Page 1

BEST ADVICE Amy Barch Founder of Turning Leaf

PAGE 4 VOLUME 27 NUMBER 15 ■ CHARLESTONBUSINESS.COM

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Cafe rethinks strategy with loss of breakfast crowd By Teri Errico Griffis

Bank on it

S.C. saw the highest number of branch openings in the country this year. Page 13

K

tgriffis@scbiznews.com

aralee Nielsen Fallert was one of the lucky ones to head into the pandemic with six restaurants and come out with just as many. The shift in how people dine out now, however, has caused her to rethink one eatery in particular, The Park Cafe on Rutledge Avenue in Charleston.

Just two years ago, Fallert and her business partner renovated the 1,200-square-foot space to focus on breakfast and introduce a special events room. But with workers no longer grabbing breakfast on the way to the office or groups gathering in large spaces, the model needed to shift once again. “During the pandemic, we stopped serving breakfast because business breakfast didn’t really exist,” she said. “So, we shifted and start-

Fire damage

An early morning fire raged through four Mount Pleasant businesses. Page 6

By Molly Hulsey

Future planning

B

Faced with the nation’s COVID-19 fatalies, life insurance sales soared. Page 14

Economic export

INSIDE

Upfront................................. 2 SC Biz News Briefs................. 3 Best Advice........................... 4 In Focus: Financial Services............... 13 List: Credit Unions............... 16 Bonus List: Accounting Firms................ 17 At Work............................... 19 Viewpoint............................23

See CAFÉ, Page 10

FAA scrutiny slows delivery of SC 787s

A Sunday morning buzzed with boaters launching out of W.O. Thomas Jr. Boat Landing. (Photo/Teri Errico Griffis)

How the Palmetto State’s economy depends on exported goods. Page 3

ed offering dinner because that’s what our neighbors and the market were telling us we needed to serve.” With a transition to later meals, calling themselves a café no longer fit. Fallert decided if the eatery would undergo a menu change and a name change, she might as well address the physical changes she’d been yearning to

MARITIME

MOMENTUM

South Carolina’s boat manufacturers can’t produce enough products to meet unending demand after people realized the safest place during a health crisis might be on the water. Page 8

Marvel on wheels

BMW brings S.C.-manufactured vehicle to the big screen in summer action film. Page 3

mhulsey@scbiznews.com

oeing’s troubles didn’t end with an uptick in air travel this summer, but the company says recent Federal Aviation Administration directives are not as alarming as headlines might suggest. Over a week of FAA scrutiny, Boeing slowed production of North Charleston’s 787 Dreamliner program to rework production flaws: gaps a 1,000th of an inch in the plane’s skin and forward pressure bulkhead, where the body of the plane fuses with the nose. The order impacts 100 jets-in-waiting at the company’s South Carolina and Washington facilities. And with attention and resources redirected toward repair and rework, the company will cut this year’s 787 production by half and temporarily reduce monthly output to fewer than five jets per month. Boeing’s three Dreamliner models, including the 787-8, -9 and -10 are produced at the company’s North Charleston campus. By the end of the week, the FAA had also directed operators of 737 jets to test altitude pressure See BOEING, Page 11


Upfront

BRIEFS | FACTS | STATEWIDE NEWS | BEST ADVICE

South Carolina’s export economy

T

he global pandemic interrupted more than your ability to go see a movie or buy a steak dinner on demand. Several areas of the state’s economy were impacted by supply chain and manufacturing disruptions that will likely be felt for years to come. Since BMW established operations in South Carolina, ushering in an advanced manufacturing sector that continues to be a vital part of the economy, economic developers and manufacturing leaders statewide have kept a keen eye on imports and exports as an economic indicator. Though Greenville, Columbia and Charleston account for the most exports in the state, data from the Office of the U.S. Trade Representative show how exports aren’t just a major market sector for South Carolina. As the pandemic turns, look for these numbers from before 2020 to realign as more goods are produced here and exported to other markets across the globe.

By the numbers

$34,600,000,000 South Carolina exported nearly $35 billion of goods made in the Palmetto State in 2018 with manufacturing driving the majority of those exports.

154,000

Those manufactured products provided tens of thousands of jobs across the state in 2016.

74%

In a span of 10 years, from 2008 to 2018, exports of goods from South Carolina to global trading partners increased 74%.

14

South Carolina was the 14th-largest exporters of goods compared to other states in 2018.

ON THE

RECORD

Top 5 export segments

Value of exports to S.C. metros

Unsurprisingly, transportation equipment was the top export manufacturing segment in 2018.

Metro area

Export value

Greenville

$12.9 billion

Category

Export value

Transportation

$18.8 billion

Chemicals

$2.9 billion

Charleston

$8.8 billion

Plastics, rubber

$2.4 billion

Columbia

$2.1 billion

Machinery

$2.1 billion

Electronics

$1.4 billion

Spartanburg

$2 billion

Top 5 export markets for S.C.

Augusta

$970.1 million

China leads as South Carolina’s biggest export market, accounting for 16% of total goods exported in 2018.

Florence

$653.9 million

Myrtle Beach

$319 million

Sumter

$132.4 million

Hilton Head

$45.3 million

Countries

Export value

China

$5.6 billion

Canada

$4 billion

Germany

$3.8 billion

Mexico

$2.8 billion

Britain

$2.4 billion

Source: Office of the U.S. Trade Representative, 2017

“Restaurants are living, breathing entities that need to grow, and the pandemic helped shed light on our team’s hopes and aspirations for future evolution.” — Karalee Nielsen Fallert, owner of The Park Cafe

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The S.C.-made BMW X3 making its appearance in the summer action film Black Widow. (Photo/Youtube)

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SC-made BMW plays starring role in summer action film Black Widow

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O

ne of the co-stars of the Marvel series film Black Widow hails from South Carolina. There’s no speaking part, though, unless you count the roar of its engine. One of two BMWs featured prominently in the film, released recently in U.S. theaters, is a BMW X3 made at Plant Spartanburg. Jens Thiemer, senior vice president for customer and brand for BMW, said the spy thriller made a good platform for the image the company is trying to cultivate for the X3 and the other car used in the movie, a BMW 2 Series Gran Coupé. “This is the very first time BMW has worked with Marvel Studios and the result is just stunning,” Thiemer said in a news release. “Having the BMW X3 and the 2 Series Gran Coupé playing key roles in Black Widow is part of our marketing strategy, adding strong emotional value to the communication of these models. As emotional and thrilling stories play an increasing role in our brand communication, we are definitely looking forward to continue working with Marvel Studios.” The movie is produced by Marvel Studios and distributed by Walt Disney Studios Motion Pictures. Scarlett Johansson stars as Natasha Romanoff, the Black Widow. “There is no better vehicle to take us on Natasha’s journey as she sorts her past than a BMW,” Mindy Hamilton, senior vice president of partnership marketing at The Walt Disney Co., said in the news release. “The X3 and 2 Series Gran Coupé are sleek and agile, just like Black Widow, and we are so excited for the world to see where we’ve been together. ...” BMW Manufacturing Co. LLC in Greer manufactures the X3, X4, X5, X6 and X7 models, which the company calls sports activity vehicles. Black Widow is in theaters now and available on Disney+ with Premier Access.

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Nephron Nitrile to help onshore PPE production in S.C. By Melinda Waldrop Mwaldrop@scbiznews.com

Staycation time

Capital City/Lake Murray region ranked top stop. Page 2

W

est Columbia-based Nephron Pharmaceutical Corp. is launching Nephron Nitrile, a new company that will produce three billion nitrile gloves per year at its Saxe-Gotha Industrial Park facility. The gloves, a crucial piece of the PPE needed by medical, health care and other industries during the COVID-19 pandemic, will be manufactured in the newly completed Kennedy Innovation Complex, part of Nephron’s $215.8 million

expansion at its Lexington County headquarters. Nephron is teaming up with CeramTec, a global ceramic and medical technology company with North American headquarters in Laurens, to produce the gloves. CeramTec makes the forms used in molding the gloves. Nephron owner and CEO Lou Kennedy, whose company faced supply chain issues in getting the PPE it needed to operate at the height of the pandemic, said Nephron Nitrile will help onshore future production not just in America but in South Carolina. “Here you have two South Carolina companies

joining forces to create PPE statewide, just the exact way that (Sen.) Lindsey Graham talked about in his press conference from the Nephron lobby last year,” Kennedy said. “I am so proud of this.” Kennedy spoke to the Columbia Regional Business Report in advance of a July 15 news conference announcing the formation of Nephron Nitrile. The news conference occurred after the July 19 print edition of the Business Report went to press. Kennedy said her company has also entered

New frontiers

See NITRILE, Page 12

Summer 2021

S.C.’s life sciences sector poised for growth, success

Growing roots

Hydroponics company expands to Atlanta. Page 3

Hospitality help

Federal program pays out $28.6B to bars, restaurants. Page 4

Business boost

MARKET MAYHEM

S.C. agricultural department funds seven startups. Page 6

Lack of inventory, low interest rates driving sight-unseen purchases, cash-only offers

INSIDE

Upfront ................................ 2 SC Biz News Briefs ................ 3 In Focus: Residential Real Estate......................... 14 List: Mortgage Companies .......................................... 17 At Work .............................. 21 Viewpoint ...........................23

Photo/Christina Lee Knauss

By Christina Lee Knauss

C

Contributing Writer

olumbia realtor Graeme Moore, owner of The Moore Co., recently had an experience that would be considered highly unusual in almost any other recent era of real estate sales except this one.

