May - June 2013 Edition

M ay / J u n e 2 0 1 3 Vol. 34 No.3

MANUFACTURING POWERHOUSE Fix the Debt Military and Manufacturing Match-up Transportation Distribution and Logistics Cox Industries Mar-Mac Wire

Welcome, Frontier®.

Before the first call came in.

Before the first worker sat comfortably at his desk.

Before the lights came on for the first time.

Santee Cooper partnered with Frontier Communications to bring their new call center to Horry County, creating more than 180 new jobs.

By partnering our low-cost, reliable power and development opportunities with our state’s attractive tax base, relocation incentives, and an unparalleled quality of life graced with Southern hospitality, Santee Cooper helped Frontier expand in South Carolina. And continues to power South Carolina toward Brighter Tomorrows, Today.

POWERING S.C. www.scprimesite.com

sonoco’s home for

114

years

$1 billion in economic impact 9,300 jobs created $473 million in extra income

One great place to call home As former Sonoco CEO Charlie Coker said, “People build businesses.” Thanks to the hardworking people of Hartsville, as well as thousands more around the state, we have been able to do just that. We are proud to have created 9,300 jobs throughout the state, generating $473 million in additional income for South Carolina workers at a wage that is 35% above the overall state average. We are also proud to have called the Palmetto state home for 114 years.

9,300 jobs 1 North Second Street, Hartsville, SC 29550 • 843/383-7000 • sonoco.com

contents F E A T U R E S

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Transportation Distribution and Logistics..................12

by Deepal Eliatamby

Military and Manufacturing Match-up.......................14

by Dana W. Todd

14

by Jean Cecil Frick

OTIS RAWL

& C ommunications DARRELL SCOTT

MEMBER SPOTLIGHT

by Jean Cecil Frick

Let’s fix the debt • Pete Selleck............................................................ 6 Business and education work together to manufacture success • Jim Mullen........................................................................................ 7 South Carolina benefits from global economy • Nancy McLernon........ 7 New coalition formed to protect manufacturers from IP and IT theft • Brian Raymond.................................................................................. 8 G overnment S potlight DHEC running more efficiently • Katie Schanz.................................. 10

D E PA RT M E N T S Business Briefs.................................... 4 After the Event 3rd Annual Manufacturers Conference..................................... 24

of C ommunications

M ulti M edia M anager JEAN CECIL FRICK

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ECONOMIC DRIVERS

Message from the President............. 3 Otis Rawl

A ssociate V ice P resident JULIE SCOTT

I am S.C. Business..........................................................................32

22

P resident & C hief E xecutive O fficer

V ice P resident of P ublic P olicy

Mar-Mac Celebrates 60 Years of Manufacturing.....22

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South Carolina Chamber of Commerce 1301 Gervais Street, Suite 1100 Columbia, South Carolina 29201 800.799.4601 www . scchamber . net

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Cox Industries A Noble Tree Man...............................................................16

May/June 2013 Volume 34, Number 3

SOUTH CAROLINA BUSINESS MAGAZINE E ditor JEAN CECIL FRICK A rt D irection & D esign TIM MCKEEVER / TMCA INC. P roduction & P rint C oordination TMCA INC. P ublished by CONVERGING MEDIA LLC A dvertising S ales CONVERGING MEDIA LLC DEIDRE MACKLEN 803.318.3923

Member News.................................. 30 Welcome, New Members................ 30 Advertiser Index............................... 31

2012 Manufacturer of the Year Award: Cytec.......................... 25 Washington Night in South Carolina................................ 26 STATE CHAMBER with Distinction

The opinions and views expressed by the contributors to this publication do not necessarily reflect the opinions and views of the South Carolina Chamber of Commerce, its staff or members.

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Copyright © 2013 by Converging Media LLC and the South Carolina Chamber of Commerce. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for the South Carolina Chamber of Commerce by Converging Media LLC. 803.256.3010

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anufacturing is growing and thriving in South Carolina. More than 16 percent of the state’s workforce is employed by one of the state’s 5,000+ manufacturing firms. The state’s 2012 exports totaled nearly $25.3 billion in goods sold to 197 countries around the world. Furthermore, South Carolina recently ranked first in attracting jobs through foreign investment, according to an analysis by IBM-Plant Location International (IBM-PLI). The state’s Transportation, Distribution and Logistics (TDL) sector has grown by more than 2,000 jobs and generated almost $370 million in capital over the last two years. South Carolina is indeed becoming a powerhouse of manufacturing.

We have talked a great deal about infrastructure needs this legislative session, and it is of course critical to manufacturing companies across the Palmetto State who transport goods, whether across the Southeast or through the state’s ports. The General Assembly must be proactive in addressing infrastructure needs, much like legislators were last year when they dedicated $300 million to the harbor deepening project. The House has included more than $100 million in its budget, and we ask the Senate to follow suit with a recurring, significant investment in its budget. Members from both sides of the aisle have also offered other proposals - all good news for the state’s manufacturing industry. While there is no silver bullet to address infrastructure, we must look at a combination of proposals, many of which were included in the business community’s Road Map to the Future.

As I travel South Carolina, there is nothing I hear of greater importance to manufacturers – and all employers – than an educated and skilled workforce. As baby-boomers like me think about retiring, there will be an even greater need for employees at manufacturing companies across South Carolina. The South Carolina Chamber’s Manufacturers Steering Committee has deep concerns about the availability of skilled workers to fill these jobs. Without a well-prepared workforce, the manufacturing renaissance will slow considerably.

The Chamber has developed a coalition with the South Carolina Manufacturers Alliance and South Carolina Economic Developers’ Association to address workforce deficiencies. Last summer, this group, along with the technical college system, decided to pursue the Manufacturing Skills Standard Council (MSSC) certification statewide, a nationally recognized program developed by the National Association of Manufacturers. The MSSC certificate is based upon industry-defined standards and offers both entry-level and incumbent workers the opportunity to demonstrate that they have acquired the skills increasingly needed for the technology-intensive jobs of the 21st century.

The MSSC certification is commonly identified as the best workforce certificate for entry level manufacturing employees.

While the business community has requested $6.5 million in funding this year to launch the program, the House included $2.5 million in its budget. The Chamber and allied organizations have met with Senate leaders in the hopes of receiving the full funding request as the Senate considers the budget.

With many skilled jobs currently available but a limited supply of workers adequately trained to match these jobs, the MSSC will help existing manufacturers find and retain the talent they need to thrive in the global marketplace.

In this edition of South Carolina Business, we hear from one of our state’s leading manufacturers about the importance of fixing the national debt. The campaign to Fix the Debt is a broad coalition of business leaders, current and former policymakers, Republicans and Democrats, budget experts, economists and voters across the country working to put America on a better fiscal and economic path. We also invite you to get to know Mikee Johnson of Cox Industries, a company started in 1952 that today is a leader in manufacturing wood products. Johnson is truly committed to workforce development in this state, currently chairing the state’s Workforce Investment Board. Additionally, we take a closer look at intellectual property rights and patent protection, how our state’s Regional Education Centers are partnering with businesses, the TDL industry in South Carolina and how manufacturers are hiring veterans.

For every manufacturing job created, there are spinoff jobs, capital investment and competitive wages. With all of the issues facing our state and nation, manufacturing is a truly bright spot for South Carolina.

FROM THE PRESIDENT

A manufacturing powerhouse

Otis Rawl is president and chief executive officer of the South Carolina Chamber of Commerce.

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 3 | S o u t h C a r o l i n a B u s i n e ss |

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BUSINESS BRIEFS

Sonoco contributes $1 billion to S.C. economy

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recent study by the USC Moore School of Business found that packaging giant Sonoco, globally headquartered in Hartsville, contributes more than $1 billion a year to South Carolina’s economy, creating nearly 9,300 jobs and generating more than $473 million in income for South Carolinians. This total economic impact is associated with a statewide employment multiplier of approximately 1.9 and a labor income multiplier of 2.3.

On April 1, M. Jack Sanders took over as Sonoco’s president and chief executive officer following his election by the company’s board of directors. Sanders, 59, succeeds Harris E. DeLoach, Jr., who retired as CEO after a 27-year career with the company.

DeLoach, 68, remains Sonoco’s executive chairman of the board.

10th Annual Palmetto Regional FIRST Robotics Competition

T

he tenth annual Palmetto Regional FIRST Robotics Competition was held in Myrtle Beach. The competition is a three-day event showcasing robots developed and operated by dozens of high school teams from all over the world.

The FIRST Robotics Competition is a multinational event that teams professionals and young people together to solve an engineering design problem in an intense and competitive way. Each year, the competition reaches more than 58,000 students on over 2,500 teams in competitions held across the U.S. and in other parts of the world.

The competition shows students that the technological fields hold many opportunities and that the basic concepts of science, math, engineering and invention are exciting and interesting. Randy Bradley, vice president for administrative services at the South Carolina Chamber of Commerce, has been a judge of the competition for six years.

KOE adds a new 15” TFT display to its Lite+ lineup

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OE Americas, headquartered in Greenville, announced the addition of a new high performance 15” TFT to its lineup of Lite+ LCD display modules. The new unit is a high-bright, transmissive mode display with XGA (1024 x 768 pixels) resolution.

