A PUBLICATION OF THE SOUTH CAROLINA MANUFACTURERS ALLIANCE • MADEINSC.ORG • FALL 2008
A VISION FOR MANUFACTURING
Senator Fritz Hollings’ Impact on Manufacturing in S.C.
CURRENCY MANIPULATION
How Unfair Exchange Rates Affect Competition
CUSTOM HEALTH PLANS
A Plan That is Reducing Costs For Companies Across the State
CAROLINA TIDES A Look At South Carolina’s Premier Boating Manufacturers
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October 2008 •
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make your marketing as cutting-edge as your manufacturing. Web, HD, film, trade show or print - Genesis Studios has the tools you need to influence businesses and consumers, international and local, to purchase your Made in South Carolina products. Work with the Genesis Studios media specialists to raise your current communications to a new level of professionalism or partner with the Genesis Creative Team to develop goal-oriented marketing for your company from concept to completion - all under one big state-of-the-art roof. Visit our web site today to schedule a tour of South Carolina’s premier media production facility and discover how to make your marketing as cutting-edge as your manufacturing.
Studios ideal for creating video demos, commercials, and web content.
HD Video Editing + 3D Animation for technical visualization of product features.
Genesis Media Specialists bring technical skill and experience to every project.
genesisstudiossc.com 2
• Made in SC
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Helping manufacturers turn potential into prosperity. For more than 60 years, Nexsen Pruet has been working with regional, national, and international manufacturing companies to turn their potential into prosperity. With more than 170 lawyers and 30 practice areas – including several that have been rated among the best for business – we have the skills and experience to help you capture all of the opportunities within your reach. And by doing that, we can keep you on the road to success for years to come.
www.nexsenpruet.com 1230 Main Str eet, Suite 700, Columbia, SC, 29201 – Leighton Lord, B oard Chair C H A R L E S T O N , S C | C H A R L O T T E , N C | C O L U M B I A , S C | G R E E N S B O R O , N C | G R E E N V I L L E , S C | H I LT O N H E A D , S C | M Y R T L E B E A C H , S C
Copyright Š2008 SCMA. All rights reserved. Reproduction in whole or in part without the permission of the SCMA is prohibited. Printed in South Carolina. When you have finished with this magazine please recycle it.
From the President
Member News
S.C. Manufacturing is at a crossroads.
Whats happening with SCMA members across the state.
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A Vision for Manufacturing
Capturing the Spirit of SC
A look at Senator Fritz Hollings service to S.C. manufactuers.
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Lowcountry students discover the beauty and science of sailing.
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Discover South Carolina Boating
An overview of South Carolina’s premier boating manufactures.
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World Report How currency manipulation effects S.C. manufacturers.
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Featured Manufacturer How the Huffman Corporation uses innovative technology.
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Cost Saving Tools Custom health plans save money.
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photography provided by Honda of South Carolina
Executive Editor Lewis F. Gossett gossett@myscma.com Managing Editor James A. Richter richter@myscma.com Creative Director Will K. Bryan will@gencreative.com Design/Layout Genesis Creative www.gencreative.com Contributing Writers Tom S. Mulliken John Carol Lewis F. Gossett James A. Richter Cover Photography Dan Mueller SC Maritime Foundation Advertising (803) 799-9695 James A. Richter richter@myscma.com Editorial Office 1340 Bull Street Columbia, SC 29201 (803) 799-9695 fax (803) 771-8738 www.madeinsc.org
From the President
Lewis F. Gossett
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President & CEO South Carolina Manufacturers Alliance gossett@myscma.com
anufacturing in South Carolina is at a crossroads. We face both headwinds and tailwinds over the next few years, and as with any challenges and opportunities, the prospects for manufacturing will depend upon the manner in which we confront and embrace both. At both the South Carolina Manufacturers Alliance and Made in South Carolina, we have spent some time looking at recent accomplishments for South Carolina industry (i.e. tort reform, workers’ compensation reform, large media campaigns, etc.) and assessing whether it was time to move on to other issues and strategies. We’ve concluded that other matters are elbowing their way to the front of the line and will need more attention as the next 5 to 10 years unfold. Specifically, we see five major issues confronting manufacturing during that timeframe. In no particular order, those issues are 1) availability and affordability of energy; 2) environmental challenges and opportunities; 3) workforce development; 4) infrastructure – primarily port expansion, but also including roads and bridges; and 5) the ever-increasing manufacturing tax burden. In this letter, I’m going to stay away from the political side of things, as that’s not the purpose of Made in SC or this magazine. Rather, I will simply focus on these challenges and how our campaign can play a role in addressing each. In our last issue, we focused on energy, and developments over the summer have only increased our understanding of just how important this issue is to the future of manufacturing in South Carolina. This State has reached a point where we need to increase our energy sources, and nothing should be off the table. We need the Santee Cooper clean coal plant and all four of the proposed nuclear reactors. Likewise, if proven feasible and affordable, various forms of renewable energy production should be in the mix, including wind and solar. The viability of existing manufacturing facilities and the prospects for recruiting new ones to South Carolina will both suffer dramatically if we fail to build these plants.
photography by Renee Ittner-McManus
Like SCMA, Made in South Carolina will not run from environmental issues. Our Members and the participants in Made in South Carolina all have great sustainability stories to tell, and we intend to get the word to the people of this State that the economic prosperity brought by manufacturing and the preservation of our quality of life are not mutually exclusive. Let us know what you are doing to protect our environment, and we will feature your efforts in our magazine and on our website.
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At a time when we see the South Carolina Employment Security Commission announcing higher unemployment rates, manufacturers who are struggling to find qualified workers are left scratching their heads. So many of you are facing shortages today while you also know that because of retirement and other forms of attrition, those shortages are going to get worse in the future. We cannot wait for government to solve this problem for us – frankly, their competence level in this area leaves much to be desired. Rather, we need to look at the structure of workforce delivery in this State, propose reforms, and assist other efforts in convincing kids that there is a bright future for each one of them in manufacturing. This item will be a key focal point for Made in SC. South Carolina’s infrastructure is either crumbling or in desperate need of expansion and improvements. Likewise, our tax system is not favorable to manufacturing and needs an overhaul. It will not be our job in these pages to make the political case for those issues – that is up to the SCMA side of the house – but instead, we will increase public awareness of the contributions made by manufacturing facilities to local communities across the State. We believe those efforts will convince more South Carolinians that taking a 20-year facility for granted is unwise. For the average citizen, there must be a connection drawn between the continued viability of that facility and his or her own future prosperity. Don’t get me wrong. We see a lot of positive signs for manufacturers in South Carolina. A variety of economic forces have created opportunities, and as evidenced by expansion announcements, many of our members are taking advantage of them. Still, this economic climate is far from perfect, and understanding where those major challenges lie is the first step to moving closer to the best manufacturing climate possible in South Carolina. Expect the five issues listed above to dominate our work on your behalf for the foreseeable future. - L.G.
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Member News www.myscma.com
BMW Charity Pro-Am Golf Tournament Earns More than $900,000 for Local Charities The eighth-annual BMW Charity Pro-Am golf tournament raised $906,308 for 72 Upstate and Western North Carolina charities, bringing the tournament’s total to more than $6.6 million raised since 2000. A record 50,000 people attended this year’s May tournament and watched David Mathis of WinstonSalem, N.C. earn his first career win. NHL hall of famer Wayne Gretzky won the Pro-Am/Pro Celebrity portion of the tournament. Gretzky donated his $10,000 winnings to The Charles Lea Center – a Spartanburg based nonprofit organization that provides support to people of all ages with disabilities and special needs.
Milliken Clarifying Chemical Wins 2008 R&D 100 Award Milliken Chemical, a division of Milliken & Company, has been named a winner of the 2008 R&D 100 Award for its Millad® NX8000 clarifier for polypropylene – a thermoplastic polymer used in the package, textile, medical, automotive, and plastics sectors. This prestigious awards program from R&D Magazine has been honoring outstanding new products for 45 years. Millad NX8000 is a clarifying agent that offers a 50% reduction in haze compared with the industry standard. The Millad NX8000 clarifier technology allows polypropylene to replace glass and other clear materials while increasing material strength, rigidity, and improved heat and chemical resistance for various product applications.
