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featuring… Expanding Access Globally

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Taking Off

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The integration of American Airlines and US Airways is progressing, linking the two airlines’ route networks and consolidating duplicative operations without employment reductions. “Heavy lifts” will continue in 2015: merging frequent flier programs, obtaining a single operating certificate, combining reservation systems, unifying 100,000 employees, and preparing for the 2016 expiration of the airport lease.

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Wastequip Doesn’t Talk Trash

Wastequip has products to suit individual consumers like its popular Toters brand, all the way up to the larger commercial side with its steel containers. It also provides hoist truck components that pick up the steel containers, tarps that secure waste in trucks, compactors that require fewer pickups, vacuum trucks that work in oil and gas exploration, and a parts division that services all of its products.

Packaging The Sale Companies now use the entire package of a product to convey advertising messages with words, images and graphics, in an array of bright designs and appealing colors. Enter FLXON, a high-technology service provider to the North American flexographic and rotogravure printing, coating, laminating and converting markets. Knowing the smallest detail can affect a buyer’s choice, they work with printers improve their process and their bottom line.

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Hands-On and Can-Do Attitude

Burton Engineering Associates is the “problem solver” for clients’ construction projects. “When we join the team, it becomes as much our project—and we take ownership of it. We have a passion for what we do,” Carlton Burton says earnestly. “Our role is pretty integral to the project,” confirms Greg Welsh. “We go beyond the project specifications. We want to understand our client’s business model.”

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Tooling an Engineering Network

EngNet maintains an extensive directory for engineering professionals, offering a digital marketing division as well as an industry news site that incorporates social media. According to CEO Michael Cooney, “I see us growing, and what we do isn’t going to change: we’re connecting industrial and engineering suppliers with customers. However, what is going to change is how we do that.”

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o f i n t e re s t …

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Is Now the Time To Sell Your Business? When LinkedIn Opportunity Knocks, Are You Paying Attention?

january/february 2015 | greatercharlottebiz.com

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Growler Alert: Entrepreneurial Spirit Bubbles in Charlotte Tap Lines publisher’spost Standardizing the Globally Competitive Mark for Cities


OF INTEREST: Transforming the Business of Law to Meet the Needs of Business

IS NOW THE TIME TO SELL YOUR BUSINESS? PART II: ARE YOU PERSONALLY READY TO SELL?

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ast month we looked at the first two personal motives that can influence your timing on selling your business—taking “chips off the table” and losing the “fire in your belly.” Let’s look at the next two scenarios that can influence your decision to cash out of your business and move on to the next stage of your life.

The Successor Selected Doesn’t Work Out A successor or successors are anointed from within the business (a key employee or usually two) or from within the family (a child or two). If no one has: ■ stepped forward; ■ the talent to take the business to the next level; ■ demonstrated sufficient commitment to the business (at least equal to what yours had been); or ■ the money now or through future cash flows from the business adequate to buy the business; then the business has become too valuable or too complex to transfer to anyone other than an outsider. Let’s look at how one fictional business owner tried (and failed) to lure his desired successor into ownership. It was the most unexpected outcome imaginable. John owned a disaster recovery service that had prospered for the last 20 Many business owners years. As a careful, conservative reach a point where businessman of the “old school,” they realize that there John had amassed a signifiare a lot of things that cant fortune outside of the busithey want to do while ness—a business that earned $1 million or more each year. One they are young enough of John’s exit objectives was to to enjoy them. reward the key employees who had helped build and sustain his successful company. After much soul searching, John decided to “give” the business to his key employees. They would pay him nothing out of their own pockets. The technique John used to give the business away was to have the business contribute money to a separate fund for three years. At the end of that time period, John would receive the money as a down payment for the purchase of the company. The down payment would equal 50 percent of the purchase price. The remaining 50 percent would be paid to John over the subsequent six years from the available cash flow of the company. If cash flow was insufficient, John was willing to accept a longer payout period, although if cash flow continued as expected, it would be more than adequate to pay John the remaining balance. In short, John would pre-fund his own buyout with three years

of revenues (money he would otherwise be entitled to) and would obligate key employees and the company to provide the remaining 50 percent of the payment solely from the future cash flows of the company. In essence, John was “giving” the company to his employees. At the end of six years, without one penny coming from their own pockets, John’s employees would own a company producing at least $1 million of cash flow per year. Imagine John’s surprise when their unanimous response was, “Thank you very much, but we don’t want to own the company. There’s too much risk in this business.” John’s exit advisor was not nearly as surprised as John because through experience the advisor had come to realize that many key employees—wonderful, valuable and contributing employees that they are—simply have little tolerance for the risk that is part and parcel of business ownership. In John’s case, the employees weren’t even willing to be given the company.

There’s More to Life Than Building and Running a Company Many business owners reach a point where they realize that there are a lot of things that they want to do while they are young enough to enjoy them. These include active vacations, spending time with family and friends, service work and personal growth and development which they can’t get to because they are too busy running their business. Many boomer owners are deciding to pursue a second life or second career full of possibility, activity and involvement. This crowd gravitates toward race car seats rather than rocking chairs. To be strapped into the driver seat, owners need financial, emotional and time freedoms. If you find yourself falling into one of these categories, then the time may be now to create a plan for preparing your business for your eventual exit. Find an expert advisor that can help guide you through the process of reviewing all of the factors associated with exiting your business and creating a comprehensive exit plan that addresses all of your personal and business objectives. Article presented by Robert Norris, founder and managing partner of Wishart Norris law firm, a member of Business Enterprise Institute’s International Network of Exit Planning Professionals. © 2015 Business Enterprise Institute, Inc. Reprinted with permission. Wishart Norris law firm partners with owners of closely-held businesses to provide comprehensive legal services in all areas of business, tax, estate planning, exit planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, contact Robert Norris at 704-3640010 or Robert.Norris@wishartnorris.com or visit www.WishartNorris.com.

Norris

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greatercharlottebiz.com | january/february 2015


January/February 2015 Volume 16 • Issue 1 Publisher

John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor GCB 1_2V Join Our Network 115:Layout 1

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Network…

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Hospice & Palliative Care Charlotte Region • Optima Engineering, P.A. • Brackett Company, Inc. • Watson Insurance Agency, Incorporated • Diamonds Direct SouthPark • Greer & Walker, L.L.P. • Whitehead Associates, Inc.Center for Intentional Leadership • CPCC Center for Sustainability • Windstream Communications, Inc. • UNC Charlotte Belk College of Business • Bank of Granite Corporation • Better Business Bureau of Southern Piedmont, Inc. • Charlotte Radiology, P.A. • Little Diversified Architectural Consulting, Inc. • T.R. Lawing Realty, Inc. • Charlotte Area Transit Systems (CATS) • Metro Greenscape, Inc. • Radiator Specialty Company • Troutman Chair Company, L.L.C. • Johnson & Wales University Charlotte Campus • Meeting Street Builders, LLC • Peak 10, Inc. • The Finley Group • Windshear, Inc. • BDO Seidman, LLP • CPCC Joe Hendrick Center for Automotive Technology • Speedway Motorsports, Inc. • The Employers Association • The Innovation Institute/ McColl Center for Visual Art • Carmel Contractors, Inc. • Hall Marine Group/ Lake Wylie Marina, Inc. • Heartwood Tree Service, LLC • UNC Charlotte Global Business Programs • Wray Ward, LLC • BAE Systems Tensylon High Performance Materials Inc. • Coca-Cola Bottling Co. Consolidated • Decision Support LLC • RedSky Gallery / Red Sky Gallery, Ltd. • Stanford Group Company/Stanford Financial Group • First Citizens Bank / First-Citizens Bank & Trust Company • MaxMpact / Corp Data Products, Inc. • McAllister / The McAllister Group Construction Company • The River Bend Sportsman’s Resort, Inc. • Time Warner Cable Business Services • Carolina Premier Bank • Jesse Brown’s, Inc. • Lance, Inc. • TelWare Corporation • W.T. Nichols Mechanical / Tavernay Services, Inc. • Allen Tate Co., Inc. • DEB SBS, Inc. • Halo Technologies, Inc. • Hood Hargett & Associates, Inc. • The Carolina Photo Group, Inc. • Cirrus Medical Staffing, LLC • Matrix Wealth Advisors, Inc. • Mecklenburg County Sheriff’s Office • Peppermint Forest • Christmas Shop & Oasis Pools Plus • UNC Charlotte Center for Real Estate • Altman Initiative Group, Inc. • AT&T, Inc.– North Carolina • Crawford & Crawford Composites, Inc. • Hudson Legal • Junior Achievement of the Central Carolinas • Blair, Bohlé & Whitsitt, PLLC • Calyptix Security Corporation • Chris-Craft Corporation/Indian Motorcycle Company • Federal Reserve Bank – Charlotte Branch • Premier, Inc. • American Product Distributors, Inc. • Charlotte City Manager – Curt Walton • Charlotte City Manager – Pamela A. Syfert • S. L. Bagby Co. • Charlotte Copy Data – Part of Copy Data Network, Inc. • The BridgeBuilder Company • The Ivey / ADC Holdings, LLC • Hubert Whitlock Builders, Inc. • Rutland Plastic Technologies, Inc. • Southwood Corporation • Time Warner Cable Charlotte Division • UNC Charlotte Continuing Education • Central Piedmont Community College Foundation, Inc. • Century 21 Hecht Realty / Hecht Realty, Inc. • Griffith Choppers, Inc. • NASCAR Hall of Fame • UCS Inc. • Ballantyne Resort • Basics Plus Office Products, Inc. • Connextions, Inc. • Levine Children’s Hospital at Carolina’s Medical Center • SpeakEasy Communications, Inc. • Boyle Consulting Engineers, PLLC • Business Expansion Funding Corporation • CPCC Institute for Entrepreneurship • Donald Haack Diamonds, Inc. • Foundation For The Carolinas • Apple Rock Advertising & Promotion, Inc. • Aquesta Bank • Cogdell SpencerFInc. Career Management Solutions, Armament and Technical OR• Compass THE PAST 15 YEARS WELLC ’ VE• General BEENDynamics CONNECTING Products • CC Communications, Inc. • Charlotte Marriott SouthPark • Charlotte School of Law, LLC • Greater Charlotte Chamber of Commerce • AND LEARN ABOUT Zobo.tv / WirePath Home Systems, LLC • BobcatsBUSINESS Basketball, LLCPEOPLE • Payroll Plus, Inc. HELPING • Targeted GolfTHEM Solutions, Inc. • Webb and Partners, Inc. • Laughrun, Levine & Murray, Whitehead Associates Inc. • Charlotte Checkers Professional Hockey, LLC • Daniel, RatliffABUNDANCE & Company • Goodman, EACH Ice OTHER AND THE OF Carr, RESOURCES P.A. • RPA Design, PC • The Ghazi Company, LLC • 505th Engineer Combat Battalion (Heavy) • Motorsports Authentics, LLC • Mountain Funding, CHARLOTTE REGION . THROUGHOUT THE /GREATER L.L.C. • PokerTek, Inc. • Wilson Air Center – North Carolina, LLC • Liberty Homes Liberty Oak, Inc. • Shelton Vineyards, Inc. • Skanska USA Building, Inc. • University of North Carolina • Wake Forest University Babcock School • Bank of Granite Corporation • Charlotte Center City Partners • Lorenz Architecture, PA • Peninsula Yacht Club, Inc. • TCX / The Cycle Xchange, LLC • Carolina Parenting, Inc. • Edifice Inc. • U.S. National Whitewater US YOUR JOIN NETWORK OF OVER TELL& Associates, Center, Inc. • Autobell Car Wash, Inc. • David R. Badger P.A.STORY • McCollAND Partners LLC •OUR UNC Charlotte Urban Institute • Carolina Legal Staffing, LLC • Duke Energy Carolinas • Ross & Witmer, Inc. • The Sanctuary at Lake Wylie,BEEN LLC • TyFEATURED Boyd ExecutiveIN Learning Systems / Ty Boyd 900 COMPANIES THAT HAVE GREATER Enterprises, Inc. • Baxter-Harriss Co., Inc. • Group Insurance Solutions, Inc. • Tyler 2 Construction, Inc. • UNCC Belk College of Business • YMCA of CHARLOTTE BIZ ONLINE AND IN LLC PRINT . Financial Group, LLC • The Greater Greater Charlotte • Charlotte Shred-it / Charlotte Shredders, LLC • Larner’s Office Furniture Outlet, • Sloan Charlotte Hospitality & Tourism Alliance • Bank of Commerce • Charlotte Mecklenburg Schools • ESRI / Environmental Systems Research Institute, Inc. • Ralph Whitehead Associates, Inc. • VisionCor, Inc. • Carpenter, Cammack & Associates, Inc. • Charlotte Regional Partnership, Inc. • Integraphx, Inc. • Lindsay Daniel Architecture, Inc. • UNCC Charlotte Research Institute • Bank of America Corporation • Hood Hargett Breakfast Club America / HHBC, LLC • Southern Elevator Group, Inc. • Stewart-Cooper-Newell-Architects, P.A. • Belk College of Business – University of North Carolina at Charlotte • Ben Mynatt Pontiac-Buick-GMC Truck, Inc. • Hyatt Coin & Gun Shop, Inc. • LandAmerica Commercial Services • North Carolina Research Campus • Billy Graham Evangelistic Association • Eurostones Company, Inc. • Rodgers Builders, Inc. • Thomas Petroleum Company / Ray Thomas Petroleum Co., Inc. • Winthrop University • BestSweet Inc. • Bogangles’ Restaurants, Inc. • Salvin Dental Specialties, Inc. • Slade, Inc. • SREE Hotels, L.L.C. • American Red Cross Greater Carolinas Chapter • Bradley Arant Rose & White LLP • Charlotte Checkers Professional Ice Hockey, LLC • Hinrichs Flanagan Financial • Randolph & Son Builders, Inc. • 505th Engineer Combat Battalion (Heavy) • Signature Healthcare, PLLC • University of North Carolina at Charlotte • CEO Inc./ C.E.O., Inc. • Exervio Management Consulting / Exervio Consulting, Inc. • FairPoint Communications, Inc. • Presbyterian Healthcare • RAGGS LLC – RAGGS Kids Club, Inc. • Ecoscape Solutions Group, Inc. • Erdman and Hockfield, LLP • Lowe’s Motor Speedway / Charlotte Motor Speedway, LLC • Simpson Performance Products / Aero Wings, Inc. • Trammell Crow Company – Mid-South Region • Integrated ID Systems, Inc. • Pepsi-Cola Bottling Company of Charlotte, Inc. • Scott Jaguar / Scott Cars, Inc. • SMS Catering Services, Inc. • SportCoins, Inc. • ColeJenest & Stone, P.A. • Family Dollar Stores, Inc. • K. Hovnanian Homes of North Carolina, Inc. • Midrex Technologies, Inc. • WTVI, Inc.Charlotte Mecklenburg Public Broadcasting Authority • NouvEON Technology Partners, Inc. • Poyner & Spruill LLP • PRS Franchise Systems, LLC and PRstore, LLC • Southern Shows, Inc. • WXNC-AM 1060/ WKMT-AM 1220 / Geddings & Phillips • BizHub / The Charlotte Business Hub, Inc., • Carroll Financial Associates, Inc. • CPCC Harris Conference Center • FreemanWhite, Inc. • Philip Morris USA Inc.– Cabarrus Manufacturing Center • Carolinas HealthCare System • Global Medical Imaging, LLC • J.C. Steele & Sons, Inc. • SANDirect – a division of Providence Technologies, Inc. • Strayer University, Inc. • Charlotte Douglas International Airport • Choice Translating, Inc. • Clickcom, Inc. • Griffin Brothers Companies / Griffin Bros. Tire Sales, Inc. • Party Reflections, Inc. • ATCOM Business Telecom Solutions / ATCOM Inc. • Crown Solutions, LLC • Drs. Hull, Burrow and Case, P.A. • Montreat College – Charlotte Campus • The Cato Corporation • Dunn Enterprises / J.B. Dunn Enterprises, Inc. • Port City Electric Company, Inc./ PCE, Inc. • TimeWarner Cable Digital Telephone • Wishart Norris Henninger & Pittman, P.A. • Charlotte Center City Partners (CCCP) • Charlotte CONTACT US• Wake Forest MBA Family Business Trolley, Inc. • DCI Home Resource / Design Centers International, LLC • TheLEASE Art Institute of Charlotte, Inc. Center, Charlotte Metro • Skydive Carolina, Inc. • United Mailing Service,REATER Inc. • United Way of Central Carolinas, HARLOTTE IZInc. • Epley Associates, Inc. • General Dynamics Armament and Technical Products, Inc. • IRWIN Industrial Tools Company North America • PBS&J Construction Services, Inc. • ARMEL XECUTIVE ARKof Engineering R TE The Film Foundry / Film Foundry, LLC • Golden State Silk Flowers, Inc. • Sherpa, LLC • UNC Charlotte College • US LEC Corp. • Wagner Murray Architects, P.A. • Bank of America Corporation • Insource Contract Services, LLC • JHE Production Group, Inc. • North Carolina Dance Theatre HARLOTTE • PGA Tour Event- Wachovia Championship • Regent Park Golf Club and Academy • 5 Off 5 On Race Team Performance • Charlotte Area Transit System (CATS) • Home Builders Association of Charlotte, Inc. • LandDesign, Inc. • Overflow Printing, Inc. X • Carolina Beer & Beverage, LLC / Carolina Beer Company • Charlotte Regional Realtor Association, Inc.(CRRA) • Mariner / Mariner, LLC • Nordstrom, Inc.at SouthPark Mall • The Penny Group, GREATERCHARLOTTEBIZ COM Inc. • CPCC Corporate and Continuing Education • CharlotteJGALLES Camera, Inc. • Duke Power, a division of Duke Energy • MECA Properties / MECA Real Estate Services, LLC • Overhead Door Company of Charlotte / CNC Door Company • Breakfast Club America • Daniel, Ratliff & Company • National Gypsum Company / New NGC, Inc. • Scott Insurance / James A. Scott & Son, Inc. • Staton Financial Advisors, LLC • Ballantyne Center for Dentistry • C.A. Short Company / Davis Holdings of North Carolina, Inc. • Curtiss-Wright Controls, Inc. • goodmortgage.com / Barron’s Mortgage Group, Ltd. • Shogren Industries / Shogren Hosiery Manufacturing Co., Inc. • Carolinas HealthCare System • F.N. Thompson Company, Inc. • International House

