2010 sc biz - issue 2
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This issue features the Business Resource Guide and S.C. DeliversTRANSCRIPT
ALSO IN THIS ISSUE:
A look aheadSanford discusses his
fi nal year in offi ce
S.C. DeliversPorts, Logistics &
Distribution
Doing business in S.C.
The Business Resource Guide looks at key elements that infl uence
economic development decisions
Second time aroundSecond-career lawyers
use prior careers to their advantage
Bi-Lo is backThe grocery store chain
emerges from bankruptcy
Summer 2010
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2 SC BIZ | www.scbizmag.com
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D E P A R T M E N T S SPECIAL SECTION PAGE 35
4 | Viewpoint
6 | Upfront
8 | Technovation
10 | Spotlight: Florence
12 | Trends
48 | 1,000 words
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Contents
Cover Photo/Leslie Halpern
FEATURES
25
14
18
COVER STORY
Ports, Logistics
& Distribution in
South Carolina
5
P O R T S , L O G I S T I C S & D I S T R I B U T I O N I N S . C .
S.C. Delivers
ISSU
E 2, 2
010
A P U B L I C AT I O N O F S C B I Z N E W S
Flight plan Southwest to serve
South Carolina in 2011 Page 41
$1 billion impactStudy reveals impact of aviation
center on Upstate Page 44
Hot oilS.C. company converts
cooking oil into biodiesel Page 46
SSSSSSSSSSSSStttttttttt
Forty companies have announced this
year that they would either expand
existing operations in South Carolina or
establish new ones. So, what’s attract-
ing these businesses to South Carolina
and persuading them to stay? The Busi-
ness Resource Guide looks at four key
areas and their infl uence on economic
development decisions across the state.
Making a second career of the law Bi-Lo is back
Market Adjustment
BUSINESS RESOURCE GUIDE
2010 List of SC Fastest Growing Companies
The South Carolina’s Fastest-Growing Companies program, the annual exclusive ranking of the Palmetto State’s most dynamic
and successful companies is seeking the state’s best performing companies. This is your chance to be part of this
exclusive group of best-of-breed companies whose achievements have been honored over the past nine years. This year’s
top 25 highest-ranking companies will be honored at South Carolina’s Chamber of Commerce Annual Summit on Nov. 11,
2010 at Wild Dunes Resort near Charleston, S.C.
To learn more about South Carolina’s Fastest-Growing Companies,
or to nominate your organization, visit www.thecapitalcorp.com
or contact Cristina Schleifer at (864) 672-8400.
Nominations will be accepted
May 11, 2010through
June 30, 2010
4 SC BIZ | www.scbizmag.com
one thing, it’s a Republican plan.
It’s “Romneycare,” passed at the federal
level. It’s also modeled partly on earlier Re-
publican initiatives and conservative propos-
als going back as far as Richard Nixon, who,
according to columnist Ben Stein, presented
Congress with a health care reform proposal
even more comprehensive and “socialistic”
than the current law passed by the Demo-
crats.
In an article published in Th e Wall Street
Journal in July 2008, Mitt
Romney touted his Mas-
sachusetts plan as one that
eliminated the “free riders”
who were showing up at the
state’s emergency rooms
without insurance coverage.
(Under a federal law in ef-
fect since 1986, hospitals are
obligated to provide urgent
care to anyone who walks in
the door regardless of their
ability to pay.)
In other words, what was
once a conservative Repub-
lican proposal, having now been passed by
the Democrats with zero Republican sup-
port, has been recast as a socialist, liberal, to-
talitarian move to exert federal control over
health care.
As one spokesman for South Carolina’s
hospitals pointed out, the federal govern-
ment has been infl uential in health care mat-
ters for decades through the Medicare and
I’ll put this right up front so you won’t
have to wonder what I really think: At-
torney General Henry McMaster had the
chance to make a choice between support-
ing the evolution of a modern, 21st-century
South Carolina and a South Carolina still
rooted in the 19th and early 20th centuries,
and he chose the latter.
I, for one, think it was a bad choice. Th e
lawsuit fi led by McMaster and other state at-
torneys general challenges the coverage man-
date in the new federal health
care reform law. If successful,
it will move South Carolina —
and the nation — backward
instead of forward.
Th ere are lots of good rea-
sons for this conclusion. De-
spite its complexity, the new
law creates a framework that
would signifi cantly reduce
the number of people with-
out health care coverage, in-
cluding nearly a half-million
South Carolinians. Is this a
bad thing? Is this something
“we can’t aff ord”?
No, it’s not a bad thing, and we can aff ord
it as well as we can aff ord the present disor-
ganized health care “system,” which is badly
broken and getting worse. Having a half-
million citizens without health care coverage
is a detriment to the state’s future productiv-
ity and prosperity.
When McMaster and the others decided
to pick an ideological fi ght over the mandate,
McMaster seemingly gave little thought to
the possibility that he might be hurting gen-
erations of South Carolinians if he and his
cohorts prevail.
I have spoken to several key hospital
executives around the state, and they all
agree that the new law’s comprehensive re-
forms, which provide greater consumer
rights and expanded access to aff ordable
coverage, would not be possible without the
mandate.
What’s so great about the new law? For
Attorney general puts progress in reverse with health care suit
Bill [email protected]
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Medicaid programs, as well as programs for
veterans and federal employees, so this is
nothing new.
As he also pointed out, the last dramatic
step in the direction of “socializing” health
care was the expensive and expansive Medi-
care Part D drug program passed by Repub-
licans under George W. Bush.
From my perspective as a former small-
business owner, I can think of nothing worse
for entrepreneurship and small business than
the current insurance market for small-busi-
ness health care coverage. It’s a disaster, and
it inhibits the formation and growth of small
businesses and makes it harder for them to
compete with large, out-of-state businesses
for workers.
Under the new law, insurance companies
won’t be able to discriminate on the basis of
pre-existing conditions, and entrepreneurs
and small businesses will have better access
to group and individual health coverage.
Th at’s a winner in my book. SCBIZ
l
-
-
,
d
l
” d d ll f
Having a half-million citizens without health
care coverage is a detriment to
the state’s future productivity and
prosperity.
V i e w p o i n t
www.nexsenpruet.com
C HARLOTTE | GREENSBORO | RALE IGH
C HARLES TON | COLUMB IA | GREENV I L LE | H I LTON HEAD | MYRT LE BEAC H
205 K ing S t ree t , Su i t e 400, Char le s ton , SC, 29401 - R i c Tapp, Law F i rm Par tner
Boeing and South Carolina.The Dream Continues...
UpfrontR E G I O N A L N E W S | D ATA R E G I O N A L N E W S | D ATA
First Quality largest project ever for Anderson County
ANDERSON – Anderson
County celebrated the largest
economic development announce-
ment in its history when First Quality
Tissue formalized plans to invest
$1 billion and hire 1,000 people.
Th e privately held New York
company announced it will acquire the former Shaw In-
dustries facility near the Anderson Regional Airport to
create up to four paper manufacturing lines. Th e land in-
cludes room for eight lines, though First Quality did not
comment on plans beyond the initial four lines.
Not only is this the largest project for Anderson
County, it’s one of the largest in the Upstate, said Gov.
Mark Sanford. He noted that First Quality’s plan is larger
than the fi rst BMW Manufacturing Co. announcement
in 1992 — to hire 500 people. BMW now employs about
5,000 people.
Th e company will build two “paper machines,” the
fi rst of which will be operational in the third quarter
of next year, the second a year later, said First Quality
representative Frank Ludovina. In addition to the 1,000
new direct jobs, construction will generate an immediate
impact with an additional 550 jobs, the S.C. Department
of Commerce said.
Upstate Midlands Lowcountry
6 SC BIZ | www.scbizmag.com
Mohawk Industries Inc. announces expansion in Marlboro County MARLBORO COUNTY – Mohawk Industries
Inc. will invest $60 million to expand its yarn
and fi ber manufacturing facility in Marlboro
County. Th e company will add 87,500 square
feet of manufacturing space to the facility, along
with additional yarn conversion equipment.
“We have been very pleased with the re-
sults of the Oak River North Extrusion and
Yarn operations,” said Larry Perugini, vice
president of yarn and extrusion manufactur-
ing for Mohawk. “Th e people at the facility
have been key contributors to our company’s
success, and we are grateful for their good
work and dedication.”
Mohawk Industries opened the current
Bennettsville facility in 2006 but has had yarn
manufacturing operations in the area for more
than 50 years. Th e company will add 87,500
square feet of manufacturing space, along
with additional yarn conversion equipment.
Mohawk previously expanded the Oak
River North facility in 2008 and employs more
than 400 workers at the location.
Michelin uses sunfl ower oil for tire performanceGREENVILLE – Have Michelin-rated chefs made an impact on tire design?
It might be the perfect collaboration, as Michelin uses sunfl ower oil to cre-
ate a unique rubber compound in the new Michelin Primacy MXM4 tire.
It turns out that sunfl ower oil enhances the performance of this new
luxury tire in wet and snowy weather.
While the vibrant, strong sunfl ower is recognized worldwide for its
beauty, its benefi ts are not as apparent. The oil from sunfl owers is valued
as a healthy vegetable oil, and sunfl ower seeds are enjoyed as a tasty
snack and nutritious ingredient added to many foods.
So, why would Michelin tire engineers turn to this readily available,
but unusual ingredient as a solution for tire performance?
Because shorter is better, and the use of sunfl ower oil means stop-
ping up to two car lengths shorter — up to 19 feet shorter in wet condi-
tions — than a leading competitor, the company said.
The tire will come in 13 replacement market sizes with rim diameters
ranging from 16 to 19 inches.
largerso
AND
County
onom
t in its
Tissu
$1 bi
The
company announced it will
dustries facility near the A
create up to four paper man
cludes room for eight lines
comment on plans beyond
Not only is this the
County, it’s one of the la
Mark Sanford. He noted
than the fi rst BMW Ma
in 1992 — to hire 500 p
5,000 people.
will
ust
n ountUNTY
0 millio
acturing
mpany w
uring space to t y g
yarn conversion equipment.
een very pleased with the re-
ak River North Extrusion and
ns,” said Larry Perugini, vice
arn and extrusion manufactur-
awk. “Th e people at the facility
y contributors to our company’s
we are grateful for their good
The tire w
19 inches.ranging from 16 to
First Quality ever for Ande
C
eco
ment
T
$
Th
tries Inc.
ty – Mohawk Industries
on to expand its yarn
g facility in Marlboro
will add 87,500 square
ace to the facility, along $6.1billion
The amount Boeing will add to South Carolina’s economy
each year, according to a recent study that also said the
company would add nearly $3 billion to state taxes over
three decades.Source: Miley & Associates Inc.
www.scbizmag.com | Summer 2010 7
Nuclear can provide power, economic punchGOOSE CREEK – Th e Carolinas are
national leaders in nuclear energy,
but only continued investment and
growth will keep it that way. More
development also will mean billions
of dollars for a region stretching from
the Tar Heel State to North Georgia,
according to a group that aims to or-
ganize and promote the carbonless
energy source.
Already, South Carolina is home
to seven nuclear reactors that produce
more than 50% of the state’s power.
Four more reactors are on the way,
including two at S.C. Electric & Gas’
$10 billion V.C. Summer station near
Jenkinsville. Th e fi rst is scheduled to
open in 2016, and the second is set to
follow in 2019.
“Nuclear knowledge here is unpar-
alleled. We either build on it, develop
it and grow the economy, or we lose it,”
said Scott Carlberg, a communication
specialist speaking on behalf of the
Carolinas Nuclear Cluster.
Th e cluster, an arm of New Caroli-
na: South Carolina’s Council on Com-
petitiveness , recently hosted a meeting
in Goose Creek that doubled as a pep
rally and an informational session for
manufacturers and service providers
looking to jump on board the nuclear
bandwagon.
Th e seminar was targeted at manu-
facturing companies — producing
pipes, valves, fi ttings, electrical sys-
tems, HVAC systems and construction
materials — and service providers —
machine shops; electrical, mechani-
cal and HVAC maintenance; waste
cleanup; offi ce maintenance; hazard-
ous materials cleanup; painters; radio-
logical protection; quality control; and
laboratory services.
Representatives from SCE&G,
Westinghouse Electric Co. — the nu-
clear power company that’s also part
of the V.C. Summer contracting team
— and others addressed a full room
of executives eager to join the supply
train of an industry that some experts
predict will grow from $50 billion to
$300 billion over the next 15 years.
S.C. third-most-affordable state in which to own a carSouth Carolina is the third-most-aff ordable
state in which to own a car, according to a study by
Edmunds.com.
Th e survey shows that it costs an average of
$40,763 over a fi ve-year period to own a car in the
Palmetto State. Only New Hampshire and South Da-
kota are more aff ordable.
Owning a vehicle in Alaska, California or Hawaii
costs about $10,000 more per year than it does in
South Carolina.
Th e Edmunds study examines regional fi ve-year
ownership costs, consisting of depreciation, fi nanc-
ing, taxes and fees, insurance premiums, fuel costs,
maintenance and repairs for new and used vehicles.
States with the lowest average vehicle ownership costs in the country
StateTaxes,
Fees DepreciationFinancing,
Interest Insurance Fuel RepairsTrue Cost
to Own
New Hampshire $221 $16,359 $3,998 $5,739 $9,760 $754 $39,136
South Dakota $1,693 $16,417 $4,328 $4,819 $9,892 $831 $40,524
South Carolina $378 $16,329 $4,039 $7,577 $9,217 $777 $40,763
Wisconsin $1,835 $16,423 $4,202 $5,182 $9,899 $966 $41,358
North Dakota $1,896 $16,416 $4,086 $5,694 $10,026 $793 $41,371
States with the highest average vehicle ownership costs in the country
StateTaxes,
Fees DepreciationFinancing,
Interest Insurance Fuel RepairsTrue Cost
to Own
Hawaii $1,787 $17,252 $5,423 $11,078 $12,250 $855 $51,233
California $3,430 $16,355 $5,239 $10,242 $11,180 $1,020 $50,480
Alaska $503 $17,136 $4,532 $11,772 $12,320 $981 $50,078
Nevada $3,805 $16,455 $4,983 $9,325 $10,286 $981 $48,745
Connecticut $2,004 $16,375 $4,761 $10,572 $10,481 $958 $47,990
Companies recognized by site selection magazine COLUMBIA – Trade & Industry Development magazine, a national site selection magazine, honored
three S.C. projects with its Corporate Investment and Community Impact award, the S.C. Department
of Commerce announced.
