SUMMER 2020
Economic upheaval S.C. industries respond to unprecedented shutdown
ELECTRONIC SERVICE REQUESTED SC Biz News 1439 Stuart Engals Blvd. Suite 200 Mt. Pleasant, SC 29464
County Spotlight: Dillon | Trending: COVID-19 in S.C. | S.C. Delivers
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South Carolina, we have you covered! Huber Engineered Woods, LLC
New Dillon Spec Building
Multi-Pack Solutions 109,200 square foot Class A speculative building completed by MDT and sold to Huber Engineered Woods, LLC in January 2020
253,000 square foot Class A speculative industrial facility in Dillon scheduled for delivery in Q3 2020
HFT Distribution Expansion 125,000 square foot build-to-suit for Multi-Pack Solutions in Greenville completed in Q4 2019
KP Components
MDT managed the construction of a 1 million square foot expansion to the Harbor Freight Distribution Center in Dillon completed in 2019.
Manufacturing Facility 50,000 square foot build-to-suit for KP Components in Easley scheduled for delivery in Q3 2020
To Be Announced
Newberry Spec Building
20,000 square foot manufacturing facility in Myrtle Beach for a currently confidential client to be completed in Q4 2020
Wyman-Gordon Inland Port Dillon 100,440 square foot Class A speculative industrial facility located in Newberry County
MDT partnered with SC Ports Authority to develop Dillon Inland Port
50,000 square foot Class A speculative building in Dillon completed by MDT and sold to WymanGordon in 2014
About Marlboro Development Team, Inc.
Marlboro Development Team BUILDING A BETTER FUTURE
Marlboro Development Team is a South Carolina based real estate developer focused on single tenant build-to-suits, value-add acquisitions, and strategic investments throughout the United States. The senior management of MDT has a proven track record of 100+ years of development experience with successful delivery of over 10 million square feet across a broad spectrum of development projects including industrial, retail, and commercial. marlborodevelopmentteam.com | (843) 454-2900
Table of
CONTENTS TRENDING: COVID-19 IN S.C. 18 Pandemic brings booming state economy to abrupt halt 22 Industries unite in search for tools, resources to fight virus’ spread 28 Port moves to cut costs as coronavirus concerns affect outlook 32 Agribusiness, food and beverage industries adjusting to business disruptions Cover: A worker wears protective gear on the assembly line at BMW’s automotive plant in Greer. (Photo/Provided) Left: Curbside pickup has become a common business model for many restaurants in response to the COVID-19 pandemic. (Photo/Molly Hulsey)
DEPARTMENTS 6 Upfront www.scbizmag.com
12 County Spotlight: Dillon
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40 S.C. Delivers 47 1,000 Words
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From the
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Dear Reader,
EDITOR
We’ve all learned some new things recently: How to properly wear a mask; how to wash our hands the way we should’ve been doing all along; how to keep ourselves and, especially, the youngsters from going bonkers while stuck at home; and how to get the most mileage out of household cleaners, paper products and canned goods. Most importantly, we’ve gained new appreciation for how special and tenuous good health is to all of us. While we all adjust to navigating a (hopefully) temporary new world of social distancing, enhanced hygiene and remote learning and working, we are also getting a tough lesson in global economics. It’s no secret that industries, supply chains and finances have been become increasingly interconnected on a global scale, and the COVID-19 pandemic has only served to sharpen that point to a razor’s edge. Steve McDaniel The U.S. economy, and by extension South Carolina’s economy, was Editor, humming along early in 2020 — record low unemployment, a strong SCBIZ Magazine dollar, inflation barely registering. What has happened since has no parallel in living memory as factories, restaurants, shops and numerous other small and large businesses shuttered, millions were suddenly jobless, and what had been a rosy economic landscape abruptly turned ugly and harsh. The same scenario played out across the globe as this new virus spread throughout Europe, Asia and just about every other corner of civilization. No doubt this economic upheaval will take time to correct, and no one can predict how things will look next week, much less next month or year. But even now, we are slowly taking the first steps back toward a semblance of normal living. Automakers BMW, Volvo and Mercedes Benz are in the process of restarting production lines; restaurants are able to serve in-house customers for the first time in almost two months; and other, high-contact businesses can now operate within restrictions aimed at reducing spread of the virus. This issue of SCBIZ magazine was originally going to focus on the business of sports in South Carolina. Obviously, the novel coronavirus had different plans, so we had to change ours as well. Our reporters reached out to business leaders across the state to get a comprehensive picture of where our economy stands and where it might be headed in the upcoming weeks and months. Learning is hard, but just like when we had to do multiplication tables in elementary school, the result is smarter, better prepared students. We’re all back in school in a manner of speaking right now. Let’s make sure the hard lessons this pandemic is teaching us lead to a stronger, healthier future for the world and the economy.
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UPFRONT regional news | data
MARINE RECRUITS ARRIVE AT THE CITADEL FOR OBSERVATION BEFORE BOOT CAMP
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Staff report s life began returning to South Carolina in early May, some restaurants opened their doors for the first time in over a month and stores welcomed small groups of customers. The Citadel also saw more activity — though not from students and professors. Roughly 300 Marine Corps recruits arrived at the military college in the first full week of May for two weeks of observation before heading to Marine Corps Recruit Depot Parris Island near Beaufort. The arrangement between the Marines and The Citadel allows the former to observe recruits and detect possible cases of COVID-19 prior to their entering the Parris Island base for boot camp. The Marines had previously been using a tent city staging area at Parris Island for the observation of recruits, but the tents will not meet the Marines’ needs when hurricane season begins June 1. “The secretary of defense charged each military service to develop strategies to
Parris Island Marine recruits are processed at The Citadel in Charleston, where they will stay for two weeks. (Photo/Provided)
maintain basic training, and The Citadel is proud to be part of the solution for the Marine Corps,” Citadel President Gen. Glenn Walters, a retired Marine, said in a news release. “Since The Citadel campus is currently closed due to the pandemic, the college is positioned to quickly assist as a mission-capable site in this effort that supports national security.” Walters added that the arrangement is reminiscent of World War II, when The Citadel supported the training of more than 10,000 military personnel before they were deployed overseas.
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FAST FACTS |
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“This is an historic partnership at a time of need, and it is a privilege to be a part of it,” he said. The recruits are housed in vacant barracks and must remain in designated areas on the interior of The Citadel’s campus. The mess hall, infirmary, laundry facilities, tailor shop and some classrooms are being utilized. A new group of recruits is expected to arrive at The Citadel every two weeks. About 19,000 recruits are trained at Parris Island each year. “While meeting our mission, the health and safety of our Marines, all civilians and our families are a primary concern,” said Brig. Gen. James F. Glynn, the commanding general of Marine Corps Recruit Depot Parris Island and the Eastern Recruiting Region. “With high school graduations happening now, this is one of our busiest times of the year. We are grateful to have this temporary arrangement so near to Parris Island.”
24/7 Wall St. S.C. unemployment snapshot (taken April 4)
Unemployment claims since mid-March:
183,319
(7.8% of labor force)
Most recent week’s unemployment claims (March 29 – April 4):
Increase in weekly claims from one year ago:
85,018
82,909
(24th most in U.S.)
(3,931.2%)
Projected unemployment rate, July 2020:
15.0%
(16th lowest in U.S.)
THE WADE FAMILY IS FINISHING THE TRAIL Members of the Wade family hiked and biked the entire Palmetto Trail from Walhalla to Awendaw in 2018. Our family’s experience showcased the importance of the Trail in providing the opportunity for all to appreciate the beauty and diversity of our State.
Blue Wall, Hub City and USC Upstate passages of the Palmetto Trail
For Palmetto Trail info, visit palmettoconservation.org.
The Wade Family Fund is pleased to support improvements to the Blue Wall, Hub City and USC Upstate passages of the Palmetto Trail. New boardwalks and signage have been installed on the Waterfall Loop of the Blue Wall passage, enhancing this hiking option on one of the most popular passages in the Upstate.The Hub City passage will be re-routed with new signage highlighting the beautiful corridor in downtown Spartanburg. Finally, .5 mile of new trail, a 30-foot boardwalk and new signage will make the USC Upstate passage an attractive gateway to Spartanburg. Together, Let’s #FinishTheTrail!
