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Insights from the Synchronist Reporting System速

Volume 1, January 2009

Business Broadcast Like the old football adage quoted by the late Jim Hayes and Steve Sewell of the Economic Development Partnership of Alabama (EDPA) in a May 2006 article in The Birmingham News, “offense sells tickets, but defense wins ball games”, Morgan County Economic Development Association realizes, “the same is true of economic development, where defense–or protecting the jobs and industries we already have–is fundamental to success.”

Morgan County Economic Development Association is committed to existing industry visitation and support, because when existing industry wins through job creation and growth within, we not only win ball games as a community, we win championships.

The Synchronist System also allows users the opportunity to track requests for assistance made during company interviews. During our data gathering process, 57 requests for assistance were made and 97% of those requests were fulfilled. Those that were not fulfilled were long term in scope, such as the need for more dining options in the area.

We are of course thankful for the 80+ companies that participated in this process. Your time is invaluable, and we appreciate your willingness to open your doors to us so we can find ways to better assist you.

A thank you is also in order to those community partners and board members who participated in the interviews.

Volume 1, January 2009

Information gathered ranged from data on the individual businesses’ products, markets, and achievements to the broader scope of each company rating overall community resources and support. With this aggregate data we can gauge our existing industry climate. The 2008 Business Broadcast will be the first of many annual reports that highlight the insights gained from existing industry which will steer MCEDA’s focus for the future. Several sections of the report highlight the services MCEDA offers related to the data gathered.

business broadcast

Over the last two years, MCEDA has been dedicated to conducting a series of in-depth interviews with our local industries. From March of 2006 to August of 2008, MCEDA staff members and local partners conducted over 80 interviews with existing industry executives. The Synchronist Business Information System® developed by Blane Canada Ltd. was used as the survey and data analysis tool. Morgan County is one of many Alabama counties that hold a sublicense from EDPA for the Synchronist System.

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respondentDemographics

Years in Business

Morgan County has a diverse array of industrial companies. The following displays information on the types of businesses surveyed. Over 50% of companies surveyed are privately held or family owned. The Business Sector graph denotes the variety in types of goods produced in Morgan County. Although not considered a business sector category in this graph, many of the companies surveyed fit or are defined as a part of the advanced manufacturing sector, combining multiple processes and technologies to produce goods. Notably, the majority of companies have less than 100 employees, and union representation is present in less than 10% of the companies surveyed, which is reflective of Morgan County’s union environment as a whole.

ϭͲϮϱ ϮϲͲϱϬ ϱϭͲϳϱ ϳϲͲϭϬϬ ϭϬϭн

Union Presence Of companies surveyed, the vast majority were union free. This is reflective of the Morgan County labor environment as a whole.

The majority of Morgan County companies have been established in the county for over 26 years (59%), but we are fortunate to also have a mixture of newer companies to the area, with 41% of companies having a presence in the county for 25 years or less. MCEDA’s focus is to retain and help grow those businesses that have shaped our community for so many years, while fostering an environment to support and attract new businesses in emerging markets to the area.

Number of Employees

respondent demographics

No information on the companies surveyed would be complete without framing the demographics of the county as a whole. Compiled census data and projections for the county gathered by EDPA are contained here.

Company Ownership

Business Sector ƵƌĂďůĞ 'ŽŽĚƐ WƌŽĚƵĐĞƌ ϮϬй ŽŶƐƵŵĞƌ 'ŽŽĚƐ WƌŽĚƵĐĞƌ ϭϬй ,ĞĂůƚŚ ĂƌĞ Θ WŚĂƌŵĂĐĞƵƟĐĂůƐ ϭй /ŶĚƵƐƚƌŝĂů 'ŽŽĚƐ ϰϵй

Volume 1, January 2009

dĞĐŚŶŽůŽŐLJͬ/ŶĨŽƌŵĂƟŽŶ ϭй

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countyDemographics Population 2000 Census 111,064 2008 Estimate 116,653 2013 Projection 120,411

