Insights from the Synchronist Reporting System速
Volume 2, November 2009
Business Broadcast
The past year has been challenging for our national economy and the industries in Morgan County. However, opportunities arise for improving business processes and services and for MCEDA and our community partners to find creative ways to better serve our industrial customers. The Business Broadcast data gathering process always begins with the question “What has been your company’s greatest achievement over the past three years?” The graph below depicts the answers to this questions and highlights the resilience and strength of the companies in Morgan County. The 2009 Business Broadcast contains data gathered from a cross section of 32 companies in Morgan County and examines where improved business processes can and are taking place. The results contained in these pages present a picture of the state of our existing industries, which are vital to the success of our community. The current publication differs from the previous publication in number of companies surveyed and length of time the data was gathered. The previous publication surveyed 80+ companies over more than a two year period. Because MCEDA is focused on existing industry support, we believe an annual publication during a more concise data gathering period reflects a more accurate business picture and aids us in making better decisions for our industries. Since the 2008 publication: • MCEDA in partnership with Tennessee Valley Authority and Alabama Technology Network launched a pilot program, Eukera! Winning Ways, to combat market growth issues highlighted in our previous publication (over 50% of our industries stated that they were operating in a mature or declining market). We look forward to expanding this program to more companies in 2010. • Areas in the community service evaluation that received below average ratings or had ratings below the national average were targeted for consultation and improvement. Stakeholders in these areas were gathered to address concerns and pinpoint specific action items. Every entity that was below average in ratings has improved their ratings this year. • MCEDA’s previous Business Broadcast won the Southern Economic Development Council’s Merit Communications Award in the Medium Division at their summer conference. MCEDA was the only economic development office in the State of Alabama to be recognized. • In partnership with the Decatur-Morgan County Chamber of Commerce’s Workforce Development Coalition, strategic workforce development actions have taken shape. This effort has developed out of a concern for the lack of collaboration in workforce development throughout the county. Looking toward the future is the ultimate goal of this process. Based on insights gained from this year’s report MCEDA is working on:
Greatest Achievements
business broadcast
Updating and improving the annual Industrial Wage Survey Funding for internet connectivity in rural areas Monitoring legislation that can impact our industries and addressing concerns with our legislative delegations • Working with TVA to explain and provide additional expansion assistance through the Valley Investment Initiative (See Expansion and Market Information pg. 5) • Strategic workforce development actions and the launch of Career Pathway initiative and website (See Workforce Evaluation pg. 6) • Commending and thanking community service areas who are meeting the needs of our industrial community • Continuing dialogue and actions to improve community service areas Thank you to all of the industries who opened their doors to us for this process and to our board members and community partners who assisted in collecting this information. We hope you will find the information contained in the next few pages informative and valuable.
Overcoming Business Challenges Business Growth/Sales Increase Stability Facility Updates/Expansion Market Expansion or Adjustments Safety Record Awards/Recognition Employment Growth Financial Objectives Met Production Improvement/Innovation 0 2 4 6 Number of Responses
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respondentDemographics Morgan County has a diverse array of industrial companies. The following displays information on the types of businesses surveyed.
Company Ownership
Years in Business 76-100 Y e a r s
51-75 26-50 1-25 0
Company Ownership Private/Family Owned 44% Public 37% Foreign OwnedOwned 16% Private/Family 44% Non-Profit Public 37% 3%
Foreign Owned 16%
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10
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14
16
Number of Responses
Union Presence Of companies surveyed, the vast majority were union free. This is reflective of the Morgan County labor environment as a whole.
Non-Profit 3%
Number of Employees
Business Sector
1001+ 501-750
Industrial Goods 60%
respondent demographics
Business Sector
1-100 0
Industrial Goods 60% Durable Goods Producer 17% Communications 7%
Consumer Goods Producer 10% Aeronautics and Defense 3%
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Number of Companies
Consumer Goods Producer 10%
Building & Construction 3%
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101-250
Durable Goods Producer 17%
Communications 7%
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251-500
countyDemographics Population 2000 Census 111,064 2008 Estimate 116,653 2013 Projection 120,411
Growth 2000-2008 2008-2013
5.03% 3.22%
Aeronautics and Defense 3% Building & Construction 3%
2008 2008 2008 2008 2008
Estimate, Average Household Income Estimate, Number of Businesses Estimate, Number of Employees Estimate, Blue Collar Workforce Estimate, White Collar Workforce
$53,411 4,591 60,161 39.68% 50.93%
product development,Industy &Market Changes
Due to the shift in legislative concerns impacting business, including the Employee Free Choice Act and Cap and Trade Legislation, among others, MCEDA has worked to play an active role in informing our local, state and federal delegations about concerns industries have expressed throughout the data gathering process. We will continue to monitor legislation that could have an impact on our area industries and respond accordingly.
