Initiatives magazine, June 2003

Page 1

ini tiatives

june 2003

huntsville madison county

chamber of commerc e

Destination of

Choice

Building Confidence on the Homefront Commuting is an Easy Road

11

Huntsville - Home to Top Brass

23

09



ini tiatives H u n t s vi l le / Ma d is o n Co u n ty • Ch a m b e r of Co m m e r c e

f eat u re s cover

Destination Huntsville. . . Viable Business

05

Building Confidence on the Homefront

09

Commuting is an Easy Road

11

National Children’s Advocacy Center Serves as Model

17

Huntsville – Home to Top Brass

23

They Come to Play

26

On Location with SpecPro

29

de v el o p m e n t s Destination of Choice Cover design by Huntsville/Madison County Chamber of Commerce Publications Department.

s t a ff

Publication Manager

Rikki Thomas

Managing Editor

Barbara Nash, APR

Writers

Shannon Belew

Economic Development Highlights

11

Member Developments

13

Economic Indicators

20

Economy-at-a-Glance

21

Noteworthy – Industry on Display

30

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

Mike Kelley Account Executive

R.D. Patterson

Publisher

Jeff Thompson

President/CEO

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.”

03 In i t i a t i ves June 2003


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04 June 2003 In i t i a t i ves


Destination Huntsville. . . Viable Business Previously considered one of the best-kept secrets in the world of business, one city is quickly becoming recognized around the globe as a hot spot for business, and a cool place to live. Huntsville, Alabama is now hailed as a “High-Tech Mecca” by industry heavy-hitters. The word is out, and more industries than ever before are packing their bags and heading toward this destination of choice. One of the most recent additions to the local landscape is Digital Fusion, Inc., a small publicly-traded technology firm. “Personally, having been in Tampa, Florida for nearly 20 years, it was a big deal for us to move,” said Roy Crippen, the company’s Chief Executive Officer. Admittedly, Digital Fusion had already gotten its feet wet with Huntsville. Company leaders were intimately familiar with the area and what it could do for a company long

rest of the company, the Huntsville office proved to be the exception. “It’s been our most successful operation. The division was the only one in the company with sequential revenue growth over the last two years,” he said. He credits most of the strong sales numbers to Jeff Williams, the leader of the division. Under Williams’ leadership, the success of the Huntsville office was obvious. And it became clear it no longer made sense to stay in Florida. “The move is in the best interest of the company,” Crippen said. Of course, given the company’s desire to increase its focus toward a particular customer base, the timing of the move was also right. Potential employees . . . are much more The company likely to make a move from the northeast provides business technology or the West Coast because of Huntsville’s consulting services and already reputation as a technology hub. receives about 35 percent of its before moving their headquarters here. contracts from state and local governCrippen said Digital Fusion had a ments. The management team would regional location in Huntsville for close like to see that number increase. to seven years. A few years ago, when a Moving Digital Fusion’s headquarters to sharp decrease in IT spending hurt the a city with such a large federal base will

speed the growth of this portion of the business. Similar marketing strategies have attracted many other federally-focused businesses to the community. One of the city’s treasured homegrown company leaders shared some of Digital Fusion’s experiences. Recognized worldwide for its software and services, Intergraph Corporation was once a young start-up fighting for its niche. In the 1970s, the Huntsville-based computer company (having grown to 700 employees) faced changing market conditions. Its corporate leaders made a critical strategic decision, and the plan put on the table was one far less dependent upon its previous core of federal customers. With a new plan revolving around a move toward a commercial customer base, Intergraph executives also decided it was time to get serious about a relocation plan. The group began looking for a new place to call home. “We looked closely at moving to Atlanta. It was obvious we were going to do more commercialized work and less government-centered work. We thought we needed to be in a larger market,” said Jim Taylor, CEO of Intergraph. continued on page 06 05 In i t i a t i ves June 2003


Destination Huntsville . . . continued from page 05

In the end, company leaders made a very different decision. What swayed the final vote? Many of the same factors that continue to influence company executives and employees today. “Huntsville is a wonderful place to raise a family,” explains Taylor. “It’s also away from many of the problems found in larger cities.” At the time Atlanta and other large cities were being considered as relocation candidates, the executives making that final call all had young families. There was a reluctance to lose the comfort and security provided by a smaller community.

6 June 2003 In i t i a t i ves

So it was decided Intergraph could overcome any disadvantages of being in a smaller city. They could always move later. It hasn’t been up for consideration since. “Today we’ve got over 6,000 employees,” Taylor added, “I haven’t ever really looked back.” Like those Intergraph executives more than three decades ago, Digital Fusion’s Crippen said the feel of a small, caring community was a substantial influencer for him. Though the majority of his decision to locate into Huntsville was based on business factors, the rest of Huntsville’s selling points


made it a decision his entire family could embrace. “There are so many factors making Huntsville attractive, including the overall quality of the school system,” said Crippen. Combined with the selection of houses and community activities, Huntsville became a place his wife could also envision living – an important part of any company’s relocation decision, he noted. Both Crippen and Taylor agree there are a variety of factors continuing to push Huntsville far ahead of other cities. For Intergraph, one of the resulting benefits of the company’s Huntsville headquarters has been the realization of a more stable workforce – a factor influenced by the continued family environment of the community. “Once employees move here, they are very reluctant to move away,” Taylor explained. “We have a strong calling card for technology people,” he said. Potential employees, for example, are much more likely to make a move from the northeast or the West Coast because of Huntsville’s reputation as a technology hub. Another important factor, according to Taylor, is the shared resources with other technology companies, universities, and government agencies in the area. “We have the Army Aviation and Missile Command Center, NASA, and aerospace and defense companies all supporting high-tech,” he said. Proximity to these government centers offers the potential for greater access to shared research and development dollars. He said Intergraph’s mapping products originated from a defense mapping agency. Most recently, one of the company’s business units also licensed NASA’s award-winning VISAR

