Midlands Business Profiles
News from Around the State
(From The State and Associated Press)
Employers cut back for 6th straight month
July 3, 2008
WASHINGTON — Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy’s fragile state. The U.S. unemployment rate held steady at 5.5 percent.The latest snapshot of business conditions, released by the Labor Department on Thursday, showed continued caution on the part of employers chafing under high energy prices and are uncertain about how long the economy will be stuck in a sluggish mode, reflecting fallout from housing, credit and financial troubles.Heavy job losses in construction, manufacturing and financial services, along with cutbacks in retailing, eclipsed job gains in education and health services, leisure and hospitality, and government.The report, however weak, was largely on target with economists’ forecasts. They had been expecting employers to reduce payrolls by about 60,000 in June and for the unemployment rate to slip a notch to 5.4 percent.The national jobless rate spiked to 5.5 percent in May. That marked the biggest over-the-month increase in two decades and left the rate at its highest since October 2004.Talking Shop: One more development to report to you
July 3, 2008
Since starting this column in January 2007, I have met so many interesting people and learned of so many unique local businesses. And what I like best about it was I got to share community retail news with you.Well today, I have a little development news of my own. I have accepted a buyout offer, and this is my last column as a retail reporter for The State.Some of my favorite columns were about local entrepreneurs — such as Mae Buzhardt of Mae’s in Lexington, Harold and Gloria Rittenberg of Moe Levy’s in Columbia and Hopkin’s barbecue sauce maker James “Gene” Sumter.I love getting scoops on redevelopment plans at Dutch Square Center and new tenants Steve & Barry’s and Burlington Coat Factory arrivals at Columbia Place mall.In the coming months, be sure to keep the business staff abreast of any new stores, especially my replacement Neil White. (Reach Neil at (803) 771-8643 or nwhite@thestate.com.)NAACP joins effort to stop mortgage bias
July 3, 2008
The S.C. State Conference of the National Association for the Advancement of Colored People joined a national Day of Action this week against discriminatory mortgage lending practices.The national NAACP filed a class action lawsuit a year ago against 17 of the nation’s largest lenders alleging African-Americans were given higher mortgage interest rates than others despite having similar credit records, income and other qualifications.Following are three questions with Dwight James, executive director of the S.C. NAACP, and James Fleshman, Midlands Director for the S.C. Mortgage Brokers Association.DWIGHT JAMESWhy did you decide to join the National Day of Action?Oil soars then eases as dollar gains ground
July 3, 2008
NEW YORK — Oil prices briefly soared to a new high near $146 a barrel Thursday, extending the previous day's record-shattering rally before easing somewhat as the dollar gained ground against the euro.Americans hitting the road for the July Fourth holiday were confronted with an unwelcome record of their own: The average retail price for regular gasoline jumped to within two-tenths of a penny of $4.10 a gallon, according to AAA, the Oil Prices Information Service and Wright Express.Light, sweet crude for August delivery rose $1.72 to close at $145.29 on the New York Mercantile Exchange. Earlier in the session, it rose as high as $145.85 a barrel.Oil prices settled at $143.57 Wednesday, up $2.60 above the previous high. They continued climbing overnight, propelled by a report of lower crude stockpiles in the United States, lingering concerns about conflict with Iran and comments by Saudi Arabia’s oil minister suggesting his country would not boost production.Prices backed off, however, after the European Central Bank did not signal more rate increases. That decision, which followed a widely expected quarter-point rate hike meant to stem inflation in the 15-nation euro zone, led the dollar higher against the euro.Economy weathers more hits
July 3, 2008
