Initiatives magazine, April 2002

ini tiatives H u n t s vi ll e / Ma d i s o n C o u n ty • Ch a m b e r of Co m m e r c e

f eat u re s cover

Making a World of Difference

05

Sphere of Influence

09

How Globalization is Impacting Local Business

A “Leg Up” for Youth and the Workforce

09

Women Owned Businesses:

11

Impacting Our Community...Impacting the World

Cover design by Huntsville/Madison County Chamber of Commerce Publications Department.

Just Around the Corner

12

Roadmap for Business Success

18

A New Town Center for CRP

24

Take 5. . . Steps to Small Business Success

27

More Than Just Space Camp

28

de v el o p m e n t s

05

Member Developments

14

Ribbon Cuttings & Groundbreakings

Economic Indicators

20

Economy-at-a-Glance

22

Business Profile

23

Innovative Solutions, Inc.

In the Forefront Economic Development Highlights

In Other Words

29

Media Headlines

s t a ff

Publication Manager

Rikki Thomas

Managing Editor

Barbara Nash

Assistant Editor

Joy Dawes

Contributing Editor

Ken Smith

Contributing Writers

Shannon Belew Kate Gray Holly Dawn Hunter Kari Kampakis

Account Executive

R.D. Patterson

Publisher

Jeff Thompson

mission

The mission of the Chamber of Commerce of Huntsville/Madison County is to prepare, develop and promote our community for ecomonic growth.

contact

Chamber of Commerce Huntsville/Madison County P.O. Box 408 Huntsville, AL 35804-0408 256.535.2000 www.initiativesreview.com

President/CEO

27

Brian Hilson

Permission to publish any part of Initiatives Review is hereby granted exclusively to any non-profit institution and to any publisher for broadcast or publication to the general public. Credit “ Initiatives Review, a Publication of the Chamber of Commerce of Huntsville / Madison County.”

Making a World of Difference Huntsville’s Contributions to the Global Community

Today, the terms “economic community” and “global community” have become part of the common discourse among political and business leaders around the world, while only 40 years ago the concept of such political or economic coalitions as the

Together with a third party product called RAPID® from Idaho Technology, Inc., the suitcase-sized SpinCon® device detects and identifies a variety of pathogens such as anthrax spores and smallpox, in as little as 5 minutes.

Cited by the Journal of Allergy & Clinical Immunology as the most

European Community (EC) and the Eurodollar were unthinkable.

Clearly, the world is dramatically changing in the 21st centur y, and the definitions of “community” are taking on a new and broader meaning.

For over 50 years, the Huntsville area has played a major role in the changing pulse of the growing global community, from contributions to the space program from NASA’s local Marshall Space Flight Center, to participating in the advancements of America’s missile defense efforts. And as the world continues shifting focus toward more global initiatives, Huntsville continues its contributions and impact reaching far beyond the Tennessee Valley.

A tour through Huntsville’s business districts reveals companies such as Camber Corporation, Intergraph Public Safety, ADTRAN and CFD Research, all of whom are providing unique services to benefit an expanding global cooperative.

Camber Corporation, for example, provides one of only a few products available in the world today that accurately detects airborne bio-pathogens.

Although the company provides a wide variety of technologies for both commercial and military clients, the application of SpinCon® Air Sampler is a worldwide concern and growing.

effective sampler of spores on the market, SpinCon®’s clients include the U.S. Department of Agriculture, which uses it to test for Foot & Mouth Disease, the syndrome that caused a disastrous epidemic in Great Britain during 2001.

SpinCon® is also being used by the Justice Department and Postal Service in Washington, D.C. to detect anthrax spores, and was used to determine the air was clear in Yankee Stadium when President Bush threw the opening pitch for the 2001 World Series.

Technology coming from Huntsville

SpinCon® was at the outset successfully marketed to first responders in emergency management, a global market with close alliance to Huntsville’s Intergraph Public Safety (IPS). IPS has a longstanding reputation of providing state-ofthe-art Computer Aided Dispatch (I/CAD) systems to police, fire, and emergency management agencies around the world.

Recently, IPS began to apply the complex potential of their I/CAD system to the aviation arena, to augment threat detection and event assessment at airports. Likely offering priceless benefits to every commercial airport in operation today, O’Hare International in Chicago was one of the first IPS clients to adapt this system.

Using sophisticated mapping software integral to I/CAD, O’Hare’s installation allows them to monitor and control more than 800 personnel/ vehicle access points at the airport, while access controls and video sur veillance systems aid in tracking personnel movement and controlling access to nonpublic areas. If card access to a terminal building or operations area is rejected or forced access is attempted, instantly alerted security can take fingertip control of closed circuit monitors and electronic alarm system schematics.

Operators can quickly search a database of electronically-stored photographs of authorized employees, compare the video image from security cameras, and allow or restrict access. If emergency response is required, the operator will be prepared, as incident data is electronically

queued to the appropriate emergency dispatcher - police, fire, EMS, or operations officials - for immediate action.

Leading the way in innovative technology is nothing new for many of the companies born and raised in Huntsville.

Both ADTRAN and CFD Research are major players in first-of-their-kind developments that should eventually benefit the growth of commercial and government enterprises worldwide.

