Initiatives magazine, October 2003

october 2003

initiatives

review

huntsville madison county chamber of commerce

Huntsville’s foundation set in

stone

Redstone Arsenal continues to generate area economic growth

Foreman on the Site

11

Huntsville’s Role in Iraq Jewel of Alabama

21

13

initiatives Huntsvi lle/Madison Count y • Chamber of Commerce

features cover

A Foundation Set in Stone

05

Building a Better Future

09

Foreman on the Site

11

Bricks and Mortar

11

Operation Iraqi Freedom

13

Jewel of Alabama

21

Under Construction

22

Safety Gear

25

developments

Huntsville’s foundation set in Stone Cover design by Huntsville/Madison County Chamber of Commerce Publications Department.

staff

President/CEO

Brian Hilson

Publisher

Jeff Thompson

Managing Editor

Barbara Nash, APR

Graphic Designer

Kristi Sherrard

Writers

Shannon Belew Mike Kelley

Economic Research

Ken Smith

Account Executive

R.D. Patterson

Economic Indicators

18

Economy At-A-Glance

19

Member Developments

23

mission

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

contact

Chamber of Commerce Huntsville/Madison County 225 Church Street Huntsville, AL 35801 256.535.2000 www.initiativesreview.com

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.”

03 Initiatives October 2003

Order 2004 calendars for your customers and employees while they are on sale.

With a variety of sizes to offer, you’ll find the one that fits your needs.

With a large selection of calendar art, you’ll find the one that complements your customer base.

With these sale prices, you’ll find the one that fits your budget.

To find out more, visit www.srpromos.com, or call us at 351-6870.

Marketing and Advertising Services • Promotional Products • 351-6870 • www.stoneriverinc.com • www.srpromos.com

04 October 2003 Initiatives

A Foundation Set in Stone Redstone Arsenal: 60 Years and Counting On a bright fall day in October 1941, Carroll Hudson, a U.S. Army major, stepped into a cotton field southeast of Huntsville. With a new shovel, he scooped a spade full of the loamy soil and tossed it aside. This inauspicious ground breaking marked the beginning of the Huntsville Arsenal, forerunner of today’s Redstone Arsenal.

With war clouds gathering by mid1941, Army planners needed a place to manufacture and store chemical munitions. Huntsville offered a solid labor force, abundant TVA electrical power, and Tennessee River transportation. The huge tract west of town was a perfect site, and those cotton fields were quickly converted to a $40 million complex of buildings and roads.

Shortly afterward, the Army decided to add to its Huntsville operations with a separate facility for the manufacture of shells and bombs. Adding the adjacent 4,000 acre tract, which Hudson named Redstone Arsenal due to the reddish soil,

New Beginnings

The Allied victory was great for the world, but in Huntsville, as in other American cities where military bases brought prosperity, officials feared the loss of those thousands of wartime jobs.

Before long, the bustling munitions plants grew silent and weeds began to grow up around the barracks-type buildings. By early 1946, only 600 employees remained. “For Sale” signs appeared on the Arsenal property.

But the nucleus of Redstone’s future was already forming. The U.S. Army experimented with rockets in World War II, but not with Germany’s level of commitment.

German V-2s, large, liquid-fueled By the end of hostilities in the summer of rockets with primitive guidance systems, rained 1945, this workforce cranked out more destruction on London and other English cities in than 75 million units of war munitions. the closing days of the war. Wernher von Braun, the brilliant but reluctant head of the Vcompleted the outlines of what today is 2 program, and most of his crack rocket known locally as “the Arsenal.” development team surrendered to the By 1944, the workforce – locally Americans early in 1945. After capturrecruited – grew to more than 11,000. ing as many of the remaining V-2s as Almost half were women, since so many possible, the Army sent the rockets and the able-bodied men were in uniform. By development team to Ft. Bliss, near El the end of hostilities in the summer of Paso, Texas, where the von Braun group 1945, this workforce cranked out more spent the next five years helping the than 75 million units of war munitions.

Army get its fledgling rocket program off the ground.

By 1949, the Army’s rocket program had grown considerably, and the brass realized the need for a permanent location for its growing program. Alabama Senator John Sparkman worked with Colonel Holger Toftoy, who had accepted von Braun’s surrender and now headed the rocket program, to successfully push for relocation of the research continued on page 07 05 Initiatives October 2003

6 October 2003 Initiatives

Foundation Set in Stone . . . continued from page 05

and development effort to the vacant Redstone Arsenal. By June 1950, von Braun and his team of 118 engineers, scientists, and technicians began arriving in Huntsville. It was enough to add a Teutonic flavor to the town of 16,000, as the Germans quickly involved themselves in the life of the city.

The Ordnance Missile Laboratory, with von Braun reporting to Toftoy, grew rapidly, its ranks swelling with hundreds of American engineers and technicians. In 1953 it introduced the Redstone rocket, a major improvement over the old V-2.

Refined and produced throughout the 50s and 60s at the Arsenal, the Redstone played a major role in America’s earliest space exploration efforts. It launched America’s first satellite – Explorer I – into space in 1958, and atop it Alan Shepherd rode to become the first American in space in 1961.