Honda Celebrates 10-Year Anniversary July 1, 2008, marked the 10-year anniversary since Honda of South Carolina moved into its Timmonsville plant. The Timmonsville facility began production of All-Terrain Vehicles (ATVs) in July 1998, with a work force of about 200 associates. The plant has a line-up of nine ATV models and by the end of 2000, the company began constructing engines and providing key ATV components-engines, fuel tanks, differentials, and swing arms to Honda’s Ohio motorcycle plant. In 2002, Honda began producing the AquaTrax watercrafts. Initially, $30 million was invested into a 200,000-square-foot ATV manufacturing plant. The plant now employs about 1,500 people.
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Cummins Turbo Technologies Announces Expansion of Charleston Facility Cummins Turbo Technologies, the world’s largest manufacturer of turbochargers for the medium-heavy duty diesel engines market, announced in July the expansion of its Charleston County facility. The $11 million investment is expected to bring 100 new jobs to the area. The expansion will include the addition of assembly and machining capacity at the Palmetto facility to support the company’s North American and export markets. The company currently employs nearly 750 employees at South Carolina facilities.
Glen Raven Custom Fabrics Receives S.C. Environmental Excellence Award Glen Raven Custom Fabrics, a global leader in performance fabrics including the Sunbrella® brand, has been recognized as one of the newest members of the South Carolina Environmental Excellence Program (SCEEP). Glen Raven’s Anderson manufacturing facility is a one-million-square foot, vertically integrated plant that manufactures the Sunbrella® brand of performance fabrics for awnings, marine, and furniture. This facility, one of the most modern in the textile industry, has been the focus of an intense environmental quality program that has eliminated landfill wastes through recycling and repurposing of waste materials. SCEEP is a voluntary initiative designed to recognize and reward South Carolina facilities that have demonstrated environmental performance through pollution prevention, energy and resource conservation, and the use of environmental management systems. DHEC has supported the program since its creation in 1997, and Glen Raven is one of only 31 facilities in the state to have received this honor.
Micali Joins Ogletree Deakins Jim Micali, the former Chairman & President of Michelin North America and SCMA Chairman (2006-2007), joined the Ogletree, Deakins, Nash, Smoak & Stewart law firm in August as a senior business advisor and counselor. Mr. Micali will also assist Ogletree Deakins with business opportunities and will provide counsel and advice to the firm’s multinational clients, especially those in the automotive and related industries.
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The North American Shingo Prize for Excellence in Manufacturing
What is the Shingo Prize? An internationally recognized award for manufacturing excellence The Shingo Prize, which has been awarded internationally since 1988, is named after renowned Japanese engineer, Shigei Shingo. The Shingo Prize is “the only award program in the world that is focused on muda (waste) and lean manufacturing practices.” Earning a Shingo Prize is incontrovertible evidence to customers, suppliers, and other stakeholders that a company has achieved excellence in its manufacturing practices. All South Carolina manufacturers are eligible to apply for the North American Shingo Prize, which is administered by the South Carolina Manufacturers Alliance.
APPLY NOW Additional details concerning the prize are available on the South Carolina Shingo Prize web site, www.scshingoprize.com, or by contacting the administrator, Chris Klasing, at JCKA ssoc@bellsouth.net or 864-213-4202.
"Considered the NOBEL PRIZE of manufacturing, the Shingo Prize for Excellence in Manufacturing...awards...sites that have achieved dramatic performance improvements..."
- Business Week
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Disco Sea Fox 160 Center Console Manufactured in Charleston, SC.
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• Made in SC
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South Carolina Boating As a coastal state, South Carolina has always had a love affair with the water. Regardless of whether that water is the Atlantic Ocean, one of the many Intracoastal Waterways, or the rivers and lakes of the Palmetto State – boating is a popular pastime that provides scenic escapes for family fun and sporting activities for persons of all ages. From the thrills of wakeboarding and waterskiing, to fishing, or to simply enjoying the sunshine and fresh air of recreational cruising, boats are extremely popular with South Carolina residents. There is literally some navigable body of water that is located within 20-30 miles from anyone’s home in the Palmetto State. “Riding or driving, boating in South Carolina is as good as it gets. We are lucky to live in such a beautiful state that offers so much for boating enthusiasts,” says Wayne Burdick, President & CEO of Beneteau USA in Marion. “As a relocated Connecticut Yankee, South Carolina is by far one of the most beautiful states I’ve encountered for being out on the water.” No other industry captures the combination of South Carolina’s traditional heritage and future potential as boat building. From the first settlers who landed on South Carolina’s shores over 300 years ago to high tech, composite formed and electronically wired yachts, the Palmetto State’s boat manufacturers have combined
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a tradition of independence and craftsmanship with a forwardlooking commitment to innovative design, product research, and personalized customer service. Today, more than 3,400 South Carolinians are employed by a small but vibrant group of manufacturing companies that build world class marine crafts enjoyed by boaters domestically and internationally. In 2007, the South Carolina boat manufacturing sector produced more than $250 million in sales. Compared to previous years, sales are down, but the industry continues to be a an economic staple primarily because of the outstanding craftsmanship of boats that are made in South Carolina.
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Sea Fox Mariah G23 Cuddy Charleston, SC
StingRay 220 DR Hartsville, SC
Folbot Kayak Charleston, SC
Scout Boats 145 Hybrid Summerville, SC “South Carolina has a long history of boat building,” says Fred Renken, President & CEO of Sea Fox Boat Company and a third generation boat manufacturer. “For more than 300 years, craftsmen have been building sturdy boats designed to withstand rough waters. The tradition of excellence carries on today – you can see this in the demand of South Carolina made boat brands.”
Manufacturers’ Profiles Beneteau USA ranks as one of the world’s largest manufacturers of sailboats. Building boats exclusively for the North and South American markets, Beneteau USA manufactures 32-47 foot sailboats, as well as the luxurious Swift Trawler 42. Scout Boats of Summerville recently debuted the marine industry’s first fiberglass hybrid boat. The 145 Hybrid is a 14.5-foot fiberglass boat with a 20-horsepower Yamaha outboard motor flanked by Lenco dual 36-volt drives, which are controlled with a joystick mounted on the helm. The drives can run up to eight hours on a full battery charge. Key West Boats of Ridgeville has built center console fishing boat models for saltwater use since 1986. Today, Key West Boats
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manufactures 23 different models that range in size from 15 to 29 feet in length. Sea Fox Boats is a family owned manufacturer of fishing and pleasure boats located in Charleston. The company makes 17 different fiberglass recreational fishing boats, along with deck boats. Its models range from 16 to 28 feet in length and include bay fishers, center consoles, dual consoles, flats boats, and walk arounds. Its hand-crafted Mariah brand includes bow riders, cuddy cabins, deck boats, and fish and ski models. Sea Hunt Boats Manufacturing Company began in 1995 when a father-son team started building center console boats in a small plant outside of Columbia. Today, Sea Hunt operates in a state of the art 170,000 square foot facility that produces 22 different fishing boat models that include walk arounds, center and dual consoles, bay boats, and the sleek ultra series. Stingray Boats is a leading powerboat manufacturer located in Hartsville and produces over 20 different models. The company is one of the largest American independent sports boat builders. Some performance boats have engines with 225 to 1,000 horsepower.
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the Port is thinking beyond its own growth... Beneteau Flyer 12 cabin Marion, SC
“In the end, new design, innovation and foresight are what keeps any product-driven industry on its feet.”
...recreating more than 5 miles of oyster reefs in and around Charleston Harbor. ...donating $1 million to assist the Trust for Public Land in purchase of 126-acre tract on Morris Island. ...switched to ultra-low sulfur diesel 3 years ahead of federal mandate. ...investing $4 million in the City of North Charleston for community improvements.
