Feb. 22, 2013 Upstate Business Journal

BUSINESSJ O U R N A L

FEBRUARY 22, 2013

COMPLIMENTARY

UPSTATE

Tracking the Hackers

A NEW STATEWIDE BANK SECURITY NETWORK AIMS TO STEM CYBERATTACK

DAMAGE AND PREVENT FRAUDPAGE 20

US COMMERCE OFFICIAL

WANTS TO MAKE EXAMPLE

OF BMWPAGE 10

SEMPRA PICKS GREENVILLE FOR

REGIONAL HQPAGE 16

COMMERCIAL REAL ESTATE CONTINUES

UPWARD TRENDPAGE 28

UBJ Table of Contents

2 Upstate BUsiness JoUrnal February 22, 2013

Copyright @2013 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal (Vol. 2, No. 7) is published weekly by Community Journals LLC. 148 River Street, Suite 120, Greenville, South Carolina, 29601. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $65. Visit www.UpstateBusinessJournal.com. Postmaster: Send address changes to Upstate Business, 148 River St., Ste 120, Greenville, SC 29601. Printed in the USA.

PRESIDENT/PublIShER Mark B. Johnston [email protected]

SENIoR VICE PRESIDENT Alan P. Martin [email protected]

ubJ ASSoCIATE PublIShER Ryan L. Johnston [email protected]

EXECuTIVE EDIToR Susan Clary [email protected]

MANAGING EDIToR Jerry [email protected]

STAff wRITERS Cindy Landrum, April A. Morris, Charles Sowell

SENIoR buSINESS wRITER Dick Hughes

CoNTRIbuTING wRITERSJenny Munro, Jennifer Oladipo, Jeanne Putnam, Leigh Savage

EDIToRIAl INTERNS Shelby Livingston, Casey Dargan

ART & PRoDuCTIoNART DIRECToR Richie SwannPhoToGRAPhER Greg BecknerCoNTRIbuTING PhoTo EDIToR Gerry PatePRoDuCTIoN Holly Hardin

MARkETING & ADVERTISINGMARkETING REPRESENTATIVES Lori Burney, Mary Beth Culbertson, Kristi Jennings, Donna Johnston, Pam PutmanMARkETING Katherine ElrodMARkETING & EVENTS Kate BannerbIllING Shannon RochesterClIENT SERVICES MANAGERS Anita Harley, Jane Rogers ADVERTISING DESIGN Kristy Adair, Michael Allen, Whitney Fincannon, Caroline Reinhardt

IDEAS, fEEDbACk, [email protected]

how To REACh uS148 River Street., Suite 120Greenville, SC 29601864-679-1200

10ABOVE: Construction continues on the BMW manufacturing plant expansion.

FeatUres

10 US Commerce Official Lauds BMW as Industry Model

16 Energy Giant Plans Southeastern HQ in Upstate

Cover Story18 SC Bankers Work to Track Fraud

Entrepreneur20 Physician, Market Thyself

colUmns

Digital Maven6 Keeping Remote Workers Engaged and Productive

Statehouse Report7 Is It Time for a New Speaker of the House?

working well8 Workplace Wellness: Trend or Necessity?

Guest Column9 No Such Things as Small Businesses

departments

4 Worth Repeating4 TBA21 The Takeaway22 The Fine Print23 New to the Street24 Planner26 On the Move27 Social28 Square Feet31 Snapshot

Photo by Greg Beckner

UBJ letter to the Editor

GODSHALLProfessional Recruiting

StaffingConsulting

Dear Editor:

I want to complain about the “article,” really a polemical editorial, by Andy Brack in the Feb. 8 issue (“Statehouse Report: When Church Politics Rises to the Level of Pure Pettiness”). This was a completely one-sided attack, not an investigative journalistic attempt to get at all the issues. I do not have a posi-tion on the matter of the churches pulling out of the Episcopal Church in the United States, but I do know that there is much more involved than “politics,” getting “hot and bothered” and going “ballistic” or “greed.” Mr. Brack may not understand the theological issues involved, in which case he should investigate before reporting.

Thank you,

Mac Davisvia facebook

Join the conversation atfacebook.com/TheupstatebusinessJournal

UBJ worth Repeating | TbA

It’s a matter of soleMost of us participate in a fast paced business environment in which we hit the pavement running. Sure, there are a number of shoes found in the marketplace in an array of styles and price points. But by the time we reach home, are we happy with the choice of shoes we’ve been running from meeting-to-meeting in? Luckily, as smart and informed consumers, we don’t have to compromise comfort or � t for style. But we do want to believe in the long-term investment that we make in a favorite, � nely cra� ed shoe!

What are the quality details of a good shoe? Certainly the � rst thing to look for is the type of leather from which the shoe is made. Quality calfskin without blemishes and imperfection is desired. � e calfskin should be hand rubbed and polished without a glossy, lacquered � nish. Lacquer hides imperfections in the leather and gives the shoe an unnatural shine.

Another quality detail is welted construction. A genuine Goodyear welt is top quality leather welting which is securely stitched through the upper to the insole rib. A quality leather sole is sewn onto the welt; there is no glue involved. � is will ensure long life and comfort and makes resoling a shoe easy.

However, the most important thing to remember is to maintain your shoes by brushing them daily, polishing them regularly, using cedar shoe trees between wearing, rotating wear between your shoes and replacing the soles and heels when worn.

It has been said by many discerning managers and executives, “You can judge a man’s character by looking at his shoes.” Make sure you make a good impression.

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It’s a matter of sole

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Although the website says The brown Street Club is temporarily closed for remodeling, word is the jazz and fine dining restaurant just off Main Street is closing for good. The property, 115 N. brown St., is listed on showcase.com, an online commercial real estate listing site, and staff and musical regulars were contacted this

“It’s just Southern hospitality, that’s the way I like to think of it. It’s not like

this everywhere.” Mike Gallagher, on what swayed his decision to locate the Southeastern

offices of Sempra U.S. Gas & Power in downtown Greenville

“If you’re so scared that you never try, your dream will never come true.”

Elizabeth Yarbrough, entrepreneur and founder of The Doctor’s Bag

“Without question, this will be a multi-year event.”

Trish Springfield, retail banking executive for Palmetto Bank, on the long-term effects of last year’s cyberattack on the state Department of Revenue

“It’s way cool out there.” Rebecca blank, U.S. deputy secretary of commerce,

urging the curious to tour the BMW plant she had just visited

tBaweek and told they were let go…

A Tex-Mex restaurant, Gringo’s, is said to be eyeing 11 Camperdown way…

A major sports festival is being planned for October this year that will be modeled after Asheville’s Mountain Sports Festival…

UBJ

February 22, 2013 Upstate BUsiness JoUrnal 5

housing sales shot up in spartan-burg and Greenville in January over January a year ago, itself an incipient month of a beginning winter recovery in the markets.

In Spartanburg, sales of residential property rose 45.7 percent to 200 homes. In Greater Greenville, which includes Laurens and a portion of Pick-ens, sales were up 17.6 percent to 502.

The housing market in the other areas of the Upstate also improved or, in the case of the Western counties, basically was flat with a negligible slight decrease.

“For the first time since 2006, the numbers are largely positive,” said the South Carolina Realtors’ monthly indicator from the multiple listing services. Closed sales were up 17.1 percent and pending sales were up 16.6 percent overall.

Prices also continue to edge up-ward, although that trend is uneven place by place.

The median price was up 1.4 percent to $146,580 in Greenville but down 6.3 percent in Spartanburg to $105,000. The state median price average was $150,000.

“The price range with the largest gain in sales was the $200,001 to $300,000 range, where they increased 21.1 percent,” SCR said. Houses priced $300,000 and above took the longest to sell; those below $100,000 are the fastest sellers.

Average days on the market, a key indicator of activity pace, was at 98 lowest in the state aside from 89 days in the Charleston Trident market. It remained relatively high in Spartan-burg at 161 days.

The inventory of housing on the market declined to 9.3 months for single-family homes and 9.3 months for condos, making it very much a buyers market statewide. Market conditions vary greatly from place to place, however. Inventory levels in Greenville are nearing a buyer-seller balance of around six or seven months.

Contact Dick Hughes at [email protected].

Upstate Housing sales climb in Januaryby Dick hughessenior business writer

By the Numbers

RESIDENTIAl SAlES

MEDIAN PRICE

AVERAGE DAYS oN ThE MARkET

STATEwIDE

Source: South Carolina Realtors

17.6%to

502

17.1%

98 161

1.4%to

$146,580

45.7%to

200

16.6%

6.3%to

$105,000

Greater Greenville

Closed sales

Spartanburg

Pending sales

Festival provides ‘Food for thought’

the agenda for the three-day Food for Thought festival, scheduled for April 23-25 in Greenville, has been designed to change “how at-tendees view their work, the world and even themselves,” according to event organizers.

Executives from Southwest Air-lines, Gap Inc. and Verizon Wireless will discuss “what’s next” in business and industry. Entrepreneurs Jes-sica Matthews and Julia Silverman, founders of startup Uncharted Play, will demonstrate their soccer ball that harnesses energy during play for later use as a portable generator. And Yael Cohen, founder of the “make-no-apologies” charity F*ck Cancer, will lead “an intentionally discomforting conversation.”

after last week’s sudden resignation of Abraham Turner, John Finan is getting his old job back as the head of the S.C. Department of Employment and Workforce – on an interim basis, at least.

In a handwritten letter, Turner told Gov. Nikki Haley he would resign as executive director of the state agency ef-fective March 1, citing personal reasons.

Finan led the agency from April 2010 to September 2011. Turner, a retired Army major general and Fort Jackson commander, took over SCDEW from Finan.

“I appreciate General Turner’s – a lifelong public servant – devotion to our state and nation, and wish him nothing but the best going forward,”

Finan to lead scdeW after turner’s exit

said Haley.Turner’s resignation comes amid

scrutiny by legislators for eliminating one-on-one help for job seekers in 17 unemployment centers in rural coun-ties, while giving nearly $400,000 in raises to 69 SCDEW employees.

“Gov. Haley has allowed her agency, SCDEW, to become an absolute em-barrassment,” House Minority Leader Todd Rutherford, D-Richland, said in a statement.

This will be Finan’s second interim appointment to the post. Former Gov. Mark Sanford appointed Finan, a retired Air Force brigadier general, to lead SCDEW in 2010 after the Leg-islature overhauled the agency and made it part of the governor’s cabinet.

“Food For Thought is unlike any conference you’ve ever attended,” said Joe Erwin , president of market-ing firm Erwin Penland, presenters of the annual event. “It’s an immersive, extremely engaging experience involving fewer than 100 people, and often the conversations at dinner or breakfast are just as illuminating as the featured speakers.”

The agenda will also include an afternoon at the BMW Performance Center, as well as food from award-winning chefs and a performance by the band Vintage Trouble.

Registration includes three days of programming, meals, accommoda-tions at The Westin Poinsett Green-ville, and transportation to and from all conference events. Registrations start at $1,375.

To register or to learn more about Food For Thought, visit FoodFor ThoughtConference.com.

UBJ Digital Maven


the evidence is all around us: A growing percentage of the work force is working remotely at least some of the time, those that aren’t want to be, and the yeoman’s share of knowledge-worker jobs are able to be done outside of the office.