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• Press releases: editor@greatercharlottebiz.com. • Editorial: mlane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com or sales@greatercharlottebiz.com. • Subscription or change of address: subscriptions@greatercharlottebiz.com. • General: info@greatercharlottebiz.com. © Copyright 2015 by Galles Communications Group, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group, Inc. makes no warranty to the accuracy or reliability of this information. Products named in these pages are trade names or trademarks of their respective companies. Views expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102. Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.


OF INTEREST: Get LinkedIn or Be LeftOut

WHEN LINKEDIN OPPORTUNITY KNOCKS, ARE YOU PAYING ATTENTION?

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inkedIn provides you with an abundance of opportunities to grow your business that you may not be aware of. Favorable chances to connect with your prospects are around every conceivable corner of the platform. We often receive several types of notifications on LinkedIn such as someone’s career change, recommendations from colleagues and clients, or interesting posts that our connections have published. Each of these instances may be the “crack in the door” to re-establish a business relationship, a reason to catch up, or initiate a conversation.

noticed within the group which will further your personal brand marketing and could result in a meeting in the future. Freely Message Group Members or Post Articles. Joining 50 groups and 50 sub-groups gives you access to group members and allows you to message them without requiring a connection. This exposes you to thousands of prospective clients and key people in your industry. Post an informative article in an appropriate group. Comment on other’s posts within the group to become more visible to the group members. Becoming a Top Contributor in a group results in the posting of your picture and headline on the group’s front page. What a great way to generate free publicity and notoriety! Life Change Notifications. When you receive a notification of a network member’s job change, birthday or work anniversary, congratulate the person and suggest a celebratory lunch. This action can lead to the growth of your network and referrals. It’s a great way to get start a conversation!

You may find a position or potentially be found for your next career move. If your profile is optimized with strategic keywords, a recruiter seeking someone with your credentials has a greater chance of finding you in their search for candidates with your experience. LinkedIn has revolutionized the recruitment industry with 95 percent of all recruiters looking for “A” list talent. Be found and be proactive! LinkedIn Opportunity Knocks. When LinkedIn opportunities knock, you need to pay attention and act upon them. Here are some examples: Endorsements. If one of your connections endorses you for a skill, thank the endorser and return the favor if you are comfortable doing so. Many of us receive endorsements from individuals we have never conducted business with. Take this as an opening and run with it. Offer to meet to establish or rekindle the relationship.

Recommendations Received. Receiving a recommendation from one of your connections to add to your profile is a great way to establish your credibility. After accepting the recommendation, consider returning the favor and possibly suggest a meeting or phone call. This interaction offers an additional chance to build upon a relationship for potential referrals. Sharing or Publishing an Article. You can create another touch point moment designed to keep you top of mind by sharing a relevant article with a connection. By doing so you are portrayed as a Thought Leader and a portal of information in your industry to your network. Most LinkedIn members have already received access to LinkedIn Publisher. This new feature allows members to post interesting and compelling original articles. Hopefully your topic will strike a chord with your readers who will share your article with their LinkedIn, Facebook, Google+ and Twitter connections. This is a tremendous opportunity! By utilizing the publishing tool you can expand your reach to thousands of people, establish yourself as an expert in your field, and enhance your personal brand.

Who’s Viewed Your Profile? Check who has viewed your profile daily. People who look at your profile might be interested in doing business with you. Be proactive and send them a message that you saw them viewing your profile and ask if there is something you can do for them. Most of the time this will result in a new connection and possibly new business.

Be sure to make the most of your opportunities within the LinkedIn platform. Each of these recommendations really works! We have seen every single example cited here build businesses. Go ahead and try a few. Drop us a note and let us know what LinkedIn opportunities you used to grow your business.

“Likes” or Comments in Groups. If a LinkedIn member “likes” or comments on a post that you have shared with a group, this is a great opportunity to acknowledge the person and thank them for the “like” or respond to the comment. This response gets you

Content contributed by Linda and Ira Bass of IB Media LLC, an advertising media planning and placement firm built using the strategic power of LinkedIn to serve agencies and marketers with a targeted approach to reaching their customers. For more information, please contact Ira Bass at IraBass@IBMedia.biz or 704-989-3790. Learn more at www.IBMedia.biz or www.LinkedIn.com/company/IB-Media-LLC.

Basses

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greatercharlottebiz.com | january/february 2015


OF INTEREST: Celebrating the Entrepreneurial Spirit

Growle Entrepreneurial Spirit Bubbles in Charlotte Tap Lines Charlotte’s own NoDa Brewing Company that recently won a gold medal for its Hop, Drop ‘n Roll India Pale Ale, the most competitive category in the World Beer Cup.

Charlotte Entrepreneurs

“While Denver, Portland and other massive craft meccas may still have a hold on the mainstream craft movement, if you’re looking for the next great beers that hop heads will ultimately drool for, chances are you’ll find them in the Tar Heel state.” ~ Vinepar.com

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merica is undergoing a craft beer boom. Whether it’s a passion for beer or dissatisfaction with the 9-to-5 routine, or just a desire to start your own business, entrepreneurs are bubbling to the tap lines in increasing numbers. Dreaming big, working hard, and thinking differently, they are propelled by visions of success—a reward increasingly scarce in our tough economy. Typical entrepreneurs give up their corporate jobs to start dabbling with their own brew, raise their startup capital through a network of friends, family and co-workers, and try to bring their product to market through an immense set of complex regulations. Each one brings their own unique perspective to one of America’s favorite beverages, challenging each other and pushing boundaries, for the one great beer. North Carolina is “the most exciting place for craft beer,” national wine and beverage blog Vinepair recently announced. “While Denver, Portland and other massive craft meccas may still have a hold on the mainstream craft movement, if you’re looking for the next great beers that hop heads will ultimately drool for, chances are you’ll find them in the Tar Heel state.” Citing Asheville as the state’s craft beer capital, the blog acknowledges the over 110 breweries currently be found across North Carolina, including

january/february 2015 | greatercharlottebiz.com

The number of craft breweries has been growing for a few years now, but the fall months of 2014 saw an explosion of as many new breweries as had opened over the last two years combined. This year, all indications are that the number of breweries in Mecklenburg County will more than double. The Charlotte region had experienced a brief, smaller craft brewery boom in the 1990s, and over the years various breweries had popped up intermittently, but all had folded. Problems ranged from beer quality to distribution to some of the inherent difficulties in nurturing a small business, especially when restaurants were combined with the business model. In 2008, the region was left bereft of any local breweries after the closure of South End Brewing.


The swell of new brewers have some common characteristics. Though their backgrounds vary considerably, from banking to nuclear engineering, many have been homebrewing for more than a decade and are Charlotte natives.

However, in true entrepreneurial resurgence in 2009, The Olde Mecklenburg Brewery (OMB) took a fresh shot. As a matter of fact, between 2011 and 2013 another nine breweries opened. Local consumers have been extremely supportive; only Four Friends Brewing has folded, which happened early in 2014. With the openings and expected openings of this most recent ‘brew boom’ spread out between the end of 2014 and the end of 2015, Mecklenburg County is slated to have 13 new breweries. While a few have yet to finalize locations, potentially all 10 of the Charlotte breweries could be along the light rail corridor.

