Feb. 8, 2013 UBJ

Upstate

Business febrUARY 8, 2013

J O U R N A L

PUMPED

UP!

UPSTATE FITNESS BUSINESSES GAIN STRENGTH DESPITE STRUGGLING ECONOMY PAGE 21

Inside the CSI takeover PAGE 14

Local businesses fight the flu

PAGE 12

Joyner contemplates new brand

PAGE 6

UBJ

Table of Contents

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Take It Outside

Liberty Fellowship Enters 10th Year

Wanted: ‘Big and Bold’ Ideas for Workforce Development

Courthouse Development Moves Forward

By Jenny Munro contributor

By Jenny Munro contributor

More hotel guests seek outdoor exercise options

By Leigh Savage contributor

By Jennifer Oladipo contributor

Photo by Greg Beckner

Women work out at Pure Barre on Augusta Street in Greenville.

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11

18

23

Digital Maven

Statehouse Report

The Takeaway

Learning by failing: Is there any other way?

When church politics rises to the level of pure pettiness

Create. Innovate.

Celebrate.

By Laura Haight contributor

By Andy Brack contributor

2 Upstate business journal February 8, 2013

Your friendly neighborhood Butcher Shoppe

By Jim hendrix and tim reed contributors

Always be the most passionate person in the room By darlene fuhst contributor

UBJ

Photo by Paul Mehaffey

Dear Journal Faithful, Three months ago, we introduced the first

and only weekly business publication dedicated to the Business of the Upstate. We now are delivering more than 50,000 copies every week directly into your hands, and the hands of readers like you. ¶ Many of you have asked about our digital products. Please be patient. We are busy designing a digital experience just as unique as the printed product. We are not reinventing the wheel; we are just making it spin faster.

Over the past six months, I have been talking with, listening to and taking notes from the business owners and thought leaders we are so fortunate to have in this business community. UBJ is the outcome of those conversations. I do want to tell you, Greenville: As you already well know, this business community is on fire!

Change and opportunity is the takeaway. Many organizations are experiencing changes within their industry, creating big opportunities to take action. Communication is the change agent to economic growth. We feel that if we here at UBJ do our job, we will communicate and facilitate these opportunities, changes and success stories – allowing us not only to all grow, but to grow together.

I am excited to introduce the newest member of the UBJ team this week, Richie Swann. Richie will be responsible for the production, design, and presentation of

the Upstate Business Journal. He comes to us from Southern Living magazine, and previously Garden & Gun. We are positioning not only the content, but also the presentation of UBJ to give you the most addictive business read in the Upstate.

Remember, we need your help.

A conversation works two ways.

We know to engage the public, it’s important to listen and partner.

We are counting on you, just as you are counting on us. Our time is now, Upstate. We are the change agents.

You can reach me at rjohnston@ communityjournals.com. I look forward to hearing your suggestions on how we can continue to deliver what this market needs and deserves.

Cheers,

Rya n l. John ston Associate Publisher

40th Class

Now Accepting Applications Apply today at greenvillechamber.org February 8, 2013 Upstate business journal 3

Tailored

by the Purveyors of Classic American Style

UBJ

Mr. Valentine

“People see the ill effects of the decisions they’ve made, and exercise is going to be a very large part of more people’s lives.”

For Valentine’s Day, you might think of giving flowers, special candies and a sweet card expressing the love and admiration for your special someone… and that is a great start! Maybe you’ve made reservations at that new restaurant or purchased tickets to the main event downtown.

You have planned for the day—but did you ask yourself, what am I going to wear?

Don’t just think about the logistics of the day—follow through and dress for the occasion. I bet the woman in your life will feel special that you did.

How you dress is an important form of expression. Your special someone will notice that you’ve thought about the date from buying the gift, booking the reservations to paying special attention in choosing how to dress --especially for her.

William Timmons, owner of Swamp Rabbit Crossfit, on the growth of fitness businesses in tough economic times.

“You can have a lot of people around the table who look different, but if they think alike, you’re not really getting a diversity of perspectives.”

Jennie Johnson, executive director of the Liberty Fellowship.

“I think it’s only human to have feelings of doubt.

But if you are passionate about your idea, you will keep at it. You will also come to learn that failure isn’t the worst thing in the world.” Joe Lancia, entrepreneur.

“This is a pretty large move for all of us, so we want to make sure to do it right.”

Earl Lee, president of the real estate affiliates network of Prudential, on the changes Greenville’s Prudential C. Dan Joyner Realtors faces now that Berkshire Hathaway has purchased Prudential Real Estate.

You might have planned a casual, more intimate evening to spend with your Valentine. The thoughtfulness of a low-key evening doesn’t mean to neglect your attire. So dress the part. A handsome sweater over a button down shirt matched with a comfortable, yet sporty pair of pants could just be the look that you desire. If you know that you will be attending social event, take that into consideration and chose a suit or fun sport coat and trousers coupled with an unforgettable dress shirt and tie. Dress with the intent to impress your special someone…she will notice! “How do you compliment the one you love…dress well.”

TBA Word is a Spartanburg company that specializes in precision cutting tools is poised to announce plans to expand operations in Greenville County, adding at least 30 jobs and growing its capabilities to serve customers in the automotive, medical, aerospace and powergeneration industries…

4 Upstate business journal February 8, 2013

J23

23 West North Street, Greenville, SC 29601 864.232.2761 | www.rushwilson.com Open Mon.-Sat. 9:30am - 5:30pm Wed. 9:30am - 1:00pm

Worth Repeating | TBA

Look for Jack Jones, vice president and general manager of Boeing South Carolina, to make his first major Upstate appearance March 21 as featured

luncheon speaker at the Salute To Manufacturing Awards Luncheon at the TD Convention Center in Greenville. Silver Crescent Awards will be presented to winners from among 11 finalists in the small, midsized and large manufacturer categories…

The Greenville Planning Commission is set to consider the final development plan for Magnolia Park next week.

Cabela’s recently announced plans to open a store there in 2014…

UBJ

FOCUS: Trends

Take It Outside

Travelers’ Favored Spots for Vacation Workouts

More hotel guests seek outdoor exercise options

flight 9%

By Leigh Savage | contributor

a recent survey showed that many travelers are breaking out of the hotel gym and seeking outdoor exercise opportunities, and Greenville hotels say they are in the ideal position to take advantage of that trend.

The survey, conducted by TripAdvisor, found that 87 percent of U.S. travelers choose walking as their preferred mode of exercise while traveling. Business travelers, who have been cooped up inside airplanes and conference rooms, often want to get outside to relieve stress and see more of their destination city.

In response, hotels around the country are offering more outdoor exercise options, including walking paths, pedestrian maps, guided nature walks and even complimentary pedometers.

The Courtyard by Marriott Greenville downtown is well suited to outdoor enthusiasts thanks to its proximity to the Swamp Rabbit Trail, said Michael Bonasia, general manager.

“We promote it as much as we can via our website, Twitter account and brochures,” he said. “There is a lot

of interest on weekends and in the spring and summer.”

In addition to offering maps to guests looking for a place to walk or run, the hotel is developing an app that will feature the trail. Courtyard

by Marriott also partners with Reedy Rides to offer bikes, and when the weather is nice, “the bikes are gone every day,” Bonasia said.

The Westin Poinsett in Greenville also partners with Reedy Rides to offer bikes, and John Geddes, director of sales and marketing, said the hotel gets a number of guests who bring their own bikes so they can hit the trail.

“We do a lot of bike business,” he said. “Our fitness center is constantly used, but weather permitting, our concierge and front desk will point people outside. The trail is such a great thing to have.”

Renata Parker, a Greenville-based travel writer, is often on the road, and she’s seen hotels responding to the fitness needs of guests.

“Travelers, both business and pleasure, want to stay fit while on the road

Travelers’ Top Physical Activities on Vacation

Walking

87%

Swimming

46%

Hiking

35%

Cardio Machines 23% Biking

16%

Source: TripAdvisor

Hotel gym 52%

Hotel room 27%

pool 42%

BEACH 38%

and are choosing hotels that offer the amenities to keep their fitness routines on course,” she said. “Thankfully, I’m finding that hotels at all price points are listening and providing guests with more than just a standard fitness room in a dark basement.”

She points out that many hotels offer on-site bicycles, maps and guides, and she appreciates the suggested jogging routes offered by chains such as Westin and Starwood. “I would be swayed to book another brand if there were more outdoor options like sunrise yoga or hiking trails,” she said.

Heather Meadors, director of community relations for JHM Hotels, which owns the Hyatt Regency Greenville, hopes to attract travelers like Parker by offering Saturday-morning yoga classes on the newly revamped Noma Square in front of the hotel.

“Once it gets warm, that will be the perfect spot for classes, and the community will be welcome, and of course our guests,” she said.

The Hyatt is also planning a retail area that will offer grab-and-go sandwiches and snacks as well as the opportunity to pick up a bike. “We haven’t finalized the details, but we feel like that will be a great package,” Meadors said.

The city is also working with Upstate Forever to offer a bike-share location in the North Main area, close to the Hyatt.

Libby McMillan, a content man-

ager for the Greenville-based travel website 10Best who oversees dozens of local experts who compile lists of the best hotels in their towns, said outdoor opportunities and greenspaces improve the guest experience and help hotels rank higher.

Business travelers especially like these amenities, she said, not just because it gets them outside, but also because it helps them explore the cities even though they are primarily there to work.

“It’s always easier to explore a city on foot,” McMillan said. “Hotels with a walking trail, or near a bike trail or rentals, are more appealing to business travelers and also to families, who can incorporate outdoor activities that serve as no-cost entertainment.”

McMillan also serves as Greenville’s “local expert” for 10Best, which recently became part of USA Today.

The site lists attractions, parks and free activities in the city, and McMillan said there are numerous easily accessible options for travelers staying at any downtown hotel.

“They all offer access to Falls Park and Cleveland Park, which has workout stations,” she said. “The hotels can work with the bike rental companies, offering the chance to get on a bike and hop on a trail. And since the Kroc Center opened, guests have access to a beautiful tennis facility.”

Hotel gyms will continue to be a necessary amenity, McMillan said, “but they are often small, easily crowded and not very motivating.” It makes sense for local hotels to publicize their outdoor options, letting guests know they can “get out on a beautiful trail to get some exercise.”

Contact Leigh Savage at lsavage@communityjournals.com.

February 8, 2013 Upstate business journal 5

Photos by Greg Beckner

UBJ

David Crigler and Danny Joyner

Name-Change Mode for Joyner With Prudential’s merger with Berkshire Hathaway’s HomeServices, the Upstate real estate dynasty contemplates rebranding

By Dick Hughes | senior business writer

prudential c. dan joyner realtors has been identified with the Prudential name from the first days some 20 years ago when the New Jersey insurance giant got into the real estate franchising business.

With sale of Prudential’s real estate division to another company and that company’s merger with a third company, the Prudential franchise Joyner built into Greenville’s dominant agency is in name-change mode.

The dominant entity of the corporate transactions is Warren Buffett’s Berkshire Hathaway HomeServices,

the brand name that soon replaces the Prudential identity nationally, but not necessarily locally. At least not right away.

“We are excited about the possibilities. We know it is a brand going places,” said David Crigler, chief operating officer and executive vice president for Joyner’s residential market.

“We already have been considering it. We just need to know more and sit down and have conversations at the appropriate time about what it means for the business.”

Those conversations became more

6 Upstate business journal February 8, 2013

direct last week when Earl Lee, president of the real estate affiliates network of Prudential, was in Greenville to meet with Joyner’s brokers, agents, officers and managers to explain the changes and opportunities.

“In Greenville, we are very fortunate that we have a company like Prudential C. Dan Joyner which meets all of our criteria, has a culture that clearly has the reputation of the kind we want to have for Berkshire Hathaway HomeServices brand,” Lee said.

Lee, Crigler and Danny Joyner, Joyner president, talked to the Upstate Business Journal about plans for integrating Berkshire Hathaway HomeServices into the businesses of more than 50,000 independently owned and operated Realtors across the nation.

Because each Realtor has the right under its contract with Prudential to keep that name until contract expiration, Lee said, a name change “is not something we can force on our affiliates.”

In the case of Joyner, said Crigler, the company could hold the Prudential name for about 13 years but is unlikely to do so, not wanting to be the “last man standing.”

