by Scott Miller
smiller@scbiznews.com

The gears started turning as soon as Boeing Co. announced plans to locate in South Carolina. 

Clemson University quickly identified contacts at the aircraft maker’s research-and-development office, with an eye toward a partnership similar to that of the university’s multimillion-dollar International Center for Automotive Research.

The Upstate Alliance, meanwhile, put together a list of all the suppliers in the Boeing 787 chain.

“We know who they are, and we’re going to go after them,” said Upstate Alliance CEO Hal Johnson. “I think you will find many, many announcements related to this Boeing announcement.”

These are the efforts that will turn Boeing’s announcement into something even bigger.

Not only could Boeing bring new suppliers, its presence could present new opportunities for manufacturers already located here, said Ed McCallum of McCallum Sweeney Consulting, which assisted Boeing when the company was deciding where to locate its first 787 plant.

“This makes sense for Boeing,” he said.

The Midlands has a number of advanced manufacturing firms that can support the aviation industry as well, said David King, director of marketing and new industry for the Central South Carolina Alliance.

McCallum rattled off some well-known corporate names as potential beneficiaries of the Boeing announcement in the short term. Michelin North America supplies aircraft tires.  General Electric already builds turbine blades in Greenville for the 787 and develops aircraft engines at other facilities. Cytec Industries plans to make carbon fibers in Greenville for the aerospace industry.

He also mentioned American Titanium Works, which plans to build a $422 million facility in Laurens County and accompanying R&D center at CU-ICAR. Originally, the company didn’t plan to supply titanium to the aviation industry, said McCallum, who assisted ATW in its site selection. That could change, McCallum said, and if it does, ATW could attract even more suppliers to the Upstate.

“The competitive advantage up here will be in advanced materials,” McCallum said.

Research and Development

That’s an advantage Clemson hopes to capitalize on as well. The university has the growing Advanced Materials Center in Anderson that is conducting research on composite materials that could be used in the aerospace industry, said John Ballato, associate vice president for research and economic development at Clemson.

The South Carolina Research Authority is building an Innovation Center there as well, where young start-up companies will be working to bring new advanced materials to the market.
“The fact that (Boeing is) making a significant investment in South Carolina bodes well for us going back to the corporate office and seeing if there are some potential R&D partnerships with the university that could help them accelerate their return on investment in this state,” Ballato said.

He referred to CU-ICAR as one of two bookends for Clemson. The other would be a partnership with Boeing in the Lowcountry.

At CU-ICAR, BMW Manufacturing, Timken Co., Michelin North America and others have invested millions in research.

As soon as Ballato heard the news about Boeing, he contacted an old friend who once worked for Boeing’s R&D department.

“He can help identify the right people at Boeing to contact,” Ballato said.

“Clemson does have and is continuing to build up its assets in Charleston too,” he added.

That includes the Restoration Institute at the former Navy Base in North Charleston, the H.L. Hunley submarine and Clemson Conservation Center as well as a growing partnership with the Medical University of South Carolina, he said.

“Those don’t necessarily relate to Boeing, but we have a presence in Charleston that is starting to grow and bear fruit,” Ballato said. “As a land-grant university, we do have a responsibility to the entire state.”

Economic developers also are quick to point out that North Charleston is a short drive from any part of the state.

“Three-hour drive. We’re already looking at how much it costs to get product there,” Johnson said. “A project of this size is truly going to affect the entire state.”

The Midlands also has several “shovel-ready industrial sites” and available buildings within a 45-minute drive of the Boeing site, King said. The military installations in central South Carolina offers the trained aircraft mechanics that Boeing and other aviation companies will need, he added, and the local universities and technical colleges can supply graduates to the industry.

“I can assure you that there are few more companies in and around the Puget Sound contemplating a move to South Carolina,” he said.

“I would expect that Boeing will have a supplier symposium in the near future and perhaps at that time we will have the opportunity to meet these companies,” King added. “In the meantime, we will begin to develop a strategy that will market our region’s assets to these suppliers.”

King, Johnson and McCallum all mentioned the marketing power that Boeing will bring.

“This is national news. South Carolina is back on the map again,” McCallum said, noting that South Carolina has lost its share of economic development projects recently.
“Nobody knows those stories and nobody can really talk about them,” he said. “People can say ‘South Carolina is off its game.’ South Carolina is not off its game. You don’t win something like this if you’re not on your game.

“Rolls Royce looked at Greenville a while ago and went to Virginia,” McCallum said. “I bet they wish they had changed their mind.”