Brew Happenings In mid-October 2014, Sugar Creek Brewing opened in the former OMB site off

Old Pineville Road (OMB recently moved to a larger location a block away). Sugar Creek brews Belgian beers, including wits (wheat beers) and even a barely-legal 15 percent Belgian strong ale. At the beginning of November 2014, Sycamore Brewing opened in a former auto garage just off the light rail near Tremont Avenue. Husband-and-wife team Justin and Sarah Brigham offer an impressive 20 taps in their taproom, of which 16 are Sycamore brews and four are from cideries and other breweries. At the end of 2014, six more breweries either had opened or were on the brink of opening in Charlotte: Red Clay Cider Works (245 Clanton Rd.); Free Range Brewing (2320 N. Davidson Ave.); and even a small system in Salud Beer Shop (3306-B N Davidson St.). Red Clay, which raised $29,287 through a Kickstarter campaign this fall for its final funding boost, will be the city’s first cidery, taking advantage of North Carolina’s diverse, high-quality apple crop. The draft list won’t look too different from that of a brewery—founders Jay and Deanna Braddish are producing hopped and even barrel-aged ciders. Elsewhere in the county, Barking Duck Brewing Company (8037-C Fairview Rd., Mint Hill), Bayne Brewing Company (19507 W. Catawba Ave. Suite I, Cornelius) and Primal Brewery (16432 Old Statesville Rd., Huntersville) also opened by the end of 2014. Spring 2015 will see Three Spirits Brewery (5046 Old Pineville Rd.) and Wooden Robot Brewery (1440 S Tryon St.) fill out Charlotte’s light rail corridor. Three Spirits is soon starting construction in an

old textile dye building and is planning an English pub-styled taproom complete with mini-arcade. Wooden Robot, a short walk from the Food Truck Friday site, will offer a wide range of farmhouse ales and will host farmer/supplier events. On the horizon, just in need of the right location, are Archive Brewing, DukBone Brewing, and GoodRoad CiderWorks. Archive, which is looking in both Charlotte and Matthews, will have a unique offering with its focus on U.K./English styles.

Still Unfilled Niches The swell of new brewers have some common characteristics. Though their backgrounds vary considerably, from banking to nuclear engineering, many have been homebrewing for more than a decade and are Charlotte natives. Most have spent months or even years trying to find just the right location for their brews, often repurposing an old industrial site in the process. They strive to integrate local ingredients and even grow hops onsite. And, by their own admission, they “are learning worlds” from the established brewing community. Recipes and brewing methods continually being perfected are on display each year at Charlotte’s Oktoberfest, the region’s premiere beer tasting event, fostering interest and promoting innovation in the homebrewing community. This has allowed upcoming breweries to identify currently unfulfilled niches in the craft beer scene, from

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OF INTEREST: Celebrating the Entrepreneurial Spirit Cont.

Sugar Creek Brewing Company

Most have spent months or even years trying to find just the right location for their brews, often repurposing an old industrial site in the process. They strive to integrate local ingredients and even grow hops onsite. And, by their own admission, they “are learning worlds” from the established brewing community.

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geographically-defi ned beer styles to ciders. Additionally, because of complicated production, established breweries have not focused on sours and farmhouse ales, the yeast from which can contaminate other beer styles. But multiple upcoming breweries plan to produce these styles. Sugar Creek Brewing founder Eric Flanigan stressing his devotion to the Belgian niche, proudly declaring, “We’re probably the only brewery in Charlotte that doesn’t have an India Pale Ale—or two or three.” And while a number of upcoming breweries plan to utilize t he symbiotic food truck model that has been successful for most area breweries, allowing them to forego the hassle of food production and permitting, multiple upcoming breweries also plan to have some food prepared in-house.

january/february 2015 | greatercharlottebiz.com

Start-up Challenges Particularly in Charlotte, starting a brewery is a complicated process. Although zoning laws that once kept breweries 400 feet from residential areas have been amended to 100 feet, making it easier to locate, there are months of time and thousands of dollars consumed by plan approval, permits and inspections at the local level. Add to that the state and federal approvals, such as for labels and recipes. Sugar Creek’s Flanigan has experienced frustration at the local level, even having had some familiarity with city permitting after starting up and managing Whisky River. “The permitting process is very strenuous,” says Flanigan. “I would definitely suggest anyone starting a brewery seek appropriate legal help through the permitting process—preferably find

someone familiar with the process.” Even without having to get recipes, labels and other aspects approved again by state and federal authorities, the city’s scrutiny through plans, permits and inspections is extremely trying. Birdsong Brewing’s Chris Goulet knows because he did it three years ago and is doing it again as the brewery is in the process of opening a second, larger location. “There are at least five different government agencies that monitor or restrict our business, and each of them has its own unique set of bureaucratic complexities to deal with,” says Goulet. “The process for the expansion is just as challenging as the original brewery. While a few zoning laws have changed, there are still many thousands of pages of county ordinances to take into account.”


Particularly in Charlotte, starting a brewery is a complicated process. Although zoning laws have been amended to make it easier to locate, there are months of time and thousands of dollars consumed by plan approval, permits and inspections at the local level. Add to that the state and federal approvals, such as for labels and recipes. Continuing Undaunted But even these regulatory complexities do not seem to have daunted Charlotte’s rising crop of brewers. There are some

Charlotte Area Craft Breweries

different circumstances that portend well for the beer craft. For example, prior Charlotte breweries had smaller scale production and very limited distribution. “We have broad support from Charlotte area bars and restaurants, so we’re not totally dependent on selling beer in one location,” explains Goulet. Additionally, he points out, brewers have also learned how critical it is that their product be consistent and high quality, which is not easy for a process that is essentially a biochemical reaction drawn out over days, weeks and even months with barrel aging. Flanigan describes the greatest difficulty in brewing as “the quality of beer and making sure the beer is exactly right every time.” He says, “You’ll hear that 95 percent of a brewer’s life is spent cleaning, and it’s true.” More plentiful options have also helped area breweries. In 2005, North Carolina gave brewers more latitude by raising its cap on alcoholic content in beer from 6 percent to 15 percent. Since then, North Carolina has grown from 25 breweries in 2006 to more than 120 breweries currently. That growth, making it the fourth-fastest growing state for craft breweries, is what attracted craft brewery powerhouses Sierra Nevada (California), Oskar Blues and New Belgium (both Colorado) to open east coast facilities in the Asheville area. About another dozen unannounced breweries are already incorporated with Charlotte addresses, according the North Carolina Secretary of State’s listing of corporations. But the trend is by no means limited to Mecklenburg County. Breweries are planned and opening up in Gaston, York, Union, Cabarrus and Iredell counties. “Consumers have discovered authentic flavor from their local breweries, and they don’t want to go back to that box of beer that tastes like nothing,” claims Margo Knight Metzger, executive director of the NC Craft Brewers Guild. “And they’re creating new beer drinkers because of the quality flavor and local source of the craft beers.” That fact is particularly evident as the annual economic impact of craft breweries in North Carolina was $800 million and 10,000

jobs in 2013. That economic potential was noticed this past spring by South Carolina legislators, who are currently considering a bill to loosen restrictions on how much a brewery can produce and where it can sell. The culture is also different, with roots deeply set in the community. Breweries, many with large, open industrial spaces, host a constant rotation of running clubs, charity fundraisers, yoga classes and bands. “We really take a community-first approach,” says Chris Harker, founder of Triple C Brewing, which throughout its three years has hosted almost weekly charity events. “We don’t need to be the biggest brewery and might get a little bigger, then level out. We want our friends and neighbors here, and we want to give back.” Especially startup breweries express a strong sense of camaraderie among brewers. Says Flanigan, “Everyone scratching everyone else’s back, that’s what drew me to this culture. Everyone’s working together for the same common goal.”

9

Content contributed by Sam Perkins, a Greater Charlotte Biz freelance writer and craft beer aficionado. Some images of Charlotte area breweries provided by Sam Perkins. greatercharlottebiz.com | january/february 2015


More than

330

More than

50

locations worldwide

countries globally

World’s Largest Airline Nearly

6,700

flights around the globe

january/february 2015 | greatercharlottebiz.com


taking O�� by barbara fagan

American Airlines Merger Enhances Our Strategic Assets

L

ast December marked the first anniversary of the merger of American Airlines and US Airways, which created holding company American Airlines Group, Inc. (NASDAQ: AAL), and made American Airlines the largest airline in the world. When the merger was first announced in 2013, many in Charlotte saw it as a benefit to the area, but others had concerns about the future of Charlotte Douglas International Airport and its role in the post-merger American network. Charlotte Douglas, which serves more than 39 million passengers annually, is widely considered a strategic asset in attracting and maintaining businesses for the area and figures prominently in local leaders’ vision for making Charlotte a future global hub of trade. Prior to the merger, US Airways operated 90 percent of daily flights in and out of Charlotte Douglas, with Charlotte Douglas as its largest hub. As the integration of the two airlines progresses, the US Airways brand is eventually absorbed and rolled into American, operating 90 percent of the airport’s daily flights, with Charlotte Douglas as its second largest hub behind Dallas/Fort Worth. So a year into it, how is the merger going? According to Chuck Allen, American’s managing director of government affairs, “It’s been a busy year. A lot has been accomplished, but this is a multi-year undertaking and we have a busy year coming up too.”

11

#GoingForGreat greatercharlottebiz.com | january/february 2015


Charlotte Douglas International Airport

“CHARLOTTE HAS EXCEEDED OUR EXPECTATIONS FOR A LONG TIME. IT’S A GREAT OPERATION AND NOW IT’S THE SECOND LARGEST HUB IN THE WORLD’S LARGEST AIRLINE. WE CONTINUE TO LOOK AT OPPORTUNITIES, BUT CHARLOTTE WILL CONTINUE AS A TERRIFIC EAST COAST DOMESTIC HUB FOR US.”

An early accomplishment of the past year was linking the two airlines’ route networks. In January 2014 the airlines began code sharing, placing their designator codes and selling tickets on each others’ flights. “We’ve created the largest code share in the industry,” comments Allen. “This gives customers access to the combined network.” The combining of the two airlines’ mostly complementary rather than competitive routes has created a substantial network. With the inclusion of the wholly-owned and third-party regional carriers operating as American Eagle and US Airways Express, the new network consists of nearly 6,700 flights per day to 339 destinations in 56 countries from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. And while the airlines’ frequent flyer programs have not yet combined, customers can currently earn and redeem miles on flights operated by either airline and have reciprocal access to clubs and upgrades. Another past year milestone is the consolidation of duplicative operations. “We’ve combined operations in 82 different cities,” says Allen. “That allows us to be more efficient in the cities in which we’re co-located.” When asked how that affects the airlines’ Charlotte labor force, Allen responds, “We’ve co-located

Daily Flight and Destinations*

American Airlines Source: AA Q2 2014 FACTSHEET: July 24, 2014

W. Douglas Parker Chairman and CEO American Airlines Group Inc. American Airlines, Inc.

ticket counters and absorbed those employees so there haven’t been any employment reductions. “Right now, American employs over 10,000 in Charlotte. That will remain fairly consistent. Obviously, we look for additional flight opportunities out of Charlotte and that might drive future employee hirings. “Companywide, we’ve been hiring people—more than 650 new pilots and over 2,000 flight attendants this year.”

Going for Great In addition to new employees, American is also acquiring new aircraft. They took delivery of nearly 100 new aircraft in 2014, giving the airline an average aircraft age of 12.3 years and the distinction of having the youngest fleet of any U.S.-based network carrier. Orders of new aircraft continue with 112 expected in 2015 and 84 in 2016. “We’re taking delivery of a new airplane and retiring an older one about every four days,” says Allen. “These new aircraft are passenger-friendly and more fuel efficient than the aircraft they’re replacing.” The company reports orders of the Airbus A320 family, A350-900s, Boeing 737 MAX, 777-300ERs and will receive its first Boeing 787 Dreamliner this month. In addition to new aircraft, American intends upgrades for much of its existing fleet. Refurbished interiors and new seats are planned for many aircraft including lie-flat seats in Business Class on both the 767-300s and 757s. The 93 A319s of the legacy US Airways’ fleet will also receive new seats and 24 main cabin seats offering extra space. Improvements to in-flight entertainment and connectivity are also planned. By the end of 2016, all of the airline’s 777-200s will be retrofitted with in-seat entertainment systems and a walk-up bar.

Hub Operations Includes AA and US Mainline and Regional 12

Source: AA Q2 2014 FACTSHEET: July 24, 2014

january/february 2015 | greatercharlottebiz.com

Chuck Allen Managing Director Government Affairs American Airlines, Inc.