Want to help #FinishTheTrail? Call (803) 771-0870 | (803) 771-0590
UPFRONT
CORONAVIRUS RESEARCH
DEVELOPMENT UNDERWAY FOR COVID-19 TESTING IN THE WORKPLACE
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By Molly Hulsey | mhulsey@scbiznews.com
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kits readily available to state industries through the COVID-19 Emergency Supply Collaborative that SCBio helped develop with the S.C. Manufacturers Extension Partnership, the S.C. Hospital Association and S.C. Department of Commerce. Created in early April with the goal of bridging shortages in personal protective equipment and other critical needs goods to health care systems, Konduros said the online portal also welcomes purchases from businesses, especially manufacturers, in need of South Carolina-made masks, disinfectant, test kits or a host of other high-demand products. On April 7, Konduros also noted that antibody testing tended to be a less reliable indicator than diagnostic testing at this point, but he sees potential for companies to use both, especially as antibody testing becomes more sophisticated and “herd immunity” builds. “From a diagnostic standpoint, there doesn’t seem to be a substitution for PCR testing, which is going to be the one way to confirm a diagnosis for someone with COVID-19, either someone who is showing acute symptoms or has had clear exposure, or is working in an environment where an employer would simply need to know there is that issue,” he said. On the other hand, Konduros is intrigued by the potential of workforce antibody testing as research moves forward, especially with tests used by Abbott Laboratories, that detect IgG antibodies that remain in the bloodstream for several weeks after an individual recovers from COVID-19. He said that as the state moves into summer, Abbott is planning to release large quantities of IgG tests that are at least 98% accurate. “I certainly think the antibody tests are going to innovate and improve over time, and there’s going to be a lot more data to see how people are responding who have had COVID-19 and what kind of immunity is being developed. There are just so many variables right now,” Konduros said. Reach Molly Hulsey at 864-720-1222 or @ mollyhulsey_gsa on Twitter.
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while the app is several months away from release, he said. “What we’ve developed is a combination approach to COVID-19 screening and an antibody test as it evolves, as the workforce is building up an immunity at the individual level, which reduces the spread over time,” he said. “Until there’s a vaccine or some type of therapy, that is the safest way to go about this.” In late April, however, Wilbourne said current antibody tests led to a number of false positives and negatives. “Unfortunately, antibody testing is not very reliable today, as it sits,” he said. “There are still a lot of gaps in the science regarding the sensitivities and specifications. Right now, there are 50 proteins in the coronavirus. Right now, we (the health science community) are testing for multiple proteins, but there’s no way to guarantee which protein creates immunity.” He also said antibody testing can only detect antibodies a few weeks after individuals have recovered from COVID-19 but noted that the work of professionals like Dr. John Wrangle, Precision’s chief medical officer and medical oncologist at the Medical University of South Carolina, are heading up research to broaden the window of antibody detection and accuracy of the tests. Sam Konduros, CEO and president of SCBio, said the life sciences economic development network is working to support continued research and implementation of both diagnostic and antibody testing across the state. “Even from the beginning, we were trying to present every approved and available COVID-19 test kit option we were aware of, and as you can imagine, we are moving heavily into the world of antibody testing now too,” he said. Our primary goal in representing the life sciences industry in the state is to have a very ecumenical approach of what resources are available that can help employers reopen as safely as possible if working remotely is not an option.” One way SCBio hopes to open those options to employers is making test
UPFRONT
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s industry begins to reopen across the state, life science companies turn their sights to expanding COVID-19 diagnostic and antibody testing options for the workplace. Greenville-based lab Precision Genetics partnered with Prisma Health in early April to process the health care system’s COVID-19 tests within 24-hours of reaching the lab. Now that this testing line is fully automated with the capacity to churn out about 1,000 samples in a matter of hours, the lab is developing plans for the next testing battleground with a high-throughput COVID-19 diagnostic program called “Precision Worker Safety” and a smartphone employee wellness app created by Questis that uses an RFID thermometer to report feverish temperatures to employers. “Up here in Greenville, manufacturing is a huge, huge part of our economic situation, so we have to be able to provide employers some kind of assurance that their employees can come back to work without a rapid spread of the virus,” Nate Wilbourne, CEO and president of Precision Genetics said, adding that it is “naive” to think the state peaked in midApril with so little testing. He said Precision is working with several large self-insured manufacturing companies as well as poultry suppliers to develop a salviabased testing strategy. Pending a state-supported grant that the lab applied for during the week of May 1, Precision will launch saliva-based testing within three weeks. Other methods of testing face a waiting period before they can be implemented,
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UPFRONT
FOOD PANTRIES DEAL WITH SURGE IN DEMAND
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By Molly Hulsey | mhulsey@scbiznews.com
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“They will have to drive a little further, and the fact that we’re trying to social distance and not use public transportation makes it difficult for people who don’t have cars to get to those food sources.” Michelle Parisi
Director of Clemson University’s health and nutrition program
“Certainly, that creates a barrier for many people,” said Michelle Parisi, director of Clemson University’s health and nutrition program. “They will have to drive a little further, and the fact that we’re trying to social distance and not use public transportation makes it difficult for people who don’t have cars to get to those food sources. This is where convenience stores, gas stations and dollar stores come into play.” She also fears that many food banks will be left vulnerable during the crisis as
grocery store shelves are scoured by shoppers, since many pantries rely on grocery donations to distribute to families in need. Ingles Markets, which has a program for sourcing produce from local farms, launched a hiring campaign in early April to ramp up its ranks by 5,000 people with $5 million in appreciation bonuses. “Our sales began increasing in midMarch when most schools and restaurants closed and various social distancing guidelines were put in place,” Ron Freeman, chief financial officer of Ingles, said in an email. “For the most part, demand increased in all our departments.” He added that restaurant and school distributors have jumped in to meet boosted retailer demand and that he feels “very fortune” to live near local food providers and farms. Florida-based grocery chain Publix has begun and then donating thousands of pounds of produce and milk directly to food banks across the Southeast. “Retailers have always purchased product from the farms,” Maria Brous, press representative for Publix’s South Carolina location said in an email. “However, with schools closed, many restaurants limited to takeout-only if not completely closed, and venues not operating, there’s a major gap with farmers. And while many farmers donate to food banks all year long, as does Publix through our perishable recovery program and through our foundation, Publix Charities, farmers are looking to recoup some of their losses.” The week of April 23, 1,980 gallons of milk and 40,400 pounds of fruits and vegetables were shipped to South Carolina’s North Charleston Feed America location, while plans are underway to shuttle food to Second Harvest Food Bank of Metrolina’s Spartanburg and Anderson hubs, she said. Reach Molly Hulsey at 864-720-1222 or @ mollyhulsey_gsa on Twitter.
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S.C. National Guard members assist Harvest Hope food bank’s team of 15 people with stocking and distributing food in the Upstate. (Photo/Provided)
a limited quality or variety in the food they eat due to economic reasons. Around 4% have limited the amount they eat by skipping meals or stretching supplies. Post COVID-19, Feeding America expects that 17.1 million people across the country will face mounting food insecurity. Every Upstate county on the S.C. Department of Health and Environmental Control map includes swaths of land considered food deserts, where many lowincome rural residents live 10 or more miles away from a grocery store, or where urban residents with limited transportation may be also be a half mile from their nearest supermarket. Healthy produce options are often limited or non-existent in these areas.
UPFRONT
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s the new coronavirus ravages more jobs and bank accounts by the week, Barry Phillips, executive director of the Upstate’s Harvest Hope food bank and distribution center, has been working 15 hours a day to distribute food to ever-lengthening lines of families in need. Waiting cars stretch longer than a mile beside the pantry’s curbside handoff point. “Every hour, I try to walk the line and talk to them, and they’re so grateful,” Phillips said. “It’s just like kids at Christmas time.” Phillips reported that in the past, his food bank served about 160 to 180 individuals per day. Now, those ranks have swollen to 2,000 people. Soldiers from the National Guard have been deployed to stack, unpack and distribute goods to families in need at the curbside across the state. He said donations have been rolling in from all directions, inlcuding individual donors, the USDA and grocery stores, but he hopes with additional donations, Harvest Hope will continue to distribute healthy meal packages sampling from all food groups. The food bank was already short three drivers before the onslaught of new meal recipients, and doctor recommendations sent several vulnerable drivers home. Grocery pick-up has transitioned from a five-day occasion to a two-day event with larger truckloads. “We do our pantry drive-through from 9 to 1, three days a week now. We started out five days a week, and we went to three days because we needed Tuesday and Thursday to lick our wounds, you know: get food back in, get organized and to pick up stuff,” Phillips said. Economic insecurities created by the pandemic have only further chafed areas across the state dealing with existing food insecurity and problems with accessing fresh produce. According to 2016-2018 USDA data, 11% of South Carolina’s families report
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county spotlight
DILLON
Dillon County continues to establish itself as an important industrial hub in northeast South Carolina.
PLANNING, IMPROVEMENTS PAY DIVIDENDS FOR DILLON COUNTY By Jim Tatum, Associate Editor | Photos provided
D
illon County continues to strengthen its position as an important industrial focal point
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in South Carolina. The county is home to
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more than 50 industries ranging from smaller local/
regional operations to larger international companies. That industrial base continues to grow and diversify. Special Advertising Section
Dillon County b y the
Population: ............
per Dillon County
Economic Develop
Median Household
numbers
..............................
Median House Valu
.........30,871
ment OďŹƒce
Income: ..................
e: ...........................
