2016 Upstate SC Alliance Annual Report

2016 ANNUAL REPORT the only constant is change

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A MESSAGE FROM THE UPSTATE SC ALLIANCE Within Upstate South Carolina, 2016 represented another year of great success, with 67 companies announcing more than $1.8 billion in capital investment and creating 5,396 new jobs for our region’s residents. This can be attributed to the team effort that exists between the counties and cities in our region, the S.C. Department of Commerce, and the Upstate SC Alliance working towards one goal: improving the economy of our region.

While these numbers are a strong sign of economic life in our area, we also acknowledge that, to be successful, our region must respond to rapid structural change and adapt to disruptive trends in economic development.

First, increased production efficiencies and automation have increased American output capabilities exponentially since 1980, when 25 workers contributed to each $1 million in output. Today, only five employees are needed to produce the same amount. Second, major projects with more than $1 million in investment and more than 50 jobs declined 50 percent from 2000-2012. Last year, the majority of jobs announced were created by foreign-owned companies, and foreign investment accounted for a whopping 73 percent of capital investment. The strength of international companies within the Upstate is both a beacon of our economic times and a source of pride. As an organization, we continue to focus and ramp up our efforts in international markets.

continue as an economic development leader, we must meet these shifts and be on the cutting edge.

We are pleased to present our strategic plan at the 2017 Annual Meeting, and a summary is contained within this report. The plan builds upon many of the programs we’ve initiated in recent years, and it hones and expands our role to build the region. We will continue to be the regional marketing organization that recruits new business and industry into the area. However, we will bolster these efforts through cluster building, enhanced global engagement, thought leadership, and more robust research.

We are proud of our region’s collaborative work in economic development, our steps to become a more globally competitive region, and our ongoing conversations with domestic and international businesses who are interested in doing business in the Southeast. We are optimistic these victories will continue in 2017 and beyond. The success of the Strategic Plan is incumbent upon engagement from investors from all sectors and close partnerships throughout our region, regardless of jurisdictional boundaries. Each of your contributions strengthen the Upstate story and provide a strong demonstration of why “Business Moves Here.”

Thank you for your support of the Upstate SC Alliance and our mission.

Economic development is shifting away from its traditional focus heavy in manufacturing projects planning to invest by the millions, establish production facilities and hire by the hundreds. Instead, our business recruitment team, state partners and national resources are increasingly hearing from small- and medium-sized businesses, in many cases from international locales, who are interested in cautiously stepping into new markets.

This paradigm shift presents both challenges and opportunities for all of us. On one hand, we are called to recognize that we are a region that has been highly successful over the last decade in attracting numerous projects in many different industry groups. On the other hand, despite our great success as a region, we acknowledge that we should shift our tactics to meet the changing landscape of economic development.

In order to respond to these changes and trends, the Upstate SC Alliance began a strategic planning process in 2016 that is based on the idea that, for the Upstate to

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Max Metcalf

John Lummus

BMW Manufacturing & Board Chairman, Upstate SC Alliance

President/CEO Upstate SC Alliance

2016 AT A GLANCE Elevating Investor Relationships

The Upstate Alliance continued its work to build connections between investors, who were offered increased opportunities for networking. After a several year hiatus, the Investor Roundtable Club meetings resumed with more than 110 participants seizing the chance to mingle in small group settings and explore ways to do business together.

Launching the Upstate Regional Foreign-Direct Investment Plan

As a continuation of our work with the Global Cities Initiative, and a complimentary expansion of the Upstate Regional Export Plan launched in 2015, the Upstate Regional Foreign-Direct Investment (FDI) Plan was released in spring 2016. The plan’s five-year goal is to elevate the Upstate’s global competitiveness by building on FDI recruitment strengths, expertise in advanced manufacturing and world-class industry clusters to distinguish a regional identity as a leading location for international business, trade and investment.

Strengthening Research Capabilities

In 2016, we continued to enhance a comprehensive industrial database for our region that provides shared access for local economic developers, a critical support element for our ongoing Upstate Regional Export Plan implementation and other target marketing efforts. In addition, our research team responded to research and data requests by fulfilling 48 UA project-related RFIs/property searches and 252 other requests from investors, partners, media and private-sector companies.

Raising Awareness for Upstate’s Economy & Global Connectivity

The Upstate Alliance continued its content creation initiative by authoring more than 25 blogs, seven editorial submissions and 300 social media posts in addition to receiving 40 media mentions. These tactics help to increase awareness for our mission and sustain traffic to our website, maintaining strong positioning in search engines.

