway for the 2011 Manufacturers Conference. Details will be announced soon. For more information, contact Tish Anderson, associate vice president of events and seminars, at (803) 255-2627.

Josef Kerscher, president of BMW Manufacturing Co. LLC and chairman of the S.C. Chamber Manufacturersâ&#x20AC;&#x2122; Steering Committee, welcomes attendees to the conference.

PRESENTING SPONSOR MCNAIR LAW FIRM, P.A. DINNER SPONSORS Akebono Brake Corporation Dixon Hughes PLLC MAU Workforce Solutions LUNCH SPONSOR BMW Manufacturing Co. WELCOME RECEPTION SPONSORS Elliott Davis LLC SCS Engineers South Carolina Manufacturing Extension Partnership The Capital Corporation

Attendees prepare for a day of informative speakers.

CONFERENCE BAG SPONSOR Azalea Capital, LLC NAME BADGE LANYARD SPONSOR AT&T BREAK SPONSORS Anderson Insurance Associates/ Chubb Group of Insurance Companies AQA International Hitachi Electronic Devices USA Inc. MWV Specialty Chemicals Nelson Mullins Riley & Scarborough LLP

Josef Kerscher and Jim Reynolds, president of Total Comfort Solutions LLC and chair-elect of the S.C. Chamber, mingle with attendees during a break. (Right) Nicole Y. Lamb-Hale, assistant secretary of commerce, U.S. Department of Commerce, discusses the national export initiative.

scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

AFTER THE EVENT 28

>> AFTER THE EVENT

31 ST A NNUAL S UMMIT

Annual Summit celebrates the Hidden Treasures of South Carolina

he South Carolina Chamber of Commerce’s 31st Annual Summit, Hidden Treasures of South Carolina, focused on several important issues in South Carolina – jobs, the economy, education, health care and economic development. More than 250 of the state’s top business leaders gathered in the Lowcountry November 10-12 to discuss issues and solutions. The Annual Summit was presented by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. The Summit began with a compelling symposium featuring discussions on health care, the new unemployment structure and the state’s budget crisis. Thornton Kirby and Richard Foster, MD with the South Carolina Hospital Association discussed health care in South Carolina and how hospitals and the business community can collaborate to lower costs and achieve results. Brigadier General John Finan, the leader of the South Carolina Department of Employment and Workforce, provided an interesting overview of the new unemployment structure and an in-depth look at the amount of federal unemployment taxes companies will pay under the new system. Mike Shealy with the South Carolina Senate Finance Committee addressed the state’s budget crisis, providing charts and graphs of expenditures and revenue. A noon luncheon was held to announce South Carolina’s 25 Fastest-Growing Companies, presented by The Capital Corporation. These innovative companies have excelled and found a way to prosper during a tough economy. The top three fastest-growing companies in employment and revenue were: Wild Creations (#1), Pegasus Steel LLC (# 2) and Barling Bay LLC (#3). The luncheon featured the Sgt. William Jasper Freedom Award winner, Major Geoff Penland, manager of state governmental relations at Santee Cooper. Major Penland was honored for his heroic service as a Judge Advocate with the South Carolina Army National Guard. In addition, two scholarships were awarded to bright students who attended last year’s prestigious South Carolina Business Week. Ray Conner, vice president and general manager of Supply Chain Management and Operations for Boeing Commercial Airplanes, spoke to the state’s business community during the Annual Summit Banquet on November 11. Conner was involved in the decision to make North Charleston the home to the new 787 final assembly and delivery site and is the senior Boeing leader responsible for Boeing South Carolina. The South Carolina Chamber’s Annual Summit Banquet also honored South Carolina’s Business Leader of the Year, Jim Reynolds, CEO of Total Comfort Solutions, and South Carolina’s Public Servant of the Year, Senator Greg Ryberg. Next year’s Annual Summit dates and location will be announced soon. For more information or to sponsor, please contact Tish Anderson, associate vice president of events and seminars, at (803) 255-2627.

PRESENTING SPONSOR Ogletree, Deakins, Nash, Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices)

PLATINUM SPONSORS

Ray Conner with Boeing provides the Annual Summit keynote.