“WE’RE TAKING DELIVERY OF A NEW AIRPLANE AND RETIRING AN OLDER ONE ABOUT EVERY FOUR DAYS. THESE NEW AIRCRAFT ARE PASSENGERFRIENDLY AND MORE FUEL EFFICIENT THAN THE AIRCRAFT THEY’RE REPLACING.” Customers will also have an easier time powering devices in-flight. New 737s, nearly all new A321s as well as retrofitted A319s will have power ports in every row. And all new wide body deliveries, including 777-300ERs and 787s will have power ports at each seat. Satellite-based internet access on all 787s, 777s, A330s and retrofitted 767-300s and 757s will allow connectivity on international flights. The aircraft upgrades are just part of $2 billion in customer improvements American recently announced. The airlines’ nine hubs, including Charlotte, will also receive capital improvements. Updated lobby designs and additional newer, faster and more reliable kiosks will streamline the check-in process. New

worktables with 12 power outlets each and seating for eight will allow travelers to charge up devices near the gates in hub and gateway airports. The company’s Admirals Clubs will also get a facelift with refurbished restrooms and shower facilities, improved technology, and expanded and healthier food options.

“Now that we have the network to complete globally, we’re going to deliver a product that’s better than our competitors,” explains American’s Chairman and CEO Doug Parker. “Refreshed cabins and clubs, modernized ticket counters, improved technology and new aircraft are further examples of how American

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is ‘going for great’—providing our outstanding team members the tools they need to deliver a great experience for our customers.”

Soaring Profits

“REFRESHED CABINS AND CLUBS, MODERNIZED TICKET COUNTERS, IMPROVED TECHNOLOGY AND NEW AIRCRAFT ARE FURTHER EXAMPLES OF HOW AMERICAN IS ‘GOING FOR GREAT’—PROVIDING OUR OUTSTANDING TEAM MEMBERS THE TOOLS THEY NEED TO DELIVER A GREAT EXPERIENCE FOR OUR CUSTOMERS.”

The announcement of the $2 billion airline improvements comes in the wake of a banner financial year for American. Third quarter 2014 net profits, excluding net special charges, was a record $1.2 billion, an increase of 59 percent over 2013 third quarter results. Third quarter 2014 GAAP net profit was $942 million, the largest in any quarter in the history of the airline. The company also declared its first dividend since 1980, returning $185 million to shareholders through payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock. “Our chairman has said the fourth quarter will also be a record fourth quarter so we’re going to have a record year of profitability for the company,” adds Allen. While the challenges of the first year of the merger appear to be successfully met, the airline admits 2015 is a year of “heavy lifts.” Behind the scenes, the company is working on getting a single operating certificate from the Federal Aviation Administration (FAA). “We have to combine the American and US Airways operations into one single book of operating procedures and the FAA must bless that,” explains Allen. “It’s extensive and very detailed but it should be completed by the summer of 2015.” By the second quarter, American plans on merging the two carriers’ frequent flier programs. Mileage totals will combine for those having active balances in both

Top 4 US Airways Hubs by Domestic Seats & Market Share — Feb 2014

AAdvantage and Dividend miles programs. And for the time being, American will continue to award points based on miles flown rather than on ticket cost, a change recently made to frequent flyer programs at Delta and United. One of the “heavier lifts” of the upcoming year is the combination of the two carriers’ reservation systems. “This integration is behind the scenes but can be very visible to the public if we don’t do it right,” says Allen. American has cause for concern. The integration of US Airways’ and America West’s reservation system a year and a half after their 2005 merger caused serious disruption at several airports. Combining the reservation systems of United and Continental was similarly problematic in 2012. But the heaviest lift of all might be the Herculean effort of unifying 100,000 employees into a single workforce. After a narrow loss last November and subsequent binding arbitration, American and the Association of Professional Flight Attendants reached an agreement worth $112 million in late December that would cover the 24,000 flight attendants of American and US Airways. Efforts continue with pilots, passenger service agents, mechanics and ground workers. Not surprisingly, in a past year of record profits for American, profit-sharing has become a source of contention. While several other airlines have employee profit-sharing, American’s management prefers fixed pay increases. Negotiations continue. “We are laser-focused on all the 2015 issues,” Allen states, “so if there are any surprises we can deal with them immediately. Obviously, our goal is to make sure there are no surprises.”

Fully Engaged So a year in, what has the merger meant for service out of Charlotte?

Customer Benefits

Top 5 American Airlines Hubs by Domestic Seats & Market Share — Feb 2014

14

Source: OAG Aviation Worldwide Limited

january/february 2015 | greatercharlottebiz.com


“Charlotte has exceeded our expectations for a long time,” Allen states. “It’s a great operation and now it’s the second largest hub in the world’s largest airline. We continue to look at opportunities, but Charlotte will continue as a terrific East Coast domestic hub for us. “We’ve got a lot of service out of Charlotte to the Caribbean year round. We’re now doing daily doubles to London and we’ll continue to fly to Frankfurt. We’ll also continue to do top destinations in Europe in the summertime. “Since the merger, we’ve added a number of new destinations in the Midwest like Tulsa and Oklahoma City.” When asked about the Charlotte Regional Intermodal Facility, which is located at the airport and enhances global trade for the area by facilitating cargo transfers among airlines, trucks and railroads, Allen responds positively. “It’s a great addition to Charlotte,” says Allen. “It provides opportunities that most airports in the country don’t have. We’re very pleased it’s here. “The new, larger network provides more opportunity on the cargo side in Charlotte, but cargo operations in this country are predominantly on wide body aircraft. As primarily a domestic hub, we fly very few wide bodies into Charlotte currently. Of course, the more wide bodies we have in the future, the greater our opportunities are.” While opportunities certainly exist, several current issues have the potential to

Top 10 US Domestic Carriers by Seats — Feb 2014

Top 10 US International Carriers by Seats — Feb 2014

Source: OAG Aviation Worldwide Limited

impact the future of American at Charlotte Douglas. The airline’s 30-year master lease with the airport, negotiated under legacy US Airways, expires in 2016. “I think we’re going to be partners for a long time,” Allen says on the topic. “We have a substantial investment here. The Charlotte operation is one of the best in the country. The airport is the most efficient in the world.” In fact, Charlotte Douglas’ historically low operating cost is a major part of its attraction for American or any airline and one of the reasons why there is so much at stake in the ongoing battle over who controls the airport.

“WE HAVE A SUBSTANTIAL INVESTMENT HERE. THE CHARLOTTE OPERATION IS ONE OF THE BEST IN THE COUNTRY. THE AIRPORT IS THE MOST EFFICIENT IN THE WORLD.” A judge’s ruling last October allows the city to maintain control of the airport and blocks an independent commission favored by state legislators from taking over. So far, the FAA has declined to weigh in on the decision. Expressing confidence in the current management at Charlotte Douglas, American Airlines remains neutral about who should control Charlotte Douglas. “Our position hasn’t changed,” says Allen. “We remain agnostic as to who runs the airport. “We just want to make sure that it’s run in the most efficient and cost-effective manner like it has for years. Management that keeps the airport as a low cost, efficient operation is what we want to see in Charlotte.” That low cost could soon be threatened, in part, not by airport management but by the North Carolina General Assembly. In 2006, North Carolina lawmakers approved a cap that refunded airlines any fuel taxes paid in the state in excess of $2.5 million. The cap, with an estimated value of $10 million of revenue to the state, is set to expire January 1, 2016. American is the largest beneficiary of the cap. “Taxes are an important factor in the cost of an operation,” says Allen. “Certainly, you want to put your assets where they have the greatest return for you. Virginia has a very low tax rate on fuel, as does South Carolina, and Texas has no tax on fuel. “The tax cap is certainly beneficial to American and if it were to sunset, as it’s scheduled to do at the end of the year, without being

continued or mitigated in some form, then that will change the cost dynamics in North Carolina and Charlotte. The fuel tax is the number one legislative issue we’ll be focused on in North Carolina for 2015.” According to a recent Tax Foundation blog, Illinois has the highest total tax rates for commercial jet fuel, followed by California and Connecticut. North Carolina is 20th on the list. Neighbors Virginia and South Carolina ranked 38th and 42nd, respectively. Texas, where American is headquartered and where it has its largest hub, doesn’t tax jet fuel. Neither do Delaware and Ohio. Airlines serving North Carolina are lobbying state lawmakers to extend the cap or even exempt the jet fuel sales tax completely. They estimate that if neither step is taken, North Carolina will be the fifth costliest state for the purchase of jet fuel. Despite upcoming challenges, Allen says American “will remain fully engaged in the Charlotte business community at multiple levels and in multiple organizations.” We’re very interested in the growth of Charlotte,” Allen continues. “That’s why we are members of the Charlotte Chamber of Commerce and Charlotte Regional Partnership. We think the Charlotte area has a lot of opportunity and we’re committed to making Charlotte grow.” Barbara Fagan is a Greater Charlotte Biz freelance writer. Some images provided by the company.

American Airlines Group Inc. 4333 Amon Carter Boulevard, MD 5675 Fort Worth, TX 76155 Phone: 817-963-1234 NASDAQ: AAL Principals: W. Douglas Parker, Chairman and CEO; J. Scott Kirby, President; Chuck Allen, Managing Director of Government Affairs Formed: December 9, 2013, by the merger of AMR Corporation, the parent company of American Airlines, Inc., and US Airways Group, Inc., the parent company of US Airways, Inc.; integration under a single operating certificate expected to be completed in late 2015; American Airlines, Inc. founded in 1930; US Airways, Inc. founded in 1937 Employees: 100,000-plus worldwide; 10,800 in Charlotte Revenues: Approx. $40 billion in operating revenue Combined Operations: Largest airline in the world, with more than 6,700 daily flights to 339 locations in 56 countries worldwide Business: Holding company for American Airlines and US Airways, as well as whollyowned and third-party regional carriers operating as American Eagle and US Airways Express. www.aa.com

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greatercharlottebiz.com | january/february 2015


carts are produced using a patented, stress-free molding technology known as Advanced Rotational Molding, which uses all the superior characteristics of conventional roto molding while enhancing the aesthetic and structural quality of all Toter products.

16

Here in this Toter brand manufacturing facility in Statesville, N.C., the Advanced Rotational Molding manufacturing process literally rotates the product within its mold, eliminating built-in stress and resulting product weakness associated with injection molded products.

january/february 2015 | greatercharlottebiz.com

Advanced Rotational Molding Process


Wastequip Doesn’t

Ta lk

— It Takes by andrew rusnak

Care of It

T

aking out the trash may seem like a chore, but for Wastequip, it’s big business. The company manufactures many of the common trash cans consumers use every single day, but it also manufactures a large variety of steel containers, compactors, and vacuum truck systems that are used across a variety of industries. “The company was founded in 1989,” explains Wastequip CEO Marty Bryant. “At that time, the focus was on the steel container side of things. But around 2007, Wastequip started to grow larger, integrate, and buy new brands. “Today, Wastequip is the leading manufacturer of waste handling and recycling equipment in North America. We specialize in products, systems and solutions to collect, store, transport, and manage a wide range of waste and recyclables. We’re one of the few companies that manufacture a complete line of both steel and plastic waste handling equipment.”

Trash Talk

Toter Bear Tight Cart

greatercharlottebiz.com | january/february 2015


Wastequip’s extensive product selection includes dumpsters, compactors, balers, carts and more. The company’s brands include Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Go To Parts. “In June 2012, New York-based private equity firm Centerbridge Partners purchased the company,” continues Bryant, “and I came to Charlotte along with that transition.” The Charlotte headquarters started out with 28 employees, but that number has grown significantly to nearly 80 professionals, with more than 1,600 nationwide. Bryant attributes much of this growth to the company’s team-based strategy developed in 2012. “I joke all the time that the CEO is the least valueadded position in the company,” laughs Bryant. “Prior to June of 2012, the company was run as one large entity, so we had all the corporate-type functions in a matrix-style

PRODUCT RANGE

“Wastequip’s extensive product selection includes dumpsters, compactors, balers, carts and more. The company’s brands include Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Go To Parts.”

fenix fotography

l to r John Defenbaugh President, Mobile Products Division Martin (“Marty”) Bryant President and CEO Robert Munroe President, Parts Division Wastequip, LLC

Wastequip Rolloff Cover

18

january/february 2015 | greatercharlottebiz.com

formation. So the leader was here and responsible for all the sales people, the company, and so on. Upon Centerbridge’s purchase of Wastequip, one of the first things we did was break that up into independent divisions in order to shrink the size of corporate.” In fact, in November of 2014, the company’s headquarters underwent a massive renovation to assist in furthering the breakup of a ‘corporate mentality’ by removing dividers and offices so that all employees, including the CEO, are now all accessible in one large floor space. In addition, the few offices that the company now has are almost all glass-enclosed in order to promote openness and transparency. Part of the reason for this is that Bryant himself started from the bottom and worked his way to the top, so he understands the feelings and needs of his staff. After serving in the military during Operation Desert Storm, Bryant returned to the United States and took a job as a janitor, later working on a Johnson Controls assembly line while attending college. He explains, “For me, it’s a privilege that I don’t ever take for granted to be the CEO. Also, I’m biased, of course, but our private equity firm is one of the best to work for in terms of a management team. So, I handpicked Wastequip to campaign to become the CEO of, and part of the reason for that was that Wastequip was and is a good, solid blue-collar company. “The waste industry itself is fascinating in that if you really could imagine for a little while if no one picked up garbage or efficiently processed waste…Wow!” He continues, “Additionally, the waste industry has an amazing history in the United States, including Martin Luther King Jr. and the 1968


“For two years in a row, Wastequip’s Charlotte headquarters has been selected as one of the best places to work in the city by the Charlotte Business Journal, and that means a lot, not only for professional success, but also in personal satisfaction.” In fact, last year, Republic Services, a respected waste services provider, struck a deal with Wastequip to only buy steel containers from the company, something that Bryant says speaks volumes about Wastequip’s ability to deliver quality products and superior service.

