Pay Dirt New & Expanding Industries Break Economic Development Records
initiatives H unt s vi l l e/ Madi s on C ount y • C ham ber of C om m erce
february 2005
f eatures cover story
Pay Dirt New & Expanding Industries Break Economic Development Records
Page 16 Cover Design by Kristi Sherrard
Huntsville/Madison County, Alabama is located in the middle of the southeastern United States, with more than four million people within a 100-mile radius. The Huntsville community is the primary economic hub of the northern Alabama/ southern Tennessee region. Huntsville/Madison County’s economy is known as one of the strongest 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 it one of the country’s top “hot spots” for growing a business and raising a family.
Joe Moquin’s 20/20 Site
07
Gaining Ground in Smart Growth
23
HREGI Investors
26
2005 Executive Committee
28
2005 Board of Directors
29
d e v e l o p me n t s Economic Indicators
12
Economy At-A-Glance
13
Member Developments
15
Upcoming Events
27
ed i t o r i a l s t a f f Publisher
Brian Hilson
Executive Editor
Holly McClain
Graphic Designer
Kristi Sherrard
Writers
Mike Kelly Holly McClain Loren Traylor
Photography
Holly McClain
Special thanks to Teledyne Brown Engineering, Inc. for the historical photos used in this issue.
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
on the web
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.”
HuntsvilleAlabamaUSA.com
03 Initiatives February 2005
Chamber of Commerce Huntsville • Madison County
Staff 2005 Brian Hilson, President & CEO Holly McClain, Communications Director Laura Kendrick, Executive Assistant to the President
Economic Development Ethan Hadley, Vice President, Economic Development Steve Finnell, Director, Industrial Development & Existing Industry Rick Davis, Director, Cummings Research Park Lillie Ben, Executive Marketing Assistant Amy Locke, Industrial Development Assistant Garrett Sheehan, Economic Development Assistant
Governmental Affairs Mike Ward, Vice President, Governmental Affairs Jay Snyder, BRAC Executive Director Tina Leopold, Program Assistant
Investor Relations Loren Traylor, Vice President, Investor Relations Cheryl Schultz, Director, Workforce Development Jennifer Jeffers, Director, Small Business/Membership Services Debra Dunbar, Director, Launch Program Lindsay Southard, Events Coordinator Donna McCrary, Investor Relations Coordinator Terrie Ledbetter, Membership Representative Beverly Carthen, Membership Representative
Research & Information Services Ken Smith, Director, Research & Information Services Kristi Sherrard, Publications/Graphic Design Specialist Hiroko Sedensky, Research Assistant Judith Short, Information Services Assistant Cheryl Crowe, Resource Desk Coordinator
Finance & Administration Ken Williams, Director, Finance & Administration Desman Holt, Network Administrator Dora Heisey, Financial Assistant Erica Gussie, Financial Assistant Tom Burnette, Building Manager
Associated Organizations & Staff Leadership Huntsville/Madison County Sarah Savage, Executive Director Todd Cannon, Program Manager Mary Stewart, Program Coordinator Allison Harbin, Administrative Coordinator Anna Swain, Leadership Intern
Northeast Alabama Regional Small Business Development Center Kenneth Scislaw, Director, SBDC Carrie Davis, Assistant Director, SBDC Brenda McBride, Procurement Counselor Patsy Nayman, Executive Secretary Felita Flores, Secretary
SCORE Hanson Howard, Executive Director
Chamber of Commerce Huntsville • Madison County 225 Church Street Huntsville, Alabama 35801 (256) 535-2000 www.HuntsvilleAlabamaUSA.com
04 February 2005 Initiatives
The Chamber of Commerce
Board of Directors and Executive Committee 2005 Executive Committee Jim Link, Chair Dave Hargrove, Chair-Elect
A Message from the President
Tommy Beason, Past Chair Peri Widener, Secretary Jan Hess, Treasurer Brad Jones, Vice Chair Economic Development
Dear Chamber of Commerce Investors, Community Leaders and Friends:
Joe Ritch, Vice Chair Governmental Affairs Joel Daves, Vice Chair Investor Relations Bill Watson, Vice Chair Research & Information Services Gerald Toland, Vice Chair Small Business Joe Austin, Vice Chair Workforce Development Chairman Mike Gillespie, Chair-Appointed Bill Gurley, Chair-Appointed
During this Bicentennial Celebration year for the City of Huntsville, we will have many opportunities to reflect on our community’s past, including our growth and prosperity, particularly during the last 50 years. Many Huntsvillians can recall the city’s Sesquicentennial Celebration in 1955. Little did we know then that a city of more than 20,000 was on the way to becoming one of our country’s leading technology centers. By 1955 Huntsville was making its mark in the aerospace and defense industries, even though textiles and agriculture – particularly cotton farming – were still the dominant local industries. What were then cotton fields is now Cummings Research Park, America’s second-largest science and technology park.
Mayor Loretta Spencer, Chair-Appointed Karen Stanley, Chair-Appointed Brian Hilson, President/CEO
Elected Board Joe Alexander, Camber Corporation Pete Apple, CSC Joe Austin, Huntsville Hospital Scott Averbuch, Averbuch Realty Co., Inc. Clayton Bass, Huntsville Museum of Art Frank Caprio, Lanier Ford Shaver & Payne
An article in this issue of Initiatives traces the origin of CRP, including the vision of leaders like Joe Moquin, who recognized almost 50 years ago what a research park would mean to Huntsville’s future. The article’s lead perhaps says it best: “At the mid-century mark the elements were coming together in this North Alabama community that would light dreams, fire imaginations and propel a new kind of economic engine. A singular combination of people and possibilities flamed in the ’50s, leaving not ashes but new technologies, new opportunities and a new economy.” Since the 1980s, the City of Huntsville has continued to recognize the benefits and opportunities associated with a world-class research park by investing in additional land and infrastructure for future growth. The University of Alabama in Huntsville Foundation has also played a major role in making property available for development.