Increasing 16% Stable 26% Decreasing 58%
Market MarketShare Share
Market Share
Increasing Increasing27% 27% Stable Stable63% 63%
Increasing 27%
product development, Industry & Market Changes
One area of concern cited by MCEDA during the last data gathering process was the number of companies operating in a mature or declining life cycle. Because of this, MCEDA partnered with the Alabama Technology Network and Tennessee Valley Authority to pilot the Eureka! Growth Strategies program for one area industry. MCEDA will continue to foster this program in 2010. If you are interested in learning more about the Eureka! Program and how it can help you expand and grow your business, please contact the MCEDA office.
Company Sales
Stable 63%
Decreasing Decreasing10% 10%
Decreasing 10%
Volume 2, November 2009
Individual employers were asked several questions in regards to their business performance and product development including market share, company sales, product life cycle, and new products developed recently and/or new products anticipated in the near future. Also telling of our business climate is information on industry changes including production for industry segments and pending legislation that could have an impact on business processes. Certain graphs highlight comparisons between previous Business Broadcast cycle’s information. It is evident the economy has impacted the business market and sales for area companies.
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product development,Industy &Market Changes New Products Introduced in Last 5 Years
Life Cycle Comparison 60% 50% 40% 30%
2008
20%
2009
10% 0%
product development, Industry & Market Changes
Emerging
New Products Anticipated Within 2 Years
Growing Maturing Declining
Do you anticipate legislative changes that will adversely impact your business? 90% 80% 70% 60% 50%
2008
40%
2009
30%
Industry Production
20% 10% 0%
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Yes
4
No Response
Supply greater than Demand 68% Balanced 25% Demand greater than Supply 7%
No
No Response
Expansion
& Market Information
Export Sales Sales Export
Despite declining sales amidst the economic situation, companies are looking favorably towards the future. Of companies surveyed, 71% plan to expand their local operations within three years. Also, many companies are expanding their market reach through exports to operate in today’s global economy.
Does your company plan to expand in the next 3 years?
No Exports 39% No Exports 39% Decreasing 10% Decreasing 10% Stable 29% Stable 29% Increasing 22% Increasing 22%
Imports* Imports*
No Imports 45% No Imports 45% Decreasing 3% Decreasing 3% Stable 42% Stable 42% Increasing 10% Increasing 10%
Local 12% Regional 19% National 38% International 3%
• Provide assistance with tax, utility, infrastructure and training incentives for expanding industries. • Provide grant exploration and support for industries considering expansion. • Host the North Alabama International Trade Association’s (NAITA) annual Trade Tour for Morgan County. • Partner with the Alabama Development Office (ADO) and NAITA, when importing and exporting assistance is needed. • Mallard-Fox Creek Industrial Park is a part of Foreign Trade Zone no. 83 and a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages.
Volume 2, November 2009
Primary Primary Markets Markets
Morgan County recognizes the need to assist companies with expansion and trade issues in order to help our industries remain competitive in the global market place. Therefore, we provide the following services and resources pertaining to these issues:
expansion & Market information
*As a percentage of components *As a percentage of components
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WorkforceEvaluation
Volume 2, November 2009
workforce evaluation
A well-educated and highly skilled workforce is imperative to the success of any business community. Due to economic conditions, changes in ratings for workforce attributes are evident through the comparison graph seen to the right. However, many companies still cite difficulty finding certain skilled positions as seen in the positions difficult to fill chart. On a scale of 1 (low) to 7 (high), ratings have improved from last year.
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Because workforce development is a vital component of our industries’ and citizens’ success, a strategic workforce development plan and effort has been launched. The Decatur-Morgan County Chamber of Commerce Workforce Development Coalition’s purpose is to provide the framework for a Career Pathway for every citizen to meet the needs of current and future businesses in Morgan County. In partnership with the Coalition, Career Pathway has been launched and the Workforce Development Resource Guide and Matrix have been published. These publications can be viewed and downloaded at mceda.org or dcc.org and provide a comprehensive listing of workforce development resources in our area. The Coalition and MCEDA are working to ensure that there is a strategy, vision, and communication plan guiding our workforce development efforts. The CareerPathway.info website will be launched in December 2009. MCEDA also offers free Leadership Training Classes through AIDT two or three times a year. For more information about enrolling participants in this class, please contact Mary Ila Ward at miw@mceda.org.