technology for use in Intergraph’s Video Analyst System. All of those technologies, Taylor points out, were funded and originated from research and development work in the government. Intergraph’s sprawling campus is also within easy driving distance to the country’s second largest research park. Cummings Research Park is home to Fortune 500 companies and leading technology companies like Digital Fusion, Inc.

“If we were alone as far as being a technology company in Huntsville, it would be significantly harder,” he explained. “The fact that Huntsville is recognized as a ‘High-Tech Mecca’ offers multiple opportunities for Intergraph.” Digital Fusion is also counting on exploring these opportunities. “We believe partnering with companies is important,” Crippen said. “The most successful companies form alliances with others.” Crippen’s star division manager, Jeff Williams, has been in Huntsville long enough to know Taylor is right – there are a lot of potential resources out there. “Huntsville is a small businessfriendly town,” he said. “There are plenty of businesses out here that have grown into large corporations, and who are more than willing to help other small businesses learn from their successes.” The reasons go on and on, and neither Williams nor Crippen is short on answers for what makes Huntsville the ideal spot. But the way Intergraph’s Taylor sees it, the bottom-line is simple. “It is easier for other companies like an Intergraph, to make their headquarters here,” he said. “It is significantly easier for a company to make a decision to be here now.” Crippen agrees whole-heartedly. “It’s a progressive community with many high-end technology companies to help it continue growing,” he stated. “From our perspective, we’re really excited about the opportunity and what it means to be able to run Digital Fusion from Huntsville.” And he’s certain of one more thing. “Huntsville is really a good place,” he said knowingly. It’s official – the secret has been leaked. 07 In i t i a t i ves June 2003


08 June 2003 In i t i a t i ves


Building Confidence on the Homefront There’s no place like home, and last year Americans flocked to find a place to call their own. The final result of the deluge of homebuyers was a year of record-setting sales for the housing industry. In fact, sales of single-family homes hit an all-time high in Huntsville and Madison County during 2002, according to data released by the Huntsville Area Association of Realtors, Inc. A total of 4,434 single-family homes were sold in 2002 at a median sales price of $117,000, compared to a median of $109,900 in 2001. The six-and-a-half percent increase in median sales price is the largest annual increase since 1997. Spurred by interest rates hitting a 40year low, cities across the nation benefited from the increase in the number of home sales, and the Huntsville area was no exception. The number of homes under construction in Madison County saw a staggering 19 percent increase on average. Madison’s single-family home construction hit 560 in 2002, for an increase of 21 percent. “There were less than 3,000 people in Madison when I first came to the area in 1978. Now there are more than 33,000,” said Mark Williams, broker of ERA Ben Porter Madison, and 2003 president of the Huntsville Area

When you’ve got a thriving

economy, it brings people

into the area.

Association of Realtors. In addition to big numbers in new construction of homes in Madison, the entire area of Madison County (which includes the cities of Huntsville and Madison) hit high notes in home sales. “When the nation went up to a record-high of five percent for home sales, locally we went up six percent,” Williams said. By first quarter 2003, some wondered if the good times would last. Real estate professionals and economic analysts began to talk of a housing “bubble” dangerously close to bursting in communities across the United States. But for Huntsville and Madison County, neither a nation’s stalled economy nor war with Iraq would deter the confidence of residents in North Alabama. Why? “Consumer confidence is based on the unemployment rates and the interest rates,” explained Williams. “Interest rates remain low, our unemployment rate is considerably lower than other places, and our cost of living index is

also low. We’ve got new jobs coming to the area, and jobs are being created from industries that are already located here.” Williams said he has watched families relocate into the area to take a new job, and subsequently sees parents and grandparents move into the area. Families have to like the community to make a commitment of that nature, and Madison County seems to pass the test. So, the jury may still be out in some locations, but many cities across the U.S. – including both Huntsville and Madison – are projecting 2003 to be another banner year for home sales. 09 In i t i a t i ves June 2003


10 June 2003 In i t i a t i ves


Economic Development Highlights

Commuting is an Easy Road

Holeman Scientific Opens New Building Holeman Scientific opened its new headquarters facility on Green Cove Road in southeast Huntsville. The company, which designs electronic monitoring systems for military and commercial applications, plans to add 16 employees.

The classic commuting pattern typically supports the idea that people live where houses are affordable and work where jobs pay more. If the theory holds true, then residents of Madison County are reaping the benefits of both ends of the spectrum without having to leave home.

