Skip to main content

2021 SCBIZ Magazine - Spring

Page 1

Spring 2021

Driving toward the future S.C. automakers push tech advancements, electric power

ELECTRONIC SERVICE REQUESTED SC Biz News 1802 Dayton St., Suite 101 North Charleston, SC 29405

County Spotlight: Newberry | Trending: Automotive in S.C. | S.C. Delivers


South Carolina, we have you covered! Chesterfield Spec Building Huber Engineered Woods, LLC

Dillon Spec Building #3

Florence Spec Building

Leased Q4 2020

100,440 square foot Class A speculative industrial facility located in Chesterfield County 109,200 square foot Class A speculative building completed by MDT and sold to Huber Engineered Woods, LLC in Q1 2020 117,180 square foot Class A speculative industrial facility located in Florence County

253,000 square foot Class A speculative industrial facility in Dillon scheduled for delivery in Q4 2021

Dillon Spec Building #4

Multi-Pack Solutions

208,000 square foot Class A speculative industrial facility in Dillon County 125,000 square foot build-to-suit for Multi-Pack Solutions in Greenville completed in Q4 2019

HFT Distribution Expansion

KP Components

MDT managed the construction of a 1 million square foot expansion to the Harbor Freight Distribution Center in Dillon completed in Q2 2019.

50,000 square foot build-to-suit for KP Components in Easley completed in Q1 2021

Wyman-Gordon

Newberry Spec Building

Inland Port Dillon

Leased Q4 2020

50,000 square foot Class A speculative building in Dillon completed by MDT and sold to WymanGordon

100,440 square foot Class A speculative industrial facility located in Newberry County

MDT partnered with SC Ports Authority to develop Dillon Inland Port

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: AUTOMOTIVE IN S.C. 15 Navigating the pandemic: Automotive sector in state remains strong

18 Artificial intelligence enhances efficiency and safety of automotive workforce

20 New lithium-ion technology aims to make electric car batteries safer

SPECIAL PUBLICATION The Deep Orange 12 team at Clemson University includes 40 graduate engineering students, who are developing a high-speed, self-driving, open-wheel racecar at CUICAR. See the story on page 17. (Photo/Provided).

ABOUT THE COVER Robots assemble a Volvo S60 sedan at the company’s manufacturing facility in Berkeley County. Volvo and other global automakers are using artificial intelligence and improvements in automation to enhance workforce safety and efficiency. (Photo/Volvo)

DEPARTMENTS www.scbizmag.com

4 Upfront

2

8 County Spotlight: Newberry 26 S.C. Delivers

CITIES MEAN BUSINESS S.C. cities learn new ways to do business, connect with residents in pandemic

SUBSCRIPTION INFORMATION SCBIZ reaches thousands of South Carolina’s top decision-makers. Add your name to the list by ordering a print subscription to SCBIZ. Your subscription also includes SCBIZ Daily. Delivered to your e-mail inbox each weekday morning, SCBIZ Daily is your link to statewide business news. One year for $49.50; two years for $79.50.

Subscribe or change your address online at www.scbiznews.com or call 877.615.9536.


From the

Editor - Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Associate Editor - Jim Tatum jtatum@scbiznews.com • 864.720.2269 LOWCOUNTRY NEWSROOM

EDITOR

Executive Editor - Andy Owens aowens@scbiznews.com • 843.849.3142

Dear Reader,

Staff Writer - Teri Griffis tgriffis@scbiznews.com • 843.849.3144

The automotive industry in South Carolina has faced the same headwinds buffeting every sector of the pandemic-afflicted economy. Supply chain disruptions, COVID-19 safety protocols for workers and worldwide markets in upheaval continue to be the reality automakers and their affiliated suppliers deal in day after day. Automakers and suppliers contribute an estimated $27 billion annually to the S.C. economy. BMW, Volvo, Mercedes Benz, Michelin and Continental Tire are major employers throughout the state, driving tax and capital expenditure revenue through their manufacturing operations. Their financial health and future outlook will shape much of the state’s economic landscape in the coming months and years. The losses in revenue have subsided since the early days of the pandemic in spring and summer 2020, but companies face significant challenges at least through the first half of 2021 as the novel coronavirus continues its deadly global spread. Steve McDaniel This issue of SCBIZ magazine looks at several key fronts of the Editor, automotive industry: electrification, which is a major buzzword across SCBIZ Magazine the globe as automakers seek cleaner, more efficient ways of powering vehicles; battery technology, a key component of electric vehicles, that must gain the trust of a largely gasoline-dependent public; and the future of the industry, specifically what key employers such as BMW, Volvo and Mercedes Benz see in the coming months and years. Of course, the public’s willingness to adopt on a wide scale this new technology depends largely on the reliability of electric vehicles to get from point A to B efficiently and safely. Battery limitations in terms of miles driven and a lack of infrastructure to recharge those batteries on the road are major hurdles automakers are working to overcome. Also in this issue, our staff took a look at how small businesses across the state have fared during the pandemic, specifically at how federal and state relief packages have been accessed and distributed. This relief has been a lifeline for many businesses that otherwise could not have survived the sudden and sharp downturn in demand for their products and services that started nearly a year ago. Our biannual partnership with the S.C. Municipal Association, Cities Mean Business, is also a featured section in this issue. Read more about how municipalities across S.C. have adapted to address pandemic-related issues such as health protocols, access to city services and more. We hope you find all this content valuable, insightful and informative. As always, thank you for being part of the SCBIZ community.

Digital Assistant Editor - Alexandra Ng ang@scbiznews.com • 843.849.3124 Research Specialist - Paige Hardy phardy@scbiznews.com • 843.849.3125 Research Assistant - Anne Puckett apuckett@scbiznews.com • 843.849.3145 MIDLANDS NEWSROOM Editor - Melinda Waldrop mwaldrop@scbiznews.com • 803.726.7542 UPSTATE NEWSROOM Editor - Ross Norton rnorton@scbiznews.com • 864.720.1222 Staff Writer - Molly Hulsey mhulsey@scbiznews.com • 864.720.1223 ACCOUNT EXECUTIVES Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143 Senior Account Executive - Ryan Downing rdowning@scbiznews.com • 864.720.1221 Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Senior Account Executive - Lucia Smith lsmith@scbiznews.com • 803.726.7547 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109

South Carolina’s Media Engine for Economic Growth President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Creative Director - Ryan Wilcox rwilcox@scbiznews.com • 843.849.3117 Events Manager - Kim McManus kmcmanus@scbiznews.com • 843.849.3116 Events Account Executive - Melissa Tomberg mtomberg@scbiznews.com • 864.720.1220 Accounting - Robin Tillotson ar@pbmbrands.com • 336.605.1025 SUBSCRIPTION SERVICES service@bridgetowermedia.com • 877.615.9536

Mailing address: 1802 Dayton St., Suite 101 North Charleston, SC 29405 Phone: 843.849.3100 • Fax: 843.849.3122 www.scbiznews.com

The entire contents of this newspaper are copyright by NWS Company LLC with all rights reserved. Any reproduction or use of the content within this publication without permission is prohibited. SCBIZ and South Carolina’s Media Engine for Economic Growth are registered in the U.S. Patent and Trademark Office.

www.scbizmag.com

Proudly printed in South Carolina by: Martin Printing | www.martinprinting.com

NWS Company LLC A portfolio company of BridgeTower Media

3


UPFRONT regional news | data

S.C. small businesses navigate changes wrought by COVID-19 with the help of state and federal funds By Melinda Waldrop, Molly Hulsey and Alexandria Ng SC Biz News

T

he COVID-19 pandemic has laid bare obstacles small businesses face that go beyond financial. As small businesses across the country struggle to keep the lights on after a spring shutdown and varying degrees of reopening in the nine months since, federal Paycheck Protection Program loans and state grants have provided much-needed help. But the $525 billion distributed nationally in the first round of PPP, along with $40 million in SC CARES grants to small- and minority-owned businesses in South Carolina, are stopgap solutions for many. “There’s obviously a number of problems that have been exposed,” said Frank

Margaret Nevill, owner of Columbia fired arts studio Mad Platter, prioritized payroll with the PPP loan her small business received. She was committed to making sure none of her nine staff members at the Millwood Avenue studio were let go, a goal she achieved. The Mad Platter has been in business for 23 years. (Photo/Melinda Waldrop)

Knapp, president and CEO of the S.C. Small Business Chamber of Commerce. “There’s been exposed the problem of entrepreneurs and very small businesses not having good access to the financial institutions or keeping proper records and getting the proper training.”

While those issues may have prevented some from receiving a cut of the first round of PPP loans, another factor makes it hard for many small businesses in the state to thrive even in good times, Knapp said. “There’s obviously a problem with

Section begins on

FAST FACTS | Automotive in S.C. No. 1

www.scbizmag.com

S.C.’s rank in global exports of automobiles

4

22,000

New jobs in S.C. automotive industry created since 2011 Source: S.C. Department of Commerce

Page 15

500

Automotive and related companies in S.C.

$27 billion

Annual estimated economic impact of S.C. automotive industry

62,000

People employed in S.C. automotive and related companies

$8.9 billion

Capital investment in S.C. automotive industry since 2011


UPFRONT

World-Class Risk Management. Delivered Locally.

Whether business or personal insurance, you have questions. From commercial insurance to employee benefits, surety bonds and personal protection for your home and auto, we have experience and the answers to protect you against the unknown.

Learn more | 803 733.5284 | southrisk.com

www.scbizmag.com

broadband,” Knapp said, exposed most visibly in education and health care, but also an economic development issue. “From our perspective, we recognize education’s important. Health care’s important. But there’s also the economic part of that. How can we expect these rural communities to actually develop good, successful business communities if there’s no broadband there? This is as much an economic development issue, statewide broadband, as it is a health care issue, as it is an education issue.” The second round of PPP loans were initially targeted to address those that might have fallen through the cracks in 2020. When the program re-opened in January, only Community Financial Development Institutions, which serve underrepresented communities, could apply for loans in its first week, and the U.S. Small Business Administration said it was prioritizing small businesses in the $284 billion allocated for job retention, property damage costs, operations expenditures, supplier costs and worker protection through March 31. In the first round of PPP, Knapp said only 16% of S.C. small businesses received loans. The S.C. Small Business Chamber of Commerce released a report last September analyzing available business closure data in three areas through the first week of September. The report found that 580 businesses in Horry County, Rock Hill and Hilton Head had closed, with 30.5% of closures in the personal services sector, 29.7% among contractors and 20.5% in the retail industry. Chamber research also found that statewide, new business license applications dropped by 946, a decline of 31.2%, from April through July 2020 as compared to the same period in 2019. To help small, minority-owned businesses and nonprofit organizations, the General Assembly passed the SC CARES Act, which was signed by Gov. Henry McMaster in September. The act made $65 million available to small businesses and nonprofits to mitigate the impact of the pandemic. Grant

5


UPFRONT

applications flooded the S.C. Department of Administration, quickly exhausting the funds.