Bank of America BlueCross BlueShield of South Carolina The Capital Corporation GOLD SPONSORS Agape Senior, Inc. ALCOA, Inc. Haynsworth Sinkler Boyd P.A. Milliken & Company Pegasus Steel Santee Cooper SCANA Sonoco Products Company

SILVER SPONSORS Duke Energy Carolinas McNair Law Firm, P.A. Michelin North America MWV MeadWestvaco Nexsen Pruet, LLC Progress Energy South Carolina Hospital Association HOSPITALITY SUITE SPONSOR FN Manufacturing, LLC RECEPTION SPONSORS Delta Dental UPS S.C. Chamber Board Member Charles Dalton (right) talks with Summit attendees.

Kesha Rainey receives the S. Hunter Howard Jr. Scholarship.

| SOUTH CAROLINA BUSINESS | January/February 2011

BRONZE SPONSORS AFL Telecommunications AT&T Coleman Lew & Associates, Inc. Colonial Life Eastman Chemical Company FUJIFILM Manufacturing U.S.A., Inc. The Jackson Companies Palmetto Health Roche Carolina, Inc. Savannah River Nuclear Solutions Southeastern Products Inc. TeamIA, Inc. Total Comfort Solutions Wachovia, A Wells Fargo Company Wentworth Printing

>> AFTER THE EVENT

More Summit Photos

South Carolina’s Best Excellence in Places to Work Workplace Diversity Awards he South Carolina Chamber of Commerce,

the Society for Human Resource Management (SHRM) – SC State Council and the publishers of SCBIZ magazine are pleased to announce rankings of the Best Places to Work in South Carolina. Presented by Colonial Life, the Best Places to Work program recognizes South Carolina’s most innovative and top-notch employers. The 2010 rankings were announced at an awards banquet on October 5.

SMALL/MEDIUM COMPANIES Wild Creations receives an award for being the 2010 Fastest-Growing Company in S.C.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

2010 Silver Crescent Manufacturer of the Year Awards

he distinguished Salute to Manufacturing was September 22 at the Radisson Hotel and Conference Center in Columbia. Manufacturer of the Year selections were based upon quality improvement efforts, quality of life programs, improvements in the environment, involvement in local community and economic development, education and workforce development, and overall effectiveness. Prior to the luncheon, an educational workshop was presented on manufacturing’s support of education and future workforce development.

he South Carolina Chamber of Commerce’s Diversity Council recognized the state’s top companies (large, medium and small) in the field of diversity October 19 at the 6th Annual Excellence in Workplace Diversity Awards, presented by Fisher & Phillips LLP, in Columbia. 2010 Excellence in Workplace Diversity Award winners:

(15 - 249 employees) RANK

Dick Wilkerson, chairman and president of Michelin North America, presents the Sgt. Jasper Award to Major Geoff Penland.

COMPANY

Barling Bay LLC SynTerra Corporation ArborOne, ACA Johnson & Johnson Life Cycle Engineering VC3 Inc. Hilliard Lyons First Community Bank First Reliance Bank McAngus, Goudelock & Courie LLC C. F. Evans & Company Inc. Palmetto Citizens Federal Credit Union Pee Dee Electric Cooperative Inc. Mars Petcare South Carolina Education Lottery Human Technologies Inc. Buist Moore Smythe McGee P.A. Rosenfeld Einstein

LARGE COMPANIES (250 or more employees) RANK

1 2 3 4 5 6 7

LARGE EMPLOYER CATEGORY: ANMED HEALTH

MEDIUM EMPLOYER CATEGORY: FIRST CITIZENS

COMPANY LISTING

Edward Jones Colonial Life Elliott Davis Palmetto Health Select Health of South Carolina Inc. AgFirst Farm Credit Bank Blackbaud Inc.

SMALL EMPLOYER CATEGORY: SOUTH CAROLINA FEDERAL CREDIT UNION

The Small Manufacturer of the Year (199 or fewer employees) is Caterpillar, Precision Pin Products Group, located in Sumter. The Medium Manufacturer of the Year (200499 employees) is Bosch Rexroth Corporation, located in Fountain Inn.

SynTerra Corporation

The Large Manufacturer of the Year (500 or more employees) is Force Protection Inc., located in Ladson. McAngus, Goudelock & Courie LLC

scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

MEMBER NEWS

>> MEMBER NEWS Compiled by Matthew Gregory (Send publicity photos to: matthew.gregory@scchamber.net.)

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BMW Manufacturing to M f t i Co. C is i implementing i l ti a new alternative lt ti fuel f l platform l tf t use hydrogen fuel cells to power the plant’s material handling equipment. Hydrogen fuel cell-powered forklifts, tuggers and stackers will be used in BMW’s new assembly hall that produces the new BMW X3 Sports Activity Vehicle®.

