2012 Annual Report

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2012 Annual Report
2012 Annual Report
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NESA Supporters
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NESA EXECUTIVE COMMITTEE
Mr. Billy Alford
A&I, Inc.
Rep. Jim Battle
J.R. Battle and Co.
Dr. Fred Carter
Francis Marion University
Dr. David DeCenzo
Coastal Carolina University
Mr. Fred DuBard
Retired, Crown Beverages
Senator Hugh K. Leatherman
State Senator
Senator J. Yancey McGill
State Senator
Mr. Doug Wendel
Carolina Consultants, LLC.
Rep. William D. Witherspoon
Retired, State Representative
Mr. Frank Willis
Willis Consulting Company
NESA Board and Investors
NESA BOARD
Mr. W. Stuart Ames
Progress Energy
Mr. John Q. Atkinson
Marion County
Mr. Billy Baldwin
Darlington County Council
Mr. Tom Bouchette
Myrtle Beach Area Chamber of Commerce
Mr. James Brogdon
General Counsul, Santee Cooper
Mr. Frank J. Bullard
BB&T
Mr. Brad Erwin
Farmers Telephone Cooperative
Mr. Mike Hagg
Horry Telephone Cooperative
Mr. Benjy Hardee
Grand Strand Water and Sewer Authority
Mr. Sel Hemingway
Georgetown County
Mr. James “Pat” Howle
Horry Electric Cooperative
Mr. Daniel H. Issac, Jr.
A&I, Inc.
Mr. Floyd Keels
Santee Electric Cooperative
Mr. Ron Munnerlyn
Marlboro County Council
Mr. E. LeRoy Nettle, Jr. Esq.
Pee Dee Electric Cooperative
Mr. Stanley Pasley
Williamsburg County
Mr. Crawford Moore
Chesterfield County
Mr. Roger Schrum
Sonoco
Ms. Kathy Heustess
ArborOne Farm Credit
Ms. Faith Reynolds
Bluecross Blueshield
Mr. Tom Rice
Horry County
Mr. K.G. “Rusty” Smith, Jr.
Florence County
Mr. Marvin Stevenson
South Carolina Probation, Pardon and Parole Board
Mr. Doug Wendel
Mr. Clay Young
Dillon County
Private Sector
Supporters
• ArborOne Financial
• AT&T
• BlueCross BlueShield
• Burroughs & Chapin Company
• CDM Smith
• Farmers Telephone Cooperative
• Grand Strand Water and Sewer Authority
• Honda of South Carolina
• Horry Electric Cooperative
• Horry Telephone Cooperative
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• Marlboro Electric Cooperative
• Myrtle Beach Area Chamber of Commerce
• Nexsen Pruet
• Pee Dee Electric Cooperative
• Pepsi
• Progress Energy
• Santee Cooper
• Santee Electric Cooperative
• Sonoco
• Wells Fargo
PRIVATE INVESTORS
Mr. Brant Branham
Myrtle Beach Area Chamber of Commerce
Mr. James E. Brogdon
Santee Cooper
Mr. Brad Erwin
Farmers Telephone Cooperative
Mr. Benjy Hardee
Grand Strand Water and Sewer Authority
Mr. Mike Hagg
Horry Telephone Cooperative
Mr. James D’Alessio
BlueCross BlueShield
Mr. Roger Schrum
Sonoco
Mr. Bill Fleming
Marlboro Electric Cooperative
Mr. Floyd Keels
Santee Electric Cooperative
Mr. James “Pat” Howle
Horry Electric Cooperative
Mr. E. LeRoy Nettles, Jr. Esq.
Pee Dee Electric Cooperative
Mr. John D. Bankson, Jr.
Wells Fargo
Mr. Jeff Helton
Honda of South Carolina Manufacturing
Ms. Kathy Heustess
ArborOne Farm Credit
Mr. Frank Avent
Pepsi Cola of Florence
Mr. Robert B. Ferrell
CDM Smith
Mr. Bobby Holland
SCANA Corporation
Ms. April C. Lucas Esq.
