Charleston Regional Business Journal's News Makers 2012

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NEWS MAKERS

arleston Republican elected speaker of S.C. use. ge 2

eMint’s parture

. Haley to fill vacant ate seat. ge 5

de Ninjas

p programmers mpete in Code-A-Thon. ge 9

martState hosted its first-ever national conference in December, drawing everyone but the state leaders and politicians who control the program’s funding and its future.

The conference attracted a best-selling author, academic leaders and the program’s

Mayor Riley’s 10th term

Joe Riley said this will be his final term as Charleston’s mayor.

Page 2

O’Brien and Gere buys remaining interest in Lindbergh and Associates.

Page 3

A rising

tide

Nursing surge Interest in nursing field grows among grads.

Page 11

Inspectors suspend Summerville adult home Cancer robot

By Matt Tomsic

Two technologies ExECuTiVE Summary

mtomsic@scbiznews.com

I

n October, state inspectors arrived at Maimie’s Adult Group Homes in Summerville after a diarrheal outbreak hospitalized residents, leading to the facility’s suspension months before.

In a resident’s room, the inspectors found feces splattered inside the back of a toilet and

Gloveless, Reeves cleaned most of the speed recovery time, stains then grabbed undiluted bleach and DHEC plans to publish inspection reports online in poured it into a pail. The S.C. Department of shorten hospital 2013, but a lack of resources hampers efforts to Health and Environmental Control inspector stays. inspect homes and respond to complaints. stopped her and asked how she measures the Page 12 ratio of bleach to water. on a curtain covering the window behind “I haven’t been measuring it,” Reeves said, the toilet. They asked the facility’s owner, according to the inspecotrs notes. “Should I be Karin Reeves, to clean the toilet, and Reeves See HOME, Page 24 ➤ scrubbed the feces with a toilet brush.

solution

Team 342’s legacy

Cloud-based scheduling system speeds ongshoremen to the docks.

Page 4

Feds consider new method for port deepening

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At Work ..........................19

In Focus:

Economics Column ........20

Health Care ...................11

People in the News .........21

List: Hospitals .......................16 Urgent Care Centers .....17

At Work

By Matt Tomsic

he federal Office of Management and Budget is considering a broader approach to port deepening projects that would require ports to compete regionally.

ExECuTiVE The signal came in Summary a letter from the office to the Army Corps of ConservationEngineers. The Army ists welcomed a Corps submitted the regional approach letter as part of a federal to funding but said lawsuit over its Savan- it should start with nah Harbor Expan- ongoing projects.

INSIDE

IDENTITY CARD

careers. Page 16

Upfront .............................2 In Focus: commercial & Residential Real Estate ......................9 List: Residential Real Estate ....................14

Politicians, academics study offshore energy plans for the coast.

Page 9

Volume 18, No. 7 • $2.00

a Veteran WOrKFOrCe

time spent could add up.

That’s exactly the point of a court case When veterans across the country and in South Carolina return A Missouri lawsuit revealed disparity in how sorting itself out in Missouri. In January, the home, theychose face not a host hurdles to employment — including a restaurants pay wait staff for time spent away Supreme Court to of hear arguments A grave warning nearly 20% jobless rate forInternational women who served in Afghanistan and from customers. in a case involving Applebee’s Lowcountry leaders Iraqmore — that state governments and schools are trying to address.

Inc. and than 5,000 of its employees. warn of sequestration’s Page 20 customer places an order.

The restaurant company brought the case potential effects.

These tasks might take minutes or hours before the Court arguing lower courts were during any given shift, butPage if the 15 same employPhoto/Leslie Burden See TIPPING, Page 19 ➤ ees are charged with completing them, the

ExEcutiVE SuMMAry

Haley’s war oney chest

Veto wars

Home Builders ..............16 At Work ..........................19 Gov. Nikki Haley and the Economics Column ........20 Assembly fight People inGeneral the News .........21 Business over Digest ..............22 a permit for a project Calendar .........................22 to deepen the Savannah Viewpoint........................23

Battle over state voter ID law far from over

River. Page 10

MATERIAL

Trident Tech partners with pet hospital to help veterinary students get hands-on experience.

Page 38

in February, PeopleMatter announced a $14 million investment from a Silicon Valley venture capital firm that has backed tech giants like Apple and startups like Siri. Days later, PeopleMatter unveiled its third platform: Schedule. Full story, Page 12.

By Matt Tomsic

Prosperity Index

Vet Techs

See Story, Page 8

Gov. Nikki Haley raises more out-of-state money than her neighbors, predecessor

The public presented a host of requests during the public comments period

for the Charleston Harbor deepening project and asked the Army Corps of Clemson University’s Prosperity Index Engineers to consider ways to study alternatives, protect the environment and finds favorable economic protect historical property. conditions in the Lowcountry. Page 7 Inside: Comments dredge up concern, support for harbor deepening. Page 8

June 18 - July 1, 2012 • www.charlestonbusiness.com

Volume 18, No. 11 • $2.00 Corps now studies only December 3 - 16, 2012 • www.charlestonbusiness.com

Offshore energy

DREDGE M Matters

inspire next generation of engineers and mathematicians.

Page 34

alternative depths when preparing to deepen a harbor.

“We are interested in continuing discussions with you about Dredge the relationship between

By Matt Tomsic recommendation: the Savannah River ExEcutiVE summary an to analysis kind, which considers the mtomsic@scbiznews.com 45 feet of —this not 47.

The Savannah River Maritime Commission has effectsThe of commission the furthervoted development one to pass theofdecision Bypresented Matt Tomsic recommended deepening the Savannah River port systems-based approach, he Savannah River Maritime Comonand Maya8,broader when staff the document mtomsic@scbiznews.com to 45 feet, two feet shorter than an Army Corps which could inform decisions on a series of mission is arguing the S.C. Departduring a commission meeting.

The cityment of North Charleston and state of South Carolina endedrecommendation. a years-long dispute such In investments the Corps same geographic of Health and Environmental April, the in Army of Engineers than a decade ago, Sen. Strom ” according toore anrecommended Office of Management over a rail yard ondrafting the former NavyCarolina base with a settlement that included a payout, Control had help a South Savannah District deepening How Zumalt area, Thurmond and the South Carolina water qualityland permit for the A 70-page Savannah MaritimeNorth Com- the Savannah River from its current depth of swaps andSavannah funding Harbor for a transportation study.

Page River 6changed congressional delegation were conOMB, Page 12 ➤ Expansion Project, according to documents mission document provided details about 42 feet to 47 feet. TheSee maritime commission cerned about a federal bill — and its impact Charleston that revealed information about the project’s the permitting process and the project’s cost, on South Carolina — that would begin a North Charleston police See MARITIME, Page 6 environmental and financial impacts. while also providing the commission’s own INSIDE project to deepen the Savannah River.➤ chief to retire after cutting crime........28 over past decade.

Upfront .............................2 Economics Column Page 10 In Focus: Retirement and People in the News .........29

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M

HEALTH CARE

Aging .............................21

Business Digest ..............30

List: Retirement

Calendar .........................30

Communities .................26

Viewpoint........................31

At Work ..........................27

Revenue shift

What’s in store

By Matt Tomsic

Orphan tumors Medical nonprofit tackles rare cancers.

PAGE 8

Special Section, Page 13

Supply shortage

T

By Lauren Ratcliffe

F

ExEcutiVE summary

mtomsic@scbiznews.com

The delegation worried the act’s language A recent state Supreme Court ruling struck Lowcountry could allow the U.S. Army of Engineers down a South he Carolina permit recorded granted forthe most AtCorps Work growth Expansion nationwideProject, in manufacturing to bypass South CarolinaEnvironmentally laws and oversight as the Savannah Harbor or sound the last two years, it worked to deepen the river, whichCEO is shared the jobs Armyfor Corps is seeking a con-according Chembion helps SHEP, and to exemption a Brookings Institution report, to which also between Georgia and the Palmetto State. gressional from the requirement businesses clean up.

Spec building Now, 14 years later, South Carolina and the obtain afound permitmanufacturing for the project. employees Court docu-here earn Page 43debate while ments show more the money national average and boost?

Army Corps are having the same corpsthan has the mailed requests manufacturing plants here employee more Charleston the corps tries to begin deepening thearea riverlacks to See SHEP, Page 14 ➤ 47 feet. class “A” office space.

Why Convio HEROES is a big deal for Blackbaud

Head of S.C. Department of Revenue resigns in wake of security breach.

Page 5

Demand booming for skilled tech industry workers in Charleston.

Page 6

Volume 17, No. 26 • $2.00

PAGE 3

A Brookings Institution report shows the CharlesSweet ton region had the nation’s fastest job growth in peaches! the manufacting sector from 2010 through 2011.

Who grows more peaches, workers than the national average.S.C. or Georgia? what’s “I bet there are some people outAnd there who state are really surprised,” saidNorth LewisCarolina’s Gossett, president and CEO of the South Carolina dance?

Page 4Manufacturers Association. “It’s Photo/MattTomsic a great industrial

art

County council might let city complete I-526

INSIDE

Upfront .............................2

At Work ..........................43

In Focus:

Economics Column ........44

OF

Education and Workforce

People in the News .........45

Development .................35

Business Digest ..............46

List:

Calendar .........................46

MONEY

Private Schools .............41

Viewpoint........................47

For the second consecutive year,

By Lauren Ratcliffe Spoleto dipped into reserve lratcliffe@scbiznews.com funds to stage the $6.4 million international arts event against he nearly dead discussion over the the backdrop of Charleston’s completion of Interstate 526 received cultural andCharleston venues. new life lastcharacter month when Mayor JoePage Riley 4 petitioned his city council to

lratcliffe@scbiznews.com

or the past four months, meetings held at Blackbaud Inc. ended with the mantra, “Beat Convio.”

On May 8, the former competitors became one with the completion of Blackbaud’s a resolution asking the county to hand ExEcutiVE An app for thatpass acquisition of Convio over control of the roadway’s construction.

SuMMARy Company creates apps In a three hour council meeting, with more Inc. The $325 million The recently for small businesses. than 50 community members speaking about dollar cash-tender deal completed merger is the largest acquisition between Convio and PAGE 12 the project, the council voted 11-2 to pass a University in Blackbaud history. resolution to ask Charleston County Council Blackbaud resulted The two nonprofit in one of the largest expansion to relinquish ownership of the project and let the city finish building the road. software companies had statistical analysis Charleston Southern Proponents and opponents of 526 say breaks ground on new discussed joining in the system companies there is more at stake than alleviating traffic past, but discussions in the world. facilities. concerns. Opponents contend the highway turned to actions when Page 15 threatens the rural nature of Johns and James Blackbaud first filed islands and want existing, local road improvepremerger paperwork on Jan. 17. ments to get priority over the Mark Clark “It was more likely to be a timing issue Big project Expressway. Proponents contend the roadway than an ‘if ’ issue,” said Jana Eggers, senior is needed to alleviate existing traffic congesof products marketing.

“It several contracts to begin the complex work partnerships vice president The Army Corps ofand Engineers awarded Into the cloud tion and prepare for a continued influx of Mashburn Construction turned out that this was the right time.” of digging into Charleston Harbor’s muddy floor to analyze sediments, wildlife and people to the area that won’t stop coming even Cloud tech helps Convio specialized in online giving transitions with changing if road construction is halted. other characteristics that might be affected by deepening the harbor.

PAGE 12 companies increase solutions for nonprofits and had a few largelandscape. revenue and cut costs.

Page 16

When Mount Pleasant Town Council voted to remove an ordinance that prohibits large-scale development, the decision didn’t end debate over what kind of commercial growth the town should pursue.

ZONING DECISION, Page 11 THE GREGG TRACT, Page 13

T

Studying a deeper

At Work

Animal Society’s new CEO sets example.

Page 33

See BLACKBAUD, Page 8 Photo/Leslie Burden

Photos/Leslie Burden

PAGE 14

INSIDE

INSIDE Upfront .............................2 In Focus: Architecture, Engineering, Construction .................11 List: Architecture Firms ........29 SIOR ...............................31

➤

At Work ..........................33 Economics Column ........34 People in the News .........35 Business Digest ..............38 Calendar .........................38 Viewpoint........................39

CHARLESTON UNDER

CONSTRUCTION Page 11

Upfront .................................. 2 In Focus: Architecture, Engineering, Construction ..................... 15 List: Certified Minority-owned Businesses ......................... 31 List: Life Insurance Cos..... 33

At Work ............................... 35 Economics Column ............. 36 People in the News .............. 37 Business Digest ................... 38 Calendar .............................. 38 Viewpoint............................. 39

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The S.C. State Ports Authority faces opportunities, challenges.

Page 8

Lawsuit could push restaurants pastRedeploying tipping point Lt. Gov. McConnell: ‘not a job I wanted’

A

S

mtomsic@scbiznews.com

ince 2009, more than a third of Gov. Nikki Haley’s campaign contributions have come from outside the Palmetto State.

Haley has raised roughly $4.7 million, according to campaign finance reports filed withVolume the S.C. 18, No. 14 • $2.00 Ethics Commission, and about 35% — or $1.6 million — of her contributions came from outside Haley South Carolina. areaHaley’s with a hell of a future.of ” percentage But Gossett and others said the study out-of-state contributions is three timesconmore firms trend that counterparts, residents haveNorth noticed while than aher nearby Carolina driving through region and bumping into Gov. Bev Perdue and Georgia Gov. Nathan business executives while waiting for flights at Deal. Haley’s out-of-state contributions are Charleston International Airport. also roughly 12 percentage points higher than “We produce a lot of interesting items that her predecessor, former Gov. Mark Sanford. would fit in the manufacturing sector,” said

See 526, Page 8

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At Work

Robert Boyle restores raised flooring tiles for data centers onsite.

Page 35

Justices question DHEC's authority

Meet the 2012 of exceptional Byclass Matt Tomsic young professionals mtomsic@scbiznews.com in the Charleston region. Page 15

S

tate Supreme Court justices peppered attorneys with questions about the authority of the S.C. Department of Health and Environmental Control to issue permits for a river deepening project ExEcutiVE without consulting the summary Savannah River Mari- The S.C. Supreme time Commission.

Court heard arguIn early June — ments about state months after a Novem- agencies’ authority ber DHEC board over a controversial decision — attorneys river deepening gathered in Columbia project. to argue the authority of DHEC and the Savannah River Maritime Commission. The arguments are one of two legal challenges to DHEC’s permit granted to Georgia officials for the Savannah Harbor Expansion Project, which plans to deepen the Savannah River to 47 feet and to allow better access at Georgia Ports Authority terminals.

DHEC staff first denied the permit in September, and Georgia Gov. Nathan Deal asked Gov. Nikki Haley to allow the DHEC board to hear an appeal. Haley agreed.

At a November DHEC meeting, the board issued the permit after Georgia officials agreed See SUPCO, Page 9

Photo/Leslie Burden

INSIDE Upfront .............................2 In Focus: Technology & Innovation .....................11 List: IT Network Design ..........................16 Industrial Staffing Agencies .......................18

See HALEY, Page 6 ➤ See BROOKINGS, Page 6 ➤

At Work ..........................19 Economics Column ........20 People in the News .........21 Business Digest ..............22 Calendar .........................22 Viewpoint........................23

➤

New owners bring job cuts to Force Protection

mtomsic@sc

ince 2002, ventu invested in 34 South Carolina. together roughly 37, same period.

In the Palmetto S ments totaled $364 statistics compiled by Capital Association an oopers. Nationwide, totaled $264 billion.

“There’s very little ity in South Carolina executive director fo nomic Development A Startups in South obstacles to reach ven draw them to the state tech and life sciences attracting lots of att attract more venture c “It is tougher (in S because there aren’t a capital funds in the S Mumma of Interso

INSIDE

Upfront .............................2 In Focus: Defense Industry ..........15 List: Commercial Multiperil Insurance Cos ...............24 Defense Contractors .....25

I

At Work ..........................27 Business Digest ..............27 Economics Column ........28 People in the News .........29 Calendar .........................30 Viewpoint........................31

Y p a w C

By Matt Tomsic

F

mtomsic@scbiznews.com

orce Protection cut roughly 155 jobs in late February after an assessment by the company’s new owner, General Dynamics.

“Following a careful assessment of the ExEcutiVE operations and ongoSummAry ing requirements of the business, General The Ladson-area Dynamics has deter- defense contracmined that it is neces- tor said the layoffs sary to reduce the size affected administraof our workforce at tive and professionJune 4 - 17, 2012 • www.charlestonbusiness.com the business formerly al positions only. known as Force Protection,” according to a statement.

The layoffs affected administrative and professional positions.

Tommy Pruitt, spokesman for Force ProBya Lauren Ratcliffe tection, said the layoffs began Feb. 27, and the lratcliffe@scbiznews.com reductions will improve the business’ strength First in flight and competiveness. rcelle Chillis’ father didn’t have a will.

The first Dreamliner made The company continues to employ about Before he died, he asked her to live on in North Charleston logs 600 people inthe theland Lowcountry. he worked so hard to purnearly 2,000 miles. chase in 1926. He bought enough for each of Seeone FORCE, Page 4 his children to have acre.Page 6 ➤ Photo/Leslie Burden But, when Chillis moved back to the family

An oral will isn’t really a will E

INSIDE

Businessman arested

Upfront .............................2

At Work ..........................25

In Focus:

Economics Column ........26

Hospitality & Tourism ...15

People in the News .........27

List: Hotels ............................22 Area Attractions............24

North Charleston businessman charged with Business Digest ..............30 doing business with Iran.

Calendar .........................30 Page 15 Viewpoint........................31

Economic incentives

Dorchester and Charleston counties pass incentive packages for economic development projects.

Page 7

ExEcutiVE summary Heirs’ property owners struggle with family legacies and legal challenges.

tract of land in 1983 nearly 20 years after her father’s passing, the land for which her father saved his money had become heirs’ property — and a struggle ensued to clear a title to the

At Work

Brewing Business

By M

S

Growing attraction

Patriots Point budgets for revenue increase.

Page 5

Photo/Leslie Burden

INSIDE

Sponsored by

mtomsi

everal lawsu state’s judic the state of of North Char continue to argu a proposed rail ya the former Navy The filings offer new charges abo controversy — d sions between th State Ports A ity and S.C. Railways and co tion between the North Charleston the Coastal Con tion League — fo Charleston Naval But those involved The filings also gation after the S.C added tenants of t lawsuit. The addit line’s Kitchen, Lesn

A new competitor hopes to take market share from Charleston Tea Plantation, the only active tea plantation in the country, by recreating and importing Colonial-era blends of tea.

Page 10

Bike paths could be worth millions in tourism dollars.

Page 16

plot her father tol “I had a lawy South Carolina), that I didn’t nee people (in my f releasing their pa “Heirs’ property

Rail law continu some n

Child advocate Executive director for children's center helps kids who have been abused.

Page 25

Linking communities

2012 Profiles in Business

A guide to selected businesses serving the Charleston region.

INSIDE

See FO

By Matt

State of the Port

10 WEEKS

Top Toaccountant subscribe to the Debra Turner reins charlestontakesRegional Business Journal, Business Digest ..............22 of regional STEM development Calendar .........................22 accounting firm. 849-3116 call (843) SPAWAR and IFA Rotorion Viewpoint ........................23 Page 19 work with students to www.charlestonbusiness.com

Upfront .............................2

mtomsic@scbiznews.com

T

Desire 500 PARTS,

said as he looked ar the duplex. “This is a appliances work.”

With a dozen dea on the living room scurrying about in o the Marquezes were

Venture often in outside

Machinists union holds informational meetings for Lowcountry workers.

Page 6

Lowcountry scores well in manufacturing report Maritime Commission rejects 47-foot Savannah River Thurmond, Hollings warned of Savannah River legislation

Working with robotics underpins career decisions.

Page 5

On the waterfront

INSIDE

sion Project. The Army

May 21 - June 3, 2012 • www.charlestonbusiness.com

L

A

they didn’t receive a set of keys. They didn’t even receive their title immediately. Chris and Dawn bought the property at a foreclosure auction sale at the Charleston County Courthouse.

When they stepped inside the condo, the pair breathed a sigh of relief. It looked like a good pick, they said.

“This could have been a lot worse,” Chris

lratcliffe@scbiznews.com

Union targets Boeing S.C.

Businesses say legal immigration may put more Americans to work

By Lauren Ratcliffe

By Lauren Ratcliffe locksmith’s drill bites into a door as he changes the deadbolt on the front entrance of a duplex in Park West while Chris and Dawn Marquez wait to enter their new condo.

When the couple bought the property,

Training program prepares high-schoolers for restaurant jobs.

Page 4

➤

Help Wanted

I

To subscribe to the Charleston Regional Business Journal, call (843) 849-3116 www.charlestonbusiness.com

RAIL

See PRIMARY, Page 6

Vol

House flippers buy, resell toxic

Teach the Need

lratcliffe@scbiznews.com

By Lauren Ratcliffe lratcliffe@scbiznews.com arge regional and international law firms are moving into town, reflecthe answer to America’s and South Year-end ing a recent shift in the legal profesCarolinia’s unemployment problems foreclosures sion. Coupled with the perceived increase could rest in the hands of foreign Distressed residential in small and boutiqueworkers. real estate recovering. style practices, lawyers ExEcutiVE Business leaders from across the Lowcounare changing the way SUmmaRy Page 10 try are arguing on behalf of programs that call they think about the An increase in for immigration reform that focuses on bringing workers to the country legally — a differlaw firm mergers Interstate trafficprofession.