Engaging Around the Globe

Over the course of the year, the Alliance coordinated mission trips to Canada, the United Kingdom and Arizona, in addition to participating in a Greenville Sister Cities visit to Kortkrijk, Belgium, and the SEUS-Japan Conference in Tokyo. The Upstate Alliance also hosted international delegations of companies who are considering expansion in to the U.S., including Scandinavian and Czech automotive delegations. In all, we worked with 158 new companies in the pipeline, with Canada, Germany, the United Kingdom, Spain, China and Italy serving as our top foreign markets of interest.

Building Relationships with Centers of Influence

We hosted more than 37 site selection consultants and foreign-trade office representatives in the Upstate to learn more about the assets of our region and build connections with our investors.

We supported visits from a French American Chamber of Commerce envoy; a Japanese business delegation; the Hong Kong Economic and Trade Office; the U.S. Embassy in Chile; the Australian Trade and Investment Office; the Belgian Consulate General; the Consul General of Mexico; and the British Embassy. Our team also met with more than 80 centers of influence across the globe, including hosting successful events, in both Atlanta and Charlotte, in partnership with our local economic developers.

Planning for the Future

With awareness of a changing global marketplace and paradigm shift in economic development, in the final quarter of 2016 we initiated a months-long strategic planning process to map the Upstate Alliance’s goals and programs over the next five years in order to ensure the Upstate remains strongly poised for economic growth and competitiveness in years to come.

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2016 MARKETING & BUSINESS RECRUITMENT CALENDAR OUTBOUND EVENTS EVENT

DATE

LOCATION

TARGET

MD&M West / CA Mini Mission

February 9-10

Anaheim, CA

BIO

Power Team Mission Trip

February 22-25

Cleveland, OH

All sectors

Site Selectors Guild

February 24-26

Nashville, TN

Site Consultants

IAMC Spring Forum

March 12-16

New Orleans, LA

All sectors

Midwest Mission Trip

March 14-17

Indiana

All sectors and COIs

SEDC Meet The Consultants

March 30-31

Atlanta, GA

Site Consultants

SAE World Congress

April 12-14

Detroit, MI

Auto

Aerospace & Defense Supplier Summit

April 14-15

Seattle, WA

Aerospace

GACC SME Forum

April 18

Savannah, GA

All sectors

Craft Brewers Expo

May 3-6

Philadelphia, PA

AgriBusiness

BIO 2016

June 6-9

San Francisco, CA

BIO

SelectUSA 2016 Investment Summit

June 19-21

Washington, DC

All sectors

Liverpool Mission / IFB 2016

June 20-24

Liverpool, UK

All sectors

IAMC International Forum

June 21-23

London, UK

All Sectors and COIs

Sister Cities Mission

June 22-25

Kortrijk, Belgium

International

Farnborough Air Show

July 11-17

London, UK

Aerospace

Charlotte Mission Trip

August 10-11

Charlotte, NC

COIs

National Issues Forum

September 7-9

Washington DC

Advocacy

SEUS Japan

September 11-23

Tokyo, Japan

All sectors

Scottsdale Mission Trip

September 26-29

Scottsdale, AZ

Advanced Materials

Canada Mission Trip

October 3-6

Toronto & Montreal, Canada

All sectors

IAMC Fall Forum

October 8-12

Indianapolis, IN

All sectors and COIs

K Show

October 19-26

Dusseldorf, Germany

Advanced Materials

Airtec

October 25-26

Munich, Germany

Aerospace

Atlanta COI

November

Atlanta, GA

COIs

Medica 2016

November 14-17

Dusseldorf, Germany

All sectors

DATE

LOCATION

TARGET

Japan America Association Annual Dinner

January 23

Upstate, SC

All sectors

Volvo Auto Supplier (FKG) Visit to SC

February 15

Upstate, SC

Automotive

SC Automotive Summit

February 23-25

Upstate, SC

Automotive

BMW Pro-AM

May 19-22

Upstate, SC

All sectors

SC Aerospace Conference

August 24-25

Columbia, SC

Aerospace

Site Consultant Inbound Event

October 19-21

Upstate, SC

Site Consultants

November 10-11

Upstate, SC

BIO

INBOUND EVENTS

EVENT

SCBIO Annual Conference

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COI= Centers of Influence (Site consultants, international business and trade organizations, real estate brokers/developers)

2016 MARKETING & BUSINESS RECRUITMENT MILESTONES 2016

339

357

2016 PIPELINE

2015

304

Presentations

Advanced Materials.............................. 151 Aerospace & Defense........................... 105

5 year look

2012

365 2013

384

2014

Automotive & Transport........................ 155 Presentations made to external market audiences about the Upstate

Bioscience & Healthcare....................... 84 Energy & Utilities..................................... 56 Industrial Manufacturing........................ 65

2016

Business Services................................... 45

48

Other........................................................ 116 TOTAL ACTIVE COMPANIES................ 777

51

46

RFIs

2012

53

5 year look

2015

64

TOP COUNTIRES OF INTEREST

2016

Canada....................................................... 80 2015

65

United Kingdom........................................ 55 China & Italy (Each).................................. 22

69

80

USA.......................................................... 267

Spain.......................................................... 42

2014

Formal prospect information requests issued to economic development teams.