Nexsen Pruet, LLC
Public Sector
Supporters
• Chesterfield County
• Darlington County
• Dillon County
• Florence County
• Georgetown County
• Horry County
• Marion County
• Marlboro County
• Williamsburg County
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A Message From NESA
As we look back on 2012, it can un-
equivocally be said great strides were
made in the NESA region. As the organization continued to expand and
develop, the region as a whole has
reaped the benefits.
With more than $326,263,000 announced in new capital investments
and more than 1,477 announced new
jobs, our region has continued to
make great strides and is quickly becoming an economic destination.
In 2012, NESA expanded its economic development efforts by investing
time and effort into expanding existing industry within the NESA region.
With a goal of strengthening business
relationships among existing companies, the region was better positioned
annualreportfinal.indd 7
to compete for expansions and consolidations, resulting in an overall increase of jobs and capital investment.
Throughout the year, NESA staff met
with existing industry executives on
33 separate occasions, creating an
awareness of how NESA can assist
them in expanding throughout the
region.
Lead generation became a top priority for the NESA staff as well, with
more than 60 leads being worked
throughout the year. This positioned
the region to compete for more than
$3,307,975,000 in capital investment
and 18,507 new jobs.
I would like to express my gratitude
on behalf of this organization and the
people of this region to our private
sector supporters because without
you, we would not be able to continue
expanding our efforts to seek new opportunities for our region to compete
for additional jobs and new capital
investment.
Your support is greatly appreciated
and we look forward to continuing to
build our relationship with you in the
future.
Senator J. Yancey McGill
Chairman of the NESA
Executive Committee
In 2012, NESA made a commitment
to develop a more effective way to
showcase our region’s workforce capabilities.
In 2012, more than 1,477 announced
jobs and $326,263,000 in new capi-
4
and regional knowledge to provide
our investors, county allies and the
citizens of our region with unmatched
economic opportunities.
We are committed to working with
our county and state economic development organizations and delegations to identify opportunities for
the NESA Region and to make these
opportunities a reality.
I look forward to working with each
of you in 2013 to continue making
our region the best it can be.
Jeff McKay
NESA Executive Director
tal investments in the region resulted
from the expansion of 23 companies.
NESA also continues to work with additional projects and prospects.
In 2013, NESA will once again increase its efforts to bring additional
economic opportunities for our nine
member counties in an effort to further compete for jobs and capital investment.
NESA will look to continue to use our
connections, research capabilities
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Organizational Overview
Chesterfield
Chesterfield
County
1
52
73
Bennettsville
Marlboro
County
Mission Statement
Darlington
County
301
Dillon
NESA’s
Darlington
20
Dillon County
75
95
Marion
9
mission is to
Horry
Florence
Marion
work with existing county and state
economic
County
County County 501
development organizations to createConway
new jobs and
378
52
increase the per capita wage of the
citizens of the
Myrtle Beach
North Eastern region
of South Carolina at a rate
Williamsburg
County
faster than per capita
growth rates for 17the state and
701
Kingstree
the nation.
Florence
521
Georgetown
County
Georgetown
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Organizational Overview
Service
to
6
Clients
The NESA staff has the resources and expertise to assist companies interested in relocating or expanding in the region. Our services include:
• Regional site selection – NESA works to identify the best buildings or sites based on our clients’ needs. From there, extensive
research and guided site tours with county economic developers allow companies to make fully educated decisions that will help them
make a commitment to the region.
• Regional Demographic and Socioeconomic Data - NESA has access to numerous databases95and research resources that are used
to provide up-to-date information to help clients make informed decisions about locating
a facility in the region.
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• Coordination with State and Local Permitting Entities and Utilities
Florence
• Facilitation of Community briefings, Custom tours, and Building or Site Tours
• Incentives – NESA coordinates with its county allies and the South Carolina Department of Commerce to develop competitive
incentives packages.
• Workforce – Resources offered by the region’s three universities and four technical colleges, along with ReadySC, provide companies
Myrtle
Beach
with a world-class workforce that will ensure our clients profitability and success in the region
for years
to come.
Service
to
County Allies
NESA’s core services to its county members include:
Georgetown
• Product Development – NESA supports its counties through product development assistance and initiatives.
• Research – NESA maintains up-to-date information that can be used for RFI’s26 and will also assist each county with preparing these
documents for companies and consultants. In addition, NESA subscribes to a proprietary database of nearly 14 million companies
worldwide and will use this database to assist county allies in their lead generation and research efforts.
