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Dockworkers, management to talk one more time

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In a last ditch effort to avert a strike that would cripple U.S. commerce, the International Longshoremen’s Association and management will meet one more time before the expiration of their contract extension at midnight Saturday.

Both sides agreed to come back to the table at the request of the Federal Mediation and Conciliation Service, the federal agency charged with mediating private sector labor disputes.

No date or place for the meeting was announced although the last round of talks was held at the Marriott Hotel at the airport in Newark, N.J.

Those talks broke off last week.

Although a number of issues remain unresolved, the major sticking point involves container royalties, annual payments to dockworkers based on the weight of container traffic coming through their port.

The ILA represents nearly 15,000 workers at ports from Boston to Houston. If an agreement is not reached, they will walk off the job this weekend, shutting down the movement of container cargo at all major ports on the Eastern and Gulf coasts, including Savannah.

A shutdown would wreak havoc on manufacturers, retailers, farmers and others who depend on the ports to move their supplies and products. They include large American retailers such as Walmart, Target and Home Depot that rank among the country’s top importers as well top exporters such as Weyerhaeuser, DuPont and Cargill.

Not only would any disruption have serious consequences for the nation’s still-recovering economy, it would also jeopardize the financial well-being of the ILA’s 14,500 members, who would lose nearly $5 million in wages and benefits for each day they’re out of work — a total of $150 million in lost compensation in just a month.

According to the U.S. Maritime Alliance, at the Savannah and Brunswick ports alone, a shutdown of union operations would result in an estimated $2.3 million a week in lost wages and benefits for ILA members.

Any shutdown also would hurt the nation’s more than half a million other workers who depend directly on port operations for their livelihood, the Alliance said.

In New York and New Jersey, for example, a shutdown would result in $100 million in lost revenue a month for railroads, truckers and other port-related transportation industries that handle the more than 250,000 containers that move through that port each month.

A one-month shutdown of the BMW assembly plant in South Carolina and the Mercedes Benz plant in Alabama could result in the temporary furlough of 6,900 workers at the two plants and potentially affect more than 34,000 workers across the country. It would also result in the loss of $52 million in federal, state and local tax revenues over a month.

While the overall impact of any East and Gulf Coast shutdown is yet to be determined, the 10-day lockout at West Coast ports in 2002 cost the U.S. economy an estimated $1 billion a day and resulted in a loss of cargo volume from which the West Coast ports have still not recovered a decade later.

More recently, an eight-day strike at the Ports of Los Angeles and Long Beach in November reportedly caused a 2 percent drop in the volume of containers compared with the same month in 2011.

Similarly, a work stoppage at ports on the East and Gulf Coast would cause shippers to divert cargo to Canada, Mexico and the West Coast.

 


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Exchange in brief

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Jobless rate falls in metro Savannah

ATLANTA — The preliminary unemployment rate in metro Savannah declined to 7.7 percent in November, down two-tenths of a percentage point from 7.9 percent in October, the Georgia Department of Labor announced Thursday. The rate was 8.4 percent in November 2011.

The rate declined because of job growth and fewer new layoffs, represented by first-time claims for unemployment insurance benefits.

New jobs increased by 500 in metro Savannah, which includes Chatham, Effingham and Bryan counties. There were 154,800 jobs in November, up three-tenths of a percentage point, from 154,300 in October. The growth came in retail trade and was strong enough to offset losses in professional and business services.

In one year’s time, jobs were up in metro Savannah by 4,700, or 3.1 percent, from 150,100 in November 2011.

Metro Athens had the lowest area jobless rate at 6.2 percent, while metro Dalton had the highest at 11 percent.

Georgia labor market data are available at www.dol.state.ga.us.

Group to push for S.C. gas-tax increase

COLUMBIA, S.C. — A group has hired two lobbyists to push for an increase in South Carolina’s gas tax.

The State of Columbia reports the S.C. Alliance to Fix Our Roads says the increase is needed to fund nearly $50 billion in road construction and repairs that are needed in the next 20 years. The group previously focused on education but opted in September to shift its attention to lobbying.

Gov. Nikki Haley has said she is opposed to increasing the gas tax. Haley’s proposed budget for the upcoming fiscal year includes using $14.3 million of general fund money to pay for things the gas tax normally funds, freeing up that gas tax money to pay for road improvements.

South Carolina’s 16-cents-a-gallon gas tax is the third-lowest in the country.

Cleaning service firms merge

Savannah-based Office Clean is merging with 360clean, a commercial cleaning company based in Charleston, S.C.

Office Clean founder and president David R. Boylston announced the merger in a letter to customers on Wednesday.

Boylston said the decision to merge with 360clean was made on Dec. 1, three months after Office Clean celebrated its 10th anniversary. 360clean, he said, has created a reputation for delivering consistent and quality services for medical facilities, banks, educational facilities, industrial facilities, churches, day care facilities, health clubs and auto dealerships.

Office Clean also bought the rights to provide 360cleaning services north to Macon and south as far as Fernadina Beach, Fla., Boylston said.

On Tuesday, Office Clean will change its name to 360clean, he said.

U.S. consumers lose confidence as fiscal cliff nears

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WASHINGTON — U.S. consumers peering over the “fiscal cliff” don’t like what they see.

Fears of sharp tax increases and government spending cuts set to take effect next week sent consumer confidence tumbling in December to its lowest level since August.

The Conference Board said Thursday that its consumer confidence index fell for the second straight month in December to 65.1, down from 71.5 in November.

The survey showed consumers’ outlook for the next six months deteriorated to its lowest level since 2011 — a signal to Lynn Franco, the board’s director of economic indicators, that consumers are worried about the tax hikes and spending cuts that take effect Tuesday if the White House and Congress can’t reach a budget deal.

Earlier this week a report showed consumers held back shopping this holiday season, another indication of their concerns about possible tax increases.

The December drop in confidence “is obvious confirmation that a sudden and serious deterioration in hopes for the future took place in December — presumably reflecting concern about imminent ‘fiscal cliff’ tax increases,” said Pierre Ellis, an economist with Decision Economics.

The decline in confidence comes at a critical time when the economy is showing signs of improvement elsewhere.

A recovery in housing market is looking more sustainable. On Thursday, the government said new-home sales increased in November at the fastest seasonally adjusted annual pace in 2½ years.

And the job market has made slow but steady gains in recent months. The average number of Americans applying for unemployment benefits over the past month fell to the lowest level since March 2008.

But the political wrangling in Washington threatens the economy’s slow, steady progress. President Barack Obama and House returned to Washington Thursday to resume talks with just days to go before the deadline.

Mixed signals over those negotiations led to a rocky day on Wall Street.

Stocks plunged early after the weak consumer confidence report and a warning from Senate Majority Leader Harry Reid that the government appeared to be headed over the “fiscal cliff.” At one point, the Dow Jones industrial average fell as much as 150 points.

But the market came back in the final hour of trading on a potential sign of movement in the talks: Republican leaders announced they would bring the House back into session on Sunday evening. The Dow recouped nearly all of its losses to close down just 18 points at 13,096.

A short fall over the cliff won’t push the economy into recession. But most economists expect some tax increases to take effect next year. That could slow economic growth.

While consumers are more worried about where the economy is headed, they were upbeat about present conditions, according to the latest survey. Their assessment of current economic conditions rose this month to the highest level since August 2008.

A key reason for that is gas prices hit a 2012 low of $3.21 a gallon last week. Normally, that would prompt consumers to spend more on holiday shopping.

But the opposite has happened. A report from MasterCard Advisors Spending pulse indicated sales grew in the two months before Christmas at the weakest rate since 2008, when the country was in a deep recession.

There were other distractions this holiday season. In late October, Superstorm Sandy battered the Northeast and mid-Atlantic states, which account for 24 percent of U.S. retail sales. That coupled with the presidential election, hurt sales during the first half of November.

Shopping picked up in the second half of November. But “fiscal cliff” worries dampened sales in December.

The National Retail Federation, the nation’s largest retail trade group, remains optimistic that sales won’t be quite as bad as earlier reports have suggested. It is sticking to its forecast for total sales for November and December to be up 4.1 percent to $586.1 billion this year. That’s more than a percentage point lower than the growth in each of the past two years, and the smallest increase since 2009 when sales were up just 0.3 percent.

AP Retail Writer Anne D’Innocenzio contributed from New York to this report.

Two 'can't miss' conferences coming up in new year

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If you’re a member of our maritime community, lucky you. You don’t even have to go out of state to attend two of the premiere conferences on maritime and logistics issues scheduled in the coming year.

