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GSA Business Report - May 23, 2022

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VOLUME 25 NUMBER 9 ■ GSABUSINESS.COM

Part of the

Occupancy, rates on the rise for SC hotels

News network names new chief

By Christina Lee Knauss

Jason Thomas takes over as executive editor for SC Biz News. Page 6

H

Goodwill on the go The nonprofit’s Upstate/ Midland branch puts job training services on tour Page 9

All roads lead to ... Columbia?

Infrastructure tips scales for Mark Anthony Brewing Page 14

Fuel Diversity

Researchers develop self-repairing hose that could advance use of hydrogen fuel. See Page 8.

Best in state

Economic developer from Upstate awarded for innovative programming Page 19

INSIDE

Leading Off........................... 2 SC Biz News Briefs................. 3 C-Suite................................. 4 In Focus: Ports, Logistics and Distribution......................... 13 List: Motor Freight Lines ..... 17 Bonus list: Employee Benefits Brokers............................... 18 At Work............................... 19 Viewpoint............................23

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Contributing Writer

otels around South Carolina continue to see strong demand for rooms despite reduced service levels caused by ongoing hiring challenges, according to first quarter 2022 report released by Colliers South Carolina. According to the report, the average hotel occupancy rate around the state was 66.83% during the first quarter, up from 59.08% percent in the third quarter of 2021 and 49.76% in the fourth quarter of that year. Average daily rates for hotel rooms and revenue per available room are continuing to increase and, as a result, to offset a rise in operating costs during the first quarter, the report said. On average, hotels are reporting a 20%-30% increase in operating expenses over pre-pandemic levels largely because of staffing challenges. Hotels are dealing with this ongoing worker shortage by reducing daily housekeeping services, training employees to perform duties in multiple areas of service and increasing automation. The average daily rate for hotel rooms statewide continues to rise and was $126.74 in See HOTELS, Page 6

Bosch ramps up ICE, electrification production By Molly Hulsey

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mhulsey@scbiznews.com

osch has a new project on the rise in Anderson, company President Mike Mansuetti told hundreds of business leaders gathered from across the 10 counties for Upstate SC Alliance’s annual meeting on May 13. Mansuetti couldn’t share much more than that, but he did tell the audience that the com-

pany’s South Carolina team is ramping up production for both its internal combustion engine and electrification powertrain production. “We see by 2030, electrification growing to about 30% of the market, but the rest of it will still be traditional what we call internal combustion engine or some variation of the ICE, for example, with a hybrid power charge,” he said. “So there’s still a lot of technology that remains to be developed, especially if we’re

In Focus

Buy American Act

Domestic content in construction materials may surge in October. Page 13

going to meet those CO2 and sustainability targets that we all want to meet that will continue to require improvements in, let’s say, the classic combustion technology.” Bosch’s way forward will focus on achieve a balance between innovation, such as the company’s forays into long distance hydrogen fuel cell research, and its legacy with longstanding customers. See BOSCH, Page 12


Leading Off

BRIEFS | FACTS | STATEWIDE NEWS | C-SUITE

How friendly is your paycheck?

S

martAsset’s took a look at what it called “paycheck friendliness,” a way to measure how a typical paycheck fares when considering purchasing power, income growth, unemployment to reflect the counties with the lowest withholding and greatest take-home pay. We’re not doing so well in South Carolina by this measure. Every county in several states did better than the best county in the Palmetto State, which was Lancaster County with a 41.81 paycheck friendliness rating. The best in the nation was Williamson County, Tenn., with a rating of 100, but even the 10th highest in the Volunteer State ranked at 86.17. Georgia’s best was Forsyth County at 57.25 and North Carolina’s best was Union County at 57.08.

Rank Country, State

Purchasing Unemployment Power Rate

Income Growth

Paycheck Friendiness index

1

Lancaster

1.56

4.8%

6.5%

41.81

2

Beaufort

1.66

3.7%

3.6%

40.40

3

York

1.57

4.2%

4.1%

39.54

4

Charleston

1.49

3.9%

4.2%

39.34

5

Greenville

1.53

3.9%

3.8%

39.28

6

Berkeley

1.48

4.1%

4.1%

3.78

7

Lexington

1.52

3.5%

2.5%

37.88

8

Dorchester

1.47

4.0%

3.0%

37.50

9

Anderson

1.34

4.3%

4.0%

37.16

10

Kershaw

1.35

4.2%

3.6%

36.85

Source: SmartAsset.com

ON THE

RECORD

“So there’s still a lot of technology that remains to be developed, especially if we’re going to meet those CO2 and sustainability targets that we all want to meet, that will continue to require improvements in, let’s say, the classic combustion technology..” — Mike Mansuetti, president of Bosch North America

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SC Biz News Briefs

Benefit Advisors of Charleston

IS NOW BUT OUR OBJECTIVE REMAINS THE SAME.

Developers recently celebrated the topping off of The Standard, a 17-story, 441,980-square-foot housing tower in downtown Columbia at the corner of Assembly and Washington streets. (Photo/Provided)

COLUMBIA

Melinda Waldrop, Columbia Regional Business Report

Downtown student housing tower tops off milestone for building project

The Standard, a 17-story, 441,980-square-foot housing tower in downtown Columbia, has taken a major step toward completion. Chicago-based real estate development and construction engineering firm Clayco recently celebrated the topping off of the project at the corner of Assembly and Washington streets. Crews have poured 17,000 yards of concrete and installed 1,500 tons of rebar, according to a news release. In collaboration with developers CRG, Landmark Properties and architect Lamar Johnson Collaborative, Clayco is scheduled to complete construction of The Standard in summer 2023. The tower will feature 247 fully furnished units with 678 beds and amenities including a rooftop pool, hot tub, grilling stations, jumbotron television, resort-equipped fitness and wellness center, golf simulator, game-day lounge, and group and private study lounge space.

WALTERBORO

Vero Advising is a benefits consulting firm that aims to create a magnetic culture within organizations utilizing affordable and effective health and welfare plans for employees. Our focus is on insurance and non-insurance based solutions that are attractive to teams and allow for easy and efficient administration of the benefits offered. We work with employers to build a benefit package that improves access and cost for employees and their families. tom@truthinbenefits.com | 843-412-2583

www.truthinbenefits.com

HELP DRIVE THE UPSTATE TO A BRIGHTER FUTURE JUNE 6–12, 2022

Ross Norton, Charleston Regional Business Journal

Consumer products manufacturer sinks $1.2M into Walterboro plant, brings jobs Trison Wells, a consumer products manufacturer, plans to establish operations in Colleton County. The company’s $1.2 million investment will create 35 new jobs, according to the S.C. Commerce Department. Trison Wells is a full-service contract manufacturing company that specializes in liquid filling for household, personal and beauty care products, according to a news release. “We are proud to provide high-quality and agile services that help foster manufacturing in the USA,” Trison Wells General Manager Jonathan Johnson said in the release. “We have invested and will continue to invest in people and technology to build strong capabilities in South Carolina. We are grateful for the warm welcome we have received from Colleton County and the state of South Carolina and look forward to developing a fruitful partnership with the community.” Located at 1756 Industrial Road in Walterboro, Trison Wells’ Colleton County facility will expand the company’s manufacturing operations and accommodate growth to meet increasing demand, the release said. RIOS LEADS NEW BRANCH OF

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

SBDC

PAGE 29 VOLUME 15 NUMBER 8 ■ COLUMBIABUSINESSREPORT.COM

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Administrator Guzman brings personal touch to SBA position

Order up!

Another Broken Egg Cafe to anchor mixed-use project. Page 4

VOLUME 28 NUMBER 9 ■ CHARLESTONBUSINESS.COM

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FULL STEAM AHEAD SC Ports notches another record month Page 17

Tower topping

Student housing project celerates milestone. Page 3

By Christina Lee Knauss

By Melinda Waldrop

I Downtown digs

1813 Main St. set to welcome first residents this fall. Page 7

Historic honor

Orangeburg native first Black male Teacher of Year. Page 8

Screen shot

The Nick names new executive director. Page 10

INSIDE

Upfront ................................ 2 SC Biz News Briefs ................ 3 In Focus: Life Sciences ....... 21 List: Life Science Companies ..........................................28 At Work ..............................29 Viewpoint ........................... 31

BREW WITH A VIEW Biekeller Columbia plans to open a brick-and-mortar later this year at the CanalSide Plaza at Sola Station. (Rendering/Provided)

Riverfront brewery to open later this year By Melinda Waldrop

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mwaldrop@scbiznews.com

olumbia’s first riverfront brewery is expected to open in the fourth quarter of this year. Bierkeller Brewing Co., which has brewed traditional German beer out of Swamp Cabbage Brewing Co. since 2015 and has regularly played host to seasonal pop-up beer gardens, is opening a full-production brewing facility, biergarten and restaurant at the CanalSide Plaza at Sola Station, located along the Historic Columbia Canal on the banks of the Congaree River. “It’s exciting,” Bierkeller owner and founder Scott Burgess told the Columbia Regional Business Report. “We’re putting ourselves in a pioneering position in a lot of ways. The riverfront,

as much as everyone talks about the potential for development, we learned still has a lot of hurdles. This presented really the best opportunity in a space that’s already there that’s very close to what we’re known for.” The brewery and biergarten will take up a large portion of the ground-floor retail space at Sola Station, with glass windows facing the water. Mashburn Construction is the project contractor, while Sherer & Associates is the architect. “We’re pouring concrete floors and building it from the ground up,” said Burgess, who said an adjacent space is also an option for a future catering and private event setup. Bierkeller plans to hire servers, bartenders/ pourers and kitchen staff soon. Employment See BREW, Page 10

mwaldrop@scbiznews.com

sabella Casillas Guzman learned firsthand what makes a successful small business growing up in California, where her father owned a chain of veterinary practices. “What I admired most about my father was his relationship in the community. Everyone who walked in that door was so special to him and vice versa,” Guzman said. “The impact that he made in his neighborhood was truly remarkable.” Guzman, sworn in as the 27th Administrator of the Small Business Administration on March 17, 2021, spoke with the Columbia Regional Business Report after a stop at Benedict College as part of a bus tour supporting National Small Business Week. Benedict became one of two historically Black colleges and universities to launch a Women’s Business Center in 2020. “Focusing always — from having worked in his business — on that customer-first experience is what drives me,” said Guzman, who represents the nation’s 32.5 million-plus small business owners. “I look through the lens of a customer first at all times in our design and implementation. That informs everything else, because you look at who that client is — and it’s a changing face of entrepreneurship — you look at what their needs are and seek to transform the SBA to better serve them. … My dad was able to pursue his American dream, and my grandmother before him. I really appreciate the value See GUZMAN, Page 6

