Bobby Harrell

SC Ranks 10th in Site Selection’s Top Ten Competitive States

bobbyharrell — Fri, 24 May 2013 17:13:02 +0000

Site Selection Magazine

The Competitiveness Ranking here is a broader measure of state competitiveness than the number of announced projects, though that is a strong indicator of future job creation. It includes several New Plant Database criteria (see the index methodology sidebar), which reflect announced capital investment in total and per capita. It also includes other gauges of states’ strength, such as the number of National Career Readiness Certificates according to the Workforce Development Division of Atlanta-based ACT, administrator of the Certified Work Ready Communities initiative.

by MARK AREND
mark.arend bounce@siteselection.com

Boeing CEO Jim McNerney calls N. Charleston 787 campus “a big deal”

bobbyharrell — Thu, 23 May 2013 16:05:40 +0000

By Brendan Kearney and John McDermott,

Boeing’s top executives heaped praise on the North Charleston 787 complex during the company’s annual investor meeting held on Kiawah Wednesday morning, while broadcasting sharp challenges, including to its suppliers and main competitor, Airbus.

Boeing Commercial Airplanes CEO Ray Conner, shown in Tokyo earlier this year, was on Kiawah Island today to address analysts. He said the company’s 787 battery fix was the equivalent of “three years of work in three months.” (AP/Itsuo Inouye/File)

“We’re glad you could see it for yourself yesterday,” CEO Jim McNerney told the gathered analysts, referring to Tuesday’s tour of the local factories. “It’s a big deal. It took a long time, but we’re on the other side now.”

“Now that we have internal competition, we’re going to get much better deals — much better deals,” he said, seemingly a nod to the government and unions in Boeing’s historic planemaking hub near Seattle.

McNerney touted Boeing’s recently adopted “Partnering for Success” program that aims to cut costs within the supply chain and has involved some tough letters sent to problem suppliers.

“They will feel the pain,” McNerney said of suppliers who aren’t efficient enough. “They’ll be on a corporate ‘no-fly’ list for the next program.”

Boeing also unveiled more specifics about how its 787 and 777X models would compete with European rival Airbus’ A350 jet, which is expected to fly for the first time this summer.

“We’re about five years ahead of them and we’re going to bracket them,” McNerney said of the approximately 350-seat 777-8X and approximately 400-seat 777-9X.

“We’re way ahead of them and it’s going to be fun,” he continued, before joking, “shamelessly objective as I am.”

In addition to McNerney, Boeing finance chief and the leaders of the company’s commercial and defense units also spoke and took questions. Breakout sessions with other executives followed.

Boeing didn’t say ahead of time where the conference was, but analyst reports said it would be in Charleston, and at the beginning of his comments Wednesday morning, McNerney said “this is Kiawah.”

The conference comes as the 787 is getting back in the air after a three-month grounding due to a battery problem and after Boeing announced another major expansion in South Carolina boosted by a major government incentive package.

Boeing commercial airplanes chief Ray Conner described the company’s 6,000-worker operation in North Charleston as “truly a remarkable story,” noting that the factories that handle the mid- and aft-body sections of the Dreamliner are now churning out seven a month.

“That place is starting to really hum,” Conner said.

He also addressed the recent return of the 787 to commercial service after the worldwide grounding.

“Some people would say we did three years of work in three months, and I would agree with that,” Conner said.

He also noted that the fact that he’s never visited or played golf on Kiawah during his previous trips to South Carolina shows how focused he and Boeing have been on the 787 program.

Boeing assembles the jets in North Charleston and Everett, Wash.

SC House Committee Crafting Cybersecurity Bill

bobbyharrell — Wed, 22 May 2013 16:55:49 +0000

SC House panel proposes new computer agency

By ANDREW SHAIN

COLUMBIA, SC — A South Carolina House committee proposed Tuesday creating a separate Cabinet-level agency to oversee information technology in response to a massive computer data breach at the S.C. Department of Revenue last year.