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garbage workers strike. We’ve made huge strides in American manufacturing.” As a result of Wastequip’s changes, the company currently occupies the number one space in its industry for a variety of products, and Bryant states that the only reason that some products are in the number two space is because of the lack of a need to grow into certain areas at the moment. Wastequip is set to take over a number of segments, but for now, the company is working on a strategy that runs very deep, and that strategy includes evaluating safety, efficiency and employee satisfaction. “We do take our management very seriously, and we’re also serious about our safety culture and employee happiness,” states Bryant. “The first money spent upon acquiring Wastequip went toward upgrading bathrooms and breakrooms, things that really matter to our employees. We also haven’t raised our insurance rates since 2012, and this year, we expect to reduce costs a bit further.” In the waste disposal and treatment industry, most large companies have several facilities in a geographical area, but due to Wastequip’s footprint across North America—including plants in the United States, Mexico, and Canada—it can service national brands easily.

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Positioning Itself Strategically Bryant is definitive on the company’s North Carolina location: “While Wastequip was headquartered in Charlotte in 2012 at the time of our purchase, we had the opportunity to move the company anywhere in the United States, but we stayed here for a multitude of reasons. You can be at the beach in a few hours, you can be in the mountains in a few hours, you’ve got great arts and entertainment here.

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The iconic Toter brand is part of Wastequip’s Plastics Division. Toter’s wide range of products includes twowheel carts for automated and semi-automated curbside collection of waste, recyclables and organics, as well as stationary containers and front-load containers.

Toter Composter

Wastequip’s Manufacturing and Installation Footprint

“As the company has split itself into divisions and brands, it has not only grown in size, but also in customer base, and experienced the synergies of vertical integration.”

Stationary Compactor

january/february 2015 | greatercharlottebiz.com

“Opportunities as far as education abound, and it’s one of the fastest growing cities in the country. We have yet to call and recruit someone and say we’re from Charlotte and it’s not a bonus, whether they’re in New York, Los Angeles, or anywhere in between.” Aside from selecting great employees and managing staff like pros, Wastequip also has an eye for the long term. In the past, the company only offered steel containers, but now, it is concerned with everything from how to collect waste to where it’s going for recycling, waste energy, and landfill transfer. Wastequip has products to suit individual consumers, small business owners, all the way up to the larger commercial side with its steel containers. And it also provides hoist truck components that pick up the steel containers, tarps that secure waste in trucks, compactors that require fewer pickups, vacuum trucks that work in oil and gas exploration, and a parts division that services all of its products. “As the company has split itself into divisions and brands,” comments Bryant, “it has not only grown in size, but also in customer base, and experienced the synergies of vertical integration.” “Marketing our brands includes direct

sales employees who are long-term waste industry veterans, but we also market to authorized dealers who are exclusive to us. Then again, with Toter, for example, we market through retail in stores like Lowe’s and Home Depot,” says Bryant. “So, we go across all three of those depending on what’s best for the specific brand. However, our new parts division that launched in 2014 (www.gotoparts.com) is taking off, and customers can order directly from the website, making it a huge plus for both Wastequip and its customers.” The company has also helped customers by building brand loyalty—creating products that customers need before customers even know they need them. Constantly creating and innovating, Wastequip’s research and development team looks through customer feedback surveys in order to find out what works and what doesn’t. On top of that, the company is working with UNC Charlotte on a new way to address consumer convenience issues, signaling a major shakeup in the way that waste is processed. Bryant continues, “When it comes to building brand loyalty, our research and development team works very hard to constantly create new and innovative products for our customers, but also, the main part of our core business is that we take our customer service seriously. When a customer has worked hard to earn a dollar, and he or she has decided to share that dollar with us, we truly value that, and as a result we have to ensure quality products are delivered on time, every time.” “Our Galbreath hoist systems and Pioneer tarp systems are by far the most preferred in the industry,” Bryant adds, “and that’s why we hold command positions with those products…that’s something we’re very proud of.”

Waste Disposal and the Future In order to keep up with advances in waste disposal technology, Wastequip has already taken steps to maintain the lead. The company’s Galbreath brand above-frame hoist allows customers to rapidly switch to compressed natural gas, and the switch to natural gas is a trend that the waste disposal industry is quickly adopting due to its lessened impact on the environment. “Additionally, Wastequip is supplying intermodal containers that are steel and leakproof to commercial customers in New York City to remove trash and ship it on barges in order to reduce pollution,” says Bryant. “If you think about it, every segment of every industry produces some type of waste,


so there’s no limit to who we can serve. We sell a lot to haulers that are serving every industry from health care to schools to private homes. A lot of our Toter products are sold to government, and Cusco products, provided by our vacuum truck systems division, are used heavily in the oil and natural gas industries.” To meet the growing need for waste disposal, transport and processing into the future, Wastequip is taking a very active role in selecting employees. The company is focusing heavily on human resources, an area that has not been broken out like its other divisions, and candidates are heavily screened not only to see if they fit the culture of Wastequip, but also to see if Wastequip is the right fit for the candidate. Bryant continues, “Supervision is teambased; we pay attention to how many supervisors we have. We try to keep the organization as flat as possible. Measuring success, on the people side, we do an annual, anonymous survey to see where concern areas are. For two years in a row, Wastequip’s

technology is making it so that consumers have to think less and less about their disposal choices while taking still caring for the environment,” Bryant points out. “There are a lot of inventors out there, and that’s good for the industry. The fact is, you’ve got a core set of products that are always going to be there, but you also have fringe products that are helping to move things forward. The industry is getting more sophisticated. “For example, many garbage trucks today have GPS tracking, and they can measure the amount of trash in a can so they can be routed more efficiently. Technology is definitely a major factor, and we are fully embracing innovative ideas. “We’ll continue to stay organic in our drive to bring in new customers, but with the launch of our parts division at gotoparts. com, I’m sure we’ll drive additional business as well,” comments Bryant. “We’ll also continue to expand into new services, and we’re always evaluating acquisitions that make sense for us as a company. “It’s a great time to do business in the Carolinas!” Andrew Rusnak is a Greater Charlotte Biz freelance writer. Some images provided by the company.

Wastequip, LLC 6525 Morrison Blvd, Ste. 300 Charlotte, N.C. 28211 Phone: 877-468-9278 Principal: Martin (“Marty”) Bryant, President and CEO; Stephen (“Steve”) Svetik, CFO; Rusty Andrews, CIO; Nick Wiseman, Chief Human Resources Officer Parent/Holding Company: Patriot Container Corp. Founded: 1989 (although some Wastequip brands date back to 1945 due to acquisitions) Employees: 1,600; 80 in Charlotte Locations: Headquartered in Charlotte; 32 manufacturing plants across North America Brands: Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Go To Parts Business: Manufacturer of waste and recycling equipment with an international network of 32 manufacturing facilities and the most extensive dealer network in North America; Wastequip’s broad range of waste and recycling equipment and systems are used to collect, process and transport recyclables, solid waste, liquid waste and organics. www.wastequip.com www.toter.com www.gotoparts.com

“Marketing our brands includes direct sales employees who are long-term waste industry veterans, but we also market to authorized dealers who are exclusive to us. Then again, with Toter, for example, we market through retail in stores like Lowe’s and Home Depot.” Charlotte headquarters has been selected as one of the best places to work in the city by the Charlotte Business Journal, and that means a lot, not only for professional success, but also in personal satisfaction.” Going forward, Bryant is excited about the manufacturing sector. In the waste industry, he says that keeping communities healthier, safer, and more beautiful is a major priority, but he views things on a nationwide basis. “The waste industry will expand as populations grow, not only in the United States, but across the world, and there will always be a need for professionals to collect, process, and dispose of waste. Additionally,

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“Our core purpose is to drive waste out of the flexographic and rotogravure printing process. Doing so not only improves bottom line productivity, but also preserves our environment well beyond the pressroom.” ~ Paul Sharkey

(l to r) Paul W. Sharkey President and CEO Ryan Sharkey Area Business Manager FLXON Inc.

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january/february 2015 | greatercharlottebiz.com

FLXON is a high-technology service provider to the North American flexographic and rotogravure printing, coating, laminating and converting markets. Our business philosophy is deeply rooted in a commitment to establish relationships with printers and convertors based on improving their process and their bottom line. fenix fotography

Front Row (l to r): Karla Wood, Olma Echeverri, Isabel Almeida Back Row (l to r): Efrain Martinez, Paul Sharkey


Packaging The Sale

by zenda douglas

F

Remaining Competitive

ar beyond labels, companies now use the entire package of a product to convey advertising messages with words, images and graphics, in an array of bright designs and appealing colors. Packaging, printing, and product branding have become multi-billion-dollar, multi-faceted industries that support each other. The North American flexible packaging industry is growing at a rate of six percent per year, largely based on population growth. According to industry analyst Smithers Pira, the global flexible packaging industry is set to reach $231 billion by 2018. Within the mammoth printing industry is Charlotte’s own FLXON, an innovative consultative sales, marketing and distribution company that, for the past 20 years, has serviced flexographic and rotogravure printers of consumer product packaging. Rotogravure (roto or gravure for short) is a type of printing process, which involves engraving the image onto an image carrier. In gravure printing, the image is engraved onto a cylinder because, like offset printing and flexography, it uses a rotary printing press. Flexography (often abbreviated to flexo) is a form of printing process which utilizes a flexible relief plate. It is essentially a modern version of letterpress which can be used for printing on almost any type of substrate, including plastic, metallic films, cellophane and paper. The rotogravure method has been in use since the 1850s. The newer flexographic method is applied to flexible substrates such as potato chip bags, frozen foods, and cartons for yogurt. Both methods are used for large runs.

fenix fotography

FLXON Wields the SWEDCUT Blade Effectively


SWEDEV DOCTOR BLADES

SWEDCUT is a premium brand of high performance costeffective blade materials specifically developed to meet the many application needs of flexographic and rotogravure printers and coaters. These high performance doctor blades are used by discriminating printers throughout the world. FLXON is the exclusive distributor of SWEDCUT blades within the North American Free Trade Agreement area.

Fashioning The SWEDCUT Doctor Blade:

Design

Wielding the Doctor Blade

“There are plus or minus 6,000 flexographic and rotogravure printers in our coverage area. We consider our target audience to be wide or narrow web flexible packaging printers and high quality label printers who understand the value of our proposition.” january/february 2015 | greatercharlottebiz.com

“When you go into a supermarket or retail store, almost everything you see that is printed is printed by either the flexographic or rotogravure methods,” says Paul Sharkey, president and CEO of FLXON, Inc. “Our business philosophy is deeply rooted in a commitment to establish relationships with printers and converters based on improving their process and their bottom line,” Sharkey continues. “FLXON’s mission is to partner with them to drive waste from their process, thereby helping them to be more precise in their quality, improve sustainability, remain price competitive, and earn greater profits. Savings on waste can go to their bottom line or in next year’s price negotiations between the printer and their clients. “Waste in printing consists of process-related print defects such as streaks, hazing or shifts in color that their customers would reject,” explains Sharkey. “Waste can also mean loss of production time resulting from stopping a press mid-run to replace the ink metering blade, also known as the ‘doctor blade.’ “The doctor blade is at the heart of the printing unit, controlling the ink volume to be transferred. It is used to remove excess ink from the roller transferring ink to the substrate, which may be of a variety of materials from coated paper stock to film.” This is where FLXON’s innovation and vision has helped to move the industry forward. Sharkey says he started his business by introducing a superior, highperformance, steel printing metering blade called SWEDCUT to North America, Canada and Latin America. “The SWEDCUT blade, manufactured by Swedish Development Company in Munkfors, Sweden, is made of super refined steel that lasts longer with less negative impact on the printing press, particularly to the anilox roll or ink transfer roller, an integral part of the press,” Sharkey explains. “FLXON is the exclusive distributor of SWEDCUT blades within the North American Free Trade Agreement (NAFTA) area.

The SWEDCUT blade, custom-designed, engineered and only manufactured by Swedish Development Company in Munkfors, Sweden, is made of super refined steel that lasts longer with less negative impact on the printing press, particularly to the anilox roll or ink transfer roller, an integral part of the press.