Lee said Berkshire Hathaway has a “conversion fund” to help local agencies rebrand. “This is a pretty large move for all of us, so we want to make sure we do it right.”

He said that on any given Sunday there are probably somewhere between

500,000 and 700,000 Prudential real estate signs on lawns across America.

In 22 other states, HomeServices already is well established with 500600 offices and 26,000 agents.

Lee said the fact that Berkshire’s HomeServices is the principal owner of the new combined company and operates its own agencies means local agencies will have the support of “someone who has real estate in their DNA.” With Prudential, he said, real estate was not its primary business and did not provide the “operational savvy” that Home Service does.

For example, Lee said, the HomeServices people want to know how the new franchise name and local agency name “will look on the sign, how is it going to look on the business card. I worked for Prudential for 15 years and never once had somebody at the corporate level at Prudential say, ‘How will it look on a sign?’ They never thought about it.”

Danny Joyner said the new company’s commitment to a higher level of technology and infrastructure to support local agencies is encouraging.

“Over the last four or five years, the real estate business has been a little stagnant in developing new products,” he said. “We have all the confidence that what they are going to roll out will be so appealing that we can’t pass it up.”

Contact Dick Hughes at dhughes@communityjournals.com.

UBJ

Liberty Fellowship Enters 10th Year

gos

By Jennifer Oladipo | contributor

Photos provided

now a decade into its mission, Bartow worked as finance control- a major part of the fellowship experithe Liberty Fellowship has attempted ler for manufacturing when BMW ence. Bartow’s project will test the to tackle some of the state’s toughest came to the Upstate, and later started feasibility of a program to improve issues through a cadre of leaders who an internal consulting group there. the identification and treatment of work on themselves as hard as they Six years ago, she parlayed that postpartum depression, using St. work on society. experience into her Francis Hospital and The Liberty Fellowship is a state- own consulting busiGreenville Hospital wide leadership initiative founded by ness. Bauknight, on the System as pilot sites.

Anna Kate and Hayne Hipp, Wofford other hand, has been a “In corporate life for College and The Washington D.C.- serial entrepreneur who 13-plus years, it was based Aspen Institute. The two-year has dabbled in diverse pretty much nose to the program enlists community leaders industries. grindstone all the time,” age 30-45 to “move South Carolina “Our professions have Bartow said. “I barely forward” in the areas of education, been quite different, but looked up to see how environment, economic development our personalities seem John Bauknight things were going on and public policy. to have much in comoutside of my circle of Like their predecessors, members mon. Although only a few years into friends, family and colleagues.” Now of the current class of 2014 are tasked her entrepreneurial journey, I can she will embark on a project that could with creating a significant project, and sense that [Bartow] is very driven, impact women throughout the state. also pushed to broaden their perspec- and that’s a key to success for any Bauknight, a fellow from the Class of tives and better appreciate the wisdom entrepreneur,” Bauknight said.

2010, still spends 10-15 percent of his of people with whom they have little During the program, fellows com- time on the project he started, which is in common. The regional, racial, gen- plete reading assignments on various intended to unite Spartanburg Comder and religious diversity in the state topics, from classical texts to writings munity College, USC Upstate and the are keys to its progress, said Executive on issues of the day, and discuss the Spartanburg Chamber of Commerce Director Jennie Johnson. readings in moderated seminars. in a partnership to provide a platform “You can have a lot of people around “What surprised me was that I was for local entrepreneurship. It’s bearing the table who look different, but if they already so personally affected by the fruit in a new business accelerator think alike, you’re not readings and the facili- starting in Spartanburg. really getting a diversity tated discussions,” said The Liberty Fellowship is in the of perspectives,” Johnson Bartow. midst of evaluating its 10 years of trysaid.

One of the sessions is ing to be “an incubator for exemplary Mentorship is also a globalization seminar leadership.” The organization will folimportant, so fellows with the Aspen Institute, low up on past graduates to see what are paired with accoma prestigious interna- has changed since the first evaluation plished professionals, tional organization that five years ago. Johnson said finding some who have been promotes progressive more representation from rural areas Mercedes Bartow through the program dialogue. A Liberty Fel- is one lingering challenge. She hopes themselves. Grenville’s lowship board member, people in all areas will nominate the Mercedes Bartow, part of the current Wofford President Benjamin Dunlap, bright stars in their communities, class, will work with mentor John is a frequent Aspen moderator, as are companies or families for a spot in Bauknight IV, co-owner of RJ Rockers Jennie Johnson and other guest mod- the class of 2016, for which she’s brew pub in downtown Spartanburg erators at the Liberty seminars. already recruiting. and president of Longleaf Holdings, a Reading and talking alone won’t Contact Jennifer Oladipo at real estate and investment firm. change South Carolina, so action is joladipo@communityjournals.com.

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February 8, 2013 Upstate business journal 7

UBJ

Wanted: ‘Big and Bold’ Ideas for Workforce Development Ten at the Top forums address Upstate’s growth, future needs

By Jenny Munro | contributor

challenges to training and recruiting the workforce needed by 2030 abound, but resources to meet those issues are available if residents, public officials, educators and businesses collaborate to meet the need, according to participants at a workforce forum.

Ten at the Top, an organization fostering collaboration and partnerships across the 10-county Upstate, last week held its first 2013 forum on workforce and skill development. About 200 people attended the program at the BMW Zentrum to brainstorm ideas to address one of the most critical issues facing the region.

This and other TATT forums are designed to help come up with “big and bold” ideas to make the Upstate the best place to live, learn, do business and raise a family by 2013, said Dean Hybl, TATT executive director.

“Workforce and skills development is absolutely crucial to the future of this region,” he said. “It is important today, it will be important tomorrow and it will be important in 2030 and beyond.”

Cynthia Eason, Greenville Technical College’s vice president for corporate and economic development, agreed.

“Workforce development is the responsibility of the entire community,” she said. “There are still a lot of people who are unemployed or underemployed who can become a sustainable member of the community if given the right skills.”

The Upstate has four Workforce Investment Boards in addition to other organizations working with workforce development, said Dean Jones, executive director of SC Works Greenville. All are necessary to meet

the needs of regional employers and workers, but they need to collaborate.

“Every day people are trying to find jobs,” he said. “Every day businesses are trying to find workers.”

The Workforce Investment boards help job seekers identify their skills, especially from previous jobs, and help connect the employer and the job seeker, he said.

Although many people are immediately ready for work, employers still have jobs they cannot fill because area residents don’t have the needed skills, he said. In the next 20 years, Upstate employers will need engineers, maintenance technicians, machinists, electricians and robotics technicians.

Education was an issue addressed by the forum, and Stephen J. Wunder, president of Duer/Carolina Coil Inc., said that businesses must play a part in the discussion. In the past, South Carolina businesses have been satisfied with workers with relatively low educational levels. Now that they compete globally, that no longer works, but businesses haven’t gotten that word out.

The challenge, several people said, is to connect business and education from kindergarten through adult education.

“We’re preparing students for a workplace that doesn’t exist right now,” said Tom Moore, chancellor of USC Upstate.

Josh Copus, vice president for the National Association of Workforce Boards, said the issue of workforce development is a local, regional and statewide issue and suggested that several boards could collaborate on various programs. Employers tend to

8 Upstate business journal February 8, 2013

draw employees from several counties or even regions, making it natural for boards to work together to meet the needs.

Boards also could consider collaborative outreach efforts to let students and parents know of the jobs that will be available when young adults are seeking work, he said. The boards can reach out to businesses to find out their needs and how to help meet them beyond training and skills programs.

“We have an unemployment issue,” Copus said, “but training doesn’t create jobs.” Rather, businesses do, he said, so the boards need to spearhead initiatives to think about what it would take for a small to medium-size business to add just one more employee.

Among the challenges facing employees, businesses and trainers are drug test failures, low basic skills, poor work ethic, lack of soft skills and problems with criminal background checks, said Ann Angermeier, executive director of the Upstate Workforce Investment Board.

Another problem to be resolved is a lack of motivation on the part of job seekers to improve their educational levels.

Contact Jenny Munro at jmunro@communityjournals.com.

“We’re preparing students for a workplace that doesn’t exist right now.”

Tom Moore, chancellor of USC Upstate.

Courthouse Development Moves Forward

By Jenny Munro | contributor

federal officials have completed purchases of land for a new U.S. Courthouse across the street from the Greenville County Courthouse on East North Street, which could eventually open the area to further retail and professional development.

The U.S. General Services Administration has bought three parcels of land in downtown Greenville for about $4.07 million, moving forward a project that has been in the works for years.

Tenants in the proposed 12-story facility will include district courts and U.S. Marshals Service and U.S. Probation offices, officials said. The building also will include a Circuit Library and office space for the U.S. Attorney’s Office and the Federal Public Defender.

Plans to relocate the courts and offices from the Haynsworth Federal Building on Washington Street that houses the federal courts have been under consideration since 2005.

During the years since then, various locations – including the site of the former Greenville Memorial

Auditorium – have been proposed.

However, traffic pattern concerns at the auditorium site caused that location to be dropped.

“That whole project has been a question mark for a long time,” said Mary Douglas Hirsch, manager of downtown development for the city.

“This removes the questions. It allows other developers to move forward.”

“We see this as another anchor in downtown,” she said, adding that the city hopes the new facility would attract retail establishments to the area to serve employees working there.

Hirsch said the city would like to see retail established on the side streets, part of Greenville’s effort to develop more than just Main Street.

Hirsch said that the city knows of

“That whole project has been a question mark for a long time.

This removes the questions. It allows other developers to move forward.”

Mary Douglas Hirsch, manager of downtown development for the City of Greenville

Greenville officials recommended in 2008 that a new federal courthouse be built across the street from the current county courthouse, citing ample parking with the city’s nearby garages and the proximity of legal and other law-related professional offices, she said.

no construction timeline. The government had funding to purchase the property and to design the facility, but construction funding has not yet been obtained, officials said.

But the action, the purchase and beginning of design, “is a good sign” that the project is moving ahead,

Hirsch said.

Property records show the purchases include 0.213 acres on East Coffee Street at North Irvine Street for $523,739 on Dec. 31, 2012. Also, the General Services Administration, which will be responsible for the construction, paid $3 million for about 1.281 acres on East North Street and East Coffee streets in 2011. Another 0.254 acres was purchased on East North and North Irvine streets in 2012 for $540,000.

The existing federal building will house the 4th Circuit Court of Appeals, U.S. Bankruptcy Court and tenants in existing leased space.

That building was designed by Eric Kebbon and completed in 1937.

The 88,861-square-foot, four-story building initially held a U.S. post office, federal courts and federal offices. When the post office moved out, many of the spaces, especially on the first floor and lobby area, were significantly modified.

Contact Jenny Munro at jmunro@communityjournals.com.

February 8, 2013 Upstate business journal 9

UBJ

Digital Maven

By laura haight

Learning by Failing: Is There Any Other Way? the only way i ever learned anything was by messing up.

Unfortunately, that is the case with most of us. Still we would be abrogating our responsibilities if we didn’t pass on some cautionary wisdom gained from our experiences.

1. Get out of the data center, unlock your door, and start walking around your building. See how people really use technology. Find out from the least-skilled users how things are going and watch what they do. Those are your areas of opportunity to make a difference.

When employees ask us to write a program or set up an account here or install this application, we should not go blindly into the task just so we can add it to the complete jobs stat at the end of the month. The question that should be asked is: “What are you trying to accomplish?” IT has programs, software and capabilities that we cannot expect users to know about. And will know how to provide the best technology path to the result you are looking for.

It’s the fault of IT professionals who are often happy to stay in the mysterious data center, behind locked doors, pounding away on keyboards at programs with indecipherable names (what is “Ruby on Rails,” anyway?)

The combination of insular IT staff and business executives who are content for them to stay that way has cost companies untold millions in wasted effort, unnecessary expense and underused capabilities.

2. Standing at the crossroads of “nimble” and “reckless,” remember that things become clichés because they are true. Like: If something can go wrong it will.

Last week, I got an email via

to the old, comfortable ways pretty quickly unless someone is championing the new and making sure it’s implemented properly. That also means asking the question: How is it going? And quickly correcting problems so employees have no reason not to adapt.