The House Ways and Mean Committee proposal varies from a Senate bill – as well as recommendations from a state-hired consultant – that would keep computer work at individual state agencies while centralizing security in a S.C. Budget and Control Board division.

The Department of Information Technology that the House panel proposes would have a director appointed by the governor. The department would develop annual statewide computer technology and security plans, and review similar plans from state agencies. The public could not review technology department records, other than expenditures, under the House bill.

Hackers stole passwords to take personal financial information belonging to 6.4 million consumers, children and businesses from electronic tax returns stored on state Revenue Department computers. The data theft is thought to be the largest ever at a U.S. state agency.

In response, the state paid $12 million to Experian to provide credit monitoring to individuals this year. Nearly 1.5 million people enrolled.

The House bill would cover at least another five years of credit-fraud assistance, the length of a contract the state is seeking. The Senate version called for up to 10 years of consumer assistance.

The House and Senate proposals allow for hacking victims to claim tax deductions of up to $1,000 if they buy their own credit-fraud protection.

Costs to operate the new state agency that the House proposes were not available Tuesday. Consultants have said a new computer security agency would cost $15 million to start and $7.3 million to operate annually.

The House-passed version of the state budget for next year set aside $25 million for credit-fraud aid and other breach-related costs.

Harrell Congratulates Baptist Hill Students for all Their Hard Work

bobbyharrell — Tue, 21 May 2013 17:11:50 +0000

Speaker Bobby Harrell spoke with students at Baptist Hill in Hollywood, South Carolina at a pep-rally celebrating all the hard work the students have put into preparing for their upcoming End-of-Course Exams. Harrell encouraged the middle and high school students to dream big and continue working hard!

S.C. unemployment rate hits lowest mark in 5 years

bobbyharrell — Tue, 21 May 2013 05:34:19 +0000

Staff Report

South Carolina’s jobless rate in April dropped to its lowest level in nearly five years, the S.C. Department of Employment and Workforce reported today.

April’s seasonally adjusted unemployment rate slipped to 8%, down from 8.4% in March. Nationally, the unemployment rate in April was 7.5%.

“The 0.4% decrease from March marks the largest month-to-month drop since May 1987, and the number of South Carolinians finding work continues to increase each month,” said John Finan, the agency’s administrator.

The April jobless rate reached its lowest mark since October 2008. A year ago in April, the state’s jobless rate was 9.3%.

The total number of employed people in South Carolina increased by 2,935 in April to 1,995,078, the agency added. April is the 10th straight month that the workforce has increased.

According to the agency, an estimated 174,352 South Carolinians are out of work.

The recent surge in job growth is concentrated in the service industries, the agency said.

Leisure and hospitality led the way with a gain of 8,700 jobs. It was the third consecutive month that the sector, which is gearing up for the tourist season in the coastal areas and the state capital, reported an increase.

Other sectors reporting improvements in jobs included professional and business services, up 2,700; trade, transportation and utilities, up 2,300; construction, up 1,300; education and health services, up 1,300; and financial activities, up 700.

Manufacturing, which lost 900 jobs as employment in both durable and nondurable goods fell, was the only sector that was down for the month.

The job picture improved in all of the state’s 46 counties, the agency reported. Marion County still had the state’s highest jobless rate at 15%, but that figure was down from 16.1% in March, and 17.6% reported in April 2012.

Lexington County had the state’s lowest rate at 5.7%, down from 6% reported in March.

Both Charleston and Greenville metro areas reported jobless rates of 6% in April, followed by Columbia at 6.5% and Florence, 8.5%.

“Our outstanding companies, our loyal and dedicated workforce, and our competitive business environment have our economy turning again,” Gov. Nikki Haley said. “There’s no doubt that South Carolina is on the move, and we couldn’t be more excited about the great things in store for our state.”

Release – SC House: Time for Government Restructuring to Become Law

bobbyharrell — Wed, 15 May 2013 16:48:11 +0000

For 5^th time in 5 years, House again approves a DOA Bill

To hear an audio quote on DOA Restructuring from Speaker Harrell, click here

****NOTE: Chart detailing the House’s DOA plan: here****

(Columbia, SC) – Today, the SC House of Representatives (in a 91 to 23 bipartisan vote) again approved a Department of Administration (DOA) bill, marking the 5^th time the House has passed this government restructuring reform over the last 5 years.