Th e companies, which were recruited by the Commerce Department in conjunction with local eco-
nomic development allies, are the Boeing Co., Crane Co. and Red Ventures.
Th e honors, known as CiCi Awards, recognize corporations and investments from applicants
throughout the country — more than 1,000 this year, according to the magazine’s editors. Th e award fo-
cuses on company investments and the economic developers responsible for securing the investment.
Th e criteria take into consideration the number of new jobs created, number of current jobs retained
and way the project aff ected the community.
In 2009, Commerce’s recruitment eff orts resulted in companies committing to create 18,004 new
jobs and invest $2.4 billion, the department said.
Boeing, chosen as one of the 15 fi nalists for the Corporate Investment category, plans to create 3,800
jobs and invest approximately $750 million in North Charleston.
Crane Co. announced 1,000 new jobs and a $20 million investment in Barnwell County and Red
Ventures announced 1,000 new jobs and a $20 million investment in Lancaster County. Th ese two com-
panies were chosen as two of the 15 fi nalists for the Community Impact category.
8 SC BIZ | www.scbizmag.com
Te c h n v a t i o n
By Mike Fitts, Staff Writer
Laboratory designed to put nature’s fury in a box
Amid the fi elds and scattered pines of Chester County, a new six-story concrete building juts
out of the landscape. One of its walls is dotted with what looks like a grid of airplane engines, dozens of them.
Th is new facility is unique, in South Carolina and the world, according to its builders. Th e goal: to make homes and businesses safer in the face of potential disaster.
Th e facility is a huge testing labora-tory being constructed by the Institute for Business & Home Safety. It is funded by almost 50 companies in the insurance fi eld, mostly involved in property and casualty lines. Th e arrangement is simi-lar to the Insurance Institute on Highway Safety, which conducts safety crash test-ing on autos and releases the results to the public.
Th e Chester County research center will do the same thing to houses and small commercial buildings.
Th e central lab is designed to subject buildings to some of the most brutal treatment that the climate can dish out. Th e 105 turbine fans will blast high-speed winds through the chamber. Add pumped-in rain and it’s an indoor hur-ricane. Researchers also will be able to shoot realistic hail at roofs or even add burning embers to the winds to test a
home’s potential resistance to a nearby wildfi re.
“We are putting Mother Nature in a big box,” said Julie Rochman, CEO of the institute.
Property insurance businesses have been thinking about such a facility for years as a way to reduce the dam-age that homes and small business suff er — and what the industry must cover, Rochman said.
“We shouldn’t be losing as many homes and businesses as we do today,” she said.
Th e $40 million complex is scheduled to begin testing in the fall.
Th e research done in Chester Coun-ty will change the way homes are built, Rochman said. She was speaking at a tour of the center in March, as it was being completed. Home insurers already are involved in the way building codes are written, and this data will be added to that discussion.
Th e study results and video will be used to help popularize building tech-niques and materials that hold up better to severe weather, Rochman said. Th e results also will be used to see whether
government and private incentives are going to things that actu-ally work, she said.
Th e heavy blows that hurricanes have landed in recent years are a driving force in the lab’s creation, Rochman said. She notes that storms have frequently landed in populated areas and that hurricane-force winds have pushed as far inland as Ohio.
People still need and want to live at the coast, though, and that means a need for insurance, Rochman said.
Th e main laboratory is a vast concrete square, almost 50 yards across and six stories high. One wall, when complete, will feature 105 turbine fans, each with a six-foot opening. At full blast, the fans will be able to generate winds of 140 mph, the force of a strong Category 3 hurricane. Even with the fans off , the lab’s confi guration makes a gentle breeze more forceful; the room is wider on one side than the other, adding force to the winds.
Th e fl oor features a 55-foot turntable so the facility can test a structure at any possible angle. House movers were con-structed so that test buildings could be moved inside gently.
Th e facility will try to use ice balls that approximate the composition of real hail, Rochman said. Right now, tests for hail Rendering above, photo at right/Courtesy of the Institute of Business and Home Safety
Photo/Mike Fitts
sometimes are done with steel balls shot out of guns, a less realistic test.
Th e support structure for the facility also is massive. For wildfi re testing, there will be a 175,000-gallon water tank. Th e site has its own electrical substation, to help meet the massive power demand of those fans. Th e system will draw up to 30 megawatts of electricity — enough to power 9,000 homes.
Th at electricity demand is part of the reason the facility was put in Chester County. Th e institute wanted the lab to be near a source of reliable, renewable energy, so it had to be near a nuclear power plant. Th e facility will have a set schedule with Duke Energy, to prevent problems when it uses so much power then quickly shuts down. It will run only during business hours — power demand is less than in evenings. Duke Energy has been a great partner in the project, Rochman said. “We’re a great customer.”
Th e lab also needed to be more than 100 miles inland, ironically, to help pro-tect it from hurricane damage. And it needed to be near a major air travel hub, in this case Charlotte.
Th e economic development teams in North and South Carolina worked
together to fi nd the right site, Rochman said.
Once the lab is up and running in the fourth quarter, it will employ about 20 people, in addition to the local labor that will be called upon for the construction of homes and small business structures to be tested.
Th at’s not a huge new employer, but Chester County is glad to land the facil-ity, according to County Council Chair-man Carlisle Roddey.
“We don’t get a lot of research” indus-try Roddey said.
Th ere’s also the possibility that other organizations interested in partnering with the institute will want to locate nearby, Rochman said.
People in construction and other fi elds have been contacting the institute to see whether the lab can conduct research they need, Rochman said.
Th ey’ve even had a request to test the connection between two fl oors of a high-rise, she said. And the institute is look-ing into it. Th e laboratory is designed to answer questions that couldn’t previously be tested scientifi cally in the real world, Rochman said.
“We’re just going to keep on asking questions,” she said. SC
BIZ
10 SC BIZ | www.scbizmag.com
FlorenceSpot l ight
By Allison Cooke Oliverius, Special Projects Editor
Florence County offi cials recently cel-
ebrated the news that McCall Farms
Inc. was investing $9 million to ex-
pand its operations and generate 65 new
jobs. Th e company, which farms and cans
tomatoes, corn, squash and other produce,
opened its Florence County facility in 2007
and already employs about 100 workers.
“McCall Farms has deep roots set in the
soil of our area. Th is expansion is a true tes-
tament to their belief in hard work, strong
work ethics and exceptional products,”
Florence County Council Chairman K.G.
“Rusty” Smith said at the announcement.
Th e expansion also is a testament to the
fact that Florence County is just a good
place to do business, Smith said.
“We certainly have what I feel like is one
of the most desirable areas in the whole
Southeast for prospective employers. We
have outstanding infrastructure, good edu-
cation system, some of the fi nest health
care available,” Smith said. “We have com-
mitted employees that will give a hard day’s
work for a day’s pay. We also have a strong
business-minded County Council that has
set up an environment to attract businesses
to the area.”
Team approachPart of that environment is the team
that has been assembled to push economic
development. It includes Florence County
Council, the Florence County Economic
Development Partnership — led by Joe
King — and Florence County Progress, the
private-sector arm of the economic devel-
opment partnership. Th e team also includes
other elected offi cials and a host of local
business owners and organizations.
“We work extremely well together,” Smith
said of the various groups. “I think the key is
teamwork and hard work. I mean, we really
get aft er it, and I think the prospects sense
that we want them here and that we will be
here with them along the way. When we
meet prospects, I think they see the kind of
people we are and they feel a sense of com-
panionship.”
Th is team approach has helped bring
more than 130 companies to the area with a
manufacturing presence, including Du Pont,
ESAB Welding and Cutting, H.J. Heinz Co.,
Honda of South Carolina, GE Healthcare,
Johnson Controls, Monster.com, QVC and
Roche Carolina Inc. In the past fi ve years,
new and expanding businesses have invest-
ed more than $1.1 billion.
Smith fi res off several assets the county
touts to prospects, including Francis Mari-
on University, the Southeastern Institute of
Manufacturing & Technology, strong health
care providers, shovel-ready industrial sites
and more.
He also mentions Pathways for Prog-
ress, a $400 million investment the county
is making to widen all the major roads into
and out of the county to four lanes.
“I think in the business world, Florence
County is becoming a business capital for
South Carolina and beyond,” Smith said.
“It’s been outstanding to see the county’s
progress,” added Smith, who grew up in
Lake City and has served on County Coun-
cil since the 1980s. “You feel a certain level
of pride having worked as part of a team to
transition an area into something that is a
mecca for business.” SCBIZ
Florence Facts
Photos courtesy of the Florence Convention & Visitors Bureau
Florence County population: .... 1,042,01310 largest employersHonda of South Carolina ....................... 1,625Nan Ya Plastics Corp. America .................. 860ESAB Welding and Cutting Products ......... 650Smurfi t-Stone Container Corp. ................. 550Nucor Corp. Vulcraft Division .................... 400QVC Inc. .................................................. 400G.E. Medical Systems .............................. 372Roche Carolina ........................................ 308ACS Technologies .................................... 270Pepsi Cola Bottling Co. ............................ 221
Source: Industrial and manufacturing employers, 2008. Florence County Economic Development Partnership.
www.scbizmag.com | Summer 2010 11
The place for industry.
The place for industry.
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12 SC BIZ | www.scbizmag.com
Tr e n d s
Employment
Source: S.C. Employment Security Commission
Source: S.C. Employment Security Commission, April 2010. County rates are not seasonally adjusted
on
Unemployment Rate
Source: S.C. E
Unemp
<<<
<<<
< < <
<<
< <
< < <<
<<
<<
<
<
<
<<
<<
<<
<
<
<<
<<
<
<<<
<<
<
<<<
V
V=
Higher than previous month
Lower
Same
8.7% - 9.9%
10.0% - 11.9%
12.0% - 14.9%
15.0% - 19.9%
20% & higher
J F M A M J J A S O N D
2%
4%
6%
8%
10%
12%
Unemployment rate
S.C. 2010 S.C. 2009 U.S. 2010
*Seasonally adjusted rates.Source: S.C. Employment Security Commission,
U.S. Department of Labor
2010 Net Taxable Sales
County Jan. Feb. March April
Lowcountry
Berkeley $131,399,412 $76,656,048 $111,510,481 $125,179,348
Charleston $488,069,948 $350,746,147 $407,054,781 $491,372,364
Dorchester $50,286,894 $38,643,116 $46,154,550 $52,243,064
Midlands
Lexington $283,644,430 $198,662,881 $230,133,496 $266,549,553
Newberry $20,573,775 $15,207,425 $18,829,933 $20,833,237
Orangeburg $54,797,835 $42,737,124 $50,579,182 $59,950,325
Richland $450,887,163 $355,115,054 $403,674,038 $447,574,415
Sumter $66,443,539 $48,314,324 $59,440,584 $65,749,841
Upstate
Anderson $143,577,950 $94,746,162 $118,213,268 $128,552,976
Greenville $524,582,323 $358,896,988 $447,123,794 $485.889,663
Spartanburg $239,457,485 $162,077,652 $209,756,308 $224,777,549
Statewide $4,608,434,903 $3,280,992,982 $3,972,027,584 $4,563,917,221
Source: S.C. Department of Revenue & Taxation
Hotel Occupancy Rates
Month 2010 2009%
change
Jan. 36.5 36.8 -0.82%
Feb. 45.8 45.6 0.44%
March 54.3 51.2 5.71%
April 60.6 57.7 5.03%
Avg. YTD 49.3 47.8 -3.14%
Source: Smith Travel Research
Employment Jan. ’10 Feb. ’10 March ’10 April ’10
Employed (Total Nonagricultural) 1,785,000 1,795,500 1,811,400 1,822,900
Government 354,300 356,800 357,900 359,800
Leisure & Hospitality 189,900 192,000 196,600 2,075,000
Manufacturing 207,500 207,500 207,300 207,700
Trade, Transportation & Utilities 340,600 341,800 345,800 346,000
Unemployed 273,455 271,140 264,452 250,378
www.scbizmag.com | Summer 2010 13
Economic Development Announcements: Feb. 6, 2010 - May 31, 2010Month New/Expansion Company County Investment Jobs Created
February N Defense Venture Group Lancaster $50 million 220
February E Fisher Barton S.C. Inc. Laurens $2 million 15
February N Solar Energy Initiatives Inc. Williamsburg NP 200
February N Gildan Activewear Berkeley NP 250
February N Bradman Lake York $3.5 million 51
February E American Truetzchler Inc. Greer $3.5 million 30
February E Bosch Rexroth Corp. Greenville $10 million 50
February E U.S. Foodservice Lexington NP 100
March N MTU Detroit Diesel Aiken $45 million 250
March E Republic National Distributing Co. Lexington $11.8 million NP
March N IMO Group Dorchester $47 million 190
March N Moulton Logistics Management Berkeley $25 million 500
March E Caterpillar Newberry NP 500
March E McCall Farms Inc. Florence $9 million 65
March E Leigh Fibers Spartanburg $10.1 million 40
April N Greyne Custom Wood Co. Lancaster $5 million 50
April N Drew Industries Chester $978,300 125
April N Immedion LLC Richland NP 15
April N Charleston Pie Man Georgetown $500,000 80
April E ResMed Spartanburg NP 50
April N Myrtle Beach Recycling Inc. Horry $5 million 15
April N ACAS Landing Gear Marion $5 million 300
April E US Fibers Edgefi eld $10.1 million 85
May N Allegro Industries Pickens $4.53 million 45
May N MCA Sign Co. Aiken $12 million 125
May N Nutramax Laboratories Lancaster $12.5 million 200
May N Alexium Inc. Greenville $8 million 200
May N Strategic Outsourcing Inc. Lancaster $1 mllion NP
May N First Quality Tissue Anderson $1 billion 1,000
May N Quality Software Services Inc. Richland $480,000 70
May E Kaydon Corp. Sumter $8.9 million 75
May N Palmetto State Armory Richland $2.9 million 50
May E Mohawk Industries Inc. Marlboro $60 million NP
Source: S.C. Department of Commerce, NP = Not provided
Airplane Passenger BoardingsAirport Jan. ’09 Feb. ’09 Mar. ’09 Apr. ’09 Q1 ’09 Jan. ’10 Feb. ’10 Mar. ’10 Apr. ’10 Q1 ’10 % chg.*
Charleston International Airport 65,186 67,864 90,074 98,837 321,961 61,659 58,403 82,133 93,059 295,254 -8.20%
GSP International Airport 42,609 39,790 51,444 52,280 186,123 42,682 40,408 51,140 51,653 185,883 -0.10%
Hilton Head Island Airport 2,510 2,976 5,547 6,872 17,905 2,539 2,916 6,044 7,596 19,095 6.60%
Myrtle Beach International Airport 33,781 35,557 59,589 73,563 202,490 33,416 33,385 57,399 69,574 193,774 -4.30%
Columbia Metropolitan Airport 35,661 35,848 42,683 46,290 160,482 35,739 32,645 41,442 44,627 154,453 -3.70%
Total 888,961 848,459 -4.50%
Source: Individual airports. *Represents change from Q1 2009 to Q1 2010.