Linked-In from a former employee.

He had actually been on my mind recently for no particular reason and I remembered the time he wiped out our entire email database by installing a piece of software we were considering. He said he just thought it would be no big deal. Until it was.

Up until then, we had not had policies and procedures for testing and deploying new software. We were a small newspaper and we ran a (very) tight budget. That disaster spurred us to develop policies, testing procedures and implementation checklists and timelines that allowed for proper testing. I took quite a beating for the problem, but became a lot smarter, a lot more quickly as a result.

In today’s “can-do” environment, IT is so often seen as throwing up barriers to success. But those procedures come from years of losing your email, overwriting the database and struggling through bad implementations.

3. Think operationally, not technically when things do go wrong. IT guys want to know why something

10 Upstate business journal February 8, 2013

happened so they can fix it forever; operational staff want to get the darn thing going so we can fix it for now!

That can put you at odds with each other, but a lot of very smart IT guys just don’t think like businesspeople.

In part, it goes back to how involved they are in the business – understanding not just the technology, but how it is used.

Crashes, hacks, and other disasters require a two-pronged attack: Get us functional first, then find out what happened, fix it and make sure it won’t happen again.

4. During a walkthrough at a new job several years ago, I was struck by a room full of dust-covered equipment.

It looked new (other than the dust) and I knew it was costly. So why wasn’t it on the floor? “Oh, it never worked right,” was the response.

There was a lot of that at this location, and there may be at yours as well. Expensive technology that got sidelined rather than properly implemented. Employees generally resist change and will revert back

5. Letters after your name and on your resume don’t mean everything. I was always a bit of an oddball in IT. I readily admitted that I was the least technical person on the IT staff.

But I was a gizmo, a very talented user, a smart businessperson who understood my industry inside and out, and a forward thinker. I could not write programs, but I understood what technology could and couldn’t do. So I could articulate business needs to programmers and technical leads – and translate the tech talk to businesspeople.

You need someone like that in your world – whether it is on staff or a consultant or a member of your advisory group. Certifications aren’t the only valuable skill a technologist can bring to your business.

Oh, yeah: The former employee I mentioned is now the vice president of global messaging for one of the nation’s largest multinational companies. I congratulated him on making a great career. He replied: “Hard work, opportunity and the chance to learn from my mistakes.”

Laura Haight is the president of Portfolio (www.portfoliosc.com), a communications company based in Greenville that focuses on harnessing the power of today’s technology to reach new customers, turn customers into loyal clients and loyal clients into advocates. She is a former IT executive, journalist and newspaper editor.

UBJ

Statehouse Report

By Andy Brack

When Church Politics Rises to the Level of Pure Pettiness if you think politics rocks and rolls only at the Statehouse, take a look at church politics.

Episcopalians, known around the country for acceptance and tolerance, are facing mighty frustration and confusion in the lower part of the state following a schism late last year that has pitted parish against parish, priest against priest, and a bishop against the national church.

The headline-grabbing schism in what until recently was a united body known as the Episcopal Diocese of South Carolina today is fueled by a spiritual and historical stream of secession, a menacing aquifer of greed, disdain, money, power and sanctimony. It has spilled from the pulpit into state courts. It has caused churches and parishioners to pick between church leaders who have left the national Episcopal Church and those who remain with it.

Some see it as a bunch of ecclesiastical nonsense because they don’t really care which governing organization they’re aligned with. But others see the split as a hurtful squabble brought on by conservative clerics who are negatively impacting the worship lives of church members. And some are even gloomier, viewing the break as sinful lust by those leaving to grab as much as they can by using rhetoric, strategies and tactics worthy of the best negative political campaign that Lee Atwater ever ran.

Over the last 10 years, some champions of Biblical literalism in the Episcopal Church in the lower part of the state got hot and bothered by gender politics. They went ballistic when the Rev. Gene Robinson, a gay man, was named Bishop of New Hampshire, even though the likeli-

The headline-grabbing schism in what until recently was a united body known as the Episcopal Diocese of South Carolina today is fueled by a spiritual and historical stream of secession, a menacing aquifer of greed, disdain, money, power and sanctimony. hood of anyone from South Carolina worshipping in the Granite State was next to nil. More recently, the same zealots got bent out of shape over the blessings of same-sex relationships in other parts of the country, just as they surely got bent out of shape in the 1970s with the ordination of women and as their ancestors did over race during and after the Civil War. Led by S.C. Bishop Mark Lawrence, many churches broke away from the national church and formed a new entity – “The Protestant Episcopal Church in the Diocese of South

Carolina” – with rhetoric that sounds much like what happened when conservative Democrats jumped to the Republican Party: “I didn’t leave the party; the party left me.”

It came as no surprise that since the end of last year, breakaway churches and the “new diocese” filed lawsuits to keep property and even the seal of the national church diocese they abandoned. In what was the pot calling the kettle black, the breakaway diocese had the gall to spin that the national church abandoned them – even though Lawrence and his

minions voted to leave the national church as it appealed to them to stay inside the tent.

Although they departed with much bluster of cutting all ties, they really want (you should see this coming) to keep all of the formerly united diocese’s money, property and land, including a popular church camp.

Seems to me that when you abandon something, you leave and start anew – and that means without all of the stuff that you signed over to the national church years ago. But that, I guess, is logic.

To rub salt into all of these selfinflicted wounds of the past months, S.C. Circuit Judge Diane Goodstein issued a temporary restraining order Jan. 23 to keep any individual, organization or parishes that are continuing to worship with the national church from using names and the seal historically associated with the Episcopal Church in the lower part of South Carolina for 300 years.

Hmmm, surely seeking the order wasn’t a disruptive coincidence as it came the same week the continuing parishes were preparing to elect a new bishop.

Churches are supposed to be places of sanctuary, not places for negativism and pettiness. Who knows what will happen with the breakaway and continuing Episcopal parishes in the lower part of the state? About the only thing for sure is that it looks like a lot of lawyers will get richer. And that’s not the kind of Christian charity that motivates people to give or go to churches.

Andy Brack is publisher of Statehouse Report. He can be reached at brack@statehousereport.com

February 8, 2013 Upstate business journal 11

UBJ good business people prepare for all kinds of situations.

They have backup systems to back up their backups to guard against a nasty computer virus or server crash wiping out important computer files.

They have plans in case of fire or flood.

They have insurance to pay for unexpected legal troubles or accidents involving cars driven by their employees and products made by their companies.

But too many businesses don’t make preparations for outbreaks like the flu, which has hit especially hard this year, and can cost businesses billions of dollars, said Robin DiPietro, an associate professor in the University of South Carolina College of Hospitality, Retail and Sports Management.

“It used to be that we encouraged people to come to work no matter what, but we’re thinking differently,” said DiPietro, who teaches human resources and specializes in the hospitality industry. “It’s detrimental for businesses not to address the issue of employees who are sick.”

According to the Centers for Disease Control, seasonal flu outbreak costs the nation’s employers $10.4 billion in direct costs of hospitalization and outpatient visits. But that doesn’t include indirect costs related to lost productivity and absenteeism.

But employees who come to work sick, called “presenteeism,” can cause problems, too, experts say.

“An organization can be severely impacted by people coming to work when they’re sick. We know how illness can spread from person to person, causing entire work groups to be affected,” said Dr. Mary Capelli-

Photos by Gerry Pate

Fighting the Flu Preparation, precautions are necessary for businesses as they are for employees

By Cindy Landrum | staff

Schellpfeffer, medical director of Loyola University Health System Occupational Health Services. “But less obvious is how performance, organization, productivity, creativity and financial stability can all be affected.”

John Challenger, CEO of the employee outsource company Champion, Gray and Christmas, said employees may think they are doing the right thing by “toughing it out” and coming to work when ill. Whether they are motivated by job security or a desire to continue making a contribution in an overbur-

There are things businesses can do to prevent devastating flu outbreaks, according to the outsource company Challenger, Grey and Christmas Inc. Increase the number of shifts to reduce the number of people working in the office at one time.

Limit meetings or conduct them via

conference calls or video conferencing.

Expand telecommuting.

Determine who can work from home or other locations.

12 Upstate business journal February 8, 2013

dened workplace, presenteeism hurts a business, he said.

A 2007 study by the Society of Human Resources Management found that presenteeism costs businesses $180 billion a year, while absenteeism costs just $118 billion a year. Flu accounts for 10 to 12 percent of all workplace illness-related absences.

DiPietro said having an effective sick leave policy is critical to preventing an office wide or companywide flu outbreak.

“Businesses have to make employees feel safe calling in sick,” she said.

Allow sick workers to stay home without fear of losing their jobs.

Institute flexible leave policies to allow parents to care for an ill child or one who is home due to school closures.

Provide no-touch trashcans and hand

In some jobs, telecommuting can allow employees to work while not exposing their co-workers. In other jobs, such as the service and hospitality industries, that’s not possible.

In those cases, employers can help by setting up phone trees where employees can trade shifts or make up missed shifts – and the income lost because of the absence – when more help is needed.

“It’s a communications issue,” DiPietro said.

Sometimes employees don’t know they have sick time because they’ve never had to use it, Capelli-Schellpfeffer said.

Challenger said companies should prepare for the worst in order to ensure continuity of their business in the wake of an outbreak. In addition to cross-training employees so productivity doesn’t stop if somebody is out, companies should consider what they’d do if their suppliers were hit and could not deliver key parts, he said.

Workers should be encouraged to step up hygiene efforts, he said, and companies should emphasize healthy habits.

“Though there is a cost involved in promoting wellness, it is small in comparison to the pricey hit companies take when their workforce is impaired by illness,” Capelli-Schellpfeffer said.

And even if the worst of this year’s flu season has passed, DiPietro says anything done now won’t be wasted.

“This is not just something for 2013,” she said. “There will be a flu season next year and in the years after that.”

Contact Cindy Landrum at clandrum@communityjournals.com.

sanitizer.

Encourage employees to wash their hands frequently, avoid handshaking and take other hygienic precautions such as wearing a mask in heavily populated work areas.

Assign someone to

the post of workplace illness coordinator who would be responsible for monitoring absenteeism rates, coordinating leave and informing employees of company measures to prevent and/or respond to outbreak.

Encourage employees to get flu shots.

UBJ

Quarterlies

from the net loss of $2.8 million, or $1.12 per share, in 2011.

In 2012, the bank booked expenses of $723,000 on dividends paid to the U.S. Treasury for preferred shares on the $10 million it received in TARP funds.

Full-Year Profits at Greer

Greer State Bank reported annual net income of $4.2 million, or $1.68 cents per share, for 2012.

The bank also said the fourth quarter of last year was its fifth consecutive profitable quarter.

With the bank back on a stable footing, Dennis Hennett, who had come out of retirement to lead the bank through its turnaround, resigned as CEO, retiring for the second time. He remains on the board of directors.

George Burdette, 59, who earlier replaced Hennett as president in an easing of transition, was named CEO to replace Hennett in that capacity.

The profit for the year “was aided significantly by net gains on investment transactions, which accounted for $2.1 million” of the net gain, said Burdette.

He also noted the bank did not incur any loan-loss expense because of “favorable trends in loan quality and a reduction in total loans outstanding.”

The 2012 year-end results were a far cry

Alternate Lender Gains

World Acceptance Corp., the Greenvillebased lender in the subprime market, said its net income rose 5.6 percent to $20.7 million, or $1.58 per share, in its third fiscal quarter.

In the comparable period a year earlier, it had income of $19.6 million.

Revenue increased 10 percent to $149.6 million on the strength of an increase of 11.3 percent in average net loans and their interest and fees.

“The company’s growth in earnings per share also has benefitted from our ongoing share repurchase program during the current year,” said CEO Sandy McLean.

Over the last nine months, World Acceptance said, it has used its “excellent cash flow” to repurchase 2 million common shares. The repurchase reduced by 13 percent shares outstanding, which makes each share more valuable.

Sam’s Club Property Sold to Verdae

By Jenny Munro | Contributor

verdae properties has closed on the purchase of the former Sam’s Club property for $3.25 million, said Randall Bentley, president of Lee and Associates Greenville.

The 133,000-square-foot building on 12 acres of land on Laurens Road has been for sale since Aug. 20 by Dune SC LLC, he said. Lee and Associates represented by the sellers, a partnership from New York and Ohio, and Rick Sumerel represented the buyer.