The Georgia Foreign Trade Conference showcases its benefits to hundreds of attendees from senior level shippers to maritime executives, senior managers and decision-makers. They represent ocean carriers, ports, terminal operators, government agencies, financial institutions, shippers, stevedores, railroads, truckers, forwarders, brokers, 3PLs, 4PLs, international port management companies, port consultants, suppliers, site selectors and others critical to the movement of international freight.

As an undertaking of the entire Georgia maritime community, the host site for the annual conference rotates between our gateways to the world: the deepwater ports of Savannah and Brunswick.

It’s Brunswick’s turn this year, so the GFTC will be held, as always, at the Cloister on Sea Island.

The Georgia Foreign Trade Conference offers business sessions to more than 400 senior level shippers and maritime executives from across North America. Over the course of three days, participants are exposed to business sessions and networking opportunities.

An elite panel of speakers will focus their remarks on issues facing shippers, carriers, ports, terminals and the maritime community into the next century, as well as the changing legislation and new technologies affecting the way we conduct business.

“I have often heard the Georgia Foreign Trade Conference referred to as a ‘working’ conference,” said Terry Bunch, director of logistics and customer service at Rayonier Performance Fibers. “That’s a credit to the event’s organizers and their ability to balance the right combination of informative panels with networking events geared to attract the industry’s key decision-makers. Year after year, the energy exerted in putting this conference together is evidenced in the quality of the program.”

“As a shipper, I am afforded the opportunity to attend numerous conferences throughout the year,” Bunch said. This is a ‘must attend’ event.”

Randy Booker agreed.

“After 35 years of trade conferences and industry events, there is absolutely no question that the Georgia Foreign Trade Conference is consistently one of, if not the, most interesting, informative, enjoyable and productive events every year,” the chairman and CEO of Terminal Investment Corp. said.

Charlie Sutlive, president of the Savannah Maritime Association, said the conference is more than informative.

“In the maritime industry there is a ripple effect,” Sutlive said. “The success of Georgia’s global industry is tied to the success of the Port of Savannah and Port of Brunswick. Networking opportunities such as the GFTC are one of the factors that will help put Georgia’s maritime community in a good position when the economy rebounds.”

The conference is scheduled for February 3-5. For more information, go to www.gaforeigntrade.com.

A logistics success

On March 19-20, the Georgia Logistics Summit will celebrate its fifth anniversary with an event that grows in scope and attendance every year.

This year’s event hosted some 1,600 attendees from 28 states and seven nations — 85 percent of them from across the private sector. Next year’s summit, at the Georgia World Congress Center in Atlanta, will feature a full agenda consisting of multiple keynotes and an agenda and activities purposefully created with input from the logistics industry.

The 2013 partners and sponsors include such logistics heavyweights as Coca-Cola, CSX Transportation, Delta Cargo, Georgia Ports Authority, Georgia Power, Manhattan Associates, Microsoft, Norfolk Southern, Red Prairie, Home Depot and UPS.

Go to www.georgialogistics.com to learn more.

Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.

Following are the ships scheduled to call on Georgia Ports’ Garden City and Ocean Terminals in the next week. NOTE: If an ILA strike begins Sunday, it would affect all ships coming into Garden City Terminal.

Terminal Ship Date

GCT MAERSK DAMPIER Today

GCT MSC RANIA Today

GCT APL OMAN Today

GCT MSC LUDOVICA Today

GCT EVER URBAN Today

GCT OOCL AMERICA Today

GCT NYK NEBULA Today

GCT KIEL EXPRESS Today

GCT UASC JEDDAH Today

GCT EVER DIAMOND Saturday

GCT PRESIDENT POLK Saturday

GCT FOLEGANDROS Saturday

GCT BOX TRADER Saturday

OT SALOME Saturday

OT ANET Saturday

GCT MARE ATLANTICUM Sunday

GCT MSC TEXAS Sunday

OT SAFMARINE SAHEL Sunday

GCT ZIM ONTARIO Monday

GCT MSC SHAULA Monday

GCT CONTI HARMONY Monday

GCT CMA CGM MANET Monday

GCT YM ETERNITY Monday

GCT AL NOOF Monday

GCT NYK RUMINA Tuesday

GCT FOUMA Wednesday

GCT IBRAHIM DEDE Wednesday

GCT MSC RITA Wednesday

GCT MAERSK DAVENPORT Wednesday

GCT PARIS EXPRESS Wednesday

GCT ADRIAN MAERSK Wednesday

GCT MOL GENEROSITY Wednesday

GCT ZIM YOKOHAMA Wednesday

GCT MOL EXPRESS Wednesday

GCT HANJIN ELIZABETH Wednesday

OT NEW PRIDE Wednesday

GCT MAERSK MADRID Thursday

GCT ZIM MONACO Thursday

GCT E.R. PUSAN Thursday

GCT MAERSK ROUBAIX Thursday

GCT STUTTGART EXPRESS Thursday

GCT BREMEN BRIDGE Thursday

GCT HYUNDAI GRACE Thursday

Education Partner of Year: JCB

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At a time when many recent high school graduates are still searching for jobs, Jacob Lindsey has his future all mapped out.

Since September, the 2012 Jenkins High School graduate has gone to school at Savannah Technical College and working at construction equipment manufacturer JCB, where he’s getting paid to learn everything from machining to communication and leadership skills.

“This has already been a great experience,” said Lindsey, who took engineering classes during his four years at Jenkins.

“I’m learning way more than I ever thought I would.”

For working to provide that opportunity, JCB is the Savannah Morning News’ 2012 Education Partner of the Year.

The apprentice program

Lindsey and four other 2012 area high school graduates comprise the first class of JCB apprentices settling into a three-year program designed to provide them with the education and skills they need to succeed while helping to build a workforce for the company.

The apprentices, who each receive a salary and full JCB benefits package, divide their time between the classroom at Savannah Technical College and the manufacturing floor at JCB.

At the end of the three years, each successful apprentice will receive the appropriate certifications, diplomas or licenses and the opportunity for permanent employment.

Those, like Lindsey, who want to go on to higher education, can have that tuition reimbursed when they come back to work.

The new program, which JCB president John Patterson hopes will grow to eventually accept as many as 100 new graduates each year, is a result of what he and other major manufacturers consider one of their most frustrating problems — finding skilled employees who actually want to work.

JCB kicked off the program earlier this year with the encouragement and blessing of the state’s top officials and chose its first five apprentices from a field of more than 70 applicants.

On-the-job learning

Lindsey and Effingham County High graduate Katie Moore are training to be machinists; Islands High’s Laurence Hayes and Benjamin Tounge, a recent graduate from Kentucky, are learning to weld. Markeis Fulcher of Windsor Forest High is an electrical apprentice.

Each has classes tailored to their specialty area and a mentor who — in addition to knowledge in that field — is also trained in leadership and coaching.

“I wasn’t sure what to expect, but everyone has been really helpful,” Hayes said. “Learning to weld isn’t easy. It’s a process of steps, and it’s really good to have people there who can give me tips and correct me if I’m doing something wrong before it becomes a habit.

“I think I’m learning faster than I would if I were just in school. I’m really glad I put in for this program.”

The apprentices, who put in 40-hour weeks between classes and on-the-job training, earn $21,000 a year with all the benefits of regular employees — including medical and dental insurance, paid time off and holidays. Salaries go up on a sliding scale each year.

The average JCB employee earns $54,000 annually.

While they each have a particular area of concentration, apprentices also are exposed to other processes on the manufacturing floor, with a different area of focus each month during the first year, said Heather Alkire, the JCB human resources specialist who heads up the program.

They’re also learning to work as part of a team, with projects designed as hands-on lessons.

One such project was building a tool box.

‘Ah ha’ moments

“We each had to design, fabricate and build our own toolbox,” Lindsey said. “I wanted mine to be really sturdy and it was, but it was also so heavy I could barely pick it up!

“So I have to figure out how to make it sturdy but not so heavy. Now I understand better what engineers do when they are always trying to improve on a process.”

It’s that kind of “ah ha” moment that JCB’s Liam Brown relishes.

“These kids are growing every week,” said Brown, the company’s vice president of manufacturing operations, who meets with each apprentice on a regular basis.

“And they are teaching us as much as we’re teaching them. I really do see them as the leaders of the future.”

As for Patterson, his hope for the program is that more industries, as well as educational institutions and government, will come together to encourage young people to take up trade skills by offering them similar opportunities.

“We know this approach works,” he said. “But, beyond that, a program like this creates skilled and loyal employees who become part of the business culture and the community.

“And that’s good for everyone.”

BEST OF SAVANNAH BUSINESS 2012

Every day through Dec. 30, the Savannah Morning News will profile companies and organizations that made major contributions to the local business environment in the past year. The Exchange staff chose the honorees — from a list of nominees submitted by local business leaders — utilizing broad criteria, from growth and success to philanthropy and community involvement.