John Cooper, Avocent Corporation Dick Fountain, Fountain, Parker, Harbarger & Associates Dr. Frank Franz, UAH Dr. John Gibson, Alabama A&M University
With a strong focus on technology-based companies and jobs, we reported at the Chamber’s January 11 annual meeting that 5,461 new jobs were announced in 2004 by employers in Huntsville/Madison County’s primary business sectors. After many years of outstanding growth, the 2004 total is a record year for announced jobs in our community.
Dr. Greg Gum, Radiology Associates Bill Gurley, SAIC Tharon Honeycutt, WHNT-TV Dr. Eric Janssen, SportsMed
Throughout 2005 we will reflect on Huntsville’s incredible economic achievements, however, not resting on our laurels, we will continue to build upon what our early leaders provided – a vision for a great community – one with a proud history, and an even more promising future!
Jerre Penney, Bill Penney Toyota Joe Ritch, Sirote & Permutt, P.C. Scott Seeley, Regions Bank
Brian Hilson
Remigius Shatas, RNR Ventures
President & CEO Chamber of Commerce of Huntsville/Madison County
Sandra Steele, Enfinger Steele Development Paula Steigerwald, Huntsville Botanical Garden Herman Stubbs, Colonial Bank Gerald Toland, Redstone Federal Credit Union Irma Tuder, Analytical Services, Inc. Gail Wall, Beason & Nalley, Inc. Bill Watson, SouthTrust Bank Peri Widener, The Boeing Company Keith Wilson, Wyle Laboratories Tom Young, Intergraph Corporation
05 Initiatives February 2005
In media and memories the standard climate of the 1950s is typically temperate and idealistic; in reality, the decade was every bit as explosive as the eyebrow-raising ’60s. It’s true, Huntsville enjoyed a social era more balmy and idealistic than many; however, on the economic front, a veritable heat wave was building steam. At the mid-century mark the elements were coming together in this North Alabama community that would light dreams, fire imaginations and propel a new kind of economic engine. A singular combination of people and possibilities flamed in the ’50s, leaving not ashes, but new technologies, new opportunities and a new economy. This feature is the first in a Huntsville Bicentennial series that gives voice to those who helped “turn up the heat,” making Huntsville/Madison County one of the best places in the nation to work and live.
Huntsville’s Research Park Joe Moquin’s 20/20 Site hen presenting the Medaris Award* to me, General Medaris paid me one of the greatest compliments I have ever had,” reminisced Joe Moquin. “He described me as being one who ‘saw the future.’” Indeed, from engineering for defense and space programs to corporate growth, city planning and the foundation for one of the nation’s largest concentrations of high technology industries, Moquin’s actions tell of a man who sees the big picture. It was Medaris and the U.S. Army Ballistic Missile Agency (ABMA) that convinced Moquin to leave the Ordnance Management Engineering Training Program in the Chicago area and move to Huntsville in 1956. “After WWII, the Army initiated a broad missile system activity,” Moquin said in a recent interview. “One significant area was air defense. Precision rocket interception was managed under the control of Redstone Arsenal.” General John B. Medaris activated the U.S. Army Ballistic Missile Agency (ABMA) at Redstone Arsenal on February 1, 1956, and Joe Moquin became the chief civilian in the control office. With the von Braun team already ensconced at Redstone, the Army was given the responsibility to develop a 1,500 mile missile. According to Moquin, as well as Army records, the initiative was very successful. “To develop something of the size and capability of a 1,500 mile nuclear warhead in less than three years is a precedent not since approached,” he noted. Moquin further added a defense department directive in 1958 to turn the technology over to the Air Force, was a bit of a shock. “The presentation to the Air Force was to be made with all military people. I was a civilian but Medaris wanted
*The Tennessee Valley Chapter’s Medaris Award was created in honor of Major General John Bruce Medaris (USA Retired), Former Commander, U.S. Army Ordnance Missile Command. MG Medaris has been cited for the brilliant leadership and direction he provided to his command and the significant contributions he made to the field of missile system technology. Joe Moquin received the award in 1984. Pictured are Joe Moquin, left, and General Medaris.
me for the presentation.” Though skeptical at first, Moquin agreed and Medaris called him to active duty for a single day. Wearing his captain’s bars and uniform, Moquin made the presentation. Milton Cummings, head of Brown Engineering and another of Huntsville’s visionaries, recognized Moquin’s technical strengths, foresight and management ability: He asked General Medaris for permission to talk with Joe about coming onboard at Brown. Not interested at first, Moquin accepted the second invitation issued by
Cummings in 1959. “The responsibility for operating the company would be mine; the financial, public relations and investors would be Milton,” recounted Moquin. At the time, Brown Engineering was in the Huntsville Industrial Center, or HIC building. “It was a renovated cotton mill. No windows. A very unattractive building and I was quite upset about the potential of the future of the company. I immediately began campaigning for a different facility. I couldn’t see how we could attract science and engineering personcontinued on page 8 07 Initiatives February 2005
continued from page 7
nel, a fundamental part of our business.” Moquin began assembling the basis for what would become a research park. Proximity to Redstone, Marshall Space Flight Center, major roads and what was then a branch of the University of Alabama (now the University of Alabama in Huntsville) was “important to the people I’ll be hiring for our future,” he would explain to Cummings and others. Moquin’s savvy would eventually win out, and his early vision was paramount in locating what would become the second largest research park in the U.S. In 1961, Joe Moquin’s plans for a research park went into high gear. “A situation
people into it and free up the HIC building. “Well, I got quite a reaction from the board of directors who said you can’t move professional people, and you can’t move overhead people into a manufacturing building.” But Moquin was ready – for two years he’d been gathering ammunition for this fight. “I had already identified the proper place for this on what was then known as Slaughter Road [now renamed Sparkman Drive]. I was quite familiar with the fact that most of that land was very open and I looked at two very important factors. One was its accessibility to Marshall Space Flight Center and to the Missile Command. The other was the fact that it was close to the one building the
…Fortunately for Huntsville, Joe Moquin saw this as more than a time to find a larger building to house his company. He saw this as an opportunity to place Brown Engineering in the heart of a carefully zoned research park carved out of the cotton fields west of the city… ~ former U.S. Senator Howell Heflin addressing the Senate, September 6, 1989, Washington, D.C.