CFD Research is actively developing state-of-the-art simulation software used in environmental, chemical and biological protection as well as in Homeland Defense programs. Dr. Bill Coirier of CFD is helping to develop this software called the Urban Dispersion Simulator (UDS). The UDS simulates how dangerous substances - nuclear, chemical, biological or radiological - might be dispersed in urban areas. Knowing how individual buildings or entire city blocks might be affected by potential attacks, the UDS can be used to protect urban

areas by pinpointing where access should be denied, or how best to evacuate a large city in the event of emergencies.

In the telecommunications arena, ADTRAN is playing a leading role in a European standards committee to help define standards and product protocol for high speed, DSL service. As Mike Wrobleski of ADTRAN explains, setting this standard is significant to the future growth of high-speed data services around the world.

While advancements in technology have been a principal catalyst for the global information sharing that is helping to reshape our understanding of our neighbors, this same technology must maintain the tremendous pace already set.

Before these standards were established for data transmission, only the World Wide Web had established global industry protocols. So ADTRAN’s aid in helping to set standards for the transmission of this data will clearly help propel technology well into the 21st century.

These companies represent only a small handful of innovators making residence here whose vision and efforts historically reach to international borders.

There are a multitude of others continually making new achievements in science and technology that help to improve the lives and livelihood of their global neighbors. Then again, a look at Huntsville’s history proves that defining “community” has never been a matter of near-sightedness for this north Alabama city.

Incidentally, as you watched the 2002 Winter Olympics from Salt Lake City, you were viewing the efforts of yet another Huntsville company. Recently Theatrical Lighting Systems, Inc. not only supplied either lighting equipment or labor for Ford and General Motors at the Detroit Auto Show, and Steven Curtis Chapman’s tour, but also helped light the skies at the Olympic games ... for all the world to see.

– Kate Gray

Women-Owned Businesses: Impacting Our Community... Impacting the World Ask any woman-owned business in Madison County if her company has impacted Huntsville, and there’s no hesitation before receiving a resounding “yes.”

Whether creating job opportunities, adding revenue to the economy, or just attracting attention with positive national and international recognition, women business owners in Huntsville are making an impression.

“There are a number of successful women-owned firms in Huntsville,” notes Lisa Williams, CEO and founder of 3D Research. As a high-tech engineering firm, Williams recognizes the role her company has played in helping the community develop its image, “We are one of the reasons that Huntsville is labeled a high-tech town.” Williams’s growing business has already contributed over $1 million in employee salaries to Huntsville’s tax base; and with more than $3 million in new revenue, she is continuing to fuel the local economy.

This doesn’t surprise Karen Stanley, a member of the Chamber of Commerce’s Women’s Business Council (WBC) and an executive with Stanley Construction Company. National statistics show nearly 2% of all women-owned firms have more than $1 million in receipts. Those operating as C-corporations are responsible for 44.8% of the nation’s sales receipts.

“WBC commissioned a study to identify women-owned businesses in Madison County,” explained Stanley, as part of the Council’s mission to target self-employed women and help advocate for and communicate with this growing segment of the population.

The survey identified more than 700 women-owned businesses in Madison 101 April 2002 In i t i a t i ves

County, a marked increase over previous years. Results of an extensive telephone survey with 142 of those women owners indicated the majority of those businesses had less than 10 employees, while 3% of those employed more than 100. Perhaps most impressive was the longevity of these women-owned businesses; nearly half of those interviewed have been in business for more than 10 years.

Morgan Research Corporation (MORGAN) has been a staple of Huntsville’s business community for nearly 15 years, providing more than 200 jobs to the local workforce. MORGAN company president, Sharon Morgan realizes her company’s image impacts the community on a national level: “Because many of our customers are not local to Huntsville, we represent not only MORGAN, but the community.” She added, “I hope my role as (woman) owner of a growing, high-technology services business has positively impacted the perceptions of women-owned businesses (nationally).” MORGAN is also a certified 8(a) business, like many womenowned businesses in the community pursuing government-related business.

Women-owned businesses qualifying for 8(a) certification with the Small Business Administration (SBA) is another way the local economy benefits from this business segment. It allows small firms to gain contracts with NASA and Marshall Space Flight Center which then creates and maintains jobs for the community.

Elizabeth Morard, president of Qualis Corporation is also 8(a) certified, but has not depended upon that status to gain direct 8(a) related work. “We’re a national engineering firm in business since 1993.” Qualis uses its expertise and track

Quick Facts The State of Women-Owned Businesses in Huntsville/Madison County Chamber Women’s Business Council Woman-Owned Business Survey • State WOB Average Increase 1987-1997

15%

• Mad. Co. WOB Average Increase 1987-1997

16%

• Average % WOBs Compared to All Mad. Co. Firms

31%

• Average % Mad. Co. WOBs Compared to State

7%

Source: U.S. Census

Of all women-owned firms, nationwide: • 1.8% had more than $1 Million in receipts • 30.1% had less than $5,000 in receipts • 84% were Sole Proprietorships • However, women-owned businesses that were C-corporations brought in 44.8% of the sales receipts

• 16% of WOB’s have been in business for less than 2 years.

• 37% have been in business for 2 - 10 years pushing past the critical 3-year mark • 45% have stayed the course with over 10 years in business

• 69% of WOB’s have 10 or fewer employees.

• Only 3% have over 100 employees.

• Over 49% of WOB’s provide either Business or Personal Services • This figure is in line with the national average for type of business owned for WOB’s.

Source: Huntsville/Madison County Chamber of Commerce & WG Marklande

111

Just Around the Corner

record for success to bring more national business into Huntsville.