...... $33,011
..... $72,000 Dillon County has 12,390 people pa rticip the workforce, with a workforce turnov ating in er of around 8.8 percent and a regional labor sh ed of 528,154. Inland port imp In the Pee Dee regio act n, $7.1 billion impact the Inland Port Dillon has a , creating 25,275 jobs. One of every 13 jobs in the Pe uted to the port an e Dee region can be attribd the SC Ports Auth ority.
Located on I-95 midway between Maine and Miami
Dillon is a competitive location for manufacturing, distribution, and agribusiness companies and is home to several major manufacturers.
dilloncounty.org 843-774-1402 Clay Young
Single day’s drive to 65% of the US population Direct access by CSX rail to the Port of Charleston Inland Port of Dillon is one of 2 inland Ports in SC
COUNTY SPOTLIGHT: DILLON A drone’s eye view of one of Dillon County’s industrial sites, 95 Inland Port Logistics Center.
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Get your message in front of South Carolina’s top CEOs, executives, business owners and decision-makers every afternoon. For advertising information, contact Steve Fields at (843) 849-3110 or sfields@scbiznews.com Special Advertising Section
“Dillon County has made the right investments and worked hard to make positive changes happen,” Economic Development Director Clay Young said. “The county started doing those things almost 20 years ago and now those investments are starting to really pay off.” Those investments include infrastructure upgrades, road improvement, and commercial property acquisition and development. This has not only allowed development and improvement to industrial parks near I-95, it also ultimately weighed in the decision by the state to build one of two inland ports in Dillon County. The port, Young said, is truly a game changer in Dillon County’s economic landscape. With the opening of the port in 2018, the county is seeing
significant increases in revenues and activities. “The port has brought in a lot of business from surrounding areas in the Carolinas and elsewhere,” Young said. “The access to the port of Charleston is extremely important in these companies’ logistics chains.” Clay said with the COVID-19 pandemic, the county has seen a sharp dip in tourism revenues. “We’re feeling it, definitely, we’re seeing significant dips in A-tax, H-tax, F&B taxes, most of which are generated by interstate (95) traffic,” he said. “Everyone is experiencing that right now.” Dillon County’s industry may have temporarily slowed, but the county is still working diligently to maintain and grow that base. For all its progress in
parks: the I-95 Gateway Park, Northeast Commerce and Carolinas I-95 Super Park and in 2018, the establishment of the inland port in Dillon. This has attracted several industries across a wide spectrum, as well as helped existing local and regional industries thrive. One company that noticed, early on, the potential Dillon County offered is Harbor Freight, which established its U.S. east coast distribution center there in 2001. Robby Robertson, Harbor Freight’s East Coast Distribution Center vice president, said the company originally decided
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economic development, the county remains largely rural and lightly populated compared to the rest of the state. Located in the northeastern section of South Carolina’s Pee Dee region, those who called the area home learned to improvise, and that tradition of innovation has continued throughout its history. Dillon County was established in 1910, formed from a portion of Marion County. The county and county seat were named for James W. Dillon, a prominent businessman whose efforts in bringing railroad service to the area ushered in an era of prosperity by providing access to new markets, generating wealth and sparking positive change in a once largely isolated, sparsely populated area. The railroad maintains its vital role today; the port is in Dillon County in large part because of the presence, activity and connectivity of CSX Railroad. As times changed, Dillon County had to change as well. In the mid-20th century, a Dillon County businessman, Allan Schaeffer, would take advantage of the county’s
COUNTY SPOTLIGHT: DILLON
location at what is essentially the halfway point between New York and Florida and built what would become one of the most iconic, successful tourist attractions in the country, South of the Border. With its strategic location on I-95, ample four-lane secondary highways, nearby rail access, and proximity to the ports of Charleston, Dillon County has continued to make focused investments in itself and form important partnerships to further its economic development goals. This has resulted in the building and development of three industrial
Special Advertising Section
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COUNTY SPOTLIGHT: DILLON Inland Port Dillon has provided a $7.1 billion economic impact to the Pee Dee area. (Photo/file)
SOUTH CAROLINA PORTS AT YOUR FINGERTIPS
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With distribution provided by the Port of Charleston to their global audience of partners, prospects and clients - there is an opportunity for you to reach your target audience.
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Contact us today to learn more about advertising opportunities in our collection of port publications. Elizabeth Hodges: 843-849-3105 or lhodges@scbiznews.com Melissa Verzaal: 843-849-3104 or mverzaal@scbiznews.com Special Advertising Section
living is about 84 percent of the national average, with median home prices around $72,000. However, the county’s proximity to Florence, Myrtle Beach and Columbia offers nearby access to amenities typically available in a larger urban area. Dillon County boasts numerous parks, playgrounds, ballfields and tennis courts and outdoor recreational opportunities. The county is home to popular cultural events such as the Spring Fest and Celebrate Main Street festivals and amenities such as the Dillon House Museum and the Ellis Performing Arts Center. Two public school systems serve Dillon County and Northeast Technical College, Florence/ Darlington Technical College and Francis Marion University are also nearby and accessible for those seeking quality college and technical education opportunities. “Dillon County is a great place to do business and to enjoy a good quality family life,” Young said. “We’ve got it all.”
COUNTY SPOTLIGHT: DILLON
on Dillon County due to its location on I-95, its proximity to Charleston and Wilmington and its available work force. Over the years, the company has thrived, growing from one 500,000-square-foot building to multiple buildings representing a total of 3 million square feet on 265 acres. With some 1,500 employees, it is the county’s largest employer. But just as important, the community was a strong match for the company’s values, Robertson said. “Dillon is a community that is close knit and supportive of its members and that is very much in line with our values,” Robertson said. “We feel very much at home here. As we approach the end of our second decade here, we continue to hire and to grow. And we can’t think of any place better to do so than Dillon County, South Carolina.” While Dillon County continues its journey into a brighter future, its small town/rural atmosphere makes for a pleasant and affordable quality of life. Cost of
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TRENDING: COVID-19 IN S.C.
PANDEMIC BRINGS BOOMING S.C. ECONOMY TO ABRUPT STANDSTILL
Experts see slow return toward normal behavior, especially in critical tourism industry By Ross Norton, Staff Writer
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L
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ike a quietly destructive wave, the economic ravages of a pandemic rolled down the Blue Ridge escarpment, through the mountains and gentle hills, across the plains and into the coastal areas, where economy-killing momentum only intensified against a region reliant on tourism. Some organizers canceled St. Patrick’s Day celebrations; others snuck them in like a harried salesman hopping into an elevator as the doors close. Then a disquieting mood settled in across South Carolina. Sports events were postponed, seasons delayed, then canceled. School children were sent home for two weeks, but parents were asked to take end-of-year steps as if everyone already knew — but no one wanted to say — that in-class schooling was over for the academic year. Spring break at colleges was extended at first, before students learned classes were moving online. Eventually, the sound of slowing gears reached into the factories and silenced the giants. BMW Manufacturing — perhaps the most impactful plant in the state — announced a temporary
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Empty tables and chairs became a familiar sight at restaurants, bars and other businesses across South Carolina (left and page 20) as stayat-home orders were enacted to try to reduce the spread of COVID-19. Gov. Henry McMaster has recently relaxed the orders and businesses are slowly reopening with restrictions in place to allow for social distancing and enhanced cleaning. (Photos/Molly Hulsey)
TRENDING: COVID-19 IN S.C.
shutdown. Boeing, Volvo and Michelin soon joined the ranks of shuttered plants. Cash registers grew quiet and computers heated up as employers applied for federal assistance and their former employees filed unemployment claims. By the end of April, it was a recession. The speed of the fall was breathtaking, according to economist Bruce Yandle, who said that just a few months earlier, everything was just right. “What was a Goldilocks economy in 2019 with GDP growth hitting 2%-plus, with the lowest unemployment rates in decades, and with poverty in a state of decline, is now on life support,” said Yandle, dean emeritus of the Clemson University College of Business and co-founder of the Clemson Institute for the Study of Capitalism. “Put another way, the Goldilocks economy has been placed in an induced coma, deliberately.” On top of challenges brought directly by the new coronavirus, the world already was dealing with a glut of crude oil, falling prices, low inflation and low interest rates, he said. “We should not be surprised to see the bottom fall out of economic data and indicators. In spite of the massive expansion of government grants, bailouts, tax refunds, helicopter money, expanded unemployment benefits, and payroll protection plans, our economy has not been able to respond because it has been illegal for it to do so,” Yandle said on the weekend
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before the state took its first tenuous steps toward recovery with relaunched production lines and outdoor dining. “People have money flowing in their direction, but when sheltered in place have no easy way to spend the cash flow.” Before the pandemic, South Carolina had one of the strongest economies in the nation, Yandle said. The state had population growth, high manufacturing growth, rising investments and strong GDP growth. “Then, it hit. What had been a strength— our strong connection to the global economy — became a weakness due to Mr. Trump’s preference for trade wars,” Yandle said. “Top destination of South Carolina exports? China. Number 2? Germany. Our national leadership team is dedicated to impose costs on China. And they don’t much like Germany.” Yandle predicted a sharp decline in state GDP for the first half of the year and
a better second half, though not enough to offset the first six months. Yandle said he expects lots of bankruptcies and reorganizations in the months ahead. But, he said, the state did well taking care of the programs aimed at recovery, landing $3.8 billion in Paycheck Protection Program funds aimed at keeping small businesses afloat. “Plenty of people are eager to get the show on the road,” Yandle said, but he cautioned that some people will not rush back to the lives they knew before, especially those activities that put them in crowds or crowded places, like football games and restaurants. The hospitality industry was ravaged by the shutdown as an appreciative and hopeful public went to extra lengths to support them. The same public seemed to be watching restaurants as a harbinger of recovery.