Columbia arts studio adapting daily to a changing normal Margaret Nevill’s first priority was paying her staff. Nevill, owner of Columbia fined arts studio The Mad Platter, was determined to keep all nine of her employees on staff as the COVID-19 pandemic forced changes to her business model at her 23-yearold store on Millwood Avenue. She used PPP loans to help meet that goal. “When you’ve lost more than 60% of your business for the year, you’re struggling to reach every month’s bills, every month’s payroll, and no, I did not let people go,” said Nevill, who also received $17,680 from the SC CARES Act. “I was making sure my staff was paid. … Payroll was my priority. After payroll, it was rent and utilities.” The Mad Platter was one of 2,284 S.C. minority and small business which received $40 million in SC CARES grants, according to data from the S.C. Depart-

ment of Administration. Six hundred and eight-six nonprofits received $25 million. Nevill said the process of obtaining the federal loan was “absolutely seamless,” once she found the right person to talk to. “I banked with a larger, big bank, someone that’s across many states. When PPP came out, they did not offer any assistance to me,” she said. “I got no notice. It was really hard. I have a personal banker who my husband and I have used for our home and for my husband’s businesses. He reached out to us immediately and said how can I help you? His bank, Security Federal, it’s a local bank, and they made it seamless for us.”

Limestone College’s mission: Keep serving all its students Cherokee County’s Limestone University is no stranger to virtual learning. “We have one of the largest online enrollments in South Carolina,” President Darrell Franklin Parker told GSA Business Report. “But our online enrollment is overwhelmingly made up of the students who were online before the pandemic.”

So, as universities and school systems across the country witnessed an unprecedented uptick in online enrollment numbers over the past year — sometimes mandated, sometimes not — the Gaffney college was an anomaly. In the fall semester, about 60 formerly brick-and-mortar undergraduates moved online due to concerns about the pandemic or, for international students, because of an inability to get back in the country. During this semester, residential enrollment grew by 79 students year-overyear, while Limestone’s online student community dipped. This was no reason to celebrate, Parker said. Many of the school’s online students are adults, working to make ends meet while cramming for exams. They were more likely to be “economically vulnerable” during the shutdown last spring, or less likely to be able to keep up their courses when the pocketbook gets thin. So when Limestone College took out a Paycheck Protection Program loan between $2 and $5 million through the First National Bank of Pennsylvania, it helped

Get back to business – safely. Call today about workplace entry solutions.

| On-site COVID-19 Testing | On-site Antibody Testing | On-site Flu Shots

www.scbizmag.com

Doctors Care Employer Health Services

6

| DOT Physicals | Drug Screens | On-site Biometrics

Employers.DoctorsCare.com

| Workers’ Compensation | Occupational Medicine | On-site Medical Centers

888-845-6887 | Sales@DoctorsCare.com


Charleston limo company tries to keep the wheels rolling Keeping a luxury car and limo service business afloat when Charleston tourism has taken a hit due to the pandemic, said

Kenneth Hutchinson, owner of Marquee Limo Co. It has been just as hard finding the financial aid required to sustain the business, he said. “We’ve gone in debt by about $230,000,” Hutchinson said. “We’ve seen a tiny upswing, so it’s looking a little bit better than it did last year, but not a whole lot more. Currently, we’re still losing about $20,000 a month.” As a company that provides transportation services for airports, weddings, group gatherings and special events, Marquee Limo’s target market significantly dwindled as tourists, resorts and venues canceled events to limit the spread of COVID-19. Whereas the company might have fulfilled a little more than 1 million transportation requests on a normal year, it only had about 300,000 in 2020, according to Hutchinson. After 60 days of being completely shut down last year and reducing its staff to three drivers from the original 18, Marquee Limo Co. reports being down 70% as compared to previous years.

Upon applying for the Small Business Administration’s Economic Injury Disaster Loan, Hutchinson was told that the company qualified for about $500,000. But they got caught in the waiting line, Hutchinson said. By the time it was their turn to receive the funds, they could only get $149,000 due to a cut-off amount. Hutchinson had more success with the Paycheck Protection Program, having received $34,000 in loans on the first round. Those funds went toward catching up on interest-only payments, owner’s salary and utilities. Now, the company has applied for the second round of payroll protection, which could take up to 60 days for approval, Hutchinson said. As Hutchinson prepares for a waiting game preceding the second round of PPP, he plans to keep his business running using the Charleston LDC’s revolving loan fund, from which he received a total of $73,000. The fund comes from an $850,000 grant from the U.S. Department of Commerce’s Economic Development Administration.

UPFRONT

the school save up for services that help sustain its usual programming and keep these vulnerable students in the loop. “We would certainly have had to decide where to cut” without the loan, said Parker, who declined to say what programs may have been dropped. “There definitely would have had to have been some tough choices, and [with] the type of support we’ve gotten so far, we have spent every penny and then some on COVID-related and student support.” Today, the fall-spring retention rate is more than 90% despite the pandemic, he said. “I think there is a recognition that if we had not invested in higher education and made sure that that would continue to fulfill its mission during the pandemic, we could lose a generation,” Parker said.

Cooper River Center for Advanced Studies

Enhancing the

Experience 1501 Main Street, Suite 730 Columbia, SC 29201 ssoe-sw.com

SSOE | Stevens & Wilkinson creates sustainable environments that are culturally and socially significant, projects that have a lasting and positive impact on our communities.

www.scbizmag.com

Through a recent acquisition, Stevens & Wilkinson joined SSOE’s national platform expanding its Southeast presence, capabilities, and overall portfolio.

7


county spotlight

NEWBERRY

Students learn skills at Piedmont Technical College to help them join a skilled workforce.

NO SECRET ANYMORE

Newberry County boasts central location, quality of life By Jim Tatum, Associate Editor | Photos provided by Newberry County

N

ewberry County continues to build a reputation as an up-andcoming destination to live, work and play. Located in the center of the state, in the heart of the I-26

www.scbizmag.com

corridor, its proximity to larger urban areas such as Columbia, Greenville

8

Newberry Coun by the numbers ty Population: 39,224

and Spartanburg and ease of access to airports, regional and national

Per capita income:

markets and the port of Charleston has helped the county become a

Avg. Hourly Wage:

significant contributor in South Carolina’s economic development efforts. “I’ve lived here all my life,” County Chairman Henry H. Livingston III

Special Advertising Section

Source: U.S. Cens

$39,024

$18.05

us Bureau


COUNTY SPOTLIGHT: NEWBERRY www.scbizmag.com

10

said. “I’ve always said Newberry County was the best-kept secret in the state — and now that secret’s getting out.” Throughout its history, Newberry County has worked to leverage its assets into economic prosperity. Founded in 1785, the area was largely agrarian, and started as a trading community due to its location between two rivers. Later, in the 19th century, the railroad would spur greater economic growth. Cotton mills came into the area in the late 1880s and were the economic bedrock for a century — for example, Newberry Cotton Mills opened in 1882 and closed 100 years later. As the mills were closing, county leaders saw the need to find new industries. They were able to land Louis Rich, now Kraft-Heinz, the largest turkey processor in South Carolina. Since then, the county has welcomed such companies as Georgia-Pacific, Valmont Composite Structures (formerly Shakespeare Composites), Pioneer Frozen Foods, Kiswire, Komatsu America Corp., KRA Operations, and MM Technics, to name a few. More recently, Metal Masters, KRA Operations, MacLean Fiberglass, and Special Advertising Section

Newberry County has welcomed a number of major manufacturers, including Samsung Electronics Home Appliance America (top) and Schweitzer Maduit International.

Hecate Energy all made investments and brought in new jobs to the county. In 2017, Newberry County announced the largest economic development project in county history, a home appliance manufacturing facility from one of the largest companies in the world. Since announcing in 2017,

Samsung Electronics Home Appliance America has grown to more than 1.4 million square feet of manufacturing space, investing about $500 million, and now is one of the largest employers in the community with well more than 1,000 jobs. “One of the primary reasons for open-


MID-CAROLINA COMMERCE PARK

7 PROJECTS

4 MULTINATIONAL COMPANIES 1 INDUSTRIAL PARK 1 CONTRACTOR

THSconstructors.com


COUNTY SPOTLIGHT: NEWBERRY www.scbizmag.com

12

MM Technics is one of a number of manufacturers that have benefited from Newberry County’s business-friendly climate and skilled and ready workforce.

Special Advertising Section

ing the Newberry home appliance manufacturing facility was to account for the growing demand for home appliances in the United States,” Thomas Komaromi, General Counsel for Samsung, said. “In Newberry County, our local businesses, government, and community all work together to help create, attract and grow competitive companies and expand the tax base, thereby providing more dollars to local and state government to deliver high quality services and infrastructure … Overall, we are committed to our local community for the long term and we will continue to uplift others as we write our history together.” Newberry County has a labor force of around 18,500, and nearly 22.5% of this workforce is employed in manufacturing, more than double the national average. In addition, because of its location, Newberry County can draw from a pool of nearly a half million workers, a pool that stretches from Greenville to Orangeburg counties, an advantage not lost on companies considering a move to the area. “We are a small company, but we need a highly qualified staff,” MM Technics President Meinolf Muhr said. “I was concerned about hiring staff, and all my doubts are gone. The unique businessfriendly environment of Central South Carolina and Newberry County gave MM Technics the chance to create a great team of experienced, high-skilled specialists and local college graduates, supported by the German-based headquarters.” Similar collaborations have enabled the county to build and upgrade vital infrastructure over the years. From water and sewer projects done in the early 1990s and the development of the county’s industrial parks to the city of Newberry’s collaboration with WC Fiber, part of West Carolina Rural Telephone Cooperative, to bring affordable fiber optic technology to the city have been investments that have yielded great dividends. “We just completed that project,” Newberry Mayor Foster Senn said. “The city of Newberry is a provider of elec-


882 Wilson Road Newberry, SC 29108 (803) 276-1121 nec.coop

Special Advertising Section

www.scbizmag.com

Providing our members with quality service at competitive rates since 1940

COUNTY SPOTLIGHT: NEWBERRY

Improving economic growth in our community by meeting the demands of today with the innovative ideas of tomorrow.

13


COUNTY SPOTLIGHT: NEWBERRY www.scbizmag.com

Newberry County is home to many popular festivals and events, including the annual Oktoberfest.

14

tricity, and we partnered with WC Fiber to bring fiber optic to every household and business in Newberry. This has been very well received.” Newberry County offers an excellent, affordable, quality of life. The crime rate is low. The city of Newberry, known as the “City of Friendly Folks” and voted a top 100 town in America, is the county seat and largest municipality. The towns Special Advertising Section

of Peak, Pomaria, Prosperity, Little Mountain, Silverstreet and Whitmire are all small, charming, eminently livable places. Newberry County residents, on average, earn around $39,000 a year and enjoy a reasonable cost of living; the cost of housing, for example, is around 25-30 percent of the national average. The public school system, rated

“excellent” by the state of South Carolina, offers a quality education, but for those who seek an alternative to public schools, Newberry Academy, a private K-12 institution, is a good local option. Piedmont Technical College offers a diverse curriculum in technical education, while Newberry College, a prestigious, four-year liberal arts college, continues to attract students from around the world. Ultimately, all agree the most important asset to Newberry County is the people. “We have an entrepreneurial spirit in the city and throughout the county,” Senn said. “People are willing to work together to make things happen. I think it’s tough to be a smaller, more rural place. You have to get creative, and our people do that.” “I think the first thing that comes to mind is the word “friendly” when you’re talking about the people who live here,” Livingston noted. “I know it from my own experience, but I hear it all the time from visitors and newcomers. We have truly wonderful folks call Newberry County home.”


