Your Business Resource for Columbia and The Midlands

Since January 2011, the South Carolina Department of Commerce has announced more than 2,600 jobs expected in the next six months to six years. The S.C. Department of Employment and Workforce recently reported that the state’s unemployment rate dropped to 9.9 percent in March — under 10 percent for the first time in two years, and down from an all-time high of 11.8 percent in 2009. Recent announcements of multi-million dollar investments from the likes of Michelin and organic foods producer Amy’s Kitchen have made headlines statewide. In the Midlands and throughout the state, there are several key players when it comes to job creation, new business recruitment and economic development in general. All are working to make sure the citizens of South Carolina are well poised for economic success.

SOUTH CAROLINA DEPARTMENT OF COMMERCE
Securing the Deals

Bill Cronin leads the Global Business Development Division at the S.C. Department of Commerce. He came to South Carolina four years ago after serving 10 years with Enterprise Florida, a public-private state partnership which promotes economic development. Cronin reports directly to the Secretary of Commerce (Bobby Hitt, previous manager of corporate affairs at the BMW Manufacturing Company in Spartanburg) and leads the agency’s team of project managers to generate new development and explore expansion opportunities with existing businesses.

“We have a team of 10-12 members who actively recruit new business, but a lot of our leads and projects come directly from companies themselves,” says Cronin. “CEOs and CFOs often call to say they’re thinking about South Carolina — they’ve heard about us from friends or colleagues, recognize our pro-business attitude and are serious about moving. Situations like that certainly give us an advantage over cold calling, and we respond immediately. Our first goal is being included — these people are looking all over the U.S. Once we’re included, our goal is differentiation.” Cronin says there are a couple of reasons why most companies decide to move.

“Either they’re hurting somewhere else due to unions, the high cost of taxes and utilities, maybe a workforce shortage, or they want to make more money — or both. The Southeast is the fastest growing market in the country right now. We can show [these companies] how we’re going to alleviate that suffering and provide opportunities to improve profits.” Instead of waiting for these interested business leaders to visit South Carolina, Cronin says what sets the state apart in terms of successful recruitment is that members of his office go to them.

“We want to clearly understand what they want this to look like physically and fiscally, so we fly out to meet the company leaders, see their existing facilities and understand their corporate culture. It helps us determine their building needs, the scope and size of the project, and what factors will make them successful in South Carolina. There’s not really a home court advantage in this business. Going there really differentiates us from other states.”

After a high level conversation for initial details and 24/7 access to him for any questions, Cronin says each potential recruit is assigned a project manager who continues asking questions to hone in on a specific region to support the company’s goals.

“South Carolina has always done well in recruiting new business and diversifying its economy. Certain areas can handle a sizeable workforce; others might be able to provide specific skill sets, close proximity to customers and suppliers, or significant cost savings in pre- or post-production,” says Cronin. “Throughout the recruitment process, hundreds of questions help us narrow it down to one location. Unless they say ‘I need to be within five miles of the port of Charleston,’ we don’t favor one region over another. It’s really a statewide effort to make each deal a success, no matter where they end up. Individual counties have a stake in the game, too — they can offer abatement, highly competitive fees in lieu of tax or lock in millage and assessment rates. In order to provide our best comprehensive package and offer bottom line savings, we must have their input as well.”

CENTRAL SC ALLIANCE
Promoting the Midlands

In the Midlands, the Central SC Alliance is working on behalf of nine counties (Calhoun, Clarendon, Fairfield, Kershaw, Lexington, McCormick, Newberry, Orangeburg and Richland), the city of Columbia and the University of South Carolina. Founded in 1994, the 501(c)(3) not-for-profit public/private partnership is focused on “the recruitment of capital investment and job creation in the Central region of South Carolina, [with a] core mission to assist companies in locating or expanding — and with finding solutions — that match with the Alliance theme of creating wealth and prosperity for all citizens.” Mike Briggs is president and CEO; Jim Apple, chairman and CEO of First Citizens Bank, serves as Alliance chairman.

“This is definitely a team sport — it takes all of us to create and attract new jobs to the area,” says Briggs. “We work shoulder to shoulder with the Department of Commerce, as well as our county representatives in economic development. Since 2008, when most economists say the recession began, we’ve announced $1.4 billion in capital investment and 7,800 jobs. We’ve attracted high profile companies like Starbucks, Aflac, The Home Depot, Target and Verizon [among many others]. Such an attractive group of companies is a testimony to the overall economic climate in the Central region. Compared to other places in the country, we’re doing quite well.”

“Creating jobs is truly one of the noblest pursuits we can have, next to faith and family. A good job gives meaning and dignity to all of us,” says Apple. “As chairman, I’m committed to doing what I can to collaborate with partners throughout the Midlands. We feel a great responsibility to all citizens, and always welcome ideas and input.”

With a footprint of 6,617 square miles, 286 miles of interstate, population over 900,916 (according to a 2010 estimate) and over 460,000 in the workforce, Briggs says the center of the state is ideal for companies looking to relocate or expand.

“Our ability to effectively move people and product makes us a very attractive location for business,” says Briggs. “We have 40 percent of the interstate infrastructure of South Carolina, a great regional airport, and close proximity to an international airport in Charlotte and the port of Charleston. Within our region, you can still travel 30 miles in 30 minutes, or park your car downtown and walk to corporate offices, restaurants, retail shops and recreation venues. There aren’t a lot of places in the world where you can still do that.”