Growth 2000-2008 2008-2013

5.03% 3.22%

ŽŵŵƵŶŝĐĂƟŽŶƐ ϲй ĞƌŽŶĂƵƟĐƐ Θ ĞĨĞŶƐĞ ϯй

WƵďůŝĐ Ϯϴй WƌŝǀĂƚĞ Žƌ &ĂŵŝůLJ KǁŶĞĚ ϲϯй EŽŶͲWƌŽĮƚ ϭй &ŽƌĞŝŐŶ KǁŶĞĚ ϴй

ƵŝůĚŝŶŐ Θ ŽŶƐƚƌƵĐƟŽŶ ϳй ŐƌŝĐƵůƚƵƌĞ͕ &ŽƌĞƐƚƌLJ͕ DŝŶĞƌĂůƐ Ϯй KƚŚĞƌ ϭй

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 Individual employers were asked several questions in regard 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. These graphs combine to create a picture of the business climate of Morgan County today.

Information on industry changes including merger or acquisition activity, production for industry segments and pending legislation that could have an impact on business processes also informs us about our business climate.

Company Sales

New products introduced in the last 5 years

/ŶĐƌĞĂƐŝŶŐ ϳϯй ^ƚĂďůĞ ϭϵй EŽ ZĞƐƉŽŶƐĞ ϯй

Market Share

ĞĐůŝŶŝŶŐ ϲй ŵĞƌŐŝŶŐ ϱй 'ƌŽǁŝŶŐ ϯϯй DĂƚƵƌŝŶŐ ϱϭй

New products anticipated within 2 years

product development, Industry & Market Changes

Legislation at the local, state or federal level can impact businesses in particular industries or in all business sectors. The majority of companies indicate that they anticipate legislation that will negatively impact their business.

Notable pending legislation mentioned involved energy and union policy. MCEDA works with our local, state, and federal delegations to combat legislation that will have a negative impact on our area industries.

ĞĐƌĞĂƐŝŶŐ ϱй

EŽ ZĞƐƉŽŶƐĞ ϱй

/ŶĐƌĞĂƐŝŶŐ ϰϱй ^ƚĂďůĞ ϯϵй ĞĐƌĞĂƐŝŶŐ ϳй EŽ ZĞƐƉŽŶƐĞ ϵй

Volume 1, January 2009

Most companies indicate that their market share and sales are increasing and they have or anticipate introducing new products. The majority of products that companies surveyed make, however, are in a mature market. Due to these results, MCEDA is targeting ways to help companies develop products in growing and emerging markets. This program will be released in 2009.

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^ƚĂďůĞ ϭϵй

ĞĐƌĞĂƐŝŶŐ ϱй product development,Industy &Market Changes EŽ ZĞƐƉŽŶƐĞ ϯй

Product Life Cycle

ĞĐůŝŶŝŶŐ ϲй

Merger of Acquisition Activity

ŵĞƌŐŝŶŐ ϱй 'ƌŽǁŝŶŐ ϯϯй DĂƚƵƌŝŶŐ ϱϭй

product development, Industry & Market Changes

EŽ ZĞƐƉŽŶƐĞ ϱй

Do you, anticipate legislative changes that will adversely impact your business? zĞƐ ϱϴй EŽ ϯϳй

Volume 1, January 2009

EŽ ZĞƐƉŽŶƐĞ ϱй

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Production in Industry

Expansion

& Market Information Due to a positive business climate and support for expansion efforts throughout Morgan County, the majority of companies have plans to expand within three years. The majority of companies surveyed compete in a national and or international market.

Percentage of Products Exported*

Do you plan to expand in the next 3 years?

Primary Markets

/ŶĐƌĞĂƐŝŶŐ ϭϲй ^ƚĂďůĞ Ϯϭй ĞĐƌĞĂƐŝŶŐ Ϯй EŽ džƉŽƌƚƐ ϱϲй EŽ ZĞƐƉŽŶƐĞ ϱй

/ŶĐƌĞĂƐŝŶŐ ϭϵй

^ƚĂďůĞ ϭϵй

ĞĐƌĞĂƐŝŶŐ ϯй

EŽ /ŵƉŽƌƚƐ ϱϱй

EŽ ZĞƐƉŽŶƐĞ ϰй

• 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 Industrial 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 part of General Purpose Zone No. 83, offering resident industries a number of shipping and customs-related advantages.