TRENDING: AUTOMOTIVE IN S.C. Michelin, like everyone, had to quickly but safely maneuver the challenges posed by the pandemic. Above, a ribbon cutting takes on a new look. (Photo/Michelin)

NAVIGATING THE PANDEMIC DESPITE CORONAVIRUS, AUTOMOTIVE SECTOR REMAINS STRONG By Jim Tatum

D

chain manufacturers experienced disruptions, halted production for five weeks. The company used that time to implement deep cleaning and safety measures, which included disinfecting equipment in all technologies, sanitizing workstations, remodeling layouts to enhance social distancing and completing preventive maintenance on equipment. In addition, new protocols, including temperature self-checks, modified seating for cafeteria and office areas, staggered lunch schedules and expanded cleaning practices, were implemented. In addition, social distancing and face masks were, and continue to be, required. And through it all, Plant Spartanburg, which manufactures two of BMWs most popular vehicles, the X3 and X5, posted a strong year. In fact, while BMW North America produced 2 percent fewer vehicles in fourth quarter 2020 than they did for

the same period in 2019, Plant Spartanburg finished the last six months of 2020 with record numbers. “2020 was a challenging year for everyone, but the team at Plant Spartanburg managed the COVID crisis in a responsible way,” Sky Foster, Department Manager, BMW Corporate Communications said. “As a result of our efforts, Plant Spartanburg produced nearly 218,000 BMWs during the last six months of the year, a record for any sixmonth period in our history.” In fact, Plant Spartanburg produced 361,361 vehicles in 2020, Foster said. An important lesson learned was how the supply chains were impacted by the pandemic. Some, such as logistics provider Senator International, which located to Upstate South Carolina initially to service the automotive industry had, long before COVID-19, planned for a future that

www.scbizmag.com

espite numerous hurdles imposed by COVID-19, South Carolina’s automotive sector seems to have successfully navigated the pandemic. From supply chain disruptions to manufacturing shutdowns, the automotive sector, like everyone, had its share of sudden, sometimes drastic challenges. Yet, companies such as BMW, Volvo, Michelin and others have not only successfully tackled these disruptions but gained valuable insights along the way. Stephanie Mangini, Volvo Car USA LLC Corporate Communications noted that the pandemic taught the company to not only stay even more connected to the supply chain, but to be more vigilant in protecting its employees. BMW’s Plant Spartanburg, like so many others, dealt with a host of challenges. A production shutdown, exacerbated as supply

15


TRENDING: AUTOMOTIVE IN S.C.

included, unlikely as it seemed, major changes to the automotive market. So, while the pandemic did present challenges, Senator International was able to not only survive the pandemic, but thrive, according to COO Ralf Schneider. Meanwhile, BMW, and its suppliers have taken on a “just in case” mentality, one factor that has sparked an increase in warehousing absorption within the GreenvilleSpartanburg market. One example of a supplier making room for greater inventory reserves is MingHua USA, an auto part-manufacturing subsidiary of Chinese Jiangnan Mold Plastic Technology Corp, located in Spartanburg. The company, a tier-one supplier to BMW, recently announced its lease of some 132,000 square feet of speculative warehouse space at the Wood Chapel Crossing facility in Duncan. “Despite the challenges levied by the pandemic, the automotive industry is holding steady and flourishing in the Southeast region,” Thomas Koehler, president of MingHua USA, said in a news release. “As production regains momentum, the increased stream of manufacturing has required MingHua USA to conduct a swift expansion. With Wood Chapel Crossing located right down the street from our headquarters, we jumped on the opportunity to occupy this state-of-the-art warehouse, which checks all of our boxes for kickstarting operations to meet the swell in demand.” As far as the manufacturers go, plans appear to keep the new protocols in place. “For 2021, Plant Spartanburg will continue following the common-sense hygiene rules we established in 2020 such as wearing masks, social distancing and frequent washing of

Lt. Gov. Pam Evette visits Michelin’s Lexington facility in July 2020 (top). A Michelin employee (above) works with mask donations to be shipped out to areas and people who need them.

We are optimistic in our production forecast and expect to produce 1,500 vehicles per day during 2021.”

www.scbizmag.com

“DESPITE THE CHALLENGES LEVIED BY THE PANDEMIC, THE AUTOMOTIVE INDUSTRY IS HOLDING STEADY AND FLOURISHING IN THE SOUTHEAST REGION.”

16

— Thomas Koehler, president of MingHua USA hands,” Foster said. “Our supply chain is currently stable, and the models we produce are extremely popular around the world. For instance, in the United States, the BMW X3 and X5 were the top-selling BMWs in 2020.

“Since the beginning of the global health crisis, Michelin’s No. 1 priority has been the long-term health, safety and well-being of our employees, their families and the surrounding communities,” Alexis Garcin,

chairman and president of Michelin North America, said. “Now more than ever, we believe that everything we do has to be sustainable and meet three inseparable criteria: people, profit and planet.” “Volvo has been managing the challenges brought on by the global pandemic,” Mangini said. “The pandemic has certainly brought unexpected challenges to our business. It has taught us to be more vigilant in protecting our team members through safety protocols, and to stay even more connected with our supply chain. We expect these protocols to continue this year and will continue to manage through any challenges.”


Cities Mean

BUSINESS A P U B L I C AT I O N O F T H E M U N I C I PA L AS S O C I AT I O N O F S O U T H C A R O L I NA

ISSUE 1

|

202 1

Adapting to Change Cities Find Creative Ways to Handle Pandemic


CONTENTS

5 Amplifying the Mask Message

By Megan Sexton

Cover Photo: Greenville city staff wear masks at the TD Saturday Market on Main Street. Photo: City of Greenville - Department of Events and Cultural Affairs.

BUSINESS A publication of Municipal Association of South Carolina 1411 Gervais St., PO Box 12109 Columbia, SC 29211 803.799.9574 mail@masc.sc www.masc.sc @muniassnsc

8 Offering Services Online Helps Cities and Residents

10 E-newsletters Put Information ‘All in One Place’

By Megan Sexton

Todd Glover Executive Director, Municipal Association of SC

12 Finding Socially Distant Workarounds for Arts and Culture

Russell Cox Uptown Editor and Digital Production Manager, Municipal Association of SC Contributing Writers Russell Cox Page Ivey Megan Sexton

Published by

By Page Ivey

FEATURES

Cities Mean

By Page Ivey

DEPARTMENTS 4

Letter From the Director

15 Hometown Snapshot

By Todd Glover

www.scbiznews.com A publication for the Municipal Association of South Carolina

#StrongSCcities | Cities Mean BUSINESS 3


Letter From the

DIRECTOR

The coronavirus pandemic has introduced all of us to new ways of doing things — new ways of conducting business, meeting each other and even celebrating. South Carolina’s city and town governments have demonstrated leadership through many of these adjustments, from managing local mask ordinances to pushing for business relief efforts and keeping public discourse alive at socially distant city council meetings. This issue of Cities Mean Business focuses on the ongoing work of local governments to maintain vital services and minimize disruptions during the pandemic. Todd Glover

Executive Director, Municipal Association of SC

One of the articles takes a look at how cities have met the challenge of communicating with residents and businesses about their ordinances requiring face masks — a precaution which experts tell us has been an impactful tool in the fight against the coronavirus. Another story highlights the creative ways that city governments have found to continue offering the arts and culture opportunities that help make their host communities an attractive place to live. This story examines the rebirth of drive-in movies in Newberry, special events without large crowds in Walhalla and even virtual museum exhibits in Seneca. Long before the pandemic, cities and towns were already expanding digital services such as online permitting and payment systems. A story in this issue shows how these efforts at streamlining transactions are benefiting local businesses and will continue to do so. The final story looks at how city e-newsletters have provided an effective way of communicating with stakeholders in Greenwood, Mauldin and Beaufort. South Carolina’s municipalities have played a critical role in this pandemic, working to keep residents as safe as possible and businesses supported. They have remained resourceful and creative throughout, and their labors will remain important to the state’s recovery efforts.

B. Todd Glover tglover@masc.sc

Executive Director, Municipal Association of SC

4 Cities Mean BUSINESS | #StrongSCcities

A publication for the Municipal Association of South Carolina


FEATURE STORY

AMPLIFYING THE MASK MESSAGE

By Megan Sexton

A

s cities and towns passed face mask ordinances last summer to combat COVID-19, some turned to marketing and communications departments to help spread the

message of the importance of wearing masks to a sometimes skeptical public. Communication campaigns popped up in municipalities statewide — from large banners erected in downtowns to Instagram posts with local businesses and neighbors pledging to wear face coverings. The Florence Forward Pledge program, for example, started after the city adopted an emergency face covering ordinance, requiring face coverings to be worn when people enter a business that is open to the public. The program sought to encourage businesses

A publication for the Municipal Association of South Carolina

Greenville Mayor Knox Wh ite stands with one of the images created for the “M ask Up. Life is Waiting.” campaign. Photo: City of Greenville.

#StrongSCcities | Cities Mean BUSINESS 5


FEATURE STORY … I’ve dreamed of this day my whole life.’ We didn’t want to be heavy-handed. We just wanted people to think about the impacts.” To make the campaign visible, Greenville erected 5-foot-by-7-foot A-frame signs around downtown, along with smaller signs at entrances to local attractions. They also added streetlight banners. “The campaign certainly got a good response on social media,” Brotherton said. “Lots of people took selfies with the posters downtown. It was fun to see how people did really connect with the message. I think the campaign, combined with the ordinance, did exactly what we hoped it would do. It made mask wearing more ‘acceptable’ and less ‘weird.’ ” The face-covering campaigns around

Dr. Wendell James speaks at a Greenville press conference. Photo: City of Greenville.

the state also drove home the importance of municipalities working with other area orga-

to commit to the safety of their employees

director of communications and neighbor-

and the public by following state and federal

hood relations in Greenville.

safety guidelines, said Hannah Davis, development manager for the City of Florence. Each participating business received information to help keep employees and

nizations to broaden a city’s reach. In Hartsville, which also had a mask

The campaign was announced by Mayor

ordinance, the city worked with Darlington

Knox White at one of the city’s media brief-

County, the school district and Carolina

ings with local physicians.

Pines Regional Medical Center on the “Mask

“We chose local, recognizable people — a

Up Darlington County” initiative. The col-

customers safe, and a door decal to remind

mom blogger, a high school football star, a

laboration began while the Darlington

patrons that the business was following CO-

popular restaurant owner — and chose tag-

County School District was discussing back-

VID-19 safety protocols, she said.

lines that we hoped people would connect

to-school plans.