Like the other displays in the Lite+ line, the new 15” model relies on KOE’s patented technologies and dedicated manufacturing facilities to deliver superior performance at an affordable price.

The new 15.0” Lite+ TFT display module is supplied through KOE Americas distribution partners and is available across North, Central and South America.

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240 Architecture announced the largest sustainable development under construction in South Carolina, named ONE Greenville.

“4240’s creativity has resulted in an iconic building that will be the new image of Greenville,” says developer Bob Hughes. Also known as Project ONE, it will be a 400,000-square-foot hub for education, banking, law offices, retail and restaurants.

The development is targeting LEED-Gold certification from the United States Green Building Council (USGBC). Among other measures, the project’s 36-kW solar array will provide onsite power generation, and its green roof will prevent storm-water runoff, absorb heat and save energy.

For CertusBank, Project ONE’s largest tenant, 4240 is designing a corporate urban campus, with executive and administrative offices and a state-of-the-art learning and development center. Project ONE will also house Clemson University’s 70,000-square-foot Graduate School of Business. The tenant list will be rounded out by unique restaurants, retailers and the law offices of Haynsworth Sinkler Boyd, P.A.

BUSINESS BRIEFS

Largest green development in South Carolina announced

South Carolina Tire Manufacturers’ Council (SCTMC)

T

he South Carolina Chamber of Commerce recently chartered the South Carolina Tire Manufacturers’ Council (SCTMC). The council’s mission is to evaluate and propose policies relating to the manufacture of tires and tire components in South Carolina and to represent the interests and promote the benefits of the state’s tire manufacturers. Initial membership includes representatives from Michelin, Bridgestone and Continental. Steve Evered of Michelin is the council chair.

Boeing plans $1 billion expansion in S.C.

S

ince 2009, Boeing has invested more than $1 billion in land, facilities, infrastructure and tooling in South Carolina, and today has more than 6,000 teammates working at the Boeing sites in the state. With unprecedented demand for commercial airplanes -- including a forecast of another 34,000 airplanes required over the next 20 years --Boeing is positioned for significant and sustained growth in the years ahead.

In April 2013, Boeing committed to create 2,000 new jobs and invest in excess of an additional $1 billion in South Carolina over the next eight years as part of an overall plan to capture market growth and deliver on commitments to customers and other stakeholders.

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ECONOMIC DRIVERS

Let’s fıx the debt B y P ete S elleck

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t Michelin North America, our workforce is and it is crucial that these types of discussions continue. focused on creating a better way forward for Also promising is the fact that Congress passed a consumers, businesses and society as a whole. Continuing Resolution to the end of 2013, and both the When it comes to our national debt, Americans are still House and Senate have approved budget resolutions. waiting for our elected leaders to provide a better way Another step forward is the latest proposal from forward for our country and put an end to the current former Republican Senator Alan Simpson and former govern-by-crisis approach.

Democratic Presidential Chief of Staff Erskine Bowles. In The fiscal drama that is plaguing the United States their ongoing effort to provide solutions to this complex has, unfortunately, become what we expect from our problem, their new bipartisan plan outlines a savings government. Between the of $2.4 trillion over the next New Year’s Day deal that 10 years and is focused on narrowly averted the “fiscal stabilizing and reducing the cliff” and the blame-game debt as a share of GDP while rhetoric that ushered us into going after the real drivers sequestration, Washington of our debt – unsustainable has decided to govern by entitlement programs and drifting from one stalemate an inefficient tax code. to the next. And while the As a member of the bickering continues, our Campaign to Fix the Debt, national debt continues to we commend the new grow. framework put forward A recently issued report

by Senator Simpson and from the Congressional Mr. Bowles, and any other Budget Office (CBO) paints plan – regardless of political a picture of America being affiliation – that seeks to swallowed whole by its better the economic position debt in the near future. of the country.

According to the report, debt The long-term as a percentage of GDP is on projections are grim if we course to reach 79 percent by continue down our current 2023; exceed 100 percent in path of deficit-reduction the early 2030s; and hit everpolicies. The virtual acrossincreasing levels thereafter. the-board spending cuts of It doesn’t have to be this the current sequestration way. plan were designed to be As a nation full of so drastic that no one would innovators and risk takers, we ever let them take effect, are capable of much better yet they have. We need a than the partisan battles that more targeted and gradual have become an impediment approach that responsibly to progress. We need fresh reduces spending from the ideas and a new approach areas of the budget that to tackle our fiscal problems actually warrant cutting. and foster a sustainable, In addition to job-creating economy. The sequestration, we face other — Pete Selleck resilience and adaptability of decision points – including Americans can facilitate the the debt ceiling negotiations intelligent and courageous change we desperately need. – that present opportunities for our South Carolina Although Washington has served up one congressional delegation to work together to find disappointment after another to the American people, viable solutions on a comprehensive debt deal. This is we are encouraged by recent positive developments their chance to demonstrate to their constituents that that offer some hope that we can begin addressing our they have the courage to lead and implement actions national debt and steer our country to the path of long- that will give citizens and businesses confidence in our term prosperity. economic outlook.

The recent meetings between President Obama Our country is in need of bold and selfless leadership and Republican Senators are a strong step forward. We now more than ever. Recent economic indicators applaud the leadership demonstrated by the President suggest that the economy continues to recover, but at and U.S. Senator Lindsey Graham in their effort to a very slow rate. Now is exactly the right time to move initiate the start of more meaningful dialogue around forward on a well-conceived, comprehensive plan that a possible deficit-cutting approach. Communication in leads our nation towards a better and more prosperous Washington has been conspicuously absent for too long, future.

Pete Selleck is chairman and president of Michelin North America, Inc.

JAMES STE IDL

Our country is in need of bold and selfless leadership now more than ever. Recent economic indicators suggest that the economy continues to recover, but at a very slow rate. Now is exactly the right time to move forward on a well-conceived, comprehensive plan that leads our nation towards a better and more prosperous future.

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B y J im M ullen

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ince the launch of Personal Pathways to Success nearly eight years ago, 12 Regional Education Centers (RECs), each led by a coordinator and advisory board, have served to connect students and adults to the education resources and career guidance they need to become the employees South Carolina must have to compete and excel in the global economy.

This, along with collaborative efforts among education, business and communities, is helping to create a betterprepared workforce to improve South Carolina’s economy and quality of life.

One school’s partnership with a leading global manufacturer is a prime example.

With a $500,000 investment from Navistar, the world’s largest manufacturer of diesel engines and trucks, Richland School District One’s Heyward Career and Technology Center has developed a three-year diesel technology program to produce topnotch diesel technicians certified through Navistar, Automotive Service Excellence (ASE) and the National Automotive Technicians Education Foundation (NATEF).

One of only four such partnerships nationwide, the program not only addresses the industry’s workforce

need, but also provides students with important career preparation and opportunities.

“Navistar’s investment provides an excellent opportunity for our students,” says Sherry Rivers, principal of Heyward Career and Technology Center. “Upon graduating from the program, a student is qualified and ready to begin an exciting and lucrative career. Because our diesel technology students are well-prepared, business partners are eager to offer them employment as well as opportunities to continue their education.”

The collaboration with Navistar enabled Heyward Career and Technology Center to implement numerous facility renovations. Improvements include state-of-theart equipment, specially trained faculty and curriculum resources to support the program. Nearly 20 students are currently enrolled, acquiring valuable technical knowledge and workplace experience through a

Hands-on learning is an integral part of the curriculum for Heyward Career and Technology’s diesel technology program.

combination of classroom instruction, hands-on learning, field trips and valuable shadowing and internship experiences.

The district plans to more than double enrollment next year.

Meeting workforce needs and providing important career preparation for Midlands students, the partnership between Navistar and Heyward Career and Technology Center is a win-win, showing how business and education can work together to turn a challenge into an opportunity.

ECONOMIC DRIVERS

Business and education work together to manufacture success

Jim Mullen chairs the Midlands Regional Education Center Advisory Board, which serves Fairfield, Lexington and Richland Counties, and is vice president of Hacker Instruments & Industries, Inc. in Fairfield County.

South Carolina benefits from global economy B y N ancy M c L ernon

“O

utsourcing” is out. “Insourcing” is the latest business buzzword. However, for global companies that have been investing in the United States for decades, insourcing jobs to America is commonplace. And, the narrative is a familiar one for South Carolinians.

Drivers moving down the I-85 corridor into Greenville, South Carolina will pass Michelin and BMW U.S. headquarters. While both companies have global roots, they have been growing in South Carolina’s soil for years, directly employing thousands in the state.

These two facilities are just the beginning of the insourcing story on how global companies have transformed South Carolina into an advanced manufacturing hub.

South Carolina has proven to be an attractive location for global companies, including Bridgestone, Flextronics, Daimler and Novartis. Vans, tires, pharmaceuticals and computers are part of the range of products global companies manufacture in South Carolina.

The local impact of a foreign company investing in a state is a key component of economic growth. Foreign investment is highly concentrated in the manufacturing sector. Last year, half of all foreign investment in the U.S. went into manufacturing operations here, about $83.4

billion. For every one manufacturing job at a foreign company, five additional jobs are supported throughout the economy. That can be a game changer for the local workforce.