“Being a successful woman-owned company with 8(a) status, and having a reputation for doing good work just helps ensure there are more contracts available for other womenowned businesses and more economic opportunities for Huntsville.”

The opportunity to pursue national contracts also allows women-owned businesses to receive national recognition and help turn the spotlight on the community. In 2001, Huntsville-based Analytical Services, Inc. (ASI) received the SBA award for National Minority Small Business Firm of the Year. Irma Tuder, president and CEO, quickly noted that her company was only the second Alabama business ever recognized with this level award (Thornton Stanley of Huntsvillebased Stanley Construction was named SBA’s Small Business Person of the Year).

“The award and recognition definitely had an impact on Huntsville,” says Tuder, “but our company also contributes to the community by being able to employ local people, contribute to the Nation’s defense industry, and by participating in leading edge programs, such as NASA’s new Space Launch Initiative.” All of these factors allow Huntsville to receive recognition as an extremely supportive community for businesses. “I would like to see more area women-owned businesses move to that next level of success, as we’ve seen with women such as Nancy Archuleta (MEVATEC Corp.), and Bobby Bradley (CST, Inc.).”

Martha Pullen knows what “going to the next level” can mean for a growing business and the impact it has on a community. Founder of the Martha Pullen Company, Pullen and her staff have brought international recognition to Huntsville. A weekly television show featuring her business has been seen in 50 states (and Puerto Rico and Canada) for the past nine years. She also has internationally-distributed sewing books,magazines, and classes which bring more than 400 people to Huntsville for a week’s visit - at least twice a year.

Each February her company hosts an annual event in Huntsville, bringing more than 1,000 visitors to area hotels and the Von Braun Center.

“This year we have people from five continents, including South America, Africa and Australia.” It’s a major event for Pullen’s company and the community. “Everyone loves to come to Huntsville because people are so nice, we take care of them.” Pullen is quick to say that being a womanowned business is great, but success is about how well you run the business. “Economics is the bottom-line,” says Pullen, “and with entrepreneurship the ‘glass ceiling’ is only as low as you make it.”

The thriving women-owned business base is a significant contributor to Huntsville’s growing reputation as a successful, high-tech city. Reflective of these businesses, the community is recognized by customers throughout the world for its cutting-edge innovations, a progressive entrepreneurial spirit, and the ability to translate ideas into solid results.

It's coming. Bigger and better than ever.

It's the time of year that Huntsville/Madison County honor their top small businesses and executives of the year. It's the 17th Annual Small Business Celebration, and it is sure to be yet another spectacular Chamber event.

The Small Business of the Year Celebration Committee coordinates the nomination and selection of the best small businesses of the year in the Huntsville/Madison County area. The winners exemplify what is best about small business in the region. Because they are so good at what they do, they contribute to the overall economic development success of the entire area.

The 2001 Small Business of the Year Award Winners were: Retail/Wholesale Services Valley Pizza/Domino's Pizza Manufacturing & Construction Innovative Solutions, Inc. Business Services Managing People and Change, Inc. Personal Services Alabama Psychological Services Center, LLC Technology Services APT Research, Inc. Executive of the Year Jannifer Henderson, President of Premier Professional Systems Every year, more than 100 small businesses are nominated for the Chamber's top honors.

They must have been in business for at least 3 years and have fewer than 350 employees. 18 finalists (3 in each category) are selected from the nominations. These finalists are all outstanding in their fields, and a winner is chosen from them for each categor y. Entries are judged based on criteria which include community involvement, innovative products or services, financial strength, number of years in business, growth in employment, and response to adversity.

The 2002 Small Business Celebration promises glitz and glamour for all who are involved.

June 13th will certainly be a night to remember.

– by Shannon Belew In i t i a t i ves April 2002

More Than Just Space Camp Everyone knows that Huntsville is the

3-2-1 Blast Off!

Inspiring Ro b o ti c s

The world has heard of NASA's Space Launch Initiative the next generation of space travel vehicles. What is not so widely known is the Student Launch Initiative - the next generation of rocket scientists who will be the ones to make NASA’s dreams reality.

The Marshall Space Flight Center in Huntsville designed this competition in order to engage students at high school and university levels in a learning opportunity that invo l ve s designing, building, and launching a reusable launch vehicle with a microgravity science-related payload. In other words, build a rocket that can fly more than once and can carry something up in the air.

In 2001, the university level teams were from Alabama A&M University and the University of Alabama in Huntsville.

The participating high schools included Johnson, Sparkman, and Randolph - all in Huntsville. The results were remarkable - rockets successfully launching more than a mile into the atmosphere.

What could be more inspiring to technology students than being a part of the real thing? More competitions are scheduled for this year. Surely the next generation of rocket scientists are having a real blast!

What kind of educational program inspires area students to spend time outside of class to design and build a robot - out of building blocks, of all things?

The answer lies in Marshall Space Flight Center’s Robotics Competition.

It is called FIRST - For Inspiration and Recognition of Science and Technology. The program was founded in 1989 by New Hampshire entrepreneur and inventor Dean Kamen.

It is a non-profit organization that brings together an alliance of business, education, and government organizations through innovative programs to inspire today's youth in the areas of science, engineering and technology.

Huntsville area teams design and build their robots and then compete with other robots in two-minute contests at a regional contest at the U.S. Space & Rocket Center. Like high school, collegiate and professional sports squads, the local winners go on to a national championship each year at Epcot Center in Orlando, Florida.