“The 30,000-foot answer [for why the

with. ‘I wear a mask because … we all miss

“All organizations wanted to make one

campaign was important] is that we have

school.’ ‘I wear a mask because … fall isn’t

large — and loud —push to encourage resi-

got to show a united front, especially with

the same without football,’” Brotherton said.

dents to mask up in order for COVID-19

a pandemic that’s been so politicized. It’s

The campaign ran at a time when schools

numbers to decrease, therefore meaning stu-

important that we put out the facts, put out

had not yet decided on their attendance and

dents could return back to the classrooms,”

why it’s important to our community and

athletic plans.

said Lauren Baker, Hartsville’s director of

amplify the message in a consistent way,” Davis said. Some cities, including Florence, modeled

“We also included a small business owner so citizens could recognize that another

tourism and communications. Communications representatives from

closure or stay-at-home order could be dev-

each organization met to create a consistent,

their pledges and campaigns after Greenville,

astating to entrepreneurs who were barely

branded campaign to show they were all on

the first municipality in the state to enact

hanging on to their livelihoods,” Brotherton

the same page. They used the same signs, but

a face covering ordinance. After passage,

said. “We used a bride-to-be because it

changed out the organizations’ logos.

Greenville quickly pushed out its “Mask Up.

seemed like everywhere you looked on social

Life is Waiting.” campaign, which drew on

media people were talking about delaying

own personal reasons for wearing a mask.

locals to explain the importance of masks

weddings, hosting them on Facebook live

These real-life reasons and scenarios allowed

to slow the spread of the virus and allow life

or limiting guests to only immediate fam-

the campaign to hit home for people on dif-

to return to normal, said Beth Brotherton,

ily. The tagline was ‘I wear a mask because

ferent levels. These photos and videos were

6 Cities Mean BUSINESS | #StrongSCcities

“We allowed the individuals to write their

A publication for the Municipal Association of South Carolina


FEATURE STORY

The “Mask Up Darlington County” effort was a partnership between Darlington County, the City of Hartsville, Carolina Pines Regional Medical Center and the Darlington County School District. Photo: City of Hartsville.

then dropped into one template and posted

In the future, we plan to implement this type

to see their grandkids, or people with preex-

across all organizations’ social media pages,”

of opt-in program should the need arise.

isting medical conditions who are at severe

Baker said.

We see it potentially being very useful for

risk of complications or death if exposed, but

documenting calls for service, or hurricane

because we desire the more everyday things

response,” Davis said.

of going to a ballgame, eating at our favorite

According to analyses by the S.C. Department of Health and Environmental Control, cities with mask ordinances saw COVID-19

In Greenville, Brotherton said the success

numbers drop during the campaigns. Look-

of the city’s efforts reminded her that public

ing ahead, cities say they have learned les-

health marketing campaigns must be simple,

sons from the successes and missed oppor-

real, personal and not “boring.”

tunities of the mask wearing campaigns they can build on in the future.

“Numbers and data are important and

restaurant and being able to go to school to see friends,” Brotherton said. Greenville is now taking lessons learned from the public health campaign to launch new campaigns. Brotherton said when her

can certainly help you tell the story, but at

office got an assignment for a tree preser-

the end of the day it’s about showing people

vation campaign, she was told, “‘We were

nications department of one, is the strength

why they should give a darn. Answering

thinking something like the ‘mask up’ cam-

in collaboration,” Baker said. “While I was

the question, ‘Why should I care?’ In this

paign.’ So, I’m thinking you’ll see a lot more

responsible for the scheduling, branding and

case you should care not only because you

photos of real people in relatable situations

posting, it was great to have other organiza-

have elderly parents who have been unable

coming from the City of Greenville.”

“The biggest lesson I learned, as a commu-

tions feeding me a diverse group of content.

•

This allowed the campaign to have a greater impact in the community as a whole, not just in the direct city that we serve.” Davis said Florence was actually a few months behind with implementing its program, and an earlier start may have generated more participation than the 36 businesses that had opted in by early November. “We need to find a more effective and efficient way to get the word out about future participation-oriented programs and convert interested parties to real users of the programs. On the plus side, we found a whole new set of skills within our staff to create these user-generated platforms utilizing GIS.

A Florence Forward Pledge decal

A publication for the Municipal Association of South Carolina

hangs in a business window. Photo: City

of Florence.

#StrongSCcities | Cities Mean BUSINESS 7


FEATURE STORY

OFFERING SERVICES ONLINE HELPS CITIES AND RESIDENTS By Megan Sexton

​M

any cities around the state were offering permitting and payment systems online even before

COVID-19 hit — a move officials and staff were thankful for when the pandemic disrupted life and closed offices last spring. Other municipalities moved quickly to set up procedures to help companies submit building permits or residents pay their water bills without visiting city offices. In North Myrtle Beach, the building permitting system entered the virtual world in September 2019. Builders and property owners go online to submit plans, communicate with city staff members, apply for an inspection, view the inspection results, turn in any necessary forms and print a certificate

Courtnay Heyward of the North Charleston Executive Department attends to residents’ needs using the city’s online Citizen Support Center. Photo: City of North Charleston.

of completion at the end of the process. At one time, the city had not allowed

“As I always tell people, our job is to

Especially in our building, planning, fire

customers to make payments online, “but

make sure our buildings are safe and adhere

inspections and our stormwater inspections

once COVID came, we flipped that switch

to codes because we want them open as

in public works,” Johnson said.

and allowed people to do everything online,”

quickly as possible,” he said. “We want parks

All of the city’s registration and payments

said Suzanne Pritchard, the senior planner

open and sidewalks fixed and potholes filled

for athletics, recreational activities and court

and urban designer with the City of North

and everything else to run smoothly and

costs also are online.

Myrtle Beach.

grow and improve. Especially considering

When North Charleston moved into its

City leaders stress that if customers don’t

we’re facing a shortfall in revenue this year

have access to the internet, paper applica-

new city hall in 2009, the facility became

because of COVID-19, which is not easy by

tions are still accepted. Some municipalities

a one-stop shop for permitting. Residents

any stretch of the imagination.”

have kiosks for payments or internet access

could move from office to office to submit,

He said moving services to a digital

review and pay fees at various departments

platform has helped the staff, residents and

within the same building.

businesses.

“Now we’ve taken our permitting approach

Pritchard said North Myrtle Beach’s decision to move to new permitting software

“It’s convenient because people are able

one step further and made it all virtual,” said

to submit all their plans at one location and

Ryan Johnson, North Charleston’s public rela-

it goes to everyone all at the same time to

tions and economic development coordinator.

be reviewed, so it speeds up the process.

8 Cities Mean BUSINESS | #StrongSCcities

available in city buildings.

began with a general upgrade of the city’s outdated system. “We wanted to bring more accessibility to everyone. We didn’t envision the COVID

A publication for the Municipal Association of South Carolina


FEATURE STORY future during this whole process, where city

Allowing online payments offers a quick-

hall would be closed. We wanted people

er and safer way to provide payment than

to be able to come in and talk, but it was

through the mail system, Denny said.

also important to have that ability [to work

“It was difficult in the beginning as the

with] people who couldn’t get down here,”

system we use requires you to put in the

Pritchard said.

account number along with the service ad-

The reaction at first was mixed.

dress. As residents learned the system, they

Developers and builders accustomed to

commented how it is great to be able to pay

doing large volumes of permits had to

at any time of day or night. It also offers

change their workflow. Once they realized

them to set up an account, with their own

that someone didn’t have to come to city

password, so they can conveniently pay

hall for each permit and wait until the

quickly each month,” she said.

process was complete, they appreciated the

She said adding the ability to process pay-

easier, more efficient process, according to

ments online has reduced in-house payment

Pritchard.

and foot traffic by 40% to 50%, opening up

It also was important for North Myrtle

staff time to work on other projects.

Beach to be able to customize its software to fit its needs, and be able to change the online forms or substitute questions quickly. “We had a lot of staff time learning the

“One of the things I like best with the York City Hall offers a bill payment kiosk in its lobby. Photo: City of York.

online system is that when there is an issue with a payment, I can log in and search quickly to find the payment and explain to

system and being able to create the forms

There are no limits on files, so that’s awe-

the customer why it was rejected. This saves

and use the forms, but we now can make

some,” said Pritchard.

time,” Denny said.

changes on the fly when something happens like we close city hall.”

Cities also offer multiple ways to pay for

As technology improves and options

services like utilities or court fines, including

grow, cities can implement changes that

in-person, online and through night drop

make conducting business more convenient

also allowed North Myrtle Beach to look

boxes. The City of York offers those options

and economical.

strategically at its whole process of issuing

along with a kiosk in the city hall lobby

permits — something Pritchard recom-

where customers can pay bills.

Choosing and customizing its software

mends for other cities looking to transition to online permitting. “Really figure out what you want. If you

“The night drop box has been very convenient for those who work outside the city.

Advice from Johnson in North Charleston for those cities looking at moving more of their services online? “Just do it. Government lags behind pri-

It is a safe, secure, locked safe where they

vate industry, but eventually we get there.

were building the perfect building permit

can drop their payments off,” said Barbara

We started streaming city council meetings

process, what would that be? What are the

Denny, York’s finance director. “Offering

in 2011. Now everybody is doing it. By us-

important parts that were being missed?

to accept their payments over the phone is

ing the technology that’s out there, we make

How can we better coordinate with depart-

something we added with the closing of our

things more open and transparent,” he

ments like public works and finance?”

lobby due to COVID.”

said.

The North Myrtle Beach system is not limited to file uploads and it works for more than building permits. For example, the city realized it could use the same system to develop a plat review process, so residents and developers can submit plats online to the planning department for review. “Because it’s a citywide license, we can use it for any form that needs to be reviewed. A publication for the Municipal Association of South Carolina

•

North Myrtle Beach allows builders and property owners to handle necessary paperwork online through its building permitting system. Photo: City of North Myrtle Beach.

#StrongSCcities | Cities Mean BUSINESS 9


FEATURE STORY

E-NEWSLETTERS Put Information ‘All in One Place’ By Page Ivey

C

ities and towns have many ways to

Sometimes Hudson will send out in-

communicate with residents: direct

formation between editions of Uptown

mail, websites and social media.