Formulation

Fabrication

Tempering

Slitting; Final Product


“FLXON’s more than 500 customers are spread out over Canada, the United States, Mexico and the Caribbean. Our customers print wine and beverage labels, health and beauty packaging, food-related flexible packaging, folding cartons for cereal and ice cream and more. The list includes everything seen in a supermarket or retail store plus pharmaceuticals, tobacco, gift wrap, envelopes, wall and floor coverings and magazines.” Printers include companies such as Bemis Flexible Packaging, Sealed Air, Sonoco, Printpack, Bryce, Rock-Tenn, Georgia Pacific, CCL Labels, Multicolor, and Mac Papers. “There are plus or minus 6,000 flexographic and rotogravure printers in our coverage area,” remarks Sharkey. “We consider our target audience to be wide or narrow web flexible packaging printers and high quality label printers who understand the value of our proposition.

photo by fenix fotography

This ad would be better with a great photo.

“Our product is always coming from one source. We know the origin completely and our product is always manufactured to become a doctor blade. The microstructure of the steel has a lot to do with the performance of the product and we’re the only doctor blade provider that speaks about the steel itself.” “Printing is a precise, detailed and very technical industry which operates with expensive equipment. Our customers know that the smallest detail can affect a buyer’s choice. You go into the supermarket and reach for the product you want. But, if you’re not sure, the packaging begins to assist you in your decision, and you might pick the one that has a higher quality printing and color appeal.” Some industries, such as tobacco, have a zero tolerance for printing defects. Others, like the fast-food industry, are less concerned about absolute perfection in their packaging. “This is because with fast food, the product is already sold to the end-customer before they become engaged with the packaging,” explains Sharkey.

(So would yours.)

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Flexography (often abbreviated to flexo) is a form of printing process which utilizes a flexible relief plate. It is essentially a modern version of letterpress which can be used for printing on almost any type of substrate, including plastic, metallic films, cellophane, and paper.

Rotogravure (roto or gravure for short) is a type of intaglio printing process, which involves engraving the image onto an image carrier. In gravure printing, the image is engraved onto a cylinder because, like offset printing and flexography, it uses a rotary printing press.

Engagement with potential customers begins with trained FLXON staff sitting down with printers and converters to determine if there is a problem with waste through defects, frequent press stops, press speeds, or repetitive wear to individual parts of the equipment. “We’re very selective with our time. We want to make sure we are connecting with the people we need to be working with,” says Sharkey.Addressing the Marketplace FLXON is fully staffed with 14 employees. “We are in growth mode and very proactive,” Sharkey says. “This past year we’ve hired a full-time marketing manager and two customer satisfaction staff members. We get high marks on service. Calling on them before they are calling you helps us both.” “But we don’t want our sales team doing that work. Rather, we want them to focus solely on generating business.” The company divides its business into six geographic territories, each one with a business development manager to build the business. Most employees live in and travel from Charlotte; one covering the Northeast lives in Pennsylvania. More than half of FLXON’s employees are fluent in Spanish. “Mexico offers our greatest potential for growth,” explains Sharkey. “Many U.S. and Canadian companies have moved production there. It is extremely valuable to us to have FLXON staff that are bilingual in products are English and Spanish. engineered to reduce “The Mexican market is the need for solvent additives at press, hasten solvent the big opportunity for us. emissions into the atmosphere, Factories there are bigger and allow for more efficient and newer; there is more investshorter cleaning cycles, and significantly decrease ment there than in the U.S. at energy required. this point. Some of the factories have eight to 10 printing presses, whereas here there are usually one or two. Many Canadian companies shut down factories in Canada and opened up more in Mexico. European companies are also investing in Mexico.” Also vital to FLXON’s growth is the state of Wisconsin. “It is the most significant state for us,” says Sharkey. “They have so much printing and packaging

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“Our customers print wine and beverage labels, health and beauty packaging, food-related flexible packaging, folding cartons for cereal and ice cream—everything seen in a supermarket or retail store plus pharmaceuticals, tobacco, gift wrap, envelopes, wall and floor coverings and magazines.” because of the amount of food processed there—dairy, cheese, potatoes, and cranberries.” FLXON maintains a warehouse and assembly plant for technical support and new product development in Appleton where customers can send used metering blades for detailed analysis and feedback about how they performed on press. “This process helps us to develop new customized press components that perform better in a particular or unique application. These products include peristaltic pumps to transfer ink more efficiently, high capacity ink filters, and a variety of blade holders,” says Sharkey. “Kansas, Missouri, Pennsylvania, and Texas also offer good market potential; they are all big food producing states.” Sharkey is satisfied that his company is located in the best place possible: “Many people don’t know that Charlotte is one of the major centers for flexo and rotogravure printing technology,” he says. “Many support companies, including Flint Group, Sun Chemicals, Harper Corporation of America,


ARC, Ceramco, INX, Tesa Tape, and others, are making anilox rolls, ink and graphics operating here in support of the rest of the country. “Part of the reason for this concentration,” he points out, “is that the manufacture of anilox rolls is very similar to the manufacture of rotary screens that were used in the textile industry.” FLXON expects future growth to be around 20 percent in 2015 and anticipates doubling current levels within the next five years, according to Sharkey. “We have a clear path; we know where we’re going to go to get it. There is already enough in the pipeline to carry us far,” shares Sharkey.

Their Competitive Edge FLXON contracts with Specialized Warehouse Service for warehousing and distribution services. Large container-sized shipments arrive by sea every other month. The company also places spot orders for materials to arrive by air. “They have three people dedicated to FLXON,” says Sharkey. “Using contract services allows our team to concentrate efforts on customer service and support.” FLXON’s relationship with Swedish Development Company is critical to its mission. The specialty steelmaking company is a single-sourced company that manufactures precise products such as the doctor blade. It’s made of strip steel as are razor blades. None of this is manufactured in North America, according to Sharkey. “Our competitors are buying strip steel— long and flat—but they are buying in a marketplace where they don’t always know where the steel is coming from. Lots of manufacturers are making steel without knowing what the final use will be—Venetian blinds to razor blades,” explains Sharkey. “Our product is always coming from one source. We know the origin completely and our product is always manufactured to become a doctor blade. The microstructure of the steel has a lot to do with the performance of the product and we’re the only doctor blade provider that speaks about the steel itself.” Sharkey started FLXON in July of 1995, having spent 19 years serving the flexographic printing industry in the U.S. and Canada. “It was a period of great technical advancements that remarkably improved the printing process,” says Sharkey. “As the vice president of sales and marketing for an anilox roll manufacturer here in Charlotte, I had the opportunity to work with major printing and packaging companies to help them upgrade their process.”

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Sharkey traveled extensively, increasing his exposure in the industry. It was during this time that he discovered the steel ink metering blade being manufactured in Sweden and used by printers in Europe but not yet in North America. Sharkey is originally from Long Island, N.Y., and met his wife, Carol, who is from Charlotte, while attending college. He first worked in the D.C. area in sales, marketing and advertising for the General Electric Corporation. Then, he moved with his wife to Charlotte to work with Ron Harper & Associates. Following that he worked with Consolidated Graving and then Anilox Rolls Company. “I realized that I had done all that I could as an employee and that I really did want to start a business,” he says frankly. Running a successful, growth-oriented business comes with a few challenges. Among them is constantly monitoring and adapting to the foreign exchange rate. FLXON buys bulk container-load quantities and pays in Swedish Krona (SEK). “After a long period of the dollar being down against the SEK, it’s starting to rebound,” acknowledges Sharkey. The most significant challenge the company has faced is getting through the 2008-2009 recession. “In 2008, six of our top 10 customers closed their doors. In all, we lost 30 percent of our business as a result of closures and reductions in our customers’ business. We didn’t have any layoffs but were not able to fill vacancies.”


fenix fotography

The industry went through a major consolidation over the following few years. Says Sharkey, “While it should have been an ideal time for us to gain new business based on our ability to help reduce waste and costs, it was not because customers were faced with layoffs, overworked employees and overall uncertainty.” “It took us until 2012 to regain the same revenue levels we had achieved in 2008. However, in the process we have increased our customer base, largely by gaining business with higher quality printers who were focused on improved productivity. Making it through has made us a more focused company.” Sharkey does not see the need for additional

locations in the foreseeable future: “We can distribute out of Charlotte to anywhere. We can ship faster out of Charlotte to Guadalajara than if we had a facility in New Mexico.” Although Sharkey is nearing retirement age, he has no plans to retire anytime soon. But he admits to putting in too many hours and wanting to have a transition plan for his son, Ryan, to take over the business. Ryan currently serves as the company’s area business manager. Sharkey’s stellar career puts him in a good position to give advice: “People often fail in

the first year of business because they are not prepared to start a business.” He urges entrepreneurs and others who want to go into business for themselves to save up the necessary start-up money and practice due diligence with research, “beyond what you want to do or sell, there is a business side of things.” Zenda Douglas is a Greater Charlotte Biz freelance writer. Some images provided by the company.

“Our customers know that the smallest detail can affect a buyer’s choice. You go into the supermarket and reach for the product you want. But, if you’re not sure, the packaging begins to assist you in your decision, and you might pick the one that has a higher quality printing and color appeal.”

FLXON, Inc. 8531 Crown Crescent Court Charlotte, N. C. 28227 Phone: 704-844-2434 Principals: Paul W. Sharkey, President and CEO; Ryan Sharkey, Area Business Manager Established: 1995 Employees: 14 Affiliations: Flexographic Technical Association, the Gravure Association of the Americas, and the Tag and Label Manufacturers Institute Business: High-technology service provider to the North American flexographic and rotogravure printing, coating, laminating and converting markets. www.flxon.com

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fenix fotography

(l to r) Gregory T. Welsh Business Development Carlton T. Burton President and CEO Burton Engineering Associates, P.C.

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HSBC Eastern U.S. Headquarters, Lancaster, S.C.

by carol gifford

ATTITUDE

“When we join the team, it becomes as much our project—and we take ownership of it. We have a passion for what we do. Our role is pretty integral to the project. We go beyond the project specifications. We want to understand our client’s business model.”

US H

WY 5

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Edgewater Corporate Center, Lancaster, S.C.

US HWY 521

AND

HANDS-ON CAN-DO

BURTON ENGINEERING ASSOCIATES EXHIBITS PASSION, ENERGY AND CAPABILITY

SITE PLAN

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ivil engineers don’t stand out at a construction site. They usually play a supporting role to the architects and general contractors designing the project. However, one Charlotte civil engineering firm is breaking that stereotype: Carlton Burton is a hands-on problem solver who assumes an active leadership role in his firm’s projects. “Site work is the largest variable cost in a project,” says Burton, president and founder of Burton Engineering Associates located in the SouthPark area. “Construction project managers can calculate the costs of the building and land acquisition pretty accurately. “What is unknown is the cost of preparing the site,” he continues. “Preparing the subsurface conditions and storm water drainage—all the earthwork—it varies from location to location.”

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Whitehall Business Park, Charlotte N.C.

Whitehall Corporate Center features the standout 25-foot sculpture Metalmorphosis, a 14-ton stainless steel motorized head created by Czech artist David Cerný. It sits in a reflecting pool and different sections of the head rotate, forming clusters of new shapes. When all the facial features line up, the sculpture spits out water. 32

january/february 2015 | greatercharlottebiz.com

Having a Passion Burton Engineering Associates is the “problem solver” for clients’ construction projects according to Greg Welsh, a civil engineer who joined the firm last year. He explains that when prospects are considering sites, the two largest unknowns are the site development costs and the potential tax incentives. So from that perspective, each project has at least two essential players: a civil engineer and an attorney. “When a client is considering various sites,” describes Burton, “we can quickly and accurately prepare building and site layout scenarios, preliminary grading, and infrastructure concepts which are then used for pricing. We look at what our clients want and figure out how to create something out of nothing.” He recalls a recent meeting with a client who asked him how he would envision a site development. He says he grabbed a marker and sheet of paper and sketched out his site plans. “Our client was surprised that I could draw it out for him—model it and show him in real terms what it would look like,” he says,

noting that a good civil engineer has to be able to show what a plan will look like and why it is relevant and economical to build. “He was amazed that when the project was completed, it looked like my drawing and was within less than a foot of my dimensions,” Burton laughs. “When we join the team, it becomes as much our project—and we take ownership of it. We have a passion for what we do,” he says earnestly. “Our role is pretty integral to the project,” confirms Welsh. “We go beyond the project specifications. We want to understand our client’s business model.” The business had a humble start in 1992. Burton, a civil engineering graduate of UNC Charlotte, had worked for a few firms and “got the itch” to start his own company and do better work. He started working out of his home. When his wife nixed the idea of getting a copier delivered to the home, he decided to sublet a 10 foot by 10 foot space, or as Burton describes, an “old break room with orange shag carpet.” “I started with one big client in commercial development and began working my contacts in the community,” he remembers, reaching out to developers and architects. “I began building up my project lists and never looked back.” Today, Burton Engineering Associates has a history of partnering on some of the largest projects in Charlotte. Work has expanded into the Piedmont, to South Carolina and Virginia. Burton and his team of 18 employees provide expert advice to their clients. Welsh, who leads Burton Engineering Associates’ business development, helps direct its 30-plus ongoing projects which include retail centers and standalone; office buildings and office parks; industrial warehouse, distribution and manufacturing; health care facilities; single and multi-family residential developments; and K-12 education.