The FIRST Robotics Program is another great way to get students involved in science and technology projects that will pique their imaginations for the future.

home of the coolest camp in the galaxy.

But did you know that we also lay claim to some of the greatest educational projects in the universe?

From Sci-Quest, the hands-on Science Learning Center, to the NASA-sponsored Moon Buggy Races, Robotics Competition, and Rocket Launching Contest, Huntsville/ Madison County has an astounding array of education attractions. The high-tech and educational communities partner in making these events a success, coupling dedication to excellence with the phenomenal resources available in our area.

Education has always been a top priority for NASA and the Marshall Space Flight Center. “The Marshall Center looks on support for the educational community as an investment in America's future. As directed by the President and Congress, it is a significant part of NASA's policy to inspire America's students, create learning opportunities, and enlighten inquisitive minds,” says Jim Pruitt, Manager of MSFC's Education Programs Department.

Great programs. A commitment to educational excellence.

High-tech resources second to none.

Huntsville/Madison County provides great resources for students of all ages, both now and for the future.

-- Holly Dawn Hunter 181 April 2002 In i t i a t i ves

In Other Words ...

Huntsville ranks as one of the top Cybercities in the U.S.A. •Site Selection Magazine, March 2002 Huntsville is a city with a ton of technological firepower.

•ABC News, WJLA, Washington, D.C., February 2002

Roving About . . .

The Great Moonbuggy Race, held annually in April, gives undergraduate and high school students from around the nation an opportunity to apply engineering skills and develop team spirit in an activity that will enhance awareness about human exploration and development of space.

Moon buggies are built from the students' own design recreating the lunar experience of the Apollo astronauts and looking ahead to further human exploration of the solar system.

The Great Moon Buggy Races bring together teams from 20 states and Puerto Rico, competing with student-designed vehicles. Two-person crews, one male and one female, assemble their collapsible vehicles, receive a safety inspection, and power their vehicles along a simulated lunar terrain obstacle course. Prizes are awarded for originality of design and quickest traversal of the lunar course.

It is quite a sight - these lunar rovers rolling over a half-mile simulated lunar terrain course including "craters," rocks, "lava" ridges, inclines and "lunar" soil. And all on the road to more knowledge and experience in space technologies.

Huntsville is a thriving high-tech oasis.

•CNN, January 2002 Huntsville's Tech Titans are developing cutting-edge products that make the city a high-tech mecca.

•CNN, December 2001 Huntsville, Alabama provides a glimpse into the future through a host of innovations.

•Public Radio International, December 2001 Huntsville is home to five of the 500 fastest-growing companies in the nation.

•Inc. Magazine, October 2001

– Staff Writer

Information on NASA educational p ro g rams provided by Jim Pruitt, Manager of Education Programs Department at Marshall Space Flight Center. For more information, visit http://education.msfc.nasa.gov.

1 19 In i t i a t i ves April 2002

Economic Indicators P O P U LAT I O N

E M P L O Y M EN T *

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

NOV 01

DEC 01

1980 Census........................................196,966

145,604

6,081

242,971

439,023

Total Non-ag Employment......................................................................185,500

184,800

1990 Census........................................238,912

159,789

14,904

293,047

505,967

Manufacturing................................................................................34,200

33,600

2000 Census........................................276,700

158,216

29,329

342,376

582,374

Durable Goods.......................................................................... 27,800

27,400

2005 Projection....................................299,778

161,657

31,471

367,735

612,701

Non-durable Goods..............................................................................6,400

6,200

% Growth 1980-2000 ............................40.5%

8.7%

382.3%

40.9%

32.6%

Non-manufacturing......................................................................151,300

151,200

Construction & Mining..........................................................................6,500

6,400

1980 Census..........................................67,082

51,113

2,040

82,440

150,864

Trans. & Utilities....................................................................................4,700

4,700

1990 Census..........................................91,208

63,058

5,944

110,893

191,640

Trade ..................................................................................................38,000

37,800

Households

Huntsville Metro Area**

2000 Census........................................106,423

62,437

11,779

131,683

223,990

Finance..................................................................................................5,100

5,100

2005 Projection....................................115,256

63,795

12,638

141,427

235,637

Services..............................................................................................57,200

57,300

% Growth 1980-2000 ............................58.6%

22.1%

477.4%

59.7%

48.5%

Government........................................................................................39,800

39,900

* Based on place of employment.

Race 2000 Pop. by Race ............................276,700

158,216

29,329

342,376

582,374

**Includes Madison & Limestone counties Source: Alabama Department of Industrial Relations

White......................................................72.1%

64.5%

80.1%

74.3%

82.5%

LABOR FORCE*

Black......................................................22.8%

30.2%

13.0%

21.0%

15.4%

Huntsville Region (Counties)

Asian & Pacific Islander............................1.9%

2.3%

3.6%

1.6%

1.2%

Other Races..............................................3.2%

3.0%

3.3%

3.1%

0.9%

Income & Age Avg. Household Income......................$54,995

$54,494

$69,774

$52,932

$49,969

Med. Household Income......................$43,081

$40,937

$59,801

$41,501

$38,729

Per Capita Income ..............................$22,430

$22,936

$29,581

$21,404

$20,099

Average Age ..............................................35.9

36.9

33.0

36.1

36.7

Source: EQUIFAX, National Decision Systems, 2001; U.S. Census Bureau (www.census.gov)

NOV 01

DEC 01

Madison ......................................................................................148,900

148,730

Limestone ......................................................................................30,520

30,540

Jackson ........................................................................................25,750

25,820

Marshall..........................................................................................39,180

39,280

Morgan ..........................................................................................57,750

58,480

Franklin, TN....................................................................................18,820

18,750

Giles, TN ........................................................................................15,970

15,840

Lincoln, TN ....................................................................................14,410

14,310

Huntsville Regional Total..........................................................351,300

351,750

* Based on place of residence.