America was turning on to space exploration, and as the excitement mounted, the Army, Navy, and Air Force fought over control of the emerging space program. But President Eisenhower, as well as a growing body of influential Americans, called for civilian control of space exploration. Their wills prevailed when Congress established the National Aeronautics and Space Administration in 1958. Two years later the Development Operations Division of the Army’s Ballistic Missile Agency at Redstone Arsenal became part of NASA and was charged with development of propulsion systems for the civilian space program.

Redstone Continues Army Program

The departure of 4,000 key personnel to the new Marshall Space Flight Center put only a temporary dent in the Army’s missile program. Events of the early 60s, such as the October 1962 Cuban Missile Crisis, kept Cold War realities in the

forefront of American thinking.

At Redstone, work focused on tactical missiles such as the Pershing, Nike-Zeus, Honest John, and Little John. The Army, in particular, saw a need for surface-to-air missiles that could intercept incoming aircraft, or surface-to-surface missiles that could take out tanks or other groundbased enemy assets.

From this research came weapon systems such as the Hawk surface-to-air missile, and the shoulder-fired Redeye and Stinger anti-aircraft missiles which were developed in the 60s. In the 70s, RSA engineers produced the TOW: an optically wire guided missile, devastating against enemy tanks.

At the Pentagon, planners envisioned the ultimate defensive weapon as the missile that could intercept and destroy an incoming ICBM in flight. In the summer of 1960, a Redstone-developed Nike-Hercules successfully intercepted a ballistic missile – the first successful intercept of a missile in flight. The mid-70s saw development begin on a serious ballistic missile defense program which moved into high gear in the 80s during the Reagan administration.

From these efforts grew the Patriot program – a missile with the capability of destroying another missile moving at speeds in excess of 15,000 miles per hour.

Most of Patriot’s development took place at Redstone, and the missile proved its worth in Operation Iraqi Freedom by achieving 100% accuracy against incoming Iraqi Scuds.

Redstone Arsenal grew substantially in 1997 with the Army’s decision to locate the Aviation Command to Redstone Arsenal. What had been the Missile Command (MICOM) changed to the Aviation and Missile Command (AMCOM), with the addition of more

than 1,600 employees. With that RSA took an even more prominent role in the nation’s defense structure.

Looking Ahead

The needs and realities of modern warfare require flexibility to maintain the highest level of military readiness. A plethora of building projects already underway or planned for Redstone will further enhance its capabilities in modern, hi-tech warfare.

Feeling a need for greater space for army helicopter research and testing, AMCOM is finalizing plans for its new Military System Test and Integration Facility. The 140,000 square foot building will provide up-to-date space for helicopter aviation needs and will allow faster modification of the Army’s entire helicopter fleet.

Today’s computer-enhanced army relies heavily on software. The Software Engineering Directorate will expand over the next few years on the Arsenal’s west side, providing a campus-like setting for software development. The SED expansion will provide urgently needed space for enhanced software analysis and development.

The largest current building project in terms of total space is the new Von Braun Complex – a group of buildings adjacent to the Sparkman Center that will initially house the Space and Missile Defense Command.

The first phase is nearly complete, and plans call for 830 SMDC employees to move into the center beginning in January 2004. Future phases will add office space for the Missile Defense Agency (MDA) and PEO Air, Space, and Missile Defense, as well as the Corps of Engineers and the Defense Acquisition University’s Huntsville operations.

– Mike Kelley 07 Initiatives October 2003

08 October 2003 Initiatives

Building a Better Future Improving NASA’s access to space Focused on the development of new technologies, the Next Generation Launch Technology (NGLT) program is using its expertise to provide NASA with the means of improving safety and lowering launch costs.

The goal is clear-cut – revitalize the nation’s space transportation capabilities and dramatically improve NASA’s ability to conduct science and exploration missions in space.

term, the NGLT Program will build the foundation for future systems.

“Our task is to make the next generation of space transportation systems as safe, affordable, and routine as possible, in order to achieve our “Civilization and progress have always goals of exploration, scientific discovery, been measured by the speed at which we global security, and commercial viability move and the heights we’re able to reach.” of the space market,” – Garry Lyles, NGLT program manager said Garry Lyles, The technology for getting into earth NGLT program manager.

NASA’s Next Generation Launch orbit hasn’t changed much in the last 30 years.

In the two decades following the 1972 decision to develop the Space Shuttle, the U.S. did not fund technology development projects for space transportation other than those related to the Shuttle itself. Consequently, R&D employment in the liquid space propulsion industry has withered to a mere 500 people in the U.S. The Columbia Accident Investigation Board observed that “because of the risks inherent in the original design of the Space Shuttle, because that design was based in many aspects on now-obsolete technologies, and because the Shuttle is now an aging system but still developmental in character, it is in the nation’s interest to replace the Shuttle as soon as possible as the primary means of transporting humans to and from earth orbit.”

In the mid-term, that replacement will be an Orbital Space Plane. In the long Source: NASA/MSFC

Technology program is managed at Marshall Space Flight Center in Huntsville. The program combines elements of two previous research efforts – the original Space Launch Initiative, which sought to reduce the risk associated with flying a second-generation reusable launch vehicle in the 2012 timeframe, and NASA’s former Advanced Space Transportation Program, which pursued propulsion, launch, and flight technologies. It was intended to yield options for third-generation launch continued on page 10

09 Initiatives October 2003

Building a Better Future . . . continued from page 09

✹ ✹ ✹ ✹ ✹

✹

Fully furnished studio & penthouse suites Convenient to everything.