Recent law school and acquisitions is ent argument than the one typically heard.

Leaders urge graduates face increas- changing the out“You see on the news the discussion of improvements to ing difficulty in finding look for new grads undocumented immigration — illegal immiInterstate 26. jobs as the recession and the way firms gration — and how it’s destroying the fabric Page 18 led to significant lay- look at growth in the of our country,” immigration attorney and offs at firms and a scal- marketplace. author Richard Hermann said.18, No. 8 • $2.00 March 26 - April 8, 2012 ing back of entry-level www.charlestonbusiness.com Volume March 12 - 25, 2012 • www.charlestonbusiness.com Hermann was the keynote speaker at the hiring. FIRST Robotics Team 342, Golfing in Charleston Metro Chamber of Commerce’s Magnetos, “Therethe justBurning aren’t jobs, ” attorney Andy quarterly meeting earlier this month. The the green Savage said.

“I know a lot of people who is building a robot for a TRaDE agREEmENTS author of the book Immigration Inc., Herprivate practice who hadthat no intenMore golfers are hitting went intonational wITH CoLomBIa, PaNama competition mann says bringing in immigrants won’t push tion of doing it.” the koREa links in aRE S.C. aND SoUTH Lauren Ratcliffe high school students Americans out ofBy jobs, but instead create new At theteaches Charleston School of Law, more ExPECTED To4BooST Page

By Lauren Ratcliffe notably the completion of Interstate 526. lratcliffe@scbiznews.com opportunities for them. programming, design, than 150about students graduate each year.

Those SomE SoUTH CaRoLINa lratcliffe@scbiznews.com McConnell had immigration served as state senator since “By delaying reform, we’re AtPagE Work students animation, are competing for jobs withand expeengineering ExPoRTS. 4 1980, rising thehour ranks thebefore Senate’s most or to two a ”restaurant InStrategic Focus: movesrienced attorneys and fellow graduates, and missing out in on nthe benefits of job creation, he much more. n taking the oath of office of lieutenant gov- powerful of president tempore. opens its doors pro for service, theHe kitchsaid. position Education & the traditional path to employment isn’t cut Founder and creative ernor, Glenn McConnell left Charleston’s also Jeremy served as chairman of theroom Judiciary PAGE 4 en andmanager dining already buzzRobbins, ofSenate theare Partnerand dried. director helps Web Workforce Q&A in Committee District 41 without directChef representation appointed dozens aofNew South with energy. ship foringa and Newhad American Economy, design firm grow.

Development the senate. to boards Local chefs answer CaroliniansWait staff and committees. bartenders roll silverware, Kai Holnes tests a prototype the6 ➤ See LAW,for Page Page 19 to the future of clean andSee set IMMIGRATION, tables, prepare the17 bar➤ and perFIRST Robotics Competition. (Photo/Leslie Burden) He also left uncertainty asquestions Page about their form a variety of other tasksPage before See ARD, 10 the the projects he was a staunch supporter of — and ➤ first culinary penchants

A rising

Volume 18, No. 27 • $2.00

searching for any indication of their voting habits.

Primary season generates some economic activity, but experts think the benefits are

Engineering

Commercial driver Port of Charleston helps move commercial property.

Page 9

IN FOCUS: Health Care

minimal, described by local economist Frank Hefner as the “icing on the cake” for offseason Charleston.

But the early contest’s real value is its ability to put South Carolina issues on the national agenda, said David Yepsen, a veteran of the Iowa caucuses.

Residents saw that power on Jan. 19, when

ExEcuTIVE SuMMaRy

The benefits of South Carolina’s early primary are minimal, though rewards may come if Newt Gingrich wins the nomination and the election.

Lateral growth for law firms shifts business models

Engineering merger

ders, businesses nd financial workshop. ge 11

Boeing S.C. fires erse activities at local up engines on first ters.

Dreamliner. ge 22 Page 11

November 5 - 18, 2012 • www.charlestonbusiness.com

REVIEWING THE MOST INTERESTING STORIES OF 2012 F S Quotes and notes from

Mattfaces Tomsic endowed chairs to Charleston.

Speakers tions challenge the By program while its the GOP primary in included the director of the Pathways to Pros- funding dwindles.mtomsic@scbiznews.com No new money has been Charleston. perity Project at Harvard Page University, 2 a trustee allocated to the program since fiscal year 2008. or chairman 11 days of in the January, the country of the American Medical Association and a Regan Voit, SmartState on program South Carolina. chief manufacturing officer of a division at the Review Board,focused said the expects to In Focus: candidates U.S. Department of Commerce. run out of moneyRepublican sometime inpresidential 2013. crisscrossed the statethe forprogram speechesand and rallies; But at the conference’s Commercial end, the closing andand To secure new funding, super and candidates millions on Residential Realits partners charging speaker, Peter Beattie, noted few Pal—PACs the Medical Universityspent of South advertisements, and national media figures metto State politicians attended.

Estate psycho-analyzed PalmettoPage State See SMARTSTATE, 7 ➤residents, Their absence highlights the communica-

By Matt Tomsic

mtomsic@scbiznews.com

pital scussions

nior nter shift Revving the 787 by Boomers demand

Volume 18, No. 3 • $2.00

Primary SmartState faces funding, communications challenges Primary boosts TV dollars, elevates Lowcountry issues concerns

cember 17 - 30, 2012 • www.charlestonbusiness.com

r. Speaker, ain

January 30 - Febuary 12, 2012 • www.charlestonbusiness.com Volume 18, No. 2 • $2.00

January 16 - 29, 2012 • www.charlestonbusiness.com

Upfront .............................2

People in the News .........37

In Focus: Law................27

Business Digest ..............38

List: Law Firms .............32

Calendar .........................38

At Work ..........................35

Viewpoint........................39

Economics Column ........36

2012 Disaster Preparedness Guide

Don’t struggle to keep your business afloat; be prepared for the unexpected. Page 17

About this publication

President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 849.3110 Accounting Department - Vickie Deadmon vdeadmon@scbiznews.com • 864.235.5677

Managing Editor - Andy Owens

W

elcome to Newsmakers, a new publication from the staff of the Charleston Regional Business Journal. Newsmakers offers a look at the most important business-to-business news for 2012 in the Lowcountry.

We picked stories and photos we thought

aowens@scbiznews.com • 849.3142

most impacted the business community and culture of the Charleston region. You can spend a little time flipping through the quick items at the bottom of each page or get a deeper perspective through stories and photography into the people and companies that influenced 2012. The Business Journal

thought of our readers when selecting content for this publication and we always want to hear what you think. Send your suggestions, questions and comments to editorial@ scbiznews.com or post your comments at www.charlestonbusiness.com.

ABOUT OUR SPONSORS

Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 849.3115 Staff Writers Matt Tomsic mtomsic@scbiznews.com • 849.3144 Lauren Ratcliffe lratcliffe@scbiznews.com • 849.3119 Staff Photographer - Leslie Burden lburden@scbiznews.com • 849.3123

Creative Director - Ryan Wilcox production1@scbiznews.com • 849.3117 Senior Graphic Designer - Jane Mattingly production2@scbiznews.com • 849.3118 Graphic Designer - Jean Piot production3@scbiznews.com • 849.3135

Senior Account Executive - Sue Gordon sgordon@scbiznews.com • 849.3111 Account Executives Sara Cox

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Welcome to Newsmakers 2012, sponsored

by Trident Health. On behalf of the many talented physicians, staff and volunteers who serve the community at Trident, it is quite an honor to introduce you to the highlights you are about to read.

We are fortunate, here in South Carolina’s Lowcountry, to live and work among so many remarkable people. All of us together – large organizations and small – have created a vibrant, dynamic region that we are proud to call home. Trident Health is honored to be your neighbor. Enjoy reading!

Charles Foster is the answer to your professional search.

We have been serving prestigious companies throughout the Lowcountry and nationwide since 1969.

Charles Foster is the only locally owned Woman Business Enterprise (WBE) staffing firm in the area.

We can help with your executive search,

contract assignments or on-going employment needs. Our industry-specific recruiters specialize in Engineering, Information Technology, Finance, Healthcare, Legal, Administrative and Customer Service positions.

As one of the original staffing and recruiting firms in the Southeast, we are proud of the reputation we have built through our professionalism, ethics and diligence. We are excited to discuss the many ways Charles Foster can assist you in your employment needs.

Charleston Southern University is one of South Carolina’s largest accredited, independent universities, enrolling 3,200 students. Voted one of America’s Best Christian Colleges 14 consecutive years, Charleston Southern is affiliated with the South Carolina Baptist Convention. The university’s vision is to be a Christian university nationally recognized for integrating faith in learning, leading and serving.

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NEWS MAKERS 2012

Best of Upfront

The Best of Upfront You like me! You really like me!

Data from the National Center for Education Statistics show that Furman University is the most selective college in South Carolina, according to an analysis from a group of business journals. Throughout the Southeast, Vanderbilt University and Duke University are considered the most elite — Southern Ivy League, if you will.

The Selective Top 10 1.

2.

3.

4.

5.

Furman University Clemson University University of South Carolina Wofford College College of Charleston

6. North Greenville University 7. Presbyterian College 8. Winthrop University 9. USC-Aiken 10. Lander University

Name that

SCHOOL Can you guess which building goes to which school?

A B

Dig into some of the most interesting and (somewhat) relevant factoids from the biweekly Upfront feature from the pages of the Charleston Regional Business Journal in 2012.

Everything but the oink here’s something about bacon, especially in a food-immersed economy like Charleston. The pork economy is about numbers as well as … well, the fat.

Ted Dombrowski of Ted’s Butcher Block in Charleston said the combination of salt, fat and the meaty texture of bacon all combine into something great. “What’s not to love?” he said. “It’s the perfect food.”

Ted’s specializes in many kinds of meats, but offers 13 kinds of bacon and offers a “Bacon of the Month Club.” Dombrowski said bacon is like wine or coffee — different varieties have different purposes. You might want something fattier or leaner depending on the dish. The flavor of the bacon also depends on the seasoning and the kind of wood used to smoke the bacon.

Dombrowski said apple wood is popular because it’s light and sweet.

Data from the National Pork Board show pork consumption across the U.S. took a dip during the recession years. People in the U.S. are eating about 3.5 fewer pounds of pork. We’re not sure if there’s a correlation between that and dwindling personal income, but it’s definitely a trend. If you look at production numbers, however, you’ll see that we’re still producing a lot of pig products.

T

That’s a lot of bacon, ham, sausage

C

Pork production and consumption across the U.S. for the past six years.

2011 from left to right match the numbers with the schools above A=5, B=1, C=2 Source: National Center for Education Statistics, Illustrations/Jean Piot Originally published: 1.2.12

attending traveled more Wine and Food Festival 38% ofthanthose50 miles to Charleston by the numbers

The festival was attended by

21,250 guests

The 2012 Festival brought

$8.6 million

YEAR

A vendor uses an iPad to complete a purchase.

LBS

21.0 billion 22.0 billion 23.4 billion 23.0 billion 22.5 billion

46.5 lbs 47.7 lbs 46.5 lbs 47.1 lbs 44.8 lbs

Source: National Pork Board’s Pork Checkoff

17.8%

Chef Chris Stallard cooks hanger steak.

Photos/Leslie Burden, Infographic/Jean Piot Originally published: 5.7.12

4 Charleston Regional Business Journal | Newsmakers

LBS

PRODUCTION per person

2006 2007 2008 2009 2010

Bringing home the bacon

Bacon prices through the recession … and beyond. The numbers are average price per pound for the end of year. Fluctuations of a few cents per pound can greatly affect the bottom line for farmers and others across the supply chain.

Region

Matt Lee and Ted Lee demonstrate canning.

43.1 Consumption

to the local economy

This year’s impact is an increase of

22.8B

2006 2007 2008 2009 2010 2011

South $3.58 Northeast $3.62 Midwest $3.21 West $3.47 U.S. average $3.44

$3.58 $3.58 $3.58 $3.63 $3.67 $3.63 $3.65 $3.76 $3.71 $3.74 $3.21 $3.21 $3.21 $3.20 $3.20 $3.48 $3.50 $3.51 $3.52 $3.56 $3.45 $3.45 $3.46 $3.48 $3.50 Source: U.S. Bureau of Labor Statistics Originally published: 7.2.12

NEWS MAKERS 2012

Best of Upfront

Our peaches

are

sweeter

than your peaches!

T

he Census Bureau continues to be a fount of data about our state and nation.

Today, we have state stuff about South Carolina and other states. Everyone knows the South Carolina state flower is the yellow jasmine, but did you know that North

Carolinians clog while South Carolinians shag? Washington-staters might build a lot of airplanes, but can you really claim an offshore mammal as your own? Here’s the list, and remember not only does South Carolina grow more peaches than the Peach State — ­ 110,000 tons to 40,000 tons in 2010 — ours taste a lot better, too.

North Carolina

Bird: Cardinal Mammal: Grey Squirrel Dance: Clogging Vegetable: Sweet Potato Dog: Plott Hound

The most Caffeinated occupations

You might think you drink a lot of coffee, but Dunkin’ Donuts, CareerBuilder and Harris Interactive knows who drinks the most. The cake-style doughnut-makers and survey-takers asked their consumers and came up with a list of the top indulgers in mud. Among the findings: 63% of coffee drinkers pour two cups or more per workday; 28% do three or more.

Here’s who wins the coffee consumption war 1. Food preparations/service workers 2. Scientists 3. Sales representatives 4. Marketing/PR professionals 5. Nurses and physicians assistants 6. Editors/writers/media types 7. Business executives 8. K-12 teachers 9. Engineering technicans 10. IT managers/network administrators

Coffee = Productivity

Just under half of workers surveyed by the coffee dealers said they depended on coffee to make them more productive — more women than men.

South Carolina

Dance: The Shag Snack: Boiled Peanuts Fruit: Peach Dog: Boykin Spaniel Hospitality Beverage: Sweet Tea

Florida

Washington

Tree: Western Hemlock Dance: Square Dance Fruit: Apple Fossil: Columbian Mammoth Marine Mammal: Orca

Flower: Cherokee Rose Prepared Food: Grits Fruit: Peach Crop: Peanuts Song: Georgia On My Mind

Originally published: 3.12.12

PGA Championship stuff you didn’t know

The impact of the 2012 PGA Championship stretched beyond hotel rooms and ticket sales.

150,000 Water bottles purchased

40%

Georgia

Flower: Orange Blossom Animal: Florida Panther Drink: Orange Juice Reptile: American Alligator Song: The Swanee River

280 Cases of 75,000 Hamburgers served

47%

43%

liquor that got them started

Buses running from the parking lot to the course

to keep things flowing

40,000 Hot dogs served

Sources: Chef Steve Schiele of Levy Restaurants; PGA of America. Originally published: 8.27.12

6 Charleston Regional Business Journal | Newsmakers

Female workers who say this

Male workers who say this

Who drinks what where?

The South represents the second-highest consumption of coffee in America.

Dunkin’ Donuts found that 54% of southern workers say they drink at least one cup of coffee during each work day.

Source: Dunkin’ Donuts, Harris Interactive, CareerBuilder

64% The Northeast 54% The South 51% The Midwest 51% The West

85

50 Cases of liquor delivered nightly

Number of workers who say coffee makes them more productive

55%

Of U.S. workers claim to drink at least one cup of coffee per work day.

Originally published: 10.22.12

NEWS MAKERS 2012

From the 1.2.12 Issue

SPA suspends funding for Jasper terminal

By Matt Tomsic

A

pickup truck rumbles along a dike built at the edge of the Jasper Ocean Terminal site, passing by the rippling Savannah River to the right and dredge spoils to the left.

To the Jasper County administrator, the 1,500 acres represent the economic opportunity of the century for his county and region, but the project — launched with cooperation between two competing states and ports — has stalled as South Carolina officials suspended funding amid questions about Georgia’s sincerity and the impact of the Savannah Harbor Expansion Project.

In 2007, then-S.C. Gov. Mark Sanford and then-Georgia Gov. Sonny Perdue stood on the South Carolina side of the Savannah River to sign an agreement to develop the Jasper terminal.

The deal led to an intergovernmental agreement between the two states and the creation of the Joint Project Office.

Each state gave $3 million to the Joint Project Office to begin work on the roughly $5 billion project, but the startup capital is nearly spent.

‘A real impact’

Officials estimate 1 million jobs will be created by or offshoot from the terminal by 2040. By 2020, the project will have created more than 900 jobs as construction and engineering begin.

The project is the economic opportunity of the century, said Jasper County Administrator Andrew Fulghum, and has the opportunity to address Jasper County’s economic issues.

The county struggles with underemployment, he said; and about 25% of the county’s residents fall under the federal poverty line, according to Census

95

26

PORTS’

1

526 ISLAND OF PALMS

17

1 KIAWAH

21 BEAUFORT

95 HARDEEVILLE

2 17 HILTON HEAD ISLAND

3 16

SC

2

3

GA Bureau statistics.

Fulghum said a little more than half of the county’s residents work outside Jasper County, and the terminal could create local, sustainable jobs.

“We’re sort of caught between Georgia and Savannah and Charleston on the issue,” he said. “It’s hard to find an advocate, when you’re dealing with a project that’s a bi-state project, to really promote and encourage that development.”

Charleston: The Army Corps of Engineers will spend several years studying the impact of deepening the harbor beyond 45 feet. Planning could take two years, and construction could take four to five years.

Jasper: The Joint Project Office bought 1,500 acres from the Georgia Department of Transportation and has put together a report on developing the property.

Savannah: Construction for the harbor expansion project is expected to take four years. The project will take the river to a depth of 47 feet.

Ongoing concerns

South Carolina officials say the fate of Jasper is tied to the project to deepen the Savannah River to 48 feet. Officials say the harbor expansion project will kill the Jasper terminal.

John Cameron, executive director for the Charleston Branch Pilots’ Association, said the harbor expansion project could prevent a Jasper dredging permit.

“My concern is that the river will be taken to its ecological limits on this

Illustration/Jean Piot

project,” Cameron said.

The harbor expansion project will create a channel deep enough to accommodate post-Panamax ships on high tide. The Army Corps should study dredging a deeper, wider channel to Jasper, he said, while also making improvements to the river farther inland.

“We’re going to have to expand the Southeast port capacity somewhere,” he said. “And Jasper is a jewel of an opportunity to do that.” cr bj

“My concern is that the river will be taken to its ecological limits on this project.”

John Cameron, executive director for the Charleston Branch Pilots’ Association

editor’sNOTE

Lawmakers and maritime leaders criticized Gov. Nikki Haley and the S.C. Department of Health and Environmental Control board for their role in approving a permit for the Savannah River deepening after DHEC staff initially rejected the permit.

Most read story on CharlestonBusiness.com

Low

Robotics competition kicks off for week of 1.2.12

8 Charleston Regional Business Journal | Newsmakers

NEWS MAKERS 2012

From the 1.16.12 Issue

January 16 -

29, 2012 • www.charle

Lateral growth for law firms shifts business

stonbusines

s.com

SmartState faces funding, Mayor Riley’s 10th term

Joe Riley said this be his final term will as Charleston’s mayor.

Page 2

Engineering merger

O’Brien and Gere remaining interestbuys in Lindbergh and Associates.

Page 3

By Matt Tomsic

Volume 18, No.

, Page 7

tide

IN FOCUS: Health Care

Nursing surge Interest in nursing field grows among grads.

Page 11

By Lauren

L

lratcliffe@sc

arge regional and internation firms are moving al law into town, ing a recent reflectshift in the sion. Coupled legal profesin small and with the perceived increase boutiquestyle practices, are changing lawyers ExEcutiVE the way they think SUmmaRy about the profession.

An increase in Recent law law firm mergers graduates face school and acquisitions is ing difficulty increas- changing in finding the outjobs as the recession look for new grads led to significant lay- and the way firms offs at firms and a scal- look at growth in the ing back of entry-level marketplace. hiring.

“There just Savage said. aren’t jobs,” attorney Andy “I went into privateknow a lot of people who practice who tion of doing had no intenit.”

At the Charleston School of Law, than 150 students more graduate each students are year. Those competing for rienced attorneys jobs with expeand fellow graduates, the traditional and path to employmen and dried. t isn’t cut

Cancer robot

TRaDE agREEmEN TS wITH CoLomBIa aND SoUTH , PaNama koREa aRE ExPECTED SomE SoUTHTo BooST CaRoLINa ExPoRTS. PagE 4

INSIDE Upfront ........................... ..2 In Focus: Health Care

...................11

List: Hospitals .......................16 Urgent Care Centers .....17

See LAW, Page At Work ..........................1 9 Economics Column ........20 People in the News .........21 Business Digest ..............22 Calendar .........................2 2 Viewpoint........................23

At Work

Top accountant Debra Turner takes reins of regional accounting firm.