The global companies investing in South Carolina also support good jobs. According to the latest government statistics, over 104,000 jobs have been insourced to the state – about seven percent of the state’s private sector workforce. Sixty thousand of those jobs are in South Carolina’s manufacturing sector. These jobs are high-skill, high-paying ones. U.S. workers at global companies earn an annual average salary of $77,409 - more than 36 percent higher than the economy-wide average.

Further, the U.S. operations of global companies are manufacturing here not only to serve U.S. consumers,

but also to produce goods and services to sell around the world.

For example, Michelin’s Greenville facility will be building large Earthmover tires, predominately for export. In fact, 80 percent of the South Carolina-built Earthmover tires will ship to customers around the world.

The competition to recruit such companies can be intense. But, South Carolina has fared well, ranking 16th in the country for the amount of insourced jobs at global companies. To attract more global investment, the state must ensure that its policies help global companies succeed long after their initial investment. Rules and regulations need to provide a level playing field for these companies as compared to home grown firms. Bottomline? Globally engaged companies want to do business in locations that embrace globalization.

Foreign investment is important to the domestic economy, manufacturing and jobs. The benefits foreign investment has brought to South Carolina underscore the role of the global economy in helping to support a U.S. manufacturing sector that is competitive, innovative and vibrant.

Nancy McLernon is president and CEO of the Organization for International Investment.

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ECONOMIC DRIVER 8

New coalition formed to protect manufacturers from IP and IT theft B y B rian R aymond

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t’s hard to open a newspaper today without finding a story about the importance of manufacturing to America’s economy. South Carolina’s manufacturing industry, with 216,200 employees and 4,127 firms, plays a critical role in sustaining the state’s economy.

Manufacturers in South Carolina and the United States as a whole continue to grow but have the potential to contribute even more to our nation’s economic success.

The National Association of Manufacturers (NAM) has released a Growth Agenda focused on driving pro-growth policies to create a more competitive business environment in the United States. It outlines four goals to make America more attractive to investors and exporters and to develop and showcase our worldclass talent. It also calls for policies that would make manufacturers in the United States the world’s leading innovators.

For manufacturers in the United States to continue as world leaders in innovation, policymakers must address a core competitive issue: the theft of intellectual property (IP) and information technology (IT). The use of stolen IT and pirated software by competitors around the world illegally lowers their costs and enables them to compete unfairly against manufacturers in the United States. This significant theft amounts to more than $63 billion a year in commercial value alone, according to a 2010 BSA| The Software Alliance study.

In fact, the same study reported that almost 42 percent of the world’s software was obtained illegally last year.

This IT theft has a serious ripple effect on state economies, translating into fewer jobs, decreased tax revenue and reduced economic growth. IT and software provide critical efficiencies required to compete in manufacturing today. Companies that conduct IT theft—usually found in emerging markets—are creating an uneven playing field and in many cases breaking the law. Just as we do not tolerate manufacturers engaging in illegal practices to gain an unfair competitive edge, we should not permit the use of stolen IT to stifle competition.

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Policymakers and organizations are beginning to pay more attention to unfair competition issues affecting the manufacturing industry and its IP. The NAM has recently joined the National Alliance for Jobs and Innovation (NAJI), a newly formed alliance of manufacturers and technology companies with the goal of inhibiting unfair competition resulting from IT theft. Concerned businesses and industry experts collaborate through this nonpartisan organization to stop unfair competition due to stolen IP, whether it be through piracy, counterfeiting or trade secret theft.

The South Carolina Chamber of Commerce recently joined NAJI, and we’re working together to educate the public and our state and federal officials about unfair competition resulting from IP theft. If you want to learn more about the issue and how to join NAJI, please visit www.naji.org.

By addressing the unfair advantage that results when companies use stolen IP and IT to illegally slash their costs, NAJI hopes to increase awareness and help South Carolina manufacturing continue to drive innovation and the state’s economic resurgence.

Brian Raymond is the director of technology and domestic economic policy at the National Association of Manufacturers and a NAJI advisory board member.

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GOVERNMENT SPOTLIGHT

DHEC running more efficiently B y K atie S chanz

S

ince Catherine B. Templeton’s confirmation to lead the South Carolina Department of Health and Environmental Control (DHEC) in 2012, she has made tremendous strides in transforming the agency to one that all other state agencies should look to for efficiency. Before becoming the director at DHEC, Templeton led the S.C. Department of Labor, Licensing and Regulation and worked in private practice. Her professional history has given her the unique skill set necessary to successfully manage DHEC, one of the largest state agencies in South Carolina.

DHEC is charged with protecting public health, coastal resources and the state’s land, air and water quality. The agency touches many areas from healthcare to monitoring pollution to inspection and regulation of various businesses and activities.

“Government needs to run like a business,” said Director Templeton. And she has begun the process of doing just that, with the implementation of Permit Central, a centralized website for the permitting process, announced last month.

With the announcement of Permit Central, DHEC is taking yet another step towards working effectively with businesses and stakeholders. Permit Central provides private citizens and business owners who

apply for a permit the tools and information necessary in “plain, helpful language.”

Permit Central is designed to engage the permit applicant and DHEC from the beginning to the end of the permitting process.

Permit Central’s goal is to create an open and efficient process that in the past could be a burden on a business or individual looking to operate or expand in South Carolina. Along with an interactive website where prospective permit applicants can gather information Templeton about potential permits, Permit Central will also offer panels of specialists to discuss and guide applicants through the process. A small business team is also an integral part and will consist of a specially trained team designed to understand and find answers to unique challenges faced by small businesses.

Along with Permit Central, Director Templeton has taken steps to review every angle of DHEC. “We have examined this agency from top to bottom in an effort to locate inefficiencies. We’ve found plenty and are taking

steps to fix those issues,” she said.

“The bottom line is this – when this agency isn’t running efficiently, it costs businesses money.”

Economic development is impeded by costing existing businesses more to deal with the burdensome hurdles at DHEC and by prospective businesses locating in other states where permitting hurdles are easier to handle.

“That means those losses are passed on to us or employers choose not to locate in our state at all. Either way, it is a losing proposition for the people and prosperity of this state,” Templeton said. Director Templeton recognizes this dilemma and has been successful in her efforts to improve the communication avenues with businesses and individuals who contribute to the state’s economic prosperity.

Katie King Schanz is legislative counsel for the South Carolina Chamber of Commerce.

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4/18/13 11:04 AM

Transportation distribution and logistics industries collaborate to move South Carolina forward

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id you know that the transportation, distribution and logistics (TDL) industry generates $1.6 billion in wages to roughly 40,000 employees across 2,500 businesses in South Carolina each year?

In fact, the South Carolina Department of Commerce and State Ports Authority recently announced the state’s 2012 exports totaled nearly $25.3 billion in goods sold to 197 countries around the world, according to data from the U.S. Department of Commerce.

These figures represent a 2.23 percent increase over 2011 totals and a record for the state. In 2012, South Carolina’s export growth ranked the state 17th in the U.S. Another major TDL headline of late is that ground has been broken on the new inland port in Greer, S.C., which is set to open September 1 and will dramatically expand and unite the economic ties between the Upstate and Lowcountry, creating greater efficiencies for Upstate businesses getting their goods to market. Positioned at the convergence of an international airport, access to freight trucks, expanded adjacent landuse opportunities, and a neighboring rail system to create a direct link between the Upstate and the Port of Charleston, the inland port is poised to dramatically increase the Palmetto State’s competitiveness as a leader in moving freight. This project will provide market access to more than 94 million consumers within a one-day drive.

These projects and others like them are made possible thanks to collaboration on behalf of the different sectors of the TDL industry, including manufacturing, shipping, rail, trucking, air, logistics and supply chain sectors. Site selectors take all costs into consideration including shipping and supply chain. For example, when Continental Tire

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CA RL DERRICK

B y D eepal E liatamby

TDL Industry Fast Facts: • South Carolina’s TDL industry pays more than $1.6 billion in wages to 40,000 employees across 2,500 businesses.

• From 2006-2010, $1 billion in capital was invested in South Carolina by TDL companies relocating or expanding to the state.

G ETTY I M AG ES

• According to Maersk, the Port of Charleston has North America’s highest productivity and reliability rating.

In order for the state to continue accommodating these major manufacturers and recruit new ones, it’s crucial for the state to bridge infrastructure gaps to further strengthen the TDL industry.

was assessing sites to build a plant in the U.S., Sumter, S.C. made the shortlist and was eventually chosen because of TDL assets including close proximity to the Port of Charleston, interstate highways and rail and quick access to airports. Continental is making a $500 million investment in South Carolina, resulting in the creation of 1,600 new jobs. This economic development success story is thanks to a strong and sustainable TDL network. With expansions of Bridgestone and Michelin, South Carolina is in line to become the No.1 manufacturer of tires by 2015. In order for the state to continue accommodating these major manufacturers and recruit new ones, it’s crucial for the state to bridge infrastructure gaps to further strengthen the TDL industry.