Measured by Active Contacts in Pipeline

Germany.................................................... 72

2013

2014

Visits 5 year look

2012

21

94

2013

Visits of companies and centers of influence to the Upstate

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2012-2016 CAPITAL INVESTMENT & JOB CREATION 5 YEAR TOTAL

10.67 BILLION IN CAPITAL INVESTMENT / 25,882 NEW JOBS

368 Projects / 137 International

CAPITAL INVESTMENT

JOBS

$10.67 B

11.0 B 10.0 B

25,882

$8.77 B

9.0 B $7.47 B

8.0 B

27,500

17,500 15,000

6.0 B 5.0 B

12,500

14,015

10,000

$3.41 B

4.0 B 3.0 B $2.31 B

7,500

9,083

5,000

2.0 B 1.0 B

2,500

4,117 2012

2013

2014

2015

2016

$2.31 Billion 4,117 Jobs 66 Projects 22 International

$1.10 Billion 4,966 Jobs 86 Projects 29 International

$4.06 Billion 4,932 Jobs 73 Projects 28 International

$1.3 Billion 6,471 Jobs 76 Projects 30 International

$1.9 Billion 5,396 Jobs 67 Projects 28 International

2016 / 67 TOTAL COMPANIES

33 NEW COMPANIES

$1,337,371,565 in capital investment / 3,858 new jobs • • • • • • • • • • • • • • • •

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22,500 20,000

20,486

7.0 B

25,000

Sun City Produce Graphel Carbon Products CrawlSpaceRepair.com, LLC Delta Power Equipment Proper Polymer Essex Weld USA Inc. Baxter Enterprises, Hi-Tech Mold & Engineering WG Plastics Technology Corp.

Total Quality Logistics Tokyo Gas Engineering Solutions (TGES) America Ltd. Minghua USA/Jiangnan Mold Plastic Technology Corp.

Era-contact USA Sioux Chief Manufacturing Zero Connect GES Recycling Engineered Plastic Components Inc. (EPC)

• Borgeson Universal Co. Inc. • Yanfeng Automotive Interiors • Tower International • Brose North America Inc. • Morley • Otto Bock Polyurethane Technologies, Inc. • C H Muller • Anyone Home Inc. • UST Logistical Systems • Michelin North America, Inc. • International Mold Corporation (IMC) • Teijin Ltd. • Beringer Aero USA • Advanced Ceramic Coatings (ACC) • B&W Fiberglass • Magna International • PL Developments

$1,894,763,206 IN CAPITAL INVESTMENT / 5,396 NEW JOBS

34 EXISTING COMPANIES

$557,391,641 in capital investment / 1,538 new jobs • D&W Fine Pack • Freightliner Custom Chassis Corp.

• Bosch Rexroth Corp.

• Greenco Beverage Co. • Fitesa Simpsonville Inc. • Ushers Machine and Tool Co. Inc. • SterAssure Processing • RMF • ChartSpan Medical Technologies Inc. • PA Solutions • Reliable Automatic Sprinkler Co. • Nason Co. • CRI Tolling LLC/Synalloy • Central Packaging and Crating Inc. • BASF Seneca • Lockheed Martin • Prysmian Group • Meyer Tool Inc.

• Alfmeier Friedrichs & Rath LLC • Ultrafab Inc. • ALBIS Barnett Polymers • Duke Food Productions • EuWe Eugen Wexler US Plastics Inc. • Lear Corporation • Ashland Chemical • Milliken & Company • Ortec • Sealed Air • VELUX • TechTronic Industries • Bodycote • CONFIDENTIAL • Sealed Air • Teknor Apex

UPSTATE EXPORT MONITOR EXPORT SHARE OF GDP

All Industries, 2015

30%

THE FACTS ON EXPORTS

25%

SPARTANBURG

UNION

PICKENS

21%

OCONEE

25.7%

LAURENS

5%

GREENWOOD

10%

GREENVILLE

S.C. 13.4%

CHEROKEE

15% ANDERSON

UPSTATE 18.3%

ABBEVILLE

20%

24%

24.6%

U.S. 10.9%

0% 23.6% 12.5% 19.8% 28.3% 22.6% 20.2%

REAL GDP (bil)

62,720

(9.6%) of jobs in the Upstate were supported by exports in 2015

All Industries

$60 B $58.7 B

$59 B $58 B

Global engagement remains vital for the Upstate, whose export intensity outpaces both the state and national averages.