Expert perspectives

Looking for an industry expert? We’ve got you covered. Page 13

ColumbiaBusinessReport.com

Occupancy, rates on rise for SC hotels

H

Hydrogen hose

Self-repairing hose could help diversify fuel supply. Page 6

New hire

SC Biz News names executive editor. Page 8

Supply chain woes Concerns for shipping, trucking industries persist. Page 19

INSIDE

Photo/SC Ports

Business is personal for SBA administrator By Melinda Waldrop

Upfront ................................ 2 SC Biz News Briefs ................ 3 In Focus: Ports, Logistics and Distribution........................ 13 List: Motor Freight Lines.....25 Bonus List: Employee Benefits Brokers ................27 At Work ..............................28 Viewpoint .......................... 30

I

mwaldrop@scbiznews.com

sabella Casillas Guzman learned firsthand what makes a successful small business growing up in California, where her father owned a chain of veterinary practices. “What I admired most about my father was his relationship in the community. Everyone who walked in that door was so special to him and vice versa,” Guzman said. “The impact that he made in his neighborhood was truly remarkable.” Guzman, sworn in as the 27th Administrator of the Small Business Administration on March

17, 2021, spoke with the Columbia Regional Business Report after a stop at Benedict College on May 4 as part of a bus tour supporting National Small Business Week. Benedict became one of two historically Black colleges and universities to launch a Women’s Business Center in 2020. “Focusing always — from having worked in his business — on that customer-first experience is what drives me,” said Guzman, who represents the nation’s 32.5 million-plus small business owners. “I look through the lens of a customer first at all times in our design and implementation. That See SBA, Page 10

SCBIZNEWS.COM MAY/JUNE 2022

Contributing Writer

otels around South Carolina continue to see strong demand for rooms despite reduced service levels caused by ongoing hiring challenges, according to first quarter 2022 report released by Colliers South Carolina. According to the report, the average hotel occupancy rate around the state was 66.83% during the first quarter, up from 59.08% percent in the third quarter of 2021 and 49.76% in the fourth quarter of that year. Average daily rates for hotel rooms and revenue per available room are continuing to increase and, as a result, to offset a rise in operating costs during the first quarter, the report said. On average, hotels are reporting a 20%-30% increase in operating expenses over pre-pandemic levels largely because of staffing challenges. Hotels are dealing with this ongoing worker shortage by reducing daily housekeeping services, training employees to perform duties in multiple areas of service and increasing automation. The average daily rate for hotel rooms statewide continues to rise and was $126.74 in the first quarter, up from $106.02 in the fourth quarter 2021. Revenue per available room soared to $85.64 compared to $53.15 at the end of 2021. In Columbia, hotel occupancy dipped at the end of 2021 but rose to 66.15% by the end of the first quarter of 2022. Average daily rates were $114.76, and

VOLVO’S ROAD AHEAD What’s next for Ridgeville

HOMEGROWN

Putting SC’s oyster industry on the map

See HOTELS , Page 23

Accelerated accomplishment Port of Charleston played key role in Mark Anthony Brewing’s rapid launch. Page 15

CharlestonBusiness.com

A supplement to Charleston Regional Business Journal, Columbia Regional Business Report and GSA Business Report

SCBIZmag.com

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Executive Editor - Jason Thomas jthomas@scbiznews.com • 864-568-7570 UPSTATE NEWSROOM Editor - Ross Norton rnorton@scbiznews.com • 864.720.1222 Staff Writer - Molly Hulsey mhulsey@scbiznews.com • 864.720.1223 Associate Editor, Custom Publishing Division Jim Tatum jtatum@scbiznews.com • 864.720.2269 MIDLANDS NEWSROOM Editor - Melinda Waldrop mwaldrop@scbiznews.com • 803.726.7542

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WHAT IS THE STIFFEST CHALLENGE FACING YOUR INDUSTRY RIGHT NOW? Managing pandemic-induced supply chain challenges by deploying creative solutions.

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DESCRIBE YOUR OPERATION: Inland Port Greer extends the Port of Charleston’s reach 212 miles inland by offering daily overnight rail service to and from Charleston. An expansion of Inland Port Greer is underway that will greatly increase cargo capacity and rail capabilities.

DESCRIBE YOUR ROLE: Every day, my team and I get to play a role in moving cargo that companies and communities rely on, such as facilitating delivery of BMW engines and transmissions for just-in-time, just-in-sequence production at the plant. We also handle imports of raw rubber for Michelin tires, shoes and apparel for Adidas, and solar panels for First Solar, to name a few customers..

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Our “Coffee With…” page features an Upstate business executive sharing insights about their business, the industry in which they work and the community in which they live. Where’s the coffee, you ask? Well, that occurs in an accompanying video. We sit down with the executive – over coffee – to see what else is on their mind. accessories. This makes up about 75 percent of our business. The other 25 percent is our services business where we engineer and install/construct network systems. The telecommunications industry is growing rapidly. Over the past few years, we have added capacity in the US and Globally to accommodate growth in these markets. This growth is because the demand for fiber-based networks is at an all time high with further growth projected.

Today, we’re “having coffee” with Jody Gallagher, President and CEO, AFL. Headquartered in Spartanburg, AFL was formed in 1984 and commenced manufacturing operations in 1985. At that time, AFL manufactured one product – Optical Ground Wire – a fiber optic cable placed in the topmost position of transmission lines where it shields conductors from lightning while also providing a telecommunications path. Today, AFL manufactures a wide range of fiber optic cable as well as connectivity products and equipment essential for communications. With more than 6,000 associates worldwide, and well over 1,300 (and growing) in the Upstate of South Carolina, AFL has expanded its operations locally and abroad to accommodate rapid growth and has established a leadership position in the industry. AFL HAS EXPANDED SEVERAL MANUFACTURING LOCATIONS, INCLUDING A FEW IN SPARTANBURG. TELL US ABOUT THE MARKETS YOU SERVE AND WHY BUSINESS IS BOOMING. AFL manufactures fiber optic network solutions for four main markets - the energy market, service provider, enterprise & hyperscale (cloud DC’s). Specifically, we manufacture fiber optic cable, connectivity, and equipment such as fusion splicers and test and inspection products, plus conductor

AS YOU LOOK 10 YEARS DOWN THE ROAD, WHAT IS YOUR FOCUS? HOW ARE YOU GOING TO KEEP UP THIS MOMENTUM? Over our 35+ years in the industry, AFL has grown organically and through acquisitions. With respect to organic growth, we will continue to excel in this area given current and future demand. Take 5G for instance, 5G delivers new capabilities for users which drives more data traffic which means more cell towers will need to be built to handle the traffic. More fiber optic cable is needed to connect these cell sites and we not only manufacture the cable, but accessories needed for an entire network.

services are more efficient and resilient. Then there is digital transformation which is rapidly accelerating. Fiber enables these different markets to expand their services and as they expand, we will continue to invest in these areas to enable communications. HOW HAS THE $1.2T INFRASTRUCTURE INVESTMENT AND JOBS ACT AFFECTED AFL? The IIJA earmarked $65B for continued broadband adoption and deployment plus $65B for grid modernization. In addition, $7.5B is earmarked for a national network of EV charging stations. Broadband, grid modernization, electric vehicle charging stations – upgrading and/or expanding these areas involves fiber optic connectivity. Many of our customers will be recipients of this funding and we’ve already seen an increase in orders to provide for this. AFL is well-positioned to support our customers through this demand. Predicting the exact timing of this government spending is unclear right now, but we will be ready! WHAT’S YOUR BIGGEST CHALLENGE TODAY? Aside from workforce issues, our biggest challenge today is supply chain disruptions. I would imagine many companies see the same challenges. Getting the supplies needed so that we can fulfill customers’ orders and support the expected increase demand is vital. WHAT’S NEXT FOR AFL?

Many of our customers are expanding deployments of fiber to support not only 5G but Fiber-to-the-Home, business services and more. Other customers are receiving massive amounts of funding from state and federal governments to expand broadband access to underserved areas. Utility cooperatives are developing their current broadband infrastructure for coop members to expand services. Larger utilities are now modernizing their electric grid, so their

Each year we set goals that are communicated companywide. This way we are all on the same trajectory. We will continue to hire and train talented individuals; listen to our customers to find unique solutions that enable better and faster communications; focus on research and development; and continue to position ourselves for sustainable growth.

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Thomas named executive editor of SC Biz News By Ross Norton

L

rnorton@scbiznews.com

ouisville, Ky., native Jason Thomas has been named executive editor of SC Biz News, a statewide business news organization that includes a magazine, newspapers, websites, digital newsletters, special publications and events. In his new role, Thomas will lead the editorial efforts of SCBIZ Magazine, GSA Business Report, Charleston Regional Business Journal and Columbia Regional Business Report. He also oversees the editorial efforts of South Carolina Lawyers Weekly, North Carolina Lawyers Weekly and Charlotte-based Mecklenburg Times, a real estate publication. Thomas started learning his way around the organization last week from the Greenville office of GSA Business Report, which will be his home base. “From startups to ownership to the C-suite, SC Biz News has been the trusted source in giving a voice to South Carolina’s diverse and growing business ecosystem — addressing challenges as well as opportunities,” Thomas said. “It’s a tradition that will continue under my watch. I

look forward to putting down roots here and having a front-row seat to documenting South Carolina’s dynamic economy. Rick Jenkins, group publisher of SC Biz News, welcomed Thomas to the organization. “Jason comes to us with plenty of journalism experience from working at a variety of traditional newspapers in the Midwest,” Jenkins said. “He joins us directly from Louisville where he managed a large newsroom at a progressive daily business journal serving an metropolitan area of about 1.3 million people.” Thomas most recently was managing editor of Louisville Business First, in Louisville, Ky. His journalism career spans nearly 25 years, which includes stints at the News and Tribune/Southern Indiana Business Magazine in Jeffersonville, Ind., and the Indianapolis Star. “I’m humbled to join the award-winning team at SC Biz News,” Thomas said. “I take seriously the charge of upholding SC Biz News’ standard of being the go-to source for South Carolina business leaders to grow their operations and streamline their lives through exclusive content and inclusive events. Like any business,

SC Biz News has room to grow, so you can expect to see an expanded presence digitally and on social media, as we look to enhance delivery of content across multiple platforms to business leaders across The Palmetto State, while continuing to offer our full slate of print products.” Jenkins said Thomas’ experience in digital content will add a deeper dimension to SC Biz News content. “More and more readers prefer to consume content digitally and Jason has an uncommon commitment to digital journalism,” Jenkins said. “Our readers will see changes in the way we deliver news. And options for the types of business news they consume will increase.” In addition to print and digital news, SC Biz News also produces SCBIZtv, a statewide YouTube site with more than 200 archived business videos. The organization also produces the S.C. Manufacturing Conference and Expo, the largest manufacturing event in the state. Thomas said he chose to live in the Upstate for his family — fiancée Dani and children Sebastian, 6, and 2-yearold Simon — because it fits his lifestyle: “Outside of work I enjoy family time,

Thomas most recently served as managing editor of Louisville Business First. (Photo/Provided)

mountain-biking, golfing, reading and exploring parks and urban spaces on my bike — ending my ride at a local brewery, of course.” Thomas can be reached at jthomas@ scbiznews.com. Reach Ross Norton at rnorton@scbiznews.com.

