INSIDE // X7 PRODUCTION BEGINS | GASTROPUB ON THE TRAIL | CHARITABLE GIVING IN 2018
JANUARY 5, 2018 | VOL. 7 ISSUE 1
How will tax reform affect the Upstate
THE RUNDOWN |
TOP-OF-MIND AND IN THE MIX THIS WEEK
VOLUME 7, ISSUE 1 Featured this issue: 500-acre mixed-use community planned for southern Spartanburg...............3 American-style gastropub Hare & Field to open in Travelers Rest...............13 Steps to financial recovery after Christmas spending........................................15
Last month, preproduction of BMW Group’s full-size X7 Sports Activity Vehicle began at Spartanburg County-based BMW Manufacturing Co. The preproduction models serve to “secure and optimize” future series production. The preseries vehicles are fitted with a camouflage wrap to conceal the final look. Read more on Page 4. Photo provided
WORTH REPEATING “Small businesses need more incentives to take risks.” Page 8
“The most important next step is to talk to your tax professional and find out what your strategy should be … and bring along a nice gift.” Page 10
“An unintended consequence of increasing the standard deduction is that charitable giving to local nonprofits may decrease.” Page 12
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VERBATIM
Signed, Sealed, and Delivered “ Cutting taxes for working families and making American business more competitive in the world economy is a great way to end 2017!” Sen. Lindsey Graham, R-S.C., in a Dec. 22 tweet, on the passage of the Tax Cuts and Jobs Act of 2017. Illustration by Kate Salley Palmer
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DEVELOPMENT
‘A Great Deal for Spartanburg’ Planning under way for new 500-acre mixed-use community TREVOR ANDERSON | STAFF
tanderson@communityjournals.com A global real estate and investment firm could bring hundreds of new homes and commercial growth to southern Spartanburg County. Walton South Carolina LLC, an affiliate of Canada-based Walton Group of Companies, has purchased about 500 acres near Southport and roads near Cedar Springs. The $3 million purchase, Walton’s first property acquisition in the Upstate, includes three undeveloped tracts near the Steris plant formerly owned by the Creal Family Limited Partnership. About 57 acres of the property lie within the city limits, with the remaining land in the county, according to public records. Anthony Sparrow, general manager of Walton’s Tennessee and Carolinas division, said the company is developing a master plan for the property, which it has named Southport Village. “During the past 10 years, we have purchased about 100,000 acres across the U.S.,” Sparrow said. “We focus on growth corridors. … We are in the beginning stages of planning for the property. We like the area and see a lot of potential for growth.” Sparrow said the company has had its eye on the Upstate since it acquired its first property in Charlotte, N.C., almost two years ago. He said job and income growth and the availability of affordable land are factors that make the region attractive for residential and commercial development. Earlier this month, the company told Builder magazine it anticipates a mixed-use plan for Southport Village that could include 860 single-family units, 300 multifamily units, and 22 acres for commercial use.
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The property would feature amenities such as recreation areas, parks, and open space, the company said. Walton touted the property’s proximity to Interstates 26 and 85 and to major employers, such as BMW Manufacturing Co. and Michelin North America. “Spartanburg not only provides Southport Village with a low cost of living and ideal mild year-round temperatures, it also offers superior connectivity and one of the state’s most business-friendly environments,” said Edward R. Fleming, president of Walton Development and Management’s East Region, in a statement. “The advantageous location of our property will most certainly benefit from the flourishing development in the area.” Speaking on behalf of the Creal Family Limited Partnership, Butch Genoble, a local real estate developer, said he believes the development will have a positive impact on Spartanburg. Genoble said it could help extend the city and county’s growth to outlying communities in the southern part of the county, including Pacolet and Pauline. “I think it’s a great deal for Spartanburg,” he said. 1.5.2018 | upstatebusinessjournal.com
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The addition of the X7 will bring the Upstate plant’s production lineup to five vehicles. Photo provided
MANUFACTURING
New Wheels BMW launches preproduction of X7 model at Upstate plant TREVOR ANDERSON | STAFF
tanderson@communityjournals.com Preproduction of BMW Group’s full-size X7 Sports Activity Vehicle has begun at its Upstate plant in Spartanburg County. The automaker said this step signifies the beginning of a 12-month countdown to the official presentation of the production model at the end of 2018. BMW said the preproduction model will undergo a variety of tests under partially extreme conditions. “We are proud to produce the BMW X7 here in Spartanburg, the home of our X models,” said Knudt Flor, president and CEO of Spartanburg County-based BMW Manufacturing Co., in a statement. “This is a very special vehicle, and our employees are looking forward to yet another member of the X family.” Flor noted the addition of the X7 will bring the more than 6 million-square-foot Upstate plant’s production lineup to five vehicles. Already BMW’s largest plant worldwide in terms of volume, BMW Manufacturing Co. represents a 4
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nearly $8 billion investment and is the assembly hub of the company’s X3, X4, X5, and X6 models. About 9,000 people work at the plant, which produces about 1,150 vehicles per day and was on track to assemble about 400,000 vehicles in 2017. In 2016, the plant produced 411,000 cars, the highest annual number since it began production in 1994. It exported a record 287,700 of those vehicles, about 70 percent of its total volume, through the Port of Charleston to customers in 140 markets worldwide, making it this country’s largest exporter of automobiles. BMW announced in June it will invest an additional $600 million in the plant and create 1,000 jobs during the next five years. The plant’s production network includes 235 suppliers in the U.S. Forty of those companies are in South Carolina. According to a 2014 economic impact study by the University of South Carolina’s Darla Moore School of Business, each job created in the plant results in
four jobs created elsewhere in the state. That means the plant supports about 36,000 jobs in the Palmetto State. BMW said the preproduction, or preseries, X7s are fitted with a camouflage wrap in order to conceal the vehicle’s final look. The preproduction models serve to “secure and optimize” future series production, the company said. X7 preproduction is currently being done on the same assembly lines as the X5 and X6 models. A specially trained team realizes the series production process for new modes at the plant and qualifies employees for future series production. BMW said the preproduction X7s will be handed over to development department specialists for homologation, registration, and diverse driving tests in the desert of Death Valley, Calif., or in the ice and snow of Scandinavia. The company said it anticipates releasing technical details about the X7, such as fuel consumption and carbon dioxide emissions, later this year.
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MANUFACTURING
Growing Jobs, Growing Wages Upstate ranks No. 2 for manufacturing jobs, study says ANDREW MOORE | STAFF
amoore@communityjournals.com A new study from SmartAsset has
“ With the rise of complex manufacturing, our state and our workforce have built a reputation as a global brand state — a state that not only makes things but makes them well.” Bobby Hitt, S.C Secretary of Commerce
listed the Greenville-Anderson-Mauldin area as the No. 2 best place in the country for manufacturing jobs. The New York-based financial technology company says the Upstate has experienced strong growth in manufacturing employment over the past few years, growing by 37.8 percent between 2010 and 2015. The growth in jobs is accompanied by growing wages. From 2014 to 2015, the average income for a manufacturing worker in the area grew by nearly 15 percent. In determining the top locations for manufacturing jobs, SmartAsset analyzed data for 483 metro areas. The company considered employment growth in manufacturing, income growth in manufacturing, density of manufacturing jobs, and housing costs. More than 1,800 manufacturers, including about 460 foreign compa-
nies, currently call the Upstate home, according to Upstate SC Alliance. That includes BMW Manufacturing Co., Bosch, GE, Fluor, AFL, Magna, and others. As reported in the Upstate Business Journal, the region’s increasing proficiency in several subsectors — advanced materials, aerospace, automotive, bioscience, and energy — continues to attract investment and jobs from new and expanding companies. “It’s impossible to overstate the role that manufacturing has played in transforming the economy of both the Upstate and South Carolina as a whole,” said S.C. Secretary of Commerce Bobby Hitt. “With the rise of complex manufacturing, our state and our workforce have built a reputation as a global brand state — a state that not only makes things but makes them well,” he added. “This reputation continues to attract industry leaders from around the world who now view South Carolina as an industrial powerhouse.”