Attorney J.W. Matthews III looks like
a fi sh out of water at the Associated
Builders and Contractors luncheon,
in his courtroom suit and tie among the
open-collared shirts with construction com-
pany logos.
But Matthews, a licensed professional en-
gineer who built front-line bases for the Air
Force in Bosnia and Saudi Arabia, can talk
the talk with these engineers and builders.
He’s one of a handful of attorneys at
Haynsworth Sinkler Boyd who have built
their practices on prior careers as far-fl ung as
engineering, banking, aviation or education.
Th ey are second-career lawyers, profession-
als in other fi elds who found their ultimate
calling in litigation for those industries.
A 2004 survey by the National Asso-
ciation of Legal Professionals, which polled
2,144 lawyers, concluded that second-career
lawyers have a high level of maturity and a
work ethic that is not compromised by lack of
stamina or inability to adapt to the law fi rm
environment. About one in fi ve of those sur-
veyed felt that the skills of their prior career
off ered an advantage in their legal practice.
Matthews said he always wanted to be a
lawyer. He always felt the tug of advocacy, the
need to take a side in an issue. But a fully paid
Air Force ROTC scholarship at Georgia Tech
that specifi ed a major in engineering made
his fi rst higher education decision for him.
“Th e Air Force needed engineers,” Mat-
thews said, and as a result, he graduated with
a degree in mechanical engineering.
Th e military is oft en a path for these
second-career lawyers, he said, because the
person’s service earns an education benefi t,
whether it is an ROTC scholarship on the
front end or the GI Bill aft er service. Th at
leaves the would-be attorney with the fi nan-
cial obligation for only one professional edu-
cation: law school.
Matthews served for almost six years with
Red Horse, the Air Force counterpart to the
Navy’s Construction Battalion, or Seabees.
He led teams of engineers and combat con-
struction workers in setting up forward bases
for U.S. troops in Bosnia and building re-
placement bases and quarters in Saudi Ara-
bia aft er the Khobar Towers were destroyed
in a 1996 terrorist attack. And he worked
in design and construction management on
large military buildings at Pope Air Force
Base at Fort Bragg, N.C.
He put in the required four years of work
in his engineering fi eld to qualify for the
Professional Engineer license. But when his
14 SC BIZ | www.scbizmag.com
“With a cell phone and a
laptop computer, you can
practice law anywhere.”
John Hodgeattorney, Haynsworth Sinkler Boyd
By James T. Hammond, Staff Writer
military service was done, he answered his
long-felt calling; he enrolled in law school
at the University of Florida. He also felt the
tug of home, so he returned to Greenville and
joined the Haynsworth law fi rm, where he has
worked for a decade and been a shareholder
for about three years.
When he’s not representing the construc-
tion industry, Matthews has a specialty in an
emerging fi eld of law he calls E-discovery.
Documents, contracts and agreements that
once required a signature on a piece of paper
are today consummated and approved by e-
mail. When those transactions are involved
in litigation, all sorts of new issues arise, Mat-
thews said.
“Th e way documents are produced and
distributed has changed because of servers
and cloud computing,” Matthews said. “What
court has jurisdiction over fi les created on
Google Documents, for example. Documents
in litigation in High Point, N.C., may be on a
server in another state.
“We’re fi nding that the way people con-
ceptualize documents is diff erent because of
computers,” he said. “Th e law follows the cul-
ture. Th e fundamental concept of what is true
is changing, and the quantity of communica-
tion has expanded exponentially.”
Haynsworth Sinkler Boyd has other at-
torneys, too, who had careers before they
became lawyers. Joe Clark in Columbia was
a banker; Randy Epting in Columbia was in
public accounting.
Some who had prior careers say that those
experiences are less a factor in their legal ca-
reers than for someone like Matthews but
that they continue to infl uence their lives and
their involvement outside the offi ce.
“It’s hard to say exactly how it continues
to infl uence me, but it defi nitely does,” said
Bachman Smith IV, a Charleston-based attor-
ney with Haynsworth Sinkler Boyd.
Smith makes his practice in litigation in-
volving construction, defense and maritime
issues. He spent some early years working
with a cabinetmaker, likes to work with his
hands and says “construction just makes
sense to me.”
Before going to the University of South
Carolina School of Law, Smith spent about
eight years as a teacher and school admin-
istrator. He left one school where he had
been promoted to administrative jobs so
that he could get back to teaching American
www.scbizmag.com | Summer 2010 15
Top: Bachman Smith (Photo/Leslie
Halpern). Left: John Hodge (Photo
provided). Right: J.W. Matthews (Photo/
Jim Hammond)
16 SC BIZ | www.scbizmag.com
literature at another school.
But with his expectation at the time that
his teacher salary would top out at about
$32,000, he decided on a law career in order
to be able to provide for his own children in
the same fashion as did his lawyer father.
And even though he has not built his
practice on his former career, he said, “It
didn’t take long to see that I needed to fi ll the
void.”
Today, he’s on the board of My Sister’s
House, a nonprofi t organization that serves
victims of domestic violence. Among other
things, he sometimes lectures in schools
about domestic violence.
At age 40, Smith says his life and career
are still a work in progress. He envisions pos-
sibly teaching law someday. “Th e process of
education just makes sense to me,” he said.
John Hodge, 54, also an attorney with the
fi rm, has managed to combine three profes-
sions into a successful legal practice.
He earned his undergraduate degree in
geology from Duke University and worked
in environmental science.
He earned a commercial airline pilot’s li-
cense and fl ew charters and night freight as-
signments while in law school at USC. And
he spent 20 years fl ying for Piedmont Air-
lines and its successor, US Airways.
About fi ve years ago, he retired his pilot’s
wings to focus on a law practice in environ-
mental law and aviation litigation, contracts
and regulatory issues.
During his double life as lawyer and air-
line pilot, he accumulated about 3,000 hours
of fl ight time and oft en found himself jug-
gling court dates with his fl ight assignments.
“With a cell phone and a laptop computer,
you can practice law anywhere,” Hodge said.
But he cautioned that “you can’t let the
technology rule your life or keep you from
having a life.”
Growing up in Spartanburg, Hodge said,
“I was always interested in geology and the
environment before it was cool.”
“I found that the policymakers and gov-
ernment couldn’t talk to the scientists,”
Hodge said. “I wanted to be able to go from
one fi eld to the other and feel comfortable in
both.”
He is currently helping rewrite the aero-
nautics regulations for the state — he said
they have not been updated in years.
And Hodge was instrumental in draft -
ing the agreement to protect 7,500 acres of
wetlands as part of the environmental per-
mitting process for the Vought Aircraft plant
in North Charleston. Th ose permits, which
anticipated future expansion of the indus-
trial plants there, eased the path for Boeing
to select the site for its new aircraft assembly
plant, Hodge said.
“It was a win-win for the business and for
the environment,” Hodge said.
Matthews, the construction lawyer, be-
lieves his earlier career — and those of other
attorneys — “enrich the legal profession.”
“It gives you something you can’t get any
other way than through experience,” Mat-
thews said. SCBIZ
Prior experience of second-career attorneys
Nonprofit organization............................... 6%
Engineering, high-tech or bio-tech .......11.8%
Other business ..................................... 39.5%
Education ..............................................11.2%
Government – non-military ...................10.5%
Source: 2004 National Assocation of
Legal Professionals survey of
1,148 respondents who had a prior career
AIKEN AND EDGEFIELD COUNTIES:WHERE MANUFACTURERS AND TECHNOLOGY MEET
PO Box 1708Aiken, SC 29802www.edpsc.org
Center for Hydrogen Research
www.scbizmag.com | Summer 2010 17
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or visit our web site at www.SCJobMarket.com
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18 SC BIZ | www.scbizmag.com
By Scott Miller, Staff Writer
Michael Byars joined Bi-Lo a month
before the Mauldin-based gro-
cery chain fi led for bankruptcy in
March 2009.
He knew before accepting the job as presi-
dent and CEO that bankruptcy was a possibil-
ity.
“My past history has been going places
and helping companies improve. I’ve been in
those situations before,” Byars said. “I’d never
been through a bankruptcy, but I looked at
that as an opportunity to grow and learn. And
I believed in Bi-Lo.”
Byars knows the industry. At age 15, the
Gaff ney native got a job as a bagger at Ingles.
He stayed there through high school and into
college, before the fast-expanding Food Lion
chain came to town.
Off ered a dollar more an hour in pay, Byars
took a job with Ingles’ newest competitor in
town. He would spend the next 19 years with
Food Lion and 25 with its parent company,
Delhaize Group — which made an unsuc-
cessful pitch to buy Bi-Lo during bankruptcy
proceedings.
Byars climbed the ladder at Food Lion
from store manager to operations director for
a three-state region. When Delhaize Group
bought Kash n’ Karry in Florida in 1996, By-
ars became COO. Under his leadership, Kash
n’ Karry grew to have 137 stores in the Sun-
shine State with more than 11,100 employees.
In 2004, Byars became president and CEO
of Minyard Food Stores in Dallas; he held that
position for four years.
Th en came the opportunity at Bi-Lo, a
store Byars had shopped at with his grandpar-
ents as a boy.
Byars took over in February 2009. Bi-Lo
fi led for bankruptcy in March of that year
because of an upcoming debt maturity that it
was unable to refi nance.
Bi-Lo emerged from bankruptcy about 14
months later. Th e potential merger with Del-
haize’s Food Lion had fallen through.
“Our fi duciary responsibilities were to
evaluate all options and provide the best re-
turn to our creditors,” Byars said. “We deter-
mined that wasn’t the best route.”
Instead, Bi-Lo’s owner, Lone Star Funds,
Michael Byars brought Bi-Lo back from Chapter 11 bankruptcy. (Photo/provided)
BI-LO IS BACKUnder the leadership of Michael Byars, the grocery store
chain didn’t just survive bankruptcy, ‘we thrived through it’
www.scbizmag.com | Summer 2010 19
made a $150 million equity investment and
remains the majority owner. In addition,
Credit Suisse provided $200 million in com-
mitted term-loan fi nancing and General
Electric Capital has provided a $150 million
revolving credit facility. Th rough its fi nancial
restructuring, Bi-Lo has reduced its funded
indebtedness by approximately $60 million.
A judge confi rmed Bi-Lo’s reorganization
plan April 29, and Bi-Lo offi cially emerged
from Chapter 11 on May 12.
“We didn’t survive bankruptcy; we thrived
through it. We actually made ourselves more
competitive,” Byars said. “You’ve got to have
committed people and a committed brand to
make it through Chapter 11. We were fortu-
nate to have that. We are one of the few retail
groups that made it through bankruptcy.”
In 2008, Bi-Lo had declining sales and
profi ts, Byars said. Th e company reversed that
trend last year while operating under bank-
ruptcy protection. Th e company has not seen
a year-over-year sales increase this strong
since Winn-Dixie pulled out of the S.C. mar-
ket in 2005, Byars said.
“We went from a negative trend in 2008 to
a positive trend in one of the most challenging
economic times this country has seen in quite
some time,” Byars said.
Th e company did so by improving cus-
tomer service and providing more discounts
to customers, he said. Bi-Lo launched a part-
nership with S.C. gas stations that allows
Bi-Lo customers to save on gas, for example. A
new “price lock” program gives customers the
best prices on seasonal items for eight weeks.
Bi-Lo also started a double-coupon program,
launched a Wednesday promotion that gives
senior citizens a 5% discount and began a new
employee training program to improve cus-
tomer service.
“Th e No. 1 thing we set out to do was im-
prove our value proposition,” Byars said. “Our
customers are more savvy today, and they de-
mand value. Th ey want all the value and they
don’t want to give up quality, freshness and
variety.”
And customers have alternative options.
“Th ere’s a supermarket on almost every
corner,” Byars said.
Th at competition has made it diffi cult for
smaller, regional grocery chains to survive.
Byars said he expects more consolidation
within the industry, particularly with more
foreign investment coming into the United
States.
“Th ere has been predictions that there will
be more consolidations, and you’ll probably
see consolidations throughout the Southeast
in the next three to fi ve years,” Byars said.
“Th at doesn’t mean that the regional grocery
stores can’t be successful.”
And it doesn’t mean Bi-Lo won’t remain
independent.
Th e company operates 207 supermarkets
in South Carolina, North Carolina, Georgia
and Tennessee and employs approximately
15,100 people. Th at’s seven fewer stores than
Bi-Lo operated before fi ling for bankruptcy,
and no more stores are expected to be closed,
Byars said. At one time, Bi-Lo employed more
than 17,000 people.