$57.2 B

$57 B $55.6 B

$56 B $55 B

$54.5 B

$54.6 B

$54 B 2011

2012

2013

REAL EXPORTS (bil) $10.8 B

2015

All Industries $11.0 B

$11.0 B $10.9 B

2014

$10.8 B

5-YEAR

Although export value dipped from its high in 2014 at $10.95 billion to $10.73 billion in 2015, the trendline for export value overall shows positive growth.

$10.7 B

$10.7 B $10.6 B $10.4 B

$10.5 B

$10.4 B

$10.4 B $10.3 B 2011

2012

2013

2014

Sources: Data provided by Brookings Export Monitor 2016; Total Upstate jobs number provided by EMSI

2015

95%

of all consumers live outside the U.S.

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While fear can determine the political perspective of what we’re going to look like, other countries aren’t waiting. They are negotiating their agreements with other markets.

— Dontai Smalls, Vice President of Global Public Affairs with UPS Discussing international trade agreements at the Global South Metro Exchange

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2016 GLOBAL SOUTH METRO EXCHANGE In the spirit of our work with the Global Cities Initiative, a joint project of the Brookings Institution and JP Morgan Chase, the Upstate SC Alliance united business and government leaders from Atlanta, Charleston, Charlotte and the Upstate for a one-day conference on global competitiveness held July 21 at the Hyatt Regency in Greenville.

MAJOR PRESENTATIONS • Growing South Carolina’s Globally Connected Economy, by Ford Graham with SC Department of Commerce • Panel: Globalization from the Mayor’s

More than 250 people – the event’s capacity – attended the Global South Metro Exchange Presented by JPMorgan Chase & Co. for a day of networking, presentations and best practice highlights. The event was conceived during conversations among regions participating in the Global Cities Initiative, with recognition that each of our regions has shared economic interests and assets.

The event’s presenting sponsor was JPMorgan Chase & Co., and Metro Atlanta Chamber, Charlotte Regional Collaborative for a Global Economy, and the Charleston Regional Development Alliance assisted the Upstate SC Alliance in planning.

More than 250 attended the event, which united leaders from Atlanta, Charleston, Charlotte and the Upstate.

Perspective, with Charleston Mayor John Tecklenburg and Greenville Mayor Knox White • Southeastern High-Speed Rail Update, by Stenley Mack with Georgia Department of Transportation • Panel: Free Trade Agreements from the Company’s Perspective, with representatives of BMW, Innovative Global Supply, LLC and UPS • Keynote: Back to the Great Moderation II, by Jim Glassman with JPMorgan Chase

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2016 FINANCIAL EXECUTIVE OVERVIEW ASSETS

LIABILITIES & CAPITAL CURRENT LIABILITIES

CURRENT ASSETS Petty Cash United Community Bank UCB MMarket–Contingency UCB MMkt-State Funds Pledges Receivable - Public Pledges Receivable - Private Other Receivable Allow. For Doubtful Receivable Prepaid Expenses

$444.44 $438,946.02 $288,445.26 $1,344,794.83 $58,435.00 $137,833.33 $6,300.00 $(20,000.00) $76,554.79

TOTAL CURRENT ASSETS

$2,331,753.67

PROPERTY & EQUIPMENT Office Furniture and Equipment Office Upfit Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT

$276,668.91 $447,345.39 $(435,921.79)

Accounts Payable Other Payable Deferred Revenue - Private Deferred Deposit Unearned State Funds Deferred Grant Income

$76,320.22 $22,024.19 $5,000.00 $30,000.00 $1,313,467.07 $2,062.50

TOTAL CURRENT LIABILITIES

$1,448,873.98

LONG-TERM LIABILITIES United Community Bank Loan Deferred Lease Liability

$136,365.68 $77,326.56

TOTAL LONG-TERM LIABILITIES

$213,692.24

TOTAL LIABILITIES

$1,662,566.22

$288,092.51

CAPITAL TOTAL ASSETS

$2,619,846.18

Beginning Unrestricted Net Assets Change in Net Assets

$257,896.33 $699,383.63

TOTAL CAPITAL

$957,279.96

TOTAL LIABILITIES & CAPITAL

$2,619,846.18

The Upstate SC Alliance engages an independent CPA firm to perform an annual audit of its financial statements.

