2021 Annual Report

Page 1

ANNUAL REPORT 2021


2021 ENDS ON HIGH NOTE

Regional investment surpassed $2.5 billion Imagine yourself on roller coaster ride: slowly climbing to a pinnacle, hearing a “click” and then plunging downward, before surging back up and twisting to your side. You feel a mix of adrenaline, fear, exhilaration, relief and joy as you loop around, eventually coasting to a stop. For many, that’s how much of the last few years have been. We entered into 2021 with the weight of the pandemic. We were cautiously optimistic about our ability to resume the in-person activities that enrich our work, and we were poised to maintain the digital and small-group engagements we initiated during 2020. Coming off of the roller coaster, it’s invigorating to report that 2021 was a sensational year for capital investment in the Upstate: 85 companies announced nearly $2.5 billion in capital investment and 8,745 jobs. The Upstate 10 counties account for nearly half of the $5.7 billion in 2021 capital investment and jobs announced by the SC Department of Commerce. Each of our counties had at least one announcement, and investments ranged in size and type, spanning multiple industries. Several of the state’s largest projects were within our region: Oshkosh Defense, Arthrex, Transcom, Pall Corporation and Walmart. We’re also seeing an increase in the number of projects emerging from site selection consultants, whose work has become increasingly important

NATIONWIDE SEARCHES OF “UPSTATE SOUTH CAROLINA” increased averaging

24% 3,600 searches per month

Between November 2018 & November 2021

amid the pandemic. It’s fitting that we’ve grown our focus on these Centers of Influence, hosting both virtual and in-person inbound events in 2021. Another Upstate bragging point: many existing industries announced large expansions: Lockheed Martin’s 300 new jobs in Greenville, Arthrex’s 500 new jobs in Anderson, and ZF’s 500 new jobs in Laurens. When existing industries continue to invest in our region, it sends the message that Upstate SC is a location that meets industry needs, backed by a proven workforce. That message is a testament to the power of #TeamUpstate and the collaborative, “can-do” environment that comes from your public and private leadership across the region. In 2022, we’re seeking investor support for our Strategic Planning Process, where we’ll explore how we can embrace opportunities that arise from digitization and automation, sustainability and electrification, entrepreneurship and maximizing economic participation. We know the future will hold more roller coaster hills and thrills, though a collaborative, proactive approach will allow us to step off the ride together once more shouting, “That was awesome! Let’s do it again.”

John Lummus President & CEO Upstate SC Alliance


BUSINESS RECRUITMENT

2021 PIPELINE Engineered Materials

280

Auto & Transport

255

Industrial Manufacturing

167

Life Sciences

153

Aero & Defense

152

Other

140

Food Production

110

Business Services

107

Energy & Utilities

59

Measured by active contacts in pipeline

TOTAL USA

UK

430

GERMANY

103

102

400

SPAIN

95

1,423

CHINA

54

39

395

350 300

CANADA

359 313

334

250

263

200 150 100 50 0

106 70

100

45

2017

27 2018

30 2019

34

29

2020

54

38

2021

PRESENTATIONS

VISITS

RFIs

Presentations made by Upstate SC Alliance to prospect companies and Centers of Influence (COI)*

Prospect company or Centers of Influence (COI)* visits to the region hosted by the Upstate SC Alliance

Requests for Information (RFIs) received from prospect companies and shared with local economic development teams

*Centers of Influence (COIs) = Site consultants, international business and trade organizations, real estate brokers and developers


2021 ANNOUNCEMENTS

$2.47B in new capital investment

85

total announcements

69%

43

31%

DOMESTIC COMPANIES

8,745 new jobs announced

NEW vs.

FOREIGN-OWNED COMPANIES

EXISTING

42

UPSTATE ANNOUNCEMENTS by the numbers

$8.4B

27,025

in new capital investment

new jobs announced

5.0

7,000

4.0

6,000

3.0

5,000

2.0

4,000

JOBS

CAPITAL INVESTMENT*

5 YEAR TOTAL

*In billions

1.0

2017

2018

2019

2020

2021

$2.02B 6,247 JOBS 75 Projects 31 International

$1.29B 4,259 JOBS 65 Projects 28 International

$1.28B 4,577 JOBS 91 Projects 32 International

$1.25B 3,017 JOBS 57 Projects 26 International

$2.47B 8,745 JOBS 85 Projects 26 International

3,000


2021 ANNOUNCEMENTS New vs. Existing NEW COMPANIES 2021

43

$1.3B

new company announcements ACI Plastics Agape Care Group Bailybead Solar (Cypress Creek Renewables) BMarko Structures BNNano CNC Cabinetry Coastal Partners, LLC Confidential Projects Connect America / Lifeline DHL Supply Chain Drake Software Epsilon Frauenthal Gnotec Gissing North America GML Industries, LLC

in new capital investment Hawkeye Hotels, Inc. / Fairfield Inn & Suites Impresa Building Systems Kerns Trucking, Inc. Magna Mirrors Malouf MECART, Inc. Meva Formwork Systems Limited Microtex Composites MP Cloud Technologies / EMTech Old Dominion Oshkosh Defense Pall Corporation Pozyx Pregis