Tuesday: Savannah Slow Ride (Newcomer of the Year)

Wednesday: World Trade Center Savannah (Advocate of the Year)

Thursday: The Coastal Bank (Comeback Business of the Year)

Today: JCB Apprenticeship Program (Education Partner of the Year)

Saturday: Wet Willie’s (Entrepreneurial Business of the Year)

Sunday: LMI Aerospace (Manufacturer of the Year)

ABOUT THE JCB APPRENTICESHIP PROGRAM

Information on the apprentice program is posted online at www.jcbna.com. Applicants must have a high school diploma or GED, be drug free and willing to commit to the program for five years, which includes a three-year apprenticeship and a subsequent two-year employment at JCB. Other requirements include a 2.5 GPA and the ability to pass the COMPASS aptitude test with scores adequate to enter Savannah Tech.

The internship includes:

Year One: introduction, overall business awareness, manufacturing learning foundation.

Year Two: concentration on chosen skill, continued education, real on-the-job training.

Year Three: continue with skill experience, education, college examinations and accreditations.

Applicants should post a letter of interest in the program along with a resume detailing work and/or volunteer experience, as well as relevant class work.

COMING JAN. 6

Savannah Morning News business writers Mary Carr Mayle and Adam Van Brimmer provide a look ahead to what expect in each sector of the economy in 2013 in the Savannah metro area.

Entrepreneurial Business of the Year: Wet Willie's rides simple and sound philosophies to success

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David Stachel wanted to “open a daiquiri bar on the beach,” and he visited Savannah in October 1989 to talk to a business acquaintance of his brother, local psychologist Bill Dickinson, into partnering with him.

Being a gracious host, Dickinson took Stachel out on the town, starting with the Oktoberfest celebration on River Street.

“Wow, is it like this all the time?” Stachel asked Dickinson upon seeing the festive crowds along the waterfront.

Six months later, Stachel and Dickinson opened their daiquiri bar on the beach on River Street’s cobblestones instead. Wet Willie’s debuted on St. Patrick’s Day weekend 1990 and instantly became the place to party in Savannah.

Today, Wet Willie’s is home to the frozen-drink crowd in 17 locations in seven states. Plans call for the opening of at least six more stores in 2013, including a third local location in City Market and the company’s first foray into the New York City market.

And yes, Stachel got his daiquiri bar on the beach — several stores sit oceanside, including a recently opened location on Tybee and another on Miami’s South Beach.

Credit Dickinson’s ability to master the bar business for the success, said Ansley Williams, owner of River Street restaurants Spanky’s and Tubby’s.

“In the beginning, I told Dickinson ‘Doc, don’t quit your day job,’” Williams said. “Turns out he was a natural — he was better at the bar business than those of us giving him advice. He believed in what he was doing and was willing to do everything necessary to be a success.”

The spirit that has keyed the business’s success makes Wet Willie’s our choice for “Entrepreneurial Business of the Year.”

Quick studies

Dickinson is a psychologist by trade, so naturally he applies a clinical approach to explain Wet Willie’s success.

His entrepreneurial philosophy includes 11 points, culminating in his belief in a “Darwinian approach to business: Change is essential to survival, but only adaptive change. Adapt to change or be selected out of the business ‘pool.’”

In the spring of 1990, the approach was not nearly so defined.

Dickinson was a doctor. Stachel had been an auto executive. They were “good businessmen but good businessmen with no concept of how to run a bar.” They decided to apply good business practices to the bar business and seek out help when necessary.

They were so desperate for guidance early on they flew in a friend of Stachel’s from the West Coast to help.

“Her only qualification was she’d been a waitress for 15 years,” Dickinson said. “That’s how naïve we were.”

Dickinson and Stachel were quick studies, however. They parlayed their Savannah success into three more stores, including the South Beach location and a bar on King Street in Charleston, S.C. By 1997, the potential for further growth led Dickinson to cut back his psychology practice to concentrate on expanding Wet Willie’s.

He and Stachel began by identifying potential new markets. They stuck with what had served them well in their existing locations: they looked for cities with liberal open container laws and sites with room for an outdoor patio. They also tried to avoid areas home to their biggest rival: Fat Tuesdays, another bar chain specializing in frozen drinks.

The search led them to Memphis’ Beale Street, where open containers are allowed if not encouraged, as well as to Tampa’s Channelside district, a location with a large waterside patio.

“Those types of places get a good bit of foot traffic, and when people walk by and see the line of drink machines through our windows, they’re going to stop and try it,” Dickinson said. “At that point, we’ve hooked them.”

Sound approach

Wet Willie’s curb appeal isn’t the only reason the business has succeeded where so many others have failed.

The naivete that led them to consult a waitress for business expertise also “saved” their “butts.”

Unlike others who get into the bar business and treat it like an extension of a college frat house, Dickinson and Stachel always operated Wet Willie’s like a business.

Dickinson chuckles in recalling recent comments by his buddy Williams about how Spanky’s food once sold like “sex on troop train” but Williams and his partners squandered some of their earnings by spending “money like soldiers on that troop train.”

“We never fell into that trap,” Dickinson said. “A bar is not an open house for all your buddies. The first time I step behind the bar and give away drinks to a group of friends is the last time my employees see this for what it is: A business.”

Dickinson also counts Wet Willie’s willingness to embrace their signature item, the frozen daiquiri, as a secret of success. Bars that try to be “all things to all people” lose their identity in what is a fickle business, he said.

“When the economy gets tough and you have a shoe store at the mall, you have a chance to survive, but if you are a department store, you are vulnerable,” Dickinson said. “We decided to be really good at frozen drinks and offer two or three brown bottles and a green bottle for those who just have to have a beer.”

The strategy works, as evidenced by Dickinson’s aggressive expansion plans. The City Market store will open in time for St. Patrick’s Day, and Dickinson is eyeing new markets in addition to New York City.

Dickinson’s buddy, Williams, can envision a day when Wet Willie’s is a household name well beyond Savannah.

“That is a significant possibility,” Williams said. “He’s going to be aggressively pursuing opportunities as long as he’s around, and he’ll do it intelligently and successfully. Heck, I would invest in him.”

ENTREPRENEURIAL BUSINESS OF THE YEAR

• Winner: Wet Willie’s

• Leadership: Bill Dickinson and David Stachel

• Business sector: Bar/Restaurant

• Employees: 650

• 2012 Revenue (approximate): $24 million

• 2012 Accomplishments: Dickinson and Stachel founded Wet Willie’s in 1990 with one store on River Street. Dickinson was a clinical psychologist with no business background and Stachel had recently resigned from a management job with Toyota and longed to “open a daiquiri bar on the beach” somewhere.

Wet Willie’s has grown steadily in the two-plus decades since and now boasts 17 locations in seven states, including on Miami’s South Beach, on Memphis’s Beale Street and San Diego’s Gaslamp Quarter. Dickinson and Stachel will open a third local location early next year, in City Market, and have plans for stores in Brooklyn, N.Y., and Atlantic City, N.J., as well.

The company made headlines in 2012 by opening a Wet Willie’s on Tybee Island in the former lobby of the Sea & Breeze Hotel on Tybrisa Street. Wet Willie’s soon-to-open City Market store was linked to the city of Savannah’s controversial decision to terminate the lease held by Savannah’s horse-drawn carriage companies. Those carriages stage along Jefferson Street in the heart of City Market, a few dozen feet from the new Wet Willie’s entrance and soon-to-be patio.

• Website: www.wetwillies.com

BEST OF SAVANNAH BUSINESS 2012

All this week, the Savannah Morning News will profile companies and organizations that made major contributions to the local business environment in the past year. The Exchange staff chose the honorees — from a list of nominees submitted by local business and community leaders — utilizing broad criteria, from growth and success to philanthropy and community involvement.

• Thursday: Savannah Slow Ride (Newcomer of the Year)

• Wednesday: World Trade Center Savannah (Advocate of the Year)

• Thursday: The Coastal Bank (Comeback Business of the Year)

• Friday: JCB Apprenticeship Program (Educational Partner of the Year)

• Today: Wet Willie’s (Entrepreneurial Business of the Year)

• Sunday: LMI Aerospace (Manufacturer of the Year)

COMING JAN. 6

Savannah Morning News business writers Mary Carr Mayle and Adam Van Brimmer provide a look ahead to what to expect in each sector of the economy in 2013 in the Savannah metro area.

Exchange in brief

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Health Discovery Corp. names CEO

Dr. John Norris has been named the new chief executive officer of Health Discovery Corp. (OTCBB: HDVY), the firm’s board of directors announcer Thursday.

Norris was selected during a Dec. 18 board meeting to succeed Dr. Stephen Barnhill, who founded HDC, served as chairman and CEO for nine years and brought the company to profitability in the third quarter of 2012.