Page 19

The traditional route of attending law school, getting experience in the summer, getting an offer from a law firm and becoming a partner after working for a few years isn’t reality for most graduates today, said John Lassiter of Carolina Legal Staffing.

Charleston School of Law Grads: Where are they now?

Grads

# Employed

At a law firm

At their own firm

86.8%

200 150

69.7% 75.0%

63.2%

41.6%

43.4% 29.5% 4.9%

100

27.0% 2.6%

1.6%

1.2%

50

cr bj

2010

editor’sNOTE Charleston is a growth market for lawyers.

At the end of the 20th century, the city had about 1,000 attorneys in the S.C. Bar Association. A little more than a decade later, the number is 1,600 — a 60% increase.

2009

2008

2007

Most read story on CharlestonBusiness.com

Fifth Third Bank moves into S.C. market for week of 1.16.12

10 Charleston Regional Business Journal | Newsmakers

Ratcliffe

biznews.com

A rising

Two technologies speed recovery time, shorten hospital stays.

Page 12

➤

Lateral growth for law firms shifts business mode ls

L

arge regional and international law firms are moving into town, reflecting a recent shift in the legal profession. Coupled with the perceived increase in small and boutique-style practices, lawyers are changing the way they think about the profession.

Recent law school graduates are facing increasing difficulty in finding jobs after the recession led to significant layoffs at firms and a scaling back of entrylevel hiring.

“There just aren’t jobs,” attorney Andy Savage said. “I know a lot of people who went into private practice who had no intention of doing it.”

At the Charleston School of Law, more than 150 students graduate each year. Those students are competing for jobs with experienced attorneys and fellow graduates, and the traditional path to employment isn’t cutand-dried.

“The model used to be a traditional, professional model,” said John Lassiter, president of Carolina Legal Staffing, which has offices across South Carolina and North Carolina.

It used to be that law students would train in the summer, get an offer from a firm, work for a few years and become partner.

“That’s not the path now for a large number of people who enter the profession,” Lassiter said. “With the recession, lots of law firms cut lawyers and other employees in the firm, reduced hiring capacity, and it forced a lot of new law school grads to rethink their plan.

“The Charleston market is seen by a lot of folks as an opportunity to have a successful practice both at the large scale and the small scale,” Lassiter said.

“If you can predict anything for the Charleston legal market, it is that it is going to be dynamic.”

2 • $2.00

See SMARTSTATE

A rising

To subscr Charleston Region ibe to the al Business call (843) 849-31 Journal, 16 www.charlest onbusiness.co m

By Lauren Ratcliffe

communications challenges

mtomsic@sc endowed chairs biznews.com to Charleston. included the Speakers tions martState hosted director of the challenge the perity Project Pathways its first-ever al conference at Harvard University, to Pros- funding program faces nationwhile its a trustee allocated dwindles. No new everyone but in December, drawing of the American Medical money has Association to the program cians who control the state leaders and politi- chief manufacturing been since fiscal officer of a division and a Regan the program’s its future. funding and U.S. Department of Commerce. at the Review Voit, chairman of the year 2008.

SmartState Board, But at the conference’s The conference run out of moneysaid the program expects author, academic attracted a best-selling charging speaker, Peter end, the closing and to sometime in Beattie, noted To secure new leaders and 2013. few Pal- its the program’s metto State politicians attended. partners — the funding, the program and Their absence Medical University highlights the of South communica-

S

6

➤

NEWS MAKERS 2012

From the 1.30.12 Issue

January 30 -

Febuary 12,

Republican primary elevates Lowcountry issues

Commercial driver Port of Charleston helps move commercial property.

Page 9

Year-end foreclosures

Distressed residential real estate recovering.

Page 10

Interstate traffic

Leaders urge improvements to Interstate 26.

Page 18

At Work Strategic moves

Founder and creative director helps Web design firm grow.

Page 19

F

otherNEWSMAKERS In front of 5,000 College of Charleston students, favorite native son Stephen Colbert asked S.C. to vote for Herman Cain since primary write-ins aren’t allowed. Cain, who had earlier dropped out, took more than 6,000 votes, including 1,000 from Charleston County.

Romney

Paul

Roundup

Economic Analysis at the College of Charleston.

“I guess if you want to take the view that every little bit helps, it is a little bit, and it helps,” Hefner said. “But we’re not going to (be) able to hire thousands of people because of this. There’s a general misperception that it brings in a lot of money.”

Hotels and restaurants get a bump, Hefner said, along with local television stations. The candidates and PACs spent more than $1 million on advertising with local television stations.

Across the state, super PACs alone spent more than $7 million on advertisements, according to Pro Publica’s PAC Track.

But the Lowcountry’s penchant for

s.com

Volume 18, No.

By Matt Tomsic

mtomsic@sc biznews.com

ExEcuTIVE

SuMMaRy or 11 days The benefits in of South Carolina’s focused on SouthJanuary, the country early primary minimal, though are Carolina. rewards may Republican come if Newt grich wins the Ginpresidential nomination and crisscrossed candidates the election. the state for speeches and super PACs rallies; searching and advertisements, candidates spent millions for any indication on of their voting psycho-analyzed and national media figures habits.

Palmetto State Primary season residents, generates activity, but experts think some economic the benefits are

Engineering

Desire 500 PARTS,

10 WEEKS FIRST Robotics Team 342, the Burning Magnetos, is building a robot national competitiofor a n that teaches high school students about programm ing, design, animation, engineerin g and much more.

PAGE 4 Kai Holnes tests a prototype for the FIRST Robotics Competition.

(Photo/Leslie

Burden)

INSIDE Upfront ........................... ..2 In Focus: commercial & Residential Real Estate ......................9 List: Residential Real Estate ....................14

See PRIMARY,

By Lauren Ratcliffe lratcliffe@sc biznews.com

T

he answer to America’s and South Carolinia’s unemploym ent could rest in the hands problems workers. of foreign Business leaders from across try are arguing the Lowcounon for immigration behalf of programs that call reform that ing workers to the country focuses on bringent argument legally — a differthan “You see on the one typically heard. the news the undocumen discussion of ted gration — and immigration — illegal immiof our country,”how it’s destroying the fabric author Richard immigration attorney and Hermann said.

Hermann was the keynote Charleston speaker at the Metro quarterly meeting Chamber of Commerce’s earlier this author of the book Immigrationmonth. The mann says bringing Inc., Herin immigrants Americans out of jobs, but instead won’t push opportunities create new for them.

“By delaying missing out on immigration reform, we’re the benefits of said. job creation,” he Jeremy Robbins, manager of ship for a New the PartnerAmerican Economy, a New , Page 17

cr bj

Most read story on CharlestonBusiness.com

Boeing finds problems in S.C. manufacturing process

Page 6

➤

Help Wanted

Businesses say legal immigration may put more Americans to work

See IMMIGRATION Home Builders ..............16 At Work ..........................

19 Economics Column ........20 People in the News .........21 Business Digest ..............22 Calendar .........................2 Viewpoint........................2 2 3

3 • $2.00

minimal, described by local economist Hefner as the Frank “icing on the cake” for offseason Charleston.

But the early to put South contest’s real value is its ability Carolina issues agenda, said David Yepsen, on the national Iowa caucuses. a veteran of the Residents saw that power on Jan. 19, when

IDENTITY CARD Battle over state voter ID law far from over See Story, Page 8

hosting conferences and other events leaves less of a hole for the primary to fill.

Yepsen, a former Des Moines Register political reporter who covered nine presidential campaigns, said the economic impact of Iowa’s caucuses is also overblown. Yepsen said the television stations are the biggest beneficiaries.

“That’s great for them, but most of them in Iowa are owned by out-of-state corporations,” he said, adding the money generated by the caucuses is less than 0.5% of Iowa’s gross product. “What’s the impact on the guy on the street of all that TV advertising spending? I’m just not sure it’s that much.”

The real value in an early caucus or primary lies elsewhere, Yepsen said.

“I never thought it meant that much to the Iowa economy,” he said. “But what it does do is put your issues on the agenda.”

A big winner of Iowa’s caucuses has been the state’s ethanol industry, which gets a lot of attention from the candidates, Yepsen said. The industry has been subsidized for decades by the federal government until this year, when the subsidy expired.

“Whatever local issues you have, that’s what really wins for a state,” he said, adding the primary process forces politicians and national media to focus on local issues. “That’s a great strength of the process. This process forces somebody running for president to learn about this country. That’s a real benefit for a state, not somebody running up expense tab meals at some restaurant.”

for week of 1.30.12 12 Charleston Regional Business Journal | Newsmakers

stonbusines

Primary boosts TV dollars, eleva tes Lowcountry issues

F

To subscr charleston Region ibe to the al Business call (843) 849-31 Journal, 16 www.charlest onbusiness.co m

By Matt Tomsic or 11 days in January, the country focused on South Carolina.

Republican presidential candidates crisscrossed the state for speeches and rallies; super PACs and candidates spent millions on advertisements; and national media figures psychoanalyzed Palmetto State residents, searching for any indication of their Gingrich Santorum voting habits.

Primary season generates some economic activity, but experts think PRIMARY Candidates the benefits are minimal, described by College of Charleston economist Frank Hefner as the “icing on the cake” for offseason Charleston.

But the early contest’s real value is its ability to put South Carolina issues on the national agenda, said David Yepsen, — received national attention during a a veteran of the Iowa caucuses.

CNN debate in Charleston. The debate, Residents saw that power on Jan. along with another debate in Myrtle 19, when two Lowcountry issues — Beach, launched Newt Gingrich over port deepening and the National former frontrunner Mitt Romney in Labor Relations Board’s withdrawal the primary. of a complaint against the Boeing Co. The early primary not only elevates local issues, but it could have turned into more federal money allocated to the Palmetto State if the winner of the state’s primary, former House Speaker Gingrich, had won the White House. A North Carolina State University study found the effect could be worth roughly $29 more per capita in federal spending in the Lowcountry.

Usually, the primary doesn’t do much for the Lowcountry economy, said Hefner, director of the Office of

2012 • www.charle

Primary concerns

Quotes and notes the GOP primary from in Charleston.

Page 2

In Focus: Commercial Residential and Real Estate

➤

NEWS MAKERS 2012

From the 2.13.12 Issue

Harvesting a crop of new farmers

By Lauren Ratcliffe

H

is hands are rough from years spent wrapped around the handle of a shovel, dirt permanently fixed under his fingernails. A full, wiry gray beard covers most of his face, and around his eyes, lines tell the story of years spent toiling under the hot South Carolina sun.

Sidi Limehouse, a farmer for Rosebank Farms, is the face of Lowcountry farming and the face of why Lowcountry Local First is setting out to grow a new crop of farmers. “I’m 73, and I’m the youngest farmer here,” he said.

As Charleston County farmers age into retirement, much of their knowledge could be lost if a younger group doesn’t learn from them. Lowcountry Local First’s idea: Begin an apprenticeship program that would turn into an incubator for young or new farmers to hone their skills and continue the local food movement.

“The average age of farmers is 58 or 59, and we were seeing those farmers aging out,” said Nikki Seibert, director for sustainable agriculture for Lowcountry Local First. “We weren’t seeing people coming up the ranks to replace them or even working underneath them and learning.”

The program pairs apprentices with working farmers to help them get dirtladen knowledge during the day.

“On the farm, you learn you need to fertilize at a certain time, and in the classroom, you learn why,” Seibert said.

VOICES FROM THE FIELDS “ I’m 73, and I’m the youngest farmer here.”

Sidi Limehouse “ I wanted to learn how to grow my own food. I think it is one of the most important things anyone can learn, really.”

Bo Collins

“ The average age of farmers is 58 or 59, and we were seeing those farmers aging out. We weren’t seeing people coming up the ranks to Nikki Seibert replace them.”

Photo/Leslie Burden

cr bj

otherNEWSMAKERS Former Carolina Panthers standout Muhsin “Moose” Muhammad joined a Charlotte, N.C., capital group to invest in the Wild Wing Cafe, a Charleston-based restaurant chain.

Most read story on CharlestonBusiness.com

787 nearing final position in N. Charleston facility for week of 2.13.12

14 Charleston Regional Business Journal | Newsmakers

NEWS MAKERS 2012

From the 2.27.12 Issue

Doctor payments spark conflict of interest debate

By Matt Tomsic

Total Lowcountry area payments N

8 5

10

Francis Marion National Forest

7 3 11 1

2

9

6

4

D

uring the last three years, drug companies paid South Carolina’s doctors more than $10 million, while Lowcountry doctors received more than $2.6 million. The flood of money paid for speeches, consultations, research, meals and travel; and the payments have led to a re-examination of ties between the pharmaceutical industry and medical professionals.

“Widespread relationships with industry have created significant risks that individual and institutional financial interests may unduly influence professionals’ judgments about the primary interests or goals of medicine,” states a report by the Institute of Medicine of the National Academies. “Such conflicts of interest threaten the integrity of scientific investigations, the objectivity of medical education and the quality of patient care. They may also jeopardize public trust in medicine.”

One Lowcountry doctor ended his

1 2 3 4 5 6 7 8 9 10

11

Charleston Mount Pleasant North Charleston Johns Island Summerville Sullivan’s Island Ladson Moncks Corner Isle of Palms Goose Creek Daniel Island

paid speaking engagements over concerns of drug company control over his speeches and presentations. Also hospital policies have evolved to govern interactions between their staffs and drug reps.

Lowcountry medical professionals received more than $2.6 million between 2009 and 2011, according to data collected by Pro Publica, an independent, nonprofit newsroom that makes its data freely available.

Charleston doctors received $1.7 million, while Mount Pleasant followed with $658,000. Pfizer paid $1 million to the area’s doctors; Eli Lilly & Co. paid $674,000, and GlaxoSmithKline paid $493,000. AstraZeneca, Cephalon, Johnson & Johnson, Merck, Novartis and Viiv Healthcare also gave thousands of dollars to Lowcountry medical professionals.

Most of the pharmaceutical companies’ money went to research and speaking fees — $1.2 million and $1.1 million, respectively.

The figures represent a glimpse of

the pharmaceutical industry’s relationship with local doctors, and total payments could be much more than the $2.9 million reported.

Pro Publica collected the data from disclosures by pharmaceutical companies, but the payments database is not comprehensive. Pharmaceutical companies haven’t been required to collect and publish the data until January 2012, when the Physician Payments Sunshine provisions of the Affordable Care Act took effect. The provision requires health care manufacturers to report payments each year, and the first report is due in March 2013. Nationwide, the disclosures represent the activities of pharmaceutical companies that equal about 40% of the American prescription drug market in 2010.

Locally, the disclosures aren’t comprehensive, either. Allergan reported nearly 100 payments to Lowcountry medical professionals. The $2.6 million does not include those payments.

otherNewsmakers

cr bj

Most read story on CharlestonBusiness.com

Ten months before North Charleston and the state settled the rail issue, an official from S.C. Public Railways challenged Mayor Keith Summey at a Power Breakfast. Summey was passionate and vocal about limiting rail in the city.

Sheri Cooper of S.C. Public Railways

16 Charleston Regional Business Journal | Newsmakers

$1,738,981 $658,310 $71,364 $68,107 $36,410 $19,878 $8,735 $4,362 $2,000 $796 $224

Pharmaceutical companies gave the largest one-time payments to Lowcountry doctors in 2009 and 2010, when Dr. Benjamin Weinstein received the largest one-time payment — $67,000. Weinstein was followed by Dr. Deborah Deas, $65,600; Dr. Ward Katsanis, $57,500; Dr. Robert Clifford, $38,175; and Dr. Jonathan Edwards, $33,300. All of the payments were for giving speeches. None agreed to be interviewed.

Weinstein, Deas and Edwards work for the Medical University of South Carolina, while Katsanis and Clifford are in private practice.

“They weren’t trying to hide anything,” said Mark Sothmann, vice president for academic affairs and provost for MUSC. “Their activity is significantly reduced, and one has stopped completely.”

Heather Woolwine, a spokesperson for MUSC, said Weinstein is no longer employed at MUSC, and Edwards is no longer accepting speaking jobs from pharmaceutical companies because of restrictions the companies place on their speakers. Those restrictions include using the company’s slides and presentation, and companies have also limited the information speakers can give about generic drugs and other treatment options. MUSC policy eventually caught up with the trend Edwards noticed.

Mary Anne Rhyne, a spokeswoman for GlaxoSmithKline, said her company requires doctors to use its slides and presentations.

“That is primarily so that we know that all of the presentation materials are in line with the label of the medicine and have been reviewed and approved by the FDA,” Rhyne said.

Woolwine said the tight restrictions drove away doctors like Edwards who performed the work for educational purposes.

Low

Force Protection to lay off 155 employees for week of 2.27.12

High

NEWS MAKERS 2012

From the 3.12.12 Issue

March 12 - 25,

2012 • www.charle

PeopleMatter attracts Silicon Valley investment

stonbusines

s.com

Lawsuit could push Chef Q&A

Local chefs answer questions about their culinary penchants and careers. Page 16

Veto wars

Gov. Nikki Haley and General Assembly the fight over a permit for to deepen the a project Savannah River. Page 10

A

By Lauren Ratcliff e lratcliffe@sc biznews.com

restaurants past tipping

Volume 18, No.

ExEcutiV

n hour or E SuMMAry two A Missouri lawsuit opens its doors before a restaurant revealed disparity restaurants pay in how en and dining for service, the kitchwait staff for time spent away room are already ing with energy. from customers. buzzWait staff and bartenders customer places clean and set an order. tables, prepare roll silverware, These tasks form a variety the might take minutes of other tasks bar and per- during any given before the first or hours ees are charged shift, but if the same employwith completing them, the

MoneyMatters in February, PeopleMatter announced a $14 million investment from a Silicon Valley venture capital firm that has backed tech giants like Apple and startups like Siri. Days later, PeopleMatter unveiled its third platform: Schedule. Full story, Page 12.

Prosperity Index

Clemson University’s Prosperity Index finds favorable economic conditions in the Lowcountry.

Page 7

Sweet peaches!

Who grows more peaches, S.C. or Georgia? And what’s North Carolina’s state dance? Page 4

Photo/Leslie

INSIDE

By Matt Tomsic

Burden

See TIPPING,

...2

Tourism ...15

..22

....24

By Matt Tomsic

mtomsic@scbiznews.co m orce Protection in late February cut roughly 155 jobs by the company’s after an assessment new owner, Dynamics.

General “Following ful assessment a careof the operations and ExEcutiVE ing requiremen ongoSummAry the business, ts of General The Dynamics Ladson-area has deterdefense contracmined that it is necestor said sary to reduce the size affected the layoffs of our workforce administraat tive and professionthe business formerly al known as positions only.

Force tection,” according Proto a statement.

The layoffs affected administrat professional ive and positions.

Tommy Pruitt, a spokesman tection, said for Force Prothe reductions will layoffs began Feb. 27, and the improve the and competiven business’ strength ess.

The company continues to 600 people in the Lowcountr employ about y.

F

At Work ..........................

25 Economics Column ........26 People in the News .........27 Business Digest ..............30 Calendar .........................3 0

Viewpoint........................3

1

Page 6 ➤

At Work

Child advocate Executive director for children's center helps kids who have been abused.

Page 25

I

n February 2012, PeopleMatter doubled its venture capital funding, announcing financial support from a Silicon Valley firm days before a platform launch and reinforcing the Lowcountry’s potential to become the Southeast’s tech hub.

Morgenthaler injected $14 million into PeopleMatter and added the Lowcountry startup to its portfolio, which includes Apple; Siri, which was acquired by Apple; Nextel and others.

The investment matches the total amount of investment funds PeopleMatter has raised: $7 million in September 2009, then $7.2 million in April 2010; and the deal marks the first time a major Silicon Valley firm has made such an investment in a Charleston company.

While many high-tech firms have been born here, including Blackbaud, Benefitfocus and Automated Trading Desk, the lack of attention from the heart of the high-tech industry and its wash of venture capital has been considered a weakness for growing companies in the Southeast.

Nate DaPore, president and CEO of PeopleMatter, said the North Charleston tech firm will use the investment to accelerate the next generation of the company’s products.

“Morgenthaler is one of the oldest and largest venture capital firms in the Valley,” DaPore said. “They are a leading,

(Photo/Leslie Burden)

high-tech, very successful venture firm.”

The deal ends a four-and-a-half month process that began in October, when PeopleMatter began approaching investors.

DaPore said company officials spent the first half of the process on the West Coast and met with roughly 12 firms.

editor’sNOTE We’re not really sure who coined the phrase “Silicon Harbor,” but the PeopleMatter announcement is where the phrase started being commonly used to refer to Charleston’s growing tech industry.

“Then, when we narrowed the field down to four funds, we had them visit us,” DaPore said. “We were very impressed that they would get on a plane and come all the way over to Charleston to see us.”

DaPore said the meetings were fun and gave the company a chance to showcase its culture and products.

Eventually, PeopleMatter chose Morgenthaler, a company that was interested in funding PeopleMatter because of its team and its success, which DaPore said includes three product launches in less than 18 months.

“Those were big appeals to them,” DaPore said. cr bj

Most read story on CharlestonBusiness.com

Treasury Department to sell stock in Charlestonbased bank for week of 3.12.12

18 Charleston Regional Business Journal | Newsmakers

Page 19

New owners bring job cuts to Force Protectio n

See FORCE,

Upfront ..........................

