South Carolina's Media Engine for Economic Growth

SCBIZ 2008 - Issue 2

Fuel, reduced shipping add to truckers' woes

Scott Adams, president of AM-Cell Trucking, shrugged as he reflected on the state of the trucking industry. “It’s pretty tough, that’s for sure,” he said. “Pretty tough” translates into fuel prices that have nearly doubled in a year and fewer containers moving through the port, which means a slowdown in business for the trucking companies that gear up to transport those boxes to their destinations.

Michele Holland, business operations manager for the German manufacturer Richard Fritz Group, is out of breath. The company officially announced the establishment of its first U.S. plant on Feb. 1, which opened and began production in just four months. Holland now oversees the day-to-day activities of a lean operation that produces glass encapsulation, and plastic moldings, components and modular systems for the automotive industry. Her days are hectic, but she spares a moment to explain how Richard Fritz chose Duncan, in Spartanburg County, as the place for its first U.S. manufacturing plant.

Taking flight

When presidential candidate Barack Obama flew to South Carolina for a stop on the campaign trail, his plane passed right by Greenville-Spartanburg International Airport. Why? Because a more convenient, and discreet, air facility was available. That place was Donaldson Center Industrial Air Park. Located just three miles off Interstate 85 in Greenville, the air park has an 8,000-foot runway capable of handling any size aircraft, even commercial aircraft. Peter Cevallos Jr., the airport’s manager, said Obama’s chartered plan was of a size comparable to a Boeing 737, which demanded a long runway.

For companies such as Daimler Chrysler Corp., Bosch and Ford Motor Corp., getting supplies to the right place at the right time is more than a critical success factor. It is the foundation of the manufacturing process, particularly in the automotive industry, which relies so heavily on timelines and delivery schedules to meet production goals. It wouldn’t be the first time industry sought ways to get more done with less in a more efficient manner. All of manufacturing seems to be in a permanent state of self-improvement, with a series of tools and systems to increase productivity and efficiencies in processes.

Focused on the future

The large blue and white cranes that rise over Charleston’s waterfront on the Cooper River are more than constant reminders of the maritime history that links South Carolina’s past to its economic future. When each of the cranes at the Wando-Welch Terminal East of the Cooper is in the horizontal position — the “working” position that allows cranes to move containers on and off the ships — it means there is work being done at the port.

A bi-state commission charged with hammering out a definitive plan for a new cargo terminal in Jasper County held its first informal meeting in March, almost one year to the day after the governors of South Carolina and Georgia agreed to work together to improve their respective state’s position in the global marketplace. And while this meeting of the Jasper Ocean Terminal Joint Project Office may signal the beginning of the development of the terminal, there’s still a long, long way to go before cargo containers begin to be lifted off ships and placed on a dock on the South Carolina side of the Savannah River.

Linking two worlds

Few similarities are found between the wind-swept desert surrounding the city-state of Dubai and the lush farmland surrounding the city of Orangeburg. The exception, however, is the availability of land. It was land in Dubai from which arose an 81-square-mile free trade zone known as Jebel Ali that houses a port, warehouses and manufacturing facilities. And it is 1,300 acres of land from which will arise a similar, albeit smaller, version outside of Orangeburg.

Super(delegate) size me!

Political power couple Carol and Don Fowler will most likely be called on to help decide the Democratic presidential nominee. They are two of South Carolina’s eight superdelegates, and like most of the country voting in the Democratic race, they are divided in their support. Carol Fowler, chairwoman of the South Carolina Democratic Party, has pledged her support to Illinois Sen. Barack Obama. Don Fowler, former Democratic National Committee chairman during Bill Clinton’s presidency, supports New York Sen. Hillary Clinton.

Government-funded R&D goes mainstream

After a young girl in the Upstate lost her leg in a boating accident, she was fitted with a prosthetic that is lighter, easier to maneuver and less expensive than traditional prosthetics. This new technology will enable her to return to normal activities quickly and manage her disability with ease because there will be less adjustments and fewer replacements throughout her life. During research and development of this technology, the end user the developers had in mind was not a young girl skiing on Lake Keowee but rather the warfighter losing an extremity from a roadside bomb.

NASCAR: A darling of the South

Three years ago, Darlington and the surrounding area suffered a significant economic blow when NASCAR shifted its Southern 500 race to the California Speedway in Fontana. Frank Willis, mayor of the nearby city of Florence, said the loss hit his town hard, to the tune of about $30 million. “We were devastated when we lost the September 500 race,” he said. “But losing that race got our attention and let us know that we’d better do what we can to keep the track from going under."

A quiet but rapidly growing industry is thriving in South Carolina, making it the third largest market of its kind in the United States and the 10th largest in the world. The industry? Captive insurance, which in the simplest terms is an insurance company owned by the parent company to underwrite its subsidiaries’ property and casualty insurance needs.
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