“Restaurants have taken the initial brunt of the COVID-19 at the community level,” said Clemson University travel and tourism professor Bill Norman. “It is even more dramatic in communities that have a significant tourism base that depend on both locals and out-of-town visitors spending money at restaurants and retail to be successful.” Surviving restaurants and small breweries will be the first to benefit from reemergent tourism, even if the tourists are not from afar, said Norman, who works with the university’s Department of Parks, Recreation and Tourism Management. The state will concentrate on “near tourism,” he said. Travel, even if the distance is short, will be a way for the public to heal from the psychological wounds of COVID-19 while they also spend the dollars needed to move the economy along.
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At the peak of the shutdown, hotel operators were devastated, with occupancy down by nearly 70% over the same time last year, while profit per room was down by 80%. Norman said the “No Vacancy” signs won’t be turned on for a while. The travel industry comeback will start small, with trips to nearby destinations, while travelers build confidence — in themselves, in their destinations and in travel itself, he said. “I think that’s really going to be the challenge here: as the recovery goes on, can we psychologically rebound as well as physically rebound,” he said. “I think most people are going to start off — and this is my gut more than academic literature — they’re going start off taking road trips, side trips, kind of get back in the groove to see what it’s like in restaurants, bars and breweries and distilleries and wineries and stuff like that. They will want to see what’s it like with respect to spacing and the whole cleanliness of places.”
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COLLABORATION KEY IN PANDEMIC FIGHT By Jim Tatum, Special Projects Associate Editor
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f anything good has come of the coronavirus/COVID-19 pandemic, it is that the times have spurred and inspired a fierce spirit of collaboration, cooperation and innovation in the fight against the pandemic.
Many partnerships and collaborative efforts have been formed and brought to bear from a wide spectrum of sources. In South Carolina and elsewhere, pharmaceutical and health care compa-
nies, such as Nephron and Prisma Health, have upped their efforts across the board, adding production lines and stepping up testing efforts. Companies less involved in the medical field reconfigured, added
Nephron President and CEO Lou Kennedy (left) donated 50 liters of in-house-manufactured hand sanitizer to the William Jennings Bryan Dorn Veterans Affairs Center in Columbia. The respiratory medication manufacturer has also requested FDA approal to add new production lines. (Photos/Provided)
Mark Blenner
Dr. Delphine Dean
Dr. Sarah Harcum of Clemson University working with proteins in the lab as part of the effort to develop new COVID-19 serologic testing.
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generate information and data that might otherwise take researchers using more conventional methods literally years to even find and identify as possibly helpful, much less organize and extrapolate. One major goal of the system is to help find ways to re-purpose existing drugs to treat and fight COVID-19. According to Safro, much information already exists about different drugs, their uses, effects and side effects. If the system can gather and organize that data, then it could give researchers a major headstart in the search for treatments, vaccines, and, ultimately, a cure. Another effort underway is a collaboration between scientists at Clemson University, Medical University of South Carolina and the University of South Carolina to develop serologic tests to detect COVID-19 antibodies. The goal is to develop accurate tests with faster turnaround time for results that are less invasive than tests being deployed now. Developing a blood, saliva or urine test would be far less invasive and unpleasant; people could conceivably test themselves at home and have accurate results in minutes. Initially, the goal was to first provide these testing mechanisms for health care workers in South Carolina. Mark Blenner, a Clemson biomolecular and chemical engineering visiting professor, has validated the test with samples from MUSC and Prisma Health. The samples are also being run at MUSC and USC so researchers can be confident in how well it works. Researchers have done some initial proof-of-concept testing on using saliva for testing as well. They are starting to work on scale-up so they can start testing more people, beyond only health care workers, and determining what that process will entail and what the results might look like.
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and/or augmented production lines and processes to manufacture needed items that were suddenly in short supply. For example, denim manufacturer Greenwood Mills started making medical masks while Phoenix Specialty Manufacturing, a company that makes precision tools and parts for many different original equipment manufacturers, started making parts for ventilators. “Phoenix is a metal stamper and we stamp parts for metal to our customers’ specifications,” sales manager Steve Cornforth said. “We also offer machine work and secondary operations work to those parts as well. So, when the calls started coming for ventilator parts, it really wasn’t any change for us at all. The parts were very similar to what we make every day. We did rearrange some schedules and expedite a lot of orders to get them through quicker, but it’s part of what we do on a daily basis.” The education community got involved as well, from public school systems making the switch from classroom to e-learning and continuing to provide meals for students in need to colleges and universities focusing on collaborative research efforts and initiatives. At Clemson University, a team led by Dr. Ilya Safro is working with colleagues in universities across the country to develop an artificial intelligence system designed to parse through decades of published medical literature to help researchers instantly find and aggregate information that could help with research in fighting the novel coronavirus. The system is designed to search for certain key words and phrases in this enormous body of scientific literature, seeking connections and suggesting hypotheses to test. It can handle queries across a wide spectrum of topics and
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“The best part of this project has truly been the collaboration, the way everyone has stepped up to work together,” Dr. Delphine Dean, who is coordinating Clemson’s team, said. “Barriers that once slowed these types of efforts are being removed, making the process much smoother. Everyone is volunteering their time — we’re doing this because we all know that it needs to be done.” Mark Johnson, a professor of materials science and engineering at Clemson, is part of a nationwide collaboration of scientists and researchers working on new methods of cleaning and sanitizing medical masks, specifically the N95 masks considered so crucial for front-line workers treating COVID-19 patients. Highly pressurized carbon dioxide could be used as part of a process that not only sanitizes N95 masks by inactivating the novel coronavirus but also cleans the dirt and stains that result from normal use, Johnson said. “We want to make sure our health care providers are healthy because every one of them is taking care of other people,” John-
son said. “The availability of masks has become a critical point — forcing the need to either get new masks from extended supply chains or by finding new ways to safely clean and reuse the masks.” Johnson said that when he first heard about mask shortages, he connected with USC’s Michael Matthews, who has conducted research in carbon dioxide technology, including medical sterilization and disinfection. He now serves as senior associate dean for research and graduate education in the university’s College of Engineering and Computing and as a professor of chemical engineering and biomedical engineering. Most recently, Johnson said he participated in a webinar that brought in some 2,000 participants from more than 60 countries that focused on decontaminating and reprocessing N95 masks. While Johnson and Matthews are taking the lead on the supercritical C02 investigation, other research groups are investigating processes such as hydrogen peroxide vapor, UV-C and moist heat. In fact, hydrogen peroxide vapor
can be used for decontamination now, however, the process, while effective, can be slow. But, if supercritical CO2 can be used successfully, it could be a much faster process. Johnson and Matthews are also tapping the expertise of local colleagues, including Melinda Harman, an associate professor of bioengineering at Clemson, and Eric Vejerano, an assistant professor in the University of South Carolina’s Arnold School of Public Health. Harman said that while Johnson and Matthews are focused primarily on sanitizing the masks so they are virus-free, she is studying how to clean them of mucus and other materials. “We are looking at how we can introduce detergents into the process, which is quite challenging,” Harman said. “The carbon dioxide process is an industrial process, and we need to find detergents that are compatible. They’ve got a great team with the industry folks who know their technology. It’s just a matter of getting the pieces in their hands and seeing how they’re going to work.”