Michelin North America announces new chairman and president, chief administrative officer Scott Clark has succeeded Pete Selleck as chairman and president of Greenville-based Michelin North America. Clark, who has been with Michelin for 21 years, assumed the role Jan. 1. Clark will be responsible for “all key customer-facing functions” of Michelin North America, including sales and marketing, quality, and technical and support chain units. For the past decade, Clark served as executive vice president of Michelin North America and chief operating officer of its passenger- and light-truck tire unit in the U.S., Canada, and Mexico. From 2005 to 2007, he served as senior vice president of Michelin’s heavy-truck tire unit in Asia.
Clark’s tenure with Michelin includes leadership stints in marketing, sales, and other functions for units in Europe, Asia, and North America. Michelin also has named Joanie Martin chief administrative officer of Michelin North America, a new role created by the company. Martin, who has been with the company for more than two decades, previously served as chief financial officer of Michelin North America. She will be responsible for critical business support functions, including communications, corporate development, finance, legal services, personnel, safety and environment, and other duties.
Scott Clark
Joanie Martin
Martin has also served as financial director and controller for Michelin’s passenger- and light-truck tire business in the U.S., Canada, and Mexico, as well as various leadership roles in the tax and audit functions for the company’s Greenville and Clermont-Ferrand operations. –Trevor Anderson
1.5.2018 | upstatebusinessjournal.com
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NEWS |
INFORMATION YOU WANT TO KNOW
AEROSPACE
AEROSPACE
Donaldson Field passes annual operations inspection
PG Aerospace opening facility in Pickens County
Donaldson Field, a general aviation airport at the South Carolina Technology and Aviation Center (SCTAC) in Greenville, has passed its yearly operations inspection. The Federal Aviation Administration conducts an annual inspection of Donaldson Field to confirm it is complying with its operating certificate and certification manual. The inspection includes condition of runway and taxiway pavement, markings, and lighting; accuracy and completeness of records and training of personnel; and aircraft-fueling operations. Inspectors also review the airport’s emergency plan. “Passing FAA inspection speaks to the hard work and dedication of our staff,” said Danny Moyd, COO at SCTAC. Donaldson Field is a major aircraft maintenance and modification center providing everything from major repairs to routine inspections. Other uses include air charters, hangar and tie-down rental, flight lessons, and pilot and aircraft supplies. The site is also home to an Army Aviation Support Facility of the South Carolina Army National Guard that opened in 2014. –Andrew Moore
PG Aerospace, a precision parts manufacturer for the automotive and aerospace industries, is opening a new facility in Pickens County. The New Jersey-based company will be moving into a 15,000-square-foot facility at 107 Alison St. in Liberty, according to the S.C. Department of Commerce. The company is expected to create 22 new jobs. No investment cost was provided. “We are extremely excited to be bringing 22 jobs to the city of Liberty. We would like to thank Alliance Pickens, the S.C. Department of Commerce, the staff at Parker Poe, and more for supporting us as we locate our new operations in Pickens County,” said PG Aerospace CEO Ana Prodani. According to a press release, PG Aerospace “is a leader in research and development, custom products, stampings, assemblies, laminates, and more.” Those interested in joining the company should contact Ana. Prodani@ProgasketMFG.com. “It is always exciting news when we can announce that another worldclass company is moving to Pickens County. We are all thrilled to welcome PG Aerospace to the Pickens County family of creative, innovative, and extraordinary companies who call Pickens County their home, and we look forward to celebrating their continued success,” said Pickens County Council Chairman Roy Costner. –Andrew Moore
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RESTAURANTS
Due South Coffee Roasters opens temporarily in White Duck Taco Shop Due South Coffee Roasters closed its Taylors Mill location before Christmas and reopened Dec. 26 in Hampton Station’s White Duck Taco Shop, 1320 Hampton Ave. Ext., Greenville, while its new coffee shop just across the walkway is under construction. The temporary counter, jokingly named the Due South Duck Blind, in White Duck is full service, offering Due South’s regular line of espresso drinks and coffees from 7 a.m.-2 p.m. each day, even when the restaurant is closed on Mondays. Due South co-founder Patrick McInerney says construction in the new space should be completed this winter. “Even though we’ve only just dropped off the last load to Hampton Station, it already feels like home,” McInerney says. “Richard and Dan at White Duck Taco have welcomed us with open arms and graciously allowed us to set up a full-service coffee bar inside their space while we work to complete the build-out of our new one.” Due South announced in October it would be moving from its 4,000-square-foot original home in Taylors Mill to a 2,630-square-foot space across from White Duck in 2018. The Hampton Station space will be more of a café and roastery, with more focus on the production side, rather than the co-working atmosphere in the mill. Due South customers will be able to use Hampton Station common areas along with White
Duck and Birds Fly South Ale Project customers. “Moving a business is a monumental task with lots of moving parts. Having a community like Hampton Station to support us through this transition has made it infinitely easier. We couldn’t be more grateful to be a part of such a supportive and collaborative community,” McInerney says. Due South’s roastery output has grown significantly — 40 percent since last year at this time — and the move will bring them much closer to their local accounts, such as Furman University Library, Limoncello, Joe’s Place Bookstore, Happy + Hale, The Village Grind, Lowes Foods, and others. Less than a mile away from Hampton Station, a second Due South location is already under construction at The Commons, located within the new proposed City Park at 159 Welborn St. Located in a 20,000-square-foot open marketplace along the Greenville Health System Swamp Rabbit Trail, Due South Coffee will join Feed & Seed, SC Bakeroom, and The Community Tap, as well as a myriad of food vendors with a full-service cafe concept. Until the roaster is up and running at Hampton Station, Due South will be roasting at the local Ally Coffee facility. –Ariel Turner
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SYNNEX’s Larocque receives Order of the Palmetto Award Peter Larocque, president of North American technology solutions for Greenville’s SYNNEX Corp., was recently named the recipient of the Order of the Palmetto Award, the state’s highest civilian honor. Larocque received the award during his company’s fundraising initiative, SYNNEX Share the Magic. “I am honored to receive the Order of the Palmetto award,” Larocque said in a press release. “In addition to making a significant economic impact in South Carolina, my team and I feel fortunate to have made a positive impact on the lives of children and families in need. Each year, we aim to do more, and I look forward to continuing to raise the bar.” Larocque has been with SYNNEX for more than 33 years. He moved to Greenville in 1996 and led the opening of the company’s North American distribution headquarters in 2003. Under his leadership, SYNNEX has added 40,000 square feet to its local campus and more than 100 IT-related jobs. It has also been selected as one of the Best Places to Work in South Carolina for the past seven years. In 2011, Larocque founded SYNNEX Share the Magic. The annual fundraiser has raised more than $8.5 million for South Carolina children struggling with life-threatening illnesses, abuse, neglect, or developmental delays, according to a press release. SYNNEX recently announced it has raised more than $1.8 million this year for four Upstate charities: A Child’s Haven, Clement’s Kindness, Make-AWish South Carolina, and Pendleton Place. –Andrew Moore 1.5.2018 | upstatebusinessjournal.com
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COVER |
WHAT DOES TAX REFORM MEAN FOR THE UPSTATE?
