September/October South Carolina Business

SEPTEMBER/OCTOBER 2011 V ol . 32 | N o . 5

The state of manufacturing How the S.C. Chamber is Working for Manufacturers Hubbell Lighting

Bright Ideas SiMT Expansion South Carolina Business Week

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20 W er 10 ING cu SC A r y PR W Aw SA A RD ar ds

2011 Grassroots Meetings

TRANSFORMING THE BUSINESS LANDSCAPE ARE YOU ASKING THE RIGHT QUESTIONS? TEN QUESTIONS FOR EMPLOYERS TO CONSIDER 1. Have you recently reviewed your employee handbook to ensure compliance with state and federal employment laws?

2. Do you understand and abide by the requirements of the Family Medical Leave Act (FMLA)?

3. Are your employees properly classified under the Fair Labor Standards Act (FLSA)?

4. Are you I-9 and state immigration law compliant? Have you performed an audit of your records to verify compliance?

5. Have you established a process for documenting and managing your employee personnel files?

6. Do you know the consequences when you improperly treat an employee like an independent contractor?

7. Do you contest invalid unemployment claims?

8. Have you developed & implemented an effective social media policy?

9. Are you making improper deductions from employees’ wages?

10. Have you conducted non-harassment/ nondiscrimination training for your employees and managers and updated your policies to comply with recent changes to the law?

Haynsworth Sinkler Boyd employment attorneys Liz Speidel (left) and Chris Gantt-Sorenson (right) assist HR professionals in finding practical solutions to their day-to-day employment issues.

With five offices located in South Carolina, team members understand the importance of being available to respond to questions with a same-day turnaround. We are committed to providing this level of service because we know employers often have to act immediately.

For further information, please contact LIZ SPEIDEL 843.720.4439 lspeidel@hsblawfirm.com 134 Meeting Street, 3rd Floor, Charleston, SC 29401 CHRIS GANTT-SORENSON 864.240.3282 csorenson@hsblawfirm.com 75 Beattie Place, 11th Floor, Greenville, SC 29601

Learn more about us by using this smartphone link, or by visiting www.hsblawfirm.com.

CHARLESTON

COLUMBIA

FLORENCE

ATTORNEYS AND COUNSELORS AT LAW GREENVILLE

MYRTLE BEACH

WASHINGTON, DC

contents >> CONTENTS

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21 F e a t u r e s 14

MANUFACTURING MATTERS: HOW THE S.C. CHAMBER IS WORKING FOR MANUFACTURERS

by Josef Kerscher

23 ONE WEEK, A LIFETIME OF LESSONS

by Robbie Barnett

24 GRASSROOTS MEETINGS IDENTIFY

LEGISLATIVE PRIORITIES

by Julie Scott

16 BRIGHT IDEAS

by Matthew Gregory 21 THE FUTURE OF MANUFACTURING

STARTS HERE

by Jeff McKay

IN EVERY ISSUE

HEALTH CARE CHECKUP

26 GAIN CONTROL OF HEALTH CARE COSTS

WITH CAPTIVE INSURANCE

by James H. “Jed” Suddeth Jr.

ECONOMIC DRIVERS 5

Education / Workforce

Emily Stover DeRocco

5 Business Costs

by Dr. Manoj Malhotra 7 Legal Environment

by Eric C. Schweitzer 8

Dynamism / Entrepreneurialism

by Garry Neeves

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Infrastructure

by Debbie Bass

11 Quality of Life

by Tom Jennings

DEPARTMENTS & NEWS From the President..............................................3

by Otis Rawl

Member News.....................................................31 Compiled by Matthew Gregory

Business Briefs....................................................27

Welcome, New Members.................................31

Upcoming Events Manufacturers Conference..............................28 Diversity Awards Dinner...................................28 32nd Annual Summit........................................30

Events Calendar.................................................32 Advertiser Index................................................32

After the Event 2011 Membership Receptions..........................29

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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| S o u t h C a r o l i n a B u s i n e ss |

September/October 2011

Coming Next Issue Fast Forward: Defining the Next Decade The annual issue of South Carolina Business will take a look at the key business issues that will impact the Palmetto State in the coming decade.This issue will provide an in-depth analysis on tax reform, health care, education, social media and other topics. In addition, this edition will honor three individuals who will have a big impact on the state’s future – the Business Leader of the Year, Public Servant of the Year and the Sgt. William Jasper Freedom Award winner. Find out what South Carolina must do to stay competitive with neighboring states and emerge as a top business destination.

> > F R O M T H E P R E S ID E N T

Laying the foundation for the future September/October 2011 Volume 32, Number 5

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

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P resident & C hief E xecutive O fficer OTIS RAWL V ice P resident of C ommunications DARRELL SCOTT A ssociate V ice P resident of C ommunications

JULIE SCOTT M ulti M edia C oordinator MATTHEW GREGORY G raphics & W eb A dministrator BOBBY BAKER

M SOUTH CAROLINA BUSINESS MAGAZINE E ditor MATTHEW GREGORY A rt D irection & D esign TIM MCKEEVER / TMCA INC. P roduction & P rint C oordination TMCA INC. D igital I maging & P rinting R. L. BRYAN COMPANY P ublished B y CONVERGING MEDIA LLC A dvertising S ales DEIDRE MACKLEN 803.318.3923

STATE CHAMBER with Distinction

Copyright © 2011 by the South Carolina Chamber of Commerce and Converging Media LLC. 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

O t i s Ra w l

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t is one of my favorite times of the year, not because it’s summertime, but because it’s when your South Carolina Chamber of Commerce travels the state for our annual Grassroots Regional Meetings, laying the foundation for the next legislative session. This year, we hosted 10 Grassroots Meetings in conjunction with our local chamber of commerce partners with the goal of gaining valuable input as we prepare our 2012 legislative agenda, or the Competitiveness Agenda.

And while the business community had some great wins in 2011, like achieving further reforms to our tort system and providing significant unemployment insurance (UI) tax relief, there is still much work to be done. In June, CNBC released its Top States for Business 2011, using factors like cost of doing business, business friendliness, the economy, infrastructure, technology and innovation and access to capital to rank states. South Carolina dropped from 31 in 2010 to 37 in 2011. Virginia was named the best state for business, with North Carolina ranked at three and Georgia at four. Florida and Tennessee both made the top 20.

Rawl is president and chief executive This latest ranking is continued proof we must tackle the big issues now officer of the South Carolina Chamber to compete with our neighbors. of Commerce.

While the South Carolina Chamber maintains open dialogue with business leaders every day, the annual Grassroots Meetings provide a unique collaborative opportunity for groups of business leaders to come together and present solutions to pressing issues. Often, our elected officials attend these meetings as well, hearing firsthand what they need to accomplish at the State House. This grassroots season, we heard from hundreds of you and are energized about the next legislative session’s possibilities for business.

This edition of South Carolina Business is devoted to South Carolina’s vibrant manufacturing industry, and much of the feedback we heard at Grassroots Meetings relates directly to it. For example, business leaders continue to call for action on comprehensive tax reform. Currently, South Carolina industrial properties pay the highest property tax rates in the nation. Addressing infrastructure needs also is a top priority as the state’s roads and bridges deteriorate. At the same time, as the port continues expansion efforts and more container volume is expected with the widening of the Panama Canal, infrastructure needs will be critical to move cargo from the port throughout the Southeast.

Grassroots Meeting attendees also reiterated the importance of workforce development, and the manufacturing industry, like all industries, depends on skilled, well-qualified workers when considering locating or expanding in South Carolina. Continuation of initiatives that work, like the Education and Economic Development Act (EEDA), support of our technical college system and early childhood initiatives to provide a strong foundation for future workers, is of great importance.

On the federal front, the Environmental Protection Agency (EPA) continues to propose a cadre of new environmental regulations, like those related to the ozone and Boiler MACT rules, which could cost manufacturers hundreds of millions in compliance costs. This will certainly delay the economic recovery and the creation of jobs.

The South Carolina Chamber is the National Association of Manufacturers’ (NAM) designated state partner, and we are partnering with NAM to fight unnecessary regulations by spearheading grassroots efforts with our congressional delegation. Business leaders universally said policies should promote job creation, not deterioration.

Business leaders continue to discuss the importance of labor issues to the state’s economic well-being. When the National Labor Relations Board (NLRB) overstepped its bounds earlier this year by filing a complaint against Boeing calling for the company to open a second 787 facility in the state of Washington to remedy what it called an illegal transfer of work to non-union facilities in North Charleston, the South Carolina Chamber was quick to speak out against the NLRB’s attempt to dictate where businesses can choose to set up shop. South Carolina’s business community is united in fighting the NLRB’s suit so businesses can continue to make decisions on where to expand without government interference. We are encouraging South Carolina’s congressional delegation and other state delegations to stand together and stop the NLRB’s gross overreach by defunding the agency. The Chamber will continue to closely monitor the NLRB’s actions.

In this issue of South Carolina Business, we delve deeper into the NLRB and new rules proposed for quick elections. I am also pleased to introduce you to Hubbell Lighting, a fascinating company headquartered in Greenville that began more than a century ago with the pull chain socket for Thomas Edison’s light bulb. We also recap this year’s Business Week and examine its impact on students’ futures in the business world. Finally, I encourage you to read more about what we heard at the 2011 Grassroots Regional Meetings as we present a summary of issues.