Flexible lease terms with substantial savings over hotels; Monthly rates available; All utilities, phone, and cable included.

Variety of amenities available, pool, jacuzzi, membership to local fitness center, and more.

Optional daily and weekly housekeeping services.

Packages tailored to meet the needs of the Business Traveler, Relocator, Home Buyer, Leisure Traveler or anyone in need of temporary housing. Ask about our Birthday and Anniversary packages.

Daily Complimentary continental breakfast; guest laundry on-site. ✹ Evening social (Monday through Thursday) ✹ Complimentary airport shuttle.

4020 Independence Dr Huntsville, AL 35816 256•837•8907 or www.guesthouseintl.com

10 October 2003 Initiatives

vehicle concepts capable of flight in the 2025 timeframe.

Now, NGLT seeks to develop and mature innovative technologies based on these predecessors.

“Civilization and progress have always been measured by the speed at which we move and the heights we’re able to reach,” Lyles added.

In this case, reaching new heights means pursuing new research in the areas of propulsion, structures, vehicle systems, and ground and flight operations. The program is focused on three primary missions.

The first mission is researching, developing, and maturing new and existing propulsion system technologies to support a decision by decade’s end on America’s nextgeneration launch system.

Delivering a new launch system by the middle of the next decade is next on the list.

This launch system will become the basis for the nation’s future, medium-to-heavy launch systems.

The final leg of the mission is developing a fleet of launch vehicles. Scheduled to be completed within the next two decades, design elements would provide horizontal takeoff, fast access to space and/or rapid global access.

The Next Generation Launch Technology Program, in cooperation with the Department of Defense through the National Aerospace Initiative, truly represents the work of a nation. Through its many partners, the program is able to utilize the best talent in academia, private industry, NASA field centers, and the U.S. Air Force, in addition to other government organizations.

“It’s time for the next great paradigm shift,” notes Lyles. “One to expand America’s presence in space and construct a future in which people and businesses routinely travel, work, and live in earth orbit and beyond.”

Bricks and Mortar

Foreman on the Site Huntsville, Alabama: World’s leader in missile defense

New complex to be new home for SMDC

Huntsville continues its focus on providing the world’s best space and missile defense capabilities to the nation and the U.S. military.

The display on the wall in Major General John Holly’s conference room on Redstone Arsenal shows 380 12 32 06, counting down the days, hours, minutes, and seconds until our Nation will, at long last, have a basic shield in place to protect us from a missile attack.

Arrayed around the room on the Operations Center Displays are real-time status reports on each of the components of this massive and technologically challenging effort. It’s General Holly’s job to see that the system is in place and functioning at the appointed hour.

It should come as no surprise that General Holly’s office is at Huntsville’s Redstone Arsenal. After all, this is the place where the first successful missile intercept (1960) was architected. It is, if you will, the birthplace of missile defense. But today’s missile defense systems are a far cry from that first system, which could only hope to destroy an incoming missile by exploding near it.

Today’s ground-based missile defense systems carry no explosives. They destroy incoming missiles by smashing directly into them at closing speeds of greater than 15,000 mph. It’s been compared to hitting a bullet with a bullet.

Consider some of the phenomenal capabilities of today’s systems:

Source: U.S. Army SMDC

▲ THAAD missile test firing

Huntsville-developed radars used to help guide these missile interceptors to their targets are so powerful that it’s been said they can distinguish between a hummingbird and a sparrow at 3,000 miles.

■ Using space-based infrared sensors as well as ground-based radars, our nation can detect a foreign missile within seconds of its launch.

■ These missile defense systems ■

Today SMDC is preparing for its next mission…the anticipated move into a new $39 million home.

The first phase of the Von Braun Complex on Redstone Arsenal is close to completion, and SMDC is already preparing for a dedication ceremony in December 2003. The 220,000 square-foot building will support more than 700 of the Huntsville-based SMDC employees.

The move is part of a government effort to get personnel out of leased space – a move that should equate to millions of dollars in taxpayer savings. With many of the local SMDC personnel in rented space in the Cummings Research Park area, the investment to relocate to the Von Braun Complex is expected to pay for itself within five years.

The Complex will eventually total close to 700,000 square feet, developed in three phases. The initial phase for SMDC includes two buildings, a central plant to house the mail room and utilities, and an office building for personnel. One of the next two phases is expected to include a 400-seat auditorium, while the other will include a large cafeteria area for SMDC. Though SMDC will be the first to call the Von Braun Complex home, both the Missile Defense Agency and the Program Executive Office for Air, Space and Missile Defense are expected to follow after the additional phases are complete.

continued on page 12 11 Initiatives October 2003

Foreman on the Site . . . continued from page 11

determine their position relative to the target by taking a quick peek at the stars.

Huntsville is home to several federal agencies that have responsibility for various aspects of missile defense system development and deployment. In addition to General Holly’s Missile Defense Agency operation, Huntsville is home to the Defense Intelligence Agency’s Missile & Space Intelligence Center, the Army’s Space and Missile Defense Command, Program Executive Office for Air, Space and Missile Defense, and the U.S. Army Engineering and Support Center. Together, these federal agencies and local contractors employ well over 10,000 people in support of missile defense activities.