- Wayne Burdick, Beneteau USA American Sail of Charleston manufactures sailboats that range from 8 to 18 feet in length. With over 30,000 built since 1976, American Sail builds one of the most successful sailboats ever designed and was inducted into the National Sailboat Hall of Fame in 2001. American Sail Inc. manufactures small sailboats, catamarans, and dinghies ranging from 8 to 18 feet. One person can rig each line of their boats in less than 20 minutes. Honda of South Carolina employs over 1,600 people in its Timmonsville facility, which produces all-terrain vehicles and personal watercraft carriers. The South Carolina facility is the premier manufacturer for Honda’s line of AquaTrax PWCs (personal water crafts), which includes the AquaTrax F-12, the turbocharged F-12X, and an all-new R-12X two-seater. Folbot, Inc. is unfolding new adventures in Charleston with its 8 series of folding kayaks. Since 1933, Folbot has been hand making kayaks, longer than any other company in the world. Their products feature a lifetime warranty and assemble and disassemble in minutes. Folded up, the frame sections and outer skin of the kayaks fit into an oversized backpack, perfect for airline travel or storage in small apartments. The aluminum Folbot skeleton goes together like a tent frame. The outer skin — a waterproof canvas like fabric on the deck and a more rubberized fabric on the hull — slips over the frame.
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How else is the port thinking beyond its own growth?
Visit
www.PledgeforGrowth.com and Take the Pledge!
October 2008 •
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Beneteau 10R2 Marion, SC
Honda HW5 AquaTrax Timmonsville, SC
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Scout Boats Yamaha 262 Summerville, SC www.madeinsc.org
“Everything in our industry is disposable income.”
Key West 211 Dual Console Ridgeville, SC
- FRED Renken, Sea Fox Boats
Economic Impact These companies, along with Tier 1 manufacturers like Glendinning, Cummins Mercruiser Diesel, Seldén Mast, and the hundreds of marine service providers generate millions of dollars for South Carolina’s economy each year; however, the impact of the boating industry is much broader. Routine maintenance, repair, registration and titling, insurance, and storage are also responsible for generating millions of dollars in additional annual revenue. But with the weak dollar, rising gas prices, the mortgage crisis, and the increasing difficulty for potential customers to receive a loan, the boating industry nationwide is currently experiencing sluggish sales. “Everything in our industry is disposable income,” says Renken. “It’s a luxury. You don’t have to go boating; some people feel like they do, but in reality it’s not a necessity. Unfortunately, the boating sector is the first to be impacted when the economy begins to stiffen and is usually the last to recover.” Despite the current state of the economy, boating remains an important component to South Carolina’s economy. All sectors of the economy benefit from the millions of dollars the industry brings. These businesses include boat and equipment manufacturing and retailing, and many types of boating services, such as boat and engine repair services. Indirect revenues also have a tremendous impact on the state’s economy. Every boating trip adds impetus to the economy from the spending on gasoline, food, restaurant meals, and other goods and services that are not provided by boating businesses. This unique environment is home to a multimillion dollar marine industry that includes marinas, boatyards and builders, yacht and charter brokers, and marine services of unlimited variety. Both direct and indirect expenses associated with boating create a steady stream of revenue. Annual fees including registration and titling as well as taxes, contribute millions of dollars to government coffers. Property taxes on boats and motors are expected to generate $38.5 million dollars in revenue by the end of 2008.
promoting boats made in south carolina South Carolina’s boating industry has a tradition of excellence. The manufacturers that operate here are committed to creating quality boats and boating accessories for many generations to come. Their high standards and continued innovation will allow them to develop new products that satisfy global consumer demand. “In these increasingly difficult times, manufacturers in any industry will go back to the drawing board to look for solutions. That’s the American thing to do,” says Burdick. “In the end, new design, innovation, and foresight are what keep any product-driven industry on its feet. People are very passionate about boating. The industry might be experiencing a slump, but people still love the water and their enthusiasm will keep the boating sector afloat.”
There are 436,075 registered boats in SC. That ranks 8th in the US. (NMMA, 2006) South Carolina is home to 86 major marinas and yacht clubs. South Carolina is home to 11 different lakes. There are 1,006 square miles of inland water area. There are 72 square miles of coastal water area. South Carolina is home to 2,876 miles of coastal shoreline (11th longest in US). Over 125 different marine craft models are Made in South Carolina. Gross sales for South Carolina boat manufacturers totaled over $290,000,000 in 2007. Sea Hunt Ultra 232 Columbia , SC
The Made in South Carolina campaign is launching its first industrial division by creating a unified brand that presents South Carolina as a worldwide leader in boat building quality, technology, and craftsmanship. Boats Made in South Carolina will use unique and aggressive initiatives to promote the brand and increase demand for South Carolina built boats in regional and national markets in an effort strengthen the state’s boat manufacturing community. +++ To learn more about Boats Made in South Carolina – visit: www.boatsmadeinsc.org
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Featured Manufacturer www.huffmancorp.com Featured Manufacturer:
The Huffman Corporation
A Better Approach through Innovative Technology
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he Huffman Corporation, a global manufacturing company headquartered in the Upstate community of Clover, celebrated the sale of its 1,000th precision CNC machine on June 19, 2008. This milestone was achieved through over three decades of innovative work, and reaffirms the fact that Huffman is a leading manufacturer of multi-axis, computer numerical control (CNC), high-precision machine tool systems. Today, as a subsidiary of The Springs Company, the Huffman Corporation has become a trusted international supplier for Fortune 50 companies that use their machinery to make components for the gas turbine and medical markets. Through technological advances and an extraordinary commitment to ISO 9000:2000 quality and customer service, the Huffman Corporation is a perfect example of the dramatic changes taking place to the manufacturing business model.
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“Stan Huffman redefined the economics of manufacturing with the development of the eight-axis CNC grinding machine,” said current Huffman President and CEO, Roger Hayes. “Huffman recognized that there were better ways to make machinery that could increase product performance, reduce production time, and lower costs for our manufacturing customers who could in turn lower costs to their customers. This approach is the same philosophy that the Huffman Corporation follows today in every machine we manufacture.” Huffman’s 1,000 machines have had a tremendous impact in enhancing our quality of life by making products better. Their machinery has been used to shape metal femoral knee implants to match a patient’s natural bone, to refurbish expensive blades for gas turbines that provide electricity throughout the world, and t even eliminate the squeaking sound in power steering for automobiles. Yet, despite the advances Huffman’s machinery delivers to manufacturers, creating precision machinery is a complex process.
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Steve Mann/Shutterstock
The Huffman Corporation got its start in 1961 when Stan Huffman founded a machine tool distribution company that sold machines to the gas turbine industry. Always the innovator, Huffman began manufacturing machine tool systems in 1969 and shortly thereafter, radically changed the grinding machine tool
industry when he developed and patented an eight-axis CNC grinding machine that increased productivity and ROI (return on investment) for their clientele. Thanks to this innovation, the end product was able to last 8 times longer, using just one machine instead of several machines.
from top: Brian Weed/Shutterstock/The Huffman Corporation
The Huffman Corporation uses virtual reality technology to design and simulate CNC machine operations before any physical manufacturing takes place. With a staff of 73, Huffman makes about 3 computerized machines a month. That’s impressive when considering the fact that each machine is custom built to meet the purchaser’s needs. Development of grinding machines requires a collaborative approach with customers from design to production of the end product so that optimal gains in productivity and accuracy can be realized. In doing so, Huffman takes a unique approach in the beginning of the design process – through virtual design. After identifying the needs of the customer, engineers design the machinery through advanced software that utilizes virtual reality technology that can simulate the operation of the machine. By using this software to create a model of the new product, customers receive an early demonstration of the real gains in productivity. Virtual design also eliminates the trial and error process associated with building machinery because any problems or changes needed are identified and resolved first electronically before physical manufacturing of the product starts. This reduces overhead costs and advances the timetable for delivery of a finished machine. “I like to say that if you’re a nerd, then the Huffman Corporation is nerd heaven for you,” says Hayes. “Our engineers collaboratively create an environment where the needs of the customer are worked into the design, which is then tested numerous times before plans for production start. Virtual reality software has allowed Huffman to efficiently manufacture machinery by enhancing the accuracy and productivity for all of our systems.” When the design is approved, then the production of the machinery begins with the assembly of thousands of parts that must work harmoniously in accordance with the needs of the client. Once built, engineers thoroughly test the functionality of the systems, but rarely run into situations where operation errors delay the delivery of the end product – this is due to the meticulous attention given to the design process conducted in virtual design. The system is then delivered to the customer and is ready for use. But the delivered finished product does not end Huffman’s role in the function of the machinery. Huffman supports its client’s investment throughout the production lifecycle with a complete range of products and services that keep its clientele on the cutting edge of technology and competitiveness. This includes providing ongoing software and hardware upgrades to the machine tool system that allows additional gains in productivity and capacity. Technical support is accessible 24/7 through modern technology like PC Anywhere™, which allows machines to call Huffman and share screen diagnostics for immediate access.