In the next few years, Bi-Lo is unlikely to
build new stores or expand into new markets,
he said. Instead, customers will see refurbished
Bi-Lo stores with an updated color scheme, a
new logo with a leaf replacing the hyphen in
Bi-Lo and new looks for the deli, produce and
bakery departments, he said.
“Th e focus will be on remodels
and updates for two to three
years,” Byars said. SCBIZ
MARKET Ways banks are dealing with surplus property
By Ashley Fletcher Frampton, Staff Writer
20 SC BIZ | www.scbizmag.com
Back when banks owned only a few
pieces of real estate at a time, Donna
Lehmer, asset resolution manager at
First Federal of Charleston, handled much of
the paperwork herself.
Lehmer coordinated with listing agents,
made sure properties were kept up and worked
with closing attorneys to complete the sales.
But the ongoing foreclosure crisis has left
First Federal, like other fi nancial institutions,
with more real estate to juggle, along with
borrower requests for short sales and deeds-
in-lieu-of-foreclosure.
First Federal has responded by increas-
ing staff and outsourcing certain tasks. Other
banks, similarly, have restructured to keep up
with the increased volume of troubled loans
and acquired properties that must be sold.
But while banks are holding more real es-
tate than in years past and using some new
methods to dispose of it, offi cials say they’re
not looking to offl oad it at bargain prices, as
many buyers would like to believe.
‘Hard to be ready’At First Federal, Lehmer’s department has
doubled in size, from fi ve to 10, and has con-
tracted with an outside asset manager who
helps keep tabs on property.
“If you’d have said two years ago that I’d
use an asset manager, I would have laughed at
you,” Lehmer said.
But two years ago, First Federal wasn’t
trying to sell 80 properties at once, as it was
about two months ago. Th e homes, land and
commercial properties stretch from Beaufort
to Wilmington, N.C.
“You fi gure going from 12 the year before
to 80 a year later, it’s hard to be ready for that,”
Lehmer said.
First Federal’s asset manager, located in
Greenville, fi nds listing agents wherever fore-
closed properties are located and handles the
re-keying of locks, lawn maintenance and
other presale tasks. She coordinates with the
dozens of agents and lawyers and others in-
volved — tasks Lehmer said she no longer has
the time to handle.
“My asset manager deals with all of those
people, and I deal with her,” she said.
Lehmer expects an even larger increase
in bank-owned real estate in the coming
months.
“My projection is we’re not going to get our
ADJUSTMENTADJUSTMENT
www.scbizmag.com | Summer 2010 21
big infl ux of inventory until the last three or
four months of this calendar year,” she said.
Th at expectation is based in part on fore-
closure moratoriums put in place early last
year that delayed foreclosure proceedings. It’s
also based on the backlog of properties now
awaiting foreclosure hearings and sales in the
courts.
In February 2009, First Federal was among
fi nancial institutions that halted foreclosures
on owner-occupied homes for a few months
while trying to work with borrowers on loan
modifi cations. First Federal’s moratorium
lasted until May.
About the time that moratorium ended,
the S.C. Supreme Court ordered a temporary
freeze on foreclosures statewide to allow time
for lenders to determine whether residential
loans were eligible for modifi cation under a
new federal program.
Because of those combined delays, proper-
ties now might be as much as 18 to 20 months
past-due at the time the foreclosure is com-
pleted, Lehmer said.
Commercial focusDelays surrounding residential foreclo-
sures won’t have much of an impact on S.C.
Bank and Trust, said Tommy Bouchette, ex-
ecutive vice president for special assets man-
agement.
“We, like many banks, sold those mortgag-
es into secondary markets,” he said.
Because the Columbia-based bank, which
has offi ces around the state, does not own and
service those home loans, it isn’t the fi nancial
institution that winds up foreclosing when the
loans are in default.
But SCBT has changed its operations to
deal with its distressed commercial real estate
loans. Th ose loans cover residential properties
in cases where the bank provided fi nancing to
subdivision developers or speculative build-
ers.
About two years ago, as bank offi cials saw
economic conditions deteriorating, SCBT set
up a special assets department to work with
borrowers to avoid foreclosure. Th e four-per-
son department also manages the foreclosure
process and subsequent eff orts to sell the real
estate once the bank owns it.
Before the economic downturn, SCBT
didn’t need a centralized department to deal
with real estate issues, Bouchette said.
“Each of our regional executives would ba-
sically handle these things,” he said.
Bouchette said SCBT’s real estate owned
Photo/Leslie Halpern
22 SC BIZ | www.scbizmag.com
fl uctuates up and down but isn’t a large
amount relative to the size of the bank. He
said SCBT tries to keep the amount of real es-
tate owned low by working with borrowers to
sell properties, for less than the loan balance
in some cases.
“We put a lot of energy on the front end to
try to get the property liquidated,” Bouchette
said.
SCBT’s ability to meet with borrowers and
fi nd workout strategies is an advantage over
large fi nancial institutions that are servicing
mortgage loans scattered around the country,
he said. Some of those institutions have little
choice but to foreclose and sell properties to
preserve capital, Bouchette said.
But doing so can mean less money for the
bank, in the end.
“Once it becomes a bank-owned property,
it’s harder to get as much,” he said. “Most pro-
spective buyers will off er less.”
Pricing and listingReal estate and banking offi cials say there
is widespread belief among buyers that banks
will accept low off ers for properties because
they are motivated to get rid of them.
But Lehmer said that’s not how it works at
First Federal.
“We’re regulated. I have shareholders to
answer to,” she said. “If I have a property that’s
worth $100,000, I can’t sell it for $50,000.”
Property is listed at appraised values, she
said.
Bank-owned property could be priced low
relative to comparable properties, she said,
because the bank sells the property as is. But
Lehmer said she isn’t giving away real estate.
Th e approach is the same for short sales:
Off ers are matched up against the home’s
value.
“If they’re getting close to it, it makes sense
for us” to accept the off er, Lehmer said. “Banks
do not want to own property. Th at’s the last
thing we want.”
In recent months, Lehmer said First Fed-
eral has had about 25% of its owned real estate
under contract. In March, the bank peaked at
about 40% under contract. Th e soon-to-expire
federal homebuyer tax credits have helped the
bank sell some of its single-family homes, she
said.
While First Federal works with agents
within its markets to list properties, an auction
in March helped fi nd buyers for some proper-
ties that were not moving, Lehmer said.
She said it’s rare these days for a piece of
real estate to fi nd a buyer at counties’ foreclo-
sure sales, which are held monthly — or more
frequently now in some areas because of court
backlogs.
A few years ago, most foreclosure proper-
ties sold that way, Lehmer said. Banks didn’t
foreclose on many properties, and real estate
was appreciating quickly, drawing buyers.
Some banks are selling large numbers of
properties to investors at discounted prices.
But Lehmer said that isn’t a strategy that First
Federal is using.
“Th e reason is, their off ers are low based
on what I can get selling one at a time,” she
said.
Bouchette said the same is true at SCBT.
Selling properties individually can result in
sales prices 30% to 40% higher than selling to
investors in bulk, he said.
SCBT tries to sell through its networks be-
fore listing properties with agents.
“With offi ces all around the state, we ask
our lenders and bankers in those markets to
see if they have people interested. If not, we’ll
list it with a broker, usually in that market,”
he said.
“We’ve been able to move a fair amount of
property internally without having to use any
Realtors,” Bouchette said.
He said SCBT tries to avoid selling prop-
erties at low prices that will bring down sur-
rounding property values.
Cameron Jordan, a spokeswoman for
Winston-Salem-based BB&T, said the bank
lists its properties with outside agents about
90% of the time. BB&T has asset managers
throughout its geographic footprint that work
with agents.
BB&T also prefers not to sell in bulk.
“From time to time we may auction a
home, but bulk sale of properties is not our
preferred method,” Jordan said.
Jordan said BB&T has a loss mitigation
program and tries to keep homeowners in
their homes. But once the bank acquires
homes, it works to sell them.
On the other hand, BB&T might hold
onto lots and land awhile longer, waiting for
a stronger market.
“We believe that houses are organic and
people need to live in them,” Jordan said.
Wachovia spokeswoman Jamie Dexter
said the bank uses Premiere Asset Services,
a division of Wells Fargo Home Mortgage,
to value, manage and dispose of foreclosure
properties.
Premiere Asset Services works with lo-
cal real estate agents to sell homes as soon as
possible, Dexter said. But in many cases, she
said government entities Freddie Mac, Fan-
nie Mae and the U.S. Department of Hous-
ing and Urban Development manage home
sales.
Photo/Leslie Halpern
MARKET ADJUSTMENT
www.scbizmag.com | Summer 2010 23
She declined to discuss whether bank
operations have changed in response to the
foreclosure crisis, saying that information is
proprietary.
Business opportunitiesOne Upstate real estate fi rm is trying to
carve a new niche for itself amid the foreclo-
sure crisis and the burden it has placed on
bank employees.
Th e Marchant Co. recently began market-
ing services beyond simply selling property to
banks, which could stand to outsource some
of their workload.
“Th e amount of real estate that is in some
form of trouble in one way or another is al-
most overwhelming,” said Chuck Werner,
an agent with the Marchant Co. who used to
work in a bank’s special assets division.
Th e Marchant Co. is off ering to manage
properties that have tenants, for example,
or inspect properties regularly and create
monthly reports for banks and their regula-
tors, if needed.
Part of the challenge for banks is that
properties aren’t selling quickly, in general, so
bank-owned inventories are mounting, Wer-
ner said.
If this month’s properties would sell within
60 days, it would be easier for banks to handle
next month’s properties, he said.
“Some banks are getting through this thing
pretty well,” Werner said. “Others are fl oun-
dering as far as being able to handle it and
knowing which way to go.”
Local inventoryGetting a handle on the number of bank-
owned homes in the Charleston market is dif-
fi cult.
Th e Charleston Trident Association of
Realtors’ Multiple Listing Service tracks how
many homes up for sale are owned by banks,
but agents are not required to list them as
such, said Meghan Weinreich, marketing and
communications director.
Many choose not to because of the low of-
fers that oft en follow, she said.
In a recent count, 198 were listed as bank-
owned, but Weinreich said Realtors associa-
tion offi cials feel sure that number is lower
than the true total.
As another indicator, she pointed to data
from the research fi rm RealtyTrac, which re-
cently reported 2,629 distressed properties lo-
cally, including 1,130 in bank ownership. SCBIZ
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More than 40 companies have announced this year that they
would either expand existing operations or establish new ones
in South Carolina. At press time, the announcements totaled
approximately $525.8 million in investment and the expected
creation of more than 7,000 jobs, according to the S.C. Department
of Commerce.
So, what’s attracting these businesses to South Carolina and per-
suading them to stay?
Frank Ludovina, president of First Quality Tissue, said his com-
pany was drawn to Anderson County by the “work force, work ethic,
infrastructure, business environment and incentives package made
available from state and local resources.”
First Quality announced plans in May to invest $1 billion to build
four manufacturing lines in Anderson County and hire 1,000 work-
ers.
Marion G. Swink, president of McCall Farms Inc., said the
“excellent business environment and solid labor force” contributed to
his company’s decision to invest an additional $9 million in Florence
County to expand its operations.
In addition to the large announcements, a growing number of
small businesses with potential for growth are taking advantage of in-
cubators all across the state.
Regardless of a company’s size, many of the same factors come into
play when a business owner is considering an investment — ranging
from real estate to infrastructure.
Th e following Business Resource Guide was created to off er a
snapshot of four specifi c areas and the role each plays in economic
development decisions across the state.
In addition, a list has been compiled of several agencies that assist
with economic development eff orts on the state and local levels.
REGIONAL ECONOMIC DEVELOPMENT ALLIANCES
Central SC Alliance1201 Main St., Suite 100
Columbia, SC 29201
Phone: 803-733-1131
Toll Free: 866-278-9098
Fax: 803-733-1125
www.centralsc.org
Charleston Regional Development Alliance5300 International Blvd., Suite 103A
North Charleston, SC 29418
Phone: 843-767-9300
Fax 843-760-4535
www.crda.org
Charlotte Regional Partnership550 S. Caldwell St., Suite 760
Charlotte, NC 28202
Phone: 800-554-4373
Fax: 704-347-8981
www.charlotteusa.com
Economic Development Partnership471 University Parkway
Aiken, SC 29802
Phone: 803-641-3300
www.edpsc.org
Upstate SC AlliancePhone: 864-283-2300
www.upstatescalliance.com
NESA – The North Eastern Strategic AllianceP.O. Box 100547
Florence, SC 29502
Phone: 843-661-4469
www.nesasc.org
SouthernCarolina AllianceSouthern Carolina Business Center
1750 Jackson St., Suite 100,
Barnwell, SC 29812
Phone: 803-541-0023
Fax: 803-541-3322
www.southerncarolina.org
STATEWIDE RESOURCES
Municipal Association of South Carolina1411 Gervais St.