Executives from Monsanto Fund presented a $10,000 grant to EdVenture to support expansion of EdVenture’s Future Leaders Career Academy. The Academy is an after school program for at-risk middle school youth that provides leadership training, career exploration and workforce development in the STEM (science, technology, engineering and mathematics) fields. Monsanto Company representative Dawn Frasier (center right) presents a check to Catherine Horne on a visit to Pine Ridge Middle School.

Cheryl R. Holland, president of Abacus Planning Group, was recently recognized by Clemson University with an honorary alumni designation for her devotion and commitment to the institution. Holland has served as a member of the board of the Clemson College of Business and Behavior Science (CBBS) since 2004, and her company, Abacus Planning Group, has funded a scholarship for CBBS students for the past eight years. AgFirst Farm Credit Bank has named AnnLamar Tuten director of customer support. Tuten’s appointment was announced by Robert Zeman, AgFirst’s director of IT operations and infrastructure. Alcoa Mt. Holly has announced that Mike Rousseau, plant manager of Alcoa Intalco Works in Ferndale, WA, has joined the Alcoa Mt. Holly plant as plant manager. Rousseau succeeds Mark Dunlay, who has been appointed operations readiness director for the Ma’aden project in Saudi Arabia. The Beach Company has joined the franchise network of Better Homes and Gardens Real Estate.

The Beach Company’s residential division will now operate as Better Homes and Gardens Real Estate The Beach Company under Ben Schuyler, broker in charge and director of residential brokerage. The attorneys of Buist Moore Smythe McGee P.A. are pleased to announce that Best Lawyers®, the well-known peer-review publication for the legal profession, has named Charles P. Summerall IV (Bankruptcy and Creditor-Debtor Rights), C. Allen Gibson Jr. (Construction), Susan M. Smythe (Real Estate), Henry E. Grimball (Insurance) and Gordon D. Schreck (Admiralty and Maritime) as “Charleston, SC Best Lawyers® Lawyer of the Year” for 2011. Josh Gregory has been promoted to senior sales representative at The Cason Group. Gregory, a University of South Carolina graduate, has been with The Cason Group since 2003. He works with health insurance agents in the Midlands of South Carolina to obtain quotes, negotiates with carriers and assists agents in selling and enrolling new groups. Missy Ryan, senior director of development for

| SOUTH CAROLINA BUSINESS | January/February 2011

W at er s

W h it ley

the College of Business and Behavioral Science at Clemson University, has received the Outstanding Fundraising Executive Award from the Association of Fundraising Professionals. Dennis Corporation was recently honored at the 11th annual Zweig Letter 2010 Hot Firm Conference as the 51st most successful architecture/engineering/environmental consulting firm in the U.S. and Canada. During the awards ceremony, Dennis Corporation was also recognized for its charitable contributions to the industry and its community as the recipient of the 2010 Hot Firms Give Back A/E Philanthropy Award. Ellis Lawhorne’s Jessie King, an environmental law attorney, has been named to the South Carolina Chamber of Commerce’s Environmental Technical Committee. The committee is tasked with advising South Carolina Chamber members on environmental laws and regulations that impact the business community. Ellis Lawhorne’s John T. Lay Jr. has been awarded the Fred H. Sievert Award. Presented by DRI, an international organization of defense attorneys, the Fred H. Sievert Award is a national honor given annually to one individual who has made significant contributions to achieving the goals and objectives of the defense bar.

Elliott Davis LLC is proud to be named among the “Best Places to Work in South Carolina” for the fourth consecutive year. The firm ranked third in the large company category (250 employees or more) and was recognized at the 5th annual awards banquet held at the Marriott in Columbia, S.C. Elliott Davis has ranked among the top five large companies since it began participating in the program in 2007. Erwin-Penland (EP) has promoted Sarah Walker to senior ad processing coordinator and Natalie Kerechanin to senior graphic designer. EP also promoted Bo Leslie to senior graphic designer, promoted Marc Del Vecchio to senior art director, hired Kaitlyn Yopp as a junior media buyer and hired Katie Dipietro as a billing coordinator. For the second consecutive year, Furman University has moved up in the rankings of Kiplinger’s “100 Best Values in Private Liberal Arts Colleges.” Furman was No. 38 in the latest edition of the rankings, which appear in the December 2010 issue of Kiplinger’s Personal Finance magazine. The law firm of Gallivan, White & Boyd P.A. has announced that Deborah Casey Brown has been selected for inclusion in Super Lawyers, Corporate Counsel Edition in the practice area of Workers’ Compensation. Nicholas A. Farr has joined the firm as an associate. Craig Dukes, senior scientist at GEL Engineering LLC, was recently elected as vice president of the South Carolina Association of Environmental Professionals (SCAEP). Formerly with the South