HOTELS, from Page 1

the first quarter, up from $106.02 in the fourth quarter 2021. Revenue per available room soared to $85.64 compared to $53.15 at the end of 2021. In Columbia, hotel occupancy dipped at the end of 2021 but rose to 66.15% by the end of the first quarter of 2022. Average daily rates were $114.76, and revenue per available room was $75.58. Occupancy in Greenville/Spartanburg was 72.08% with an ADR of $99.37, and revenue increased to $71.68. In Charleston, occupancy was near peak-season rates at 75%, with an ADR increase to $161.99 and revenue per room at $123.53. The Hilton Head/Beaufort area had the highest average daily rate at $229.70, while Myrtle Beach had a higher-than-expected occupancy rate of 57.47%. There were several hotel sales around the state during the first quarter, including the 164-room Red Lion Inn & Suites in Columbia, the 121-room Woodspring Suites and 174-room La Quinta Inn and Suites in Charleston, the 202-room Beach House Resort in Hilton Head/Bluffton and a 129-room LaQuinta Inn & Suites in Myrtle Beach. Anticipated new hotel openings for the rest of the year include the 144-room Cambria Hotel on Lady Street in downtown Columbia, set to open in June, and the 187-room Grand Bohemian Hotel, which overlooks the Reedy River in downtown Greenville, set to open by the fourth quarter of this year.

The Grand Bohemian Hotel, and its incoming restaurant shown here, is slated for a late 2022 opening in Greenville. (Rendering/Provided)


May 23-June 5, 2022

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Greenville Chamber awards community leaders By Molly Hulsey

L

mhulsey@scbiznews.com

ast year, the Greenville Chamber had its first annual meeting at the Greenville Drive stadium for social distancing purposes. In 2022, the not-so-new coronavirus was less of a concern. Bringing a business community together in the wake of two distanced years, more so. “By the most traditional metrics, the pace of our recovery has far exceeded even our most optimistic expectations, and during this time, the chamber has continued to help Greenville move the ball forward,” Greenville Chamber CEO Carlos Phillips told the crowd gathered on the field and in the stands. He spotlighted the Greenville Chamber’s creation of a community data platform and the spread of its minority business accelerator into the Charleston and Columbia markets in 2021. “And the participants have seen almost $30 million in new revenue,” he said of the minority business accelerator graduates. “I see many of these business leaders here tonight.” The chamber lauded other business and community leaders for their work toward economic recovery and ongoing growth

with a lineup of awards throughout the ceremony: Becky Ballenger, a chamber ambassador since 2019, was announced the Ambassador of the Year, an award sponsored by AFL. Katherine Smoak Davis of Smoak Public Relations was awarded The Athena Leadership Award, sponsored by Hughes Agency. The award honors individuals who assist women in reaching their full leadership potential and work to improve the quality of life for others, according to a news release. Judge Merl Code and David Lominack, co-chairs of Greenville’s Race, Equity and Economic Mobility Commission, were presented the Buck Mickel Leadership Award, sponsored by Duke Energy. The award honors those who have had a dramatic impact on the community by playing a leadership role in solving critical community issues or providing visionary leadership to a major community development project. Rich Hagins, CEO of US&S and former chairman of the Greenville Chamber, received the 2021 Chairman’s Award. Mary F. Duckett, community leader of Greenville’s Southernside neighborhood and advocate for the construction of Unity Park, was honored with the F. Ben Haskew Collaboration Award, sponsored by Furman University, which recognizes Upstate leaders who display progressive visions

Greenville Chamber marketing coordinator Megan Campbell throws baseballs into an eager audience at the annual meeting on May 11. (Photo/Molly Hulsey)

and a partnership approach to responsible growth in the Upstate, according to the release. Joseph M. Pazdan of McMillan Pazdan Smith, a graduate of Leadership Greenville Class 27, received The Leadership Greenville Distinguished Alumni Award. Joshua C. Tew, a broker with Pintail Capital, was recognized for his leadership in the redevelopment of Laurens Road and support of minority-owned businesses with The Max Heller Neighborhood Improvement Award. Dionne Sandiford, owner and threadmaster of Corporate Stitch was presented the Minority Business of the Year Award, sponsored by Bank of America. The award

honors a local, independently and minority-owned company that has been in business for a minimum of three years and is a graduate of the Minority Business Accelerator program. Harvest Hope Food Bank was announced as the 2021 Small Business of the Year, an award sponsored by Trehel Corp. Kamber Parker, interim executive director at GAPS and owner of The YoPro Know, was honored with the Young Professional of the Year Award, sponsored by Michelin North America. Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.

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May 23-June 5, 2022

Researchers working to make self-repairing hydrogen hose market ready

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Staff Report

research group at Clemson University has developed a self-repairing hose to dispense hydrogen as part of the nation’s effort to diversify its fuel supply. Hoses that are used to pump hydrogen must withstand high pressure and are prone to cracking when exposed to high and low temperatures and the normal wear and tear of everyday use, according to Marek Urban, who leads the group. The hose’s inner layer is critical, because that is where the damage occurs, he said in a news release. The hose that Urban and his team have developed makes the inner layer out of a self-healable copolymer matrix with Innegra fibers — a composite that heals itself like skin when it cracks. A more durable hose for pumping hydrogen could help lower the cost of a sustainable fuel for buses, trucks and heavy equipment, the news release said. The only byproducts from vehicles powered by hydrogen fuel cells are heat and water, with no greenhouse gas emissions. Urban has been developing self-healing materials for more than 20 years and has considered applications ranging from paint that repairs its own scratches to military vehicles that patch their own bullet

holes to self-repairable pet toys. He discovered the hose project while searching for additional uses. “The idea came from the need for this type of application and combining our technology at Clemson with something society needs,” Urban, the J.E. Sirrine Foundation Endowed Chair in Advanced Polymer Fiber-Based Materials, said in the news release. Urban is conducting his research with financial backing from the U.S. Department of Energy and the National Science Foundation. He and his team have used a tabletop robot to repeatedly bend the hose they have developed. Urban said they have shown the hose can withstand up to 10,000 damage-repair cycles under temperatures as high as 158 degrees and as low as 40 degrees below zero. The most recent version of the hose is undergoing additional testing at Sandia National Laboratories, Savannah River National Laboratory, and Pacific Northwest National Laboratory, Urban said. He expects the hose to prove it can stand up to 25,000 cycles by the end of the year. Hydrogen dispenser hoses now in use tend to develop cracks after 1,000 cycles, according to the release. The next step will be to work with a manufacturer to make the new hose at a

Marek Urban and Ph.D. student Samruddhi Gaikwad work with device used to make hoses. (Photo/Provided)

larger scale. Urban has previously received funding for self-repairing materials from the National Science Foundation and the Department of Defense. He has published his research findings in journals including Science and Nature. “Dr. Urban’s research into hydrogen hoses is a testament to his leadership in the field of materials science and engineering and serves as an excellent exam-

ple of how basic research leads to realworld application,” Kyle Brinkman, chair of the Clemson University Department of Materials Science and Engineering, said in the release. “This work not only has the potential to lead to a more sustainable fuel supply but also helps inspire the next generation of scientists and engineers. I congratulate Dr. Urban on his success and look forward to seeing what’s next for his self-healing materials.

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May 23-June 5, 2022

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Goodwill Industries takes employment services on the road By Ross Norton

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rnorton@scbiznews.com

oodwill Industries of Upstate/Midlands unveiled Mission Mobile in a pair of ceremonies this month that the organization says will help employers find workers and people find jobs by overcoming a transportation challenge. The organization has for years provided employment and career services at Job Connection sites across its 16-county territory. Mission Mobile will make those services more easily available to what Goodwill says is a significant portion of the population that doesn’t have access to transportation. Palmetto Goodwill has a similar plan. “Over my nearly 30 years with Goodwill, the needs of jobseekers and businesses has evolved over time,” Goodwill President and CEO Pat Michaels said in an announcement May 4 at the Goodwill store on North Pleasantburg Drive in Greenville. “Goodwill is always looking for ways to adapt and meet those needs. Mission Mobile will allow us to make those services and opportunities more accessible to our neighbors across the state. That’s a good thing.” The lack of transportation options has long been cited by health and human service experts, employers, and community leaders as a barrier to accessing employ-

ment and education, Michaels said. Mission Mobile is a 30-foot air conditioned, wheelchair-accessible vehicle that offers Job Connection services such as skills assessment, job interviews, training tools and career coaching. Mission Mobile had scheduled appearances and job fairs into July. The services are free, both to the job seekers and the companies and organizations looking for employees. “So the bus goes to those locations — and the location could be a business, it could be a community center, it could be a church, whoever wants to partner with us,” said Brock Koonce, marketing and public relations manager for Goodwill Industries of Upstate/Midlands. “Lots of nonprofits are there that may not provide career services, like resume building, skills training, interviewing skills. What this bus does is offer opportunities, in line with businesses, to provide onsite interviews. And if the businesses don’t have the capacity to do onboarding, we can also do that on the bus.” Mission Mobile has 10 workstations and is equipped with Wi-Fi, printers and other tools that would be found in a brickand-mortar employment offices, including employment specialists to walk companies and candidates through the process. Koonce said the organization works with

Pat Michaels, CEO of Goodwill Industries, dedicates the Mission Mobile at the first of two ceremonies introducing the initiative to the community. (Photo/Provided)

employers throughout the territory dealing with the challenges of a shrinking labor pool. “So there is a desperate need out there for companies that are looking for people,” he said. “One of the big reasons for the bus was, obviously there are many transportation deserts around the Upstate and Midlands where individuals or households either don’t have a car or they don’t have good access to the bus line,” Koonce said. “So the idea is that we take the Job Connection to them, to their neighborhood, or to businesses that are close to them.” Many of the would-be workers are looking for any kind of work, he said, but many of them have already launched themselves

into the working world and come back ready to reach higher. “Some of them come in looking for any job but maybe later they come in looking for a better job,” he said. “We want to channel them through so that they become workers that can find their career. We can help find everything from smaller jobs that can get you on your feet right now, or all the way through a career for tomorrow.” Koonce said Goodwill Industries of Upstate/Midlands is the first in the state to put a bus on the road, but the Lowcountry’s Palmetto Goodwill has acquired a bus that is being upfitted for the same kind of purpose — to take their services on the road. Reach Ross Norton at rnorton@scbiznews.com.