These agencies and contractors span the entire spectrum of missile defense system work, starting with the assessment of foreign missile threats, through

12 October 2003 Initiatives

Source: U.S. Army SMDC

R&D, product development, and later upgrades to existing systems.

It is estimated that just the groundbased missile defense program (GMD) will have an economic impact of $650 million on the local economy in 2003.

Other locally managed missile defense programs include the Theater High

▲ THAAD Roving Sands Launcher

Altitude Area Defense (THAAD) system, and the Patriot and Patriot Advanced Capability (PAC) II and PAC III missiles. The NATO-developed Medium Extended Area Defense system, a collaborative U.S., German, and Italian program, is also based in Huntsville.

– Mike Ward

Operation Iraqi Freedom: Huntsville Was There Drawing on a legacy of missile research and development going back to the early 1950s, Huntsville’s Aviation and Missile Research and Development Center (AMRDEC) helped polish the performance of a host of tactical missiles, among them the Javelin antitank weapon, which debuted in Gulf War II. Most observers of Operation Iraqi Freedom noted the new way in which the war was fought – and won. To a level unprecedented in the history of warfare, air power, computer communications, advanced tactical missiles, and agile ground forces, supported by everything from night vision goggles to 3D views of the battlefield, helped win the war in just over a month, against numerically superior forces.

What many do not realize is just how much Huntsville contributed to the victory. Most of the military commands headquartered in Huntsville, such as the Aviation and Missile Command (AMCOM), and the Program Executive Offices for Aviation and Tactical Missiles, contributed greatly to that effort. And credit must be given to dozens of private firms that contract with the military, their legions of researchers, scientists, engineers, and software developers helping develop and perfect the missiles, helicopters, satellite communications, laser technology, and other tools that brought quick victory. Undoubtedly, Operation Iraqi Freedom saw the most technologically advanced weapons ever used in warfare.

Drawing on a legacy of missile research and development going back to the early 1950s, Huntsville’s Aviation and Missile Research and Development

Center (AMRDEC) helped polish the performance of a host of tactical missiles, among them the Javelin antitank weapon.

The Javelin, a medium-range, shoulder-launched weapon, is the latest in a long series of antitank weapons used by the Army. As the replacement for the wire-guided Dragon missile system used in the first Gulf War, it is more accurate over a longer range and has the added advantage of allowing the gunner to fire and take immediate cover, not possible with the wire-guided Dragon. Javelin is one of several tactical missiles managed by the Huntsville-based Program Executive Office – Tactical Missiles, the others being the TOW, surface-to-air ATACMS, and the versatile Hydra 70 rocket system. PEO Deputy Don Barker says every system PEO manages saw action in Iraq. Javelin is credited with knocking out numerous Iraqi tanks, along with an unspecified number of other targets. “It was – simply put, quite impressive,” says Barker.

Operation Iraqi Freedom gave the Army an arena to battle test the latest version of the venerable Apache helicopter series, the Longbow Series D. Barker is proud of its superior performance under the extreme conditions of sun and sand that created havoc with U.S. military hardware in the first Gulf War.

“We had sandstorms, and days where the temperature hit nearly 130 degrees,” says Barker. “Simply put, it did great.”

The war featured mobile rocket launchers that traveled with the troops.

Attached to a Humvee, these lightweight systems allowed the Army to deliver lethal punches with TOW from just about anywhere the troops could go.

“We have to provide our people with overwhelming lethality,” says Barker.

“And we have lots of testimonials from the troops as to how well these systems worked.”

AMCOM provided critical support to the troops. “Our role is to be the sustainer of missiles and aviation efforts,” says Col. John Smith, AMCOM Chief of Staff. One of those roles was support of the Army’s helicopter program. “Our mission was to keep them flying,” Smith said, noting that birds such as the Apache continued on page 17 13 Initiatives October 2003

Operation Iraqi Freedom . . . continued from page 13

helicopter flew two to five times as much per week in Iraq as they typically do at U.S. bases. In addition to the damage sustained to many helicopters from hostile gunfire, Smith says the heat and sand made operating conditions even more difficult. “It was a huge stress factor,” he added.

Among the war’s greatest success stories was the newest version of the Patriot missile, designed to knock out hostile missiles, such as Iraq’s Al Samoud and Ababil weapons that Saddam Hussein trotted out during the Gulf War. Managed by the Army’s PEO Air, Space, and Missile Defense at Redstone Arsenal, Patriot amassed a stellar performance record, achieving 100% kill accuracy against the nine Iraqi missiles they were sent to intercept. AMCOM Chief of Staff Col. John Smith credits Patriot with protecting the troops before they entered Iraq as well as during actual operations.

The most visible difference is the hit-tokill feature of the Patriot system. The old Patriot was designed to take out enemy weapons by force of explosion. The new missile has no warhead, but is designed to destroy incoming missiles by force of impact.

As war clouds gathered in the fall of 2002, and the U.S. buildup in the Gulf began, AMCOM moved into high gear. Elaborate preparations were made for the deployment of hundreds of helicopters and missiles into the war theater. “We had people working 60, 70, even 80 hour weeks,” says Smith. AMCOM staged hundreds of millions of dollars of military assets in Kuwait, and AMCOM sent dozens of LARs – Logistics Assistance Representatives – to provide technical advice and support to the troops. “LARs were critical in making Operation Iraqi Freedom a success,” according to Major General Joseph Bergantz, Program Executive Officer for Aviation.