According to recently released figures from the 2000 Census, 94% of working residents in Madison County work in the county. That translates to more than 126,000 workers staying close to home to earn a living. It also means Madison County took the lead over Alabama's other three largest counties in countyto-county workflow patterns. The Chamber of Commerce of Huntsville/Madison County knows how valuable these statistics are. Chief Operating Officer Jeff Thompson says, “The length of commute time for workers is an extremely important factor determining the attractiveness for our community. The ease of travel here significantly raises the quality of life, and gives workers more time for family life and other interests.” Linda James of The Boeing Company agrees, “Commuting distance is a consideration when prospective employees look at moving to Huntsville. A significant number of our new employees come from larger cities where commuting to work is a challenge.” That’s not to say some Madison County workers aren’t clocking a few miles when traveling to and from

work. The Census report showed that residents commuted to cities as close as Decatur, Alabama in Morgan County; and as far away as Kuwait and Saudi Arabia. Of those residents leaving the U.S. to go to work, Germany received the most Madison County commuters. Closer to home, Morgan and Marshall Counties receive Madison County commuters, and even some counties in southern Tennessee get some residents to leave Madison County to work. Thompson continued, “Having so much of the workforce stay in Madison County is advantageous for many reasons, including an increase in the tax base. Keeping those revenues local is an advantage, not

Huntsville Biotechnology Center Opens SourceCF, Open Biosystems, and Applied Genomics, three local biotechnology startup companies, have combined to open the Huntsville Biotechnology Center. The Center, located on Odyssey Drive in Cummings Research Park, is housed in a 24,000 square foot building and is designed to encourage and foster the growth of new jobs and advancements in the biotech industry in the Huntsville community.

Alabama A&M Builds Technology Building Alabama A&M University opened its new School of Engineering and Technology Building. The $11.5 million facility will house the university’s engineering school and contains laboratory and classroom space dedicated to advancing the school’s technology needs.

UAB Opens Facility The University of Alabama at Birmingham School of Medicine’s Huntsville Regional Medical Campus opened a new 93,000 square foot, $13.6 million building to serve the school’s primary care physician training. The new building, located on Governor’s Drive across from Huntsville Hospital, will house the school’s resident physician training programs and patient services as well as the local Veterans Administration Clinic.

continued on page 12 11 In i t i a t i ves June 2003


Commuting . . . continued from page 11

only for the government entities, but also for the citizens they ser ve.” All of this comes as no secret to real estate agents who will be the first to admit that it's no secret… people would prefer to live close to where they work. “It’s a way of taking ownership in your local community. Of course, it only works if homes stay affordable, especially in respect to the starter-home buyers,” said Mark Williams, president of the Huntsville Area Association of Realtors. “These buyers may be the school teachers, police officers, and fire fighters. All are examples of home buyers who need to be close to places of employment – which means they need affordable housing in order to do so.” “Having affordable homes within a reasonable distance to Boeing has been a big plus for us in recruiting applicants to the area,” acknowledges James. For those willing, able, or required, even a sizeable commute within the city doesn’t take up extensive traveling time on Madison County roads. The average commute time for residents is 20.9 minutes, comparing favorably to higher state and national averages. Regardless of the time of day, James can testify that the county’s average commute time holds true. Having lived in larger cities on the East coast, she experienced the difficulty of traveling between work and home on a daily basis – where the average time required for a commute was hours, not just minutes. “Getting to and from work was always a challenge and rarely a pleasant experience.” It’s different living in Huntsville. “I like living ‘in town’ and only having a 20minute drive to work.” 12 June 2003 In i t i a t i ves


Member Developments

SouthTrust celebrated the Grand Opening of its Jones Valley location on April 15th. Beth Brooks will be the Manager of this Carl T. Jones Branch.

Primrose Schools have broken ground on a third location, opening mid/late July, Primrose School of Research Park – 5014 Bradford Drive, 830-0110.

Celebrations Plus held a Grand Opening ceremony at 4800 Whitesburg Drive

Redstone Federal Credit Union celebrates opening its newest state of the

in the Village at Whitesburg Shopping Center. They offer on-site printing with next day service on over 1,000 designs for stationery, invitations, and annoucements. They also offer balloon delivery and wedding coordination services.

art branch located at 13800 South Memorial Parkway.

The Robertson Agency with American National Insurance Co. is located at

Holeman Scientific Corporation hosted a Ribbon Cutting on April 16th to

2620-E Memorial Parkway NW. They specialize in auto, home, and life insurance as well as other financial services. Contact them at 852-5039 to inquire about "CASHBACK "and "TLC" programs.

celebrate opening a new facility at 105 Green Cove Road.

13 In i t i a t i ves June 2003




16 June 2003 In i t i a t i ves


National Children’s Advocacy Center Serves as Model Giving back to the people is a mark of true success of any community. For Huntsville and the North Alabama region, giving back is exemplified by the National Children’s Advocacy Center. And not only does the NCAC give back to Huntsville – it gives to the rest of the country.

The NCAC in Huntsville has become a source of inspiration to other people and organizations seeking to deal effectively with the heartbreaking issue of child abuse. The Huntsvillebased center is dedicated to serving its local community and committed to teaching cities across the United States how to duplicate its success in responding to child abuse and promoting intervention. “Since 1985, we have trained more than 52,000 people in Huntsville,” said Connie Carnes, Executive Director for the National Children’s Advocacy Center. “We have become recognized as the ‘goto authority’ for this issue. This crime happens all the time, in every community. The critical question becomes how do you respond to it, and how do you prevent it,” she said. Developed under the leadership of Congressman Robert “Bud” Cramer, then District Attorney worked with other community leaders and volunteers to create a center to meet the needs of abused children and their family members in a non-threatening environment. Because of the leadership of Cramer and others, the NCAC in Huntsville has

become a prototype for the entire country. The original location of the center became the home representative of that