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May 23-June 5, 2022

Administrator Guzman brings personal touch to SBA By Melinda Waldrop

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mwaldrop@scbiznews.com

sabella Casillas Guzman learned firsthand what makes a successful small business growing up in California, where her father owned a chain of veterinary practices. “What I admired most about my father was his relationship in the community. Everyone who walked in that door was so special to him and vice versa,” Guzman said. “The impact that he made in his neighborhood was truly remarkable.” Guzman, sworn in as the 27th Administrator of the Small Business Administration on March 17, 2021, spoke with the Columbia Regional Business Report after a stop at Benedict College as part of a bus tour supporting National Small Business Week. Benedict became one of two historically Black colleges and universities to launch a Women’s Business Center in 2020. “Focusing always — from having worked in his business — on that customer-first experience is what drives me,” said Guzman, who represents the nation’s 32.5 million-plus small business owners. “I look through the lens of a customer first at all times in our design and implementation. That informs everything else, because

SBA Administrator Isabella Casillas Guzman steps off the Small Business Week tour bus at Benedict College on Wednesday. (Photo/Melinda Waldrop)

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May 23-June 5, 2022

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you look at who that client is — and it’s a changing face of entrepreneurship — you look at what their needs are and seek to transform the SBA to better serve them. … My dad was able to pursue his American dream, and my grandmother before him. I really appreciate the value of (entrepreneurship) and want to be able to bring it more communities with equity.” Extending that equity has become especially important as the nation’s small business continue to recover from repercussions stemming from the COVID-19 pandemic. The National Federation of Independent Businesses’ Small Business Optimism Index decreased in January to 97.1, down 1.8 points from December, with 22% of business owners reporting inflation as their single most important problem. Supply-chain tie-ups and difficulty in hiring enough workers are two other concerns causing small business confidence to shrink. A report by technology company Meta, cited in a March 2022 Business Insider article, found that businesses run by underrepresented founders were 14% more likely to report lower sales than other businesses. The report, which surveyed 5,324 U.S. small business leaders and more than 24,000 worldwide, found that 51% of Black-owned businesses were experiencing record-low sales compared to January 2021, versus 36% of all businesses in the U.S.

Despite those numbers, Guzman said minority- and women-owned businesses, perhaps out of pandemic-generated necessity, are forming the backbone of the country’s economic recovery, noting that those businesses have created two-thirds of the 7.4 million jobs created since President Joe Biden took office. “No different than any other time over the past 10 years, women and people of color are the ones starting businesses at high rates,” she said. “We saw 5.4 million people decide to start a business in 2021. “That’s 20% higher than any year on record, and so this tour is to celebrate all those new entrepreneurs, those established businesses that have had to pivot and adapt during the pandemic, and make sure that we can get them the resources they need to survive. And that’s capital to fund businesses, that’s market access to grow businesses with revenue opportunities with the federal government or online through digital markets, and that’s networks and support.” In 2021, the SBA administered nearly $416.3 billion in emergency relief to more than 6 million small business through initiatives including the Paycheck Protection Program, COVID-19 Economic Injury Disaster Loans and loans targeted at hard-hit industries such as retail and hospitality. “As they reopen and recover their revenues, they’re still facing headwinds, and the president is committed to dealing with

some of the challenges around inflationary pressures, the global supply chain disruptions, as well as workforce challenges,” Guzman said. “SBA has a role to play. Of course, our small businesses are a big part of expanding our productive capacity in the United States. That means making more here in America and strengthening our supply chain and strengthening our infrastructure.” There are calls to expand that role from those who support the SBA becoming involved in more direct loans to small business owners going forward, particularly smaller-dollar loans that bigger banks and even Community Development Financial Institutions find hard to make work with their balance sheets. Noting that loans through pandemic federal relief averaged just more than $40,000, Guzman said the SBA would welcome the chance to “help our lending network meet needs of borrowers and leverage the balance sheet of the federal government to underwrite these loans and have them on their books. That could help our lenders as well. “We don’t want to replace or compete. We want to be that true lender of last resort and support the private financial markets. … It was part of our proposals within Build Back Better and the president’s agenda. While Congress did not move forward on that, we continue to study it and explore the possibility of SBA

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doing direct lending. We have the authority. We’ve been doing it since 1953 when we started doing disaster loans, and we’ve proven in 2021 with COVID EIDL that we’ve been effective at getting funds into the hands of businesses.” Guzman is also focused on digital technology, an area of emphasis during her tenure as director of the California Office of the Small Business Advocate. In that role, she created Get Digital CA, an initiative aimed at increasing technology and e-commerce adoption. “We know that micro-entrepreneurship flourishes where there’s high-speed internet,” she said, adding that the $1.2 trillion bipartisan Infrastructure and Investment Jobs Act signed into law Nov. 15 commits more than $60 billion to expanding rural broadband access. Guzman said as the country continues to forge a post-pandemic path, the SBA is committed to expanding access to its services through broader distribution networks in multiple languages. “I feel there’s so much opportunity that could be unlocked if we better supported all of our small businesses and innovative startups,” she said. “I think it’s a unique moment in time and history, especially because of the pandemic and attention on small businesses and the impact that they have.” Reach Columbia Regional Business Report editor Melinda Waldrop at 803-726-7542


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May 23-June 5, 2022

BOSCH, from Page 1

In 2021, the private company’s total global sales increased by 10%, bringing Bosch’s revenue to $90 billion. About 8% to 9% of the company’s total annual investment goes to research and development. “Any customer, whatever their power train needs are, we want to be there to help serve them and help continue this journey in electrification,” Mansuetti said. In Bosch’s Charleston plant, that means transforming its former gasoline and diesel fuel pump operations with a $80 million investment into a team that focuses in on both electrification and high-pressure fuel injection technologies. According to previous reporting, the Charleston investment was set to reach the facility by 2023 as part of the company’s $250 million earmarked for U.S. mobility solutions in 2021. Bosch’s production for the auto industry makes up 60% of its business alongside its appliance, power tool, energy tech and surveillance tech operations, according to the company president. Several years ago, the company redubbed that branch “mobility solutions” to reflect the growing number of other vehicles added to their portfolio. Since Mansuetti first began working in the fuel pump industry 30 years ago, engineers have enhanced the fuel injection pressures by 200 or 300 times. And with additional developments come additional challenges. Bosch’s team

Mansuetti spoke to hundreds of attendees at Upstate SC Alliance’s Annual Meeting on May 13 along with Sen. Lindsey Graham. (Photo/Molly Hulsey)

is working to offset the increased weight of 1,000 pounds with today’s batteries. “So, when we look at electrification, we’re looking at also, for example, the dynamics on chassis control systems,” he said. “Charleston is also producing our ABS antilock breaks, for example. This is a basic part of now the chassis control and function. And together with our steering technology – we’re moving towards steer

by wire, so actually disconnecting the steering wheel from the steering rack if you will – there’s a lot more things coming in electrification.” The Upstate will also play a role in Bosch’s future involvement in the electric vehicle market, said Mansuetti. Especially on the tail of the manufacturer’s achievement of CO2 neutrality in 2020 as the “first, largest industrial conglomerate

worldwide to do that.” Bosch’s $250 million investment will also go toward streamlining operations with artificial intelligence and internet of things technologies, thus offsetting some labor needs, according to a previous report. Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.

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InBuyFocus American Act changes enhance reshoring trend PORTS, LOGISTICS, AND DISTRIBUTION LIST: Motor Freight Companies, Page 17 LIST: Employee Benefits Brokers, Page 18

By Molly Hulsey

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mhulsey@scbiznews.com

ome South Carolina-based suppliers are feeling a burst of demand as domestic content percentages for materials used in public projects are set to go into effect in October. The Buy American Act – not to be confused with the Reagan-era Buy America Act – was first created in 1933 to give preference to domestic manufacturers. The bill has evolved over the years, but in January 2021, the Biden Administration passed an executive order sparking “the most robust changes to the implementation of the Buy American Act in almost 70 years,” according to a White House news release. The order raised the percentage of domestic content required in public projects from today’s 55% to 60% starting Oct. 22, according to a document published by Federal Register. By 2024, the required percentage will climb to 65%, and in 2029, to 75%. The initial increase to 60% will occur several months from publication of the final rule, according to the Defense Department, General Services Administration and National Aeronautics and Space Administration document. Andrew McAllister, partner with Washington D.C-based Holland & Knight, shared in a webinar that materials “manufactured in the United States” is not defined in the law, but that it implies a step beyond assembly. “Then the second piece of that test is that the cost of the components from the U.S. must exceed a certain threshold of the cost of all components,” McAllister said, adding that iron and steel products undergo more strict standards. Under the new ruling, foreign iron and steel must make up less than 5% of

Photo/File

the total cost of components purchased. “It doesn’t mean you can never offer a foreign product,” he said. “It’s more so you’re going to be penalized for providing that foreign product.”

Bringing it all home

The Buy American Act may often come up in conversations about building materials and construction products, but it also dictates procurement for other forms of federal infrastructure as well – for example, procedure trays used in tax-funded operating rooms. COVID-19 wreaked havoc on medical product supply chains Greenville’s CPT Medical depended on for their company’s specimen collection supplies in 2020. “A lot of it was not just made in China, but one of the largest specimen collection manufacturers COPAN is in Italy, and BD is in Germany,” said Austin Shirley, vice president of commercial operations at CBT Medical’s holding company Diversified Medical Healthcare. “So there was very little U.S. production.” So, out of necessity, Diversified Medi-

cal Healthcare certified its viral transport medium for distribution and launched production. Being one of few domestic manufacturers, Shirley said they couldn’t fill orders fast enough. An ongoing shortage of polypropylene wrap used to sterilize surgical instruments later prompted Diversified Medical Healthcare to seek out U.S. partners Hanes Fabrics. So, when a federal customer came to CBT Medical with a request for medical supplies and the Buy American Act requirements in hand nine month ago, the OEM supplier was poised for action. Now, about 67% of CBT products go toward facilities used by this federal customer, he said. It hasn’t always been easy to find domestic suppliers – especially for plastics, textiles and nitrile rubber components– but Shirley said they’ve uncovered many U.S.-based suppliers able to supply CBT’s custom surgical trays.

Teasing out impacts

Jarrett Martin, president of Mar-Mac Industries, an industrial wire supplier for

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concrete reinforcement in McBee, said he has witnessed a positive uptick in U.S. suppliers used by the Florida Department of Transportation. But, at this time, he said it is hard to pinpoint the booming demand for MarMac products to the Buy American Act alone. More than 90% of his business comes from outside the Palmetto State. “It has been difficult to tease out impacts to our business just with all the other noise going on in the supply chain disruptions, and before that, the pandemic, and before that, the steel tariffs from Section 232 by the Trump administration,” Martin told SC Biz News. “We expect a positive impact.” Section 232 placed a 25% ad valorem tariff on steel imports from all countries except Canada and Mexico as a national security measure, according to the Executive Office proclamation. Turmoil in the ocean freight market, along with ongoing lockdown in China due to COVID-19, forced many contractors to reassess of their suppliers before the Oct. 22 requirements come into place. “Essentially, we saw demand snap back much more quickly than we expected after the spring of 2020, and nobody was ready for it,” Martin said. “Everybody in the supply chain had done the same thing. They had moved to conserve cash and take inventory down, expecting a big recession.” The rise in ocean freight prices and the uncertainty of import times has proved kind to Mar-Mac Industries so far. “As a domestic manufacturer, I’ve been well positioned to take advantage of that,” Martin said. Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.