Returns on Tax Reform Upstate business community optimistic new law will fuel economic growth in region, state WORDS BY TREVOR ANDERSON
Love it or hate it, tax reform has arrived. On Dec. 22, President Donald Trump delivered on his promise to overhaul the nation’s Internal Revenue Code when he signed into law H.R.1, known as the Tax Cuts and Jobs Act of 2017. The Republican-led legislation is the first comprehensive rewrite of the code since 1986 under President Ronald Reagan. While its passage has polarized the public, the bill features provisions Republican leaders believe will give Americans a boost and help businesses of all sizes grow, invest, and create jobs. And it’s the latter that has Upstate business leaders enthused about its potential to ignite economic development across the region and South Carolina. For instance, the bill reduces the federal corporate tax rate for businesses from 35 percent to 21 percent. When coupled with the average corporate income taxes levied by individual states, U.S. businesses were previously taxed at 38.91 percent, according to the Tax Foundation, a nonprofit, independent tax-policy organization. That is the fourth-highest rate in the world behind the United Arab Emirates (55 percent), Comoros (50 percent), and Puerto Rico (39 percent). The Tax Foundation said it expects that the new legislation, during the next decade, will boost the nation’s gross domestic product by 1.7 percent and wages by 1.5 percent, while creating 339,000 jobs. “This is positive news for a number of industries,” said Brian Gallagher, vice president of marketing for Greenville-based O’Neal Inc., an integrated planning, design, and construction firm. “The lower corporate tax rate means there’s more money for [companies] to invest in their businesses,” added Gallagher, who is also the outgoing chairman for the Associated Builders and Contractors of the Carolinas, an organization that represents more than 500 members in North Carolina and South Carolina. “For manufacturing, which is a big industry here in the Upstate, it’s really vital for companies to have the capital to
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invest in new facilities, expansions, equipment, and to hire new people.” For individuals, the bill ushers in a number of changes, such as increasing the standard deduction, increasing the child tax credit and creating a new family tax credit, and establishing a 25 percent maximum rate on the business income of individuals. In addition to slashing the corporate tax rate, the bill has some provisions for businesses that include the following:
• Allowing increased expensing of the costs of certain property
• Limiting the deductibility of net interest expenses to 30 percent of the business’s adjusted taxable income
• Modifying the taxation of foreign income • Imposing an excise tax on certain payments from domestic corporations to related foreign corporations
Most of the provisions went into effect Jan. 1. Gallagher said it’s most likely that large public companies will use tax savings to repurchase shares of their own stock, which he said probably won’t have a big impact on the Upstate. But he added that there’s a high probability that small to midsize companies, manufacturers in particular, will use the additional capital to invest immediately. That could translate into Upstate companies expanding, purchasing equipment, and hiring. The bill also allows businesses to write off capital investments as deductions the year in which they are incurred, instead of depreciating them over several years. Gallagher said another provision of the bill that could generate growth in the Upstate is one that allows businesses a one-time opportunity to repatriate corporate profits earned and held overseas at a 10 percent tax rate. With the deduction of state and local property taxes capped at $10,000 under the new plan,
Gallagher said South Carolina could become an even more attractive place for businesses to open new facilities or relocate their operations and employees. “We’re moving in the right direction,” he said. “It’s certainly going to make us more attractive as a destination — a place where companies want to come and invest. … We’re a business-friendly state with local communities that like to partner with international companies. I think it all bodes well.” Robert Maynard, founder and CEO of the Charlotte, N.C.-based breakfast-and-brunch concept Famous Toastery, which opened its first Upstate location in Greenville earlier this year and plans to open more in the region, said he is in favor of the new tax plan. “For small-business owners, the market going to 25,000 means nothing,” Maynard said. “They don’t own shares of McDonald’s. … [Tax reform] can be the change we’ve all been looking for. We need momentum. Small business is the backbone of this country. Apple, Starbucks, and McDonald’s were all small businesses. Small businesses need more incentives to take risks.” Maynard said the restaurant industry has been under immense pressure for the past few years from new National Labor Relations Board rules, Department of Labor overtime rules, the Affordable Care Act (also known as Obamacare), and the ongoing battle to increase the minimum wage. “I look at it this way: If it doesn’t pass and there isn’t a major change, business is screwed,” he said. “There is a relief that there’s not more regulation coming. For a small business, every dollar counts. This puts a cork in the drain of regulation. Is it the end-all, be-all? I don’t think so. There’s still work to be done. But it doesn’t matter what side of the aisle you’re on. The reality is if you have more money in your pocket, you have more money to invest in growth and creating new jobs.” Maynard said he believes tax relief for individuals could boost consumer optimism and sales that will also benefit small businesses. “I think it’s a farce to say that something like this happens and it changes everything,” he said.
WHAT DOES TAX REFORM MEAN FOR THE UPSTATE?
“What I’m seeing is a cautious optimism. It will help in the short term. It will help businesses reinvest, pay extra bonuses. You’ll see more of that.” The franchise industry is another sector in the Upstate that could benefit from the tax reform. “Anytime you can lower taxes for business, it’s
going to increase not only the bottom lines for owners but their ability to do things with that capital,” said Sean Fitzgerald, chief development strategist for 1851, a content marketing and franchise development solutions provider. “It will be great to see how [tax reform] impacts the franchising industry and with people starting
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businesses,” Fitzgerald added. “Under the previous administration, the franchise industry saw a lot of pressure. The perception was that franchises are large corporations. In fact, these are local small-business owners who are impacted tremendously. … I think this will help tip the scales a little bit.”
$ Effects of the tax reform bill on business / infrastructure / international trade CORPORATE TAX RATE • Reduced to 21 percent, effective after Dec. 31, 2017, with adjustment for excess tax reserves FAMILY AND MEDICAL LEAVE CREDIT (expires after Dec. 31, 2019)
• Provides credit equal to 12.5 percent of wages paid during period in which employees are on family or medical leave if payment rate is at least 50 percent of normal wages • Credit is increased by 0.25 percentage points for each percentage point payment rate rises above 50 percent • Requires substantiation by Treasury for certain employers claiming credit AIRCRAFT MANAGEMENT SERVICES • Exempts certain payments by aircraft owners for maintenance and support services from air transportation excise taxes. CONTRIBUTIONS TO CAPITAL • Removes from definition of contribution to capital any contribution in aid of construction or by customer/potential customer, as well as contributions by governmental entities or civic groups. S CORPORATION CONVERSIONS TO C CORPORATION • Allows converting S corporation to spread tax impact of switching from cash accounting to accrual accounting method over six years in equal installments (applicable to corporations with greater than $25 million three-year average gross receipts) TAX CREDIT BONDS • Authority to issue New Clean Renewable Energy Bonds, qualified energy conservation bonds, qualified zone academy bonds and qualified school construction bonds repealed
PASS-THROUGH BUSINESSES (All provisions effective through Dec. 31, 2025)
• 20 percent deduction for domestic nonservice income, capped at 50 percent of taxpayer’s total share of W-2 wages paid by the business. • Limitation on services-related income and wage cap is phased in beginning at $157,500/$315,000 (20 percent deduction is scheduled to expire after 2025 under the Act, unless renewed before then). • Wage cap is modified to equal the greater of 50 percent of W-2 wages paid or 25 percent of W-2 wages plus 2.5 percent of the taxpayers’ basis of depreciable property purchases. • Full deduction allowed for services-related income if taxable income does not exceed $250,000/$500,000, phased out over the next $50,000/$100,000. Definition of services is modified to exclude engineering and architecture, and deduction is made available to trusts and estates. • Active pass-through losses disallowed in excess of $250,000/$500,000. • Publicly traded partnership distributions, agricultural and horticultural cooperatives, and qualified Real Estate Investment Trust and cooperative dividends are eligible for deduction. NET OPERATING LOSS DEDUCTIONS • Limited to 90 percent of taxable income, declining to 80 percent beginning after Dec. 31, 2017, with unlimited carryovers permitted, except for property and casualty insurance losses for which 20-year carryforwards are maintained • Special carryback provisions are repealed, other than two-year carryback for certain farm or property and casualty insurance losses