The South Carolina Chamber of Commerce is ready to get to work early laying the foundation for the 2012 legislative session. With a strong Grassroots Network, we can accomplish the business community’s goals alongside our elected officials. s c c h a m b e r. n e t |

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Skills Certification System to improve workforce Emily Stover De Ro c c o

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ore than ever before, business innovation is a strategic imperative. A highly skilled and educated workforce is the most critical element for innovation success, and countries with high-performance workforces are more competitive in the complex global marketplace. The reality threatening U.S. global competitiveness is that U.S. manufacturing executives consistently cite difficulties in finding highquality talent. These skills shortages pervade all stages of manufacturing—from engineering to skilled production.

The technology infusion and high productivity that dominate the advanced manufacturing landscape demand a smart, safe and sustainable manufacturing workforce. This requires individuals with professionalism, applied science, technology, math and engineering skills, as well as a holistic knowledge of manufacturing principles, which enable them to advance with the evolution of new business processes. The Manufacturing Institute has responded by creating a national manufacturing skills credentialing system to directly address the deficits in manufacturing education and training, which are limiting the pool of qualified candidates for high-quality manufacturing jobs.

The National Association of Manufacturers (NAM)-

The Skills Certification System provides the traits an individual needs to work in the advanced manufacturing workplace.

endorsed Manufacturing Skills Certification System is the flagship education initiative of the manufacturing sector, integrating nationally portable, industry-recognized credentials into high school, community college and university programs of study. These stackable credentials are applicable to all sectors in the manufacturing industry as they validate the skills and competencies needed to be productive and successful in entry-level positions in any manufacturing environment.

The Skills Certification System is the benchmark standardized assessment of the critical workplace traits and

occupational skills an individual needs to operate in the advanced manufacturing workplace driven by productivity and flexibility. It confirms both technical and nontechnical skills, assuring that an individual has both the “book smarts” and the “street smarts” to function in a high-paced manufacturing environment. The result is a professional technical manufacturing workforce with valuable industry credentials, making companies more innovative, more competitive and more marketable.

South Carolina is one of 31 states driving to industry-recognized credentials integrated into educational pathways to meet the regional economic demands of their manufacturing sector. There is also a national manufacturing careers recruitment program, Dream It. Do It., underway in the state to excite young people about manufacturing careers and guide them to the education and training they need to be successful in manufacturing.

To learn more, visit www.dreamitdoitsc.com.

For more information about the NAM-Endorsed Manufacturing Skills Certification System, please call 202-637-3426.

economic drivers

> > E D U C AT I O N & W O R K F O R C E

Emily Stover DeRocco is president of The Manufacturing Institute.

>> BUSINESS COSTS

The advantage of manufacturing close to home D r. Manoj Ma l h o t r a

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s the economic done with fewer employees, and recession has many manufacturing jobs were widened in the U.S. either outsourced or offshored. and spread overseas to Europe, Conditions may be ripe there has been much talk and again for new manufacturing debate about creation of jobs job growth to occur within the so that people can get back to U.S. Labor cost differentials work. Legislators and business were largely blamed for the leaders have weighed in on flight of manufacturing jobs this subject, as have analysts, first to low-cost countries like money managers and the news Mexico and then eventually to media. But where are these jobs China and India. But those wage eventually going to come from? differentials, while ever present, Who will create these jobs, and have narrowed as standards of what kind of skills will be needed Wage differentials, while ever present, living have increased in those have narrowed as standards of living have to staff them? countries and workers demand increased in foreign countries and workers The answers to these demand more premium wages for their more premium wages for their questions lie in the resurgence skills. skills. Due to higher energy of manufacturing sector costs, the money invested in growth within the U.S., which has been steadily losing transporting the finished or semi-finished goods to the employment within the nation over the past four U.S. have increased appreciably. Finally, the increased decades even though the contribution of manufacturing lead time needed to ship goods from overseas factories to gross national product has not declined appreciably. means that locally more inventory must be held to How did that happen? Productivity improvements buffer against that uncertainty of material not being through technology meant that more work could be available when needed. s c c h a m b e r. n e t |

Taken together, the total cost of ownership of an item purchased from an overseas plant is far more than just the acquisition purchase price. At times, manufacturing locally may not only mitigate supply risks, but also make economic sense, especially when better control can be exercised over the quality and availability of manufactured goods.

With proximity to a major port, business friendly laws and good weather, South Carolina is well-positioned to take advantage of these trends. Major companies like BMW and Boeing have located here in the state for these reasons. However, we need the right skill sets for jobs that could be created by such a manufacturing renaissance in South Carolina. The technical colleges and major research universities in the state can play a vital role in leading the charge and providing the requisite training for a new generation of knowledgebased workers in South Carolina over the next decade.

Dr. Manoj Malhotra is director of the Center for Global Supply Chain and Process Management at the University of South Carolina’s Moore School of Business.

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NLRB proposes faster union elections Eric C. Schwe i t z e r

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n June 22, 2011, the National Labor Relations Board (NLRB) published a proposed rule in the Federal Register which, if implemented, will significantly revise the procedures governing union representation elections, making it easier for unions to win and more difficult for employers to communicate with their employees prior to the vote.

While the proposed rules do not set forth an absolute time limitation between the date of the filing of a union representation election and the date of the election, by eliminating or modifying various procedural steps, the new rules might limit the time to 10-21 days. Currently, elections are normally conducted within about 45 days of the filing of the petition.

Some of the proposed changes include electronic transmission of election petitions, election notices and voter lists. The pre-election hearing to determine who is eligible to vote will begin seven days after a hearing notice is served, absent special circumstances. The parties will be required to state their position regarding the appropriateness of the voting unit no later than the start of the hearing, before any evidence is accepted. No evidence will be allowed if not related to a “genuine issue” as determined by the regional director. Litigation of eligibility issues raised by the parties involving less than 20 percent of the bargaining unit will be deferred until after the election. The parties will only be permitted to seek review of all regional director rulings through a single, post-election request rather than during the hearing. The current pre-election request for review is eliminated. Lastly, the NLRB will have discretion to deny review of post-election rulings, rather than current procedures which require the NLRB to decide most post-election disputes.

The proposed rules would also require employers to provide the union with employee names, phone numbers, email addresses and home addresses within two days of the determination of the appropriate voting unit. The proposal is not clear if the employer would be required to provide the union with employees’ home email addresses or only work email addresses.

Board member Brian Hayes, the sole Republican member of the NLRB, said the majority’s objective is “to stifle full debate on matters that demand it, in furtherance of a belief that employers should have little or no involvement in the resolution of questions concerning representation.”

Hayes added, “There needs to be a more extended comment period and a full opportunity for broad stakeholder input through multiple public hearings on proposed rules of this magnitude.”

As to the rules themselves, Hayes asserted that while some of the rules may seem reasonable, “the whole of proposed reform is much, much more than the sum of its parts and out of all proportion to specific problems with the Board’s current representation casehandling procedures.” He concluded, “What is certain is that the proposed rules will (1) substantially shorten the time between the filing of the petition and the election date and (2) substantially limit the opportunity for full evidentiary hearing or Board review on contested issues involving, among other things, appropriate unit, voter eligibility and election misconduct.

Thus, by administrative fiat in lieu of Congressional action, the Board will impose organized labor’s much sought-after ‘quickie election’ option, a procedure under which elections will be held in 10 to 21 days from the filing of the petition. Make no mistake, the principal purpose for this radical

manipulation of our election process is to minimize, or rather, to effectively eviscerate an employer’s legitimate opportunity to express its views about collective bargaining.”

At the same time as the NLRB proposed the quickie election rules, the U.S. Department of Labor (DOL) proposed significant revisions to its persuader activity reporting rules. The DOL proposes to revise its interpretation of the “advice” exemption to such reporting. By limiting the definition of what activities constitute “advice,” the DOL will greatly expand those circumstances under which reporting of persuader agreements and the disclosure of fees pursuant to such agreements is required. Without going into the details of the DOL proposal, its purpose is to significantly discourage employers from obtaining legal advice regarding union campaigns, and thereby assist unions with their organizing efforts.

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economic drivers

> > L E GA L E N V IR O N M E N T

Eric C. Schweitzer is a shareholder in the firm of Ogletree Deakins and works in their Charleston, S.C. office.

He made formal comments regarding the NLRB proposal on behalf of the Council of Labor Law Equality (COLLE) at the public hearing held in Washington, D.C. on July 18.

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economic drivers

> > D Y N A M I S M / E N T R E P R E N E U RIA L I S M

How IT is transforming the logistics industry Garry Neeves

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eading manufacturers know the importance of effective logistics management. Getting your product to the right place, just-in-time and exactly as the retailer demands is crucial to the bottom line. But how do you squeeze the most reliability and cost-efficiency out of your supply chain? The answer is smart information technology that’s fundamental to success.

Information technology is transforming the logistics industry. It provides actionable data for supply chain improvements, cost efficiencies, on-time performance and customer satisfaction. It supports better methods to streamline business and manage today’s super-charged supply chain with better results. It’s mandatory for supplying mass retailers.

Many systems are used to clearly and instantaneously capture data about a manufacturer’s orders, received and distributed shipments, and inventory status: Real Time Visibility & Online Shipment Tracking Successful manufacturers use it to access complete visibility of distribution status, harness useful data to ensure just-in-time deliveries and vendor compliance, and ensure immediate visibility of shipment status via the web. It should be powerful and easy to use,

feature an advanced dashboard with one-click access to data and allow users to know when electronic files are sent and received.