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IN FOCUS: PORTS, LOGISTICS, AND DISTRIBUTION

May 23-June 5, 2022

LOGISTICAL MARVEL

Port of Charleston key to Mark Anthony project’s rapid launch By Melinda Waldrop

T

mwaldrop@scbiznews.com

hough two hours away, the Port of Charleston played a major role in making Mark Anthony Brewing’s ambitious, 1.3-million-square-foot brewing facility in Columbia a rapid reality. Among the many logistical feats that went into getting the $490 million investment up and running 346 days from its Nov. 30, 2020, groundbreaking was the shipment of 56 huge, stainless steel brewing tanks from German manufacturer Ziemann Holvrieka. “Here’s a remarkable photo,” Mark Anthony founder and CEO Anthony von Mandl said during a May 12 grand opening celebration at the facility off Shop Road in the Pineview Industrial Park. “Here’s four of our tanks on a barge. Ziemann Holvrieka has this remarkable facility where they build some of the highest-end tanks in the world on the Rhine River. The tanks are loaded on a barge, taken to the Port of Rotterdam, and loaded on a vessel to Charleston. Thank you, Port of Charleston, for being there. It really helped us on our project.” The successful transportation of the tanks is just one example of how the various project engineers and architects, along with general contractor Clayco, teamed up to accelerate a production schedule von Mandl said would normally take four to six years to complete. “The magnitude of this project is breathtaking,” von Mandl said. “Twenty-seven miles of stainless steel piping, 33 miles of steel roof framing and racks, 56 enormous stainless steel tanks, 126,000 tons of concrete, more than 600 people on the site during the peak of construction during the height of COVID. … Nothing about this project was normal. This was to be the most complex, advanced facility of its kind in the world, purpose-built with technology that had to be designed as we were building.”

Choosing South Carolina

Before all those wheels began turning, a decision had to be made. On Sept. 22, 2020, a Mark Anthony site selection task force arrived in Columbia for breakfast at the Governor’s Mansion. von Mandl, at home in Vancouver, couldn’t join that expedition because of COVID-19 travel restrictions, but he was well aware of the goings-on on at 800 Richland Street. “Your goal was to convince us to select South Carolina as the state to build the largest brewery built in the United States in the last 28 years and the most technologically advanced facility of its kind in the world,” he said. “We looked at 18 loca-

Mark Anthony Brewing launched its $400 million, 1.3 million-square-foot production facility in Richland County in less than a year. (Photo/Mark Anthony Brewing)

tions in five states and narrowed the field down to two. I can tell you now, Governor, truth be known, South Carolina was not in the lead when our team arrived that morning.” That changed as the Mark Anthony team heard what Gov. Henry McMaster, then-Secretary of Commerce Bobby Hitt, and Richland County economic development officials had to say. “Peggy (McMaster) hosted half of our team on what she called the kids’ table, and she charmed the team with her Southern hospitality and played an integral role in convincing us that South Carolina was the place to be,” John Sacksteder, president of Mark Anthony Brewing, said. “The governor was just as convincing. His deep pride in this state and this city was clear from the moment that we met him.” Also apparent were the forward-thinking steps the county had already taken to make the 160 acres 310 Mark Anthony employees now call homer readily habitable. “(The county) had the vision more than eight years ago to add infrastructure to this site — roads, natural gas lines, water, wastewater connection,” Sacksteder said. “Without that, we could have never even considered this piece of property.” By October 2020, the team decided South Carolina was the place to be, and ground was broken a month later. “Ten years ago, the land that we stand on today was a tree nursery with about two or three employees,” Richland County Council Chair Overture Walker said. “This was made possible because my colleagues in Richland County made the commitment to invest in economic development with the aim of creating quality career opportunities for our citizens and growing our community’s tax base and

attracting more industrial and commercial development. “We didn’t allow concerns about taxes to stand in the way of delivering job opportunities that will pay a livable wage for many of our residents. Instead, we took a resourceful approach and used all the tools at the county’s disposal for leveling the playing field and competing with other regions for economic development projects.” Ryan Coleman, director of the city of Columbia’s Office of Economic Development, told SC Biz News the Mark Anthony project is an example of what the county can accomplish when stakeholders work together. The facility was part of a record-setting $638.7 million in economic investment the county attracted in 2020, followed in 2021 by $359.6 million, the second-highest amount on record. “It’s about (removing) those impediments as early on as possible, so that the barriers to a company saying no aren’t there,” Coleman said. “When you’ve got the ability to control the site, and you can give the company the infrastructure that they need to go forward, that’s how you get something like this to happen.” Within 10 days of the groundbreaking, Clayco poured the first concrete slab, and the project was off, forging ahead through pandemic protocols and a step ahead of supply chain disruptions. “Four weeks later, the first structural and roofing steel was in place,” von Mandl said. “Had we started the project just one month later, we would have not been able to keep up with the steel required for the structural girders to keep going. If we tried to build the project today, it would probably take us two more years to get the steel.” Within three months and 100,000 work hours, the facility’s exterior walls

were erected. By March 2021, the roof was up, and “we had helicopters lifting 88 air conditioning units up to the roof in the midst of a driving rain storm,” von Mandl said. “Nothing was going to stand in our way, not even South Carolina occasional weather.” Filtration equipment, and those brewing tanks, arrived, put into place with the help of 46 laser-guided vehicles. The electrical substation, powered at a lightning pace by Dominion Energy, was activated. Front office furniture was installed, and test production runs began. In November 2021, the first salable case of Mark Anthony products — which include White Claw hard seltzer, Mike’s Hard Lemonade and Cayman Jack cocktails — rolled off the line and into of one 69 shipping bays. Mark Anthony’s Columbia investment included $10 billion in a system that captures and reprocesses all carbon dioxide created at the plant into carbonation for its beverages, $15 million in an advanced wastewater treatment system and $4 million in landscaping that includes more than 200 newly planted trees and a 29-acre employee park. “We’re not done yet,” von Mandl said. “Our long-term vision for South Carolina will see even more investment, including expanding the footprint of our facilities in years ahead. I’ll leave those details for another day. “This is a great day for Mark Anthony Brewing, the city of Columbia, the state of South Carolina. For me personally, it is a very significant moment. Thank you all for your commitment and believing in us. One final promise to the future Mark Anthony staff in South Carolina, and that is: We’ve only just begun.” Reach Columbia Regional Business Report editor Melinda Waldrop at 803-726-7542


May 23-June 5, 2022

IN FOCUS: PORTS, LOGISTICS, AND DISTRIBUTION

www.gsabusiness.com 15

Lufthansa order includes North Charleston-made aircraft By Molly Hulsey

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mhulsey@scbiznews.com

erman-based Lufthansa Group says it is modernizing its longhaul passenger with new purchases that include seven 787-9 Dreamliner jets from Boeing’s North Charleston plant. Built with lightweight composite materials, the 787 family has an airport-noise footprint that is 60% smaller than the previous generation of airplanes, making it ideal for Lufthansa Group airport communities, according to a news release. The purchase will bring Lufthansa Group’s total order for the 787 Dreamliner to 32 firm orders, with most expected for a 2022 to 2026 delivery, according to the release. Lufthansa also is a launch customer for Boeing’s 777X passenger airplane, with 20 firm orders. Fourteen 787 Dreamliner models were delivered in 2021, according to Boeing’s investor data, despite production and quality control snags during the past two years. Boeing and the Lufthansa Group also announced earlier this month that the airline group will continue its decision to strengthen Lufthansa’s cargo operations with an order for seven 777-8 Freighters, the industry’s newest cargo plane. The decision is a keystone of the German airline’s overhaul of its fleet since 2020. Over the past two years, 83 aircraft have been retired, while 33 have been added to the entire fleet, according to Lufthansa. The Group has also placed a new order for two 777 Freighters to add to its cargo fleet, providing extra cargo capacity in the near-term until the delivery of its first 777-8 Freighter. “With the selection of our newest freighter, Lufthansa continues its long history of firsts with Boeing airplane programs, becoming the first European customer for the 777-8 Freighter,” Ihssane Mounir, Boeing’s senior vice president of

Lufthansa’s most recent order for the 777s like this one also means work for the North Charleston plant, which makes the 787. (Photo/Provided)

commercial sales and marketing, said in the release. “With the investment in the 777 and 787 fleet, the Lufthansa Group will operate the most advanced, fuel-efficient twin-engine airplanes in the industry. Each of these airplanes reduces emissions by 15 to 25% compared to previous models with a noise footprint up to 50% smaller than their predecessors, helping to advance the Lufthansa Group’s sustainability objectives.” Boeing launched the new 777-8 Freighter in January and has already booked 34 firm orders for the model. The company says its 777-8 Freighter offers the highest payload and the lowest fuel use, emissions and operating cost per

metric ton of any large freighter. With nearly identical payload and range capabilities to previous models plus 30% better fuel efficiency and 25% better operating costs per metric ton, Boeing said the 777-8 Freighter will be the ideal choice as operators replace aging freighters later this decade. The 2021 Boeing Commercial Market Outlook projects a 70% increase in the global freighter fleet by 2040, including approximately 450 new large widebody freighters such as the new 777-8 Freighter and 777 Freighter, according to the new release. The first delivery of the 777-8 freighter is anticipated in 2027. “The continuous modernization of

Lufthansa Group’s long-haul fleet is one of our top priorities,” Detlef Kayser, member of the executive board of Deutsche Lufthansa AG, said in the release. “Therefore, we are very pleased to further invest into the newest generation of Boeing aircraft. The purchase will complement our existing orders and further reduce our operating costs, enhance fuel efficiency and provide state-of-theart customer experiences. Moreover, the purchase highlights our commitment towards enhancing sustainable aviation.” Reach Molly Hulsey at 864-720-1222 or @mollyhulsey_gsa on Twitter.