He sold an expensive home to a couple moving to Columbia from across the country for work who had never even physically seen the home before or walked around inside it. “We had met before and looked at some houses in person, but on that trip, they didn’t find anything that worked,” Moore said. “They couldn’t swing coming back out here again

because of issues with work and their kids, so they ended up having to buy basically sight unseen, using only photos and a video.” Buying a house without ever seeing it in person isn’t the only unusual thing going on in the real estate market these days. See MARKET, Page 15

Mounting costs

ELECTRONIC SERVICE REQUESTED

Rising prices of lumber, other materials putting squeeze on affordable housing market . Page 18

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With publications in Charleston, Columbia and the Upstate, as well as a statewide magazine, SC Biz News covers the pulse of business across South Carolina. Above are excerpts from our other publications.

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Best Advice

July 26 - August 8, 2021

AMY BARCH

FOUNDER AND EXECUTIVE DIRECTOR, TURNING LEAF Photography provided

THE BEST ADVICE I’VE EVER RECEIVED ...

Editor, Custom Publishing Division Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Staff Writer - Teri Errico Griffis tgriffis@scbiznews.com • 843.849.3144

“‘Focus on what you can control.’ It’s humbling to recognize how much happens in life that I have no

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control of. Instead of wanting things to be different – the way I want them to be, the way I expect them to

News Editor - Alexandria Ng ang@scbiznews.com • 843.849.3124

be — I try to let go and accept things as they are. This practice helps me to not get overly angry and anxious

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by circumstances I can’t influence, like other people and external events. It’s also a powerful reminder

MIDLANDS NEWSROOM

that my actions are fully in my own control. By staying

Editor - Melinda Waldrop mwaldrop@scbiznews.com • 803.726.7542

focused on my daily choices, I feel more grounded and am an all-around happier person.”

UPSTATE NEWSROOM Editor - Ross Norton rnorton@scbiznews.com • 864.720.1222

A NEW LEAF

Associate Editor, Custom Publishing Division Jim Tatum jtatum@scbiznews.com • 864.720.2269

Barch grew up with a loving family, lived in safe neighborhoods and had access to good schools and

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jobs. It was on an extended backpacking trip around

LOWCOUNTRY ACCOUNT EXECUTIVES

extent of her privilege. She returned home feeling

Account Executive Thomas J. Giovanniello, Jr. tomg@scbiznews.com • 843.849.3104

a deep responsibility to dedicate her life to giving

Europe in her early 20s that she began to realize the

back. She enrolled at the University of Washington with plans to go to law school, but an internship at

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the jail changed everything. By graduation, Barch knew she wanted to spend her life working on prison reentry issues. After years of frustration with the types of services available to people returning home from prison, Barch decided to start Turning Leaf – the organization she wanted to work for but

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INTERESTING FACT

Barch admits that sometimes it’s nice to take a break from criminal justice reform work. When she does, listening to live music is at the top of her list. Barch also loves camping, which makes going to music festivals one of her favorite getaways. “Going to a music festival is like stepping into a different world. It’s a special place where people leave the stress of work and life behind and just enjoy the moment to connect with people in a way that’s not possible in our normal day to day. For me, it’s a celebration of life.” This October, Barch is excited to be crossing off a bucket list item by going to Jazz Fest in New Orleans.

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Fire devastates Mount Pleasant businesses By Teri Errico Griffis

A

Mount Pleasant firefighters were still on the scene after a fire that broke out just after midnight on July 16 and damaged four businesses on Johnnie Dodds Boulevard. (Photo/Teri Errico Griffis)

tgriffis@scbiznews.com

fire tore through four businesses on the 700 block of Johnnie Dodds Boulevard in Mount Pleasant one morning around 12:30 a.m. Businesses affected by the fire included Jean’s Bridal of Mount Pleasant, Auto Money Title Loans, Allan G Bolden CPA and IHT Wealth Management. No one was reported injured in the incident. Buildings were unrecognizable by the early morning, roofs caved in, blackened and singed to the core of the structure. Jean’s was only recognizable by a small partially legible sign by the front door and two sewing machines outside the remains of the business. Jean’s opened in 1974. Mount Pleasant Fire Department Battalion Chief Troy Thomas said crews responded sometime around 12:30 a.m. to Johnnie Dodds Boulevard between Shelmore and Anna Knapp Boulevards. “The trucks were already operating on a house fire nearby and they had to relocate,” Thomas said. “So they got here very quickly.” The swiftness was key to get the fire under control around 2:45 a.m., Thomas said, but the damage was already done before the trucks arrived. The fire went

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Don't just GO online, GROW online Jean’s Bridal shop in Mount Pleasant was heavily damaged by a fire in Mount Pleasant. (Photo/Teri Errico Griffis)

unnoticed for some time as none of the buildings had fire alarms, he said. The fire department contacted the owners who arrived early in the early hours, Thomas said. He added they were unable to reach the title loan company and the employees arrived to the office to find the damage. Millenial Medical Travel Nurse Staffing next door was untouched, potentially saved by the parking lot in between the building and the Bolden CPA and IHT offices. An employee at the scene said the fire started in the back of the neighbor-

ing businesses away from the main road, which is what made the smoke and flames difficult to notice at first. The cause of the fire, and which office it originated in, is under investigation, Thomas said. A crew of roughly a dozen firefighters, dripping in sweat and soot, was still on the scene at 9:30 a.m., removing the safe and paperwork from the title loan building and sifting through personal belongings from Jean’s.

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Hundreds of boats are docked in the Ashley River along Lockwood Boulevard in downtown Charleston. (Photo/Teri Errico Griffis)

Boat sales surge as shortages delay deliveries By Teri Errico Griffis tgriffis@scbiznews.com

W

ith the pandemic forcing people find isolating, outdoor activities, boat sales have skyrocketed over the last year across South Carolina. Sportsman Boats in Summerville is producing nearly 400% more units compared to pre-pandemic levels, and the manufacturer is still struggling to keep up with soaring demand. “With COVID, everyone could safely be on the water, be with their family, be outside,” said Katie Barrow, the company’s marketing coordinator. “Boat sales exploded… It’s been shocking.” Just a few years ago, the company could complete two boats a day and keep up with orders. Now they’re up to eight, and sales haven’t stopped. The accelerated interest in outdoor activities combined with labor and supply chain shortages and shipping delays over the last year have pushed South Carolina’s $5 billion boating industry to its brink. Manufacturers can’t keep up with staggering spikes in demand and companies have even begun trading supplies with one another to help get product out the door.

When parts of Texas froze over in February, the cold crippled one of the country’s largest resin resources — a critical element to building boats. Barrow said Sportsman, which manufactures center-console family fishing boats, called competing companies to trade excess resin for foam, engines and other urgently needed items. “Any item on a boat, there’s been a shortage of this year,” she said. Falcon Bass Boats in Newberry, even with a niche market as a two-seater fishing boat, has shared a similiar experience. “The reality is the boat industry, we’re good people. We like each other, we get along with each other,” said Falcon’s director of marketing Lisa Waller. “So yes we make those phone calls to share the things that we have in order to help everyone to get boats out the door.” Like every other industry, Sportsman and Falcon had no idea what to expect when the country shut down in March. Both companies kept on employees with pay while they waited, and Sportsman has since been desperately hiring to keep up. Falcon Bass Boats recorded all-time high sales for most of the pandemic.

While completed boats have trended slightly downward recently with supply chain issues, Waller said sales are still there and the company’s experiencing record orders. “Supply chain issues have been huge, huge barriers and disruptions for us,” Waller said. “If we had every access to everything we needed when we needed it, we would definitely be far, far ahead of where we were last year.” On average, a Falcon boat takes nine days to build from start to finish, with the company sending five-to-six out the door a week. But time and again, near-complete boats have been sitting, waiting for UPS and FedEx to deliver final pieces, she said. Lee Falls, a sales professional at Palmetto Boat Sales in Charleston, said in his 20 years in the business, he’s never seen a demand for boats this high with people coming in every single day ready to buy something. Tim Long, general manager of Long’s Marine Center, is seeing the same activity in Anderson. “Anything having to do with the outdoors, there’s a high demand for it now,” Long said. “It’s not just boats. Trucks, RVs, motorcycles, jet skis, ATV, every-

thing, anything that’s got to do with outside, everybody’s in short supply of.” Prior to March 2020, new boat orders took between eight and 12 weeks to fulfill, Falls said, but he feels six months is a more reasonable timeframe these days. Looking ahead, if people want to purchase a boat for next spring, he and Long suggest placing orders now. “Right now, if you ordered a boat, if it was a sold boat, it would get here in late November, early December,” Long said. “Motors are anywhere from four months to a year depending on the brand and horsepower you’re looking at. Even boat trailers are two months out.” Waitlists are then growing longer and longer each day with a shortage of engines from Japan, a shortage of containers coming from Southeast Asia, a shortage of labor to unload ships in California, Oregon, Washington, and a shortage of truck drivers, Falls said. Already, Sportsman and Falcon products are spoken for as soon as they hit the dealership, if not sooner. In typical times, every boat the companies plan to manufacture is claimed as a slot for a dealer to sell at a later point. In these demanding times, Barrow and Waller said slots have been bought before


July 26 - August 8, 2021

www.charlestonbusiness.com 9

the boat is even built, making almost every product a custom order right now. Waller recently posted an unfinished Falcon boat on Instagram and received dozens of dings that day asking if the vessel was available for purchase and where. “The boat was in production and hadn’t even left Falcon, and already people were clamoring for it,” she said. Barrow foresees this trend continuing for the next year at least. The National Marine Manufacturers Association reports the Palmetto State already has more than half a million registered boats and ranks seventh in the U.S. in boat ownership, with one in 10 South Carolinians owning a boat. “I think an interesting part of COVID was people realizing what’s important to them, so because our boats are built for families, that trend is going to stay strong,” Barrow said. The family fishing boat manufacturer opened in 2011, sold its first boat in 2012 and established its Summerville manufacturing facility in 2013. The company has since grown to 350 employees, with 300 workers in the warehouse and more still needed. Owner Tommy Hancock, one of the original founders of Sea Pro Boats Inc., created a business model to build everything possible in-house, including pouring molds and upholstering seats. Sportsman then brings in items like mirrors and grab bars, Yamaha engines and electronics, like a Garmin navigation system. The boat manufacturer’s own trucks and employees deliver the boats to more than 50 dealers up and down the East Coast,