Complete Electronic Data Interchange (EDI) Services EDI is required by major retailers and saves manufacturers time and money by ensuring the seamless movement of goods. This results in lower administrative costs, automatically reconciled accounts, quick turn-around management reports, immediate compliance with retailers’ mandates and improved customer service.

Automated Transportation Management (ATM) ATM locates the best carrier service and rate package, ships freight and provides detailed, real time shipment tracking information.

Radio Frequency Identification (RFID) RFID is microchip technology placed on a carton or pallet to communicate with a computer allowing the entire journey through the supply chain to become more visible, more productive and highly accurate.

Electronic Bill of Lading Technology This cuts inaccuracies, time and cost out of the supply chain and provides instantaneous online shipment details.

Tier One Warehouse Management System (WMS) This technology provides complete end-to-end supply chain support for real time tracking and visibility of incoming product, shipping and delivery.

Successful manufacturers should make sure they are using these examples of the latest information technology in order to properly serve their clients.

Garry Neeves is vice president of Regal Logistics, a 3PL with more than 40 years experience offering comprehensive services from port to end consumption point.

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September/October 2011

South Carolina must pave the way for better infrastructure Debbie Bass

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Highway Policy Funding in GA, SC and NC

TMCA

enjamin Franklin said, “A great empire, like a great cake, is most easily diminished at the edges.”

State Gas Tax Per Vehicle Sales DOT Employees State Per Capita Per Mile This truism applies to South Carolina’s Gallon Tax Funding Funding Funding Per 100 Miles highways. We have a great highway system, but it has become frayed at the State & Local 29.3¢ $2.72B $281 $151,136 GA 31 No Cap edges. Funding is at the heart of the matter.

3% It has been 25 years since The Drive 32.8¢ $2.93B $307 $36,871 NC 14 No Cap for Tomorrow, an industry-led effort to improve the state’s highway system. As State & Local a result of that campaign in 1987, South 16.75¢ $.65B $141 $15,689 SC 12 $300 Cap Carolina increased its motor fuel user fee from 13 cents per gallon to a meager 16 Carolinas AAA Motor Club, Carolinas AGC and others, have been independently cents per gallon. According to the American Petroleum Institute (API), the national advocating for transportation funding. However, success has been limited at best. average is now 31.2 cents per gallon. There is also a federal fuel tax of 18.4 cents Two major accomplishments have been the creation of the State per gallon. The state of South Carolina currently funds its highway system with the Transportation Infrastructure Bank in 1994 and the creation of the Non-Federal fourth lowest fuel tax in the nation despite two very important facts: Highway Maintenance Fund in 2005. These two actions improved highway funding by ending the diversion of highway user fees, dedicating license and 1. According to the Federal Highway Administration, we have very few registration fees to highways and using a portion of the State Electric Power Tax for locally-maintained roads. We depend on the South Carolina Department highways. However, we are still dependent on the motor fuel user fee for almost of Transportation (SCDOT) to fund and fix three times the normal level of 80 percent of state dollars used for highways. state responsibility.

As the Palmetto State works to rebound from the current economic downturn, overlooking the state’s crumbling transportation system is not an option.

2. We have done very little over the years to diversify our revenue base for Continuing to ignore the need to invest in infrastructure places our ability to highways, meaning we have an over-dependence on motor fuel revenues. compete in peril.

Businesses are increasingly reliant on a safe and reliable transportation We have a high level of state responsibility and a low level of state funding. In system to move materials, goods, people and services efficiently. An efficient fact, according to statistics published by the Federal Highway Administration, our transportation system not only benefits existing businesses, but also is a vital state highway funding is lowest in the nation on a per-mile and per-lane mile basis. ingredient to South Carolina’s economic future. As competition between states This lack of funding shows, as CNBC ranked South Carolina 19th in infrastructure in attracting new and expanding businesses continues to grow, it is vital for and transportation in America’s Top for Business 2011. Georgia and North Carolina states to identify areas in which they have a competitive advantage. An improved were ranked 2nd and 3rd, respectively. To put things into perspective, we need to transportation system can provide that much-needed edge. look no further than our two neighboring states for comparisons.

Newton said, “An object that is not being pushed or pulled by some force will Typically, the greater a state’s responsibility for roads, the greater is its need keep moving in the same direction.” This means that a powerful force will be for state-level funding. In South Carolina, local taxes for roads are minimal needed to make a change in direction with regard to our state’s transportation because most of the roads are in the state system. The state is funding its roads funding policy. I believe that force must come from local leaders and the business as if its responsibility was low. Consequently, road community. maintenance is being deferred, and there is a huge backlog of needed highway improvements.

Debbie Bass is the executive director of the SC Alliance to Fix Business groups, including the South Our Roads – SC FOR. Carolina Alliance to Fix Our Roads – SC FOR, the South Carolina Chamber of Commerce, the South Carolina Trucking Association, the South Carolina Manufacturers Alliance, the

economic drivers

> > I N F RA S T R U C T U R E

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A proving ground for health care innovation Tom Jennings

I M A G E C O U R T E S Y O F N X T H E A LT H

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he concept of establishing a ‘proving ground’ to test new technologies and systems has been around since the early 1900s. The idea originated in the military, but it has since spread to other large industries, such as aerospace engineering and automobile manufacturing. More recently, corporations have started to forge partnerships with academic institutions in an effort to push the proving grounds concept further by combining rigorous university research with industry market expertise and manufacturing capabilities.

For South Carolina, the most widely known example of this type of partnership is Clemson University’s International Center for Automotive Research (CU-ICAR), which operates in conjunction with BMW. There is, however, another rising star in the state that is partnering with Clemson University and using the same methodology to create innovations in health care design—NXT Health.

“CU-ICAR and NXT are both built around the same basic concept, which is that student and The Patient Room Prototype was NXT’s first major project and the creation of a forward-thinking patient room faculty members are able to learn and innovate that could serve as a catalyst for the health care industry. more effectively when they work side-by-side with industry partners,” said Clemson University President James Barker. “These retention. Additionally, significant areas of architectural study were conducted, relationships really benefit our state because innovation happens within that space, including evaluating headwall and bathroom design, assessing the effect of light in that spark between academics and industry. If you are interested in creating levels on patients and developing a technology report for future innovations within knowledge-based jobs and driving the economy of South Carolina forward, the room. Market realization of the Patient Room Prototype in the Village at Pelham you might want to buy stock in all of this because I believe it is going to make a Hospital in Greer, S.C. was completed in 2009, with subsequent studies published tremendous difference.” in an array of scientific and design journals. The room has consistently received NXT’s first major project, in collaboration with Spartanburg Regional Healthcare glowing reviews in patient exit surveys.

System, was the creation of a forward-thinking patient room that could serve “No one else out there is combining environmental design with empirical as a catalyst for the health care industry – the Patient Room Prototype. A core testing and applied knowledge of the health care business like we are,” said team was established that merged NXT’s practicality from 40 years of health care Salley Whitman, executive director of NXT. “Unless you have those three areas facility administration experience with the unique design and research capabilities of expertise in alignment, you cannot achieve innovation that works in the real of Clemson University’s Architecture + Health program. Rather than relying on world.” commercial architects to tell what the latest ‘trends’ in patient rooms are, NXT went In part because of successful outcomes from the Patient Room Prototype, NXT straight to where the real research was happening, which is at the university level. was the recipient of a substantial grant from the U.S. Department of Defense. The David Allison, the leader of Architecture + Health studio, embraced the funding enabled NXT and Clemson to undertake a major redesign of hospital postopportunity to have his graduate students involved in the Patient Room Prototype. occupancy evaluation methodology, as well as to develop the next iteration of the “It was, and continues to be, an incredible opportunity for architecture graduate patient room – Patient Room // 2020. The futuristic design concept won the 2010 students specializing in health care to have a design project that can be prototyped Healthcare Environment Award sponsored by the Center for Health Design and has and tested in a real-world environment,” said Allison. also been published on FastCompany’s Co Design website. Currently, the team is Once the schematic design concepts were set, a full-size mockup of the Patient actively engaging with industry partners in order to develop the project and bring it Room Prototype was constructed in the NXT research lab. The 3,000 square foot to market. facility enabled architects, industrial designers, behavioral scientists and health care practitioners to collaborate together in order to refine, test and validate the design Tom Jennings is the founder and principal of NXT. concepts. Leading companies in the health care industry also began to contribute time and resources to the development of the project, including Hill-Rom, Kohler, Steelcase and Mechoshade.

Under the leadership of Architecture + Health professor Dina Battisto, PhD, human behavioral concepts within the room were rigorously evaluated, including nursing workflow and patient interaction, workload assessment and memory

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economic drivers

>> QUALITY OF LIFE

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> > F E AT U R E

Manufacturing matters: How the S.C. Chamber is working for manufacturers

By Jos ef Kerscher

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s president of BMW Manufacturing Co., I constantly see examples of how manufacturing continues to be a driving force behind South Carolina’s economy.

When I was asked to serve as chairman of the South Carolina Chamber of Commerce’s Manufacturers’ Steering Committee, I quickly said yes because I saw it as an opportunity to work with other manufacturers, large and small, from across the state on improving South Carolina’s manufacturing climate.