In Focus: Hospitality & List:

Hotels ..........................

Area Attractions........

7 • $2.00

point

time spent could add up.

That’s exactly the point of sorting itself a court case out Supreme Court in Missouri. In January, the chose not to in a case involving hear arguments Applebee’s Internation Inc. and more al The restaurant than 5,000 of its employees. before the Courtcompany brought the case arguing lower courts were

➤

NEWS MAKERS 2012

From the 3.26.12 Issue

March 26 - April

Golfing in the green

8, 2012

www.charle

Haley war chest filled with out-of-state cash

STEM developm ent SPAWAR and IFA work with studentsRotorion to inspire next generation of engineers and mathematicians.

Page 34

Vet Techs

Trident Tech partners with pet hospital to veterinary students help get hands-on experience.

Page 38

stonbusines

s.com

Lt. Gov. McConn ell: ‘not a job I

More golfers are hitting the links in S.C. Page 4

In Focus: Education & Workforce Development

By Lauren Ratcliffe

I

DREDG

See ARD, Page

Haley’s

The public presented a host of requests for the Charleston during the public comments period Harbor deepening project and Engineers to asked the Army consider ways Corps of to study alternative s, protect the environment protect historical and property.

Inside: Comments dredge up concern, support for harbor deepening . Page 8

At Work

Environmentally sound Chembion CEO helps businesses clean up.

Page 43

Photo/MattTo

msic

INSIDE

By Matt Tomsic

...2

.............41

At Work ..........................

43 Economics Column ........44 People in the News .........45 Business Digest ..............46 Calendar .........................4 6

Viewpoint........................4

7

S

State.

By Matt Tomsic

mtomsic@sc biznews.com

ince 2009, more than a third Nikki Haley’s of Gov. campaign contributio have come ns from outside the Palmetto

Haley has raised ly $4.7 million, roughing to campaign accord-

finance reports filed with Ethics Commissiothe S.C. n, and about 35% — or $1.6 million — of her contributions came from outside South Carolina.

Haley’s percentage Haley of out-of-state contributions is three times than her nearby more Gov. Bev Perduecounterparts, North Carolina and Georgia Deal. Haley’s Gov. Nathan out-of-state also roughly contributions 12 percentage are points higher her predecessor than , former Gov. Mark Sanford.

- Total fundraising out-of-state

S.C. Gov. Nikki Haley Total: $4.7 million Total outside of S.C.: $1.6 million

cr bj

Former S.C. Gov. Mark Sanford Total: $15.3 million Total outside of S.C.: $3.5 million

23%

35%

65%

77%

11%

11%

7%

89%

89%

93%

Ga. Gov. Nathan Deal

N.C. Gov. Bev Perdue

Total: $8.1 million Total outside of Ga.: $922,000

Total: $17.2 million Total outside of N.C.: $1.9 million

Ky. Gov. Steven Beshear and running mates* Total: $21.7 million Total outside of Ky.: $1.6 million

Contributions to Haley from:

Contributions from S.C. to:

Georgia: $98,776 North Carolina: $116,435

Georgia Gov. Deal: $21,125 North Carolina Gov. Perdue: $69,015

Source: Campaign finance reports * Kentucky was chosen due to its similarity with S.C. in both population and unemployment rate.

otherNewsmakers State Sen. Glenn McConnell reluctantly took over as lieutenant governor after Ken Ard pled guilty and was sentenced in a matter of hours for ethics violations surrounding his handling of campaign money.

Most read story on CharlestonBusiness.com

Environmental report: Cooper River laden with carcinogens for week of 3.26.12

20 Charleston Regional Business Journal | Newsmakers

Page 6

Meet the 2012 class of exceptional professionals young in the Charleston region. Page 15

Campaign Fundraising ‑ Total fundraising in-state

10

Gov. Nikki Haley raises more out-of-state money neighbors, predece than her ssor

See HALEY,

Upfront ..........................

In Focus:

Education and Workforce Development .................35 List:

S

8 • $2.00

war chest MATERIAE L

Private Schools

ince 2009, more than a third of Gov. Nikki Haley’s campaign contributions have come from outside the Palmetto State.

Haley has raised roughly $4.7 million, according to campaign finance reports filed with the S.C. Ethics Commission, and about 35% — or $1.6 million — of her contributions came from outside South Carolina.

Haley’s percentage of out-of-state contributions is three times more than her nearby counterparts, North Carolina Gov. Bev Perdue and Georgia Gov. Nathan Deal. Haley’s out-of-state contributions are also roughly 12 percentage points higher than her predecessor, former Gov. Mark Sanford.

Haley’s office and fundraisers ignored repeated calls and questions about outof-state fundraisers and contributions.

Edwin Bender, executive director of the National Institute on Money in State Politics, said governors are easy targets for out-of-state money because they deal with multi-state issues.

“When companies know they’re going to be in front of multiple states, they’re going to try to have a presence and have a voice,” Bender said.

But, Bender said, any time researchers see out-of-state funding rise above 20%, “we kind of scratch our heads.”

Kyle Kondik, a political analyst for the University of Virginia’s Center for Politics, said out-of-state fundraising by an elected official could lead to a chicken-versus-the-egg argument.

“Is Haley doing out-of-state fundraisers to build her national profile, or is she already a national figure who is a hot commodity for out-of-state fundraisers?” Kondik said in an email.

“Probably a little of both.”

Volume 18, No.

wanted’

lratcliffe@sc notably the completion biznews.com of Interstate McConnell n taking the 526. had served as oath of office 1980, rising state senator of lieutenant ernor, Glenn in the ranks gov- powerful McConnell to the Senate’s since left Charleston’ District 41 without position of president most s also served direct representat pro tempore. the senate. ion in Committee as chairman of the He He also left and had appointed Senate Judiciary uncertainty Carolinians the projects dozens of South as to boards and he was a staunch to the future of committees. supporter of —

➤

➤

NEWS MAKERS 2012

From the 4.9.12 Issue

April 9 - 22,

2012 • www.charle

Jobs for vets

Businesses and state agencies are helping jobless veterans find in South Carolina. work Page 6

Teams funnel to North Charleston for robotics competition

stonbusines

s.com

‘Electrified ’

energy

Carcinogens the Cooper in

An environment al ranked the Cooperreport River sixth on a list of rivers with a high level of carcinogens.

Page 14

Payday lending

Consumer advocates and payday lenders debate the industry’s significance in S.C. Page 21

342 update

Company form s domestic medicalto attract tourists

By Lauren Ratcliffe

lratcliffe@scb iznews.com Travel Surgery USA primarily ore than one focuses on outpatient travel abroad million Americans orthopedic for medical procedures each proceyear for everything dures. from knee replacement s to heart surgeries The basic idea, dental procedures, he or says, is Tourism Associationaccording to the Medical transparency in pricing. Even Enter Dr. James . cusSpearman, an tomers with surgeon in Summervill orthopedic insurance could e. He established el Surgery USA calculate Trav- costs the market of in January to capture some of procedures Americans traveling of and keeping them likely save abroad, and by money, Spearman he said.

“I realized theretheir money in the U.S. Insurance companies don’t have insuranceis a need for people who with negotiate discounts to be able hospitals for price for our services. Spearman’s service,” Spearmanto have a set company need’s been out offers lower said. “The new prices because tiations and done anything there a long time and no of negocompromise one’s about it, so I s among his decided I would.” team of

M

See TOURISM,

INSIDE In Focus:

By Matt Tomsic

A

Page 10

➤

Jasper project plods along

M

By Matt Tomsic

mtomsic@sc biznews.com

aritime officials South Carolina from Georgia and sparred over and studies plans in March during meeting for the a minal in South proposed Jasper Ocean TerCarolina.

The ocean terminal’s Joint Project consists of three Office board members state tasked from each with developing port in Jasper a jointly owned County, $5 billion developmen but work toward the tions of the impact t has stalled amid quesof a Savannah ening project River deepon the terminal nah River’s capacity. and the SavanDuring the meeting, officials argued about See JASPER,

........2

Financial Services ............

Lists:

21

Banks ......................... ....... 29 SBA Lenders .....................

32

At Work ......................... ..... 35 Economics Column ............ 36 People in the News .............

37 Business Digest .................. 38 Calendar ......................... ... 38 Viewpoint ......................... .. 39

Under the Tents

Page 15

Charleston Fashion Week highlights local and emerging designers., launching careers. Page 16

team

3 42 Cutline

Couch says, “This never gets old.”

(From left) Team 342 members Kai Holnes, Justin White and Alex West cheer during a FIRST Robotics match at the North Charleston Coliseum. (Photo/Leslie Burden)

engineering and math. The competition also asks students to reach into the community to advance FIRST and STEM education.

Many teams worked together during the build, including Team 342, the Burning Magnetos, which supported five teams at Robert Bosch. That support helped rookie teams implement their designs, said Daniel Kennedy, a high school student on Team 4261, a rookie team called the Raptors.

Daniel said the Raptors consulted them during their build; they received lots of advice, including tips that kept

editor’sNOTE There’s nothing more inspiring than being in an arena with hundreds of screaming kids excited about science and engineering. The future of our economy rests with these minds if we can find a way to keep them here and employed.

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them from burning out a sensitive piece of equipment.

The event also brought C.J. Couch back to the Lowcountry and to his former robotics team.

Couch started his robotics career with Team 342 when he was a freshman at Summerville High School. He is now studying mechanical engineering at Clemson University and helps mentor the Burning Magnetos.

Throughout the day, teams hustle their robots onto the court; in the stands, students from each team dance, wave signs, sing and cheer. cr bj

Most read story on CharlestonBusiness.com

Mendel Rivers Federal Building to become luxury hotel for week of 4.9.12

22 Charleston Regional Business Journal | Newsmakers

9 • $2.00

Photos/Leslie

team

Coupon clipping

A local business introduces a new to compete with model Groupon and LivingSocial .

Page 12

Upfront .........................

penguin dances, a yeti cheers from an upperdeck staircase, and a Stormtrooper pumps his fist.

The mascots spread throughout the North Charleston Coliseum, excited by robots zipping across the coliseum’s competition floor. Friends, family and mentors also pack the stands, cheering for teams of high school students while they prepare for the Palmetto Regional of the FIRST Robotics Competition.

“What you see is electrified energy from these students who, for the first time, are getting it,” said Elizabeth Barndollar, a mentor for Team 342 from North Charleston. “It’s all coming together.”

Barndollar said this is the time when the students see weeks’ worth of effort come to life, determining in minutes the scope of what they’ve accomplished.

Surrounded by constant crowd noise and music, students tweak and check their robots in the pit. Loudspeakers call teams to the queue as each match nears, and students — sounding more like soft drink and hot dog sellers climbing coliseum stairs at football games — shout “ROBOOOOT” while they cart their bot from the pit to the edge of a black curtain. From there, the teams move courtside to wait their turn.

Over and over again, educators, mentors and professionals say the same thing: These students are the country’s future engineers.

“These are mini-experiments of how it’s going to be in the future, and they’re getting these skills before they hit the workforce,” said Barndollar, a business analyst for Life Cycle Engineering.

The FIRST Robotics Competition tests students’ technical skills and builds interest in science, technology,

Volume 18, No.

During one weekend in March, high teams packed school into to see the results the North Charleston robotics Coliseum of shooting and weeks of work on basketballplatform- balancing robots.

PAGE 8

➤

Burden

NEWS MAKERS 2012

From the 4.23.12 Issue

April 23 - May

6, 2012 • www.charle

stonbusines

s.com

Volume 18, No.

Boeing has options in Lowcountry

Big Unveilin

g Boeing plans to roll the first S.C.-made out 787 this Friday.

Page 6 Going Deeper

Export figures nearing import numbers at Port of Charleston

The Army Corps of Engineers recommends deepening the Savannah River to 47 feet.

Page 11

mtomsic@sc biznews.com n Ladson, a chain edge of the Boeing link fence marks the Co.’s footprint. that fence, lies Beyond sents the company’sthe empty field that reprepotential.

The fence is the boundary the aerospace between ExEcutiVE giant’s Interiors Responsibil SUmmary ity Center and The Boeing Co. has of undevelope94 acres an option to buy d land that Boeing has tagged 94 acres of land with an option to buy next to one of its and right of first refus- facilities in Ladson. al, according to filings with the Charleston County Register Conveyance of Mesne .

The land filing shows one of options in the the company’s Lowcountry.

But Boeing might

I

Cutting Back

Hugh Lane, Bank CEO, is cutting of S.C. back his work-hours and retiring.

Page 13

Close-up

Ports authority board members get an in-depth look at business through the first quarter.

Page 25

Rail plan

Exec says S.C. needs to include rail in its statewide infrastructur e plan.

Page 22

exports

A national report and S.C. State statistics show Ports Authority growth Carolina manufacture in exports by South rs and growth flowing through in exports the Port of Charleston.

and the port’s CEO discussing exports.

Photo/Leslie

What the world wants, the world gets from S.C.

See BOEING,

Burden

INSIDE Upfront ........................... .......2 In Focus: ...........................

15

By Matt Tomsic

List: 3PLs/

Freight Forwarders ...........23 Colleges & Universities ....24 At Work ........................... ....27

See MAGNET, Economics Column .............28 People in the News ..............29 Business Digest ...................30 Calendar ........................... ...30 Viewpoint........................... ..31

Page 8

At Work

Charleston kite shop owner keeps business simple for niche customers.

Page 27

E

xports are pulling even with imports again at the Port of Charleston, and port officials say the balance could be sustainable and play a role in the port’s growth.

The port saw periods when imports and exports balanced, but since May 2011, import cargo has overtaken export cargo when measured by 20-foot equivalent units, or TEUs, a common shipping measurement. In February 2012, the numbers balanced again and officials think the trend will continue.

“Our exports are growing as we foresaw they would,” said Jim Newsome, the president and CEO of the S.C. State Ports Authority.

The export mix carries significance for the future of the Port of Charleston and the strength of the South Carolina economy.

In 2005, exports through the Port of Charleston peaked at nearly 679,000 TEUs, though that same year saw roughly 901,000 TEUs imported.

Since then, exports hovered around 678,000 TEUs, while imports declined each year until 2008, when the port imported roughly 697,000 TEUs. In 2009, as the Great Recession gripped the global economy, overall cargo figures dropped 28%. The port exported roughly 492,000 TEUs that year. In 2010 and 2011, import and export cargo began rising, though imports outpaced exports until 2012.

The Chinese economy is one factor driving the increase in exports.

“They’re developing a middle class

Workers unload BMWs from trains at the Port of Charleston’s Columbus Street Terminal. The cars arrive from BMW’s Spartanburg plant by train before being loaded onto ships. (Photo/Leslie Burden)

of 500 million people,” Newsome said, adding the middle class population is bigger than the United States’ total population of 313 million, according to the Census Bureau.

Newsome said the rising Chinese middle class is raising the standard of living and the demand for American agricultural and manufactured goods.

The demand, coupled with the Southeast’s growth in manufacturing,

has boosted the amount of goods traveling through the Port of Charleston.

“It’s a rising standard of living,” Newsome said. “It’s a good trend for us.”

Michelin, BMW and others are increasing exports through the port.

In 2011, BMW exported $7.4 billion worth of vehicles through the Port of Charleston. The company exported roughly 192,000 BMWs from its South Carolina plant.

The rise in exports comes at an opportune time for the port, which has begun a study to deepen its harbor beyond 45 feet, Newsome said. The port handles post-Panamax ships on high tides, but deepening the harbor to 50 feet would allow larger ships to call on any tide. Newsome said the depth translates into 500 more loaded containers per ship and $25 million to $30 million for a weekly shipping service. cr bj

“It’s a rising standard of living.

It’s a good trend for us.”

Jim Newsome, CEO of the S.C. State Ports Authority, on the rise of China’s middle class

editor’sNOTE The Port of Charleston plays a role across the state of South Carolina, linking the farthest inland customers to the world through its harborside terminals.

Most read story on CharlestonBusiness.com

The Boeing Co. has options in South Carolina for week of 4.23.12

24 Charleston Regional Business Journal | Newsmakers

Page 12

➤

Small leaders learn to think globally

• Exports pulling even with imports Pages 15

By Lauren Ratcliffe • Metro areas tied to exports, lratcliffe@sc biznews.com manufacturing Page 15 • Michelin hen the doors expands Earthmover to James B. Edwards Elementary tire production school open across S.C. next fall with Page 16 in the hallways the patter of feet echoing • Global Business markers filling and the squeaks of dry erase Resource Center learning more classrooms, students will trains next-gen be logistics. perform long than how to read, write and division.

Page 17

W

Check online for of BmWs cruisingvideo ships in Charlestononto

10 • $2.00

By Matt Tomsic

➤

NEWS MAKERS 2012

From the 5.7.12 Issue

The first of many Charleston Dreamliners

By Matt Tomsic

Voices “We were all excited about the opportunity that was unfolding before our very eyes.”

Rep. Tim Scott on the process of Boeing breaking ground, opening buildings and starting production

“I think the biggest thing that Boeing did was in a downturned economy, it gave people the sense that the economy was coming back.”

North Charleston Mayor Keith Summey

The rollout of the first 787 Dreamliner built in North Charleston marked the first time since World War II that the Boeing Co. assembled an airplane outside of Puget Sound in Washington state. (Photo/Leslie Burden)

B

oeing South Carolina employees heard the warnings: Drilling one misplaced hole would be costly and devastating to the production of the first 787 Dreamliner.

Jack Jones, vice president and general manager of Boeing South Carolina, noticed the anxiety each day as he walked the floor during preparations to attach the wings.

The chief mechanics checked the preparations, and when the employees still hesitated, the engineers gave

forceful, direct instructions: Put your hands on that drill and pull the trigger.

“That, to me, was going to be the benchmark — whether we could do what we said we were going to do and we could do it with just recently trained employees,” Jones said. “Once we got through that process, I thought, ‘This is very doable.’”

That first 787, now completed, rolled from the final assembly facility in North Charleston April 27.

“It’s history for this state,” Jones said.

“It’s history for the Boeing Co.”

editor’sNOTE The Business Journal’s newsroom debated using the “WE BUILD JETS” headline before deciding the chant captured the accomplishments of a workforce that was dismissed by union workers but delivered the first Boeing plane built outside Puget Sound in decades.

“I think historic is an understatement.

This will be a day that everyone will look at South Carolina and say, ‘They did it.’ ”

Boeing Commercial Airplanes CEO Gov. Nikki Haley Jim Albaugh said the rollout also was a historic day for the company.

“You sold us on South Carolina, and we’re really happy you did,” he said. “It’s an airplane that others will be measured against for decades to come.”

The 787 is the first airplane Boeing completed outside of Puget Sound since World War II. “We are telling the entire world that we build things in South Carolina,” said Gov. Nikki Haley. “And now we build dreams, big mack-daddy 787 dreams.”

Jack Jones, vice president and general manager for Boeing South Carolina

cr bj

Most read story on CharlestonBusiness.com

Boeing looks to ramp up 787 production for week of 5.7.12

26 Charleston Regional Business Journal | Newsmakers

“This is truly going to be one of the biggest (events) symbolically in the history of the Boeing Co.”

NEWS MAKERS 2012

From the 5.21.12 Issue

May 21 - June

3, 2012 • www.charle

Revving the

Why Convio is a big deal for Blackbaud

Boeing S.C. fires up engines on first Dreamliner.

Page 11

787

Team 342’s legacy

Working with robotics underpins career decisions.

Page 5

On the waterfront

Cloud-based scheduling system speeds longshoremen to the docks.

Page 4

stonbusines

s.com

Maritime Com mission rejects 47-foot Savannah River

T

Volume 18, No.

By Matt Tomsic

mtomsic@sc biznews.com

ExEcutiVE summary

he Savannah The Savannah River River Maritime mission is arguing Maritime ComCommission recommended has the S.C. Departdeepening the ment of Health Savannah River to 45 feet, two and Control had feet shorter than help drafting Environmental an Army Corps water quality a South Carolina recommendat permit ion.

Expansion Project, for the Savannah Harbor according to A 70-page Savannah that revealed documents information River Maritime about the project’s mission document environmen tal and financial provided details Comthe permitting impacts. about process and while also providing the project’s the commission cost, ’s own

What’s in sto re When Mount Pleasant Town that prohibits Council large-scale developmen voted to remove an ordinance over what kind t, the decision of commercia didn’t end debate l growth ZONING DECISION, the town should pursue.

Page 11 THE GREGG TRACT, Page 13

At Work

Animal Society’s new CEO sets example.

Page 33 Photos/Leslie

Burden

INSIDE

By Lauren Ratcliffe

See MARITIME,

..2

F

By Lauren Ratcliffe lratcliffe@sc biznews.com

or the past four at Blackbaud months, meetings held Inc. tra, “Beat Convio.”ended with the manOn May 8, the former competitors one with the became completion of Blackbaud’s acquisition ExEcutiVE of Inc. The $325 Convio SuMMARy million dollar cash-tender deal The recently is the largest acquisition completed merger in Blackbaud between history.

