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A SITE SELECTION SPECIAL FEATURE FROM JULY 2003
SOUTHEAST REGIONAL REVIEW, page 10

BMW Impact:
$4.1 Billion a Year and Growing

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Spartanburg-based Stankiewicz is growing right along with BMW, investing $11 million in a plant expansion that will increase its total work force from 150 to 260. Ray Tomkins (right), program manager for Stankiewicz, says the company's methods, as well as its capacity, are influenced by BMW's way of doing business.
Automotive supplier Stankiewicz International Corp. opened its Spartanburg, S.C. plant here in 1994 to make advanced noise-control systems for BMW. Nearly a decade later, that strategic site selection is paying off in more ways than one.
        Once its 77,000-sq.-ft. (7,153-sq.-m.) expansion is complete, Stankiewicz will supply acoustics products for the new M-Class vehicle and Grand Sport Tourer of Mercedes-Benz in Alabama.
        The contract with DaimlerChrysler will double the annual sales of the Stankiewicz plant in Spartanburg, says Ray Tomkins, program manager at the factory.
        "We are tooling up for these two vehicles," Tomkins said. "Our work force of 150 will increase to 260 to meet the demand."
        Stankiewicz is spending US$3 million on a building and another $8 million on equipment to double production capacity. Since 1994, the plant has manufactured the sound-buffering systems for vehicles produced at the BMW factory in nearby Greer: the X5 sport utility vehicle and Z3 and Z4 Roadsters.

Spinoff Yields Economic Traction
Stankiewicz is one of 40 South Carolina-based suppliers that benefit from BMW's presence. From Greenville to Aiken, companies are making everything from pump housings to dashboard skins for the German automaker.
        A recent study by the University of South Carolina in Columbia revealed that the total economic output associated with BMW's activities in the state comes to more than $4.1 billion a year — and that figure is about to rise substantially.
        On Sept. 26, 2002, BMW Manufacturing Corp. in Spartanburg announced that it would invest an additional $400 million in its plant and create 400 jobs.
        The increased capacity will help the BMW Group achieve its goal of increasing worldwide production from 1 million vehicles a year to 1.3 million by 2007. Company executives say that the Spartanburg factory is a critical component in BMW's global production network. One of every six BMWs sold throughout the world is made in South Carolina.
        Since its inception a decade ago, BMW has spent $2 billion on its 2.4 million-sq.-ft. (222,960-sq.-m.) plant in Spartanburg County. Some 4,400 people work at the plant that produces 150,000 vehicles a year.
        Statewide, BMW supports 16,691 jobs in the automotive manufacturing sector, according to the USC study. After accounting for incentives and other costs incurred by state government, South Carolina receives $27.6 million in net revenues (sales and income taxes minus costs) each year as a direct result of BMW.
        The four Upstate counties most affected by BMW's presence — Anderson, Greenville, Laurens and Spartanburg — receive $2.4 million annually in additional revenue. Of the $691 million that the plant generates in annual personal income, the BMW factory itself accounts for $345 million. Supplier and other indirect employment account for the rest.
        The USC study added that BMW is contributing to the long-term economic development of South Carolina "by forging a highly advanced industrial cluster."

Getting Better All the Time
A good example is Stankiewicz. Tomkins says that because BMW maintains no inventory, Stankiewicz makes 12 shipments a day to BMW. "Once BMW places an order, we have a window of 90 minutes to get the product to their assembly line," he says. "Price, quality and delivery are all very important to BMW."
        BMW's process of continuous improvements is also changing the way Stankiewicz manufactures its own products. "We are always focused on reducing costs," says Tomkins. "Our goal this year is to implement the 5-S system: standardize, sort, set in order, shine and sustain."
        Tomkins noted that his job is made more attainable by the incentives provided by South Carolina and local government. Stankiewicz takes advantage of job development tax credits, FILOT (fee in lieu of taxes), and training services offered by the Center for Accelerated Technology Training at nearby Spartanburg Tech.
        "We plan to spend $18 million upgrading our facilities over the next five years," Tomkins said. "We looked at going to Alabama when it came time to expand, but we decided to remain in South Carolina. We are very happy with the work force in Spartanburg." — Ron Starner

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