Sumerel could not be reached for comment.

Bentley said that as far as he knows no plans have been developed for the property, which has been vacant for about five years. However, Verdae Properties owns other properties in the area, including a retail center with Books-a-Million,

and is expected to incorporate the Sam’s Club property into its overall development plan, including the Verdae mixed-use community with residential, retirement community and commercial space.

He said the proximity of this property to existing Verdae Properties land makes it a strong purchase for the development group. It also is located next to several retail centers and is about a 10-minute drive from downtown Greenville.

The property at 2519 Laurens Road was developed in 1986.

Commercial property activity is picking up in recent months, and Bentley said there is not a lot of property for sale in the Laurens Road area.

Contact Jenny Munro at jmunro@ communityjournals.com.

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UBJ “I don’t think it was a surprise to anyone that a company that was a competitor was interested in CSI,” he said.

CSI was unique in governance.

It was the only public company in South Carolina with a female CEO; and, unlike the usual corporate hierarchical rigidity in pay practices, officers were compensated at roughly the same level.

CSI Technology Outfitters of Easley is located in a former coat manufacturing facility, which was converted into office space.

Canadian firm prevails

Photo by Greg Beckner

CSI Takeover Result of 3-year Campaign Toronto company grabs Easley software reseller despite search for other investors

By Dick Hughes | senior business writer the future was bright for Computer Software Innovations, a small Easley company with promising technology for schools, when it went public in a complicated transaction in 2005.

Just seven years later, it came to an end. A far bigger publicly traded Canadian company with a competing subsidiary took possession in a relentless takeover campaign that went on for three years.

In the end, the CSI board and management agreed the sale was in the best interest of all shareholders.

An exhaustive search by an investment banker hired by CSI did not turn up a better offer or a strategic investor, and CSI’s cloud services did

not produce the hoped-for home run.

Although its stock never caught fire, CSI had built a strong niche as a provider of software and hardware technology to manage school administration and enhance classroom teaching and student learning.

It also had tools for administrating local government. It was recognized nationally by CRN as one of the nation’s top 500 value-added software resellers.

Looking for a cash cow Sales grew year by year, and the company was consistently – if at times marginally – profitable. It put its cash into growth, including a major investment in cloud technol-

14 Upstate business journal February 8, 2013

ogy that it hoped would lead to a full communication system for schools.

The cloud was not the cash cow it counted on and became too expensive to fully develop. CSI wrote it off in April 2012 as the takeover was nearing reality.

David Dechant, who joined CSI as chief financial officer as it was becoming public in 2005, said that CEO Nancy Hedrick, a founder along with Vice President Beverly Hawkins, “did a tremendous job of growing the company.”

It had doubled in size through organic expansion and acquisition and had become “the premier” provider of educational and local government software, hardware and services in the Southeast, Dechant said.

On Nov. 7, Constellation Software Inc. of Toronto gained ownership of CSI, winning a fight not unlike what large corporations might go through in a hostile takeover.

“It is not a big deal, but it is like a microcosm,” said CSI’s attorney, William Pitman of Smith Moore Leatherwood, referring to the acquisition process. “We did the same things you would deal with in a Fortune 500 acquisition.”

In the end, a New York investor, Barron Partners, which had helped establish CSI as a public company in 2005 with a major financial investment and the mechanism to do so, played a major role in forcing the sale.

The saga is played out in minute detail in a Securities and Exchange Commission filing to give investors an unvarnished account of how ownership passed to Constellation in a merger with its subsidiary, N. Harris Computer Corp.

Andrew Barron Worden, managing partner at Barron Partners, got involved in early 2005 when CSI, then privately held in equal shares

by Hedrick and other co-founders, Beverly Hawkins, Tom Clinton, Bill Buchanan and Joe Black, sought investment to recapitalize.

Barron antes ups $5 million Barron agreed to purchase more than 7 million preferred shares for $5 million and an equal number of warrants for common shares. The continued on page 16

By Dick Hughes | senior business writer

Melinda Davis

William Pitman

The business of advising companies merging, selling, buying or borrowing in the Upstate points to emerging knowledge enterprises and technological twists on an old one.

Terrell Mills and Melinda Davis of the Wyche firm, which has an 80-year history in corporate law, including mergers and acquisitions (M&A), say these changes are reflected in the type of work they’re seeing.

“The biggest change is the increase in private equity investment in South Carolina,” said Davis.

With some exceptions, such as Azalea Capital, which has been in business since 1996, the Upstate has not had “historically the same level of investment by private equity firms as other parts of the country,” she said.

What Wyche is seeing is private equity firms showing higher interest in South Carolina, “and that is going to drive more M&A activity.”

On that score, Mills said, the “negative conception” created by disparagement of Mitt Romney’s Bain Capital by President Obama’s campaign does not reflect the conduct of the venture capital firms buying into startups, or that of equity firms.

Mills said venture capitalists “are usually buying into the management team and leave them there,” he said. “They are looking for a homerun, no question about it, and they are making a risky investment because it is so young, and they really don’t know if the technology is going to prove out.”

Davis said companies are “delighted and very excited” to have the infusion of capital

Terrell Mills

“whether it is venture capital or private equity. It generally is a good thing.”

Also different from the past, they said, is the way transactions are being financed with conventional bank financing “dramatically down.”

“We are seeing our companies having to be more creative in their financing,” said Davis. “Some of the big companies are just using their traditional bank financing, but for the smaller companies that can be a challenge.”

Still, said Mills, the restraints on banks from the credit collapse of the Great Recession are easing and so is their reluctance to lend.

“I am hearing from banks now that they are much more active and looking for opportunities. Whether these opportunities meet their criteria or not, they are actively looking.”

Davis said Wyche has several clients “being called on at least once a day” by banks looking to lend to that “small number of companies that have really good credit. The banks are all going after the same companies. They are getting great rates from their banks.”

The financing aspect of mergers and acquisitions is “an essential part of what we do,” Davis said.

As an indication of the growing emphasis on knowledge enterprises, Wyche is “starting to see growth in new industries,” Mill said. “One of the ones that seems to be really developing in the Upstate is the life science industry … certainly in the entrepreneurial level. We are not particularly seeing a lot of M&A activity there but are

seeing investment activity.”

Mills, who is co-chair of Wyche’s corporate practice, recently represented Selah Genomics in the management buyout of Lab21, a subsidiary of a British company that helped finance the development of the life science business that grew out of the Greenville NEXT incubator.

Davis was the lead attorney in two recent acquisitions by local companies in the advanced material market, the technological successor to the fabric business the Upstate dominated until lost to cheaper Asian makers.

She was lead attorney in Milliken’s purchase of GeoTree Technologies, a Colorado maker of polymer materials, and the purchase by Stretch Associates, manufacturer of stretch film and packaging products, of Snead Paper Co. of Greenwood.

“We represent some of the larger (advanced material) companies in the Upstate in their acquisitions. Their acquisitions tend to be companies elsewhere in the U.S., but their company headquarters become the Upstate,” Davis said.

The increasingly global economy and the concentration of international companies in the Upstate have put South Carolina and local attorneys in a position to “benefit more from that than other areas,” said Davis.

“When our local companies make transactions outside of South Carolina, they ask us to assist, and that provides opportunity.

Then when international companies come into South Carolina, they absolutely need local counsel to help them with local laws.”

Wyche said it was involved in transactions valued at more than $650 million last year. Davis and Mills said the transactions, including M&A, fared better through the recession in South Carolina than elsewhere.

“We have in the Upstate what we call the lower middle market, deals between $10 million and $100 million, smaller companies, smaller deals. They did not drop off as dramatically (as mega deals between large corporations) during the recession. We still had good activity.”

Contact Dick Hughes at dhughes@communityjournals.com.

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Private equity firms changing M&A landscape

UBJ continued from page 14

strategy was to take CSI public, permitting Barron to sell its shares over time and to allow the company to raise capital from the exercise of the warrants.

“It was a complicated transaction, taking the private company public by merging it into an inactive public company referred to as a ‘public shell’” – in effect a reverse mortgage – said Pitman, who handled the transaction for CSI. Pitman said an “unexpected technical accounting interpretation with severe consequences” then led to a delay in registration of CSI’s stock, preventing an initial public offering to take advantage of investor enthusiasm. Pitman and Dechant had to work with the SEC to restructure key elements of the deal.

Coming on the heels of the delay in registration that slowed getting CSI stock to market came the recession that froze capital markets, preventing CSI from getting its “stock moving,” said Dechant.

CSI grows, stock languishes The stock never really gained traction, consistently hovering around 50 cents or less and with thin trading, despite CSI’s ability to double in size using its cash flow for acquisitions and organic growth.

“We definitely were undervalued, and that was obviously borne out by the results of the acquisition,” said Dechant.

From the beginning, Pitman believes, Worden, Barron’s managing partner, “was not thinking of staying for a long time. His warrants expired, so he lost that bang on his investment. He had this preferred stock, which converted into about 50 percent of the company. In the end, what really pushed this story is that he wanted out.”

It wasn’t until after CSI had lost the

Photo by Greg Beckner

Nancy Hedrick, former CEO of CSI Technology Outfitters.

fight that Constellation revealed it first approached Barron in September 2009 and in August 2010 offered Barron $1 – later raised to $1.07 – for each of its common shares converted from preferred.

Pitman said CSI suspected Barron and Constellation had talked but didn’t “actually know that” until it was disclosed in the SEC filing after the takeover fight was over.

Constellation informally approached Hedrick in late 2009 “regarding a potential financing arrangement.” After negotiating with Barron, on May 9, 2011, Constellation presented CSI a non-binding offer of $1 a share, 7 cents less than it had offered Barron.

CSI seeks other investors Pitman said CSI was “really in the dark about all those negotiations.”

Still, he said, “Barron kept telling the company, ‘I’m going to sell my stake if you don’t sell the company.’”

According to the SEC document, Barron was pressuring CSI to use its capital or take out a bank loan to buy his stock at premium if it would not sell, which CSI said it did not want to do.

It had high hopes for a revenue and

16 Upstate business journal February 8, 2013

profit windfall from its cloud services, and CSI’s board believed buying out Barron at a premium would be unfair to other shareholders holding stock trading around 35 cents, Pitman said.

Under threats from Barron, Pitman said, CSI made the “extremely key” decision to engage Hyde Park Capital of Tampa, Fla., to find other investors and examine other strategic avenues.

“The company effectively was saying, ‘OK, we are not for sale, but let’s look carefully at all of our alternatives,’” Pitman said.

Hyde Park contacted “an enormous amount of people in all categories of investors,” and CSI went into negotiations with a dozen.

Hyde Park and CSI management did “a real thorough search” but did not find a suitable alternative to the Constellation offer, Pitman said.

“Most investors would not want to have either a very large minority or even a majority position in a public company, so it is not a surprise in the end there weren’t other transactions available.”

Board crafts a ‘poison pill’ On March 1, 2012, the CSI board approved a “poison pill” as an antitakeover defense. The poison pill gave

existing shareholders an option to buy stock “really cheap” if a potential acquirer purchased 15 percent of CSI stock, thus diluting the buyer’s financial holdings, Pitman said.

He said the company acted because negotiations with Barron had been fruitless, and an agreement prohibiting Barron from selling its stock was about to expire.

Constellation escalated the battle later in the month, releasing a public statement saying it would pay $1 per share at a time the market price was around 35 cents. Barron said it fully supported the offer, and some other shareholders were clamoring for CSI’s board to “take the buck.”

It was what lawyers call a “bear hug,” bypassing the board in a direct offer to buy shares at a premium over market value. It was a way of forcing the board to consider the takeover and engage in negotiations, which CSI did.

Acquisition jointly announced After negotiations that raised Constellation’s offer to $1.10 in cash and settled transaction fees and severance terms for CSI officers, the board accepted the terms Oct. 2. The acquisition was announced in a joint statement.

Constellation said its Harris division would operate CSI as a separate subsidiary under the CSI brand. Dechant said that while he and the partners have left the company, day-to-day operations continue under competent middle management in Easley.

Nancy Hedrick declined to comment for this story, saying only that she is enjoying her retirement. Requests by phone and email for comment from Andrew Barron Worden and from executives at Constellation were not returned.