“TERRITORIAL” TAX REGIME • 100 percent deduction for foreign-source dividends received by domestic corporations TREATMENT OF DEFERRED FOREIGN INCOME UPON TRANSITION TO TERRITORIAL REGIME • “Deemed” taxes are imposed at rates of 15.5 percent and 8 percent, respectively • For companies electing installment payments, 8 percent of tax liability is required for first five years, rising to 15 percent in year six, 20 percent in year seven, and 25 percent in final year • Imposes 35 percent “recapture” tax on dividends received by companies that enter into inversion transactions within 10 years after date of enactment
What’s the Difference? TAX CREDIT VS. TAX DEDUCTION Tax credits provide a dollar-for-dollar reduction of your income tax liability. That means that a $1,000 tax credit saves you $1,000 in taxes. Tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For instance, if you are in the 25 percent tax bracket, a $1,000 deduction saves you $250 in tax (0.25 x $1,000 = $250). Source: Internal Revenue Service
For the effects of the tax reform bill on individuals, go to upstatebusinessjournal.com
What changed (was repealed) and what didn’t REPEALED • Corporate Alternative Minimum Tax • Like-kind exchanges (repealed other than for real property not held primarily for sale) • Tax-free rollover of capital gain into Small Business Investment Company • Capital gains on self-created intangible property (repeals preferential rates) • Deduction for local lobbying expenses
NO CHANGE FROM PRESENT LAW • Work Opportunity Tax Credit • New Markets Tax Credit • Credit for disabled employee access • FICA tax credit for tipped workers • Employer-provided child care credit • Contingency fees
Source: CQ Roll Call, an Economist Group business, that connects advocacy, legislative tracking, and news and analysis for access to all parts of the policy process. 1.5.2018 | upstatebusinessjournal.com
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OPINION |
VOICES FROM THE BUSINESS COMMUNITY, HEARD HERE
A Local Impact What the Tax Cuts and Jobs Act of 2017 means for Upstate business By JASON ZACHER senior vice president of business advocacy, Greenville Chamber
On Dec. 19, congressional Republicans tied a ribbon on what they believe was a great Christmas gift for American business
– the Tax Cuts and Jobs Act of 2017. This bill is not the massive simplification of the tax structure that was promised early on, but it is the largest modification to the federal tax code since “Top Gun” was No. 1 at the box office. More than 4 out of 5 of our chamber investors are small businesses, and most should see a substantial tax cut. Our investors told us they had four major goals for tax reform, and we worked with our congressional delegation to ensure those needs were heard. First, cut the pass-through tax rate that penalizes many small businesses. Second, investors that were organized as corporations wanted a cut in the corporate tax rate. Third, some of our manufacturers wanted the ability to repatriate cash that is sitting overseas. Fourth, our larger businesses wanted the worldwide tax system scrapped for a territorial system. Check. Check. Check. And check. Let me first write that I’m not a tax professional. Before you fully unwrap your congressional Christmas gift, go get your accountant or tax professional a nice gift, and sit down to plot your business’s strategy in the new tax climate. I’m going to focus on what this reform means for businesses. Everyone’s personal taxes are different, so to figure out what the bill means to your 1040, call an accountant.
So, what is in the bill? • The corporate tax rate was slashed from 35 percent to 21 percent. This sliver of the bill enjoyed bipartisan support and brings America’s tax rate in line with other major industrialized nations. • Individual tax rates were cut across the board, so small businesses that operate as pass-through entities will see a tax cut. • There is a new 20 percent deduction for pass-through entities: sole proprietorships, partnerships, LLCs, and S corporations. The deduction is on the first $315,000 of joint income earned as part of a passthrough business (for single filers, $157,500). So, if a local boutique earns $200,000 and the owner files a joint return, then the owner will not pay taxes on $40,000 of his income. That deduction is on top of the overall lower tax rates for individuals as mentioned above. This is a major victory for our area’s small businesses. • For larger pass-throughs with joint income above $315,000, the deductions are restricted. It is phased out for professional services, including health, law, consulting, athletics, or any business where the principal asset is the “reputation or skill” of its employees. It is also restricted based on wages paid or capital invested by the business owner. Again, talk to your professional to see how it may impact your company. • There is expanded ability for small businesses to immediately write off new capital expenditures. Currently, small businesses may deduct the purchase of new equipment immediately, subject to some restric10
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Some Upstate legislators, such as Rep. Tommy Stringer of Greer, are hoping to follow the federal lead and pass a broader tax reform at the state level. Time will tell whether the General Assembly has the appetite to tackle that in 2018.
tions. Under the new bill, these limitations are waived for five years and are open to all businesses. • The legislation imposes new restrictions on the ability of large businesses to deduct net interest. However, businesses with gross receipts of less than $25 million may still deduct interest expenses. • The corporate alternative minimum tax was repealed. • Congress made the first cut in alcohol excise taxes since the Civil War. • There are a number of technical changes to items such as bonus depreciation, research expenses, partnership rules, S-corp conversions, and the like.
What happens next? The IRS will change withholding tables as early as February, and nearly every employee should see an increase in take-home pay. Some of the more obscure and technical provisions of the legislation will probably need Treasury Department guidance or rules, which would take months. The South Carolina General Assembly convenes Jan. 9, and the Department of Revenue will need to confer with budget writers to see how state tax law may need to be tweaked to conform to the new federal rules. Some Upstate legislators, such as Rep. Tommy Stringer of Greer, are hoping to follow the federal lead and pass a broader tax reform at the state level. Time will tell whether the General Assembly has the appetite to tackle that in 2018. As I wrote at the beginning: The most important next step is to talk to your tax professional and find out what your strategy should be … and bring along a nice gift.
NEWS AND TIPS FOR YOUR PERSONAL BOTTOM LINE
| YOUR MONEY
Dollars and Sense The state of wealth management after tax reform By WES BOYCE vice president, Nachman Norwood and Parrott
Chances are, you have heard about the recently signed tax bill, commonly referred to as the Tax Cuts and Jobs Act, which was passed by Congress Dec. 20 and signed into law by President Donald Trump on Dec. 22. This act represents the most substantial change of the federal tax code in more than three decades and comes with a significant $1.5 trillion tax cut. From corporate America to high-net-worth individuals to the middle class and beyond — this act affects all parties. So, what does this mean for you? Lower tax rates and brackets According to the Thomson Reuters Checkpoint Special Study on Individual Tax Changes, the act reduces tax rates and adjusts income brackets for most taxpayers, including individual filers and married couples filing jointly. The number of individual tax brackets remains at seven, and almost all seven received cuts, meaning many of the current rates, from 10 percent for the lowest bracket to 39.6 percent for the highest earners, will change. The number of estate and trust brackets decreased from five to four, each with slightly lower rates. These adjustments became effective Jan. 1. These changes do not affect the special tax rates or brackets for long-term capital gains and qualified dividends as it applies from 2018 to 2025. Changes to standard deductions and personal exemptions The new act nearly doubles the standard income tax deduction for individuals and married couples filing jointly. For single taxpayers, the standard income tax deduction was $6,350 and is now $12,000; it went up to $24,000 from $12,700 for married couples filing jointly. However, these increases will not take place when you file 2017 taxes in 2018. They won’t kick in until you file in 2019, so don’t budget around that big tax refund just yet. Additionally, personal exemptions are eliminated for 2018 through 2025, but at the same time, the child tax credit will be increased to $2,000 from $1,000 per qualifying child with a $500 credit for qualifying dependents.
Loss of interest deductibility on large mortgages as well as for some uses of home equity lines For homes purchased in 2018 through 2025, the existing $1 million limitation is reduced to $750,000. Additionally, deductions are no longer allowed for interest paid on home equity loans for 2018 through 2025. This does not apply to existing mortgages prior to the law passing.
young or school-age children as the new act provides more ways to use 529 college savings plans to support K-12 education. Previously, 529 plans could be used only to cover costs for college. The new law expands the qualified use of 529 accounts by allowing tax-free withdrawals for public, private, or religious schooling. Note, there is a limit of $10,000 per year, per child, for these K-12 education expenses.