Norris, 65, had been the company’s executive vice president, chief technology officer and chief regulatory officer.

“John has served with distinction for the past three years, and we intend to rely on his global vision of the future of health care delivery system reform, of health care IT reform, and of FDA reform to drive the transformation of HDC into its next phase of growth,” said board chairman Joe McKenzie.

Norris said he looks forward to assuming the role of CEO and leading the company to its next level of success.

Health Discovery Corporation is a molecular diagnostics company that uses advanced mathematical techniques to analyze large amounts of data to uncover patterns that might otherwise be undetectable. For more information, go to healthdiscoverycorp.com.

SCADDY entries on display on Broughton Street

More than 100 top student submissions for the seventh Annual SCADDY Awards will be on exhibit Jan. 4-27 at the Gutstein Gallery, 201 E. Broughton St.

A panel of respected industry professionals reviewed the submissions and selected winners, which will be announced Feb. 15 at the SCADDY Awards Ceremony at Arnold Hall.

The SCADDY Awards honor student achievement in the advertising arts and related creative disciplines. Award-winning work is entered into the ADDY Awards, the advertising industry’s professional award competition.

SCAD students from advertising, graphic design, illustration, photography, animation, motion media design, visual effects, writing, and film and television entered more than 2,000 pieces in this year’s competition.

This year’s SCADDYs are sponsored by global advertising agency network Draftfcb and Razorfish, an interactive marketing and technology company.

Admission to the exhibition and the awards presentation is free and open to the public.

S.C. firm announces Pooler retail project

Carolina Holdings Inc., based in Greenville, S.C., has announced a new retail project on Pooler Parkway in front of Pooler Marketplace, which is anchored by Publix and Georgia Theater.

An announcement from Carolina Holdings praised the location’s access to Interstate 95 and Interstate 16 and said space is available up to 9,000 square feet.

For more information, contact David Winburn at 864-272-0088.

Carolina Holdings, founded in 1986, has completed more than 5 million square feet of development and nearly 120 projects in eight states.


Free enterprise: Hoping for an end to irrational inaction

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Last year, I compared the U.S. economy to a workout fanatic who would have to spend a lot of time in the gym to carry its own weight (that column is available at http://bit.ly/vZr0fA).

Keeping score, as I have been doing since 2006 on this page, may be easy this time around. I could just blame the lackluster performance of the economy — compared to my prediction — on the fact that it was a couch potato. This would also fit our times perfectly since “assigning blame” is what we see all around, especially from our political non-leaders.

Pondering the general tenor of this column while writing it, I was struck by the fact that I could not muster the usual optimism bias, which I always had when looking to the upcoming year.

On Jan. 1, 2011, I had exuberantly written that it was “Time to grab on to that ‘silver lining’” (http://bit.ly/W9BS98) while acknowledging the economy faced serious roadblocks. Similarly, on Dec. 31, 2011, I spoke of “lots of hopeful signs.”

However, this time around, the “fiscal cliff” nightmare overshadowing everything makes it exceedingly difficult to focus on the “half full part” of the (looking) glass.

No matter what happens in the last few hours of 2012, the reality is that people’s lives have already been impacted and disrupted by the “fiscal cliff” inaction.

Businesses are not sure what they should withhold from their employees’ paychecks, middle-class families fear the AMT-trap, organizations providing vital services that are partly financed by the government don’t know what will happen next and neither do their clients. The complete list is even longer and heart-wrenchingly discouraging.

One could add to this pessimistic attitude this year’s “World Economic Outlook” published by the IMF (available at: http://bit.ly/UAWNHn), which names uncertainty in the U.S., slowing growth in China and Euro Zone troubles as culprits for the slowdown in the world economy.

It is exactly that uncertainty caused by our politicians mired in gazing at their own ideological navels, which keeps the U.S. economy vacillating between hopeful signs (one step forward) and troublesome indicators (two steps backward) such as ever larger cash reserves by companies instead of investments and tepid employment growth, if any.

The 2012 Economic survey of the United States by the OECD (available at: http://bit.ly/VbR5XR) said as much and added, even more ominously for the U.S.: “Innovation performance has weakened according to various indicators.”

So here we are at the end of 2012.

Of course, you didn’t think that I would conclude my last column of the year with a sour note, or did you?

Here is a toast to what has sustained our economic model for decades: human ingenuity. I refuse to believe this irrational back-and-forth in Congress will continue.

Both voters and business will not stand for it, and they will find a way to pressure their “representatives” to listen to what George Mason University economist and bestselling author Tyler Cowen calls the “honest middle.”

Those with an ideological axe to grind (“No higher taxes. Ever!” or “Don’t touch entitlements. Ever!”) must not be permitted to have our economy grind to another screeching halt by sending it into a free-fall over a self-inflicted fiscal cliff.

That is my hope for the next year — more rational action and an end to irrational inaction.

Dr. Michael Reksulak teaches economics and public finance in Georgia Southern University’s College of Business Administration. He may be reached by email at mreksula@georgiasouthern.edu.

Dockworkers strike averted

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The International Longshoremen’s Association and United States Maritime Alliance have agreed to extend their contract negotiations for an additional 30 days, averting a potentially crippling strike that was set to begin Sunday on the East and Gulf coasts.

George H. Cohen, director of the Federal Mediation and Conciliation Service, made the announcement Friday morning.

“I am extremely pleased to announce that the parties have reached the agreements as a result of a mediation session conducted Thursday,” Cohen said in a statement.

Although the extension — the second since negotiations began in March — is for only 30 days, Cohen was optimistic a new six-year deal could be reached before it expires at midnight, Jan. 28, especially because the parties made significant progress this week on a major sticking point involving royalty payments to the longshoremen for each container they unload.

“The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement,” he said, adding that the next month will be spent negotiating all remaining outstanding issues, including those relating to New York and New Jersey.

Cohen declined to elaborate on the terms of the royalty agreement.

Georgia Ports Authority Executive Director Curtis Foltz said the announcement “is great news for the more than 350,000 Georgians who rely on our ports” and said he was encouraged by the progress made this week.

“I feel confident that the parties will come together in the next month to agree on a new deal and ensure that we — both the ports and the ILA — will be there for our customers.”

Willie Seymore, president of Savannah’s ILA Local 1414, said his organization is grateful to the mediators and parties who worked to avoid the strike.

“We didn’t want a strike,” he said. “The community doesn’t want a slowdown, and the state doesn’t need that kind of disruption. There are 352,000 people who depend on that river.

“I have the best workforce in the entire ILA, and we take a lot of pride in what we do,” Seymore said. “This is the No. 2 port on the East Coast and the No. 4 port in the country. We didn’t get that way by not doing good work.”

A work stoppage would have frozen major ports and idled shipments of a vast number of consumer products, from electronics to clothing, and kept U.S. manufacturers from getting parts and raw materials delivered.

Measured in its broadest terms, the total economic impact of Georgia’s deepwater ports is $66.9 billion annually, meaning a work stoppage of just one week would cause more than a billion-dollar hit on the state’s economy.

Business groups expressed relief that the two sides had agreed to keep the ports open.

“A coast-wide port shutdown is not an option. It would have severe economic ramifications for the local, national and even global economies and wreak havoc on the supply chain,” said National Retail Federation President Matthew Shay.

Savannah newsmakers

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HIRES/PROMOTIONS

KURT ENGLUND

New job title: General manager at the Bohemian Hotel

Company: The Kessler Collection

Duties: Englund’s duties as general manager include overseeing hotel operations, management of staff, budgeting, project management and ensuring elite guest interaction.

Related work experience: Englund served as general manager at Bristol Ventura on Panama’s Pacific Coast, as well as management positions at Four Seasons Resort Punta Mita, Four Seasons Hotel Toronto, Four Seasons Resort Whistler, Four Seasons Resort Costa Rica and Four Seasons Mexico.

Education: Englund is a graduate of Washington State University with a B.A. in hotel and restaurant administration.

HONORS/AWARDS

Savannah attorneys honored

Weiner Shearouse, a general practice law firm in Savannah, has announced that Georgia Trend will honor two Weiner Shearouse attorneys in the magazine’s annual “Legal Elite” issue in December, which recognizes the top attorneys in the state of Georgia.

Attorneys earning the Legal Elite honor for 2012 include:

• Aron G. Weiner

• William W. Shearouse, Jr.

LMI: Manufacturer of Year

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A reputation for quality and reliability in an industry that demands adherence to the strictest of standards has propelled LMI Aerospace Inc.’s Savannah facility to unprecedented growth, making them a strong asset to the industrial community and the Savannah Morning News’ 2012 Manufacturer of the Year.