WE CAN HANDLE IT LOCALLY OWNED AND OPERATED TRANSPORTATION AND WAREHOUSING SERVICES

YOU CAN DEPEND ON

1630 Old Hwy 14 South | Greer, SC 29651 864-848-3854 | 1-800-366-1895 | www.swaffordtransport.com


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May 23-June 5, 2022

INTERMODAL ANXIETY: Supply chain challenges, rising costs persist By Christina Lee Knauss

M

Contributing Writer

ore than two years after the pandemic threw supply chains worldwide into upheaval, the effects are still being felt nationwide, with ongoing backups at shipping ports and periodic shortages of a wide range of goods on store shelves. Shipping disruptions caused by ongoing COVID-19 lockdowns in Shanghai and other parts of China, as well as the war in Ukraine, are likely to exacerbate supply chain woes through the end of the year, forecasters say. As a result, the shipping and trucking industries in South Carolina have been seeing a surge in demand, and that isn’t likely to change, according to experts from both sectors in the state. South Carolina is one of the East Coast ports benefiting from the effects of longterm backups at ports in Los Angeles and Long Beach, Ca., leading some shippers to divert their business to the East Coast. That and record imports to accommodate surging retail demand has caused the Port of Charleston to operate at record levels for 14 months, with no sign of a slowdown in sight. The port recently had its highest April ever for containers, handling 264,099 twenty-foot equivalent container units (TEUs) at the Wando Welch, North Charleston and Leatherman terminals, up 17% from April 2021, according to a report released by the South Carolina Ports Authority. So far from July through April for fiscal year 2022, SC Ports has moved 2.4 million TEUs, up 15% from the previous fiscal year. April also marked an all-time SC Ports record for pier containers, which account for boxes of any size, not just TEUs. The ports handled 145,779 pier containers in April, up 16% from 2021. So far in fiscal year 2022, SC Ports has moved 1.3 million pier containers, nearly a 15% increase from the previous year. The port had experienced some problems with backups earlier in 2022, with some ships being forced to remain at anchor at sea before coming in to port, but port officials have been working on solutions to return fluidity at the port to normalcy, according to SC Ports CEO Jim Newsome. “We are in a strong position as we have proactively invested more than $2 billion into our infrastructure ahead of demand,” Newsome said. SC Ports has used a variety of solutions to improve supply chain function, including hiring more than 150 people in operations, providing Sunday gates for motor carriers, prioritizing shipping lines taking empties out of port and offering berth priority to vessels taking out more cargo. The innovations are important because recent statistics and developments indi-

Illustration/File

cate business at the port is not going to be slowing down. Despite inflation, consumer demand for a wide variety of goods is expected to remain high through the rest of the year, with a predicted growth between 6% and 8% for retail sales, according to figures released in March by the National Retail Federation. That’s a slower growth than retailers saw in 2021 but still higher than pre-pandemic growth levels. The April 22 opening of the $220 million, 3-million-square-foot Walmart Import Distribution Center in Ridgeville, which will eventually employ more than 1,300, is expected to increase the volume at Charleston ports by 5%, according to industry estimates. The center will also help alleviate supply shortages at 850 Walmart and Sam’s Club locations around the Southeast.

Where the rubber meets the road

Somebody needs to move all these goods coming into the ports, and that responsibility falls squarely on the shoulders of the trucking industry, which is facing its own challenges. Trucking nationwide has been dealing with a shortage of about 80,000 drivers, the worst on record, according to statistics from the American Trucking Association. For the truckers that are on the road, rising fuel costs and ongoing inflation are eliminating a lot of the profits brought on by rising, pandemic-related demand for their services, according to J. Richards Todd, president and CEO of the South Carolina Trucking Association. “Before fuel prices got so high and

inflation became rampant, many truckers were making pretty good money because of the demand for them,” Todd said. “Now I think that’s turned a little bit. We’re going to see some pressure on some sectors of the industry. Some sectors are going to continue to do well — the national fleets, the parcel carriers and others with high capital. The smaller carriers and independent truckers, however, are going to be living on the margin.” The skyrocketing cost of diesel fuel is the biggest concern for anybody operating a trucking fleet right now, Todd said. As of May 16, AAA estimated the average price of diesel was $5.55 a gallon nationwide, and $5.46 in South Carolina. With tight supplies and increasing demand, industry experts are forecasting prices to continue to increase through the summer. “The demand for diesel remained high during the pandemic and continues to be high because everything goes by truck and all industries rely on diesel — trucking, construction, you name it,” Todd said. “Prices are now at a historic high, and they’re just going to continue to skyrocket.” Fuel costs aren’t the only challenges facing trucking companies. They’re also paying more to keep the drivers they have and attract new ones to the job, as well as paying more for insurance because of a rise in litigation against trucking-related accidents. “Wages and labor costs have been going up exponentially because of the ongoing driver shortage, and now with the rising fuel costs, we really have a per-

fect storm of challenges facing the industry,” Todd said. As a result, smaller trucking companies, businesses that operate trucks to haul their own goods and independent owner-operators are taking the biggest hits in this economy, Todd said. “Owner-operators who bought trucks to come into the industry and take advantage of the demand are having problems because they don’t have the large cash reserves on hand to deal with the increased costs,” Todd said. Smaller carriers and independent truckers then must pass the increased costs on to customers, which could in turn result in a loss of business. The South Carolina Trucking Association is continuing ongoing efforts to attract more drivers to the industry through its Be Pro Be Proud workforce development program and a CDL Prep program for high school students. Todd said there is an increased interest in the industry, with many of the state’s technical colleges experiencing a backlog of applicants for commercial driver’s licenses and diesel technology training programs. Those hands-on efforts to increase driver numbers are one of the few things Todd said the trucking industry can count on right now, with so many other factors of the economy out of their control. “The price of diesel is going to continue to be a challenge and the supply is going to apparently be an increased challenge, and we don’t know what the situation is going to ultimately look like,” he said. “It’s unlikely we’ll be seeing any of our typical seasonal cycles in the near future.”


IN FOCUS: PORTS, LOGISTICS, AND DISTRIBUTION

May 23-June 5, 2022

www.gsabusiness.com 17

Motor Freight Lines

Ranked by No. of Drivers in the Greenville Area Drivers: Local / Statewide

Tractors / Trailers

1971

200 200

864-277-3220 www.sefl.com

Kyle Hulsey, Michael Mergenhagen 1950

N.W. White & Co. 1060 Rogers Bridge Road Duncan, SC 29334

864-877-8057 www.nwwhite.com

Warehouse Services Inc. 58 S. Burty Road Piedmont, SC 29673

Company

Phone / Website / Email

Top Local Official(s) / Year Founded

Averitt Express 775 Berry Shoals Road Duncan, SC 29334

800-283-7488 www.averittexpress.com averittnews@averittexpress.com

Southeastern Freight Lines Inc. 516 Sagitarius Way Piedmont, SC 29673

Trucking Type

Industry Focus

200 200

Dedicated, expedited, flatbed, frozen/refrigerated, hazardous materials, intermodal, LTL/TL

Retail and manufacturing, refrigerated and hazmat services, automotive, construction, aerospace

115 310

73 285

Expedited, hazardous materials, LTL/TL

Regional LTL Carrier

1952

110 305

50 100

Bulk, dedicated

Hauling aggregates

864-422-9955 www.warehouseservices.com johnrohlman@warehouseservices.com

M. Jill Cox, Max Dieterle, Chris Apple 1986

75 75

75 350

Bulk, dedicated, intermodal, LTL/TL

Logistics, transportation, storage, IT services, value-added services

Old Dominion Freight Line Inc. 631 Leonard Road Duncan, SC 29334

864-877-9817 www.odfl.com drayrate@odfl.com

1939

30 39

30 100

Hazardous materials

Intermodal

RPM Transportation LLC 10395 Greenville Highway Wellford, SC 29385

864-801-3334 www.rpmtransportationco.com jerry@rpmtransportationco.com

1999

27 27

27 27

Dedicated, hazardous materials, intermodal, LTL/TL

Air freight and ocean freight

Associated Petroleum Carriers Inc. 1746 Union St. Spartanburg, SC 29302

864-573-9301 www.apccorporate.com jsmith@apccorporate.com

Jerry C. Smith 1942

10 80

10 15

Bulk, hazardous materials, intermodal

Petroleum products including gasoline, diesel, aviation products, lubricants and asphalt

LVJ Logistics 20 W. Pointe Blvd. Mauldin, SC 29662

864-371-0043 www.lvjlogistics.com www.virgil@lvjlogistics21.com

2017

2 2

2 2

Dedicated

Transportation and logistics

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. For a full list of participating organizations, visit scbiznews.com/buy-business-lists. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com.

Make data driven decisions.

Researched by Business Report staff

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August 23,

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No. 16

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The story of the Upstate business market is a story told in numbers. Market Facts provides the context for the data and statistics critical to commerce in our region. COVID-19 reshaped our economy, and now, more than ever, business leaders require the latest data, facts and trends to navigate the pandemic and capitalize on the continuing recovery. Advertise in Market Facts and position your company as a valuable resource as we continue to navigate the new normal.

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May 23-June 5, 2022

Employee Benefits Brokers

Ranked by No. of Employee Benefits Agents in the Greenville Area Company

Phone / Website / Email

Executive(s) / Year Founded

Benefits Agents / Total Employees

NFP 80 International Drive, Suite 425 Greenville, SC 29615

864-751-2345 www.nfp.com preavis@nfp.com

Jeremy Elliott, Eddie Whittingham, Nathan Broome 1983

18 18

Employee benefits, wealth management and property and casualty

AssuredPartners 55 Beattie Place, Suite 910 Greenville, SC 29601

864-527-0424 www.assuredpartners.com

Jon Taylor, Mack Ward 2011

15 35

Commercial property and casualty, employee benefits, personal lines

McGriff 47 Airpark Court Greenville, SC 29607

864-297-4444 www.mcgriff.com

Ellis MIlls 1976

12 72

Groups of two or more employees

Brown & Brown of South Carolina Inc. 10 Falcon Crest Drive, Suite 100 Greenville, SC 29607

864-208-0631 www.cbbins.com www.cbbins.com

William Armor 1917

10 105

Guaranteed-cost and partially self-funded programs, ancillary benefits, life and disability insurance

Group Benefit Systems Inc. / Benefits 4 You Inc. 337 E. St. John St. Spartanburg, SC 29302

864-583-0958 www.benefits4yousc.com jan@benefits4yousc.com

Jan DeRosa Easler 1986

6 7

Individual, Medicare and group health plans, including dental, vision, life, disability and supplement products

Marsh & McLennan Agency LLC 870 S. Pleasantburg Drive Greenville, SC 29607

864-271-6336 www.marshmma.com howard.einstein@marshmma.com

Howard L. Einstein 1933

6 90

Professional services, manufacturing, health care, financial services

Steinberg & Associates Inc. 340 S. Pine St. Spartanburg, SC 29302

864-582-7575 www.steinberg-associates.com

Hank Steinberg 1969

6 6

Employee benefit programs

The Insurance Source 300 John St., Unit 4A Greer, SC 29651

864-467-8738 www.insure-u.com updates@insure-u.com

Kristina Williams, Guy V. Furay 2005

5 6

Group and individual health insurance, voluntary benefits, employee benefits, life, disability, and dental insurance

Turner Agency Insurance Inc. 623 Halton Road Greenville, SC 29607

864-288-9513 www.turneragencyinc.com turner@turneragencyinc.com

Lee A. Scroggins III, Ginger T. Carlon 1962

4 24

Employee benefits, term and whole life insurance, group health, business and personal insurance, health savings accounts, key man policies

Affinity Insurance Group Inc. 129 Buford Ave. Anderson, SC 29621

864-963-9849 www.affinityinsgrp.com tommy@affinityinsgrp.com

Tommy Hardin 1999

3 5

Employee benefits

Benefit Controls of SC Inc. 109 Laurens Road, Building 3 Greenville, SC 29607

864-242-9441 www.benefitcontrols.com mattg@benefitcontrols.com

Matt Gantt, Jamie Corey 1980

3 5

Employee benefits, customer service, benefit analysis, strategic growth strategies, advisers, partners