Significant tax changes for “pass-through businesses” Pass-through businesses, including partnerships, LLCs, and S corporations that pay taxes according to the individual tax rate schedule, may now be allowed a 20 percent reduction in pass-through income, subject to limitations. The goal of this is to cap the business tax rate at 25 percent, rather than having to pay the higher typical income tax rate. Personal service partnerships and sole proprietorships are specifically excluded from this rate reduction.
The bottom line It’s a challenge to understand the complexities of the new tax law, let alone determine your next steps to ensure you are making the best financial decisions for you and your family. The act’s provisions are now in place and the clock is ticking. It’s essential to work with your financial adviser to support your tax adviser about steps you may want to consider. The act’s wide-ranging provisions may affect how you approach many key financial decisions moving forward.
Estate and gift tax exemptions doubled The act further limits the reach of the federal estate and gift taxes to an even smaller subset that would mostly affect wealthy taxpayers. There would be temporary doubling of the exemptions from about $11 million to about $22 million for married couples until the end of 2025, reverting to current law in 2026. This change will have a significant effect on both testamentary and lifetime estate planning. Education savings and deductions There are several benefits to parents with
Wes Boyce is vice president of Nachman Norwood and Parrott and joined the financial services industry in 1998. Wells Fargo Advisors Financial Network is not a legal or tax adviser. However, its financial advisers will be glad to work with you, your accountant, tax adviser, and/or lawyer to help you meet your financial goals. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Nachman Norwood and Parrott is a separate entity from WFAFN. 1.5.2018 | upstatebusinessjournal.com
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OPINION |
VOICES FROM THE BUSINESS COMMUNITY, HEARD HERE
Thinking About Charitable Giving? Consider establishing a donor-advised fund at the Community Foundation of Greenville By BOB MORRIS president, Community Foundation of Greenville
As of Dec. 22, the Tax Cuts and Jobs Act has been signed into law by President Trump. From a charitable perspective, the bill is forecasted to have a detrimental effect on philanthropy, with the Council on Foundations estimating that a decrease in charitable giving could be between $16 billion and $24 billion annually. An unintended consequence of increasing the standard deduction is that charitable giving to local nonprofits may decrease. Ann Carrns of the New York Times explains, “Under the new bill, the standard deduction — the amount taxpayers can subtract from their taxable income without listing, or itemizing, deductions on their tax returns — will rise to $12,000 for individuals and $24,000 for married couples. That means people who are close to the cutoff may stop giving altogether, as they may no longer see tax savings from their giving. Or they might consider pooling their gifts in certain years to beat the expanded standard amount and
maximize their tax savings through itemization.” Carrns draws the following conclusion: A donor-advised fund may provide an ideal solution. Donor-advised funds — similar to a personal private foundation except without all the legal and accounting costs — allow donors to contribute money and take a tax deduction in the same year and then pay the money to selected charities over time. If you were considering establishing a donor-advised fund, the Community Foundation of Greenville would be happy to help you. (It may also be the right time to add to the fund you already have with us.) For example, someone could establish a donor-advised fund in 2018 and “bunch” several years of donations into one year, take the tax deduction, and have the fund pay out donations annually in subsequent years. This would allow donors to support charities of their choice annually without itemizing annually. Mark Cooter, board member of the Community Foundation of Greenville and managing partner of accounting firm Cherry Bekaert, agrees that a donor-advised fund may provide an ideal solution. “Donors may make a gift of cash or appreciated
stock but should consult with their accountant on whether accelerating donations in one year to cover multiple years of giving makes sense for their personal situation,” he says. At the Community Foundation of Greenville, we believe that endowments will become even more important to local charities because they provide permanent annual support. We recognize that the opportunity for planned gifts remains unchanged, as the motivation for a planned gift has always been rooted in a personal passion for a charity’s mission, while tax incentives have remained secondary. Greenville has a long history of being a generous community. Look no further than Falls Park, the Peace Center, or the Kroc Center for examples of the commitment to improving our community. By establishing a donor-advised fund at the Community Foundation of Greenville, you may realize tax savings and increase the impact of your giving while also being a part of our work to enhance the quality of life in Greenville for all citizens. Please contact me at 864-233-5925 or rmorris@cfgreenville.org if I can be of assistance to you now or in the future.
HERE, YOU’RE ALWAYS SOMEBODY’S TYPE. Human blood is divided into one of four main blood types (A, B, AB, and O) and are based on the presence or absence of specific antigens on red blood cells. The need for your specific type is always in need, and donors are the only source for this life saving gift. #idonateblood #isavelives #givelife
Sharing Life, Saving Lives 12
UBJ | 1.5.2018
864.255.5000
TheBloodConnection.org
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
ARIEL TURNER | STAFF aturner@communityjournals.com |
@arielhturner
Hare & Field to open on GHS Swamp Rabbit Trail in TR The owners of Farmhouse Tacos in Travelers Rest are planning to open Hare & Field, an American-style gastropub, this winter within walking distance from the taco shop that opened almost exactly a year ago. Chris and Katie Williamson signed a lease in October for 327 S. Main St., Travelers Rest, in the former Duke’s Doggs, which sits directly on the Greenville Health System Swamp Rabbit Trail. Pete Brett, David Sigmon, and Matt Vanvick of Coldwell Banker Commercial Caine represented the tenant. “We love the tacos but always had this need to do more than just tacos,” chef Chris Williamson says. “The menu we are going to put forward will be very chef-inspired.” The location on the Swamp Rabbit Trail is an added perk, and Hare & Field will take advantage of that, with ample bicycle parking and an outdoor patio that will seat about 30 people at a small bar and tables. Inside the cozy 950-square-foot interior, 40 seats will be divided among the bar, leather booths, and tables. “Hare & Field is the perfect place for some refreshment from the trail or a casual, elevated dining experience,” Williamson says. The menu will showcase “urban comfort food,” consisting of small plates, casual entrees, and “A Really Good Burger” – Benton’s bacon; house beef grind combining short rib, chuck, and sirloin; “awesomesauce”; and a handmade brioche bun.
Specific menu items include Korean barbecue steamed buns, salmon rillettes, pimento cheese and hot pepper jelly, fish and chips, bistro steak and frites with blue cheese butter and red wine and shallots jus, and a rabbit sausage topped with kimchi as an elevated nod to the former hot dog stand. A main feature will be the beer and wine selections, including both European and domestic varieties. The wine list, especially, is important to the Williamsons, self-declared “winos,” who got engaged under the Eiffel Tower and were married on a California vineyard. They’ve also teamed up with Brewery 85 to offer a “Trail Ale” custom-brewed for Hare & Field that will be on draft all the time. The bar offerings will not include liquor, as that’s a highlight of Farmhouse Tacos. Two Farmhouse Tacos employees from day one will also oversee the new restaurant — Chelsea Joseph as director of operations, and Melissa Plumley as culinary director. They will be hiring a chef de cuisine and chef de partie for Hare & Field. Williamson says having two committed managers along with dedicated staff from Farmhouse who want to support this new project has made the process that much easier this time around. Construction should be finished the first of February if all goes as planned, and they’ll spend a good amount of time training before opening, Williamson says.
| SQUARE FEET
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SUITS AND SPORT COATS
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35% to 70% Off SPORTSWEAR
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864-244-1760 | 864-616-7681
1.5.2018 | upstatebusinessjournal.com
DEALMAKERS |
COMMERCIAL REAL ESTATE TRANSACTIONS IN THE UPSTATE
PINTAIL CAPITAL PARTNERS ANNOUNCES THE FOLLOWING TRANSACTIONS:
Nelson Garrison was the agent in the sale of 1.4 AC located at 3608 Fernandina Road, Columbia.