• Marketing – NESA markets the region locally, domestically, and internationally and provides its services to each county economic
development group for specific marketing projects.
95
Business
Development
–
NESA
encourages
its
local
economic
developers to participate in its domestic and international business
•
development missions. These missions are organized, planned, and executed by NESA.
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2012 Year at a Glance
7
Business Development
The goal of all business development activities performed by NESA
is to bring opportunities for job creation and capital investment to
the region. These activities include direct contact and relationship
building with companies, consultants, brokers, the South Carolina
Department of Commerce, NESA county economic developers and
other allies. Business development activities are pursued on the local,
national, and international levels in a concerted effort to provide an
awareness of the assets and opportunities of the NESA Region.
Visit
Development
Page 9
Existing
Industry
Page 8
Regional
Consultant
Visits
Page 11
Regional
Workforce
Business Case
Development
Page 9
Research
Page 8
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Project
Activity and
Lead
Generation
Page 10
Product
Development
Page 12
Recruiting
Efforts
Page 13
2012
Announcements
Page 14
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Existing Industry
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NESA continued its existing industry outreach program in conjunction with our local economic
developers. The purpose of this program is to create goodwill among existing companies, allow the
region to better compete for expansions/consolidations that could occur within the NESA Region
resulting in a net increase and retention of jobs and capital investment. Another goal is to develop the
existing industries of the region as key selling advocates for new business prospects and to generate
additional leads from within industry peer groups.
In 2012, the NESA staff met with 33 existing industries throughout the region, making them aware
of our services and assuring them that we are here as a resource to assist them in growing and
expanding their presence within the region. NESA also works to connect existing industries for potential
customer/supplier relationships.
Research
NESA has become well-established as the primary source for regional economic information including demographic and workforce
data. In 2012, NESA provided research assistance to the counties on more than 150 occasions. NESA research and client relationship
management resources include:
• Microsoft
•
•
•
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Dynamics Client Relationship Manager (CRM) – allows
staff to more effectively collaborate on projects, track, follow up, and report on
project activity and company contacts
OneSource Business Browser – contains information on nearly 13 million
companies worldwide and allows NESA staff to perform customized company
research to support county efforts and augment internal lead generation
JobsEQ – contains extensive demographic and workforce information; used
to support workforce business cases for projects and to provide regional
economic information to key stakeholders and others
ESRI – allows for radius searches, drive time searches, mapping, and custom
reports based on labor, income, market potential, and other factors
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Regional Workforce Business Case Development
Workforce has become one of the most vital site selection factors. Communities that are prepared to answer questions
about their workforce win projects and those that are not prepared don’t win. NESA contracted with Kate McEnroe
Consulting, a widely renowned Atlanta based business consulting firm to develop a comprehensive business case for the
workforce of the NESA Region. The objective of this project is to strengthen the ability of the NESA region to respond to
requests from existing businesses and new prospects for information about the region’s labor force.
The first parameter of the study involved extensive database research and data collection from local sources such as
county economic development entities, existing industries within the region and other major employers. The second
parameter of the scope of services was industry-specific detail. The labor market dynamics of the following industries
will be developed in detail: aerospace, agribusiness (specifically focused on food processing and wood products), call
centers, data center, distribution and logistics, plastics, and metals. This business case will reduce the need for and
expense associated with future labor studies as it will provide each county will an updatable template that can be
customized by target industry sector.
Visit Development
NESA has aggressively promoted the region for visits by companies and consultants with
economic development projects. Staff has hosted companies and consultants in the region on
50 separate occasions in 2012.
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Project Activity and Lead Generation
NESA worked 63 leads during 2012, assisting the
region in competing for $3,307,975,000 in capital
investment and 18,507 new jobs.
The graphs to the right and below show the source
of the leads and types of industries represented.
The top industry generating project activity in 2012
for the region was agribusiness (food, alternative
energy, wood products), with 14 projects.