Scott Insurance 93 Sonia Drive Greer, SC 29650

864-568-8550 www.scottins.com communications@scottins.com

Hutch Mauck, Sean Willoughby-Ray, Matt Willson 1864

3 9

Employee benefits coverage design and financing, health risk management, financial and actuarial analysis, custom compliance solutions, human resources and benefits technology consulting, benefit captives, pharmacy carve-out

Southeastern Insurance Consultants LLC 2 McKenna Commons Court Greenville, SC 29615

864-268-5717 www.siconsultants.com sbrown@siconsultants.com

Sam Plexico, Steve D. Brown, Ed Byrd, Eric Wells 2000

3 3

Employee benefits, home, auto, life, commercial, personal, Medicare supplement, travel, equine, compliance

Strategic Benefits Inc. 250 S. Pleasantburg Drive Greenville, SC 29607

864-250-9909 www.strategicbenefitsinc.net jlipscomb@strategicbenefitsinc.net

Jim E. Lipscomb 1999

3 5

Life, health, Medicare, disability, dental, vision, annuities, long-term care, cancer, critical illness, 401K, retirement and estate planning

David M. Gilston Insurance Agency Inc. 232 Adley Way Greenville, SC 29607

864-991-5259 www.dgilston.com alovelady@dgilston.com

Melanie Ensminger, Thomas D. Swayne, Julie Poncar 1962

1 1

Health, life, dental, disability insurance; wellness, worksite benefits, 401k, payroll, senior products, employer-required notification support

Quality Business Solutions Inc. 280 Hindman Road Travelers Rest, SC 29690

864-834-3985 www.qualitybsolutions.net info@qualitybsolutions.net

David Evette 2000

1 36

Customizable PEO/ASO back-office services; HR, payroll and benefits administration, unemployment management, insurance, tax reporting, workers' comp.

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. For a full list of participating organizations, visit scbiznews.com/buy-business-lists. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com.

Specialization

Researched by Business Report staff


At Work

BUSINESS DIGEST | PEOPLE IN THE NEWS

Business Digest

Jim Cook named local developer of the year Staff Report

T Two-year program builds foundation to help students connect to resources, create community and make the most of their Furman experience. (Photo/ Provided)

Pathways course to guide studentsthrough The Furman Advantage Furman University faculty have voted to make Pathways, a two-year program central to The Furman Advantage, a core curriculum requirement for all students starting in fall 2022. Pathways is a one-credit class each semester for first- and second-year students that builds a foundation of self-awareness, helping students learn who they are, what they value and where their interests lie, according to a news release. Sophomores also build a résumé have an informational interview with an alumnus, and learn other career skills and how to tell their story. The program has been in a pilot phase with about a third of Furman’s students participating over the past four years. Pathways is led by faculty advisors and, for first-year students, upperclass peer mentors who help students think about what they want to do with their lives, how to integrate their academics, their engaged learning experiences such as study away, research and internships, and their career goals, Michelle Horhota, associate dean for mentoring and advising and a professor of psychology, said in the release. She oversees the Pathways program.

Wells Fargo awards $20,000 for permanent supportive housing

United Housing Connections received a $20,000 community grant from Wells Fargo to support the preservation of Reedy Place, the Upstate’s sole Housing First facility in service since 2006. Reedy Place is an evidence-based, barrier-free intervention and harm-reduction program that provides 23 single-room occupancy apartments

and wraparound services for what the organization calls Greenville’s most vulnerable, mentally or physically disabled adults who have experienced chronic homelessness. As Greenville has evolved into a high opportunity community, it is increasingly challenging to build new housing due to high land and construction costs, and preservation is essential in the near term to ensure stable, healthy homes for current residents, according to housing advocates. “We know that preservation is quicker and more cost effective than new construction,” Lorain Crowl, CEO, United Housing Connections, said in a news release. “Wells Fargo’s award supports our focus on investments that are keeping aging properties with obsolete systems in service, safe and affordable, while minimizing long-term operational costs.”

gsanews@scbiznewscom

he S.C. Economic Developers’ Association awarded Jim Cook, executive director of the Cherokee County Development Board, its Local Developer of the Year award during the 2022 SCEDA annual conference, held May 4-6 at the Sonesta Resort in Hilton Head. Cook has been a member of SCEDA and part of the economic development community for 15 years. Since 2005, SCEDA has presented an award to the individual who best exemplifies leadership in the state’s economic development efforts, according to a news release. SCEDA’s Economic Developer of the Year Award is given in recognition of the winner’s involvement in leading innovative programs, overcoming obstacles and impactful efforts in the community. During his tenure as executive

port of the community in reaching these amazing totals,” Parker said in the news release.

BMW Charity Pro-Am announces celebrity lineup for 2022 tourney

Mark Spain Real Estate opens Greenville Location on Main Street

Mark Spain Real Estate, which has been honored four times as the No. 1 real estate team in the United States for closed transactions by Real Trends and The Wall Street Journal, is expanding into South Carolina. Its Greenville office will open on May 16. This will be the eighth major Southeastern metropolitan market and fifth state for Mark Spain Real Estate. The new Mark Spain Real Estate office will be located at 355 S. Main St., 1st and 2nd floor.

Antique Junction opens new business on Piedmont Highway

Antique Junction held a grand opening celebration May 15. Antique Junction is located at 18 Piedmont Highway near the S.C. Highway 86 and S.C. Highway 20 intersection. The event will run from 10 a.m. to 5 p.m. on Saturday, May 14, with a 2 p.m. ribbon cutting. With two floors and more than 5,000 square feet of show space, Antique Junction has more than 20

director of the Cherokee County Development Board, Cook has played an instrumental role in closing 53 projects and fostering new and existing industries resulting in approximately $1.2 billion in new capital investment and 3,800 new jobs, the release said. Cook, an Army veteran, says he was shocked to receive the award and felt honored that he was considered. “I served my country and then continued to serve my county,” he said in the release. “These last 15 years have not been a job; I consider this role a mission and a service that I am extremely proud of.” John Lumus, president and CEO of Upstate SC Alliance said Cook is highly respected in the Upstate and throughout the state. “Jim has helped us as local economic developers in the Upstate work better,” Lummus said in the release. “He has challenged us to look at economic development as a team sport, not an individual activity.”

booths, as well as two makers’ spaces to support local artisans.

Greenville Area Parkinson Society raises 71,500 at annual event

More than 100 members and sponsors of The Greenville Area Parkinson Society celebrated raising $71,500 during its spring fundraising drive. They broke last year’s total of $68,000, Kamber Parker, GAPS’ development director, said in a news release. The announcement came during a Member Celebration sponsored by Kyowa Kirin. GAPS raised awareness about Parkinson’s Disease through fundraising and walking challenges during the past few months that incorporated an engaging train theme to raise money for the organization’s free programs offered to people with Parkinson’s Disease and their caregivers in the Upstate. “We are thrilled by the sup-

The BMW Charity Pro-Am presented by TD Synnex announced the celebrities participating in this year’s tournament taking place June 9-12 at Thornblade Club in Greer and The Carolina Country Club in Spartanburg. New celebrities to the event this year include: LPGA Hall of Fame Golfer Amy Alcott, country music artist George Birge, BMW Motorsport Works driver Connor De Phillippi, Golf Channel contributor and podcast host Will Lowery, and golf social media influencers Kat and Isabelle Shee. Returning celebrities include actor Anthony Anderson of Blackish, television Actor Brian Baumgartner (“Kevin” from The Office), fellow castmate Andy “David” Buckley, comedian Larry the Cable Guy, professional boxer Canelo Álvarez, ESPN golf analyst Michael Collins, country pop musician Jay DeMarcus of Rascal Flatts, former MLB outfielder Ken Griffey Jr., former NFL wide receiver and NFL Network analyst Sterling Sharpe, baseball Hall of Famer Ozzie Smith, former pitcher David Wells and others.

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20

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May 23-June 5, 2022

People in the News ACCOUNTING Paysmart Payroll Services, a sister company of Stokes & Company CPAs, based in Greenville, has promoted Emily Hargrave to senior payroll specialist. The Hargrave local firm specializes in payroll services for small business clients from its four offices in the S.C. Upstate and Western North Carolina. Hargrave has been with Paysmart for almost five years

ARMED SERVICES Lee Hughes, a Spartanburg native, is stationed at Naval Base Kitsap, homeport to West Coast ballistic-missile and guided-missile submarines. Lt. Lee Hughes Hughes serves as the legal officer for Submarine Readiness Squadron 31.

BANKING AND FINANCE

Creecy

out the Southeast.

United Home Loan Services Inc. named Charner Creecy as the company’s first director of communications. She will be responsible for increasing our brand awareness and generating clients through-

BUSINESS SERVICES

Branham

Candler

Better Business Bureau serving has added Scott Branham, business development and project manager for Matrix Construction Co. Inc. in Anderson, to the Better Business Bureau Board of Directors. Pinnacle Financial Partners has hired five new associates to serve the Upstate market. Susan Candler joins the firm as a financial adviser for the client advisory group, and

SBDC adds bilingual consultant to network

T

Merhej

Aiken

McLeroy

Elise Merhej as the office leader for the Pelham Road location. In addition, the firm also welcomed financial specialists Selena McLeroy and Callie Aiken and operations analyst Rhonda Clubb, who will serve Pinnacle’s Small Business Administration team.

Clubb

he S.C. Small Business Development Centers added Marco Antonio Rios to its network of business consultants. Rios, who grew up in Mexico, assists Hispanic entrepreneurs. This move is the result of a partnership between the S.C. Hispanic Chamber of Commerce and the S.C. SBDC, with support from the Commerce Department, to establish a Hispanic Small Business Development Center in Greenville — and, eventually, locations throughout the state. The hiring of Rios signifies the S.C. SBDC’s commitment to providing no-fee business consulting, affordable training and an array of valuable resources to every South Carolinian, according to a news release. “The Hispanic population and Hispanic-owned small businesses are both growing rapidly in our state,” Michele Abraham, SBDC state director, said in the news release. “Hiring Marco Rios will enable the S.C. SBDC

and our partners — the S.C. HCC and Commerce — to collectively expand bilingual outreach and services to this community, which contributes millions of dollars to the state’s economy annually. These initiatives underpin the S.C. Rios SBDC’s mission, vision and commitment to serving all clients equitably.” Himself an entrepreneur, Rios specializes in developing sales and marketing strategies, customer service, driving business demand, and navigating negotiations, the release said. His experience ranges from human resources and retail to the hospitality and food and beverage industries. He has a bachelor’s degree in business administration and master’s degrees in marketing and management as well as international issues.