The audit of the 2015 financial statements was completed in September 2016. The independent CPA issued an unqualified audit opinion. Copies of the audit are on file at the Upstate SC Alliance.

The financial statements presented in the report represent collective statements of all Alliance activity. The statements represent grant and one-time funding activities incorporated into the overall revenues and expenses. This collective reporting provides a more comprehensive view of the scope of work completed by the Upstate SC Alliance in 2016.

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FINANCIAL SUMMARY & HISTORICAL ANALYSIS REVENUE Investor Revenue Sponsorships/Grants/Other Revenue State Funds Applied to Budget

2016 ACTUAL 2016 BUDGETED 2015 ACTUAL 2014 ACTUAL $1,869,778.31 $1,431,353.00 $1,402,102.02 $1,333,256.50 $186,878.07 $97,725.00 $97,525.50 $141,847.18 $473,500.29 $603,248.76 $478,210.27 $409,092.09

TOTAL REVENUE

$2,530,156.67 $2,132,326.76 $1,977,837.79 $1,884,195.77

OPERATIONAL EXPENSE Accounting Fees Auto Expenses Insurance - Employees Employee Benefits - Retirement Insurance - Corporate Bank Charges & Interest IT Support Miscellaneous Office Expense Office Lease Payroll Taxes Salaries Training

2016 ACTUAL 2016 BUDGETED 2015 ACTUAL 2014 ACTUAL $34,942.75 $48,000.00 $32,475.40 $37,665.31 $22,156.57 $23,800.00 $19,701.90 $21,087.61 $82,635.67 $82,300.00 $71,371.06 $58,495.23 $23,719.10 $21,698.00 $18,360.15 $19,467.51 $9,779.34 $9,614.00 $8,960.63 $8,461.12 $11,936.43 $13,036.11 $14,426.07 $19,268.04 $18,953.95 $25,000.00 $16,498.94 $22,302.68 $36,317.72 $86,000.00 $24,976.48 $62,023.94 $37,865.06 $48,000.00 $37,099.45 $36,255.83 $79,478.63 $101,000.00 $73,989.97 $75,259.01 $9,064.08 $10,320.00 $7,997.76 $8,051.40 $152,830.69 $143,740.00 $124,644.96 $110,103.61 $5,633.44 $15,000.00 $25,769.15 $9,608.55

TOTAL OPERATIONAL EXPENSE*

$525,313.43

$627,508.11

$476,271.92

$488,049.84

PROGRAM & SERVICE EXPENSE

2016 ACTUAL

2016 BUDGETED

2015 ACTUAL

2014 ACTUAL

Salaries/Payroll Taxes Marketing Tools and Publications Marketing Tools - Website Prospect & COI Recruitment Economic Development Travel & Events** Economic Development Research Public Relations Trade Shows Mission Trips In Bound Events Miscellaneous

$594,758.10 $602,800.00 $591,860.08 $531,392.29 $96,218.91 $140,000.00 $42,580.96 $41,938.53 $20,135.71 $26,200.00 $22,878.63 $30,473.14 $8,858.82 $15,000.00 $12,349.03 $8,949.69 $95,782.72 $38,720.00 $24,140.59 $19,741.70 $84,407.46 $87,772.56 $60,059.63 $130,108.79 $16,905.21 $99,750.00 $241,735.74 $162,316.42 $66,918.78 $79,000.00 $41,782.06 $38,203.25 $110,834.78 $178,500.00 $81,541.52 $140,573.58 $67,682.56 $110,800.00 $59,311.99 $54,845.23 $1,327.03 $2,000.00 $1010.00 $1136.08

TOTAL PROGRAM AND SERVICE EXPENSE

$1,163,830.08

$1,380,542.56

$1,179,250.23

$1,159,678.70

FUNDRAISING Investor Materials & Publications Travel & Meetings Meals & Entertainment

2016 ACTUAL $8,857.13 $42,733.28 $23,266.47

2016 BUDGETED 25,000.00 $44,000.00 $26,000.00

2015 ACTUAL $16,223.85 $40,682.63 $15,589.10

2014 ACTUAL $9,994.05 $11,979.46 $33,760.49

$74,856.88

$95,000.00

$72,495.58

$55,734.00

EXPENSE SUMMARY Total Operational Expense Total Program and Service Expense Total Fundraising Expense

2016 ACTUAL $525,313.43 $1,163,830.08 $74,856.88

2016 BUDGETED $627,508.11 $1,380,542.56 $95,000.00

2015 ACTUAL $476,271.92 $1,179,250.23 $72,495.58

2014 ACTUAL $488,049.84 $1,159,678.70 $55,734.00

TOTAL EXPENSE SUMMARY

$1,764,000.39

$2,103,050.67

$1,728,017.73

$1,703,462.54

TOTAL FUNDRAISING EXPENSE

*Must add depreciation amount to get true number **Substantial overage a result of 2 new programs (Global South Event & Strategic Plan) covered by grants & sponsorships

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All you have to do is some foreign travel to understand that regionalism is what it is all about.