>> MEMBER NEWS Carolina Department of Health and Environmental Control (SCDHEC), Dukes has over 25 years of environmental technical and management expertise. He currently focuses on GEL’s Brownfield services to maximize property redevelopment opportunities for the public and private sectors. The Greenville County Bar presented the coveted Tommy Thomason Award to Anne Southerland Ellefson, managing director, Haynsworth Sinker Boyd, P.A., on October 26, at the award luncheon held at the Poinsett Club in Greenville. This award was established in 1993 to honor a Greenville lawyer who best exemplifies the outstanding qualities of the late “Tommy” Thomason. Joshua S. (Josh) Whitley has joined Haynsworth Sinkler Boyd’s Charleston, S.C. office as an associate attorney, following a judicial clerkship with The Honorable Dennis W. Shedd of the United States Circuit Court of Appeals for the Fourth Circuit. Eric Alder and Mike Williams, superintendents with Hood Construction, recently attained the professional designation, Construction Supervisor, through the Project SuperVISION program, hosted by the Carolinas Associated General Contractors. Milliken & Company has been recognized for a second time as one America’s Safest Companies by EHS Today magazine. Milliken was first recognized in 2004 and is the first company in America to be a repeat winner of this distinction. Winners of the award cannot be recognized again for five years. Only 12 companies were recognized in 2010. Mitsubishi Polyester Film Inc. has developed a technical breakthrough to establish a post-industrial closed loop process for the sustainable recovery of waste polyester liner film. Mitsubishi Polyester Film will be hiring 10 to 15 new workers along with the multimillion dollar planned capital investment to implement the Reprocess™ Sustainable Liner Program. This is in addition to almost $10 million in upgrades already planned at the facility. The Myrtle Beach Area CVB was named the 2010 CVB of the Year by the Southeast Tourism Society at the 2010 Annual Meeting on Oct. 7 at the Sheraton Myrtle Beach Convention Center Hotel. NAI Avant is pleased to announce the addition of David J. Ingle as a senior broker in its Charleston office. Ingle will continue to focus on forestry and conservation land holdings as well as Charleston area commercial real estate. The Nature Conservancy (TNC) has purchased almost 100 acres adjacent to the existing 461-acre Peachtree Rock Heritage Preserve in Lexington County. The Preserve is owned by TNC (306 acres) and the state Department of Natural Resources (155 acres) and is managed by both organizations. The new addition features a high bluff and mature longleaf pine community, which provides nesting habitat for many species. The Conservancy has been restoring more longleaf habitat on the Preserve by removing slash pine, planting longleaf seedlings and implementing prescribed fire to encourage the growth of those seedlings and native understory species. Lahive & Cockfield, a top-ranked Boston intellectual property law firm, is combining with Nelson Mullins Riley & Scarborough, a large East Coast law firm known nationally for its technology and science-related litigation. The move expands services for clients of both firms, increases the combined intellectual property team to more than 70 attor-

WELCOME, NEW MEMBERS The Alliance Columbia

Hartness International Greenville

Richland County Public Library Columbia

A.T. LOCKE PC Greenville

I.T.I. Hydraulik Andrews

Rieter Corporation Aiken

APDT (Association of Pet Dog Trainers) Greenville

Jostens Laurens

S. C. Governor’s School for Science & Mathematics Hartsville

Just Aircraft LLC Walhalla

ARCpoint Columbia

Kerr and Company Columbia

Artisan EHS Strategies Inc. Anderson

Lindau Chemicals Inc. Columbia

Bojangles Restaurants Inc. Charlotte

Lindbergh & Associates LLC North Charleston

Carolina Surveying Services Lexington

Mar-Mac Wire McBee

Casual Cushion Corporation Rock Hill

Mar Vista Grande-Ocean Resorts NMB North Myrtle Beach

Catastrophe Services Inc. (CSI) Columbia Cisco Systems Inc. North Charleston

Medical Application Repair & Sales Lexington

Conbraco Industries Inc. Pageland

Midlands Printing Inc. Camden

Concepts & Solutions LLC Charleston

MKA Mechanical Inc. Hartsville

Concessions Carolina West Columbia

Myrtle Beach Marriott Resort & Spa at Grande Dunes Myrtle Beach

Data Network Solutions Chapin

Screwmatics Of SC Inc. Pageland ServPro of Eastern South Carolina West Columbia SET Solutions LLC Lexington Shipyard Creek Associates LLC North Charleston SimplexGrinnell Fire Protection, Sprinklers, Security West Columbia Smurfit-Stone Container Corporation Florence South Carolina Industry Liaison Group Simpsonville Strategic Development Group Inc. Columbia TBC Brands Memphis Terressentia LLC North Charleston