It’s an honor that LMI knows well. Last year, the company’s Savannah facility was named the Georgia Small Manufacturer of the Year at the Governor’s Awards in Atlanta. And, in February, the facility was named Supplier of the Year for 2011 by Aviation Partners Boeing.

Located on Coleman Boulevard, LMI prepares specialty airframe parts for riveting, machined parts and assemblies for nearby Gulfstream Aerospace, a series of large special after-market wing modification kits to Aviation Partners Boeing in Seattle, Wash., and metallic and composite assemblies for Boeing in South Carolina.

With Gulfstream in particular, the company has jointly developed a “just in time” and “point of use” delivery process using LEAN manufacturing practices. Because LMI must be able to provide the required assemblies when and where they are needed, general manager Phil Lajeunesse said, the assemblies are delivered directly to the point of use in Gulfstream’s Savannah manufacturing facility.

The company performs the service so well that for 20 months in a row they have posted 100 percent on-time deliveries to all major clients.

And that, Lajeunesse said, is a direct reflection of the work ethic and attitude of the company’s 55 employees.

“This is just a really great group of people,” he said. “They are both customer and quality focused and do their jobs with integrity and enthusiasm.”

Lajeunesse also credits partners Georgia Quick Start and Savannah Technical College for helping to provide the technical skills and quality training critical to the company’s success.

“Quick Start has created extremely detailed training manuals for each of our processes, making it possible to bring new people on board in a fraction of the time it once took,” he said. “And Savannah Tech’s programs tailored to aerospace are a tremendous training resource for the local community.”

The company started here in 2003 with five employees, building fuselage skin kit assemblies for Gulfstream. Six years ago, it added Aviation Partners Boeing to its client list, producing a kit that supports the installation of winglets on the Boeing 737, 757 and 767. Today, LMI also provides machined parts and aircraft assemblies to both Gulfstream and Boeing.

Meanwhile, LMI’s local presence has grown from 28,800 square feet to 111,400 square feet, the latest expansion completed just last month.

The company just finished building a world-class, $3.2 million high speed machining center in June of this year, using the latest in leading-edge machining technology and adding the high-speed machining of aircraft aluminum to its complement of services.

A second $1.6 million machine is being installed, and an automatic pallet system is on order.

While the company creates value for its customers, it also adds value to the community, said human resources manager Cynthia Cartier-Lewis.

“Team members hold blood drives, food drives, provide assistance to a variety of children’s medical and residential support services and provide funding and team to participate in the bi-annual Rebuilding Together Savannah,” she said.

As the Savannah facility seeks to become a partner with the local community, it also sets an example for its corporate community. The annual Savannah facility food drive that began in 2005, for instance, has grown into a companywide competition in which LMI divisions nationwide compete to bring in the most cans per capita for their communities.

To encourage ongoing education, LMI has developed a companywide “Learning Academy” where all employees receive developmental training in various areas. Additionally, the company reimburses employees for educational tuition assistance and provides scholarships to employees’ children, including STEM scholarships for the pursuit of careers in the science, technology, engineering and math fields.

“Our goal is to be a world-class manufacturing facility,” Lajeunesse said. “But we can only do that with the buy-in of our employee team.

“If we can get our people to act and feel like owners of the company, we all win.”

LMI AEROSPACE

• Local leadership: Phil Lajeunesse

• Business sector: manufacturing

• Local employees: 55

• Website: www.lmiaerospace.com

• What it does: LMI Aerospace Inc. is a leading provider of structural components, assemblies and kits to the aerospace, defense and technology industries. In Savannah, the company fabricates, machines, assembles and kits, aluminum and specialty composite materials for the aerospace industry primarily supporting Gulfstream, Boeing and Aviation Partners Boeing companies.

BEST OF SAVANNAH BUSINESS 2012

Every day through today, the Savannah Morning News will profile companies and organizations that made major contributions to the local business environment in the past year. The Exchange staff chose the honorees — from a list of nominees submitted by local business leaders — utilizing broad criteria, from growth and success to philanthropy and community involvement.

• TUESDAY: Newcomer of the Year — Savannah Slow Ride/Crawler Fabrications

• WEDNESDAY: Business Advocate of the Year — World Trade Center Savannah

• THURSDAY: Comeback Business of the Year — The Coastal Bank

• FRIDAY: Education Partner of the Year — JCB Apprenticeship Program

• SATURDAY: Entrepreneur of the Year — Wet Willies

• TODAY: Manufacturer of Year — LMI Aerospace

COMING JAN. 6

Savannah Morning News business writers Mary Carr Mayle and Adam Van Brimmer provide a look ahead to what to expect in each sector of the economy in 2013 in the Savannah metro area.

Exchange in brief

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Logan’s Roadhouse to open in Pooler

Construction is under way on a new Logan’s Roadhouse restaurant at 220 Pooler Parkway with plans to open in February.

“Our team searches the country for the best restaurant sites, and we’re excited about opening our second location in the Savannah area,” said Tom Vogel, president and chief executive officer of Logan’s Roadhouse. “We see a lot of opportunity in this neighborhood.”

The menu will feature more than 30 entrees, including aged steaks hand-cut on the premises, grilled chicken, fresh ground steakhouse burgers, baby back ribs, seafood and specialty salads.

The 6,500-square-foot restaurant will seat 237 guests and will employ about 130 area people.

Headquartered in Nashville, Logan’s Roadhouse Inc. runs more than 230 company-operated and 26 franchised Logan’s Roadhouse restaurants in 23 states.

For more information, go to logansroadhouse.com.

Palmetto Moon to consolidate Bluffton locations

Bluffton, S.C. — Palmetto Moon will consolidate its two Bluffton stores on Jan. 1, co-owner Eric Holzer has announced.

Merchandise from the outlet store at 1252 Fording Island Road in the Tanger Outlet Center 1 will be moved to the retail store at 1460 Fording Island Road, Suite 270, at the Tanger 2 entrance next to Old Navy on Dec. 31. In addition to its current inventory of South Carolina products and specialty items, the retail store will feature outlet clearance merchandise.

“Bluffton has been an incredible community for us to do business,” said Holzer. “It made sense to bring all of our merchandise into one convenient location for our customers.”

Founded in 1992, Palmetto Moon is a regional specialty gift and South Carolina lifestyle apparel retail chain with corporate headquarters in Charleston, S.C.

For more information, go to palmettomoononline.com.

Habitat for Humanity to take applications

Habitat for Humanity Savannah will open its 2013 Habitat Homeownership process to pre-qualification applications on Jan. 14. The deadline to submit an application is 5 p.m. on Jan. 21. Applications submitted after that deadline will not be considered.

Applications are available electronically at habitatsavannah.org/Apply.html or by visiting the organization’s 1106 E. 70th Street office where forms can be found on the organization’s front porch.

Habitat’s family selection committee screens applicants on the basis of three criteria: demonstrated need; assessment of current residence as substandard; and evidence of financial ability to repay a mortgage. Anyone who’s selected will receive a notice form the committee inviting them to take part in a mandatory information session in February.

For more information, contact Stepheny Campbell at 912-353-8122.

Predictions for the Savannah economy in 2013

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So what’s in store for the Savannah area economy in 2013?

Predictions are problematic at this point because of some significant variables — ones that are especially frustrating since they are entirely under human control.

Of first concern is the so-called “fiscal cliff,” which the blog Calculated Risk has more aptly called an “austerity slope.”

To put it simply, there’s no deadline for action — fiscal policy can be adjusted throughout next year. Going over the cliff will not be a “crisis” in any conventional meaning of the term.

In fact, going over the cliff is the surest way to address our deficit and debt, if you view those as more important than the short-term health of the economy.

I’m assuming that in early January we will see an extension of the Bush-era tax cuts for the middle class, an expiration of the temporary cuts to payroll taxes and some other tax increases affecting a relatively small number of wealthy Americans.

We’ll probably also see some cuts in federal spending, although it’s highly unlikely that the deep cuts mandated by current law will take full effect. As much as we like to rail against federal spending, Americans broadly oppose any cuts to the most costly programs — Social Security, defense, Medicare and Medicaid.

If a messy solution to the cliff doesn’t also include a debt ceiling increase, then we could see more confidence-crushing brinksmanship in the coming months.

The likely tax increases and spending cuts will bring the federal budget a little closer to balance, but those policies will also hurt spending and reduce GDP.

Austerity is a drag.

Then there’s the more pressing issue of the impending longshoremen’s strike on the East Coast.

That labor dispute might have been settled by the time you’re reading this. Or it might be resolved, as I’m guessing, within a week.

However, any strike will damage the local economy. The longer the strike lasts, the more lasting the damage is likely to be.

