GSA Business Report 1.9.17

NUFACTUR

Show off

Lockheed Martin officials give insight into T-50A production in Greenville.

PAGE 3

Big money

Upstate capital investment reached $1.5 billion in 2016.

PAGE 6

Partnership

Greenville Tech and Clemson will look at assembly line practices.

PAGE 11

THELIST Economic Development Organizations PAGE 29

INSIDE Leading Off....................... 2 In Focus: Economic Forecast.......................... 25 People in the News......... 30 Viewpoint........................ 31

2017

ECONOMIC FORECAST ECONOMISTS LOOK AHEAD TO WHAT THE NEW YEAR HAS IN STORE. PAGE 25

Bosch Rexroth's Upstate plant is garnering industry attention.

PAGE 15

HOM

Volume 20, No. 1 • $2.00

CE

www.gsabusiness.com

EN

January 9 - 22, 2017

R

E

OF

CONFE

THE SC

ING

MA

LEADING OFF

A QUICK READ ON LOCAL BUSINESS

Rick Erwin Group unveils Drayton Mills restaurant

The NOMA Flats mixed-use development in downtown has added a Charleston-based women’s boutique to its retail offering.

Copper Penny has signed a lease for 2,200-square-feet of retail space in the building and will relocate from its current Greenville location in February 2017.

NOMA Flats is located at 233 North Main Street and has 23 apartment units and 13,800-square-feet of retail and office space located across from the Hyatt Regency in NOMA Square. According to a news release, Copper Penny will relocate next to Pure On Main.

“With its vibrancy and energy, downtown Greenville is a natural fit for Copper Penny, and we can’t wait to open our doors at NOMA Flats in time for spring shopping,” said Elizabeth Brehm Rubel, owner of the Copper Penny franchise in Greenville, in the release.

The Rick Erwin Group unveiled a new concept for its planned restaurant inside the Drayton Mills Marketplace in Spartanburg.

At a press event, The Standard: A Refined Kitchen was billed as a break from the group’s traditional steak and seafood offerings.

The new restaurant — which is expected to open in spring 2017 — will have a menu that includes “salads, sandwiches, burgers, pastas and entrees like St. Louis This is a rendering of The Standard: A ribs, grilled Atlantic salmon and lump Refined Kitchen. The restaurant will be the latest offering from the Rick Erwin Group crab cakes.” According to a news release, and will be located inside the Drayton Mills the new restaurant will be 7,000-square- Marketplace in Spartanburg. (Rendering/ feet with seating for 185 and includes inProvided) door and outdoor accommodations.

“We are excited to grow our company again, especially in this new direction,” said Rick Erwin, founder and owner of the Rick Erwin Group, in the release. “I know that The Standard will provide this community with the superior quality of food and service that the Rick Erwin Dining Group is known for, while also being a very unique environment. I cannot wait to be part of this thriving development.”

Inside the numbers

Inside the numbers

NOMA Flats, located in downtown Greenville, recently leased 2,200-square-feet of retail space to Copper Penny. The Charleston-based women’s boutique plans to relocate from its present Greenville location to the mixed-use development by February 2017. (Photo/Provided)

NOMA Flats adds Copper Penny to development

2,200

13,800

The square footage of space Copper Penny will use at NOMA Flats.

The square footage of retail and office space at NOMA Flats.

289

60,000

The number of apartments at the Drayton Mills development in Spartanburg.

The square footage of mixed-use commercial space at the Drayton Mills Marketplace.

23

2,141

The number of apartment units located at NOMA Flats.

185

The square footage of retail space available at NOMA Flats, according to its owners Lat Purser & Associates.

7,000

The expected number of patrons the new restaurant will accommodate.

The square footage of The Standard: A Refined Kitchen located inside the Drayton Mills Marketplace.

NEWS FROM AROUND THE GSA BUSINESS REPORT WORLD

www.gsabusiness.com BMW X1 and 2 Series both named ‘Top Safety Pick’

Here are the top five stories seen on GSA Business Report:

The Insurance Institute for Highway Safety recently bestowed the 2017 BMW X1 and 2017 BMW 2 Series a “Top Safety Pick.”

It is the second consecutive year the X1 received the honor as the IIHS said its body and design “boosted its performance in the small overlap front crash test.”

This is the fourth consecutive year the 2 Series received the designation as the car was “praised for its body structure integrity.”

For more from Up Shift, visit http://podcasts.gsabizwire. com/category/upshift-blog.

1. Lockheed Martin officials talk T-50A production 2. Atlanta-based firm acquires suburban office space in Greenville 3. Mayor: City has allowed exception to setback rule 4. Ellison on Broad close to completion 5. IberiaBank Corp. to expand into Greenville For more, visit http://gsabusiness.com

Here are the top five stories seen on GSA Biz Wire: 1. D owntown neighbors engage in College Street Christmas light fight 2. SCI Electronics Inc. hires Stephen Stambaugh as account manager 3. Wild hogs a costly headache for S.C. land owners, Clemson study shows 4. Student becomes youngest elected official in South Carolina 5. Jo Hackl receives Greenville County Bar Association’s Tommy Thomason Award For more, visit http://gsabizwire.com

Jan. 9 - 22, 2017

www.gsabusiness.com 3

Lockheed Martin set for T-50A production

by Matthew Clark mclark@scbiznews.com

I

n preparation for landing a nearly $10 billion U.S. Air Force contract, Lockheed Martin officials said they are ready to start production of the T-50A aircraft.

While plenty of attention has been given to the actual jet, it is the groundbased training system, or GBTS, that has just as much of a “wow” factor.

The GBTS is part of an overall package companies will present to the U.S. Air Force for the nearly $10 billion Advanced Pilot Training competition. The terms of the contract call for not just a jet, but the training components to go with it.

While the Lockheed Martin Greenville operations site has been chosen to perform final assembly and checkout of the T-50A, the location is also where the GBTS is currently being tested and refined. The state-of-the-art system includes a flight simulator and training systems that can be based on mobile devices.

“One advantage we think we have here is moving away from paper-based training,” said Jim Robinson, business development manager for Lockheed Martin.

“We are moving to real-time training and training on mobile devices.”

The GBTS from Lockheed Martin will allow interfacing with lessons in the confines of a student’s home, if necessary.

“Students will be able to do mission planning at home,” Robinson said. “This takes students away from the current system. This gives the Air Force the ability to really transform how students will learn.”

Robinson said the platform proposed

by Lockheed Martin will have some aspects that can be run on something like a desktop computer, which provides the Air Force additional mobility in its training.

The flight simulator portion of the GBTS will be contained inside a 360-degree dome where students will have a full view of their surroundings inside a replica of the T-50A cockpit. In addition to 360-degree views, the display inside the simulator will be in 8K ultra high definition. Under the IDIQ, or indefinite delivery, indefinite quantity, portion of the potential contract, the Air Force is eyeing 20 or more simulators.

“The embedded training system aircraft and simulator will run the very same on both,” Robinson said.

He added each training base will be its own network of simulators and students can interact with other pilots using simulators on that network in real-time.

If Lockheed Martin is awarded the contract, Robinson said Greenville operations will construct a new dome for the GBTS and have the ability to “train the trainer” allowing the Air Force to send its trainers to Greenville rather than wait

Lockheed Martin officials have shown off the production line for the T-50A trainer aircraft (pictured below) and the ground-based training system (above). The company's Greenville operations facility was chosen as the final assembly and checkout for the aircraft which will be entered in the U.S. Air Force's Advanced Pilot Training competition. The winning contract is worth nearly $11 billion.

(Photos/Matthew Clark)

for a GBTS to be installed at a location chosen by the Air Force, a cost savings according to Robinson.

As for the actual T-50A jet, Lockheed Martin officials unveiled the redesigned hangar dedicated to the final assembly and checkout of the aircraft and discussed the process the company will use if awarded the contract to build 350 trainers.

Assembly of the aircraft will begin with the fuselage at Korea Aerospace Industries’ (KAI) facility in Sacheon, South Korea. There, the fuselage will be “stuffed” with internal components before being shipped to the Port of Charleston. A separate shipping container will have external parts that will be attached to the T-50A in Greenville to complete the assembly.

With an initial contract of 350 aircraft over 16 years, Lockheed Martin expects to roll approximately 48 aircraft off the line in Greenville each year.

Doug Batista, the T-50A program manager, said the cost to ship from Korea

outweighed the costs of setting up a full production facility in the United States.

“There are advantages and disadvantages to having some of this in Korea,” Batista said. “There was never a solution to have all the construction here.

“We think it is important to have delivery from a U.S. line. We didn’t see it viable that the USAF would buy 350 aircraft and not have it come from a U.S. line.”

Other potential competitors in the USAF competition include teams of American and foreign companies. Boeing has partnered with Sweden-based Saab while Northrop Grumman is working with United Kingdom-based BAE Systems. Raytheon is expected to submit an aircraft built in partnership with Leonardo — based in Italy — and CAE Global, which is headquartered in Montreal, Quebec, Canada.

Mike Packer, aeronautics production operations director for Lockheed Martin, said the final assembly and checkout of the T-50A is expected to take six months.

Overall production of the aircraft will take 24 months from start to final delivery. KAI will have the fuselage for 17 months constructing and preparing for shipping.

Packer said it will take another month for the components to be shipped from South Korea to South Carolina, then six months to complete assembly and delivery of the aircraft.

“We are absolutely confident that it is a six-month turnaround time when it gets here,” Packer said.

While the fuselage is assembled in South Korea, Lockheed Martin officials said between 60% and 75% of the total aircraft will be made in the United States. By law at least 50% of the cost of the aircraft must be attributable to American content.

Mike Griswold, T-50A campaign director, said a wide range of components for the T-50A are American made. As an example, he said the engines for the aircraft will come from General Electric’s Lynn, Mass. facility.

“If you look at the suppliers list for this program it looks very similar to that of the F-16,” Griswold said. “There are the Honeywells and companies like that.”

Job projections, if Lockheed Martin wins the contract, remain at an addition of between 180-200 new jobs at the Greenville facility. Don Erickson, site director of Lockheed Martin’s Greenville operations, said the plan would be to have new employees backfill positions vacated by current employees who move over to T-50A production.

“We have deployed a team and we would ramp that up,” Erickson said. “It would be a plus-200, but they may not be with the T50A. It will be a good problem to have.”

He said the company has already added some to its nearly 600 employees in Greenville, specifically for the T-50A final assembly and checkout. Those hires have consisted of former U.S. Air Force crew chiefs that previously worked on F-16 fighter ground crews. Erickson said those new hires have mixed in with existing T-50A team members in Greenville.

If the contract is awarded to Lockheed Martin, Erickson said up to 30% would be new hires while the remaining 70% would be specific skilled labor. He said there is little concern of finding that workforce in and around Greenville.

“We’ve ramped up over 100 folks and we have found that once we get them here, they don’t want to leave,” Erickson said. “We haven’t had any trouble filling staff slots here.”

But, all of this hinges on Lockheed Martin winning the competition, which won’t be known until at least the end of 2017.

Reach Matthew Clark at 864-235-5677, ext. 107 or @matthewclark76 on Twitter.

4

www.gsabusiness.com

Jan. 9 - 22, 2017

Publisher - Rick Jenkins rjenkins@scbiznews.com • 864.235.5677, ext. 101 UPSTATE NEWSROOM Editor - Matt Clark mclark@scbiznews.com • 864.235.5677, ext. 107 Staff Writer - Teresa Cutlip tcutlip@scbiznews.com • 864.235.5677, ext. 103 MIDLANDS NEWSROOM Associate Publisher - Licia Jackson ljackson@scbiznews.com • 803.726.7546 Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Research Specialist - Patrice Mack pmack@scbiznews.com • 803.726.7544 LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142 Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119 Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144 Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145 Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118 Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128 Assistant Graphic Designer - Emily Matesi ematesi@scbiznews.com • 843.849.3124 Assistant Graphic Designer - Jessica Stout jstout@scbiznews.com • 843.849.3113 UPSTATE ACCOUNT EXECUTIVES Account Executive - Cheryl Froman cfroman@scbiznews.com • 864-235-5677, ext. 113 Account Executive - Ryan Downing rdowning@scbiznews.com • 864-235-5677, ext. 114

South Carolina’s Media Engine for Economic Growth President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110

Sherman College of Chiropractic is moving forward with a $16 million master plan. The 88-acre campus in Boiling Springs plans to renovate its current buildings and construct a new student life center. (Photos/Provided)

Sherman College moving forward with master plan

by Matthew Clark mclark@scbiznews.com

O

fficials at Sherman College of Chiropractic have started to move forward with a $16 million master plan that includes building renovations and the construction of a student life center.

The non-profit college is situated on 88 acres between Upper Valley Falls Road and Springfield Road in Boiling Springs. It is just one of 18 chiropractic colleges in the nation and has an enrollment of approximately 400 students.

“We have seen tremendous growth and we already knew we needed to upgrade facilities, and bolstering enrollment helps with that,” said Karen Canup, vice president of business and finance at Sherman College. “We also know we need to expand to accommodate the growth.”

Over the next decade, employment opportunities in the chiropractic industry are expected to jump 17%, according to the Bureau of Labor Statistics.

Edwin Cordero, president of Sherman College, said that statistic coupled with the growth already seen at the college prompted discussion for a campus renovation and expansion.

Creative Director - Ryan Wilcox rwilcox@scbiznews.com • 843.849.3117 Event Manager - Kathy Allen kallen@scbiznews.com • 864.235.5677, ext. 110 Audience Development & IT Manager - Kim McManus kmcmanus@scbiznews.com • 843.849.3116 Accounting Manager - Vickie Deadmon vdeadmon@scbiznews.com • 803.726.7541 CUSTOM MEDIA DIVISION Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143 Business Development Executive - Elizabeth Hodges lhodges@scbiznews.com • 843.849.3105

“Careers in chiropractic are in high demand as consumers turn to more natural and preventative approaches for their health care, and Sherman College is committed to help meet that demand,” he said, in a statement. “We expect that interest from prospective Sherman College students will continue to grow in the future.”

And Canup said only about 10% of the student population comes from the area, meaning students are coming into the Upstate to stay and live for the duration of their education.

“It’s exciting for the college and it’s exciting for the Upstate,” Canup said. “We bring in students from a wide range of states and foreign countries to get their chiropractic education and that does have an economic impact on the region because they are here for 3 1/2 years for their education.”

The college contracted with the Atlanta and Charlotte offices of Brailsford & Dunlavey to help Sherman officials through the master planning process and guide them through the construction phase of the project. Atlanta-based Lord Aeck Sargent will serve as the primary architect on the project and the Harper Corp. is handling pre-construction services. Brailsford & Dunlavey will manage

budget oversight and project management.

“The college’s strong leadership and ambition for improvement makes them an extremely enjoyable partner to work with.

We look forward to helping Sherman realize its new vision for the campus and supporting its institutional purpose,” said Rebecca Geraghty, senior project manager for Brailsford & Dunlavey, in a statement.

Financing the $16 million project will come from different avenues, according to Canup.

“We are looking to finance that with a combination of some cash reserves we have set aside and there will be some kind of fundraising campaign,” Canup said.

“We are also looking at financing options.

We haven’t secured all of the details, but we are in preliminary discussions.”

Preliminary work is still ongoing at the campus, but Canup said college officials are hopeful that construction will begin soon.

“We hope to be done at the end of 2018,” Canup said. “They are pretty far along in the design phase of one building and we hope to have construction started by the end of the summer of 2017. It is an aggressive hope, but that is our hope.”

Reach Matthew Clark at 864-235-5677, ext. 107 or @matthewclark76 on Twitter.

SUBSCRIPTION INFORMATION GSA Business Report (USPS 8460) is published twice a month, 24 times per year, plus one special issue in February, by SC Biz News.

35 Cessna Court, Suite A Greenville, SC 29607-2700 Periodicals postage paid at Greenville, SC. Mailing address: 35 Cessna Court, Suite A Greenville, SC 29607-2700 Postmaster: Please send address changes to: SC Business Publications 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464.

Annual subscribers receive 24 issues of GSA Business Report, including Newsmakers and the special supplement Market Facts, plus a Book of Lists bonus issue in February.

25 issues for $49.95; 50 issues for $84.95; 75 issues for $119.95.

Subscribe, renew, change your address, or pay your invoice online at www.gsabusiness.com or call 864-517-1492.

SC Business Publications LLC A portfolio company of Virginia Capital Partners LLC Frederick L. Russell Jr., Chairman

The entire contents of this newspaper are copyright by SC Business Publications LLC with all rights reserved.

Any reproduction or use of the content within this publication without permission is prohibited. SCBIZ and South Carolina’s Media Engine for Economic Growth are registered in the U.S. Patent and Trademark Office.

©2017 SC Business Publications LLC

Jan. 9 - 22, 2017

www.gsabusiness.com 5

Oconee County reports record 2016, expects development, hiring in 2017

by Teresa Cutlip tcutlip@scbiznews.com

R

ichard Blackwell is not in the practice of catching his breath.