Above: Sportsman Boats finished products are ready for pickup at the Summerville plant. (Photo/Teri Errico Griffis) Left: Jonathon “Opie” Gibson, a worker at Falcon Bass Boats, wires the graphs and installs a boat’s trolling motor. (Photo/Provided)

in Texas, Maine, Michigan and even Australia — all of whom are also struggling with low inventory. Long said he’s doing the best he can to move boats out of the Long Marine lot, but the lack of workers only makes it that much harder. With the record sales and people using

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their boats more in 2020 and 2021 than they had in years, Long said there’s an increase in service work that needs to be done — and less crew to do the work. “A lot of it has to do with the stimulus checks, where people could just sit at home and make more money as much as they could working. That’s the big issue,” Long said. As a member of the S.C. Boating & Fishing Alliance, Waller is heading up the workforce development sector and said the labor shortage is a huge focus. Not only is the challenge in finding workers, but in finding skilled workers who can use small tools, have worked with lamination or resin, or have other transferrable skills. Barrow sees the ability to hire as an

opportunity for Sportsman, when so many other companies have had to lay off employees. She, too, shifted into Sportsman mid-pandemic, coming from the education sector with a welding background. “It was just very scary to watch an uncertain time where people worried they might get laid off, they might not find another job,” she said. “And then for this company to say ‘We’re hiring. Please come apply here,’ it was really neat. I mean, it saved me. It’s just such an opportunity to be a company who is able to offer more jobs for the Charleston area.” CRBJ

Molly Hulsey contributed to this report. Reach Teri Errico Griffis at 843-849-3144.


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July 26 - August 8, 2021

Vermont company acquires North Charleston RV dealership

G

Staff Report

loria Morgan has worked for The Trail Center for 48 years and enjoyed it so much she bought the company in 1993. Now the new and used RV dealership in North Charleston is under new ownership by Pete’s RV Center. Morgan admitted she wasn’t looking to sell but couldn’t pass up the opportunity when approached by the Vermont-based company. “They came along and asked me if I

was interested,” she said. “At the time I hadn’t thought of it. But it just seemed like a great opportunity.” Pete’s RV Center assumed ownership on July 1, Pete’s said in a news release. This is the sixth dealership for Pete’s and the company’s first location in the Southeast. The Trail Center at 5728 Dorchester Road has a long history in Lowcountry, founded in 1966 by Fred Curtis, a United States Air Force pilot. When Morgan assumed ownership in

1993, she was only one of 12 female RV dealership owners in the country, she said. “It’s like everything else, more women own it now than I did when I purchased it 28 years ago,” she said. “It was a man’s world, a male-dominated industry back then. Women are starting to show up more now.” Pete’s RV co-owner Chad Shepard called Morgan is the “heart and soul” of the company and a “staple” in the RV industry.

“It’s an honor to assume ownership of a business so fondly recognized in Charleston and its surrounding communities,” Shepard said in a statement. Morgan said she will stay on at the store and oversee daily operations and that all employees are staying on. Pete’s Trail Center opened its original location in South Burlington in 1952. Other dealerships are located in Indiana, Connecticut, Massachusetts and Pennsylvania. The company is co-owned by Shepard, Todd McGinnis and Scott Borden. CRBJ

CAFÉ, from Page 1

make and do it all at once. “When you decide you’re going to update and upgrade, it’s like Pandora’s box,” she said. “You change this, change that, then admit you haven’t always loved this and address the issues you had with the flooring. We decided let’s really do this, not piecemeal it.” The Park Cafe closed for renovations on July 12 with an anticipated public opening date of July 28 under the banner of Park & Grove. The name is a nod to the restaurant’s location at 730 Rutledge Ave., on the corner of Grove Street. The restaurant will be open for dinner service only July 28-30, brunch and dinner July 31 and brunch Aug. 1. It will close Aug. 2-3 before reopening with standard operating hours on Aug. 4. Park & Grove will be open 11 a.m.10 p.m. Tuesday through Thursday, 11 a.m.-11 p.m. Friday, 9 a.m.-11 p.m. Saturday and 9 a.m.-2:30 p.m. Sunday. Brunch will be served 9 a.m.-2:30 p.m. Saturdays and Sundays. A happy hour will be served from 5-6 p.m. Tuesday through Friday. “Ultimately, I’m grateful for the opportunity to take those stressful, challenging moments to use them to see clearly what we needed to do as an organization, whether investing more time into our people and how we recruit and how much we pay them… or looking at how we were operating,” she said. Fallert owns All Good Industries, which operates Taco Boy, Royal American and Wiki Wiki Sandbar. Fallert established The Park Cafe in 2014, a small but popular spot known for its avocado toast and fried egg sandwich. Both offerings, Fallert assured, will remain on the Park & Grove menu, along with the Charleston Fog latte. In addition to physical renovations

The Park Cafe closed for renovations July 12 and will re-open at the end of the month as Park & Grove. The new dinner-focused menu will include fresh, local ingredients. (Photos/Teri Errico Griffis, provided)

and a name change, the restaurant is welcoming new leadership with Chef Ramon Taimanglo tackling the culinary side and Samson Kohanski serving as general manager. Taimanglo previously spent seven years as executive chef at Peninsula Grill in downtown Charleston. Fallert was previously acquainted with Taimanglo and had often sought his advice in the past. Though she didn’t instantly think of him when searching for kitchen leadership, she knew he was a perfect fit when they sat down together. “We had good chemistry,” she said. “The conversations we were having were

about what the opportunities were during the pandemic.” Park & Grove’s menu will move with the seasons, with dishes and drinks that reflect the local landscape, fields, farms and waters. Taimanglo’s menu will blend the classic with the inventive and will reflect the freshest ingredients. Some of Taimanglo’s new dishes for Park & Grove include homemade bucatini with pesto and pork jowl, grilled hanger steak and braised beef short ribs. The weekend brunch menu will include short rib hash and stuffed French toast. Kohanski will also introduce an updated cocktail menu that focuses on vintage spirits and moves with the seasons. The general manager joined The Park Café in January after relocating from Los Angeles, where he previously ran his own cocktail and consulting company, WLDE. Previ-

ously, he also ran the cocktail program at Michelin-star Chef Josh Skenes’ first LA restaurant, Angler. “Restaurants are living, breathing entities that need to grow, and the pandemic helped shed light on our team’s hopes and aspirations for future evolution,” Fallert said. She added that guests of Park & Grove will still experience the same “convivial atmosphere, sense of community and amazing food” that they have come to know at The Park Café, only this time, they’ll return for dinner instead. “This experience caused us to take a hard look in the mirror,” Fallert said. “It was stressful and very, very hard. But at the end of the day, what we got out of it was perfect.” CRBJ

Reach staff writer Teri Errico Griffis at 843-849-3144.


July 26 - August 8, 2021

www.charlestonbusiness.com 11

BOEING, from Page 1

switches upon reaching 2,000 flight hours and replace if needed, according to a company spokesperson. “Safety is our highest priority, and we fully support the FAA’s direction, which makes mandatory the inspection interval that we issued to the fleet in June,” the company said in a statement. No switch malfunctions have been discovered in-flight, according to the company, and no in-service planes will be grounded due to the directive. “As an aircraft manufacturer, you essentially qualify your aircraft based off the engineering drawings, and if your aircraft doesn’t match the drawings, it means that you’ve built something else,” said Wout De Backer, an assistant research professor at the University of South Carolina’s McNair Center for Aerospace Innovation and Research. “Even if there were no structural defects or deviations, if it doesn’t match any more what the manufacturer said they would make, that’s a problem, because now, no one can verify what was actually made.” De Backer said production errors can occur at any step because of the complexity of the manufacturing process but noted that if something is off at the manufacturing level, it usually doesn’t get any better from there. Sufficient quality control typically catches this before downstream process are affected, as two wrongs don’t usually make a right in the manufacturing world, he said. The next few weeks of rework would traditionally include a forensic investigation to determine what happened to create the issue and whether it was present in jets already delivered. “Even seemingly insignificant damage or deviation, what we call in the industry as ‘barely visible or barely noticeable damage or deviation,’ especially if it’s damage like a hairline fracture or something that may affect component strength, it may not affect the aircraft on day one, but because the aircraft will be fully loaded with equipment, people and pressurized and will probably be flying for 30 years, that deviation may grow to be catastrophic in the long line.” De Backer said that when a company finds that the error could be uncovered in already completed and delivered jets, the repair process will be much more involved than the usual consumer-targeted car recall. Noncompliance with the drawings must be addressed by the manufacturer and by commercial operators, either immediately or on the next scheduled maintenance inspection, dependent on the severity of the issue, he said. Following two 737 Max crashes in 2019, there has been increased scrutiny on Boeing and other manufacturers during the certification and qualification process, he said.

The 787-10 Dreamliner is the largest in the company’s family of 787s. Production issues at Boeing’s North Charleston plant have once again temporarily halted deliveries of the aircraft. (Photos/Kim McManus)

Manufacturing details in Boeing’s 787 program are getting scrutiny from the Federal Aviation Administration.

Korean Air receives delivery of a 787 in North Charleston in 2018.