5,172

new jobs announced Project Green Spa Project Green Spa 2 Project Otto Project Sunrise ATC Project Sunrise LS1 S.W.O.R.D. International, Inc. Shenandoah Growers, Inc. Sweetwater Solar (Pine Gate) Sync.MD Tiger Companies Top Edge Components Transcom TTI Floor Care North America Walmart

EXISTING COMPANIES 2021

42

existing company expansions AFL Arthrex Auria BASF BMW Manufacturing Corp. Bosch Rexroth Corp. Broad River Electric Corp. Canal Insurance Cypress Creek Renewables E+I Engineering USA Fibertex Nonwovens, Inc. First Quality Tissue Frontier Label Georgia-Pacific, LLC

$1.2B

in new capital investment Glen Raven Hanvey Engineering ILGIN USA Corp. ISOFlex Packaging KIYATEC, Inc. Lonza Luxor Scientific Monti, Inc. Nestlé USA Pall Corporation Plastic Omnium PreZero US Project Blue Project Sabre

SEE RECENT ANNOUNCEMENTS

3,573

new jobs announced Project Seed Project Skywalker Project Wiper Proterra Prysmian RL Solutions, LLC Sandvik Solvay Standard Textile Co., Inc. STAR EV The Home Depot United Community Bank WCFIBER, LLC ZF Transmissions Gray Court


Upstate SC:

WHERE MANUFACTURING & TECHNOLOGY INTERSECT UPSTATE SITE CONSULTANT INBOUND IN SPARTANBURG Our largest consultant inbound event drew 11 site selection consultants to experience the Upstate in fall 2021. Hosted in Spartanburg, the event offered a chance to test-drive BMW’s automotive technology at the BMW Performance Center Driving Experience, hear how the Spark Center SC provided millions of dollars worth of market entry support to Keurig Dr Pepper’s roasting facility, tour Milliken & Company’s innovation gallery, and “speed date” our Local Economic Developers.

CELEBRATING CLEMSON AT INDY

Clemson University automotive engineering’s Deep Orange 12 driverless prototype served as the platform for the Indy Autonomous Challenge, and #TeamUpstate was there to celebrate the unveiling during the Indy 500, making our first trip with Locals and partners since the pandemic.

Indy Autonomous Challenge

11

site selection consultants

48

public & private investors engaged

UPSTATE INNOVATORS HOMECOMING During our 2021 Innovators Homecoming, leaders of the Upstate’s entrepreneurial ecosystem met with visiting innovation players to share the region’s strengths & potential.

Innovators Homecoming


Innovation is the nucleus of the Upstate, and we shared stories of the Upstate’s leading technology advancements, home-grown success, and the potential our location presents to growing international companies through several activities.

SITE SELECTION UPSTATE INTELLIGENCE REPORT

“The streets buzzed with people and possibilities,” Site Selection Magazine reported in July following a visit to the Upstate in Spring 2021. The publication explored the region’s population growth – more than double the U.S. population – and how we ended 2020 with a 1.5% increase in manufacturing activity & construction up 5%.

Stories included:

• “A Visit on the Front Porch” with Greenville Drive owner Craig Brown • “Quiet Giant: Milliken & Company Products are Everywhere” • “The Upstate’s Talent ROI is Substantial and Growing” • “Where Startups are Stakeholders”

EXPLORE REPORT

INNOVATION VIDEO SERIES

Belgian real-time location tracking technology provider Pozyx. Homegrown engineered materials company Zylö Therapeutics, whose products have life science applications. ChartSpan improving patient care through proprietary technology. Epica International growing its U.S. presence in medical imaging and robotics equipment. The Milliken & Company innovation story. What attracted these companies to the Upstate, and what’s keeping them here? We asked, and they share their take in our innovation video series, “Unlocking the Power of Innovation.”

SEE SERIES

Everybody wants to peg: ‘What’s the big vertical? What’s the sliver of types of companies that exist in the Upstate?’ And the truth is, there’s a remarkable, diversified group. Whether you’re incubating, or whether you’re closing a $100 million round of capital, all of it is possible here.

ChartSpan

Pozyx

Jon-Michial Carter

CHIEF GROWTH OFFICER & FOUNDER CHARTSPAN

Zylö Therapeutics


2021 INVESTOR ACTIVITY by the numbers

CURRENT INVESTORS

The Alliance’s work is funded through public-private partnership, including:

181

private sector investors

20

public sector investors

26

new investors

4

upgraded investors

86

investor events

321

investor research requests +35% from 2020


Connecting Upstate employers with talent. A surprising 90% of the nation’s workforce searches for employment opportunities at least a few times per year. How are you making sure your job openings land on their radar? Let MoveUpstateSC.com and our Move Up talent attraction initiative be your answer. Launched to connect Upstate employers with talent, the Upstate SC Alliance provides this resource to showcase the best of living, working, and moving up within our region, reaching nationwide audiences through targeted digital marketing.