If the House’s DOA plan makes it into law this year, it would institute the broadest government restructuring effort to be undertaken in South Carolina in decades. Breaking up the quasi-Executive/Legislative Budget & Control Board, the House’s reform measure places Executive Branch functions directly under the Governor, adds stronger accountability oversight and will save taxpayers money by eliminating waste and duplication.

House Speaker Bobby Harrell issued this statement about the House’s DOA reform plan:

“Fundamentally changing the way government operates by challenging the status quo never comes easy – or quickly, considering this is the fifth time a DOA bill has passed the House – but our state’s system of government is in need of major reform.

“The House’s DOA reform plan adds direct accountability oversight, streamlines operations by removing duplication, and ultimately, saves taxpayers money.

“In the House, we don’t just talk about good government reforms; we act. Taxpayers want a smaller, more efficient and more accountable state government and that is precisely what the House’s restructuring plan would create – but to enact those reforms, DOA must become law.

“After coming so close in years past, the finish line for this reform is now in sight. The House is more committed than ever to accomplishing our government restructuring goals once and for all this year; and with a similar level of commitment from the Senate, we can make that happen.”

****NOTE: Chart detailing the House’s DOA plan: here****

# # #

House Honors SC Medal of Honor Recipient’s Work

bobbyharrell — Tue, 14 May 2013 22:01:48 +0000

The SC House of Representatives was able to pay tribute to a true American Hero today. We recognized Major General James Livingston, a SC native and Medal of Honor recipient, for everything he is doing to establish an Official National Medal of Honor Museum at Patriots Point. These heroes more than deserve a place they can forever call their own and the preservation of their acts of valor will serve to inspire generations to come.

Always great to visit with my friend General Livingston. We are proud of his work and were eager to support his efforts.

Here is a copy of the remarks I gave from the House Floor today as we presented General Livingston and the Congressional Medal of Honor Society with a Resolution (H. 3979) showing the General Assembly’s support:

National Medal of Honor Museum Resolution

Presented to General Livingston

5/14/13

Ladies and Gentleman of the House, Special Invited Guests,

This distinguished Body has the privilege of bestowing honors to many great South Carolinians for their achievements. But today is a little different. This time, we are the ones who should feel honored … Honored because today we share our Chamber with a True American Hero!

It is with great humility that I stand before this Body to recognize South Carolina’s very own Medal of Honor recipient, Major General James E. Livingston.

General Livingston earned his Medal of Honor on May 2, 1968 for his heroic actions during the Vietnam War. He continued serving in the United States Marine Corps until he retired in 1995, after more than 33 years of active duty.

The Congressional Medal of Honor – The United States’ Highest Military Honor – is seldom presented, and only to U.S. Military personnel who … as prescribed by Congressional Decree … display: “Conspicuous gallantry and intrepidity at the risk of his or her life above and beyond the call of duty”

This year marks the 150^th anniversary of our country’s highest Military honor. Since its inception, All 50 states and the District of Columbia are represented among the 3,457 servicemen – and one woman – who have received the Medal of Honor.

And that’s why we’re here today … To offer the House’s support to a cause General Livingston is committed to make happen – A commitment to preserve the Medal’s history, to chronicle these heroic acts of Military service and to give these recipients a place they can forever call their own.

Currently, there is a Medal of Honor display housed on the USS Yorktown.

General Livingston and the Congressional Medal of Honor Society are seeking to establish a permanent, standalone National Museum on Patriots Point to give this Medal’s history and its recipients the standalone recognition they deserve.

A Congressional Designation naming this South Carolina site as “The” one and only “Official National Medal of Honor Museum,” will enable the Medal of Honor Foundation to move forward with the public-private partnership that will oversee the fundraising, construction and operation of this state-of-the-art facility.