vision. It was known as the “The Little House on Lincoln Street” and was dedicated to serving the child’s total needs. The facility simplified the process of victim care and combined all the necessary services under an unassuming, protective roof. The center helped child after child overcome abuse and its lingering effects. To illustrate how the process involves the entire community, NCAC Development Director Chris Russell

shared one of the most recent stories of the center’s mission. After six months of therapy at the Center’s “Little House,” counselors could see great psychological improvement in an abused eightyear-old boy. However, he still had some physical problems to overcome. “His counselor thought karate lessons would be beneficial. Unfortunately, that’s not part of our budget,” explained Russell. Not letting something like budgetary restrictions get in his way of helping a child, Russell picked up the phone. It only took one call to secure lessons – paid in full – by a member of the local community. Before Russell even had the chance to ask the person to donate the money, the woman on the other end of the phone simply said, “I’ll pay for the classes.” “Within three weeks of starting classes, the child already showed great continued on page 19 17 In i t i a t i ves June 2003


Giving Us the EDGE

[excellence, development, growth, enhancement]

What’s in a name? In this case, an explanation. A description of a proven strategy. Every community wants great companies to choose them.

A definition of excellence.

Even more important is the sense of partnership that more

Everyone is competing to improve the economic future of their

than 150 investor companies bring to the plan. Companies

area. So what gives the Chamber of Commerce of Huntsville/

from all types of industries invest their dollars, time, and

Madison County the edge in recruiting?

cooperation to keep Huntsville/Madison County’s economic

The strategy is all contained in the name of the Chamber’s five-year development program – the EDGE. It is Excellence in marketing, Development of the workforce, Growth of

future bright. With the direction of its investing partners, the Huntsville/ Madison County community has successfully developed a solid

local businesses, and Enhancement of image that all work

and proven strategy for improving the job opportunities for

together to give Huntsville/Madison County the competitive

local citizens, thus improving the quality of life in the entire

advantage it needs to attract business prospects.

region. The strategy, simply stated, is to build on the strengths

Embedded in the EDGE program are six specific initiatives

of the community – such as a highly-skilled workforce – by

dealing with various components of the marketing strategy.

encouraging local companies to grow and new high-quality

Each component complements the others to form a comprehen-

employers to move here.

sive plan addressing the major economic needs of a community which, in turn, meets the needs of existing company

The EDGE. The name of a strategy of excellence – just what this community expects and deserves.

expansions and new company locations.

The EDGE Investors

[2003]

Advisory Council ADTRAN Inc. AmSouth Bank BellSouth Colonial Bank COLSA Corporation Compass Bank Computer Sciences Corporation DaimlerChrysler Corporation Huntsville/Madison Co. Builders Assoc. Regions Bank SAIC SouthTrust Bank The Boeing Company The Huntsville Times Turner Universal Construction WHNT -TV Public Partners City of Huntsville City of Madison Huntsville Utilities Huntsville-Madison Co. Airport Authority Madison County Commission Tennessee Valley Authority Private Sector AC, Incorporated ACT Personnel Service, Inc. ADECCO Alabama A&M University Allied Photocopy, Inc. Analytical Services, Inc. APAC-AL, Inc. Arnold Hornbuckle Available Plastics, Inc. Avocent Corporation Avis Car Rental Balch & Bingham Baron Services

Beason & Nalley BellSouth Mobility/Cingular Ben Porter Real Estate Bentley Pontiac/Cadillac/Mitsubishi Bill Heard Chevrolet Bill Penney Motor Company Bill Poole Realty Blue Cross/Blue Shield Bradley, Arant, Rose & White Calhoun Community College CAS Century Automotive CINRAM Clinic for Women, P.A. Colonial Properties Comcast Cablevision Courtyard by Marriott Crabtree, Snellgrove & Rowe, PC Crestwood Medical Center CST (Computer Systems Tech) D. P. Associates Davidson Enterprises, LLC Decatur Transit (Hertz) Delta Air Lines DESE Research Dynetics, Inc. Enfinger Development, Inc. Engelhard Corporation ERC, Inc. First American Bank First Commercial Bank Foreign Language Services, Inc. Fountain, Parker, Harbarger Fuqua, Osborn, & Associates, PC G.W. Jones & Sons Giles & Kendall, Inc. H.C. Blake Company Harold Construction Corp. Heritage Bank Hernandez Engineering

HiWAAY Information Systems Huntsville Board of Realtors Huntsville Ford Tractor Huntsville Hilton Huntsville Marriott Ivan Allen JH Partners J. Smith Lanier & Co Johnson & Associates Johnston, Moore, Maples & Thompson Jones & Herrin Keystone Foods Corp. KNOLOGY Holdings, Inc. Kudzu Productions, Inc. Lamar Outdoor Advertising Lamb Commercial Services, Inc. Lanier, Ford, Shaver & Payne Lee Builders LG Electronics Madison Research Corporation Madison Square Chrysler/Jeep/Subar u Madison Square Mall Martinson & Beason MDA Associates MEVATEC Corp. Northrop Grumman-Huntsville Oakwood College Outback Steak House Parisian Park Supply Parker Hannifin Pearce Construction PricewaterhouseCoopers Pride Home Entertainment Qore Property Sciences QuantiTech, Inc. Ray Pearman Lincoln Mercur y Redstone Federal Credit Union Regal Auto Plaza Richardson, Callahan PA