Columbia, SC 29201
Phone: 803-799-9574
Fax: 803-933-1299
www.masc.sc
New Carolina: South Carolina’s Council on Competitiveness1411 Gervais St., Suite 315
Columbia, SC 29201
Phone: 803-760-1400
Fax: 803-760-1401
www.newcarolina.org
Palmetto Institute1411 Gervais St., Suite 450
Columbia, SC 29201
Phone: 803-806-8106
Fax: 803-806-8335
www.palmettoinstitute.org
S.C. Association of Community Development CorporationsP.O. Box 20577
Charleston, SC 29413
Phone: 843-579-9855
Fax: 843-579-0232
www.communitydevelopmentsc.org
S.C. Chamber of Commerce1201 Main St., Suite 1700
Columbia, SC 29201
Phone: 803-799-4601
Fax: 803-779-6043
www.scchamber.net
S.C. Department of Commerce1201 Main St., Suite 1600
Columbia, SC 29201-3200
Phone: 803-737-0400,
Toll-free: 800-868-7232
www.sccommerce.com
S.C. Economic Developers’ Association1122 Lady St., Suite 1115,
Columbia, SC 29201
Phone: 803-929-0305
Fax: 803-252-0589
www.sceda.org
S.C. Jobs – Economic Development Authority1201 Main St., Suite 1600
Columbia, SC 29201
Phone: 803-737-0268
Fax: 803-737-0628
www.scjeda.com
S.C. Power Team1201 Main St., Suite 1710
Columbia, SC 29201-3212
Phone: 803-254-9211
Fax: 803-771-0233
www.southcarolinapowerteam.com
ECONOMIC DEVELOPMENT RESOURCES
COMMERCIAL/INDUSTRIAL SPACE | FINANCE | WORK FORCE | INFRASTRUCTURE
COMMERCIAL/INDUSTRIAL SPACEOverview
Commercial real estate markets remain rel-
atively weak across South Carolina, with pock-
ets of stability and improvement. Tenants have
had the upper hand in many lease transactions
in recent months, and that trend continues in
some markets. Financing for property pur-
chases remains hard to come by, experts say,
and fi nancing for new construction is all but
dried up. But a fi xed supply should lead to
stronger markets in the coming months.
Columbia market trendsBusinesses seeking offi ce space have plenty
of options in the Columbia market, where of-
fi ce vacancy rates are 20.6% in the suburbs and
23.6% downtown, according to commercial
real estate fi rm Colliers Keenan.
Two forces behind the particularly high va-
cancy rate downtown are SCANA Corp.’s
move from its 420,000-square-foot space on
Main Street to a new suburban campus, and
a new offi ce tower at Main and Gervais streets
that has pulled some fi rms out of their former
spaces. Offi ce tenants could continue to fi nd
competitive lease rates this year, especially for
Class “A” space.
Columbia’s industrial market has fared
relatively well during the economic downturn.
Although the area’s vacancy rate (8.5%) is up
compared with recent years, it remains the
lowest among the state’s three major markets.
Th e area’s retail market is weaker, with va-
cancy at nearly 12% in the fi rst part of 2010,
according to Colliers Keenan. Th at’s up from
about 9% at the beginning of 2009. National
retailers exiting large spaces have driven the
increase. Th e market should stabilize this year,
Colliers Keenan forecasts, but vacancy is likely
to remain above 10% into 2011. Th at means
retailers seeking space will fi nd landlords will-
ing to negotiate on lease terms.
Charleston market trendsTh e Charleston offi ce market saw some
improvement in early 2010 aft er months of
declining or fl at activity, according to com-
mercial real estate fi rm Grubb & Ellis WRS.
Vacancy fell to 17.4% from about 20% several
months ago. Th e strengthening is tied to a lack
of new construction, the fi rm said. Lease rates
for Charleston-area offi ce space, though down
20% to 30% from their peak a few years ago,
are stabilizing, and tenants are signing lease
26 SC BIZ | www.scbizmag.com
real e
TOPTEN
Largest Certifi ed Sites in S.C.
A certifi ed site is an industrial tract for which a third party has verifi ed size and boundaries,
environmental and topographical characteristics, land use, utility availability and other key
details, as a way to market the property as shovel-ready. The list below of the 10 largest
certifi ed sites and available acreage is from the S.C. Department of Commerce.
1
Black River Airport Park
1,556 acresSumter County
2
Grist Mill Industrial Park
1,445 acresFlorence County
3
Interstate 95 Mega Site
1,417 acres Sumter and Clarendon
counties
4
Sage Mill East
1,380 acresAiken County
5
Jafza Magna Park Santee
1,322 acresOrangeburg County
Business Resource Guide
6
S.C. Advanced Technology Park
1,250 acresBarnwell County
7
West Annex Industrial Site
1,103 acresOrangeburg County
8
The Matrix Industrial Park
868 acresGreenville County
9
Hunter Industrial Park
815 acresLaurens County
10
Brogdon West Industrial Site
805 acresClarendon County
Business Resource Guide
Columbia’s Highest100 Knox Abbott Drive ............................ $22.00
1201 Main St. ........................................ $21.50
1320 Main St. ........................................ $20.00
1901 Main St. ........................................ $20.00
5 Lake Carolina Way ............................... $20.00
Charleston’s Highest40 Calhoun St., Suite 550 ....................... $34.00
200 Meeting St. ..................................... $32.00
177 Meeting St., Suite 410 ..................... $32.00
151 Meeting St., Suite 400 ..................... $30.00
100 Calhoun St. ..................................... $29.00
40 Calhoun St. ....................................... $29.00
Greenville’s HighestMain @ Broad Street ............................. $27.00
55 E. Camperdown Way ......................... $24.50
104 S. Main St. ...................................... $22.75
The Terrace at RiverPlace,
Camperdown Way ................................... $22.50
128 Millport Circle .................................. $22.00
Columbia’s Lowest4406 Forest Drive ................................... $17.00
101 Business Park Blvd. ........................ $17.00
7909 Parklane Road .............................. $17.00
250 Berryhill Road .................................. $15.75
1901 Assembly St. .................................. $15.50
Charleston’s Lowest421 Wando Park Blvd., Suite 120 ............ $20.00
4969 Centre Pointe Drive, Suite 102 ....... $20.00
501 Wando Park Blvd. ............................ $20.00
474 Wando Park Blvd. ............................ $19.00
4130 Faber Place Drive ........................... $18.00
3950 Faber Place Drive .......................... $18.00
Greenville’s Lowest400 Brookfi eld Parkway .......................... $16.50
201 Brookfi eld Parkway .......................... $16.50
1041 E. Butler Road ............................... $16.50
10 Academy St. ...................................... $15.00
12 Maple Tree Court ............................... $15.50
deals for longer terms than in 2009.
Th e Boeing Co.’s new airplane assembly
facility under construction in North Charles-
ton and several major distribution projects in
the area are fueling industrial leasing activity
among smaller fi rms doing related work, ac-
cording to Grubb & Ellis WRS. Charleston’s
industrial vacancy rate was 13.8% at the end
of the fi rst quarter of 2010, nearly even with
the 14.2% reported at the end of 2009. Ask-
ing rents also began to stabilize early this year,
suggesting the market has seen a bottom.
Charleston-area retail properties had an
average vacancy rate of 9.7% in the fi rst quar-
ter, up from 8.4% in the fourth quarter, Grubb
& Ellis WRS reported. Th e fi rm expects va-
cancy to drop again later this year as two new
grocery store-anchored shopping centers, now
classifi ed as vacant, come online.
Greenville market trendsGreenville-area offi ce market vacancy is
about 17.2% downtown and 21.5% in the sub-
urbs, according to Colliers Keenan. Th e down-
town market gained additional square footage
this spring with the new Main @ Broad six-
story development, which contains offi ce and
retail space and a hotel.
Industrial properties posted a vacancy rate
of 11.1% in late spring, Colliers Keenan re-
ported, down from the 2009 year-end rate of
11.9%. Rental rates have been volatile in recent
months as landlords negotiate lower terms
for shorter leases. Rates are likely to remain
volatile into 2011, Colliers Keenan forecasts,
though vacancy could stabilize this year.
Greenville’s retail market weakened further
in early 2010, with the average vacancy rate
climbing to about 13.2% from about 8.6% at
the end of 2008. As in other markets, big-box
closures have driven recent increases. Retailers
could benefi t from lower asking rents, which
have fallen as tenants have renegotiated leases,
according to Colliers Keenan. Th e fi rm expects
the Greenville market to continue to suff er this
year from retail bankruptcies and closures.
Business Incubatorsin South CarolinaOn one end of the spectrum, South Carolina
offers huge, shovel-ready sites for indus-
tries. On the other, the state has a growing
array of small-scale business incubators
that provide just enough offi ce space
— equipped with Internet, phones and
other necessities — to help fl edgling
or relocating companies get off the
ground. Among the public and private-
sector offerings are the USC Columbia
Technology Incubator, the Charleston
Digital Corridor’s Flagship incubator, the Lowcountry In-
novation Center in North Charleston and SCRA’s Innovation Centers, which are in
the works or completed in each of the state’s three population centers.
Highest- and lowest-priced available Class ‘A’ offi ce space
Sources: Columbia, Greenville from Ryan Hyler, Colliers Keenan
Charleston from Jon Chalfi e, Grubb & Ellis WRS
lina
us-
ng
rs
e
d
e Lowcountry In-
d SCRA’s Innovation Centers which are in
28 SC BIZ | www.scbizmag.com
FINANCE
Business Resource Guide
SLOW RECOVERY
South Carolina, like other states, is in the
midst of what economists say will be a
very slow recovery.
In his latest economic situation re-
port, Clemson University economist Bruce
Yandle noted that production is rising and
retail sales are improving. But construction
activity is still falling, along with most state
revenues, and huge excess capacity remains in
all sectors, he said.
“We have ghosts of the U.S. debt crisis still
haunting us,” Yandle said. “Th e bad debt has
been shuffl ed from the private to the public
sector; but it is still there, and much of it is
rotten.”
Th e seasonally adjusted value for residen-
tial construction increased earlier this year,
and unemployment insurance claims dropped
during the same period, according to the lat-
est economic report from the Moore School
of Business at the University of South Caroli-
na. Additionally, the seasonally adjusted aver-
age for a manufacturing workweek increased
1.3% this spring, and infl ation-adjusted earn-
ings increased 1.7%.
While economic indicators show positive
trends, recovery will occur “at a very slow
pace” as consumers remain cautious and un-
employment remains high, the report said.
“For months, the South Carolina leading
indicator has been pointing to a recovery. ...
Continuing improvement in the economic
conditions is anticipated in the months ahead,”
the Moore School reported. “However, the
debt crisis in Europe may impact negatively
the South Carolina economy.”
Europe’s woes are particularly concerning
in South Carolina because the state’s economy
relies on exports and the crisis has devalued
the Euro, the report said. Yandle agreed, say-
ing poor economic conditions in Europe will
stifl e U.S. exports to the region and lead to
higher imports from Europe.
He said gross domestic product should
end in the high 2% to low 3% range for 2010.
Yandle also expects employment to expand
in all sectors but construction.
“Th e economic plane is off the ground,” he
said, “but it is wise to keep seat belts fastened
and trays locked in an upright position.”
“We have ghosts of the U.S.
debt crisis still haunting us.
The bad debt has been shuffled
from the private to the public
sector; but it is still there, and
much of it is rotten.”
Bruce Yandleeconomist, Clemson University
$0
State Net Tax Effective Tax Rate
1 South Carolina $1.86 million 3.730%
2 Michigan $1.72 million 3.449%
3 Indiana $1.47 million 2.941%
4 Mississippi $1.29 million 2.582%
5 Arizona $1.26 million 2.529%
6 Texas $1.26 million 2.529%
7 Kansas $1.12 million 2.243%
8 Missouri $1.11 million 2.223%
9 Iowa $1.07 million 2.139%
10 Tennessee $1.03 million 2.067%
*Results are based on net taxes and rates in each state’s largest city for the 2007 tax year.
Net tax is based on property valued at $25 million.
Source: S.C. Chamber of Commerce, Minnesota Center for Public Finance Research
www.scbizmag.com | Summer 2010 29
$1
$3
$5
$7
$9
$11
$13
$15
$2
$4
$6
$8
$10
$12
$14
Business Resource Guide
Small Business Administration-backed loans, by county, in 2009
Gross dollar County Loans amount
Abbeville .................3 ..................$47,500
Aiken ....................14 .............$3,873,800
Allendale.................1 ................$799,000
Anderson ..............14 .............$2,862,500
Bamberg .................1 .............$1,200,000
Beaufort................22 .............$4,519,400
Berkeley ...............15 .............$5,157,500
Calhoun ..................3 .............$1,023,000
Charleston ............53 .............$9,533,600
Cherokee ................2 ................$380,800
Chester ...................1 ................$441,000
Chesterfield ............1 ................$225,000
Clarendon ...............1 ..................$35,000
Colleton ..................1 ..................$50,000
Darlington ...............1 ..................$10,000
Dorchester ..............9 .............$1,090,000
Edgefield ................1 ..................$15,000
Fairfield ..................2 ................$265,000
Florence .................8 .............$1,981,000
Greenville .............56 ...........$18,299,100
Greenwood .............4 .............$4,531,000
Hampton .................2 ........... $1,512,500
Horry ....................31 .............$6,071,300
Jasper ...................3 ................$850,000
Kershaw .................3 ................$252,100
Lancaster ...............2 ................$332,000
Laurens ..................1 ....................$5,000
Lee .........................1 ....................$5,000
Lexington ..............25 .............$8,275,500
Marlboro .................1 ....................$5,000
Newberry ................2 ................$335,000
Oconee ...................4 ................$868,000
Orangeburg ............4 ................$238,000
Pickens ...................3 ................$927,300
Richland ...............46 ...........$14,696,400
Spartanburg ..........15 .............$2,970,000
Sumter ...................2 ................$253,200
Union ......................1 ..................$25,000
Williamsburg .......... 2 .............$1,044,300
York ......................22 .............$7,733,900
Statewide ..........383 .........$102,738,700
Source: U.S. Small Business Administration,
S.C. District Offi ce
SSSStStStStStaate
TOPTEN
Highest effective property tax rates on industrial property*
Source: S.C. Department of Revenue for fi scal year 2007-2008, the most recent data available
Retail sales by countyin
Bill
ions
of D
olla
rs
Greenvil
leHorr
y
Charles
ton
Saluda
Richlan
d
Edgefield
Lexin
gton
Abbeville
McCorm
ick
Allendale
$15.1B
$13.4B
$10.9B
$10.2B
$9.1B
$53.4M $127.6M $175.6M $177.4M $212.6M
9B
TOPFIVE
BOTTOMFIVE
Statewide $146.3 billion
WORK FORCEB
oeing Co.’s entrance into South Carolina
has sparked a renewed demand for high-
end manufacturing workers across the
state that won’t be limited to just the burgeon-
ing aerospace supply chain.