The company said neither the 737 safety switches nor the fuselage flaws in the 787 Dreamliner pose immediate danger. Recent 787 customers American Airlines and Dublin-based Avolon referred GSA Business Report to Air Lease when asked how the production error would impact their operations and scheduled orders. Air Lease did not comment after multiple attempts to contact the plane rental company. Boeing’s suppliers across the state too will likely proceed as usual, at least for now, according to DeBacker. Aerospace suppliers are contract-bound to deliver and often anticipate that most slowdowns will be tailed by a swift ramp up in production, he said. Kansas suppliers of the 737 Max continued to make fuselages for six months after the line was routed. Only when they ran out of storage space and there was no solution in sight, did they halt production.

Toray, a supplier of carbon fiber composite to the aerospace manufacturer, will not be impacted at the company’s Spartanburg facility, a plant spokesperson told SC Biz News. The majority of carbon fiber composite product made in the Upstate plant went to Boeing before the plant’s shutdown in summer 2020. Since then, Toray’s Spartanburg team has set their sights on other industrial customers with plans to reopen in January 2022. Other facilities will take over the company’s aerospace production until Boeing’s South Carolina plant recovers lost ground, Toray said. The 787-slowdown announced in July follows a five-month pause in Dreamliner production. “Over the last two years with both the COVID lockdowns and the 737 grounding situation, the 777x certification challenges and the software and schedule

issues with the Starliner capsule and SLS, across the entire business, they could use a few wins,” De Backer said. “They’ve shut down or slimmed down on a lot of their other smaller businesses and side projects, and they’ve really taken a hit on their core business when their 737 program was hit as badly as it was. That hurt them. Their 737: that’s their Toyota Corolla, their F-150. That’s their proven and reliable cash cow.” The cost of one 787 Dreamliner is hundreds of millions of dollars, and if a jet remains idle, grounded or unfinished in the factory for a month, current inflation prices and cost of resting capital could spur on a half million loss per aircraft per month, he said, not to mention renegotiation by airlines or customers for late deliveries. Which is a major incentive for getting the 100 Dreamliners-in-waiting fixed and into the air. “Too big to fail,” only works for a limited number of businesses and industries, De Backer said. “And in aerospace, it’s arguable, there’s no such thing.” CRBJ

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


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FINANCIAL SERVICES

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Architecture, Engineering and Construction (AEC)

LISTS: Credit Unions, Page 16 | Accounting Firms, Page 17

Chase addded 222 new branches nationwide since January 2020, including an office on Houston Northcutt Boulevard in Mount Pleasant. (Photo/Teri Errico Griffis)

Accounting for SC’s finances

South Carolina is like a business when it comes to accounting for income, cash flow and expenditures. The S.C. Department of Administration offers a quick snapshot at the numbers that finance South Carolina’s books.

Tens of billions

South Carolina’s annual budget for the 20212022 fiscal year is more than $31 billion. The money comes from several revenue streams.

Revenue stream General funds Federal funds Other funds Total

Amount $9.3 billion $9.5 billion $12.3 billion $31.1 billion

Emergency funds

South Carolina’s constitution requires the state to maintain a rainy day fund for unexpected circumstances.

$458,961,225

Banks expand in Charleston, bucking national trend By Jenny Peterson

T

Contributing Writer

he banking industry has seen branch footprints shrink nationwide over the past several years as customers go mobile. But South Carolina is going against that trend as the state had the highest number of new bank branch openings in the country last year, with seven new branches, according to S&P Global Market Intelligence data. South Carolina is just one of four states that had positive net bank branches between 2020-2021, where the number of openings outpaced the number of closings. Despite shutting down 334 facilities nationwide since January 2020, JPMorgan Chase & Co. added 222 new branches in the same time period, according to the S&P data. This includes expanding into South Carolina. This growth into the Carolinas, including Charleston, was announced in 2019 as part of a statewide $20 billion, five-year investment in its business and local economic growth. According to Allison Reed, a spokesperson for Chase Bank, the company has opened four branches and nine ATMs in the Charleston area to date. A new branch is also in the works on James Island. It is set to be built at the corner of Camp and Folly Road, on a lot

that previously hosted a Subway and a Pizza Hut. “We expect to open at least one more branch in the market on Daniel Island this year,” Reed said. While the S&P report states that the company’s 2021 first-quarter earnings indicate that branch transactions “remained suppressed as its mobile user count grew,” Reed said opening new branches also serves as a spur to economic development in the community. “When we build a branch, it lifts the whole community around it — contractors to build the branches, cafes and other small businesses to support the customer traffic — it’s a ripple effect,” Reed said. “The firm is actively hiring staff to support its new branches in the Charleston area.” Statewide, Chase Bank employs 160 people across multiple lines of business and serves more than 620,000 consumers and 26,000 businesses, Reed said. “Since we announced our expansion into Charleston in 2018, we have been full steam ahead,” said Alfonso Hernandez, S.C. market director for consumer banking at Chase Bank. “By locating our branches throughout all parts of this vibrant and growing city, we can help make sure more people have access to the financial resources they need to grow and scale their businesses, to become

financially secure and to create and grow wealth.”

Continued expansion

First National Bank, which merged with Yadkin and NewBridge in 2017, is also adding branches in South Carolina, according to Vincent J. Delie Jr., chairman, president and CEO of First National Bank and F.N.B. Corp. First National operates three locations in the immediate Charleston area, including a regional hub on Meeting Street downtown. Its expanding ATM network also includes service at the Charleston International Airport. Plans for two more branches and additional ATMs are in the works, Delie said. “The Charleston region offers a great deal of opportunity with a favorable business climate, strong entrepreneurial scene, emerging tech sector and a world-class port,” Delie said. “It is also a market where we have had great success deploying our expansion strategy, which combines a solid commercial banking presence and investments in technology to give our customers a full-service experience.” The bank’s success, he said, is a result of deep local ties within its leadership. “We have been very conscious about hiring experienced people who are engaged in the community and are a fit See BANKS, Page 15

By law, the General Reserve Fund must be 5% of the General Fund revenues and may be used to cover shortfalls from general funds receipts. For the current fiscal year, that amounts to nearly $460 million.

$183,584,490

The Capital Reserve Fund has to equal 2% of the General Fund. The money must be used to replenish the General Reserve Fund if necessary. If that money isn’t needed, then the General Assembly can appropriate that money for one-time expenditures.

What about schools?

Education is one of the largest expenditures for state government. For the current fiscal year, more than $4.3 billion or 41% of the General Fund has been allocated for educational expenses in South Carolina.

$3,545,719,579 K-12 education receives more than $3.5 billion from the General Fund, along with $987,285,024 from the state’s 1% sales tax, which is designated for education.

$800,452,070

Colleges and universities, on the other hand, receive less than $1 billion from the state General Fund, not counting lottery money.

$597,200,000

Nearly $600 million from the S.C. Education Lottery have been allocated by the state, including $68.6 million for K-12, $528.5 million for higher education and $100,000 for other agencies. Source: S.C. Department of Administration, 2021-2022


14

www.charlestonbusiness.com

IN FOCUS: FINANCIAL SERVICES

July 26 - August 8, 2021

Financial advisers say pandemic pushed more planning decisions By Teri Errico Griffis

P

tgriffis@scbiznews.com

rior to the pandemic, the last thing Spencer Schulz and his wife chatted about over pizza and wine on Friday nights was an unforeseen passing. But now it’s a common conversation for his family, and his clients at Northwestern Mutual, the financial adviser said. Life insurance sales are the highest they’ve ever been at the company. Not only has the pandemic forced the nation to take a long hard look at their rainy day savings — the Federal Deposit Insurance Corp. reports banks grew by a record $2 trillion in cash deposits during 2020 — but people have been forced to discuss how death could be just around the corner. With COVID-19, a trip to the grocery store, a hug could result in contracting a potentially fatal disease. “The pandemic made it okay for people to talk about finances in their house and to plan for something happening — not in a pessimistic way, but rather, I want to get life insurance before I contract COVID and become uninsurable, or God forbid I get it and do pass,” Schulz said. “We definitely saw an uptick.” Last year was Schulz’ best year as a financial advisor at Northwestern Mutual, which has offices in Charleston, Mount

Pleasant, Columbia, Greenville, Spartanburg and Asheville, N.C. Additionally, the company brought on more clients than it had ever seen, reaching $31 billion in revenue and surpassing $300 billion in total assets for the first time, the company said. Client investment assets also hit a record high of $195 billion. With a year that saw a global pandemic and a controversial election, Schulz said the positives that came out of 2020 was the realization for the importance of planning. “We truly think about the folks that were waiting for a $600 or $1,200 stimulus checks,” he said. “If we’re really banking on that, we’ve got a bigger problem, right? We realize the need for a proper emergency fund.” Rainy day funds should total three to six months of expenses, Schulz suggested. Additional savings can be divvied into short-term, mid-term and longterm investments, which can include life insurance. There are two types of life insurance: term and whole or permanent. Term lasts for a specific period of time, generally five years, 10 or 30. People often buy term insurance because they can get a large death benefit amount for a relatively inexpensive premium, said Evan Hammond, financial adviser and field director

“The pandemic made it okay for people to talk about finances in their house and to plan for something happening.” Spencer Schulz Northwestern Mutual financial adviser

at Northwestern Mutual. “The reason someone would buy term insurance is because they have a need, they have children or some debt that, God forbid they pass way, they want their family or beneficiary to have tax-free money,” he said. “It’s a really easy way to cover yourself for the specific term.” The downside of term insurance is the potential to outlive the term, they said. The insurance then expires and renewing can be harder as the individual ages or incurs health issues. Permanent life insurance can last for a person’s entire life as long as they pay the premiums. Some use it as a financial strategy, Hammond said. “The unique thing about permanent life insurance is it’s not correlated to the

cash market, so you don’t have the ebbs and flows like a year ago when we saw that huge dip in the market,” he said. “Nobody’s cash value took a hit because it’s not associated to the stock market.” The insured can also pull out money in a tax-favored fashion, meaning what you put in can be taken out tax-free. Hammond recommends a mix of both when making a financial plan. There are always going to be downturns in the market and having an alternative vehicle to pull money from is extremely strategic. For those looking for a financial advisor, Schulz stressed the importance of exploring options, just as you would a personal trainer. There are talented people whether you choose Wells Fargo, Charles Schwabb Corp. or Northwestern. And there’s zero risk in having a conversation, he said. “What’s important is to work with someone who has a financial plan and is working with your best interest,” Schulz said. “That understands the household dynamic, the goals of sending kids to school, understands the goal of paying off the boat. It’s important to work with someone who works with you to get there.” CRBJ

Reach staff writer Teri Errico Griffis at 843-849-3144.