Right Way Restaurants, Inc., dba Steak Out, Rosies Saint Gobain Industrial Smith Barney Samples Properties Sanmina-SCI SONAT SOUTHBank Sparta Inc. SRS Technologies State Farm Insurance Stone Engineering Co. Storie Enterprises Suitt Construction Summa Technology Sverdrup Technology Inc. Tec-Masters, Inc. Teledyne Brown Engineering The Fudgey Nut The Heart Center The Heritage Club, Inc. The Spencer Companies Inc. Thrasher Oil Company Three Springs, Inc. TRW, Inc. Union Planters Bank United Mailing, Inc. University of Alabama in Huntsville VoiceStream WAHR - Radio Wesfam/Burger King White, Fleming & Co. Inc. White Tiger Graphics WLRH Public Radio Wyle Laboratories WZYP/93.3/WUMP/WVNN Xcel Printing Service


NCAC . . . continued from page 17

improvement,” he said. “The counselor was glowing at his progress.” Seemingly simple, this example serves as an important reminder. “This is a community that reaches out to improve these children’s lives every day,” explained Russell. And he said the story also illustrates the individual approach used to help each child – an approach rooted in the center’s philosophy of incorporating whatever it takes to best serve children caught in a traumatic situation – a philosophy that has been replicated more than 430 times in 50 different states. The center shares its success through the training of personnel who work with victims of child abuse on a regular basis. Counselors, law enforcement agents, district attorneys, medical personnel, and employees of state departments of human resources all make regular visits to Huntsville to learn how to create caring, effective systems centered on the needs of the children. The NCAC is also completing a new campus which will serve as yet another model to its sister centers. Every part of the building will be focused on the child’s needs. It is specifically designed to provide a sense of comfort and welcoming. Children’s artwork will hang throughout the new center, and every part of the facility will be geared to a child’s viewpoint. From the “The Little House on Lincoln Street” to the new state-of-theart campus, the NCAC will continue to raise the bar for caring for children who are victims of abuse and give them new hope for the future. The National Children’s Advocacy Center is the epitome of a community giving back.

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19 In i t i a t i ves June 2003


Economic Indicators P O P U LAT I O N

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

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

145,604

6,081

242,971

439,023

E M P L O Y M EN T * JAN 03

FEB 03

Total Non-ag Employment............................................................181,100

181,900

Huntsville Metro Area**

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

159,789

14,904

293,047

505,967

Mining & Construction......................................................................7,100

6,900

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

158,216

29,329

342,376

582,374

Manufacturing................................................................................33,400

33,300

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

161,657

31,471

367,735

612,701

Trade, Transportation & Utilities ....................................................27,700

27,500

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

8.7%

382.3%

40.9%

32.6%

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

2,400

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

51,113

2,040

82,440

150,864

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

5,500

Professional & Business Services..................................................30,700

30,900

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

63,058

5,944

110,893

191,640

Education & Health Services..........................................................11,400

11,900

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

62,437

11,779

131,683

223,990

Leisure & Hospitality......................................................................14,900

14,900

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

63,795

12,638

141,427

235,637

Other Services..................................................................................7,000

7,000

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

22.1%

477.4%

59.7%

48.5%

Government....................................................................................41,200

41,600

158,216

29,329

342,376

582,374

* Based on place of employment.

Race 2000 Pop. by Race ............................276,700 White......................................................72.1%

64.5%

80.1%

74.3%

82.5%

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

30.2%

13.0%

21.0%

15.4%

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, 2002; U.S. Census Bureau (www.census.gov)

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

LABOR FORCE* JAN 03

FEB 03

Madison ......................................................................................145,530

146,380

Limestone ......................................................................................31,600

31,620

Huntsville Region (Counties)

Jackson ........................................................................................25,480

25,820

Marshall..........................................................................................39,480

39,980

Morgan ..........................................................................................56,060

56,200

Franklin, TN....................................................................................19,450

19,750

Giles, TN ........................................................................................15,810

15,730

Lincoln, TN ....................................................................................14,360

14,270

Huntsville Regional Total..........................................................347,770

349,750

* Based on place of residence. Source: Alabama Department of Industrial Relations, Tennessee Department of Employment Security.

R E TAIL SALES Huntsville Region (Counties) - (000’s)

Total Food & Furniture & Retail Sales Restaurants Merchandise Automotive

Madison ..................................................................$3,508,343 Limestone ..................................................................$548,097

$728,182

$699,092

$127,774

$114,387

$911,012 $122,342

Jackson......................................................................$449,635

$119,554

$85,382

$92,105

Marshall....................................................................$1,209,684

$167,039

$195,087

$580,420

Morgan ....................................................................$1,399,138

$271,592

$219,535

$436,676

Franklin, TN ................................................................$303,442

$109,122

$52,945

$58,456

Giles, TN ....................................................................$282,223

$61,550

$28,288

$95,491

Lincoln, TN..................................................................$289,532

$54,733

$53,655

$96,290

Regional Total ........................................................$7,990,094

$1,639,546

$1,448,371

$2,392,792

JAN 03

FEB 03

Madison County................................................................................4.1%

UNEMPLOYMENT RAT E *

4.1%

Huntsville Region..............................................................................5.4%

5.2%

Alabama............................................................................................5.6%

5.5%

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 4th QTR 2002

Source: Sales & Marketing Management, 2002 Survey of Buying Power, Printed with permission.