Blackwell, executive director of the Oconee Economic Alliance said the county is coming off a record year in terms of development and he said more is coming in 2017.

Baxter Enterprises and Hi-Tech Mold & Engineering Inc., BMW suppliers, are expected to operational by the second quarter.

Grading is expected to begin on the Hartwell Village development near Clemson and activity also is expected in the county’s industrial parks.

Richard Blackwell, executive director of the Oconee Economic Alliance, said Baxter/ Hi-Tech should start hiring in the second quarter. Located in a new 87,000-squarefoot facility in the Oconee Industry and Technology Park, the development was big news for the county, he said.

“The new industry was significant, at least in our eyes, because it was our first BMW supplier. You know BMW has been operational since 1992 in the Upstate,” Blackwell said.

Blackwell said development of a Tri County Technical College campus is expected to move forward this year in the Oconee Industry and Technology Park.

Late last year he said county council issued approval to move forward with the project, which involves $4 million to help grade the property. He said construction could start in April, depending on the weather.

In addition to the Tri-County campus, the Hamilton Career Center will locate in the industrial park, in 2019 or 2020, Blackwell said.

“This new campus that will have a manufacturing focus. This is different and unique for a community to have a workforce development campus inside an industrial park,” Blackwell said.

Roadwork is expected in the Seneca Rail Park, located off Wells Highway. A new entrance road will be built to “open up and provide access into that industrial park,” Blackwell said. “And we do have plans for a spec building this year, I just don’t know where yet.”

Work also is expected at the site of Hartwell Village, a 300,000 to 350,000-squarefoot commercial development along U.S. Highway 123 and S.C. Highway 93 at the county line between Oconee and Pickens counties. In addition to preparing the land for the development, new traffic lights will be installed on both highways, according to Blackwell. He said some of the shops should be open by the end of this year.

The projects for 2017 come on the heels of a record 2016 for the county, which saw $89.9 million of new capital investment that created 113 jobs. The largest announcement was Baxter/Hi-Tech and the largest expansion last year was BASF, which “did a $60 million expansion,” Blackwell said.

“It was a very good year – our best year ever,” he said.

The Oconee Economic Alliance commissioned Texas-based Impact DataSource to create a report showing its economic impact. Since 2012, the alliance has helped bring in $279 million in capital investment and 1,100 new jobs to Oconee County.

Since 2012 the alliance has brought in 25 economic development projects, 19 of which are located in unincorporated areas of Oconee County, five in Seneca and one in West Union.

“Since the end of the national recession in 2009, employment growth in Oconee

County has exceeded employment growth in the Greenville MSA and the state,” Blackwell said.

Also, according to the report, the 25 projects since 2012 have: • generated nearly $73 million in construction spending, • yielded 769 construction jobs tied to those projects with $33.4 million in wages • created an additional 483 jobs.

Blackwell said that from 2012 to 2016, the Oconee Economic Alliance funding totaled $2.7 million. Blackwell said for every $1 of investment, the alliance generates

$1,722 in economic output; $181 in additional worker earnings; $4.62 in additional net benefits for the county, and $13.66 in net benefits for all local taxing districts.

“It is not just a news story or a ribbon cutting when it comes to these projects,” Blackwell said. “Think about how those 1,100 jobs changed family trees for generations. Think about what $45 million in new wages has done to create that economic ripple effect.”

Reach Teresa Cutlip at 864-235-5677, ext.

103 or @SCBizTeresa on Twitter.

Big money: 2016 Upstate investment tops $1.5 billion 6

www.gsabusiness.com

by Matthew Clark mclark@scbiznews.com

T

he Upstate had over $1.2 billion in new capital investment by businesses in 2016, according to data provided by the Upstate SC Alliance.

In addition to the $1.2 billion of new investment, there was $251.5 million of investment in existing operations. The data was preliminary as it contained announcements through Dec. 9.

New capital investment generated 4,163 new jobs and encompassed 5.7 million-square-feet of facility development.

Existing company investment added 570 new jobs to the rolls for the year and accounted for 1.4 million-square-feet of facility development, according to the data.

“2016 has been another great year in the Upstate for job creation, and this can be attributed to the teamwork that exists in our region between local and regional economic developers, the private sector and the S.C. Department of Commerce moving toward a common goal: improving the economy and creating jobs,” said John Lummus, president and CEO of Upstate SC Alliance, in an email.

In total, the Upstate had $1.5 billion in capital investment and 4,733 new jobs created as a result of company announcements in 2016. Of the job creation, 88% were new jobs — the highest percentage of new jobs created since 2007. There were 24 international companies, making up 46.2% of the capital investments for the year.

By comparison, 2016 was the fifthlargest capital investment year since 2007.

The biggest capital investment year was 2014 when just over $4 billion in capital investment was an-

Jan. 9 - 22, 2017

nounced in the Upstate.

Since 2011, the Upstate has had just over $11 billion in capital investment announced, creating over 30,000 new jobs.

Since 2007, the Upstate region has had 51,789 new jobs created by 646 projects totaling $16.3 billion in capital investments. Of those announcements, 35.8% have come from international companies.

The largest capital investment of 2016 came from Japan-based Teijin Ltd. as they announced a $600 million investment in Greenwood County in mid-November.

The company targets advanced materials and will create 220 new jobs as a result of the announcement. Lummus said all nine counties in the Upstate SC Alliance had capital investment announcements in 2016.

Michelin North America Inc. had the second-highest capital investment in the Upstate following the company’s midSeptember announcement to invest $270 million to construct a new distribution center in Spartanburg County. The new investment will create 350 new jobs and encompass 3.3 million square feet of facility development — the largest square footage announced in 2016. The largest single job announcement was for 480 jobs to be created at Magna International’s new seat manufacturing facility in Spartanburg. On Dec. 14, PL Developments announced 450 new jobs and a $45 million investment in a new facility in Greenville County.

Of the capital investment from existing companies, BASF Seneca had the largest. In June, the German company announced a capital investment of $60 million to add to its Oconee County manufacturing facility. Fitesa Simpsonville Inc., a subsidiary of Brazil-based Fitesa, announced a $52 million expansion to its Greenville County manufacturing facility. The capital investment is expected to create 38 new jobs.

Here is a look at some of the other business announcements from 2016: • Ritrama — In October, the Italian company announced plans to invest $85 million in a 350,000-square-foot manufacturing and distribution facility in Spartanburg County. The investment will create 150 new jobs; • Tower International — Greenville County was announced as the location of a $75 million investment in an automotive manufacturing operation that will create 140 new jobs; • Yanfeng Automotive Interiors — This China-based company announced in July it was investing $71 million in a 465,000-square-foot manufacturing facility in Laurens County. The company plans to create 35 new jobs as a result of the new facility; • Minghua USA — The mold plastic company announced it was investing $45 million and creating 150 new jobs with the building of a 260,000-square-foot manufacturing facility in Spartanburg County.

• In 2016, Toray broke ground on its $1.4 billion carbon fiber manufacturing facility in Moore — the largest capital investment ever made in Spartanburg County. Lummus said the region has seen an increase in corporate offices, call centers and headquarter locations.

Sioux Chief Manufacturing established its headquarters in Cherokee County and UST Logistical Systems opened its headquarters in Greenville County.

“Each of these business operations adds a valuable service or good to the marketplace in addition to enhancing the job and growth opportunities within our community,” Lummus said.

While the data from Upstate SC Alliance includes announcements made through Dec. 9, all final numbers will be reported in the first quarter of 2017.

2016 has been another great year in the Upstate for job creation...

JOHN LUMMUS, PRESIDENT AND CEO OF UPSTATE SC ALLIANCE

Reach Matthew Clark at 864-235-5677, ext. 107 or @matthewclark76 on Twitter.

Top 5 new capital investments in the Upstate in 2016 COMPANY CAPITAL JOBS CREATED LOCATION Teijin Ltd.....................................$600 million..................220 jobs...................Greenwood County Michelin North America...............$270 million..................350 jobs................. Spartanburg County Ritrama.........................................$85 million..................150 jobs................. Spartanburg County Tower International.......................$75 million..................140 jobs..................... Greenville County Yanfeng Automotive Interiors.........$71 million....................35 jobs........................Laurens County

Jan. 9 - 22, 2017

www.gsabusiness.com 7

Upstate Investment 2016

Greenwood County picks up largest single capital investment in 2016 — $600 million In November, a Japanese company specializing in chemical, pharmaceutical and information technology manufacturing announced plans to construct a manufacturing facility in Greenwood County.

Teijin Ltd. plans to invest $600 million – the largest initial capital investment made by a company in the county’s history – and create 220 new jobs — according to the S.C. Department of Commerce.

The company was founded in 1918

and provides solutions in sustainable transportation, information and electronics, safety and protection, environment and energy, and health care, according to the Commerce Department.

Teijin’s primary fields are carbon, composite and polyester fiber production.

Wayne Trotter, Teijin Ltd. director of government relations, said the company looked at six states for its new manufacturing facility. He said Greenwood County had a “pro-business atmosphere” as well as support from state and local officials.

“We were also attracted to the diversity of Greenwood’s citizens, the community’s rich history of welcoming foreign investment and the excellent training opportunities available at Piedmont Technical College,” Trotter said, in a release announcing the plans.

“We plan to invest in resources to develop new and innovative products to meet the increasing demands of the global carbon fiber market.”

The new facility – which will manufacture carbon fibers for the automotive,

aerospace and industrial markets – will be located along Highway 246. Hiring for the new positions will begin following the completion of engineering studies.

“We attribute this success to our local leadership, our highly-skilled workforce and our pro-business atmosphere that we strive to create,” said Steve Brown, chairman of the Greenwood County Council, in the release.

Teijin Ltd. has 150 companies and employs approximately 16,000 in 20 countries.

Business announcements from 2016

Ritrama — In October, the Italian company announced plans to invest $85 million in Minghua USA — The mold plastic company announced it was investing $45 million a 350,000-square-foot manufacturing and distribution facility in Spartanburg County. and creating 150 new jobs with the building of a 260,000-square-foot manufacturing The investment will create 150 new jobs. facility in Spartanburg County.

Baxter Enterprises — In March, the advanced materials manufacturer announced it Meyer Tool — This existing Greenville County business announced a $6 million was investing $20.7 million and creating 87 new jobs in Oconee County. The first phase investment and the addition of 57 new jobs for a 44,000-square-foot expansion to its of the new facility is around 80,000 square feet. existing facility in Pelham Road.

8

www.gsabusiness.com

Jan. 9 - 22, 2017

As you think about your business, think about the collaborative opportunities we have here in Greenville.

BRENDA THAMES, CHAIRWOMAN, GREENVILLE CHAMBER OF COMMERCE BOARD OF DIRECTORS

Brenda Thames, incoming chairwoman of the Greenville Chamber of Commerce Board of Directors, said academic collaboration is key to training and retaining a skilled workforce. (Photo/Kathy Allen)

Chamber’s Brenda Thames addresses workforce development

by Teresa Cutlip tcutlip@scbiznews.com

B

renda Thames, the newly-elected chairwoman for the Greenville Chamber of Commerce Board of Directors, spoke last month at a GSA Business Report event, where she said one of the biggest challenges for the community in 2017 will be in creating and maintaining a skilled workforce.

“We recognize, and you may see this in your business, that we have workforce needs that we haven’t even identified yet,” she said.

And it’s not just about training a workforce, but retaining a workforce, she said.

“I think you, the business community, are probably experiencing some of things we see from time to time,” Thames said.

“If we train them and bring them into our businesses, how do we ensure that we have a focus on retaining them as well?”

Thames said meeting workforce needs is not something that is specific to just one business or industry.

“How do we collectively, from a business and industry perspective, look at workforce needs as we go forward in the new year? I think we have more in common than we may realize,” she said.

Workforce development, or talent development, is one of the top initiatives for the chamber in 2017.

“We are hearing from businesses that they are struggling to find talent. How do we begin to improve that? This is and will be an exciting discussion,” she said.

The chamber also will focus on its Accelerate initiative, Thames said. Accelerate is Greenville’s private sector-fueled economic development initiative, according to the chamber website, which also reports that communities have to respond in innovative ways to help companies attract, develop and retain talent.

According to the chamber, it is responding to workforce issues through

two strategies: Attract talent from outside of the region by surfacing critical talent information from businesses through employer visits and a Recruiters Roundtable; developing new community-oriented marketing materials supporting large-scale talent recruiting projects, and supporting economic development projects, major hiring initiatives, etc.

Develop talent within the region through alignment of education and workforce systems to business needs by facilitating information exchange and partnership exploration between business and education at both K-12 and higher education levels; supporting initiatives to connect business to education, and supporting efforts to increase student engagement with business.

Thames outlined the partnerships that are valuable to the work of GHS and how businesses need to think about the collaborative opportunities available. GHS has partnerships with the University of South Carolina, Clemson University and Furman University, as well as relationships with Greenville Tech and the Greenville School District.

“You may ask why we are doing academics,” she said, adding the partnerships aid in the development of a skilled workforce, as well as provide an opportunity for collaborative research in the health care field.

“What’s going on in Greenville is pretty dynamic; and I’m appreciative of the opportunity to be a part of that upcoming progress,” Thames said. “As you think about your business, think about the collaborative opportunities we have here in Greenville. We at GHS have made a conscious decision that we are going to partner with our academic institutions. We’re not going to duplicate resources; we are going to share resources.”

Reach Teresa Cutlip at 864-235-5677, ext.

103 or @SCBizTeresa on Twitter.

Jan. 9 - 22, 2017

www.gsabusiness.com 9 Barriers were used to help contain gasoline spilled into waterways around the Palmetto Pipeline in Belton in 2014. Environmental groups have filed a lawsuit against Kinder Morgan, owner of the pipeline, contending the company has violated the federal Clean Water Act as a result of the spill.

(Photo/Provided)

Lawsuit contends pipeline giant violated federal Clean Water Act

by Matthew Clark mclark@scbiznews.com

A

n Upstate environmental group and advocate for the Savannah River have filed a lawsuit contending a pipeline company has violated the federal Clean Water Act by continuing to pollute waterways following a petroleum spill near Belton.

Upstate Forever and the Savannah Riverkeeper filed the suit in U.S. District Court in Anderson on Dec. 28 which comes after the groups issued a 60-day notice to pipeline giant Kinder Morgan in October stating the intention to file suit if the company did not take steps to clean up the spill site in Anderson County.

The Clean Water Act allows for third parties to sue companies responsible for pollution, but requires a 60-day notice before doing so.

“Our clean water is our most important resource,” said Andrea Cooper, executive director of Upstate Forever, in a statement. “Kinder Morgan has had two years to contain its huge gasoline spill, but Kinder Morgan continues to pollute the Upstate’s precious clean water with gasoline and petroleum pollutants.”

The suit also contends that Houston, Texas-based Kinder Morgan has made no effort to remove any “material amount of gasoline from the site” and “at least 170,000 gallons have not been removed.”

According to Kinder Morgan, the company has spent nearly $4.3 million through September 2016 on remediation of the spill site which has resulted in the recovery of 209,059 gallons of petroleum product.

The company said it has also disposed of nearly 2,800 tons of impacted soil.

“From the onset, Plantation Pipe Line has taken full responsibility for the spill and expressed our commitment to a thorough and complete investigation and remediation of the site in accordance with all applicable laws and regulations,” the company said in an emailed statement.

The Southern Environmental Law Center — which represents both Upstate Forever and the Savannah Riverkeeper in the suit — said tests of the spill area in September showed an increase in pollution that was “measured at many times the

applicable standards.”

“More than two years after this spill was discovered, Kinder Morgan is still polluting the waters of Anderson County and the Savannah River Basin, and at last count, the pollution was increasing,” said Frank Holleman, senior attorney at the Southern Environmental Law Center, in a statement. “It’s well past time for Kinder Morgan to do everything necessary to clean up its spill and stop gasoline from flowing into our water.”

In October, Pete Yanity, spokesman for the S.C. Department of Health and Environmental Controls, told GSA Business Report surface water analysis of the spill site showed chemicals present in the Brown Creek location. The concentrations were high, but “they are typical for release sites where free-phase gasoline is present,” Yanity said.

Under the terms of its Corrective Action Plan submitted to DEHC, Kinder Morgan said it will install biosparging wells which it expects to be operational in the near future. The company also shot back at the Southern Environmental Law Center for not providing full data and results of water sampling done at the site.

“Sharing test results and methodologies among interested stakeholders and the company responsible for the cleanup is common practice and demonstrates goodwill in working toward the same goal; namely, a comprehensive and thorough cleanup and restoration effort for the impacted area,” the company said.

“An organization that is truly committed to protecting the environment should be willing and eager to share its data and discuss potential remedial approaches without wasting the time and resources of the court and the parties involved.”