In 2011, a research group focus-ing on telecommuting/telework (a technology misnomer in the days of mobile devices) reported that 50 million employees who want to work from home held jobs that could be done from home, but only 3.1 mil-lion were actually able to work from home all or part of the time. (Read it: goo.gl/vzP5c)

Although a lot more people want to be teleworking, there are many who actually are. A survey in 2012 by Wrike, a software company that makes product management software for distributed and remote teams, showed that 83 percent of workers say they work remotely at least some

For many businesses, it’s a manage-ment issue. How do we make sure that the remote workers are really working? That’s always a challenge, isn’t it? I mean, even with workers who are right down the hall.

As a senior manager at the head-quarters of a Fortune 500 company, I experienced those challenges first-hand when I led a team with staff in different parts of the country and time zones. Here are some ways to make telework work for both you and the remote employees. Some involve technology; some involve humans.

1. Make smarter decisions. Not every employee is a good candidate. If you have an existing employee who wants to telecommute, you are in a good position to know a lot more about him and determine if that’s the right situation. Is he self-motivated? Does he get work done on time now? Does he require a lower or higher level of

Keeping remote Workers engaged and productive

Laura Haight is the president of Portfolio (portfoliosc.com), a communications company based in Greenville that focuses on harnessing the power of today’s tech-nology to reach new customers, turn customers into loyal clients and loyal clients into advocates. She is a former IT executive, journalist and newspaper editor.

conferencing (Skype, OoVoo, Google Hangouts – see earlier Maven missive at goo.gl/enmrz). You can tell a lot by seeing people when you talk to them.

Individuals become a team when they work together, get to know each other and become invested in each other’s success. Tools like Basecamp, Trello, WebEx, Go To Meeting, do.com or 5pmweb are more col-laborative ways of getting work done than the insular silos of working independently on documents and spreadsheets and then merging changes after the fact.

3. How are you doing? Take the time to ask your remote staff if they are doing OK; do they have the tools they need to be successful? Often they will know – perhaps better than you – if there’s something out there they would like to try. If possible, try to ac-commodate trials, which can often be free, of new software; you may learn something and your remote staff will feel they have been heard.

4. Be cognizant of how other em-ployees interact with the remote staff. It is really hard to feel like part of the team when you work remotely. Make sure that staff meetings are video conferences and that everyone can see everyone. That may mean that employees spend at least part of the staff meeting in front of their laptops or mobiles so they can be seen as well as heard. Find reasons to bring your team together IRL (in real life!), even if it means budgeting a little extra travel money. The investment you make in team-building can pay huge dividends in productivity.

The bottom line: You have a huge pool of potential employees. Technol-ogy coupled with good management practices and leadership can help you branch out and take advantage of it.

by lAuRA hAIGhT

how MuCh ARE wE READY To “PAY” foR ThE oPPoRTuNITY

To woRk REMoTElY?

78%WOUlD FORGO FRee MeAlS

54%WOUlD FORGO eMPlOyeR-

PAiD cellPhOne PlAn

31%WOUlD AccePT ReDUcTiOn

in PAiD vAcATiOn

25%WOUlD AccePT

ReDUcTiOn in SAlARy

Source: Wrike “Working habits” survey

ask your remote staff if they have the tools they need to be successful.

Often they will know – perhaps better than you – if there’s something

out there they would like to try.

of the time. For many, that means checking email or doing after-hours work. (Check out the infographic: goo.gl/AVGtx).

Technology is certainly doing its part with secure virtual private net-working, cloud-based services and server hosting that makes company data available anywhere, virtualized phone systems, accessible video con-ferencing and free conference calling and now the explosion of mobile technology. So what’s the hangup?

supervision? What is his motivation for working at home? In some cases, this is a huge question. Many companies have telework agreements (see samples here: goo.gl/NHtS9) that specify that the employee must have a child care arrangement outside the home. Often parents in two-worker households want to work at home to reduce child care costs. This can be a problem, as a parent can hardly focus on his work and his child at the same time.

On the other hand, workers who

drive significant distances may need to cut their transportation costs. Allow-ing them to work at home all or part of the time can make the difference between keeping them or having them jump to another firm closer to home.

2. Use technology to keep remote workers engaged. The biggest chal-lenge you may have is not connecting them technically, but connecting them emotionally – especially for employees who do not live near you and never get to the office.

Schedule time to talk every day with a remote employee using video

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there’s been a quiet but grow-ing buzz in recent weeks among some House Republicans about whether House Speaker Bobby Harrell would be able to keep his leadership role down the road after months of bad press.

But on Valentine’s Day, a political bombshell burst that could break hearts and create opportunities for modern-day Machiavellis. It may be remembered by South Carolina po-litical observers as the St. Valentine’s Day assassination.

On Thursday, the conservative S.C. Policy Council filed a major ethics complaint against Harrell that will in-tensify the recent buzz about whether he can remain an effective speaker. Unlike just a few days ago, now there may be enough blood in the water to attract some sharks who might want to be speaker.

Supporters see Harrell as a good, solid man – a mostly moderate Chamber of Commerce Republican who leads with confidence, authority and affable pizzazz. Former chair-man of the House Ways and Means Committee, Harrell is one of the few leaders in the state who understands the big picture and how the pieces of state government fit together.

But detractors brand him as a bully who uses his power in subtle ways to keep a firm grip on a sometimes un-stable House Republican Caucus. These critics complain about how money from a leadership political action committee is a tool to keep people in line.

Harrell says the allegations against him are “a baseless attack that is driven by a personal and political vendetta” by Ashley Landess, the Policy Council president whom Harrell did not reappoint to the state Lottery Commission in 2009.

Harrell’s troubles started last year when the Post and Courier reported that he had reimbursed himself about $326,000 from campaign funds for using a single-engine propeller plane and other expenses for political trips over four years. Harrell, who said repeatedly he was in full compliance with state ethics laws, didn’t itemize expenses, but eventually let an Asso-ciated Press reporter review records. He returned $23,000 to the campaign account for spending for which he reportedly lost receipts.

Coincidentally, $23,000 was the amount that Harrell’s leadership PAC paid a Charleston public relations firm in October 2011 for an “election expense” related to the firm’s work to urge completion of Interstate 526 in Charleston. Critics wondered how the money would be considered proper, since the issue over the interstate completion wasn’t going to voters.

Last Thursday, the Policy Council sent a five-point ethics complaint to S.C. Attorney General Alan Wilson – not the House Ethics Commis-sion where it normally would go – because it complained that Harrell being speaker might compromise the process. Wilson turned over the com-plaint to SLED to investigate. While

four points of the complaint focused on the flights and drug repackaging company, a new allegation questioned whether Harrell broke state law in appointing his brother to the state’s Judicial Merit Selection Commission.

Regardless of what happens, Har-rell is wounded. As one senior House lawmaker noted earlier this week, he’s still speaker and will remain speaker for the next two years, un-less something comes of the ethics allegations against him. But after that, who knows? He likely will face a primary battle in 2014 and if he

survives, as many expect, would have a Democratic opponent who might be tougher than usual.

And if he returns to the House, he then would have to get re-elected as speaker. An alliance of Democrats and Republicans could topple him, although Democrats often aren’t orga-nized enough to vote with one voice.

In the interim, you can bet your bottom dollar that there are some House GOP leaders waiting in the wings to see what will happen. Men-tioned among the possibilities to be the next House speaker are several Republicans: Speaker Pro Tem Jay Lucas of Hartsville, Daniel Island’s Jim Merrill, Kenny Bingham of Cayce and Bruce Bannister of Greenville, to name a few.

Anything can happen in the next two years. For now, Bobby Harrell is feeling the dark side of politics.

is it time for a new speaker of the House?

Longtime South Carolina political observer Andy Brack provides weekly commentary. You can reach him directly at [email protected].

by ANDY bRACk

S.C. House Speaker Bobby Harrell

UBJ working well


the cost of health care is a major issue for individuals and employers. Unfortunately, for an em-ployer, medical and pharmacy costs are just the tip of the iceberg.

The overall health and wellness of your employees directly impacts the productivity of your organization, whether it’s the cost of an employee’s leave of absence or disability claims, or the correlation the loss of an em-ployee has on the costs for replace-ment training, temps or overtime. They are all underlying concerns that can bring down any size organization.

A report conducted by the Center for Health Research at Healthways, published in the Population Health Management journal in October 2012, revealed that employee well-being is a strong predictor of a range of performance outcomes, including short-term disability, absenteeism,

retention and job performance. These metrics were found to improve as the health of employees improved. The study discovered that employees who have a low well-being are:

• Twice as likely as those with high well-being to have high health care claims cost

• Seven times more likely to miss work

• four times more likely to use short-term disability days and visit the ER

• Seven times more likely to have low job performance.

Some may consider workplace wellness practices to be a new trend, but actually companies have been implementing these types of programs in their workplaces for years to help

mitigate costs. Many of the top 100 companies adopted wellness programs decades ago; only today has it truly become a necessity. Research further indicates that 88 percent of respon-dents in a national survey (performed in 2012 by Optum Health) consider wellness solutions an important part of their benefits mix. The same survey also reported that there has been no significant change in the perceived importance of wellness solutions in the past three years.

In 2011, 64 percent of respondents in the same survey indicated that their organization is placing the same amount of importance today on em-ployees taking steps to be healthy as it has in the past. See more statistics from this study at goo.gl/f0OHr.

If you have recently heard of work-place wellness and are interested in starting your own initiative, you are doing more than just jumping on a bandwagon. Research performed by the American Institute for Preven-tive Medicine shows employers who implement wellness programs are seeing a return on their investment upwards of $5 for every $1 invested.

It is time to start thinking about helping your employees become aware of their personal health risks. Unfortunately, if you wait for their sense of personal responsibility to kick in, it may be too late for them and for your organization. Assistance and opportunities are abundant for educating your employees. Educa-tional communications including fliers, emails and talks are available. Providing health risk assessments and screenings are more prevalent than ever.

In case you are still not convinced,

by AbbY RuSSEll

Abby Russell is a workplace wellness consultant for Rosenfeld Einstein, a Greenville-based insurance agency, brokerage and consulting firm.

Workplace Wellness: trend or necessity?

yes, a long-term plan only

yes, an annual plan only

Both long-term and annual plan

no plan at all

not sure/Don’t know

15%13%

23%23%

15%

37%

12%

20112010

18%

30%

14%

QuESTIoN:DoES YouR oRGANIzATIoN hAVE A foRMAl, wRITTEN

STRATEGIC PlAN foR EMPloYEE wEllNESS?

Source: “Wellness in the Workplace 2012: An Optum Research Update”

it is worth mentioning that employees are expressing their appreciation for their employers’ wellness programs. In fact, there are employees out there looking to work for an employer with a robust wellness program – the cave-at here is that the most honest reason might be for a place of employment that values work-life balance. Take heed to this message, though: An employer who wants to improve an employee’s well-being would be best served to respect work-life balance.

OptumHealth reported that 73 percent of the respondents view good health and wellness programs as an important benefit that would encour-age them to stay longer with an em-ployer. Six in 10 employees surveyed who were successful in losing weight or quitting tobacco reported that their workplace wellness program was very helpful. You may view more of this information in a webinar produced by OptumHealth called “The Positive Role of Wellness Programs in the Workplace,” available at goo.gl/r5pCl.

Trendy or not, you may want to take a second look at implementing wellness into your strategic plan.

livewell Greenville At work is dedicated to providing employers with resources to create and sustain a culture of health. The group has developed several tools and programs designed to promote the idea of workplace wellness among Greenville businesses, and to help businesses create comprehensive wellness initiatives.

fIND ouT MoRE AT: livewellgreenville.org/

community-action/at-work.