The two nonprofit BlackbaudConvio and resulted software companies in one of the largest discussed joining had statistical in the analysis past, but discussions system companies turned to actions when in the world.

Blackbaud first filed premerger paperwork on Jan. 17.

“It was more likely to be than an ‘if ’ a timing issue issue,” said Jana Eggers, vice president senior of turned out that products and marketing.

“It this was the right time.”

Convio specialized in solutions for nonprofits and online giving had a few large-

At Work ..........................

33 Economics Column ........34 People in the News .........35 Business Digest ..............38 Calendar .........................3 Viewpoint........................3 8 9

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CHARLESTON UNDER

CONSTRUCTION Page 11

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or months, meetings held at Blackbaud Inc. ended with the mantra, “Beat Convio.”

On May 8, the former competitors became one with the completion of Blackbaud’s acquisition of Convio Inc. The $325 million cash-tender deal is the largest acquisition in Blackbaud history.

The two software companies had discussed joining in the past, but discussions turned to actions when Blackbaud first filed premerger paperwork on Jan. 17.

“It was more likely to be a timing issue than an ‘if ’ issue,” said Jana Eggers, senior vice president of products and marketing. “It turned out that this was the right time.”

Convio specialized in online giving solutions for nonprofits and had a few large-event clients in their portfolio. In the online space, Convio directly competed with Blackbaud. “(Blackbaud) definitely competed with them in some spaces,” she said. “But we, as a company, didn’t run into them that much because we are so broad.”

Eggers said the “Beat Convio” signs served as an internal reminder to keep alert and active in the avenues where the two companies overlapped.

“They were full force competing with us,” Eggers said. “They had footballs and signs that said ‘Beat Blackbaud.’”

Convio’s signs had changed to ‘Be at Blackbaud’ by the time executives arrived for company meetings in mid-May. Eggers said the final decision to acquire Convio came down to the company’s ability to fill in areas of expertise and round out Blackbaud’s portfolio.

In the broad “events” category, Blackbaud focused on small- to medium-sized events, where Convio had larger clients.

“They had a smaller number of large

Blackbaud, which is based on Daniel Island, acquired Convio to round out its offerings for nonprofits. Both companies had competed with each other in that space, and the rivalry fueled the companies throughout the acquisition process. (Photo/Leslie Burden)

Jana Eggers events, and we had a larger number of smaller events,” Eggers said. “Now, we kind of have both. It was like that in a lot of areas.”

Blackbaud initially focused its business around major charitable gifts and creating software solutions to help nonprofits seek and manage those dona-

editor’sNOTE The Convio-Blackbaud merger was big for the Charleston tech community, but the Daniel Island company had been expanding for years by developing new products and acquiring smaller companies.

tions. Convio began as an online giving platform and quickly developed were not happening online.” expertise in online fundraising.

The newly combined company is one “(Convio) started in the online space of the largest statistical analysis system when online was new,” Eggers said. “We vendors in the world. didn’t focus there as much because the “It’s pretty exciting,” Eggers said. history of Blackbaud is more with major gifts — and most major gifts at that time cr bj

Most read story on CharlestonBusiness.com

Documents show residencies of Boeing’s first 1,500 employees for week of 5.21.12

28 Charleston Regional Business Journal | Newsmakers

Page 6 ➤

Why Convio is a big deal for Blackbaud

See BLACKBAUD,

Upfront ...........................

In Focus: Architecture, Engineering,

Construction .................11 List: Architecture Firms ........29 SIOR ........................... ....31

11 • $2.00

recommend ation: Dredge the Savannah to 45 feet — not 47.

River The commission voted to pass on May 8, when staff presented the decision during a commission the document meeting.

In April, the Savannah DistrictArmy Corps of Engineers recommend the Savannah River from its ed deepening 42 feet to 47 current depth feet. The maritime of commission

➤

NEWS MAKERS 2012

From the 6.4.12 Issue

June 4 - 17,

2012 • www.charle

Businessman arested

North Charleston

Nation’s only tea plantation brews business, teaches history

stonbusines

An oral will isn ’t really a will at s.com

Volume 18, No.

First in flight

The first Dreamliner in North Charleston made logs nearly 2,000 miles.

Page 4

businessman charged with doing business with Iran.

Page 15

Economic incentives

Dorchester and Charleston counties pass incentive packages for economic development projects.

Page 7

E

lratcliffe@sc

biznews.com

ExEcutiV

Brewing

See Will, Page

S

Photo/Leslie Burden

INSIDE

By Lauren Ratcliffe

Upfront .......................... ...2 In Focus: Law................27 List: Law Firms .............32 At Work ..........................

35

Economics Column

........36

mtomsic@sc biznews.com

People in the News .........37 Business Digest ..............38 Calendar .........................3 8

Viewpoint........................3

9

2012 Disaster Preparedness Guide

See Rail, Page

Don’t struggle to keep your business afloat; be prepared for the unexpected. Page 17

W

illiam Hall has tasted thousands of cups of tea. A third-generation tea tasterturned-tea grower, Hall one day hopes to supply all the tea America drinks from the Charleston Tea Plantation.

Tea imported from Asia in the 1800s often took months to make it from the plant to the cup. In South Carolina, tea plants first appeared in the late 1700s but weren’t grown for drinking.

“Tea plants were brought to Middleton Place,” Hall said. “They were strictly ornamental plants.”

The 127-acre Charleston Tea Plantation is the only working tea plantation in the United States. A smaller 50-acre farm in Washington state also produces tea on a small scale, and a handful of growers in Hawaii also exist.

Hall said the history of growing tea in South Carolina began with attempts in Greenville and then in Georgetown. A successful plantation began in Summerville in the late 1800s, and those bushes produce the tea grown on the plan(Photo/Leslie Burden)

tation today.

“When you take a cutting of the plant and you make a new plant, that new plant isn’t 1 year old,” Hall said. “It’s the same age as the mother plant. A good portion of our plants date back to 1888.”

In 1987, Hall resurrected Lowcountry commercial teagrowing by purchasing the plantation from Lipton. Lipton had been using the site as a research and development farm for nearly 30 years.

editor’sNOTE Oliver Pluff & Co., a tea import company, also entered the Charleston market this year to package and distribute recreated Colonial-era teas. “We are trying to get back to the original blends and gardens they were using,” said owner Kyle Brown.

In 2003, Hall partnered with Bigelow Tea to expand and continue production on the plantation. Bigelow packages and flavors all the American Classic Tea bagged products found in specialty and grocery stores from coast to coast.

Hall said his business model is sustainable because of the relatively low risk of cultivating tea.

“Tea is a very good crop,” Hall said.

“Once it is planted, the land will never be tilled again. We’re putting out 5,000 tea plants per acre.”

Hall said his long-term dream would be for the plantation to supply all 200 million pounds of tea Americans consume annually. But for now, he said he’s excited to teach people the business and the history of tea in America.

“This is really the only place (in America) where tea is grown,” Hall said.

“I like the history of it, and I want to see it continue.” cr bj

Most read story on CharlestonBusiness.com

SCE&G nuclear construction project running below budget for week of 6.4.12

30 Charleston Regional Business Journal | Newsmakers

12

By Matt Tomsic

everal lawsuits are crawling state’s judicial through system as attorneys the the state of South for Carolina and of North the city Charleston continue to argue over a proposed rail ExEcutiVE the former Navyyard on base.

Summary The filings offer some new charges about the Court filings provide controversy new information — sions between discus- to the ongoing rail the S.C. yard State Ports controversy ity and S.C. Author- between the state Public of Railways and South Carocooperation between lina and the city the North Charlestoncity of North Charleston.of and the Coastal Conservation League — for the proposed Charleston Naval rail yard and But those involved Base Container Terminal.

The filings also dispute the arguments. gation after the pull new names into the litiS.C. Departmen added tenants of the Navy Yard t of Commerce lawsuit. The additions include at Noisette to a line’s Kitchen, residents, CaroLesniak & Associates, Lowcoun-

A new competitor from Charleston hopes to take market share Tea Plantation, tea plantation in the country, the only active importing Colonial-era by recreating and blends of tea.

Page 10

Bike paths could be millions in tourism worth dollars.

Page 16

Growing attraction

13 • $2.00

all

plot her father told “I had a lawyerher he wanted her to have. before I came South Carolina), (back to and he had that I didn’t me to believe need a deed people (in because all my these releasing their family) had signed for me part in my acre, “Heirs’ property ” Chillis said. is like that, everybody owns

Rail lawsuits continue, offer some new details

Business

Linking communities

Patriots Point budgets for revenue increase.

Page 5

By Lauren Ratcliffe

E summary rcelle Chillis’ father didn’t Heirs’ property owners struggle have a will.

Before he died, with family he asked her legacies and the land to live on legal challenges. chase in 1926. he worked so hard to pur- tract He bought enough of land in his children for each of to have father’s passing, 1983 nearly 20 years after But, when Chillis one acre. her the land for moved back to the family saved his money had becomewhich her father — and a struggle heirs’ property ensued to clear a title to the

8

➤

➤

NEWS MAKERS 2012

From the 6.18.12 Issue

June 18 - July

1, 2012 • www.charle

Charleston area lacks class “A” office space.

PAGE 3

Orphan tumors

Spoleto at 36: Inspiring other arts festivals while facing future funding problems

stonbusines

s.com

Lowcountry scor es well

Spec building boost?

Medical nonprofit tackles rare cancers.

PAGE 8

An app for that

T

By Matt Tomsic

mtomsic@sc biznews.com

art

For the second Spoleto dipped consecutive year, funds to stage into reserve international the $6.4 million arts event against the backdrop of cultural characterCharleston’s and venues.

Page 4

Company creates apps for small businesses.

PAGE 12

Photo/Leslie Burden

INSIDE Upfront ...........................

In Focus: Technology ..2 & Innovation .....................11 List: IT Network Design ..........................

16 Industrial Staffing Agencies .......................18

By Harriet McLeod, contributing writer

S

n)

(Photo/Leslie Burde

editor’sNOTE Spoleto is one of the largest annual festivals in the Charleston region, which also hosts the Southeastern Wildlife Exposition and the Food & Wine Festival in February and March.

Most read story on CharlestonBusiness.com

Haley, SCE&G support SMR industry for week of 6.18.12

34 Charleston Regional Business Journal | Newsmakers

Page 6 ➤

Justices question DHEC's authority

S

By Matt Tomsic

mtomsic@sc biznews.com

tate Supreme Court justices attorneys with peppered questions about authority of the S.C. Departmen the Health and Environmen t of tal Control permits for to issue a river deepening project without consulting ExEcutiVE the Savannah River summary time Commissio Mari- The S.C. Supreme n.

In early June Court heard argu— months after a Novem- ments about state ber DHEC board agencies’ authority decision — attorneys over a controversial gathered in Columbia river deepening to argue the project. ity of DHEC authorSavannah Riverand the arguments are Maritime Commission.

The one of two legal DHEC’s permit challenges to for the Savannahgranted to Georgia officials Harbor Expansion which plans Project, to deepen the Savannah River 47 feet and to allow better to Ports Authority access at Georgia terminals.

DHEC staff first denied the tember, and permit in SepGeorgia Gov. Nathan Deal Gov. Nikki Haley asked hear an appeal. to allow the DHEC board Haley agreed. to At a November issued the permit DHEC meeting, the board after Georgia officials agreed See SUPCO,

At Work ..........................

19 Economics Column ........20 People in the News .........21 Business Digest ..............22 Calendar .........................2 Viewpoint........................2 2 3

14 • $2.00

area with a hell of a future.”

But Gossett and others said firms a trend the study conthat driving through residents have noticed while business executivesregion and bumping into while waiting Charleston Internationa for flights at l Airport.

“We produce a lot of interesting would fit in items that the manufactur ing sector,” said See BROOKINGS,

OF

Into the cloud

cr bj

Volume 18, No.

MONEY

Cloud tech helps companies increase revenue and cut costs.

PAGE 14

poleto Festival USA, which closed its 36th annual smorgasbord of opera, music, dance, theater and jazz in Charleston on June 10 with zydeco and fireworks at Middleton Place, has inspired and informed newer arts festivals around the country but faces funding problems of its own.

For the second straight year, organizers had to dip into reserve funds to balance the budget after state grants were axed. Last year, they used more than $500,000 from the reserve. This year, they took $137,500 from reserves to put toward the festival’s $6.4 million budget, said festival spokeswoman Paula Edwards.

The reserve money can be tapped only one more year before it’s gone, she said.

“Clearly, we’ve got to find a way of surviving,” said Nigel Redden, festival general director. “We have been nimble in how we have changed the funding model.”

The festival’s income comes from ticket sales, corporate foundations, government, individual donors and benefits like its gala and auction, Redden said. Recently, the festival has had to rely more on individual and corporate donors, benefits and ticket sales, and less on government. With one exception — 2008, the first year without state support — the festival has been in the black every year since 1996, Edwards said.

For years, Spoleto Festival USA has been a financial and programming model for startup festivals elsewhere, Redden said.

“These festivals are an economic engine,” he said. “They bring positive interest to a place. They bring interesting and interested and often well-heeled visitors … The key piece of advice I give to everyone is that an arts festival has to reflect the place. There is no generic festival.”

in manufacturin g report

ExEcutiV summary

A Brookings Institution E

he Lowcountry report shows ton region had the Charlesgrowth nationwiderecorded the most the in manufactur the manufacting nation’s fastest job growth jobs for in ing sector from 2010 to a Brookings the last two years, according through 2011.

Institution report, workers than found manufactur the national ing employees which also average.

“I bet more money than the national here earn are really there are some people out manufacturing there who surprised,” said average and plants here employee more dent and CEO of the Lewis Gossett, presifacturers Association South Carolina Manu. “It’s a great industrial

Page 9

2012 Profiles in Business

A guide to selected businesses serving the Charleston region.

INSIDE

➤

NEWS MAKERS 2012

From the 7.2.12 Issue

Clemson, Zucker announce Lowcountry engineering center

By Matt Tomsic

A

new era of education began in the Lowcountry on the bank of the Cooper River during a sunny, gusty day in June, when Clemson University and Anita Zucker announced plans for the Zucker Family Graduate Education Center.

The education center fills a gap identified by business and education leaders, and it creates the means to locally develop an engineering workforce capable of working in advanced materials, power systems and aerospace, among other fields.

The education center will offer advanced degrees in energy systems engineering and will be financed in part by a $5 million gift from the Zucker family. The center will be next to the Clemson University Restoration Institute at the former Navy base and is expected to cost roughly $20 million. University officials hope it will be completed in two years.

“Today, we will be celebrating education at an extraordinary level,” said John Kelly, vice president for economic development at Clemson.

The center will offer master’s and doctorate degrees in energy systems engineering, and its graduates will be prepared for jobs in composite materials, energy systems, advanced computing, microscopy, aerospace and other fields.

Zucker, CEO of The InterTech Group, said the center is a first step to providing upper-level engineering education, and she noted The Citadel has worked hard to provide engineering courses for its students at the undergraduate level.

Now, Zucker said, those graduates can stay in the Lowcountry to receive advanced engineering degrees.

Engineering an advanced workforce

cr bj

otherNewsmakers Bill McCall, the chief operating officer for Santee Cooper, retired this year after spending 41 years at the state-owned utility. McCall, who began as an engineer, sees electricity as opportunity for businesses and families.

Most read story on CharlestonBusiness.com

Posturing, negotiations affecting Boeing S.C.’s first delivery for week of 7.2.12

36 Charleston Regional Business Journal | Newsmakers

NEWS MAKERS 2012

From the 7.16.12 Issue

July. 16 - 29,

2012 • www.charle

Rehab and release: Turtles go from near death to ‘feisty’

Turtle rehab

The Sea Turtle Hospital at the S.C. Aquarium revives ailing turtles and them to the wild. releases Page 4

IN FOCUS:

Mid-year forecast

How does the Lowcountry economy look for the second half of 2012?

Page 9

stonbusines

Billion dollar Me

Delivery delays

s.com

By Lauren Ratcliffe

W

Tug O’

Connections abroad

New chamber hopes connect Netherlands to to S.C. economy.

Page 13

INSIDE

T

List:

editor’sNOTE As one of Charleston’s signature attractions, the S.C. Aquarium continues to find animals that delight and engage young audiences and their families, such as the popular penguins exhibit. This year, it was lemurs.

cr bj

(Photos/Leslie

38 Charleston Regional Business Journal | Newsmakers

a

Inland port to connect Upstate by rail to wate r

S

By Matt Tomsic

mtomsic@sc biznews.com

outh Carolina’s inland port expected to isn’t impact for North Charleston,dueling rail plans officials say though maritime the inland port that connects — a rail yard Greer to the Port of Charleston — could create tribution cluster a disExEcutiVE in the Upstate and SUMMARY grab more containers from the Ports officials plan Interstate 85 corridor to develop a $23.5 for shipment through million inland port Charleston. in Greer, which The S.C. State would use rail to Ports Authority connect Charleston board announced and the Upstate. its plan on July 9 to develop the inland port with Norfolk Southern in Greer. The ports authority its first step took by awarding lion design contract a $1.1 milto Patrick Engineering and its local partner, Port officials expect the entireDavis & Floyd. roughly $23.5 project to cost million and to be completed

........15

...............16

At Work ..........................1 9 People in the News .........21 Business Digest ..............22 Calendar .........................2 2 Viewpoint........................23

At Work

Oculoplastic surgeon sees future for her patients’ vision.

Page 19

Burden)

Most read story on CharlestonBusiness.com

Boeing, Airbus: ‘Two big fish’ in a Southern sea for week of 7.16.12

16 • $2.00

THE QUESTIONS: now and as the What businesses need to ask health care law goes into effect.

➤

See INLAND,

Upfront ............................ .2 In Focus: Mid-Year Economic Forecast .........9

By Lauren Ratcliffe

hey found her trying to lay eggs on Pritchard’s Island. Mama Pritchard — as she came to be known — was wounded in two locations from boat strikes, and her wounds were filled with mud, small animals and dead shells.

Rescuers brought the adult female loggerhead turtle to the Sea Turtle Hospital at the South Carolina Aquarium in 2008, and during her time there, Mama Pritchard became a favorite among staff.

“She was amazing, very into people, very exciting and very feisty,” said Whitney Daniel, a sea turtle biologist.

Daniel became a staff biologist after

Page 6

WHARF

Largest Employers

ficially started, 92 turtles have been released back into the wild.

The entire hospital operates on a $350,000 annual budget, and there is room to care for upwards of 20 turtles at a time, Hughes said.

“On average, it takes $36 per day, per animal to rehabilitate them for release back into the wild,” Hughes said. “Luckily, these are very charismatic animals; they really touch the hearts of many people in our community. We are lucky enough that they will donate to help these animals.”

Volume 18, No.

See MEDICAID,

A lawsuit over permits for terminal could Charleston’s new cruise hinge on one — and whether word — maintenanc e correctly labeledthe U.S. Army Corps of Engineers a project to Pier for a new drive pilings terminal as Page 5 a maintenanc into Union e project.

Software Cos.

interning with the turtle hospital in 2011. She works with Christi Hughes, the lead biologist on staff, to rehabilitate and release turtles that would likely die without treatment.

“Most of our turtles get stranded because of negative human interactions,” Hughes said. “The most challenging part about treating them is just waiting for that improvement in their condition as they have such a slow metabolism that everything really takes a lot of time.”

The average stay for a turtle in the hospital is about eight months. Some stay as long as two years.

Since 2000, when the aquarium opened and the turtle hospital unof-

dicaid dilemm

lratcliffe@scb lina, it’s more iznews.com than 500,000 low-income a decision over whether hen the U.S. uninsured people be made SPECIAL REPORT: should upheld health Supreme Court whether eligible for Medicaid.

HEALTH CARE It’s also about THE ISSUE: care reform, $500 million RULING Should S.C. expand states a choice: it gave to $2.6 billion gram providing or not. expand Medicaid spent and how.

Medicaid, the should be insurance to prolow-income residents?

The Affordable That choice Care Act initially THE BENCHMARK: legislators in will now be debated among dated that if states man- as a percentage Medicaid eligibility did not expand every state. is measured of the federal For South CaroMedicaid poverty limit.

Boeing’s delivery of a 787 to Air India is hampered by negotiations .

Page 3

Page 14

➤

NEWS MAKERS 2012

From the 7.30.12 Issue

July 30 - Aug.

12, 2012 • www.charle

stonbusines

s.com

YOUR HOME, THEIR RULE S Volume 18, No.

Buoy basics

Homeowners lack recourse in HOA foreclosures

Researchers use buoys and sensors to study the Savannah River.

Page 6

s file hundreds

of foreclosures

Priority projects

Charleston Harbor deepening expedited by Obama.

Page 5

Homeowners associations are increasingly foreclosures as a using — sometimes tool to get money from homeowners for as little as $332 in unpaid Without any regulations dues. to govern the some property associations owners hundreds of thousands are losing an asset worth , for pennies on PAGE 8 the dollar.

Health in transition

Insurance exchanges raise questions, create opportuniies for business Page 12

Businesswomen honored by peers for impacting business, community.

Page 14

SPECIAL REPORT

PGA Champions hip warns of ‘pira te’ offers Photo/Leslie

Compost man

Company hauls food waste from businesses, restaurants.