The suit is asking the District Court to order Kinder Morgan to stop any and all discharging of petroleum into the waterway, remove any gasoline from the site, put a treatment plan in place for groundwater before it reaches the stream and pay “substantial” fines. Under the Clean Water Act, the company can be fined up to $51,570 per day, per violation.

Reach Matthew Clark at 864-235-5677, ext.

107 or @matthewclark76 on Twitter.

10

www.gsabusiness.com

Jan. 9 - 22, 2017

Chamber legislative agendas include pushing for pension fix

by Matthew Clark mclark@scbiznews.com

F

or the 2017 S.C. General Assembly session, infrastructure improvement funding is certain to be at the forefront of debate.

Chamber of commerce officials in the Upstate said their legislative agenda includes advocating for gas tax increases to offset the mounting costs attributed to fixing South Carolina roads. But, another part of the legislative advocacy plan for those chambers includes monitoring the state’s growing pension liability.

According to a recent report in the Charleston Regional Business Journal, if the state does not infuse the fund with state dollars, the unfunded liability could reach as high as $23.6 billion by 2022. As it stands, the unfunded liability with the fund will be $19.45 billion in 2017.

Jason Zacher, executive director of the Upstate Chamber Coalition and vice president for business advocacy at the Greenville Chamber of Commerce, said the pension issue “has to be dealt with and dealt with immediately.” In the Upstate Chamber Coalition’s state legislative agenda, the issues involving the state pension are classified as a “crisis.”

“The employer contribution is going to have to go up and those costs will be

passed from the state through the school frastructure funding. Lawmakers passed districts, cities and counties and that a package to dedicate up to $4 billion tomeans cuts to services or hikes in taxes,” ward fixing the state’s roads and bridges.

Zacher said.

“As far as the complexity, I would say The Joint Committee on Pension Sys- the pension crisis is more serious,” Zachtems Review — six state senators and six er said. “The General Assembly can get a state representatives — is currently look- long way by raising the gas tax and a huge ing at the funding issue and is tasked with portion of that problem is taken care of. recommending imThe pension issue provements. is bigger as em“Ultimately, busiployee contribuness and our em- It is very critical for our tions and taxpayer ployees will be footcontributions are businesses to have good ing the bill for this,” getting higher.”

Zacher said. “If the roads, bridges and roadways As with the state has to start transportation ispassing costs down, PAM CHRISTOPHER, PRESIDENT AND CEO OF sue, Pam Christothere are only so THE ANDERSON CHAMBER OF COMMERCE pher, president and many places they can CEO of the Andergo and that is propson Chamber of erty taxes. That will directly impact small Commerce, said infrastructure will remain businesses and that will hurt.” a topic of concern with Upstate chambers.

According to the S.C. Public Employee “We are always going to continue to foBenefit Authority, employee and employ- cus on roads because our businesses rely er contributions have slowly increased, on our transportation system,” Christopher but not to the pace cost-of-living benefits said. “It is very critical for our businesses to have been increased. Coupled with a re- have good roads, bridges and roadways.” duction in the amount of time employees One change this year that some sugare required to pay into the system, the gest will be a bright spot in the infrastrucstate has found itself in a deep hole that ture funding debate is the exodus of Gov. officials said will take time to fix.

Nikki Haley — pending the U.S. Senate Zacher said the pension issue could be confirming her as the next U.N ambassaviewed as more pressing than that of in- dor — and the elevation of Lt. Gov. Henry

McMaster as the state’s chief executive.

During the last session, Haley said she was willing to implement a steady rise in the state’s gas tax, but not without a corresponding cut to other taxes such as income taxes. Additionally, the roads bill was hampered by debate over reforming the S.C. Department of Transportation’s oversight. The latter prompted contention between Haley and leadership in the House and Senate.

In the end, Haley signed a bill providing $4 billion in infrastructure funding and a slight overhaul of oversight that included giving the governor power to appoint DOT commissioners, but those appointments can be rejected by the legislative delegation the appointee is representing.

“He (McMaster) has a long working relationship with the Senate and those may be relationships Gov. Haley didn’t have when she took over,” Zacher said. “I think there is a feeling that McMaster understands how to grease the skids.”

Both Zacher and Christopher said their conversations with state lawmakers have yielded a strong consensus on the roads issue to find a longer-term solution.

The General Assembly will begin its 2017 session on Jan. 10.

Reach Matthew Clark at 864-235-5677, ext. 107 or @matthewclark76 on Twitter.

Jan. 9 - 22, 2017

www.gsabusiness.com 11

Clemson, Greenville Tech partnership to examine auto manufacturing assembly Staff Report

gsanews@scbiznews.com

A

Clemson professor has created a partnership between Clemson University engineers and students at Greenville Technical College to examine data and current manufacturing assembly lines used by automakers and suppliers.

The intent of the partnership is to create prototype manufacturing assembly lines, but Laine Mears said a more important aspect is to bring students into the fold of learning new assembly line techniques even before getting a job with a company like BMW Manufacturing Co. or one of its many suppliers in the Upstate.

“The jobs that are created today are at a higher technical level, with commensurate pay,” Mears said, in a news release. “In talking with companies in South Carolina, I find that they have the jobs. These jobs are already here. We just need education streams to push people to greater technical depth to fill them.”

Mears, the newly-named BMW SmartState Chair in Automotive Manufacturing, is based at the Clemson University International Center for Automotive Research, said the research will use relevant data but also move cars along a three-station assembly line which is expected to be ready in summer 2017.

“The assembly line will foster innova-

Laine Mears, the BMW SmartState Chair in Automotive Manufacturing, looks at an automotive component. Mears has started a new partnership with Clemson engineers and students from Greenville Tech to create prototype manufacturing assembly lines. (Photo/Provided)

tion around processes found in a modern automotive manufacturing plant,” Mears said.

A fourth station will include robots, tools and other equipment giving students and engineers the ability to look at new assembly ideas, Mears said. He said engineers will get the opportunity to look at new and different technologies using sensors that capture motion without interrupting production. Students will learn how the different equipment works and will help prototype different processes by advising researchers.

“We’re doing research in the same place that we’re doing workforce development,” Mears said. “This is a very different approach than what has been happening in the past. We think it’s a new education paradigm where workforce development is happening during the process of technology development.”

Mears was recently named the endowed chair — created with help from BMW Manufacturing Co. in Greer and the state’s SmartState program.

“Dr. Mears is working on the cutting edge of advanced manufacturing, a criti-

cal piece of South Carolina’s economy,” said Andreas Gücker, vice president for Quality and Total Vehicle at BMW Manufacturing Co., in the release. “He is highly deserving of this endowed chair position. The work he is doing is creating the technologies and processes that will directly benefit industry, while educating the workforce of tomorrow.”

Some of Mears’ previous work includes using data-rich processing to study best practices for joining automotive component parts and how manufacturers can use various sensors and data generated from them to “better understand and streamline operations, helping save money and improve quality.” According to the release, Mears has more than 10 years of automotive industry experience.

“He is an exceptional teacher and internationally recognized researcher on the leading edge of efforts to transform manufacturing with sensing, analytics and assembly automation,” said Zoran Filipi, head of Clemson’s Department of Automotive Engineering, in the release. “Laine’s collaboration with BMW and other industry partners have helped put Clemson and South Carolina at the forefront of advanced manufacturing research.”

The latest project will be based at Greenville Tech’s Center for Manufacturing Innovation, adjacent to CU-ICAR in Greenville.

12

www.gsabusiness.com

Jan. 9 - 22, 2017

UPSTATE UNDER CONSTRUCTION Due to the high volume of responses we received for our Q4 2016 iteration of Upstate Under Construction, we are presenting those projects that were not able to run in our Dec. 12, 2016 issue.

The projects include mixed-use developments and the renovation of an iconic building in downtown Spartanburg just to name a few.

Additionally, we have included all of our industrial submissions inside this month’s Manufacturing and Supply Chain Report, contained in this issue.

U.S. Military History Museum and Education Center Greenville Downtown Airport, 14 Airport Road Ext. Developer: Military History Center of the Carolinas Architect: Christopher Nordmeyer – Design South Professionals Inc. General contractor: N/A Engineer: Burdette Engineering and LeBlanc Welch Consulting Engineers Estimated completion date: N/A Estimated total cost: N/A Description: The building, located at the Greenville Downtown Airport, is being redesigned and will include handicap-accessible restrooms, a larger front door (for wheelchair access), exit signs, fire extinguishers as well as plans for new mechanical, electrical and plumbing work. Once complete, the building will be home to a military museum and education center.

The Crossing at Five Forks Simpsonville Developer: Smith/Packett Architect: Gaylen Howard Laing Architect General contractor: McCrory Construction, Greenville Engineer: Structural – Kevin WE. Schmuhl, PE; Electrical/Civil/Mechanical/Plumbing – Fratto Engineering Inc. Estimated completion date: November 2016 Estimated total cost: $19.5 million Description: The Crossings at Five Forks is a new 183,000-square-foot senior living community with 172 residences made up of 100 independent living residences, 48 assisted living residences and a 24-bed memory care located in the neighborhood known as Harmony Square Town Center. The Crossings at Five Forks is strategically located within a 20-minute drive from six area hospitals.

Village Market East 2815 Woodruff Road, Simpsonville Developer: Carolina Holdings Inc., Greenville Architect: BAI Architects, Raleigh, N.C. General contractor: Ashland Construction Co., Raleigh, N.C. Engineer: Hall Engineering, Greenville Estimated completion date: Q1 2017 Estimated total cost: $18 million Description: Village Market East is a mixed-use development located on Woodruff Road in the heart of the Five Forks community, one of the state’s fastest growing submarkets. The development will feature a flagship Lowes Foods grocery store, which will serve

as the anchor for approximately 70,000-square-feet of community-focused, Class A retail space. The development will also include a significant medical campus as the foundation for up to 65,000-squarefeet of medical and professional offices. Village Market East will be served by a new traffic signal along Woodruff Road that will provide accessibility to the center’s amenities, as well as Greenville County’s newest library branch, which is under construction with a plan to open in mid- to late-2017.

Greenville Public Works 475 Fairforest Way, Greenville Developer: City of Greenville Architect: DP3 Architects, Greenville General contractor: Harper Corp., Greenville Engineer: Dutton Engineering, Greenville Estimated completion date: Winter 2017 Estimated total cost: N/A Description: The new Greenville City of Public Works campus will provide a modernized headquarters for managing the city’s infrastructure and is purposefully designed to accommodate future growth. The project design and construction includes overall site infrastructure development, along with facilities for an emergency operations center, operations administration (streets, stormwater and solid waste), fleet maintenance, fuel island and vehicle washes. The total campus will encompass 70,000-square-feet across 22 acres.

Duke Energy Operator Training Center Upstate Developer: N/A Architect: Design South Professionals Inc. Engineer: Structural/Electrical/Mechanical/Plumbing – Live Oak Consultants LLC; Civil – Design South Professionals Inc. Estimated completion date: April 2017 Estimated total cost: $3.7 million Description: The two-story facility expansion has an area of approximately 18,900-square-feet connecting to an existing training center by a new pedestrian bridge and canopy. The facility will consist of offices, open spaces for cubicles, classrooms and training room environments with the associated support spaces. The building is a conventional steel framed building with masonry veneer and single-ply roof and will have plumbing, HVAC, electrical systems, elevator and telecommunications/audio visual equipment. Renovations in the existing training center are also included.

Markley Station 116-122 Markley St., Greenville Developer: RealOp Investments, Greenville

Architect: McMillan Pazdan Smith, Spartanburg and Greenville General contractor: Harper Corp., Greenville Engineer: N/A Estimated completion date: June 2017 Estimated total cost: N/A Description: An urban renewal project in the historic West End neighborhood of Greenville, Markley Station aims to build on the momentum of the district’s ongoing revitalization. The 43,000-square-foot redevelopment will include office, retail and restaurant space and will repurpose four vacant buildings, all former dry-storage warehouse property, with parking located both on-site and across the street.

Lead Academy Charter School 804 Mauldin Road, Greenville Developer: N/A Architect: AWHS Architects Inc., Greenville General contractor: Matrix Construction Co., Anderson Engineering: Civil – CCAD Engineering, Greenville; Mechanical – Peritus Engineers, Greenville; Structural – Arrowood and Arrowood, Greenville; Electrical – Carolina Engineering Solutions, Greenville Estimated completion date: November 2017 Estimated total cost: $7 million Description: A new two-story 49,000-squarefoot education facility for Lead Academy Charter School. Facility amenities include a catering style kitchen, dining/performance space, band room, science classroom and classrooms for grades K-8.

Presbyterian College – Neville Hall 503 South Broad St., Clinton Developer: Presbyterian College – Brailsford & Dunlavey, Charlotte, N.C. Architect: Craig Gaulden Davis Inc., Greenville General contractor: Harper Corp., Greenville Engineer: Structural – Fuller Consulting Engineers Inc., Greenville; HVAC/Fire Protection – Peritus Engineers & Associates Inc., Greenville; Electrical – Burdette Engineering, Greenville; Civil – RB Todd Consulting Engineers, Irmo; LEED – Energy Ace, Decatur, Ga. Estimated completion date: July 2017 Estimated total cost: $11.8 million Description: The existing 24,683-square-foot building currently houses four academic programs and is one of the most highly-utilized academic buildings on campus. The three primary goals of the renovation and expansion are: to restore the grandeur of the original, iconic building that sits at the core of Presbyterian College’s campus; to reopen the building’s rotunda from the first floor to the underside of the dome that adorns the top of the building, and to increase classroom and office spaces within Neville by expanding the building through a respectful addition to the existing structure.

The 15,574-square-foot addition will expand the rear of the current building and face the Springs Campus Center, Richardson Hall and the Thomason Library.

Montgomery Building 187 North Church St., Spartanburg Developer: BF Spartanburg LLC Architect: McMillan Pazdan Smith General contractor: The Harper Corp.

Engineer: MEP – Jordan Skala; Civil – McCutchen Engineering Associates; Structural – Britt Peters; Interiors – McMillan Pazdan Smith; Landscape – LandArt Design Group Estimated completion date: 2018 Estimated total cost: $22 million Description: The renovated and restored Montgomery Building will feature 9,000-square-feet of select boutique retail stores and intimate restaurants on the ground floor. The second floor will be dedicated office space, and the eight floors above that will be residential, with approximately 92 one- and two-bedroom apartments ranging in size from 422-1,374-squarefeet. Based on the developer’s agreement with the city of Spartanburg, the city will provide 140 parking spaces at the St. John Street parking garage next door at no cost for 10 years and invest up to $750,000 to connect the parking garage and Montgomery Building with an attractive pedestrian-oriented plaza.

Camperdown Office Building One 32 East Broad St., Greenville Developer: Centennial American Properties, Greenville Architect: Wakefield Beasley & Associates, Alpharetta, Ga. General contractor: Trehel Corp., Greenville Engineer: Structural – Fuller Consulting Engineers, Greenville; MEP – Devita and Associates, Greenville Estimated completion date: January 2017 Estimated total cost: $6.3 million Description: Work continues at the Camperdown Office Building One project site in downtown Greenville. The modern designed multi-story structure features glass and brick veneer façade with steel and concrete accents. The new 33,859-square-foot building will serve as the new headquarters for the organization when completed.

Dick Brooks Honda 14100 Wade Hampton Blvd, Greer Developer: Dick Brooks Honda of Greer Architect: William Simkins, Spartanburg General contractor: Roebuck Buildings, Roebuck Engineer: Gray Engineering Consultants, Greenville Estimated completion date: December 2017 Estimated total cost: $8 million Description: The expansion of Dick Brooks Honda of Greer will feature Honda’s Generation 3 design for a new Honda sales and service facility. The total under roof square footage for the new and pre-owned sales and service facility will be about 68,000-square-feet.

The service department will double in size and the service lounge will triple.

Jan. 9 - 22, 2017

www.gsabusiness.com 13

Hot Properties Brad Johnson and Bryon Culbertson of Re/ Max Commercial Advisors, recently represented TruTek Framing Systems in the lease of a 29,000-square-foot facility at 4001 Highway 153 in Powdersville. The Delaware-based company designs light gauge steel trusses for the construction industry.

Drew Stamm and John Gray, of NAI Earle Furman, represented the seller, Three Cs LLC, in the sale of the Baker Distributing building, a 19,600-square-foot industrial property. Jake Van Gieson and Bill Sims, also of NAI Earle Furman, represented the purchaser, West Blue Ridge Inc. Bryan Culbertson of Re/Max Commercial Advisors represented Coyote Coffee Properties in securing a 6,000-square-foot building at 104 East Main St. in Pickens.