Desserts & More Columbia

Newberry Firehouse Conference Center Newberry

Diversified Medical Services LLC West Columbia

Nutramax Laboratories Inc. Edgewood

Duplicating Products Inc. West Columbia

One Call Medical Inc. Parsippany

U.S. Bank Corporate Trust Services Columbia

DuPont Company Moncks Corner

Pace Analytical Services Inc. Huntersville

Vesuvius USA Dillon

First Carolina Risk Management Advisors North Charleston

Pacolet Milliken Enterprises Inc. Spartanburg

Willis Consulting Company Florence

Palmetto Apparel & Embroidery Columbia

Woodard Insurance Agency Florence

First Reliance Bank Charleston The George Agency (Creating Insurance Solutions) Mullins Greater Greenville Association of Realtors Greenville GT Industrial LLC Co. Ladson

Toll Solutions LLC Rock Hill

Phoenix Care Systems Inc. Milwaukee Pioneer Metal Finishing Corporation Gaffney RBC Bank Columbia ResMed Corp Duncan

Hansen International Inc. Lexington scchamber.net | January/February 2011 | SOUTH CAROLINA BUSINESS |

>> MEMBER NEWS neys and technical specialists, and will double the size of the Nelson Mullins Boston office. In other firm news, Derek A. Shoemake has joined Nelson Mullins as an associate in its Columbia office, and Thomas A. Simpson has joined the firm as an associate in its Greenville office. Nexsen Pruet attorney Ed Menzie has been named “Columbia, SC Mergers & Acquisitions Lawyer of the Year” for 2011 by Best Lawyers®. Jimmy Byars has joined Nexsen Pruet as an associate. He will practice with the Employment and Labor Law Group in Columbia. Palmetto Health Foundation has promoted Anna Saunders to director of community relations and development, Cancer Centers, and Andrew Cain has been named director of development. Jamie Stancil has been named event coordinator, Cancer Centers. Palmetto Health Foundation has announced three Palmetto Health Foundation Fellows were inducted at a recent Board Chairman’s reception: Harold Bessent, Bill McDaniels and Ray Tanner. Jay Bikofsky, managing principal, J.E.B. Consulting, has been re-elected chair of the boards of Palmetto Hospital Trust (PHT), PHT Services Ltd. (PHTS) and Palmetto Healthcare Liability Insurance Program (PHLIP) for 2011. Thomas W. Diller, MD, MMM, CPE, vice president of clinical effectiveness and quality, Greenville Hospital System, has been elected to a one-year term on the PHTS, PHT and PHLIP boards. M. Melissa Genova, MHRD, has been named recipient of the 2010 PHTS Gold Award. Engineering executive Harold Kaefer has been named Rhythmlink’s new director of engineering. With more than 20 years of experience within the medical device, diagnostic and laser industries, Kaefer will provide project and engineering management to Rhythmlink’s growing engineering department. Santee Cooper Board of Directors approved the promotion of Richard Kizer to vice president of government and community relations. Kizer previously served as director of government and community relations. SC Economics (formerly the SC Council on Economic Education) was awarded a $25,000 grant from the Bank of America Charitable Foundation. The funds will be used to train South Carolina teachers statewide in financial and economic literacy. Select Health of South Carolina has announced it is one of seven health plans invited to participate in The National Committee for Quality Assurance’s (NCQA’s) Multicultural Health Care (MHC) Distinction Early Adopters Program. NCQA is the nation’s most trusted independent source for driving health care quality improvement. The Early Adopters Program will begin the first year of the MHC Distinction by acknowledging health plans like Select Health that are already providing culturally competent health services. Smith Moore Leatherwood LLP has earned top rankings in the first-ever U.S. News and Best Lawyers “Best Law Firms” survey. The firm’s Greenville office earned Metropolitan Tier 1 rankings in 12 practice areas. The Smith Moore Leatherwood offices in Atlanta, Greensboro and Raleigh markets also earned Tier 1 Rankings in 22 practice areas. Tier 2 rankings were awarded

to the Charlotte, Greensboro and Raleigh offices in six practice areas. Brenda Stewart, director of marketing and client services for Smith Moore Leatherwood LLP, has been chosen to serve on the South Carolina Commission on Lawyer Conduct. Stewart will be one of 16 members of the general public to serve on the Commission board. Sowell Gray Stepp & Laffitte LLC attorney Tina Cundari has been elected chair-elect of the board of Big Brothers Big Sisters of Greater Columbia. SPM Resorts Inc., a full-service professional timeshare management company, has hired Lani Liber to serve as senior vice president of corporate operations.