The Alliance is also a full-service agency, doing much more than just marketing the Midlands. Other services include research, project management and administration, product development, incentive negotiation, project performance and labor analysis, RFP response and assistance to new and existing industry. Target industries include aerospace, biosciences, electronics, information technology, automotive, food processing, healthcare, renewable energy, and transportation and logistics.

“We see several emerging themes in economic development that not only depict what’s happened in the past, but also what will craft the future,” says Briggs. “Many companies are consolidating and being told to cut costs. We have cost-effective sites and buildings in good stead. The euro is approaching $1.50, and there is renewed interest in ‘right-shoring’ — bringing outsourced jobs back to the U.S. In terms of distribution, the expansion of the Panama Canal should be completed in the next few years, putting the entire Southeast in a good position to benefit. We expect to see a boon in the health care industry, as a huge bubble of aging baby boomers move through the population. When things like this happen, we are well-positioned to provide options that will bring jobs and new business to central South Carolina.”

THE CITY OF COLUMBIA
Building a Knowledge Economy

The City of Columbia Economic Development department is a “coordinating organization that helps people get things done by putting them in touch with the right resources and providing good information.” With career experience in banking, construction, marketing and business development, Jim Gambrell has served as Columbia’s director of economic development since 1993.

“We are all about creating good paying jobs, growing the tax base, and encouraging people to invest in the business community here in Columbia,” says Gambrell. “Our job is to also help foster a positive business environment. We accomplish these goals in three ways: by helping established companies grow and expand, recruiting new companies into the City, and starting new companies by supporting entrepreneurship. I like to call it our ‘triple option.’

“We’ve been moderately successful in these hard economic times, and we have small below-the-radar victories all the time — announcements of 15 or 30 jobs don’t make the headlines as much as the larger numbers do. In the Midlands area, the City is the hub of the whole region and a magnet for corporate, legal and technology offices that need the resources we can provide.” In making Columbia a more valuable place to do business, Gambrell says partnering with organizations like the Central SC Alliance and other groups benefits everyone involved.

“Economic development is a team sport, and a rising tide floats all boats. It’s unlikely that we will be able to attract a big manufacturing company to locate here in Columbia, but we do try to promote company locations in Richland and Lexington counties because we serve parts of these areas with our water and sewer systems. If the counties do well, then the City is going to benefit too.

“We don’t have cheap land or cheap labor — we have to do something different. From Main Street to the Vista, more and more people are embracing the idea of living downtown, which adds incredible vitality to our City Center. It’s also much more economical to develop where you already have the supporting infrastructure, water, sewer and streets to make things happen. By concentrating on companies in the ‘knowledge economy,’ we’ve made huge strides in creating a successful and viable downtown area where companies will want to locate their corporate headquarters. Most of our buildings are fairly well occupied, and we’re working hard to address challenges like parking and finding a single tenant for the 400,000 square foot Palmetto Center.”

readySC™
Training the Workforce

Established in the early 1960s as a state economic development training incentive, readySC™ is the flagship program of the S.C. Technical College System and provides recruiting, training and project management to companies relocating to or expanding in South Carolina to help build their initial workforce. Funded entirely by the state, readySC™ only works with companies that are making a significant investment in the area and creating new jobs that provide competitive wages and benefits packages.

“readySC™ was designed to guarantee that South Carolina could remain competitive through changing economic circumstances,” says Director Kelly Steinhilper. “The recruiting and training that we provide on a daily basis — and have provided for the past 50 years — has built the necessary confidence in South Carolina’s workforce that prospects need.”

Recent projects in the Midlands include trainings for Interstate Container, Akebono Brake, DHL and Michelin.

“In addition to these projects, we’re working with local economic developers, regional alliances and the Department of Commerce on eight prospects with the potential to bring 1,000 new jobs to the area,” says Steinhilper. She explains the program’s unique “3D process of Discovery, Design and Delivery.”

“To start, readySC™ will assign a project team composed of various experts to generate an understanding of the client’s specific needs and to develop a plan to meet those needs. During this discovery phase we’ll determine the skills, knowledge and abilities needed by the local workforce.

“Based on the information gleaned during the discovery process and the company’s critical input, readySC™ will partner with the organization to develop the recruiting process and training curriculum. Training is customized to best meet the needs of the company and reflect the work environment in which the candidates will be working.

“The project team will then develop the resources needed to execute the recruiting and training plan, and deliver all aspects of project plan. This includes all activities required to recruit and assess potential job candidates.”

Since 1961, readySC™ has worked with some 2,000 companies and trained more than 256,000 workers. In the last fiscal year (2008-2009), more than 5,000 employees were trained and 83 companies were served.

SUCCESS
A Team Effort

Bill Cronin sums up the goal of his own agency as well as all of those involved in creating jobs and recruiting high-profile companies to South Carolina.

“Companies don’t move or expand every day. When they do, they need access to all levels of leadership. It’s not a typical ‘9 to 5’ job — it’s a 24/7 thing for economic development. A lot of what we do is confidential and behind the scenes, but it’s very demanding work. Many don’t get the accolades and kudos they deserve for duties including site visits, negotiations, and speaking on behalf of the whole community. Without the support of local economic development partners and organizations, we couldn’t do what we do at the state level. We only hear about the wins, but economic development is vital to every community. On a state level, a loss for one is a loss for all, and we need to continue to support each other.”