When you’re looking at a map of the United States from Asia or from Europe, there is no such thing as Greenville, S.C., there’s only the Southeast United States.

— Knox White, Mayor of Greenville In a panel discussion at the Global South Metro Exchange

UPSTATE SC ALLIANCE’S STRATEGIC PLAN Disruptive Trends The Upstate SC Alliance’s new strategic plan outlines the key disruptive trends that emerge from research about structural changes in the global economy and their impact on the region’s competitive position. Six trends were identified as having particular relevance for the Alliance and its regional economic development efforts:

1

Traditional business attraction approaches no longer produce desired results – Major projects are declining, while middle market firms increasingly drive growth

SCALEUP AND MIDDLE MARKET

2009-2014

THESE FIRMS GREW FROM 10 TO 30 EMPLOYEES ON AVERAGE

Manufacturing is rapidly evolving – Output is growing, but productivity gains are leading to less employment

2

MANUFACTURING OUTPUT & EMPLOYMENT

1% OF

150

72% OF

New Approaches are needed to harness the growth potential of innovation – There is growing potential among startups, but the Upstate region has low rates of entrepreneurship

9.3%

8.4%

ATLANTA

CHARLOTTE

2009-2011

8.0% 6.7%

U.S.

5 JOBS PER $1M OUTPUT

EMPLOYMENT

50 0

SHARE OF FIRMS UNDER ONE YEAR OLD

25 JOBS PER $1M OUTPUT

100

NEW U.S. JOBS

COMPANIES CREATED

3

REAL OUTPUT

250 200

5.7%

GREENVILLE SPARTANBURG

1980-2015

1980 1985 1990 1995 2000 2005 2010 2015

The Location Preferences of firms and talented workers are shifting toward denser mixed-use areas – Talented workers are moving to dense areas, including within the Upstate region

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NUMBER OF TOP 50 METRO AREAS WITH MORE COLLEGE GRADUATES MOVING DOWNTOWN VS SUBURGS

1970-2010

40 32 24 16 8 0

1970-1980 DOWNTOWN

1980-1990

1990-2000

2000-2010

SUBURBS

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UPSTATE SC ALLIANCE’S STRATEGIC PLAN 5

Increasing globalization is a reality, representing new opportunities and threats that demand local economic development attention – The Upstate region is among the most globally-dependent in the U.S.

FOREIGN INVESTMENT (SHARE OF JOBS)

6

A Common set of issues is holding back economic development progress in regions throughout the country; however, it is not clear how EDOs should best engage with them – Workforce, infrastructure, innovation and economic inclusion are at the top of EDO agendas

2011

SPARTANBURG MSA GREENWOOD COUNTY ANDERSON COUNTY UNION COUNTY GREENVILLE MSA U.S. 0%

5%

10%

15%

20%

Implications of Disruptive Trends for the Upstate Alliance The following set of implications for the region and the Alliance arose from analysis of these disruptive trends and were considered by Alliance staff, investors, and other stakeholders during the strategy development process: • Pivot and Expand Scope: If the Upstate is to remain relevant in the face of rapidly changing market forces that include a decline in large business attraction projects, it must pivot and generate leads in new ways by refocusing recruitment efforts and expanding its scope.

• Global: If the Upstate is to boost the competitiveness of the region and its firms, the Upstate Alliance must be more intentional in its global engagement, including developing a better understanding of its existing firms and their needs.

• Innovation and Cluster Development: If the Upstate is to maintain its position as a manufacturing center and begin to move up the value chain, the Upstate Alliance must embrace advanced manufacturing and innovation in a more focused way, recognize that firms increasingly care about being part of innovation ecosystems, and more actively facilitate collaboration among firms.

• Regional Identity: If the Upstate desires to function as a true region, the Upstate Alliance must continue to play a key role in fostering a regional identity and mindset.