Page 21

C

Burden

By Lauren Ratcliffe lratcliffe@scb iznews.com

ExEcutiVE

summary ompanies not As the start of affiliated with the PGA are offering the PGA third-party companiesChampionship nears, some hospitality packages the 2012 PGA have been aggressively soliciting off-site Championship for Kiawah Island hospitality packages. on next month, cern by tournament leading to organizers that con- they’re buying. businesses could some be confused “They are under about what the assumption they are buying that what is a legitimate package,” PGA

Hospitality sales “I have to tell manager Jeanne Jamme said. them ‘You don’t with us.” have anything Companies ing as “pirate” that PGA officials are labelages that on the are offering hospitality packevent-sponsoredsurface seem similar to official packages.

INSIDE

Upfront ........................... ..2 Economics Column ........28 In Focus: Clean, Green & People in the News .........29 Sustainable Business ...21 Business Digest ..............30 List: Recycling Co. ........25 Calendar .........................3 At Work ..........................2 0 7 Viewpoint........................31

By Matt Tomsic

See PGA, Page

10

➤

At Work

Restaurateur with nine Lowcountry locations started business with $50,000 and faith.

Page 27

Homeowners associations in Charleston County have filed hundreds of foreclosures during the past two decades for unpaid dues; meanwhile, no government regulates the foreclosure process used by associations.

At a glance MOST Cases Filed BY ASSOCIATION

38 23 21 21 20

Woodhill Place Homeowners Association Inc. Ashleytowne Village Horizontal Property Regime Simmons Pointe Homeowners Association Inc. Dunes West Property Owners Association Riverway Homeowners Association Inc.

Cases filed since 1993

SPECIAL REPORT

Your home, their rules

L

owcountry homeowners associations have filed hundreds of foreclosures since 1993 in Charleston County for unpaid dues and assessments — some for as little as $332 — according to an analysis of the filings by the Charleston Regional Business Journal.

While the majority of cases are dismissed or settled, homeowners associations have legally foreclosed on a handful of homes and, in some instances, received the property’s title during the public sale by using the debt owed instead of actual cash.

No government agency oversees, licenses or collects data about homeowners associations, and state law provides the framework for associations to foreclose on its homeowners to recover unpaid dues and assessments.

Homeowners associations risk losing amenities and insurance coverage when homeowners don’t pay their dues, and foreclosure lawsuits can be an effective tool to recover unpaid dues. Homeowners stake their homes and risk losing an asset worth tens — if not hundreds — of thousands of dollars over a few sentences included in closing documents.

Since 1993, Charleston County homeowners associations have filed roughly 630 foreclosures for unpaid dues, with 63% of the cases filed after 2000.

Of those 400 cases filed after 2000, 47 homeowners owed less than $1,000 when the foreclosure was filed; 101 homeowners owed between $1,000 and $2,000.

In total, 68% of homeowners received foreclosure summons for less than $5,000 in unpaid dues and assessments. cr bj

editor’sNOTE Homeowners associations face a delicate balancing act when providing amenities for owners and enforcing covenants. When homeowners don’t pay, the community risks losing its common elements, and homeowners who fall behind risk losing their homes.

Average DUES owed at foreclosure filing Woodhill Place Homeowners Association Inc. Ashleytowne Village Horizontal Property Regime Simmons Pointe Homeowners Association Inc. Dunes West Property Owners Association Riverway Homeowners Association Inc.

$60,969

40 Charleston Regional Business Journal | Newsmakers

$3,200 $7,700 $18,700 $2,800 $4,900

Average debt owed for cases since 1996

Most amount owed

filed by Bristol Condominium Property Owners Association Inc.

$311

Least amount owed

filed by Paddock Pointe Homeowners Association Inc.

Most read story on CharlestonBusiness.com

Big golf starts to descend on Lowcountry for week of 7.30.12

17 • $2.00

for unpaid dues

NEWS MAKERS 2012

From the 8.13.12 Issue

August 13 -

26, 2012 • www.charle

STEM industry inspires next generation

stonbusines

SPECIAL REPORT

Back to busines

World Trade Center Charleston relaunches, presents new leader.

Page 4

s

s.com

Your home, their

Politics blocking the rules

By Matt Tomsic

Volume 18, No.

path of HOA over sight bill

T

See HOA, Page

Health care

B

jobs

More insurance means more demand for primary care.

Page 12

Honoring va creati

Low-cost option

Meeting Street Academy breaks private school model with lower costs.

Page 10

lor

ng a lan dm

By Lauren Ratcliff

ark

e lratcliffe@sc Photo/Leslie Burden Authority revealed biznews.com of Honor museum plans to move that Medal oe Hager remembers museum honoring and construct a separate the feeling 2007 when the those military Medal of Honor he got in The opened aboard museum years plan, which was releasedheroes. of study, includes after two “I got tears in the USS Yorktown. witnessing the my eyes,” he said, recalling portion of the remaining construction on a exhibit in the 36 acres of its for the first time. hull of the ship veloped property. undeConstruction On Aug. 1 the of a stand-alone Patriots Point landside Development

J

See Valor,

INSIDE

Page 8 ➤

By Lauren Ratcliff e lratcliffe@sc biznews.com

y the end of the PGA Champions visitors had hip, pumped millions lars into of dolhow the region the Charleston economy; but izes on the capitalexposure from the tournamen t could determine ExEcutiVE how many more Summary are gained over millions The professional the next several years. golf tournament

Projections by the was projected to College of Charles- make a $92.2 milton’s Office lion impact on of ism Analysis Tour- Charleston-a the in rea estimated the 2011 economy. weeklong tournament could bring in $92.2 million to the Charleston-area Final numbers economy. for the impact ment are still of the tournabeing 50,000 out-of-town calculated, but more than visitors were visit Kiawah expected to Island.

More than 209,000 tickets the tournamen were sold for t, and the College ton estimated of Charlesthat were purchased more than half of all tickets by people living out of the triSee PGA, Page

Upfront ......................... ....2 In Focus: Education & Workforce Development .9 Lists: Postgraduate Degree Programs Printing Cos.

..........14

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At Work ......................... .17 Economics Column ........18 People in the News .........19 Business Digest ..............22 Calendar .........................

22 Viewpoint........................2 3

At Work

Rosella McGilsky uses goat milk to develop her retail products.

Page 17

Current from a plasma ball lights a small LED bulb during a day camp at the College of Charleston, where educators, engineers and scientists showed eighth- and ninth-grade girls opportunities that exist in science, technology, engineering and math, or STEM. (Photo/Leslie Burden)

C

College of Charleston in August to introduce young women to the opportunity presented by careers in science, technology, engineering and math.

He said about half of the employees at SPAWAR are women, but only 15% are engaged in technical and engineering work. Several of those women were on hand for the day camp to talk to the girls and perform demonstrations.

The camp was presented by SPAWAR and supported by the College of Charleston, The Citadel and Charleston Southern University along with several

editor’sNOTE When Rebecca Ufkes, the president of UEC Electronics, opened the day camp, she told the girls what she told her daughter: Get through the first two years of engineering school, and then the fun begins, including self-reliance and good-paying jobs.

companies, including Bosch and Boeing. The daylong event featured handson demonstrations of the kind of work engineers do at the participating organizations.

Lauren Wolf, an aerospace engineer with Boeing, told a group of students about her experience working all over the world with the world’s largest aircraft manufacturer.

When asked about mathematics, she said it’s important to have a foundation in math, but, like many of the scientists at the day camp, she said it’s bigger than that and engineers often find themselves

figuring out how to do something that’s never been done before by trying and learning from what doesn’t work.

“If you don’t like math and science, don’t worry,” Wolf told the group of girls.

“You’ll be going out and solving problems.”

Wolf said scientists and engineers often have to consider how something will be used and must incorporate that into their design, which makes art part of the process for some kinds of engineering.

“There are so many ways you can touch people’s lives,” she said. cr bj

Most read story on CharlestonBusiness.com

Air India could receive 787s in August for week of 8.13.12

42 Charleston Regional Business Journal | Newsmakers

6

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Economic boon of PGA Champions hip could last for years

Next-gen STEM

Day camp shows opportunities for women in science, technology, engineering and math.

Page 9

By Andy Owens

hris Miller, executive director of the Space and Naval Warfare Systems Center Atlantic in North Charleston, said the defense industry and other commercial companies that rely on engineers have difficulty filling jobs and suffer from a lack of women entering the field.

“We’re one of the largest technical employers in the state,” Miller told the room full of eighth- and ninth-grade girls and their parents. “The idea here is really to get out and engage and inspire some of our young ladies.”

Miller attended a day camp at the

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mtomsic@scbiznews.co their board positions m ing down residents for personal gain, shouthe letters and Jackson’s bill, holding financial during meetings and emails started introduced with- stalled, in 2005. arriving documents. dying in committee more than once, They sent their Residents across letters and emails each year.

Jackson reintroduce Sen. Darrell upset with d the S.C. their homeownethe state were to provide Jackson, who introducedto state ers Association and board members, rs association Act in DecemberHomeownoversight for a bill introducing s ciations homeowne which were 2010 after against their the and to give filing liens homes without homeowners rs asso- then, stakeholderact two years earlier.

Since an appeals notice, using process — other than updated version s have traded drafts, but filing a lawsuit disagreements an hasn’t been introduced — for with their association . s.

5

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NEWS MAKERS 2012

From the 8.27.12 Issue

Aug. 27 - Sept.

9, 2012 • www.charle

PGA extras

You ate how many dogs at the PGA? hot Page 3

PGA Championship: Orchestrating an opportunity

HOA laws

Nonprofit rules govern homeowners associations in S.C. Page 7

stonbusines

s.com

Maritime com mission

By Matt Tomsic

Volume 18, No.

VICTORY!

S.C. on Mars

Palmetto State’s contribution to Curiosity.

Page 18

Rory McIlroy

Paying for planes

SPECIAL PULLOUT

PHOTO

SECTION | PAgE 16

clinched victory with an eight-strok PGA Champions e win at the 2012 hip on Kiawah Island. The tournament also was an opportunity weeklong the Lowcountry to showcase , recruit show that Charleston new business and has the capabilities orchestrate a to world-class event.

Page 4 Photo/Leslie Burden

INSIDE Upfront ......................... ....2 In Focus:Aerospac e .....11 Lists: Aerospace Cos. ...21 Charleston-area

By Lauren Ratcliffe

See MARITIME,

Airports .........................

23 S.C. Airports ..................23

By Lauren Ratcliff e lratcliffe@sc biznews.com

See OYSTER At Work ......................... .25 Economics Column ........26 People in the News .........27 Business Digest ..............30 Calendar .........................

30 Viewpoint........................3 1

O

2012 PGA Championship director Brett Sterba said.

The PGA sold 30,000 daily tickets and gained 154 hours of live television coverage to 200 countries and territories and 580 million households. Twenty-seven hospitality suites also hosted national and international executives.

Putting together a complicated event on a relatively remote golf course provided interesting logistical challenges, including construction of temporary hospitality structures, traffic and trans-

editor’sNOTE Business Journal photographer, Leslie Burden, got this shot of Tiger Woods giving a young fan an autograph after she read Woods plays his practice rounds early; Burden arrived at the Ocean Course that day before dawn.

portation, food service and coordination of local, national and international media.

Corporate hospitality was around the 17th hole and the 18th fairway. Typically, hospitality tents are not located within view of the players — they are normally individual tents set apart from the action.

Promoting Charleston through the tournament extended beyond the experience of the island. The Charleston Area Convention and Visitors Bureau

POINT, Page

Most read story on CharlestonBusiness.com

Boeing to improve efficiency at S.C. plant for week of 8.27.12

44 Charleston Regional Business Journal | Newsmakers

8

MARKET FACTS

The latest data on sectors that move the the Lowcountry economy.

INSIDE

decided to feed members of the press in their hotel late at night.

“They are going to be writing about the golf, but they are going to be writing about Charleston, too,” said Helen Hill, executive director of the visitors bureau. cr bj

Page 9

he town of Mount Pleasant is ing as town officials struggle expanding growth balancwith resident concerns. desires and “One thing that is occurring in the Mount Pleasant town of ExECuTIVE mendous activity,is treSummAry struction activity,” conEric DeMoura, said Mount Pleasant town administrator.

“There is voted to annex a lot of interest, about 600 acres to desire and demand control the developto be here.”

Property ment of a controowners within the town can versial 593-home develop their subdivision. ties, but fringeproperpresent a challengetracts and an opportunit y for Oyster Point, the town. ed at the end a proposed subdivision locatof outside town Six Mile Road, currently limits, but a sits by the Town first-reading Council on Aug. vote property passed 14 and DeMoura to annex the said council

Rory McIlroy claimed victory at the 2012 PGA Championship on Kiawah Island. The weeklong tournament was an opportunity to showcase the Lowcountry to a global audience. (Photos/Leslie Burden, Lauren Ratcliffe)

rganizers for the 2012 PGA Championship knew that the chance to host golf ’s best competitors and showcase South Carolina as a premier destination for golfers, vacationers and business owners was unlike any they’d experienced in more than a decade.

“I think that any time you host a major championship like this in your area, the lasting impact isn’t just the seven days of the tournament, it’s the international exposure for the event,”

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Expansion not simple for Mt. Pleasant

T

GEnx engines

Malfunction of 787 engine not expected to hurt production.

Page 20

Options vary for Boeing customers looking for a jet.

Page 11

playing defens e

mtomsic@scbiznews.co nah Harbor m Expansion Project igniting a backlash in November, he Savannah from the maritime lawsuit and filed River mission, which an injunction comsion has waded Maritime Commisagainst a group

by DHEC when argued it had been bypassed in charge of developing lawsuits across into courtrooms and it approved a bi-state port per County. commission the state as in Jasdefensive strategy filed administrathe permit. The part of a “As to protect its mandate, commissio interests and challenges to the permit tive and legal going this emerges, there’s all kinds of expansion project. on,” said Dean and the harbor DHEC approved n members said.

Moss, chairman things Attorneys maritime commissio mission who permits for of the the Savanargued points for the com- ities, n. the (Army Corps’)“There’s Georgia activSupreme Court before the state have asked to activities, the enter a federal activi-

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➤

NEWS MAKERS 2012

From the 9.10.12 Issue

Sept 10 - 23,

2012 • www.charle

Homeowners stuck between developer, HOA

stonbusines

s.com

Health reform regu lations changing insurance mod els Volume 18, No.

Changing hands

Iconic Summervill e inn sold again.

Page 4

Port report

Port of Charleston boosts cargo in 2012.

Page 5

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SPECIAL REPORT

On the ropes

Kickboxing trainer get city’s support can’t convert Hampton to stables into gym. Park Page 6

lratcliffe@sc

e

biznews.com

Your home, their

rules

Renovations

Marsh Winds

monthly

Assessments

biznews.com

A way of Life

Photo/Leslie Burden

INSIDE

2010

S

Firms.......32

The Six Mile Gullah Geechee community is part of the Cultural Heritage Many of the Corridor. families dants of enslaved living there were descenAfricans and carry on the

At Work ......................... .35 Economics Column ........36 People in the News .........37 Business Digest ..............38 Calendar .........................

Viewpoint........................338 9

See OYSTER,

cr bj

For more homeowner associations stories, see www.charlestonbusiness.com/hoa.

$6,000

$4,000

In 2010, Marsh Winds owners saw their monthly assessments skyrocket into the thousands of dollars during the first half of the year.

Special, critical and reserve assessments drove the increases.

$2,000

$670 Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Source: Records filed at the Charleston County Clerk of Court

otherNewsmakers The residents of Six Mile in Mount Pleasant argued a new development off Rifle Range Road would change everything about their community and snarl traffic on the two-lane road.

Most read story on CharlestonBusiness.com

Discount airline to fly nonstop to Charleston in 2013 for week of 9.10.12

46 Charleston Regional Business Journal | Newsmakers

Page 8

At Work

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Restoration On King hopes to reshape timeshare model for homes.

Page 35

tion Specialists Inc. and several other developers, who built the condos in the early 2000s.

Assessments skyrocketed, hitting more than $7,000 a month for three months in 2010 as the board tried to fix the issues listed in the lawsuit.

The Marsh Winds case hasn’t been decided, and neither the developers nor their attorneys would comment because the case is pending.

Legal and business experts said a transition from developer-run associations to resident-run associations can put residents in a bind if they find lacking reserves and monthly assessments that don’t cover costs. Associations can be forced to raise monthly assessments — sometimes by thousands of dollars — to correct problems, to litigate lawsuits and to bolster the association’s bank accounts.

$7,800

Page 12

By Lauren Ratcliff e lratcliffe@sc

ix Mile is a quiet community lies that live there have had . The famiSix Mile Road land along get to their homes, for generations, and to use the intersectionthe community’s residents of Rifle Range Mile roads. and Six Right now, there’s not much the small number trouble for of people living a developme there. But nt up for approval of Mount Pleasant in could change the town of this peaceful the nature community hundred car trips through and add several the neighborho daily. od “It will change everything,” Porcha Bailem, said Marylin looks Six Mile a resident whose house overRoad.

Gaillard Center renovations to culminate years of planning.

Page 15

Upfront ......................... ....2 In Focus:

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See MEDICAL,

Page 10

Architecture, Engineering, Construction (AEC) .......15 List: Engineering Firms. 30 Commercial Property Management

n April 2003, Tom Chorlton loaded his furniture and books into the biggest truck he could find and moved east to Folly Beach.

His thousands of books overloaded the truck by 7,000 pounds, and movers stored them in Missouri, Chorlton’s prior home state.

He remembers wishing they would have left the furniture and just brought the books.

At the time, he was writing and researching a book about America’s government between 1774 and 1789, the period before President George Washington’s inauguration.

“I thought this is the perfect place to write a book about the Revolution,” Chorlton said of his condominium in Marsh Winds. “Every morning this was the eighteenth century.”

In 2003, the developer controlled the owners association board and set the monthly fees. After the developer handed over control for the two-building, 33-unit complex, residents said they found a host of construction and financial issues, according to a lawsuit filed in Charleston County by Marsh Winds Owners Association and two homeowners against Bushy’s LLC, Founda-

providing healthcare in what is Medical Loss called the Ratio or MLR. Insurance companies must of all premium dollars collected spend 85% group plans from large on health care coverage. The ratios mean fixed companies like Healthcare and Cigna, United refund money BlueCross BlueShield have to to spend enough their customers if they don’t on coverage.

Jim Deyling, president of BlueCross

Oyster Point sparks debate on traffic snar ls

‘My only regret’

By Matt Tomsic

20 • $2.00

By Lauren Ratcliff

nsurance providers ExEcutiVE Summar are facing y fixed profit Regulatory changes nearlymargins because shift role of benefits sions included of and providers brokers in the Affordable proviunder Affordable Act, and the Care Act. Care effects are shaping operate and how they pay independe agents selling nt insurance their ing to use enough Major insuranceproducts. premium dollars age. The carriers have issued rebates on coveralready spend law requires insurance to their customers companies to 80% of all after failfrom individual premium dollars collected and small group plans on

➤

NEWS MAKERS 2012

From the 9.24.12 Issue

Sept. 24, - Oct.

7, 2012 • www.charle

Oyster dread

East Cooper developmen t approved despite traffic concerns.

Page 6

Labor dispute

Dockworkers, ocean carriers negotiate new contract.

Page 13

Commerce park attracts marquee manufacturers

Biotech taxes

Makers of medical devices face new tax.

Page 17

stonbusines

s.com

Restaurateur expa nding

By James T.

Hammond

operation to Colu mbia Volume 18, No.

JETBLUE

See SUCCESS,

Mark Clark

IN CHARLESTON

The discount airline to provide nonstop plans service between the Charleston market and Boston and New York City starting early next year.

Page 14

Boeing award

Boeing S.C. wins manufacturing state award.

Page 18

A growing park

Upfront .......................... ...2

By Matt Tomsic

In Focus:

Manufacturing

..............17

List:

F

By Lauren Ratcliff e lratcliffe@sc biznews.com

or months, Charleston County tors and officials legislahad been touting lic support for the completion pubMark Clark of Expressway while environmenthe and resident groups in opposition tal the support claimed wasn’t really there.

But on Sept.

10, when the Department of Transportat South Carolina results of a public opinion ion released the completion of survey about the the of support they project, they had the proof said was there all along.

“The result of the SCDOT conducted by the University scientific survey, showed overwhelmi of South Carolina, tion of I-526 and ng support for the compleconfirms not other elected only what I and officials have also confirms been saying my but ing with residents personal experience in talkCharleston Mayor throughout our community, ” Joseph Riley said.

The 5,000-home survey revealed residents were 72% of native G, the in favor of completing Alterpreferred route. a lower-speed Alternative G parkway with is a bike lane and

Bushy Park Industrial Complex draws interest from bigger projects.

Page 20

Manufacturers ..............23 At Work ..........................

27

See 526, Page Economics Column ........28 People in the News .........29 Business Digest ..............30 Calendar .........................3 0

Viewpoint........................3

1

Event Plannin g Guide

The latest go-to guide for event planners in the Charleston area.