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PRISMA HEALTH’S EXPERTS ANSWER TOP COVID-19 VIRUS QUESTIONS
How do you make real time decisions when a hospital moves into a health crisis? • We have activated an integrated incident command structure that establishes system-wide policies and supports local implementation and quick responses to changing conditions. The incident command structure is central to efficient and effective decision-making that is required in emergency situations. Prisma Health drills for community health emergencies like Coronavirus to be prepared for the impact these events have on patients, staff and resources. Actions that we are undertaking address areas of mitigation and containment. • We are proactively managing medical supplies and personal protective equipment (PPE) inventories to ensure that staff have
resources needed for safe, effective patient care. We are utilizing predictive modeling tools to identify potential impacts on beds, medical personnel, PPE, ventilators, ICU beds, blood products, etc. With this information, management can better plan for and balance supply with forecasted demand. • We are preparing facilities in the Upstate and Midlands to house more COVID-19 patients, if needed. How has this crisis demonstrated the advantages of a large network of healthcare providers and healthcare workers? We have a large workforce of highly trained staff which gives us the depth and breadth and stamina to survive this crisis. We have more access to suppliers for equipment and an advantage
of buying in bulk. We are sharing our supplier access with smaller hospitals in S.C. What is Prisma Health doing to ensure the risk of community spread in the hospitals is minimized? First, we have closed all facilities to visitors with the exception of 1 visitor per patient for pediatrics, obstetrics, newborn intensive care and end-of-life. We have closed all entrances except the main one at our facilities. We use CDC guidelines to check those visitors for symptoms/history of exposure before allowing admittance. Our employees follow infection prevention procedures for themselves, and we thoroughly clean rooms. We separate patients who are under investigation of COVID-19, as well as those positive for COVID-19, from the general population of patients. To Sponsored Content
PRISMA HEALTH’S EXPERTS ANSWER TOP COVID-19 VIRUS QUESTIONS practice social distancing, we have closed our cafeterias to sitdown eating with only take-out. We also are screening all team members at hospital entrances for fever and COVID-19 related symptoms before they can enter the facility. Is Prisma Health prepared to treat patients with coronavirus (COVID-19)? Because of our expertise, Prisma Health routinely treats patients with potentially infectious diseases and follows extensive protocols to ensure the safety of our patients, team members and community. Our Emergency Management and Infection Prevention teams had been preparing for and monitoring the COVID-19 outbreak since mid-January. We are working closely with the South Carolina Department of Health and Environmental
Control (SC DHEC), the South Carolina Hospital Association (SCHA) and healthcare providers across the state. All of our team members at Prisma Health are rising to the occasion to serve our community and our patients during the COVID-19 outbreak. The community and the media are turning to us for information and leadership during this time of rapidly evolving events. What are steps to take if you feel you have COVID-19 symptoms or have been exposed? Stay at home in isolation. Call your primary care doctor. If you do not have a one, use our virtual visits by accessing prismahealth.org/virtual-visit, calling 1-833-2PRISMA (2774762) or use our symptom checker by texting COVID19 to 83973.
Inspiring messages for our dedicated team members.
How long does it take to get the results of a COVID-19 test? That depends on where the test sample is sent. Prisma Health now has the capability in-house to test hospitalized patients with a rapid turnaround. Should people with wellness visits and elective surgeries proceed with them? This should be discussed with your provider, and together you will decide the best treatment plan based on your situation. What is the most important thing businesses can do to protect our employees who cannot work from home? Social distance of 6 feet. Work remotely if that is possible. Practice good hand hygiene – wash for 20 seconds; avoid touching hard surfaces with your hands; avoid touching your face.
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PRISMA HEALTH’S EXPERTS ANSWER TOP COVID-19 VIRUS QUESTIONS Is Prisma Health collaborating with other health systems or businesses to help address COVID-19 needs? Prisma Health has launched a Rapid Innovation Taskforce – a multidisciplinary team that includes Prisma Health, Clemson University and University of South Carolina leaders and innovators to solve front line challenges in real time. The Rapid Innovation Taskforce has convened project teams working on key areas such as: • Testing Taskforce, focused on identifying optimal testing strategies for patients and our workforce
• PPE Committee, focused on developing sustainable single-use and multiple-use PPE solutions in collaboration with industry, academics and community
focused on developing ventilator-related devices such as VESper, a valve splitter device that received emergency authorization from the U.S. Food & Drug Administration (FDA) • Novel Ideas Committee and the Novel Therapeutics Committee, designed to identify and evaluate promising COVID-19 therapies. For example, Prisma Health is evaluating how we can pioneer the novel use of plasma therapy (blood plasma rich in antibodies from recovered patients) in patients admitted to our hospitals. The FDA recently
allowed physicians to consider plasma therapy for critically ill COVID-19 patients on a case-by-case basis.
• PPE Sterilization Committee, focused on identifying optimal methods to sterilize and safely reuse PPE, including N95 masks • Ventilation Committee, Sponsored Content
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PORT ADJUSTS EXPECTATIONS AMID CORONAVIRUS DISRUPTIONS By Patrick Hoff, Staff Writer
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The port is also deferring the onetime move of three older cranes from the Wando Welch Terminal to the North Charleston Terminal until the 2022 fiscal year, which had been slated to take place in July; and deferring the implementation of a new terminal operating system until the Hugh K. Leatherman Terminal opens in March. The port will not lay off any fulltime staff and its two infrastructure projects — phase one of the Leatherman Terminal and the deepening of Charleston Harbor to 52 feet — are still on schedule to be completed next year. The 10% reduction in costs, excluding depreciation, equates to about $20 million. “Some of that is, I will say, naturally occurring in the sense that it’s volume
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he S.C. Ports Authority is cutting its costs by 10% to account for slowing container and automotive volumes amid the coronavirus pandemic. The port also revised its container outlook for this fiscal year, which ends June 30, to 1.345 million pier containers. The port moved 1.364 million pier containers in the 2019 fiscal year. “Overall, we’re doing the things that you normally do in a business when you need to trim your cost structure,” said Jim Newsome, port president and CEO. The cost-cutting measures including a hiring freeze, reducing overtime, reducing advertising and promotion, eliminating the port’s utilization of a temporary workforce, and reducing business travel and entertainment.
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A worker wears protective gear during his shift at the BMW plant in Greer. BMW shuttered its facility for several weeks in response to the COVID-19 pandemic and recently reopened. (Photo/Provided)
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related,” Newsome said. “If you have, obviously, less ships, you probably have less overtime. If you have less rail dray, you have less rail dray expense. Things of that nature.” The cost-cutting measures are taking place immediately and will continue into the 2021 fiscal year, which begins July 1. Newsome said, though, that the goal is to have the port operate as normally as possible. “One of our major focuses is to continue as much offering hours and business as usual,” he said. “That’s what our customers want. ... The port’s an essential part of the supply chain in the Southeast. So we’ve been really focused on doing that.” Newsome said that although the port’s board won’t officially take up approval of the 2021 fiscal year budget until June, he’s
already anticipating a 5% to 10% reduction in container volumes next year. Additionally, the port has seen a slight dip in vehicle movement. The ports authority moved 9,036 vehicles at the Columbus Street Terminal in April, down 53.5% from April 2019. Automotive volumes may see an uptick in the final two months of the year, though, as the state’s automakers restart their production lines after over a month of closures. As of the end of April, the port has moved 183,131 vehicles this fiscal year, up 17% year-over-year. BMW Manufacturing resumed production at Plant Spartanburg on May 4. The Upstate auto manufacturer had initially anticipated closing for 16 days starting April 3, but when the company’s supply chain was disrupted by other
closures, the plant halted production March 29. Volvo Cars, which manufactures cars in Ridgeville, resumed production May 11, nearly a month later than it initially anticipated. Volvo closed its U.S. plant March 26 and expected to reopen April 14, but the company extended the closure to protect the health of employees and to accommodate for supply chain disruptions. Mercedes-Benz Vans, which manufactures Sprinter vans in Ladson, restarted production April 27. All the automotive manufacturers said they are taking precautions in their facilities to keep employees safe and healthy, such as increased cleaning procedures, providing masks and social distancing.
The assembly lines at BMW’s automotive manufacturing plant in Greer were shuttered for more than a month before recently reopening with enhanced safety and cleaning guidelines in response to the COVID-19 pandemic. (Photo/Provided)
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HUNGER GAMES:
Navigating the food industry during a pandemic By Molly Hulsey, Staff Writer mhulsey@scbiznews.com
Right: Servers at Powdersville’s Eggs Up Grill prepare for the first day of reopened outdoor seating with gloves, masks and bubble guns to capture the attention of nearby shoppers (Photos/Molly Hulsey). Center: Powdersville’s Eggs Up Grill has seen an average of 80 to-go orders every Monday since Gov. Henry McMaster closed dining rooms across the state. Left: At least 30 customers gathered eight feet apart in the first few hours of reopened outdoor seating at Eggs Up Grill.
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ines at food pantries and farmers markets wind for miles; farmers toss acres-worth of fresh produce into burial pits. Upside-down chairs spike empty tables in millions of low-lit restaurant dining rooms; stripped grocery store aisles bustle with masked shoppers. These aren’t scenes from a b-rated post-apocalyptic flick. These are snapshots of the battle the food industry has been fighting as the new coronavirus unhinged a well-oiled global supply chain early this year. South Carolina’s food supply experienced its fair share of interruptions throughout the spring, but as the dust
clears, industry survivors look forward to bringing new adaptations to the playing field.