That’s a lot to worry about, and we’ve already seen a couple of fairly gloomy forecasts for the Savannah area from economists at Georgia State and UGA.

But there are many reasons to be upbeat.

Reasons for optimism

First off, as I discussed in Tuesday’s column, recent employment estimates for the Savannah metro area (Chatham, Effingham and Bryan counties) show that the local job market will finish the year in far stronger shape than the consensus prediction a year ago.

Employment is a lagging indicator of economic conditions, so the recent hiring surge largely reflects business conditions going back many months. But all those added employees should significantly boost both local spending power and production in 2013.

While employment is a lagging indicator, residential investment is a leading indicator. Typically, new home construction is a key driver as the U.S. pulls itself out of recessions, but that wasn’t true in recent years because of the overbuilding during the housing bubble.

But now new home construction is contributing positively to the economy rather than dragging it down.

According to the latest Coastal Empire Economic Monitor from Armstrong Atlantic State University’s Center for Regional Analysis, the seasonally adjusted number of home building permits jumped 34 percent in the third quarter compared to the second.

Don’t look for housing starts, home sales or prices to climb quickly back to their pre-recession peaks, but we should see improving numbers in all those areas in 2013.

We will also see continued forward momentum from the significant number of major investments announced in 2012.

New hotels are planned on River Street and in other locations near the historic district. Several significant new residential projects are planned for the greater downtown area, too.

Renovations continue on Drayton Tower, which is now leasing and has a snazzy new website (www.draytontowersavannah.com). Work also continues on the new Victory Drive plaza that will be home to Whole Foods Market.

Aside from the question marks regarding the port, Savannah’s other core economic sectors seem in good shape for the new year, including tourism, manufacturing, health care and education.

Through the recession and the slow recovery, we’ve also seen the development of a strong DIY entrepreneurial spirit, a trend that bodes well for 2013 and beyond.

And a few words of caution

Of course, the recovery from the 2007-09 recession still isn’t over. It will likely be 2014 before employment reaches its previous peak, and we’re certain to see more stores and restaurants close because of the years of weak sales.

Keep in mind that January is always an especially weak month.

The city of Savannah will also have to be careful not to end up in another divisive public brouhaha if and when the search for a permanent city manager begins. We will likely also be gearing up for an important but contentious renewal of the 1 percent special purpose local option sales tax.

There are all sorts of other factors that could hurt the Savannah economy in 2013 — from the ongoing woes in Europe to hurricanes.

But we turned a small corner in 2012, and the trends generally look pretty good for next year if we can avoid self-inflicted wounds.

City Talk appears every Tuesday and Sunday. Bill Dawers can be reached via billdawers@comcast.net and http://www.billdawers.com. Send mail to 10 East 32nd St., Savannah, GA 31401.

Business calendar

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Georgia Tech Professional Education Offers courses

Georgia Tech Professional Education will provide an Occupational Safety and Health Standards for the Construction Industry (OTI 510) course at the Georgia Tech-Savannah campus Jan. 14-18. This course can be used to obtain a Construction Safety and Health Certificate from Georgia Tech Professional Education and is required for anyone who would like to become a trainer.

Date: Jan. 14-18

Location: Georgia Tech-Savannah campus

For more information, go to www.gtpe.gatech.edu/oti510

Constant Contact workshop and lunch

A new year brings new opportunities for businesses and other organizations to create and grow their customer base at a lunch and learn workshop featuring a Constant Contact professional Tuesday, Jan. 15.

Date: Jan. 15

Location: Cambria Suites, 50 Yvette Johnson Hagins Drive, near Interstate 95 exit 104.

Cost: Register and pre-pay by Jan. 7 and cost is $17 for Pooler Chamber members and $22 for non-members. After Jan. 7 and until Jan. 14 add $5 to cost per person. This event has limited seating, so after Jan. 14, cost is $27 per Pooler Chamber member and $32 per non-member, based on availability.

For more information contact office@poolerchamber.com or 912-748-0110

2013 Economic Outlook Luncheon

The Economic Outlook Luncheon is held in collaboration with the University of Georgia’s Terry College of Business and Armstrong Atlantic State University. The local economic forecast will be presented by Dr. Michael Toma of Armstrong Atlantic State University. And the state, regional and national projection will be delivered by Dean Robert Sumichrast of Terry College of Business.

Date: Jan. 17

Time: Noon-2 p.m.

Location: The Westin Savannah Harbor Golf Resort & Spa

Cost: $40 for members ($400 for a table) and $50 for nonmembers ($500 for a table)

Purchase tickets at SavannahChamber.com

Contact: Margaret Mary Russell at 912-644-6432

Business after hours

The Hilton Head Island-Bluffton Chamber of Commerce January’s Business After Hours will be held at The Beach House — A Holiday Inn Resort. Enjoy casual networking, great food and complimentary beer and wine, along with great door prizes and more.

Date: Jan. 17

Time: 5:30-7 p.m.

Location: The Beach House — A Holiday Inn Resort

Cost: $10 for chamber members and $20 for non-members

For more information, go to hiltonheadchamber.org.

Tourism council luncheon

The organization will hold its 2013 membership luncheon on Jan. 17 at the ANdaZ. The speaker will be Savannah Mayor Pro Tem Van Johnson

Date: Jan. 17

Time: 11:30 a.m.

Location: The ANdaZ, 14 Barnard St.

For more information, call 912-232-1223 or email tlc@tourismleadershipcouncil.com.

Tourism council

schedules awards dinner

The Tourism Leadership Council wil1 hold its fifth annual tourism awards and scholarship dinner Thursday, Feb. 21, at the Hyatt Regency Savannah. The cocktail reception will begin at 5:30 p.m. with dinner and the awards program from 7-9 p.m.

Date: Jan. 21

Time: 5:30-9 p.m.

Location: The Hyatt Regency Savannah, 2 West Bay St.

For more information, call 912-232-1223 or email tlc@tourismleadershipcouncil.com.

Hilton Head-Bluffton Chamber restaurant week

Modeled after successful culinary events in New York and other cities, more than 50 member restaurants will offer special prix-fixe multi-course menus for Lowcountry diners, Jan. 26-Feb. 2.

Date: Jan. 26-Feb. 2

For more information go to hiltonheadchamber.org.

Business Expo

Join the Hilton Head-Bluffton Chamber for Business EXPO. With more than 2,000 attendees, Business EXPO is the largest business-building and networking event in the Lowcountry.

Date: Jan. 26-27

Location: The Westin Hilton Head Island Resort & Spa

To register, go to hiltonheadchamber.org or call 843-785-3673.

Hilton Head-Bluffton Chamber young

professionals group

The popular networking group for the 40-and-under set is an opportunity to meet with business colleagues in a casual setting.

Date: Wednesday, Jan. 30

Time: 5:30-7 p.m.

Location: Corks Wine Bar, Bluffton

To register, go to hiltonheadchamber.org.

Hilton Head-Bluffton Chamber Ball

Enjoy fine dining, dancing and entertainment at the annual event honoring the outstanding individuals and organizations that make a difference in the community.

Date: Saturday, Feb. 2

Time: 6:30 p.m.

Location: The Westin Hilton Head Island Resort & Spa

For more information go to hiltonheadchamber.org or call Connie Killmar at 843-785-3673.

Tee Up for Habitat

Habitat for Humanity of Savannah’s 11th golf tournament will be held at the Savannah Quarters Country Club in Savannah on April 8, 2013. This much-anticipated event, sponsored by Gulfstream Aerospace, draws the titans of local industry and business to this annual fundraising event.

Date: April 18, 2013

Location: Savannah Quarters Country Club

For more information, please contact Michelle Hunter at 912-353-8122 or hunter@habitatsavannah.org.

ONGOING

Pooler Business Network

When: Every first and third Thursday, 11:15 a.m. to 1 p.m.

Where: Western Sizzlin, U.S. 80 in Pooler

Information: RSVP to Jason Torres at jasonjtorres@gmail.com.

Downtown Business Professionals Chapter
of BNI

When: 11:30 a.m. every Thursday

Where: Hilton Savannah DeSoto, 15 East Liberty St.

Information: For information, call Kevin Brown at 912-447-1885 or email rkbrowndc@msn.com.

The Islands Chapter —
BNI group

When: Each Thursday at 8 a.m.

Where: Johnny Harris banquet facility, 1652 East Victory Drive

Information: Contact Kathy Salter at studio@dalyandsalterphoto.com.

Savannah Women’s
Business Network

When: Every second and fourth Wednesday, 11:15 a.m. to 1 p.m. for lunch.

Where: The Exchange Tavern on Waters Avenue

Cost: Cost for lunch

Information: RSVP to Kari Brown at kcbrown@colonybank.com.