occurred that was quite important,” he remarked animatedly. That situation resulted from President Kennedy’s Special Message to Congress on Urgent National Needs. Delivered at the height of the Cold War with the Soviet Union, Kennedy challenged the nation to land man on the moon before the end of the decade. Driving that challenge was the need to demonstrate America’s technological superiority to the world. Considering the Soviet Union had achieved launch of the very first satellite, as well as had launched the first man to space, the need was urgent, indeed. Soon afterward, Moquin received a phone call from an individual at NASA Marshall Space Flight Center. “He asked if we could rent him any space; I had gone through a lot of background about the HIC center and then I told him, ‘I know where you can rent space, not immediately, but very shortly.’ And we arrived at a verbal agreement. I went to Milton and the board and I told them, ‘Now, as far as I’m concerned, if you don’t support me on this, you’re probably not going to have me, because I want out of this [HIC] location.’ I said we should do the right thing, and it would have to be done rapidly in order to make some kind of formal agreement with Marshall.” For Moquin, the right thing was to build a pre-fabricated manufacturing facility in short order, then move Brown Engineering’s professional and overhead 08 February 2005 Initiatives
University of Alabama, Huntsville had. A company in our kind of advanced technology work that was close to a university would be an important factor.” Finally, the board agreed. Moquin asked Cummings about buying 360 acres. The acreage was more than Brown Engineering needed, but he had plans that would enable infrastructure and promote partnerships. Subsequent agreements with the
City of Huntsville meant relinquishing land but gaining roads and drainage. “We established that after we took those acreages out, the cost of that land is what we offered it for; eventually two companies bought it at cost.” Those two companies – IBM and Northrop – said Moquin, established an important precedent. Two people were key to efforts in establishing the larger research park, said Moquin: Charles Cummings, a member of the city council and a nephew to Milton Cummings, and Dean Matthews, the head of Huntsville city planning. He talked to them about the relatively large area that could be properly zoned. “On one side of the highway [then Rideout Road, now Research Park Boulevard] it had limited access; there was about 1,000 acres. On the other side, there was about another 2,000 acres to the city limits. I told Charles I supported at least 1,000 acres be developed into a research park and that I’d like the council and city planner to initiate the proper steps.” Moquin even supplied what he thought should be some basic conditions. “A company that went out there should primarily be a high technology company and not a major manufacturer. Manufacturing should be support to the major engineering, design and analysis capability, but it should not be primarily or have a significant amount of manufacturing,” he provided. According to Moquin, one of the first things Matthews did was go to Research Triangle Park in North Carolina. “When he came back, he recommended we go from a thousand to three thousand acres. It was amazing just how quickly and responsive the city council was to zone that entire area as a research park.” Giving further credit, Moquin observed that Charlie Younger in the city attorney’s office did a massive amount of work toward the zoning, which was completed in 1962.
the late ’50s
As for Brown Engineering, the first resident in the newly zoned research park, “It assured us our neighbors would be in the same type of work. It was going to be near the university, it would be a big factor in recruiting and hiring the kind of people we needed,” nodded Moquin. He effusively praised Wernher von Braun and his support. “Von Braun interacted in all of it – he was outstanding. He personally made a presentation in Montgomery and recommended the research park portion of the university,” Moquin remarked. “Let’s be honest with ourselves about it: it’s not water, or real estate, or labor, or power, or cheap taxes that bring industry to a state or city. It’s brainpower,” said von Braun to the Alabama Legislature in 1961. “In Huntsville, we are trying to create a vigorous and varied educational and research climate. The seed is sown with the University Center and the infant Research Institute. But the seed is starving. It needs something green. Money,” he stated. The Legislature then passed a $3 million general obligation bond issue for the research institute which was overwhelmingly approved by Alabama voters. Many issues arose and Moquin worked to ensure Brown Engineering and the research park effort remained ahead of the curve. Regarding infrastructure, for example, Moquin championed the placement of underground utilities lines throughout the park, a step the city agreed to undertake “ahead of its time” he added. In 1973, with Joe Moquin’s guidance and assistance, Huntsville Research Park was renamed in memory of Brown Engineering CEO Milton K. Cummings. Notably, Teledyne acquired Brown Engineering in 1967. Retiring after 30 years of executive leadership at Teledyne Brown, Moquin’s keen vision has continued to serve the community. Among roles, he has been interim president of the University of Alabama in Huntsville, as well as the interim chief executive at the U.S. Space and Rocket Center and U.S. Space Camp. He has received numerous awards and served on dozens of boards of directors, public and private (including the City of Huntsville Research Park Board), and has been honored with tributes in both the Alabama Legislature and U.S. Congress. • Holly McClain
the mid ’60s
2003