Tony Bonitati, Kay Hill and Bern DuPree of NAI Earle Furman represented the seller, Charleston Apartments LLC, in the sale of a 93-unit multifamily property located on Atlantic Avenue. Gaston Albergotti, also of NAI Earle Furman, represented the purchaser, NCSC Ventures LLC. Gordon Anderson of Avison Young represented Big V Properties LLC in the sale of a 1,748-squarefoot office building located at 1000 W. Poinsett St. in Greer, to MNK Properties LLC for $180,000.

Anderson also represented the buyer.

Pete Brett, David Sigmon and Matt Vanvick of Coldwell Banker Commercial Caine repre-

sented TCC Venture LLC in the purchase of 13.5 acres at S.C. Highway 417 and Brookwood Point Place, Simpsonville, from Florida La-Co Inc., represented by Ford Elliott of Sperry Van Ness Blackstream Commercial LLC. Jake Van Gieson of NAI Earle Furman represented Fairchild Properties LLC in purchasing a 2,728-square-foot office building at 19 W. Stone Ave. from Cliff Hawk Properties LLC, represented

by Coldwell Banker Caine.

Pete Brett of Coldwell Banker Commercial Caine represented Helbilly Reserves LLC and Ironhorse Estates LLC in the purchase of 0.574-acre parcel at 401 Rhett St., 722 and 724 S. Main St., Greenville, from Wells Fargo Bank as Trustee for The First Lt. Peter F. Cureton Jr. Foundation, represented by Michael Thomas of Thomas Realty LLC. Benji Smith and Josh Tew of Flagship Properties, represented the seller, Oakwood Properties of the Upstate LLC, in selling a 14,000-squarefoot medical facility and 1.72 acres at 13 Edgewood Drive in Greenville to Granite Ridge LLC. Lynn Spencer and Bobby Hines, both of Spencer Hines Properties, represented the seller Spinks Investments in the sale of 1.22 acres located at 1512 Boiling Springs Road in Boiling Springs to Tico Partners for $125,000.

Towers Rice, CCIM and Peter Couchell, of NAI Earle Furman, represented the seller, Ladean Holdings LLC, in the sale of a 10,980-square-foot

industrial building located at 222 Ladean Court.

Hunter Garrett, CCIM, SIOR; John Staunton; and Grice Hunt, CCIM, also of NAI Earle Furman, represented the purchaser, 222 Ladean LLC. Tim Allender of Langston-Black Real Estate recently represented the purchaser, 17 Haywood Road LLC, in the acquisition of a 100,000-squarefoot building located at 17 Haywood Road in Greenville. The building is situated on 7.2 acres and will be the future location for Professional Party Rentals which is currently located at 647 Congaree Road.

Josh Tew of Flagship Properties represented the buyer, KH5 LLC, in purchasing a residential quadplex property at 6B Bostic St. in Greenville.

Jake Van Gieson and Graham Mullikin of NAI Earle Furman represented the seller, Southern Specialty Properties of SC LLC, in the sale of a 16-unit manufactured housing property at 201 Fernwood Park Drive in Spartanburg. Cole Morris and Chris Harrison, also of NAI Earle Furman, represented the purchaser, JBL Properties LLC. Robbie Romeiser of Spencer-Hines Properties represented Daks LLC in the 1031 exchange purchase of 2024 S. Church Street Ext. in Spartanburg. The property is a 9,180-square-foot building on 1.36 acres and is occupied by Dollar General. The purchase price was $620,000.

Graham Howle and Lakin Parr of Coldwell Banker Commercial Caine represented Donna

W. Dent and Donald Davidson Waldrop Jr. in the sale of 8.07 acres at West Georgia Road and Big Survey Road, Piedmont, to RA Land Development LLC, represented by Renee Karpowicz of Jeff Richardson Co. Graham Howle and Lakin Parr of Coldwell Banker Commercial Caine represented SoSH LLC in the purchase of a 1,265-square-foot office condominium at 200 N. Main St., Unit 203, Greenville, from Davis Family Properties LP, represented by Brantley Anderson of Colliers International.

Drew Stamm and John Gray of NAI Earle Furman represented the purchaser, Pivot Pizza Company LLC, in procuring a 2,000-square-foot flex/retail property located at 164 S. Main St. in Travelers Rest from Specialized-Mathews LLC. Rob Howell of Avison Young represented Advanced Automation Inc. in the sale of a 100,000-square-foot industrial building located at 17 Haywood Road in Greenville to 17 Haywood Road LLC dba Professional Party Rentals for $3.7 million. Tim Allender of Langston-Black represented the buyer.

Rip Major and Perry Major of Avison Young represented Hackman Capital in the sale of 109,000-square-feet of industrial warehouse space at 5396 N. Blackstock Road in Spartanburg to PIDC Investments LLC for $2.1 million.

Rip Major and Perry Major also represented the buyer.

14

www.gsabusiness.com

Jan. 9 - 22, 2017

Upstate commercial building permits | December 2016 Greenville County South Carolina Becknell Invest 393 Grove Reserve Parkway Contractor: Becknell Services LLC Storage Silos Valuation: $16,700 Aldi’s 3034 Wade Hampton Boulevard Contractor: Sylvester & Cockrum Inc. Commercial Solar Panels Valuation: $111,600 Lee Road United Methodist Church 1377 E. Lee Road Contractor: Cely Construction Company Interior Improvements Valuation: $76,505 Melvin’s Auto Detailing 1113 White Horse Road Contractor: Owner, Johnson Crockett Commercial Building Valuation: $1,500 Midguard Self Storage 640 Sulphur Springs Road Contractor: Ventanas Con Vistas Builders Commercial Interior Upgrades Valuation: $17,500 Hunting Downs Apartments 1409 Roper Mountain Road Contractor: Cotton Commercial USA Inc. Interior Fire Restoration/Interior Upgrades Valuation: $1,212,000 Legacy Capital LLC 528 Howell Road Contractor: Doria Construction Inc. Interior Upgrades Valuation: $19,000 G.E. Aviation 119 Matrix Parkway Contractor: BL Harbert International LLC Remodeling Interior Valuation: $146,793 Assembly SC LLC 5001 Assembly View Circle Contractor: Muller Contractors Inc. Exterior/Interior Improvements Valuation: $116,663

South State Bank 3622 Pelham Road Contractor: Galloway Construction and Development Interior Improvements Valuation: $20,000 Young and Restless Childcare Center 5055 Old Augusta Road Contractor: Owner Interior Commercial Improvements Valuation: $1,700 New Apartment Complex 5001 Assembly View Circle Contractor: Creative Builders Inc New Construction Valuation: $31,000 Townes at Five Forks – Genoa 107 Vereen Court Contractor: NVR Inc. Commercial Building Structure Valuation: $94,496 Townes at Five Forks – Genoa 109 Vereen Court Contractor: NVR Inc. Commercial Building Structure Valuation: $90,868 Townes at Five Forks – Genoa 111 Vereen Court Contractor: NVR Inc. Commercial Building Structure Valuation: $90,868 Ronald McDonald House 706 Grove Road Contractor: Clayton Construction New Construction/Addition Valuation: $2,980,000 Carolina Christian Broadcasting 2704 Pelham Road Contractor: Adam Skenes Interior Upgrades Valuation: $15,500 2299 Ridge Road, Greenville External Installation of Solar Panels Contractor: Southern View Energy Inc. Valuation: $25,000 3671 N Hwy. 14 Solar Panel Installation Contractor: Hannah Solar LLC. Valuation: $40,000 3401 Wade Hampton Blvd Equipment Upgrade Contractor: Mastec Network Solutions Valuation: $25,000

1143 Woodruff Road Interior Construction Contractor: Marsh Bell Construction Valuation: $335,000

3204 White Horse Road Interior Construction Contractor: Conic Construction Inc. Valuation: $8,500

1320 E. Georgia Road Equipment Upgrade Contractor: Ericsson Inc. Valuation: $15,000

2122 Wright Drive Interior Construction Contractor: Janco of the Upstate LLC Valuation: $8,000

435 Batesville Road Equipment Upgrade Contractor: Pinkham Cyr Inc. Valuation: $15,000

1 Peace Street Equipment Upgrade Contractor: K-CO Enterprises Inc. Valuation: $6,000

1514 S. Hwy. 14 Interior Construction Contractor: MSW Electrical Contractors Valuation: $28,435

2704 Pelham Road Equipment Upgrade Contractor: K-CO Enterprises Inc. Valuation: $6,000

111 White Oak Road Solar Panel Installation Contractor: Pacific H.E.L.P.S Valuation: $57,812 1514 S. Hwy 14 Interior Construction Contractor: MSW Electrical Contractors Valuation: $84,023

163 P&N Drive Equipment Upgrade Contractor: K-CO Enterprises Inc. Valuation: $6,000 2001 Hood Road Addition to Property Contractor: Multiple Valuation: $15,778

1620 N. Pleasantburg Drive Solar Panel Installation Contractor: Pacific H.E.L.P.S. Valuation: $22,200

19 Crane Avenue Installation of Fence Contractor: Creasy Construction Valuation: $10,000

1620 N. Pleasantburg Drive Solar Panel Installation Contractor: Pacific H.E.L.P.S Valuation: $40,700

1400 Perimeter Road Interior work on premises Contractor: N/A Valuation: $75,000

111 White Oak Road Solar Panel Installation Contractor: Pacific H.E.L.P.S Valuation: $57,812

309 Delaware Street Filter Addition Contractor: MB Khan Construction Co. Valuation: $3,135,641

111 White Oak Road Solar Panel Installation Contractor: Pacific H.E.L.P.S Valuation: $69,375 1857 S. Hwy 14 Network Upgrade Contractor: Mastec Network Solutions LLC Valuation: $25,000 1857 S. Hwy 14 Network Upgrade Contractor: Mastec Network Solutions LLC Valuation: $25,000

2293 Hwy 418 Interior Installation Contractor: Owner Valuation: $3,000

Growth at Bosch Rexroth catches industry attention Staff Report

gsanews@scbiznews.com

Bosch Rexroth Fountain Inn

hat began in 1989 as a 250,000-square-foot facility for Bosch Rexroth in Fountain Inn has turned into a 535,000-square-foot plant covering more than 100 acres at the Southchase Industrial Park. It is the company’s largest facility in North America.

“The team at Bosch Rexroth Fountain Inn has worked together over the past four years to double the size of our facility, while simultaneously driving significant improvements in our key performance metrics,” said Paul Cooke, president and CEO of Bosch Rexroth Americas, in a news release. “While we still have a long way to go to meet all of our ambitions, this team has shown what is possible by working together as a committed team to delight our customers.”

Mike McCormick, vice president and plant manager in Fountain Inn, said investments over the last four years “improved our assembly technology and the related lean logistics to support it.”

“In 2008, we used simple benchtop assembly methods with only basic hand tools,” he said, in the release. “Today, our assembly lines use numerous advanced technologies to simultaneously reduce cost and improve quality.”

Bosch Rexroth’s Fountain Inn facility manufactures hydraulic pumps and motors used in construction, agriculture, mining, material handling, and oil

Information provided by Bosch Rexroth outlines five areas that contributed to the recognition from Assembly Magazine.

Associates as the most valuable resource: In 2015, the associates generated more than 1,200 ideas to improve the performance of the facility.

Assembly line efficiencies: The Fountain Inn team increased assembly line efficiencies by developing an assembly Sequencing Program that guides the operator through the assembly process, resulting in an improvement in the ratio of attended work time versus products and an 85% reduction in customer complant, the company said.

Reduced time to market: In 2014, a crossfunctional team from engineering, sales, logistics, production and manufacturing engineering completed a complete redesign of the production process. The team cut the process time by more than 80%, the company said.

Environmental efficiency: The Fountain Inn team implemented initiatives like a wastewater recycling effort. A total of 75 tons of waste is now recycled onsite instead of being sent off-site for treatment and disposal. Zero Landfill status was achieved by harvesting waste for resale, reuse, or waste-energy conversion rather than sending it to the landfill.

Community involvement: With a focus on STEM education, together with local education leaders, they have invested nearly $500,000 in primary, middle, high school, and the local technical college.

W

Bosch Rexroth in Fountain Inn has grown over the last four years. The plant’s efforts garnered the attention of Assembly Magazine, which named it the 2016 Assembly Plant of the Year. (Photo/Provided)

and gas exploration. The plant recently caught the attention of other manufacturers and was named Assembly Magazine’s 2016 Assembly Plant of the Year. The award was initiated in 2004 to showcase world-class production facilities in America, and the people, products and processes that make them successful. According to Assembly, all manufacturers that assemble products in the U.S. are invited to nominate their plants.

“This recognition is a milestone on our journey toward continuous excellence in serving our customers,” McCormick said. “We know that our success is intimately linked to our ability to provide our customers with the best products and services. This, in turn, re-

quires intense focus on execution and performance. This drives innovation, especially in the assembly of our products.”

The plant was chosen for the award because of its “robust combination of lean manufacturing principles, technological advances, environmental initiatives, employee training programs and community involvement.” Over the past four years, “they made significant advancements in key areas such as assembly technology and the lean logistics that support it, while doubling the size of the facility,” according to the release. Bosch Rexroth Fountain Inn employs 650 associates. Worldwide, the company employs 31,000 at 100 locations.

Source: Bosch Rexroth Fountain Inn.

16

www.gsabusiness.com

Jan. 9 - 22, 2017

Manufacturing Sales

In the third quarter of 2016, U.S. manufacturers’ after-tax profits were $138.3 billion, an increase of $8.3 billion from the second quarter. A large percentage of that increase came from durable goods manufacturers who recorded $75.5 billion in profits in the quarter, up $7.6 billion over the previous quarter.

$ Manufacturing Sales

Durable Manufacturing Goods

Manufacturing corporations saw a $3 billion increase in sales in the third quarter over the previous quarter. However, according to U.S. Census Bureau data, Q3 2016 was the lowest third quarter for sales since 2010.

According to the data, third quarter durable manufacturing goods sales were over $800 million for the third straight year.

Year

Year

Q3 sales

Q3 sales

2010........................................ $1.45 trillion 2011........................................ $1.63 trillion 2012........................................ $1.64 trillion 2013........................................ $1.68 trillion 2014........................................ $1.74 trillion 2015.......................................... $1.6 trillion 2016........................................ $1.56 trillion

2010.......................................$692.6 billion 2011.......................................$739.6 billion 2012.......................................$769.1 billion 2013.......................................$795.8 billion 2014.......................................$847.2 billion 2015.......................................$843.1 billion 2016.......................................$828.3 billion

Nondurable Manufacturing Goods

Transportation Sales: Holding Steady

Sales of nondurable goods have been on a bit Of all durable manufacturing goods, transporof a decline since 2011. Companies reported tation equipment — more specifically motor vehicles and parts — has been steady in peak sales of $918 billion in the first quarter sales, operating profits and after-tax profits of 2012. Since then, sales of nondurable all year. Companies have seen lower sales, manufacturing goods has only surpassed but higher after-tax profits year-over-year. $900 million in three of 18 quarters.

Year

Q3 sales

2010.......................................$760.8 billion 2011.......................................$898.6 billion 2012.......................................$874.7 billion 2013.......................................$892.4 billion 2014.......................................$900.9 billion 2015.......................................$766.5 billion 2016.......................................$736.1 billion

Sales Q3 2016 $285.3 billion

Q2 2016 $297.1 billion

Operating profits

After-tax profits

Q3 2016 $19.7 billion Q3 2016 $21.1 billion

Source: U.S. Census Bureau

Q2 2016 $22 billion

Q2 2016 $19.9 billion

Jan. 9 - 22, 2017

www.gsabusiness.com 17

Congress authorizes Charleston Harbor deepening project

by Liz Segrist lsegrist@scbiznews.com

T

and process have stabilized.

The port board originally approved the work in September 2010. Since then, more funding has been needed to accommodate changes, as well as to expand the project’s scope to include the S.C. Inland Port in Greer, where the system was implemented in May.

he December passage of the Water Infrastructure Improvement for the Nation Act gives the Charleston Harbor deepening project full congressional authorization. It also authorizes the Army Corps of Engineers Chief’s Report for the construction Fiscal year 2017 port results For fiscal 2017, nearly 690,000 TEUs — a phase, “ensuring the project can remain on schedule,” according to a news release common industry measurement representing a 20-foot equivalent of a shipping confrom the S.C. State Ports Authority.

The project will deepen Charleston Harbor to 54 feet at the entrance channel and 52 feet in the harbor.

The 52-foot depth means post-Panamax ships — larger ships that can traverse the newly expanded Panama Canal — will be able to call on the Port of Charleston any time of day without tidal restrictions. The harbor is already wide enough to handle two ships simultaneously.

“The passage of WIIN marks one of the most significant milestones in the history of the Port of Charleston,” ports authority CEO Jim Newsome said in the news release.

“With this important step by Congress, we now turn our attention to inclusion in the president’s FY2018 budget, relative to the construction phase of the harbor deepening project.”