The state of Alabama contributed a large proportion of troops to the war effort. But it was North Alabama that supplied the overwhelming excellence in technical support.

You take care of the training.

We’ll provide the R&R. Training should be intense. But it’s even more productive when your employees have room to relax, too. Why not give them all the comforts of Marriott’s flagship all-suite hotel?

To learn more or make a reservation, visit residenceinn.com or call 800-331-3131.

Residence Inn - Huntsville 6305 Residence Inn Road Huntsville, AL 35806 256-895-0444 phone 256-895-9596 fax Room to work, room to relax, room to breathe.

SM

© 2002 Residence Inn by Marriott, Inc.

– Mike Kelley 17 Initiatives October 2003

Economic Indicators POPULATION

EMPLOYMEN T*

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

JULY 2003

JULY 2002

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

145,604

6,081

242,971

439,023

Total Non-ag Employment............................................................178,700

181,900

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

161,842

16,813

293,047

505,967

Mining & Construction......................................................................7,000

6,900

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

158,216

29,329

342,376

581,506

Manufacturing ................................................................................31,700

31,900

2003 Estimate ......................................287,117

159,636

31,614

355,488

598,007

Trade, Transportation & Utilities ....................................................27,200

n/a

% Growth 1980-2003 ............................45.8%

9.6%

419.9%

46.3%

36.2%

Information ......................................................................................2,400

n/a

Financial Activity ..............................................................................5,300

5,100

Households

Huntsville Metro Area**

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

51,113

2,040

82,440

150,864

Professional & Business Services ..................................................31,200

n/a

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

63,838

6,681

110,893

191,654

Education & Health Services..........................................................10,700

n/a

2000 Census ........................................109,955

66,742

11,143

134,643

229,284

Leisure & Hospitality ......................................................................15,700

n/a

2003 Estimate ......................................114,811

68,070

12,059

140,703

237,445

Other Services ..................................................................................7,300

n/a

% Growth 1980-2003 ............................71.2%

33.2%

491.1%

70.7%

57.4%

Government....................................................................................40,200

39,800

* Based on place of employment.

Race 2003 Population Estimate ....................281,117

159,636

31,614

355,488

598,007

White ......................................................70.8%

63.3%

77.8%

73.2%

79.5%

Black ......................................................23.7%

31.0%

14.8%

21.7%

16.0%

Asian & Pacific Islander ............................2.0%

2.3%

3.7%

1.7%

1.2%

Other Races..............................................3.6%

3.4%

3.8%

3.5%

3.4%

Income & Age Average Household Income ................$63,021

$61,025

$77,962

$60,858

$56,892

Median Household Income ..................$48,301

$48,324

$66,509

$46,754

$45,052

Per Capita Income ..............................$25,450

$26,384

$29,896

$24,362

$22,809

Median Age ................................................36.5

38.3

34.9

36.6

37.7

Source: ESRI Business Information Solutions, 2003; U.S. Census Bureau (www.census.gov)

**Includes Madison & Limestone counties

Source: Alabama Department of Industrial Relations

LABOR FORCE * JULY 2003

JULY 2002

Madison ......................................................................................145,680

147,910

Limestone ......................................................................................31,660

30,230

Huntsville Region (Counties)

Jackson ........................................................................................25,710

25,620

Marshall ..........................................................................................40,390

39,390

Morgan ..........................................................................................57,050

56,440

Franklin, TN ....................................................................................20,140

19,070

Giles, TN ........................................................................................15,980

16,100

Lincoln, TN ....................................................................................14,480

14,620

Huntsville Regional Total..........................................................351,090

349,380

* Based on place of residence.

RETAIL SALES Huntsville Region - (000’s) 2002 Annual Retail Sales Madison Co.

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

Total Retail Sales

Food & Restaurants

Furniture & Merchandise

Automotive

$3,910,205

$736,594

$908,076

$978,414

$619,484

$141,111

$131,142

$132,976

Jackson Co.

$468,707

$117,990

$102,509

$89,452

Marshall Co.

$1,242,376

$164,795

$229,099

$579,074

Morgan Co.

Limestone Co.

$1,448,374

$287,895

$258,605

$419,366

Lawrence Co.

$245,369

$58,321

$38,133

$32,547

Giles Co. (TN)

$278,739

$56,429

$32,025

$84,589

Lincoln Co. (TN)

$300,730

$50,192

$65,715

$94,805

Franklin Co. (TN)

$311,996

$102,760

$60,773

$54,711

$8,825,980

$1,716,087

$1,826,077

$2,465,934

Regional Total

UNEMPLOYMENT RATE*

JULY 2003

JULY 2002

Madison County................................................................................4.7%

4.2%

Huntsville Region ..............................................................................5.8%

5.5%

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

5.4%

United States ....................................................................................6.2%

5.9%

* 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 2nd QTR 2003 Composite Grocery

TransHealth portation Care

Goods & Services

Index

Items

Housing

Utilities

Atlanta, GA

95.9

97.5

90.1

92.6

98.6

101.5

99.9

Huntsville, AL

92.7

98.7

76.9

91.9

102.1

86.5

102.3

Dallas, TX

96.9

97.2

92.4

89.2

99.7

101.2

101.8

Orlando, FL

97.6

102.8

89.6

98.5

95.5

95.9

103.1

St. Louis, MO

102.6

113.6

96.1

94.8

95.4

99.7

108.6

Washington, D.C.