Deep roots Based in Barnwell, Hamilton Dicks co-owns Melon 1, one of the country’s largest watermelon suppliers. He had heard of farmers dumping softer vegetables like squash but was thankful that by late April, his watermelon season had not yet peaked. Still, as Melon 1’s domestic supply picks up, Dicks shared concerns about sinking produce prices as shopping habits change. Between natural disasters and tariffs,
the past 10 years have already been hard on farmers. Professionals in the field fear that domestic farms could go belly-up in the months ahead without assistance, but South Carolina’s farmers remain resilient. “They’re a very tenacious group of individuals, and so, they’re figuring out every way possible to stay in business and keep the food flowing,” Tom Dobbins, Clemson University’s cooperative extension director, said. Dobbins confided that retailers that source locally, such as Ingles, and farmers that sell specialty products to the
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consumer, such as Happy Cow Creamery, McLeod Farms and Hickory Hill Farm may thrive, or at least in the meantime, weather the storm.
House of Raeford, a North Carolinabased poultry growing and processing company, operates several plants across South Carolina. The company has also stayed afloat by cutting out the middleman — 43% of their pre-pandemic sales
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went to restaurants and schools. This spring, the processor began to market discounted meat at community sales across the Southeast, bringing an estimated 40,000-pound trailer load at Greenville’s sales. Dave Witter, corporate communications manager at House of Raeford, said the sales wouldn’t be sustainable long-term but are helping pave the way for direct sale options like online delivery. By early May, the company reported that several S.C. employees tested positive for COVID-19, but widespread closures of processing plants, such as in the Midwest, have yet to be seen across the state.
Bill Andersen, CEO of The Fresh Food Group and subsidiary Country Fresh, said that while retailers have seen sales skyrocket by 200%, labor bottlenecks at distribution centers and customer demand shifts maimed fresh produce sales this spring. While protein and canned goods were cleared from shelves, initially, Fresh Food’s sales were down by 50%. Andersen hopes that as shoppers begin to weary of their Spaghettios horde, fresh produce, regionalized food supply and online ordering appetites whetted during the pandemic will climb to popularity.
Kicking at the curbside “We know that we can’t go back to where we were at the beginning of March,” Bobby Williams, CEO of the Lizard’s Thicket restaurant chain and chairman of the S.C. Restaurant and Lodging Association, said. “We just can’t snap our fingers and do that, so we just have to phase these things in.” Williams sees that “white tablecloth” fine-dining restaurants will bear the hardest blow, but survivors are venturing to offer family-style meals delivery and curbside service alongside traditional carryout venues. Greenville-based steakhouse City Range has shifted its menu three times due to seafood shortages and ever-
Inset: In the first few weeks of the pandemic in South Carolina, fresh produce sales fielded a significant hit, especially vegetables or fruit that did not keep or travel well. (Photo/Kathy Hulsey) At Greenville’s House of Raeford chicken sale in early April, several miles of cars awaited boxes of chicken priced at about $1 per pound. A policeman redirected cars attempting to cut in line (Photo/Molly Hulsey)
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changing demands, but co-owner Cory Wilk said that his “butcher shop” takehome meat sales have been a mainstay. Ali Saifi, founder and owner of gourmet Persian restaurant Pomegranate on Main in Greenville remains grateful he has not had been forced to dismiss any employees, thanks to ramped-up curbside service and loyal customers. Shortages of his usual supply of salmon, lamb shank and other meats also prompted an altered menu, as Saifi said he was not willing to compromise quality for availability. Eggs Up Grill, a South Carolina-based breakfast restaurant chain, cites constrictive prices from supply chain disruptions as a double punch to the industry, while all sources in the industry saw that
The week after Gov. Henry McMaster declared a state of emergency, protein was cleared off grocery shelves. With shuttered meat processors and depopulated herds, meat shortages continued to persist through early May. (Photo/Kathy Hulsey)
unemployment compensation equal to more than $20 an hour in pay threatens workforce numbers moving forward. Still, Laura Boles, marketing manager at Eggs Up Grill’s corporate headquarters, believes that online ordering habits are here to stay, as are restaurants with strong brand support and affordable menus.
“I do think that we are able to be a little bit ahead of the game and will come out of this stronger and better … we do know that guests will continue to be dependent on takeout, they’re going to be very dependent on delivery. Those habits aren’t going to change,” Boules said.
NOTICE OF BANKRUPTCY SALE On April 15, 2020, upon motion of the Debtor, the United States Bankruptcy Court for the District of South Carolina entered an order establishing bidding procedures for the sale of substantially all assets in the Ch. 11 Bankruptcy Case of Watertech Holdings, Inc. (“Watertech”), Ch. 11 Case No. 20-00662-jw. Watertech filed a Motion for Order Authorizing the Sale of Assets of the Debtor Free and Clear of Liens, Claims, Encumbrances, and Other Interests pursuant to 11 U.S.C. § 363 for a purchase price of $125,000. The proposed sale is a sale of substantially all of the Debtor’s assets including contracts, permits, intellectual property, goodwill and all related documents and rights.
For inquiries, you may contact Watertech’s counsel, G. William McCarthy, Jr. & W. Harrison Penn, by phone at (803) 771-8836 or e-mail at bmccarthy@mccarthy-lawfirm.com & hpenn@ mccarthy-lawfirm.com.
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A hearing on the Asset Sale will be held on June 26, 2020 at 10:30 a.m. at the U.S. Bankruptcy Hearing Room, 145 King Street, Room 225 Charleston, SC 29401. Any competing bids for Watertech’s assets must be submitted to Watertech’s counsel no later than June 16, 2020.
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USC ENGINEERS HELP FAST-TRACK APPROVAL OF VENTILATOR SPLITTER TUBE www.scbizmag.com
By Melinda Waldrop, Staff Writer
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n the fourth weekend in March, Hossein Haj-Hariri, the dean of the University of South Carolina’s College of Engineering and Computing, got a phone call. On the line was Majorie Jenkins, M.D., chief academic officer for Prisma
Health-Upstate and dean of USC’s School of Medicine Greenville. The ensuing conversation was game-changing. Jenkins told Haj-Hariri about a device created by a Prisma emergency medicine physician in collaboration
with her husband and a Prisma pulmonary critical care physician that allows four patients to be treated simultaneously on a single ventilator. The VESper uses a “Y” splitter tube to divide air flow among multiple patients. Prisma announced the device, pro-
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duced using 3D printing and aimed to combat the acute equipment shortages facing medical professionals battling COVID-19, received emergency use approval from the U.S. Food and Drug Administration on March 25. Prisma sent VESper specifications to engineers at USC and Clemson University for 3D materials testing and prototype printing. During their March 22 phone conversation, Jenkins asked Hossein Haj-Hariri at about 4 p.m. to assemble a team. “By 7 p.m., we had the team together, and ideas were flying around on email and telephone calls,” he
attach it to their machines and start spitting out these splitters.” Tarek Shazly, an associate professor in the College of Engineering and Computing, consulted on biomechanics and biomaterial aspects of the project. He offered use of his lab to test printed devices, though he said that hasn’t taken place yet. “Right now, I think the goal is just to get something out there and basically test it on the fly. It’s a bit of an unusual progression. Most projects progress a lot more gradually and slowly, but this one was obviously rushed,” Shazly said. “The people that have initiated this effort, they’re coming from the right place. They have good intentions. They’re not trying to make money or anything like that. They’re really just trying to help the situation. It’s been refreshing to be even just peripherally involved in something like that.” The consulting and design process has been complicated by the closure of USC’s campus because of the new coronavirus, though Hossein Haj-Hariri said professors and technicians — not students — do have access to labs for COVID-19-related research. He said ongoing VESper efforts are being led by the college’s chair of mechanical engineering, Jamil Khan. “The improvements to the idea and just expanding it beyond the original idea to face shields and other things — those are all activities that we’re doing,” said Haj-Hariri, adding that university partners such as GE and Johnson & Johnson are coming on board to speed up the manufacturing process. “This is what we all want to do,” Haj-Hariri said. “We want to solve problems and help society. As engineers, we actually do a terrible job of telling people what we do. Every time there is a development, some life is saved or a new cancer treatment (discovered), you see a doctor standing in front of some amazing machines with the patient. Well, the machines were developed by engineers, and this is one time that somehow, without our own doing, we are getting some credit for what we are doing. This is really what engineering is about — finding ways to solve problems.”
TRENDING: COVID-19 IN S.C.