Lowdown if something important comes up

E-newsletters also provide a low-cost way for

or the details of an event change.

cities to reach out and help residents know

“We spend most of our time on our web-

what’s going on.

site. That’s where we’re putting all of our in-

Often powered by email marketing plat-

formation and that makes putting the news-

forms like Constant Contact or Mailchimp,

letter together easier,” Hudson said. “Our

e-newsletters give subscribers the big munic-

Facebook page definitely gets more engage-

ipal headlines before sending them to a city

ment if we link to it from our newsletter.”

website or other digital locations for more

Hudson said that information has be-

information. In many cases, newsletters

subscribers, focuses on upcoming events, es-

come even more critical during the corona-

started small, but some cities are now using

pecially Greenwood’s two major annual cele-

virus pandemic.

them as robust ways to engage residents and

brations, the Festival of Flowers and the Fes-

help foster a more vibrant community.

tival of Discovery. It also contains write-ups

in Uptown for families, especially now with

on news and events and encourages readers

everything going on,” Hudson said. “I think

to learn more from the Uptown Greenwood

residents are appreciative of the communica-

website or a social media channel.

tion we give them because they’re hungry for

Uptown Greenwood Uptown Greenwood, the city’s central business district organization, provides a

“There’s always things going on here,”

“The splash pad is a very popular activity

something to do right now.”

digital newsletter called Uptown Lowdown.

said Uptown Greenwood Manager Lara

Uptown Greenwood works with the city on

Hudson. “Whether it’s maintenance or if

in, meaning they must request specifically to

the product, which includes information on

there’s a private event, just information that

receive the emails. Finding new subscribers

the Uptown farmers market and splash pad.

the community would need to know about

has not been easy this year, with many of the

The monthly newsletter, which has been

accessing the farmers market and when they

events that ordinarily make people want to

produced for about four years and has 8,000

can come to the splash pad.”

sign up for the newsletter not happening.

10 Cities Mean BUSINESS | #StrongSCcities

Subscribers to the newsletter have to opt

A publication for the Municipal Association of South Carolina


FEATURE STORY The city, with the help of its technology

honest newsletter. It had information, it had

became the city’s first dedicated communica-

team, is trying something a little different.

factual reports, it had demographics infor-

tions person in December 2019.

“You used to just click on the [free Up-

mation, it had stories about the community.

town] WiFi and were automatically connect-

She just took it to another level. It could be

letter is to consolidate city information in one

ed. Now you have to put in an email address,

its own newspaper for the city.”

place that people may have missed on social

accept terms and then you have the option to receive our newsletter,” Hudson said.

The Mauldin Report, covering everything from public works to cultural affairs, is

media posts or as news releases on the website. “I do think newsletters can be effective in

mailed, distributed in city offices and posted

terms of putting it all in one place in a way

on the city’s website. It is also promoted in a

that social media, which tends to be a little

monthly e-blast and on social media.

more scattered, can’t really offer,” Williams

“Every department has something going

says. “It reinforces news that’s come out in

on,” said Heider. “It’s basically how do resi-

the past month that is still timely and alerts

dents engage with their city and know what’s

people to anything upcoming.

happening in their city from council meetings to when you just want something to do.”

Mauldin

Williams said the biggest asset of the news-

“For the pandemic, it’s been an incredibly important tool for sharing information.”

For the Cultural Center, the team prints

Williams has included information on

an annual season preview, including shows,

city office closings, how the public can do

festival and educational opportunities, that

business with the city when offices are closed

is mailed to 25,000 homes in Mauldin. Indi-

and information on the pandemic from

vidual events are promoted in weekly emails

the Centers for Disease Control and the

to subscribers.

South Carolina Department of Health and

The city’s eblast goes to more than 2,600

Environmental Control. She even included

The City of Mauldin’s community de-

subscribers while the Cultural Center has

a feature on how to make a mask as she

velopment department handles everything

more than 4,200 subscribers. Heider said

was letting residents know about the city

from business recruitment and long-term

there is also a mailing list of folks who want

ordinance requiring them to wear one.

infrastructure planning to the Mauldin Cul-

to know about volunteer opportunities, and

tural Center. When Van Broad, director of

the city’s recreation department plans to

great example, she said, of how information

community development, started, the city

start an e-blast very soon.

flows from the city. First, Williams posted

didn’t have direct marketing communication

“Residents can easily access information

The city’s mask ordinance provided a

a news release to the city’s website with

with its residents and relied on an outside

they do want but are not bombarded with

information about the ordinance. She

firm to provide the occasional news release.

information they don’t want,” Heider said.

produced several social media posts

“If you think about it, somebody is going

As the effort has grown, so has the team’s

announcing the ordinance and linking to

to tell your story,” Broad said. “Either you

staffing, which includes marketing and de-

the website. In the next monthly newsletter,

can tell it or let someone else tell it.”

sign coordinator Jeannie Harmon.

she reminded residents of the ordinance

Part of the funding for the community

and thanked them for following it. The

development office’s marketing efforts comes

newsletter was sent to her 3,500 subscribers

from accommodations taxes, and helps

and it was posted on both the website and

cover the cost of material Broad’s team mails,

social media.

and for the staff that produces and promotes

Williams recommends that any town

the information digitally.

looking to start or improve an existing news-

Broad described the earliest newsletters from 2016 as “very generic.” “Then [Cultural Affairs Manager] Keira [Heider] came on board, and she created an incredible template and really made an

letter should look for a staffer who can be

Beaufort The City of Beaufort’s e-newsletter is the responsibility of Kathleen Williams, who

A publication for the Municipal Association of South Carolina

dedicated to creating the newsletter, even if that’s not their whole job. She also suggests hiring someone with a news or marketing

•

background.

#StrongSCcities | Cities Mean BUSINESS 11


FEATURE STORY

Finding Socially Distant Workarounds for Arts and Culture By Page Ivey

cities and towns were gearing up for

T

free outdoor movies transitioned into a

attendees — a little less than the event’s usual

spring festivals and summer arts and

cultural throwback, as the city created a pop-

crowds when people brought chairs and

cultural events. Event restrictions meant that

up drive-in theater experience. The city set

blankets to sit together under the stars.

many programs and events aimed at giving

up a 40-foot blowup screen in a city parking

families local entertainment or education

lot and used an FM transmitter to allow

so much from their heyday that most

options were in danger.

attendees to listen to the film using their car

attendees had never been to one, leading to

stereos rather than over loudspeakers.

unfamiliarity with the process. Kopp and her

he coronavirus pandemic hit just as

In South Carolina, the cancellations have

In Newberry, the summer tradition of

four people per car, that would total 200

Drive-in movie theaters have faded

led to some creative workarounds, creating

Mary Alex Kopp, Newberry’s tourism

new ways to celebrate culture and commu-

and events manager, said the drive-in setup

rules and etiquette, while also explaining

nity and offer family-friendly activities.

accommodates about 50 cars. Assuming

why people couldn’t bring their golf carts

12 Cities Mean BUSINESS | #StrongSCcities

team made a short video explaining drive-in

A publication for the Municipal Association of South Carolina


FEATURE STORY — state law prohibits driving golf carts on

in the same sense that we always do, but it’s

roads after dark. They also explained why

nice to try to give them something.”

pandemic restrictions meant that families needed to stay in their cars. In the fall, Oktoberfest serves as one of

The City of Walhalla did not host its annual Oktoberfest this year, but it has worked to give residents and visitors some

the most important events on Newberry’s

ongoing arts and culture opportunities.

cultural calendar. The city’s largest outdoor

During the pandemic, Walhalla’s small size

festival features arts and food vendors to

has worked to its advantage, said Libby

help celebrate the town’s German heritage.

Imbody, director of Main Street Walhalla.

Rather than cancel it, the city decided to move the entire event online. The virtual festival ran for two weeks and

“If we have an event and the maximum size we can have is 250 people — that’s a good-sized event for us,” Imbody said.

included about 30 artisans and craftspeople

Instead of larger outdoor events with

selling their goods in a virtual vendor fair.

vendors and activities all packed together on

Restaurants offered takeout “taste of Okto-

Walhalla’s traditional Main Street, Imbody

berfest” menus and recipes for traditional

helped create several smaller events with

German dishes that could be made at home.

venues spread farther apart.

The event also featured lots of at-home activities for kids as well as contests with prizes. “There is an authenticity to the

“Being able to host smaller events to get a couple of vendors out there helps that community that has really had their

celebration because of the heritage of the

livelihood taken away by COVID,” Imbody

area,” Kopp said. “Many people treat it like a

said.

homecoming when they come back to visit family and friends. It’s sad that we can’t do it

“These artists, these makers, are also local small businesses. We need to help out that

Libby Imbody distributes activity kits for the “Summer Nights on Short Street.” Photo: City of Walhalla.

The City of Newberry transitioned its free outdoor movie series into a drive-in theater in a parking lot. Photo: City of Newberry.

A publication for the Municipal Association of South Carolina

#StrongSCcities | Cities Mean BUSINESS 13


FEATURE STORY maker community that has lost a ton of work

Imbody said. “Our merchants have been

moving parts are operating,” he said. “Trust

because there are no events.”

happy with it. They say, ‘Let’s do it every

me, we would love to have more moving

weekend.’ ”

parts, but in some ways, it has its advantages,

One event, the “Dog Days of Summer,” focused on bakers and craftspeople who make things for pets. “People came with their dogs throughout

and this is one of those ways. We can say,

For one city, the response to the pandemic’s effect on arts and culture was

‘Our new focus is this, how do we make it

something they could accommodate all

happen?’ ”

the day,” Imbody said. “It was not a huge

along with a virtual museum. Now, the

crowd, but it just kind of keeps it going and

alternative to museum visits they created has

exhibits hosted on the museums’ own

keeps Walhalla on people’s minds.”

actually increased their “visitors.”

websites, found at www.blscm.org and www.

The town waived its vendor fee at its

The Bertha Lee Strickland Cultural

The result is a collection of virtual

lunneymuseum.org.

farmers market and extended the dates

Museum and the Lunney Museum in Seneca

through September.

tell the stories of the African American

a socially distant option can create new

Walhalla also turned its kid-centric

experience as well as the story of one of the

opportunities, even during the pandemic,

“Summer Nights on Short Street,” which

town’s prominent white families in the late

since they have drawn more visitors than the

usually takes place inside museums, into

19 and early 20 centuries — the Lunneys.

museums themselves drew when they were

take-home activity kits that parents could

th

th

The directors of the two museums, Shelby

These virtual exhibits have shown how

open. More importantly for Henderson, the

pick up and use at home with their children.

Henderson and Nick McKinney, work

exhibits are getting visitors who are coming

Families signed up on Facebook for the

together to create exhibits that tell these

back multiple times.

event then drove by and picked up the

stories. When the pandemic hit, they worked

activity kits in advance of the weekend.

quickly to put their limited resources into

clicking on it a second time, a third time,”

exhibits online.

said Henderson, who helped the Bertha Lee

“Parents could come by and get their stuff, like coloring sheets, different activities,

“One of the advantages or disadvantages

“A huge parameter for me was people

Strickland museum get started four years ago.

recipes, instructions for games, YouTube

of a small museum is that because you have

“We are close to triple what our visitation

and Spotify playlists for each event,” Imbody

limited staff, it’s a lot easier to pivot,” said

would be in person if we had been open.”

said. “It was a crash-course, last-minute

McKinney, who added that his role is to

thing, but we had great sponsors for that.”

help convert Henderson’s vision into reality

and towns have been able to host in-person

— even when it’s virtual.

gatherings. Even so, creative changes made

The smaller, more frequent events have been a hit with residents and local businesses. “We want to take this idea of these smaller events and carry it on post-COVID,”

The pandemic has limited the way cities

“When you’re a larger institution, it takes

by local leaders have allowed for new ways

longer to turn and try to get something new

to involve residents and businesses in their

out because so many people and different

communities.