134.8

114.3

188.9

108.6

122.4

121.3

109.2

Source: Sales & Marketing Management, 2003 Survey of Buying Power – Printed with permission.

CONSTRUCTION ACTIVITY (cumulative to date)

# of Projects

JULY 2003 Square Feet

JULY 2002 $ Value

# of Projects

Square Feet

$ Value

Total Const. Contracts ...................... 981

3,639,000

$245,714,000

992

3,198,000

$284,545,000

Commercial ........................................ 72

622,000

$37,096,000

83

957,000

$70,465,000

Manufacturing .................................... 10

67,000

$4,193,000

15

383,000

$30,032,000

Single Family .................................... 751

1,606,000

$61,269,000

767

1,640,000

$62,397,000

Multi-Family .......................................... 3

8,000

$250,000

20

50,000

$5,957,000

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

HOME SALES Source: F.W. Dodge – Printed with permission.

CONSUMER PRICE INDEX

JULY 2003 Index

JULY 2002

% Change 02-03

Index

United States...............................................................183.9

2.1%

180.1

1.5%

South Region...............................................................177.3

2.1%

173.6

1.2%

All Urban Consumers

% Change 01-02

Source: Bureau of Labor Statistics, Atlanta, GA., December 1982=100 base. (http://stats.bls.gov/cpihome.htm)

18 October 2003 Initiatives

JULY 2003

JULY 2002

Houses on Market.............................................................................. 3,571

3,742

Houses Sold & Closed.......................................................................... 718

546

Avg. Selling Price.......................................................................... $140,221

$129,353

Avg. Days on Market..............................................................................108

117

Median Sales Price........................................................................$121,284

$114,000

Source: Huntsville Area Association of Realtors

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 economic hub of the north Alabama and southern Tennessee regions. The counties adjoining Madison County combine to form an eight-county regional market with a population totaling 700,000 people.

LEADING EMPLOYERS U.S. Army/Redstone Arsenal . . . . . . . . . .11,141 Huntsville Hospital System . . . . . . . . . . . . .4,355 Huntsville City Schools . . . . . . . . . . . . . . .3,000 The Boeing Company . . . . . . . . . . . . . . . .3,000 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . .2,800 NASA Marshall Space Flight Center . . . . . .2,754 DaimlerChrysler Corporation . . . . . . . . . . .2,500 City of Huntsville . . . . . . . . . . . . . . . . . . . .2,186 Madison County Schools . . . . . . . . . . . . . .1,936 Intergraph Corporation . . . . . . . . . . . . . . . .1,750 ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . .1,700

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.

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.

Sanmina-SCI

. . . . . . . . . . . . . . . . . . . . . .1,700

Walmart/Sam’s Stores . . . . . . . . . . . . . . . .1,581 Northrop Grumman . . . . . . . . . . . . . . . . . .1,350 Teledyne Brown Engineering . . . . . . . . . . .1,338 Goodyear/Dunlop Tires . . . . . . . . . . . . . . .1,271 Lockheed Martin . . . . . . . . . . . . . . . . . . . .1,250 Computer Sciences Corporation . . . . . . . . .1,200 University of Alabama in Huntsville . . . . . . .1,112

Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. More than half of the Army’s weapons procurement budget is managed by Huntsville-based operations as are more than half of the Army’s foreign weapons sales. More than 25,000 people are directly employed by the military and support contracts.

West Corporation . . . . . . . . . . . . . . . . . . . .1,100 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,080 Madison County . . . . . . . . . . . . . . . . . . . . .1,073 Benchmark Electronics . . . . . . . . . . . . . . . . .921 Alabama A&M University . . . . . . . . . . . . . . .890 Jacobs Sverdrup Technology . . . . . . . . . . . .800 Target Distribution Center . . . . . . . . . . . . . . .750 Crestwood Medical Center . . . . . . . . . . . . . .668 Madison City Schools . . . . . . . . . . . . . . . . . .644 Engelhard Corporation . . . . . . . . . . . . . . . . .600 Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . .600 Redstone Federal Credit Union . . . . . . . . . . .575 PPG Industries, Inc. . . . . . . . . . . . . . . . . . . .550 CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .502 Source: Chamber of Commerce

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 CINRAM, one of the world’s largest manufacturers of DVD products.

Research & Technology Huntsville’s Cummings Research Park is the country’s 2nd largest research and technology park, containing 220+ companies employing 22,000 people involved in technology research and development.

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.

19 Initiatives October 2003

20 October 2003 Initiatives

Jewel of Alabama National Space Science Technology Center Is State Gem in a World of Research The ingenuity and passion of scientists developing new ways of doing things sparked Huntsville’s growth.

That same demand for research and its importance to the community fueled the development of the NSSTC. Innovative research at Huntsville’s nationally-acclaimed science center is improving the image of Alabama and providing tangible benefits that impact the world.

“It has preserved something important for the state,” says Dr. Richard McNider, Interim Executive Director of the National Space Science Technology Center.

The new 80,000 square foot facility serves as both a reminder of Huntsville’s beginnings and a source of hope for its future. McNider says the origin of the NSSTC dates back to 1995 with the reorganization of NASA. At the time, NASA Administrator Dan Goldin challenged the state to join with NASA in locating a new research and technology center in Huntsville.