INSIDE

I

Kevin Hennick, an employee of the Boeing Co., leads a tour of students from Joseph Pye Elementary at the company’s Interiors Responsibility Center in Palmetto Commerce Park. (Photo/Leslie Burden)

anchor tenant: Western Star Trucks.

“It was an all-out sales effort to get Western Star to come out here,” Dykes said, adding representatives flew to British Columbia for a hard sale in front of the company’s board.

After landing its anchor, Pattillo Industrial Real Estate got involved in the park as a general contractor and developer.

“We started having discussion about trying to bring (our) expertise to bear,” said Larry Callahan, CEO of Pattillo, adding the company had experience

with industrial development and has built a thousand industrial buildings with 70 million square feet of space.

“They needed a focus on industrial activities, and they wanted to help move the land.”

Since its inception, Palmetto Commerce Park and the businesses located there have evolved.

The anchor tenant, Western Star, was acquired by Freightliner, and the plant was empty for a year until Freightliner replaced Western Star’s operations with another of its subsidiaries, American

editor’sNOTE otherNewsmakers No one in South Carolina really ever thought the Jasper Port was a good idea. The only side JetBlue announced plans to provide nonstop of the Savannah River. Georgia Gov. Nathan Deal — awesome name for a governor — also flights from Charleston International Airport to flew in to ask for Haley’s help.

Boston and New York City starting in early 2013.

• The discount carrier is the second — behind • Southwest — to begin service in the • Lowcountry.

LaFrance. The company built fire trucks until 2005, when Daimler took over the facility to assemble Sprinter vans.

Elsewhere in the park, Boeing opened its Interiors Responsibility Center, and other businesses moved in.

At the park, Callahan said, Daimler owns land across from GE, which is next door to Boeing, which is around the corner from Cummins.

“That is as good a collection of highquality, first-class industrial buildings and first-class customers as you’ll see anywhere,” he said. cr br

Most read story on CharlestonBusiness.com

SCDOT unanimously votes not to sponsor I-526 project for week of 9.24.12

48 Charleston Regional Business Journal | Newsmakers

Page 8

LANDS frodebmateovefarr

INSIDE

n the 1990s, Steve Dykes and others stood by their car, looking at a map spread over its hood while trying to sell prospects on the Palmetto Commerce Park — an undeveloped forest that stretched for acres.

“I liked to say we had some of the sexiest woods in the Southeast,” said Dykes, the director of economic development for Charleston County. “But they were still woods. You’re basically asking somebody to buy into a dream, a vision. Selling a vision is far more difficult than selling a reality.”

More than a decade later, those undeveloped acres have been carved into 15 facilities, many of them manufacturers such as Boeing, GE and Shimano.

In 1983, Michael Robinson of Charleston Appraisal Service approached Frank Brumley, a developer, about acquiring a parcel of land being sold in North Charleston, Brumley said.

They organized a group of investors and bought the property. By 1993, Brumley, Robinson and the other buyers had purchased the last acres of what would become Palmetto Commerce Park.

Dykes said the tracts of land were perfect for a regional deficiency of class A business space. The area needed business parks that could accommodate 50 or more acres.

“This was not (a) 100% pure publicprivate venture,” Dykes said. “It was more of a case of government coming in and doing what government does best, which is create infrastructure.”

In 1996, Charleston County won a road construction grant for Palmetto Commerce Parkway and raised matching funds. Then, the county, Brumley and Charleston Regional Development Alliance marketed the park to prospects.

In 1998, the developers attracted its

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jhammond@ Indigo Road scbiznews.co m Restaurant Group locations in operates four teve Palmer downtown Charleston, The grew to love the Oak to Oak Table, at 1221 Main the restaurant Steakhouse, O-Ku, the business while St. in Columbia, Cocktail Club replicate the serving up high-end Macintosh. success and the erties, sine at Magnolia’s cuiboth with the of his Charleston prop“The restaurant when he was ness student food and the a busi- for at the College “I’ll be right hospitality. me,” he said. business seemed a natural of Charleston.

“I’ve always “People you,” he said. there at the door saying thank making people enjoyed entertaining people, ence, and I love deliveringgo out for an experihappy,” said The opening that experience.”

This month, Palmer, whose of The Oak Table rant, but not Palmer opened a new restau- tember continues in a string of food late Sepin Charleston.

Palmer expects and bev-

S

12

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➤

NEWS MAKERS 2012

From the 10.8.12 Issue

October 8 -

21, 2012 • www.charle

H

S.C. elicits high tax from manufactur rate ers.

Page 4

IOP supermarket forced to close by Jan. 31

stonbusines

s.com

Trade conferen ce attracts mar itime,

Health care reform

Industry leaders discuss the Affordable Care Act. Page 5

Contract extension

Dockworkers, ocean carriers agree to 90-day extension, avoid October strike.

Page 8

Health hot spots

State tries to target counties with poor health.

Page 14

By Matt Tomsic

Volume 17, No.

business leaders

RED WH & BLUES ITE The Red & White supermarket on is going out of Isle of Palms business Moseley, the store’s on Jan. 31. Wayne owner, said he excluded from negotiations when was and Moseley’s The Beach Co. landlord, Pastime Amusement Co., planned to demolish and rebuild shopping center. the Page 6

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Economic assets

(Photo/Leslie

See TRADE,

Burden)

INSIDE Upfront ......................... ....2 In Focus: Regional Economic Assets ..........19 Lists: Moving and Storage .....24 Employee Benefit Brokers .............25

By Lauren Ratcliff e lratcliffe@sc biznews.com

At Work ......................... .27 Economics Column ........28 People in the News .........29 Business Digest ..............30 Calendar .........................

Viewpoint........................330 1

2012 Econom ic Scorecard

See 526, Page

Read an analysis the Charleston of region compared to similar markets.

INSIDE

H

The Red & White supermarket will close on Jan. 31 when its lease expires. The landlord plans to tear the building down and rebuild it, bringing in a major supermarket chain. (Photos/Leslie Burden)

the shelving rusted and in disrepair.

For five months, the store could not open. Mayor Dick Cronin recalled how quickly the Red & White reopened and how vital it was for the community.

“He was there, and he opened up as soon as possible after Hugo and everybody remembers that as being a huge part of the revival of the island,” he said.

Beginning in December, Moseley will begin discounting

otherNewsmakers The renovated Charleston City Market received a Phoenix Award from the Society of American Travel Writers in 2012. The award honors communities that enhance travel experiences through conservation, preservation and beautification efforts.

inventory to liquidate his store. He’s already entered into an agreement with an auction company in Atlanta to help him sell the heavy fixtures and shelving units.

Moseley said he plans to hold an open-house party to thank the community on Nov. 16, just before he starts the process of packing things up. He said knowing his run as a store owner is coming to an end has been difficult.

“Losing your business is sort of like losing your family

member,” he said. “It is a life-changing event.”

Leonard Way said rebuilding the shopping center while retaining the Red & White wasn’t an option because of financing.

“As nice as it would have been to have had the Red & White, it financially wasn’t feasible,” Way said. cr bj

Most read story on CharlestonBusiness.com

Machinists union mass-mails Boeing S.C. employees for week of 10.8.12

50 Charleston Regional Business Journal | Newsmakers

Page 10

SCDOT votes not to sponsor I-526 project

he extension of the Mark Expressway Clark is not dead, but it’s back in limbo.

Proponents Charleston Mayorof the project, including the commission Joe Riley, had been hoping would sponsor and move the the project extension of Interstate 526 to becoming closer a reality.

After results survey showed of a DOT-commissioned Alternative G, 72% approval for completing some DOT had enough local leaders believed the information project. to take on the But in a unanimous decision, the sion chose not commisto sponsor the roadway, and instead affirm extension of the governmental the agreement that existing interect managemen would give projt to the DOT ton County decide to move should Charlesextension. forward with the “We look forward to working with ton County,” Charlescommission Adams said. chairman Eddie “We manager of this look forward to being the project.”

The Lowcountry has a diverse set of economic drivers.

Page 19

By Lauren Ratcliffe urricane Hugo couldn’t bring about the demise of the Red & White supermarket, a nofrills store where beach toys and snacks are purchased by tourists, and residents buy their weekly staples.

But the down-home independent grocer that’s anchored the Island Center on Isle of Palms since the 1950s will be demolished and replaced with a large name-brand chain in February 2013.

“We have nothing against Mr. (Wayne) Moseley, but economics are what they are,” said Leonard Way, vice president of asset management at The Beach Co. “We have to have a viable shopping center that makes a return for the company and makes their investment worthwhile.”

The Beach Co. will provide construction oversight when the property owner, The Pastime Amusement Co., demolishes and rebuilds part of the Island Center.

The Red & White was built in 1958.

Since then, the store has been expanded twice and three additional locals have owned it.

Wayne Moseley has owned the store for 28 years.When the Isle of Palms Connector was built in the early 1990s, Moseley remembers the post office sharing space in the shopping center.

But the major overhaul to the island came in 1989 when Hugo ripped through the community and sent four inches of thick mud from the Intracoastal Waterway sloshing into the store, spoiling food and leaving

22 • $2.00

mtomsic@scbiznews.co The conference m 2012, and attendeesmarked its 39th year undreds of in ed by the heard from CEO people spent end of August. the retired half of a week the first mists, of the Panama Canal Authority, econo- deepen the canal, allowingThe expansion will South Carolina of Palms for in September at Isle larger ships across Central customers of State Ports this year’s S.C. to cut national Trade America the S.C. Authority and Interports authority Coast to those larger and opening the East speakers and Conference, which featured CEO Jim Newsome, ships, maritime panels from who briefed leaders everyone on say. maritime officials the port’s operations and business leaders across Aleman said Alberto Aleman through the last year. the country. the Southeast the canal serves Zubieta, the and of the almost every retired CEO route around the world, Panama and the used by shippers expansion projectCanal Authority, said traveling throughmain route the was about 31% the canal complet-

Tax man

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➤

➤

NEWS MAKERS 2012

From the 10.22.12 Issue

October 22 -

November 4,

Boeing delivers first S.C. 787 Dreamliner

2012 • www.charle

stonbusines

s.com

NOW BOARDI Union NG fac Volume 17, No.

Culinary quests

s first 787 Dreaml iner made in the Lowcou ntry to Air India.

Page 8

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Revitalizing America

Conference series business leaders brings to Charleston.

Page 12

Lowcountry banks

See uniOn,

Tomsic

mtomsic@scbiznews.co m undreds packed in to an over-airconditioned banquet hall on the Isle of Palms the Boeing Co., to hear executives from America discussBMW and Michelin North bringing businesses South Carolina. to

H

INSIDE

By Matt Tomsic

See Manufactu

ring, Page

Upfront .........................

In Focus:

Professionals

....2

................28

At Work ......................... .33 Economics Column ........34 People in the News .........35 Business Digest ..............38 Calendar .........................

38 Viewpoint........................3 9

WHAT’S NEXT?

ENERGIZED looks next generation at in nuclear energy.

INSIDE

year companywide, which are a mix of 747s and 787s.

Program delays, engine issues

Officials with the Boeing Co. and Air India celebrate the delivery of the first Lowcountry-built 787 Dreamliner, which Boeing South Carolina delivered in October. (Photo/Leslie Burden)

a long partnership with the Charleston facility,” Unni said, adding its next five or six 787s will be built by North Charleston workers.

Jones said the delivery brings Boeing South Carolina full circle. Workers finished building the first 787, pilots

editor’sNOTE Despite delays some argued were caused by Air India, Boeing South Carolina delivered the first Lowcountry-built 787 Dreamliner in October, bookending a year that saw the company’s last two milestones accomplished.

flew it and now Air India accepted it.

The company is focused on increasing its rate, but Jones didn’t say how many Dreamliners North Charleston could finish by the end of the year, though he did say the facility is on pace to support the total projection of 75 deliveries this

Unni and Dinesh Keskar, senior vice president of Asia Pacific and India Sales for Boeing Commercial Airplanes, addressed the delays Air India faced for its 787 deliveries and the impact of issues with the GEnx engines that are mounted on the Dreamliners.

The delays came in part because of the approval process Air India went through as a government-owned airline, Keskar said. The airline had to take the compensation package, which hasn’t been disclosed, to the upper levels of the Indian government for approval.

“We were patient,” Keskar said, adding the bottom line is Air India is taking all of its 787 orders and if a business is impatient in that country, it will come back with nothing.

Boeing South Carolina officials expected to deliver its first 787 by the end of June, but a month passed while Air India and Boeing negotiated a compensation package for the 787 program’s delays.

Adam Pilarski, senior vice president of aviation consulting firm Avitas, attributed the delay to Air India.

“The airline is kind of notorious for being mismanaged for decades,” Pilarski said, adding Air India is government-owned and “heavily influenced” by politics. The airline is trying to use the 787 program’s delay in deliveries as leverage, he said.

Some of Air India’s demands — like reports of a $1 billion payment from Boeing — are childish, he said.

“And I think that it’s action by government bureaucrats (who) do not realize how the real world works,” Pilarski said. cr bj

Most read story on CharlestonBusiness.com

NLRB: Boeing S.C. violated labor laws for week of 10.22.12

52 Charleston Regional Business Journal | Newsmakers

Page 16

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Manufacturers push against stereotypes

By Matt

Area banks expand market share.

Page 20

S.C. Deals

A quarterly report of mergers and acquisitions.

Page 24

Financial Services ........19 List: Credit Unions ........27 Firms with LEED Accredited

E

By Matt Tomsic

mtomsic@scbiznews.co m he Internation al Associatio Machinists n of and Aerospace faces several hurdles if it Workers try to organize decides to Carolina, and employees at Boeing South either decision — to organize the or not to organizeunion makes tremendous — will have symbolic “The Machinists importance. are just potential of organizing the examining the South Carolina,” Boeing plant of trial relations said Gary Chaison, an indusprofessor for “The workers Clark University. have to make whether or not they want a decision about by the union, to knowing full be represented of their mind well in the back that Boeing Carolina so they wouldn’t moved to South have to deal unionized workforce.” with a The examinatio Machinists union n began Oct. 16, when the hosted a meeting for Boeing

South African exports jump

S.C. exports to South Africa rose by 77.5% from 2010 to 2011.

Page 10

Photo/Leslie Burden

ric Swanson has been with the first Lowcountry-built Dreamliner from its partial assembly in the mid-body plant to the flight line.

“It’s exciting to see it come from power-off all the way through the final assembly,” Swanson said, standing in the business class section of the first locally built 787 on Oct. 5 during its delivery to Air India. “It was fantastic.”

With a few signatures, officials with the Boeing Co. delivered the first 787 built outside Puget Sound in decades — and the first wide-body aircraft ever delivered outside Puget Sound by Boeing — to Air India at the company’s North Charleston Delivery Center. Outside, they cut a ribbon with oversized scissors and gave tours of the airplane, which seats about 250 passengers.

“To the Boeing South Carolina team, what a phenomenal, phenomenal execution on what had to be done,” said Jack Jones, general manager and vice president of Boeing South Carolina.

“History is when you do it for the first time.”

K.M. Unni, COO of Air India and a board member, said the two 787s already in service are getting positive reviews and the plane will be a part of the airline’s business plan.

Its range will make new routes viable, and Air India plans to begin 787 service to London, Frankfurt and Paris by midmonth. The Dreamliner could also open routes from India to Australia.

Years ago, Unni said he received the contract for Air India’s Dreamliners, and he immediately opened it to find he would receive his new airplanes from somewhere other than Puget Sound. He was concerned at first, but those concerns eased through discussions with Boeing.

“We’re beginning the foundation of

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es hurdles in Charleston

Boeing deliver

Restaurateurs entering Charleston F&B market.

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NEWS MAKERS 2012

From the 11.5.12 Issue

November 5

- 18, 2012 •

Veterans face tough transition to workforce

www.charle

stonbusines

s.com

House flipper

Teach the Need

Training program prepares high-schoo lers for restaurant jobs.

Page 4

Union targets Boeing S.C.

By Lauren Ratcliff

s buy, resell tox

E, Page 12

S

Offshore energy

Rede

ploying a Vetera n WOrKF OrCe

When veterans across the country home, they face a host of hurdles and in South Carolina return nearly 20% jobless to employmen Iraq — that state rate for women who served t — including a governments in Afghanista Page 20 and schools n and are trying to address.

Photo/Leslie Burden

INSIDE

By Matt Tomsic

Upfront ......................... ....2 In Focus: Defense Industry ..........15 List: Commercial Multiperil Insurance Cos ...............24 Defense Contractors .....25

By Matt Tomsic

mtomsic@scbiznews.co m

ince 2002, venture capital firms invested in have 34 South Carolina. companies located in Nationally, together roughly 37,000 deals firms put same period. during the In the Palmetto State, those ments totaled 34 invest$364 million, statistics compiled according to Capital Association by the National Venture oopers. Nationwide and PricewaterhouseC, venture capital totaled $264 deals billion.

“There’s very little venture ity in South Carolina,” said capital activexecutive director Harry Huntley, nomic Developme for the S.C. Jobs-Econt Authority.

Startups in South Carolina obstacles to face several reach venture capital firms draw them to and the state. But the tech and life sciences sectors Lowcountry’s attracting lots — two fields attract more of attention — could help venture capital.

“It is tougher because there (in South Carolina), partly aren’t a lot of domicile venture capital funds in the Southeast,” Mumma of said Mitch Intersouth Partners, which See VC, Page

At Work ......................... .27 Business Digest ..............27 Economics Column ........28 People in the News .........29 Calendar .........................

Viewpoint........................330 1

Inside

Sgt. James Brantley helps a customer at ATP Gunshop and Range.

(Photo/Leslie Burden)

Unemployment for 18- to 24-yearold men returning from Iraq and Afghanistan peaked in 2011 at 29.1%, and those rates for all Iraq and Afghanistan veterans hit about 12% that year.

The government calls veterans who serve after Sept. 11 Gulf War II veterans.

In 2011, South Carolina veterans faced an unemployment rate of 13.2%.

Now, male veterans have seen their unemployment rates fall, but women leaving the military are seeing a spike.

According to the Bureau of Labor Statistics, 9.7% of Gulf War II veterans were unemployed in September, com-

otherNewsmakers After 30 years in the Army, retired Col. Dave McNeil opened his own business that designs, installs and maintains solar energy systems. His business, Hannah Solar Government Services, lets him use his electrical engineering experience, and business has grown since its start.

pared to an overall unemployment rate of 7.8%. Male veterans who served in Iraq and Afghanistan had an unemployment rate of 8%, while women who served in those wars had an unemployment rate of 19.9%, nearly triple the unemployment rate for all women older than 20 in September.

Veterans returning from Iraq and Afghanistan face several hurdles to well-paying employment, and some of those hurdles drive disparities between veteran and civilian employment.

The state Department of Employment and Workforce has a division devoted to helping military veterans find work, said Herbert Fielding, a veterans representative at the department who served in the Navy as an airplane mechanic during the Vietnam War. “It’s been bad,” he said. “It’s been very bad, but it’s gotten much better now.” cr bj

Most read story on CharlestonBusiness.com

S.C. Supreme Court ruling nullifies Savannah River permit for week of 11.5.12

54 Charleston Regional Business Journal | Newsmakers

10

Your guide to philanthropic groups, activities and award winners in the Charleston area.

S

gt. James Brantley spent his first days back from Iraq surprising people who didn’t realize he was home.

Brantley, a Marine reservist called into active duty, arrived to the Lowcountry the day before Halloween in 2008 following his first deployment, and after his surprise visits, he began looking for work.

Brantley started with jobs he wanted, but days stretched into weeks, and, desperate, Brantley applied wherever he could, looking for anything to pay the bills.

After a month, he landed a security job, the same work — base and gate security — he performed while on duty in Iraq.

“I was pretty much filling out everything,” Brantley said. “It’s frustrating, it really is. You come back from being so mission oriented and getting your job done every day and trying to keep yourself sane from all the stress. You expect you’ve got pretty good credentials. It shouldn’t be too terribly difficult.

“It was tough to get a decent-paying job anywhere, trying to keep yourself on your feet, trying not to burn through my savings.”

Reservists and active duty military face a host of challenges after returning from deployments to Iraq and Afghanistan.

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Venture capital often invests outside of S.C.

Politicians, academics study offshore energy plans for the coast.

Page 9

A grave warning

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Machinists union holds informational meetings Lowcountry workers. for Page 6

State of the

Port The S.C. State Ports Authority faces opportunities, challenges.

Page 8

Lowcountry leaders warn of sequestrati potential effects. on’s Page 15

Volume 17, No.

ic assets

e lratcliffe@sc they didn’t receive biznews.com a set of keys. even receive They didn’t their title immediatel locksmith’s said as he looked drill Dawn bought y. Chris and around the he changes the bites into a door as the property the duplex. first auction sale deadbolt on at the Charlestonat a foreclosure appliances “This is a win, especially floor of entrance of a duplex in the front house.