Historic Savannah
Chapter ABWA

When: 6-7:50 p.m. second Thursday.

Where: Candler Heart & Lung Building, room 2.

Cost: Free

Information: Call 912-925-4980 or email blynneroberts@yahoo.com.

Toastmasters Club

When: Noon each Tuesday

Where: Savannah Mall across from “ Hill of Beans” Coffee Shop.

Information: Call 912-844-9139 or go to www.sbcsouthsidetm.com.


Exchange in brief

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Gas prices jump in metro Savannah

Average retail gasoline prices in Savannah have risen 12.6 cents a gallon in the past week to $3.38 a gallon on Sunday, according to GasBuddy’s daily survey of 262 gas outlets in Savannah.

The national average has increased 3 cents a gallon in the last week to $3.27, according to gasoline price website GasBuddy.com.

Prices Sunday were 16.4 cents a gallon higher than the same day one year ago and are 8 cents per gallon higher than a month ago. The national average has decreased 13.2 cents a gallon during the last month and stands 1.7 cents higher than a year ago.

“2012 was a year that focused the spotlight on our nation’s oil refineries. It showed us the vulnerability of our infrastructure and what can happen to prices at the pump when infrastructure is compromised,” said Patrick DeHaan, GasBuddy.com senior petroleum analyst.

With elevated prices across much of the country for prolonged periods, 2012 brought the highest average price ever for U.S. consumers: $3.60 a gallon.

Chiropractic clinic opens
in Pooler

The Joint of Pooler, a new chiropractic clinic, will hold its grand opening ceremony Friday at 485 Pooler Parkway in the Pooler Marketplace Shopping Center with a ribbon-cutting at 1 p.m. and an open house from 1-7 p.m.

The clinic is owned and operated by Robyn Meglin, and its doctor is Alexander S. Bridwell, who received a biology degree from Valdosta State University and received a doctor of chiropractic from Life University in Marietta.

The clinic will be open from 10 a.m.-7 p.m. Monday-Friday and from 10 a.m.-4 p.m. Saturday. For more information, call 912-330-7100.

The Joint Corp. was founded in Tucson, Ariz., in 1999 and has 332 clinics open or in development in 25 states.

Hargrove wins magazine’s job creators award

Mobile, Ala. — Hargrove Engineers + Constructors has been awarded the Hire Power Award from Inc. Magazine recognizing it as the No. 1 company in the state of Alabama for creating engineering jobs.

Inc.’s Hire Power Award is a salute to the job creators rebuilding the economy by putting Americans back to work. Hargrove is one of 100 companies across the U.S. who have received this award. In 2008, the company had 273 employees and has increased its workforce to 702 in just five years.

Headquartered in Mobile, Hargrove has offices in Savannah; Atlanta; Baton Rouge, La,; Birmingham and Decatur, Ala.; Memphis; Pascagoula, Miss.; and Philadelphia.

New Save-A-Lot open on Bull Street

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Save-A-Lot is now open at the corner of Bull and 40th streets in the space formerly occupied by David’s Supermarket.

The building had been sitting empty for a number of years, so it’s good to see activity there again.

The store will employ a couple of dozen people, increase the tax base and make that corner more vibrant.

I’m not a fan of surface parking lots on key corners in commercial districts, but Save-A-Lot’s is fairly small and decently landscaped.

There’s a Save-A-Lot on the Southside, too. According to the company website, the chain has more than 1,300 stores around the country.

The focus is on low prices. There’s less variety than in larger stores, and various efficiencies are in place that limit the need for labor.

The new Save-A-Lot has opened in one of Savannah’s most diverse neighborhoods.

A few blocks west, there are pockets of poverty amidst many hopeful signs of renovation and new investment.

To the north and east, the Thomas Square neighborhood has continued to strengthen and attract new businesses right through the housing bust, recession and the slow recovery.

An increasing number of young professionals and college students occupy apartments and houses in the neighborhood, a trend encouraged in part by the presence of SCAD’s Arnold Hall. Businesses like Foxy Loxy and Butterhead Greens have thrived off this new population.

A few blocks south of the new Save-A-Lot are Ardsley Park and other neighborhoods with a large number of owner-occupied units and longtime residents.

Some customers will be on foot, some on bicycles, some in cars.

White, black, old, young, native, transient, poor, wealthy, working class, employed, unemployed, self-employed — all that and more can be found within a few blocks of the new grocer.

How will Save-A-Lot fare in this multi-cultural stew?

I think it’s safe to say the store will need to appeal to most if not all of those constituencies if it’s going to thrive.

Kroger on East Gwinnett Street has managed to bridge those various gaps, but the Food Lion off West Gwinnett Street that failed a year ago never seemed to appeal successfully to any segment of downtown’s varied population.

However things turn out, Save-A-Lot’s opening is welcome news as we begin 2013. It’s just one of various significant investments in the greater downtown area announced last year.

I know some folks are hoping for bigger and better things along the Bull Street corridor.

But cities don’t go from zero to 10 in a flash. Blighted buildings in urban neighborhoods don’t typically turn into luxury supermarkets overnight.

Here’s to positive incremental steps in 2013.

 

City Talk appears every Sunday and Tuesday. Bill Dawers can be reached via email at billdawers@comcast.net and www.billdawers.com. Send mail to 10 E. 32nd St., Savannah, GA 31401.

 

 

A surprisingly good vintage as market logs gains

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NEW YORK — If you’d told investors what was going to happen in 2012 — U.S. economic growth at stall speed, an intensifying European debt crisis, a slowdown in China, fiscal deadlock in Washington, decelerating corporate earnings growth — and asked how the stock market would perform, few would have predicted a good year.

But that’s just what they got.

The Dow Jones industrial average, the Standard & Poor’s 500 and the Nasdaq composite index all ended the year substantially higher, despite losing ground in the final days of year as concerns about the looming “fiscal cliff” mounted.

The Dow gained 7 percent for the year, its fourth consecutive annual advance, having started the year at 12,217. The S&P 500, which started the year at 1,257, is up 13 percent, beating the 7.8 percent average annual gain of the past 20 years. The Nasdaq also logged a better-than-average gain, 16 percent.

Including dividends, the total return on the S&P 500 index was even better: 16 percent.

Financial companies led the gains among S&P 500 stocks, advancing 26 percent, as banks continued their restructuring efforts after the recession. Bank of America more than doubled, gaining $6.05 to $11.61 and Citigroup advanced $13.25, or 50 percent, to $39.56. Utilities, the best-performing industry group last year, was the only sector of 10 industry groups in the index to decline, dropping 2.9 percent.

“There’s been a lot thrown at this market, and it’s proven to be very resilient,” said Gary Flam, a portfolio manager at Bel Air Investment Advisors in California. “Here we are at the end of the year, and it’s still relatively strong.”

Stocks started the year on a tear, with optimism about an improving job market and a broader economic recovery providing the backdrop to the S&P 500’s best first-quarter rally in 14 years.

The index advanced 12 percent by the end of March, closing the quarter at 1,408, its highest in almost four years, with financial companies and technology firms leading the charge. The Dow ended the first quarter at 13,212, logging an 8 percent gain.

Apple was one of the star performers of the first quarter and was probably the year’s most talked-about company.

The popularity of the iPhone and iPad led to staggering sales growth that helped push its stock up 48 percent to almost $600 at the end of March. Apple also announced a dividend and overtook Exxon Mobil as the U.S.’s most valuable company.

At the start of the second quarter, the intensifying European debt crisis and concerns about the impact that it would have on global economic growth prompted a sell-off.

By the start of June, U.S. stocks had given up the year’s gains. Borrowing costs for Spain surged and investors fretted over the outcome of Greek elections that had the potential to pull the euro currency bloc apart.

The outlook for growth in China, the world’s second-largest economy, also began to weigh on investors’ minds. Economic growth there slowed to 8.1 percent in the first quarter as export demand waned, and investors worried that it would keep falling.

The Dow fell as low as 12,101 on June 4. The S&P dropped to 1,278 June 1.

The second quarter was also marred by Facebook’s initial public offering.

The stock sale was one of the most keenly anticipated initial public offerings in years, but investors didn’t “like” the $16 billion market debut. The social network priced its IPO at $38 per share, and the stock started to fall soon after the first day of trading on concern about the company’s mobile strategy.

Facebook closed as low as $17.73 on Sept. 4 before recovering some of the ground it lost to close the year at $26.62.

Company earnings reports were also starting to make uncomfortable reading for investors. Earnings growth for S&P 500 companies fell as low as 0.8 percent in the second quarter, according to S&P Capital IQ data.

The stock market only recovered its poise after the European Union put together loans to bail out Spain’s banks on June 10 and the head of the European Central Bank, Mario Draghi, pledged to do “whatever it takes” to save the euro.