Contact Dick Hughes at dhughes@communityjournals.com.

UBJ

The Fine Print

Shakeup at diamond maker Michael McMahon has been named CEO of Scio Diamond Technology Corp., the Greenville-based startup making manufactured diamonds that is going through a management shakeup.

McMahon, who had been chief operating officer since 2011, became the third CEO at Scio in two months. His appointment was effective Feb. 1.

He replaced Steve Kelley, who was named CEO on Dec. 5 to succeed Joseph Lancia, who resigned as president and CEO on Nov. 30.

Lancia also resigned from the board.

The shakeup in management also involved Charles Nichols, who resigned as chief financial officer on the same day Lancia stepped aside.

No explanation of the leadership upheaval was offered by the company in its notification of the changes in Securities and Exchange filings, and the departing officers all signed non-compete and nondisparagement agreements, normal boilerplate in executive departures.

Ed Adams, board chairman, said McMahon’s vision of mass production of diamonds for both the industrial and gemstone markets is “clear, concise and focused.”

He said, “There is no doubt that Michael will lead Scio to being the most productive and efficient diamond operation in the world.”

McMahon, who has been with Scio since it moved production into Greenville’s NEXT center in 2011, has more than 30 years of management experience, including in senior positions at Fluor, Jacobs Engineering and CRSS. Lancia, too, was with the company at the startup in Greenville.

Scio reported a loss of $2 million in its fiscal year ended March 20, 2012, a year in which it was preparing for production and had no revenue. Scio reported revenue of $12,000 in the first 2013 fiscal quarter and $61,000 in the second.

The company said it expects to have full-year sales of about $1.3 million in fiscal 2013.

Bank gets lift from FDIC Federal and state regulators have lifted a consent order that had put Palmetto Bank under tighter scrutiny since June 2010, a sign the bank has been restored to a more normal state of health following recessionary hits.

“This positive action by the banking regulators is further confirmation that the execution of our strategic plan is yielding the desired results,” said Samuel Erwin, president and CEO. The consent order by the FDIC and action by the South Carolina Board of Financial had required Palmetto to keep higher levels of capital to protect against credit losses on bad loans, increase its loan risk management and restore profitability.

Palmetto reported net income in the last quarter of 2012 and in the first quarter of this year, and Erwin has said the bank expects to stay in the black.

Although the consent order was lifted, the FDIC has insisted that Palmetto “continue to improve credit quality and earnings” and maintain higher than normal credit ratios.

Palmetto also remains unable to make dividend payments to shareholders without permission of the FDIC. China stockpiles cotton Prices for cotton grown by South Carolina farmers have dropped from $2 per pound three years ago to around 80 cents a pound today, according to Gary Adams, vice president for economics and policy analysis for the National Cotton Council of America.

The Clemson University news service said Adams gave a 2013 industry outlook report at the S.C. Cotton Growers’ annual meeting in Orangeburg last week.

Mike Jones, cotton specialist at Clemson’s Pee Dee Research and Education Center in Florence, said S.C. growers produced 918 pounds of cotton per acre, a record. Average yield is about 750 pounds per acre.

Jones said higher-than-usual rainfall and moderate temperatures in June and July were the primary factor in the record yield.

Adams said China holds about half the world’s cotton stock and is the largest consumer and importer of cotton, and it is uncertain when China will decide it has enough in stockpile. “That’s the big unknown,” he said.

The U.S. Department of Agriculture believes 81.7 million bales are in stock worldwide, Adams said. In 2009-2010, less than 47 million bales were held.

Peanuts galore last year S.C. peanut growers had a bumper crop and a high yield in 2012 in the best growing weather for row crops in a decade, according to the Clemson University Extension Service.

Peanut specialist Scott Monfort said a record 105,000 acres of peanuts were planted, yielding 3,900 pounds per acre. In 2011, 75,000 acres were planted.

Prices were good at between $550 and $650 per ton but are expected to be around $475 per ton this year. Planting is expected to be around 70,000 acres this season.

Workforce training gets boost Duke Energy has donated $4.1 million to fund Clemson University’s Center for Workforce Development.

The money will help finance “initiatives in the state to help provide a next-generation workforce in key cluster areas,” Clemson said.

The center will oversee distribution of funding to universities, technical colleges, and K-12 institutions through competitive grants, scholarships and internships, Clemson said.

The program is aimed at developing a “labor force with specific skills in science, technology, engineering and mathematics, specifically in advanced manufacturing to support South Carolina’s burgeoning manufacturing industry.”

The funds from Duke are being combined with funding with grants from the U.S. Department of Labor, the Employment Administration and the National Science Foundation.

Liberty firm builds for Israelis Sealevel Systems has signed an agreement with Sital Technology, an Israeli company, to manufacture and distribute certain technical computer products and designs for aerospace, avionics and military applications.

“Partnering with Sealevel in the U.S. will bring proven solutions to rugged applications that demand strict adherence to stringent military and aerospace specifications,” said Duli Yariv, Sital’s vice president of marketing.

Sealevel of Liberty designs and makes durable computing products tailored for industrial and military needs.

New board members for Silver Crescent The Silver Crescent Foundation, a nonprofit organization supporting South Carolina’s manufacturing industry and efforts to encourage young people to consider careers in manufacturing, has elected four directors to three-year terms.

They are Greg Hillman of Greenville, director of SC Launch; Sam Patrick of Greenville, president of Patrick Marketing and Communications; Ken Scarlett, president and CEO of Scarlett Surveys International, and Fran Jones, vice president of administration for Bridgestone’s new plant in Aiken.

GHS wins award Greenville Hospital System received the McNair Economic Development Award at the Ecoplosion summit Jan. 24.

The award from the law firm recognizes GHS’ “efforts to address the state’s looming physician shortage by helping to establish the University of South Carolina School of Medicine in Greenville.”

Scott acquires tax firm Scott and Company of Greenville and Columbia has

acquired the tax firm of Lowrance Cooper of Columbia and merged the operation into the accounting and consulting firm.

Sandy Cooper, principal of the firm, along with another tax attorney, joined Scott as part of the transaction.

Don Mobley, managing member of Scott, said the combination expands the depth and talents of Scott and “will benefit clients.”

“As we explored this opportunity, we realized that our firms had extraordinarily similar goals and could benefit from working as a team,” said Cooper.

Seminar for HR on patent law InnoVision will hold a workshop Feb. 15 on “what the human resource professional needs to know” about the changes that will take place in U.S. patent law on March 15.

The session will be held 3-5 p.m. at the McNair law offices in Poinsett Plaza, 100 S. Main St., Greenville.

The panel includes McNair attorneys Doug Kim, head of the intellectual property group, Rita McKinney and Reginald Gay. Dan Radovic, vice president of The Kidder Group, is moderator There is no charge, but seating is limited. For registration, contact Kathy Ham at kham@ mcnair.net or at 864-552-9345.

AFL acquires Aussie firm AFL, the Duncan-based manufacturer of fiber cabling, said it has acquired a leading Australian maker of cable and connectivity products.

AFL said Optimal Cable Services of Melbourne manufactures various cables and ancillary products that are an “exceptional complement to AFL’s current offerings.”

Optimal will continue to operate at its existing facility in Melbourne. Terms of the deal were not disclosed.

AFL, a wholly owned subsidiary of Fujikura of Japan, has products and services in use in 120 countries and said the addition of Optimal will “further grow our business and customer base across Asia.”

February 8, 2013 Upstate business journal 17

UBJ Create. Innovate. Celebrate.

Your Friendly Neighborhood

Butcher Shoppe

Photos provided

Jim Tindal

by Jim Hendrix and Tim Reed

Jim Hendrix is president and co-owner of the Graphic Cow and chairman-elect of the board of directors of the Ronald McDonald House. He is a graduate of Clemson and the University of Chicago Graduate School of Business.

18 Upstate business journal February 8, 2013

Tim Reed is co-founder and past board chair of UCAN. After 20 years in the frozen food industry, he is now serving as a community volunteer, working in varied business ventures and pursuing real estate investing.

UBJ Create. Innovate. Celebrate.

Since its inception in 2008, The Upstate Carolina Angel Network service and quality,” Tindal says.

(UCAN) has studied over 900 business plans and invested in 25 early-stage, highgrowth potential companies. One of the group’s earliest investments was in the parent company of the New York Butcher Shoppe franchises. Normally, UCAN would not consider investing in a restaurant or retail concept – unless there was a particularly compelling and unique opportunity involved.

Such was the case with the New York Butcher Shoppe.

When UCAN members were asked during the company’s investment presentation if they had heard of the New York Butcher Shoppe, nearly everyone in the room not only raised their hands, but also said it was one of their favorite destinations. In contrast to the typical technology-driven opportunities UCAN evaluates, this low-tech business was one that every member could truly understand – and most already loved.

The original New York Butcher Shoppe was founded by Bill D’Elia, who is a native of Brooklyn and was a butcher in his hometown. He semiretired from New York to Charleston, and in 1995 went back into the business with his son, Billy. Because of his strong Brooklyn accent, customers called him “the New York butcher,” and the name stuck.

The business took off thanks to the elder D’Elia’s experience and his son’s ideas and energy. They began to franchise in 2001 and, in 2007, sold the franchise rights to their Greenville franchisees, Jim Tindal and Todd Prochaska.

“We were just regular franchisees,” Tindal says in a soft South Carolina accent that definitely isn’t from Brooklyn. “I had been in the food-service business for 16 years after graduating from Clemson and I saw the New York Butcher Shoppe as a unique opportunity. We had two stores and were making plans for more when the opportunity came to buy the franchising rights from the D’Elia family. We jumped all over it.”

And UCAN jumped all over the investment opportunity to help the

Butcher Shoppe grow when presented with the opportunity in 2009.

Although it wasn’t an investment driven by a technology advantage, the unique business model and the size of the franchise opportunity caught the investors’ attention. But what sealed

the deal, like most investments, was the strength and experience of the team – Tindal and Prochaska.

“We obsess about the quality of our products and customer service. We’re in the relationship business. We enjoy being on a first-name basis with our customers and we do whatever it takes to meet their needs. We’ll cater an event and we’ll make sausage to

“We only prepare USDA prime and high-choice meats, and all of our personnel, especially the franchisee, are highly trained and experienced.

We are the one-stop shop for your evening meal. We offer fresh pasta whatever special recipe you might made by Drake’s in High Point. Our have in your family,” Tindal says. “We home-cooked meals feed two or make a lot of German sausages to three people. We offer frozen meals special recipes brought over by some that feed four to six, and we have party sizes.” of the BMW employees.”

The New York Butcher General Manager Adam Update on Shoppe is clearly is more Sturm and Master Meat Cutter Tom Kloeser keep High Growth than just another butcher shop. It really has everythe Augusta Road store Small neat, clean, and crisply or- Business Job thing required to comganized, with a dynamite Creation Act: plete a meal. “We have crackers and dips, wines, sign in a high-visibility, a variety of pre-made The bill, which high-traffic strip shopsalads, potatoes and rolls ping center. Rents in such we wrote about in too. We won’t overwhelm locations aren’t cheap. To January, creates you with offerings; we keep prices down and to income tax credits just want to be a complete draw more customers, for accredited angel Tindal and Prochaska investors who support grab-and-go grocery with have expanded their high growth potential absolutely the best meats available anywhere.” offerings to include fine startup businesses Today, there are nine wines and pre-packaged headquartered in S.C. New York Butcher Shoppe complete meals, plus the The bill was introlocations scattered from sausages and custom food duced in the Senate Birmingham to Greenspreparation. as S.262 on Jan. 17 Since becoming the by Senators Leather- boro to Jacksonville. The two corporate-owned franchisor, Tindal and man and Setzler. On stores in Greenville are Prochaska have used their Jan. 22, the Senate practical experience in the Finance subcommittee located on Augusta Road and Woodruff Road. Store retail environment to help on Sales & Income hours are 10 a.m. to 7 p.m. reduce costs and increase Taxation passed the the income potential for bill unanimously with Monday through Saturday, and noon to 6 p.m. their franchisees. Store no amendments. sizes have been reduced Earlier this week, the on Sundays. To inquire about a franchise, call Jim from the original design full Senate Finance Tindal at 864-710-9204. to a more manageable committee reported Although the New York target of 1500 square feet. favorably on the Butcher Shoppe doesn’t Those savings, coupled bill with technical fit UCAN’s typical investwith strong and ever-imamendments. The proving merchandising, bill will now proceed ment model, it does fit well in a neighborhood enable lower rents in betto the Senate floor shopping center … and its ter locations for start-up for second reading, rare quality and well-done franchisees. potentially as early service are a business “Most importantly, as Thursday of model worth betting on. we focus on customer this week.