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HC -205 (Top) is a laser system that is a fusion welder - this machine provides precision refurbishing of worn gas turbine components. HS - 155R (Middle) is a grinding machine used in the turbine, medical, and automotive sectors. WJ - 155 (Bottom) is a waterjet system that provides coating stripping, hole drilling, and cutting of gas turbine components. October 2008 •
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Featured Manufacturer www.huffmancorp.com Featured Manufacturer:
“The end user of Huffman machinery does not have to deal with a middle man for technical related questions. We stand by quality of the system from the time it leaves our plant and the duration of its use. Whether you’re in Singapore, Italy, or here in the United States, Huffman employees proudly stand ready to assist our customers in keeping their machines in production – generating revenue and productivity - for their manufacturing process day in and day out,” says Hayes.
The level of success achieved by the Huffman Corporation is due to the company’s long term commitment to provide a better approach in manufacturing machinery. Solving problems and creating solutions is a hallmark in the development of every Huffman machine tool system, and is the reason for the sale of over 1,000 systems that are being used throughout the world to make products faster and better. +++
Manufacturer Profile: The Huffman Corporation
The Huffman Corporation's CNC machines are used in high-precision applications such as shaping knee impants.
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Product l Multi-axis CNC Tool Systems Location l Clover, SC Employees l 73 Years in Business l 47 Client Base l Manufacturers in the Flight and Industrial Gas Turbine and Medical sectors worldwide Output l 3 Computerized Machines per month 2007 Sales l $16.3 million Website l www.huffmancorp.com
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from left: The Huffman Corporation/kuedhi/Shutterstock
According to Hayes, most problems encountered by clients are user errors, and the problems are usually resolved quickly without a prolonged period of downtime for the machine.
Expanding Your Business.
South Carolina Style
We have a good thing growing here in South Carolina. There's plenty of elbowroom, unmatched recreational opportunities, low cost of living, a willing workforce, an unbeatable business climate and the South Carolina Power Team. The Power Team is made up of Santee Cooper, the state’s 20 electric cooperatives and Palmetto Economic Development Corporation. Together, we’re committed to building strategic partnerships with smart, forward-thinking businesses. And we’re equally committed to delivering reliable, quality electric power at some of the lowest rates in the nation. So when it's time to expand, businesses and industries that already call the Palmetto State home are deciding to expand right here. To find out more, visit www.scprimesite.com or www.scpowerteam.com. As they say down here, the fruit doesn't fall far from the tree… It's all shade to us.
Dependable Power. Dependable People.
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Made in SC Feature
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Vision for Manufacturing A Look at Senator Fritz Hollings’ Service to S.C. Manufacturers
In part due to our constantly bombarded ears, and in part due to the sheer number of people seeking to ascribe such transformative status to their own lives, this cliché’s creative repetitiveness and clever literal juxtaposition doesn’t seem as creative or clever anymore. In a world dominated now by poll-driven, focus-group tested, immaculately-tailored politicians (and the slick, surreptitiouslyworded sound bites they deliver), there is a distinct feeling that we have “heard all this before.” Leaders who truly changed the world, it seems, never had to worry as much as today’s elected officials about sculpting their legacies – they were too busy letting their actions speak for them. That’s exactly how former U.S. Senator Fritz Hollings has led his life. For a man who has always been eminently quotable, Hollings has nevertheless had much use for clichés or for sound bites. Nor does he particularly care whether the world he has most assuredly transformed during his six decades of public service attributes those changes to his efforts.
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At eighty-six, Hollings is still far too busy shaking things up to start looking in the rearview mirror. With the same spitfire barrage of brutal honesty and unequivocal determination that defined his career as State Representative, Lieutenant Governor, Governor, and six-term U.S. Senator (the seventh-longest Senate tenure in American history), he continues to draw fresh beads on the problems assailing an American economy he devoted his life to revolutionizing. “We’re in a hell of a fix,” Hollings says, his deep, booming Southern vibrato literally bouncing off the walls of his Charleston office. “We’re going out of business. We’ve got to rebuild our economy, get a competitive trade policy.” He should know. During his four decades in the Senate, Hollings authored or co-authored five trade bills, and remains one of the most outspoken defenders of policies aimed at protecting American manufacturing jobs. Over that time, he’s always been one step ahead of the changing global economy – not to mention the commentators who seek to make sense of it. “The world isn’t flat,” he quips in reference to the famous globalization manifesto by author Thomas Friedman. “It’s still round. We have people ready to work, but the government’s not.” Up on Hollings’ wall as he speaks is a personally-inscribed pic-
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photography provided by Honda of South Carolina
L
ike most clichés, the one about human beings changing the world in which they live – rather than being changed by it – has lost much of its ability to impress.
Senator Ernest “Fritz “Hollings 1986
ture of John F. Kennedy, one of the few political mementos which Hollings has left after a fire destroyed his Isle of Palms home nine years ago. In addition to hundreds of irreplaceable personal effects, the fire also consumed volumes of notes to be used in Hollings muchanticipated biography – Making Government Work, which was released to bipartisan acclaim this July. Much like the indelible stamp Hollings has left on his state, nation, and the world, however, nothing seems capable of extinguishing the ideas he continues to promote on behalf of American manufacturers.
photography provided by Ernest F. Hollings
“We are making a better BMW in Greer,” he says of South Carolina’s Upstate manufacturing giant. “They’ve been making cars in Germany for 100 years and we just started up – making a better car. We’ve got education and we’ve got skills.” “To get to the point, it’s not the state’s fault – its Washington’s,” he says, referring once again to a fundamentally-flawed trade policy. As he did over a half-century ago, Hollings is still making the case for South Carolina manufacturers. The enduring impact
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of his legacy, however, stems not from his advocacy, but rather his actions.
oVEr A BottLE of BourBon In the late 1950’s, a few years after he was sworn in as South Carolina’s Lieutenant Governor, Fritz Hollings experienced an epiphany. “I was attending a Lutheran Church conference in Dayton, Ohio where I got religion on technical training,” he writes in Making Government Work. “As the Reverend Heyward Epting and I were coming out of late services, I spotted a funny looking industry all lit up. ‘Heyward, let’s go over there and see what they’re making,’ I said. The answer? Skilled laborers! Classes in mechanical drawing, welding, punch drills, and all sorts of trades were going on full blast at eleven o’clock at night.” Hollings never forgot what he saw, and he vowed one day to bring the same technical training programs to South Carolina. “They had people in there repairing cars up on jacks, doing mechanical drawings, and all kinds of things,” he recalls. “I said if
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After becoming South Carolina’s 106th governor in 1959 (at the ripe old age of thirty-six), Hollings went right to work on his idea. First, he dispatched a team to Ohio to learn what he called “the ins and outs” of the state’s training program, a trip facilitated by his personal relationship with Ohio Gov. Michael DiSalle.
tAKing His sHoW on tHE roAD
Before long, however, the proposed system of technical colleges began encountering stiff political opposition at home.
Armed with his training infrastructure (and the inimitable, persuasive personality which had brought it into existence), Hollings was able to flex his muscles as an industrial recruiter, offering company executives access to workers with skills specifically tailored to meet the needs of their operations.
Not about to see his vision for the state’s manufacturing sector die, Hollings himself dashed off for a meeting with powerful Senate Finance Chairman Edgar Brown – but not before an aide had preceded him with a bottle of the Senator’s favorite Bourbon.