NEW YORK — Wall Street capped a shortened trading week with a mixed finish Thursday after some uneven economic data: news of a contraction in the nation’s services sector and a tame reading on employment.The Dow Jones industrial average showed a sizable advance, while the broader indexes ended mixed. The stock market closed early ahead of the Fourth of July holiday.The Institute for Supply Management said its index of service sector activity fell to 48.2 from 51.7 in May. That news touched off more misgivings about the well-being of the economy.The look at the service sector follows a largely as-expected report from the Labor Department, which said the nation’s unemployment rate held steady at 5.5 percent last month. The government also reported that 62,000 jobs were lost in June, but that number was close to economists’ forecasts.The jobs report appeared to assuage some worries that the snapshot of the labor market would be more grim. Employment numbers are critical because consumers who are out of work or are nervous about losing their job are likely to cut their spending. They’ve already become cautious because of higher food and energy prices.Distillers get ready for amber-colored future
July 3, 2008
LAWRENCEBURG, Ky. — To Wild Turkey master distiller Jimmy Russell, the piercing sounds of a warehouse rising in the Kentucky countryside are the sounds of prosperity.“As long as you see work going on — and the construction, and increasing your size — you know your business is doing well,” said Russell, who started working for the bourbon maker in 1954.Distillers are expanding their bourbon production and storage and dispatching sales teams around the world, bullish for a traditionally Southern beverage gaining popularity worldwide. Surging exports, the weak U.S. dollar and rising popularity among younger Americans are driving the boom.“It’s an exciting time to be in the bourbon business,” said Max L. Shapira, president of Heaven Hill Distilleries, a family-owned liquor company based in Bardstown. “Most of the time that I’ve been in the business — up until about the last 10 years — everybody was trying to consign the bourbon category to that great liquor store in the sky.”Heaven Hill recently spent nearly $4 million boosting capacity 50 percent at its distillery in Louisville, where it makes Evan Williams and Elijah Craig bourbons.Recalls: Streamer fireworks pose risk of shocks
July 3, 2008
About 84,250 Oh Chute parachute with streamer fireworks, manufactured in China and distributed by Fireworks Over America, are being recalled because the parachutes can get tangled in power lines, posing a risk of shocks.The fireworks were sold at various firework stores between April 2007 and June 2008. Details: (800) 345-3957; www.fireworksoveramerica.com or www.cpsc.gov.• Girls’ jewelry items tainted with lead About 13,000 It’s a Girl Thing bracelets, necklaces and phone charms, manufactured in China and distributed by Bead Bazaar USA, are being recalled because the jewelry might contain high levels of lead, which is toxic if ingested.The jewelry was sold around the country between February 2006 and June 2008. Details: (800) 838-1769; www.beadkit.com.Ports authority rejects Daniel Island offer
July 3, 2008
CHARLESTON — The State Ports Authority has rejected an offer from Daniel Island residents to buy 1,300 acres of agency property on the island for $25 million.The Daniel Island Property Owners Association had made the offer on the land last week.The ports authority this week rejected the offer as too low.The residents said the struggling real estate market and the limited development potential for the soft land justified the sale.Ports Authority chairman David Posek says the agency is updating an appraisal but doesn’t think the $25 million offer approaches the value of the property.Lockheed Martin to lay off 100 in S.C.
July 3, 2008
GREENVILLE — Lockheed Martin plans to cut up to 100 jobs from its aircraft refurbishing facility in Greenville County.The defense contractor said on Wednesday that employees will receive formal layoff notices next week.Officials at the Maryland company say they expect the workload to pick back up after military aircraft return from overseas deployment later this year.Lockheed Martin currently employs nearly 900 workers at the 161-acre site in Greenville County, and has contracts with another 55 employees.Last month, the company said 100 employees at its Mauldin facility would transfer to Pennsylvania by year’s end.Sonoco to close plant in Canada
July 3, 2008
HARTSVILLE — Hartsville-based Sonoco said Thursday it will close a cardboard plant in Canada next month because of rising energy costs and declining demand.The 53 employees at the Montreal mill make heavy-weight coreboard. Most of it is shipped to other Sonoco plants that use it for industrial packaging, which have been losing sales.“In addition, escalating energy, transportation and chemical costs have further impacted the profitability of the mill making it unpractical to run the mill at less than full capacity,” said James Harrell, general manager of Sonoco’s North American paper business. “As a result, we have no other choice than to close down operations.”After the Montreal mill closes Aug. 27, Sonoco will operate 23 paper mills worldwide.Shares rose 30 cents to $30.56.
