SMPS Panel to Focus on Manufacturing

The Port of Charleston and the Upstate’s I-85 corridor – two undisputed economic engines of South Carolina united by the newly established inland port.

Volvo, Daimler and Boeing – three powerhouse manufacturers making blockbuster job announcements in the Lowcountry.

BMW, Toray & Michelin – three of the Upstate’s nearly 1,400 manufacturers pledging over $3.95 billion in new building construction and expansion projects in the Upstate in 2014.

What do these numbers mean for South Carolina’s manufacturing industry, specifically in the ten-county Upstate region? Will Greenville remain in the top ten list of “America’s Engineering Capitals”  (#6, Forbes, 2014) or will future growth head to the Lowcountry within the decade to come? Join representatives from South Carolina’s top manufacturing corporations and leading economic development officials on August 25^th for a panel discussion as they weigh in on the state of manufacturing with regard to business recruitment, supply chain development, recent investments and challenges/opportunities for the A/E/C industry.

Panelists include:

• Catherine Hayes, Executive Director, SC Automotive Council
• Andy Carr, Regional Vice President, SC Manufacturing Extension Partnership
• Max Metcalf, Government & Community Relations Manager, BMW Manufacturing
• Brian Gallagher, Marketing Director, O’Neal (Moderator)

O'Neal Expanding Operations

O'Neal is expanding its existing Greenville County headquarters.  The company's $5 million investment is expected to generate 60 new jobs in Greenville, SC.

Founded in 1975 in the Upstate of South Carolina, O'Neal has been successfully delivering industrial capital projects in the automotive, pharmaceutical and biotech, process chemical, manufacturing, energy and pulp and paper markets for four decades.  With operations in South Carolina, Georgia, and North Carolina, O'Neal serves Fortune 100 companies from its Greenville, SC headquarters.

Located at 10 Falcon Crest Drive, O'Neal will be remaining in its existing facility situated off of Interstate 385 in Greenville, SC.  Hiring for the new positions has already started.  Those interested in joining the O'Neal team should visit O'Neal's Career page.

"O'Neal has experienced significant growth by leveraging our long term client relationships and remaining focused on our industrial markets.  In 2015, we celebrate our 40th anniversary and this milestone continues to reaffirm our team members' commitment to project delivery.  These are definitely exciting times for O'Neal and its employee owners."- Kevin Bean, President and CEO, O'Neal.  

 "Today, we celebrate the success of one of our homegrown businesses.  Founded nearly four decades ago in the Upstate, O'Neal, Inc.'s decision to invest $5 million and create 60 new jobs in Greenville County is a testament to the strength of our workforce and our business climate and Team South Carolina's progress." - Gov. Nikki Haley 

"We're always excited to see an existing, South Carolina-based company succeed in our state.  Congratulations to O'Neal, Inc. on their latest expansion and the creation of these excellent job opportunities for the Upstate community." - Secretary of Commerce Bobby Hitt

"Engineering is an important driver of Greenville's vibrant economy, and we appreciate O'Neal, Inc. for its continued commitment to grow its headquarters and engineering services." - Dr. Bob Taylor, board member of the Greenville Area Development Corporation and chairman of Greenville City Council 

"O'Neal, Inc. has been a member of the City of Greenville business community since the 1970's and we are excited to hear of their new investment and expansion.  We appreciate their long-term corporate presence in the city and their continued commitment to Greenville through the creation of these new jobs and wish them many more years of continued success." - City of Greenville Mayor Knox White

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Incentives are Wise Investment for S.C.

The current debate in the General Assembly over economic development incentives for data centers has South Carolina residents once again thinking about the overall value of using tax breaks to encourage job creation. While we should always look closely at any legislative measure that could impact state revenues, it has been proven that South Carolina’s incentives strategy creates jobs and ultimately generates a net gain in tax revenue.

South Carolina has a rich heritage in manufacturing and textiles and we need to continue to cultivate a business climate where our manufacturing companies can thrive. But in addition, the Palmetto State needs to build upon this base to create an environment that is attractive to technology-oriented businesses that support the knowledge economy.

Data centers require millions of dollars to build and operate, represent a significant capital investment in a community and create high-paying jobs. The incentives packages offered to manufacturers don’t necessarily translate to high-tech businesses. Data centers would gain more benefit from incentives tied to sales taxes on computer equipment, software and electricity.

When choosing to invest in a new location and create jobs, companies look at many factors — real estate, workforce, transportation infrastructure, utilities and more — but to think that incentives are not part of the mix would be naive. As businesses and their site consultants work through the complicated process of selecting a location, millions of their own dollars are on the line.

Having a competitive, up-to-date incentives package that helps present South Carolina as a location where business can thrive is crucial.

Our neighboring states are very aggressive when it comes to providing incentives. We need to be competitive. Some may fear that South Carolina will be drawn into an “arms race” in which businesses play states against each other to receive ever-larger tax breaks, but with so many other factors coming into play, the reality is that companies can’t make location decisions based on incentives alone.

Still, at a time when state and local budgets continue to be tight, can we really afford to offer new tax breaks? The answer is simple: economic development incentives that create jobs and attract corporate investment result in spending that brings in more tax dollars than are paid out. There is an increase in opportunities for local suppliers, vendors and service providers as those dollars circulate through the community — a rising tide that lifts the quality of life and creates opportunities for everyone.