•

The Bertha Lee Strickland Cultural Museum offers virtual versions of its exhibits online. Photos: City of Seneca.

14 Cities Mean BUSINESS | #StrongSCcities

A publication for the Municipal Association of South Carolina


HOM ETOWN

SNAPSHOT

won a Community Challenge In 2017, the City of Camden Communities initiative that grant from the AARP Livable poorly lit alleyway into enabled it to transform a long, ting, seating and planters. an inviting space featuring ligh es as a connection point for The alleyway, which also serv e then been the site of public Camden’s Town Green, has sinc nts. art projects and even dance eve

Photo: City of Camden.


You see a ballpark…

We see an investment in hometown quality of life that offers a special place to host national tournaments and welcome visitors. This is the same special place where kids of all ages can enjoy sports and outdoor activities with neighbors and friends.


By Molly Hulsey mhulsey@scbiznews.com

TRENDING: AUTOMOTIVE IN S.C.

CU-ICAR, SCHAEFFLER BUILD FIRST AUTONOMOUS INDYCAR

The Dallera IL-15 prototype, modified by Schaeffler, CU-ICAR’s Deep Orange team and other sponsors of the event, was unveiled on Jan. 12. (Photo/Clemson Univ.)

F

Valvoline. “Self-driving cars are the next grand challenge in automotive technology, but we’re still a ways away from an autonomous vehicle that can drive anywhere and everywhere,” Mitchell said during the press conference. “We knew that there was a major leap that had to be taken. What better way to do that than a highspeed race at the most famous racetrack in the world?” For Schaeffler North America, based in Fort Mill, the leap meant taking their “Space Drive” drive-by-wire steering system from vehicles built for disabled drivers to no one with no driver at all, according to engineering director Noel Marshall. “That’s kind of the arms and legs if you will of these vehicles,” she said. “These sensors and software on top that tell the cars where to go – that’s like the eyes and ears of it. We’re taking in all of this information and then translating it into steering wheel angle, as well as throttle, as well as break.” According to Marshall, the race had no who, what, when or hows attached in 2019, the year she first learned about the event through her connections with the Indiana Economic Development Corp. and the IndyCar racing community. Just a where and why. “Do you have a sponsor for the drive-bywire?” Marshall asked the Energy Systems Network team at the time. “Because that’s what we do and that’s what you’re going to need.”

“I guess the rest is history,” she told SC Biz News, grateful that she had been in the right place and the right time. Schaeffler and other sponsors have collaborated with Clemson University, which is creating the first prototype. Once tested, the model will be replicated for all teams, which will then develop and program the software used to direct the vehicles. Schaeffler researchers hope that installing the system in each of the IAC vehicles will help pave the road for its future use in driverless vehicles on roads where speed limits peak 65 mph. CU-ICAR also hopes the project will spark interest and expertise in the field’s future workforce as the 40 graduate engineering students on its Deep Orange 12 team stich together the skeleton of the car. Students designed the protoype’s powertrain and its eyes and ears — a suite of liadars, radars, cameras and GPS systems that communicate with computers in the driver’s seat. “The extreme engineering behind motorsports has often been used as a testbed to push the boundaries of consumer vehicle technology,” Robert Prucka, Deep Orange 12 faculty lead, said in the news release. “This is an incredible opportunity for students to not only work with advanced racing technologies but have a hand in driving solutions for one of the most pressing engineering challenges facing the mobility industry today.”

www.scbizmag.com

or the first time in 10 decades, no spectators flocked to the world’s largest single-day sporting event last August, the Indianapolis 500. This fall at the Indianapolis Motor Speedway, no drivers will be behind the wheel. In fact, there will be no steering wheel at all — at least for the Dallara IL-15 racecars upfit by CU-ICAR and Schaeffler for 30 teams bound to give their programming prowess wings during the inaugural Indy Autonomous Challenge this October. After two years of preparation, more than 500 students and mentors from Argentina to West Point Military Academy will push 200 mph from their desk chair in hopes of taking home the $1 million grand prize, according to Paul Mitchell, co-organizer of the IAC and CEO of the Energy Systems Network. “The Dallara-built IAC racecar is the most advanced, fastest autonomous vehicle ever developed,” Mitchell said in an announcement from the event’s January press conference. “Our IAC sponsors are providing radar, lidar, optical cameras and advanced computers, bringing the value of each vehicle to $1 million.” Logos bedecking the sleek black racer gifted to each team pay homage to these collaborators: Indiana Economic Development Corp., ADLINK, Ansys, Aptiv, AutonomouStuff, Bridgestone, CU-ICAR, Dallara, Microsoft, New Eagle, PWR, RTI, Schaeffler, and

17


TRENDING: AUTOMOTIVE IN S.C. With Bosch’s push for data-driven analysis, the Charleston plant has hired four data scientists and engineers with plans to train its existing workforce in the discipline. (Photo/Bosch)

S.C. AUTO INDUSTRY SUPPLEMENTS WORKFORCE WITH AI TECH By Molly Hulsey

www.scbizmag.com

T 18

here is only so much “kaizen” — the Japanese term for continuous improvement — that can take place without implementing Manufacturing 4.0 technologies, according to Antonio Vaz, director of production engineering at JTEKT North America. “Our main focus has been on eliminating a lot of the waste,” Vaz said last year at the S.C. Manufacturing Conference. Automation isn’t used to replace the human workforce on the factory floor but to make the most of human skills machines can’t emulate, he said. “It’s not about technology, it’s about people,” he said. “It’s about process — then it’s about technology. If we don’t address these three, it’s not going to be successful.” One of the most advantageous Manufacturing 4.0 practices for JTEKT has

been the use of automatic guided vehicles to transport materials around plants. At first, these autonomous vehicles could only move in straight lines. Now, a GPS-guided AGV can maneuver an entire facility on its own.

employ intelligent technologies for visual product inspection. “For us, it’s really about connectivity,” echoed John Penton, connectivity architect and digital transformation leader at Bosch’s

“IT’S NOT ABOUT TECHNOLOGY, IT’S ABOUT PEOPLE. IT’S ABOUT PROCESS — THEN IT’S ABOUT TECHNOLOGY.” — Antonio Vaz, JTEKT North America on the company’s implementation of advanced technology practices AGVs also aid Volvo and auto supplier Robert Bosch in redirecting “manpower away from processes that pose safety or ergonomic risks,” according to Kevin Graham, director of plant engineering at the Lowcountry’s Volvo plant. Both Lowcountry facilities also

Charleston plant. Over the past few years, the plant has been working to hardwire equipment on the plant floor into its Manufacturing Execution System, which stores historical data from the production line, and to analyze that data.


We invite other health science companies, like the Ritedose Corporation, to locate to our 100-acre industrial park, where innovation, workforce, and technology intersect.

77

Autonomous vehicle research pioneered by Bosch engineers in Germany, such as the development of a camera that uses neural networks to categorize each pixel of an image, could eventually be used to upgrade automatic vehicles on the plant floor. (Rendering/Bosch)

Reach Molly Hulsey at 864-720-1223.

26 20

MIDLANDSTECH.EDU/enterprise Chuck Whipple, SCCED, EcDMP 803.691.3954 | whipplec@midlandstech.edu

www.scbizmag.com

In the past, it took a “considerable amount of time” for engineers to go to each individual machine to download that data, often leaving little time for analysis, especially of the predictive kind. “Now, having that data at their fingertips allows them to shift their focus directly on trying to tackle the problem as opposed to gathering the data to work on a problem,” he said. The company has hired four data scientists and data engineers and seeks to instill the Manufacturing 4.0 mindset into the existing workforce. Bosch’s headquarters offers intensive six-month courses in data science and data engineering, and the Charleston plant is prepared to mine the program’s graduates for specialists. “We are currently looking at how we can leverage that in Charleston,” Penton said. “There’s a lot of interest here for our plant as well to be engaged in those programs.” Bosch is also targeting current engineers on the floor as the new vanguard of data-driven experts, while leveraging the installation of new tech with people-oriented projects. “It’s important when you’re rolling out technology like that, that you explain what you’re trying to do, what is the purpose, what is the benefit and not necessarily just rolling it out and putting the technology out there without people being involved on the front end,” he said.

TRENDING: AUTOMOTIVE IN S.C.

Bio-Medical Opportunities Here

19


TRENDING: AUTOMOTIVE IN S.C. The Oak Ridge National Laboratory’s Battery Manufacturing Facility can be used by any battery manufacturer, equipment manufacturer or material supplier to integrate any component into a complete battery, test the product and analyze the results. (Photo/Provided)

OAK RIDGE LITHIUM ION TECHNOLOGY WARMLY RECEIVED IN S.C. By Molly Hulsey

www.scbizmag.com

L 20

ast autumn ushered in a season of battery-fire scares for the electric car industry. BMW, Volvo, Hyundai, GM and Ford are a few of the companies that announced a recall on their electricpowered cars in 2020. For BMW, the recall expanded to 4,509 U.S. vehicles, according to Green Car Report, including the 2020-2021 BMW 530e model, 2020-201 xDrive30e, 2020-2021 Mini Cooper Countryman All4 Se, 2020 BMW i8, 2021 BMW 330e, 2021 BMW 745Le xDrive

and 2021 BMW XDrive45e. “And so each one of those is a multibillion dollar event,” Brian Morin, CEO and founder of Greenville’s Soteria Battery Innovation Group, said in October. “They wouldn’t do it if it wasn’t important. And so, you know, the challenge is this. Right now, 1% of the cars being sold are electric. We’re already having recalls. How are we going to get to 50% unless we fix this?” Morin thinks that he and the Oak Ridge National Laboratory may have an answer. Last year, the Department of Energy

selected Soteria to sign an exclusive license to make the technology available to the organization’s consortium members. Their challenge is to research and develop a technology spawned at the Oak Ridge lab through a $750,000 Technology Commercialization Fund Project called “Lion Batteries with Safer Current Collectors.” One of 77 projects funded by $24 million from the Department of Energy, the initiative also received matching funding from the private sector, according to the federal announcement.