CONSTRUCTION ACTIVITY # of Projects

JAN 03 Square Feet

FEB 03 $ Value

# of Projects

Square Feet

CompositeGrocery Index Items

Housing

Utilities

Transportation

Health Care

Atlanta, GA

98.1

101.9

94.5

92.1

101.8

106.3

99.

Huntsville, AL

91.8

96.2

79.0

83.0

100.6

89.3

100

Dallas, TX

97.4

98.5

92.7

98.2

95.4

97.0

101

Orlando, FL

98.0

102.5

86.0

100.2

95.7

101.3

105

St. Louis, MO

103.5

115.7

96.3

106.9

102.8

99.4

103

Washington, D.C.

137.6

117.9

188.1

113.0

124.8

116.1

117

$ Value

Total Const. Contracts........................148

426,000

$37,170,000

112

537,000

$49,929,000

Commercial ..........................................15

55,000

$5,859,000

13

63,000

$4,283,000

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

19,000

$345,000

2

25,000

$1,300,000 Source: American Chamber of Commerce Researchers Association. (www.accra.org)

Single Family ........................................98

210,000

$8,142,000

87

186,000

$7,578,000

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

0

0

1

6,000

$252,000

HOME SALES

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

CONSUMER PRICE INDEX Index All Urban Consumers

NOV 02 % Change 02-03

DEC 02 Index % Change 02-03

United States...............................................................181.7

2.6%

183.1

3.0%

South Region...............................................................175.1

2.6%

176.4

3.2%

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

20 June 2003 In i t i a t i ves

Good Servic

JAN 03

FEB 03

Houses on Market.............................................................................. 3,472

3,418

Houses Sold & Closed..........................................................................429

457

Avg. Selling Price.......................................................................... $123,162

$122,387

Avg. Days on Market..............................................................................103

116

Median Sales Price........................................................................$108,000

$102,000

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 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 Huntsville City Schools . . . . . . . . . . . . . . .3,000 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . .2,800 DaimlerChrysler Corporation . . . . . . . . . . .2,800 NASAMarshall Space Flight Center . . . . . .2,754 Sanmina-SCI

. . . . . . . . . . . . . . . . . . . . . .2,700

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.

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

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.

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 Engelhard Corporation . . . . . . . . . . . . . . . . .617 Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . .600 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574 Northrop Grumman . . . . . . . . . . . . . . . . . . . .571 CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .510 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 Sanmina-SCI, one of the world’s largest contract electronics manufacturers. 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.

21 In i t i a t i ves June 2003


22 June 2003 In i t i a t i ves


Huntsville Home to Top Brass The word has spread throughout the U. S. Army – Redstone Arsenal is a choice assignment. So appealing, in fact, that after several years at RSA in Huntsville, many retiring senior Army officers choose to stay on permanently. And Huntsville has an impressive retention record. Army sources list more than twenty-five retired Army or Air Force generals and at least one Navy Admiral living in Madison County. So, what’s so alluring? The generals say they like Huntsville’s size – large enough to provide the amenities of a fulfilling retirement, but small enough to avoid the traffic, congestion, and high prices of some other traditional military retirement spots such as the Washington D.C./Northern Virginia area, or Florida. Asked what they particularly like about Huntsville, the generals cite the symphony, the Broadway Theater League, the natural beauty of North Alabama, the lakes, and the mountains. But above all, they like the easy, natural synergy of a city with close ties to AMCOM, SMDC, and NASA – a city where government acronyms roll off most tongues as naturally as ABCs to a school-aged child. Senior officers retiring in their late 40s to mid-50s represent an attractive pool of executive talent to Huntsville area government contractors dealing with AMCOM, the Space and Missile Defense Command, or the Army Corps of Engineers. Extensive military contacts and experience in managing people by the thousands and budgets by the

millions of dollars provide many of these retired officers with a choice of private sector offers from which to choose. Retired Army generals currently fill top executive positions of such venerable Huntsville firms as Colsa Corporation, Teledyne Brown Engineering, Raytheon, and Lockheed Martin Corporation. But when Major General George Turnmeyer retired in 1977, the rules were different. “At that time,” he recalls, “you couldn’t retire and go directly to work with any corporation with whom your agency had a contract.” The Turnmeyers had planned on retiring to the Washington, D.C. suburbs of Northern Virginia, but the longer they stayed in Huntsville, the more they liked it. “I made a lot of

friends during my five years here in the Army,” says the general, “and I could visit any of them within a ten-mile radius.” So General Turnmeyer accepted a position as head of UAH’s Cooperative Education program, which had just recently been established. Since then, he has taken on a new challenge: Chairman of the Board of Redstone Village – a $55 million retirement community in south Huntsville that will eventually house more than 400. Once these officers retire from AMCOM, they all seem to stay. Lieutenant General James Link now heads Teledyne Brown Engineering and is a key player in numerous community organizations and special projects. Major General Al Sullivan is Senior Vice President of COLSA Corporation. Brigadier General Robert Drolet is Director of Lockheed Martin Space Systems. Adding to the list is Brigadier General Larry Capps, who had been in and out of Huntsville on several tours of duty before arriving for the last time in 1985. After several assignments in the Army Program Executive Office for High Altitude Missile Defense, he became continued on page 25 23 In i t i a t i ves June 2003



Huntsville – Home to Top Brass . . . continued from page 23

Deputy Commander of MICOM. He retired in September of 1991 after 28 years service. Raytheon needed someone to head its Huntsville operations, and Capps accepted the challenge, directing Command, Control, Communications and Intelligence (C4I) operations. “It’s the glue that puts a war together,” as Capps describes it. “And this is where it all happens in the Army missile business.” When the U.S. Space and Rocket Center called in 1999, he answered. First he served on the Space Center Commission, and early the next year he became CEO. Capps has helped steer the space museum through a challenging transition and is widely credited with guiding the USSRC back on course. Clearly at home in the political world, Capps says he enjoys the community’s relationship to the Federal agencies. “I enjoy the commitment the city has to Redstone Arsenal and NASA. The local citizens, the Chamber of Commerce, and civic organizations all take an interest in what is going on. Also, this is a technical center. There’s a lot of smart people in the area.” It’s obvious that Huntsville has a lot to offer the top brass of the military, and equally clear that they have a lot to offer our community.