Their preservation of historical materials and public exhibits will not only keep this valuable history alive through education … But will provide visitors a tangible link to the heroes who have sacrificed so much to protect their freedom.

The Society estimates the Museum will attract more than 200,000 visitors a year. While this will inspire additional SC tourism – more importantly – it will inspire generations with the ideals of courage, patriotism, leadership, and sacrifice.

General Livingston, as a Member of the Congressional Medal of Honor Society and Member of the Incorporating Board for the National Medal of Honor Museum Foundation …

On behalf of the entire House of Representatives we are honored to present to you, the Medal of Honor Society and the Museum Foundation with this Concurrent Resolution showing the General Assembly’s support of your plans to create “The” National Medal of Honor Museum at Patriot’s Point.

General … Thank you.

Thank you: For your service … For your sacrifices … and For your devotion to create a permanent place to honor those select individuals who went above and beyond the Call of Duty to earn this highest award for valor.

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Speaker Harrell Welcomes Boeing’s Huge New Expansion

bobbyharrell — Tue, 14 May 2013 05:31:05 +0000

By, Brendan Kearney

Friday’s ceremony in North Charleston was supposed to be about “Phase 2” of Boeing’s local expansion — a $1.1 billion investment and 2,000 more jobs in exchange for a government incentives package that includes $120 million from the state.

And it was, as a series of top elected and Boeing officials, looking out over the complex from an observation deck, marveled at how the 787 Dreamliner plant has progressed since the first major government-backed expansion here in 2009, and what the next round will include.

Boeing South Carolina Vice President and General Manager Jack Jones welcomes House Speaker Bobby Harrell to the podium at Friday’s celebration of the legislative deal wherein the plane maker agreed to invest another $1.1 billion in its local factory complex in exchange for $120 million of infrastructure support from the state. (Brendan Kearney/postandcourier.com)

Then Michael Luttig, Boeing’s general counsel and a part-time Kiawah Island resident, articulated what many outside the company have suspected about its long-term plans for the Lowcountry. “As we lay the foundation for Phase 2, does anyone doubt there will be a Phase 3 and Phase 4 … ?” the former federal judge asked.

The politicians who followed him on the program certainly didn’t.

“Judge, I hope we’re here a couple years from now,” House Speaker Bobby Harrell said.

“We look forward to Phase 3, 4, 5 … however it goes,” Charleston County Council Chairman Teddie Pryor said to chuckles.

And just as Gov. Nikki Haley was moving to ceremonially sign the bond bill that will defray Boeing’s infrastructure costs over the next eight years, she sounded a final note on the theme.

“I have it on video that you said Phase 3, 4 and 5,” she said to Luttig. “So it’s not a matter of if, it’s a matter of when.”

“So I’ll send you that video often,” the governor, a vocal Boeing backer, joked.

The sunny ceremony came a day after the governor of Boeing’s historic home state, Washington, floated his own incentives proposal to the aerospace giant.

Late last month, Boeing CEO Jim McNerney praised the South Carolina operation and said the company had not yet decided where to build or source parts for the revamped version of the wide-body 777.

Those comments, combined with the company’s decision just days later to officially offer the re-engined, composite-winged 777X to customer airlines, set off speculation that Boeing might be looking beyond Everett, Wash., for 777X production or design.

Boeing now builds most 787s and all 777s in Everett.

Senator Boeing

It was in that context that Washington Gov. Jay Inslee appeared Thursday at the Boeing-sponsored Future of Flight Center in Everett and, according to Seattle-area media reports, proposed reviewing Boeing’s existing tax breaks, improving transportation arteries around its factories and maybe paying to train workers for Boeing, like South Carolina does.

“I think every state has to do what they can to get jobs, to keep companies and to be successful,” Haley said Friday when asked about her Pacific Northwest counterpart. “Washington’s doing what they have to do, we continue to just be a good partner with Boeing, show a strong relationship and keep our workforce ready.”

State Sen. Hugh Leatherman, who helped broker the first incentives deal four years ago and has called himself “Senator Boeing,” said he read that Inslee didn’t make a money pledge like his state has.