Tyson Smoak was the agent in the lease of 2,000 SF located at 110 N. Main St., Greenville, by Galloway Property Group to Berkshire Hathaway HomeServices, C. Dan Joyner.
Bryon Culbertson was the agent in the lease of 1,200 SF of office space located at 413 Vardry St., Greenville, to CCFT Rapid Ready LLC.
Alex Phillips was the agent in the sale of 0.092 AC located at 300 Regent Park Court, Greenville, by Regent Park Court LLC to Upstate Palmetto Development LLC. BERKSHIRE HATHAWAY HOMESERVICES C. DAN JOYNER REALTORS ANNOUNCES THE FOLLOWING TRANSACTIONS:
Matt Carter and Craig Leduc were the agents in the sale of a 15,000-SF office building located at 135 Edinburgh Court, Greenville, to MB4 Midtown LLC. Joe Teague and Hays Reynolds were the agents in the lease of a 900-SF office suite located at 3300 Pelham Road, Suite 102, Greenville, to Creative Engineers. Joe Teague was the agent in the lease of a 1,500SF retail space located at 1791 Woodruff Road, Greenville, to Local Map Co. Bryon Culbertson was the agent in the sale of 9,000 SF located at 721 Curtis St., Simpsonville, by OHI Assets to Lakefield Properties LLC. Michael Joseph was the agent in the sale of industrial land at 301 Woodruff Road, Greenville, to Mr. Simmons. 14
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Wayne Smith was the agent in the lease of a 16,000-SF office building located at 208 Pennsylvania Ave., Greer, to Units Mobile Storage of Greenville LLC. Greg Huff was the agent in the sale of 3,750 SF located at 523 Sulfur Springs Road, Greenville, by the owner to LeMesa Del Padre Church. Bryon Culbertson was the agent in the lease of 2,270 SF located at Butler Road, Maudin, by Landlord NV LLC and Tenant ProConsultants. LEE & ASSOCIATES ANNOUNCES THE FOLLOWING TRANSACTIONS:
Ashley Trantham was the agent in the lease of 6,400 SF located at 197 Ridgeview Center Drive, Duncan, by 197 Ridgeview LLC to R.F. Knox Company Inc. Darath A. Mackie was the agent in the lease of 3,100 SF located at 4 McDougall Court, Mauldin, by R&J Investments Inc. to Greenville Awning Company. Randall Bentley and Andrew Harill were the agents in the lease of 2,901 SF located at 1540 Wade Hampton Blvd., Greenville, by Jack E. Shaw to Venture Mattress Inc. Randall Bentley and Chad Stepp were the agents in the
lease of 4,497 SF located at Patewood Drive, Greenville, by Patewood Holdings LLC to Bankers Life and Casualty Company. Randall Bentley was the agent in the lease of 10,937 SF located at 1920 Grandview Drive, Simpsonville, by Assett Enterprises to Blind John LLC. Randall Bentley was the agent in the sale of 10.05 AC located at 301 Woodruff Road, Greenville, by Clay C. Jones III and Loretta R. Jones to Greenville Adventure Center LLC. Deanna Hudgens was the agent in the lease of 3,410 SF located at 2475 Boiling Springs Road, Boiling Springs, by Costner Partners LLC to Boiling Spring Rising LLC Fresh Asian Bistro. Randall Bentley and Ashley Trantham were the agents in the lease of 2,700 SF located at 501 Richardson St. Ext., Simpsonville, by E-Power Trading LLC to Sunny Days Entertainment LLC. Randall Bentley was the agent in the lease of 14,000 SF located at 112 Haywood Road, Greenville, by 112 Haywood Road LLC to Fore 112 LLC. Randall Bentley was the agent in the sale of 2.8 AC located at 3702 Highway 72/US 221 E, Greenwood, by Thomas Lumley, Ted Conrad, and Laura Lumley to Tylan Planation Properties LLC. Randall Bentley was the agent in the lease of 20,970 SF located at Business Parkway, Greer, by Lift Truck Partners SC LLC to Santasalo Gears Inc.
Randall Bentley and Darath A. Mackie were the agents in the lease of 6,326 SF located at 1110 West Butler Road, Greenville, by SEPP Inc. to DeckMasters Contracitng LLC. Ashley Trantham was the agent in the sale of 7,800 SF located at 1007 Grove Road, Greenville, by Buckshot Corporation to H&K HLD LLC. COLLIERS INTERNATIONAL ANNOUNCES THE FOLLOWING TRANSACTION:
Brantley Anderson and Taylor Allen were the agents in the lease of 3,760 SF of office space located at 416 E. North St., Greenville, to Coastal Carolina National Bank. JOYNER COMMERCIAL ANNOUNCES THE FOLLOWING TRANSACTIONS:
Hope Tz Shcamlzl was the agent in the sale of 41 acres off Holloway Road, Marietta, for the buyer and seller. Michael Joseph was the agent in the lease of 2,900 SF of office space located at 515 Butler Road, Mauldin, to Gateway Children’s Inc. Steve Greer was the agent in the lease of 2,000 SF of office space located at 110 N. Main St., Greenville, to C. Dan Joyner Realtors. Charlie Timmons was the agent in the sale of a 22,724-SF industrial building at 608 Furman Road, Greenville. Hope Tz Schmalzl was the agent in the lease of 1,500 SF of office space to SR & I LLC by the landlord.
Hope Tz Schmalzl was the agent in the lease of a 3,600-SF restaurant space located at 2800 Greer Highway, Marietta, for the landlord and tenant. Matt Carter was the agent in the lease of 2,562 SF of warehouse space located at 221 Cooper Lane, Suites E&F, Easley, to Palmetto Flooring Distributor Inc. Hope Tz Schmalzl was the agent in the sale of .5 AC of land on Greer Highway, Marietta. Steve Greer and Matt Carter were the agents in the lease of 1,500 SF of office space located at 24 Vardry St., Suite 106, Greenville, to Southland Process Group. Denise Frederick was the agent in the lease of office space located at 210 S. Main St., Anderson, by Landlord Crescent Holding LLC. Michael Joseph was the agent in the lease of 4,000 SF of warehouse space located at 14 Oakvale Road, Greenville, by Landlord RHR Properties LLC. Hope Tz Schmalzl was the agent in the lease of 5,000 SF of office space located at 207 Antrim Drive, Greenville. Nelson Garrison was the agent in the sale of concrete plant BoHunter LLC in Fountain Inn. Matt Carter and Steve Greer were the agents in the lease of 800 SF of office space located at 24 Vardry St., Greenville, to Croft Architect. Joey Burton was the agent in the lease of a quad-plex building located at 411 Perry Ave, Greenville.
AVISON YOUNG ANNOUNCES THE FOLLOWING TRANSACTIONS:
Rakan Draz and John Odom were the agents in the lease of a 1,100SF retail building located at 10 Aberdeen Drive, Greenville, by Steadman and Donna Ariail to 10 Aberdeen Drive LLC. Rob Howell and Tabitha Cooper were the agents in the sale of a 130,000-SF industrial building located at 105 Shaw St., Greenville, by Orders Realty Co. to Enigma Corporation. Rakan Draz and John Odom were the agents in the lease of 1,220 SF of retail space located at 2 Benton Road, Travelers Rest, by Westwood Financial to FX1 Mobile LLC. KDS COMMERCIAL PROPERTIES ANNOUNCES THE FOLLOWING TRANSACTIONS:
Mike Kiriakides was the agent in the sale of 73 AC located on 5300 Honbarrier Drive, Greenville, by US Trust to RealtyLink. Brad Doyle was the agent in the sale of the mixed-use site located at 6806 State Park Road, Travelers Rest. Mark Ratchford and Mark Massaschi were the agents in the lease of an office building located at 607 Pendleton St., Greenville, to a local law firm. Mark Ratchford was the agent in the sale of a 0.87 AC commercial lot located at the corner of Rutherford Road and Rayford Lane, Greenville. Mark Ratchford and Bobby Miller were the agents in the sale of 116 E Main St., Easley, by Mutual Home Stores.