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Percentage of Products/ Components Imported

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

ΎĂƐ Ă ƉĞƌĐĞŶƚĂŐĞ ŽĨ ƚŽƚĂů ƐĂůĞƐ

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WorkforceEvaluation A well-educated and highly skilled workforce is imperative to the success of any business community. Although workforce attributes were considered the greatest strength of our community (see strengths graph on page 7), the availability of skilled labor was cited as the lowest ranking workforce attribute, with an average of 4.24 on a scale of 1 (low) to 7 (high). Specifically, skilled production labor was noted as the most difficult to fill of positions. Machinists and multi-skilled maintenance technicians were noted most frequently among this category.

In addition, engineers in the scientific/technical category, and soft skills issues such as work ethic and dependability were identified as areas needing improvement.

When asked to compare productivity of the workforce in this area to the productivity of workers at other company owned facilities outside of Morgan County, company executives rated productivity high, with an average of 5.58.

Workforce Attributes

strengthening theWorkforce

Volume 1, January 2009

workforce evaluation

Because of the need for skilled labor, MCEDA is involved in a number of initiatives targeted at strengthening the workforce:

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Positions Difficult to Fill

• High school presentations that work to expose students to in-demand manufacturing positions in the area, educational opportunities to pursue these careers, and encouragement for students to stay in school. In 2007, over 2,000 students were addressed in Morgan County. This program has helped increase Calhoun’s Technical Curriculum enrollment by 15% in one year.

• Field trips to local manufacturing facilities for high school students to expose them to various manufacturing work environments.

• Partner with Calhoun Community College on a variety of workforce programs, most notably, The Co-Operation Program, which offers infield work experience to students in the manufacturing and technical areas while attending school full time. This program, coupled with our high school presentation program, received the 2008 Community Economic Development Award (CEDA) given by the Economic Development Association of Alabama (EDAA).

• Representation on the Governor’s Office of Workforce Development’s Regional Council which identifies workforce needs and allocates state funding toward workforce efforts.

• AIDT Leadership Training offered free to area industry which helps to address soft skills workforce issues.

community evaluation Strengths Morgan County’s strengths stem from the prime location of the county within the Southeastern Market and the strength of our workforce. Extensive transportation systems including interstate, highway, waterway, and rail promote and support the business community. The work ethic and skills of a strong industrial community coupled with low union activity and competitive wages are workforce and labor market attributes that company executives highlighted as attributes that give them a competitive advantages by doing business here.

WŽƐŝƟǀĞ tŽƌŬĨŽƌĐĞͬ>ĂďŽƌ DĂƌŬĞƚ ƩƌŝďƵƚĞƐ Ϯϵй WƌŝŵĞ >ŽĐĂƟŽŶ ϮϬй 'ŽŽĚ /ŶĨƌĂƐƚƌƵĐƚƵƌĞ ϭϮй ƵƐƚŽŵĞƌ͕ ^ƵƉƉůŝĞƌ ĐĐĞƐƐŝďŝůŝƚLJ ϭϬй WŽƐŝƟǀĞ ƵƐŝŶĞƐƐ ůŝŵĂƚĞ ϱй KƚŚĞƌ ϵйΎ WŽƐŝƟǀĞ YƵĂůŝƚLJ ŽĨ >ŝĨĞ ϯй >Žǁ ŽƐƚ ŽĨ ŽŝŶŐ ƵƐŝŶĞƐƐ ϰй 'ŽŽĚ dƌĂŶƐƉŽƌƚĂƟŽŶ ^LJƐƚĞŵ ϳй

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. MCEDA will continue to foster strong relationships with all utility providers in order to meet the needs of existing industry and plan for future growth opportunities.

Utility Services

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UtilityEvaluation

community evaluation

*Other Category includes responses with a frequency of less than two, including stable economy, good community and government services, strong educational system, and the mix of business services in the county.