UBJ Guest Column

what does it mean to a run a small business?

“It depends” and “compared to what” – that is what any economist will tell you is the answer to every question. Which is the better car, a Ferrari or a Rolls Royce? Which is the better place to live, Manhattan or rural Montana? Who will win next November, USC or Clemson?

It makes sense to compare compa-nies based on things we can measure – employees, sales, revenue and mar-ket share. But the things we can count don’t necessarily capture the critical qualities. Indeed, the things we can count often stand in for intangibles,

but those measurements can mislead us, misalign priorities and misrepre-sent the situation.

The U.S. Small Business Adminis-tration defines a small business as one that is independently owned and op-erated, is organized for profit, and is not dominant in its field. To me, that doesn’t capture what a small business really is; I don’t believe any business is small. I prefer to use the terms “entrepreneur” and “entrepreneurial owned business.”

A business may employ fewer than 50 people, but it is almost impossible to say whether that is really big or small. What value do you provide your customers? What do you contribute to your community? How responsive are you to your employees? How hard do you work? And you’re doing all of that with how many employees?! There is nothing “small” about that. That is being an entrepreneur.

You do not run a “small” – unim-portant, insignificant, forgettable

– business. You run a business.The impact of “small” businesses is

invaluable to the economy. Accord-ing to the SBA, “Small businesses continue to be incubators for innova-tion and employment growth during the current recovery.” Given the fierce global competition we face in the 21st century and beyond, this is our hope for the future.

“The net jobs gains of small busi-nesses matched those of larger busi-nesses during the last half of 2010,” the SBA states. Take businesses like that out of the equation, and there would be no economic recovery at all.

Segments and demographics are for economists and marketers. I know it can be valuable information, but the label “small business” (or “midsize,” for that matter) is really a behind-the-scenes technical thing, not a “this is who I am” thing. It is a label, a measurement – it is not a defi-nition and certainly not a judgment.

It’s easy to fall into the trap of what

no such things as small Businesses

by RAlPh GlEAToN

we cannot do because of our size. “If we were bigger we could buy or in-vest more?” Yet, because of your size maybe you are able to still be engaged in the core of your business, and not just the management of it.

Maybe you can respond quickly to an opportunity or a customer’s needs. When was the last time anybody referred to a conglomerate as “agile”? Maybe you can give your employees the attention they need and deserve to be happy as your employees (rather than somebody else’s). Maybe you can focus on what is important to you rather than what some New York analyst says.

Because words matter, and some-times they send messages that don’t reflect important realities. Be an entre-preneur, not a small business owner.

Ralph Gleaton is the managing partner of Gleaton Wyatt Hewitt PA. The firm has been providing immigration services to clients in South Carolina and beyond since 1999. Learn more at gwhlawfirm.com.

UBJ

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the united states has a moment of opportunity to make a big play in manufacturing – currently it enjoys low energy costs, a stable supply of oil and gas, high worker productivity and an American public that is buying again.

That makes the nation attractive to domestic manufacturers and to foreign manufacturers who want to build in areas where they can make good products at an affordable cost,

said Rebecca Blank, U.S. deputy secretary of commerce. But to attract investment, the United States also has to be a leader in innovation.

BMW Manufacturing Co. and the Spartanburg-Greenville region is a model of what manufacturing in the United States should be, she said, ad-dressing a group of employees, local leaders and media after a tour of the plant. Urging anyone who had not

toured BMW to do so, she said, “It’s way cool out there.”

However, BMW plans to halt tours in April for about a year as the plant works on the launch of the updated X5 and the new BMX X4, which will be launched in 2014.

The plant, begun in 1992, has in-vested $5.8 billion since through the end of 2012. When current construc-tion – a new 300,000-square-foot

Us commerce official lauds BmW as industry model

by Jenny Munro | contributor

body shop, a 170,000-square-foot expansion of the existing body shop, a new 650,000-square-foot paint shop and 400,000 square feet of logistics space in the X3 assembly shop – is completed, the complex will cover 5.6 million square feet. In addition to 7,000 employees onsite, BMW also supports about 1,000 supplier jobs.

BMW has had “almost a continu-ous expansion since 1992,” when it

Photos by Greg Beckner

U.S. Deputy Secretary of Commerce Rebecca Blank, center in green, finishes up her tour of the BMW Manufacturing Co. in Greer.

UBJ

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Gwinna [email protected]

Kay [email protected]

The Upstate plant models the change of manufacturing from 20th-century vertically integrated companies, where everything is accomplished in-house, to 21st-century companies that source globally, Blank said.

began initial construction, said Ben Haskew, Greenville Chamber presi-dent. The plant, which exports about 70 percent of its production, pushed South Carolina over Michigan as the top automotive exporter.

The Upstate plant models the change of manufacturing from 20th-century vertically integrated companies, where everything is accomplished in-house, to 21st-century companies that source globally, Blank said. Local leaders an-ticipated the change and acted to meet the new challenges.

“It is clear that those actions paid off,” Blank said.

And the Obama administration wants to see other such models around the country, she said.

“We need to make sure our Ameri-can communities have the resources they need for infrastructure,” such as highways and ports, she said.

Clemson University’s International Center for Automotive Research is an example of the need for local research institutions to partner with companies like BMW, Michelin North America and others. And workers must be trained for the skills needed; such training is being done at Greenville Technical College and Spartanburg Community College, among other educators.

To accomplish the goal of ensuring that U.S. manufacturing is a world leader, the country must reform the tax code and “make it more competitive,” she said. That does not mean across-the-board cuts through sequestration. It means smart cutting and smart additions to revenue.

Helping manufacturing grow also means using federal dollars when needed to ensure that people and as-sets are aligned to help a community

General Electric. We need to look at our strengths,” he said.

“There is an exploding number of new technologies out there,” Blank said.

Manufacturing creates well-paid and high-skilled jobs, making it an impor-tant driver of the economy. Manufac-turing is also tied to innovation and the United States needs to retain it to remain an economic powerhouse.

She cited President Obama, who said in Asheville, N.C., the federal government wants to work with local and state government and the private sector to strengthen manufacturing and take advantage of its recent status as a driver of the economy. But, she said, people will still have to work hard and companies will still have to make good products.

Contact Jenny Munro at [email protected].

successfully attract manufacturing.A team of federal agencies has

been created to fund more than $113 million in competitive grants for communities “that need a little help to build up assets,” Blank said. Also, the federal government plans to create a series of regional hubs to specialize in various manufacturing sectors. One devoted to 3-D printing has been developed at Youngstown, Ohio. Fifteen are planned and three are to be launched this year.

Bobby Hitt, S.C. secretary of com-merce, said the state will compete for those grants and should be in good shape for a regional hub in areas such as advanced materials and advanced manufacturing, both of which are strengths in the state.

“We have keystone manufactur-ers here – BMW, Michelin, Boeing,

Construction continues on the BMW manufacturing plant expansion.

BMW employees work on doors on the assembly line.

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bad behavior is bad for business.Of the thousands of workers

surveyed by two college professors for a study published in the January-February edition of the Harvard Business Review, half said they were treated rudely at work at least once a week. That’s twice the percentage of workers who reported being treated rudely on the job in 1998.

“Incivility is common everywhere,” said Robin Kowalski, professor of psychology at Clemson University who specializes in cyber bullying and aversive interpersonal behavior such as teasing and complaining. “The workplace is just another setting for incivility.”

Businesses are paying a big price for that incivility, according to new research by professors Christine Porath of Georgetown University’s McDonough School of Business and Christine Pearson of Thunderbird School of Global Management.

“The costs chip away at the bottom line. Nearly everybody who experi-ences workplace incivility responds in a negative way, in some cases

ees about what behaviors they find acceptable and what behaviors they find unacceptable, she said. It is also critical for companies to identify the rate of incivility, she said.

“They may find that it’s not a problem company wide, but could be isolated in one department,” Kowal-ski said. “Then they can focus on that one department.”

And what happens if the problem is found to be one employee or one manager?

“There’s almost always somebody above the person who is being un-civil,” she said.

Sometimes, she said, people don’t realize how they are coming across to others. That’s especially true with elec-tronic communication, Kowalski said.

“The off-record markers, such as a wink, smile or expression, are miss-ing in email. You can’t read the intent of it,” she said. “And because so much of our interaction at work is online, incivility has increased. I think if you ask people about incivility at work, you’ll find a significant percentage is through electronic communication.”

Civility should also be a part of the hiring process, Kowalski and the researchers said. “Avoid bringing incivility into the workplace to begin with,” Porath and Pearson wrote.

Organizations can also teach civil-

Breaking Bad (Behavior)Rudeness at work on the increase, costs businesses big bucks

by Cindy landrum | staff

overtly retaliating,” wrote Pearson and Porath in “The Price of Incivility.”

Those costs come in decreased employee effort, productivity and performance; lost work time, less team spirit and company loyalty, increased attrition and even a loss of customers.

“We know two things for certain: incivility is expensive and few orga-nizations recognize or take action to curtain it,” the study said.

They should. According to the study, among workers who said they had been treated rudely at work, 48 percent intentionally decreased their work effort, 12 percent left the job, and 25 percent admitted taking their frustration out on customers.

Kowalski said a business or organization must make it clear what is acceptable and unacceptable behavior – and good behavior must be modeled from the top down.

“It is said that incivility is the adult version of bullying,” she said. “Just like every school has bullying, every company has incivility.”

Companies should survey employ-

ACCoRDING To ThE STuDY, AMoNG woRkERS who SAID

ThEY hAD bEEN TREATED RuDElY AT woRk:

48%inTenTiOnAlly DecReASeD

TheiR WORk eFFORT.

47%inTenTiOnAlly DecReASeD The

TiMe SPenT AT WORk.

66%SAiD TheiR PeRFORMAnce

DeclineD.

78%SAiD TheiR cOMMiTMenT TO

The ORGAnizATiOn DeclineD.

12%leFT The JOB.

25%ADMiTTeD TAkinG

TheiR FRUSTRATiOn OUT On cUSTOMeRS.

Source: “The Price of Incivility,” by Christine Porath and Christine

Pearson, study published in Harvard Business Review

“We know two things for certain: incivility is expensive and few organizations

recognize or take action to curtain it.” Christine Porath and Christine Pearson, “The Price of incivility”

ity, reward good behavior and punish bad behavior, the professors said.

“There’s such a thing as construc-tive feedback. Clearly, a supervisor sometimes needs to call out an employee,” Kowalski said. “But they need to call out those employees in the correct way or it will backfire.”

Contact Cindy Landrum at [email protected].

UBJ

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the old cigar warehouse, the West End of Grenville’s newest event venue, soon will open on the lower floor of an 1882 building that was used initially to store cigars and cotton.

“Our whole goal is to bring out the characteristics of the building” and enhance its beauty, said Tammy Johnson, the warehouse’s new owner. She also wants to research more of the history of the building, which also houses other businesses, including Clark Patterson Lee Design Profes-sionals. The warehouse was home to the Carolina Supply Company and the Crescent Grocery Company in the early 20th century.

Johnson said the female-owned busi-ness is an attempt to provide creative events and a superior customer service experience in a historic location.

The new venue space at 912 S. Main St. includes walls of rough exposed brick, large beams, heavy wood doors and a wood floor. The ceiling in the

Main Hall soars to 45 feet.Johnson and General Manager

Kathleen Byrne initially came up with the idea of using the lower level of the building as an event location when they were seeking a spot for an event.