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The Cottages at Lawyers Glen, Mint Hill, N.C. how long it will take to get the business up and running, says Welsh. Burton Engineering Associates partners with developers and contractors using a design-build, rather than a design-bid-build project delivery model.

Burton Engineering Associates partners with developers and contractors using a design-build, rather than a design-bid-build project delivery model. Comments Burton, “Most general contractors now want to get a project constructed in six to eight months, rather than the typical 12-month time frame, and we understand scheduling to the point where we can get that done.” Civil engineering includes the permitting process, which can be very lengthy, says Welsh; the sooner the firm can get involved with the project, the better. Burton Engineering Associate’s clients rely on the firm’s experience and established relationships with state and local officials and economic development offices to help them navigate the permitting process. Burton cites his firm’s knowledge of “site readiness” as an additional benefit for clients. “We’ve been working around this area long enough that we know most of the available sites,” Burton acknowledges, adding he has a library of data on different sites. “We can advise clients about site features like wetlands and clay deposits, and help them locate sites that can be cleared and graded quickly.” “When we start the civil engineering on a prospective site, we like to get a jump on the project,” he continues. “We can do a preliminary site evaluation, pull grading permits early, and find a way to work around the time constraints and meet the schedule.” Additionally, Burton believes in continuing to participate throughout the project.

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www.ballantynedentistry.com greatercharlottebiz.com | january/february 2015


Lenovo Distribution Facility, Greensboro, N.C.

Microsoft Charlotte Headquarters

Burton Engineering Associate’s clients rely on the firm’s experience and established relationships with state and local officials and economic development offices to help them navigate the permitting process. Metalmorphosis is a 14-ton stainless steel motorized head created by Czech artist David Cerný. It sits in a reflecting pool and different sections of the head rotate, forming clusters of new shapes. When all the facial features line up, the sculpture spits out water. “That piece set all the parameters for the project,” recalls Burton. “The actual artwork was top secret—not to be viewed in any form until the unveiling. All we knew was the size of the artwork and that it would be set in water. “We had to figure out how to prepare the site to accommodate this ‘unknown’

Dixon Valve Phase I and Phase II Gaston Technology Park

 

“We understand the cost implications of different design decisions and constructability that is often overlooked,” he remarks. “We like to work as a team with our contractors. We might suggest a second look at plans to see if the design could be altered to help in the flow of construction.” Another way Burton Engineering Associates works faster on jobs is by using its own in-house surveying, Foresite Surveying, something added about 10 years ago to the firm’s capabilities. Burton Engineering Associates has been an integral partner in one of Charlotte’s wellknown office parks, Whitehall Corporate Center, a 700-acre community on Arrowood Road. Burton partnered with American Asset Corporation on five of the six mid-rise office buildings, including the standout 25foot sculpture Metalmorphosis that debuted in 2007. Burton Engineering Associates did the site design for Buildings II through VI. Called one of the “seven wonders of Charlotte” by local media sources,

addition, including all the preliminary work down to the design of the building. “A steel frame was built around the project site and kept it covered,” says Burton. “When the big reveal happened as part of the opening of the office park, it was complete with an Oktoberfest party with bands, dancing girls, and lots of German beer.” Another well-known office project is the Microsoft Corporate Center in Charlotte. Completed in 1998, it includes two four-story buildings housing Microsoft’s East Coast call center, totaling 430,000 square feet of office space, and two parking garages. Burton Engineering Associates provided the site planning and engineering.

A Can-Do Attitude Business was booming for Burton Engineering from the 1990s to the mid2000 years. Its 50-plus office buildings and parks included Edgewater Corporate Center, a 90-acre office park, and the HSBC Eastern U.S. headquarters, both in Lancaster, S.C. With 60-plus industrial, warehouse and manufacturing projects, work included the Clearwater Paper Company in Shelby, the Saddlecreek Distribution Center in Harrisburg, Dixon Valve’s Phase 1 and II in the Gaston Technology Park and the Lenovo Distribution Facility in Greensboro. A major expansion project for an ER addition at Spartanburg Hospital in S.C. included the establishment of a branch office there to serve the multi-year project. Add to that another 90-plus single and multi-family residential developments and 30-plus K-12 education projects. “It was the great boom in Charlotte and certain sectors overbuilt,” admits Burton. “They did it because they could; it happens in every economic cycle.” But then the great recession hit. Business slowed dramatically. Burton Engineering Associates concentrated on standalone retail projects, including more than 30 Family Dollar stores in three states.


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Agility Systems, Rowan County, S.C.

Gradually, business started to turn around. “The current forecast for Charlotte is tremendous,” says Welsh. “In mid-2014 there was an accelerated business pick-up in

Charlotte, and where’s there’s growth there’s a need for civil engineers.” Recent Burton Engineering Associates projects include White Oak Crossing, a 710,000-square-foot retail center located at Interstate 40 and Highway 70 in Garner, N.C., that includes BJ’s Wholesale Club, Kohl’s Department Store, Pet Smart, Dick’s Sporting Goods, Pier 1 Imports, Rack Room Shoes, Target, Best Buy, TJ Maxx, Ross Dress for Less, Party City, Staples and Michael’s. Burton Engineering Associates is also

FedEx Smart Post, Concord, N.C.

doing site design and permitting services for the FedEx Smart Post 300,000-squarefoot distribution facility located in Concord, along with new public roads and improvements to International Drive that is scheduled for completion midyear. Agility Systems, a Rowan County, 250,000-square-foot manufacturing facility accelerated project is on track for completion in the next few months. The recently announced Movement Mortgage Headquarters in Lancaster County is currently in design as well. “There’s so much business to be had in our area,” says Burton, who expects to continue to concentrate on projects in the Piedmont region. “It’s measured, healthy growth—there’s a sustained market for projects, including spec buildings, which we haven’t seen in several years.” With the economic cycle set to boom, Burton Engineering Associates is continuing to expand.

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“In the face of global competition, Charlotte needs to position itself as an ‘inland port’ with easy access to rail, interstate highways and the airways. We need to move with urgency. If we don’t have a strategy to compete, somebody will eat our lunch.” ~Chase Saunders, organizer/leader of the Charlotte Global Vision Group

january/february 2015 | greatercharlottebiz.com

White Oak Crossing, Garner, N.C.


“We’ve been growing with good-quality people,” says Burton. “I had to bet on the future—and I knew that during the last economic upturn (early 2000s), it was hard to find good qualified people.” Angie’s List Reviewer:

“We continue to look for new, bright engineers who can communicate well. We’re no longer the engineers that sit in the corner and design. Now we’re out with the clients, going to meetings and being constantly involved in the project design,” acknowledges Welsh. “We have a great energy level at the firm,” he adds. “We’re the small firm with the cando attitude.” Expect Burton Engineering Associates to continue to play a leading role. “I’ve managed to keep my hands in engineering throughout my career,” says Carlton. “I enjoy the conceptual piece of my work. Every job is different and I want to be involved from the start to the finish.”

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Carol Gifford is a Greater Charlotte Biz freelance writer. Some images provided by the company.

Burton Engineering Associates, P.C. 5950 Fairview Rd., Ste. 100 Charlotte, N.C. 28210 Phone: 704-553-8881 Subsidiary: Foresite Surveying, P.C. Principal: Carlton T. Burton, President and Founder; Gregory T. Welsh, Business Development Established: 1992 Employees: 18 Region: N.C., S.C. and Va. Business: Civil engineering land development consulting services primarily for developers, contractors and owners; works with developers from concept to completion emphasizing the preliminary/feasibility stage; competitive advantage is its creativity in generating site development solutions and finding ways to reduce costs while producing great designs. www.burtonengineering.com

SouthPark’s most prestigious hotel. Surrounded by retail shopping, dining, and entertainment venues. Features 124 beautifully decorated guest rooms and suites. We offer special Bridal, Shopping, and Couple’s Night Out Packages. Select rooms feature balconies, patios, mini refrigerators, microwaves, whirpools, and garden bathtubs. Two room suites feature full refrigerators, microwaves, sofa, recliner, end tables, and select suites have a whirlpool spa and replace.

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“A SouthPark Tradition of Execellance”

greatercharlottebiz.com | january/february 2015


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january/february 2015 | greatercharlottebiz.com


by andrew rusnak

Tooling an

engineering

network

EngNet Connects Industrial and Engineering Suppliers with Customers

E

ngineering and marketing may not seem the logical combination, but when it comes to mixing things up Michael Cooney does

just that. His company, EngNet, with North American headquarters in Charlotte, is a small powerhouse that provides a range of digital marketing services to the engineering and industrial sectors across North America and the globe through focused strategies that take advantage of minimal costs. “I received my training as an electrical engineer in South Africa,” explains EngNet CEO Cooney, who graduated in 1994 from the University of the Witwatersrand (Wits University), a world-class research university in Johannesburg, studying in the fields of Electrical Engineering and Heavy Current Electrical. “Very quickly in starting my career, I realized, ‘Hey, this isn’t really what I want to do. I prefer the marketing side of engineering,’” he remembers. greatercharlottebiz.com | january/february 2015


fenix fotography

Michael Cooney President and CEO EngNet, Inc.

Brothers Michael and Adrian Cooney are avid mountain bikers, seen here in the Drakensberg (“Dragon Mountains”), the name given to the eastern portion of the Great Escarpment, which encloses the central Southern African plateau.

“A big part of my passion is derived from the fact that I come from an engineering background. But mainly it’s connected with assisting people in finding the products and services they need. I love seeing the results, both for our clients and for their customers.” 40

By that time, he had built up a number of contacts in the industrial and engineering communities. At the same time, the Internet was becoming mainstream. He describes it as a seminal moment. “‘Wow!’ I thought, ‘This is going to make my job easier. I can just go online and find all the information for these suppliers.’ However, it was still early days for the Web. I knew I could build into this space, but Yahoo! was still just a simple directory. “So, I created EngNet as a categorized engineering directory to help customers find companies based on the equipment that our clients sold and manufactured.”

Creating an Engineering Network Cooney decided to pursue EngNet, a portmanteau of ‘engineering’ and ‘network,’ full-time in 1998. But he had to overcome some resistance. The Internet was not as developed in non-Western countries at the time, and many industrial clients were reluctant to get involved. As a result, Cooney decided to take his operation outside of Johannesburg and aim for larger markets in the United Kingdom. “I was in the U.K. for about six years, and I was getting U.K. clients, but at the same time, I was getting more and more companies from the United States that wanted to reach our audience,” he describes. “They liked our positioning with Google, and we recognized the opportunity provided by North American companies and decided to expand operations to the U.S. “We chose Charlotte because we already had many companies as clients in the Charlotte region, including automation companies. And you simply can’t beat the

EngNet Engineering Network

january/february 2015 | greatercharlottebiz.com

weather here. In addition, the educational institutions are amazing.” Unfortunately, while Cooney was starting up and running the U.K. division of EngNet, the South African office began to see declines. The company as a whole had good revenue with virtually zero costs, but it had hit a plateau in terms of bringing in new clients or continuing growth based on its directory subscription services. Cooney’s solution: “About 2004, my brother joined me. He is a mechanical engineer, and he came on as a partner. Now my brother and I are equal partners in the South African office. He’s taken the reins and grown the revenue 20 times since coming on.” While the business directory is still one of its strongest selling points across all three offices, Cooney found that competition within the North American market was stronger than any he had faced before. As a result, he decided that a “pivot” in strategy was required. “The goal of the company remained the same: matching clients with customers in the engineering and industrial markets,” Cooney explains, “but as Google was becoming the 800-pound gorilla in the room, change was needed.


“Google traffic eventually rose to the top of referrals, so we had to contend with that. We work with hundreds of companies, and it’s always Google at number one when it comes to incoming referrals. So, if you do any type of directory advertising, you’ll see Google is number one, if you do AdWords, that’s number two, then Yahoo! and Bing. Then, down around number seven or eight, you’ll start to see directories come in,” he laments.

“I

see us growing, and what we do isn’t going to change: we’re connecting industrial and engineering suppliers with customers. However, what is going to change is how we do that.” As a result of this trend, Cooney and EngNet began to put more emphasis on offering customers other solutions outside of the directory, eventually breaking the

CERTIFIED PROFESSIONAL PHOTOGRAPHER

company into two additional parts: EngNet Design Group and Industry Tap. “So, to pivot, we had to be SEO AdWords specialists. We were doing that already for our sites, but our clients were seeking Google traction. We began getting more and more requests asking if we could do that for them or do their web design.”