Much like BMW’s and Michelin North
America’s entries into the Upstate and Mid-
lands, Boeing’s landing here has put a cor-
porate seal of approval on the Lowcountry,
bumping the entire state up a notch on eco-
nomic development and site-selection lists.
As more manufacturing and support compa-
nies enter South Carolina, demand for work-
ers is expected to increase.
ReadySC is working with the aircraft maker
like it has with many others across the state to
ensure a steady fl ow of qualifi ed, well-trained
workers is ready to meet that demand.
Clemson University’s International Cen-
ter for Automotive Research is growing the
state’s next crop of engineers by using hands-
on learning to facilitate more than automotive
sector skills. Imtiaz Haque, executive director
of the Carroll A. Campbell Jr. Graduate En-
gineering Center, said students participating
in the school’s new Deep Orange program
learn about management of innovation that
could apply to any development process that
requires problem-solving and thinking skills.
Haque said CU-ICAR looks at research
and development in a new kind of way to
produce what future manufacturers will need
to fuel the growing high-end manufacturing
cluster, with a focus on automotive engineer-
ing. Each class of Deep Orange students cre-
ates an innovative platform and designs and
builds a vehicle on a two-year cycle.
“You know there is no substitute for a
hands-on education,” Haque said. “Th at’s
what we’re trying to do with graduate students
at CU-ICAR.”
Green technology also has become a grow-
ing area for South Carolina’s work force. Fed-
eral dollars have fl owed in at technical colleges
across the state so they can develop curricula
geared toward environmentally and business-
friendly technologies.
Orangeburg-Calhoun Technical College,
Trident Technical College in North Charles-
ton, Central Piedmont Community College
in Charlotte and Mountain Empire Commu-
nity College in Virginia have been awarded
a “Career Pathways for a Green South” grant
to create a work force that understands green
technology standards.
Th e wind turbine drivetrain test facility
being designed at Clemson University’s Res-
toration Institute in North Charleston under
a Department of Energy grant also is expected
to create thousands of engineering, manu-
facturing and supporting jobs as it begins to
stress-test gigantic wind turbine drivetrains.
South Carolina continues to struggle with
one of the highest unemployment rates in the
nation as the recovery slowly sprinkles new
jobs across the community. Th e S.C. Depart-
ment of Employment and Workforce reported
an 11.6% unemployment rate for April 2010,
compared to a national rate of 9.9% for the
same month. Nearly 9,000 jobs were added in
the hospitality industry as the summer tourist
season began.
30 SC BIZ | www.scbizmag.com
Business Resource Guide
Photo/Michelin North America
South Carolina Department of Employment and Workforce • 1550 Gadsden Street, Columbia, SC 29220 • (803) 737-2671 • Relay Service dial 711 (TTY)
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dentialing program that tests- and scores- job skills. It gives jobseekers proof of their abilities and employers a way to identify
employees with the most potential. WorkReady SC gives employees a hiring advantage:
• Streamlines recruitment decisions
• Reduces turnover
• Reduces training costs
• Saves time and money
For more information about this new program sponsored by the South Carolina
Department of Employment and Workforce, visit www.workreadysc.com
HOW DO YOU KNOWI’M WORK READY?
EEOC Compliant
Expenditures per studentTop 5 ExpendituresSchool district per studentAllendale..............................................$12,283
Fairfield ...............................................$12,160
McCormick .........................................$11,594
Marion 7 ..............................................$11,588
Spartanburg 7 .....................................$11,424
Bottom 5 ExpendituresSchool district per studentAnderson 1 ............................................$6,751
Spartanburg 2 .......................................$6,797
Spartanburg 4 .......................................$7,122
Dillon 3 ..................................................$7,182
Dorchester 2 ..........................................$7,206
Number of students per districtTop 5District EnrollmentGreenville ..............................................67,651
Charleston ...........................................41,642
Horry .....................................................35,822
Berkeley ................................................27,907
Aiken .....................................................24,753
Bottom 5District EnrollmentMarion 7 .....................................................806
Dillon 1 .......................................................830
Barnwell 19 ................................................854
McCormick .................................................911
Bamberg 2 .................................................915
10-year change in district enrollmentTop 5 fastest-growing districtsDistrict % increaseYork 4 ........................................................95.4
Spartanburg 5 ............................................43.8
York 2 ........................................................43.4
Richland 2 .................................................43.2
Lexington 1 ................................................37.9
Bottom 5District % decreaseMcCormick ................................................32.7
Marion 7 ....................................................31.4
Allendale....................................................29.6
Barnwell 19 ...............................................28.7
Clarendon 1 ...............................................27.5
Percent of graduates entering post-secondary education after high schoolTop 5 % of graduates enteringDistrict post-secondary educationSpartanburg 6 ...........................................90.2
York 4 ........................................................89.4
Lexington 5 ...............................................87.0
Anderson 5 ................................................86.7
Dorchester 4 ..............................................85.5
Bottom 5 % of graduates enteringDistrict post-secondary educationHampton 2 .................................................22.4
Orangeburg 3 ............................................29.7
Allendale....................................................31.0
Fairfield .....................................................34.8
Marion 7 ....................................................36.2
Source: S.C. Department of Education, 2008
Poverty rateTop 5 % of studentsDistrict living in povertyMarion 7 ....................................................97.4
Clarendon 1 ...............................................97.0
Allendale....................................................96.4
Lee ............................................................96.3
Williamsburg ..............................................95.9
Bottom 5 % of studentsDistrict living in povertyYork 4 ........................................................23.7
Lexington 5 ...............................................37.6
York 2 ........................................................40.7
Lexington 1 ...............................................45.9
Anderson 1 ................................................52.0
Source: U.S. Census, 2009 estimate
Business Resource Guide
32 SC BIZ | www.scbizmag.com
Education level of S.C. populationSource: S.C. Department of Education
82.1 %High school graduate
23.5 %Bachelor’s degree
or more
8.2 %Advanced degree
or more
www.scbizmag.com | Summer 2010 33
INFRASTRUCTUREW
ith more than 41,459 miles of roads and
bridges, South Carolina’s state-main-
tained highway system is the fourth-
largest in the United States. Th e S.C.
Department of Transportation maintains the
roadways through its $1.05 billion budget and
4,985 employees.
Nationally, 19% of all highways are under
state ownership. In South Carolina, 62% of
all highways are owned by the state. Yet, S.C.
taxpayers contribute less state revenue ($131)
than the national per-capita average ($202).
Th e state also ranks last in the nation and
region in terms of expenditures per road mile,
according to a 2002 study by Clemson Uni-
versity’s Strom Th urmond Institute.
Th e DOT reports that its primary source
of state revenue (more than 90%) is a motor
fuel user fee of 16.8 cents per gallon. Across
the Southeast, 51% of state highway funding is
derived from sources other than fuel user fees.
Th e S.C. fee has not increased since 1987 and
has never been adjusted for infl ation.
In addition, motor fuel user fee revenues
decreased by 4% between 2008 and 2009, and
fi scal 2010 revenues refl ect another 4% de-
crease, according to the DOT’s 2010 report.
Th e DOT did receive $275 million for
highways and bridges and $10 million for
transit from through the American Recovery
and Reinvestment Act in fi scal 2009-2010.
However, this source of funding is not re-
curring and can only be used on federal aid-
eligible roads, which make up about half of
the state’s roadways.
The futureTh e city of Charleston and the S.C. DOT
have joined together to study the feasibility
of a high-speed, intercity passenger rail line
connecting cities from coastal Georgia to the
North Carolina border.
Th e S.C. DOT and the city have applied for
a $500,000 federal grant to study a passenger
rail line in South Carolina’s eastern corridor
that would tie into the existing federally des-
ignated Southeast High-Speed Rail Corridor.
“Th e revenues from state fuel taxes have
proven to be insuffi cient to maintain our ex-
isting highway system,” Transportation Secre-
tary H.B. “Buck” Limehouse Jr. said in a state-
ment.
“We need to look into rail as a way to take
the pressure off our highways and reduce
traffi c congestion.”
In the Upstate, a high-speed rail corridor
would pass through Greenville and Spartan-
burg. Th at project remains unfunded, how-
ever, despite North Carolina’s active participa-
tion in the program and the state’s intention to
bring the high-speed trains to Charlotte.
Most traveled roadways in S.C.
County Road
Begin
Milepoint
End
Milepoint
2008
AADT*
Charleston I-26 211.54 212.51 139,800
Charleston I-26 208.09 208.54 136,200
Lexington I-26 106.46 107.14 133,300
York I-77 90.2 91.05 129,100
Charleston I-26 211.14 211.54 127,900
Charleston I-26 208.54 211.14 125,500
Lexington I-26 104.35 106.46 113,800
Richland I-26 107.14 107.96 112,500
Greenville I-85 50.83 53.72 110,800
Lexington I-26 103.42 104.35 101,600
*Annual average daily traffi c
Source: S.C. DOT
Business Resource Guide
A crew works on an on-ramp as part of the
interchange improvement project on Interstate 26.
(Photo/Earl Capps)
34 SC BIZ | www.scbizmag.com
Business Resource Guide
U.S. 17 ACE Basin ParkwayAn eight-mile stretch of U.S. 17 will be
widened from Gardens Corner in Beaufort
County to the four-lane roadway at Lightsey
Plantation in Colleton County
Segment 1, between Gardens Corner and
the Combahee River, is expected to be com-
pleted this fall. Cost of the project: $80 mil-
lion.
Segment 2A, between the Comba-
hee River and the four-lane roadway at
Lightsey Plantation, also is expected to
be completed this fall. Cost of the proj-
ect: $20.4 million.
Ben Sawyer BridgeRehabilitation of this bridge in Charleston
County included new steel superstructure
approach spans and a swing span, as well as
new electrical and mechanical systems. Th e
new superstructure is similar to the previous
bridge in design and height with slightly wid-
er traffi c lanes and a 5 1/2-foot sidewalk.
Aft er a little more than one year of con-
struction, the bridge is now open. Project
cost: $32.5 million.
Interstate 26 Remount and Aviation interchange improvement
Th is three-year $66 million project address-
es one of the busiest traffi c areas in Charleston
County. It includes the reconstruction of two
interchanges to improve traffi c fl ow to and
from Interstate 26. It will also widen I-26 to
Water sources for major metro areas
GREENVILLE AREATable Rock Reservoir,
North Saluda Reservoir, Lake Keowee
Population served: 350,000
Average usage: 55 million gallons per day
COLUMBIA AREALake Murray, Broad River Diversion Canal
Population served: 375,000 in Richland
and Lexington counties
Average usage: 60 million gallons per day
CHARLESTON AREAEdisto River, Bushy Park Reservoir
Population served: 400,000
Average usage: 50 million gallons per day
Sources: Greenville Water System,
city of Columbia,
Charleston Water System
Electricity price comparison (industrial)
State Cost per kilowatt-hour
Georgia 6.67 cents
North Carolina 5.54 cents
South Carolina 5.37 cents
Tennessee 6.29 cents
Source: S.C. Power Team, 2008 data
eight lanes for three miles between I-526 and
Ashley Phosphate Road.
Construction began in August 2008 and is
expected to continue until 2011.
Interstate 20 widening Th e S.C. Department of Transportation
plans to widen Interstate 20 from I-77 to just
east of Spears Creek Church Road (Exit 82)
in northeast Richland County. Th e project in-
cludes widening to six lanes and mainline cor-
ridor rehabilitation of 6.7 miles of I-20.
Th e project is scheduled to start this fall
and is estimated to take 2 1/2 to 3 years to
complete. Project cost: $80 million.
Interstate 385 rehabilitationTh is project extends from the Interstate
385/I-26 interchange north along I-385 for
15 miles, to S.C. Route 92. It will consist of
removal of some of the existing asphalt pave-
ment and replacement with approximately10
inches of concrete.
Th e interstate will also be widened toward
the median to add shoulders where needed.
Improvements will raise the fi nished grade of
the interstate and require the Transportation
Department to raise six overpass bridges by
approximately 2 feet to provide a minimum
clearance of 16 feet. Th e fl yover bridge that
connects I-26 westbound to I-385 north-
bound will also be replaced.
Th e project is expected to be complete in
August. Project cost: $300 million.
Largest road and bridge construction projects
10 largest power plants (Ranked by generation capacity)Plant Primary Energy
Source/TechnologyOperating Company Net Summer
Capacity (MW)
1. Oconee Nuclear Duke Energy Carolinas LLC 2,538
2. Cross Coal S.C. Public Service Authority 2,320
3. Catawba Nuclear Duke Energy Carolinas LLC 2,258
4. Bad Creek Pumped storage Duke Energy Carolinas LLC 1,360
5. Winyah Coal S.C. Public Service Authority 1,155
6. V.C. Summer Nuclear S.C. Electric & Gas Co. 966
7. John S. Rainey Gas S.C. Public Service Authority 958
8. H.B. Robinson Nuclear Progress Energy Carolinas Inc. 899
9. Broad River Energy
Center
Gas Calpine Operating Services Co. Inc. 854
10. Jasper Gas S.C. Electric & Gas Co. 852
MW = Megawatt
Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report, ’08
P O R T S , L O G I S T I C S & D I S T R I B U T I O N I N S . C .
S.C. Delivers
ISSUE 2
, 2010
A P U B L I C AT I O N O F S C B I Z N E W S
Flight plan Southwest to serve
South Carolina in 2011
Page 41
$1 billion impactStudy reveals impact of aviation
center on Upstate
Page 44
Hot oilS.C. company converts
cooking oil into biodiesel
Page 46
SSSSSSSSSSSSSttttttttt
36 | S.C. DELIVERS
BRIEFS
Logistics company
expected to add 500 jobs
MONCKS CORNER – A Los An-
geles-based distribution and logis-
tics company is set to deliver hun-
dreds of jobs to the Lowcountry.
Moulton Logistics Manage-
ment plans to open a new distri-
bution center in Berkeley County,
according to a joint statement
from the S.C. Department of
Commerce, Berkeley County and
the S.C. State Ports Authority.