During the 2011 legislative session, the Chamber worked closely with the Manufacturers’ Steering Committee, business leaders and legislators on the issues important to manufacturers. A number of key legislative items were successfully passed at the State House that will continue to attract and retain manufacturing jobs in South Carolina.

System, readySC is one of the most experienced workforce training programs in the country, providing customized training for manufacturers who are looking to relocate and expand in South Carolina.

Through coordinated efforts with the state’s 16 technical colleges, readySC’s services have helped numerous manufacturers over the years, including BMW, Boeing and GE. When the readySC funding in this year’s budget was vetoed by the governor, the Chamber urged legislators to override the veto. In the end, $14 million was included in the state budget for funding.

S.C. Department of Commerce Closing Fund The South Carolina Department of Commerce Closing Fund has not been funded for several years. The South Carolina Chamber advocated for funding to be included in this year’s General Fund Budget. The General Assembly funded the Closing Fund at $5 million through the Capital Reserve Fund, overwhelmingly overriding the governor’s veto. The Closing Fund is the South Carolina Department of Commerce’s most flexible tool to close In addition to these victories, deals recruiting business and industry to South Carolina, which are the South Carolina Chamber was a key player behind the primarily high-paying manufacturing jobs. passage of unemployment insurance (UI) tax relief, Regulatory Relief The South Carolina Chamber’s Environmental Technical working closely with Senator Committee (ETC) works to protect the interests of business Hugh Leatherman (Florence) regarding environmental policy, regulation and legislation at and Senator Greg Ryberg the state and federal level. At the request of the ETC, legislation (Aiken) on a scenario signed was drafted to provide regulatory relief to the South Carolina into law by the governor that Department of Health and Environmental Control (DHEC) and provides employers nearly 25 the business community. S.420, legislation sponsored by Senate percent tax relief this year.

President Pro Tempore Glenn McConnell (Charleston), was signed While this and other legislative victories like tort reform continue into law by the governor this year at the urging of the South to improve the business climate for South Carolina manufacturers, Carolina Chamber and allows South Carolina to automatically already the Chamber is traveling the state to meet with business revert back to the previous regulatory standard of federal courts leaders on the issues that must be addressed in 2012. I urge halting the implementation of a federal regulation. This legislation my fellow manufacturers to join us in these discussions so we will prevent manufacturers from being forced to follow more can continue to make manufacturing a vital component of the stringent environmental standards compared to neighboring Palmetto State’s economic success. states. In addition, the Chamber continues to meet with DHEC Josef Kerscher is president of BMW commissioners to eliminate burdensome regulations and to provide Manufacturing Co. and chairman of the the business community’s feedback on trial programs and policy South Carolina Chamber of Commerce’s changes.

Manufacturers’ Steering Committee. readySC™ Funding When the South Carolina Chamber announced its 2011 Competitiveness Agenda, it included an important priority for economic development: securing full funding for readySC™, formerly known as the Center for Accelerated Technology Training (CATT). A division of the South Carolina Technical College

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Hubbell Lighting Corporation

scott muse

September~October 2011 Centerfold

>> CENTERFOLD

| S o u t h C a r o l i n a B u s i n e ss |

September/October 2011

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PHOTO GRA PH BY PAT C RAWFORD

ubbell Lighting President Scott Muse is quick to tell people about his company’s rich history of groundbreaking lighting technology that started in 1888 when founder Harvey Hubbell invented the pull chain socket for Thomas Edison’s light bulb. Before Hubbell’s invention, people had to leave their lights running all the time or go back to the power generation source to turn off lights. Today, more than 120 years after Harvey Hubbell’s company-founding invention, Hubbell Lighting continues to lead the way in lighting innovation, manufacturing products for commercial, industrial, institutional, residential and sports lighting markets.

“We are trying to be the single source supplier – a one-stop shop,” said Muse. “If you are designing a facility, no matter what it is, we want to be able to complete the entire project.”

Bright ideas

>> CENTERFOLD

Bright ideas SCOTT MUSE / Hubbell Lighting

Each year, more than 6,000 guests travel to Greenville to take classes at the Lighting Solutions Center.

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audio-visual equipment, interactive demonstrations of Hubbell Lighting products, an amphitheater outfitted with multimedia webcasting capabilities, a Lighting Solutions Lab and more.

Each year, more than 6,000 guests travel to Greenville to take classes at the Lighting Hubbell Lighting’s headquarters showcase more than 120 Solutions Center, years of lighting products. learning specific solutions to the challenges facing the lighting industry, including daylight harvest design, energy efficiency, light pollution, solid state lighting and life safety (what to do when the lights go out).

The Lighting Solutions Center, along with the entire building, uses fixtures from each brand, with more than 150 different types of fixtures employing a variety of lamp sources. The building also serves as a record of Hubbell Lighting’s long history along with the fascinating histories of the company’s 23 brands (for instance, Kim Lighting started in 1934 by leasing and renting landscape lighting for Hollywood garden parties thrown by movie stars in Southern California).

Hubbell Lighting has made it a mission to educate customers on the costs associated with lighting homes and businesses through its relight/retrofit services.

“What most people don’t know is according to the U.S. Department of Energy, lighting

C ourtsey of H ubbe l l L ighting

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hile water and electricity normally don’t mix well, Georgia Southern recruited Muse as a state champion swimmer in 1975. After graduating in 1979, the Atlanta native was recruited as a sales representative by Thomas and Betts Corporation, a leader in the electrical industry. He went on to serve in numerous management positions at leading electrical and lighting manufacturers, including Midland Ross, American Electric and Thomas Industries. Since 1988, he has specialized in businesses that manufacture lighting products.

In April of 2002, while serving as president and CEO of Lighting Corporation of America (LCA) in Spartanburg, the company was acquired by Hubbell Lighting.

Due to the success Muse was having in South Carolina and the close proximity to the company’s largest manufacturing facility, which is now a major regional distribution center, the decision was made for Hubbell Lighting to move its headquarters to Spartanburg.

In 2007, the company decided to relocate its headquarters to Greenville.

The project would be more than a simple move. Muse didn’t want the new 185,000-square-foot facility to house a typical showroom to display Hubbell Lighting’s products like many of its competitors. Besides, with 23 different lighting companies under the Hubbell Lighting brand, including Thomasville Lighting, Kim Lighting, Progress Lighting and Columbia Lighting, just to name a few, the new building needed to properly showcase the company’s numerous products all under one roof. With a total of 4,000 employees located in 10 states as well as in Canada, Mexico and Puerto Rico, 15 manufacturing plants and eight distribution facilities, Muse realized the new headquarters needed to properly represent all the company had accomplished in lighting manufacturing.

In addition, Muse saw the new facility as an opportunity to address many of the problems faced by lighting experts. As a full-service supplier, Hubbell Lighting gets involved early in the process with architects, electrical engineers and lighting designers. Muse realized the company’s headquarters could serve as a resource for these key customers. His idea led to the creation of the Lighting Solutions Center, a self-contained 25,000-square-foot training facility on the first floor of the new building. The space consists of training rooms equipped with the latest

uses more energy than any other appliance,” said Muse.

“Eighty percent of the buildings in the country today are 30 years or older. If we bring them to the reality of how much energy lighting is using, we can get them a return on that investment in three years through new lighting technology and new controls.”

One innovation Muse is especially proud of is Hubbell Lighting’s new wireless controls. In May, the company unveiled wiHUBB, a secure network of fixture models, occupancy/vacancy sensors, daylight harvesting systems (which allow lights to shut off if sunlight is detected) and switch stations designed for indoor and outdoor lightHubbell Lighting makes a variety of indoor and ing systems. Using an iPad, outdoor lighting with 23 companies under the Hubbell brand. smartphone or other wireless device with Internet access, customers can use wiHUBB to remotely manage a facility’s lighting systems. The technology can be applied to a new installation or a retrofit.

Just as Muse is excited about the future of lighting technology, South Carolina should be equally excited that such an innovative company is located in the state.

The Greenville area has already seen some of the benefits. Since Hubbell Lighting does lighting for sports stadiums, including everything from little league stadiums to indoor and outdoor stadiums and arenas for the professional leagues, the company donated the stadium lighting for the Greenville Drive, a Greenville minor league baseball team. Hubbell Lighting representatives can take clients to a Greenville Drive game to see its stadium lighting in action. Hubbell Lighting also worked on a solid state lighting project that provides lighting for the GreenvilleSpartanburg International Airport.

Looking to the future of the company, sound environmental practices will remain a big focus. Proof of this commitment can be found throughout the four-story, $41 million headquarters in Greenville, with detailed signage proudly displaying how the facility achieved a Silver rating under the LEED (Leadership in Energy and Environmental Design) program of the U.S. Green Building Council.

In addition to saving nearly $150,000 on its annual energy bill, Hubbell cuts costs through water conservation and carbon emissions.

If Harvey Hubbell could walk through Hubbell Lighting’s headquarters today, he’d likely be proud to see how far the manufacturing company has come from the simple but ingenious pull chain socket.

Matthew Gregory is the multimedia coordinator at the South Carolina Chamber of Commerce and editor of South Carolina Business.