Source: Alabama Department of Industrial Relations, Tennessee Department of Employment Security .

RETAIL SALES Huntsville Region (Counties)

Total Food & Furniture & Retail Sales Restaurants Merchandise Automotive

(000s)

Madison ..................................................................$4,197,785 Limestone ..................................................................$568,268

$859,915

$885,953

$119,439

$119,026

$1,098,255 $132,312

Jackson......................................................................$472,058

$121,340

$86,289

$101,864

Marshall....................................................................$1,327,821

$177,607

$210,540

$646,026

Morgan ....................................................................$1,472,708

$277,539

$227,308

$499,417

Franklin, TN ................................................................$325,240

$113,831

$54,755

$65,402

Giles, TN ....................................................................$294,638

$62,746

$29,714

$98,169

Lincoln, TN..................................................................$303,977

$60,861

$54,694

$98,982

Regional Total ........................................................$8,962,495

$1,793,278

$1,668,279

$2,740,427

UNEMPLOYMENT RAT E *

NOV 01

DEC 01

Madison County................................................................................3.6%

3.6%

Huntsville Region..............................................................................4.9%

5.0%

Alabama............................................................................................5.7%

5.9%

United States....................................................................................5.7%

5.8%

* Based on place of residence.

Source: Alabama Department of Industrial Relations (www.dir.state.al.us) Tennessee Department of Employment Security (www.state.tn.us/labor-wfd)

COST OF LIVING INDEX 3rd QTR 2001

Source: Sales & Marketing Management, 2001 Survey of Buying Power, Printed with permission.

CONSTRUCTION ACTIVITY # of Projects

NOV 01 Square Feet

DEC 01 $ Value

# of Projects

Square Feet

CompositeGrocery Index Items

Housing

Utilities

Transportation

Health Care

Atlanta, GA

101.4

102.8

109.6

89.8

98.7

105.7

96.8

HUNTSVILLE, AL

96.0

99.7

85.1

80.5

103.6

101.6

104.0

Dallas, TX

98.5

98.7

93.8

91.9

105.9

97.6

101.7

Raleigh-Durham, NC

101.2

101.6

106.2

97.1

91.7

107.8

99.6

St. Louis, MO

99.4

91.8

95.7

105.0

104.3

104.0

102.7

Washington, D.C.

129.3

113.6

161.4

109.1

126.9

130.8

115.2

$ Value

Total Const. Contracts........................112

964,000

$91,920,000

110

282,000

$19,315,000

Commercial ..........................................13

335,000

$38,471,000

11

18,000

$3,338,000

Manufacturing ........................................2

302,000

$26,500,000

4

9,000

$571,000

Single Family ........................................84

180,000

$5,776,000

82

176,000

$5,663,000

Multi-Family............................................0

0

$0

1

0

$123,000

Source: American Chamber of Commerce Researchers Association. Website (www.accra.org)

HOME SALES

Source: F.W. Dodge, Printed with permission.

NOV 01 Houses Under Contract.....................................................................2,680

CONSUMER PRICE INDEX

NOV 01 Index % Change

DEC 01 Index % Change

00-01

DEC 01 2,801

Houses Sold & Closed..........................................................................252

318

Avg. Selling Price..........................................................................$130,374

$124,125

00-01

United States...............................................................177.4

1.9%

176.7

1.6%

South Region...............................................................171.0

1.4%

170.3

1.1%

Source: Bureau of Labor Statistics, Atlanta, GA. Website (http://stats.bls.gov)

1

Goods & Services

Avg. Days on Market..............................................................................107

144

Median Sales Price........................................................................$112,500

$107,000

Source: Huntsville Area Association of Realtors

Sphere of Influence How Globalization is Impacting Local Business No community is an island, especially in

ment. They had the vision to see that today’s global economy. Whether your busi- major airports were getting congested and focusing on passengers, so they ness employs 5,000 individuals or five, you’re decided their focus would be cargo.” likely to benefit from the infrastructure and The International Intermodal Center is part of a Foreign-Trade Zone, and technology that now provide easy access to offers local businesses involved in the products and talent around the world. manufacturing, processing, storing or Madison County is fortunate to have distributing of foreign-origin merchanseveral facilities that allow businesses to dise the opportunity to defer, reduce or interact with the world economically. even eliminate U.S. Customs Duties Our founding fathers, the men of the (import taxes).

Huntsville Real Estate Investment Trust (HREIT), were true visionaries in laying Foreign-Trade Zone out our community to facilitate and Manager/Operator Louise Stickley handle the tremendous growth we've says a lot of companies decide to locate enjoyed during the past four decades. in Madison County because of this zone, They designed our airport and infraincluding Boeing, Daimler Chrysler, structure with great foresight, and their Raytheon, LG Electronics and legacy still plays a key role in attracting International Truck and Diesel of global businesses to the area.

Alabama.