“Tammy walked in and fell in love with the space and reeled me in,” Byrne said.

The two women said Greenville boasts plenty of venues, but this one is different with its bricks, exposed beams and large spaces. The build-ing includes three different spaces: a Main Hall; The Cellar, an intimate space with 11-foot ceilings; and the outdoor patio. The venue has about 7,500 square feet of usable event space and could handle about 600 people.

Plans are to specialize in weddings, corporate events and private parties, but Byrne and Johnson said they would work with clients to create the type of event they want. The Old Cigar Warehouse will offer bar services pro-vided by Liquid Catering, which is also

a new plan for the old cigar Warehouse

Event venue to open in early June by Jenny Munro | contributor

owned by Johnson; an open catering policy that brings in outside catering companies; a catering prep kitchen; an onsite event manager; a bride’s suite and a groom’s suite; and 70-car parking. It also will provide onsite equipment rentals, with all setup and breakdowns.

“It’s a great location,” said Johnson. “You could have a wedding ceremony in the Main Hall, a reception on the deck and an intimate dinner in The Cellar.”

The two hope to be fully open by June 1, although some smaller events are scheduled before then. The venue will have a sprinkler system and they are up-grading the lighting and HVAC system. Plans are also in the works to build the catering prep kitchen and suites under the patio deck. That space should be completed by the end of August.

Johnson’s goal is to host 100 to 150 events a year at the new venue, which will be rented in time blocks with varying prices depending on the space needed, the day of the event and the services used.

By the end of year, Johnson said the business will have three full-time employees and 10 part-time work-ers, including a facilities manager and bartending staff. The Old Cigar Warehouse will have the capability of staffing any event, she said.

In addition, Johnson and Byrne will bring on interns every semester to learn the hospitality industry.

“They will gain great experience. They’ll network with a lot of great people,” Byrne said.

Anyone interested in applying for work may email Byrne at [email protected]. Those inter-ested in booking the space may contact Byrne or go to the website at oldcigar warehouse.com.

Kathleen Byrne and Tammy Johnson


UBJ Entrepreneurship


a taste of BusinessStudents offer outside perspective, small business support

by Jeanne Putnam | contributor

greenville’s smallest rest-aurant gave entrepreneurship majors at the University of South Carolina’s Moore School of Business a tasty assignment. A group of students enrolled in Dr. William Sandberg’s upper-level management class recently participated in a project to help Funnelicious increase sales by using low-cost marketing techniques to promote the world’s largest funnel cake, made in-house, as well as the restaurant’s healthier menu options.

Sandberg’s students participate as part of an upper-level management class that brought real-life scenarios to the classroom with group consult-ing projects. Student groups worked with small, local entrepreneurs to solve the business’ issues as well as offer outside advice to the owners.

Mike Pennington, co-owner of Funnelicious, has firsthand experi-ence with this class. “I took the class when I was going through the entre-preneurship program at USC in 2008. I had a great experience working in a small team consulting a local karate

studio in Columbia,” Pennington said. Based on his experiences as a student, he was open to the idea of having the class work with his business.

And the opportunity came when Pennington talked with a former management and entrepreneurship professor at a PULSE Leadership Luncheon. Shortly after that, Pen-nington submitted his business project proposal and it was approved for the fall 2012 semester.

Hannah Bachman, a student on the Funnelicious project, said, “Our teacher uploaded available projects to our interactive learning website, Blackboard. We were to form groups, read the available projects, and pick three that sounded interesting to us as a team. We then listed our prefer-ences from first to third, and had to write why we thought we deserved and would do well with the companies we chose.” Once her professor looked over the preferences, he matched Bachman’s team with Funnelicious.

Bachman and her team were required to come up with several

ideas that they believed would help Funnelicious in both the short and long term. Their suggestions focused on redesigning the appearance of the menu and using social media such as Facebook and Twitter as free market-ing and advertising tools.

With a visit to the restaurant’s location, Bachman’s team determined the menu to be in need of a significant change.

“Funnelicious has a diverse menu with a lot of options, but it was hard to read and it was cluttered. We

observed during our several secret shopping trips that people would stare at the menu for long periods of time and look overwhelmed by all the options,” Bachman said.

However, Funnelicious wanted to keep all the menu options, so Bachman’s team recruited the help of a design student and made a new, double-sided, legal-sized, laminated menu. They placed all desserts and fried items on one side and all deli and sandwich options on the other. They also color-coded the deli and sandwich side so customers could understand how the custom sand-wich-making process works.

While the project had its challeng-es, specifically the distance between Funnelicious in Greenville and USC in Columbia, which made visiting the location difficult for Bachman’s team, both parties feel that it was an overall success. This was the only major drawback to the project, Pennington acknowledged.

“It was a challenge for the students to get to Greenville on multiple occa-sions due to class, tests, jobs and foot-ball season,” he said. “I had to drive to Columbia on several occasions to meet with the students.”

For Bachman and her team, they learned that communication is the key to success in business, whereas this experience gave Pennington an oppor-tunity to come full-circle from student helping a business owner to being the business owner who is benefiting.

Based on his experience, Penning-ton said he would definitely recom-mend that other business owners participate in this program.

“They must be prepared to work and collaborate with the students throughout the semester,” he said. “They must lay out a detailed list of expectations they want the students to carry out.”

For more information on the entre-preneurship project with the Moore Business School, contact Dr. William Sandberg at [email protected].

Contact Jeanne Putnam at [email protected]

USC student Cindy Tang making funnel cakes at Funnelicious.


Photo provided

UBJ

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the Greenville office “will be approxi-mately five individuals, it is entirely conceivable that we may add as many as 20-30 additional professionals here as we ramp up our business.”

The company did not disclose the amount being invested.

Wagner said in-tech sees South Carolina “rapidly becoming a hub of the automotive world and is an excel-lent place for our new operations.”

Michael Ostermair, general manger of the new office, said in-tech “long

auto engineers launch Us operations at cU-icar

desired to have a presence in the southeastern United States.” He said the office opened for business immediately.

The company specializes in analy-sis and project management in “the development, integration, testing and fault analysis on automotive electronics systems.”

The privately held company was founded in 2002 and employs 300 worldwide.

Chris Riley, chairman of the Greenville Area Development Corp., noted that “in-tech’s decision is an important affirmation of this region’s continuing strategic focus on attract-ing and developing automotive sup-pliers of all types, and we welcome them to Greenville.”

Gov. Nikki Haley, Commerce Sec-retary Bobby Hitt, CU-ICAR Market-ing Director Suzanne Dickerson and Upstate SC Alliance CEO Hal John-son also welcomed the company’s decision to settle in the Upstate.

german engineering company in-tech, which provides system anal-ysis for integrating electronics for the automobile industry, has established its first North American operation in the Clemson University International Center for Automotive Research.

The company, which is based in Munich, Germany, where BMW has world headquarters, is the second German firm this month to an-nounce inaugural U.S. operations at CU-ICAR.

TIGGES, which makes fasteners, announced last week it is opening a technical sales office.

Christian Wagner, CEO of in-tech, said while the company’s initial team in Christian Wagner, CEO

Pho

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a chance stop for a chicken sandwich, a cold call, an intuitive receptionist and a real estate broker outside his specialty led a California company to plant regional headquar-ters in Greenville.

The choice was an unlikely out-come for the Southeastern office of Sempra U.S. Gas & Power, a subsid-iary of Sempra Energy of San Diego, a $10-billion international company.

And what initially was to be office space of 5,000 square feet for 10-12 people has grown to 18,000 square feet for 40 high-level employees. Doubt about being downtown turned into not wanting to be anywhere else.

Initially, Sempra was focused on places where it already had production facilities and on Charlotte, Atlanta and Tennessee. That Greenville got on the radar screen at all was happenstance.

Mike Gallagher, the regional presi-dent for Sempra U.S. Gas & Power, was on a scouting trip for the head-quarters in the first week of April last year, a week he recalls because the Masters was in play.

Killing time after a ChiCK-fil-a

He was driving from Charlotte to Atlanta for a meeting with Georgia’s economic development team. Galla-gher said Sempra “was well down the road” to a final decision to locate in Atlanta. Gallagher’s son already was enrolled in a school there.

Gallagher pulled off I-85 for lunch at Chick-fil-A on Pelham Road. He saw a rental sign for a nearby office building.

With “a couple of hours to kill” before his Atlanta meeting, Gallagher decided to make a cold call to the commercial Realtor listed on the sign.

Kevin Bentley, senior vice presi-dent of Lee & Associates, was sitting in his office on a slow day when “the lady who answers the phone said, ‘I have call you should take, and you’re

energy giant plans soUtHeastern HQ in Upstate SEMPRA EXEC SEES DowNTowN GREENVIllE loCATIoN

AS IMPoRTANT To STRATEGY, EXPANSIoN

by DICk huGhES

senior business

writer

Sempra U.S. Gas & Power will locate its Southeastern headquarters in downtown Greenville’s RiverWalk building, once occupied by the bounce advertising agency.


Formed in 2012 through a merger of Sempra energy’s U.S. operations outside of its california utilities.

Wind, solar and low-emission natural gas power plants generate

more than 1,500 megawatts of electricity.

23 billion cubic feet of underground natural gas storage capacity in operation; 2,000 miles of pipeline and gas distribution utilities.

Parent corporation, Sempra energy, based in San Diego, is a Fortune 500 en-ergy services holding company with 2011 revenues of $10 billion.

semprausgp.com


“after you’ve spent two minutes

in downtown Greenville, you wonder why you

would ever leave.” Mike Gallagher, regional president for

Sempra U.S. Gas & Power.

joined Sempra 2006.“The original plan when we were

thinking about coming was the first year we would start off with about 12 people, mainly resurgence of our marketing team,” he said. But the company quickly saw benefits in adding its engineering group, community relations, government affairs and a business team. Vice presidents of engineering and marketing already have made the move, along with several other employees. Soon to come, he said, are “our technical people who run our gas control unit and some of our scheduling people.”

Gallagher said his division has “about 500 people, and we will prob-ably end up having 40 of them here in Greenville by the end of the year. When we took the bounce property, we ended up being able to accom-modate all of that.”

He said everyone has “just been fantastic as far as relocating people and bringing our families.”

Although “a little late in looking at Greenville,” Gallagher said, the company couldn’t be happier with how well Greenville fits “as a great place to live and a fantastic place to do business.

“It’s just Southern hospitality, that’s the way I like to think of it,” he said. “It’s not like this everywhere.”

the only broker in the building.’”“I normally don’t do a lot of office

stuff – I’m more an industrial guy – but I took the call,” Bentley said. He met Gallagher at the building site and showed him four or five properties.

‘DiDn’t Know me from aDam’

At that point, all Bentley knew was a guy named Mike Gallagher was inter-ested in office space and that he had a cell phone number from outside South Carolina. Sempra “didn’t want anyone to know” it was looking, Gal-lagher explained.

Even though they “didn’t know me from Adam,” Gallagher said, from that initial meeting, he was “inundated over the next 10 days with support” from Gov. Nikki Haley’s office, the City of Greenville, the Greenville Area Development Corp., the Greenville Chamber and the Upstate Alliance.

He was initially doubtful about being downtown – before he had been down-town – but Bentley convinced Galla-gher to “go downtown and look around,” which Gallagher did. He was sold.

“After you’ve spent two minutes in downtown Greenville, you wonder why you would ever leave,” he said.