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> > F E AT U R E

The future of manufacturing starts here SiMT expands with entrepreneurial incubator

By Jeff McKa y

P hotography courtesy of S I M I

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estled in the heart of Florence, not far from Myrtle Beach, lies the 146-acre campus of the Southeastern Institute of Manufacturing and Technology (SiMT). An entrepreneur’s dream, this state-of-the-art facility offers a host of resources to those looking to develop or grow their business.

The core of the facility is centered on SiMT’s 177,000-square-foot Advanced Manufacturing Center in which one can find rapid prototyping, virtual reality and advanced manufacturing facilities used by companies throughout the U.S. and Canada.

But SiMT is no longer simply a top-notch manufacturing and training facility. In the coming months, the institute will open the doors to its newest and most promising addition: a 27,400-square-foot advanced manufacturing entrepreneurial incubator.

Beyond enabling fledgling business to utilize SiMT’s 21st century tools and products, those who locate their new businesses in the incubator will have access to the services of SiMT supported by engineering, legal and financial experts.

The vision for the entrepreneurial incubator is both grounded and ambitious. SiMT leadership seeks to be able to accommodate more than two dozen entrepreneurs in facilities ranging from a simple cubicle to 1,000-square-feet of office, research and development space.

SiMT’s focus remains on developing the region’s economy. As such, potential tenants interested in setting up shop in SiMT’s entrepreneurial incubator will have to submit a business plan and go through a fast but rigorous review process. This ensures SiMT’s resources are wisely invested and will bestow upon tenants a certain level of legitimacy—a seal of approval of sorts—that will increase their success in finding investors.

As any executive will tell you, a good idea simply is not enough to build a business.

Expertise on a wide range of issues, including those well outside the specific industry focus of the product, is vital to navigating the steps required to take one’s good idea from the drawing board to the market place. SiMT’s entrepreneurial incubator will enable tenants to learn from the experience and utilize the proficiencies of a wide range of experts, thus building the type of stable business foundation new businesses yearn for.

The entrepreneurial incubator will join SiMT’s already impressive features, including its rapid prototyping department that uses the latest technologies enabling entrepreneurs to bring their concept to market at world-class speed. Using liquid resin, powdered plastics/metals and production grade thermoplastics, these systems develop a desired part layer-by-layer, producing a dry, durable and functional prototype.

The Virtual Reality Center (VRC) is the stuff of movies. It is used by companies for sales and marketing, new product development, manufacturing process simulation and employee training. Client applications developed at SiMT may be used on display systems ranging from simple laptop computers to the fully immersive and interactive 10’ EON Icube™ located on site.

As the name implies, SiMT’s Advanced Manufacturing Arena contains top-of-theline manufacturing equipment that has been utilized for both training and product development. This includes CNC, EDM, water-jet, multiple-axis machines, grinders and latest version of CAD CAM, all of which enable businesses to create their own product systems without the investment of time or resources generally associated with such development.

SiMT is often used by companies seeking cost-effective ways to develop or test a product but also offers various training opportunities both for companies seeking to train a workforce and individuals looking for a new career. Both genres of training associated with SiMT’s facilities have seen great success and will only continue to grow.

Prime examples of this success have been the facility’s Power-Up Pee Dee program and Nuclear Regulatory Commission pipe welding, pipe fitting and valve tech

Above: SiMT will open an advanced manufacturing entrepreneurial incubator in the coming months.

Right: Numerous companies use the Manufacturing Arena’s advanced machines.

programs. These programs combined have trained more than 800 individuals who now have the skills necessary to take high-paying, highly-skilled jobs in the power industry throughout the Southeast.

Ultimately, SiMT exists for one primary purpose: to bring jobs to our region. It is for that reason that the North Eastern Strategic Alliance (NESA) has been such a proponent of the facility and on many occasions highlights it when pitching potential employers.

When we do so, our audience’s reaction is nearly uniform, as they are impressed by the SiMT’s size, scope and potential. The facility represents a potential cost savings for a host of businesses, and that factors into their location selection.

In the manufacturing world, one often hears about the four pillars of success: technology, training, research and development and manpower. Each one is vital to a company’s success, and as a result, business executives and site selection consultants often view a potential investment through a prism that focuses on these four elements of success. As economic developers, we are able to show these decision makers that they can find all four pillars under one roof at SiMT.

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Jeff McKay is the executive director of the North Eastern Strategic Alliance (NESA), a regional economic development organization that serves a nine-county region in the northeast corner of South Carolina.

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> > F E AT U R E

One week, a lifetime of lessons

By Robbie Ba r n e t t

O

The 2011 Business Week Class

n a humid evening in July, 185 young people gathered in an auditorium. A group of bright-eyed students took the stage to perform a carefully choreographed dance number. They were followed by a student who did an interpretive dance to much applause. The entire room then sang along with a young man as he played the piano.

While Talent Night was a great way for the students to get to know one another and unwind at the end of the day, they knew the next day would be filled with make-or-break decisions about their mock companies, listening to guest speakers from leading businesses and taking classes on a variety of business-related subjects. In other words, it was just another day at South Carolina Business Week, the annual business camp held every summer at Presbyterian College where top-performing high school students from around the state gather to learn the ins and outs of the business world. This year, Business Week was held July 10-15.

The mission of South Carolina Business Week is to contribute to the preparation of young adults for the business environment by introducing them to the principles of leadership, teamwork and the American free enterprise system while promoting self-reliance, individual responsibility and entrepreneurship.

“A lot of the students who come here know very little about want they want to do in life and even less about the business world. Yet year after year, we watch students leave Business Week a lot more knowledge-

able and certain about their future,” said Darrell Scott, vice president of public policy and communications at the South Carolina Chamber of Commerce, which organizes the annual business camp.

Each year, Scott and business executives loaned from some of South Carolina’s most prestigious companies serve as company advisors of mock manufacturing and retail companies students form during the week. Students are charged with making real-world business decisions about profits, revenue, advertising and marketing, the supply chain and more, with plenty of ethical decisions thrown in along the way. Their decisions are tested in a computer simulation that enables students to understand the gravity of the decisions business leaders must make every day.

“It was inspirational because I want to own my own business. Leadership is a large part of owning your own business, so this has been a helpful experience for me,” said Cory Freeman, a rising senior at Irmo High School who attended Business Week for the first time this year.

Other students, like Amber Morgan, a rising senior at Aynor High School, not only prepare for the business world but also get ready for college by spending their first week away from home. Living on the campus of Presbyterian College for a week and making new friends from across the state is a life-changing experience for the students. Many parents, including Kerri McMillan, whose son, Grant, attended Business Week for the first time this year, see a change in their children

as soon as they come home at the end of the week.

McMillan said Grant is already talking about applying to attend next year’s Business Week. In fact, many Business Week graduates come back as volunteers once they enter college.

The business community understands the benefit of Business Week, as many companies allow their employees to spend a week out of the office so they can help educate the future workforce about the business world. Bill Harmon, director of Colonial Life’s Underwriting Department, has been a longtime volunteer, serving as a company advisor.

“For me, it is a way of giving back to South Carolina.

I see the benefit of South Carolina Business Week to shaping the minds of our state’s best students and future leaders,” said Harmon. “Sharing my own personal and professional experience with attendees allows them to hear from a business leader who speaks from a real-world perspective about leadership, business and entrepreneurship.”

During this year’s Business Week, students were visited by Melody Birmingham-Byrd of Progress Energy and State Superintendent of Education Dr. Mick Zais.

Plans are already underway for the 29th annual Business Week, being held next July. For a full list of 2011 Business Week company advisors and sponsors, visit www.scbusinessweek.com.

S C C C S taff

Robbie Barnett is associate vice president of workforce, education and manufacturing policy at the South Carolina Chamber.

To find out how your business can get involved with Business Week, contact Barnett at 803-255-2625 or robbie.barnett@scchamber. net.

During Junk Night, students turn common objects into valuable products.

State Superintendent Dr. Mick Zais addresses students.

Bill Harmon with Colonial Life (back left) poses with the mock company he advised.

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Grassroots Meetings identify legislative priorities

By Julie Scott

Midlands business leaders gather to review the 2011 legislative session and discuss priorities for 2012.

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embers of the South Carolina Chamber of Commerce and local area chambers of commerce from across the state are already preparing for a successful 2012 legislative session to continue the mission to improve South Carolina’s business climate and global competitiveness. Since this important policy-changing work begins at home, at the grassroots level, the South Carolina Chamber travels the state each year to hear from hundreds of employers about the issues impacting their business.

Ten Grassroots Regional Meetings serve as open-forum sessions and are one of the first steps in creating the Competitiveness Agenda, the business community’s annual list of legislative priorities. With the support of local chambers of commerce across the state, the meetings have continued to grow. Once issues are defined and strategies are developed, the Chamber works with legislative officials to create an environment that will improve the business climate in South Carolina. In 2011, more than 25 local chambers of commerce endorsed the Competitiveness Agenda, strengthening the business community’s voice at the State House.

Comprehensive tax reform outh Carolina business leaders across the state are united that comprehensive tax reform must be achieved to compete with other states. As a percentage, South Carolina businesses pay some of the highest state and local taxes compared with competing states.

In fact, manufacturing companies in South

Carolina pay the nation’s highest property taxes. South Carolina employers continue to call for restoring balance and predictability in the state tax system. Business leaders want to move South Carolina towards a more prosperous future by creating highpaying jobs, but tax reform must be a central focus of the state’s political leadership.