His successes not only boosted the training program’s value, but further solidified his status as the man who transformed South Carolina from a fading agrarian state into a manufacturing powerhouse.
“I knew what it would take to soften up the chairman of the Finance Committee,” Hollings says. “I told him ‘Colonel, let’s have a little touch.’”
Prior to Hollings, South Carolina governors had rarely ventured beyond their borders in search of new jobs and new industries.
And there, over swigs of Bourbon, one of the nation’s most successful technical college systems was born.
“George Tillman, he was an outstanding governor but he thought it was undignified to hustle and chase after industry,” Hollings says.
“I told him I wanted my technical training,” Hollings says. “But he said ‘you don’t want that, that’s the school for dummies.’ He told me they had already closed the area trade schools and that they weren’t going to start them up again.”
Hollings 1961 President Kennedy and
Hollings then invoked promises he had made to two top industrial recruits to pay for training if they agreed to relocate to South Carolina. “I told him he was going to break my promise,” Hollings says. At that point, Brown agreed to commit a small sum of $250,000 to the program – and even that amount was only for one year, but Hollings was in the door and he knew it. The next day, the State Legislature approved the funding and, as Hollings says, “the rest is history.” A few weeks later he was in Greenville, S.C., breaking ground on the first facility. “We shoveled a bit of dirt, and that started Greenville Tech,” Hollings writes in his book. “Our idea was to have one of these
(1922)
Ernest Frederick “Fritz” Hollings was born in Charleston, SC
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facilities within an easy drive for any citizen in the state who wanted to learn new skills. Years later, U.S. News and World Report did a survey of technical schools and rated ours number one!”
• Made in SC
In Making Government Work, Hollings recounts his approach, a whirlwind of international travel aimed at luring top executives to locate their manufacturing facilities in the Palmetto State:
“I touted South Carolina’s advances in education, its expanded highway system, the growth of the port of Charleston, the state’s fiscal responsibility and pay-as-you-go government, the individual’s right to work, and our conservative spirit that championed individual responsibility,” Hollings writes. And, of course, “I described how our technical training program matched our labor force’s skills to the needs of new businesses.” In seeking to elevate South Carolina’s economic fortunes, Hollings was battling on two fronts – creating the proper business climate at home while at the same time promoting his product on the road. It was a dizzying, draining effort, with political opponents criticizing Hollings at every turn. They even gave him grief for abusing the “perk” of a state airplane.
(1942-45)
Graduates from the Citadel and receives commission from the U.S. Army. Hollings was decorated for his service as an officer in the North African and European campaigns in World War II.
(1948)
(1952)
Elected to the South Carolina House of Representatives at the age of 26.
Became the S.C. House Speaker Pro Tempore.
www.madeinsc.org
photography provided by Ernest F. Hollings/Shutterstock
I was ever elected governor, I was going to get myself one of those (programs).”
photography provided by Ernest F. Hollings/Shutterstock
But there was to be no dissuading the young, ambitious governor from realizing his vision of a new, improved South Carolina economy. In addition to pushing through the technical schools and other infrastructure enhancements, Hollings also intuitively knew that his vision for economic advancement hinged on restoring fiscal responsibility to state government. Accordingly, he had to balance South Carolina’s budget and end its habit of deficit spending – a battle he continues to wage as it relates to the federal government. After passing a balanced budget law through the S.C. General Assembly, Hollings joined State Treasurer Jeff Bates on a trip to New York to meet with credit rating agencies. The result was one of the most significant economic achievements of his administration. Within weeks of Hollings’ trip, South Carolina had become the first Southern state to earn a coveted AAA credit rating. “That rating gave us instant credibility as we met with industry leaders,” Hollings writes in his book.
Hollings’ successor as governor, Donald J. Russell, was appointed to the vacant Senate seat. Within days, Hollings was besieged by friends and industry leaders urging him to run against Russell in the next election – just a year-and-a-half away. Initially reluctant, Hollings ultimately decided to give it a go – and this time he won not only the Democratic primary against Russell, but the Senate seat as well, edging out the nominee of an increasingly-potent Republican party. Surely with the entire Deep South flip-flopping to Republicanism, Hollings wouldn’t last long in the U.S. Senate – but four decades later, he was still there. One big reason was that from his very first day in the most exclusive club in the world, Hollings was all about protecting South Carolina jobs.
Joe Dimaggio and Fri ts Hollings 1963
Everything, it seemed, was full speed ahead not only for Fritz Hollings, but for the State of South Carolina as well.
rEVErsALs AnD rEsurgEncE At the perceived height of his power, however, Hollings suffered an ignominious political defeat. Limited to one term as governor, he ran for the U.S. Senate against incumbent Olin Johnston in 1962 and lost – badly. “He flat out trounced me,” Hollings says, noting that his efforts to paint Johnston as a tool of the Yankee labor bosses had failed miserably.
“The textile industry was spending $2 billion a year upgrading equipment and was very productive, but it was battling other countries that were ignoring our trade agreements,” Hollings writes in Making Government Work.
Despite his best efforts to promote fair trade and pro-manufacturing policies, America’s trade deficit during Hollings’ first decade in Washington ballooned to nearly $5 billion, and over 400,000 textile jobs were lost. Getting his colleagues to see the damage of what “unfair free trade” was doing to American jobs – and particularly manufacturing jobs – quickly became one of Hollings’ career-long obsessions. “I made it clear that the battle to protect the textile industry was a top priority and would command my attention as long as I served in the United States Senate,” he says.
After his defeat, Hollings went back to his “first love,” practicing law. Scarcely two years later, however, a “bolt-out-of-the-blue event” occurred which propelled him back into the political spotlight.
It did. In addition to fighting for tariff protections and a reduction in America’s trade deficit, Hollings brought to the U.S. Senate the same commitment to fiscal responsibility that he had championed years earlier in South Carolina. In 1986, for example, Hollings teamed up with two Republicans – Phil Gramm of Texas and Warren Rudman of New Hampshire to sponsor a balanced budget bill for the federal government.
Sen. Johnston died on April 18, 1965, and just four days later,
Their plan worked, too, that is until Congress found novel ways
(1954)
(1957)
(1958)
(1962)
(1963)
Elected Lieutenant Governor at age 32 – the youngest in South Carolina to serve in that position.
Observes technical training in Ohio and decides to create a similar program for South Carolina.
Elected Governor of South Carolina at age 36, making him the youngest elected governor of the 20th Century.
Challenges incumbent U.S. Senator Olin Johnson for the Democratic nomination and loses badly – winning only 1 county out of 46.
In his last days as Governor, Hollings helps to peacefully integrate one of the State’s largest public universities when Harvey Gantt became to the first African American to enroll at Clemson University.
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In both cases, he watched as wellheeled special interests used campaign money to make politicians their puppets, a corrosive influence that riles the Senator to this day. “Money for reelection is ruining Washington,” he says, a theme that he echoes in his book repeatedly.
Windham, who is currently an industry consultant and public policy lecturer at Stanford, says that America had become a “valley of death” for good ideas, which were being churned out with regularity, yet failing to make a difference on the bottom line of American manufacturers – particularly smaller manufacturers.
goVErnMEnt tHAt WorKs - A Vision for MAnufActuring While Hollings labored during the late Seventies and early Eighties to open America’s eyes to the fundamental realization that our trade policies were flawed, he suddenly had another flash of inspiration – one that ended up securing his status as not only a champion of manufacturing, but as one of the most visionary politicians of his time. Just as Hollings had intuitively recognized a gaping hole in South Carolina’s infrastructure years earlier (which he worked to fill with technical training), he now identified a similar and equally-pernicious threat at the national level. America was winning the innovation race – literally inventing the future with its technological advancements. Unfortunately, it wasn’t doing a very good of marketing those advancements to the rest of the world – and it was doing an even worse job of making them work for the industries at home which needed them to stay profitable.
(1970)
Publishes The Case Against Hunger: A Demand for a National Policy, which addressed the disturbing reality of malnutrition and hunger in South Carolina and throughout the United States.