Hossein Haj-Hariri, dean of USC’s College of Engineering and Computing, helped plan and implement the development of a device invented by Prisma Health-Upstate (left) that allows one ventilator to treat multiple patients at the same time. (Photos/Provided)
said. “What I found cool was how many parallel ideas we had going on. It was truly a crystallization of an idea. All I had to do was throw the seed in there.” In April, Johnson & Johnson Co. joined the effort. Using Prisma Health’s prototype, Johnson & Johnson Medical Device subsidiary Ethicon Inc. will use 3D printing technology and existing supply chain networks to share VESper free of charge with hospitals across the country. Hospitals can apply for the free source code and printing specifications for the VESper at https://www.prismahealth. org/VESper. Though VESper swiftly received emergency use approval, Haj-Hariri’s team is still hard at work improving aspects of its design. “It’s a simple design that we have, but there are some challenges involved,” he said. “Namely, when you have multiple patients on the same ventilator, you still have one sensor regulator for pressure, and it has to manage several patients, so you don’t know what patient is getting what. So our team is working on sensors, cheap sensors or even sensors that could even be 3D printed, that they put at the end line to each patient. Then, through taking that data as well as some biometric data, the one regulator can actually manage the flow. “We could always engineer a very complex and expensive system that is attached to each patient. But a) it’s too expensive, and b) it’s not going to show up in time. So what we want to do is take advantage of the electronics that exist and maybe add affordable and simple solutions at the back end that tie into the existing electronics and give us the data.” The USC team is also developing 3D printed molds to be used for plastic mold injection. “I don’t know if you have watched something but 3D printing, but it’s painful. You just sit and nothing happens,” Haj-Hariri said. “Those things (the molds) have a through-put which is hundreds of times greater than 3D printing, and these shops and facilities exist in every city. They’re like machine shops. So you give them the mold that you can 3D print, they
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TRENDING: COVID-19 IN S.C.
HPLP’S HELPFUL TIPS TO THE COVID-19 VIRUS
Is COVID-19 considered a Workers’ Compensation issue if one of my employees contracts the disease?
Our workers’ compensation act does not provide benefits for contagious diseases. Therefore, most claims would not be compensable under the South Carolina Workers’ Compensation Act. However, medical providers may have a claim for benefits for an occupational disease claim. These claims are very fact specific and would be decided on a case by case basis. To prevail on an occupational disease claim, an injured worker must show that he/ she suffers from a disease that (1) the worker was exposed to in the course and scope of his/ her employment; (2) that exposure is a result of hazards in excess of those incident to the employment and (3) is specific or peculiar to the workers’ job. However, this type of claim specifically excludes exposures that occur outside of South Carolina, occur due to exposure to outside climatic conditions, and contagious diseases that are spread between co-workers.
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In occupational disease cases, our courts will look to determine how closely related the exposure to COVID-19 is compared to the employee’s workplace and duties. Also, the courts are going to have to address whether a workplace exposure is peculiar to the type of job and workplace environment. Using healthcare workers as an example, a receptionist may have a less convincing case than an intensive care nurse or ER physician. As you can see, you can make arguments either way for this type of claim. Ultimately, the answer to this question will be determined on a case-by-case basis after an extremely fact intensive analysis of the medical records and work environment but also the personal life of someone who seeks to recover workers’ compensation benefits for COVID-19 exposure.
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Some states have already tried to direct their legislatures to draft new legislation to cover COVID-19 under the state workers’ compensation laws. Thus far, South Carolina has not taken any legislative action. If an employee thinks he or she might have early symptoms of COVID-19 or even tests positive, what are my obligations as an employer?
I recommend following the CDC guidance on this issue. In doing so, you must make sure that you maintain the integrity and privacy of your workers and workplace. The CDC recommends that someone with symptoms should avoid the workplace. Additionally, the Equal Employment Opportunity Commission has indicated that asking workers who show symptoms to leave is permissible. The CDC also recommends sending home co-workers for 14 days if they were in close contact with someone who has COVID-19. What can I do now to honor my worker’s rights but also defend a possible compensation claim resulting from an employee’s claim for benefits from COVID-19?
From a defense perspective, we always encourage employers to investigate the claim. We recommend taking witness statements, conducting a site or workplace visit, and monitoring surveillance footage. Make sure that you do those tasks as quickly and as detailed as possible. Whether the claim is denied or admitted, we encourage employers to gather personnel file materials, job descriptions, wages, and other documents since those are very important in assessing exposure. Given that a case involving COVID-19 is fact dependent, the more thorough the investigation the better.
A key factor in whether a COVID-19 exposure will be a compensable work-related injury will depend on whether the employee can prove causation. In other words, the employee must show that he/she was exposed to and contracted COVID-19 at work. Employees now may have an easier time establishing causation since people aren’t going places outside of work. Another important factor that courts will consider is how employers respond to an employee who tests positive. Employers will want to ensure that they follow CDC and other guidance to protect their employees and maintain the integrity of the work environment. In the case of a workers’ compensation claim for COVID-19, an employer who takes precautions and follows appropriate guidance after an exposure will look more favorable to our Workers’ Compensation Commissioners than employers who do not. Unless it’s a healthcare worker, the best alternative for employees is to pursue care under their own private health insurance. Based upon our workers’ compensation laws, most employees will not have a claim for COVID-19 exposure. In those cases, employers want to avoid starting temporary compensation benefits. The employee may be entitled to unemployment benefits, not workers’ compensation benefits. What should I do after a claim has been submitted to make sure I am in compliance and can answer any legal questions during and after?
The most important thing to do is initial reporting, especially for employers who are self-insured. Generally, the first task to complete is filling out an initial report of injury, often referred to as a Form 12A. This is an important form for not only your files but also anyone else involved in the claim because it has a lot of useful information. Once you’re dealing with an active claim, the most important step is to monitor the worker’s medical treatment, specifically his/her work restrictions. If you’ve got an employee who has restrictions, I would make certain that employee is staying within those restrictions. We often see injured workers Sponsored Content
HPLP’S HELPFUL TIPS TO THE COVID-19 VIRUS
Lastly, stay in touch with your insurance carrier and defense attorney. Sometimes the best information we get is from supervisors and co-workers, but we often don’t get enough interaction with those folks. We really value an employer’s input in developing and executing our defense strategy. I’ve had several cases where the employer’s input helped us resolve an issue or even the entire claim. What medical treatment or benefits are employers required to provide under the South Carolina Workers’ Compensation Act claim?
Depending on the nature of the injury, an employer generally must provide a combination of temporary compensation benefits, medical treatment, and permanent disability benefits. Not every claim requires temporary compensation benefits. The purpose of temporary compensation benefits is to provide wages to an employee who is unable to work due to a work-related injury. We focus on day seven and day fourteen. Temporary compensation benefits are triggered when an employee misses seven days of work. The seven days do not have to be consecutive. Once you hit seven days, you need to start paying temporary compensation benefits. After you reach the fourteenth day, you’re responsible for the initial seven-day waiting period.
The law requires that an employer provide medical care that will tend to lessen the period of disability. In terms of COVID-19, the nature, extent, and duration of medical treatment is unknown. However,
Permanent disability is usually the last benefit that we consider because it is paid out at the end of a claim. This benefit is meant to compensate an injured worker for the workrelated accident and the lasting impairment resulting from that accident. Our state allows for several different types of permanent disability for losses to a single body part, the whole person, loss of earning capacity, and others. In the case of COVID-19, the most likely permanent impairment would be damage to the lungs or another organ and a claim that involves a fatality. Each body part, including internal organs, is worth a set number of weeks of benefits. A fatality claim is worth up to 500 weeks of benefits.
includes outpatient surgeries, follow-up visits, physical therapy sessions, which is the bulk of the medical care involved in a workers’ compensation claim. For someone who also suffers from COVID-19, I would expect that several, if not all providers, would ask that individual to avoid contact and interaction with others. This probably would include going to medical visits for workers’ compensation claims. Ultimately, a COVID-19 infection will likely prohibit a worker from progressing as quickly. Overall, COVID-19 has already had a big impact on all our environments and the workers’ compensation world is no different. We’ve had to change our approach to claims in the last few weeks with this issue. Our firm has tried to find ways to be creative and stay head of the issues as they come up, and I feel like that approach has really helped us address the everchanging nature of this crisis.
If an employee already has a workers’ compensation injury unrelated to COVID-19, how will contracting COVID-19 impact the employee’s treatment, recovery and return to work?
I think the biggest impact is time. For someone who is already treating for a work-related injury, that employee is going to encounter a lot of delays. This probably includes delays in getting treatment and returning to work. From an employer perspective, you always want to return someone to work as soon as possible after a work-related accident. However, you don’t want to introduce someone into your work environment who is suffering from COVID-19. Therefore, a worker with COVID-19 will likely be held out of work for a longer period even if they might be ready to come back from their work-related accident. In those cases, you’ll have to extend temporary compensation benefits while that worker remains out of work. From a medical care perspective, I think the biggest impact for a worker with an ongoing claim relates his or her access to care. We’ve already seen a lot of providers stop seeing non-emergent patients, which
David Padgett, Shareholder HOLDER PADGETT LITTLEJOHN + PRICKETT, LLC
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Medical benefits, especially in the context of COVID-19, might be the most important aspect or benefit involved in a workers’ compensation claim. Medical treatment moves a claim forward, and it is often a great indicator of the overall value of a claim.
treatment for COVID-19 might include costly treatment, including specialty physicians, extensive therapies and monitoring, and designer medications. Treatment for COVID-19 might also take longer than other comparable diseases, which is going to add more costs to the medical care.