NEWS AND TIPS FOR YOUR PERSONAL BOTTOM LINE
| YOUR MONEY
Cleaning up Your Christmas Mess Spoiler alert – this is not an article about wrapping paper By ROBERT DEHOLLANDER CFP®, AIF®, CRPC® Managing Principal, DeHollander & Janse Financial Group
It’s that time of the year again. Christmas has come and gone and the new year is upon us. It’s a great time to reflect on the achievements of the past year and to plan for the new one. Unfortunately, many of us are receiving our January bank and credit card statements and wondering, “What in the world came over me last month? Who is Mr. Amazon, and how did he get my credit card?” Did you overspend this holiday season? Don’t worry; you’re not alone. According to a July report by Lending Tree, 4 in 5 Americans are in debt. It’s common to overspend during the holidays, and it’s normal to feel a little guilty about it afterward. But don’t worry – here are three simple steps to help clean up the mess.
ASSESS: January is a great time to take a
closer look at your finances, regroup, and track progress toward your financial goals. Everyone should have a personal financial plan. Avoid the temptation to use any pot of money to make the holiday debt go away. Using retirement funds rarely makes sense, and it can torpedo long-term retirement goals. Honestly assess your debt, and prepare a budget for paying it down as quickly as possible without dipping into emergency savings or borrowing money. Two of my favorite online resources are mint.com and readyforzero.com. Both have excellent tools for assessing your finances and creating a plan of attack.
ATTACK: After assessing your situation, it’s
time to take action. In most cases, if you’ve overspent for a period of time, you’ll need to underspend for a while to free up cash to pay off the holiday excess. The accumulation of debt is essentially a cash-flow problem – you’ll need to either earn more or spend less. I know the latter option is not what people want to hear (it’s hard), but the debt won’t disappear on its own, and the sooner it is addressed, the better. Be realistic and develop a good budget to eliminate your holiday debt. In addition, here are three other ideas: • If you expect a tax refund, file your taxes now instead of waiting for the deadline. You can use this to pay off your holiday debt more
quickly. Remember, if you’re getting a refund, that means you’re overpaying on your taxes during the year. A $2,400 refund represents $200 a month that could be in your pocket instead of Uncle Sam’s. Of course, don’t just spend it — apply it toward your debt. • Sell some stuff. If you have gift receipts for any Christmas items you don’t want, return them for cash. If not, consider using gift cards to cover expenses you would normally pay out of pocket. Also, see what you have for a garage sale, or to list on eBay and sell for quick cash to help reduce the holiday bills. • Consider paying your debt off using the snowball method. The snowball method pays down the smallest balance first and then each larger debt until it’s gone. This approach creates a positive psychological momentum. Of course, you’ll pay extra money toward the smallest debt while still making monthly minimums on the rest.
PLAN AHEAD: The final step to recovering
from your holiday spending spree is to have a plan in place to prevent a repeat situation next year. Remember that your holiday debt is a symptom, not necessarily the problem.
For most of us, it’s critical to have a household budget. I’m amazed at how many people have no idea how much they spend. We work so hard for our money that it seems natural to create a plan to make some of our money work for us. Be realistic about where your money is going and how much you need for discretionary items. Then look for ways to carve out money for extra savings or debt repayment. Even small amounts – $25 a week or $100 a month – make a big difference over time. In my experience, lack of attention (or better yet, lack of intentionality) is why most people overspend and save too little year after year. Plan ahead this year. Spend less than you earn and make this the last time you let holiday spending set you back. That’s a great gift to yourself for 2018! Robert DeHollander is a managing partner and co-founder of the DeHollander & Janse Financial Group, located at 3515 Pelham Road, Suite 100, Greenville, 864-770-0220. Securities and advisory services offered through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser. 1.5.2018 | upstatebusinessjournal.com
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DIGITAL MAVEN |
THE TECHNICAL SIDE OF BUSINESS
A Look Toward the Future Developments in tech to watch for in 2018
By LAURA HAIGHT president, portfoliosc.com
2017 was a mixed bag for technology and business. We got hacked — a lot. We learned we had to take social media seriously — like Russia does. We lost “net neutrality.” We learned about bitcoin (mostly from “Grey’s Anatomy”). But we also saw incredible advancements in health care, including gene therapies, electronic records, and telemedicine. Self-driving cars became a functional reality. And data — exabytes of it — positioned itself at the top of the tech food chain. 2018 promises to continue the battle between privacy and security, bring artificial intelligence (AI) into the mainstream, and see some sci-fi storylines become a reality. Hal from 2001 did, at the least, wake up and find himself reborn in Amazon’s Alexa and Google’s Home. With so much happening this year, it’s hard to target the biggest trends. But I picked three based on this important criterion: I found them interesting.
GDPR: Are you ready? Come May, the European Union’s (EU) General Data Protection Regulations go into effect. Generally considered the gold standard of personal data security, these updated regulations will impact many U.S. businesses. Maybe yours. Businesses that own or conduct business in the EU have been preparing for this since they were published in May 2016, but even businesses without a presence in the EU can be subject to the new regs. For example, do you sell something on your website globally? Did you purchase your domain with international prefixes in the EU, such as portfoliosc.uk — an important indicator that you are “marketing” to EU consumers? Among the many elements that could impact you include the “plain language” terms and conditions, the “right to be forgotten,” and the 72-hour notification requirement. The last is particularly important since under current U.S. laws, there are no notification timelines. Equifax took more than six weeks to notify its 145
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million customers of the hack. Only a handful of states (South Carolina is not among them) do have a notification time requirement, but even then it ranges from 30 to 90 days. There are many good sources for information online. What if you are a service company with no EU clients? You could still be affected if one of your clients does business in the EU. The new regs put responsibility (i.e., fines for noncompliance) strictly in the hands of the “controller”; but you may still have work to do. If you have clients with an international footprint and you haven’t heard from them, you better make a call.
Monetizing cybersecurity In 2017, the U.S. was the big winner in the “Cost of Data Breach” category. We had the largest number of breaches, the highest cost per capita, the greatest expense to ameliorate the impact, and the largest customer losses following a breach. This is according to the Ponemon Institute’s 2017 report, which studied the impact on 419 companies in 11 countries and two regions. How do we counter this? With education, risk assessments, and a comprehensive effort to establish compliance standards. One Southern state has thrown itself big-time into this effort. Georgia is investing $95 million in the Hull McKnight George Cyber Innovation and Training Center, an incubator hub for tech startups and a virtual testing space for cyber initiatives. Other states investing heavily in a cyber-secure future include Michigan, Rhode Island, and California. The methods may be different, but the goals are, not surprisingly, to attract businesses with a world-class workforce, a secure public and private infrastructure with responsive resources in the event of breaches, and a standards-based set of regulations that protect all businesses — public, private, governmental, and nonprofit. A supportive public infrastructure is important, but the battle for cyber safety is going to be won one click at a time. Cyber-aware company cultures — from big entities to momand-pops — will set the tone with independent risk assessments, and ongoing education and empowerment of employees. Sounds like an expense, right? But if a dollar spent saves a
bitcoin, that’s a big ROI. Like all ROI, we just have to see whether it really materializes.