Cummings Research Park Today • Established in 1962 as Huntsville Research Park; Renamed in 1973 in honor of Mr. Milton K. Cummings; Major Expansion in 1982: CRP West; Land Purchased by City of Huntsville • Rankings: 2nd Largest Research Park in the USA; 4th Largest Science Park in the World; 1997 Most Outstanding Science Park in the World • Companies: 225 Companies
• • • •
Workforce: 23,000 Employees Buildings: 175 Buildings Capacity: 9,000,000 Square Feet Current tenants include: FORTUNE 500 Companies, International Technology-Based Companies; Award-Winning Small Businesses; Local Entrepreneurial Startups; BizTech; Government and Military Research Facilities 09 Initiatives February 2005
11 Initiatives February 2005
Economic Indicators POPULA TION
EMPLOYMEN T*
Madison County
City of Huntsville
City of Madison
Huntsville Metro Area
NOV 2004
NOV 2003
1980 Census
196,966
145,604
6,081
242,971
Total Non-ag Employment .......................................................... 191,500
190,100
1990 Census
238,912
161,842
16,813
293,047
Mining & Construction .................................................................... 7,500
7,400
2000 Census
276,700
158,216
29,329
342,376
Manufacturing .............................................................................. 30,100
30,200
2003 Estimate
289,662
164,237
34,080
357,907
Trade, Transportation & Utilities .................................................... 31,500
30,600
4.7%
3.8%
16.2%
4.5%
Information ...................................................................................... 2,100
2,200
Financial Activity ............................................................................ 6,000
5,800
% Growth 2000-2003
Households
Huntsville Metro Area**
Professional & Business Services ................................................ 37,700
36,800
1980 Census
67,082
51,113
2,040
82,440
Education & Health Services ........................................................ 11,800
12,500
1990 Census
91,208
63,838
6,681
110,893
Leisure & Hospitality...................................................................... 15,700
15,700
2000 Census
109,955
66,742
11,143
134,643
Other Services ................................................................................ 7,700
7,400
Government .................................................................................. 41,400
41,500
Race 2003 Population Estimate
* Based on place of employment. **Includes Madison & Limestone counties Source: Alabama Department of Industrial Relations (Place of work figures)
289,662
164,237
34,080
357,907
White
72.1%
64.5%
80.1%
74.3%
Black
22.8%
30.2%
13.0%
21.0%
NOV 2004
NOV 2003
Asian & Pacific Islander
2.0%
2.3%
3.6%
1.7%
Madison ......................................................................................154,350
154,940
Other Races
3.1%
3.0%
3.3%
3.0%
Limestone...................................................................................... 33,210
33,340
Jackson ........................................................................................ 25,430
25,750
Marshall ........................................................................................ 38,320
39,310
Income & Age
LABOR FORCE *
Huntsville Region (Counties)
Average Household Income
$57,220
$55,856
$72,432
$55,343
Morgan .......................................................................................... 54,820
56,540
Per Capita Income
$23,091
$24,015
$27,821
$22,073
Franklin, TN .................................................................................. 20,940
21,010
35.7
36.7
34.5
35.7
Giles, TN........................................................................................ 15,740
15,440
Source: U.S. Census Bureau (www.census.gov)
Lincoln, TN .................................................................................... 15,660
15,790
Median Age
RETAIL SALES
Huntsville Region - (000’s) 2003 Annual Retail Sales Madison Co.
Huntsville Regional Total ........................................................ 358,470
362,120
* Based on place of residence. Source: Alabama Department of Industrial Relations, Tennessee Department of Employment Security
Total Retail Sales
Food & Restaurants
UNEMPLOYMENT RATE*
Furniture & Merchandise
NOV 2004
NOV 2003
Automotive
Huntsville Metropolitan Area............................................................ 3.9%
4.7%
$4,309,588
$794,380
$1,078,483
$1,036,638
Madison County .............................................................................. 3.8%
4.6%
$622,283
$135,423
$134,054
$138,998
Huntsville Region ............................................................................ 4.6%
6.1%
Limestone Co. Jackson Co.
$487,420
$120,892
$104,958
$90,913
Alabama .......................................................................................... 5.2%
6.0%
Marshall Co.
$1,280,602
$174,487
$233,954
$602,366
United States .................................................................................. 5.4%
5.6%
Morgan Co.
$1,535,514
$304,283
$270,972
$446,721
$258,048
$60,722
$39,648
$33,055
Franklin Co. (TN)
$334,460
$118,465
$62,472
$55,572
Giles Co. (TN)
$292,951
$57,536
$33,640
$84,398
Lincoln Co. (TN)
$318,729
$56,001
$64,473
$103,356
$9,439,595
$1,822,189
$2,022,654
$2,592,017
Lawrence Co.
Regional Total
Source: Sales & Marketing Management, 2004 Survey of Buying Power – Printed with permission.
CONSTRUCTION ACTIVITY
JAN-OCT 2004
# of Projects
Square Feet
Total Const. Contracts .................. 1,983
6,995,000
JAN-OCT 2003
$ Value
# of Projects
Square Feet
$ Value
$530,442,000
1,434
4,805,000
$374,795,000
Commercial ...................................... 110
1,398,000
$110,277,000
104
896,000
$59,347,000
Manufacturing ...................................... 7
207,000
$12,872,000
10
67,000
$4,193,000
Single Family .................................. 1,669
3,568,000
$152,391,000
1,101
2,354,000
$90,316,000
Multi-Family ........................................ 17
647,000
$46,124,000
55
582,000
$28,614,000
Source: F.W. Dodge – Printed with permission.