10
NESA - 32%
Source
of 2012
Leads
Commerce - 42%
Counties - 25%
2012 Leads by Industry Sector
Wood
Products- 6
Alternate
Energy - 2
Manufacturing - 8
Metal - 10
Assembly - 1
Call
Centers - 7
Automotive - 2
Foods - 6
Plastics - 2
Distribution - 6
Aviation - 7
Pharma - 1
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Building
Products - 1
Other - 2
Textiles - 2
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Regional Consultant Visits
In order to make the region more competitive for economic development projects, NESA invites site selection consultants to visit the
region, critique what they see, and give us feedback on making the region more competitive for winning projects in the industry sectors
that they represent. This program complements our target industry strategy and business development efforts. NESA hosted five (5)
consultant events in 2012 that focused on economic development preparedness and strategies for marketing the counties of the NESA
Region for economic development projects in specific industry sectors.
• In June 2012, NESA hosted Frank Spano, Director of Austin Consulting, in the region to discuss the region’s ability to attract
agribusinesses and food processing opportunities to the area. Mr. Spano conducted a simulated request for information (RFI) exercise
with all of the NESA counties and provided insight into what sorts of things site selection consultants need to see in our responses.
The goal of this exercise was to increase the competitiveness of the region by evaluating current methods for responding to RFIs and
implementing changes as needed. Austin Consulting has located numerous food processing companies around the world with
marquee names such as Dole, Fresh Express, George Weston Bakeries, Ghirardelli and New Belgium Brewing. NESA maintains an ongoing
relationship with Austin Consulting and is currently working with them to secure certification for the first food processing site in South
Carolina.
• In August 2012, Kate McEnroe visited the region to begin developing a workforce business case for a 30-60-90 mile radius of each NESA
county seat and for the region as a whole. Regardless of what locations are being considered, workforce availability and skills sets are
major concerns for companies that seek to invest in new facilities. In addition to providing a general labor analysis, the final product will
focus on NESA’s target industry sectors which include aerospace, agribusiness (alternative energy, food processing and wood products
manufacturing), call centers, data centers, distribution and logistics, plastics, and metal products manufacturing. Some of McEnroe’s
past clients include Aetna, Embarq, Hilton and Sprint/Nextel. McEnroe plans to finalize her work in the NESA Region in January 2013.
• In October, NESA hosted Chris Lloyd of McGuire Woods Consulting in the region. Mr. Lloyd specializes in industrial site selection
and economic development incentives negotiations. Mr. Lloyd met with each of the NESA counties to discuss strategies for developing
competitive county incentives programs and to discuss his overall impressions of current programs. Mr. Lloyd also visited numerous
industrial sites in the region and provided good feedback to NESA and the counties regarding the marketability of those sites and what
kinds of industries would potentially consider them. One of Mr. Lloyd’s more recent projects was the Starbucks roasting facility which
will create 140 jobs and more than $170 million in new capital investment in Augusta, Georgia.
• In November, NESA hosted Dexter Rodriguez of Austin Consulting for a tour of the region. Mr. Rodriguez specializes in manufacturing
projects and met with NESA staff to discuss the viability of some of the larger sites in the region for major projects. He also provided insight
as to what other communities are doing to attract projects to their areas.
• In November, NESA hosted Tim Feemster of Newmark, Grubb, Knight and Frank. Mr. Feemster specializes in distribution and
logistics. During his visit, he discussed how the region can be better prepared to win projects within that industry and identified strategies
for marketing key industrial sites.
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Product Develpment
12
The first step to successfully bringing jobs and investment to the region is having product to sell. NESA
is proactive in working with county and statewide entities to promote product development throughout
the region. A few of the ongoing product initiatives in the region include:
• Food Processing Site Certification – NESA
contracted with Austin Consulting to have
two sites certified for the food processing
industry.
This project constitutes a pilot
project for the state. Information on all of the South
Carolina Department of Commerce certified
sites within the region was submitted to Austin
Consulting. Austin reviewed the information and
selected the Pee Dee Commerce City Park in
Florence County and the Marion County
Industrial Park as the pilot sites for the program.
NESA obtained partial funding for this project
from the South Carolina Power Team.
• I-95 Gateway Park – NESA staff meets
monthly with representatives of Dillon,
Marion, and Marlboro counties to discuss
strategies for marketing the site. Most
recently, NESA has worked with the three
counties to structure a deal for a major
economic development project that could
create a significant number of jobs within the
park.