In March, more than 150 leaders from the TDL industry gathered in Columbia with other business, policy and government leaders from across the state for the third annual South Carolina TDL Summit, hosted by New Carolina’s TDL Council, to take a comprehensive look at the state’s infrastructure needs, strategies and latest industry trends.

The TDL Summit provided an open forum where industry leaders shared best practices so that South Carolina can further develop its competitive advantage. In order to attract new economic development and business growth to support the economy, the state must have the TDL capacity and infrastructure to accommodate it. South Carolina Department of Transportation Secretary Robert St. Onge gave an update on the SC Multimodal Transportation Plan, which began in 2012. This 25-year statewide transportation plan emphasizes the importance of linking transportation investment to economic development, with the goal of prioritizing future transportation infrastructure requirements in a manner that supports business growth and job creation. As part of this effort, regional listening sessions, key stakeholder interviews and a statewide freight survey were recently conducted to support the development of South Carolina’s first Statewide Freight Plan.

The TDL Council continues to represent the interests and perspectives of private industry throughout this process, providing the support necessary to help execute and deliver on the major goals of this plan.

During the TDL Summit, South Carolina Secretary of Commerce Bobby Hitt reported that 15 projects involving companies in the TDL industry were announced in 2012, accounting for 2,200 jobs and a $370 million investment.

Secretary Hitt and other speakers emphasized that logistics equals jobs and that the state still has transportation issues needing urgent attention. The top priority among business leaders is fixing a $29 billion funding shortfall over the next 20 years needed to repair roads, replace bridges and invest in mass transit and rail transportation.

As we celebrate recent TDL successes, we must also remain focused

• According to the South Carolina Trucking Association, 80% of communities in South Carolina depend exclusively on trucks to move their goods.

• The S.C. State Ports Authority alone facilitates the handling of $45 billion in economic activity annually, including nearly 261,000 jobs.

• South Carolina has over 2,200 miles of rail that pass through all 46 counties in the state.

• Approximately 90 million tons of freight move through South Carolina each year by rail.

• South Carolina maintains 41,000 miles of state and federal highways, which the nation’s trucking industry depends on to be reliable and safe.

• During calendar year 2012, 28,766 tons of air cargo moved in and out of the GSP International Airport.

This represents an increase of 3.72% over 2011 figures.

Statistics provided by the TDL Council

on working collaboratively to identify solutions that will help us reach our multimodal transportation goals so that our state will be prepared to accommodate new and expanding economic development opportunities.

Leaders of higher education, decision-makers from the business sector, elected officials, government agencies, community advocates and interested citizens must come together to put the vision of the TDL Council into action.

Business leaders are encouraged to support the mission of the TDL Council by staying informed on the issues and actively participating in the dialogue.

A strong TDL industry in South Carolina will strengthen the state’s overall economy, create jobs and attract investment that benefits us all. For more information about The South Carolina TDL Council and how you can get involved visit www.tdlcouncilsc.com.

Deepal Eliatamby is the PE president of Alliance Consulting Engineers, Inc. and chairman of New Carolina’s TDL Council.

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s U.S. military officials implement President Barack Obama’s plan to transfer responsibility of Afghanistan back to the country’s own security forces by the end of 2014, tens of thousands of servicemen are moving back to the United States looking for jobs. Currently, almost 7 percent of returning military veterans who choose to reside in South Carolina are unemployed, according to spokesperson Mary-Kathryn Craft at the SC Department of Employment and Workforce (SC DEW).

Unlike previous military operations, many veterans now returning from the Middle East were unemployed prior to deployment, due to the recent economic recession.

Manufacturers find these veterans highly employable because of the technical skills they have gained from continuous military training over the last few years.

M an u fact u rers

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ockheed Martin, as part of a larger group of global manufacturing companies working together in the Get Skills to Work program, has committed to hiring veterans at its facilities. Its Greenville facility currently employs 248 veterans.

“Lockheed Martin has a longstanding commitment to supporting veterans in job transition and reintegration to civilian life,” says Lockheed Martin spokesperson Leslie Farmer. “As an employer of more than 25,000 veterans, we have strong mechanisms to train and ease transitioning military into the workforce, including affinity networks and mentoring programs. The Get Skills to Work program is a good example of employers finding unique ways to address two national challenges – the employment of our veterans and the skills gap in the manufacturing industry – and we’re proud to be one of its founding members.”

Another international manufacturer, Sanmina Corporation, who has a Fort Mill division that repairs and services medical equipment, strives to hire veterans, according to the company’s senior human resources representative, Dana Williams. The South Carolina division’s informal vet-friendly hiring program has hired veterans for about 25 percent of its technician positions.

“We find hiring veterans is a way for us to give back to those who fought for our country,” says Williams, “and many veterans’ backgrounds in electronics are important in our industry and a rare find.”

In addition to specialized technical skill sets, manufacturers find veterans exhibit other highly desirable employability characteristics.

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“Veterans have a strong work ethic, exhibit a sense of teamwork, show a willingness to take responsibility, and demonstrate a desire to contribute,” says Steve Wunder, president of Duer Carolina Coil, a manufacturer of heavy industrial steel coil springs with a facility in Duncan. About 17 percent of his South Carolina workforce is filled by military veterans, and Wunder says the plant is currently seeking qualified employees to fill additional maintenance technician job openings.

Almost 12 percent of Pure Power Technologies’ South Carolina employees are military veterans. Nicole McGrady says the company actively recruits from the military through an online recruitment system and by participating in Hiring for Heroes job fairs.

“For our industry, those who have served in the military have a proven ability to learn; can perform well under pressure, which is important in the automotive industry; and tend to pay attention to detail, which is important from a quality standpoint,” McGrady says.

Steve Townes, CEO of Louis Berger Services, himself an Army Ranger veteran and West Point graduate, says his company hires veterans because it’s good business and because they have the skill sets required by his company’s government clients.

“Our customers have very specific requirements to fulfill mission-critical technical services contracts. We hire military veterans who have worked in the same capacity on active duty as what Louis Berger Services needs to fulfill current contracts. The work traits that come along with that skill set are an added dividend,” Townes says.

Townes details desirable work traits that fit well within his organization, such as the proven ability to lead and follow, the aptitude to work adeptly in fluid environments, a predisposition to working across various cultures in diverse settings and high resiliency.

“Since veterans understand the rigors of deployment worldwide, they fit well within the scope of our international customer contracts,” Townes says.

“Our enterprises have always hired lots of veterans and show a proclivity toward academy graduates from the nation’s service academies,” Townes adds. “We have always exhibited high performance in our companies over the years. It’s not just about giving back to these personnel for their service to the nation; it’s simply good business.

Almost all of our company officers and managers are veterans, and our organizational core values resonate strongly with our customers.”

“We continuously recruit veterans because we can’t put just anyone in job slots. Our government customers like to interface with like-minded people with the requisite skills.”

About 70 percent of Louis Berger

GETTY IMAGE S

B y D ana W. T odd

Services’ current staff are former military. At press time, the company had 35 to 40 job openings that, according to Townes, will “ideally be filled by veterans.”

V eterans

F

or all the positive reasons manufacturers list for employing veterans, the veterans themselves cite challenges and barriers to getting hired. According to local veteran employment representative Jeffrey Wilcox of SCWorks, veterans need assistance polishing interviewing skills since they haven’t used them in some time. Wilcox also says those who come out of the armed services often need to develop additional skills more transferable to the private sector. He experiences greater success placing those who have military occupations which match skills today’s companies are seeking such as medical, information technology, nuclear, electronics, mechanical and other highly technical skill sets.

In his area of focus – mostly York County and parts of Chester and Lancaster – Wilcox coordinates job fairs for veterans and meets daily with companies to explain the benefits of hiring retired military. He says the challenge lies in educating veterans about the assistance his office, as part of SC DEW, provides, including résumé development, online job applications, workshops and new career development. Specialists in veteran employment like Wilcox operate out of SCWorks offices across the state, helping connect veterans with companies ready to hire them.

Tom Yeoman of The Yeoman Group, a veteran-owned training consultancy, says until South Carolina becomes more “vetrepreneur” friendly, the incentives are low for former military to settle down in the state and start small businesses.

“Many vets are unemployed and starting their own businesses,” says Yeoman.

“If they are competing for state government contracts, they should have the same advantages as minority or female-owned companies.”

Currently, South Carolina government agencies develop a customized annual plan outlining a goal for procuring goods and services from certified minority business enterprises. Yeoman says a similar standard for buying services from veteran-owned

companies would help put them on equal footing when it comes to selling to state government.

According to the National Veteran Owned Business Association (NaVOBA), South Carolina is one of 11 states in which there are no preferences in the procurement code for veteran-owned companies.

“Legislators seem to be predisposed against state mandated procurement preferences,” Yeoman says, “but that’s not the way state government procurement works.”

Yeoman says another barrier for veterans transitioning into the private sector is the misconception their style is “too rigid.” Another challenge is non-recognition by the private sector of complex technical skills gained through military training. For example, military nursing skills may not translate to the private sector without further education and training.

Elisa Edwards, employment transition coordinator with the SC National Guard, helps veterans translate their military skills to match up with private sector job openings.