– Mike Kelley 25 In i t i a t i ves June 2003


They Come to Play Sports are big business. Youth sports are big business and real crowd pleasers in any family-oriented community. Huntsville is no exception. This summer, the region will experience the crème of the crop when it comes to youth sports events. Madison County and the City of Huntsville will be serving as hosts to the Alabama Olympics, otherwise referred to as the 2003 Alabama Sports Festival XXI State Games. Scheduled for late June, it is an official United States Olympic Committee State Games Program and happens to be Alabama’s largest Olympic-style, multi-sport athletic event. 2003 will mark the first time 8,000+ athletes and the additional spectators roll into Huntsville since its last appearance 10 years ago. During the event’s four-day period, there will be more than 20 sports competitions, including archery/bow hunting, diving, swimming, figure skating, cheerleading, Taekwondo, softball, volleyball, wrestling, and track and field. In-line hockey will be another favorite sport returning in 2003. Last year, Huntsville teams swept the gold in

The competitions not only offer athletes the opportunity to take home the gold, but also allow them to participate in the Alabama Sports Festival (ASF) Leadership Conference. The annual event exposes the young athletes to top-quality speakers and professional athletes that promote the ideals of good citizenship and academic excellence. Two athletes playing in the annual games receive Sports Festival scholarships, which are awarded at each Leadership Conference. Last year, scholarships for $750 each were given to an athlete competing in the swimming event and another competing in basketball. “We are proud of the quality program we can offer the amateur athletes of Alabama – especially the youth,” said Ron Creel, Alabama Sports Festival President and CEO. The state organization was We are proud of the positive economic started in 1982 at the request of the impact that our program has on the host city. United States Olympic This nationally-recognized event generates Committee. While the competitions more than $8 million dollars in revenue. and the resulting – Ron Creel, Alabama Sports Festival competitive spirit President and CEO exhibited by athletes are a tremendous part of three of the four in-line hockey competi- the annual games, the organization also tions. The basketball tournament is uses the Olympic-style athletics as a expected to be another of the highlights, platform to teach the importance of with games lasting throughout the academics and good citizenship to young weekend. people throughout Alabama.

26

June 2003 In i t i a t i ves

Creel readily points out that ASF has grown into one of the premier State Games programs in the country due in large part to the volunteer effort that has kept the organization going over the years. Many community volunteers can appreciate the level of work involved not only to produce a successful event, but also to attract it to the area. “The dedication of time and effort by the Huntsville Sports Commission and local elected officials has made this possible,” said Charles Winters, Director of Conventions, International, National, Corporate, Sports Market for the Huntsville/Madison County Convention and Visitors Bureau. “We have first rate parks and recreation facilities in the area to make the continued on page 28


White Tiger

27 In i t i a t i ves June 2003


They Come to Play . . . continued from page 26

event a success,” he said. “Plus we have the dedication of the community volunteers to help.” The payoff for the city is substantial, to say the least. Winters said the exposure for Huntsville is tremendous – especially during this year’s opening ceremonies, which will be broadcast live on television stations across Alabama. The Friday evening ceremonies usually include the festival’s traditional Parade of Athletes and winds up with a fireworks display.

28 June 2003 In i t i a t i ves

But the attention the city garners from hosting the sports festival isn’t the only benefit for Huntsville residents. The expected financial impact on the community isn’t too shabby either. “We are proud of the positive economic impact that our program has on the host city. This nationally-recognized event generates more than $8 million dollars in revenue,” said Creel. Sporting events such as this state festival can also provide tax relief to residents. Winters estimated it equates to almost

$150 in tax relief for every family in the city. With the number of planned sporting events in Huntsville, that adds up. “There is almost always something sports-related going on here,” he said. “It’s our goal to keep dollars from amateur athletics coming into Huntsville.” And events like this certainly do bring in the dollars. An estimated 19% of overnight room stays in area hotels can be attributed to a large number of sporting events each year, according to the Huntsville/Madison County Convention and Visitors Bureau. For instance, the city recently hosted the U.S. Figure Skating 2003 National Synchronized Competition. More than 2,300 skaters from across the nation came into the area for anywhere from four to seven nights, bringing in an estimated $6 million of revenue. Another youth sporting event to be held in Huntsville later this year is the Alabama High School Athletic Association State Soccer Championship. And the AYSO (American Youth Soccer Organization) regularly hosts area and regional tournaments in both Huntsville and Madison – bringing 50 to 100 youth soccer teams to town. “The soccer tournaments not only get the athletes here, but they bring two parents, up to three siblings, and grandparents to watch the games,” said Cathy Farless, AYSO Region 160 Commissioner. Bringing sports to Huntsville not only means a greater quality of life and recreational opportunities for the residents here, it also means a boost to tourism and local revenues. So whatever your game, chances are you will find it being played in Huntsville.