UPCOMING EVENTS

ADV ERTI SER I NDEX

January 14, 2011 Diversity Council Committee Columbia

Alliance ........................................................................ 1

January 19, 2011 Leading in South Carolina Columbia

BP Barber ................................................................... 24

Quality Forum Columbia

Elliott Davis................................................................. 10

BlueCross BlueShield ..........................Inside Front Cover

Duke Energy................................................................. 6

Haynsworth Sinkler & Boyd, P.A................................... 9

January 20, 2011 PR Advisory Committee Columbia

IMIC Hotels/Inn at USC .............................................. 22 Municipal Association of South Carolina (MASC)....... 25

Turner Padget Graham & Laney P.A.has been recognized in the 2011 edition of Benchmark Litigation: A Definitive Guide to America’s Leading Litigation Firms and Attorneys as a recommended litigation firm in South Carolina. This marks the second consecutive year in which Turner Padget has earned Benchmark’s recommendation. Sam Sammataro, a shareholder in the firm’s Columbia office, has been elected to serve as vice president of the South Carolina Chapter of the Federal Bar Association. Lanneau Wm. Lambert Jr. has been elected to serve as the vice president for community relations for Junior Achievement of Central South Carolina’s 2010-2011 term. Turner Padget attorney G. Troy Thames has been honored with the U.S. Military’s Bronze Star Medal for meritorious service while stationed with the U.S. Army’s 3rd Infantry Division in Iraq. Institute for Organization Management, a professional development program of the U.S. Chamber of Commerce, has appointed Catherine S. Dority, IOM, executive director of the Charleston Area Hospitality Association, to vice chair of the Northeast Board of Regents. As vice chair, Dority will implement the policies created by Institute’s National Board of Trustees, leading the Northeast Institute site and directing site recruitment. Spartanburg-based Waldrop Mechanical Services, a full-service mechanical contracting firm, announces Bill Gruss has earned his Certified Energy Manager (CEM) designation through the Association of Energy Engineers (AEE). In his role as commercial service manager for Waldrop, Gruss heads up the company’s Building Automation Division. W.B. Guimarin & Company Inc. has announced the promotion of Bill Waters to president of construction. Waters has been employed by W.B. Guimarin & Company Inc. as vice president of construction & operations since July 2004. Wells Fargo has hired Wade Shugart as regional vice president for Eastern South Carolina. In his role within commercial banking, Shugart will lead the team that provides financing to middle market businesses and corporations located in the Columbia and Charleston metro areas and across Eastern South Carolina. Shugart is based in Columbia and will report to Stan Gibson, division manager for Wells Fargo’s Commercial Banking operations in North Carolina and South Carolina. D. Jay Davis Jr., a partner in the Charleston law firm Young Clement Rivers LLP, has been certified as a circuit court mediator by the South Carolina Board of Arbitrator and Mediator Certification.

| SOUTH CAROLINA BUSINESS | January/February 2011

January 26, 2011 Executive Committee Meeting Columbia

NBSC.......................................................................... 22 Santee Cooper ........................................................... 19

Board of Directors Meeting Columbia Business Speaks at the State House Columbia

SC Power Team.......................................................... 13 Sonoco..........................................................Back Cover S.C. Chamber of Commerce ...............................25, IBC

January 27, 2011 Tax Committee Columbia

Staubli ........................................................................ 21 WorkReady SC ............................................................ 4

February 3, 2011 Human Resources Committee Columbia February 4, 2011 Environmental Technical Committee Columbia February 7-9, 2011 HR Institute Module 2 Columbia February 8, 2011 Human Resources of Professional of the Year Awards Dinner Columbia February 9, 2011 Small Business Committee Columbia February 10, 2011 Legislative Agenda Task Force Columbia February 15, 2011 Safety Committee Columbia February 16, 2011 Quality Forum Columbia February 24, 2011 Tax Committee Columbia

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