Adding Digital Marketing and Industry News Today, in addition to maintaining an extensive directory for engineering professionals, EngNet offers a digital marketing division as well as an industry news site that incorporates social media. The company created Industry Tap out of a need for social media engagement, and the effort has brought in tens of thousands of “likes” and over a hundred thousand new followers. However, EngNet was not as successful in gaining a social media following. Cooney explains, “What we tried is working with our large email database though our EngNet network, about 150,000 email addresses. “By mistake, we included an article that took a different approach. Instead of talking about a product, we talked about how the

PUT YOUR COMPANY’S

Adrian Cooney Managing Director EngNet South Africa

product solved a problem. We wrote on that and we got three times the engagement compared to any other posts. So, we began to realize, if we write engaging stuff in a story format, we’re going to get much better results.” After focusing on more premium content through the company’s newsletters, with an even split on advertising and content, EngNet saw engagement grow three to five times higher. As a result, Cooney decided to

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create and implement Industry Tap in order to tackle the social media world. Today, Industry Tap is an EngNet property that concentrates on providing useful, entertaining and educational news to the engineering and industrial industries, currently boasting over 100,000 followers on social media. “At different times of the year, I’m focusing on different things depending on the client,” describes Cooney. “Once we reach a certain level, we need to think about where we need to go next. “A big thing that I’m involved with recently is tracking. We have a client that was getting 20 to 30 leads a month and they are now getting 280 to 300 leads a month as a result.”

ENGNET Demographics

“In

addition to maintaining an extensive directory for engineering professionals, EngNet offers a digital marketing division as well as an industry news site that incorporates social media.”

42

Indeed, tracking is one of the things that has made EngNet as successful as it is in Charlotte and around the world. Cooney is so focused on providing results that he has taken to tracking not only hits on a website, but also tracking phone calls based on AdWord campaigns and beyond. From there, he analyzes which leads really mean anything and which ones fall away. As a result, he and EngNet are able to offer meaningful statistics that display for clients exactly where return on investment is located. Cooney grins, “These days, EngNet is focused more on lead generation, but more specifically, we’re concerned with quality lead generation, not just quantity. The company still respects Google’s ranking system, but we realize that Google is not the beall and end-all of search engine marketing when it comes to bringing in new leads.” He continues, “A big part of my passion is derived from the fact that I come from an engineering background. But mainly it’s connected with assisting people in finding the products and services they need. I love seeing the results, both for our clients and for their customers. “I know that so many industrial clients

january/february 2015 | greatercharlottebiz.com

have been burned, and it’s not because of the marketing agencies they use, but because those agencies don’t understand the industry. I do, and my experience and expertise allows EngNet to get the results our clients need and deserve.” While EngNet faces larger competitors, Cooney feels that the company’s small size allows it to be more flexible with the rules and more nimble in adjusting to changing tides. The company’s directory is designed to be easy to navigate, and Cooney states that he is focused on building personal relationships with each client, whether they need EngNet’s directory, EngNet Design, or Industry Tap. Additionally, EngNet’s social media following

is currently the largest when compared to larger engineering directories, and it’s growing each day.

EngNet 2.0 Content Marketing “In the past, you’d promote yourself,” Cooney says, “but now we’re more focused on building brand loyalty through providing engaging and interesting content that matters to those in the industry. It’s all about solid content marketing, and that keeps clients interested and coming back. Our target clients are global, and while we focus on North America here in Charlotte, we offer the ability to geo-target across the globe. We try to reach everyone.”

Our Audience 2.37 Million in 2013


While it’s Cooney’s view that Google will continue to dominate the search marketplace, he also believes that things are more streamlined now. In the past, it almost seemed as though the Internet was the Wild West of digital real estate; low costs and an abundant supply. Today, however, online marketers are finding that digital real estate is in short supply and costs continue to rise, all while competition is a larger issue. While this may present a problem to many online marketers, Cooney is confident. “I think SEO remains important. Also, having real, quality content—having real, quality user engagement—is going to win the day. The times of winging it on your content are over. The guys who really put money into content, long-term, those guys are going to win,” says Cooney.

“the

cloud is Also importAnt As it is opening up communicAtion Across A wide vAriety of mArketing chAnnels in different industries. And this Applies to smAll And enterprise businesses As smAll businesses todAy now hAve Access to enterprise-level tools.” “Social media and e-commerce are growing tremendously as well, and user flow, making things totally streamlined…that’s what’s on the horizon. Every website, the easier you can make it, the more engaging it is, those are the things to focus on right now across every industry that has an online presence. There is going to be a lot of time spent analyzing in order to give a better user experience, and the companies that invest in that are the ones that are going to win.” Adding to that, Cooney also feels that online tools will play a major role in changing the way online marketing works. Today, a large number of tools exists that offer users the ability to access very narrow parts of data, and these tools operate very effectively and efficiently. “There are so many tools available today for checking backlinks or for putting in a simple URL and seeing who links to you and the power of those links. I find it interesting,

but not all companies are using such tools, and they are only as good as how you use them,” continues Cooney. “The cloud is also important as it is opening up communication across a wide variety of marketing channels in different industries. And this applies to small and enterprise businesses as small businesses today now have access to enterprise-level tools.” However, the potential for problems in technology exists as Cooney mentions the plateau effect, a situation through which a client may become conditioned to seeing consistent growth through digital means. “Clients can become accustomed to growth in positions and traffic,” he says, “but we want to be measured by leads and sales, not gimmicks. We want to be measured by amount of dollars we bring through the door. “I see us growing, and what we do isn’t going to change: we’re connecting industrial and engineering suppliers with customers. However, what is going to change is how we do that. “We’re using more premium content. We’re also taking a look at breaking into specialized fields,” he says. “At the end of the day, we’re going to make the process clearer so that clients can see the benefit that is being

received from our services, and as time goes on, we expect to provide clients with technologies that are even more transparent, assisting in growth not only to EngNet, but also to those who rely on our team.” Andrew Rusnak is a Greater Charlotte Biz freelance writer. Some images provided by the company.

EngNet Engineering Network

EngNet, Inc. 11121 Carmel Commons Blvd. Charlotte, N.C. 28226 Phone: 704-541-3311 Principal: Michael Cooney, President and CEO, EngNet, Inc.; Adrian Cooney, Managing Director, EngNet South Africa Founded: 1998 Employees: Globally 21, Charlotte 5 Locations: Headquartered in Charlotte (North America); other locations in York, England, and Johannesburg, South Africa Business: Marketing for industrial and engineering companies, web design, SEO, industry news content generation; search engine and directory for the engineering and manufacturing industries. www.engnetglobal.com (global) www.engnet.us (U.S.)

Is your marketing mix complete?

ums30th.com

43

greatercharlottebiz.com | january/february 2015


[publisher’spost]

OF INTEREST: Promoting Thought Leadership Across the Carolinas

STANDARDIZING THE GLOBALLY

COMPETITIVE MARK FOR CITIES Sustainable development of communities —

37120:2014 Indicators for city services and quality of life

C

harlotte ranks among the World’s Most Competitive Cities in a report released by IBM and Site Selection magazine. Of the top 100 global cities, including New York, London, Paris, Hong Kong, Singapore, Dubai and like, Charlotte ranks 40th or higher across the board. It is great to get this recognition, but what does it really mean? By what standards is it being judged, and who is doing John P. Galles the judging? These considerations are esPublisher sential to knowing how we really compare. Every metropolitan area needs to Areas covered by view itself as a product in the global ISO 37120:2014: market, to define and distinguish it•Economy self among other cities seeking to do •Education the same. Unfortunately, the word •Energy “global” gets bandied about as an ad•Environment jective in front of nearly every busi•Finance •Fire and emergency ness plan or activity. Recognizing response that our economy is no longer sim•Governance ply driven by our domestic U.S. econ•Health omy, we do need to learn about our •Recreation standing in the world marketplace. •Safety In business matters, businesses •Shelter have collectively established ISO •Solid waste •Telecommunications r e q u i r e m e n t s — r e q u i r e m e n t s , specifications, guidelines and and innovation characteristics promulgated by •Transportation the International Organization for •Urban planning •Wastewater Standadization (ISO) that are used •Water and sanitation consistently to ensure that materials, products, processes and services are fit for their purpose. ISO standards ensure that products and services are safe, reliable and of good quality. For business, they are strategic tools that reduce costs by miniIS0 37120:2014 mizing waste and errors, and increasing productivity. They help companies to access new markets, level the playing field 44 for developing countries and facilitate free and fair global trade.

Just last year, a landmark ISO standard outlining key measurements for evaluating a city’s service delivery and quality of life has just been published. Its use will help city managers, politicians, researchers, business leaders, planners, designers and other professionals to focus on key issues, and put in place policies for more livable, tolerant, sustainable, resilient, economically attractive and prosperous cities. The indicators included in ISO 37120:2014 will help cities to assess their performance and measure progress over time, with the ultimate goal of improving quality of life and sustainability. The standard’s uniform approach will enable cities to seamlessly compare where they stand in relation to other cities. This information can in turn be used to identify best practices and learn from one another. Relative rankings from year to year will add another dimension to the information being presented. For example, those cities more anxious to improve their status may indicate a more favorable business climate relative to others. It will certainly be helpful and valuable that this is, in fact, a global index. Investigating cities that rank more favorably than Charlotte may open new thinking about ways for us to improve our ranking. ISO 37120 standards address, economy, education, energy, environment, finance, fire and emergency response, governance, health and safety, solid waste, telecommunications, innovation, transportation, urban planning, wastewater, water and sanitation. Within these categories are the measurements that will be taken. For instance, under education, the measurements will include (1) the percentage of female school-aged population enrolled in school, (2) the percentage

of students completing primary education, (3) the percentage of students completing secondary education and (4) the primary education student/teacher ratio. This is by no means an exhaustive list of criteria. It has been identified, selected and approved by the Board of ISO for introduction across the continents. It is, however, a beginning that will allow cities to begin to understand their ranking and how they compare with other cities of their size and what they might expect to accomplish or maintain as their cities grow or decline. When a city enrolls in the ISO 37120, they will establish a baseline of data that will identify their status on the criteria that has been collected. There is no obligation for a city to participate in the collection and publication of this data. It will be up to the citizens, the businesses, the academics and community groups to apply pressure for cities to take part. The value of this information can provide a perspective on the progress or the lack thereof progress for any participating unit. It can also help cities set objectives and priorities about the spending of public dollars and the value of those expenditures. We would be most pleased to see the City of Charlotte enroll in the ISO standard. We urge you to let your city representatives and officials know about these standards and why and how they may be valuable to our community. If we really want to become a global city of tomorrow or a global hub of international commerce, we need to participate and to evaluate our collective performance so that we are effectively competing with the competition for trade and business activity that grows every day.

Please feel free to contact me at 704-676-5850 x102 or jgalles@greatercharlottebiz.com january/february 2015 | greatercharlottebiz.com


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Thank You

to all of our members! 1st Americard Adams Outdoor Advertising American Red Cross American Security Mortgage Andrew Roby AVP Nationwide Productions Bethlehem Center BlueCross BlueShield of North Carolina Boatsman Gillmore Wagner Boingo Graphics Business Wise Carolinas HealthCare System Carolina Panthers Charlotte Hornets Charlotte Knights Charlotte Observer Charlotte Regional Partnership Classroom Central COGNITION CPI Security Systems Crisis Assistance Ministry Diamonds Direct Southpark Duke Energy First Tee of Charlotte Greater Charlotte Biz Greater Charlotte HTA Hampton Inn & Suites at Phillips Place Hilldrup Movers Hood Hargett & Associates Humane Society of Charlotte Ike Behar Jamie Kimble Foundation for Courage Keffer Hyundai Killingsworth Environmental L.A. Management Company, LLC Larner’s Office Furniture Littler Mendelson, P.C. March Forth with Hope Foundation NewDominion Bank Palm Restaurant Piedmont Natural Gas Premier Sotheby’s International Realty Red Rover Communications Ronald McDonald House of Charlotte Rose Chauffeured Transportation Ltd. Second Harvest Food Bank of Metrolina See The Matrix Simile Imaging Solutions Time Warner Cable Business Class UNC Charlotte Extended Academic Programs WBT Radio 1110-AM Wells Fargo Advisors-The Golden Group WTVI-PBS Charlotte YMCA of Greater Charlotte

Membership has its rewards year after year at Hood Hargett Breakfast Club!

Don’t miss our 2015 speakers. Join Today!

Friday, January 9th Troy Vincent Former NFL All Pro & Current NFL Executive VP of Football Operations

Thursday, April 2 Woody Durham “Voice of the Tar Heels”, former play-by-play radio announcer at University of North Carolina at Chapel Hill

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Interested in Membership? Contact: Jenn Snyder at 704-602-9529 or email jenn@hoodhargett.com www.hoodhargettbreakfastclub.com


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