Since the SC National Guard launched its Service Member and Family Care Program 18 months ago, Edwards says the unemployment rate for veterans has fallen 12 percentage points, with a savings of $7.5 million to the state when those returning to work drop off the unemployment rolls.

“South Carolina has such a successful program that other states in the country are looking at it,” Edwards says. “We have placed 1,000 veterans into jobs since the program’s inception.”

She says manufacturers have begun knocking on her door looking for the skill sets prevalent among veterans, such as IT experience. Manufacturers are realizing that returning military personnel are a great source of trained employees with the kind of discipline a lean manufacturing environment requires.

Dana W. Todd is a professional writer and public relations consultant who writes for news outlets and publishers nationwide.

Where Tradition Meets Technology • A leader in chemicals, plastics, automotive technology and hydrogen technology • A stable, quality workforce with advanced manufacturing skills • Major highways, rail lines, air service and port access • Small-town atmosphere with proximity to big-city amenities

For more information, contact Will Williams, Director wwilliams@edpsc.org

P.O. Box 1708 | Aiken, SC 29802 | Phone: 803.641.3300 | Fax: 803.641.3369 | www.edpsc.org

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Cox Industries

mikee johnson

May~June 2013 Centerfold

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B y J ean C ecil F rick

P hotography by S andy A ndrews

ichael “Mikee” Johnson is a family man, a storyteller and a kid at heart. He’s also a leader and extremely driven to make a difference in South Carolina.

At the young age of 40, Johnson is chief executive officer and president of Cox Industries, Inc., a manufacturer and distributor of treated outdoor wood products for the residential, commercial, industrial and utility markets headquartered in Orangeburg, South Carolina.

M

A noble tree man

May~June 2013 Centerfold MIKEE JOHNSON Cox Industries

C

ox was started in 1952 by Johnson’s maternal grandfather, William B. Cox, Sr. and great uncle, Ed Cox. Today, Johnson is the third generation to run the company, and he has helped move the organization into the 21st century. While a family member may be making the day to day operating decisions, Johnson believes the company remains successful because it maintains an independent board of directors that keeps the

family accountable.

Orangeburg became home to Cox Industries because raw materials could be found on the land. According to Johnson, the southeastern United States is the “Saudi Arabia of southern yellow pine forest products.” It doesn’t hurt that the Southeast is also home to numerous ports that can ship supplies worldwide. All of Cox’s facilities can be found in rural towns with names such as North, Leland and Eutawville. Today, Cox is 423 employees strong with 12 facilities and nine distribution centers from the Gulf Coast to New England.

Hard Day’s Work Johnson can remember walking into his family’s kitchen at age 13 and telling his dad he wanted to start working. His dad said “If you start, you aren’t going to stop.” At the time, Johnson’s dad ran Cox’s Orangeburg facility and he left for work at 4:30 a.m. every weekday.

Johnson asked his dad why he left for work so early every morning and his father replied, “If the train stops us, we will still get to work on time.”

This work ethic has stuck with Johnson. In fact, a train never stopped him until he went into work the morning of his father’s funeral at the young age of 52. For the first time, a train stopped Johnson on his way into work and his father was certainly on his mind as the train rolled by.

Johnson started stacking wood for Cox the summer he turned 14 and he did that every summer until he got his first “real” job working for the Employment Security Commission during the day and waiting tables at night in Greenville during his college years at Furman University. Knowing he had two jobs, his father let him stay in Greenville during the summer hoping that holding down two jobs would keep his son out of trouble.

Johnson has been working hard ever since.

Long-Term Thinking

W.B. Cox, Sr., one of the founders of Cox Industries, stands with Mikee Johnson and Billy Cox, Jr.

Johnson took over Cox Industries five years ago at a time when the economy was in the worst recession experienced in years. Johnson and the board of directors made tough decisions to keep the company successful in the long run.

To start, Johnson kept the culture the same. Numerous employees have been with Cox for more than 30 years, and Johnson didn’t want to change the culture that has brought them to work all these years. He also made streamlining decisions.

Fortunately before the recession hit, the company expanded into the utility pole business. That proved beneficial to weather the financial downturn. Johnson is focused on keeping the company successful for the long-term.

A member of the 2012 Liberty Fellowship class, Johnson’s Liberty mentor, Harris E. DeLoach, Jr., says, “Mikee is passionate about his company, community and making sure that Cox Industries adapts and grows. He’s identified use of new technologies that is helping meet the needs of domestic customers while aggressively pursuing markets outside the U.S. which will make a difference to the company’s long-term growth.”

Johnson believes long-term thinking is the key to success. “We need more long-term, enterprise thinkers,” he says. “Today, everything is at our finger tips, but those that know how to think and resolve problems will be better off in the long run. Don’t just know how something works, but know why something works.”

Cox Industries has been partnering with Edisto Habitat for Humanity® to build homes for deserving families in the community.

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In August 2011, Johnson joined the state Workforce Investment Board and currently serves as chairman after an appointment by Governor Nikki Haley. In this role, Johnson is focused on aligning programs in the state to streamline workforce development efforts.

He says there are so many great programs out there with a lot of passion to improve the workforce but the state needs to ensure the programs are coordinated.

Johnson says, “There are currently 180,000 people out of work and 60,000 open jobs. South Carolina needs to do a better job of aligning qualified workers.

Many of South Carolina’s workforce issues start at home, and we need to focus on early childhood education.”

IMAGES COUR TESY OF COX INDU STRIES

Future Generations

SANDY ANDR EWS

Mikee Johnson sits with the family that received a new house from Cox Industries in 2010.

Headquartered in Orangeburg, Cox Industries is a manufacturer and distributor of treated outdoor wood products for the residential, commercial, industrial and utility markets.

Johnson believes every child should work in manual labor and have a service job at some point in their lives. Through those experiences, “people can learn what it is like to wait on someone and know what it is like to get out there and sweat.”

“Mikee is mature beyond his years and what impresses me the most about him is the fact that he leads by example,” says John Bauknight, a close friend of Johnson’s and president of Longleaf Holdings USA, LLC. “I don’t know anyone else in our state that is as engaged in as many things as Mikee, and he does not just get involved, he leads the charge.”

Bauknight continues, “It’s also nice to note that he balances his engagement between family, business and state. He is a Scout leader for his son’s troop, has led Cox since 2007 to significant growth and now will chair the South Carolina Manufacturers Alliance. We need more Mikee Johnsons in this state.”

Community Steward As a family man, Johnson can be found every Tuesday night leading his son, Brady’s, Scout troop. An Eagle Scout himself, Johnson knows the value of the Scout oath which vows “to help other people at all times.”

Johnson practices what he preaches. For the past six years, Cox Industries has been partnering with Edisto Habitat for Humanity® to build a home for a deserving family. Cox has fully sponsored six homes and, most importantly, brings its employees together to support the cause and help build the home.

Matt Yaun, chief administrative officer for Cox Industries, says, “It is inspirational to have a leader who is so committed to living our core value of service to our nation and local communities. I’ve seen the care and compassion that our team puts into changing lives via home ownership, and it fills me with great joy each year when we hand over the keys and the Bible to a new family.”

“The driving force behind this effort is Mikee’s passion to build a better world through active participation in local groups like Habitat for Humanity®,” Yaun iterates. “It has been an integral part of our culture from the early days of Mr. W.B., was carried on while Billy was CEO and continues through Mikee’s leadership as a testament of our duty to be good stewards of the blessings we’ve been given.”

In a letter to his employees, Johnson compared the building of a new home to the formation of Cox Industries. He states, “I think back on the origins of Cox and can only imagine the ‘sweat equity’ it took to build our foundation. Bill and Ed Cox started Cox Industries with a couple acres of land and a commitment to becoming successful. Along the way, I am sure they hit their finger with the proverbial hammer.”

“However, those two men persevered and saw to the fact that Cox Industries would have a solid foundation not of concrete and steel, but rather one of values and reputation,” Johnson continues. “Today, we ascribe to the core values to which they committed this business; and those values, which became ours, will forever serve as the foundation of our business.”

The foundation has been laid, and Mikee Johnson is the steward who is taking his family’s business to the next level.

Jean Cecil Frick is the multimedia manager at the South Carolina Chamber of Commerce and the editor of South Carolina Business.

Get to know Mikee Johnson Favorite place in South Carolina: Greenville Happiest day of his life: The day he walked into Palmetto Bank and met his wife, Cyndi Cox Johnson, and the birth dates of his two sons, Brady Clayton Johnson and James Causey Johnson Favorite book: A Whole New Mind by Daniel Pink People might be surprised to know: Every Tuesday night he serves as the Scout leader for his son, Brady In his spare time: He’s hunting in the woods What inspires him: Hard work!

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When the community works together, the community works.

Like individuals, businesses are members of the community too. The most extraordinary enterprises take this connection to heart, doing what they can to help their neighborhoods grow.

Bank of America is pleased to support the businessmen and women who thrive on active community involvement and appreciate its important role in advancing the public good.