Did you realize that Huntsville is a “Many companies locate in a well-known port in the international Foreign-Trade Zone even if they haven't cargo industry? Thanks to companies decided whether they'll take advantage like Panalpina, a freight forwarding of the many benefits it has to offer,” company in partnership with Huntsville Stickley says. “It's simply a wise choice International Airport, local and regional for a company to locate within a Foreignbusinesses can make quick transfers to Trade Zone in our world economy.” and from Europe (daily) and Mexico The Port of Huntsville (which (three times per week). Efforts are consists of the Huntsville International underway to add Asia too.

Airport, the International Intermodal This air cargo service, normally found Center and the Jetplex Industrial Park) in much larger cities, is an economic facilitates international trade for the 60engine for our community. plus local companies involved in exportGerald Kolasch, vice-president of flat ing/importing. The port offers national operations for Panalpina, says the and international air, rail and truck services for passengers and cargo from its company decided to locate in Huntsville 12 years ago because of its perfect 5,800-acre, $800 million facility, which Southeastern location and its existing serves 12 counties in north Alabama and infrastructure to accommodate their six in south-central Tennessee. needs (i.e. long runways and expensive As the world continues to merge and cultural boundaries disappear, Madison high loaders). They knew they could get the support they needed to be successful. County can take pride in knowing we're “Huntsville took a unique approach positioned with the vision and resources in designing its airport,” he says. to be a leader in a new global economy.

“Rather than promising us what they'd do if we moved here, they had the infrastructure in place to prove their commit-

– By Kari Kampakis

A “Leg Up” for Youth and the Workforce Ask any CEO what they want from a successful workforce development program and they will tell you “employees that can work for my company right now.” A recent grant from ADECA (Alabama Department of Economic and Community Affairs) will help answer that challenge. The grant, awarded to the Huntsville/ Madison County Chamber of Commerce Foundation, will fund the new LEG UP (Lifelong Employment Growth for the Under Privileged) program.

The new program will focus on the initiative designed to put disadvan taged youth to work in three Alabama counties. Each county Marshall, Madison and Jackson - will serve 80 out-of-school youth (16-21 years of age) per year.

A paid coordinator will help identify at-risk youth, enroll them in the program, and create a career development plan that will guide their education and place them in the workforce. A licensed, professional counselor will also be assigned to each program participant, acting as a confidential sounding board and helping provide solutions to personal problems that often interfere with the youth’s career success.

“You can’t manufacture employees,” notes program manager Melody Whitten, “but you can utilize an untapped labor pool, such as the at-risk youth - and spend some time, money and energy to produce a viable workforce and meet the needs of our communities.”

–

Shannon Belew

Economy-at-a-Glance Huntsville/Madison County, Alabama is located in the middle of the southeastern United States, with over 4 million people within a 100-mile radius. The Huntsville community serves as the primary e c onomic hub of the north Alabama and southern Tennessee region. The counties adjoining Madison County combine to form an eight-county regional market with a population totaling 700,000 people.

The Huntsville/Madison County economy is known as one of the strongest economies in the South, with low unemployment, strong job growth and income levels leading the region. Business growth and investment from U.S. and international companies have made Huntsville/ Madison County one of the country’s top “hot spots” for growing a business and raising a family.

LEADING EMPLOYERS U.S. Army/Redstone Arsenal . . . . . . . . . .11,141 Huntsville Hospital System . . . . . . . . . . . . .4,355 Sanmina SCI

. . . . . . . . . . . . . . . . . . . . . .3,300

Huntsville City Schools . . . . . . . . . . . . . . .3,000 DaimlerChrysler Corporation . . . . . . . . . . .2,800 NASA Marshall Space Flight Center . . . . . .2,754 The Boeing Company . . . . . . . . . . . . . . . .2,700 City of Huntsville . . . . . . . . . . . . . . . . . . . .2,186 Madison County Schools . . . . . . . . . . . . . .1,936 Intergraph Corporation . . . . . . . . . . . . . . . .1,736 ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . .1,731 Goodyear/Dunlop Tires . . . . . . . . . . . . . . .1,660 Computer Sciences Corporation . . . . . . . . .1,600 Teledyne Brown Engineering . . . . . . . . . . .1,582 Walmart/Sam’s Stores . . . . . . . . . . . . . . . .1,581 West Corporation . . . . . . . . . . . . . . . . . . . .1,300 University of Alabama in Huntsville . . . . . .1,112 Madison County . . . . . . . . . . . . . . . . . . . . .1,073 Benchmark Electronics . . . . . . . . . . . . . . . . .921 Alabama A&M University . . . . . . . . . . . . . . .890 Lockheed Martin . . . . . . . . . . . . . . . . . . . . . .844 Target Distribution Center . . . . . . . . . . . . . . .750 Crestwood Medical Center . . . . . . . . . . . . . .668 PPG Industries, Inc. . . . . . . . . . . . . . . . . . . .660 Madison City Schools . . . . . . . . . . . . . . . . . .644

Aerospace

Huntsville/Madison County is home to the NASA Marshall Space Flight Center and has representation from nearly every major U.S. aerospace corporation with over 90 companies employing more than 11,000 people in the local aerospace industry.

Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. The Army’s Aviation & Missile Command and Space & Missile Defense Command both drive a thriving engineering economy for companies supporting the technology activity of the Army in Huntsville.

Electronics Over 300 international and domestic corporations in Huntsville/Madison County are involved in the design and production of electronics and computer-related technology, including Sanmina SCI, one of the world’s largest contract electronics manufacturers.