The ingenuity and passion of scientists developing new ways of doing things helped build Huntsville. That same demand for research and its importance to the community fueled the development of the National Space Science Technology Center.

A plan surfaced to develop a partnership with a University. The result was the formation of the Global Hydrology and Climate Center – a partnership between NASA and the University of Alabama in Huntsville (UAH). As it happened, the Atmospheric Science Department of UAH had been small, so combining the two opened up a lot of doors, explains McNider. Civilians from Marshall moved into the new facility, and University

faculty began working alongside the NASA scientists.

“That was sort of a prototype and it worked,” he says. Since then, the new NSSTC has opened up numerous opportunities for collaborations and partnerships. “It’s grown fast, but that’s a tribute to both the civil side and the University side being able to work together successfully.”

“In terms of economic development, the new endeavor saved 500 jobs,” McNider adds of that first move.

The economic impact, although sometimes indirect, is important. Hightech centric cities are often centered around universities, says McNider. In successful, growing places, the universities attract a high percentage of PhDs. “That’s indirect seeding of ideas into the community,” he adds, “which is an important resource that serves to support business growth and technology.”

In the long-term, McNider would like to involve the rest of the state more heavily in the Center’s space and technology initiatives.

“A fundamental goal for NSSTC is to increase the competitiveness for proposals and win funding for research.”

He proudly recognizes the fact that NSSTC has already played an important role in bringing together partnering opportunities on research projects with universities across Alabama including Auburn University, the University of Alabama, the University of South

Alabama (USA), the University of Alabama at Birmingham (UAB), Alabama A&M University, and UAH. Additionally, scientists at the NSSTC are attracting attention for the results of their research. Not long ago, one of the Center’s astronomers was featured in an article in Scientific American magazine for winning two prestigious awards in the field of astronomy for work on cosmic rays. In the Earth Sciences area, McNider points to two researchers who have developed a way to measure the Earth’s temperature using satellites. “That’s been a priceless piece of information to the world in understanding global changes.”

Other projects have tackled everything from air pollution to agriculture.

“Scientists are always looking for new things – it’s that intellectual curiosity that contributes to the uniqueness of our community,” he says. In fact, it’s the foundation of the NSSTC. 21 Initiatives October 2003

Under construction With $16.5 million in new funding, the National Space Science Technology Center recently celebrated the opening of its new expanded facilities. Alabama ranks 11th in terms of the amount of federal R&D dollars received annually, and the NSSTC certainly demonstrates the superiority of our state in R&D performance.

The 80,000 square foot facility features a shock-absorbing foundation for its rooftop lightning observatory, a high-bay area extending into the second-floor level to assemble large (weather) balloons, and a glass-encased observation facility on the center's roof.

The state-of-the-art facility is a cutting-edge research center supporting research activities in space science, earth sciences, materials science, biotechnology, propulsion, information technology, and optics.

“We are taking the first step in realizing our vision of a world-class research center

in Alabama whose excellence will be recognized across the nation,” said U.S. Representative Bud Cramer at the NSSTC open house.

In 2000, the $32 million facility for the NSSTC was created through funding from Congress as well as from state and local contributions.

“The partnerships that have allowed the National Space Science and Technology Center to become a reality represent a new way of doing business,” Cramer said. “This new way of doing business will strengthen scientific research in Huntsville and the state of Alabama for years to come.”

The Chamber of Commerce

Board of Directors and Executive Committee 2003 Elected Board Howard Thrailkill, Chair Pete Apple Joe Austin Scott Averbuch Barbara Buice Watson John Cooper Joel Daves Wyn Dobbs Marshall England Dick Fountain Dr. Greg Gum Bill Gurley Michael Hall Richard Holloway Dr. Eric Janssen William Johnston, Jr. Donna Lamb LTG James Link (Ret.) Jerre Penney Joe Ritch Remigius Shatas John Stallworth Paula Steigerwald William Stender Irma Tuder Johnnie Vann Peter Voetsch Jean Wessel-Templeton Bill Watson Keith Wilson

Executive Committee Howard Thrailkill, Chair Tommy Beason, Chair-Elect Ronald W. Boles, Past Chair Chairman Mike Gillespie, Chair-Appointed Bill Gurley, Chair-Appointed Dave Hargrove, Vice Chair Res. Dev. & Finance William Johnston, Jr., Vice Chair Membership Brad Jones, Vice Chair Workforce Development Raymond Jones, Jr., Secretary LTG James Link (Ret.), Vice Chair Government Affairs James Makemson, Chair-Appointed Scott Seeley, Treasurer Mayor Loretta Spencer, Chair-Appointed Karen Stanley, Vice Chair Small Business Brian Hilson, President/CEO Jeff Thompson, COO

Chamber of Commerce Huntsville/Madison County 225 Church Street Huntsville, Alabama 35801 (256) 535-2000 www.hsvchamber.org 22 October 2003 Initiatives

Member Developments

Dragon Construction celebrated its ribbon cutting on July 22, 2003. Dragon Construction works with all phases of remodeling, room additions, repairs, etc.

For more information call 348-2093.

Phoenix Emergency Care opened April 28th in Jones Valley. It is an Urgent Care Center with Weight Loss and Physical Therapy. For more information, call 425-0079.