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IN FOCUS: FINANCIAL SERVICES

July 26 - August 8, 2021

www.charlestonbusiness.com 15

BANKS, from Page 13

with the bank’s culture, and that has made a difference, especially during the challenges of the past year,” Delie said.

Branches still serve a purpose

Despite more customers using online and mobile banking options, like photo check deposits and money transfers, consumer demand for branch services has not disappeared. According to the 2021 U.S. Mobile Banking Survey by S&P, conducted in February and March of this year, “Many customers were still using branches during the pandemic. About 36% of survey respondents indicated that they had visited a bank branch in the prior 30 days. Most of these respondents visited multiple times.” The primary services customers sought at branches were related to depositing and withdrawing cash and checks. Nearly 50% of respondents used an ATM. Similarly, a 2019 survey by the Federal Deposit Insurance Corp. showed that 83% of households with bank accounts visited a bank branch in 2018, down just slightly from 86% in 2017. The share of households with bank accounts visiting a branch one to four times a month also increased compared to 2017. Although the national trend of in-person branches may be in decline, South Carolina’s banking industry is growing, with First National Bank even developing

First National Bank has three established locations in the Charleston area, including one at 429 W. Coleman Blvd. in Mount Pleasant. The bank has plans to expand with three more branches and additional ATMs this year. (Photo/Teri Errico Griffis)

high-tech branches with advanced digital capabilities to keep up with quickly changing times. “All of our branches in Charleston fea-

ture interactive teller machines, where customers can engage in live discussions with tellers using video chat during extended hours — seven days a week, and

for 13 hours on weekdays — as well as our digital kiosks, where customers can learn about and shop for our products and services,” Delie said. CRBJ

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www.charlestonbusiness.com

July 26 - August 8, 2021

Credit Unions

With Branches in the Charleston Area, Ranked by Total No. of Members Company

Phone / Website / Email

Top Local Official(s) / Year Chartered

Navy Federal Credit Union 7255 Rivers Ave. North Charleston, SC 29406

888-842-6328 www.navyfederal.org

Boeing Employees Credit Union - BECU 5400 International Blvd. Charleston, SC 29418

Total Members

Total Assets

Total Loans

Mary McDuffie 1947

10,275,536

$144,468,996,333

$88,363,656,164

800-233-2328 www.becu.org memberservices@becu.org

Benson Porter 1935

1,301,450

$28,228,439,367

$12,541,759,305

Grow Financial Federal Credit Union 1585 Central Ave., Suite C1 Summerville, SC 29483

813-837-2451 www.growfinancial.org glrecon@growfinancial.org

Thomas Feindt 1955

217,546

$3,138,158,528

$2,243,099,637

South Carolina Federal Credit Union 2175 Credit Union Lane North Charleston, SC 29406

843-797-8300 www.scfederal.org ngeiger@scfederal.org

R. Scott Woods 1936

168,930

$2,309,984,686

$1,569,220,823

State Department Federal Credit Union 2009 Dyess Ave., Building F Charleston, SC 29405

843-806-4571 www.sdfcu.org sdfcu@sdfcu.org

Jan N. Roche 1935

90,129

$2,476,024,819

$1,154,137,007

S.C. State Credit Union 6750 Rivers Ave. North Charleston, SC 29406

843-747-2210 www.scscu.com info@scscu.com

James Kinard 1952

81,209

$1,208,560,153

$567,316,555

REV Federal Credit Union 200 Marymeade Drive Summerville, SC 29483

843.832.2600 www.revfcu.com info@revfcu.com

Jason Lee, Tara Smith 1955

66,839

$901,395,005

$691,541,455

CPM Federal Credit Union 1066 E. Montague Ave. North Charleston, SC 29405

800-255-1513 www.cpmfed.com admin@cpmfed.com

James Gergen 1955

59,767

$522,737,592

$238,626,801

Bayer Heritage Credit Union 309 N. Goose Creek Blvd. Goose Creek, SC 29445

843-820-6070 www.bayerhfcu.com memberservices2@bayerhfcu.com

Robert Burrow 1957

35,677

$609,412,115

$449,517,116

Carolinas Telco Federal Credit Union 4940 Centre Pointe Drive, Suite A North Charleston, SC 29418

843-723-5511 www.ctelco.org

Chris Dickman 1979

31,616

$568,743,831

$291,738,430

Nucor Employee's Credit Union 1000 Hagan Ave. Huger, SC 29450

843-336-6590 www.nucorcu.org info@nucorcu.org

Paul D. Chappell 1962

7,330

$56,859,943

$23,400,926

Santee Cooper Credit Union 612 Rembert C. Dennis Blvd. Moncks Corner, SC 29461

843-761-4001 www.santeecoopercreditunion.com sccu@santeecoopercu.org

Melynda Champion 1953

7,191

$70,279,737

$43,525,464

Latitude 32 Credit Union 1845 Sam Rittenberg Blvd. Charleston, SC 29407

843-556-4809 www.latitude32.org etelli@latitude32.org

Marcus R. Rhymer 1952

6,838

$64,861,286

$36,988,442

Berkeley Community Federal Credit Union 600 Main St. Extension Moncks Corner, SC 29461

843-761-8298 www.berkcofcu.com staff@berkcofcu.com

Max D. Jones 1960

3,441

$15,820,735

$4,361,179

C O Federal Credit Union 117 Spring St. Charleston, SC 29403

843-722-7656 www.cofederalcreditunion.com cofedcreditcu@cofederal.com

Natasha M. Velas-Step 1966

709

$3,138,708

$1,894,877

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com.

Source: National Credit Union Administration, March 2021 call report (latest available at time of publication) Researched by Paige Wills


IN FOCUS: FINANCIAL SERVICES

July 26 - August 8, 2021

www.charlestonbusiness.com 17

Accounting Firms

Ranked by No. of CPAs in the Charleston Area Company

Phone / Website / Email

Managing Partner(s) / Year Founded

CPAs / Accountants / Employees

Elliott Davis LLC 100 Calhoun St., Suite 300 Charleston, SC 29401

843-577-7040 www.elliottdavis.com elliottdavis@elliottdavis.com

Tim Grow, Cindy Brams 1920

44 44 81

Assurance and advisory, tax planning and preparation, business strategy and valuation, international tax, litigation support and forensic accounting, bookkeeping and payroll

Dixon Hughes Goodman LLP 525 E. Bay St., Suite 100 Charleston, SC 29403

843-722-6443 www.dhg.com info@dhg.com

Sarah Windham, Tricia Wilson 1959

41 64 80

Traditional audit and tax services, litigation support, forensic accounting, business valuation, transaction advisory services, corporate governance, health care consulting, sales tax compliance, cost segregation and R&D tax credit studies

Baldwin & Associates LLC 210 Wingo Way, Suite 202 Mount Pleasant, SC 29464

843-722-0785 www.baldwincpa.com

Stephen Moose, Alys Anne Dennis, Robert Baldwin 2003

17 26 31

Tax management, bookkeeping, tax prep, payroll services, estate planning

Moore Beauston & Woodham LLP 3520 W. Montague Ave., Suite 201 North Charleston, SC 29418

843-766-5010 www.fullservicecpa.com info@fullservicecpa.com

John B. Beauston 1992

11 19 24

Business sales and acquisition consultation; business valuation; tax planning and preparation; litigation support, attestation and bankruptcy services

Streetman, Jones & Powers LLC 171 Church St., Suite 240 Charleston, SC 29401

843-723-3133 www.cpacharleston.com jstreetman@cpacharleston.com

Brian R. Powers, James A. Streetman, Patrick F. Jones 1996

11 16 28

Individual and business tax planning and preparation audit, review and compilation services, government contracting, business valuation, tax resolution, succession planning, cash flow management and new business formation

Moody & O'Neal CPAs LLC 654 Coleman Blvd., Suite 200 Mount Pleasant, SC 29464

843-849-3000 www.moodycpas.com

Chris O'Neal, Lora Prevatte 2009

10 19 21

Traditional audit and tax services, bookkeeping, management advisory, trusts and estates, litigation support and business valuation, risk advisory, controller-to-go, cost segregation studies, R&D tax credit studies

Veris CPA 1156 Bowman Road, Suite 100-A Mount Pleasant, SC 29464

843-881-4477 www.veriscpa.com marketing@veriscpa.com

Melissa A. Kiddy, Justin K. Kiddy, Russell Deal 1986

10 27 33

Tax, audit and assurance, bookkeeping, outsourced CFO and consulting services for individuals and businesses in the Lowcountry; three locations

Welch, Roberts, Amburn & Hutto LLC 157 E. Bay St. Charleston, SC 29401

843-577-0148 www.wrahcpa.com info@wrahcpa.com

Andrew Preston, Franklin Amburn, Jeff Hutto 1976

9 12 14

Business advisory services, tax and estate planning, tax preparation and consulting services, client accounting services, financial statement preparation and assurance services