• Carolinas I-95 Mega Site – NESA has been involved in marketing the site using online
resources and currently hosts a stand-alone website specifically for the mega site. NESA
is also actively marketing the site to consultants via our “boots on the ground” initiative in
conjunction with Marlboro Electric Cooperative, Dillon County, and the South Carolina
Power Team.
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Recruiting Efforts
13
NESA continues to focus these efforts around our target industries and the quality and quantity of projects derived from
these efforts has improved as a result.
In 2012, the NESA business development team made more than 2,000 contacts with site selection consultants, brokers, and
companies. These contacts have led to 161 meetings with companies outside of the region. NESA completed 10 recruiting
missions by the end of 2012. Those missions included:
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Month
Location
Purpose
February
March
March
March
July
July
September
September
October
November
November
Dallas, TX
Germany and Italy
Dallas, TX
Pittsburgh, PA and Cleveland, OH
Dallas, TX
Farnborogh, England
Chicago, IL
Asia Mission
Orlando, FL
Chicago, IL
Canada
MRO Trade Show
Company calls
RILA Trade Show
Company and consultant calls
Consultant calls
Farnborough Air Show
IMTS Trade Show; company and consultant calls
SEUS Japan
NBAA Trade Show
PLMA Trade Show; company and consultant calls
Company and consultant calls
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2012 Announcements
14
As seen below, the NESA Region announced 1,477 jobs and $326,263,000 capital investment in 2012.
Date
Company
1/23/2012 Remelt Sources
2/1/2012
Nucor Corporation
2/21/2012 Southern Paint and Powder Coating
3/1/2012
GSE Lining Technology
3/13/2012 Naturally Advanced Technologies
4/10/2012 PDQ South Injection Technologies
4/12/2012 Diversified Plastics
5/1/2012
Seneca Steel Erectors, Inc.
5/2/2012
Carolina Canners
5/11/2012 Frontier Communications
5/14/2012 DanMarc
7/19/2012 McCall Farms
7/20/2012 PGBA - Blue Cross Blue Shield
7/21/2012 Severn Peanut Company
7/23/2012 PGBA - Blue Cross Blue Shield
8/1/2012
Mercom
8/10/2012 BauschLinnemann North America
10/4/2012 Native Sons
10/25/2012 Domtar
11/1/2012 Honda
11/8/2012 W. Lee Flowers
11/29/2012 Schaeffler Group USA
12/12/2012 Agru America
NA = Not Announced
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Announced Projects in the NESA Region - 2012
Jobs Investment
City
NA NA
Darlington
25 $120,000,000 Darlington
13 $845,000
Pageland
24 $5,000,000
Kingstree
25 $8,000,000
Pamplico
10 $1,200,000
Pageland
15 $2,500,000
Latta
15 NA
Darlington
10 $20,800,000 Cheraw
110 $2,700,000
Myrtle Beach
25 $518,000
McColl
80 $10,600,000 Effingham
445 NA
Florence
20 NA
Ketchuptown
100 NA
Surfside Beach
30 $1,000,000
Pawley's Island
55 $8,000,000
Myrtle Beach
79 $2,500,000
Myrtle Beach
0 $30,000,000 Bennettsville
65 $27,000,000 Timmonsville
15 $6,500,000
Scranton
190 $40,000,000 Cheraw
126 $39,100,000 Andrews and Georgetown
1,477 $326,263,000
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Agribusiness Development
15
NESA has made significant strides in completing the recommendations of its agribusiness development
strategic plan which was completed in October 2011. Some of the key accomplishments this year include the following:
• Actively Engage National Food Processing Companies and Consultants - In June 2012 – NESA hosted Frank Spano of Austin consulting in
the region for a three day event focused on the region’s food processing and agribusiness workforce. Some of Austin Consulting’s past food
processing and distribution clients include Always Bagels, Amy’s Kitchen, Carvel-Celebration Foods, Dole, Fresh Express, George Weston
Bakeries, Ghirardelli, and others. In October, NESA hosted Chris Lloyd of Maguire Woods consulting in the region for a three day event.
While this event was primarily focused on the impact of economic development incentives, it was also be a good opportunity to showcase
the region to this consultant. Some of Maguire Woods’ past food processing and distribution clients include Starbucks, Smithfield Foods,
Farmland Foods, Harris Teeter, and others.