The post-Panamax ships have been calling on the Port of Charleston and more are expected. The infrastructure project will yield the deepest harbor on the East Coast, Newsome has said.

“This depth advantage will add significant capability in the fastest growing port region in the U.S. — the Southeast,” Newsome said in the release.

Ports authority moves ahead on gate system

The S.C. State Ports Authority voted to allocate $4.43 million to install the Advanced Gate System at the North Charleston Terminal, and to finalize the system at the Wando Welch terminal in Mount Pleasant.

The Advanced Gate System changes the way trucks carrying cargo are processed at port terminals. It involves new truck portals that take pictures of the trucks for faster inspections; a centralized processing area where port workers verify the cargo from images on their computers; and new gate kiosks where drivers enter a customized gate code.

It is designed to speed the check-in process and turn times, or the amount of time drivers spend inside a terminal. The port plans to implement the new system at the North Charleston terminal by February.

The system began at the Wando terminal in June, which was followed by intermittent traffic backups, software crashes and frustration from the truck drivers. Turn times have since improved as the software

tainer — came through the port, up 1.7% from the same time a year ago. The port handled around 170,000 TEUs in October.

Around 96,000 pier containers, or boxes of any size, came through the port in October, up about 3% from the same period last fiscal year.

New cranes unveiled at Wando Welch Terminal

Heavy Metal and CraneBob Blue Pants are now standing 155 feet tall at a marine terminal in Mount Pleasant.

Chinese crane manufacturer ZPMC delivered the cranes to the port in August.

Workers have since been readying them for use. ZPMC expects to have one crane operational by the end of this month, port spokeswoman Erin Dhand said in an email.

Two additional cranes will be delivered from China in December 2017 for use at the Wando terminal, and four existing cranes will be raised by cutting the crane legs and adding 40-foot sections.

Reach Liz Segrist at 843-849-3119.

18

www.gsabusiness.com

MANUFACTURING & SUPPLY CHAIN REPORT

January 9 - 22, 2017

Report: S.C. ranked high in manufacturing industry health

2016

SOU

TH

NG

S

C

outh Carolina ranks high in manufacturing industry health and global reach, but low in human capital and worker benefit costs according to a report from The Center for Business and Economic Research at Ball State University.

The report graded the state on nine different categories related to the manufacturing industry and the state scored high marks for the production of consumer durable and non-durable goods as well as the level of international trade – both imports and exports – in the state.

In terms of measuring manufacturing health, the survey looked at the last 10 years of production. The health was dependent on transportation infrastructure, non-wage labor costs, access to innovative technologies and the cost of doing business. South Carolina has achieved an “A” grade since 2013.

In the region, South Carolina achieved the highest rank of any other state. Nationwide, only Kentucky, Indiana, Michigan and Iowa earned an “A” grade in industry health. Georgia and Florida earned the lowest grades in the region with a “D” while North Carolina

earned a “C” and Tennessee, Alabama “To measure the health of the loand Mississippi earned a “B” grade. gistics industry, we include the share In global reach, South Carolina had of total logistics industry income as a the highest marks in the region – along share of total state income, and the emwith Tennessee and Kentucky - with ployment per capita,” the report said. an “A.” Florida and Mississippi had the South Carolina was on par with lowest marks in the region with other states in the South in huboth states earning a “D” man capital as the Palwhile Alabama, Geormetto State was joined gia and North Carowith Georgia, Tenlina each earned nessee and Kena “B.” The retucky with a “D” port looked grade.

Only at per capita North Caroexported lina and Flormanufacturida earned a ing goods and higher grade the growth of with each manufa c tu rstate getting ing exports as a “C” grade. part of the criMississippi and AR teria.

Alabama each TU OL C A According to the I NA picked up an “F” F U MAN report, South Caroligrade. na ranked equal to other “No factor matters states in the South in the catmore to businesses than the egory of logistics industry health. The quality and availability of labor,” the restate, along with Florida, North Caro- port said. “Workers represent the largest lina, Tennessee, Mississippi and Ala- single cost of doing business, but, more bama, earned a “C” grade while Georgia importantly, they are the source of most and Kentucky had a “B” grade. Pennsyl- innovation and process improvements vania, Ohio, Indiana, Illinois and Texas that distinguish successful firms from were the only states to receive an “A.” those that are not successful.”

RI

by Matthew Clark mclark@scbiznews.com

The report looked at “educational attainment, first-year retention rates of adults in community and technical colleges, the number of associate’s degrees awarded annually on a per capita basis and the share of adults enrolled in basic adult education.”

The state ranked the lowest in the region in the category of worker benefit costs. According to the report, South Carolina and Kentucky each earned a “D” grade while Georgia and North Carolina each earned a “B” grade and Florida, Tennessee, Alabama and Mississippi had a “C” grade.

“Non-wage labor costs represent an increasingly important part of total business costs,” the report said.

“These are affected by local and state public policy (laws), as well as worker demographics and health, and industry and firm performance.”

South Carolina held its “B” grade in sector diversification – a grade unchanged since 2012 – but did raise its productivity and innovation grade from a “C-“ in 2015 to a “C” in 2016.

The state’s tax climate received a “C-“ and the expected liability gap earned a “B” grade.

Reach Matthew Clark at 864-235-5677, ext. 107 or @matthewclark76 on Twitter.

January 9 - 22, 2017

MANUFACTURING & SUPPLY CHAIN REPORT

www.gsabusiness.com 19

Amazon relocating N. Charleston jobs to Columbia

by Liz Segrist lsegrist@scbiznews.com

A

mazon plans to close one of its North Charleston facilities and lay off 149 people by Feb. 15, according to a regulatory filing with the state.

Amazon’s Make On Demand center, which prints and publishes books, is located at 7290 Investment Drive in North Charleston. Those operations will be relocated to a new facility in Columbia in March 2017, Amazon spokeswoman Lauren Lynch said.

A location for the Columbia facility has not been announced.

Lynch said the lease had expired on the North Charleston building, and the company also wanted to relocate the facility closer to the 1.25-million-squarefoot Amazon fulfillment center in West Columbia to “better leverage infrastructure and improve efficiencies.”

Amazon’s CreateSpace office location in North Charleston will continue operations, Lynch said. CreateSpace, which was purchased by Amazon in 2005, is run out of the former North Charleston City Hall building.

Amazon filed the layoff and facility closure notification for the Make On Demand center with the S.C. Depart-

ment of Employment and Workforce.

“Affected employees are being given the option to change locations to another company facility,” the company said in a letter to the state and North Charleston Mayor Keith Summey.

Employees who do not accept another position at one of 70 Amazon facilities will be laid off by Feb. 15.

Lynch said those employees will receive severance and are eligible for job placement or tuition assistance services.

“This decision was not made lightly. ... We are honored with the opportunity we’ve been given to work there for 10 years,” Lynch said. “We care deeply about North Charleston and the people that work there.”

Amazon opened the West Columbia facility, located in Saxe Gotha Industrial Park near the interchange of Interstates 26 and 77, in 2012.

The Seattle-based online retailer employs about 4,000 workers at the Lexington County facility. In October, Amazon announced that it was hiring about 4,000 seasonal workers for its operations in West Columbia, Spartanburg and North Charleston.

Reach Liz Segrist at 843-849-3119.

Employees work at Amazon’s 1.25-million-square-foot fulfillment center in West Columbia.

(Photo/Provided)

This decision was not made lightly. ... We are honored with the opportunity we’ve been given to work there for 10 years. We care deeply about North Charleston and the people that work there.

LAUREN LYNCH, SPOKESWOMAN, AMAZON

20

www.gsabusiness.com

MANUFACTURING & SUPPLY CHAIN REPORT

January 9 - 22, 2017

INDUSTRIAL UNDER CONSTRUCTION Here is a look at industrial properties currently under construction in South Carolina. The list was compiled from Under Construction entries received by GSA Business Report, Columbia Regional Business Report and Charleston Regional Business Journal.

Caliber North Green Road north of Highway 101 in Greer Developer: Liberty Property Trust Architect: MCA Architecture, Greenville General contractor: Harper Corp., Greenville Engineer: Bluewater Civil Design, Greenville Estimated completion date: April 2017 Estimated total cost: N/A Description: This is a 171,600-square-foot, state-ofthe-art warehouse that can accommodate distribution, light assembly and manufacturing. It will feature 36-foot clear heights and 7” concrete slab floor, and is the market’s first speculative warehouse. Delivery is expected in April 2017. It is close to both the BMW Manufacturing facility and the Inland Port Greer.

Sterling Contract Packaging 1875 Moore Duncan Highway, Moore Developer: Pacolet Milliken, Greenville Architect: Architectural Design Center, Greenville General contractor: Sherman Construction, Piedmont Engineer: Bailey and Son Engineering, Greenville Estimated completion date: October 2016 Estimated total cost: $12.5 million Description: Sterling Contract Packaging has completed an expansion of its manufacturing operations. Located in Moore, in the Tyger River Industrial area, the new 145,000-square-foot facility on 29 acres will allow Sterling to meet the needs of their expanding customer base. Specializing in contract retail packaging management, package engineering and logistical planning, Sterling celebrated its 20th anniversary in October. This new facility will allow Sterling to consolidate three previous facilities under one roof and allow for future expansion.

Atlas Commerce Center – Phase II 8351 Palmetto Commerce Parkway, North Charleston Developer: Atlas Capital Group Inc., New York Architect: James C. Hawthorn Associates, Kettering, Ohio General contractor: Miller-Valentine Commercial Construction, Charleston Engineer: HLA Inc., Charleston (civil and landscape) Estimated completion date: Fourth quarter The project is part of a multiphase, 12-acre industrial park and is a companion building to the recently completed Phase I building. Phase II is a 67,500-square-foot industrial building capable of serving up to nine tenants, subdivisible into 7,500to 67,500-square-foot tenant spaces. It consists of load-bearing, tilt-up construction with no perimeter columns and a clear height of 30 to 33 feet.

Ritrama Inc. 1896 Moore Duncan Highway, Moore Developer: Ritrama Inc. Architect: WHN Architects, Charlotte General contractor: Choate Construction Co., Charlotte, N.C. Engineering: Newmark Grubbs Knight Frank, Charlotte and Atlanta; WGPM Structural Engineers, Charlotte Estimated completion date: November 2017 Estimated total cost: $85 million Description: The project is planned for a 350,000-square-foot manufacturing operations with an additional 18,000-square-foot office building adjacent to the site. Exterior is composed of concrete walls supporting a metal truss roofing system. Interior walls include both concrete and metal stud wrapped with drywall. Doors include metal, glass and wood depending on design and function. Solar panels have been added in the parking lot and on the roofing system to support LEED Project activities.

Gestamp (New) 1 LSP Road, Union Owner: Gestamp, Union Architect: MCA Architecture, Greenville General contractor: THS Constructors Inc., Greenville Engineer: Civil – Alliance Engineering, Greenville; Structural – Arrowood and Arrowood, Greenville; Mechanical – Leblanc Welch, Greenville; Electrical – Walker & Whiteside, Greenville Estimated completion date: November 2018 Estimated total cost: $12 million Description: 143,000-square-foot building expansion for Gestamp, an existing industrial manufacturing facility that includes 27,000-square-feet of high bay space for stamping operation, 96,000-square-feet of low bay warehouse space, and 20,000-square-feet of covered area for shipping and receiving. Buildings are conventional steel structures with metal wall panels.

JR Automation Pickens County Commerce Park, Pickens Developer: Agracel Industrial Developers, Drayton Architect: McMillan Pazdan Smith, Greenville General contractor: THS Constructors Inc., Greenville Engineer: Civil – Davis & Floyd, Greenwood; Structural – Arrowood and Arrowood, Greenville; Mechanical – Thomas Mechanical, Laurens; Electrical – Eldeco, Greenville.

Estimated completion date: April 2017 Estimated total cost: $5 million Description: New 50,000-square-foot industrial manufacturing facility for JR Automation, a custom automated equipment for the automotive and aerospace markets. The new building is in Pickens County Commerce Park and constructed of conventional structural steel frame with precast concrete wall panels.

Era Contract building Pickens County Commerce Park, Pickens Developer: Recas USA LP, Greer Architect: McMillan Pazdan Smith, Spartanburg General contractor: THS Constructors Inc., Greenville Engineer: Civil – Davis & Floyd, Greenwood; Structural – Arrowood and Arrowood, Greenville; Mechanical – Thomas Mechanical, Laurens; Electrical – Eldeco,

January 9 - 22, 2017 Greenville Estimated completion date: April 2017 Estimated total cost: $4 million Description: New 37,000-square-foot building for Era Contact that includes 28,300-square-feet of production/assembly/warehouse space and 8,700-squarefeet of administrative and service space. The building is constructed of conventional steel frame with precast concrete wall panels.

Kloeckner Metals Corp.

1 White Horse Road Ext., Greenville Owner: Kloeckner Metals Corp., Bensalem, Penn.

Architect: Architectural Design Center, Easley General contractor: THS Constructors Inc., Greenville Engineer: Civil – Seamon Whiteside, Greenville; Structural – Arrowood and Arrowood, Greenville; Mechanical – Jennings-Dill, Greenville; Electrical – Walker & Whiteside, Greenville Estimated completion date: July 2017 Estimated total cost: $5 million Description: New 47,900-square-foot building expansion for Koeckner Metals Corp. to the existing 146,000-square-foot manufacturing facility.

Expanded building encompasses the existing rail spur for shipping and receiving goods and materials.

The expanded building is a pre-engineered steel structure that is supported on caisson foundations.

The project also features a 40-ton crane, high speed rolling doors, and an internal truck loading dock.

Mingua USA Velocity Park, 1000 Robinson Road, Greer Developer: Velocity Park; Cullum Interests Architect: McMillan Pazdan Smith, Spartanburg General contractor: Gray Construction, Charlotte, N.C. and Lexington, Ky. Engineer: Civil – Alliance Consulting Engineers, Greenville; Structural – CMC Cary Engineering; Electrical – H2L Engineers; Mechanical – LWI Consulting Engineers Estimated completion date: April 2017 Estimated total cost: $45 million Description: A 210,000-square-foot manufacturing facility for Minghua USA LLC. Minghua is the first Chinese supplier that has come to South Carolina to serve BMW. Minghua will manufacture plastic vehicle parts for the exteriors and interiors of BMW’s.

Augusta Grove #17 speculative building Matrix Parkway and Old Grove Road, Piedmont Developer: Long Wharf Real Estate, Boston, Mass.

Architect: N/A General contractor: The Harper Corp., Greenville Engineer: Wakefield Beasley & Associates, Atlanta, Ga. and Bluewater Civil Design, Greenville Estimated completion date: Q3 2017 Estimated total cost: N/A Description: This Class A industrial speculative project is underway in Augusta Grove Business Park, the largest industrial business park of its kind in Greenville County. At 331,850-squarefeet, the Class A, concrete, tilt-wall industrial project known as Augusta Grove #17 will have a 32-foot minimum clear height and create a commanding presence in the park. Located on a 46.1-acre site at the intersection of Matrix Parkway and Old Grove Road, the rear-load facility can accommodate a multi-tenant configuration, but is best suited for a dominant lead single tenant.

Auto parking is ample with room for expansion in the design; likewise for trailer storage. An ESFR

MANUFACTURING & SUPPLY CHAIN REPORT sprinkler system and LED lighting program are just a few examples of the quality features in this property.

Next Manufacturing 400 Birnie Street, Greenville Developer: Industrial Project Innovation, Greenville Architect: McMillan Pazdan Smith, Greenville General contractor: Braasch Building Group, Greenville Engineer: H2L and LeBlanc Welch, Greenville Estimated completion date: Phase I – January 2016; Phase II – July 2017 Estimated total cost: $1.5 million Description: Next Manufacturing is a collaborative low-cost manufacturing space that focuses on supporting its companies as they grow, while allowing them to share ideas and overhead. Both the space inside the building, and the lease terms that go with it, are designed to be flexible and to allow the tenant to expand quickly as needed while minimizing their risk and overhead commitments. Being a part of the Next community gives each company access to a group of similarly minded businesses and business support services, while helping them market their business and giving them the best opportunity to grow.

Meyer Tool 7640 Pelham Road, Greenville Developer: Meyer Tool, Greenville Architect: Roebuck Buildings, Roebuck General contractor: Roebuck Buildings, Roebuck Engineer: N/A Estimated completion date: March 2017 Estimated total cost: $4.16 million Description: New 42,677-square-foot office and production area expansion to existing facility including site work and improvements, which includes 10,000-square-feet of Class A office space and 32,000-square-feet of conditioned production area for machine parts.