Visit us at bankofamerica.com

Š 2013 Bank of America Corporation SPN-108-AD | AR9E9C35

WORKFORCE DEVELOPMENT LEADS TO ECONOMIC DEVELOPMENT The Clemson University Center for Workforce Development is heading a statewide effort to develop a new breed of professional with specific skills in science, technology, engineering and math (STEM) to support South Carolina’s growing manufacturing industry.

Join us in preparing students for rewarding, high demand careers. You’ll be in good company with Duke Energy, the U.S. Departments of Education and Labor, the National Science Foundation, other universities, technical colleges and K-12 schools.

“Our goal is to ensure our citizens are ready to compete and succeed in the job market, particularly in the advanced manufacturing sector.”

Dr. Doris Helms Provost and Vice President for Academic Affairs Clemson University

PROVIDING TALENT FOR THE 21sT CENTURY

clemson.edu/cucWd

MEMBER SPOTLIGHT

Mar-Mac celebrates 60 years of manufacturing

T

he hard work and vision of two McBee, South Carolina businessmen, J. W. Martin, Jr. and John S. McLeod, led to the formation of Mar-Mac Manufacturing Company in 1953. Their initial product was a unique device for the construction industry referred to as a “diaper”. Made from cloth and wire, the diaper was used to seal the joints during the installation of concrete pipe.

As the business expanded and additional products were developed, they began serving many new and diverse markets. In 1990, the wire division and sewing divisions were re-organized as separate companies, each under individual management and ownership.

Since its founding 60 years ago, Mar-Mac Wire remains privately held and dedicated to the McBee community, with an integrated manufacturing facility of over 125,000 square feet to serve customers from coast to coast. Nearly 100 employees strong, this small manufacturing business provides unique, imaginative sourcing solutions for consumable, manufactured products.

“We are in our 60th year as a manufacturing company in McBee, S.C., and I would have to say that our success and longevity is due to our people,”

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says CEO John W. Martin III. “We’ve always had a core group of people working together who strived for excellence, were willing to adapt with changing times and changing needs, and put the customer first.”

Martin continues, “In a more immediate sense, other people are discovering our secret. We find ourselves in the midst of an industrial development boom in the Southeastern United States and believe we are well positioned to take advantage of it.”

Mar-Mac Wire products can be found in projects close to home, such as the Arthur Ravenel Bridge in Charleston, as well as those with a national profile like the Freedom Tower project at the World Trade Center site in New York.

Mar-Mac has found it is differentiated in its industry due to a willingness to move outside the traditional business paradigm of a supplier and customer relationship and blur the boundaries of the value chain. Today, Mar-Mac doesn’t just buy steel, process it, and sell it down the supply chain; instead it focuses on reducing the total cost of ownership for the customer over the life of the product.

Twenty years ago it may have been difficult to consider selling anything but a fully processed and finished product, but today, Mar-Mac separates

and delineates each of its processes and services.

Mar-Mac then packages and markets any of the manufacturing capabilities that may be needed.

They also provide materials procurement consulting, overseas sourcing capabilities, technical expertise, inventory management services and transportation management.

Mar-Mac brings these solutions to bear in two primary markets – reinforced concrete construction accessories and steel wire for industrial applications.

Concrete construction accessories include just about any product involved in the placing of steel rebar and pouring of concrete with the exception of the rebar and concrete raw materials themselves.

Mar-Mac services a distributor network across the United States from two distribution locations in Timmonsville, South Carolina and Denison, Texas.

On the industrial wire side, Mar-Mac sells to a wide array of applications – from agricultural and cardboard recycling baling wire to book binding, grocery carts and other consumer products.

Mar-Mac Wire has long prided itself as a responsible and involved corporate citizen of the McBee and Chesterfield County communities.

This involvement is a continuation of the original efforts of the founders who were active and

IMAGES COUR TESY OF MAR-MA C MANUFACT URING C O.

B y J ean C ecil F rick

helping you create custom solutions with people

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We’ll work with you to design and set up our operations, and then we’ll meet your goals with objective measurements. We are frequently brought in to assist with one aspect of our client’s business, and later expand to the rest as we gain trust and credibility. We are proud of our strong track record. We invite you to take a tour to one of our current clients so you can see it for yourself.

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We have successfully expanded the thirdparty logistics process to include third-party manufacturing.

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Mar-Mac Coated Industrial Wire

deeply involved in the development of the area.

Both founders of the company served as mayor of McBee at one time. Additionally, both founders were instrumental in bringing new industries and infrastructure to McBee. The company has a long history of promoting the community to bring in economic development.

Today, John W. Martin III serves on the Chesterfield County Economic Development Alliance board, and Mar-Mac has been a major contributor to the organization.

With its rich history in McBee, Mar-Mac has learned to adapt with a changing industry, making the community in which it calls home a better place.

Jean Cecil Frick is the multimedia manager at the South Carolina Chamber of Commerce and the editor of South Carolina Business.

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AFTER THE EVENT

Industry experts and manufacturers featured at 3rd Annual Manufacturers Conference Manufacturers from across South Carolina gathered in Charleston for the 3rd Annual Manufacturers Conference: Advanced Manufacturing—Using Technology to Secure SC’s Manufacturing Future. The sold-out conference welcomed speakers from South Carolina, Washington, DC, Germany, Japan and the Massachusetts Institute of Technology. Topics covered included manufacturing innovation, technology, sustainability, social media challenges and the future impact of a limited availability of the rare earths on “clean” technology.

The sold-out conference attracted over 150 attendees from across South Carolina.

Josef Kerscher, president of BMW Manufacturing Co., kicks off the 3 rd Annual Manufacturers Conference.

3rd Annual Manufacturers Conference Sponsors Presenting SPONSORS Dixon Hughes Goodman, LLP McNair Law Firm, P.A. Dinner Sponsors Electrolux Fisher & Phillips LLP MAU Workforce Solutions Lunch Sponsor BMW Manufacturing Co. Secretary of Commerce Bobby Hitt discusses the Department of Commerce role.

Breakfast Sponsors Alcoa Mt. Holly Metalworx, Inc. Hospitality Suite Sponsor Elliott Davis LLC

Attendees learn about new technologies in manufacturing.

Elisa Alonso, of the Massachusetts Institute of Technology, speaks to attendees on day one of the conference.

Josef Kerscher of BMW, Mike Brenan of BB&T and Rick Kamoshita of Hitachi Metals America network during the welcome reception.

Conference Bag Sponsor Robert Bosch LLC Name Badge Lanyard Sponsor Duke Energy Carolinas Welcome Reception Sponsors AT&T BB&T Defender Services, Inc. Find Great People, International Smith Moore Leatherwood LLP Women’s Distribution Services, Inc. Break Sponsors Century Fasteners FN Manufacturing, LLC Florence-Darlington Technical College GEL Engineering, LLC KOE Americas, Inc. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. S. C. Manufacturing Extension Partnership

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2012 Manufacturer of the Year Award: Cytec B y R ick G ilde

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he employees of the Cytec Coating Resins North Augusta and Langley sites are honored to be named as one of South Carolina’s top manufacturers with the Manufacturer of the Year award for 2012. We are extremely proud of the work we do at our production facilities in South Carolina. Our employees deserve this award. They are committed to producing high quality products in a safe and environmentally-conscious manner, and also actively pursue opportunities to support the local community. It is really nice to see our employees receiving this kind of recognition from an organization so dedicated to the manufacturing sector in South Carolina.

Since we are two locations winning the award, a second award was obtained so one can be prominently displayed at each of our facilities. The award was also brought to all employee meetings, and the content of the award criteria and application was communicated with our employees at each site.

Our employees are so proud and excited about our achievement, we have made quite the effort to tell everyone. In addition to general leadership and employee awareness, the plants were recognized in our corporate newsletter, and the achievement was included in our public relations strategy with a global press release. Knowing we are recognized as a team in manufacturing excellence, positive economic impact, commitment to workforce development and outstanding community stewardship energizes us all and contributes to our achievements and manufacturing vitality.

The Cytec Coating Resins North Augusta plant manufactures energy-curable and polyester powder resins for use in graphic arts, industrial coating, and wood protection applications, and in the powder painting of appliances and tractors. The Coating Resins Langley plant produces acrylic polymer emulsions, acrylic resins, waterborne epoxies, and various coating additives for use in primers, overprint varnishes, pigment dispersants, 2-part epoxies, automotive clearcoats, and adhesive applications. The North Augusta and Langley sites are approximately six miles apart, and share the same local leadership team, as well as many support functions. The sites have an engaged workforce of 135 employees.

Rick Gilde is the site manager for Cytec Coating Resins.

Cytec’s Coating Resins Business has a broad product portfolio: liquid coating resins, energy curable resins, powder coating resins, crosslinkers and additives.

Representatives from Cytec are presented with the 2012 Manufacturer of the Year Award.

CMC is Proud to Support

South Carolina.

From the steel we manufacture to the people we employ, for almost 100 years CMC has provided the support to improve our local communities.

We are a part of what makes South Carolina great and are committed to making our communities a better place to live and work.

Apply to become the 2013 Manufacturer of the Year The South Carolina Chamber of Commerce is now accepting applications for the 2013 Manufacturer of the Year. The deadline to apply is June 13, 2013. Visit www.scchamber. net and click on “Events” and “Applications and Recognition” to view the new, online process. The recognition luncheon will take place August 27, 2013 at the Doubletree by Hilton in Columbia.