• Investigate the Development of an Agribusiness Development Center – NESA continues to explore funding sources and entities capable
of performing these services.
• Investigate Food Processing Site Certification – In September, NESA contracted with Austin Consulting to certify two (2) pilot food
processing sites within the region. The Marion County Industrial Park and Pee Dee Commerce City Park were selected by Austin Consulting
to be the first two sites certified in South Carolina.
• Facilitate the Announcement of Agribusiness Projects in the NESA Region:
o In March, Naturally Advanced Technologies (NAT) announced its plans to construct a flax decortication facility
within the NESA Region that would process flax fiber into Crailar. Hanesbrands, Georgia Pacific, Levi Strauss, and
others have plans to utilize Crailar in their products. The Pamplico, South Carolina facility represents an $8 million
investment and will employ 25 people initially. The company has plans to contract with local farmers to grow more
than 15,000 acres of flax.
o In July, Severn Peanut Company announced its intention to open a buying station in Horry County that will
contract with local farmers for peanut production. The peanuts will be dried and shipped from the buying center for
use in other products. This project is projected to create 17-20 direct jobs and result in 6,500 acres of contract peanut
production.
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Marketing
16
National Media Placement
NESA continues to work with 30 Point Marketing of Atlanta, GA to pursue regional and national marketing strategies and media
placement opportunities. In 2012, NESA continued to meet with local and regional news outlets to discuss success stories, key initiatives,
and other events. NESA received more positive local and state press coverage in 2012 than in any previous year according to our records.
Branding
In 2012, the NESA Executive Committee approved a new logo for
use on all NESA print and online materials including site flyers,
targeted industry brochures, letterhead, business cards, and other
printed materials. Numerous consultants and individuals within our
“target audience” were contacted for their opinion of the new logo
and all agreed that it really illustrates the organization of the region
and sufficiently incorporates the NESA slogan: “South Carolina’s
Business Corner.”
Online Marketing
NESA continues to pursue an aggressive online marketing strategy. Our monthly e-blast goes to more than 3,000 site selection
consultants, companies, and key economic development allies. NESA also continues to use social media such as Facebook and Twitter to
enhance our online presence.
Marketing Media Development
All of NESA’s print marketing materials were updated in 2012 as part of our rebranding efforts. NESA added metal working and wood
working marketing pieces to our print materials.
Overall Strategies
Throughout the year, a number of new initiatives will be put in place to help better market NESA throughout the region, state and nation.
Using organization generated content that is entirely developed in-house, the organization will not only save money when marketing itself,
but also create a more defined message that covers multiple platforms.
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Legislative Initiatives
17
Legislative initiatives pursued by NESA encompass activities that are designed
to build a cohesive and collaborative effort in conjunction with our state and
federal leadership relative to NESA goals and objectives. Our regional efforts
have been enhanced through the involvement of our elected delegation in our
efforts.
Interstate 73
TO
NESA continues to promote funding and construction priority for I-73. Planning
activities are still underway.
Tourism
73
NESA continues to support legislation specific to the promotion of tourism
including the 2 for 1 program.
State Legislative Collaboration and Education
NESA continues to implement programs and functions designed to keep our
legislative delegation engaged and informed as to our activities and initiatives.
Our delegation continues to work in a very cohesive manner to support our
regional priorities. Our legislative education efforts play a vital role in that
process.
Federal Legislative Collaboration
NESA continues to promote collaborative efforts and implement activities to
keep our federal delegation informed of regional initiatives and activities. Some
of these strategies include e-blasts, newsletters, monthly updates, personal
correspondence, and periodic visits to their Washington, D.C. offices and with
their local representatives. Our federal delegation members and their local
representatives are invited and encouraged to attend all NESA functions.
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Financial Position
Research, 5%
Private Sec
State
County Allie
Marketing, 18%
Lead
Generation, 15%
Investor
Relations, 4%
annualreportfinal.indd 21
18
Administrative
Support, 7%
44
24
32
Business
Development,
18%
County Grants,
23%
County Allies
32%
P
Private Sector
44%
S
C
State 24%
Infrastructure
Initiatives, 8%
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Post Office Box 100547
Florence, S.C. 29502
[email protected]
843.661.4669
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