Workforce development usiness leaders say attention to education and workforce development must remain a top priority. While the state has made strides in education, to make South Carolina as attractive as possible to global industry, continued focus on skilled and well-educated citizens is paramount to competing fully in the worldwide economy.

Business leaders continue to call for support of initiatives that work, like the Education and Economic Development Act (EEDA), now known as Personal Pathways to Success, and the state’s technical college system. Additionally, business leaders around the state say special attention must focus on early childhood education initiatives, which include

B

S.C. Chamber President and CEO Otis Rawl provides a legislative recap.

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Members at the Coastal meeting hold a roundtable discussion of issues.

S C C C S TA F F

S

third grade reading proficiency.

Infrastructure ncreased attention to the state’s infrastructure, including dedicated funding for roads a n d b r i d g e s , i s Greater Columbia President a t o p p r i o r i t y . Chamber and CEO Ike McLeese Business leaders also moderates the Midlands meeting. recognize the South Carolina State Port Authority’s economic impact and potential and want to see expansion efforts move forward before the widening of the Panama Canal is completed and provides increased opportunities for the state. Infrastructure to support the port system, including expansion of the Interstate system, is of great importance to the state. And, while millions of tourists visit South Carolina each year, contributing greatly to the state’s coffers, sound and safe infrastructure must keep up with tourism demands.

I

Federal priorities usiness leaders believe current and potential actions at the federal level could have enormous impacts on South Carolina. Labor issues, including protecting South Carolina’s right-to-work status, were top priorities across the state. After the 2010 passage of the Patient Protection and Affordable Care Act, business leaders continue to be concerned about rising health care costs at the federal and state levels and encourage continued focus on cost reduction measures. Additionally, business leaders want attention focused on business negative regulations and compliance issues at the federal level, especially relating to environment and energy policies. A focus on economic development in policy decisions is of great importance to business leaders in South Carolina.

B

Time and again, the business community has seen the power of a unified grassroots network in pushing through vital issues and halting those that are harmful to the state’s business climate. For a complete summary of issues heard at the annual Grassroots Regional Meetings, visit www.scchamber.net.

Julie Scott is the associate vice president of communications at the South Carolina Chamber of Commerce.

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here are two predominant fallacies related to health care costs that need to be debunked:

Employers cannot control their health care costs.

Employers do have the ability to control health care costs. In order to do this, employers must have data transparency enabling them to execute the specific programs to manage chronic disease and prevent acute conditions. According to Pharmerit North America, a well-managed diabetic condition costs $5,500 per year, while a poorly managed condition costs $9,000 per year. The direct medical costs associated with screening and early detection of cancer are dwarfed by the costs associated with late stage cancer. The American Cancer Society estimates that less than 60 percent of recommended screenings are accomplished.

Data will allow the employer to implement the programs needed to change behavior.

Negotiated discounts with providers are everything.

According to the American Diabetes Association, heart disease, cancer, stroke, chronic obstructive pulmonary disease (COPD) and diabetes account for 75 percent of the costs in the system. A well-managed chronic illness greatly reduces the frequency of provider encounters, causing discounts to lose their relevance.

The mid-sized employer (approximately 50-400 employees) has three obstacles to overcome to achieve control of health care costs.

1. They do not have enough scale to lend actuarial credibility in predicting future losses.

2. They need information transparency and data in order to establish and execute quality wellness and disease management programs.

3. They need a financing mechanism that will allow them to receive the maximum financial benefit from their wellness and disease management programs.

Self-insured plans overcome all of these obstacles. They have data transparency used to facilitate change, and the company receives the financial benefit of reduced costs. They have the size and financial strength to control their destiny. The mid-sized company needs to have a way to obtain the benefits of being self-insured without the size to accomplish this individually.

There are two actions needed to reap the advantages of being self-insured: 1. A group of five to 15 mid-size employers form a group captive insurance company with a minimum of 1000+ insured employees. The employers will own the captive. Each employer can have their own plan design. Liability to the employer is capped. There will be complete data and cost transparency in the captive (HIPAA compliance is maintained). All financial savings and captive profits will benefit the employer owners of the captive.

2. The lesson learned with workers’ compensation was that employers can reduce their costs by implementing sound loss prevention and claims management systems. The same results can be achieved with employee health through: • Wellness programs–preventing the claim from occurring.

• Disease management system–managing chronic illness.

• Case management–managing acute, more complex conditions.

• Utilization management–managing the appropriate utilization of resources.

• Incentive programs–managing the behavior of the employees to maintain a healthy condition.

First Carolina Risk Management and its partner, Berkley Accident and Health, have helped implement seven captive programs in other states. The highest percentage of savings achieved has been 26 percent, with the lowest percentage at 4 percent.

James H. “Jed” Suddeth Jr. MBA, CIC, CRM is president of First Carolina Risk Management Advisors in North Charleston.

> > B U S I N E S S B RI E F S

M

ichelin North America Chairman and President Richard “Dick” Wilkerson will retire from his role by the end of this year, the Michelin Group has announced.

Wilkerson will become chairman Wilkerson emeritus of Michelin North America upon his retirement.

“Dick has demonstrated exemplary leadership throughout his career at Michelin,” said Jean-Dominique Senard, managing general partner of the Michelin Group.

“Most recently, he helped guide Michelin North America to record results in spite of the economic recession. Michelin North America is emerging from this extremely difficult time even stronger than before and with the satisfaction of knowing that no employee lost a job at Michelin because of the economy. To recognize his contribution, we are naming Dick to the newly created role of chairman emeritus of Michelin North America upon his retirement.”

Wilkerson, a 31-year veteran of the company, has been in his current role since August 2008. During his tenure as chairman and president, Michelin North America became the largest tire maker in North America by sales and has remained the most profitable tire maker in North America for seven consecutive years.

Wilkerson also led the creation of major community programs, including Michelin Development in East Alabama and Upstate South Carolina and Michelin Challenge Education.

Pete Selleck, currently president of Michelin Truck Tires worldwide, will return to Greenville, S.C. from Michelin’s global headquarters in Clermont-Ferrand, France to succeed Wilkerson.

S.C. ports post strong fiscal year 2011 results

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hipping volume through South Carolina ports increased across all business segments in fiscal year 2011.

Container volume through the Port of Charleston rose 8.3 percent in the fiscal year that ended June 30, with 1.38 million 20-foot equivalent units (TEUs) handled.

South Carolina’s non-container cargo segment increased 32.3 percent, demonstrating success in steps to diversify the state’s port business. Breakbulk tons in Charleston and Georgetown totaled 991,705 tons for the year, with growth in vehicles, project cargo, heavy lift, bulk and traditional breakbulk cargoes.

“These results show the confidence our customers place in the Ports of Charleston and Georgetown, and it means jobs at a time we could really use them,” said Jim Newsome, president & CEO of the South Carolina Ports Authority (SCPA).

At a regular monthly board meeting, Newsome highlighted other strategic accomplishments for the year, including: • Extended South Carolina’s overweight permit limit to 100,000 pounds gross vehicle weight for all shipping containers.

• Expanded on-site and off-terminal trans-loading capabilities for export products to serve China and other major world markets.

SBA grant provides local business tools along I-95 Corridor

Congressman Clyburn, Senator Graham to receive 2011 Global Vision Award

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he Columbia World Affairs Council has named South Carolina’s two senior statesmen as its Global Vision Award recipients for 2011.

Congressman Jim Clyburn and Senator Lindsey Graham will be honored at a black-tie gala on Monday, October 10 at the Columbia Marriott. This is the 18th year the Columbia World Affairs Council has presented the award to those whose vision has had a significant impact on South Carolina and helped project the state globally.

The accelerated deployment of container ships too big for the Panama Canal, including four a week already in Charleston, underscores the national need for a true post-Panamax harbor in the Southeast region. In July, Charleston hosted its first 9,200-TEU ship and routinely handles large ships actually drafting up to 48 feet.

John Otten, CPA Manufacturing & Distribution Practice Chair

E

CI-Find New Markets is looking to help companies along the I-95 Corridor identify new markets to strengthen their business and create or sustain jobs. ECI received a grant through the Small Business Administration to work with 10 companies along the I-95 corridor to strengthen or develop their business. The grant was provided through support from Rep. Jim Clyburn, whose 6th Congressional District includes many of the counties along the I-95 Corridor.

In addition to market research, ECI also will provide technical assistance to additional companies where possible and refer companies to other resource providers that can help them with a range of challenges from business plans to export markets. The grant does not require any matching funds from the company and is not limited to manufacturing companies.

For more information, contact Fred Monk, president of ECI-Find New Markets, at 803-255-2623.

• Completed a $22-million capital project to transform Columbus Street Terminal into a premier rolling stock, breakbulk and project cargo terminal.

• Consolidated container operations and harmonized gate operations under one simplified structure, increasing efficiency.

• Furthered design of a new cruise terminal to open in 2013.

• Advanced the next-generation Charleston Harbor Deepening project.

From inventory to export, we assemble financial solutions for Manufacturing & Distribution.