On Location with SpecPro Location, location, location . . . with so many to choose from, why would an engineering services company decide to keep Huntsville as one of its critical locations for achieving growth?

SpecPro’s offices stretch from California to Virginia to Florida, with a total of 13 branches nationwide. Of more than 200 employees, more than 40 are based in Huntsville. But Huntsville is quite a distance from El Paso, Texas – home of company founder Armando De La Paz and still the official corporate headquarters. And Huntsville is even farther from the remote community of Bristol Bay, Alaska – home to the native Alaskan shareholders dependent upon the company’s success for their own economic vitality. So why is the North Alabama region so connected to SpecPro? For one thing, Huntsville holds claim to the company’s national financial and administrative headquarters. Founded in 1989 as Vista Technologies, the engineering and support services firm landed its first major contract with the U.S. Army Space and Missile Command, resulting in the opening of the Huntsville office.

Continued recognition paired with strong revenues led to new considerations for growth that ultimately gave way to the decision allowing Vista Technologies to be purchased in 2001. Changing its name to SpecPro, the company became part of the Bristol Bay Native Corporation, an 8(a) certified Alaska Native Corporation owned by more than 6,500 native Alaskan residents. The new ownership brought increased financial stability for both the company and its employees. It also offered the promise of enhanced partnering opportunities with its sister companies under the Bristol Bay umbrella. Perhaps most important to the mix, the purchase offered the ability for the company to focus on what it did best. SpecPro narrowed its concentration to the three areas in which it had always excelled – environment services, engineering and technical services, and information management services. “We wanted to make sure our goals fit in with the And De La Paz added emphatically, consideration for the things we viewed as most important Whatever success we have had, it to our company,” explained Vice President of Business started in Huntsville, Alabama. Development and Business Operations James MatthewSince then, the firm has been recognized son. “Everything we focus on is for the as one of Alabama’s top 50 minority benefit of our customers, our employees, companies, and named National Small and our shareholders.” Business Contractor of the Year Region This customer and employee-centered VI in 1999 by the Small Business philosophy also shaped another imporAdministration. tant piece of the SpecPro image. “We

want to be good partners for other companies we work with, and we also want to have a positive force in the community,” said Matthewson. “We look for teaming alliances. It’s in our best interest to team with other small companies in Huntsville and let everyone share in the benefits.” That strategy continues to be the plan of choice. Company executives view it as the way to do business, and believe that through building partnerships in the community, taking care of its people, and staying focused on its core business, success will always follow. “We’re anxious to continue to develop additional business in Huntsville – both in the federal government sector as well as the private sector,” De La Paz said. “And we’re anxious to increase our role in this community.” Location is everything. And for SpecPro, location in Huntsville makes good business sense. 29 In i t i a t i ves June 2003


The Chamber of Commerce

No t e w o r t h y

Board of Directors and Executive Committee 2003 Elected Board

Industry on Display A chance to take center stage and showcase its products to the local community is something few executives turn down. What happens when the same opportunity enables the company to expand its reach to thousands of potential customers from across the globe? It becomes a well-thought-out decision to participate in the Chamber’s Industry on Display program. Developed in an effort to help promote local industries, the annual program is an extension of the Economic Development Center at the Chamber of Commerce of Huntsville/Madison County. Participating

A designated leader in its industry, the company had already achieved substantial national recognition. Company executives viewed the Industry on Display program as a fitting opportunity to increase local awareness and generate excitement for its technology and services. Nextek’s capabilities include physical design, assembly, testing, and advanced analytical services for standard to high density advanced technology printed circuit assemblies. It also provides custom packaging in low to medium volumes, with technology and process transfer to high-volume production suppliers. The International Organization for “Let’s face it,” he said. “There are Standardization (ISO) recently awarded Nextek full ISO 9002 numerous important contacts that certification. It’s just the type of news to broadcast through come through the Chamber every out a community such as day – this is all about building Huntsville.

Executive Committee

awareness,” said Harris. companies are given the opportunity to distribute corporate brochures and product information to the general public, as well as to display select products under an enclosed glass case. Prominently positioned in the lobby of the Economic Development Center for 30 days, the complete display is then moved to the Huntsville International Airport for a second month of exposure. In its second year, the program’s success continues to generate support from local manufacturing and services companies. “Although most of our customer base is outside the city and state, this was an opportunity to make the community aware of the type of technology that is here, and the sort of technology we’re bringing into the city,” said Jim Harris, Co-Founder and Vice-President of Programs for Nextek, Inc. 30 June 2003 In i t i a t i ves

Howard Thrailkill, Chair Pete Apple 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 David Jensen William Johnston,Jr. Donna Lamb Paula Lillard 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

Nextek is one of 12 local industries participating in the 2003 Industry on Display program. Other companies include: Palco; Stone Engineering; Dixie Metalcraft; Infitech; Sverdrup; Dunlop; VMIC; Boeing; Wright K; Lindy Industries; and Allied Signal Research.

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 Gen.Jim 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

For more information, contact Judith Short in the Economic Development Center at the Chamber of Commerce of Huntsville/Madison County at 256-535-2080.

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


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 Cre s t wood Medical Center, we are committed to pro viding consistent, exceptional health car e . ” Bradley Jones, CEO

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


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