DHS Systems, LLC (DRASH) celebrates opening its newest Business Development, Technical Support, and Mission Equipment Integration facility, specializing in Quick Erect Soft Wall Shelters, Lightweight Power Generation, and Environmental Control Units. It is located at 244 Lime Quarry Road, Madison, Alabama.

Bellacino’s Pizza & Grinders opened its 2nd store in May – located at the intersection of Airport & Whitesburg. Bellacino's offers dine-in, carry-out, and commercial delivery. Call 880-8656.

First Commercial Bank – Westside Financial Centre is the newest member of the First Commercial Bank family. On Friday, July 11, Mayor Loretta Spencer, along with the Westside Financial team members, cut the ribbon and officially opened the doors for business.

Rise Real Estate (Twickenham Office) – Betty Hughes recently opened the Rise Real Estate–Twickenham Office. Rise–Twickenham is located at 415 Church Street along with Hughes Properties, a Property Management Company.

Standing with her are Tommy and Jimmie Adams, owners of Rise Real Estate.

23 Initiatives October 2003

Safety Gear Local technology – Helping to Secure the Nation In 2001, autonomic computing was identified as the technology of the future, but most industry leaders thought a real solution was at least five or more years away from realization. Huntsville company proves them wrong.

In search of advanced technologies to thwart possible terrorist attacks, the U.S. Government continues to send out an S.O.S to both academia and industry … and Huntsville’s Palladia Systems is answering with a “self-healing” solution.

Officials from the department of the Homeland Security Advanced Research Projects Agency (HSARPA) met with high-tech entrepreneurs in Silicon Valley this summer. The recently formed agency was in search of innovative research projects to help secure critical infrastructure such as energy plants and telecommunications lines.

While HSARPA made a plea for help in California, Alabama-based Palladia Systems was focusing on bringing its patented Angela Technology to market.

The technology is based on the principles of “autonomic computing.”

“Innovation is the key,” says Kelly Parker, CEO and president of Palladia Systems, Inc., and others couldn’t agree more.

uses autonomic controls to regulate temperature, breathing, and heart rate without conscious thought. The initiative for autonomic computing strives for complex data systems to be able to selfmonitor, self-manage, and self-configure with little or no human interaction required.

What does that mean for HSARPA, Federal agencies, and commercial organizations seeking security solutions? The Angela Technology, for instance, can be used with cargo monitoring devices at U.S. ports to offset risk to our maritime ports. The technology’s integrated physical and IT security applications can be implemented by corporations across America to secure critical data and operations centers.

“There’s so much information out there it bogs people down and they can’t get to something important – like security,” notes Tom Bowden, originator of the technology and founder of Palladia Systems. He says the Angela technology sorts through unimportant data, identifies real risks, alerts IT Though the idea of this technology managers or other designated authorities, and then either seems new, Palladia Systems was makes an intelligent decision of developing working models of the how to respond on its own or waits for further instruction. technology as early as 1999.

Though the idea of this technology seems new (especially Using an idea borrowed from the its artificial intelligence component), human body’s central nervous system, working models of the technology were self-healing technologies are the utiliza- being developed as early as 1999. In tion of intelligent systems to self-manage 2001, autonomic computing was identiand regulate themselves – just as the body fied as the technology of the future, but

most industry leaders thought a real solution was at least five or more years away from realization. Huntsville companies proved them wrong.

There’s a great deal at stake – especially financially. Consider the Federal government is expected to spend nearly $1 billion next year to develop homeland security related technologies.

Also, corporate IT (information technology) spending should increase by nearly 4% in 2004, with security at the top of the priority list.

“We’re on an upswing with IT spending, and security issues have opened the doors wider,” Parker says of a market that continues to be defined by critical need.

What sets small technology companies apart from large companies going after this market?

“Autonomic computing is a reality in this company; it’s not a dream that’s still three to five years out,” Parker says. A full launch of the product is expected in early November 2003. And the company recently announced it had entered into a Pre-Release testing agreement with ACS for the Angela Integrated Security software. ACS is a joint venture of Computer Sciences Corporation (CSC), DynCorp, and General Physics, who is the center support contractor for the Air Force at the Arnold Engineering Development Center (AEDC), Arnold Air Force Base in Tennessee.

Huntsville companies are poised to bring autonomic computing to the market as a series of products, not just ideas.

25 Initiatives October 2003

26 October 2003 Initiatives

Picture our vibrant community and you’ll see that Crestwood Medical Center plays a vital role.

Crestwood Medical Center is committed to our community, physicians, and employees. As a corporate citizen, we are proud of the tax dollars we provide to support life-enriching services and programs. As a hospital, we offer some of the latest medical technology and patient-friendly facilities. But it’s our exceptional physicians and employees who dedicate themselves to their patients everyday that we are most proud of. As we look toward the future, Crestwood will only strengthen our commitment to the health and well-being of our community. CHOOSE CRESTWOOD MEDICAL CENTER.

Just off Airport Rd., west of Whitesburg Dr. • Huntsville

“At Crestwood Medical Center, we are committed to providing consistent, exceptional health care.” Bradley Jones, CEO

Call 256-880-4100 for physician referral or visit us at crestwoodmedcenter.com

PRSRT STD U.S. Postage PAID Permit# 206 Huntsville, AL