Baxter Enterprises High-Tech Mold and Engineering Oconee County Developer: Baxter Enterprises Architect: McMillan Pazdan Smith General contractor: Hogan Construction Engineer: Electrical/FP – Carolina Engineering Solutions; M/P Peritus Engineers; Civil – Thomas & Hutton; Structural – Arrowood and Arrowood Estimated completion date: December 2016 Estimated total cost: $5.7 million Description: The building is a steel frame with insulated metal wall panels. At 80,000-square-feet, the first phase includes a 7,900-square-foot office and the HiTech shop area which is 17,500-square-feet of mold repair, CNC machines, laser welding and testing equipment. The total volume of the manufacturing facility is expandable up to 200,000-squarefeet, and the office areas are expandable up to 16,000-square-feet.

Gestamp (Upfit) 1 LSP Road, Union Developer: Agracel Industrial Developers, Drayton Architect: Carlisle Associates, Columbia General contractor: THS Constructors Inc., Greenville Engineer: Civil/Structural – Carlisle Associates, Columbia; Mechanical – Leblanc Welch, Greenville; Electrical – Walker & Whiteside, Greenville Estimated completion date: May 2017 Estimated total cost: $9 million Description: Upfit of the existing 60,000-squarefoot building for Gestamp and design-build construction of the 120,000-square-foot expansion to a total of 180,000-square-foot for industrial manufacturing. The building expansion is a conventional steel structure with a combination of precast concrete wall panels and masonry.

www.gsabusiness.com 21

22

MANUFACTURING & SUPPLY CHAIN REPORT

www.gsabusiness.com

January 9 - 22, 2017

AAPA picks new chairman Staff Report

gsanews@scbiznews.com

T

HIGHWAY 101 BUSINESS PARK, DUNCAN, SC PRIME INDUSTRIAL LAND – BUILD TO SUIT

±3.08 Acre Development Site, Excellent Topography, Great Location, Build-to Suit Option (25,000 SF expandable to 45,000 SF), Lease rate includes 10% office space Lyons Industrial Properties is pleased to offer ±3.08 acres of prime industrial land tract located at Highway 101 Park in Duncan, SC. This site features an excellent location right off Berry Shoals Road which connects HWY 101 and Hwy 290, the main industrial corridors in Spartanburg County. The site is only 2.8 miles from I-85. The neighboring buildings are occupied by BMW, FedEx Freight, AFL, Averitt Express, Hilldrup Moving & Storage, Brenntag Southeast and Universal Packaging. This is an excellent tract for industrial development!

Spartanburg, SC 29302 888.420.0011 Toll Free 864.583.0094 Office

Contact: Bobby Lyons, CCIM or Adam Padgett blyons@lyonsgroupllc.com apadgett@lyonsgroupllc.com www.lyonsindustrial.com

LYONS INDUSTRIAL PROPERTIES S A L E S • L E A S I N G • D E V E LO P M E N T

he American Association of Port Authorities picked Mark McAndrews as its chairman of the board for the 2016-17 year.

McAndrews is the port director at the Port of Pascagoula in Mississippi and succeeded Jim Quinn, CEO of Port St. John in New Brunswick, Canada, according to a news release from the association.

“AAPA’s new chairman, Mark McAndrews, will provide strong leadership as AAPA continues to educate stakeholders, provide services, and advocate policies that strengthen the ability of member seaports to serve their global customers and create economic and social value for their communities,” said Kurt Nagle, AAPA president and CEO, in the release. “Mr. McAndrews was elected chairman of the board in an April 2016 vote of AAPA’s board of directors, representing port officials throughout the Americas. He has the knowledge, leadership skills, enthusiasm and respect to advance our industry’s priorities and partnerships on common issues.”

Other members of the U.S. delega-

tion include: Chairman-elect Steven Cernak, of Port Everglades, and ViceChairman William D. Friedman of the Cleveland-Cuyahoga County Port Authority.

The Canadian delegation of officers includes: Chairman – Gaétan Boivin, TroisRivières Port Authority; Chairman-elect – Denis Caron, Belledune Port Authority; Vice Chairman – Carl Laberge, Saguenay Port Authority, and Past-Chairman – Jim Quinn, Port Saint John.

The delegation elected to represent the Caribbean includes: Chairman Glenn Roach of Barbados Port Inc. The chairman-elect is Grantley Stephenson of Kingston Wharves Limited and the vice chairman Clement Reid of the Port Authority of the Cayman Islands.

The Latin American delegation consists of: Chairman – Gerardo Varelalero, Autoridad Marítima de Panamá; Chairman-elect – Raúl Urzúa, Empresa Portuaria Valparaíso, and Vice Chairman - Alberto Diaz, Administración Nacional de Puertos de Uruguay.

During its annual convention, the AAPA recognized Gary LaGrange, president and CEO of the Port of New Orleans, with its Distinguished Service Award. LaGrange served as AAPA chairman in 2004-05.

State agency gets grant for logistics industry Staff Report

gsanews@scbiznews.com

T

he South Carolina Council on Competitiveness received a $175,000 federal grant from the U.S. Department of Commerce’s Economic Development Administration.

The funding will partially fund the council’s work to develop the state’s logistics industry.

“South Carolina has established itself as a key player in the logistics industry on the global stage,” said Ann Marie Stieritz, president and CEO of the South Carolina Council on Competitiveness, in a news release. “Our geographic location at the center of the southeastern United States, in addition to our transportation infrastructure - highways, railways, inland ports, the Port of Charleston, and proximity to international airports - gives us a natural competitive advantage.”

The council received a similar grant in 2013 to further its aerospace initiative, now called SC Aerospace. Stieritz said there are similar principles between logistics and aerospace. She said “when stakeholders come together to make a

high-impact industry more competitive on the global stage, the result is economic growth that benefits South Carolina’s businesses and citizens.”

According to the S.C. Department of Transportation’s Multimodal Plan, more than 375 million tons of freight, valued at nearly $600 billion, moved across South Carolina’s freight network in 2011. That tonnage is expected to grow by 81% from 2011 to 2040.

“Our first step will be to understand what companies and assets we have in South Carolina’s logistics industry,” said Suzanne Dickerson, who was recently hired by the council to lead its logistics efforts. “Once we have that information, we can analyze their current impact on the state’s economy and identify opportunities for growth.”

Dickerson said the council’s initiative will also convene an Executive Form for the industry’s private sector leaders to establish goals and objectives for a strategic plan. The council will also work to support innovation by working with higher education institutions to develop an inventory of academic resources to solve industry problems.

January 9 - 22, 2017

MANUFACTURING & SUPPLY CHAIN REPORT

www.gsabusiness.com 23

Fluor’s Seaton elected to NAM board of directors Staff Report

gsanews@scbiznews.com

T

he National Association of Manufacturers (NAM) announced that David Farr, chairman and CEO of Emerson; and David Seaton, chairman and CEO of Fluor Corp., have been elected chairman and vice chairman, respectively, of NAM’s Board of Directors.

They took office for a two-year term on Jan. 1, according to a news release.

Farr previously served as the NAM board vice chairman for international economic policy. During his tenure, Farr helped with the passage of Trade Promotion Authority, Miscellaneous Tariff Bill legislation and reauthorization of the U.S. Export-Import Bank.

“The business community should be ready to approach the policy hurdles we are facing in innovative, effective and principled ways,” Farr said, in the release. “I look forward to working with all NAM members in helping to drive this effort. Manufacturers are ready to work with the new administration and Congress to advance priorities that will make manufacturers in the U.S. more competitive and strengthen

our economy.”

Seaton has been involved with the NAM Board of Directors, working on advocacy issues in Washington, D.C. Fluor is based in Irving, Texas and has offices in Greenville.

“I’m privileged to help lead the NAM and our manufacturing economy to new heights and to be an advocate, in and outside of Washington, for positive action from our next Congress and our new president to make America an even more attractive place to manufacture, invest and thrive,” Seaton said, in the release.

Jay Timmons, NAM president and CEO, said both Farr and Seaton are leaders that “represent the breadth, depth and scope of our industry.”

“They embrace change and challenges and understand what it takes to keep the United States competitive and improve our quality of life,” Timmons said. “I am confident this new board leadership will bring the talent and the tenacity to take the NAM to the next level.”

Timmons expressed his gratitude for the tireless efforts and strong leadership of outgoing NAM Board Chairman Gregg Sherrill, chairman and CEO of Tenneco Inc., and NAM Board Vice

Chairman John Lundgren, chairman of the board of Stanley Black & Decker Inc. “We have become stronger with Gregg and John at the helm, and manufacturers appreciate their selfless and effective dedication to our agenda for manufacturing success,” Timmons said.

Ellis

Stieritz

SCMEP adds two new board members A supply chain executive and the leader of a business-led nonprofit group were recently named to the S.C. Manufacturing Extension Partnership Board of Directors.

According to a news release, Tyrone Ellis of Club Car Ingersoll Rand and Ann Marie Stieritz of the S.C. Council

on Competitiveness, were appointed to the board.

Ellis is the vice president of global quality, operations and the integrated supply chain for Club Car Ingersoll Rand. He is responsible for integrated supply chain strategy for Club Car. He started with Ingersoll Rand in 2012 and helped develop the company’s global quality improvement strategy.

Ellis received the Ingersoll Rand CEO’s 2015 Global Leader of the Year award for his work on quality improvement. He earned a bachelor’s degree from Clemson University and an executive MBA from Tulane.

Stieritz is the president and CEO of the S.C. Council on Competitiveness in Columbia. The council is a business-led non-profit organization that oversees long-term economic competitiveness.

She has more than 18 years of economic and workforce development experience.

Prior to her current post, Stieritz was deputy executive director of the University of South Carolina’s Office of Economic Engagement and was also the vice president for economic and workforce competitiveness for the S.C. Technical College System. Stieritz was also a founding director of Apprenticeship Carolina.

24

www.gsabusiness.com

MANUFACTURING & SUPPLY CHAIN REPORT

January 9 - 22, 2017

Lucas, McCrary win 2016 Milliken Defender of Manufacturing Award Staff Report

gsanews@scbiznews.com

T

he Speaker of the South Carolina House of Representatives and the CEO of a synthetic fiber firm are the recipients of the 2016 Roger Milliken Defender of Manufacturing Award.

Jay Lucas, R-Hartsville, and William “Bill” McCrary Jr. were presented the award during a ceremony in December in Spartanburg.

McCrary is the president and CEO of William Barnet & Sons LLC, a company specializing in synthetic fiber/yarns/polymers.

The company has plants and offices in Europe, Asia and the Americas and its headquarters in Spartanburg. He has served as the company’s CEO since 2001 and been with the company in various capacities since 1970.

He is the chairman of the American Fiber Manufacturers Association for 2017 and will serve as the chairman of the National Council of Textile Organizations and the South Carolina Manufacturers Alliance. McCrary is a member of the Palmetto Business Forum and has focused on community projects such as the McCrary Blood and

Marrow Transplant Unit at the Greenville Hospital System and the Cancer Survivors Park.

McCrary was born in Anderson and graduated from the Baylor School in Tennessee and Duke University.

Lucas represents District 65 in the S.C. House of Representatives. The area includes Darlington, Kershaw, Lancaster and Chesterfield counties. He was elected Speaker Pro Tempore in 2010 and Speaker of the House in 2014.

He previously served as the Darlington County attorney and a city judge for the city of Hartsville. He is a partner with the law firm of Lucas, Warr and White.

In 2016, Lucas was honored with the Wilkins Award for Excellence in Legislative Leadership from the Riley Institute and the Jimmy Newsom Signature Award for public education work in Darlington County.

The Defender of Manufacturing Award was established in 2006 to recognize individuals in the public and private sectors who work to advance the state’s manufacturing industry. It is considered to be the most prestigious award presented by the South Carolina Manufacturers Alliance.

While 2016 intermodal volumes drop, optimism still high for 2017 Staff Report

gsanews@scbiznews.com

A

ccording to a report from the Intermodal Association of North America, drops in trailer volume and international shipments led to an overall decline in intermodal volumes.

Over the third quarter of 2016, the report said intermodal trailer volumes fell 26.9% year-over-year while international shipments dropped 6.7%. Despite those losses, domestic containers grew 3.3%, but the overall volume loss was reported at 4.6%, according to the Intermodal Market Trends and Statistics report.

Joni Casey, president and CEO of the Intermodal Association of North America, said the quarterly figures were aligned with previous quarters, “reflecting sluggish market conditions.”

Total intermodal volume had its biggest drop in the South-Southeast corridor where volumes dropped 11.2%. The Midwest-Southwest corridor saw its volume fall 5.3% while the Northeast-Mid-

west corridor and Trans-Canada lanes had modest drops of 0.8% each, according to the report. The Midwest-Northeast corridor experienced the only increase during the time period, a 3% gain due to an increase in total containers.

Regionally, the report said international shipments increased intermodal volumes by 0.1% in the Northeast and 4.4% in the Northwest. In all other regions, international shipments contributed to declines in volume. In the Southeast, Southwest and Midwest, the volume declines were close to the 4.6% average while western Canada fell off by 0.2% and eastern Canada dropped 2.9%. The Mountain Central and Mexico regions had the largest drop off in international containers at 11.5%.

Domestically, higher trucking capacity led to a 14.6% year-over-year increase in highway volumes.

“Projections for 2017 are more optimistic, based on continued increases in consumer spending and expectations that the international side of the equation will stabilize,” Casey said, in a news release announcing the findings.

IN FOCUS

ECONOMIC FORECAST

LIST Economic Development Agencies, page 29

2017

ECONOMIC FORECAST

Continued stable growth expected for state economy

by Matthew Clark mclark@scbiznews.com

N

ot only has the economy in the Upstate been robust, but so has the state’s. But, the potential for changes could have an impact on the state’s economy and GSA Business Report asked economists around the state to find out what they thought the new year had in store for the state’s economic picture.

We reached out to Frank Hefner, professor of economics at the College of Charleston and Joey Von Nessen with the Darla Moore School of Business at the University of South Carolina.

Here is what they had to say:

As we enter a new year, there are many changes on the horizon. A new Congress has been seated and a new President will assume duties later this month. In South Carolina, Gov. Nikki Haley may be leaving for a new post. All of the changes lead to questions about the forecast of our economy in South Carolina and the Upstate. GSA Business Report talked to four economists to paint a picture for our economy in 2017.

Q. Now that the 2016 election cycle is over, what kind of changes do you see in terms of the national economy for 2017?

Hefner: The stock market seems to have jumped the gun on the financial sector – witness the run up of stock prices for banks in anticipation of financial deregulation. However, Congress has not met and decided that. Tax reform that encourages investment in the U.S. is probably the best fiscal policy that could be enacted. Basically, the U.S. economy has been humming along nicely this past year and I see no reaSee STATE ECONOMY, Page 26

➤

Economists: Business as usual in the Upstate … for now

by Matthew Clark mclark@scbiznews.com

T

he start of the new year brings with it changes that may have an impact on our economy.

Even with the conclusion of the election cycle and the election of Republican Donald Trump as the nation’s president, there remains a degree of uncertainty as to what the leadership change will mean for the economy in

the Upstate and South Carolina.

GSA Business Report reached out to economists across the state to seek out their thoughts on what they see the immediate future holding for our economy.

Locally, we talked to Tom Smythe, professor of business and economics at Furman University and Scott Baier, interim chairman of Clemson University’s John E. Walker Department of Economics.

Here is a look at the Upstate’s economic forecast: Q. Now that the 2016 election cycle is over, what kind of changes do you see in terms of the national economy for 2017?

Smythe: At this point, it is hard to say with certainty. However, there are several factors that seem fairly certain under a Trump administration. First, there seems to be bipartisan support for spending on

infrastructure – roads, bridges, ports and communications. Such spending is likely to have two effects immediately, the first being an increase in jobs in those sectors of the economy, which of course is positive. Second, this spending will likely lead to higher deficits and therefore add to the nation’s debt. Any savings from reducing spending in other areas, even if they were to fully offset the infrastructure spending, See UPSTATE ECONOMY, Page 26

➤

26

IN FOCUS: ECONOMIC FORECAST

www.gsabusiness.com

UPSTATE ECONOMY, continued from Page 25

➤

would likely occur over time. The real unknown with this policy is whether it makes the U.S. more competitive. In theory, this investment should make our transportation networks safer and more efficient, thereby enticing businesses to grow. We would expect similar benefits with an improving communications infrastructure.

Noticeably absent from my response is the impact of President-elect Trump’s promise to lower individual and corporate tax rates. This is because I believe this may take longer than 2017. He and the legislature appear committed to changes, but this type of debate invariably takes longer than expected. If he is successful, then there will be positive impacts on the economy, although it may take a couple of quarters for people to get the money and use it. However, if he is successful with tax cuts, when combined with his promises for infrastructure spending, deficits and the debt will rise significantly in the short to intermediate term.

So, we have offsetting short-term effects from these policy proposals. The real question is whether these policies will lead to stronger growth in the intermediate to long-term that will provide a return on investment. The term investment I use here is critical because both of these policy proposals are meant as investments, as opposed to pure spending, but all investments are risky and only time will tell if the return on the investment is justified.