Engelhard Corporation . . . . . . . . . . . . . . . . .617 Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . .600

Research & Technology

SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574

Huntsville’s Cummings Research Park is the country’s 2nd largest research and technology park, containing 220+ companies employing 22,500 people involved in technology research and development.

Northrop Grumman . . . . . . . . . . . . . . . . . . . .571 CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .510 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . .500 Source: Chamber of Commerce, January 2002.

Manufacturing

Huntsville/Madison County’s manufacturing industry represents a diverse mix of technology, assembly and production operations from both domestic and international corporations, comprising one-fourth of the local employment base.

Business Profile: Innovative Solutions, Inc. In 1984, Randy LaCaze started Innovative Solutions, Inc. (ISI), a one-man consultancy offering product engineering and product design services.

In 2001, ISI had sales over 900 percent greater than the firm’s first year sales, and signed an exclusive distribution agreement for their latest grand format printer with Gretag Imaging Group, one of the world’s premier suppliers of photofinishing and imaging systems.

It is no wonder that ISI won the Chamber’s 2001 Small Business of the Year Award for Manufacturing and Construction.

What is ISI’s formula for success? It includes experience, market understanding, and dedication to quality and value. LaCaze and his partners, James Gober, Bob Jones, and Jim Lambert, have clear lines of responsibility and an innate trust of each other’s ability to get the job done. All four of the partners are “graduates” of other successful Huntsville firms, including SCI, Intergraph and ADS Corporation, and have experience in small business operations and management, as well.

According to Jim Lambert, Vice President for Sales, Marketing, and Operations, focus is the key to being successful.

“It’s easy for a small business to try to be everything to everybody. You have to resist the urge to say, ‘Yes,’ even though you know you are capable of doing whatever may be asked of you.” Lambert said.

The ISI partners and employees continue to build value for their shareholders and customers with the launch of the second generation super outdoor printer (used for outdoor signage, tradeshow signs, and fleet graphics) sometime in 2002.

– By Kate Markland

A New Town Center for CRP How can the 2nd largest research park in the

All of these results, combined with the well-established, continuous growth and country make itself even more attractive? By investment in CRP since 1962, led the adding a new commercial center to enhance serv- consultants to conclude that the research park ices and opportunities available in the internation- possesses strong commercial potential as the center of business activity for the entire ally-recognized, award-winning Cummings region.

Research Park (CRP).

When the master plan was unveiled, Huntsville Mayor Loretta Spencer said, “This The new “town center” will boast extensive areas to work, relax, and even call home. The development is an exciting step in the future of Cummings Research Park and a great addi100-acre commercial development will meet multiple needs of the growing park and tion for those who currently work there. It provide even more incentive for companies to will certainly enhance the park and make it more attractive for both companies and their locate offices there.

The master development plan calls for a employees.”

The proposed commercial center within total build out exceeding 900,000 square feet in the commercial center at an estimated cost Cummings Research Park demonstrates exceeding $100 million. When completed, visionary planning for the future of this the Center will include four office buildings, a world-class research park. With the ultimate business class hotel with a restaurant and goal of accelerating growth in the rest of Cummings Research Park's 3,800 acres, the conference center, a retail and entertainment area, eating establishments, specialty retail new commercial district will also meet many facilities, a child care center, and residential needs of the 220+ companies and 22,500 employees currently located in CRP. buildings with exclusive parking.

An analysis was conducted by Destination “It is our hope that the commercial center is flexible enough to attract those activities Development and Consulting of Washington, D.C. to evaluate the strength of each market that will be supportive of Research Park sector in the mixed-use center. The study companies,” said Joe Moquin, one of the park's founders and former chief executive found that the 50-mile retail trade area of Huntsville exceeds a population base of officer of Teledyne Brown Engineering.

Moquin was the very first person to bring the 850,000 with an aggregate annual purchasing power in excess of $15.3 billion. It also idenidea of zoning for a research park to the city tified Cummings Research Park as the heart of of Huntsville over 40 years ago. He estimated that parts of the new development can be the high tech office market and underscored the fact that CRP is recognized as one of the built within five years.

In order to bring the master plan to highest technology concentrations in the United States. fruition, a search is underway for a master Also adding to the strength of possibilities developer to invest in the 100-acre site and develop it in phases. When completed, the for the commercial center is the fact that the Huntsville area population per restaurant unit new town center will truly be a place to live, work, and play in Huntsville. is 27% higher than the national average, and average sales per restaurant are 38% higher than the U.S. average. There were similar – Staff Writer findings in the office and lodging market sectors.

In the Forefront of Economic Development

Take 5. . .

Steps to Small Business Success

You're ready to take the plunge. You have a great idea, and you're ready for the adventure of a lifetime.

You want the creative freedom and complete independence of being your own boss. You're joining the timehonored tradition of American entrepreneurs. And good for you!

The first real step is gaining knowledge. The more you know, the greater your chance to achieve the success of your dreams. Here's a crash course to get you started.

Staples Plans New Store

poration and with the federal government for an identification number. Seek out the experts and follow their advice.

Staples, Inc., a national office supply company, announced plans to open its third Huntsville area store. The new store will be located in The Fountain on the renovated mall site of the former “The Mall.” Staples will join COSTCO and The Home Depot as major anchors of The Fountain.