Th e $25 million investment,
which will be located in the for-
mer Masisa USA building on Cle-
ments Ferry Road, is expected to
generate 500 new jobs in the next
fi ve years.
Th e company expects the new
facility also will reduce its freight
costs and transit times by provid-
ing the company better access to
its East Coast and overseas cus-
tomers, the statement said.
Moulton plans to begin hiring
by the end of the year.
Th e company takes and fi lls
direct-response shipping or-
ders, such as those placed when
consumers buy items presented
on infomercials or the Internet.
Moulton is also heavily involved
in retail distribution for several
high-profi le retailers, including
Wal-Mart.
S.C. Railways upgrades
diesel to reduce emissions
With the help of a state grant,
S.C. Public Railways has replaced
engine components in two of its
10 locomotives with parts that re-
duce harmful diesel emissions.
Offi cials from the S.C. Depart-
ment of Health and Environmen-
tal Control recently thanked S.C.
Public Railways for making the
switch and announced a $105,000
grant that pays for half of the
cost.
“Reducing diesel emissions is
one of the biggest public health
challenges that we face today,”
said Myra Reece, chief of DHEC’s
Bureau of Air Quality.
Reece said the U.S. Environ-
mental Protection Agency requires
that new diesel engines meet lower
emissions standards. But about 20
million older diesel engines are in
use now across the country, and be-
cause diesel engines have long lives,
it could take 30 years before all of
them are replaced.
To encourage entities to vol-
untarily upgrade their diesel en-
gines, DHEC provides matching
funds through a special grant
program.
Th e replacement of parts in
two of S.C. Public Railways’ lo-
comotives will cut the particulate
matter from those engines by 31%
and reduce nitrogen oxides by
about 52%, Reece said.
Th e move improves the fuel
effi ciency of the engines, reduc-
ing fuel use from 12 gallons per
hour to seven.
S.C. Public Railways, a divi-
sion of the S.C. Department of
Commerce, operates three com-
mon carrier railroads, two of
which provide for switching ser-
vices that allow CSX and Nor-
folk Southern access to Port of
Charleston terminals.
Th e agency also operates a
short line railroad in Berkeley
County that serves BP Chemical
and Nucor Steel.
SPARTANBURG – Adidas Group
offi cially opened two distribution
centers in late May, placing nearly
2 million square feet of warehouse
just off Interstate 85.
“With this state-of-the-art fa-
cility and our over-1,200-member
team, we’ve established a founda-
tion for the company’s sustained
success in the U.S.,” said Glenn
Bennett, head of global opera-
tions for Adidas.
In 2007 Adidas announced
plans to relocate and expand its
Spartanburg-based operations.
Th e fi rst building, 1,096,700
square feet, opened in October
2008. Th e second facility, with
803,563 square feet, opened in
October 2009. A third building
on campus serves as a call center.
Each of the distribution cen-
ters has an expansion capacity of
25%.
Th is is Adidas’ largest dis-
tribution facility, and it serves
North America. Eighty percent
of all products can be delivered
in the United States in three days
or fewer. Th e distribution centers
hold more than 700,000 products,
including items from Reebok, a
brand Adidas acquired in 2006.
Th e capital investment for
this project was $150 mil-
lion. Th e facilities house
more than 15 million
units of apparel, footwear,
equipment and accessories.
Adidas opens Upstate distribution centers
Glenn Bennett, head of global opera-
tions for Adidas Group.
c
Su
A Industrial marine park planned for Conway
CONWAY – Two utilities and
two government agencies are col-
laborating to create an industrial
marine park near the Bucksport
Marina outside of Conway.
Th e Grand Strand Water and
Sewer Authority announced this
spring that it will contribute the
land for the park, Santee Cooper
will provide the engineering and
permitting expertise, and Horry
County will help with the infra-
structure necessary to make the
park viable for industry. Myrtle
Beach Regional Economic Devel-
opment Corp. is also contributing
to the eff ort.
“Santee Cooper is pleased to
join forces with our local partners
and build a marine park that will
create opportunities for jobs and
capital investment by the busi-
nesses that will ultimately locate
here,” said Michael Brown, eco-
nomic development manager for
Santee Cooper.
Offi cials are hoping to attract
boat builders, marine repair busi-
nesses, boat refurbishment com-
panies and other marine service
organizations as tenants.
“Th e waterway is a tremen-
dous asset, and this unique tract
of land adjacent to it provides un-
limited possibilities for industry,”
Jim Papadea, property manager
for Horry County, added. “Man-
ufacturers of heavy-lift compo-
nents for wind or steam turbines,
modular hospital units and the
like, which are too large to trans-
port by truck or rail, will fi nd this
location desirable.”
As for a timeline, offi cials have
said the park is a work-in-prog-
ress and it will “take some time
before the park is tenant-ready.”
“In the meantime, we’ll im-
prove the existing facilities at
Bucksport Marina, which will re-
main a fully functioning marina
for residents and transient boat-
ers to enjoy even aft er the marine
park is operational,” said Fred
Richardson, CEO of the water
and sewer authority.
SOUTHEAST INDUSTRIALEQUIPMENT,INC.
QualityValue Service
Toyota’s 8-Series features an exclusive emission system that not only surpasses federal EPA emission standards, but also meets California’s more stringent emission standards. The result is a lift truck that produces 70 percent less smogforming emissions than the current federal standard. As a result of Toyota’s relationship with the Arbor Day Foundation, more than 57,000 trees were planted in national forests and local parks damages by fi re or other natural causes.
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38 | S.C. DELIVERS
BRIEFS
N. Charleston supply chain
company honored NORTH CHARLESTON – Cam-
bar Solutions has been named
to the 2010 Supply & Demand
Chain Executive 100.
Th e award, given by Supply
and Demand Executive maga-
zine, honors top supply chain
and warehouse soft ware manage-
ment vendors.
Cambar Solutions, based in
North Charleston, was recog-
nized for its warehouse man-
agement system, which includes
radio frequency technology and
handheld bar code readers.
Th e company’s products,
which include hardware and
soft ware solutions, enable dis-
tributors to control and moni-
tor the movement and storage of
materials within the warehouse
and process all transactions asso-
ciated with receiving, put-away,
replenishment, picking, shipping
and cycle counting.
Th e business technology pub-
lication announced this year’s top
100 on its website recently. Win-
ners will also be featured in the
magazine’s June/July issue.
SPA approves Port Royal sale
CHARLESTON – Th e S.C. State
Ports Authority board passed a
resolution in May approving a con-
tract for the sale of its Port Royal
facilities for $16.75 million.
Th e move, approved at the
board’s monthly meeting, au-
thorizes management to sign the
contract upon approval by the
state Budget and Control Board,
which is set to meet in June.
According to the contract,
the purchase would be made in
two payments of $8.375 million,
the fi rst to be delivered aft er a
period of due diligence and the
second no more than three years
later. SPA offi cials have declined
to name the buyer until aft er the
transaction is complete.
Upon fi nal approval of the
contract, the buyer would incur
a $250,000 penalty if it does not
complete the purchase.
Th e $16.75 million off er is
higher than the property’s ap-
praised value, according to SPA
offi cials. Th e proposed deal,
however, falls almost $10 mil-
lion short of a previous off er for
the property and is more than $3
million less than the most recent
asking price.
Activewear company
inaugurates distribution center CHARLESTON – A Montreal-
based activewear company of-
fi cially inaugurated its new dis-
tribution center on the Cainhoy
peninsula in May.
Offi cials from Gildan Ac-
tivewear Inc., which makes a
variety of t-shirts, socks and un-
derwear for the wholesale and
retail markets, were on hand for
the ribbon-cutting on Clements
Ferry Road.
Gildan President and CEO
Glenn J. Chamandy said the
company, which employs 25,000
workers worldwide, planned to
locate 250 jobs at the site and
would make Charleston its retail
headquarters. Today, retail sales
make up for 30% of the compa-
ny’s $1.3 billion in sales, he said.
Th e company also is moving
its customer service and market-
ing divisions to the Charleston
distribution center, which is lo-
cated in Berkeley County.
Th e company also owns a
manufacturing plant in Clarkton,
N.C. Th e site of the distribution
facility, which is 850,000 square
feet, off ers enough land for it to
double in size as the company
grows.
Port volume up again
s
Ac
S
Port volume was up in April for the fourth straight
month, showing a 28.5% year-over-year increase. Volume
for the month also was up 3.8% over March.
Comparisons to last year are somewhat skewed be-
cause of the shipping industry’s historically bad year in
2009, State Ports Authority offi cials said. Th ey pointed to
the month-over-month increases as more concrete signs
of port regeneration.
“It’s safe to say that we’ve got a little bit of a trend work-
ing here,” said Paul McClintock, the SPA’s chief commer-
cial offi cer.
Th e SPA is expecting more good news concerning vol-
ume, as a recently signed deal with shipping line CSAV
could mean as many as 1,000 containers per week, ac-
cording to offi cials.
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40 | S.C. DELIVERS
BRIEFS
CHARLESTON – Since announc-
ing its arrival in South Carolina in
1992, BMW Manufacturing Co.
has manufactured and exported
more than 1 million vehicles.
And 85% of those cars have gone
through the Port of Charleston.
Currently, more than 70% of
the vehicles produced in the Up-
state are exported to more than
120 markets worldwide. In 2009,
BMW commemorated its 15-year
anniversary and the production
of 1.5 million vehicles.
Th rough 2009, BMW has
invested more than $4 billion
BMW exports millionth auto made in S.C.
in South Carolina and employs
about 5,000 people at the plant.
According to a 2008 economic
impact study by the University
of South Carolina’s Moore School
of Business, the factory sup-
ports 23,050 jobs and generates
$1.2 billion in wages and salaries
annually within the state.
Th e plant began production of
BMW’s fi rst full-hybrid vehicle,
the BMW ActiveHybrid X6, in
October 2009 and its $750 mil-
lion expansion to build the next
generation BMW X3 is nearly
complete.
SPARTANBURG – South Caro-
lina’s oldest commercial airport is
fi nally getting a makeover. Spar-
tanburg offi cials broke ground
this spring on a $4.5 million
project at Spartanburg Down-
town Memorial Airport that will
include a new terminal and 20
T-hangars.
“Th is is how corporate Amer-
ica meets Spartanburg,” said Air-
port Director Darwin Simpson.
“Th ey don’t travel by bus, train or
automobile.”
Th e fi rst fl ight at the airport
took place on Oct. 23, 1927.
Th e likes of Charles Lindbergh
and Amelia Earhart have passed
through Spartanburg’s airport.
South Carolina’s fi rst aerial wed-
ding occurred above Spartanburg
in 1932.
“The terminal is very old
and dilapidated,” Simpson said.
“We’re moving in the right di-
rection to attract new business
and have an additional impact.”
According to Mayor Junie
White, the airport has a $10 mil-
lion annual impact on Spartan-
burg County. About 69,000 fl ights
leave the airport, mostly for busi-
ness purposes.
“Spartanburg Downtown Me-
morial Airport is a major gateway
to Spartanburg,” he said. “Th e
renovation to the terminal and
the new hangars will attract eco-
nomic development to the com-
munity.”
Th e new terminal will open in
spring 2011. Th e airport will next
seek to repave the parking lots
and runways and lengthen the
runway by 500 feet. Th at project
will require the purchase of addi-
tional land and will likely occur in
two to three years.
Spartanburg airport renovation under way
S.C. DELIVERS | 41
AEROSPACE
Discount carrier Southwest
Airlines, the largest do-
mestic airline by passen-
ger volume, announced in May
that it will serve the Charleston
and Greenville-Spartanburg air-
ports starting in 2011.
Southwest has yet to an-
nounce start dates, destinations
and fares. But the company’s de-
cision is being celebrated among
local business, tourism and gov-
ernment leaders for its inevitable
downward pull on airfares in
Charleston and Greenville.
Fares have increased in
Charleston since low-cost carrier
AirTran Airways left the market
in December. Since then, airport
offi cials and community leaders
have been working to recruit a
new low-cost carrier to replace
AirTran.
High fares hurt Charleston’s
eff orts to recruit businesses and
attract tourists, meetings and
conventions, local offi cials have
said. High costs of air travel also
hurt businesses and residents
based here.
No incentives neededSouthwest announced its in-
tent to start service in Charleston
and Greenville-Spartanburg just
as state lawmakers were working
toward a compromise on contro-
versial legislation that would of-
Flight planDiscount carrier Southwest to serve Greenville and Charleston starting in 2011
By Ashley Fletcher Frampton, Staff Writer
“Both these markets are attractive business and leisure destinations for existing customers and entry points for new
customers.”
Ashley Dillonspokeswoman for Southwest
42 | S.C. DELIVERS
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• Contaminated groundwater and stormwater
• Industrial accident contaminated water
• Discarded water from industrial, auto and truck cleaning
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fer incentives to new air carriers.
At the same time, Charleston
County Council was in the midst
of approving an incentive plan
for the same purpose, funded
through a 5% tax on car rentals.
But the Dallas-based airline
emphasized in its May 11 an-
nouncement that it intended to
serve the two cities without sub-
sidies.
Th e news came as a surprise to
many because of the push to get
incentive measures passed.
Helen Hill,
executive direc-
tor of the Charleston
Area Convention and Visitors
Bureau, recently told Charleston
County Council that communi-
ties must off er money to help low-
cost airlines with startup costs.
She said an unidentifi ed airline
had guaranteed it would serve
Charleston with an incentive plan
in place.
“Th is is the new reality of re-
cruiting air service,” she said.
In the Statehouse,
proposed air service in-
centives had pitted Upstate and
Lowcountry lawmakers against
their colleagues from the Mid-
lands.
Based on reports that South-
west wasn’t interested in serving
the Columbia Metropolitan Air-
port, lawmakers in the Midlands
said attracting the airline to com-
petitor markets would put Co-
lumbia at a disadvantage.
Sen. Larry Martin, R-Pickens,
had said that Southwest offi cials
assured lawmakers that their in-
terest in serving S.C. markets
was tied to the state incentive
bill, which would have made
as much as $15 million avail-
able for air carriers.