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• Made in SC
“We were not taking promising ideas and integrating the technologies needed to compete internationally,” he says.
Hollings at Milliken 1992
Enter Fritz Hollings, who in April of 1987 introduced the Technology Competitiveness Act, a dramatic escalation of the federal government’s role in facilitating the “technological integration” of the American economy.
“We need new government policies, starting with lower federal deficits and stronger enforcement of our trade rules. But a vigorous technology policy is vital.”
(1980-1981)
Served as the Chairman of the United States Senate Budget Committee
“It is high time the federal government brings its technology policy into line with this urgent new reality,” Hollings said in introducing his bill on the floor of the Senate. “We need new government policies, starting with lower federal deficits and stronger enforcement of our trade rules. But a vigorous technology policy is vital.”
-Senator Fritz Hollings
Hollings proceeded to write that new policy and to give American industry the tools it needed to turn innovation into profit.
»
(1984)
Ran a short lived campaign for the Democratic nomination for the President of the United States against Walter Mondale, John Glenn, and Cary Hart.
(1987)
Introduces the Technology Competitiveness Act that was instrumental in the creation of Manufacturing Extension Partnerships (MEP’s) throughout the nation.
(1987-1995)
Served as chairman of the United States Senate Budget Committee on Commerce, Science, and Transportation.
www.madeinsc.org
photography provided by Ernest F. Hollings/Shutterstock
“The United States at that time was producing great innovators and winning Nobel Prizes, but we were consistently falling short in taking technology and using it to make a profit,” says Pat Windham, the top science and technology expert on the Senate Commerce Committee, which Hollings chaired. “We were losing to industry-heavy countries like Germany and Japan – especially in the semiconductor and electronics categories.”
to weasel out of the law’s enforcement provisions – much like the trade agreements Hollings was laboring tirelessly to put teeth into.
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This includes (during 2004-2007): • New and Retained Sales: $809.6 Million • Cost Savings: $58.4 Million • Capital Investments: $129 Million • South Carolina Jobs Created and/or Retained (2004-2007): 5,336 • Number of Manufacturers Served (2004-2007): 6,069
Decried by its critics as everything from central planning to a government handout, Hollings’ knew he had to structure his proposals competitively in order to meet these objections. His approach was not to create a large new federal bureaucracy, but instead to strengthen and “build upon existing and proven models” within the government structure. In the end, he not only convinced the Congress of his plan’s feasibility, responsibility and importance, but also President Ronald Reagan and his two successors, George H.W. Bush and Bill Clinton. Without question, one of the most transformative elements of Hollings’ legislation was the creation of Manufacturing Extension Partnerships (MEP’s), public-private partnerships that provided a host of technical assistance at the state level under the oversight of the U.S. Commerce Department. Today, the South Carolina Manufacturing Extension Partnership (SCMEP) is one of the most successful of these collaborative ventures in the nation, working to protect existing jobs and create new ones by giving local manufacturers access to the tools they need to solve problems and grow their businesses. The results have been nothing short of cathartic for South Carolina businesses looking for an edge in an increasingly competitive climate. “SCMEP helped us in employee training and strategic planning,” says Cody Baker, plant manager of Charleston Marine Containers Inc., which manufactures storage units for the U.S. military. The 158-employee, North Charleston company operates from a 240,000-square-foot, old Navy base facility, where containers are welded, painted and assembled.
(1993)
The Hollings Cancer Center opens at MUSC. Since the late 1980s, Hollings was instrumental in garnering resources for the establishment of the first campus dedicated to cancer care and research facility.
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• Made in SC
(2001)
Returned to the position of chairman of the United States Senate Committee on Commerce, Science and Technology.
“The demand was there for our product, but we couldn’t get it out fast enough,” Baker says, noting that his company is the only U.S.-based manufacturer of such containers. “At the end of June 2001 we contacted SCMEP, and their field representatives reviewed our goals, mission, and objectives and suggested ways for us to meet them. In August 2001, we experienced a production breakthrough.” Another success story is minority-owned JBE, a metal finishing business in Hartsville that produces more than 80 sub-assemblies of headlights, taillights, battery cables, jet skis, mufflers, and other parts for its large automotive customers. On several occasions, JBE has leveraged SCMEP’s assistance, both in the implementation of operational enhancements as well as in securing its status as a certified minority manufacturer with the International Standards Organization (ISO). “SCMEP has been an invaluable partner in JBE’s continued success and growth,” says Jerry Ellison, the company’s owner. “Their specialists have provided us the assistance necessary to focus on client demand fulfillment and increased competitiveness in an effort to retain manufacturing business in the state and improve the quality of life in our area. With them, we have developed a business plan for a lean manufacturing operation, created jobs, brought in more business, reduced our lead times, improved our scrap rates, and received the ISO stamp of approval, all of which have made us more profitable.” Over the last four years, SCMEP’s economic impact on behalf of South Carolina manufacturers stands at nearly a billion dollars – with over 5,000 jobs created or retained.
(2003)
Hollings announces he would not seek a 7th term as U.S. Senator
(2005)
(2008)
Retires from the U.S. Senate (succeeded by Jim DeMint) and returns to the Lowcountry of South Carolina.
Publishes Making Government Work – a political memoir that takes aim at the “flaws” in our current political system.
www.madeinsc.org
photography provided by Ernest F. Hollings/Shutterstock
Overall Economic Impact 2004-2007: $997 Million
“Not bad for a government program,” Hollings says, one which he is quick to point out pays for itself due to the expansion of the tax base in the local communities where it serves.
AN ONGOING LEGACY As companies across the Palmetto State continue to grow and thrive thanks to his efforts, Hollings continues to be their most vocal advocate. He’s also the driving force behind a groundbreaking cancer center that bears his name in Charleston, as well as a highly-sought after speaker, commentator, and now, published author. “He is incredibly strong-willed, blunt-speaking, and fiercely-dedicated to doing what he thinks is right,” Windham says of his former boss. “You may not agree with his views, but you can never say that Hollings was inconsistent.” Hollings’ bluntness is indeed the stuff of political legend. In a famous nationally-televised interview with Sam Donaldson (who was known for the gaudy toupee he sported), Hollings quickly found himself getting backed into a corner by the network newsman as to where he had purchased the suit he was wearing. Without hesitation, Hollings fired back that his suit was “from the same place you got that wig.” In a debate with former space hero and budding politician John Glenn, Hollings derisively asked the ex-astronaut, “but what have you done in this world?”
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Once, a political opponent pressured Hollings to take a drug test. His response? “I’ll take a drug test when you take an IQ test.”
Looking at power in a new L ight.
©2008 Progress Energy Carolinas, Inc. and Progress Energy Florida, Inc. On the road promoting his book, the former Senator is still dispensing with the pleasantries and calling things just like he sees them. CFL_4.5x7.5.indd 1
8/12/08 9:59:59 AM
“We ought to sober up and start paying our bills,” he recently told a crowd of more than 200 people at a coastal book-signing event, “and get into the trade war.” Hollings goes to work in his Charleston office every day with his wife Peatsy at his side, as she has been for the past thirty-eight years. “People always wonder how Peatsy and I stay together with so many divorces around us,” Hollings once quipped about his marriage. “As a friend of ours used to say, ‘It’s simple. They have a lot in common. They’re both in love with the same fella.’” With his inimitable humor, biting wit, indomitable spirit, and unique ability to anticipate –and then meet – the needs of American businesses, Fritz Hollings has indeed changed the state, the nation, and the world in which he lives. Global trends have come and gone, but his vision and ingenuity in building the infrastructure manufacturers needed to stay competitive in a rapidly-changing world has made the difference for hundreds of South Carolina companies and thousands of South Carolina employees. Fritz Hollings has done a lot more than just make government work these past six decades – he’s made business work as well. Some people may call that a cliché, but in Hollings’ case, it sums up an ongoing legacy that many manufacturers across South Carolina – and the nation – couldn’t have done without. +++
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Workforce Development www.scmaritime.org
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• Made in SC
www.madeinsc.org
Capturing the Spirit of South Carolina
Turn back the calendar. The residents of the City of Charleston and the State of South Carolina are reconnecting with a bygone era, and in so doing, they intend to address fundamental education issues. In a city known for historic preservation, this initiative isn’t about buildings; this time it involves a ship - the Spirit of South Carolina. This 140foot traditional sailing vessel offers a unique portal into the region’s history, while meeting the needs of South Carolina’s students. Launched on March 4, 2007, this elegant tall ship, envisioned originally as a means of rekindling interest in the region’s rich maritime heritage, has become the first genuine wooden sailing ship made in South Carolina in more than 100 years. From left: The Spirit of South Carolina under sail. The Spirit of South Carolina being lowering into Charleston Harbor. Student studies a nautical compass. Ashley Hall students learning how to line haul.