Once Gallagher decided to “pull the trigger” on Greenville, Sempra’s space needs grew. “Every time he came, he kept look for a little bit more

space,” said Bentley, who had “two, maybe three, meetings, before I knew exactly what the company was.”

‘important’ to growth strategy

Sempra finally settled on 18,000 square feet – 13,000 more than it originally sought – of Hughes Investment’s Riv-erPlace, taking space once occupied by the bounce advertising agency. The space is being reconstructed to fit Sempra’s needs and is a few weeks away from receiving furniture.

“This is a very important part of our strategy for the next four or five years,” Gallagher said in an interview.

Aside from being drawn to down-town Greenville, Gallagher said, there are location advantages that fit Sempra’s growth plans along the East Coast.

“The airport is great. The indus-trial community here has a very good growth rate and is a complement to the businesses we already support in Louisiana, Alabama and Mississippi. And it is a good springboard if our business moves a little bit north or moves into Tennessee more depend-ing on how some of the natural gas resources are developed.”

sempra sees opportunities

The regional headquarters came out of Sempra’s desire to aggregate “a large

number of assets scattered throughout the Southeast,” Gallagher said.

Sempra has regulated utilities in Alabama and Mississippi, “large quantities of natural gas storage underground” in those two states and Louisiana, and a pipeline network it either owns or has capacity on.

Sempra’s Greenville office also has responsibility for a large customer base from Texas, up the East Coast into Tennessee and North Carolina and into the Northeast states.

“We were trying to keep a handle on all of that from San Diego,” Gal-lagher said. “Even with having a pres-ence in Houston, we started looking for where we thought our business could flourish, and a lot of the arrows pointed to the Southeast.”

Sempra, too, saw growth opportuni-ties “being in the power business and with some of the development we are doing on the gas side, building pipe-lines and providing additional services to customers we already have.”

staff grows from 12 to 40

Gallagher, 49, whose experience in-cludes working for Duke Energy at its nuclear plant at Lake Norman, N.C., building efficient coal-burning plants for Duke/Fluor Daniel in the United States and Indonesia, and running his own energy consulting company,

“it’s just southern hospitality, that’s

the way i like to think of it.

it’s not like this everywhere.”

Mike Gallagher, regional president for Sempra U.S. Gas & Power.

SEMPRA u.S. GAS & PowER


Mike Gallagher, regional president for Sempra

U.S. Gas & Power.

Photo provided

bANk wATCh SECuRITY NETwoRk SPREADS AlERTS oN uNAuThoRIzED TRANSACTIoNS IN ThE wAkE of lAST YEAR’S CYbERATTACk

bY DICk huGhESsenior business writer

18C o V E R S T o R Y

Upstate BUsiness JoUrnalFebruary 22, 2013

ThE sOUTh carOliNa BaNkErs assOciaTiON has crEaTED a sTaTEWiDE network to track fraud transactions of bank accounts compromised by the hacker breach of the S.C. Department of Revenue. ¶ The Bank Security Watch Network is a mechanism to share unauthorized transactions – but not personal identifica-tion – on any compromised account of the state’s 82 banks and 80 credit unions. ¶ In a critical step making the network possible, SCBA got a court order to allow the revenue department to provide each bank with a list of accounts at risk so they can be flagged for heightened screening for unauthorized transactions.

“That was extremely important because without that, each bank wouldn’t know which accounts were com-promised and which weren’t,” said Fred Green, SCBA president and CEO.

The action was prompted by the cyberattack of the reve-nue department that gave hackers access to approximately 3.8 million Social Security numbers, 387,000 credit and debit card numbers, and checking account and bank rout-ing numbers of taxpayers who have filed electronically for direct deposit of state income tax refunds. Information dating to 2008 was stolen.

It is believed to have been the most massive breach of any state’s data, and subsequent inquires by the Legislature have found security of the site wanting.

SCbA STEPS INTo bREACh“At stake are two risks,” said Green. “One is identity theft, and there is very little the banking industry can do to

prevent identity theft. That’s why the state has a contract with Experian to monitor those who sign up.

“The second risk is fraudulent transactions on bank accounts, and that is directly associated with the banking industry. There is nobody else out there that can help mitigate that risk.”

Green said the network covers 99 percent of all the state’s bank deposit customers and 100 percent of credit union customers.

An early alert of untoward activity on one account gives all other institutions notice of the characteristics of the unauthorized transaction so they “can keep it from hap-pening in their particular bank if there is something with the same characteristics,” he said.

The network is designed to counter the typical fraudu-lent modus operandi of hitting thousands of accounts with low-volume dollar amounts at one time. “If each attempt was different and unique, then this particular

forum would not be what it is designed for,” Green said.Each bank and credit union enrolled in the program has

received a list of compromised accounts. Each received a handbook from the SCBA on how to use the information, and a training session is scheduled.

flAGGING AT-RISk ACCouNTS“Every bank is different by process, but we suggest that each of those accounts that were compromised that the bank would put a flag on it of some type to identify it as one that was compromised,” Green said.

The SCBA also suggests that each bank set up system so cus-tomers can find out from their bank if an account is on the list or not and provide guidance on how to protect their money.

In a small-sample survey of community and large national banks operating in the Upstate, UBJ found the community banks proactively are using the information to inform and assist customers with at-risk accounts.

The two large banks questioned, Wells Fargo and TD Bank, publicly provided only scant details of their customer outreach, saying they are working with the SCBA and have as a priority the protection of the security of accounts.

TD said it would waive charges associated with closing accounts and opening new ones.

Wells Fargo and TD said it is the state’s responsibility to notify customers of compromised accounts. The state is sending out notifications at the rate of 100,000 per day. Consumers with questions are being directed to the state Department of Consumer Affairs (800-922-1594) or to the Department of Revenue website, sctax.org.

CoMMuNITY bANkERS STEP uP At Carolina Alliance in Spartanburg, Palmetto Bank in Greenville and Greenville First in Greenville, bankers said they have either contacted or established ways for custom-ers to find out directly from the bank if an account has been compromised.

“I’ve already sent you a letter telling you what hap-pened,” said John Poole, president and CEO of Carolina Alliance. “We did that immediately when we got the list.”

He said many either came in or called customer service with additional questions and “a handful of people closed their ac-counts and opened new ones. We don’t encourage that, but if they want to do that, it is an option, and we take care of them.”

The 209 active Carolina Alliance accounts on the list “have been flagged for additional scrutiny,” Poole said.

Art Seaver, CEO of Greenville First and Southern First in the Columbia market, said the bank has been spreading the word and has set up a single point for information.

Palmetto Bank has flagged affected accounts – sorted by name and account number – so “anyone who touches your account,” whether in a branch or a call center, can tell customers their account was flagged, said Trish Spring-field, retail banking executive.

Go fIRST To YouR bANk“When you have a problem with your financial information, the first place you should go is your banker and ask them what you should do, how do I protect myself,” she said.

About 30 percent of Palmetto’s 50,000 active checking accounts are on the revenue department’s compromised list, she said.

“Of the active accounts, 96 percent are retail consumers. We did have some personal business accounts, but it was just 4 percent. Obviously, the dollars would be different because they tend to hold larger balances.”

Palmetto also created a multi-department response team to help any customer who “wants some help on the security side.”

Banks are willing to accommodate customers who want to close existing accounts and open new ones. The SCBA says that is an option but cautions of the inconvenience of needing new checks and debit cards and changing automatic deposit and withdrawal payment information.

The SCBA, as well as all banks, say the best protection is for customers to constantly monitor accounts and promptly report questionable activity to their banks.

fRAuDSTERS AwAIT uNGuARDED“This is the world we live in,” said Springfield. “People need to be proactive in managing and protecting their informa-tion. The South Carolina data breach has raised awareness.”

Green of the SCBA said while there have been no re-ports of unauthorized transactions to date and it “may not happen ever or may not happen for a long time,” the fraud alert network is for the long haul.

Bankers are mindful that people who commit frauds from illicit access to personal information are patient.

“If it ever happens, it will be later years down the road before it does. I guarantee you the people who were in-volved in that know that everybody is looking,” said Poole.

“Without question, this will be a multi-year event,” said Springfield. “We recently heard of a client who had been the victim of identity theft. This client … lost her purse three years ago and just now the perpetrators were leveraging that information.”


ThE DoR SECuRITY bREACh: whAT wAS CoMPRoMISED?

APPROxiMATely

3.8 MilliON SOciAl SecURiTy nUMBeRS

387,000 cReDiT AnD DeBiT cARD nUMBeRS

ChECkING ACCouNT AnD bANk RouTING NuMbERS

OF TAxPAyeRS FilinG elecTROnicAlly FOR

DiRecT DePOSiT

fEDERAl EIN NuMbERS, Sc DePARTMenT OF

RevenUe TAX ID NuMbERS MAy AlSO hAve Been

exPOSeD

More information: sctax.org

C o V E R S T o R YUpstate BUsiness JoUrnal

February 22, 2013

“This is the world we live in. People

need to be proactive in managing and protecting their information. The

south carolina data breach has raised

awareness.”

Trish Springfield, retail banking executive, Palmetto Bank


Yarbrough, 43, trained in business at Washington and Lee University and heeded the advice of her family members: she became a banker.

“I went into the commercial lending side of it and hated banking,” she said.

After working for two years, she then got mar-ried and took a break to raise her three children. Her link with Web technology came when a friend was diagnosed with leukemia and was later the only survivor of a clinical trial of 19 people, she said. In 2008, they formed Cancer Milepost, a social media website for cancer patients. They stopped the effort after about six months at her friend’s request.

Through her connections with Mediasation Web Solutions, Yarbrough was then asked if she would help with the medical sites. She formed The Doc-tor’s Bag in 2009.

“I love technology and I love gadgets. I didn’t know much about websites, but I learned as I went,” she said.

Yarbrough said her introverted personality has made selling the company’s services a unique experience. “I listened a lot and I think that was beneficial in the long run.”

Sales have doubled each year since the launch, she said. This year, several local hospitals are work-ing with The Doctor’s Bag.

“And instead of just doing websites, we’ve now developed into a full-service marketing agency,” she said. The company offers communications strategies, social media and content management. In addition to Yarbrough, The Doctor’s Bag has a healthcare strategist, graphic designer and market-ing director on staff.

PhYSICIAN, MARkET ThYSElfElIzAbETh YARbRouGh REAChES INTo ThE DoCToR’S bAG To GIVE MEDICAl PRACTICES PowERful CoMMuNICATIoNS AND NETwoRkING ToolS bY APRIl A. MoRRIS | staff

“My father said he didn’t know why i was

going to college because he knew i was

just going to be a wife and mother. i had

that determination that i was going to prove him wrong.”

Elizabeth Yarbrough, founder of The Doctor’s Bag

Helping physicians market theirtheir services and patients find a doctor was not the career that Elizabeth Yarbrough set out for, but now that she’s four years into her own business – The Doctor’s Bag – it’s obvious this is where she belongs.

Though many physician practices suffered cut-backs in marketing over recent years, technology is essential to help them reach potential patients, she said. “Eighty percent of people are looking for medical information online, so it’s so important for physicians and healthcare systems to not only have a Web presence, but make that a user experience.”

Initially, The Doctor’s Bag also had physician-referral software that allowed doctors to make specialist referrals online.

“The phone stopped ringing all the time (in those offices) and it really helped with front office communication,” she said.