The 24,000 square foot store is scheduled to open in the summer of 2002 with Staples expected to create 30 new jobs.

4. Set up Shop.

Do you need more than a desk in the garage and a good web site to get started? Or does your business require a brick-and-mortar shop from day one?

Working from home has certain tax advantages, but some may find it difficult to separate from home-life's distractions and focus on work. Be realistic about your temperament and personality when deciding on a work environment.

Advanced Federal Breaks Ground in Madison Advanced Federal began construction of a 6,200 square foot office building in Madison's Phoenix Center commercial park. The company provides engineering and administrative services to government and commercial customers and will house 10 to 20 people at the new facility.

Construction on the new building is scheduled for completion in July 2002. The company, which employs 150 people in three states, was founded and is headquartered in the city of Madison.

1. Plan Your Work, then Work Your Plan.

A necessary first step in starting your business is writing a thorough business plan. A business plan is a written set of guidelines for how you will form and run your business. It should include an executive summary detailing the company's purpose, vision, and management; a realistic market analysis and a workable marketing strategy.

5. Give it All You've Got.

There's no more calling Maintenance or Supply. If it's going to get done, you have to do it or delegate it. Give your business your best efforts and energy.

Apply what you know and learn what you don't.

Welcome to the world of enterpreneurship! Your destiny is now in your hands. Congratulations.

2. Form A Firm Financial Foundation.

Secure the necessary capital for adequately funding your business. The main options are friends & family, investors, and bank loans. Each has advantages and disadvantages. Investors, as well as some friends and family, will want a measure of control and decisionmaking authority for their money. Bank loans may burden a young business with payments before the cash flow is ready to make them. Explore your choices thoroughly, and make the decision that's best for you and your business.

3. Sweat the Small Stuff.

Get a good lawyer and a great accountant, and use their expertise to be sure your business has a solid legal foundation. Choose a legal structure: sole proprietorship, partnership, or corporation. Then file with the state for incor-

– Holly Dawn Hunter Useful web sites www.sba.gov The main site of the Small Business Administration, a government agency that assists small business owners. www.bplans.com A commercial service providing help with all aspects of preparing and writing a business plan. www.business-funding-source.com A clearinghouse of more than 3,600 sources of business funding www.businesstown.com/planning/creating.asp A wealth of information about each part of the business plan process. www.alabar.org The Alabama State Bar Association. Help in finding a lawyer near you. www.smallbizhelp.net A help center for every nuance of starting and running a small business.

Kohl’s Set to Open New Store Kohl's has entered the Huntsville area retail market with the construction of the company's first department store in the community. The store, located in the city of Huntsville along Highway 72 West, is scheduled to open in April 2002. Kohl's is expected to employ 135 people.

Kohl's is a national department store retailer with nearly 400 stores in 29 states.

Crestwood Medical Center Announces Expansion Crestwood Medical Center announced plans for a $45 million expansion of its medical and office facilities. The center, located along Airport Road in southeast Huntsville, provides primary medical care for Huntsville area residents and the surrounding region. The new 67,000 square foot expansion will add space for new surgical, pharmacy and hospital care facilities as well as create a larger outpatient admitting area. Approval of the planned improvements is expected to come by this summer with construction to begin shortly after approval is confirmed.

Dura Coat Products, Inc. Breaks Ground for New Facility in Huntsville The 48,000 square foot building will represent a capital investment in excess of $5.5 million and will generate 150 new jobs over the next few years. The new plant in Huntsville/Limestone County will add manufacturing capabilities to a location that is central to the company's customer base and is scheduled to be in operation by the fall of 2002 .

1 27 In i t i a t i ves April 2002

Location, Location, Location Market Research Commercial Real Estate Agent Local Economic Development Office

If you don’t have a business plan. . .

GO BACK TO STEP 2!

STOP!

Financing Resources: Family & Friends Local Banks Angel Investors, Venture Capitalists

Attorney & CPA

Roadmap for BUSINESS

Business Plan & Marketing Plan

Copyright Information Patents & Trademarks Business Name Registration

Market Research Who is your customer?

Where do they live, shop, work?

Are they willing/able to buy from you?

How much will they pay for the product or service?

Who is your competition?

What advantage do they have?

How important to them is the product or service you sell?

How many customers are not being served by a competitor now?

281 April 2002 In i t i a t i ves

Resources: Small Business Development Centers (SBDC) Small Business Administration (SBA) Industry Associations, Local Universities, Local Libraries

License & Permits City Privilege License - Municipal Bldg.

County Business License State Business License City Contractor’s License City Fire Inspection

Employer ID & Tax Requirements Federal Employer Identification Number Employer’s Quarterly Federal Tax Return Employer’s Quarterly Unemployment Federal Tax Return (FUTA) FICA - Social Security Deposits

Record-Keeping & Inventory Control

State Unemployment Tax Number State Unemployment Quarterly Retur n State Employee Income Tax Withholding Workman’s Compensation

Small Business Development Centers Industry Associations

Success

Business Insurance Chambers of Commerce Business Yellow Pages

Set Up Your Office Local Vendors & Suppliers

Have you secured all necessar y licenses,permits and tax documents?

If not...

GO BACK TO STEPS 3, 7 & 8!

STOP!

Hire Employees State Employment Office Private Employment& Temporary Staffing Firms

Grand Opening!

Do you have your Employer ID? If not... GO BACK TO STEP 8!

STOP!

1 29 In i t i a t i ves April 2002