Speculation that the Federal Reserve was set to provide the economy with more stimulus bolstered stocks.

The rally even survived a blip when a software glitch at trading firm Knight Capital threw stock prices into chaos Aug. 1. Erroneous orders were sent to 140 stocks listed on NYSE, causing sudden price swings and surging trading volume.

Apple launched the iPhone 5, the latest version of its smartphone, in September, and the company’s stock climbed to a record close of $702.10 on Sept. 19. That gave Apple a market value of $658 billion, and many analysts predicted more gains lay ahead.

By the time Fed Chairman Ben Bernanke announced Sept. 13 that U.S. central bank would start a third round of its bond-purchase program, which is intended to push longer term interest rates lower and encourage borrowing and investment, the S&P 500 had surged 14 percent from its June 1 low. A day later, the index peaked at five-year high of 1,466. The Dow Jones reached its peak for the year of 13,610, Oct. 5.

As is often the case on Wall Street, investors “bought the rumor and sold the fact,” and quickly turned their attention to the challenges that lay ahead.

Analysts had also been cutting their outlook for growth in the final quarter of the year. At the start of the second quarter, estimated earnings growth for the period was 15.7 percent. That forecast had fallen to 3.4 percent by Dec. 27.

“One of the blessings that supported the stock market’s moves in prior years was earnings growth,” said Lawrence Creatura, a portfolio manager at Federated Investors. “That’s true this year, but at a decelerating rate. It’s not gone unnoticed that earnings growth is slowing, and many forecasts now include a full stall.”

Apple’s halo also began to slip in the final three months of the year. Its iPad Mini tablet, launched Nov. 2, met with lukewarm reviews, there were hints of unrest among its executive ranks. Investors began to fret that the intensifying competition in the smartphone market would crimp Apple’s profits. The stock tumbled, and despite rallying in recent days is still down 27 percent from its September peak.

The year’s final twist came in Washington.

Stocks wavered ahead of a presidential election that at times seemed too close to call, and while President Barack Obama ultimately reclaimed the White House by a comfortable margin, the Republicans retained control of the House.

The divided government set the stage for a tense end to the year as Democrats and Republicans sought to thrash out a budget plan that would avoid the U.S. falling off the “fiscal cliff,” a series of tax hikes and government spending cuts that economists say would push the economy back into recession.

Initially, markets fell as much as 5 percent in the 10 days after the elections as investors worried that a divided government would not be able to agree on a budget plan to cut the U.S. deficit.

While the S&P 500 managed to recoup those losses by December on optimism that a deal would be reached, some investors are still urging caution. Any agreement will still be “ill-tasting medicine” to the economy, as it will almost certainly involve both spending cuts and tax hikes, says Joe Costigan, director of equity research at Bryn Mawr Trust Company.

“The question is, how much will the drag from the government be offset by business and personal spending,” says Costigan. “The market has reasonable expectations for growth priced in, so I don’t think we’re going to see a big run-up.”

Exchange in brief

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Allgood Pest Solutions buys firms

DUBLIN — Allgood Pest Solutions has announced it has bought three pest control firms — Pied Piper of Charleston, S.C.; South Georgia Termite & Pest Control of Douglas, Ga.; and James Aiken Pest Control of Augusta.

“Trust is important in our industry,” said Allgood Pest Solutions CEO Lanny Allgood, “and we’ve ensured our new customers that we will do all we can with our experience and resources to exceed their expectations throughout the acquisition period.”

Jon Loveland, previous owner of Pied Piper, will join the team at Allgood Pest Solutions. Loveland has more than 30 years of industry experience and has held leadership positions with the South Carolina Pest Control Association as regional director and Charleston Pest Control Association as a two-term president.

Allgood, founded in 1974, will add more than 10 jobs to manage the increase of more than 2,000 new customers.

For more information, call Greg Vines at 478-275-5404 or go to allgoodpestsolutions.com.

Xerox, service club donate
to local YMCA

Xerox Corporation and the local chapter of Omega Psi Phi Fraternity, Mu Phi Chapter, teamed up to support the Teen Success Club at the West Broad Street YMCA with a contribution of $3,300.

The contribution is part of the Xerox Community Involvement program, which is designed to support communities where they do business. The firm partnered with the local chapter of Omega Psi Phi Fraternity, Mu Phi Chapter, an international service organization active in the Savannah community.

The Teen Success Club is available to any student in grades 6-12. Club members develop, with volunteer and staff mentors, a high school graduation plan and a post-high school career plan. They visit colleges and universities, are assisted with SAT and CRCT preparation and get to interact with different professionals in the community to learn about career opportunities.

For more information, call 912-233-1951 or go to www.westbroadstreetymca.org.

Humane Society to host sale

The Humane Society for Greater Savannah will host an “After Christmas” thrift shop sale on from 9 a.m. to noon Saturday in the Humane Society parking lot at 7215 Sallie Mood Drive.

Hundreds of goods and treasures will be sold at reduced rates, and discounts will be offered on items.

For information, visit www.humanesocietysav.org or contact Erin Fontes, volunteer and special programs coordinator, at 912-354-9515, ext. 112 or efontes@humanesocietysav.org.

I'm a believer

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This column is my second to last. As announced in this paper on Dec. 20, I was recently recruited and offered a position in Cincinnati. Although the decision was difficult to make, I accepted the offer.

At times, this column has been a bully pulpit for me to muse on what is good, bad, special or ugly in our region. I’ve used this space to introduce readers to the talents of the creative class iand to the innovation and creativity that abounds in our backyards. I’ve also used this column to spotlight the behind-the-scenes work of The Creative Coast, a not-for-profit organization I am proud to have led.

The Creative Coast lineage dates back to the late 1990s. A group of local businessmen and women created a volunteer-driven organization under the moniker CBETA. The focus for that organization was to explore the possibility of growing creative, tech and innovation-based companies in the region. The question to explore was, is there more to Savannah than the ports, manufacturing, warehousing and the traditional economies?

By the mid-2000s, a small revolution was afoot in America, led in part by Richard Florida, a leading theorist on economic competitiveness, cultural trends and technological innovation. His theory proposed successful urban regeneration could be achieved through the growth of a creative class economy. CBETA soon morphed (for lack of a better word) into The Creative Coast Initiative, an organization that married the work of CBETA with Florida’s vision. A staff was put in place, mission and vision statements were developed and recruiting, developing and producing creative class entrepreneurs and companies began.

I was part of the team that transitioned the organization in 2010. We worked tirelessly to modernize the organization, install a governing board and to develop a new set of values, mission and vision. Most important, we helped the organization gain independence.

We received support from the city of Savannah and SEDA. And we began to rely heavily on our community for support, as well.

The Creative Coast’s goal for Savannah is simple. We work to create an atmosphere of entrepreneurship. We host events, programs and workshops that cultivate a sense of community among the region’s entrepreneurs and creative types. We curate and maintain a robust website and social platform. We meet with and consult small business owners, students and individuals living in the region.

Our goal is to make Savannah’s economy more diverse, to broaden employment opportunities and to promote Savannah as a great place to live and work for those in the fields of creativity and innovation.

We believe in the people of Savannah: The entrepreneurs, the technologists, the social media evangelists, the restaurateurs, the artists, painters, photographers, motion graphics firms, fashion designers, film directors, web developers, graphic designers, tinkerers, welders, carpenters, sculptors, project managers and app developers.

These are our people.

This is our economy.

I am happy to say The Creative Coast is financially sound, solidly staffed, independent and governed by an incredible board. The staff that we have in place today is solid. Our mission, our community and our efforts are as strong and important today as they have ever been.

After announcing my plans to pursue new opportunities to The Creative Coast’s board, I was honored when they asked if I would join the board of directors in 2013. I agreed to serve for a few reasons.

First, I believe in the mission of the organization and the promise of Savannah.

Second, I believe there is more work to be done. The creative class in our region needs a voice and a leader. That voice and that leader is The Creative Coast.

Finally, I believe there is more to Savannah than tourism, the port and manufacturing. Imagine how much stronger we would be as a community if our small, independent businesses were honored, recognized and respected in the same way we treat our industry leaders? These small creative and innovative companies help define our region, but their voice is often lost.

My hope is that we will begin to honor the thousands of local entrepreneurs who are clicking away, building micro-economies that sustain the Savannah region.

That is my hope. That is why I believe in The Creative Coast’s mission. That is why I am proud to have served as the director of The Creative Coast. And that is why I will continue supporting The Creative Coast in 2013 and beyond.

Jake Hodesh is executive director of The Creative Coast, a not-for-profit organization that promotes the creative and entrepreneurial community in the region. He can be reached at 912-447-8457 or jake@thecreativecoast.org.

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