After multiple inquiries from hospitals about a similar capability, her company is launching a new software product this spring, LinkMD, which links patients, physicians, administration and hospitals. It includes a physician directory that is administered by the doctor rather that the hospital, making it easier to keep the information current, Yarbrough said. There’s also a social component for physicians to make connections among colleagues.

In the ever-evolving landscape of healthcare, teaching herself about new technology is a daily occurrence, she said, as well as understanding how healthcare regulations are changing.

Part of her own drive to be successful in business goes back to her college days, she said. “My father said he didn’t know why I was going to college because he knew I was just going to be a wife and mother. I had that determination that I was going to prove him wrong.”

And Yarbrough has succeeded. As a wife and mother of three teenagers, she said running her own business allows her the flexibility to take time for her family. “My cell phone is attached to my hip, but when school gets out, I can pick up my children and I can be with them.”

After migrating from banking to stay-at-home mom to tech marketer, Yarbrough offers this advice to entrepreneurs: “If you’re so scared that you never try, your dream will never come true.”

Contact April A. Morris at [email protected].

UBJ

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trepreneur •J u M P S T A R T


UBJ The Takeaway


In the keynote address, Tim Rog-ers, VP of Finance for Continental Tire, said the future of the industry is tied to increased automation – de-veloping vehicles that will ultimately drive themselves. In his presentation, Rogers exposed new opportunities for manufacturers, consumers and our state alike and highlighted trends in research and production.

MEGA-TRENDS IN ThE INDuSTRY:Today, manufacturers are designing vehicles that incorporate more ef-

smooth roads ahead for sc auto industry

EVENT: Sc Automotive Summit

who wAS ThERE: 200 industry executives representing S.c.’s OeMs, Tier-1 and 2 suppliers and development agencies

SPEAkER: Tim Rogers, vP of Finance for continental Tire the Americas

FoRmeD By The SC AuTomoTIve CouNCIl To provide a statewide forum for industry leaders to net-work and innovate, the Second Annual Automotive Summit, which took place earlier this month at the Hyatt in downtown Greenville, showcased the future of automotive technologies and the impact of those advancements on our state. ficient, environmentally conscious

powertrains, increasingly advanced automated technologies and im-proved onboard safety systems. Further, they’re working to develop affordable cars with global mobil-ity, allowing companies to tap into emerging, high-growth markets.

fuTuRE TRENDS IN AuToMoTIVE INNoVATIoN:As early as 2016, consumers can expect to see partially automated vehicles that provide an array of monitoring support systems. By 2025, Continental expects that technologies will allow vehicles to operate without driver interaction – allowing individuals to work, talk, text and play games while traveling on the road.

ThE MoVE TowARDS GREENfIElD uS SITES:While considered a high-cost country compared to other markets, the U.S. economy provides long-term stabil-ity, a highly regulated but predictable market, consistent growth, a trained and highly productive workforce, af-

fordable utilities and a more efficient supply chain system.

whY ThE INDuSTRY IS lookING To SC:South Carolina, in contrast to many other states, provides a proven pro-business environment, proactively engages new businesses looking to relocate, maintains a strong base of international manufacturers and retains an affordable cost of living.

hIRING foR A NEw GENERATIoN:Continental has partnered with Ready-SC, Central Carolina Technical College and the Department of Employment and Workforce to revolutionize the employee hiring and training process. Through pre-screening and automated production simulations, we are now able to train and test applicants for best fit before they set foot on the manufac-turing floor – improving our quality and efficiency.

A bRIGhT ouTlook foR SC:Work on Continental’s 500-acre site in Sumter began in June of 2012 and is progressing as planned for scaled production to begin by January of 2014. Continental expects the Sumter plant to reach a Phase I annual pro-duction capacity of 4.65 million tires by 2017, with ultimate plans to gener-ate 8 million tires annually by 2020.

By Andrew Tull of SmoakPR on behalf of the SC Manufacturers Association.

Other topics at the SC Automotive Summit included the future of the U.S. and regional automotive industries, training a 21st-century workforce, and labor union trends. For more information on the SC Automotive Council and their annual event series, visit SCAutomotiveCouncil.com.

Tim Rogers

Photos provided

UBJ The fine Print

CREDIT uNIoN NEwCoMER Grow Financial, a Florida-headquartered credit union, says it is opening three branches in columbia and says it plans to have 15 branches throughout South carolina, including in Greenville and charleston some day.

Grow said it would open its first two columbia branches this year and one in 2014.

“We want to be present to serve not only individual members but also businesses while helping the state be proactive in their business development growth objectives,” said Jason Moss, senior vice president.

Originally founded to serve military and civilian personnel at MacDill Air Force Base in Tampa, Grow has expanded to 19 branches and $1.8 billion in assets.

Slow ECoNoMY, GooD YEARPBSc, the privately held holding company of Pinnacle Bank, reported 2012 net income of $1.2 million, an improvement of 146 percent over

$495,014 in 2011.Pinnacle said its total assets grew

16.5 percent to $158 million. “We are very proud of our results

in what continues to be a very weak economy,” said David Barnett, president and ceO.

he said “results were bolstered by better than expected credit quality and a very strong mortgage demand.”

Pinnacle has branches in Greenville and Powdersville.

TAkING SofTwARE To CoAlGlobal PTM of Greenville has completed implementation of Oracle management systems at numerous sites of Alpha natural Resources, the third-largest coal producer in the United States.

“As a result of the Oracle eAM implementation, Alpha natural Resources has successfully standardized, companywide, a maintenance system that provides improved business intelligence reporting and analysis capabilities,” Global PTM said.

fREE SERVICE foR ChAMbERThe Greater Greer chamber of commerce has added ASTRA/cFx’s supply-chain analysis as a free benefit for members.

“every member will have the opportunity to receive this no-cost supply-chain analysis and potential for savings,” the chamber said. “On average, ASTRA/cFx brings a 20 percent reduction to client costs.”

ASTRA/cFx, a Florida company, opened a $9-million plant in Greer in 2010 to assemble tire and wheel units for the BMW x3.

fRANChISE hITS hIGh MARkAllegra Marketing of Spartanburg has been recognized by Allegra network as being among the franchiser’s 10 top local outlets in increasing sales volume in north America.

Allegra is a full-service marketing and communications company, offering marketing consultation, copywriting, graphic design, full-color printing and mailing for a variety of products.

foRuM EXPloRES TEXTIlE REJuVENATIoNinnovision will hold a forum to examine how South carolina managed to rejuvenate the vanished textile industry through innovation and product development.

The event will be held at the Mcnair law Firm, Greenville, Wednesday, Feb. 27, from 5-6 p.m.

Panelists include Joe Royer, director of innovation at Milliken & co.; christine cole, director of apparel research at clemson; and Brian McSharry, chief operating officer of Sage Automotive interiors.

Register with kathy ham at 864-552-9345 or [email protected].

UBJ New to the Street

CoRE health Centers is one of the area’s leading pain management clinics with offices in east Spartanburg and its recently opened location in Thornblade at 103 Regency Commons Drive in Greer. cORe health centers specializes in non-surgical and non-narcotic pain

care and has expertise in the areas of low back, knee, shoulder and neck, while providing services that include all natural joint injections, complete diagnostic testing, rehabilitation therapy, DMes and nutritional support. For more information, visit gotcore.net or call 864-469-2045.

The new Candlewood Suites broke ground on Feb. 13 at 25 Green Heron Road in Greenville. The hotel will be all-suite with 97 rooms with amenities including complimentary high-speed internet access, free local phone calls, free on-site guest laundry and a 24-hour fitness center. Unique to candlewood Suites, guests can also enjoy the convenience of the candlewood cupboard, where a variety of beverages, breakfast items, snacks, frozen entrees

and sundries will be available for purchase on the honor system at any time and where guests can enjoy complimentary freshly brewed coffee. Additionally, guests of the candlewood Suites can visit the free lending library, where movies and music will be available for use in guestrooms, which all feature a DvD and cD player. it is scheduled to open in September and will be adjacent to the new 100,000-square-foot cabela’s scheduled to open in 2014.

h&R block recently relocated its tax office in Travelers Rest to 146-B Walnut Lane in Piedmont commons. Office hours may vary.

For more information, call 864-834-8110.

UBJ Planner

Join us for the 4th annual

RedShoeSocietyKickoffas we celebrate last year’ssuccesses & the exciting plans in store for 2013!

�ursday, February 28th | 6:00-8:00 p.m.Courtyard by Marriott Greenville Downtowndoorprizes | hors d’oeuvres | drinks

Join Red Shoe Society during the kicko� event & you will be entered into a drawing to win tickets to our 2013 signature event!

RSS Members and Friends are all welcome!

RSSGreenville Red-Shoe-Society www.redshoesociety.org












RSSGreenville RSSGreenville Red-Shoe-Society www.redshoesociety.org

Special thanks to Upstate Business Journal, TOWN Magazine, Courtyard Marriott Downtown Greenville, Good Life Catering and Thomas Creek








fRIDAY, fEbRuARY 22

RouNDTAblE AND NETwoRkING foRuM (SCwbC)

uSC upstate – The George, 160 East St. John St., Spartanburg; 11:30 a.m.-1:30 p.m.

Topic: Women Dealing With WomenCost: $10 per person.Speaker: Dana hall-Ragland, owner of Synergy consulting Services.Register at: scwbc.net.

MoNDAY, fEbRuARY 25

GCS RouNDTAblE: wINNING lISTENING hAbITS foR CAREER SuCCESS

The office Center at the Point, 33 Market Point Drive, Greenville; 8:30-9:30 a.m.

Speaker: Daryl Wiesman, PhD.Call: Golden career Strategies at 864-527-0425 to request an invitation.

95Th ChAMbER ANNuAl MEETING

Spartanburg Marriott, 299 North Church St., Spartanburg; 5:00 p.m. cocktail reception, 6:30 p.m. dinner and business meeting

key Note Speaker: Dr. Joe Salley, pres-ident and ceO, Milliken & company.Cost: $75 per person for members, $100 per person for non-members.Contact yvonne harper at 864-594-5032 or [email protected] to register.

TuESDAY, fEbRuARY 26

woMEN AT woRk, hoSTED bY PhIllIPS STAffING

history Center, 102 Depot St., fountain Inn; 8:30 a.m.-9:30 a.m.

Topic: “Staffing needs” and “how to Gather candidates”.A light breakfast and networking with other professional women at work.RSVP to: charlene at [email protected] or call 864-862-2586.

loANS AND oThER SouRCES of CAPITAl foR SMAll buSINESSES

Marion P. Carnell learning Center, Room lC274, lander university, Greenwood; 6-7:30 p.m.

Cost: $25 per person. it is a seminar that will cover acquiring capital for small businesses.

Pre-registration is required: Registra-tion form is at lander.edu/goto/continu-inged and can be emailed to [email protected], faxed, mailed, delivered, or phoned in to lander University Department of continuing education 864-388-8426, fax 864-388-8189.

for more information, contact: 864-388-8492 or email [email protected].

GREG SMITHPresident, Blue Vista Ventures, LLC

“Basement Start-up to Fortune 150 Exit: What I Learned Along the Way”

March 1, 5:00 p.m.Clemson at the Falls

55 East Camperdown Way, Greenville

Attending First Friday is free, but space is limited!Register at FirstFridayGSmith.eventbrite.com.