CMC Steel South Carolina CMC Southern Post CMC Rebar CMC Recycling

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2308 Two Notch Road

Cayce, SC 29033 Cayce, SC 29033 Columbia, SC 29201 Lexington, SC 29072

803.936.3700 803.926.7100 803.254.4660 803.359.6137

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AFTER THE EVENT

Congressional delegation has lively discussion with business community S

outh Carolina’s congressional delegation took questions from the business community at the Columbia Metropolitan Convention Center on March 26 during a panel discussion at the South Carolina Chamber of Commerce’s annual Washington Night in South Carolina event. U.S. Senator Lindsey Graham along with U.S. Representatives Jim Clyburn, Trey Gowdy, Mick Mulvaney and Tom Rice were all in attendance.

Judi Gatson of WISTV emcees the congressional panel discussion.

Mike Brenan, chairman of the South Carolina Chamber of Commerce and president of BB&T South Carolina, welcomes attendees.

Congressman Jim Clyburn networks with Washington Night attendees.

Senator Lindsey Graham answers questions from the audience.

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Cleaning Processes Convection/Vacuum Oven Cleaning Deburring Washington Night attendees enjoy the reception that followed the town hall meeting.

Washington Night Sponsors Presenting Nutramax Laboratories Inc. Platinum

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Gold

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With locations in Columbia, Greenville, Sumter, and Charleston 1-800-849-5646

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Alcoa Mt. Holly AT&T Bank of America BMW Manufacturing Co. Bridgestone Americas FUJIFILM Manufacturing U.S.A., Inc. Michelin North America, Inc. Myrtle Beach Area Chamber of Commerce Nelson Mullins Riley & Scarborough LLP Nestle Prepared Foods Company Palmetto Health Santee Cooper Savannah River Nuclear Solutions, LLC Sonoco BRONZE The Electric Cooperatives of SC, Inc. Lexington Medical Center Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Piedmont Natural Gas S. C. Petroleum Council SC Credit Union League & Affiliates

South Carolina Farm Bureau Federation Time Warner Cable The Timken Company Total Comfort Solutions Walter P. Rawl & Sons, Inc.

CONTRIBUTORS Carolinas AGC Childs & Halligan, P.A. Greater Columbia Chamber of Commerce Institute for Child Success Kershaw County Chamber of Commerce & Visitors Center Orangeburg County Chamber of Commerce Sandlapper Securities LLC Greater Summerville/Dorchester County Chamber of Commerce Greater Sumter Chamber of Commerce Tri-County Regional Chamber of Commerce s c c h a m b e r. n e t | M a y / J u n e 2 0 1 3 | S o u t h C a r o l i n a B u s i n e ss |

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Your Business Advocates R

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“

Our concerns are our members’ concerns. Strong business advocacy ensures South Carolina becomes more globally competitive.

”

— Otis Rawl, President and CEO of the South Carolina Chamber of Commerce

Founded in 1940, the South Carolina Chamber of Commerce is the Palmetto State’s largest statewide broad-based business and industry association and voice of business at the State House.

The South Carolina Chamber keeps a close eye and constant presence at the State House, engaging legislators in meaningful dialogue while working to get positive business legislation passed and halting dangerous anti-business bills.

The business community’s annual list of legislative priorities, the

Competitiveness Agenda, is based on feedback from the more than 18,000 businesses the Chamber represents.

Over the past four years alone, the return on investment for South Carolina businesses has been $2 billion through legislative advocacy on issues like workers’ compensation reform, Employment Security Commission reform, port restructuring and more.

Contact us today at 800-799-4601.

Learn more at www.scchamber.net.

Submitting publicity photos and art files to South Carolina Business magazine South Carolina Business magazine is printed on sheet-fed offset presses at 175 line screen (350 dpi). The staff recommends that publicity photography and art files meet the following parameters to achieve optimal reproduction for publication.

• Headshots should be a minimum of 3”x 5” (1050 pixels X 1750 pixels) and shot against a neutral background. Please do not use backgrounds that are in primary colors, such as red, blue, yellow or white. Do not submit photographs used on or captured from a website.

• Submit all photography as RGB or grayscale JPEGs. • Send all photography and art to: jeancecil.frick@scchamber. net. Please include the company name as the first word in the file name.

• Commissioned assignments and stock photography purchases are handled by Tim McKeever, art director. Creatives may contact him at: ideas@tmcadesign.com.

• Event photography and art files should be a minimum of 5”x 7” (1750 pixels X 2450 pixels). If you are shooting snapshots for publication, set your digital camera settings to the highest resolution possible. If you have commissioned photography, please include the photographer’s name.

• Do not submit TIF files or apply any image compression.

• Do not submit photography used on or captured from a website.

PUBLISHING & MEDIA SERVICES

When your message needs to reach the largest possible business audience, there is only one choice:

the magazine of choice for South Carolina’s top executives.

S eptember /O ctOber 2012 V Ol . 33 | N O . 5

N ovember /D ecember 2012 v ol . 33 | N o . 6

Manufacturing

South Carolina’s Worldwide Reach

StarS of BuSineSS Business Leader of the Year

Sequestration Takes Aim The State of Infrastructure FUJIFILM

s.C. top 100™

A Broader Focus

eConomiC sporting events

Tire Empire

puBLiC servant of the Year famous south CaroLinians s.C. Big 50® sgt. Jasper freedom award

Contact Deidre Macklen at 803.318.3923 for 2013 marketing and advertising opportunities.

PUBLISHING & MEDIA SERVICES

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MEMBER NEWS

W e l c o m e , N e w M e mb e r s AAAG of SC LLC DBA Charleston Auto Auction Moncks Corner AARP South Carolina Columbia Active Minerals Aiken For its individual efforts in energy efficiency, sustainability and business growth, BMW Manufacturing was a recipient of the 2012 Duke Energy Power Partner Award.

Pictured (left to right) are Gayle Lanier, senior vice president and chief customer officer, Duke Energy; Josef Kerscher, president, BMW Manufacturing Co.; Ursula Mathar, head of sustainability and environmental protection, BMW Group; and Duncan Seaman, manager, market operations USA and Canada, BMW Group.

American Bureau of Shipping North Charleston Augusta Regional Airport Augusta, GA Berkeley Electric Cooperative & Berkeley Propane Company, Inc. Moncks Corner Bierrebi International Greenville Blossom Shop Florist Columbia C. R. Jackson, Inc. Columbia

SC Trusted Choice leadership renewed its support to Make-A-Wish SC with a $57,500 contribution during the Independent Insurance Agents & Brokers of SC (IIABSC) annual Spring Conference held in Columbia. Pictured (left to right) are IIABSC Chairman of the Board Ashley Brady of Marion, Trusted Choice Chairman Tom Bates of Greenville, Make-A-Wish SC President & CEO Russell Smith of Greenville and IIABSC President and National Trusted Choice Board member Frank Sheppard of Columbia.

Canfor Southern Pine Myrtle Beach Champion Tool & Machining Company Inc. Anderson Cleanlites Recycling/USA Lamp & Ballast Recycling Spartanburg Concerned Black Men National Organization/CBM Cares of Columbia Columbia Exxon Mobil Corporation Fairfax, VA First Financial Corporation Columbia First Sun EAP Alliance, Inc. Columbia FollyBeach.com Folly Beach Garden City Realty Inc Murrells Inlet Greenville Zoo Greenville Grow Financial Federal Credit Union Elgin HR Plus, LLC - Human Resources Consulting Prosperity Hudson’s Classic Catering Lexington

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Hybrid Engineering, Inc. Columbia Intellisystems Columbia Columbia Jacobs Engineering Group Inc. Greenville Kongsberg Automotive Easley Moss & Associates Greenville Pro Systems, Inc. Charlotte, NC Right Management Mount Pleasant RNM, LLC/Georgia-Lina Precast Trenton Sargent Metal Fabricators Anderson SC Association of Railroads Conway Signet Human Resource Management Goose Creek Southland Equipment Service, Inc. Columbia Stevens Aviation, Inc. Conestee TeamStudio Columbia Trident Construction Co., Inc. North Charleston Veracity Payment Solutions,Inc Aiken VERIZON Wireless Tallahassee, FL

To help employers cope with escalating medical costs and new regulations, BlueCross BlueShield of South Carolina has expanded its capabilities for large groups (50+ employees) that administer incentive plans to motivate healthy behaviors. Three new products in particular are gaining traction: plans that reward all employees with incentives for healthy behaviors, plans that enhance benefits for employees with chronic conditions and plans that include a care advocate who helps fill gaps in services.

Colliers International announced Jon Selfridge has joined the firm as a brokerage associate. Selfridge will be working in the retail services group of Colliers and be teamed with Rox Pollard, vice president and principal of Colliers International South Carolina.

Collins & Lacy, P.C. announced Mike Pitts has been elected managing partner of the statewide business defense law firm. Pitts is an employment attorney in the Collins & Lacy Greenville office.