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Workforce Development www.scmaritime.org
T
he inspiration for building the tall ship that eventually became the Spirit of South Carolina materialized over a couple of beers one night in 2000. Mark Bayne and Charlie Sneed, two Charleston boating enthusiasts, confessed that building such a ship was a shared lifelong dream. The two decided to set up a nonprofit foundation under the South Carolina Maritime Foundation to support such an effort. In order to create the Spirit of South Carolina, it was necessary to locate feasible and precise plans. Soon after, a $3 catalog of historical ship plans that the two ordered from the Smithsonian’s National Museum of American History set them to work. The 150-ton Spirit of South Carolina was designed and built along the lines of the traditional pilot schooners that collectively served as a vital component of the region’s busy mercantile scene in the 18th and 19th centuries.
The Spirit of South Carolina is a pilot schooner reminiscent of the Frances Elizabeth, a vessel that was originally built by the Samuel J. Pregnall & Brothers Shipyard that was in downtown Charleston in 1879, and served pilots in this city’s harbor for 25 years. Pilot boats had to be very fast because the first pilot to reach an incoming ship got the job of bringing the vessel in the harbor, and was then the only recipient of the pilot’s fee. Pilot boats had to be seaworthy and able to withstand almost any weather. The pilot schooners serving major shipping ports such as Charleston were exposed to the rigors of the open sea. The Frances Elizabeth sank in 1912 in the Cape Fear River in North Carolina due to a fire and explosion from its gasoline engines. Like its forerunners, this ship was built with traditional methods, including lumber grown in South Carolina such as live oak, Angelique, long-leaf yellow pine, Sapele, Purple Heart and Douglas fir. Every element of this ship was made in South Carolina, including both masts and all the necessary rigging. For safety, the ship has two Cummins Diesel engines that were donated by the North Charleston company and carries the latest electronic communication and navigational technology. This ship also has a crucial function, serving to deepen and enhance the education of young students from around the state. “The Spirit of South Carolina is an ambassador for our state,” explains Brad Van Liew, Executive Director of the South Carolina Maritime Foundation. “Our mission is to provide a unique educational platform that promotes responsibility, teamwork, and character building to students. There’s really no other form of education that comes close to the power of a sail training program.” The Spirit of South Carolina is designed to carry 20 young people on extended educational sailing voyages organized by the South Carolina Maritime Foundation. The Spirit of South Carolina primarily accommodates fifth through eighth grade students on day sails out of Charleston and along the South Carolina coast. The ship is staffed with a captain and several mates, as well as a number of specifically trained educators. Math and science lessons comprise the primary curriculum for these students, but those lessons also incorporate a broader understanding of the history and culture of the region. “There’s really nothing like the experience of sailing aboard a classic ship,” says Van Liew. “For young kids, being part of a crew
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• Made in SC
on a magnificent vessel like the one we are launching can truly be a transforming experience. It’s challenging and educational, and it provides an environment that fosters important discoveries about yourself and about the natural world.” The experiences made possible by crewing on board greatly enhance traditional educational offerings. Few lessons manifest themselves as clearly as those imparted through hands-on experience. These young student crewmembers participate in hauling a 200-pound wooden gaff aloft as they raise the ship’s mainsail, the engineering principle of mechanical advantage quickly becomes apparent, as well as the importance of teamwork and clear communication. It is moments such as this that underlie the premise of the entire initiative’s unique opportunities in a setting that cannot be replicated anywhere else. As the ship makes its way along the Carolina coast and beyond, those on board learn firsthand about oceanography and marine biology. In assisting with the ship’s navigation, students garner a better understanding of geometric theories and applications, and the science of physics begins to resonate as they develop insights about how sailing vessels perform. Weather and astronomy intertwine as the students become more closely acquainted with piloting, and history permeates their discussions as the ship visits new destinations and as they are confronted with new environments and experiences. Exposure to the traditional lessons of sail training helps ensure that participants develop to their full potential, learning a form of leadership based on a respect for their peers and a broader understanding of the world. The challenges inherent in going to sea – of working as a vital member of a crew where the safety of others is often dependent upon your actions – can accelerate character development and convey important, formative lessons more effectively than most any other life experience. This idea is not exclusive to South Carolina. Sail training is a well established concept for delivering experiential education. It’s practiced throughout the coastal U.S. and abroad. Though various port cities in the southeastern U.S. have frequently played host to sail training vessels, the region truly hasn’t had a full-fledged ship to call its own until now. The Spirit of South Carolina is the only fully operational traditional sailing vessel over 100 feet representing the southeastern United States. “The student crewmembers who travel aboard this ship,” explains Van Liew, “are in for a terrific experience. Sail training not only underscores the important concepts learned in a classroom, but it teaches the qualities of stewardship, resourcefulness, and humility, and it does so in subtle yet enduring ways. We know from experience that these students will gain a greater appreciation for the power, grace, and fragility of their environment, and we know they’ll learn to respect teamwork as well. It may sound like a bold claim, but once you put a sail training program in place, it starts developing leaders, and committed individuals who will grow to benefit any community. In that way, the reach these programs have can be absolutely amazing.” +++ www.scmaritime.org
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1 2
3 4
1. Charleston Mayor Joe Riley helps launch the Spirit of South Carolina. 2. Georgetown students studying compass. 3. Students perform water tests. 4. Ashley Hall students studying below deck. 5. Student taking turn at steering ship. 6. Spirit of South Carolina sailing out of Charleston Harbor. 7. Lessons at the stern. 8. Students track the ship’s course.
5 6
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Currency Manipulation and South Carolina Manufacturing By Thomas S. Mullikin
Currency manipulation is a topic that occasionally rears its head in the mainstream media, but it is a problem and phenomenon that is not often understood by those it affects most. Many Americans would likely shrug when told that the governments of some nations artificially inflate or deflate the value of their currency, not realizing what an enormous impact that action has on imports and exports. The problem is, the larger the amount of trade done with a country that engages in this practice, the more the impact of an artificial currency value is compounded. When a country manipulates its currency, most often keeping it undervalued on the global exchange markets, that country’s goods are less expensive in a country with a more valuable currency. The country that manipulates its currency by keeping its value artificially low can flood the market with its goods, which can be purchased for much less than the cost of manufacturing, marketing, and selling goods domestically.
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• Made in SC
Most economists agree that freely floating currencies lead to natural supply and demand outcomes. If goods produced in Chile are suddenly more expensive in America because the Chilean currency increases in value or the value of the dollar drops, Americans would be more likely to buy American-made products than those manufactured in Chile. When the value of the Chilean currency returns to a more equitable rate, Americans will once again resume consumption of Chilean goods. This balance is key to a free and fair market. When one player seeks to change the rules in their favor, everybody suffers. Perhaps the most egregious example of
currency manipulation in the world today is practiced by the Chinese government, which has kept its currency artificially pegged to the value of the U.S. dollar for decades. Until July 2005, the Chinese yuan was attached to the American dollar at an 8.3to-1 ratio, meaning if the value of the dollar fell across the global markets, the value of the yuan fell by a corresponding amount. The problem with this practice is it means that Chinese goods will always be cheaper on the American market, regardless of the value of the dollar. In July 2005, China announced it would tie the value of its currency to a “basket of currencies,” but refused to disclose which currencies it was using in its calculations. In the three years since, the value of the yuan has risen about 17 percent against
www.madeinsc.org
photography Shutterstock
World Report
$1 = U.S.