For example, a cost-benefit analysis of the incentives package offered to online retailer Amazon.com determined that incentives would cost the state $25 million over 10 years but yield $1.7 billion in revenue over the same period.

The calls for fiscal austerity in all matters of government have been loud, but when confronted with that kind of data, many of the arguments against incentives seem penny wise and pound foolish.
The good news is that most of our state’s economic development incentives come in the form of tax credits that are directly tied to investment and job creation. For example, a payroll tax credit may not be triggered until a certain hiring threshold is met. If the business doesn’t create the jobs it promised, it simply won’t qualify for credits.

Furthermore, economic development incentives are not solely designed to attract companies from outside our state. Incentives also reward existing businesses that invest and create jobs in South Carolina. A company such as Michelin, which has been in South Carolina since the 1970s, has continued to hire workers and build new facilities, helping to make our state No. 1 in the nation in tire production. Many “born in South Carolina” companies have received assistance from incentives packages that helped them grow here without having to look for friendlier environments elsewhere.

Just as the recruitment of BMW 20 years ago helped lead to a blossoming of automotive-related job creation in South Carolina, high-tech companies can help position our state in the knowledge-based economy for the next 20 years. They will attract like-minded companies that want to do business with each other and establish South Carolina as a place where high-tech firms can succeed. Modernizing our incentives program to fit the knowledge-based economy is an important step in that direction.

Brian Gallagher is director of marketing and Shane Bolding is Industrial Manufacturing SBU Leader for O’Neal, Inc., a Greenville-based integrated design and construction firm.

This article originally appeared in the
Greenville News on May 25, 2012. 

Written by
Brian Gallagher and Shane Bolding

www.greenvillenews.com 

Impact of Union Activity in South Carolina

Despite a miniscule union footprint in South Carolina, the construction industry is lobbying state lawmakers to take stronger steps to suppress union activism.

“We’ve seen what is happening with Boeing and the NLRB (National Labor Relations Board). I think we all realize South Carolina is on the radar of the unions,” said Leslie Hope, S.C. government relations director of the Carolinas Associated General Contractors.

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At issue now are so-called project labor agreements strongly supported by an executive order President Obama issued in 2009. PLAs are similar to collective bargaining agreements that establish upfront the rules and wages for all employees on a project.

Critics argue the agreements can drive up construction costs and scare away nonunion contractors from bidding on projects. Proponents say PLAs ensure reliable labor and deliver projects on time and on budget.

Obama’s executive order did not mandate PLAs, but it suggested they be used on all federally funded construction projects exceeding $25 million.

The Army Corps of Engineers is taking testimony from construction companies about potentially using PLAs on the barracks project at Fort Jackson, said Bill Caldwell, president of Waldrop Mechanical Services in Spartanburg.

Another S.C. project that could be subject to a PLA is the eventual construction of a new federal courthouse in Greenville, said Brian Gallagher, Upstate chairman for the Associated Builders and Contractors Carolinas Chapter and director of marketing for O’Neal Inc. in Greenville.

“What we see and we fear is today its $25 million, by executive order by President Obama, but it only takes a strike of a pen to lower that amount to $20 million, $10 million,” Gallagher said. “It’s going to shut out most of the construction companies in South Carolina from even bidding on the work.”

Other states have fought PLAs without success. Michigan enacted a ban on PLAs that was ruled unconstitutional by a federal judge in February. An appeal is expected.

South Carolina lawmakers are pursuing a similar measure that would prohibit project labor agreements on any publicly funded projects. It’s a provision of the “Right to Work Act of 2012," or House Bill 4652, that has already garnered Gov. Nikki Haley’s support. The House passed the legislation 70-19.

“I thought it was much to do about nothing,” said Rep. Chandra Dillard, a Greenville democrat who voted against the bill. “South Carolina already has a really low union environment. I see this as a very divisive conversation that often occurs in Columbia around election time to divert our attention from the real issues in South Carolina – funding education and transportation infrastructure.

“At the very end of the day, is it so bad that people are making a living wage if they’re working for a union?” Dillard added.

Caldwell called PLAs a threat to his livelihood and career, saying they prevent his company from competing for projects.

The union membership rate in South Carolina is 4.6%, one of the lowest in the nation, according to data from the U.S. Bureau of Labor Statistics. But unions are attempting to organize here, Caldwell said. Waldrop employees have found union fliers on their vehicle windshields when leaving job sites, he said. That organization quickly died though.

Still, Caldwell, Gallagher and Hope all agreed that South Carolina is likely to be a union target following NLRB’s unsuccessful challenge to Boeing’s decision to build a plant in North Charleston. The NLRB’s complaint argued that Boeing’s decision was retaliation against the Machinists union for past strikes. NLRB dropped the case shortly after Boeing and the Seattle-area union ratified a new contract.

“The threat of union organization coming south and infiltrating South Carolina is growing because of that,” Caldwell said.

This article was writer by Scott Miller and originally appeared in the GSA Business on March 12, 2012.

http://www.gsabusiness.com/news/43077-construction-industry-fears-union-action