Alexa, Cortana, Siri, is that you in the conference room? We’ve gotten used to our phones being the ultimate device: phone, scheduler, entertainer, music player, web viewer, recorder, and more. So it was not surprising when, as a contractor, I participated remotely in a conference call where the smartphone on the center of the conference room table was supposed to take the place of a Polycom. Not quite. They’re good, but not that good. To the rescue comes Amazon, which introduced Alexa for Business in December. The service enables businesses to use Echo devices in either a personal or shared configuration, adds integration with business apps like Salesforce, and opens the ability to create your own “skills” to increase automation and efficiency specific to your business. Although the logical first step is in conference rooms for collaborative meetings with clients, remote employees, and contractors, it is just the tip of the iceberg. Alexa for Business has dashboard controls for enrolling users, registering devices, assigning profiles, setting up conference rooms, and enabling skills to be used — on a user-by-user basis if you choose. Analysts are adopting a wait-and-see attitude on how strong the security profile will be. While Alexa, with the infrastructure already in place, has a big leg up over other virtual assistants, I certainly wouldn’t count Apple and Microsoft out at this early stage. In tech, it’s not always who does it first, but who does it best. Since corporate networks became the norm in the early 2000s, we’ve struggled to find our way to real, functional collaboration. Will 2018 be the year we take that big step toward finally realizing a two-decade-old promise? If you’re preparing for the GDPR, leading the charge for cyber awareness in your company, or implementing virtual assistants in your company, I would love to talk to you about your experiences. Reach out to laura@portfoliosc. com.
PLAY-BY-PLAY OF UPSTATE CAREERS
HIRED
HIRED
HIRED
PROMOTED
| ON THE MOVE
ACCEPTED
JULIA SIMMONS
MARYELLIS PETROSIAN
LUIS ACKERMAN
GREG FORCE
HELEN BYCE
Has joined Countybank’s Greer office location as a universal associate. Simmons will be responsible for opening accounts, handling teller transactions, and helping match customers with products and services that meet their financial needs. She has both a bachelor’s and master’s in accounting from Clemson University.
Has joined the YMCA of Greenville Foundation as the director of endowment. Petrosian brings over 10 years of experience in fundraising and donor relations and will be responsible for the development of the Foundation’s boards and committees. Petrosian is a graduate of Clemson University.
Has joined The Spinx Company as vice president of technology. With his extensive IT and software industry knowledge, Ackerman will help support Spinx’s growth and enhance the customer experience through advanced technology. Ackerman has over 13 years in the technology industry and was most recently the technical director for Acumen IT.
Has been promoted to president and CEO of Tindall Corporation. Force has served as president and COO of Tindall since 2004 after joining the company in 1988. Force received a bachelor’s degree in civil engineering from Lehigh University and his MBA from Georgia College and State University.
Has been accepted to the 2018 Women’s Leadership Institute, hosted by Furman University. Byce joined LS3P in 2014 and became an associate in 2017. Byce is also a founding board member of the ACE Mentor Program on the Upstate.
Attorney Jim Bannister of Bannister, Wyatt & Stalvey LLC has successfully achieved recertification as a criminal trial advocate, granted by the National Board of Trial Advocacy.
VIP MICHAEL MUMMA Michael Mumma has been promoted to managing director of BlackStream’s residential division, BlackStream | Christie’s International Real Estate. Mumma has spent seven years working in the commercial and residential real estate fields. He is a Greenville native and a graduate of Clemson University with a degree in financial management. Mumma will utilize his financial management background and real estate knowledge to help grow and manage BlackStream | Christie’s International Real Estate. He hopes to procure and develop a family environment within the agency’s residential division.
DENTISTRY Dr. Donald Ridgell has been honored with the American College of Prosthodontist’s Private Practice Prosthodontist Award, recognizing extraordinary collegiality, outreach, and community service. CONTRIBUTE: New hires, promotions, & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.
LAW Haynsworth Sinkler Boyd has been recognized by BTI Consulting Group as “an unparalleled leader in client service in the brand-new BTI Client Service A-Team 2018” report. BTI Client Service A-Team is the only law firm ranking based exclusively on direct, unprompted feedback from corporate counsel. 1.5.2018 | upstatebusinessjournal.com
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#TRENDING / NEW TO THE STREET |
INFORMATION YOU WANT TO KNOW / NEW FACES OF BUSINESS
THE WATERCOOLER 1. Greenville’s downtown master plan to be updated 8| S FOR 201 R’S PLAN E CHAMBE GREENVILL OPENS | AC HOTEL INSIDE //
2. Hare & Field to open on GHS Swamp Rabbit Trail in TR
E 51
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4. First Look: United Community Bank moves into former Erwin Penland building with room to grow
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DIGITAL FLIPBOOK ARCHIVE 5. BMW launches preproduction of new X7 model at Upstate plant *The Top 5 stories from last week ranked by Facebook reach
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1. Valeant Pharmaceuticals International Inc. recently opened its new distribution center in Greenville. For more information, visit valeant.com.
3. Elevate Chiropractic recently opened at 4200 E. North St. Learn more at elevategreenville.com. For more information, visit valeant.com.
2. Pigtails & Crewcuts recently opened its second location in Village Market East at 2815 Woodruff Road in Simpsonville. For more information, visit pigtailsandcrewcuts.com.
4. ProSource Wholesale of Greenville recently opened at 2 Distribution Court in Greer. Learn more at prosourcewholesale.com.
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UBJ | 1.5.2018
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EVENTS YOU SHOULD HAVE ON YOUR CALENDAR
| PLANNER
DATE
EVENT INFO
WHERE DO I GO?
HOW DO I GO?
Tuesday
01/16
Greenville Technical College’s Economic Outlook Breakfast
Center for Manufacturing Innovation 575 Millennium Blvd. 7–9 a.m.
Cost: Free, registration required For more info: http://bit.ly/2Bfyo4Q
Tuesday
01/23
Piedmont SCORE’s Business Planning Seminar
Greenville County Library Augusta Road Branch 100 Lydia St. 6–8 p.m.
Cost: Free For more info: http://bit.ly/2zFFZcP, 864-271-3638, info@piedmontscore.org
Wednesday
01/24
Greenville Chamber of Commerce’s Pulse Leadership Luncheon
Kroc Center 424 Westfield St. 11:30 a.m.–1 p.m.
Cost: Free for members, $25 for nonmembers For more info: http://bit.ly/2pLLv92, 864-239-3730, eaustin@greenvillechamber.org
Monday
Greenville Chamber of Commerce’s Gubernatorial Series Lunch feat. Kevin Bryant (R)
More information coming soon noon–1 p.m.
Thursday
ACCOUNT MANAGERS
02/01
Greenville Chamber of Commerce’s Annual Meeting
TD Convention Center 1 Exposition Drive 5–8 p.m.
ART & PRODUCTION VISUAL DIRECTOR
Monday
Greenville Chamber of Commerce’s Gubernatorial Series Lunch feat. James Smith (D)
More information coming soon noon–1 p.m.
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John Clark, Donna Johnston, Stephanie King, Rosie Peck, Caroline Spivey
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IN THIS WEEK’S ISSUE OF UBJ? WANT A COPY FOR YOUR LOBBY?
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
UBJ milestone
UBJ milestone jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport
1988
FEBRUARY 9 CRE ISSUE
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Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff
Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com
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NEW HIRES, PROMOTIONS, AND AWARDS:
1997 Jackson Dawson launches motorsports Division 1993
1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.
Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.
Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during
Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood. He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit. After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980. In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he
learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage. In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar. “Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said. Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders
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with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.” In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.” Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning. The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet. Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s
2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space
1998
2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003
1998 Jackson Dawson moves to task industrial Court
also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design. Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series. “In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.” Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept
2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running
him going and growing his business over the years. He is passionate about giving back and outreach to non-profits. The company was recently awarded the Community Foundation Spirit Award. The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family. As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business. “From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.” Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”
2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people
2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award
pro-bono/non-proFit Clients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School
CoMMUnitY inVolVeMent & boarD positions lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board, Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board
November 1, 2013 Upstate bUsiness joUrnal 21
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NOVEMBER 1, 2013
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