“Th e clear understanding I
came away with was that if we
could pass the bill, it certainly
would go a long way toward ce-
menting their interest in coming
here,” Martin said in late April.
Charleston airport offi cials
and some county leaders said
they didn’t know why Southwest
had cast aside the incentives.
Southwest’s decisionA Southwest spokeswoman
did not speak specifi cally to that.
“Independent of the activity in
the state Legislature, we’ve been
studying opportunities within
AEROSPACE
fer incentives to new air carriers.
At the same time, Charleston
County Council was in the midst
of approving an incentive plan
for the same purpose, funded
through a 5% tax on car rentals.
But the Dallas-based airline
Helen Hill,
executive direc-
tor of the Charleston
Area Convention and Visitors
Bureau, recently told Charleston
County Council that communi-
ties must off er money to help low-
In the Statehouse,
proposed air service in-
centives had pitted Upstate and
Lowcountry lawmakers against
their colleagues from the Mid-
lands.
Based on reports that South-
west wasn’t interested in serving
the Columbia Metropolitan Air-
terest in serving S.C. markets
was tied to the state incentive
bill, which would have made
as much as $15 million avail-
able for air carriers.
“Th e clear understanding I
came away with was that if we
could pass the bill, it certainly
would go a long way toward ce-
menting their interest in coming
here,” Martin said in late April.
Charleston airport offi cials
and some county leaders said
they didn’t know why Southwest
had cast aside the incentives.
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South Carolina for some time,”
said Ashley Dillon, a spokeswom-
an for Southwest. “Both these
markets are attractive business
and leisure destinations for exist-
ing customers and entry points
for new customers.”
She said Southwest is “con-
tinuing along a path of adding
markets with a slightly smaller
footprint to attract new custom-
ers,” and in doing so, it has re-
mained profi table.
“We just decided it was time
to serve South Carolina,” she said,
noting that offi cials in the state
have been asking for service for
a while.
Now, county and state incen-
tive plans appear to be dead.
County Council Chairman
Teddie Pryor said the proposed
local incentive fund was not tar-
geted only at Southwest Airlines.
But before moving forward, he
wants to evaluate local air service
aft er the discount carrier begins
operating.
“If we need to bring this back,
we can bring it back,” Pryor said.
But, he added, if Southwest can
be profi table without incentives,
perhaps other airlines can, too.
Th e state measure is also prob-
ably dead, Rep. Dan Cooper, R-
Piedmont, said aft er Southwest’s
announcement.
“I don’t guess we need it any-
more, since they are coming
without it,” said Cooper, who is
chairman of the House Ways and
Means Committee and had sup-
ported the incentives bill.
Southwest could still get help
with startup costs from the two
airports.
David Jennings, chairman of
the Charleston County Aviation
Authority, said Southwest could
take advantage of up to $150,000
the authority makes available to
any new airline.
Greenville-Spartanburg In-
ternational Airport is off ering
startup assistance valued at $7
million over two years, accord-
ing to airport Executive Director
Dave Edwards.
Southwest’s styleSouthwest diff ers from Air-
Tran in that it does not operate on
a hub-and-spoke model; its fl ight
off erings are point-to-point.
AirTran said its reason for
leaving Charleston was a lack
of business travelers. But some
in the business community had
complained that the airline of-
fered only two daily fl ights, both
to its hub in Atlanta, and that
fl ight times were inconvenient for
business travel.
Dillon said she didn’t have a
time frame for when fl ight de-
tails for Charleston would be
announced. In any new city, she
said, Southwest usually starts
with modest off erings.
Southwest said its average
one-way airfare was $114.61 as of
Dec. 31.
Jennings said a group work-
ing to attract low-cost carriers to
replace AirTran identifi ed South-
west early on as its top choice. Th e
airline is the largest in the country,
based on domestic passengers car-
ried; it is profi table; and its people
are easy to work with, he said.
“Southwest does not have a
history of going into destinations
and pulling out,” he said.
Mike Fitts, James Hammond
and Scott Miller contributed to
this report.
So
sai
an
ma
an
ing
for
tin
ma
foo
ers
ma
to
no
hav
a w
tiv
“Southwest does not have a history of going into destinations and pulling out.”
David Jenningschairman, Charleston County Aviation Authority
44 | S.C. DELIVERS
AEROSPACE
The former Donaldson Air
Force Base in Greenville
soon will host regular
military fl ight operations for the
fi rst time in a half-century.
A new helicopter base for the
S.C. Army National Guard will
meld with a vibrant, diverse in-
dustrial and aviation center that
was purchased by Greenville city
and county governments in 1963
for $421,650.
Th at deal, through which lo-
cal leaders arranged for the fed-
eral government to take over the
2,300-acre closed air base, has
turned out for the region a little
like the Louisiana Purchase did
for the United States.
An economic impact study
involving 11 of the 30 companies
at what is now the S.C. Technol-
ogy and Aviation Center showed
$634.4 million annually in direct
economic output, supporting
1,377 jobs and an annual payroll
of $81.2 million. In the past year,
those companies invested $388
million in capital improvements.
When the ripple eff ect is
counted, SCTAC and the compa-
nies that have located there gen-
erated an additional $381 million
in economic activity and 2,358
more jobs, the survey showed.
Th e $1 billion direct and
indirect annual impact on Green-
ville County makes the aviation-
centered industrial park one of
the Upstate’s most important job
machines. With two fi xed-base
operators, the airport represents
a diverse asset to the Upstate, the
fl ying public and the military.
SCTAC already hosts the
second-largest federal contrac-
tor in the state, with Lockheed
Martin drawing in $956 million
last year to refi t and upgrade
combat, cargo and surveillance
aircraft for the military, accord-
ing to the government website
USASpending.gov.
Within the next three months,
the S.C. Army National Guard
will seek contracts to build a $44
million, 102,000-square-foot
hangar for a new Army avia-
tion support facility beside the
8,000-foot runway at the former
Donaldson Air Force Base. Add
to that $99 million to equip the
base and $3 million in annual
spending for operations, and the
new military facility will further
strengthen SCTAC’s role in the
military’s maintenance, refi tting
and operations services in the
Upstate.
Overall, defense and other
federal contracts brought $1.36
billion in spending into the
Fourth Congressional District
(Greenville, Spartanburg and
Union counties) in fi scal year
2009. And tenants at SCTAC,
including Lockheed Martin and
Stevens Aviation, constituted a
major portion of those expendi-
tures.
Th e Army National Guard
will base 14 of its helicopters,
about 70 full-time personnel and
an additional 145 part-time Na-
tional Guard soldiers at the new
30-acre aviation center.
Col. Pete Brooks, spokes-
man for the S.C. Army National
Guard, said the aviation center
will give the National Guard an
alternative location for its air-
craft in the event of hurricanes.
Th e current base of operations is
just outside Columbia, and “we
sometimes get 100 mph winds in
Columbia,” Brooks said.
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S.C. DELIVERS | 45
In 2000, about 120 helicop-
ters from various locations were
evacuated to SCTAC to get them
out of the path of an approaching
tropical storm.
SCTAC already has a U.S.
Army Reserve Center and a U.S.
Naval and Marine Reserve Cen-
ter that will be neighbors to the
new aviation center.
But the Army aviation center
is just the latest installment for
an economic engine of growth
that has risen from the former
Air Force base that Greenville
city and county purchased for
$421,650 in 1963.
“Just the property alone today
is worth hundreds of millions of
dollars,” said Peter Cevallos, the
airport operations director. SC-
TAC has sold and will continue
to sell industrial sites to private
companies such as 3M and Mi-
chelin. But the 1,400-acre core of
the airport is maintained intact
under the ownership of SCTAC.
Cevallos said SCTAC main-
tains the 8,000-foot runway and
control tower as a federally cer-
tifi ed public airport that is host
to two fi xed-base operators for
small aircraft , access to the Lock-
heed Martin facility for large
military aircraft , and an auxiliary
landing fi eld for military aircraft .
SCTAC has about 45,000
fl ight operations (landings or
takeoff s) a year, compared with
about 65,000 per year at the
Greenville-Spartanburg airport.
About 1,700 jobs at SCTAC are
directly related to airport opera-
tions, according to an economic
impact report by Jackson Mar-
keting Group.
A second, 5,000-foot runway
built by the Air Force has not
been used for fl ight operations
for many years. Jody Bryson,
president and CEO of SCTAC,
said the center’s governing board
has cleared the way to study a
proposal to turn that unused run-
way into several hundred acres of
additional industrial sites. Th e
single, 8,000-foot active runway
is more than adequate to meet
the center’s landing and takeoff
requirements.
SCTAC offi cials want to get
out the message that “there’s a
lot going on here, despite the
perception among some people
that it’s just an old military base,”
Cevallos said.
At least one company on the
industrial park, Cytec Industries
Inc., is part of the supply chain for
the new Boeing 787 Dreamliner.
Cytec makes the carbon fi ber at
SCTAC that is used to build the
fi rst large airliner body made of
advanced composite materials
instead of metal.
SCTAC faces many challenges
in preserving its core function as
“a public airport with an indus-
trial fl avor,” Cevallos said, not
the least of which is the trickle
of federal funds to maintain and
upgrade its runway, taxiways and
other vital airport facilities.
“Our challenge is to illustrate
how viable and diverse an econo-
my we have here,” he said. •
46 | S.C. DELIVERS
FEATURE
Cooking up biodiesel in the MidlandsBy Mike Fitts, Staff Writer
It’s a fuel processing facility
right in downtown Winns-
boro, but the neighbors don’t
hear or smell it.
It doesn’t add smoke to the
skies like an oil refi nery or give
off the scent of a fast food restau-
rant, according to the company
president.
“No one even knows we’re
there,” said Joe Renwick, presi-
dent of Midlands Biofuels.
Midlands, built in a converted
tire shop, is South Carolina’s only
certifi ed biodiesel fuel produc-
tion facility. “Bio-Joe” Renwick’s
startup company is going around
the state collecting used cooking
oils. He’s converting them into
a new version of diesel fuel, one
that can be blended to improve
the performance of traditional
diesel or used pure to power a
modifi ed vehicle.
Th e business has grown so
quickly, Renwick said, that his
current problem is that the com-
pany is not harvesting enough
used cooking oil. Th e company
has set up hundreds of collec-
tion barrels, at restaurants from
Charleston to Laurens, and is
using partnerships with school
districts to fi nd more oil.
Th e company collects the
cooking oil about every month
and brings it to Winnsboro to
process.
In the processing, one type of
alcohol, glycerol, is removed and
another one, methanol, is added.
Methanol oft en gets used as fuel
in race cars, and it runs cleanly
and powerfully.
Th at gives biodiesel a huge
advantage on emissions, Renwick
said: Th e fuel burns 80% more
cleanly than traditional diesel.
Even adding biodiesel to tra-
ditional diesel has major benefi ts,
he said. For example, the diesel
fuel currently at the pumps is a
cleaner-burning formula, a result
of tighter emissions regulations
enacted in 2006. But it doesn’t
burn as smoothly in engines,
Renwick said, because the sulfur
that was reduced aided in that
process.
Adding in just 2% biodiesel
brings smoothness and lubri-
cation to diesel engines. Th at’s
why the Blythewood Oil Co.
buys about 50% of Midlands
Biofuels’ production, Renwick
said.
“Biodiesel provides extremely
good lubrication,” he said.
And the extracted glycerol
doesn’t go to waste, either, Ren-
wick said: It is being burned as a
boiler fuel.
Renwick didn’t set out from
Th e Citadel to get into the biodie-
sel business. A friend of his from
college showed him the process,
and he was intrigued.
Th e idea had added appeal
because diesel fuel was knocking
on $5 per gallon at the time, he
said. Almost before he knew it,
and with the help of friends and
“The doors are open, we’ve got oil coming in one end and biodiesel going out the other.”
Joe Renwickpresident, Midlands Biofuels
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family, he found himself back in
his hometown setting up a biod-
iesel processing plant.
He also got help from eight
interns from the University of
South Carolina. Last summer, the
group worked with Renwick and
his friends to turn a pile of equip-
ment into a functioning plant.
Th e biodiesel project has got-
ten a lot of helping hands along
the way, he said. Other biodiesel
companies around the area have
helped out, as has the S.C. De-
partment of Agriculture, which
did testing that helped get the
fuel certifi ed for use in cars and
trucks. Only three plants in the
Southeast are so certifi ed.
Several other organizations,
including USC’s incubator pro-
gram and SC Launch, a program
of the S.C. Research Authority,
helped get the company up and
running.
What hasn’t been helping
is the price of diesel fuel. It’s
dropped by half since Renwick’s
venture was launched, though it
is creeping back up again, Ren-
wick said.
“It’s been an emotional roller
coaster ride,” he said.
Th e government also has not
been doing much to help. A fed-
eral tax credit of $1 per gallon for
biodiesel lapsed in January.
As it stands, the cost of biod-
iesel is about the same as it is for
conventional fuel, or a little less
expensive, thanks to donations
of vegetable oil. Restaurants of-
ten pay someone to haul it off , so
they have been glad to give it to
Midlands Biofuels for free, Ren-
wick said.
If a biodiesel company has
to buy the vegetable oil it works
with, the numbers can quickly
become cost-prohibitive.
So far, Midlands Biofuels
is not generating much profi t,
Renwick said. But it’s chugging
along, thanks both to the help it
has received and to a particular
segment of people who believe
in the use of biodiesel as a clean
alternative to fossil fuels.
But in a business that has
proved tough for some, Renwick
said he is just glad to be up and
running.
“Th e doors are open, we’ve
got oil coming in one end and
biodiesel going out the other,” he
said. •
(Photo/Provided)
48 SC BIZ | www.scbizmag.com
{ }Bird’s-eye view A brown pelican perched above the Folly River. The
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a wingspan between 6 1/2 feet and 7 1/2 feet, are the
smallest members of the pelican species worldwide.
(Photo/Ryan Wilcox)
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