Workforce Evaluation Comparison 6 5
5.61
5.33
4.81
4.45
4.24
5.58
5.53
5.23
4 3
2008 2009
2 1 0 Availability
Quality
Stability
Productivity
Positions Difficult to Fill Engineers Machinists Scientific/Technical (other than engineers) Industrial Maintenance Other Skilled Production Labor Technicians Welders Employment Needs 0 Employment Needs
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4
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Number of Responses
Employment Needs Increasing 12% Stable 66% Increasing 12% Decreasing 22% Stable 66% Decreasing 22% Increasing 12% Stable 66% Decreasing 22%
community evaluation Strengths Morgan County’s prime location, quality of life, and the strength of our workforce are consistently cited as strengths of the community. Extensive transportation systems including interstate, highway, waterway, and rail promote and support the business community. Industry representatives cite low crime rates, recreational facilities and the friendliness of local citizens as quality of life issues that distinguish Morgan County as a thriving place to do business and live. Key workforce and labor market attributes cited by companies executives were: the work ethic and skills of a strong industrial labor pool, low union activity, and competitive wages.
Community Strengths Workforce/Labor Market Attributes 27% Transportation System/Infrastructure 18% Business Climate 14%
Location (Including Accessibility to Customers & Suppliers) 13% Cost of Living/Doing Business 5% Educational System 5%
community evaluation
Quality of Life 15%
*Includes responses with a frequency of one or less
Volume 2, November 2009
Other* 3%
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community evaluation
UtilityEvaluation
Utility services and availability are vital to the operation of each business. Industries were asked to rate each utility service on a scale of 1 (low) to 7 (high). Consistently all services were given an above average ranking. Comparison has been made between last year’s rankings as well. MCEDA will continue to foster strong relationships with all utility providers in order to meet the needs of existing industry. TVA and participating TVA power distributors have launched a new program, Valley Investment Initiative, that provides economic development expansion incentives for existing customers. • Existing customers in targeted sectors whose facilities meet program qualifiers may be able to be evaluated for the incentive • Award amounts are based on customer’s five year projections and actual performance in various categories. For more information and to see if you qualify for this program, please contact the MCEDA office.
Utility Comparison community services evaluation
7 6.26 6.16 6
6.6 6.01
6.5 5.88
6.06
5.86
6.03
5.82
6.16 5.68
5 4 2008 2009
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8
2 1 Sewer
Natural Gas
Electric
Telecom
Cellular
Internet (Speed and Access)
Community ServiceRatings Ratings 2009 2009 Community Service 5.88
Air Cargo Service
5.72
Airline Passenger Service
6.17
Ambulance Paramedic Service
5.92
Chamber of Commerce 5
Child Care Services
6.16
Colleges and Universities Community Planning
5.03
Community Services
5.03 5.83
County Services
6.43
Economic Development
6.48
Fire Protection 5.38
Healthcare Services
5.72
Highways
Community Rating Comparison
5.67
K-12 Schools
5.93
Police Protection 5.08
Property Tax Assessment
4.89
Public Transportation
5.71
Regulatory Enforcement 5.5
Streets and Roads
6.04
Tech/Community College 4.94
Traffic Control
5.94
Trucking 5
Zoning and Building Permitting 0
summary
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MCEDA will continue to foster open dialogue with all of our community partners to ensure quality services are provided to our industrial sector. All areas that were targeted for improvement last year saw an increase in their average ratings. Continuous improvement is the goal of this ongoing process.
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Community Service Ratings Air Cargo Service Airline Passenger Service Ambulance Paramedic Service Chamber of Commerce Child Care Services Colleges and Universities Community Planning Community Services County Services Economic Development Fire Protection Healthcare Services Highways K-12 Schools Police Protection Property Tax Assessment Public Transportation Regulatory Enforcement Streets and Roads Tech/Community College Traffic Control Trucking Zoning and Building Permitting
Average 2008
Average 2009 6.21 5.83 6.47 5.98 5.36 5.98 6.35 4.20 6.35 6.13 5.39 6.19 6.43 5.22 5.44 5.84 6.07 5.62 4.07 5.69 5.11 6.05 4.52 6.27
5.88 5.72 6.17 5.92 5.00 5.92 6.16 5.03 6.16 5.03 5.83 6.43 6.48 5.38 5.72 5.67 5.93 5.08 4.89 5.71 5.5 6.04 4.94 5.94
3.82
5.00
MORGAN COUNTY, ALABAMA ECONOMIC DEVELOPMENT ASSOCIATION
300 Market Street NE, Suite 2 Decatur, Alabama 35601 PHONE: (256) 353-1213 FAX: (256) 353-0407 EMAIL: mceda@mceda.org
www.mceda.org