To learn more about becoming an angel investor, visit www.upstateangels.org, or send an email to matt@upstateangels.org.

February 8, 2013 Upstate business journal 19

Photos by Greg Beckner

Women taking part in a Pure Barre class use a ballet barre to assist with their workout.

A healthy bottom line

Diverse options keep Upstate fitness businesses strong in a wimpy economy by leigh savage cover story Upstate business journal February 8, 2013

Despite a recession, soaring unemployment and dismal disposable income growth between 2007 and 2012, the fitness industry – typically considered a discretionary expense – managed to pump up its revenues. ¶ According to the Bureau of Economic Analysis (part of the U.S. Commerce Department) disposable income growth averaged just 0.1 percent in the past five years. But during that same period, profits for gyms and fitness clubs grew from $24 billion to more than $25 billion, according to IBISWorld, a market research firm. Pilates and yoga studios saw the largest growth, increasing 7.7 percent to an estimated $6.9 billion in revenues.

The top ten fitness trends predicted for 2013 1 Certified and educated fitness professionals 2 Strength training 3 Body weight training 4 Obesity prevention for children 5 Exercise and weight loss 6 Fitness programs for older adults 7 Personal training 8 Functional fitness 9 Core training

Pure Barre owner and fitness teacher Lauren Wilson takes part in one of the classes on Augusta Street in Greenville.

William Timmons, owner and coach of Swamp Rabbit CrossFit, works out on the rings at the facility located near downtown Greenville on the Swamp Rabbit Trail.

William Timmons, owner of Swamp Rabbit CrossFit, and Sarah Anderson work out during a fitness class at the facility.

10 Group personal training Source: American College of Sports Medicine Worldwide Survey of Fitness Trends

In the Upstate, numerous businesses have cropped up to feed the demand for fitness, with large gyms standing their ground and smaller, more specialized workout facilities staking their claim in the marketplace.

“It is so much more specialized today than it was a few years ago,” said Richard Osborne, who since 2006 has published Go Magazine, which covers Upstate endurance sports and fitness.

“You don’t just go to a gym, you go to a boxing place or a CrossFit place, or to power yoga. For a market our size, we have a great offering of very specialized fitness opportunities.”

An ‘active community’

One of those specialized facilities

is Pure Barre, which opened on Augusta Road last July. Lauren Wilson, who had fallen in love with Pure Barre classes in Charlotte, left the world of commercial real estate to open the first studio of its kind in the area.

The class uses a ballet barre and upbeat music to lead people of all fitness levels through isometric exercises that the company says will show results in as few as 10 classes.

Wilson selected Greenville because “this is an active community,” she said. “So much of Pure Barre is wordof-mouth, and this is a close-knit community, so word has spread.”

Swamp Rabbit CrossFit, which opened alongside the Swamp Rabbit Trail in October, draws men

and women interested in a quick but intense workout that includes everything from heavy weightlifting to running to flipping oversize tires.

Owner William Timmons also got into the business as a client first, starting out five years ago as a law student in Columbia. When he moved to Greenville to work as an attorney, “I wanted to stay in shape and I wanted to help my family stay in shape,” he said.

Swamp Rabbit CrossFit is the largest CrossFit studio in the U.S., Timmons said, though a Boston facility will claim that title soon. “The population density here is great, and the trail is unbelievably popular, so having that right outside the door is great,” he said.

Necessity or luxury?

Timmons said it makes sense that the fitness business grew despite a stagnant economy.

“People are seeing how traditional medicine is not always the answer.

Diet and exercise is the answer,” he said. “People see the ill effects of the decisions they’ve made, and exercise is going to be a very large part of more people’s lives. As they see the quality of life that other people have that they don’t, it’s an easy decision.”

Research backs up that assessment, with the Centers for Disease Control and Prevention showing that more than 32 percent of adults who sought continued on page 22

February 8, 2013 Upstate business journal 21

Photos by Greg Beckner

Attendees at a Swamp Rabbit CrossFit fitness class do a few pullups.

continued from page 21 medical attention in 2010 were advised to exercise, an increase of 10 percent in 10 years.

Health club memberships have climbed from 36.3 million in 2002 to 42.8 million in 2011, according to the IBISWorld report.

The Life Center, which is operated by the Greenville Hospital System, has seen steady growth over the past few years, and a surge of 200 new members this January. Kendra Garrett, supervisor of group fitness and aquatics programs, has noticed growing interest in group fitness such as Pilates and boot camp-style classes.

“We have one called Interval Insanity, which is formatted like boot camp,” she said, with challenging exercises like sprints, push-ups and planks. “We see that as a growing trend.”

Bobo Eason has been offering his version of boot camp, “Bobo’s Express,” since 1994.

“People run, jump hurdles, do

Fitness glossary CrossFit A fitness company founded in 2000 that uses a strength and conditioning program that is constantly varied, high-intensity functional movement.

strength training sessions,” he said.

“People love working out in groups, so that’s where the money is made right now.”

At Body By Bobo, open since 2004, he offers individual personal training as well as classes and no-contract gym memberships. “There was definitely a plateau,” he said of the 2008-2011 timeframe. “There are so many gyms.

Personal training is considered a luxury. It was a tough couple of years, but it has picked up.”

Focused fitness

Garrett has noticed numerous small gyms cropping up in the area, each specializing in one type of workout, and she said larger gyms like the Life Center can learn from what those facilities offer.

“Consumers have access to more information, and they want a fitness professional who is more educated than they are,” she said. “They want

Short workouts combine intense movements like sprinting, climbing, flipping tires, weightlifting and pull-ups.

Zumba A Colombian fitness program that features dance and aerobic elements. Combines hip-

hop, samba, salsa, belly dancing and other dance styles.

Pilates Physical fitness system developed in early 20th century that builds flexibility, strength and endurance, with emphasis on alignment, breathing

22 Upstate business journal February 8, 2013

someone who specializes in a workout, and they also enjoy that personal connection and the accountability.

We’ve learned from that, to specialize in things like yoga and boot camp, and to also offer that connection, so people feel they are part of something more than just having a gym membership.”

Beth Brown opened Dharma Yoga Studios in 2009, during the height of the recession, and said growth has been steady but slow as more competitors move in. “We didn’t have as many yoga studios then, but several have opened in the past year or two,” she said.

She points out that competition is different among yoga studios, as each one offers its own styles and specialties, from hot yoga to power yoga to the specialty at her studio, a vinyasa flow style.

“People come for weight loss or stress relief, but find it’s a lifestyle,” Brown said. “People find their community and a place they feel welcome. Sometimes and a strong core.

Yoga Physical, mental and spiritual discipline originating in ancient India. Often used today to refer to postures that promote balance, strength and flexibility.

large gyms can feel intimidating.”

Osborne stays in contact with the area’s growing cadre of yoga studios, gyms and personal training facilities.

“I keep an eye on who is still open and who isn’t,” he said. A few years ago, “big box gyms and $19 workout places were going under,” he said. But now, it seems gyms and facilities of all types are prospering. “People are calling me and are willing to spend money, which is a testament to how well they are doing,” he said.

The growth is expected to continue. The U.S. Department of Labor Statistics expects jobs in the fitness industry to increase 24 percent between 2010 and 2020, faster than average for all occupations.

“When you look into it, there are a lot of fitness places people can choose from,” Garrett said. “How can an area our size support all of that? It’s exciting to think that it can.”

Contact Leigh Savage at lsavage@ communityjournals.com.

Vinyasa Yoga in which movement is synchronized to the breath. Also called flow yoga because of the smooth way the poses run together.

Boot camp Classes that build

strength and fitness through intense intervals.

Pure Barre A group class that uses the ballet barre to perform small isometric movements to shape and tone the entire body.

UBJ

The Takeaway

‘Always Be the Most Passionate Person in the Room’

ON BECOMING AN ENTREPRENEUR I didn’t set out with the intention to become an entrepreneur, but the company I worked for went through a few acquisitions, which got me thinking, “This acquisition stuff looks pretty easy – maybe I’ll start my own acquisition company.”

What I didn’t know was at the time, M&A had the big players – Goldman Sachs and Morgan Stanley – and then there were the mid-tier smaller companies. All the owners of the smaller companies started off with the big firms and had the connections and portfolio to land clients out of the

EVENT: First Friday Speaker Series – Clemson at the Falls WHO WAS THERE: 100 Clemson students, Greenville area business owners and other interested parties SPEAKER: Joe Lancia, prior president and CEO of Scio Diamond Technology Corp. and prior CEO of D&W Fine Pack LLC gate. I didn’t have any connections, and had to work for a year and a half to land my first client.

ON LANDING CLIENTS I worked really hard to land my first client. I pitched them several times on what was my strength as a small company. I told them, “You’ll never find anyone who will work harder at a lower cost and be more dedicated to your company than I will, because you will be my only client, and all my time will be devoted to you.” During those first years of struggling to land a customer I had to remind myself to not take “no” for an answer. Of course you don’t want to irritate people, and you will know when you’ve worn out your welcome – believe me, they’ll let you know. But you need to do what one of my first bosses taught me, which is to be pleasingly persistent.

ON HOW TO KEEP GOING DURING DIFFICULT TIMES When you start a venture and you’re struggling, it’s easy to start secondguessing your decision and wonder whether you should give up and go back to a 9-to-5 job. I think it’s only

human to have feelings of doubt. But if you are passionate about your idea, you will keep at it. You also will come to learn that failure isn’t the worst thing in the world. Many successful businesspeople have experienced multiple business failures before finding their success. You have to remember that just because you failed once doesn’t mean you always will, and that you are not the failure; the business idea was the problem. Find a new idea, get right back up on that horse and try again.

ON THE KEY TO ENTREPRENEURIAL SUCCESS Passion is probably most important.

You have to want it bad. I have three daughters, and when they decide they want something they let you know and they never let up. But in that is a good lesson – if you are passionate you will do whatever it takes to get where you want to go. You do have to be careful and maintain a balance, though. That passionate quality is good, but on the flip side someone can become so driven they are difficult to be around.

A lesson I learned as an entrepreneur is that you can’t expect everyone working for you to be as passionate as you are. You certainly will find people who are dedicated and will help you succeed, but you will always be the most passionate person in the room – and that’s as it should be.

Photo provided

joe lancia’s varied career has encompassed a range of fields, from electronics to synthetic diamond manufacturing. What connects these diverse interests is his willingness to take calculated risks and follow his instincts when he sees the potential for growth within an industry.

Armed with degrees in finance and computer science, Lancia started his career with the intention of becoming a banker. After experiencing several mergers in the company where he worked, he launched his own M&A firm. His experience in vetting companies and brokering deals has given him a wealth of experience in establishing strategies for the integration, implementation and redirection of businesses. His unique ability to analyze financial data has allowed him to pinpoint potential weak areas and develop action plans.

Through his positions with various companies, Lancia gained expertise in a wide range of manufacturing and distribution industries, including consumer products, packaging, food service, electrical, metal fabrication and electronics.

JOE LANCIA

THE KEY TO LEARNING A NEW FIELD Surround yourself with people you trust and who you can communicate with well, and then do a really good job of managing them. As you go along, try to soak up knowledge like a sponge, but just do the best you can.

You only need to learn enough to be dangerous, not enough to be an expert.

Hire the experts, and manage them well so they can do what they know best how to do. If you’re sitting around a table with your team and you’re the smartest person in the room, you have failed. The key is to recruit and then manage the smart people.

ONE BUSINESS RULE TO LIVE BY Never lie. As an M&A guy, I’m basically an in-between. I may work for one company or the other but at the end of the day I’m working for the deal. Full transparency and full disclosure are the key.

Friday signals the end of the workweek, but you can bridge the transition from work to relaxation every First Friday at Clemson at the Falls.