CONSUMER PRICE INDEX
NOV 2004 Index
All Urban Consumers
% Change 03-04
NOV 2003 Index
% Change 02-03
United States...............................................................191.0
3.5%
184.5
1.8%
South Region...............................................................183.7
3.5%
177.5
1.5%
Source: Bureau of Labor Statistics, Atlanta, GA., December 1982=100 base. (http://stats.bls.gov/cpihome.htm)
12 February 2005 Initiatives
* Based on place of residence. Source: Alabama Department of Industrial Relations (www.dir.state.al.us) Tennessee Department of Employment Security (www.state.tn.us/labor-wfd)
COST OF LIVING INDEX 3rd QTR 2004
Composite Grocery Index Items Housing
Utilities
Transportation
Health Care
Goods & Services
Atlanta, GA
98.2
95.9
96.7
88.3
104.1
104.9
100.5
Dallas, TX
93.9
97.1
80.0
98.6
106.4
97.4
99.7
Huntsville, AL
94.7
101.6
80.8
93.5
99.7
91.0
103.5
Orlando, FL
97.7
95.3
87.8
98.7
95.9
94.0
107.6
St. Louis, MO
100.7
105.1
95.6
102.9
102.6
117.1
100.5
Washington, D.C.
140.0
119.6
196.4
109.6
126.7
129.3
111.7
Source: American Chamber of Commerce Researchers Association. (www.accra.org)
HOME SALES
NOV 2004
NOV 2003
Houses on Market ............................................................................ 4,085
3,714
Houses Sold ........................................................................................ 717
693
Houses Sold Year-to-Date ................................................................ 7,930
6,669
Avg. Selling Price ........................................................................ $140,990
$133,750
Avg. Days on Market .......................................................................... 120
150
Median Sales Price .................................................................... $125,000
$117,900
Source: Huntsville Area Association of REALTORS (Realtor-listed properties only)
Economy At-A-Glance Huntsville/Madison County, Alabama, is located in the middle of the southeastern United States with more than four million people within a 100-mile radius. The Huntsville community is the primary economic hub of the north Alabama/southern Tennessee region. The counties adjoining Madison County combine to form an eightcounty regional market with a population totaling 700,000 people. Huntsville/Madison County 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 The Boeing Company . . . . . . . . . . . . . . . . .3,000
NASA/Marshall Space Flight Center . . . . . .2,754 City of Huntsville . . . . . . . . . . . . . . . . . . . . .2,186 Sanmina-SCI
. . . . . . . . . . . . . . . . . . . . . . .2,000
Madison County Schools . . . . . . . . . . . . . . .1,936 ADTRAN, Inc. . . . . . . . . . . . . . . . . . . . . . . .1,700
Intergraph Corporation . . . . . . . . . . . . . . . . .1,700 Siemens VDO Automotive Corp. . . . . . . . . .1,700 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,600
Walmart/Sam’s Stores . . . . . . . . . . . . . . . . .1,581
Teledyne Brown Engineering . . . . . . . . . . . .1,338 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,180
University of Alabama in Huntsville . . . . . . .1,112 West Corporation . . . . . . . . . . . . . . . . . . . . .1,100
Madison County . . . . . . . . . . . . . . . . . . . . . .1,073
Alabama A&M University . . . . . . . . . . . . . . . . 890 Lockheed Martin . . . . . . . . . . . . . . . . . . . . . . .844
Northrop Grumman . . . . . . . . . . . . . . . . . . . . .807
LG Electronics, Inc. . . . . . . . . . . . . . . . . . . . . 800 Toyota Motor Manufacturing Alabama . . . . . .800
Jacobs Sverdrup Technology . . . . . . . . . . . . 792
Benchmark Electronics, Inc. . . . . . . . . . . . . . 750 Target Distribution Center . . . . . . . . . . . . . . . 750
COLSA Corporation . . . . . . . . . . . . . . . . . . . .700
Computer Sciences Corporation . . . . . . . . . .700 Crestwood Medical Center . . . . . . . . . . . . . . 668
CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650 Madison City Schools . . . . . . . . . . . . . . . . . . 644
Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 600
Engelhard Corporation . . . . . . . . . . . . . . . . . 600 Source: Chamber of Commerce
Aerospace Huntsville/Madison County is home to the NASA Marshall Space Flight Center. Nearly every major U.S. aerospace corporation is represented with 90+ companies employing more than 11,000 people in the local aerospace industry. Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. A majority of the Army’s weapons procurement budget is managed by Huntsville-based operations. Likewise, more than half of the Army’s foreign weapons sales are handled through Redstone Arsenal. Military and support contract employment tops 32,000. Electronics More than 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 second largest research and technology park, containing 225 companies employing 23,000 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.
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Member Developments
Average to Art, Inc. specializes in faux finishing, murals, and painted furniture. Turn your average walls and furniture into art by calling (256) 658-0657. Please visit Average to Art’s faux finish children’s mural display at The Home Solutions Mall, 4710 University Drive, Suite P (the corner of Sparkman and University). Thank you for your support!
Best Western Rocket City Inn & Suites, located at 6200 Torok Circle, is the newest and best hospitality in Huntsville. For reservations call 1-800-WESTERN or go to our web site at www.bestwestern.com. Our local numbers are (256) 837-7412 and fax (256) 830-4978.
Comfort Keepers provides home health services for people including personal care, companionship and homemaking services. Call (256) 883-2103 or visit www.comfortkeepers.com.