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Community Services Evaluation

National Data Comparison ŽŵŵƵŶŝƚLJ ^ĞƌǀŝĐĞƐ

Volume 1, January 2009

community services evaluation

ŝƌ ĂƌŐŽ ^ĞƌǀŝĐĞ ŝƌůŝŶĞ WĂƐƐĞŶŐĞƌ ^ĞƌǀŝĐĞ ŵďƵůĂŶĐĞ WĂƌĂŵĞĚŝĐ ^ĞƌǀŝĐĞ ŚĂŵďĞƌ ŽĨ ŽŵŵĞƌĐĞ ŚŝůĚ ĂƌĞ ^ĞƌǀŝĐĞƐ ŽůůĞŐĞƐ ĂŶĚ hŶŝǀĞƌƐŝƟĞƐ ŽŵŵƵŶŝƚLJ WůĂŶŶŝŶŐ ŽŵŵƵŶŝƚLJ ^ĞƌǀŝĐĞƐ ŽƵŶƚLJ ^ĞƌǀŝĐĞƐ ĐŽŶŽŵŝĐ ĞǀĞůŽƉŵĞŶƚ KƌŐĂŶŝnjĂƟŽŶ &ŝƌĞ WƌŽƚĞĐƟŽŶ ,ĞĂůƚŚĐĂƌĞ ^ĞƌǀŝĐĞƐ ,ŝŐŚǁĂLJƐ <ͲϭϮ ^ĐŚŽŽůƐ WŽůŝĐĞ WƌŽƚĞĐƟŽŶ WƌŽƉĞƌƚLJ dĂdž ƐƐĞƐƐŵĞŶƚ WƵďůŝĐ dƌĂŶƐƉŽƌƚĂƟŽŶ ZĞŐƵůĂƚŽƌLJ ŶĨŽƌĐĞŵĞŶƚ ^ƚƌĞĞƚƐ ĂŶĚ ZŽĂĚƐ dĞĐŚͬ ŽŵŵƵŶŝƚLJ ŽůůĞŐĞ dƌĂĸĐ ŽŶƚƌŽů dƌƵĐŬŝŶŐ ŽŶŝŶŐ ĂŶĚ ƵŝůĚŝŶŐ WĞƌŵŝƫŶŐ

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DŽƌŐĂŶ ŽƵŶƚLJ ǀĞƌĂŐĞ

EĂƟŽŶĂů ǀĞƌĂŐĞ ϲ͘Ϯϭ ϱ͘ϴϯ ϲ͘ϰϳ ϱ͘ϵϴ ϱ͘ϯϲ ϲ͘ϯϱ ϰ͘ϮϬ ϲ͘ϭϯ ϱ͘ϯϵ ϲ͘ϭϵ ϲ͘ϰϯ ϱ͘ϮϮ ϱ͘ϰϰ ϱ͘ϴϰ ϲ͘Ϭϳ ϱ͘ϲϮ ϰ͘Ϭϳ ϱ͘ϲϵ ϱ͘ϭϭ ϲ͘Ϭϱ ϰ͘ϱϮ ϲ͘Ϯϳ ϯ͘ϴϮ

Ϯ͘ϳϴ ϰ͘ϭϴ ϲ͘Ϭϲ ϯ͘ϵϲ ϯ͘ϮϮ ϯ͘ϵϳ ϰ͘ϲϬ ϱ͘ϭϱ ϱ͘ϭϱ ϰ͘ϬϮ ϲ͘ϮϬ ϰ͘ϯϵ ϰ͘ϳϭ ϱ͘Ϭϵ ϱ͘ϴϭ ϰ͘ϯϲ ϰ͘ϭϲ ϰ͘ϵϯ ϰ͘Ϭϰ ϰ͘ϭϬ ϰ͘ϱϰ ϰ͘Ϯϴ ϱ͘ϯϭ

summary The ultimate goal of our existing industry program is to foster open and honest dialogue in order to impact change where it is needed. MCEDA is committed to addressing the issues that were identified as negatives during the interview process. Feedback we received in terms of community weaknesses and or improving community services will be addressed with the respective entity that can influence change. Each company’s input will remain confidential as we explore alternatives for improving our community.

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