“So he’s not serious,” the Florence Republican and Senate finance chairman said.

Haley would not say whether the state planned to offer additional incentives to land some part of the 777X, simply pledging to “keep talking” to Boeing.

Defending incentives

Meanwhile, an economic development delegation from the Palmetto State, including a handful of people from the Charleston area, happened to be in the Seattle area this week, Claire Gibbons of the Charleston Regional Development Alliance said.

The entourage was out West prospecting for Boeing suppliers and other aerospace companies and trying to “raise the profile of Charleston as an aviation hub,” Gibbons said.

Back on the observation deck, Haley offered a spirited defense of the state’s regular use of incentives to lure or retain businesses. Critics of corporate incentives argue that governments should invest in public education or social services instead of profitable companies such as Boeing.

“When we do incentives, we only do it for infrastructure,” she said. “It is only site-ready. We make sure that we give them the proper site — water, sewer, everything built — and we make sure that everyone they hire, they only get the credits after they hire the people.”

She said the system offers “true accountability.”

“We don’t throw additional money,” she said. “We don’t have additional money to throw. But it is important for us to always remember that it is government’s role to take care of infrastructure so companies be at home.”

Back in the air

When Boeing announced in 2009 that North Charleston would become the site of its first commercial aircraft assembly plant outside Washington, the company committed to invest $750 million and create 3,800 jobs in exchange for incentives The Post and Courier valued at as much as $900 million.

Having surpassed those goals — Boeing has invested more than $1 billion and employs more than 6,000 people in North Charleston — the company came back to the state this year to help finance its future expansion plans around Charleston International Airport.

The Legislature fast-tracked the incentives bill, and Haley signed it into law April 23. In addition to the state bond money, Charleston County is now one vote away from approving its part of the package.

It is an “unbelievably euphoric time for Boeing” and its 787 program, according to its top local executive Jack Jones.

The Federal Aviation Administration grounded the 787 in mid-January after smoky battery malfunctions on a pair of in-service planes. No one has been able to identify the cause of the overheating incidents, but Boeing devised a multi-part fix its executives have called comprehensive, and the FAA officially accepted it last month.

The high-tech plane has returned to the air, and deliveries likely will resume soon.

Six mostly finished 787s sat on the Boeing South Carolina flight line Friday. Luttig and Jones said there are six more jets moving through the massive final-assembly factory.

Boeing announced this week that it is now making seven 787s per month between its North Charleston and Everett factories, and is on track to be making 10 per month by the end of the year.

Meanwhile, the expansion of the local complex is well underway, including add-ons to the aft- and mid-body factories and office-upfitting on the fourth floor of the centerpiece final-assembly facility.

Luttig, described by Jones as the company’s “closer,” claimed to be as excited Friday “as I was four years ago.”

“Today we stand at the threshold of a new stage of our partnership together,” Luttig said. “It is a proud day for Boeing, it is a proud day for South Carolina, it is a proud day for Boeing South Carolina.”

SC Tourism Spending Hits Record High – $16.5 billion

bobbyharrell — Tue, 07 May 2013 13:49:34 +0000

CHARLESTON, S.C. — (AP) – South Carolina’s tourism industry has bounced back after the Great Recession with tourism spending reaching a record $16.5 billion, according to figures released Saturday by the state Department of Parks, Recreation and Tourism.

“We’re pretty well back now,” said Duane Parrish, director of the state agency. The numbers released to the Associated Press show that, during 2011, tourism spending was up almost 10 percent and has surpassed the previous record $15 billion of 2008.

“I think pent-up demand is part of it,” Parrish said “People get to the point where they either feel better about the economy or decide they are in a new economy but they are going to travel anyway.”