Since 1925, manufacturing and distribution clients have depended on Elliott Davis and its experienced team of advisors. From benchmarking and cost controls to capital expenditures and international interests, we understand all facets of the industry, aiming to make a deep, vertical impact on your organization. Elliott Davis is a member of the CPA Manufacturing Services Association, a nationwide association of CPA firms specifically selected for their experience in and commitment to serving the manufacturing industry.

fully engaged: for you South Carolina • North Carolina • Georgia • Virginia www.elliottdavis.com

© 2011 Elliott Davis LLC © 2011 Elliott Davis PLLC

Dick Wilkerson to retire from Michelin North America

200 East Broad Street • Greenville, SC 29601 • 864.242.3370

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UPCOMING EVENTS

>> UPCOMING EVENTS

Giving manufacturing the proper perspective

By Craig Lundgren

“D

addy, where did this come from?” my six-year-old daughter asked holding her toy up for me to see.

“It was a gift from your grandmama,” I explained.

“No, Daddy. Where was it made?” she patiently inquired.

I stalled as I began to search the toy for some indication of its manufacturing origin. “China.”

“Are all things made in China?”

“No,” I laughed as I explained further, “Things are made everywhere. In fact, many things are made here in South Carolina.”

“Really? Like what?” she asked, fixing me with an intense look of interest and curiosity.

And so we began an animated conversation about the wonders of manufacturing, international trade and logistics—using all the props we could find on her bedroom floor to help illustrate. Given the literal workings of her six-year-old mind, I am sure she now believes all trade is dominated by Ni Hao, Kai-Lan, Hello Kitty and Barbie.

Given the national and world headlines, it is

important for all of us in South Carolina to be having a conversation about manufacturing and its impact on our economy. Manufacturing is leading us out of the recession, and there are many positive signs of a rebirth of manufacturing in the U.S. In South Carolina, direct manufacturing employment represents 13 percent of total state employment. According to the South Carolina Department of Employment and Workforce, manufacturing employment has increased more than 3.6 percent since June 2010, adding 7,600 new jobs.

Considering that each manufacturing job creates or supports, on average, four non-manufacturing jobs, and that the average annual wage for manufacturing is almost 25 percent higher than the state’s nonmanufacturing average, this represents a tremendous positive economic impact to the state.

Direct foreign investment and significant increases in exports have contributed greatly to the growth of manufacturing in South Carolina. However, in order for manufacturing to continue to grow and be competitive, a number of challenges need to be addressed. A recent study conducted by the U.S.

Council on Competitiveness noted that manufacturing CEOs are particularly concerned about: talent and workforce education; innovation and technology; energy; raw materials; legal, tax and regulatory reform; and infrastructure.

To address these issues, the South Carolina Chamber of Commerce will be hosting its 2nd Annual Manufacturers Conference: International Manufacturing—South Carolina’s Worldwide Reach, on Hilton Head Island December 7-9. In addition to top level presentations, this conference will provide a forum through which South Carolina’s manufacturing community can have real dialogue about South Carolina’s competitive position. More information about the conference can be found at www.scchamber.net.

Craig Lundgren is an attorney with Dixon Hughes Goodman LLP.

Starbucks leader announced as Diversity Awards Dinner keynote speaker

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he keynote speaker for the 7th Annual Excellence in Workplace Diversity Awards Dinner, October 18 at the Embassy Suites Hotel in Columbia, is Diane Lin, director of procurement for Starbucks Corporation. The Starbucks mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. As director of procurement, Lin drives the Starbucks mission by championing the creation of a supply base as diverse as the partners (employees), customers and neighborhoods it serves. She will speak about how Starbucks has implemented supplier diversity as a key strategic business decision.

One of Lin’s top priorities is educating suppliers on how to do business with Starbucks. She has been a speaker at minority and women-owned business events and coaches potential suppliers on how to successfully navigate Starbucks. Lin serves on the board of directors of the Northwest Minority Supplier Development Council (NWMSDC) and is a member of NWMSDC planning committees. Lin serves as the chairperson for the Starbucks Supply Chain Operations Diversity Committee and is a member of the S.C. Federal Credit Union, 2010 Workplace Diversity Award winners for the Small Business category.

Starbucks Community Committee.

In addition to the keynote, all nominees and winners of the 2011 awards will be recognized during the dinner. Event sponsorships are still available. Please contact Tish Anderson, associate vice president of programs and events, at tish.anderson@ scchamber.net or 803-255-2627. To learn more, visit at www.scchamber.net.

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September/October 2011

2011 Membership and Legislative Receptions The South Carolina Chamber of Commerce held its annual Membership & Legislative Receptions in four regions around the state: the Lowcountry (The College Center at the Complex for Economic Development at Trident Technical College), the Midlands (The Tower at 1301 Gervais), the Pee Dee (Osbornes) and the Upstate (BMW Zentrum). The South Carolina Chamber would like to give special recognition to the platinum sponsors of all four reception locations: Bank of America, BlueCross BlueShield of South Carolina and Ogletree, Deakins, Nash Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices).

Midlands members network at the Tower at 1301 Gervais, which houses the Chamber’s new office.

Senator John Courson chats with guests at the Midlands Reception.

Pee Dee members network at Osbornes Inc. in Florence.

Midlands members attend a Grassroots Meeting to unite the business community and legislators in developing legislative priorities.

AFTER THE EVENT

>> AFTER THE EVENT

Members pose for a photo at the Lowcountry Reception.

Representative Joan Brady and Doug Bridges of Coldwell Banker United attend the Midlands Reception.

S.C. Chamber President and CEO Otis Rawl talks with Carl Blackstone and Jim Burns at the Upstate Reception.

Upstate members gather at the BMW Zentrum.

S.C. Superintendent of Education Dr. Mick Zais, InterTech Group Inc. President and Chairwoman Anita Zucker and Total Comfort Solutions President Jim Reynolds attend the Lowcountry Reception.

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>> UPCOMING EVENT

Save the date for the 32nd Annual Summit

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he South Carolina Chamber of Commerce’s annual meeting and premier gathering of the state’s business leaders is November 9-11, 2011 at Wild Dunes Resort. The 32nd Annual Summit, presented by Ogletree, Deakins,

Nash, Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices), is your opportunity to network with hundreds of the state’s business leaders as we celebrate our successes and discuss goals for our future. The theme for this year’s meeting is Fast Forward: Defining the Next Decade. More information regarding the agenda,

the 2011 honorees and the keynote speaker will be announced very soon. Only a few exclusive sponsorship opportunities remain. For more information, please contact Tish Anderson, associate vice president of programs and events, at tish.anderson@ scchamber.net or 803-255-2627. To learn more, visit www.scchamber.net, and click on the 32nd Annual Summit under “Events & Seminars” and “Calendar of Events.”

Above – 2010 Annual Summit attendees networking during the reception.

Right – Dick Wilkerson, chairman and president of Michelin North America and chairman of the S.C. Chamber Board of Directors.

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September/October 2011

B a con

Bazemore

Beckham

Bryant

Burton

Connell

Compiled by Matthew Gregory (Send publicity photos to: matthew.gregory@ scchamber.net.)

K o li

McKne w

Piekutowski

AFL executive management and AFL United Way campaign ambassadors presented a check for $90,000 to Kathy Dunleavy, president and CEO of United Way of the Piedmont, and Monica Cothran, campaign director. This year’s United Way campaign at AFL netted an increase of 33 percent in employee contributions and a 42 percent increase in company-wide contributions over the previous year.

AT&T has announced the appointment of Laurent Therivel as vice president and general manager of Mobility & Consumer Markets for North Carolina and South Carolina.

CBL & Associates Properties Inc. (CBL) recently selected The Brandon Agency to provide media planning and buying services for 75 malls and shopping centers in 25 states. The scope of services the agency will provide CBL includes guerilla advertising, Facebook pay-per-click, media planning, media buying and media placement in print, broadcast, cable, radio and Internet media outlets.

The Carolinas Association of Chamber of Commerce Executives (CACCE) has recognized top chamber executives at its Annual Management Conference in Pinehurst, N.C. Liz Horton from the Kershaw County Chamber of Commerce was honored as the recipient of the prestigious award from South Carolina.

Michelle Piekutowski of Clemson has been named interim chief human resources officer at Clemson University for a two-year term. Neil Burton has been named executive director of the Michelin Career Center and Cooperative Education Program at Clemson University.

Ken Carrick Jr., president of Coleman Lew & Associates Inc., an international retained executive search firm, has announced the appointment of Laura C. Thomas as a search consultant for the company.

Collins & Lacy P.C. shareholder Jack D. Griffeth has been named president-elect of the South Carolina Bar Foundation Board of Directors. Michael Pitts has joined the firm’s Greenville office as a shareholder practicing in employment and labor law.

Morgan “Mo” Denny has been named chief financial officer of Dennis Corporation. Denny will oversee the day-to-day operations of the accounting department, including financial management, accounts receivable, accounts payable, monthly financial statements, payroll and human resources.

Elliott Davis LLC, one of the largest accounting, tax and consulting services firms in the Southeast, is pleased to announce the expansion of its international practice. Recent hires include Eric Schmid, an international assurance shareholder with more than 20 years of public accounting experience, who will be located in the firm’s headquarters in Greenville, S.C. L. Franklin Elmore, Mason A. Goldsmith Jr., Kimila L. Wooten, Leslie D. Sullivan and Bryan P. Kelley are pleased to announce the formation of Elmore Goldsmith Attorneys at Law. The Greenville practice focuses in the areas of construction law, surety law and complex litigation throughout the Southeast.