EDUCATION YouthBASE named Syanya Valdovinos as site director for its after-school educational intervention programs based in Greenville. She holds a bachelor’s Valdovinos in speech pathology and has more than seven years of experience working with children in educational and therapeutic settings. Valdovinos previously served as a clinical treatment provider at A Child’s Haven and as a sensory motor teacher at Brain Balance. The University of South Carolina Upstate recently announced Richard J. “R.J.” Gimbl as the vice chancellor for university advancement and Gimbl executive director of the USC Upstate Foundation. Gimbl brings more than 15 years of experience in higher education advancement to the role. He will provide strategic leadership and oversight to the university advancement team and work extensively to enhance fundraising outcomes for the university, elevate the profile of USC Upstate, and engage community partners.

HUMAN RESOURCES Soft skills and middle-skills gaming app company Skillsgapp has hired Jennie Montgomery as its people engagement and experience manager. She Montgomery acts as a liaison to help youth (middleto high-school aged) explore potential post-secondary career pathways and industries, helps ensure that Skillsgapp’s Skillionaire Games meet the needs of youth, especially the underserved, and encourages engagement with the company’s skills development apps.

Brand Communications, president of Erwin Creates, and chairman and lead owner of Greenville Triumph Soccer Club.

REAL ESTATE

Craig

NON-PROFIT The March of Dimes named Joe Erwin its 25th anniversary award recipient of the March of Dimes Real Estate & Economic Development Award. Erwin Erwin is co-founder and former president of national marketing agency Erwin Penland (now EP+Co), the co-founder of Clemson University’s Erwin Center for

Allen

Anderson

CBRE named Rhett Craig a vice president with CBRE Capital Markets. He joins CBRE from Avison Young, where he focused on office and investment sales in the Upstate. The board of directors of Colliers International South Carolina Inc. elected 12 new shareholders, including Taylor Allen, Brantley Anderson and Brockton Hall, all vice presidents and brokers in Greenville.

Hall


May 23-June 5, 2022

www.gsabusiness.com 21

The economy – whacked, but not down for the count

F

irst quarter 2022 GDP surprisingly declined 1.4%. But it would be a mistake to view the single-quarter decline in GDP as a harbinger of recession. Recessions begin when consumers pull back and cut spending. They have not. Recessions begin when home sales start to fall. They have not. STEPHEN Recessions begin SLIFER when orders shrink and businesses curtail investment spending and begin to lay off people. They have not. Consumers and businesses continued to spend in the first quarter, but once domestic sources for their purchases dried up they turned to imported products. Thus, supply constraints continue to weigh on the pace of economic activity in the U.S.. But eventually those supply constraints will end. Nevertheless, given the first quarter GDP outcome, it now appears that the bulk of the supply chain improvement See ECONOMY, Page 22

Photo/File

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CK A B G N I GIV SALUTING SERVICE A recently completed 20-acre expansion added 729 traditional burial sites at Fort Jackson National Cemetery. (Photos/ Christina Lee Knauss)

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Target your market in an upcoming issue of the GSA Business Report

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will be in 2023, not 2022. As a result, we have trimmed our GDP growth outlook for this year from 3.5% to 2.0%. For the past two years the economyhas been buffeted by a series of shocks. The COVID quarantine caused a sharp contraction in GDP growth in the second quarter of 2020. A dramatic rescue package caused an almost equally robust surge in the third quarter. Additional government checks fueled spending in the late 2020 and 2021 The dramatic rebound in spending created supply shortages as the pickup in demand far outstripped manufacturers ability to boost production. The supply/demand imbalance then generated a dramatic surge in inflation. Now, the Federal Reserve has begun what is expected to be a series of rate hikes which it hopes will counter the pickup in inflation. Meanwhile, Russia invaded Ukraine which has raised the specter of a war that expands well beyond the borders of the two countries. And now COVID is spreading rapidly through China. Buffeted by this series of factors there have been wide fluctuations in almost every economic indicator which makes getting a firm read on the pace of economic activity challenging for consumers, business leaders, investors, and policy makers. While the first quarter GDP decline was surprising, we believe it should not be interpreted as a sign of an impending recession. As long as spending holds up, the economy will be fine. Consumer spending which represents about 70% of GDP continues to climb. It increased 1.1% in March after rising 0.6% in February. Consumer spending expanded at a solid 2.7% annual rate in the first quarter. Apparently consumers are undaunted by rising inflation, the fear of sharp increases in interest rates, and uncertainly surrounding the war. The housing market continues to expand. Residential investment spending rose 2.1% in the first quarter despite a dramatic increase in mortgage rates and the steady run-up in home prices. The biggest problem in housing is a shortage of homes available for sale, not a drop in demand. In March the length of time between listing and sale was a near record short period of time of 19 days. The number of potential home buyers continues to far exceed the number of sellers. Businesses, meanwhile, have been sharply boosting investment spending. Nonresidential investment spending climbed 9.2% in the first quarter. With raw materials hard to attain and labor in short supply, businesses are increasingly turning to investment in an effort to boost production. To stay in the game they need to spend money

on technology. If all these spending categories were so strong, how did GDP decline 1.4%? Easy. The trade deficit widened dramatically in the first quarter as exports fell 5.9% and imports jumped 17.7%. Trade subtracted an eye-popping 3.2% from first quarter GDP growth. In other words, if businesses and consumers had purchased all those goods from domestic firms, GDP would have risen 1.8% in the first quarter rather than contracting by 1.4%. But when the goods that consumers and business people wanted to buy were not available, they purchased imported products. Are we supposed to worry about that 1.4% GDP drop in the first quarter? We do not think so. If businesses were worried about the pace of economic activity in the months ahead, they might begin to lay off a few workers. That is not happening. In the week of April 23, initial unemployment claims declined to a near-record low level of 180 thousand. Employers are not thinking about laying off bodies. Instead, they are pulling out all the stops to hire as many people as they can. Meanwhile, factory orders keep climbing faster than manufacturing firms can boost production, which means that the backlog of orders continues to climb. Manufacturing firms need to step on the gas not the brake. While GDP surprisingly contracted in the first quarter, none of the recent data on consumer and business spending suggest that this is a harbinger of weaker growth ahead. Having said that, with supply constraints still acting as a brake on economic activity we have cut our GDP forecast for the year from 3.5% to 2.0%. In the end, we continue to focus on real interest rates. Even if the Fed raises the funds rate to 2.5% by the end of the year, the inflation rate will be far higher. All measures of inflation are likely to increase by 6.0% or more which means that real interest rates at yearend will be negative by at least 3.5%. Negative real interest rates will not appreciably slow the pace of economic activity. The economy may have gotten whacked in the first quarter, but it is not down for the count. From 1980 until 2003, when he retired, Stephen Slifer served as chief U.S. economist for Lehman Brothers in New York City, directing the firm’s U.S. economics group along with being responsible for analysis of the U.S. economy. He has written two books on using economic indicators to forecast financial moves and previously served as a senior economist at the Board of Governors of the Federal Reserve in Washington, D.C. Slifer can be reached at www.numbernomics.com.


Viewpoint

VIEWS, PERSPECTIVES AND READERS’ LETTERS

Employers and employees gaining an upper hand with health benefits

E

ach year since 1993, Mercer, a division of Marsh McLennan Companies, conducts an important, statistically valid, random sample survey of thousands of employers nationwide, regarding their company-sponsored health plans. Final results of the 2021 survey were released in April 2022 and showed an increase in employer health plan costs, especially among employJIM ers with fewer than SHEW 500 employees. Health plan expenses for that category of employers increased 9.6%, versus 6.3% for the total population. Typically, an increase in health plan costs triggers a commonly used strategy called cost-shifting whereby employers shift a portion of the cost to plan members. However, concerns about health care affordability for lower-wage workers and the need to retain and attract employees in a competitive labor market have caused many employers to reconsider their approach. Most have refrained from raising deductibles and implementing other cost-sharing strategies, while some made changes to reduce employees’ out-of-pocket spending for health services. Among small employers, the survey found that that the median deductible for individual coverage in a PPO health plan actually dropped from $1,000 to $900 in 2021. This was the first time the survey ever found the median employer actually enhanced their PPO plan benefits from one year to the next. Among large employers, the median individual deductible in an HSA-eligible plan also dropped from $2,000 to $1,850 in 2021. Again, this was the first time the survey observed such a benefit design enhancement. Likewise, the survey showed that the median contribution employees pay for coverage (i.e., premiums) had a negligible change. In a market where the work environment has changed for many companies, and where competition to attract and retain employees has increased amidst a declining unemployment rate, employer health plans are not only avoiding any cost shift to their employees but are also finding novel ways to enhance employee healthcare benefits with-

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out significantly increasing employer expenses. Key areas where employers have made efforts to unlock the value of their health plan benefits include: • Growth in virtual care services, allowing employees to seek care for various types of treatment from the comfort of their home. • Enhanced benefits to support employee behavioral health and well-being. • More efforts to steer/direct employees and their family members to high quality and cost-effective providers of care. • More personalized benefit options. One example of the effectiveness of some of these strategies is Newbold Corp. of Greenville. With 65 employees in Greenville and 135 companywide, Newbold fits the mold of the surveys small employer. In the last 12 months since Newbold became fully self-insured, both

the company and its employees have realized cost savings related to health benefits. Newbold’s director of human resources, Kim Kirby, highlighted several reasons why. “We want to be an employer of choice,” Kirby explained. “We work hard to educate our employees on how to make the best use of their benefits to serve their health needs. After all, a benefit is not a benefit if an employee can’t use it.” As a result of employees appropriately utilizing their benefits, Kirby said the amounts charged for healthcare services have lowered, resulting in lower out-of-pocket costs for employees and helping to reduce the overall costs of the company’s health benefits plan. As long as the trend continues, those cost savings will be passed on to the employees in the future. On Thursday, June 23, the Greenville chapter of the Society for Human Resource Management will host a webinar revealing the complete, newly

released results of the 2021 National Employer Health Benefits and Compensation Survey. Anyone interested in learning more about the trends taking place in health benefits and effective strategies designed to contain costs while helping to attract and retain workers is invited to register at together4hr.org. Jim Shew represents the Greenville chapter of the Society for Human Resource Management and is vice president of employee benefits at Marsh McLennan Agency, one of the largest employer benefits brokerage and consulting firms in North America.

We want to hear from you Write: Ross Norton, Editor GSA Business Report 35B Cessna Court Greenville, S.C. 29607 Email: rnorton@scbiznews.com


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May 23-June 5, 2022

2022 | SOUTH CAROLINA

MANUFACTURING CONFERENCE AND EXPO PRESENTED BY:

SAVE THE DATE: NOV. 3 - NOV. 4 GREENVILLE CONVENTION CENTER | GREENVILLE, SC

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Join Manufacturing suppliers and innovators across all industry verticals at South Carolina’s most significant manufacturing event of the year.

The 2022 conference will include: • An exhibit hall the equivalent of three football fields • Implementing Industry 4.0 Technology • 2023 Economic Outlook: Auto, Aerospace, Biotech • Women in Manufacturing: Leaders and Influencers • SCMEP Manufacturing Excellence Awards • The South Carolina Manufacturing Extension Partnership (SCMEP) will conduct training courses

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