FIRST FRIDAYLEADERSHIP SERIES

PRESENTS


wEDNESDAY, fEbRuARY 27

fEbRuARY CoffEE AND CoNVERSATIoN

upstate SC Alliance, 124 Verdae blvd., Suite 202, Greenville; 8-9 a.m.

investors only. Discussions from The iron yard.if interested in becoming an investor, call clay Andrews 864-283-2300. RSVP at [email protected].

MAulDIN ChAMbER lEADS GRouP

Mauldin Chamber of Commerce, 101 East butler Road, Mauldin; noon-1 p.m.

Free to attend.Contact: Don Johnson at [email protected].

PulSE fEbRuARY SoCIAl

The warehouse Theatre, 37 Augusta Road, Greenville; 5:30-7:30 p.m.

Free to PUlSe members.Register at: greenvillechamber.com or by calling 864-239-3743.

ThuRSDAY, fEbRuARY 28

fouNTAIN INN ChAMbER’S ANNuAl bANQuET/MEETING

SC Army National Guard Armory, 150 Speedway Drive, fountain Inn; 6-9 p.m.

Guest Speaker: Dr. eric S. Bour, presi-dent of hillcrest Memorial hospital.Cost: $45 per person.Contact: Fountain inn chamber at 864-862-2586.

fRIDAY, MARCh 1

ThE 52ND ANNuAl SouThERN hoME & GARDEN Show

TD Convention Center, 1 Exposition Drive, Greenville

Features hundreds of exhibits with merchandise for sale, product dem-onstrations, and workshops for adults and children. Special appearance: Southern living contributing editor Rebecca Gordon.For more information, visit hBAof-Greenville.com or call 864-254-0133.

fIRST fRIDAY luNChEoN

Greer City hall, 301 E Poinsett St., Greer; 11 a.m.-1 p.m.

Speaker: erich Schneider, business owner and professed “Big Picture Guy.”Topic: “The hubris of Success and the Success of Failure.” Open to the com-munity with registrations at greercham-ber.com required.Cost: $10 for chamber members and $15 for non-members.Contact: The Greater Greer chamber of commerce at 864-877-3131.

fRIENDS of CCS ANNuAl luNChEoN

fountain Inn Activities Center, 610 fairview St., fountain Inn; noon-1:15 p.m.

Cost: $25 for an individual or $200 for a table of 8.Speaker: W. Burke Royster, superinten-dent of Greenville county Schools.Contact: Wilma Whitlatch at 864-688-2211 or [email protected].

UBJ on the Move


bANkING/fINANCE:Park Sterling Bank recently announced the addition of Tracy Porterfield and Suanne white to their Greenville Wealth Management team. Porterfield is a financial veteran with more than 17 years of experience – and cTFA (certified Trust Financial Advisor) designation – in the wealth manage-ment business in the Upstate of South carolina. White has more than 15 years of experience in the financial industry and holds Financial industry Regulatory Authority Series 7, Series 66, Series 65 and insurance licenses.

INSuRANCE:Rosenfield einstein, a South carolina-based insurance agency, brokerage and consulting firm that is part of the Marsh & Mclennan Agency llc (MMA) family of companies, recently added Upstate human resources professional zeke lollis as a shared services specialist in the firm’s employee benefits division. lollis joins Rosenfeld einstein after several years in the human resources

divisions of both Greenville Technical college and clemson University, and holds a B.S. degree in management from clemson University.

INTERIoR DESIGN:kustom home Design of Greer’s owner kimberly kerl was recently awarded “Best Of houzz” 2013 in customer Satisfaction by houzz, the leading on-line platform for residential remodeling and design. This custom residential de-sign firm, which specializes in residen-tial addition, renovation and new home designs, was chosen by the more than 11 million monthly users that comprise the houzz community. The houzz “Best Of houzz” award for 2013 is given in two categories: customer Satisfaction and Design. customer Sat-isfaction award winners are based on homeowner members who rated their experience working with remodeling professionals in 12 categories ranging from architects and interior designers to contractors and other residential remodeling professionals.

NoNPRofIT:United Way of Greenville county young Philanthropists (yPs) recently announced that Jo watson hackl of Wyche P.A., Clarence kegler of Mi-chelin north America, Mike McGuigan of elliott Davis llc and kent Satter-field of Dixon hughes Goodman llP are the finalists for 2013 yP Mentor of the year. This year’s winner was named during the Mentor of the year Awards ceremony, presented by Michelin north America, on Feb. 19 at the TD conven-tion center in Greenville.

REAl ESTATE:Coldwell banker Caine recently recognized its top producing agents with honors. The company announced the top 15 sales associates in the following order: Sharon wilson, Jacob Mann, Pat loftis, helen hagood, Nick Carlson, lori Thompson, francie little, Susan Reid, faith Ross, Susan Gallion, Carolyn Dowling, Jenni-fer wilson, Annette Starnes, berry Gower and kathy harris. Sharon

wilson, Jacob Mann, Pat loftis and lori Thompson qualified for the international President’s elite society, made up of the top 2 percent of all sales associates internationally. helen hagood, Nick Carlson and Donna Morrow qualified for the international President’s circle, made up of the top 4 percent of coldwell Banker’s agents internationally. Jake Dickens, Carolyn Dowling, Susan Gallion, kathy harris, francie little, Susan McCoy, Char-lene Panek, heather Parlier, Susan Reid, faith Ross, Annette Starnes and Carol walsh received the international Diamond Society award, recognizing the top 8 percent of coldwell Banker agents internationally.The following agents earned entrance into the international Sterling Society, named to the top 12 percent of agents internationally: Virginia Abrams, beth beach, Shelbie Dunn, Suzanne free-man, lorraine Gibson, berry Gower, Trish hollon, lisa humphreys, Judy McCravy, Rhonda Porter, Sherry Sponseller, Sharon Tootell, Pam

sharON WilsONRecently awarded standing as the no. 1 coldwell Banker Agent in South carolina. Wilson has more than 25 years of service with coldwell Banker caine Real estate. She has consis-tently ranked among the top three producers in the company and in the coldwell Banker network in the state of South carolina. This year, she quali-fied for the international President’s elite society, made up of the top 4 percent of coldwell Banker agent’s internationally. She was awarded the top producer for coldwell Banker caine, and no. 1 volume Producer for coldwell Banker caine.

c. kYlE ThOMasAdded as carolina Alliance’s executive vice president and commercial bank-ing officer. Thomas brings more than 23 years of banking experience in the Spartanburg and Upstate markets to carolina Alliance, with the most recent being as president and ceO of Seneca national Bank, which was acquired by new owners. his banking experience is centered in the Upstate market, primarily in management, administra-tion and commercial lending. having worked in a leadership capacity with three banks, he most recently was re-sponsible for the day-to-day operations of an $80 million community bank.

WilliaM P. craWFOrD Jr.Joined Pacolet Milliken enterprises inc. as senior vice president and gen-eral counsel. Prior to joining Pacolet Milliken, crawford served as senior counsel at TD Bank, where he was responsible for the legal aspects of the bank’s U.S. corporate, real estate and contract functions. he previously was the executive vice president – chief legal and risk officer of The South Financial Group inc., where he was integrally involved in a variety of legal, regulatory, risk and strategic matters, including the sale of the company to TD Bank.

l. raY sWiTZErPreviously Spartanburg community college’s director of campus operations; was recently appointed to serve as Scc’s vice president of business affairs. Since joining Scc in 2005, Switzer served as director of facilities and campus operations leading and manag-ing multi-campus master planning; construction and renovations; mainte-nance of facilities and grounds; public safety and environmental compliance; and logistics services. he has served 27 years in private industry in the Upstate, which includes positions in engineering, production management and senior-level operations management.

AwARDED hIRED hIRED PRoMoTED

UBJ Social


kaThlEEN c. “kaThY” MckiNNEY

Of Haynsworth Sinkler Boyd P.A.; was recently announced as a Compleat Lawyer Platinum Award recipient by the University of South Carolina Law School Alumni Association for more than 30 years in practice. The award recipients will be recog-nized at the University of South Carolina Law School Alumni Association Dinner on April 25. McKinney is a nationally recognized lawyer for her work in tax-exempt financing. She was appointed an independent director of the FHLBanks Office of Finance board of directors in 2010, is a fellow of the Ameri-can College of Bond Counsel, and served as president of the National Association of Bond Counsel in 2009. Compleat Lawyers are recognized for making significant contributions to the legal profession and exemplify the highest standard of professional competence, ethics and integrity.

walker, holly west, Jennifer wilson and linda wood.The no. 1 Unit Producer was lori Thompson, no. 1 increased Produc-tion was leNelle Tanner, the top relocation agent was Judy McCravy, the Rookie of the year was heidi Putnam, the Team Spirit Award was awarded to Rhonda Porter, and the Team leadership Award was awarded to Susan McCoy.Other awards included the Frank B. halter award, which is the high-est honor that can be bestowed on a member of the caine company. in memory of Frank halter, who passed away on Jan. 29, Virginia Abrams and Susan Clary were both recognized with this honor.coldwell Banker commercial caine also recognized its top performing commercial brokers Pete brett, David Sigmon and Tim Satterfield as the top three producers of 2012.

Prudential c. Dan Joyner co Real-tors recently announced that Angela

kENNETh M. harPErPromoted to chief operating officer for countybank. harper was the execu-tive vice president and manager of commercial lending starting in July 2011. he has more than 26 years of experience in the banking industry. Previously, he worked with Greer State Bank where he served as president and ceO, and prior to that he was with carolina First as executive vice president, senior commercial banker and market president.

PRoMoTED

RECoGNIzED

hampton has joined the company and serves as a sales associate at the Simpsonville office. hampton gradu-ated from laurens District 55 high School and earned her associate de-gree in general business at Piedmont Technical college. She is a graduate of Fortune Real estate Academy.

< Sellest McClain, left, facing camera, talks with

Janice Hatton, back to camera, at the Women,

Wine and Wisdom monthly event held at the Commerce Club.

The theme for the February meeting was “What a Difference a Generation Makes.”

< Moderator of the Women, Wine and Wisdom panel,

Carol Simpson, left, introduces panel members Nika White,

center, vice president of diversity and inclusion for the

Greenville Chamber, and Anna Smith, former teacher and

wife of the late Judge Willy T. Smith Jr. The panel discussion

focused on the history of African American women.

> From Left to right, Ruth Richburg, Geraldine Williams and Jannie Hill visit with one another at the Commerce Club during Women, Wine and Wisdom.

The Spartanburg Chamber of Commmerce Diversity

Connections lunch

UBJ Square feet

CoMMERCIAl REAl ESTATE CoNTINuES STEADY ClIMb IN uPSTATE

Reports predict growth opportunities – and challenges – in industrial, retail, office sectorsby Jenny Munro | contributor

“if you take 2009 as a baseline,

every year has been better.”

frank hammond, president of colliers international Greenville

growth in the industrial, re-tail and office real estate sectors in 2013 is expected to continue and be somewhat stronger than it was last year, according to forecasts released by three real estate firms.

The economy is growing slowly and steadily, employment growth is positive although slow, and housing seems to have turned the corner into positive territory, according to the CBRE | The Furman Co.’s Upstate Real Estate Forecast. The study predicted that this year will be the strongest since the recession and that 2014 will be an even better year.

A survey taken before the CBRE forecast was released showed that employers were much more optimistic about hiring in 2013 than in earlier years. This year, 51 percent of the re-spondents expected to hire workers while only 3 percent anticipated layoffs. In 2009, 10 percent expected to hire and 33 percent were looking at layoffs.