BRITISH POUND
0.70 euro 6.85 CNY
CHINESE YUAN
the dollar, helped in large part to the steep decline the dollar has seen over the past several fiscal quarters. The problem, most economists agree, is that the yuan is still undervalued by as much as 40 percent. So instead of holding its current 6.9-to-1 ratio, many argue the real ratio should be about 4.1-to-1. In June, Dr. Peter Morici, Professor at the Robert H. Smith School of Business at the University of Maryland, wrote in his column that the recent decline in the value of the dollar, the increase in fuel prices, and concerns about the quality and safety of Chinese-made goods has made the smallest of dents in the trade deficit with Beijing. “However, China’s undervalued currency continues to provide a 35 percent subsidy on Chinese exports to the United States,” Morici writes. In a free and fair global economy, where the market determines the relative value of goods and currencies, values are supposed to fluctuate based on myriad factors. But one
www.madeinsc.org
country, especially a juggernaut the size of China, manipulating its currency throws the entire market out of whack. Presidential administrations have been reluctant to call the Chinese currency manipulation by its name: cheating. China currently holds more than $400 billion in American dollars and could single-handedly swamp the global markets in American currency, leading to recession compounded by inflation of unseen proportions. Senator Lindsey Graham of South Carolina has co-sponsored legislation that would impose a 27.5 percent tariff on the import of Chinese goods to offset a large portion of its currency handicap. But the Administration has not acted. Bipartisan legislation that would help right the ship has stalled in Congress for five years. Similar legislation has been proposed, and is stalled, in the European Union. South Carolina has seen nearly 100,000 of its manufacturing jobs disappear over the past decade. Much of this exodus was caused by cheap imports coming in from abroad and the availability of cheap labor overseas. Currency manipulation makes foreign goods cheap and renders foreign workers underpaid.
In short, currency manipulation strangles the domestic manufacturing economy. It makes our goods expensive overseas; it makes our workers uncompetitive on a pay scale; and it floods the American market with cheap foreign imports. South Carolina’s manufacturing employees, who still number a quarter million strong, need to remain vigilant and continue to educate local, state, and federal leaders on the detrimental impact of currency manipulation on our state and nation. Tom Mullikin is a senior attorney with Moore & Van Allen, PLLC, and leader of the firm’s Government, Policy & Regulatory Affairs team. He has managed issue campaigns across the nation on currency manipulation and other illegal trade practices impacting American manufacturing. www.mvalaw.com
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*figures accurate at time of printing.
photography Shutterstock
What is a U.S. Dollar worth?
0.56 GBP
Cost Saving Tools www.gibsoninsurance.net
Custom Health Plans Save Money by John Carroll
“We had been working with several companies since the early days, dating back to the 1980s,” says Gibson, founder and president of Columbia-based Gibson & Associates. “Seeing the opportunities, I began researching and contacting carriers to see what we could do to create real value for manufacturers of all sizes.”
Michael Leatherwood, founder and president of Leatherwood Electronics and Manufacturing in North Charleston, was one of the first to take advantage of the plan. “The Gibsons have helped our business immeasurably. Sure, you can calculate the overall dollar savings,” Leatherwood says. “Where we’ve seen a difference is in employee satisfaction. Our employees are happy with the coverage they receive, and as a result, they plan to stay right here. They want to take advantage of the key benefits the plan provides.”
As with any new product or service, some were hesitant to make the transition to a new plan. The plans earliest participants, however, quickly saw a sizeable return on their investment.
Additionally, the South Carolina Manufacturers Alliance had often considered an association health plan, but there never seemed to be a good fit – a plan that would really save members money and have staying power. According to Lewis Gossett, SCMA President and CEO, “one of the things that intrigued us the most about the 2007 merger with the Lowcountry Manufacturers Council was the Carolina Care Plan. We knew the LMC had vetted this plan extensively and that a number of its members were indeed saving money. We spent a lot of time going over the details of the plan, including meetings and reviews with David Gibson and Carolina Care. We liked what we found, and I’m pleased with the results. A number of SCMA members have now signed on and are realizing substantial health care savings.”
Since 2000, more than 200 manufacturing companies across South Carolina have participated. During that time, thousands of manufacturing employees and their beneficiaries have benefited from the coverage. Total combined company savings have averaged
As with many South Carolina manufacturers, Gibson & Associates has a distinctive family atmosphere. Gibson’s sons handle everything from account service and sales to the financial and administrative aspects of the business. The “boys,” as they’re
Gibson’s vision turned into a ground-breaking, five-year project that involved a single carrier, Carolina Care Plan. The plan features several options, at least one of which would suit virtually any manufacturer in the state. “We worked hard to learn exactly what the owners, plant managers, and human resource managers really wanted and needed,” Gibson says. “Then we went to work crunching the numbers, simplifying the offerings, and packaging the whole thing to present to manufacturers.”
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well over 5 million dollars annually. “We’ve added it up. The Carolina Care Plan has really paid off,” Gibson says. “It has made a tremendous impact on the overhead costs of manufacturers.”
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or a specific industry to have its very own health insurance plan, many factors have to come together. In order to craft policies that truly provide cost-savings benefits, manufacturing needs must be identified through extensive evaluation. This was the challenge David Gibson III faced when he began to research the best options available for manufacturers across the state.
Health Plan Inception Date: 2001 Current Number of Companies Participating: 200 Approximate total number of participating employees: 4,000 Approximate total members covered: 11,000 Estimated total savings to manufacturers: over $10 Million often referred to by plan participants, are involved in key decisions and their roles continue to increase the firm’s growth. Michael’s wife, along with Michael and David’s grandmother, are both a part of the Gibson team. Their dedication is apparent to customers who benefit from their knowledge and the attentiveness shown to each individual customer. Despite its mom and pop feel, the business is a vital service to meet manufacturing needs. Gibson & Associates is recognized by every leading health insurance carrier in South Carolina as a top volume agency. That comes in handy when a manufacturer needs something a bit out of the ordinary. “Manufacturers are busy people.” Gibson says. “Everything we can do to keep them focused on their operations and profitability provides a measurable value.” What does this mean for manufacturers in the state who take advantage of this plan? Flexible options, a wide network of providers, competitive rates, and prompt, professional service add up to a must-have for more and more companies. “In the years since we started, other carriers who had waited to see whether this would work have now climbed on board and created special offerings for manufacturers as well. That means even greater selection and value for our customers and every South Carolina-
based manufacturer,” says Gibson. “We’re not sitting still. Instead, we’re constantly reviewing the plan, checking with our customers and carriers to add more value.” This year is no exception to that process. New plan options, including health savings accounts and company self-funded plans are in the mix, providing greater flexibility to manufacturers. “Our team is committed to bringing the best options to our state’s manufacturing sector,” says Gibson. Flexible plans that are customtailored to the needs of individual companies are the only way for both large and small manufacturers to save on health care costs. Manufacturers interested in more details can inquire at 1-800733-3391 or visit www.gibsoninsurance.net. John Carroll is an author, consultant, and businessman based in Mount Pleasant, South Carolina. His firm, Unlimited Performance, Inc. specializes in helping sales professionals, managers and entrepreneurs in businesses, trade groups, and charitable organizations. www.uperform.com
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2008 SCMA Meetings / Events
Lowcountry Manufacturers Council Annual Meeting & Dinner Date ∙ October 21, 2008 - 6:00 p.m. - 9:00 p.m. Location ∙ Trident Technical College, North Charleston, SC Cost ∙ $85 for Members - $100 for Non-Members Sponsorship & Exhibiting Opportunities Available ∙ For more information, visit www.myscma.com
or contact Jessica Watts at (803)799-9695 and watts@myscma.com
NEXT ISSUE
The next issue of the Made in South Carolina Magazine will provide a comprehensive look at environmental and social opportunities facing the manufacturing community. In addition, we’ll focus on the stories and operations that manufacturers have implemented to maximize sustainability in a manner that reflects their commitment in a way that is good for people, the planet, and profits.
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If you have a story or idea for an article, please contact James Richter at: richter@myscma.com (803)799-9695
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