Once a month, the Spiro Institute for Entrepreneurial Leadership, Clemson’s MBA Program and UBJ host speakers who enlighten the audience on various business topics, followed by a networking reception including drinks and refreshments in the fourstory atrium overlooking Falls Park.

The events are free and everyone is welcome; however, space is limited so guests must register in advance. The next speaker is scheduled for March 1, 2013. To receive email notifications of upcoming events, please register at www.eepurl.com/oPtGv .

By Darlene Fuhst

February 8, 2013 Upstate business journal 23

UBJ

On the Move

HIRED

HIRED

HIRED

PROMOTED

HONORED

Randy Page

Carolyn Berg

Michael L. Batchelor

Charles Scales IV

Joe Dwars

Joined Bob Jones University as the school’s manager of public relations. Page comes to the university from South Carolinians for Responsible Government, where he served as president for the last eight years. He has also served as legislative affairs director for former Lieutenant Governor Bob Peeler, chief of staff for former Lieutenant Governor Andre Bauer, and as the director of public events for former governor David Beasley.

Hired as the new administrative assistant for the Greenville Airport Commission. Berg will report to airport director Joe Frasher. The Greenville Airport Commission is the owner and operator of the Greenville Downtown Airport (GMU).

GMU is the busiest general-aviation airport in South Carolina.

Named as CEO of Baptist Easley Hospital, effective March 1.

Batchelor comes to Baptist Easley from Greenville Hospital System (GHS) where he has served as president of the North Greenville Campus since 2005.

Prior to that, he was administrator of clinical/non-clinical support services at GHS from 20012005. He started his career as a combat field medic in 1988 with the U.S. Army.

Named Greenville Office Supply’s sales manager. Prior to being named to this new position, Scales had worked for more than two years as an account manager at GOS. He had previously served as a sales representative for over three years at Waste Industries USA in Greenville.

Honored by Charter Business with the PULSE Volunteer Award for January 2013. Dwars is an IT recruiter for Recruiting Solutions in Greenville. He has been a PULSE member for a little more than a year. He was selected for the PULSE Volunteer Award after volunteering his time for numerous events over the past few months. Charter Business honors PULSE volunteers on a bi-monthly basis.

INSURANCE/FINANCE: Northwestern Mutual recently announced that Eddie Terrell will join the firm as a financial representative. Terrell has previously worked at Medpoint LLC and Greenville First banks.

system. All English judges and barristers must be trained by and be members of one of the Inns.

Gray’s Inn has named just over 25 fellows, and McWilliams is the first non-British fellow named.

tions, media research and internal support. Cecil will use his expertise to help the endorsements department.

Ken Scarlett to three-year terms on its board of directors. Patrick is president of Patrick Marketing & Communications Inc. of Greenville. He is active with the American Advertising Federation, South Carolina Association of CPAs, Association for Accounting Marketing, Senior Action of Greenville County, Greenville Area Development Corporation, and numerous economic development organizations across the Palmetto State. Scarlett is president and CEO of Scarlett Surveys International, The Survey Company.

Since 1985, he has built Scarlett Surveys to be a worldwide leader in the employee engagement survey and management consulting industry serving Fortune 1000 companies, and has authored or co-authored numerous articles, white papers and books pertaining to employee engagement and engagement leadership.

REAL ESTATE: The Marchant Company recently announced the leading agents for the 2012 sales year at their annual meeting in January. Top listing agents for 2012: Tom Marchant, Volume Listings Award; Kathy Slayter, Unit Listings Award; and Valerie Miller, Highest Average Listing Price Award. Top sales agents for 2012: Kathy Slayter, Volume Sales Award and Unit Sales Award; and Valerie Miller, Highest Average Sales Price Award. Top sales team in 2012: Karen Turpin and Nancy McCrory. Signature agent of the year: Valerie Miller. Also, these agents and staff were recognized for their years of service: Gordon D. Seay, 20 years; Kathy Slayter, 20 years; Brian Marchant, 17 years; Nancy McCrory, 16 years; Karen Turpin, 16 years; Joan Rapp, 16 years; Barb Riggs, 16 years; Lisa McDowell, 16 years; and Nellie Wagoner, 10 years.

The Faust-Boyer Group of Raymond James recently welcomed Carter Hall as an investment specialist. Hall previously worked as a financial advisor with Morgan Keegan & Company.

LEGAL: Haynsworth Sinkler Boyd, P.A., is pleased to announce that Martin C. McWilliams Jr., Of Counsel in the firm’s Columbia office and professor of law at the University of South Carolina, has been elected a fellow of The Honourable Society of Gray’s Inn. Gray’s Inn is one of the four London Inns of Court, founded in medieval times, which regulate the English justice

MARKETING/PUBLIC RELATIONS: Infinity Marketing Solutions recently brought on Andreas Aristides, Kara Hunter, Joseph Hartley, Michelle Eddy and Michael Cecil as new interns for the spring semester. Aristides will be working with Infinity’s creative and production team as a graphic design intern. Hunter will be assisting the health care team with order confirmations, media research and internal reports.

Hartley will continue working part-time at Infinity, assisting with proofing, administrative projects and copywriting. Eddy will be helping out the telecommunications team with order confirma-

Full Circle Public Relations recently added Erin Frederickson to its team as an account manager.

Frederickson brings more than five years of marketing and communications experience to Full Circle PR. Most recently, she worked with Greenville-based Ferebee Lane + Co. and Prime Therapeutics and Daymon Worldwide in Minnesota.

NONPROFIT: The Silver Crescent Foundation, the South Carolina nonprofit organization dedicated to supporting the vitality of South Carolina’s manufacturing industry and educating citizens about rewarding career opportunities in manufacturing, has elected business leaders Sam Patrick and

In 2012, NAI Earle Furman completed over 600 transactions.

The Upstate’s leader in Commercial Real Estate.

Spartanburg 864 398 4444

Greenville/Main Office 864 232 9040

Anderson 864 622 5040

NAIEarleFurman.com

UBJ

On the Move

Journal Family Keeps Growing Community Journals is happy to be seeing some new faces around the office lately – and some familiar faces taking on exciting new challenges.

Promoted

Promoted

hired

hired

hired

h ired

Susan Clary Simmons

Jerry Salley

Richie Swann

Andrew Huang

Whitney Fincannon

Laura Linen

Promoted to executive editor of Community Journals’ three weekly publications: Upstate Business Journal, the Greenville Journal and the Spartanburg Journal.

Before her promotion, Simmons was editor of the Greenville and Spartanburg Journals, and began her eight-year tenure with the company in 2005 as Community Journals’ opinion writer. As executive editor, Simmons is responsible for the day-to-day editorial direction and planning of all content in the three publications and continues as the editorial opinion voice for the Journals community.

A Savannah, Ga., native, Simmons has more than 30 years’ journalism experience, 18 of those as a reporter and opinion writer for the Greenville News.

Promoted to managing editor of Community Journals’ three weekly publications.

Working with the executive editor, Salley is responsible for overseeing and coordinating all aspects of editorial production for the Upstate Business Journal, the Greenville Journal and the Spartanburg Journal. A native of Asheville, N.C., Salley joined Community Journals as assistant editor and staff writer in March 2012, prior to which he worked as a freelance writer and editor.

Joins Community Journals as art director of the Upstate Business Journal. Originally from Georgetown, S.C., Richie Swann accepted an offer from Community Journals to come back home from a two-year stint at Southern Living in Birmingham, Alabama. Richie will be bringing a fresh new approach to the design of UBJ. Aside from Southern Living, he has previously designed for Garden & Gun and DPS Sporting Club Development Company, a luxury real estate developer.

Richie is a Clemson alumnus (class of 2004) with a degree in graphic communications, so he should feel right at home here in the Upstate.

Hired as the assistant editor at TOWN Magazine, an Upstate lifestyle publication.

Huang is a graduate of Furman University, where he received a Bachelor of Arts degree in English. A native of Columbia, S.C., he returned to Greenville after spending six months abroad in Taiwan.

He enjoys writing, photography and weightlifting, and considers himself a “blossoming foodie.”

Hired as a graphic artist and member of the creative services team. Fincannon came to Community Journals after working as Graphic Designer at Swoozie’s. She received a BFA in graphic design from East Carolina University.

While a student, she had the opportunity to take an internship with the historic Hatch Show Print in Nashville, Tenn., letterpress-printing posters in their iconic design style. After graduating in 2009, she worked as a freelance designer and later a boutique manager, using design skills to help in their rebranding campaign. She has lived in Greenville since 2011.

Joins Community Journals as sponsorships and events coordinator.

Merging her media, creative and fashion backgrounds from Atlanta, New York, Chicago, and Paris, Laura has found Greenville and the Journal publications the perfect place to share this experience and learn even more.

Apart from working on events, you will also see her in the roles of contributor, stylist, wife and mother.

Photos by Greg Beckner

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Upstate business Journal

The Upstate Business Journal

UBJ

Social Planner

friday, february 8

NOW OPEN!

Entrepreneurial Readiness

Business Before Hours

USC Upstate – The George, 160 East St. John St., Spartanburg; 11:30 a.m.-1:30 p.m.

Commerce Club of Greenville, 55 Beattie Place, Ste. 1700, Greenville; 7:30-9 a.m.

Cost: $20. Attendees are invited to bring lunch; dessert will be provided.

Register: http://scwbc.net/events/ greenvillespartanburg/.

Open only to Chamber members.

Cost: $8.50 for those who pre-register online or $12 at the door.

Register: Commerce Club members contact Dot Drennon, ddrennon@greenvillechamber.org.

Call: Lorraine Woodward at 864-239-3742 for more information.

Economic Forecast Breakfast USC Upstate, Campus Life Center Ballroom, 800 University Way, Spartanburg; 8 a.m.

Speaker: Tim Quinlan, EconomistWells Fargo.

Cost: $25/Person, $200 Reserved Table (eight seats).

Register: www.spartanburgchamber. com or 864-594-5000.

monday, february 11

It’s about the cuisine, the ambiance… and all that Jazz.

tuesday, february 12

Early Morning LAUNCH Holiday Inn Express, 3821 Grandview Road, Simpsonville; 7:30-8:30 a.m.

Speaker: John Uprichard, Find Great People.

Topic: The young professional demographic in the Upstate.

Cost: Free to members, $5 for nonmembers. Breakfast provided.

Contact: Allison McGarity at amcgarity@simpsonvillechamber.com

GCS Roundtable: Closing your Biggest Deal-So Far

Power Event: Is Your Business Secure?

The Office Center at the Point, 33 Market Point Drive, Greenville; 8:30-9:30 a.m.

TD Convention Center, 1 Exposition Drive, Greenville; 7:30-9 a.m.

Speaker: Russ Davis, Sandler Sales Institute.

Call: Golden Career Strategies at 864527-0425 to request an invitation.

Panel of experts will break down what businesses need to know about the latest technology.

Single tickets: $30.

You’re going places.

Take us with you.

864-242-BLUE | 300 River St., Ste 203, Greenville TUES & WED: 5–11:30PM | THURS: 5PM–12AM FRI: 5PM–1AM | SAT: 6PM–1AM | FIND US ON 26 Upstate business journal February 8, 2013

Get access to local premium content and exclusive photos, videos and stories.

Only at: www.GreenvilleJournal.com.

REMEMBER THAT Corporate table: $275.

Register: http://www.eventbrite.com/ event/5038139210/es2/?rank=80#

SMALL BUSINESS ROUNDTABLE: Starting A Small Business Spartanburg Library, 151 South Church Street, Spartanburg; 9:15 a.m.

This seminar reviews (a) the personal assessment that all individuals need to make if they are seriously contemplating the work of an entrepreneur; (b) legal entity choices that a business owner must make in order to do business; (c) the 10 parts of an effective business plan, financial forecasting, and sources of funding.

Cost: Free to attend.

Register: online at workgroups.clemson. edu/SBDC_Workshops/form.php.

Contact: Beth Smith at es2@clemson. edu or 864-592-6318.

wednesday, february 13 Pelham Power Breakfast Carpet One, 226 Pelham Davis Circle, Greenville; 8-9 a.m.

Cost: Admission is free for Chamber members.

Register: www.greerchamber.com.

GSATC Learning Lunch Embassy Suites Hotel, 670 Verdae Blvd, Greenville; 11:30 a.m.-1 p.m.