Pay Dirt New & Expanding Industries Break Economic Development Records
H
untsville/Madison County’s emphasis on stimulating local economic development hit pay dirt last year when the community achieved record breaking growth. New firms have moved in, others have announced expansions and exciting hospitality and entertainment projects have broken ground. Forty-one Huntsville-area firms from primary categories reported well over 5,400 new jobs created in 2004. “That’s the largest annual total documented for Madison County,” said Brian Hilson, president and chief executive officer of the Huntsville/Madison County Chamber of Commerce. Jobs figures reflect projects from business sectors such as aerospace, defense and manufacturing. The chamber reconciles data from their new and expanding projects, local company surveys by category, and from statewide surveys conducted by the Alabama Development Office. The technical non-manufacturing sector of teleservices, engineering, research and development related work accounted for over 2,700 positions. That translated into big growth at some of Huntsville’s premier firms. Aerospace giants Lockheed Martin and Northrop Grumman added a combined 660 new jobs, and BAE Systems, known to many as Mevatec prior to their 2003 merger with British Aerospace, added 120. Boeing added approximately 300, largely to support stepped-up orders for the Patriot missile. Particularly satisfying was Dynetics Corporation’s mid-December groundbreaking for their new $21,000,000 corporate headquarters. The 160,000 square foot complex will consolidate Dynetics’ more than 800 Huntsville employees under one roof, and, according to CEO Marc Bendickson, permit much greater efficiencies in research and development functions. Several new contracts have fueled growth and Bendickson projects adding some 150 employees annually over the short term to meet customers’ demands for technology-based products and services. The company added 420 jobs in 2004. Increased demand for teleservices – telemarketing, customer service centers and the like – added to local job growth through the creation of more than 1,200 call center jobs. With little fanfare, Direct TV moved a nationwide, companyowned customer service center to Huntsville last spring that created nearly 1,000 jobs. Much of this work had been done by another major teleservice firm, West Corporation in Research Park. However, due to the growing demand for teleservices, West found reason to expand its workforce, adding nearly 300 new jobs. Not to be outdone, Huntsville’s growing manufacturing base cultivated bumper employment increases in 2004. Cinram, one of the world’s largest manufacturers of pre-recorded DVDs, VHS video cassettes, audio CDs, CDROMs, and audio cassettes, added 950 jobs. Growing demand for remanufactured components boosted employment at two local firms, LG Electronics and Palco Electronics, by more than 500 jobs. At Palco, a Huntsville refurbisher of cell phones, employment exploded from 424 jobs at the beginning of 2004 to more than 700 by year’s end, according to Human Resources Director Kelly Phillips. “It happened because our biggest customer, Cingular, stepped up the number of cell phones they’re sending us.” Siemens, the German electrical and electronics giant, acquired Chrysler’s local electronics facility in what is seen as a move by the firm to expand its U.S. presence. Beginning in the early 1990s, automakers from Detroit and around the world raced to set up operations in the South. The early 2001 announcement by Toyota of its intention to locate a V-8 engine plant in Huntsville’s North Huntsville Industrial Park included an initial 350 jobs which will increase to approxi-
Hotelier John Q. Hammons joined Alabama Governor Bob Riley, City of Huntsville Mayor Loretta Spencer and other state and local officials to break ground on a $40 million Embassy Suites convention hotel project in September. The 300-room Embassy Suites is expected to be complete late spring 2006. Pictured left to right - Wayne Bonner, Von Braun Center board of directors; Huntsville City Council members Sandra Moon, Bill Kling, Glenn Watson and Mark Russell; Lee Sentell, director of the Alabama Bureau of Tourism and Travel; John Q. Hammons, Embassy Suites; Mayor Loretta Spencer; and Governor Bob Riley.
mately 800 with the recently-announced addition of V-6 engine production and the expansion of V-8 manufacturing. Also making major auto manufacturing news was the decision by Canada-based Mitchell Plastics to locate a manufacturing facility in Huntsville. The tier-2 producer of injection-molded plastic interior auto components for Honda and Toyota wanted a U.S. presence close to their tier-1 customer, RTI in Rainsville. Last year, the firm purchased the former Bruderer complex in Chase Industrial Park and created 90 new manufacturing and support jobs. Vice President of Human Resources Janice Capshaw expects employment to rise to more than 200 “within one or two years.” A vibrant economy spreads its wealth across many sectors and industries. Brown Precision, a local machine shop specializing in the fabrication of exacting parts for the aerospace, industrial, and medical industries, added 30 workers in 2004. Those employees, says Co-CEO Greg Brown, were part of a company expansion that included a $5.2 million investment in new plant and equipment. The effort to transform Huntsville into a tourist and convention destination saw further progress with last year’s announcement by the Westin Hotel group of plans to build a four-star hotel in Cummings Research Park (CRP). The $40 million Westin Huntsville will feature 200 rooms and an 8,000 square foot convention center, and will anchor the $210 million Bridge Street mixed-use development planned for CRP. It becomes the second major new hotel, with the new Embassy Suites already under construction adjacent to the Von Braun continued on page 18 17 Initiatives February 2005
continued from page 17
Center, to be announced recently. The two hotels will create perhaps 300 new jobs, and represent an investment of more than $90 million. According to local tourism officials, they will put Huntsville on the map for larger convention and meeting business than the city has been able to attract. Convention-goers like entertainment, and plans are underway to bring to Huntsville more restaurants, clubs and entertainment to complement the new hotels. Regal Cinemas announced recently it will build a 16-screen theater complex as part of Bridge Street. It is expected that Huntsville will see a number of new restaurants as the hotel and entertainment projects become reality. Downtown Huntsville had a boost with the start of construction on the Big Spring Summit project. The high-rise office project, located on part of Big Spring Park, will also feature 40 or more luxury condominiums, as well as retail shops and boutiques. It is expected to become a major draw for further projects in the downtown area, and will further enhance Huntsville’s chances of attracting major convention and visitor business. • Mike Kelly