• Research and Advocacy: If the Upstate is to stay apprised of trends and develop compelling narratives that provide the economic rationale for key policy and investment decisions, the Upstate Alliance must engage outside the region, invest in more sophisticated research, and intentionally inform the regional dialog with its knowledge.

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• Regional Marketing: If public investors expect the Upstate Alliance to market the region effectively and generate high-quality leads, and since effective marketing depends on knowing the product well (in this case, existing firms, clusters, and regional data), they need to work with the Alliance to develop a system for sharing information and jointly developing relationships with firms.

UPSTATE SC ALLIANCE’S STRATEGIC PLAN Upstate Alliance Mission Firmly establish Upstate South Carolina as a unified and innovative economic region and position it to excel in the global economy through strategic marketing, collaboration, and thought leadership.

This 2017 strategic plan confirms the Upstate Alliance’s original purpose – to market the region as a competitive destination for new jobs and investment – and recognizes that to successfully position the region to achieve continued success, the organization must continue to refine its approach (how it pursues its mission) based on new and evolving market realities. The Upstate Alliance has already

taken concrete steps to adapt to emerging market forces; however, these expanded efforts had not been captured or confirmed in any official way. Through this strategic plan, the Alliance board and investors are directing the organization to move forward with an expanded approach to accomplishing this mission through five core strategies.

Strategy Overview The five strategies below are designed to guide the work of the Upstate Alliance for the next five years. These strategies are direct responses to the implications that emerged from the disruptive trends, as outlined in the previous two sections, and are designed to not only reflect rigorous research, but also the perspective of county economic development leaders, public and private sector investors, and Upstate Alliance staff as voiced during the process for developing the plan.

Strategy 1: Lead Regional Marketing and Business Attraction Hone in more forcefully on a targeted set of high potential activities and opportunities.

Strategy 2: Move Up the Manufacturing Value Chain Position the region to successfully respond to the convergence of manufacturing, services, and innovation.

Strategy 3: Engage Intentionally in the Global Economy Enhance the global competitiveness of the region and its firms through increased international trade and foreign investment.

Strategy 4: Establish the Upstate Alliance as an Economic Thought Leader Ensure a well-informed economic rationale and perspective are brought to key local, state, and federal dialogue, decisions, and debates.

Strategy 5: Anchor Efforts in Robust Research Success in achieving the Upstate Alliance mission and strategies requires a major commitment to pertinent data, reliable facts and information, and compelling narratives.

Collectively, these strategies are designed to support effective implementation of the Upstate Alliance’s core purpose, captured in Strategy 1; a successful regional marketing and business attraction effort depends upon the foundation built by Strategies 2-5. Yet each of these strategies are important in their own right – throughout the process of creating this strategic plan, the Upstate Alliance’s investors continually reaffirmed the importance of research, global engagement, thought leadership, and more.

The activities and outcomes for each of the strategies will be reviewed at each Upstate Alliance executive committee meeting to evaluate progress on each toward the mission.

Overarching Theme: Region Building Region building is an important element of the Upstate Alliance’s work that is not represented independently by a specific strategy. Rather, it stands as an overarching theme that informs how the Upstate Alliance carries out each of the strategies in this plan.

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Even though Upstate South Carolina often competes for economic development with its neighbors in Charleston, Charlotte, and Metropolitan Atlanta, we recognize that companies are looking for the best locations, regardless of political boundaries. Rather, they look at trade areas, educational ecosystems, and infrastructure that connects them to other markets both domestically and internationally. — John Lummus, President & CEO of the Upstate SC Alliance

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2016 EXECUTIVE COMMITTEE OFFICERS

CHAIRMAN MAX METCALF Government & Community Relations BMW Manufacturing

SECRETARY/TREASURER STEVE COOPER Managing Partner Rodl & Partner

JOHN LUMMUS President/CEO Upstate SC Alliance

IMMEDIATE PAST CHAIR RONNIE BOOTH President Tri-County Technical College

MEMBERS AT LARGE

GRANT BURNS Vice President & General Counsel AFL

ZACH HINTON Government & Community Relations Blue Ridge Electric Cooperative

EMILY DEROBERTS Government & Community Relations Duke Energy

JOHN MILLER, JR. President Emeritus AnMed Health System

DAVE EDWARDS President & CEO GSP International Airport

PAUL CAIN Member Oconee County Council

NON-VOTING MEMBERS

RICHARD BLACKWELL Economic Developer Chair Executive Director, Oconee Economic Alliance

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BOARD OF DIRECTORS PRIVATE SECTOR BOARD