Also, the outlook on capital budgets has improved between 2009 and 2013. In 2009 only 10 percent expected a larger capital than in the

year before while in 2013 than num-ber jumped to 39 percent.

“If you take 2009 as a baseline, every year has been better,” said Frank Hammond, president, Colliers International Greenville.

“The Upstate of South Carolina is positioned well for dynamic growth in the coming years,” said Grice Hunt, industrial broker with NAI Earle Fur-man, in an annual real estate forecast.

opportunity amiD unCertainty

However, “the economic strength in this state is at the coast,” said Bruce Yandle, dean emeritus of the Clemson University College of Business and Behavioral Science. In the Upstate, The Greenville economy is stronger but stable. Spartanburg is weaker but growing. And he said he expects growth in the region to remain flat to slightly positive.

“There is opportunity amid uncer-tainty,” said Steve Smith, executive vice president and managing princi-pal of CBRE | The Furman Co. While the overall outlook is improving, there are headwinds to navigate, including political gridlock at the national level. But “things are definitely better.”

Hammond said multifamily hous-ing is probably the strongest real estate housing segment now.

inDustrial DemanD grows

Manufacturing, with its strong sales

and slowly expanding employment, continues to drive the Upstate’s economy this year and through 2014, according to the CBRE report. The sector’s dominance in the region has resulted in the local market recover-ing faster than the national industrial market, according to the report.

The Upstate absorbed more than 2.1 million square feet of industrial space in 2012, most of it in the last half of the year, according to Collier International’s Research & Forecast Report. Nearly 2 million square feet of space was built during the year.

“With the recession and the 2012 election behind us, business has returned to a more stable condition and continues to improve,” said Hunt.

Demand for industrial space is growing and new construction is beginning to be seen, according to CBRE. Michelin is in the midst of two new construction projects. Also, BMW is building a new body shop and paint shop. However, no speculative development is currently underway.

warehouse spaCe laCKing

The Upstate’s automotive sector is responsible for much of the industrial growth, Colliers said. As of Decem-ber, BWM Manufacturing Co. was the second largest production facility in BMW’s portfolio.

“We’re probably 60 percent manu-facturing and 40 percent warehouse/distribution,” Smith said. “There is no Class A warehouse space” in the

Upstate, with the closest available space in Atlanta and Charlotte. The lack of Class A warehouse space with 30-foot clear height and Early Suppression Fast Response sprinkler systems, could cap economic growth as tenants find space in other areas.

Hunt agreed that “the largest challenge facing the Greenville-Spartanburg industrial market is the lack of quality industrial buildings.”

Such space initially would be built-to-suit for existing businesses, Smith said. Eventually, such space could be built on speculation by large developers.

The decision of the South Carolina Ports Authority to develop an inland port in Greer and the Greenville-Spartanburg International Airport’s decision to begin development of some of its land holdings also will provide a boost to industrial develop-ment and growth, Hunt said.

Most of the growth in manufactur-ing is in the advanced manufacturing area, which is not labor-intensive. The move in the sector means manu-facturing growth does not generate as much employment growth as it did in the past. Still, manufacturing employ-ment grew by 2.2 from November 2011 to November 2012, according to the Collier report.

Scott Jones, office division broker with NAI Earle Furman, said in the annual forecast that “trends and activ-ity in the market are showing a healthy move toward recovery and optimism for greater improvement in 2013.”

UBJ Square feet

offICEVR 9.1%AR 13.75%

Q4 2012

INDuSTRIAlVR 8.4%AR 2.87%

RETAIlVR 6.7%AR 9.37%

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migration to this area with many office users from both the suburbs or from outside the Upstate market,” Jones said.

retail stanDs strongRetail space currently is a 7.8 percent vacancy rate, an indication of a strong retail market.

Several new retail establishments are moving into the Greenville area. Cabela’s, a seller of hunting, fishing and outdoor gear, recently announced it was locating a store here. Walmart is developing its new neighborhood grocery concept with a store in Greer and plans for one in Greenville. Also, Tupelo Honey Café plans to locate a restaurant in ONE on Main Street. Anthropologie, a woman’s clothing store, also will be in ONE.

“Retailers in general are looking at smaller footprint,” Smith said.

offiCe vaCanCies DeCline

Office vacancies peaked in 2009, with vacancy rates now declining because of the lack of new building rather than from strong market growth, ac-

cording to the CBRE report. The ONE project in downtown

Greenville will bring 370,000 square feet of Class A office space to the mar-ket in two phases. The first phase of the project is 95 percent leased. The

Contact Jenny Munro at [email protected].

second phase, now under construc-tion, already has leased much of its space but has three floors available.

Many of its new tenants are already based in the Greenville market, result-ing in relocations from other buildings.

Those relocations open additional office space, although many building owners will need to invest in and upgrade existing facilities to attract tenants, said CRBE.

Smith said that about 250,000 square feet in existing office buildings downtown will be coming available as tenants move to new space.

“There is a lot of activity,” he said. The existing buildings are “good space, but there will be work needing to be done” for new tenants.

Also, “the appeal of the Central Business District in Greenville is so well received that in the current market that there may be a modest

SAMPlING of ToP lEASE TRANSACTIoNS (*denotes NAI EARLE FURMAN Transaction)

Tenant: Size (Sf): Submarket: Address/building:Resurgent 85,208 Greenville CbD one liberty Squarefluor Enterprises, Inc. 35,500 Greenville Suburban 1001 keys Drive (renewal)*Regions bank 8,140 Greenville CbD 101 East washington Street (renewal)*o’Neal Inc. 6,600 Greenville Suburban 10 falcon Crest Drive (renewal)*

Tenant: Size (Sf): Submarket: Address/building:Sunbelt warehouse Corp. 195,594 Spartanburg 560-572 Gilliam RoadContec, Inc. 180,700 Spartanburg 5670 North blackstock Road*Southern Cotton 187,543 Greenville 2425 Rutherford Road (renewal)*higher Source Aviation 155,847 Greenville 46 beechtree blvd.Rockwell Medical Technologies 57,000 Greenville 604 high Tech Court (renewal)*Speedway Packaging 54,980 Greenville Greenville Distribution Center (renewal)*

Tenant: Size (Sf): Submarket: Address/building:Save-A-lot (renewal) 15,000 Spartanburg 550 South Church StreetCity Trends (renewal) 13,125 Spartanburg 550 South Church Streetout Reach Thrift Store 10,000 Greenville Suburban wade hampton blvd./Taylors PointDollar General (renewal) 9,014 Anderson 3309 Pelzer highwayTempus Jets* 3,320 Greenville CbD 531 South Main Street/falls Place

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UBJ Square feetCelebrating Success

For 80 years, Coldwell Banker Commercial Caine sales associates

have taken Upstate Real Estate personally. Join us as we celebrate

our Top Producers for 2012.

Pete Brett#1 Top Producer

David Sigmon#2 Top Producer

Tim Satterfield#3 Top Producer


Tyson Smoak and David feild represented RoD llC in leasing a 2,500-square-foot dental office space at 419 SE Main St., Simpsonville.

Glenn batson represented the landlord of 2615 Hwy. 153, Piedmont, in leasing a 5,000-square-foot industrial flex space to American Crane & Equipment Corporation.

John Staunton and hunter Garrett represented the landlord of 150 P&S Court, Duncan, in leasing a 5,000-square-foot warehouse/office space to builders wholesale Carpet Inc.

John Gray and Drew Stamm represented Rbo holdings llC in leasing a 66,645-square-foot industrial space at 223 Pine Road, Easley.

keith Jones represented the landlord of 3453 Pelham Road, Greenville, in leasing a 1,937-square-foot office space in Suite 205 to kopet and Associates PllC.

Grice hunt and John baldwin represented the landlord of 2118 Airport Road, Greer, in leasing

a 10,000-square-foot industrial space to Jim whitehead Tire.

Alexi Papapieris represented the landlord of the Union county Business center at 12737 E. Independence Blvd., Matthews, N.C., in leasing a 5,505- square-foot flex space to Marketing Advertising and Design Inc.

hunter Garrett and John Staunton represented the landlord of 101 W. St. John St., Spartanburg, in leasing a 7,236-square-foot office space to The Palmetto bank.

Stuart wyeth represented the landlord of 171-A Johns Road, Greer, in leasing a 4,320-square-foot industrial space. Tyson Smoak and David feild represented the lessee, Staples Contract & Commercial Inc.

Andrew babb represented the landlord of 148 W. Main St., Spartanburg, in leasing a 6,000-square-foot retail space to wild Ace Pizza & Pub. The restaurant plans to open April 1.

Stuart wyeth represented the landlord

of 101 N. Main St., Greenville, in leasing a 12,841-square-foot office space to Southern Management Corporation.

hunter Garrett and John Staunton represented the landlord of 2355 S. Hwy. 101, Units A & B, Greer, in leasing a 9,000-square-foot flex space to RofA Technology llC.

John Gray represented the landlord of 101 The Parkway, Greer, in leasing a 1,300-square-foot retail space to frankie’s Pizza Inc.

Jon Good represented the landlord of 803 N. Fant St., Anderson, in leasing a 2,044-square-foot office space to AnMed health.

Scott Jones represented the landlord of 300 Pelham Road, Greer, in leasing a 5,212-square-foot office space to k12 Inc.

Ted lyerly and Jimmy wright represented Skyview investments llc in the lease of 1,440 square feet of retail space at 1417 Laurens Road, Greenville, to Magic Nails.

NAI EARlE fuRMAN RECENTlY ANNouNCED

DEal of the WEEk

Stuart wyeth represented the landlord of 400 Executive Center Drive, Greenville,

in leasing a 30,124-square- foot office space to

AMEC E&C Services Inc.

UBJ Snapshot


1 The Peoples National bank (established in 1887) occupied

the northwest corner of west washington and laurens streets, where a livery stable had once operated. The exterior of the fireproof building was faced with winnsboro granite. Two terra-cotta plaques, bearing the image of an eagle, testified to the bank’s national charter. on the interior, much marble was used. In 1972, a high-rise Peoples National bank Tower was built on laurens Street where the Virginia hotel had once stood. by the time the new tower was completed, Peoples National had merged with

bankers Trust Company. In 1987, the bank joined with North Carolina National bank and later became part of bank of America. The sturdy building, shown in this photograph, was demolished about 1972.

To the left of the bank in this photograph is the wallace building or franklin National life building, which was also demolished in the 1970s. This five-story building had retail space on the street level and offices on the upper floors.

2 The former home of the Peoples National bank is now the

parking lot of the bank of America tower and location of construction trailers for the oNE project.

3 occupying the northeast corner of Main and Coffee Streets, the

Cauble building was a block north of J.C. Penney’s. built in 1905, this large building was built on the site where a wooden store had once stood. The corner spot, previously the location of a popular saloon, became the home of the bank of Commerce. The bank’s corner entrance was clearly defined by a rounded arch with a keystone and flanked by a pair of short Romanesque-style columns.

The bank of Commerce was a casualty of the financial problems that followed post-world war I boom. It closed its doors in 1926 with all depositors being paid in full.

4 by the middle of the 20th century, the exterior of the

Cauble building was covered by sheeting that completely obscured all architectural detail. In the 1980s, during restoration, the covering was removed. Today the building looks very much like it did when construction was completed in 1905.

AboVE “Remembering Greenville: Photographs from the coxe collection” by Jeffrey R. Willis; bElow Photos by Greg Beckner

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