Jones, Pounder & Associates P.C. 7 Gamecock Ave., Suite 704 Charleston, SC 29407

843-571-3114 www.jonespounder.com

Joseph Beck, Douglas Pounder, Harry Jones, Douglas Szubski 1975

8 12 14

Audit of government contractors, employee benefit plans, not-for-profit entities, housing and urban development multifamily housing entities; peer review, business services, corporate and individual tax returns; consulting

Jarrard, Nowell & Russell 975 Morrison Drive Charleston, SC 29403

843-723-2768 www.jnrcpas.com admin@jnrcpas.com

Christopher C. Nowell, William A. Russell, William H. Jarrard 2005

7 16 25

Traditional accounting and income tax services, business advisory services, auditing, captive insurance consultation and auditing, business modeling and valuations, wealth management

Legare Bailey & Hinske LLC 1100 Queensborough Blvd., Suite 100 Mount Pleasant, SC 29464

843-766-0400 www.lbhcpas.com info@lbhcpas.com

Ben Newton, Joseph A. Hinske 1998

7 7 9

Tax preparation and planning, accounting and auditing, estate and trust planning and compliance; business consulting and litigation support and business valuation

Accountfully 1567 Meeting St., Suite 100 Charleston, SC 29405

843-501-2774 www.accountfully.com hello@accountfully.com

Brad Ebenhoeh, Meredith Ebenhoeh 2012

6 35 35

Outsourced bookkeeping and accounting, tax preparation and planning, CFO advisory services, consulting

Johnson Lambert LLP 100 Brigade St. Charleston, SC 29403

843-414-0330 www.johnsonlambert.com info@johnsonlambert.com

John Prescott 2003

6 7 8

Provides audit, tax and consulting services to the insurance industry and alternative risk entities, associations and other nonprofits, and employee benefit plans

The Lanning Group LLC 235 Magrath Darby Blvd., Suite 140 Mount Pleasant, SC 29464

843-416-8784 www.thelanninggroup.com emily@tlgtax.com

Carrie S. Lanning 2019

5 8 10

Boutique tax practice located in Mount Pleasant that focuses on high wealth individuals, estate and trust planning and small businesses; tax planning and strategies; client relationships

Riser, Gibbons & Carpenter LLP 1417 Remount Road North Charleston, SC 29406

843-554-5600 www.rmgcpas.com admin@rmgcpas.com

Glenn D. Gibbons 1951

5 5 10

Accounting and auditing, tax preparation and planning; litigation support; estates and trusts; individual and business consulting services; bookkeeping and other small business services

Hood & Selander CPAs LLC 856 Lowcountry Blvd., Suite 100 Mount Pleasant, SC 29464

843-884-1099 www.hscpasc.com scott@hscpasc.com

Scott Hood 1974

4 8 8

Tax return preparation, tax planning, bookkeeping, financial statement preparation, small business consulting

Supporting Strategies South Carolina 748 Stucco Lane Mount Pleasant, SC 29464

843-452-3173 www.supportingstrategies.com/south-carolina bstrickland@supportingstrategies.com

Brad Strickland 2003

4 13 7

Bookkeeping, outsourced accounting and operational support

Davis & Co. CPAs P.O. Box 1552 Mount Pleasant, SC 29465

843-881-3315 www.davisandcocpas.com zoe@davisandcocpas.com

Zoe M. Davis 2010

3 6 6

Assurance, tax and consulting services to non-profit organizations, employee benefit plans and homeowner associations

Ferira, Ainsworth & Co. LLC P.O. Box 41697 North Charleston, SC 29423

843-722-7676 www.contractorcpa.net joe.ferira@contractorcpa.net

Joseph W. Ferira, T. Dale Ainsworth 1978

3 4 6

Accounting and consulting for construction companies

Jackson CPA Firm LLC 721 Long Point Road, Suite 404 Mount Pleasant, SC 29464

843-856-0301 www.jacksoncpafirmsc.com frank@jacksoncpafirmsc.com

J. Franklin Jackson 1998

3 4 5

Accounting, auditing, tax return preparation and planning; bookkeeping, computer services and small business planning

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com.

Services

Researched by Paige Wills


18

IN FOCUS: FINANCIAL SERVICES

www.charlestonbusiness.com

July 26 - August 8, 2021

Accounting Firms

Ranked by No. of CPAs in the Charleston Area CPAs / Accountants / Employees

Company

Phone / Website / Email

Managing Partner(s) / Year Founded

Jan Waring Woods CPA LLC 119 W. Luke St., Suite A Summerville, SC 29483

843-261-0096 www.jwwcpa.com jan.waringwoods@jwwcpa.com

Jan H. Waring Woods 2012

3 6 6

Full service accounting firm offering accounting, audit, tax compliance and consulting services to small and mid-size companies; company, trusts, estates and individual tax return preparation services

McGuire & Co. LLC 1100 Queensborough Blvd., Suite 201 Mount Pleasant, SC 29464

843-577-5533 www.mcguirecpa.com officemanager@mcguirecpa.com

DJ Barnhill, Sharon C. Hartley 1982

3 3 5

Financial statement compilations, reviews, write-up, business advisory services, income tax planning, estate and retirement planning; individual, partnership trust, estate tax returns

Solomon, Hardwick & Hardwick LLC 1160 Folly Road Charleston, SC 29412

843-406-6680 www.solomonhardwick.cpa cpas@solomonhardwick.com

Katherine Hardwick, Lynda S. Hardwick, Zachary M. Solomon 1997

3 5 6

Payroll, cash flow management, succession planning, new business formation, internal controls, small business accounting, QuickBooks services, tax preparation and planning for individuals, small businesses, trusts and estates

Taylor, Miles & Associates 1940 Trolley Road, Suite A Summerville, SC 29485

843-875-1774 www.taylormilescpa.com lmiles@taylormilescpa.com

Lori A. Myers Miles, Dawn Mayers 1987

3 3 9

Tax preparation and planning, accounting for businesses and individuals, QuickBooks, estates and trusts, business startup and entity selection

Thiem McCutcheon Winkler CPAs P.A. 1040 eWall St. Mount Pleasant, SC 29464

843-725-3838 www.tmwcpas.com info@tmwcpas.com

Samuel B. Winkler, J. Ben McCutcheon III, David E. Thiem 2009

3 6 7

Tax preparation and planning; compilation and reviews; business consulting and QuickBooks consulting

Ceterus 4900 O’Hear Ave., Suite 100 North Charleston, SC 29405

800-571-6119 www.ceterus.com marketing@ceterus.com

Derek Carter, Christopher Rossie 2008

2 2 49

Automated accounting and bookkeeping, financial and non-financial industry and brand benchmarking, automated financial insights, franchisor reporting, tax return prep and filing

Glaser & Co. LLC 1859 Summerville Ave. Charleston, SC 29405

843-849-0179 www.glasercompany.com cpa@glasercompany.com

Erik M. Glaser 2006

2 5 6

Audit, review, compilation services; affordable housing and nonprofit client services; tax preparation services and internal control consulting

Greene Finney LLP 39 Farmfield Ave. Charleston, SC 29407

843-735-5805 www.greenefinney.com rebekah.whitacre@gfhllp.com

Emily Sobczak, Larry J. Finney 1996

2 6 6

Audit, advisory, review, compilation, and outsourced accounting and payroll with focus on local government, nonprofits and small and medium businesses

Lightheart Sanders & Associates 835 Low Country Blvd. Mount Pleasant, SC 29464

601-898-2727 www.lsacpafirm.com kevin@lsacpafirm.com

Kevin Lightheart, Jared Sanders 1975

2 3 3

Business and individual tax, accounting, small business consulting, QuickBooks and non profit organizations, financial statement audit, review and compilations, compliance reviews

Moss & Yantis CPA Firm 272 W. Coleman Blvd., Suite 100 Mount Pleasant, SC 29464

843-606-2349 www.mycpafirm.org info@mycpafirm.org

Deanna R. Moss, Christa Yantis 2010

2 6 9

Full-service accounting firm offering tax, audit and accounting services; niche markets include nonprofits and small businesses

Richard B. Homes CPA LLC 102 Wappoo Creek Drive, Suite 11 Charleston, SC 29412

843-795-0819 www.rhomescpa.com info@rhomescpa.com

Richard B. Homes 2000

2 6 10

Tax preparation and tax planning for businesses, individuals, trusts and estates; accounting and bookkeeping, full payroll services, IRS problems and issue resolution, Quickbooks advisors, business consulting, small business mergers and acquisitions

Smith, Kesler & Co. PA 1127 Queensborough Blvd., Suite 106 Mount Pleasant, SC 29464

843-388-1704 www.skandco.com peevans@skandco.com

Phillip E. Evans 1978

2 3 3

Audit, review and compilation services; corporate tax planning; corporate tax preparation with concentration in the construction industry

Dennis L. Gore LLC 3293 Ladson Road Ladson, SC 29456

843-767-7891 www.dlgorecpa.com dennis@dlgorecpa.com

Dennis L. Gore 1990

1 4 8

Strategic business planning, corporate, partnership, nonprofit, trust and individual taxes, Quickbooks training, IRS negotiations, reviews, compilations, bookkeeping

James M. Lopez CPA LLC 210 S. Cedar St., Suite 4 Summerville, SC 29483

843-879-8272 www.jmlcpallc.com james.lopez@jmlcpallc.com

James M. Lopez 2009

1 2 2

Tax preparation and tax planning for individuals and businesses, tax planning for business startups, business consulting and IRS help

The Roberts CPA Firm P.A. 537 Long Point Road, Suite 103 Mount Pleasant, SC 29464