Speaker: Jim De Piante, executive project manager at IBM Research.

Topic: “How IBM’s Watson Won ‘Jeopardy!’”

RSVP: http://www.gsatc.org

Mauldin Chamber Leads Group

101 East Butler Road, Mauldin; noon-1:00 p.m.

Cost: Free to attend.

Contact: Don Johnson at dfjj1141@yahoo.com.

Diversity Connections CityRange Steakhouse Grill, 774 Spartan Blvd., Spartanburg; noon-1:30 p.m.

Speaker Cynthia Powell, Send Out Cards.

Topic: Appreciation marketing.

Open to all members and guests.

Contact: Doug Gregory at 864-594-5000 or dgregory@ spartanburgchamber.com for more information.

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Resource Recess Simpsonville Chamber of Commerce, 211 North Main St., Simpsonville; noon-1 p.m.

Speaker: Julie Poncar, David Gilston Insurance Agency.

Topic: “Healthcare Reform: What Every Small Employer Needs to Know.”

Cost: Attendance is free and lunch is provided.

Contact: Allison McGarity at amcgarity@simpsonvillechamber.com.

Pink Collar Connection Workshop The Loft at Falls Park, 631 S. Main St., Greenville; 4-6 p.m.

Speaker: Local celebrity Kimberly Kelley.

Topic: “Making YOU a Brand.”

Mediterranean hors d’oeuvres and wine will be served.

Cost: Admission is $25 for members and $40 for non-members.

Register: http://www.femfessionals. com/FemCities/Greenville/Calendar/ Events/FEMCITY-GREENVILLE-%7CFEBRUARY-EVENT-1077.htm.

Mauldin Chamber of Commerce,

February 8, 2013 Upstate business journal 27

UBJ

Are you “Friends” with your employees?

LEE YARBOROUGH

Snapshot

the way it was..

Social Media is a huge asset to most businesses but can be an HR nightmare.

Many states have implemented laws restricting employer access of employees’ personal accounts. Plus the National Labor Relations Board (NLRB) has issued decisions that protect employee rights to converse via social media on workplace conditions as this is viewed as a “protected concerted activity.”

However, you will be just fine if you apply a little common sense and the manners your mother taught you.

Here are a few pointers:

Photo provided

• Don’t “friend” your employees. As a manager, you can’t be a buddy to everyone. It is fine to ask about your employees’ children in the break room, but you don’t need to see their online pictures. Give your employees space and respect their privacy.

• Don’t accept “friend” requests from your employees. If an employee asks to be your “friend,” decline the invitation.

There are other professional sites to network on such as LinkedIn. Remember, your employees need a manager not another friend.

The YMCA of Greenville had its beginnings in 1876. In the early days, the Y was focused on providing a wholesome, spiritual grounding for young men in the community, and a welcoming place to stay if they needed it. Bible study, social

• Have a Social Media Policy and review it often.

• Don’t ask for passwords. Never ask for the passwords to individual’s personal social media sites. Not only is this rude, it is illegal in many states.

activities, entertainment and education programs, sports and fitness helped to keep participants in shape spiritually, mentally and physically. In Greenville, this movement was led by local mill owners. A centralized Y on Coffee Street was built in 1912.

the way it is today

• Be careful when making hiring decisions. During the hiring process, most employers will look up the candidates online. If their social media sites are open to the public, then you have a right to look. However, be careful with the information you find. For example, if you find out a candidate is pregnant, that information can’t be used in the hiring decision.

Discrimination laws are still in place, regardless of how you obtain the information.

Photo provided

• Most importantly, have your HR department involved.

They are aware of the laws and the potential minefields; look to them for guidance. Social Media posts can be used in disciplinary matters, but consult with HR before proceeding.

Social Media is always evolving and as an employer, you need to evolve with it. By following these best practices, you can reduce the company’s liabilities and hopefully use the online tools to increase your bottom line.

Today the YMCA of Greenville has ten locations throughout the county. Since 1960, it has welcomed women into full membership. In fact, 51 percent of membership is female. The Y is still driven by its mission to follow Christian

M23A

669 N. Academy Street, Greenville, SC 864.679.6055 | 800.446.6567 | www.propelhr.com

28 Upstate business journal February 8, 2013

principles and develop all in spirit, mind, and body, and to turn no one away due to an inability to pay. The YMCA of Greenville serves over 50,000 in its many high-quality programs for children and adults.

Got an old photo you’d like featured in Snapshot?

Send an image file to snapshot@upstatebusinessjournal.com with a description of the photo and do your darnedest to identify any people in it.

UBJ

Markets and Actions

DealFlow

Langston-Black Real Estate, Inc. announced: Jeff Howell recently represented Lucky Strike Amusements LLC in the sale of their 1888-square-foot convenience store building (situated on .52 acres) located at 13780 East Wade Hampton Blvd., Greer.

NAI Earle Furman announced: David Feild and Tyson Smoak represented the landlord of a dental building currently under construction in Anderson on Greenville Hwy. at the corner of Wexford in leasing a 2,500-square-foot medical office space to Smith Dental Care of SC, Inc. Ted Lyerly and Jimmy Wright represented the landlord of 926 NE Main St., Simpsonville, in leasing a 1,606-square-foot retail space in suite A-2 to Black Belt Attitude School Inc. Tim Roller represented the landlord of 130 Plaza Drive, Forest City, in leasing

a 3,747-square-foot retail space to Distinx.

Stuart Wyeth represented the landlord of Greenville Business Center at 181 Johns Road, Greer, in leasing a 2,145-squarefoot flex space in Suite J to Commercial Flooring Solutions of SC LLC.

The Dow Jones Industrial Average just crossed 14,000 and is near an all-time high. Are we looking towards a new sustainable bull run, or will the financial markets collapse like they did the other two times they reached these heights?

Housing markets, while improving, are still anemic compared to historic norms. A slower recovery may be more sustainable. Lots of people are affected by housing including construction workers, insurance providers, realtors, attorneys, bankers, and lots more.

Most people upgrade appliances, furniture, and other items upon the purchase of a new home. Retail spending is impacted.

Low cost, plentiful energy is shaping up to be the big news story these days. Not so long ago there were fears of peak oil and energy shortages. Today, people are more concerned with environmental issues of production. The US is predicted to become a net energy exporter within 10 or 15 years.

Jon Good and Alexi Papapieris represented the landlord of Roper Center at 6020 Ponders Court, Greenville, in leasing a 5,250-square-foot flex space.

Companies are looking to expand refineries. Innovative ways are being considered to export natural gas. Communities in places like North Dakota are becoming boom towns and the price of gasoline seems fairly stable.

Stuart Wyeth represented the landlord of Park Central at 555 N. Pleasantburg Drive, Greenville in renewing a lease of a 3,145-square-foot office space in Suite 225 to McKinley Cooper & Co LLC.

Chinese workers are beginning to seek higher wages to buy some of the goods their factories have been producing over the last few years. As capital investment and transportation costs get factored in, wage costs become less of an issue for companies seeking to invest in the US. High corporate tax rates are still a drag.

Marsh/Bell Construction Company Inc. recently announced that they have been awarded a contract to build a new Starbucks on the campus of Clemson University. This new Starbucks will be located at the University Center.

Construction began on Feb. 4. The entire project will take 90 days to complete.

This low-cost energy is helping to fuel resurgence in domestic manufacturing. Many companies are beginning to find off-shoring too expensive and too risky. We read stories almost every day of companies moving their operations back to the US.

So if you’ve been invested over the past decade or so, you’ve seen the markets reach these levels before. Both times stocks fell by about 50%. Things do look different this time. Manufacturing recovery is a big deal. The housing recovery looks slow and sustainable. Energy may be the great game changer.

Low-cost, abundant energy lowers the cost of transportation and reduces the need for us to protect energy sources far from home. Risk of loss is always a real concern when investing, and we encourage you to thoughtfully consider your risk tolerance and individual financial situation when investing.

If you would like to further discuss our thoughts on the markets and how we can help you build a portfolio, please give us a call.

Markets rise and fall. How you react may mean more to your longterm financial health than any short-term movement. We strongly encourage you to plan thoroughly and invest often.

Christopher A. Brown, CPA, PFS has been helping people plan and save money since 1995. Visit our website at www.falegacy.com for more information or call 864-233-0808 to schedule a free consultation.

DEAL OF THE WEEK Hunter Garrett and John Staunton represented Carbures USA Inc. in leasing a 26,576-square-foot industrial space at 202 Beechtree Blvd., Piedmont.

February 8, 2013 Upstate business journal 29

UBJ

New to the Street

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1. Whiskerz Pet Sitting is a business in Greer that provides at-home care for pets for owners who are out of town on business travel or vacation, are working a long day, or just need their pet taken out for a daily walk. For more information, call 864-804-8966 or look at their Facebook page.

2. Wedding 101, a wedding planning resource library with complimentary service designed to educate and inspire brides and party-throwers alike, recently opened at 807 South Main St. in Greenville.

Professional wedding vendors such as photographers, caterers and floral designers will market their services through innovative and interactive vignettes, displays and portfolios.

Brides can gather ideas, explore vendor options, meet with professionals and receive one-on-one consultations from bridal experts for free at any time.

Their hours are Tuesday-Friday from 11 a.m.-5 p.m. and on Saturdays from 10 a.m.-3 p.m. Appointments are also

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available. For more information, visit www.greenville.wedding101.net or Wedding 101 on Facebook.

3. Stella Louise Boutique and Cosmetics recently opened at 215 W. Wade Hampton Blvd., Suite L, in Greer. The hours are Monday-Friday 9 a.m.-7 p.m. and Saturday 9 a.m.-5 p.m. For more information, visit www. facebook.com/stellalouiseboutique.

4. Diana Classic Children, Greenville’s favorite children’s boutique, recently moved to 21B Augusta Street next to Cocobella and across from Augusta 20 Boutique.

Diana Classic Children’s flagship location in Palm Beach, Fla., is consistently rated the No. 1 children’s store in South Florida. This upscale boutique carries clothing for boys and girls, newborn to tweens, nursery decor, toys, shoes and more. The hours are Monday-Saturday 10-5 and 12-5 on Sunday. For more information call 864-451-7782 or visit www. dianaclassicchildren.com.

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UBJ

Social

Last week, the United Way of Greenville County held its 2013 Legislative Breakfast at the Kroc Center. The United Way unveiled their 2013-2014 Public Policy Agenda, and attendees heard from elected officials on their priorities for advancing the common good in Greenville County.

Photos provided

Upstate

Business J O U R N A L

HOW TO REACH US 148 River Street., Suite 120 Greenville, SC 29601, 864.679.1200 Copyright @2013 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal (Vol. 2, No. 3) is published weekly by Community Journals LLC. 148 River Street, Suite 120, Greenville, South Carolina, 29601. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $65. Visit www.UpstateBusinessJournal.com. Postmaster: Send address changes to Upstate Business, 148 River St., Ste 120, Greenville, SC 29601. Printed in the USA.

PRESIDENT/Publisher Mark B. Johnston mjohnston@communityjournals.com Senior Vice President Alan P. Martin amartin@communityjournals.com UBJ Associate Publisher Ryan L. Johnston rjohnston@communityjournals.com eXECUTIVE Editor Susan Clary Simmons ssimmons@communityjournals.com MANAGING editor Jerry Salley jsalley@communityjournals.com

Marketing Representatives Lori Burney | Mary Beth Culbertson Kristi Jennings | Donna Johnston Pam Putman staff writers Cindy Landrum | April A. Morris Charles Sowell SENIOR BUSINESS writer Dick Hughes contributing writerS Jenny Munro | Jennifer Oladipo Jeanne Putnam | Leigh Savage

photographer Greg Beckner CONTRIBUTING photo EDITOR Gerry Pate MarketinG Katherine Elrod Marketing & EVENTS Kate Banner Billing Shannon Rochester PrODUCTION Holly Hardin Client Services ManagerS Anita Harley | Jane Rogers

designers Richie Swann, Kristi Adair

ADVERTISING DESIGN Michael Allen | Whitney Fincannon Caroline Reinhardt

EDITORIAL INTERNS Shelby Livingston | Casey Dargan

IDEAS, FEEDBACK, OPINIONS opinions@upstatebusinessjournal.com

February 8, 2013 Upstate business journal 31