Baier: Over the last 16 years, income growth has been lower than the long-term average for the U.S. economy. The election results made it a little more difficult to project. President-elect Trump’s tax plan has the potential to raise economic growth.

However, the efficacy of tax reforms will also depend on changes in government spending. If lower taxes are not coupled with targeted reductions in government expenditures, economic growth may not be any higher than the last 16 years.

Q. The economy of the Upstate is unique and has been robust for some time now. What kind of impact do you see the presidential election having on the Upstate’s economy in 2017?

Smythe: In the short-term, which to me includes 2017, I think it will largely be business as usual. The real question for the Upstate is how a President Trump will impact international trade. Dr. Brent Nelsen and I wrote an op-ed for the Greenville News just prior to the election outlining how neither candidate’s stance on international trade was healthy for the country as whole but the Upstate in particular. Both candidates were against TPP and Mr. Trump has indicated he would repeal or renegotiate most trade pacts that we have and possibly impose stiff tariffs on imports. Such policies will harm the nation and the Upstate in particular in at least three ways. The first is inflation. By increasing the cost of imported goods, U.S. consumers will pay higher prices. Some may argue that this will create

Scott Baier

I do not see the outcome of the election having a significant impact on the economy of the Upstate. The economic environment in the area will likely continue to attract businesses and workers.

If the administration tackles tax reform, individual and corporate, then the benefits would likely be more broad based. The one industry that may not be hurt, but may not benefit, is home construction.

Tom Smythe

jobs in the U.S. to replace those products; however, there are two problems with this approach. First, we will not be able to ramp up production that quickly, if at all. Second, the U.S. imposing tariffs does not happen in a vacuum. In essence, U.S. companies go from having a multi-billion person market to the roughly 350 million person market in the U.S. Third, U.S. companies will no longer be exposed to direct competition, meaning they will not have incentives to innovate or lower costs at the same pace, neither of which is good for consumers.

The more sizable impact to the Upstate would likely be beyond 2017. If Presidentelect Trump follows through with his trade policies, it will have a negative impact on job creation in the Upstate. The primary driver of job creation in the last 20 years has been from foreign firms like BMW and Michelin, as well as others. It has been a primary goal of every South Carolina governor since at least Carroll Campbell to attract business to the state, and we have been very successful at recruiting foreign firms.

Gov. Haley has continued these efforts with great success. Protectionist policies would, over time, reduce new investment and could lead some firms to leave the Upstate, and you do not replace a BMW overnight.

Baier: I do not see the outcome of the election having a significant impact on the economy of the Upstate. The economic environment in the area will likely continue to attract businesses and workers.

Employment growth in the Upstate has been robust across industries and occupations so that even in the event of a bad economic shock to an industry or a sector of the economy, the Upstate should be able to withstand the shock and continue to grow.

Q. Looking at the different sectors of business in the Upstate, what sectors do you see thriving in the next year and why? Conversely, what sectors do you see falling off and why?

Smythe: The answer to this question really depends on the speed with which certain policy proposals are implemented.

The two big winners would seem to be

healthcare, not necessarily insurance but delivery, and banking. Beyond that, I think it very much depends on what policies are implemented first. If infrastructure spending is first, then heavy construction would be a quick winner. If the administration tackles tax reform, individual and corporate, then the benefits would likely be more broad based. The one industry that may not be hurt, but may not benefit, is home construction. If taxes are cut, people will have more money; however, interest rates (mortgage rates) will likely continue to rise, which could offset tax cut benefits.

Baier: One of the hardest things to predict about the economy is which sectors are going to expand and which sectors are going to contract. Periods of high economic growth are typically the result of innovations and new developments in a few sectors of the economy that spread throughout the economy. These ripple effects result in faster economic growth. As such, it is hard to predict which sectors will grow exceptionally fast. Therefore, if economic growth picks up it is difficult to predict where employment will increase the most. If economic growth continues around 2%, employment growth will likely occur in the sectors driven by demographics and the underlying fundamentals that have been the driver over the last few years.

Q. It has been reported that the state’s economy has been in a state of growth while the national economy has tapered off slightly. Do you see that trend continuing into 2017? Why or why not?

Smythe: This is an area where Gov. Haley has excelled, attracting new business to the state. In the short-term, we are unlikely to see any change if firms have already started construction of facilities.

However, prior commitments for capital investment where construction has not begun and new investment may slow as firms wait to see what the trade landscape will look like. Firms with projects underway are unlikely to abandon them, but new projects may be delayed. So, I would see a slowing growth but with a lag. Firms

Jan. 9 - 22, 2017

want to see how the current uncertainty regarding a President Trump’s trade policies will be resolved before they commit to new investment.

Baier: For the most part the state’s economic performance is very similar to the national economic performance. I would expect that trend to continue. I do think that there are reasons to believe that the Upstate and the region will fare better than the national average, but I do not expect these differences in employment and economic growth to be dramatically different.

Q. What is the biggest concern you have for the national economy in 2017?

Why is that a concern and is there a way to overcome that concern?

Smythe: I think there are several, all of which are related. First is the trade situation. Restricting or putting up barriers to trade is not good. It will hurt the U.S. and especially the Upstate. My second concern is a growing debt burden from tax cuts and increased spending. Republicans in Congress should have a tough time selling these to the public after being so vocal in recent years regarding the national debt. Congress will sell the fact that people will have more in their pockets, which is absolutely true, and that growth will lead to more taxes in the long term.

We have to deal with the debt now and there is no guarantee the growth will be enough to offset the debt that we have to take on now. On average, that has not happened, in part because as growth accelerates, politicians on both sides of the aisle start to spend more. A compounding factor is that we will be adding this debt as interest rates are rising, meaning the incremental cost of each additional borrowed dollar plus every dollar we have borrowed to this point is higher. Unfortunately, cutting taxes has populist support at the individual level. However, I would ask people to look at this issue at the community and national level. Third, I see inflation rising with increased spending and tax cuts, especially if undertaken simultaneously. This will be more severe if protectionist trade policies are also enacted. We can live with some faster inflation; however, once inflation starts, it can be hard to manage and usually comes with serious consequences.

Baier: The biggest concern is uncertainty. President-elect Trump liked to view himself as a political outsider that when elected would change the way things were run in Washington, D.C. What the change will be, no one is quite sure. As such, there I think people think that there are more upside risks as well as more downside risks associated with his economic plan. In order to mitigate these risks, President-elect Trump should try to provide as much clarity as possible about his economic vision. The sooner he provides details on taxing, spending and regulation it will allow markets to adjust and ease the transition.

Jan. 9 - 22, 2017 STATE ECONOMY, continued from Page 25

IN FOCUS: ECONOMIC FORECAST

➤

South Carolina’s economic growth has tapered off in 2016 as well, even though the state’s economy has consistently outperformed the U.S. economy by many measures during this current expansion.

son for that change - except for antifree-trade policy being enacted. However, I do see trends in place that are completely independent of the political outcome. We are confronted with a slowdown in productivity and an aging population. If immigration is slowed, then the size of our workforce cannot sustain the kind of growth we would like to see.

Von Nessen: Although the U.S. economy experienced relatively weak growth during the first half of 2016, it has rebounded in the second half of the year. The U.S. saw relatively strong GDP growth of 3.2% in the third quarter and the labor market has strengthened considerably – gaining about 200,000 jobs per month since June. With unemployment below 5% and disposable income continuing to rise, consumer spending – the biggest part of the economy – is likely to remain strong going into 2017. The likely areas of impact for the incoming president will be infrastructure spending and changes to international trade policy.

Public infrastructure projects have the potential to boost employment and earnings in construction beyond the residential sector. Trade policy offers the biggest uncertainty, with both upside potential and downside risk depending on the specifics.

on the South Carolina economy will likely come from two sources: the renegotiation or elimination of trade deals, and any changes in military and veteran spending. South Carolina’s economy relies heavily on export-oriented manufacturing. In addition, many South Carolina companies rely on suppliers located outside of the U.S. Any change in trade policy that increases the costs of these suppliers is likely to slow our state’s growth, all else being equal. By contrast, any change in trade policy that makes South Carolina more attractive for foreign direct investment is likely to have a positive impact.

Q. The economy of South Carolina is unique and has been robust for some time now. What kind of impact do you see the presidential election having on the South Carolina economy in 2017?

Hefner: For South Carolina, the first major impact will be political if our governor becomes the next ambassador to the U.N. After that, the major concerns for South Carolina based on the election rhetoric are foreign trade and immigration. South Carolina depends on both exports, especially through our port, and imports as inputs to our manufacturing sector. In addition, the state has benefited tremendously from foreign direct investment in the state: think BMW, Volvo, Michelin and so on. Domestic firms that have had a large impact on the state, like Boeing, depend on foreign markets. The anti-trade rhetoric does not bode well for the state.

South Carolina is currently enjoying a boom in construction. Many contractors are concerned about labor availability. A reduction in immigrant labor could squeeze this activity.

Tax reform that benefits the entire economy will of course benefit South Carolina. Tax reform is a much needed change.

Von Nessen: The biggest impact that President-elect Trump will have

Q. Looking at the different sectors of business in South Carolina, what sectors do you see thriving in the next year and why? Conversely, what sectors do you see falling off and why?

Hefner: Tourism will continue to be a bright spot for the state, especially as income increases across the country.

The manufacturing sector should see growth as GDP grows. I don’t see any specific sectors that might fall off.

Von Nessen: Although growth has been fairly broad-based throughout 2016, the two leading sectors this year have been construction and advanced manufacturing. Construction was the overall industry leader for much of 2016 as the state’s housing markets have continued to recover after lackluster growth during much of the current expansion period between 2010 and 2015. The Charleston metropolitan region benefited most from these construction gains due to the region’s high employment and income growth as well as a strong second homes market. We expect to see housing markets continue to thrive in 2017 as consumers who have delayed housing purchases begin buying in additional markets across the state.

Advanced manufacturing, another leading industry in 2016, will be important to monitor closely as we move

Joey Von Nessen

Frank Hefiner

For South Carolina, the first major impact will be political if our governor becomes the next ambassador to the U.N. After that, the major concerns for South Carolina based on the election rhetoric are foreign trade and immigration. into the new year. Advanced manufacturing is largely export-oriented, but there has been virtually no growth in the volume of exports in 2016. In addition, the rate of employment growth in advanced manufacturing has slowed considerably during the second half of the year. Much of this change is due to a significant appreciation of the U.S. dollar that has made manufactured exports more expensive for foreign consumers. South Carolina remains a global hotspot for advanced manufacturing – as the recent announcements of Volvo and Mercedes affirm. Thus, any reductions in the growth rate of the advanced manufacturing sector is likely to be temporary.

Q. It has been reported that the state’s economy has been in a state of growth while the national economy has tapered off slightly. Do you see that trend continuing into 2017? Why or why not?

Hefner: The third quarter GDP figures just came in at a robust 3.2%, highest growth rate in two years. The national economy may have stopped tapering and started growing again. That is good news for South Carolina also.

But it would be hard for South Carolina to consistently maintain a growth rate that is higher than the national rate. So in that respect, the state will grow but closer to the national rate.

Von Nessen: South Carolina’s economic growth has tapered off in 2016 as well, even though the state’s economy has consistently outperformed the U.S. economy by many measures during this current expansion. Statewide employment growth peaked at approximately 3% in 2015 and has dropped to an average of approximately 2.5% in 2016. The coastal regions of the state – Charleston, Hilton Head and Myrtle Beach – have fared slightly better than the Midlands and Upstate. This is primarily due to the fact that these regions have benefited from strong housing demand, especially in the second homes market; and

www.gsabusiness.com 27

these regions are often the beneficiaries of increases in consumer spending because of their strong tourism industries.

The overall reduction in growth in 2016 is largely the result of three factors: a slowdown in global markets; an appreciation of the U.S. dollar, and uncertainty surrounding the U.S. presidential election. A slowdown in global markets and an appreciation of the U.S. dollar both lower export activity in South Carolina.

South Carolina’s economy is strong and stable headed into 2017. Despite the marginal slowdown in 2016, we expect continued growth in 2017 comparable to levels experienced over the past 12 months. Achieving higher levels of growth will require that one or more industries expand significantly in the coming year.

Q. What is the biggest concern you have for the national economy in 2017? Why is that a concern and is there a way to overcome that concern?

Hefner: The biggest concern is the anti-trade rhetoric. So much of our manufacturing depends on trade that a slowdown of imports would actually hurt American industry.

With wage pressure, inflation will be raising its head again. That typically mean higher interest rates. I don’t see higher rates stifling consumption or the housing market, especially if wages increase.

Von Nessen: At both the national and state levels there are growing concerns about the ability for firms to be able to fill current job vacancies.

This reflects a paradigm shift in the labor market relative to earlier points in the economic expansion. A good way to highlight this difference is to compare our state’s economy when Gov. Haley took office in 2011 to our state’s economy today – shortly before she (likely) leaves office. Haley’s priority was to generate employment opportunities for South Carolinians. In 2017, a new governor will likely inherit a healthier economy in which unemployment is relatively low but where a skills gap is also preventing many unemployed workers from being hired for available positions.

We have seen – both nationally and locally – a rise in the number of job vacancies for a given level of unemployment, which can indicate a skills mismatch between what employers are seeking and what workers currently possess. In addition, there is a concern about the void that will be left by retiring baby boomers. As the labor market continues to strengthen and unemployment continues to fall, matching qualified candidates with open jobs and providing the right types of training for available jobs will be a challenge in South Carolina and across the nation.

28

www.gsabusiness.com

IN FOCUS: ECONOMIC FORECAST

Jan. 9 - 22, 2017

Jan. 9 - 22, 2017

IN FOCUS: ECONOMIC FORECAST

www.gsabusiness.com 29

Economic Development Organizations Ranked by No. of Employees

Phone/ Website

Top Official/ Year Founded

Upstate SC Alliance 124 Verdae Blvd., Suite 202 Greenville, SC 29607

864-283-2300 www.upstatescalliance.com

John Lummus 2000

9

To position and market the Upstate to compete for business investment globally; to spearhead a global strategy to attract new investment to the region; to increase opportunities, ultimately leading to greater investment, enhancing the prosperity and quality of life for the Upstate.

Appalachian Development Corp.

3531 Pelham Road, Suite 100 Greenville, SC 29615

864-382-2350 www.appalachiandevelopmentcorp.com

Brad Schneider 1982

7

Nonprofit economic development lending corporation offering "gap financing" loans, working with local lenders to provide long-term, fixedrate funding to lower the overall debt service requirements and allow for the maximum leverage of applicants' resources; funding comes primarily from public funds, thus the thrust is to advance job creation.

City of Greenville Department of Economic 864-467-4401 Development www.greenvillesc.gov/econdev/default.aspx P.O. Box 2207 Greenville, SC 29602

Nancy Whitworth -

7

To promote a variety of activities and programs designed to obtain a healthy balance of strategic economic growth and improved quality of life. This is achieved by facilitating private development, implementing programs for business retention, pursuing annexation opportunities, developing and implementing revitalization, recruiting businesses and cultivating residential development.

Greenville Area Development Corp.

233 N. Main St., Suite 250 Greenville, SC 29601

864-235-2008 www.gogadc.com

Mark Farris 2001

7

Public-private economic development partnership dedicated to the growth and prosperity of Greenville County; to assist new and existing companies in growing or relocating here, thereby improving the quality of life of every Greenville County resident.

S.C. Manufacturing Extension Partnership 37 Villa Road, Suite 500 Greenville, SC 29615

864.288.5687 www.scmep.org

Chuck Spangler 1989

7

Private, nonprofit group that provides S.C. businesses a range of strategies and solutions to drive growth, eliminate waste and develop resources; an affiliate of the National Institute of Standards and Technology operating under the U.S. Department of Commerce to promote innovation and industrial competitiveness.

S.C. Technology & Aviation Center 2 Exchange St. Greenville, SC 29605

864-277-3152 www.sc-tac.com

Jody Bryson 1964

7

Business and industrial air park with more than 80 tenant companies that have an international presence in such industries as manufacturing, trade, technology and aviation, including Lockheed Martin, Michelin and 3M.

Small Business Development Center 1 N. Main St. Greenville, SC 29601

864-370-1545 www.clemson.edu/sbdc

Jill Burroughs, Scott Welchel, Ben Smith 1979

7

To advance South Carolina's economic development by helping entrepreneurs grow successful businesses; offering five offices in the Upstate.

Spartanburg Economic Futures Group P.O. Box 1636 Spartanburg, SC 29302

864-594-5000 www.economicfuturesgroup.com

R. Carter Smith 2000

7

To drive the international business movement in the Southeast and target industries of automotive, advanced materials, biosciences, energy and logistics to reflect existing industries and sectors expected to perform well economically in the area.