TALENT ATTRACTION Promoting job opportunities to targeted talent audiences outside the region — as well as to those in the Upstate.

77K+

visits to website

2,134

social media followers

Connecting Upstate residents with in-demand technical occupations — and the short-term pathways to get them there.

job views

paid media impressions

highlighted occupations

15

46,899

424

832K+ social media

283K+ social media

3,696 link clicks

23K+

published posts

2.7M

impressions

impressions

job postings (annual)


FINANCIAL OVERVIEW 2021 3%

ASSETS Total Current Assets Total Property & Equipment

$3,129,271.05 $113,404.33

TOTAL ASSETS

TOTAL PROPERTY & EQUIPMENT

TOTAL ASSETS

TOTAL CURRENT ASSETS

$3,242,675.38

$3,242,675.38

97%

LIABILITIES & CAPITAL Total Current Liabilities Total Long-Term Liabilities

$1,319,382.14 $4,681.56

TOTAL LIABILITIES

$1,324,063.70

Beginning Unrestricted Net Assets Change in Net Assets

TOTAL CAPITAL TOTAL LIABILITIES

$1,641,591.16 $277,020.52

TOTAL CAPITAL

$1,918,611.68

TOTAL LIABILITIES & CAPITAL

$3,242,675.38

59%

TOTAL LIABILITIES & CAPITAL

41%

$3,242,675.38

REVENUE

2021 ACTUAL

2021 BUDGET

2020 ACTUAL

2019 ACTUAL

Investor Revenue Sponsorships/Grants/Other Revenue State Funds Applied to Budget

$1,795,105.52 $335,145.60 $864,822.85

$1,693,832.22 $120,424.96 $1,209,142.96

$1,727,424.06 $113,462.40 $683,659.76

$1,642,078.29 $186,055.46 $907,440.97

$2,995,073.97

$3,023,400.14

$2,524,546.22

EXPENSES

2021 ACTUAL

2021 BUDGET

2020 ACTUAL

2019 ACTUAL

Total Operational Expense** Total Program and Service Expense Total Fundraising Expense

$637,073.72 $1,962,905.68 $118,074.05

$563,046.16 $2,320,103.98 $140,250.00

$724,521.23 $1,582,279.30 $115,563.76

$753,193.63 $1,740,789.84 $122,062.68

$2,718,053.45

$3,023,400.14

$2,422,364.29

TOTAL REVENUE

TOTAL EXPENSES

$2,735,574.72

$2,616,046.15

**Must add depreciation amount to get true number

2021 ACTUAL

2021 BUDGET

2019 ACTUAL

2020 ACTUAL

TOTAL REVENUE

$2,995,073.97

TOTAL REVENUE

$3,023,400.14

TOTAL REVENUE

$2,524,546.22

TOTAL REVENUE

$2,735,574.72

TOTAL EXPENSES

$2,718,053.45

TOTAL EXPENSES

$3,023,400.14

TOTAL EXPENSES

$2,422,364.29

TOTAL EXPENSES

$2,616,046.15


EXECUTIVE COMMITTEE 2022

OFFICERS

The following individuals serve on Upstate Alliance Executive Committee as of spring 2022:

DAVE EDWARDS

LIZ SEMAN

EMILY DeROBERTS

President & CEO GSP International Airport

Chief of Staff, Liason to the Board of Trustees Furman University

Government & Community Relations Duke Energy

ADAM ARTIGLIERE

JODY BRYSON

JENNIFER CALABRIA

ROY COSTNER

JACK ELLENBERG

Partner Burr & Forman LLP

President & CEO SCTAC

Director of Land Development Pacolet Milliken

Vice Chairman Pickens County Council

Associate Vice President Corporate Partnerships & Strategic Initiatives Clemson University

STEVE FERGUSON

WILLIAM KENLEY

BARRY LEASURE

TERENCE ROBERTS

KIM WALLACE

Executive Vice President of Sales, Marketing & Customer Service AFL

Chief Executive Officer AnMed Health

Managing Partner GreerWalker

Mayor City of Anderson

Chief Growth Officer Hire Dynamics

NON-VOTING

MEMBERS AT LARGE

Chairman

Vice-Chairwoman

JONATHAN COLEMAN

STEVE COOPER

President/CEO Laurens County Development Corporation

Partner Rödl Langford de Kock

Treasurer

Immediate Past Chairwoman

From existing industries expanding to new companies choosing to call the Upstate home, 2021 was a remarkable year. On behalf of the Executive Committee, we look forward to working with the Alliance’s diverse network of experts to chart a vision for sustaining this momentum into the future.”

Dave Edwards

CHAIRMAN, UPSTATE SC ALLIANCE BOARD OF DIRECTORS


upstateSCalliance.com


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