843-388-8601 www.robertscpafirm.com ray@rrobertscpa.com

Ray L. Roberts 1997

1 3 4

Business and tax prep planning, tax planning for tax savings, business valuations, retirement planning and asset management, family tax and financial services

Stacy E. Wiggins CPA P.C. 1409 Ashley River Road Charleston, SC 29407

843-556-5567 www.sewcpa.com stacy@sewcpa.com

Stacy E. Wiggins 2003

1 2 2

Individual tax, business tax, tax planning, bookkeeping and write-ups, QuickBooks and small business consulting

Swamp Fox CPA LLC 402 Old Trolley Road, Suite 109 Summerville, SC 29485

843-508-8130 www.swampfoxcpa.com scott@swampfoxcpa.com

Scott A. Leister 2015

1 4 5

Tax preparation and planning, accounting, bookkeeping, business advisory services, assurance, CFO and controller service, outsourced services

Tillman Accounting LLC 311 W. Hudson Ave. Folly Beach, SC 29439

843-817-9136 julietillman@bellsouth.net

Julie A. Tillman 2009

1 1 1

Tax preparation and planning, small business consulting and bookkeeping

Accountable Bookkeeping & Business Services LLC Virtual Only Summerville, SC 29486

843-972-4208 www.accountablebookkeepingllc.com abbsllc@gmail.com

Kristina Singer 2003

2 2

Accounting and bookkeeping services specialized in small and medium size businesses utilizing QuickBooks software for bookkeeping, banking, payroll, year-end prep like W2's, 1099's, insurance or comp audits; remote or online services provided

Breakthrough Financial Solutions 925 Wappoo Road, Suite D Charleston, SC 29407

843-571-6497 www.breakthroughfinancialsolutions.com caroline@breakthroughfinancialsolutions.com

Mark Gilbert 2005

3 3

Accounting, bookkeeping, payroll and tax services

Gold Star Business Services LLC 3239 Heathland Way Mount Pleasant, SC 29466

843-696-4735 www.goldstarbusinessservices.com elaine@goldstarbusinessservices.com

Elaine Domin 2009

1 2

QuickBooks setup and training, bookkeeping, accounting, cloud services, tax services

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com.

Services

Researched by Paige Wills


At Work

BUSINESS DIGEST | PEOPLE IN THE NEWS | HOT PROPERTIES | PEER TO PEER

People in the News

Business Digest

ACCOUNTING Moore Beauston & Woodham LLP has promoted Joseph C. Pascale to senior accountant in the Charleston office. Pascale received his Bachelor of Arts in Pascale accounting from CUNY Queens College. He has more than six years of experience in public accounting and has been with the firm since 2019. He is a member of the S.C. Association of Certified Public Accountants.

ARCHITECTURE

Leatherman Terminal recognized as SC Project of the Year S.C. Ports’ Hugh K. Leatherman Terminal has been named 2021 S.C. Project of the Year by the state’s section of the American Society of Civil Engineers. This award recognizes the complex engineering and construction process behind the Leatherman Terminal’s Phase One and recognizes the collaboration among numerous partners needed to realize the $1 billion project.

Summerville Medical launches robotic spine surgery

Summerville Medical Center has launched a minimally invasive spine surgery program. Surgeons Chris Battista and Ben Schell kicked off the program by performing the hospital’s first spine surgeries in April. Program procedures include anterior cervical fusion, total disc replacement, lumbar microdiscetomy, laminectomy, kyphoplasty, lumbar fusion and robotic spine surgery.

WestEdge Foundation wins permit for flooding, drainage

The S.C. Department of Health and Environmental Control’s Office of Ocean and Coastal Resource Management has issued a critical area permit to the WestEdge Foundation, which will allow WestEdge to continue its work to improve drainage and reduce flooding events along Lockwood Boulevard, Hagood Avenue and Fishburne Street.

Nonprofits Sea Island Habitat, OLMCO join to repair homes

Our Lady of Mercy Community Outreach and Sea Island Habitat for Humanity have partnered to complete critical home repair projects across the Sea

Islands and beyond. The partnership will allow Sea Island Habitat for Humanity to increase its capacity to complete projects while giving OLMCO’s clients access to home repair services. In year one, the organizations hope to repair six to 15 homes.

Crews Subaru donates to Lowcountry Food Bank

Crews Subaru and Subaru of America have donated $86,561 to Lowcountry Food Bank. The donation will create more than 500,000 meals for those who struggle with hunger. The check represents the proceeds from the Subaru of America and Feeding America 100 Million Meal campaign this spring and a Crews Subaru Matching Fund campaign.

Charleston Naval Complex RDA fulfills pledge to IAAM

Charleston Naval Complex Redevelopment Authority and Naval Base Museum Authority will begin the process to transfer $11 million to the International African American Museum to fulfill the Charleston RDA board’s 2018 agreement to support the museum effort.

Frampton Construction recognized in Best Places to Work SC

Frampton Construction Co. LLC has been named as one of the Best Places to Work in South Carolina. They are among 81 companies named to this year’s list. Frampton was also a recipient of the honor in 2020.

Call Experts earns award for customer support

Call Experts has been recognized with the Association of TeleServices International 2021 Award of Excellence for the 12th year. This award is presented annually. Independent judges are contracted to evaluate telecommunications and call center services for response time, courteousness, accuracy of call, knowledge of account and overall impression of call.

Lisa Grant and See Wee Homes donates to My Sister’s House

See Wee Homes and owner and Realtor Lisa Grant announced a $1,000 contribution to My Sister’s House, a shelter for those experiencing domestic violence. See BUSINESS DIGEST, Page 21

Architecture Plus has hired Molly Park as an architect. Park attended Clemson University where she received her Bachelor of Arts in architecture with a focus Park in financial management in 2020. She is currently working towards her master’s degree at Clemson and her licensure. Park will be providing clients with architectural design, 3D project modeling, interior design and selections services.

BANKING United Community Bank has selected Lori Swan, commercial relationship manager in Mount Pleasant, for the bank’s 2021 Leadership Academy. She Swan will participate in key meetings and leadership roundtables with the bank’s executive management at Clemson University’s Center for Corporate Learning in Greenville. Swan was chosen alongside 13 other employees from throughout United’s footprint in Georgia, North Carolina, Tennessee and South Carolina. Bank of America Private Bank has hired John Sherman as a senior vice president and private client manager in Charleston. Sherman has more than 32 years of experience in private banking and wealth management. He earned a Bachelor of Science in marketing at See PEOPLE, Page 21


20

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July 26 - August 8, 2021

Money supply indicates inflation just getting started for nation’s economy

T Target your market in an upcoming issue of the Charleston Regional Business Journal

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he Fed believes that the recent acceleration in inflation reflects temporary factors such as hiring bonuses, disruptions in the supply chain, and a rebound from prices that were depressed during the recession. That story is beginning to wear thin. STEPHEN D. Its forecasts of SLIFER inflation have consistently undershot reality for the past year and they are not getting any better. It currently anticipates that its targeted inflation measure, the core personal consumption expenditures deflator, will rise 3% this year. Good luck with that! Inflation in the first five months of this year has been steadily accelerating and is showing no sign of slowing down. We expect the core PCE to rise 4.2% this year. The driver of this unanticipated pickup in inflation is money supply growth. Its growth rate has soared since the recession began in March of last year and, as Milton Friedman taught us back in the 1970’s, “Inflation is always and everywhere a monetary phenomenon.” When countries rapidly expand growth in their money supply, they experience high inflation for a sustained period of time. But yet our Fed chairman dismisses that notion and tells us that we need to “unlearn” that relationship. We do not buy it. The Fed’s inflation forecasts have been way off the mark since the recession started in March last year. In June of last year it expected the core PCE deflator to rise 1.5% in 2021. They have raised it every quarter since. In September it became 1.7%. In December it was 1.8%. By March it climbed to 2.2%, and in June to 3%. But even 3% is still too low. We know what happened to this inflation measure every month through May. The only way its 3% forecast for the year can be correct is if the core PCE rises 0.15% per month for the final seven months of the year. But in the first five months of the year the monthly increases averaged 0.43% or three times as fast as the Fed envisions for later this year. The price component of the monthly purchasing managers’ report has climbed to 92.1. An index of 50.0 indicates prices were unchanged in that month. It has risen steadily since April of last year to its current level of 92.1, which is its highest level since 1979. There are no signs of any softening of prices for manufacturers through the middle of 2021. Ditto for service sector firms. We can see this in virtually all com-

modity prices. Crude prices have climbed to $75 per barrel. Gas prices have risen to $3.12 per gallon. Non-energy prices have continued to surge and are at their highest level in a decade. At the same time the extreme labor shortage is forcing firms of all types — but particularly those firms in low-paying industries such as leisure/hospitality and retail to offer one-time sign-on bonuses and, in many cases, boost the hourly wage to or above $15 per hour. In the past year firms such as Target, Starbucks, Wayfair, Costco, Walmart and McDonalds have all boosted wages. Their CEO’s see the handwriting on the wall. Prior wage rates were too low. As these large firms raise their wages, smaller ones will follow. This is not a one-off event that will run its course in a matter of months. At a time when qualified, willing workers are hard to come by, workers are exercising their newfound power and demanding both higher wages and improved working conditions. The pandemic and recession are triggering profound changes in the labor market, which are still in their infancy. Those firms who do raise wages say they are able to find the workers they need to keep pace with surging demand. With corporate earnings and stock prices at record high levels, firms generally are well-positioned to withstand higher wages. All of this suggests that the inflation increases we are seeing are not going to be temporary. Yes, shortages of materials are contributing to the current runup. Yes, a catch-up from prices that were depressed during the recession like airfares and hotel room rates also is a factor. But we are convinced that a major cause of higher inflation is rapid growth in the money supply. After a surge in money growth in March, April and May of last year, the Fed’s monthly purchases of U.S. Treasury securities are causing money growth to climb steadily at a 15% pace. Faster money growth is going to result in faster inflation for some time to come. We believe that inflation will track much faster than the Fed would like at least through the end of this year. We anticipate a 4.2% increase in the core PCE deflator this year and a 5% gain is not out of the question. After missing its inflation forecast for a year and one-half, when will the Fed give up on its belief that the jump is temporary? The higher it climbs, the greater the pressure on the Fed to cut its purchases of Treasury securities, raise reserve requirements or, ultimately, raise the funds rate. CRBJ

Reach Daniel Island economist Stephen Slifer at Steve@NumberNomics.com.