Greenwood Partnership Alliance 109 W. Court Ave. Greenwood, SC 29646

864-388-1250 www.partnershipalliance.com

Heather Simmons Jones 1986

6

To provide leadership and financial support improve economic growth and educational achievement in Greenwood County, in order to enhance the area's quality of life.

Anderson County Office of Economic Development 126 N. McDuffie St. Anderson, SC 29621

864-260-4386 www.andersoncountytoday.com

Burriss Nelson 1986

5

To recruit, create and support new industries within Anderson County and provide support to existing industries and businesses, in order to create jobs, wealth and an expanded tax base in Anderson County.

Clemson University Office of Economic Development Clemson, SC 29634

864-656-3642 www.clemson.edu/economic-development/ contact.html

Alexa Woodward -

5

To build partnerships needed to create economically viable and competitive communities in S.C.

CU-ICAR 5 Research Drive Greenville, SC 29607

864-283-7100 www.cuicar.com

Fred Cartwright 2007

5

An advanced-technology research campus where education, research and economic development collaborate to create a global venue for the automotive industry.

InfoMentum: A Program of the Appalachian Council of Governments P.O. Box 6668 Greenville, SC 29607

864-242-9733 www.infomentum.org

David Shellhorse 1996

4

To support regional economic development through strategic planning and GIS-driven data and mapping services.

Oconee Economic Alliance 528 U.S. Highway 123 Bypass, Suite G Seneca, SC 29678

864-638-4210 www.investoconeesc.com

Richard K. Blackwell 1960

4

Public-private nonprofit effort to accelerate job creation and capital investment, increase per capita income, diversify the local tax base and generate awareness of Oconee County as a business location.

Alliance Pickens P.O. Box 149 Liberty, SC 29657

864-898-1500 www.alliancepickens.com

A. Ray Farley 1995

3

Public-private economic development organization to attract, retain and increase jobs and grow the tax base in Pickens County; board oversees program of work and helps lead staff in recruiting new industry and maintaining existing industry in the county.

Greer Development Corp.

111-B S. Main St. Greer, SC 29650

864-416-0125 www.greerdevelopment.com

Reno Deaton 2002

3

Retention of Greer's existing businesses; recruiting targeted industries and high-impact commercial businesses; coordinating the recruitment and redevelopment activities for historic downtown Greer; facilitating the development of new sites and buildings to encourage new, highquality development; and marketing the Greer community.

Laurens County Development Corp.

P.O. Box 427 Clinton, SC 29325

864-939-0580 www.laurenscounty.org/ed

Marvin Moss 2007

3

To ensure Laurens County continues to be a community of “accelerating progress� that focuses on economic opportunities that result in a viable future for all residents.

Abbeville County Development Board 901 W. Greenwood St., Suite 2600 Abbeville, SC 29620

864-366-2181 www.abbevillecountysc.com

Stephen Taylor 1953

2

To generate new capital investment and job creation within the county by assisting clients with site selection and development, workforce recruitment and training, information management, incentives and regulatory issues; strategic planning, marketing, production of a semiannual newsletter, media relations, tourism, downtown revitalization.

City of Spartanburg Office of Economic Development 145 W. Broad St. Spartanburg, SC 29306

864-596-2972 www.cityofspartanburg.org

Patty H. Bock 1831

2

To expand Spartanburg's tax base and provide quality job opportunities through business development, retention and expansion and facilitation of real estate development; to coordinate and administer the Spartanburg Development Corp.; to promote and assist the growth of business concerns, increase employment opportunities and expand businesses for the residents of Spartanburg.

Innovate Anderson 126 N. McDuffie St. Anderson, SC 29621

864-260-1061 www.innovateanderson.com

Burriss Nelson 1993

2

Public-private economic development organization formed by Anderson County, the city of Anderson, Anderson Area Chamber of Commerce and private businesses to provide marketing support and mobilize resources to help the Anderson County Office of Economic Development attract new industry and commercial and retail businesses through marketing support.

Union County Development Board 207 S. Herndon St. Union, SC 29379

864-319-1097 www.uniondevelopmentboard.com

Andrena PowellBaker 1982

2

To promote sustainable economic growth and quality of life by recruiting targeted industries, putting into place support mechanisms for retaining existing industry, encouraging diverse business growth; and improving internal and external communications.

Cherokee County Development Board 101 Campus Drive Gaffney, SC 29341

864-206-2804 www.cherokeecountydevelopmentboard.com

Jim Cook 1970

1

To bring new jobs and investment to Cherokee County by recruiting business and industry, fostering a pro-business environment and assisting companies located within Cherokee County.

864-242-9801 www.gcra-sc.org

Stanley Wilson 1974

1

To improve the quality of life for residents of Greenville County through the implementation of innovative community development and revitalization strategies.

864-467-7409

Fred Payne 1999

-

To promote economic development with improved multimodal transportation options.

Company

Greenville County Redevelopment Authority 301 University Ridge, Suite 2500 Greenville, SC 29601 Greenville County Economic Development Corp.

301 University Ridge, Suite 2400 Greenville, SC 29601

Employees Mission/Description

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

Researched by GSA Business Report staff

AT WORK

WHO TO KNOW AND WHERE TO GO AROUND THE UPSTATE

Business Digest

Shaw, Hybl recognized at Upstate forum Longtime Upstate community leader Minor Mickel Shaw and Ten at the Top Executive Director Dean Hybl were recognized during the 2016 Celebrating Successes Forum hosted by Ten at the Top. Shaw received the 2016 Welling Award for Regional Collaboration and the first-ever Burdette Leadership Award. Hybl was presented the Welling Award in recognition of his efforts since becoming the first full-time director for Ten at the Top in 2010. The Welling Award for Regional Collaboration was developed in 2012 in recognition of Irv Welling III, the founding chairman of Ten at the Top, and is given annually to an individual, business or organization whose actions have demonstrated a sustained commitment to developing and fostering regional collaboration. The Burdette Leadership Award was established by the Ten at the Top board of directors to recognize Carol Burdette, the first chairwoman for Ten at the Top (serving for 2014-2015). The award is given to a woman who both leads and serves in the Upstate.

The 2016 Welling Award for Regional Collaboration and the Burdette Leadership Award were presented to Dean Hybl and Minor Mickle Shaw, respectively. (Photo/Provided)

West Pelzer, Anderson Free Clinic receive TATT grants

Ten at the Top, an organization created to enhance Upstate economic vitality and quality of life, announced the town of West Pelzer and the Anderson Free Clinic as recipients for the 2016 Hughes Investments Elevate Upstate Community Vibrancy Grants. Each will receive $5,000 to help fund community initiatives. Anderson Free Clinic plans to conduct a farmto-table event to promote awareness of food insecurity in low access communities in Anderson County while featuring local farms and food products. The town of West Pelzer will use funds to supports its “Expand Your Wings” projects, an educational venture and an art installation. In addition to those grants, Hughes Investments presented each of the other three grant finalists – city of Pickens, Hub-Bub in Spartanburg and Children & Choices/Hello Saville in Union and Spartanburg – with $1,000 to be used to help start community initiatives.

Clemson scientists unveil software that revolutionizes wildlife habitat connectivity modeling

A trio of Clemson University scientists has unveiled a groundbreaking computational software called “GFlow” that makes wildlife habitat connectivity modeling faster, more efficient and superior in quality and scope. After eight years of research and development, the software was announced in the scientific journal Methods in Ecology and Evolution. Clemson University postdoctoral fellow Paul Leonard is the lead author of the article, “GFlow: software for model-

ing circuit theory-based connectivity at any scale.” Leonard’s co-authors are Rob Baldwin, the Margaret H. Lloyd-Smart State Endowed Chair in the forestry and environmental conservation department; and Edward Duffy, formerly a computational scientist in the cyberinfrastructure technology integration department who recently left the university to join BMW. GFlow will enable scientists to solve ecological problems that span large landscapes.

Donation to support sustainability program at Furman

Former Furman University President David E. Shi and his wife, Angela Halfacre Shi, have made a $500,000 gift to the university to create an endowed fund for students who are involved in the work of the David E. Shi Center for Sustainability. The Shi Center was established in 2008 to foster and promote interdisciplinary research and teaching in support of sustainability on campus and in the greater community.

NGU master’s program received accreditation

North Greenville University’s T. Walter Brashier Graduate School has received approval from the Southern Association of Colleges and Schools Commission on Colleges for its Master of Medical Science in Physician Assistant Medicine degree program. The new program has been approved to be offered at the university’s new off-campus instructional site at 405 Lancaster Ave. in Greer.

Twenty students have been selected out of more than 500 applicants to participate in NGU’s inaugural class.

People in the News ADVERTISING, MARKETING & PR The 4A’s Foundation, a trade association representing advertising agencies, announced Joe Erwin has been named chairman of the board. Erwin is president of Erwin Erwin Creates in Greenville and co-founder and former president of Erwin Penland.

Infinity Marketing announced that Meghan Foreman joined the company as analytics manager. Foreman most recently served as marketing campaign Foreman manager for OptionsHouse and Aperture Group in Chicago.

EDUCATION Furman University music professor Mark Kilstofte has received a 2016 Copland House Residency Award, which provides an allexpense-paid stay at Aaron Copland’s NaKilstofte tional Historic Landmark home in New York’s Lower Hudson Valley. The award provides composers the opportunity to focus on creative work in the same inspiring environment enjoyed by Copland himself for the last 30 years of his life.

Clemson University has promoted Brett Dalton to executive vice president for finance and operations and Angie Leidinger to vice president for external affairs.

Dalton, a two-time Clemson graduate who has worked at the university since 1991, has served as vice president for finance and operations since 2007. Leidinger, who earned her bachelor’s degree from Clemson, joined the university as executive director of governmental affairs in 2002 and assumed additional duties as executive secretary to the Clemson board of trustees in 2008.

Phyfer

Cheri Marie Phyfer has been named to the Clemson University board of trustees.

She succeeds Leon J. “Bill” Hendrix of Kiawah Island, who is retiring from the board after serving since 1995, including

three terms as chairman. Phyfer is president and general manager of the diversified brands division of Sherwin-Williams, a company she joined in 1993 after graduating Hendrix with a bachelor’s degree in management from Clemson. She also earned a master’s of business administration degree from Clemson in 1999. In 2008 she was named one of the “Most Powerful and Influential Women in Texas” by the Texas Diversity Council, and in 2009, the Dallas Business Journal named her to its list of the city’s “Top 40 under Forty” business people.

The South Carolina Association of Technical College Commissioners announced the election of new board members to twoyear terms. Herbert Watts, who serves on the Northeastern Technical College Area Commission, is chairman. Helen Rosemond-Saunders, of Tri-County Technical College’s board, is vice chairwoman.

George Piersol, a member of the Piedmont Technical College board, is treasurer. David Smalls, representing the Technical College of the Lowcountry’s Area Commission, is secretary, and Paul Batson, a member of the Greenville Technical College board, is past chairman of the SCATCC board.

Judy Campanale of Levittown, Pa., and Ed Marram of Wayland, Mass., have been appointed to the Sherman College of Chiropractic board of trustees. Members serve four-year terms. A 1992 graduate of Pennsylvania College of Straight Chiropractic, Campanale is owner of Strauss Chiropractic Center. Marram serves as director of the Entrepreneurial Center at Babson College.

Suzanne Rosenblith has been named associate dean for undergraduate programs in Clemson University’s College of Education.

Rosenblith previously was chairwoman of Rosenblith the college’s department of teaching and learning and has served as faculty at Clemson since 2002.

Get GSA Business Report updates by email.

Register at gsabusiness.com

VIEWPOINT The New South Carolina: A New Leader VIEWS, PERSPECTIVES AND READERS’ LETTERS

F

ebruary 15, 1956, Silas C. McMeekin, President of the South Carolina Electric & Gas Company got together over lunch in Columbia with four of his business friends and decided to create a nice private club where they could have lunch and do their business.

They went to work selling membership, Phil picking a name, Noble buying a site and building the club.

Finally, in February 1961, with grand celebration, the Palmetto Club at 1231 Sumter Street opened its doors to the business elite of the city. Of course, all the members where white and male. For years, the only African Americans or women allowed in the Club were the black waiters, servers and cooks thru the back door and the white wives of members through the front door.

In time, these white leaders decided to create a more exclusive group of business’s leaders that would include men from outside of Columbia as well.

Thus, the Palmetto Business Forum (PBF to insiders) was founded in 1975 as a “non-partisan group of business people, selected from major businesses in South Carolina, organized to formulate positions and voice opinions on state and national issues bearing on the survival and health of the American Economic System.”

Selected is the key word here in that one cannot apply, but only be selected by existing members. Even today, the PBF doesn’t even have a website; if you are a member, you know about things, and if you are not a member, well…

Beginning with 25 members (it has now grown to 40), the PBF was and is a veritable who’s who of major business leaders in South Carolina.

Above all else, they are a safe, judicious, responsible, solid, sober group of (white) men. They have since selected a smattering of women, but best I know they have never had an African American member.

In researching for this column, I found a transcript of a November 1976, presentation to the PBF by then Gov. James Edwards. (It’s amazing what you can find on the internet.) It provides insight into how the PBF operated then – and largely still today. Edwards brought with him the state’s treasurer,

Joan Robinson-Berry, General Manager of Boeing South Carolina.Robinson-Berry speaking at the opening of Boeing's new paint facility in Charleston. (Photo / Emily Matesi)

comptroller general and several other state officials and he began his presentation with ritualistic language about cutting taxes, reducing spending, reducing the number of state employees and ‘responsible’ management of state government.

His presentation had the feel of a company president making a report to the board of directors – and in a sense, that is exactly what it was. For years, the PBF was (and perhaps still is) the de facto board of directors of the state.

So, fast forward to the present.

Picture a commanding, slightly intimidating, African American woman named Joan Robinson-Berry walking into a PBF meeting not to serve lunch but as a new member – as the General Manager of Boeing South Carolina, the largest private sector employer in the state.

Welcome to The New South Carolina.

So, who is this woman who became one of the most important business leaders in South Carolina the moment she set foot on the tarmac of Charleston Airport in June of this year?

Joan Robinson-Berry grew up in La Puente, Calif., a gang ridden suburb of Los Angeles where violence was the one constant in her community. In a recent SC BizNews interview, she said, “I have literally been through every major drama you can have — watching your brother die (he was killed by

a relative), learning about your father’s death on the news (he was a policeman), having my sister die (of Lupus), having the Watts Riots in our city and seeing bodies in your neighborhood from gang violence. We had a lot of tragedy.”

In the same interview, she talked about how she reacted and how she found her way out. “I didn’t focus on that (the violence) …You cannot give obstacles power. You have to really focus on using that as the strength of building character, perseverance and the desire to want more.”

She said of some of her friends growing up, “We were all in the hood, and we made this little club. We said, ‘This is who we are today, but it’s not who we can be.’ We said that, even though we couldn’t see ourselves in other people yet. … There were no black Barbies.

There were no girls in engineering. …

The Cosby Show wasn’t out yet. We were still watching The Brady Bunch.”

Her father introduced her to mechanics at an early age – and something clicked. She was good at math and traveled the area competing in math competitions. Despite her obvious talents, at school she was discouraged from pursuing math and engineering and was told that these subjects were for boys and she “could never compete.”

But, she did.

She went to California State Poly-

technic University and was one of the few women, particularly black women in the course; they didn’t even have a women’s bathroom in the engineering department building. She has said of her time there, “It was a miracle from God that they brought in this career counselor…I remember thinking, ‘I can see the vision out of the neighborhood. It’s there.’”

Robinson-Berry got a bachelor’s degree in engineering technology and two master’s degrees. Even while in school, she worked for General Dynamics part time and with seven other students launched an engineering start up that grew to 19 employees. She then went to work for McDonald Douglas which in 1966 merged with Boeing and she’s now been with Boeing for over 30 years.

She has worked all over the country with Boeing in engineering, human resources, supplier management, business operations and program management positions. She held jobs in Boeing’s commercial, defense, space and corporate divisions.

But as impressive as this personal and corporate resume is, it’s only part of her story.

At a recent Urban League reception in Charleston to introduce her to the community, she made clear her commitment to “change the reality in Charleston.” She cited the all too familiar stories about our failing education system, the issues of racial equality and the divisions within our community and state saying, “…we have work to do.”

And, clearly this woman intends to go to work and she challenged us all to work alongside her.

South Carolina’s business and political leadership is not used to dealing with a woman like Robinson-Berry – and it’s pretty clear that she does not really care much.

She is a woman who knows how the world works, has risen to the top in an unfriendly if not downright hostile environment – and she intends to have a real impact not just in business but in the life of our state. We should all be thankful she’s here.

The boys in the Palmetto Business Forum back at the Palmetto Club had better take notice.

Welcome to The New South Carolina.

Phil Noble has a technology firm in Charleston and writes a weekly column for the S.C. Press Association. Contact him at phil@philnoble.com.

32

www.gsabusiness.com

Jan. 9 - 22, 2017