County Courtif those work.” while Chris Park West and With a dozen When they their new condo.Dawn Marquez wait to dead cockroache stepped enter pair s scattered breathed a sigh inside the condo, the on the living room floor When the of relief. It looked scurrying about couple bought and living ones the property, good pick, they said. in like a the Marquezes wereother parts of the house, “This could have been a thankful there lot worse,” Chris was no

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NEWS MAKERS 2012

From the 11.19.12 Issue

November 19

- December

8

Charleston serves as brick-and-mortar test market

2, 2012 • www.charle

stonbusines

s.com

Emerging State cour t decision revo

By Matt Tomsic kes Savannah companies

Emerging Eight

Eight businesses break into the Lowcountry .

Page 16

Managing revenues

Hotels find inspiration from airlines.

Page 8

Volume 17, No.

Burns The Retail Flame

Got poles?

Orangeburg biz ships utility poles to Sandyravaged Northeast.

Page 9

MVP Group Internation al, a home fragrance company, opened a flagship store in Charleston to take advantage

of the city’s retail traffic to serve as a and test market for Colonial Candle’s growing product line. Full story Page 12

High-rise decision

State Supreme Court OKs high-rise hotel near Marion Square.

Page 14

Still

Colonial Candle at the company’smanager Cassie Simmons arranges inventory flagship store.

(Photo/Les lie Burden)

See SUPREME

O

By Lauren Ratcliffe

n Oct. 31, Gov. Nikki Haley reporters for briefed a third a week, updating time in less than cyberattack on them the S.C. Departmen about the and the theft t of Review of security numbers social other confidential and ExEcutiVE information from SummARy 3.8 million people and 657,000 Cybersecurity businesses. experts say busiHaley and other state nesses and governofficials still had few ment frequently details about the and investigator hack, face cybersecurity going through s were threats. a records, looking batch of for stolen information “It could take . was in the batch,”months for us to find out who Haley said, adding the news conference: later in “I know answers than that; I just don’t you want more have them.”

The attack thrusts cybersecurity, and national at the state level, nating the battles into the spotlight, illumiand that affect that rage daily in cyberspace private citizens government, industry and who aren’t prepared attention to the or paying risks.

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Accounting Firms ..........23 Executive Recruiters .....23

At Work ..........................

27 Economics Column ........28 People in the News .........29 Business Digest ..............30 Calendar .........................3 0

Viewpoint........................3

At Work

Quintin Middleton creates high-deman d culinary tools.

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Cassie Simmons, store manager for Colonial Candle, helps a customer at the company’s store on Meeting Street in Charleston. (Photo/Leslie Burden)

same way,” he said.

The company’s website lists 95 retail locations in addition to their flagship store in South Carolina.

In 1909, Colonial Candle was created by a schoolteacher in Cape Cod, Mass.

Mabel Kimball Baker dipped tapered candles in bayberry scents to create her scented candles.

Today, her company is a subsidiary and brand of MVP Group International and rounds out the conglomerate’s products.

“One area of market share that MVP did not have directly was in the branded candle space,” Propes said. “We feel

otherNewsmakers St. Stephen bladesmith Quintin Middleton of Middleton Made Knives creates works of culinary art for some of the world’s most famous chefs. He said God led him to pursue kitchen cutlery, and chef Craig Deihl helped him refine his technique.

the market is ready for something that is unique, competitive and differentiated. Colonial Candle fit all of our criteria.”

Soon after locating in Charleston, a team began revamping the entire brand.

The group retained Colonial’s patented oval shape for glass-enclosed candles.

“It was a great product and a great history that had run into a bit of an identity crisis,” Sturm said. “We redesigned the labels; we had new photographs on every label. We tweaked the logo, changed the packaging.

“We touched everything and redesigned the whole line.”

The decision to open a brick-andmortar location in downtown Charleston came because the company wanted to test new fragrances in a controlled way before releasing them to their retailers and because MVP Group was already headquartered in the city.

“We are fortunate that our corporate headquarters is in Charleston, South Carolina,” Propes said. “It gives us a broad and diverse consumer base to research our product against.” cr bj

Most read story on CharlestonBusiness.com

Six companies submit proposals to develop Charleston’s Horizon Project for week of 11.19.12

56 Charleston Regional Business Journal | Newsmakers

10

By Matt Tomsic

mtomsic@sc biznews.com

See CYBERATTAC

Upfront ..........................

In Focus: Eight Emerging Companies Lists:

COURT, Page

Businesses, governments wage cyberwar

INSIDE

olonial Candle opened its flagship store in Charlestonthis year to establish the only physical storefront selling just Colonial Candle products.

The candle maker was acquired by MVP Group International, a Charleston-based holding company specializing in home fragrance products, in 2011. MVP opened the flagship store across the street from the city market to brand the product and understand more about their customers’ interactions with their products, something that’s difficult to do online.

Prior to the flagship store, the candles had been sold in independent retailers and online, but there was no way to compare and smell every candle in the company’s line.

“The store is about two things,” said Troy Propes, president of MVP Group International. “It’s about consumer research, and it’s about branding.”

The store’s sleek lines, oval shapes, silver and white fixtures and paint provide a clean background for more than 100 candle scents. Candles are arranged by color with special sections set aside for wedding candles and thematic lines.

“The fixtures we have are fixtures we had already designed for our showrooms,” said Beth Sturm, director of brand development for Colonial Candle. “We base everything on the oval.

We want people to know that when they see an oval-shaped candle, it’s Colonial.”

Propes said he loves the feel of the store, and the use of the oval shape to define their products.

“It allows us to portray the vision of the brand in the way we see it so that other retailers can set up their stores the

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River permit

mtomsic@sc Expansion biznews.com Project without South Carolina a project to deepen conservationistspermit that The Army Army Corps the Savannah argue the Corps, meanwhile, faces another River deepening of Engineers must hurdle thanks is lookobtain before ing for ways to begin the the river to Supreme to an S.C. project permit and has asked Congress without the a water permit Court decision that nullified undid a much-malig 47 feet. The ruling also from the requiremen ned agreement for a waiver last November the deepening. issued by South Carolina struck by the Georgia t. for ity and Ports Author- run” — as one attorney Despite that “end the Army The decision described Coastal Conservatio left the Savannah S.C. Departmen Corps of Engineers with n League and it — the the ties to t of Health and Harbor tal the state Supreme other parControl.

Environmen Court case say the

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NEWS MAKERS 2012

From the 12.3.12 Issue

December 3

- 16, 2012 •

Army Corps begins harbor deepening study

www.charle

stonbusines

s.com

Thurmond, Holli ngs warned of Sava nnah

How Zumalt changed North Charleston

North Charleston police chief to retire after cutting crime over past decade.

Page 10

Revenue shift

By Matt Tomsic

University expansion

Charleston Southern breaks ground on new facilities.

Page 15

Big project partnerships

Mashburn Constructio n transitions with changing landscape.

Page 16

County council might let city complete I-526

e

T

Studying a deep

er

The Army Corps of Engineers awarded of digging into Charleston Harbor’s several contracts to begin the complex other characteris muddy floor work to analyze sediments tics that might be affected by , wildlife and deepening the Photo/Leslie harbor. PAGE Burden 12

Upfront ......................... ......... 2 In Focus: Architecture, Engineering, Construction .....................

15 List: Certified Minority-owned Businesses .........................

31 List: Life Insurance Cos..... 33

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A worker with Anamar Environmental Consulting dumps sediment from Charleston Harbor as part of a U.S. Army Corps of Engineers study into harbor deepening. (Photo/Leslie Burden)

will test the sediment for parts per bil- which will be analyzed by three labs for lion or the equivalent of a teaspoon in different characteristics, said Terence an Olympic-sized swimming pool.

Cake, vice president for Anamar.

Back at the boat ramp, a refriger“They think you’re out here with a ated truck awaits the sample, shovel and grabbing a handful,” Cake

editor’sNOTE Harbor deepening dominated time in Washington and Columbia during 2012 after the deepening study received federal funding at a 2011 ceremony, where the Army Corps of Engineers and S.C. State Ports Authority signed a cost-sharing agreement.

58 Charleston Regional Business Journal | Newsmakers

By Lauren Ratcliff e lratcliffe@sc biznews.com

See 526, Page At Work ......................... ...... 35 Economics Column ............. 36 People in the News ..............

37 Business Digest ................... 38 Calendar .........................

Viewpoint.............................. 38 .... 39

cr bj

Bill Murray, chef Robert Carter open new downtown restaurant for week of 12.3.12

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At Work

Robert Boyle restores raised flooring tiles for data centers onsite.

Page 35

said. “We do this all over the place and people ask what you’re doing, and they see us putting sediment in coolers and icing it down. They have no idea what we do.”

Cake said a lab in Jacksonville, Fla., will test the physical parameters of the sediment — how much silt versus how much sand.

A lab in Washington state will test the chemical makeup — are petroleum or heavy metals present? — and another lab in Washington state will test the sediments’ effects on organisms like clams, shrimp and worms.

Cake said the material has to be tested to ensure the sediment won’t hurt the environment after it’s removed from the harbor and dropped at a disposal site, most likely offshore.

“We do all this to make sure there’s not going to be any environmental degradation,” Cake said.

The studies are early steps of a multiyear process.

Chamberlayne said the Army Corps is working through each study to ensure it doesn’t get ahead of itself and collects the data needed for the design phase of the project, which follows the feasibility study if the project is approved by Congress.

Along with the cost of the project, the results will help determine the effects of dredged material on wildlife. The study will also help determine the locations where dredged material will be disposed and many other factors that could impact the deepening project.

The Army Corps also hopes to finish more quickly than prior studies.

It expects to be done by 2015 instead of the typical five- to eight-year time frame, and the corps hopes to save $5 million from a study’s typical cost of between $18 and $20 million.

Most read story on CharlestonBusiness.com

Lt. Col. Jason Kirk, former commander of the Army Cor ps of Engineers’ Charleston Dis trict, and S.C. State Ports Authority CEO Jim Newsom e

14

he nearly dead discussion over completion the of Interstate 526 received new life Mayor Joe Riley last month when Charleston pass a resolutionpetitioned his city council to asking the county over control to hand of the In a three hour roadway’s construction. council meeting, than 50 community with members speaking more the project, about the council voted resolution to ask Charleston 11-2 to pass a to relinquish ownership of County Council the project and the city finish building the let road.

Proponents there is more and opponents of 526 at stake than say concerns. Opponents alleviating traffic contend the threatens the highway rural islands and want nature of Johns and James existing, local ments to get priority over road improveExpressway. the Mark Clark Proponents contend is needed to alleviate existing the roadway tion and prepare traffic for a continued congespeople to the influx area if road constructiothat won’t stop coming of even n is halted.

INSIDE

By Matt Tomsic earing Army fatigues, Lt. Col. Ed Chamberlayne reaches to a bimini top on an 18-foot boat and steadies himself as wind whips the boat’s passengers and drops the temperature below 40 degrees.

“This is another part where we’re collecting vital information for a study so we can roll that into a recommendation,” Chamberlayne says, referring to the handful of projects that began in 2012 as part of a package of studies to examine the effects of deepening Charleston Harbor beyond 45 feet.

The boat gently rocked; Chamberlayne and Army Corps officials untied lines, preparing to meet a contractor pulling sediment samples from the harbor’s bottom.

The Army Corps of Engineers Charleston District has awarded four contracts worth $1.9 million to begin the study, and contractors are surveying the harbor’s cultural and historical resources and taking benthic samples, sediment samples and environmental samples.

Each study has its own intricacies, and when added together, they show the complex undertaking the Army Corps must complete before deciding whether to recommend the project to Congress.

Chamberlayne’s Army Corps boat throttles from the dock to meet an Anamar Environmental Consulting boat, which had been collecting sediment samples from the harbor.

To collect the samples, the Anamar crew extends stainless steel tubes 59 feet into the harbor, sucks up a sample, raises the tubes back to the boat and then pumps sand, marl, shells and other debris into a cooler.

Workers wear blue surgical gloves to avoid contaminating the sample — labs

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See SHEP, Page

Head of S.C. Department of Revenue resigns wake of security in breach.

Page 5

Supply shortag

Demand booming for skilled tech industry workers in Charleston.

Page 6

Volume 17, No.

River legislatio n

mtomsic@scbiznews.co The delegation m worried the could allow the act’s language U.S. Army ore than a decade A recent state ago, Sen. Strom to bypass South Carolina Corps of Engineers Thurmond and down a South Supreme Court ruling struck laws and oversight it worked Carolina permit as congressional the South Carolina between to deepen the river, granted which is shared the Savannah Harbor delegation were cerned about Georgia and Expansion Project, for cona federal bill SHEP, and the the Palmetto Now, 14 years on South Carolina — and its State.

Army later, South gressional exemption Corps is seeking a or — that would impact Army Corps project to deepen are having the Carolina and the obtain from the requiremenconbegin a the the Savannah same a permit for corps tries to t to River. the project. begin deepeningdebate while ments show Court docu47 feet. the river to the corps has mailed requests

M

➤

NEWS MAKERS 2012

From the 12.17.12 Issue

Rail compromise result of ‘marriage’

December 17

- 30, 2012 •

www.charle

s.com

Volume 18, No.

Mr. Speaker, again

Charleston Republican re-elected speaker of S.C. House.

Page 2

Code Ninjas

Capital discussions

Lenders, businesses attend financial workshop.

Page 11

ExECuTiVE Summar

RAIL

DeMint’s departure

Gov. Haley to fill vacant Senate seat.

Page 5 App programme rs compete in Code-A-Tho n.

Page 9

By Matt Tomsic

mtomsic@scbiznews.co m

n October, y DHEC plans to state publish inspection Maimie’s Adult inspectors arrived 2013, but a lack reports online at in of resources merville after Group Homes in Sumhampers efforts inspect homes to pitalized residents,a diarrheal outbreak and respond to complaints. hossuspension months leading to the facility’s on a curtain In a resident’s before. covering feces splattered room, the inspectors found the toilet. They asked the window behind inside the back the facility’s of a toilet and Karin Reeves, to clean owner, the toilet, scrubbed the feces with a toilet and Reeves brush.

solution

Senior center shift

Baby Boomers demand diverse activities at local centers.

Page 22

The city of North over

Charleston and state of South a rail yard on Carolina ended the former Navy a years-long base with a dispute land swaps settlement that and funding included a payout, for a transporta tion study. Page 6

INSIDE

By Matt Tomsic

Upfront ......................... ....2 In Focus: Retirement and Aging ......................... ....21

List: Retirement

Communities .................26 At Work ......................... .27

B

acked by state leaders, North Charleston Mayor Keith Summey said the city and state smiled, laughed and cursed each other during negotiations that would eventually turn into a settlement approved by City Council and the S.C. Budget and Control Board in early December over the location of an intermodal rail yard.

“It’s been a marriage, but sometimes in marriage we have disagreements,” Summey said, joking his wife was there, and their marriage works because she tells him no.

“I’m working on that Mr. Mayor,” said Bobby Hitt, secretary of the S.C. Department of Commerce, one of the negotiators. But, Hitt said, that tactic isn’t working out for him so far.

Summey, Hitt, Gov. Nikki Haley and others praised the settlement, which calls for a rail yard on Clemson University-owned land and access to the yard through an existing line to the north.

Clemson spokeswoman Cathy Sams said the settlement doesn’t effect the university’s projects — the wind turbine drive-train testing facility, the grid simulator, the Clemson Conservation Center and the Zucker Family Graduate Education Center — that are ongoing in North Charleston.

“Bringing this matter to a close is important to our plans at the Restoration Institute, and we remain committed to working with our partners to build a world-class research campus in North Charleston,” Sams said in an email.

“Clemson recognized the importance

stonbusines

Inspectors susp end Summerville adult home

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RAIL

3

PLAN

1 4

6

N

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S Public Railways property City of North Charleston property City property going to state Clemson-owned property State property coming to city Source: City of North Charleston

1: Officer Housing area 2: North Acerage - Immediate transfer 3: North Acerage - 2017 Transfer 4: DFAS Property 5: Crane Maintenance Building 6: Powerhouse

See HOME, Page

By Matt Tomsic

mtomsic@scbiznews.co m he federal Office of Management and Budget is considering approach a broader that would requireto port deepening projects ports to compete regionally.

The signal ExECuTiVE came in a letter from the office Summary to the Army Corps of Conservation Engineers.

The Corps submittedArmy ists welcomed a regional the approach letter as part of a federal to funding lawsuit over but said its nah Harbor Savan- it should start with Expanongoing projects. sion Project.

The Corps now studiesArmy alternative depths only when preparing a harbor. to deepen “We are interested in continuing sions with you about the relationship discusan analysis of between this kind, which effects of the considers the further developme port and a broader nt of one systems-ba which could inform decisions sed approach, such investment on a series of area,” according s in the same geographic to an Office of Manageme nt

T

Special Section,

Page 13

of a competitive port in South Carolina, and the university supports efforts to improve the region’s infrastructure.”

The settlement also calls for land swaps between the city and state and a payment of $8 million during the next four years. The state also agreed to take responsibility for $6.5 million in city bond debt connected with redevelopment efforts.

The land transfers include the Officer Housing Area north of Shipbuilding Way and nearly 8 acres of land north of Noisette Creek.

By the end of 2017, North Charleston will transfer 14 acres to Public Railways, which will also have an option to take an additional 12 acres near the proposed rail yard.

The transfers include a building on Ninth Street and property west of Noisette Boulevard and north of McMillan Avenue.

Public Railways also has options for the Park South Recreational Facility and Howard Heights.

The city, S.C. Public Railways, S.C. Department of Transportation and S.C. State Ports Authority will also pay for a transportation study that will examine the impacts of rail and port traffic on the city.

“This is leadership at its finest,” said Haley, who traveled to North Charleston for a news conference after the City Council vote. “If you want to work for the people then get them results.” cr bj

Keith Summey, mayor of North Charleston

Most read story on CharlestonBusiness.com

Low

Like it or hate it, the rail settlement provides some stability to the city, its residents and economic development efforts in other parts of the state — all caught in limbo as North Charleston and South Carolina pursued competing, contradictory rail plans.

Defense contract goes to 4 Lowcountry companies

North Charleston Mayor Keith Summey, Commerce Secretary Bobby Hitt >

for week of 12.17.12

60 Charleston Regional Business Journal | Newsmakers

12

HEALTH CARE

HEROES

“It’s been a marriage, but sometimes in marriage, we have disagreements.” editor’sNOTE

24

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Feds consider new method for port deepenin g

See OMB, Page Economics Column ........28 People in the News .........29 Business Digest ..............30 Calendar .........................

30 Viewpoint........................3 1

27 • $2.00

Gloveless, Reeves cleaned stains then grabbed undilutedmost of the poured it into bleach and a pail. The S.C. Health and Environme Department of ntal Control stopped her inspector and ratio of bleach asked how she measures to water. the “I haven’t been measuring according to the inspecotrs it,” Reeves said, notes. “Should I be

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NEWS MAKERS 2012

SPECIAL REPORT

Interstate 526: Long and winding road to approval

By Lauren Ratcliffe

Many government bodies dealt with Interstate 526 during 2012. When Charleston Mayor Joe Riley devised a plan for the city to take over the roadway’s sponsorship, Charleston County Council again discussed the project and voted 5-4 in favor of building the road. (Photo/ Leslie Burden)

A

much-debated and divisive road project came to a resolution this year after Charleston County Council rejected then reconsidered and eventually approved a plan to move ahead with the completion of Interstate 526.

The roadway’s future was in limbo for much of the year when Charleston County voted to send the project back to the state and relinquish sponsorship.

In August, the project received an additional $138 million in approved funding from the S.C. Transportation Infrastructure Bank, bringing the total cost of the road’s completion to $558 million.

For much of the year, the S.C. Department of Transportation did not

talk about the roadway, and it didn’t appear monthly meeting agendas. In September after a survey commissioned by the department showed more than 70% popular support for the project, the S.C. DOT voted not to take over sponsorship, sending the roadway’s completion back to the county.

All members of County Council had been opposed to the state’s preferred alternative – Alternative G – a lowspeed parkway with signaled intersections. More members expressed desires for higher speeds.

Grassroots groups for and against the project spoke out at County Council meetings, with opponents arguing that

editor’sNOTE As the S.C. Department of Transportation put pressure on Charleston to do something on Interstate 526, the multitude of public hearings and council meetings brought out many anti-526 protesters, who became known as “Nixers.”

62 Charleston Regional Business Journal | Newsmakers

lives would be adversely impacted and that the road was too costly. Proponents highlighted a savings in commute time and a need for transportation solutions to meet the growing population in the area.

Charleston County Council appeared unlikely to discuss the matter until Charleston Mayor Joe Riley unveiled a plan in which the city would take over sponsorship of the project.

Charleston City Council approved the idea in November, and that decision ignited a firestorm of emails and calls to the members of County Council.

In December, the city of Charleston, opposition groups, S.C. DOT and

county staff briefed Charleston County Council with its options regarding the project. Nix526 argued against the road, saying families would be harmed and a culture would be at-risk if the highway were to be completed from West Ashley to Johns and James islands.

On Dec. 12, the project received a green light when County Council voted 5-4 to approve Alternative G and move ahead with the permitting, design and financing efforts.

In the coming year, plans for the roadway will undergo permitting processes through the Environmental Protection Agency and the Army Corps of Engineers. cr bj

Most read story on CharlestonBusiness.com

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SCDOT unanimously votes not to sponsor I-526 projec

NEWS MAKERS