TRENDING: AUTOMOTIVE IN S.C. In Oak Ridge’s solar and natural gas-powered building initiative, power can flow in either direction between the vehicle and building through a lab-developed wireless technology. (Rendering/Provided)

In most electric car fires, Morin explains, the battery catches fire due to “thermal runaway,” or an uncontrolled spike in temperature, when the battery is crushed or damaged, such as during an accident. The Oak Ridge-developed technology instead allows the battery’s electrodes and foils to shatter into a “pre-defined geometry” — or, in other words, “breaks the damaged part

products, but both Oak Ridge and Soteria are eying the electric car industry as one of the innovation’s most important markets, especially as it is set to grow by more than 2,000 gigawatt hours — or more than $200 billion in battery consumption — by 2030, according to the release. Oak Ridge selected Soteria since the technology “dovetails nicely” with the

“RIGHT NOW, 1% OF THE CARS BEING SOLD ARE ELECTRIC. WE’RE ALREADY HAVING RECALLS. HOW ARE WE GOING TO GET TO 50% UNLESS WE FIX THIS?” — Brian Morin, Soteria Battery CEO, on recalls of electric car batteries organization’s existing licenses, according to Maddy Cox, North American Consortium manager at Soteria. A representative from Oak Ridge met Morin at a conference several years ago and was intrigued by Soteria’s use of a metalized film — like the material used in a potato chip bag or party balloon — as a current collector instead of the usual copper or aluminum foil. Like the Oak Ridge technology, the film stymies intense currents in a damaged or

Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.

www.scbizmag.com

into a million little small batteries,” which are unable to burst into flame. “This technology can dramatically improve battery safety upon mechanical, thermal and electrical damage,” Jianlin Li, a principal investigator of the technology at Oak Ridge Laboratory, said in a news release. “This can simplify battery design and lead to higher energy density and lower cost.” The technology could be used to squelch combustibility in a number of lithium ion

short-circuited battery that would set it alight, said Morin, as he played a video of a battery-powered drone in flight even after an electric drill bored a sizable hole in the heart of the battery. Soteria hosts a consortium that enables members including NASA, Teijin, Bosch, Mercedes-Benz, Motorola Solutions and Dupont, among many others, to develop, manufacture and sell lithium battery technologies based off the licenses the organization holds. Once the option is finalized, a license to manufacture the technology will become available to the entire auto and lithium ion battery industry through the consortium. “We’re collaborating to have some of the technology applied to some batteries now, so phase two is getting some tangible evidence of the performance of the two technologies in the cell,” Cox told SC Biz News in January. Most of the testing will go through the Oak Ridge Laboratory in the months ahead.

21


TRENDING: AUTOMOTIVE IN S.C. BMW’s plant Spartanburg installs a lithium-ion battery module in a BMW X5 xDrive45e. (Photo/BMW)

BMW’S PLANT SPARTANBURG SEES HIGHEST HYBRID SALES YET By Molly Hulsey mhulsey@scbiznews.com

www.scbizmag.com

I 22

n the race toward electrification, BMW Manufacturing and its suppliers are revving up for the long haul. Especially after 2020’s surprising windfall. Despite a five-week shutdown last spring, the company produced more plug-in hybrid variants of the BMW X3 xDrive30e and X5Drive45e than any year prior following the plant’s 2019 battery assembly hall expansion, a plant spokesperson told SC Biz News in February. “About two years ago, we added automated battery installation equipment in both of our assembly halls in anticipation of the

growing popularity of plug-in hybrid electric vehicles,” Sky Foster, department manager of BMW Corporate Communications, said in an email. “The BMW X3 and X5 are the plant’s two most popular models, so it makes sense that the plug-in hybrid versions of those two models would be well received. We also doubled capacity in Plant Spartanburg’s battery assembly hall in 2019 when production of the new BMW X3 plug-in hybrid joined production of the new BMW X5’s plug-in hybrid.” The total 22,964 X3 and 24,248 X5 madeto-order hybrids added up to 13% of the plant’s total production last year, according to

a news release. About 90,000 plug-in hybrids have rolled out of Plant Spartanburg since the launch of the electric line in 2014 with the X3 becoming the first BMW vehicle to offer diesel, petrol, plug-in hybrid and pure electric drive train elements last year. The fully electric BMW iX3, launched in China last October, and BMW i4, set to debut in Munich this year, are the next lines ramping up on the global stage. According to a 2019 corporate announcement, i3 production, launched eight years ago in Germany, will also extend until 2024, fueling the company’s electrification goal. According to Foster, the BMW Group


TRENDING: AUTOMOTIVE IN S.C.

aims for a 50% increase of electric car sales, including hybrid models in 2021, following the lines’ popularity in 2020. “The continued expansion of the BMW Group’s electrified model range will include 25 electrified vehicles by 2023,” she said. “More than half of the 25 models will be fully electric.” The company expects up to 25% of all global sales to go electric by 2024. “The BMW Group continues advancing its model offensive of electrified vehicles,” she said in an email. “Electromobility is becoming a key driver of sustainable growth for the company.” BMW is far from the only Palmetto State auto company charged with the electrification hype. In step with Volvo’s plan for electric vehicles to make up half the company’s global

“THE CONTINUED EXPANSION OF THE BMW GROUP’S ELECTRIFIED MODEL RANGE WILL INCLUDE 25 ELECTRIFIED VEHICLES BY 2023. MORE THAN HALF OF THE 25 MODELS WILL BE FULLY ELECTRIC.” — BMW spokesperson Sky Foster

Impacted by COVID-19? Our network of 50 highly-trained consultants across South Carolina offer no-fee individual, confidential business consulting. We can help your small business develop new products, adopt new technologies, improve manufacturing processes, retain current customers, increase profitability and expand into new markets. We also offer: loan assistance export assistance strategic planning certification assistance government contracting marketing/social media strategies

www.scbizmag.com

sales by 2025, every line launched after 2019 contains an electric motor. Charleston’s plant produces both the gasoline-powered and hybrid S60 sedan, the first U.S.-made Volvo line and the first sold without a diesel engine. The XC90 SUV, originally launched in 2014, is slated for S.C. production next year and also comes in a hybrid model. Stephanie Mangini, spokesperson for Volvo’s Charleston plant, couldn’t comment on the company’s future plans, but added that both versions of the S60 sedan currently run on the same two production lines. Volvo USA sold 1,241 S60 models from Jan. 2020 to Jan. 2021, a 72.1% increase from the 721 produced during 2019, according to sales data.

23


TRENDING: AUTOMOTIVE IN S.C. Anderson’s Roylco facility ships out stuffed animals alongside insulation cut in-house that is used in BMW door panels. (Photo/Molly Hulsey)

ROYLCO JUGGLES TOYS WITH TOYOTAS DURING PANDEMIC By Molly Hulsey mhulsey@scbiznews.com

www.scbizmag.com

I 24

t’s not often that foam discs used to tip missiles in transit for the U.S. military lie on the same shelf as die-cut butterflies. But it is just par for the course at Anderson’s Roylco facility. Roylco products can be found in toy and educational stores from South Carolina to South America, but what may surprise neighbors in Anderson County is that the same die-cut machines used to shear foam stars and flowers are also used to shape the soundproofing insulation and seat cushions in Toyotas, Hondas, BMWs and Nissans — just to name a few. Still, during the COVID-19 pandemic, it’s the facility’s educational arm that has been pulling most of the weight as droves of

parents turn to homeschooling opportunities or supplements for virtual learning. When Roylco’s CEO and “creative fiend” Carolyn Voisin moved the toy manufacturer from Buffalo, N.Y., 25 years ago, she knew she wanted to be in a more business-friendly state. An added bonus: Anderson was a hopskip-and-jump away from BMW North America and its suppliers in Greenville. “We always did our custom manufacturing and continue to do custom manufacturing, and really have found a niche in automotive because of opportunity,” Kathy Little, project manager with Roylco Industrial and Roylco Educational, said as she placed a diecut paper turtle next to a piece of insulation used in a G07 BMW X7 door panel. “It’s a

similar manufacturing process … it’s the shape that makes the difference.” Now, the automotive and custom manufacturing business makes up about 30% of Roylco’s die-cutting, printing and injection-molding production at the Anderson facility and 60% at its Canadian facility, Little said. The company was recently included in a fee-in-lieu of tax agreement between Anderson County and BMW Manufacturing for the benefit of BMW suppliers. In the same room on the factory floor, bolts of magenta and lime green felts are stacked a few feet from a spool of the utilitarian blue fabric used to cushion vehicles. Alphabet letters on sprues, still warm to the touch,


for

TRENDING: AUTOMOTIVE IN S.C.

We’re Open Work

Clarendon County, SC

virtual meetings

by phone & email

Project manager Kathy Little sifts through the dyed rice used for crafts in classrooms and playrooms across the country. (Photos/Molly Hulsey) Roylco Industrial also produces bands used in caps by various branches of the U.S. military.

York, one of the largest industry trade events in the world. The cocoa-colored stuffed pup is weighted to feel like a real dog and can be either heated or cooled to soothe anxiety in children or patients with Alzheimer’s. “That has received several national awards for quality and for parents’ choice,” she said. Roylco also began to ride the wave of booming demand for educational resources for students who were still learning from living their livings rooms. Since the pandemic, they have launched several new products including Toddler Art Sensory and STEM-skill enhancing building kits and added a second shift. “It’s been like drinking out of a firehose,” according to Little.

on the web

social media

www.scbizmag.com

fall into a basket beside the belly of a plasticmolding machine near a board spotlighting the kitted shapes used to pad vehicle doors, all bearing whimsical nicknames like “the banana,” “the baby bird” and “the eye.” The company competes on par with offshore prices, Little said, as indicated by a recent contract for a Greenville Tier 1 auto supplier that Roylco Industrial seized from a Mexican die-cutter. The company has long tag-teamed with its existing Canadian facility to balance its industrial and educational product lines, but when auto sales dropped off last year, educational toy sales shot through the roof, Little said. Roylco had already made headlines in February with its Theo the Therapy Dog production line, premiered at Toy Fair New

25


S.C. DELIVERS

Ports, Logistics & Distribution

Crew members of the CMA CGM Brazil throw down lines to dockworkers at the Wando Welch Terminal in September to secure the ship as it steamed into port. (Photo/Kim McManus)

TROUBLED WATERS

PORTS AUTHORITY FILES COMPLAINT WITH NLRB AGAINST UNION By Teri Errico Griffis tgriffis@scbiznews.com

www.scbizmag.com

O 26

n Jan. 7, the S.C. Ports Authority and Attorney General Alan Wilson filed a complaint accusing longshoremen and a maritime alliance of illegally strong-arming ocean carriers to stop doing business in Charleston. A similar case was filed in 2012 by ICTSI Oregon Inc., in Portland, Ore., and the resulting legal battle laid waste to the port’s container business, which only resumed a year ago, and nearly sent the union into bankruptcy. Despite ICTSI being awarded a $93 million verdict, which was reduced to $19 million in 2020, the company still had to shutter Portland’s only container terminal in the meantime. The union now has to decide if it will pay the fee or file bankruptcy. Someone closely connected to that case said that union workers lost jobs and the business community has been devastated with increased costs and fewer service providers. In South Carolina’s labor dispute, Wilson and the SCPA filed their charge with the National Labor Relations


reach new heights CLEANER, quicker, and safer than ever before AICHI’s Aerial Work Platforms utilize industry-exclusive AC motors that help to reduce your overall maintenance costs and improve uptime. Each Aerial Work Platform comes equipped with a digital monitor with onboard tuning for quick diagnosis and access to performance parameters. Ergonomic platform extensions allow the operator to easily extend his or her reach for greater accessibility and adaptability.

AC DRIVE MOTOR ANTI-ROLL BACK NO DIAPER NEEDED 0° INSIDE TURNING RADIUS PLATFORM EXTENSION TILT ALARM & MORE

Contact Southeast Industrial Equipment today for exclusive lease and purchase options on brand new Aichi Scissor Lifts and Vertical Mast Lifts.