PUBLIC SECTOR BOARD

AFL AnMed Health AT&T Blue Ridge Electric Cooperative, Inc. BMW Manufacturing Company Bon Secours St. Francis Health System Broad River Electric Co-Op Chase Fairway Outdoor Advertising Greenville Health System GSP Haynsworth Sinkler Boyd, P.A. Hire Dynamics Human Technologies, Inc. Integral Solutions Group Laurens Electric Cooperative Little River Electric Cooperative MAU Workforce Solutions McNair Law Firm, P.A. Parker Poe Adams & Bernstein LLP Piedmont Municipal Power Agency (PMPA) Piedmont Natural Gas Rödl Langford de Kock LLP Santee Cooper Smith Moore Leatherwood SunTrust Banks, Inc. The Cliffs Thornblade Club Verdae Properties, LLC Wells Fargo Womble Carlyle Sandridge & Rice, LLP

Abbeville County Development Board Anderson County Economic Development Cherokee County Development Board City of Clinton City of Easley City of Greenville City of Spartanburg City of Union Greenville Area Development Corporation Greenwood County Greer Development Corporation Laurens County Development Corporation Oconee Economic Alliance Spartanburg Economic Futures Group Union County Development Board

HONORARY BOARD MICCO Corporation South Carolina Council on Competitiveness Ten at the Top COLLEGE/UNIVERSITY BOARD Anderson University Clemson University Greenville Technical College Spartanburg Community College Tri-County Technical College

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CHAIRMAN’S CIRLCE Clear Channel Duke Energy

UPSTATE SC ALLIANCE INVESTORS PRESIDENT’S CIRCLE

FRIENDS

BB&T

AECOM Allen Tate Relocation & Corporate Services Alliance Consulting Engineers Anderson Area Chamber of Commerce Bank of America BE&K Building Group Bob Jones University Bon Secours Wellness Arena City of Mauldin CMC Cary Engineering CMC Structural CNP Technologies, LLC. Coastal Corrugated, Inc. Coldwell Banker Caine Colliers International Upstate Corporate Center Crowder Industrial Construction LLC Dominion Resources Services, Inc. Eastern Industrial Supplies, Inc. ECM Solutions Embassy Suites Golf Resort & Conference Center Engineered Systems, Inc. Entegra Financial Faithful+Gould Find Great People (FGP) First Citizens Bank First Tennessee Bank Fitts & Goodwin Furman University Undergraduate Evening Studies Gallivan White & Boyd, P.A. Goodwyn, Mills and Cawood, Inc. Greater Easley Chamber of Commerce Greater Greenville Association of REALTORS Greater Greer Chamber of Commerce Greenville Business Magazine Greenville Chamber of Commerce Greenville Downtown Airport (GMU) Greenville Water Harper Corporation Hogan Construction Group, LLC HRP Associates, Inc.

DIRECTOR’S CIRCLE Elliott Davis Decosimo GreerWalker United Community Bank Upstate Business Journal ADVOCATES C. H. Robinson CBRE Crowne Plaza Electrolux Evans General Contractors Fifth Third Bank GSA Business Industrial Project Innovation NAI Earle Furman NBSC, a division of Synovus Bank Nelson Mullins Riley & Scarborough LLP Ogletree Deakins O’Neal Pacolet Milliken Enterprises Palmetto Health Baptist Easley Renewable Water Resources (ReWa) Rosenfeld Einstein SC State Ports Authority South Carolina Power Team Spartanburg Water & Sewer System Spectrum Enterprise Sunbelt Rentals TD Bank Zuendt Engineering

IK Hofmann USA Indexx Printing Solutions Ivannovation J.C. Wilkie, LLC K&L Gates LLP Laurens County Water & Sewer Commission (LCWSC) M.B. Kahn Construction Co. Manufacturers Caring for Pickens County Materials Handling Solutions McCrory Construction Company McMillan Pazdan Smith Michelin North America Inc. MTC Federal Credit Union Net3 Technology Nexsen Pruet NFP Corporate Services SE, Inc. Performance HCM Phillips Staffing Pickens Railway Company Plus Inc. Premo Ventures PWC Regions Bank Roebuck Buildings Co. S&ME, Inc. Sage Automotive Interiors SC Technology & Aviation Center SCI Electronics Senator International Sharp Business Systems Skanska USA Building South State Bank Southern First Thermal Resource Sales THS Constructors, Inc. TPM Triangle Construction Company, Inc. UPS Watermark Advisors Windsor Aughtry Wingspan Performance Yeargin Potter Shackelford Construction Young Office

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124 Verdae Boulavard, Suite 202 Greenville, SC 29607 864.283.2300 upstateSCalliance.com