First Citizens announced Brendan Chambers has joined the company as executive vice president and commercial banking executive. In his new role on the company’s executive leadership team, Chambers will be responsible for developing consistent commercial sales routines and enhancing the commercial segment strategy for the bank.

Gallivan, White & Boyd, P.A. announced Adam R. Artigliere has joined the firm’s Greenville office as an of counsel member of the firm’s business and commercial practice group. His practice will continue to focus on corporate and business planning, banking and financial transactions, commercial real estate, and economic development and incentives.

Hospice Care of South Carolina (HCSC) has increased the number of board certified medical directors as Dr. Kevin McRedmond, Dr. Lori Thompson, Dr. Michelle Floyd and Dr. Frank Sharp recently completed the Medical Director Board Certification and passed the American Board of Hospice and Palliative Medicine exam.

The Ethisphere Institute announced Kimberly-Clark Corporation (KMB) again ranks among the “World’s Most Ethical Companies” in 2013, according to the seventh annual survey results released by the leading business ethics think-tank.

Life Cycle Engineering, Inc., a professional engineering services firm, announced the appointment of Terry Simpson as a vice president of the applied technology group.

Harry Mashburn of Mashburn Construction has been awarded the 2013 Construction Hall of Fame Award by the Clemson University Department of Construction Science and Management (CSM). The Construction Hall of Fame Award recognizes the accomplishments of those who have distinguished themselves throughout their careers in construction.

Mashburn Construction announced the opening of a new location in Greenville.

Joining Mashburn in the Greenville office are Danny Schaaf as project executive and Dylan Waltz as project superintendent. Mashburn’s new office will be located at 20 Brozzini Court in Greenville.

The Columbia World Affairs Council has re-elected Nexsen Pruet member Bob Coble as its chair. Coble, who organized numerous Sister City Programs during his tenure as mayor of Columbia, now leads the firm’s public policy and governmental affairs group in Columbia.

Ogletree, Deakins, Nash, Smoak & Stewart, P.C. announced that Fred Suggs and Stephen Woods, of the firm’s Greenville office, have been selected as 2013 Client Service All-Stars by the BTI Consulting Group. The BTI Client Service All-Stars are an elite group of attorneys nominated exclusively by corporate counsel in BTI’s independent study as the leaders of client service excellence. This year, BTI interviewed more than 240 corporate counsel from large and Fortune 1000 companies to probe all aspects of client relationships. Responses from those interviews found that client focus, exceptional understanding of the client’s business, outsized value, legal skills, and outstanding results were among the attributes that make for exceptional client service.

Pacolet Milliken Enterprises, Inc. announced the addition of William P. Crawford, Jr. as senior vice president and general counsel.

In addition to being responsible for the legal affairs of Pacolet Milliken, he also shares significant responsibility in the risk, tax, capital markets and corporate relationships areas of the company, and will serve as a member of its Management Investment Committee.

Richard Unger, a partner at Parker Poe Adams & Bernstein LLP, was elected to the Charleston County Bar Association’s Executive Committee for a two-year term.

David L. Stuckey, Jr. has joined PHT Services, Ltd. as senior claims consultant, responsible for the investigation and management of liability claims for Palmetto Healthcare Liability Insurance Program.

The Santee Cooper Board of Directors authorized the promotion of Jeff Armfield to senior vice president and chief financial officer and Jane Hood to vice president of fuels strategy and supply, effective July 1, 2013.

Advertiser Index Alcoa..................................................Back Cover Bank of America.............................................. 20 BMW Manufacturing...................................... 10 Carolina Filters.................................................. 27 Clemson University.......................................... 21 CMC Steel of South Carolina.......................... 25

Ryan LaBrooy has joined the staff of Scott and Company LLC as an associate accountant in the growing firm’s tax and advisory services group.

Collins & Lacy......................................................8

Select Health of South Carolina was a top four finalist and received honorable mention in the diversity communications category at PR News’ Corporate Social Responsibility Awards in Washington, D.C. Select Health was acknowledged for its culturally competent cervical cancer screening initiative aimed at reducing health disparities among African American, white and Hispanic/Latina women on First Choice, the state’s first and largest Medicaid plan.

Human Technologies...................................... 23

Robbie Barnett, associate vice president of workforce, education, and manufacturing policy at the South Carolina Chamber of Commerce, joined the list of prominent executive speakers at SC State University by speaking on the topic: “The Role of Business and Government in Workforce Readiness.”

SynTerra welcomed Lynn Watson as a senior environmental scientist. SynTerra Corporation is a 40 person environmental and engineering consulting firm located in Greenville specializing in environmental studies, design, transportation/civil and management for industry, government and commercial clients.

Apprenticeship Carolina™, part of the SC Technical College System, announced Michelin North America is sponsoring a structured two-year program that will offer classroom and practical hands-on experience for their maintenance technicians. The apprenticeship program is in conjunction with the Michelin Scholars program and will lead to a full associate’s degree for the apprentice.

Apprenticeship Carolina™ also announced The Timken Company is sponsoring a structured two-year program that offers classroom and practical hands-on experience for process facilitators at The Timken Company Duncan Distribution Center.

MEMBER NEWS

Scott Graves has been named president and chief operating officer of BlueChoice HealthPlan of South Carolina.

Duke Energy.......................................................9 Economic Development Partners................... 15

March of Dimes.......................Inside Back Cover Santee Cooper........................Inside Front Cover Sonoco................................................................1 Stäubli.............................................................. 11 Women’s Distribution Services....................... 23

When your message needs to reach South Carolina’s business leaders, there is only one choice: SOUTH CAROLINA BUSINESS. The magazine of choice for South Carolina’s top executives.

For advertising and marketing opportunities, call Deidre Macklen at 803 318 3923.

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 3 | S o u t h C a r o l i n a B u s i n e ss |

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N ame : Al Reid H ometown : Rock Hill, S.C. C ollege : North Carolina State University Occupation: Plant Manager for PPG Fiber Glass Chester Plant H e thinks the future of manufacturing is very bright. “To paraphrase Mark Twain, the reports of the death of manufacturing are greatly exaggerated. The U.S. has a strong history of innovation and productivity that has allowed manufacturing to thrive and grow. Manufacturing provides good, well-paying jobs and we continue to train young people to develop the future of manufacturing. Although the manufacturing base may be smaller, manufacturing is still a key part of our economy and manufacturing jobs are critical to our success.”

W hy companies choose to manufacture in S.C. “South Carolina is a manufacturing friendly state. The Palmetto State understands the importance of manufacturing to the economy and to people’s lives.”

T he best part of his job “Getting to work with people and solve problems that allow us to continuously improve.”

I f he could go back in time “I would still be involved with manufacturing. I love visiting manufacturing plants. It’s really cool to see how things we use and depend on in everyday life are made.”

H e ’ s passionate about “My faith, my family (including three children ages 12, 13 and 17) and my career.”

H is best career advice “In the first Industrial Engineering (IE100) course I took, the visiting lecturer told us ‘people are your most valuable resource’. He was exactly right. By taking care of your most valuable resource, you practically guarantee your success.”

H is secret to success ? “Live by the golden rule. Treat people the way you want to be treated. By doing that, your interactions start off with a certain level of success.”

I am S.C. B usiness “South Carolina has the right infrastructure.

The state cares about developing people. The state believes in manufacturing and supports the industry.”

— Jean Cecil Frick

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Thank you to our 2013 March for Babies Chairs for helping us celebrate 75 years of stronger, healthier babies!

Anderson

Beaufort

Charleston

Columbia

Florence

Georgetown

Paul Seward

Gayle Resetar

Greenville

Tony Coleman Facility Leader Owings Corning

Bryan Gates

Real Estate Agent ERA Evergreen Real Estate

Greenwood

Todd Croker Senior VPOperations FUJIFILM Manufacturing

Sumter

Horry County

Case Brittain

Todd Gallati

CEO Trident Hospital

Lake City

Jo Etta Floyd

Attorney The Brittain Law Firm

Branch Manager/ VP SC Bank and Trust

Walterboro

York County

Fred Faircloth

Rock Hill Coca-Cola Bottling Company

Bronywn McElveen

Assistant Solicitor Sumter County

Jimmy Hiott

Chief Financial Officer Colleton Medical

Louis Caputo

CEO Summerville Medical Center

Linda Godwin

Vince Ford

Senior VP, Community Health Palmetto Health

Senior VP, City Executive BB&T

Laurens

Stephen Wetmore General Manager Walmart Distribution

Bob Stegner

Dixon Harrill

COO Georgetown Hospital System

Senior VP Marketing North America, SYNNEX Co.

Oconee

Orangeburg

Pickens

Spartanburg

Glenn Buddin

Henry N. Tisdale

Roddey Gettys

Michael Rackley

CEO Blue Ridge Bank of Walhalla

President Claflin University

CEO Baptist Easley

President Park Sterling Bank

COO & Senior VP Norgenix

Healthy Babies, Healthy Business Premature birth and birth defects are the leading cause of newborn death each year. Visit marchofdimes.com/hbhb to enroll in our company wellness plan at no cost.

Visit marchofdimes.com/southcarolina or call 803-403-8523 to find out how your company can lead the way for healthier babies in your community!