(866) 696-9125 | www.sielift.com | contacts@sielift.com NEW & USED EQUIPMENT | RENTALS | SERVICE | PARTS | WAREHOUSE SOLUTIONS | LOADING DOCK EQUIPMENT


S.C. DELIVERS South Carolina and the S.C. Ports Authority have filed a grievance related to employment at the Hugh Leatherman Sr. terminal under construction in North Charleston. The grievance involves disagreement with longshoremen’s union agencies over how jobs there should be filled. (Photo/SCPA)

Board, alleging violation of the National Labor Relations Act by the International Longshoremen’s Association, its local 1422, and the U.S. Maritime Alliance. The focus of the charge is a master contract clause, Article VII, added in 2013 and agreed upon by ILA and USMX. It states for any new ports built in the U.S., 100% of those jobs would be union jobs. The clause was signed into effect with-

expected to open in March. While the Leatherman Terminal is under construction right now, SCPA President and CEO Jim Newsome said it should not be considered a new port, but rather an extension of the existing one. He also believes the contract clause shouldn’t apply to the HLT because it was permitted in 2003. “This is not a contemplated terminal. This terminal was real, well before that

“THE UNION IS EXPECTED TO FOLLOW THE RULE OF LAW LIKE EVERYONE ELSE. ... THOSE LAWS DO NOT PERMIT THE UNION TO TAKE OVER JOBS FROM STATE EMPLOYEES.” www.scbizmag.com

— S.C. Attorney General Alan Wilson

28

out involvement from the SCPA, Wilson said, and threatens the jobs of hundreds of state workers if the NLRB allows it to be implemented. The conflict comes from how each side is interpreting the clause in relation to the Hugh K. Leatherman Sr. Terminal in North Charleston, which is

clause came into effect,” Newsome said. Few want to talk about the complaint in South Carolina. Both the NLRB and the ILA will not comment on the case, and the U.S. Maritime Alliance and their legal counsel did not return repeated attempts for

a comment. SCBIZ also asked other state agencies, economic development organizations and university experts to speak into this case, but no one wanted to talk on the record. As a result of the ILA’s assertion of Article VII, ocean carriers won’t commit to their vessels calling on the Leatherman Terminal unless the issue is resolved, Newsome said. He called the actions “surreptitious” attempts to acquire new work, particularly as they implement what is known as a secondary boycott. The NLRB prohibits secondary boycotts, which is defined as two parties, in this case the ILA and USMX, making an agreement that could harm a third party, in this case the port. All it takes to violate this act is to “engage in, or induce or encourage” someone in the industry to boycott another party’s goods or services, according to published NLRB regulations. Labor disputes of this nature are far from new.


FULL PAGE COWBOY USA LLC

8100 Palmetto Commerce Pkwy North Charleston, SC 29405 terminal: 843-767-8693 | fax: 843-767-8893 www.cowboyusallc.com


S.C. DELIVERS www.scbizmag.com

30

In the case of ICTSI Oregon Inc. and its charge against the International Longshore and Warehouse Union, the two parties also fought over a secondary boycott. The case was a landmark for its $93 million jury award in ICTSI’s favor and has been covered nationwide from the Los Angeles Times to the New York Post. But despite the multimillion-dollar award, the tale still doesn’t have an ending. Litigation is ongoing even after a decade, and the embroilment has caused widespread economic issues for many involved. A judge last year agreed with the finding that the union had unfairly damaged

ICTSI but disagreed with how damages were calculated and reduced the jury award to $19 million. ICTSI has since refused to accept the $19 million award, and the court is ordering a new jury trial to determine damages. The union said it likely would be forced into bankruptcy if it had to pay the $93 million award.

Is Oregon like S.C.? The case in Portland began in the early 2000s with ICTSI, a subsidiary of International Container Terminal Services Inc., taking over the lease on a government-

operated container terminal in Oregon. As part of the transition, refrigerator container work — managed by the Port of Portland — was to be done by port electricians per a labor agreement established in 1974. The ILWU maintained the work belonged to them, however; and the longshoremen prevented the electricians from working, took over the jobs themselves and tanked the port’s volumes, a source involved in the case said. ICTSI was powerless in a dispute that didn’t involve the company in the first place. Similar to the S.C. Ports Authority, they filed a complaint with the National Labor Relations Board. In 2012, the NLRB found that the longshoremen were intentionally slowing down work — taking twice as long to move containers and falsely claiming safety issues that took time to investigate but turned out to be baseless. The NLRB said the unionized dockworkers engaged in illegal stoppages and other gimmicks to pressure the company for jobs. That same year, the Oregon Federal Court entered an injunction ordering the ILWU to cease the illegal conduct. But the union persisted, according to someone closely involved in the case. In a business where everything is about the speed of production, ICTSI’s timing took a huge hit and never recovered. It subsequently shut down Oregon’s only international container terminal, which remained shuttered until January 2020. Without use of the Portland port for four years, customers had to transport their cargo to Seattle or Tacoma, Wash., to ship from there — raising export causes, especially for the large agricultural industry in Oregon. Traffic congestion increased, more trucks were needed and prices went up for the Asian markets that imported to Portland, the source said. One case mushroomed into many and the case went as high as the D.C. Circuit of Appeals. With the Hugh Leatherman Terminal scheduled to open in March, Newsome hopes for a quicker resolution and expects any day to hear of a determination by NLRB.


S.C. DELIVERS

We start with the best customer service team in Charleston. Then our dispatchers and drivers go to work to deliver.

No lane too short or too long.

If your current carrier drops the ball back in your lap, call All Points. HAZ-MAT Carrier | Refrigerated Carrier | Overweight Carrier | Customs Bonded Carrier

We are conveniently located near I-526 at Virginia Avenue which is: 1.5 miles from North Charleston Terminal. 11 miles from Wando Welch Terminal. 4.5 miles from CSX Rail. 5.5 miles from Norfolk Southern Rail.

843-576-5930

www.scbizmag.com

• We deliver across the street, across the state, or across the country. • Highly trained drivers are all TWIC certified. • Most drivers are HAZ-MAT and tank certified. • Our trucks are permitted for heavy haul in SC, NC, and GA. • We own chassis; 20’ tri-axles, 40’ tri-axles, and 20’ and 40’ chassis’. • EDI capabilities. • Three acres of storage. • Specialized in recovering and delivering.

1040 Lincoln Avenue | North Charleston, SC 29405 www.AllPointsCharlestonSC.com | ASC@AllPointsTransport.com31


S.C. DELIVERS

Longstanding labor model Should Article VII be enforced, it could threaten the SCPA’s half-a-century-old hybrid model of using both state employees and union labor on the waterfront. Newsome has known about the clause from its inception, but never felt it applied to the HLT or any other South Atlantic ports, which are all state-owned. He also believed that with only hypotheticals as to how this article would hinder business or carriers coming to the state-owned and -operated port, the NLRB would turn away his concerns.

They’re now no longer hypothetical. “The union is expected to follow the rule of law like everyone else,” Wilson said. “South Carolina has long been a staunch right-to-work state and the union cannot undermine our laws guaranteeing the right to work. Those laws do not permit the union to take over jobs from state employees.” The SCPA generates one in 10 jobs in in South Carolina and has found longstanding success with its hybrid model of experienced state employees handling cranes, lift machines and heavy machinery working alongside ILA’s deep sea staff, clerks and checkers, and mechanics, Newsome said.

We make container hauling look good! Dry Freight, ISO Tanks & Flexi Tanks Tanker Chassis & Tri-Axle Chassis Available

www.scbizmag.com

NOW CUSTOMS BONDED

32

3135 Pacific Street • North Charleston, SC 29418 843.745.0023 • michele.liquidbox@gmail.com

He said this provides the “best combination of productivity, efficiency and cost in the United States.” The clause could upset that balance. Under Article VII, there are two provisions, one of which says that the UMSX can “notify any port authority contemplating or intending to develop a new container handling facility that USMX members may be prohibited from using the new facility if the work at that facility is not performed by Master Contract bargaining unit employees.” Newsome and the ports predicated the decision on how to operate the terminal on its existing model, he said. Should the article be enforced in ILA’s favor, hiring only union workers would increase the price of using the Leatherman Terminal and therefore would cost the SCPA business. “I can prove that the operating model of the Hugh Leatherman Terminal would be expensive and our customers wouldn’t pay for it,” the CEO said. “And if they don’t go to the terminal, it wouldn’t matter. The S.C. Ports data is currently the only analysis on hand, Newsome said. As part of the second provision for the article, the ILA and USMX were supposed to conduct a study that showed how the hybrid model “could be altered to permit work currently performed by state employees to be performed by ILA-represented employees in a more productive, efficient and competitive fashion.” That analysis would then be presented to the port “in an effort to convince them to employ ILA-represented employees,” the clause said. As of press time, Newsome said no study has been conducted. The CEO stressed he is grateful to collaborate with the ILA and its rank and file members in Charleston and intends to move forward operating the terminal with the current hybrid model. “It’s the only way it’s going to be successful,” he said. “Everybody will benefit from that in terms of increased job growth for all the people that work on the waterfront, the state board employees and the ILA. To me, failure is not an option.”

Reach Teri Errico Griffis at 843-849-3144.


PRESENTS

Join bestselling author Jon Gordon as he hosts this monthly FREE webcast featuring thought leaders and the best in business.

Be Our Guest. Register Now. bit.ly/21stcbfcola

APRIL

MARCH

Nick Saban

Renée Mauborgne • #1 Management Thinker in the World by Thinkers50

• Six-time National Coach of the Year

• Co-author of global bestsellers Blue Ocean Strategy and Blue Ocean Shift

• Head football coach, Alabama Crimson Tide

MAY

Josh Linkner

JUNE

Steve Cannon

JULY

Brian Solis

• #1 Most Booked Innovation Keynote Speaker

• Former President/CEO of Mercedes-Benz USA

• Global Innovation Evangelist at Salesforce

• New York Times bestselling author of The Road to Reinvention: How to Drive Disruption and Accelerate Transformation

• CEO of AMB Group, LLC

• Award-winning author of eight bestselling books including The End of Business As Usual

For sponsorship information, contact Grady Johnson at gjohnson@scbiznews.com or 843.849.3103.


WE’RE DATA STORYTELLERS BRING YOUR DATA TO LIFE

We distill complex information to its most impactful components to tell compelling stories. Our targeted approach to data visualization uses infographics, charts, animations and presentations to reveal the stories within the data.

DATA-DRIVEN DECISION-MAKING

We analyze data and create engaging, easy-to-understand designs that help you understand your strengths and weaknesses, allowing you to set goals, collaborate, plan and execute.

ACCELERATE YOUR RESULTS

When you can create a common understanding among your stakeholders, you build consensus and accelerate your results. Address the issues and challenges you face, and capitalize on your strengths, with impactful, approachable and vital data.

Find out more: VisualInfonomics.com FOR MORE INFORMATION CONTACT MARK WRIGHT

843.343.5533 | mwright@scbiznews.com


Turn static files into dynamic content formats.

Create a flipbook
2021 SCBIZ Magazine - Spring by SC Biz News - Issuu