Erwin-Penland (EP) has hired Brandee Ellis as a junior account executive and promoted Jeff Henry to account supervisor and Laura Sasser to account executive. In addition, EP has hired Hunter Hendrick as a broadcast production assistant and promoted Callie Davenport to senior account executive, Whitney Howell to account executive and Jennafer Milliman to billing supervisor.

Sharon W. Bryant, regional executive vice president for First Citizens’ Central South Carolina region, director of the bank’s Wealth Advisory Group and president of

Fowler

Halkowitz

First Citizens Securities, the company’s in-house brokerage firm in Columbia, S.C., has been installed as the 111th chairman of the South Carolina Bankers Association for the 2011-2012 fiscal year.

Force Protection Industries Inc. has received two awards totaling $71.3 million. The first award is a firm fixed price modification totaling $63.8 million from U.S. Army Contracting Command for delivery of 56 Buffalo Mine Protected Clearance Vehicles. The second award is a $7.5 million firm-fixed-price modification for a six-month renewal of 55 Field Service Representatives (FSRs) to conduct general maintenance and upgrade operations on Mine Resistant Ambush Protected (MRAP) vehicles.

Goodwill Industries of Lower South Carolina has been recognized with a 1773 Chamber Award from the Charleston Metro Chamber of Commerce. The award recognizes Goodwill for excellence in Retail and Wholesale Trade. Goodwill, a 501(c)3 not-for-profit agency, puts 90 percent of every dollar earned in its retail stores towards mission services that put people to work.

Grubb & Ellis | Wilson Kibler has been selected by CoStar Group, commercial real estate’s leading independent research firm, to receive a CoStar Power Broker Award. Additionally, Julian Wilson and Alan Moyd, CCIM, SIOR have been recognized as a CoStar Power Brokers.

Henry “Hank” Beckham has joined Grubb & Ellis | Wilson Kibler’s Transaction Services Group.

Kestrel Horizons LLC has been awarded one of the Charleston Metro Chamber of Commerce’s 1773 Awards. Kestrel received the Scientific / Technical Services award.

Dr. Viday Avinash Koli will join the staff of Mid Carolina Internal Medicine, a physician practice that is part of Lexington Medical Center’s network. Janice Bacon, MD has joined Lexington Medical Center’s staff as an OB/Gyn at Women’s Health & Diagnostic Center, a physician practice in the hospital’s network.

Janet Brooks Holmes and Peter Leventis IV have been named partners in McKay, Cauthen, Settana & Stubley P.A. Firm partner Daniel R. Settana Jr. has been selected to serve on the

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Holmes

Kennedy

Welcome, New Members

MEMBER NEWS

>> MEMBER NEWS

Black River Electric Cooperative Sumter Carolina Ingredients Rock Hill Collum’s Lumber Products LLC Allendale Dodgeland of Columbia Inc. Columbia E2 Consulting Engineers Inc. Aiken Fuss and O’Neill Columbia Hospitality America Greenville Interior Plantscapes LLC Greenville Junior Achievement of Central South Carolina Inc. Columbia Mankiewicz Coatings LLC Charleston McGrew Woodwork Columbia Michael Hollings, Attorney Charleston Myrtle Beach Regional Economic Development Corporation Conway Prestage Farms Camden The Willcox Aiken Trucking Substantive Law Committee for the South Carolina Defense Trial Attorneys’ Association.

Michelin has chosen the College of Charleston School of Business to deliver the Michelin North America Logistics Professional Development Online Program, a comprehensive logistics professional development online program for business, education and government entities seeking to operate in South Carolina or use the Port of Charleston. In addition, Michelin North America received the Rose Award from Michael C. Fina, a provider of global

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>> MEMBER NEWS employee recognition programs and solutions. The award celebrates best practices in employee recognition and recognizes companies who engage their employees by fostering a culture of pride, integrity and respect.

CoStar awarded seven NAI Avant brokers Top Leasing and Sales Awards for year-end 2010. Mac Fanning, Laura Kovacich, Cam Kreps, Paul Hartley, SIOR, Jeff Hein, SIOR, Macon Lovelace and Nick Stomski were recognized as 2010 Columbia CoStar Power Brokers.

NAI Avant is pleased to announce the addition of Thomas Otis, CCIM to its Brokerage Group in Charleston. Nancy Hoffman and Kaitlyn Mills have joined the Columbia office.

Sara Pendarvis Bazemore has joined Nelson Mullins Riley & Scarborough’s Myrtle Beach office as an associate. She practices in the areas of administrative and regulatory law and environmental litigation. J. Benjamin Connell has joined Nelson Mullins’ Charleston office as an associate practicing in the area of litigation.

For the ninth consecutive rating period, Providence Heart & Vascular Institute has received a three-star rating from the Society of Thoracic Surgeons (STS), which denotes the highest category of quality. The rating places Providence Heart and Vascular Institute among the top 10 percent of 1,000 heart programs in the nation. Providence has received the three-star rating since the inception of the comprehensive rating system developed

by STS in 2006 that allows for comparisons regarding the quality of cardiac surgery among hospitals in the U.S. Scott and Company LLP is pleased to announce that Chris Halkowitz, CPA has been promoted to in-charge accountant, Assurance and Advisory Services, in its Columbia office. Cynthia Saunders, CPA has met the licensure requirements and been approved by the South Carolina Board of Accountancy to practice as a Certified Public Accountant. She has also been promoted to in-charge accountant, Assurance and Advisory Services.

Smith Moore Leatherwood attorney Tami McKnew has been appointed to serve on The Nature Conservancy’s Board of Trustees for the South Carolina chapter.

The South Carolina Ports Authority (SCPA) has hired Kara Ramsey as manager of cargo sales for the organization, which owns and operates ports in Charleston and Georgetown.

Ramsey will develop cargo accounts through the recruitment of long-term port users to the state, focusing on distribution centers and manufacturing operations.

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Steve West, 20-year veteran of the Upstate’s economic development success, has joined the South Carolina Technology & Aviation Center (SCTAC) Board of Directors. West, economic development manager at Duke Power Company, was appointed by the Greenville County Council.

Southeastern Freight Lines, a regional less-than-truckload (LTL) transportation services provider, has received the BASF 2010 LTL Carrier of the Year Award for demonstrating excellence in transportation. In 2010 Southeastern delivered 20,000 shipments to BASF, the world’s leading chemical company.

Spartanburg Water has received a national award for maintaining the Directors Award of recognition from the Partnership for Safe Water, a national volunteer initiative developed by the U.S. Environmental Protection Agency (EPA) and other water organizations representing water suppliers striving to provide their communities with drinking water quality that surpasses the required federal standards. Spartanburg Water has maintained the Directors Award for 10 years.

Turner Padget Graham & Laney P.A. is pleased to announce that Catherine H. Kennedy has been elected chair of the Probate, Estate Planning and Trust Law Section of the South Carolina Bar. Elaine H. Fowler has been elected to serve as chair of the Leadership Development Committee of the Charleston Regional Development Alliance (CRDA) for FY 2011-2012 and will be serving on the Executive Committee of CRDA as chair of that committee. Shareholder Eric K. Englebardt has been unanimously elected to a two-year term on the board of directors of the Upstate Mediation Center. Shareholder Ed Lawson has been appointed by Governor Nikki Haley and confirmed by the state Senate to serve a four-year term on the South Carolina State Athletic Commission.

Ray Tanner, head coach of the University of South Carolina’s back-toback NCAA National Champion baseball team, has been selected as the Greater Columbia Chamber of Commerce 2011 Ambassador of the Year. With the ambassador selection, Tanner will be recognized for his work with the university, USA Baseball and his personal foundation, which has brought national and prestigious recognition to the entire Greater Columbia region.

Events Calendar

ADVERTISER INDEX

September 13, 2011 Manufacturer of the Year Awards Luncheon Columbia

AFL Communications......................................13

September 20, 2011 Executive Committee Meeting Columbia Board of Directors Meeting Columbia Safety, Health & Security Committee Columbia September 21, 2011 Quality Forum Columbia

Alliance...........................................................20 Bank of America...............................................6 Best Places to Work.........................................30 Business Speaks..............................................30 BMW..............................................................22 CCC Group.......................................................8 Collins & Lacy..................................................26 Constangy Brooks & Smith LLP.......................20 Duke Energy...................................................10 Economic Development Partnership...............22 Elliott Davis......................................................27 Greenville Hospital.................. Inside Back Cover

September 22, 2011 Excellence in Education Council Columbia October 4, 2011 Best Places to Work in South Carolina Columbia October 7, 2011 Environmental Technical Committee Columbia October 12, 2011 Small Business Committee Columbia October 18, 2011 7th Annual Excellence in Workplace Diversity Awards Dinner Columbia October 19, 2011 Quality Forum Columbia October 27, 2011 PR Advisory Committee Columbia

32nd Annual Summit November 9-11, 2011 Wild Dunes Resort

FOR ADDITIONAL EVENTS LOG ON TO WWW.SCCHAMBER.NET

September/October 2011

Alcoa Mt. Holly................................. Back Cover

Haynsworth Sinkler Boyd P.A............................1 North Eastern Strategic Alliance......................26 Orkin...............................................................12 Santee Cooper................................................19 SCRA..............................................................25 Sonoco..............................................................4 Stäubli.....................................Inside Front Cover

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