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Source: Chamber of Commerce of Huntsville/Madison County, 2004
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HREGI Gaining Ground in Smart Growth
O
ver a year ago, the Huntsville/ Madison County Chamber of Commerce officially announced the Huntsville Regional Economic Growth Initiative (HREGI). HREGI is the chamber’s road map to making Huntsville/Madison County a better place to live through competitive advantages in economic development. Already, significant achievements have resulted from activities funded through the support and investment of over 130 public and private sector organizations. While current annualized campaign funding – nearing $1.5 million – is unsurpassed by previous fund raising efforts, business support activities and competition with other cities for economic development have likewise never been greater. “As we look ahead to 2005, we are encouraged by the interest from prospective new and expanding businesses. The chamber’s strategy for aggressively pursuing local economic development is contained in HREGI, and we’re grateful for the vision and commitment of organizations that have invested in this initiative,” remarked Joel Daves, vice chair for investor relations at the chamber. Daves noted the initiative is still short of its funding goal, but is confident the community's teamwork approach to economic development “will come through to benefit us all.” “We recently became investors because we saw tangible results from the Huntsville Regional Economic Growth Initiative and we recognized that there is a strong correlation between our business growth and economic development investment," said Sharon Morgan, chief executive officer of Morgan Research Corporation. Daves also emphasized the importance of small business investment. Take Stock in
Huntsville/Madison County is a HREGI-affiliated program directed at increasing small business involvement in economic development planning and community funding. “The chamber recognizes that small businesses are vitally important to this community and its ability to be competitive against other regions in a global economy. Our community will not prosper without all of us working together. We’re gaining ground but we’re not resting,” noted Daves. HREGI’s focus on a sustainable community aims to strengthen intellectual infrastructure, encourage expanding and new enterprises and communicate a high quality of life to those considering relocation to Huntsville/Madison County. “During 2005, with 50 percent of our economy dependent upon Redstone Arsenal, the chamber is dedicated to defending Redstone against closure while also promoting increased activities under the current Base Realignment and Closure (BRAC) round,” Daves said. HREGI stresses eight important strategies: Growth & Preservation of the Huntsville Region's Existing Economic Base and Business Climate; Recruitment of Targeted Businesses; Defense & Space Industry Relation and Growth; Community Image Enhancement; Development of Capacity for New & Sustained Economic Growth; Engaging the Resources of our Universities & Colleges; Workforce Development; and Accountability. continued on page 24 23 Initiatives February 2005
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HREGI Strategies Investment Strategy #1
Growth & Preservation of the Huntsville Region’s Existing Economic Base & Business Climate The chamber’s attention to the needs and growth objectives of local companies is a high priority. The majority of new job growth is expected to come from local business expansions. Addressing local companies’ workforce needs and support of critical project development and incentive requirements grows and preserves an already strong Huntsville regional economy.
Investment Strategy #2
Recruitment of Targeted Businesses A traditional strategy in our economic development success and a source of community pride for Huntsville has been the successful recruitment of companies offering attractive job opportunities for local residents. New companies serve to complement Huntsville’s total economic growth strategy which includes a foundation of retaining and growing existing companies. Our business attraction efforts are focused on the following key industry targets: Automotive and Aerospace Manufacturing and Support; Diversified Manufacturing; Space and Defense; Electronics and Information Technology; Headquarters and Administrative Operations.
Investment Strategy #3
Defense & Space Industry Retention and Growth The chamber’s efforts in coordinating many of our community’s most strategic and visible efforts to support and grow defense and space activities have provided for the creation and preservation of thousands of local jobs, significant direct investment, and contractor opportunities for Huntsville. The program of work in place at the Redstone Arsenal and the Marshall Space Flight Center represents the most dominant economic sector for Huntsville, which in turn creates a ripple effect of economic growth in a broad geographic region around our city. This initiative focuses on protecting, retaining, and expanding this most valuable community growth engine. 24 February 2005 Initiatives
Investment Strategy #4
Community Image Enhancement Public perception of a community, or worse, a lack of any perception at all, is often an indicator of the viability of a community to attract companies and workers to live, work, and do business. We will conduct a strong image enhancement campaign for Huntsville to generate the awareness and enthusiasm required for fast-paced economic growth that will position our community as a desired destination and a true competitor with leading peer cities.
Investment Strategy #5
Development of Capacity for New & Sustained Growth In addition to year-by-year marketing of the Huntsville/Madison County area, the chamber must influence the long-term development and preparation of the community so that it is in better position to attract long-term growth. The development of growth capacity necessary for increased business development is an important focus of any comprehensive economic development effort.
Investment Strategy #6
Engage the Resources of our Universities & Colleges Support the advancement of R&D activities at local institutions of higher education, and improve the abilities of local universities and colleges to inspire and support commercial start-up businesses and patents.
Investment Strategy #7
Workforce Development Help ensure the community has a future workforce capable of meeting the needs of new and expanding employers. This includes improvements in retaining more young professionals in the workforce by addressing the reasons why larger high-tech communities have a higher retention rate of young workers than the Huntsville area.