Visitors walk by the upscale homes lining the historic Battery in Charleston, S.C., on Friday, May 3, 2013. South Carolina tourism officials say the industry has rebounded from the Great Recession and tourism spending has climbed to a record $16.5 billion. (AP Photo/Bruce Smith)

The release of the figures, from the U.S. Travel Association, generally lags about a year behind the year in which they were compiled. The numbers show that the industry in 2011 provided 111,000 direct jobs statewide. The data also indicate that about 53 percent of tourism spending that year came from visitors from other states and 5 percent from international travelers.

From 1990 to 2008, the state tourism industry enjoyed average growth of about 4 percent a year. The recession started in late 2007, but the impact wasn’t immediate, and 2008 was a record year for the industry. But in 2009, tourism was off 8 percent.

Now the industry seems to have recovered, growing in 2011 even faster than before the 18-month recession, which officially ended in June 2009. But Parrish said he isn’t sure the current rate of growth can be sustained.

“I don’t know that we will continue at 10 percent each year,” Parrish said. “But I think things will be on the positive side and we will have steady growth the next two or three years.”

Brad Dean, president and CEO of the Myrtle Beach Area Chamber of Commerce, called lower gas prices a good sign but added that “many consumers are still faced with economic uncertainty and increased payroll withholding.”

Myrtle Beach is the heart of the state’s tourism industry, where an estimated 14 million visitors a year flock to the area’s beaches, 100-plus golf courses and 1,700 restaurants.

“Myrtle Beach has seen an increase in tourism in the last few years in large part to more promotion and new air service,” he said. “Despite continued economic uncertainty, consumers are still traveling, and affordability is the key.”

During the past two weeks, new direct flights between Myrtle Beach and Philadelphia, Baltimore and Toronto have started. Earlier this year, Myrtle Beach opened a larger and renovated $113 million airport terminal.

Parrish said that while overall tourism spending is at a record level, a key tourism indicator – revenue per available hotel or motel room – still has not quite reached pre-recession levels. But he said he expects that will happen this year.

The news in recent months indicates that the industry is continuing to grow. Last summer’s PGA championship on Kiawah Island had an estimated impact of $92 million and brought worldwide publicity for the state.

South Carolina State Parks had record revenues of $21 million last fiscal year, and last fall, Charleston was named the top tourist destination in the world by readers of Conde Nast Traveler magazine.

In addition, the state tourism department this year launched a $2.5 million advertising campaign to attract visitors to what it is calling undiscovered South Carolina.

More than 20,000 people from as far away as Seattle and Santa Fe, N.M., flocked to one of those “undiscovered” places last month: the small tobacco town of Lake City. There, the ArtFields festival featured 400 works of art in public venues and in businesses around town.

Help wanted: Amazon to add hundreds of Midlands area jobs

bobbyharrell — Tue, 30 Apr 2013 08:36:26 +0000

By TIM FLACH

COLUMBIA, SC — Online retailer Amazon is ramping up hiring at its Cayce distribution center, saying it plans to hire hundreds of full-time workers to pick, pack and ship customer orders.

Amazon officials won’t specify the number of jobs that will be added and the current staff level, calling that proprietary information.

A year ago, company officials said the facility had a payroll of 1,000 full-time employees.

All new hires will be full-time staff that gathers, packages and ships goods ordered by customers in the facility’s round-the-clock operation, spokeswoman Kelly Cheeseman said.

The starting wage is $11 per hour – with bonuses possible – for a job that can require physical activity for up to 12 hours per shift, the company’s website says.

Some positions will be offered to part-time staff now working at the facility, Cheeseman said.

Amazon is “on track” to reach a payroll of 2,000 required by Dec. 31 in exchange for a sales tax collection exemption it received in a package of incentives given the online retailer to open the center, she said.

Employment has varied at the 1.2 million-square-foot distribution center. The company’s last round of hiring for the center was in July, when it said it would hire hundreds of full-time and temporary workers.

The center – which handles smaller products, such as electronics, DVDs and books – typically beefs up staff by 1,200-1,500 temporary employees during the Christmas holiday shopping season to handle heavy orders. Amazon has a similar center in Spartanburg that handles larger items and employs more than 400, the company said.

Candidates can apply for the new jobs at www.workatamazonfulfillment.com.