July 26 - August 8, 2021

www.charlestonbusiness.com 21

Business Digest

People in the News

BUSINESS DIGEST, from Page 19

Berkeley Chamber marks opening of new Popeyes Louisiana Kitchen

The Berkeley Chamber of Commerce has celebrated the grand opening and ribbon cutting ceremony for the new Popeyes, located at 460 U.S. Highway 52 N. in Moncks Corner. The Popeyes in Berkeley County is owned and operated by the Rinna Restaurant Group. Franchisees include Mark, Jane and Alex Rinna. The company started in 2000, and the Moncks Corner location will be its 16th store, with 10 in Augusta, Ga. and six in Charleston.

tity Multiple Award Task Order Contract. This is issued from the U.S. Army Corps of Engineers, Louisville District, for Environmental Engineering Services throughout its mission areas. The contract covers investigation and remediation of hazardous, toxic and radioactive wastes in soil and groundwater, particularly in complex geologic and hydrogeologic settings. Hana-Bay West was one of five firms selected for the contract, task orders for which will be competed over the next five years.

Life Cycle Engineering recognized as a Best Place to Work

Life Cycle Engineering has made the 2021 list as one of the best places to work in South Carolina. The company has received this award every year since the inception of the program. The program was designed to identify, recognize, and honor the best employers in the state.

North Charleston engineering firm awarded $40 million contract

Hana Engineers and Consultants LLC and its JV partner Bay West LLC have been selected to compete for a $40 million Indefinite Delivery, Indefinite Quan-

Fore Foundation raises $5,000 for Alzheimer’s Association

The Fore Foundation raised $5,000 for the Alzheimer’s Association at its inaugural Fore Alz Golf Classic. The foundation’s 2021 focus aims to support the Alzheimer’s Association’s Longest Day initiative by raising funds and awareness for care, support and research.

PEOPLE, from Page 19

Miami University in Oxford, Ohio. He has Series 7, 63 and 65 securities licenses as well as the SC Life and Health Insurance licenses.

CONSTRUCTION Frampton Construction Co. LLC has promoted seven team members. Brittany Jones has been named executive assistant, Katherine Panke has Wall been named senior marketing manager, Brandon Reisser has been named senior preconstruction manager, Brendan Gilbert and Adam Wall have both been named senior project managers, and Shamrock Thompson and David Urban have been named senior superintendents. Savannah Hardscapes Construction has hired Zach Brimacomb as an assistant superintendent at the company’s headquarters in Hardeeville. Brimacomb has experience as a heavy equipment operator and foreman in the

construction industry. As an assistant superintendent, he will coordinate with and oversee the performance of projects throughout the state.

Brimacomb

Mashburn Construction has hired Julianne Dunning as director of business development for its Charleston location. Dunning has nearly 15 years Dunning of experience in the construction industry. She will be responsible for building upon existing and cultivating new relationships in Charleston and surrounding areas.

ENGINEERING Thomas & Hutton has hired Charles Hill and Ben Taylor as designers in its Charleston office. Hill earned a Bachelor of Science from the University of South See PEOPLE, Page 22

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July 26 - August 8, 2021

People in the News PEOPLE, from Page 21

Carolina in 2020 and is learning Thomas & Hutton’s standards for plan production and design through its “Up and Ready” training program. Taylor graduated Taylor from Clemson University with a Bachelor of Science in civil engineering and recently interned with the Charleston County Public Works Department where he assisted with storm water projects. GEL Engineering LLC has named Bryan J. Williams as a principal of the firm. Williams is the managing engineer of the firm’s civil engineering group, which Williams has doubled in the past six years under his leadership. He joins principals Tom Hutto, John McLure, Keith McCullock, Bob MacPhee and Jim Posda. Constantine Engineering Associates LLC has hired Sisi Liang as an electrical engineer. Liang has more than 13 years of

experience in a variety of project types including medical, commercial, municipal and educational. She has a Bachelor of Science in electrical engineering from Liang State University of New York at Binghamton with a minor in mathematics.

GOVERNMENT The Berkeley Chamber of Commerce has appointed Todd Buddin, president and CEO of First National Bank of South Carolina, as president for 2021. Buddin Buddin succeeds Clarence Wright, formally the southern division manager of gas operations at Dominion Energy, who has taken a new position in Georgia. The Public Relations Society of America has awarded Tiffany Norton, Dorchester County public information officer, with an accreditation in public relations. The APR credential demonstrates a practi-

tioner’s expertise and competency in the field of public relations. Fewer than 2% of PR practitioners achieve this status. It is considered the gold standard for communication professionals.

HOSPITALITY/TOURISM Wild Dunes Resort, a Hyatt property on Isle of Palms, has hired Brian Richards as director of food and beverage. Richards previously worked as the opening director Richards of food and beverage for Hotel Drover in Fort Worth, Texas, and has more than 15 years of food and beverage leadership experience. The Kiawah Island Club has promoted five to new positions. Katie Standifer was named the new member services manager. Jacki Allston was promoted to director Standifer of membership and member services. Ashley Courtright was named systems

and projects manager. Taryn Sheasby was promoted to lead the property management department previously established by Courtright, and Kim Souza was promoted to director of clubhouse operations.

LAW GaffneyLewis LLC has promoted Randi Lynn Roberts, Nashiba Boyd and Robert Blain to equity partner status. Roberts and Boyd are based in the firm’s Columbia office and Blain is the managing partner for the Charleston office.

Roberts

NONPROFIT Charleston Promise Neighborhood has hired Abby Martin as marketing and philanthropy manager. Martin previously worked at Riverbanks Zoo & Garden in Columbia as donor engagement specialist.

Martin

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Viewpoint

VIEWS, PERSPECTIVES AND READERS’ LETTERS

There are some bright spots in the housing shortage The urgent need for more housing seems to be on the minds of every business, community and real estate leader in the Upstate right about now. And the need for residential solutions doesn’t appear to be stopping anytime soon. There is a demand for more doors in the downtowns; large housNATE ing development TRUNFIO requests dominate county council and planning agendas across the region; community leaders remain concerned over the lack of affordable housing; and home construction companies are working to meet the need and catch up from delays caused by the COVID pandemic. While the need for affordable places to live is strong, there are solutions to create or recapture housing stock. And real estate investors who can pivot their strategies to meet this need can find tidy profits that also benefit communities across the Upstate. One of the best places to do this is with workforce housing.

Workforce housing is becoming one of the brightest prospects in the housing market, and it is a market segment that has long been overlooked. It is proving to be immune to pandemics and recession. Workforce housing is designed for people in middle-income professions such as police officers, firefighters, teachers, health care workers, retail clerks, etc. Think 2020’s essential workers, and the type of housing they need, and you get the right idea. As long as essential work is needed, there will also be a housing demand for those workers. Because of the demand it creates, workforce housing is considered by many to be a smart area for multifamily investors to consider in the long term. While Class A multifamily investments saw some uncertainty during the pandemic, Class B and Class C properties retained their solid performance. By 2018, the inventory of Class B and C workforce housing units declined to about 52% of the total multifamily housing stock, down from 59% at the end of 2009. On average, about 120,000 Class B and C units are lost each year due to obsolescence, gentrification, or conversion into Class A units. Yet demand for these asset classes is

strong, which means real estate investors can profit. For example, investors across the country are buying Class C properties that have been neglected, capital starved, or poorly managed, and renovating them to the level of Class B communities that are nice places for much of America’s workforce to live. Many of the multifamily bridge loans Lima One Capital handles are for properties like this. We exist to create opportunities for our customers and employees by financing real estate investors who are building, improving and stabilizing neighborhoods, and helping investors recapture housing units to provide quality workforce housing is a key way that we do this. We recently closed a loan for an investor to purchase a multifamily property on Poinsett Highway just past Cherrydale. As of the end of 2020, less than a quarter of 112 units on this property were available for rent. After repairing this single project, 75-plus units of affordable housing stock will return to the market within five miles of downtown. This dovetails well into both the city and county’s 2040 comprehensive plans and fills a housing need for a key part of Greenville’s population. In addition to recapturing housing

stock through multifamily and FixNFlip projects, the other prime way to create quality housing is through construction. Build-to-rent trends can provide some of this by creating new homes that people can live in without the upfront investment of a home purchase. For many in the workforce, new rental housing provides a perfect option — especially in a markedly seller’s market where home sale prices are spiking like they are now and it’s hard to purchase a home even when making multiple offers. It is time for everyone to start finding new and better solutions to the housing crunch, especially when it comes to workforce housing. It can’t be fixed overnight, but it can be fixed if we think and work together. CRBJ

Nate Trunfio is the senior director of sales and marketing for Lima One Capital, the nation’s premier lender for real estate investors. For more information, visit limaone.com.

We want to hear from you Write: Andy Owens, Executive Editor Charleston Regional Business Journal 1802 Dayton Street, Suite 101 North Charleston, SC 29405 Email: aowens@scbiznews.com


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