TRENDING: COVID-19 IN S.C.
suffer re-injuries or new injuries when they come back to work and do too much too fast. In the case of COVID-19, the biggest concern is someone coming back to soon and spreading the virus to other employees. For cases related to COVID-19, you want to make sure that symptomatic employees remain out of work until they recover fully.
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S.C. DELIVERS
Ports, Logistics & Distribution
Workers harvest watermelons for transport in a converted school bus at a Melon 1 farm . The farm collective and importer that includes South Carolina farms is the largest watermelon supplier in the country. (Photo/Provided)
INSTINCT TO ‘HUNKER DOWN’ MAY CAUSE GLUT IN PRODUCE SUPPLY
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By Molly Hulsey | mhulsey@scbiznews.com
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M
elon 1, a watermelon farm collective and importer that stretches across the Southeast and beyond, sources a number of melons from Jason Still Farms in Denmark, Bamberg County. Shipping 15,000 loads of the fruit in 2019, the company is the largest watermelon supplier in the country, according to co-owner Hamilton Dicks, and supplies Grey Court’s Country Fresh plant along with most chain grocery stores and wholesale retailers like Sam’s Club. Dicks is based in Barnwell, but he follows the melons up and down the East Coast as they ripen into season. Melon 1 had just begun its seasonal transition from South American exports to Florida fruits. He hasn’t seen the piles of squash and zucchini set ablaze by farmers here but is concerned that shoppers’ demands are shifting away from fresh produce as they make fewer grocery trips.
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“It really scared us quite badly, and as time has gone on, on our side, it is not as bad as it might be. Now I understand that there are some people in other commodities that are dumping produce. They cannot sell it now,” Dicks said. To date, Melon 1 has been able to bring everything grown to market. The demand for melons has not tanked, he said, yet it is early in the season and months ahead of when the Carolina crop is ready for harvest. Dicks has also heard of issues in the industry with getting the labor to ship produce out of the warehouse to market, along with farm workers being able to cross the Mexican border into the United States. He added that domestic farm labor is hard to come by today. “Our supply is going to increase about now,” he said. “We’re going to see supply pick up. Whether demand is going to go with it, we’ll just have to see. But so far, it’s been OK.” Later in the summer, watermelons from Denmark’s Jason Still Farm will be shipped to Grey Court’s Country Fresh
plant and then on to retailers and restaurants across the Southeast. Bill Andersen, CEO of the Fresh Food Group, a parent company of the Country Fresh brand based out of Texas, said that his process-
fresh produce and are more likely to favor proteins and nonperishables, thus affecting retailer purchase choices and prompting farmers in some parts of the country to destroy the food they can’t sell.
“Our supply is going to increase about now. We’re going to see supply pick up. Whether demand is going to go with it, we’ll just have to see. But so far, it’s been OK.” Hamilton Dicks
Co-owner of Melon 1 farm collective and importer
ing plants have stepped up cleaning and personal protection equipment practices. He said other plants that didn’t take action have been forced to close their doors. No positive COVID-19 cases had been reported at South Carolina’s Fresh Food Group plants as of April 23, and Andersen said Fresh Food Group has had no issues with meeting customer demands. But demand has simply changed. “People got into this hunker-down, bunker-down mindset, and what we saw was that the center of the store just got devastated: Spaghettios and Spam just got ripped off the shelves,” Andersen said. Initially, he said, his sales were off by 50%, but over the past two weeks, people appear to be tiring of the frozen and canned goods, and Fresh Food’s retail sales are climbing to normalcy. Anderson said he understands that people who are spacing out grocery trips have a “very different decision matrix” than those who are stopping in every few days for
As retailers’ sales skyrocketed up by 200% over the past month, Andersen saw tight labor at retailing distribution centers create a bottleneck in the supply system. He added that produce often takes more time to vet than nonperishables. Furthermore, sales at restaurants supplied by Fresh Food have seen sales drop by 50% since COVID-19 closed dining room doors, but they make up only 20% of the company’s sales. Andersen hopes a reopened economy will release pent-up demand for fresh fruits and vegetables and he sees potential in online sales since more shoppers have hopped online during the pandemic. He also thinks the food supply chain will continue to localize, an ongoing trend bolstered by U.S. Department of Transportation mileage regulations for truckers, as well as a growing “buy local” movement. In the meantime, he lauds USDA’s response to concerns from the United Fresh Produce Association and others to bridge the gap. In a $19 billion Coronavirus Farm Assistance program package announced April 17, $3 billion will be used to purchase fresh produce, dairy and meat products sent to foodbanks and other nonprofits. “Today, you see a number of good stories of how farmers are getting their stuff to the markets, and the government is paying for that to happen,” Andersen said. Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.
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S.C. DELIVERS
Aerospace
By Patrick Hoff phoff@scbiznews.com
Boeing delivers protective equipment for MUSC workers
M
arlon Kimpson believes when the coronavirus has passed, part of the story to be told will be about South Carolina’s resilience and citizens banding together. A prime example of that, the Democratic state senator from Charleston said, is the delivery of 150,000 face shields and eye goggles from China to the Medical University of South Carolina in mid-May, facilitated by Boeing. “Today’s delivery is just another example of how the people of South Carolina… stepped up when faced with adversity,” Kimpson said. Three Boeing Dreamlifters, which are 747-400 jumbo jets converted to large cargo freighters, were used to transport the medical supplies. The supplies were held in the lower section of the planes while 787 component parts were flown in the main deck cargo hold.
Workers unload a shipment of personal protective equipment from China off a Boeing Dreamlifter plane at the company’s North Charleston facility. (Photo/Boeing)
The flights were operated by Atlas Air. “Boeing and MUSC have a longstanding partnership, and today’s delivery is yet another example of two great South Carolina institutions coming together in
support of our local community,” said Dr. David Cole, president of MUSC. This was the first time three Dreamlifters were lined up in one location, Boeing President and CEO David Calhoun
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A Boeing Dreamlifter with a delivery of personal protective equipment for MUSC from China is unloaded at the company’s final assembly site in North Charleston. (Photo/Patrick Hoff)
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Pallets filled with personal protective equipment sit at Boeing S.C. in North Charleston, part of a shipment from China that Boeing helped facilitate. (Photo/Patrick Hoff)
S.C. DELIVERS
said in his first public appearance as CEO at the South Carolina plant. “Today’s delivery puts essential personal protective equipment in the hands of South Carolina’s frontline health care professionals and helps MUSC further support the community during the COVID-19 pandemic,” Calhoun said. “I am incredibly proud of our Boeing team members throughout the world for their work to help stop the spread of COVID-19 and thankful for our government and industry partners that have joined us in the pandemic response.” Along with Kimpson, Cole and Calhoun, the Boeing delivery was attended by Gov. Henry McMaster; MUSC Health CEO Dr. Patrick Cawley; U.S. Rep. Joe Cunningham, D-Charleston; U.S. Rep. Joe Wilson, R-Springdale; Rep. Ralph Norman, R-Rock Hill; and Republican U.S. Sen. Tim Scott. Scott said it’s easy to write a check, as Boeing has sometimes done to support MUSC, but what’s more important is what a company does with the resources it has. Both MUSC and Boeing, he said, have utilized their resources to the fullest extent. “Protecting our frontline health care workers, who put their lives on the line every single day, is absolutely essential, and this will help MUSC do exactly that,” Scott said. Cawley said six weeks ago, MUSC was concerned about having enough personal protective equipment at its own hospitals, but the coronavirus has been contained
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S.C. DELIVERS
at most of its hospitals. The only hospital that has seen a major outbreak is Florence Medical Center. Now, Cawley said, MUSC is shifting some of its efforts to a statewide mobile testing initiative in rural, underserved and at-risk areas. The personal protective equipment delivered Monday should last MUSC for the next few months, Cawley said. This is the fourth transport mission that Boeing has undertaken because of COVID-19 and the second in South Carolina. The company delivered 1.5 million masks to Prisma Health late last month, with 100,000 donated to MUSC.
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Reach staff writer Patrick Hoff at 843-8493144 or @PatHoffCRBJ on Twitter.
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U.S. Sen. Tim Scott (left) talks to Gov. Henry McMaster as Boeing and Atlas Air deliver more than 100,000 face shields and eye goggles for health care workers in South Carolina. (Photo/Patrick Hoff)
Medical University of S.C. President Dr. David Cole said the university and Boeing have a long-standing relationship and have worked together in the past for community support. (Photo/Patrick Hoff)
A freight train briefly interrupts the natural solitude of the Francis Marion National Forest near Jamestown in Berkeley County. The forest encompasses nearly 259,000 acres and is home to a wide variety of wild flora and fauna. (Photo/Kim McManus)
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