Investment Strategy #8
Accountability The chamber will meet unprecedented accountability measures and will more visibly demonstrate its value. • For more information on HREGI, call Loren Traylor at (256) 535-2028 or send an email to LTraylor@hsvchamber.org 25 Initiatives February 2005
HREGI Investors Chairman’s Council ($50,000+ invested: Private Sector)
Toyota Motor Manufacturing Alabama • Huntsville Hospital • Regions Bank Development Partners ($50,000+ invested: Public Sector)
City of Huntsville • Huntsville Utilities • Huntsville/Madison Co. Airport Authority • Madison Co. Commission • Tennessee Valley Authority President’s Circle ($25,000-$49,999 invested)
ADTRAN • AmSouth Bank • BellSouth • The Boeing Company • Colonial Bank • Compass Bank • Crestwood Medical Center • The Huntsville Times • Redstone Federal Credit Union • SouthTrust Bank Chamber Trustees ($10,000-$24,999 invested)
Avocent Corporation • Beason & Nalley • Bill Penney Toyota • Blue Cross & Blue
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Shield of Alabama • Camber Corp. • CINRAM • COLSA Corp. • Continental Airlines • Huntsville Area Association of Realtors • Huntsville/Madison County Builders Association • Intergraph Corp. • Lamar Outdoor Advertising • LG Electronics Alabama • Northrop Grumman • SAIC • Sparta • SportsMed • Teledyne Brown Engineering Progress Partners ($5,000-$9,999 invested)
AEgis Technologies • Analytical Services • BAE Systems • Balch & Bingham • Coldwell Banker/ McLain Real Estate • Colonial Properties • Consolidated Construction • Dynetics • Enfinger Steele Development • Engelhard Corp. • ERC • First American Bank • First Commercial Bank • HiWAAY Internet Services • International Diesel • Intuitive Research & Technology Corp. • Keystone Foods Corp. • Lanier Ford Shaver & Payne • MORGAN Research Corp. • NAI Chase Commercial Realty • The Orthopaedic Center • Parker Hannifin
Corp. • Radiology of Huntsville • Samples Properties • Sirote & Permutt • J. Smith Lanier & Company • SOUTHBank • The Surgery Center of Huntsville • Turner Universal Construction • WAFF-TV • Wilmer & Lee • Anonymous Progress Investors ($2,500-$4,999 invested)
Averbuch Realty Co. • Baron Services • Bradley Arant Rose & White • Chapman Sisson Architects • Cintas Corp. • Copeland’s • Currie Systems • DESE Research • Fountain Parker Harbarger & Assoc. • Fuqua Osborn Architects • The Heritage Club • Huntsville Tractor & Equipment • Infinity Technology • Jacobs Sverdrup • JH Partners Architecture & Interiors • Johnston, Moore, Maples & Thompson • Kudzu Productions • Lamb Commercial Services • Madison Research Corp. • Oceaneering International • Southern Natural Gas Co. • 3D Research Corp. • Wesfam Restaurants • Westar Corp. • WHNT-19 • Wilson Lumber
Take Stock (<$2,500 invested)
Arnold Hornbuckle • Available Plastics • Bama Jammer • Blue Creek Investment Partners • Charles G. Robinson • CityScapes • Crabtree Rowe & Berger • Curves for Women - Hampton Cove • Davidson Technologies • Decatur Transit • FLS • Grogan’s Jewelers • G.W. Jones & Sons • General & Automotive Machine Shop • Gray Research • Heartland Sunrooms & Spas • Heritage Bank • Ivan Allen • O & S Enterprises • OMI • Padgett Business Service • Park Supply Co. • Pearce Construction • Phoenix Industries • Quantitech • Robert Trent Jones Golf Trail at Hampton Cove • RNR Ventures • S&S Photography • Snelling Personnel Services • Stanley Construction • State Farm’s Marshall England • Taos Industries • Tetra Tech • The Real Yellow Pages® from BellSouth • Vulcan Heating and Air Conditioning • West Huntsville Land Company • Westwind Technologies Corp. • White, Fleming & Company
Upcoming Events
Our calendar starts off with a centennial celebration for Rotary International sponsored by our three local Rotary clubs.
February 23, 2005 5 p.m. ~ 7 p.m. The Roundhouse at the Historic Huntsville Depot 320 Church Street
Join with other elected and business community leaders as we present our State Agenda to the legislature, the Governor and key members of his staff on our Annual Montgomery Trip.
March 9, 2005 Bus departs at 6:30 a.m. from the Chamber building 225 Church Street
Cost: $10 per Chamber member; $15 for one Chamber member plus one non-member
Cost for Bus/Lunch/ Meetings/Reception: $115; Lunch/Meetings/Reception: $65
Call Lindsay Southard at (256) 535-2051 or send an email to LSouthard@hsvchamber.org.
Call Tina Leopold at (256) 535-2031 or send an email to TLeopold@hsvchamber.org.
Our first Washington Update of 2005 is a breakfast with U.S. Senator Richard Shelby as our guest speaker.
March 14, 2005 Beginning at 7:30 a.m. Von Braun Center North Hall Special sponsorship opportunities available Please call Tina Leopold at (256) 535-2031 or send an email to TLeopold@hsvchamber.org for more information. You may also find out more online at HuntsvilleAlabamaUSA.com.
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2005 Chamber of Commerce
Board of Directors Executive Committee
Jim Link
Dave Hargrove
President, Teledyne Brown Engineering
Regional Manager, External Affairs, BellSouth Chair-Elect
Chair of the Board
James M. Link (LTG U.S. Army, retired), president of Teledyne Brown Engineering, has a wealth of experience in technology and systems modernization gained during a long and distinguished military career. Immediately prior to joining Teledyne Brown, he was senior vice president, Applied Technology Group at SAIC in Huntsville. Gen. Link served as deputy commanding general, U.S. Army Materiel Command from 1998-00. Prior to that, he was chief of staff of the U.S. Army Materiel Command. He served as commander, U.S. Army Missile Command, Redstone Arsenal (now Aviation and Missile Command) from 1994-97, and deputy commander, 21st Theater Army Area Command, U.S. Army Europe and Seventh Army from 199394. From 1992-93, he served as the MICOM deputy commanding general. He also served at MICOM from 1986-89 as director of the Materiel Management Directorate in what is now the Integrated Materiel Management Center. Gen. Link has held various logistical, training, and staff assignments, including command positions during Operations Desert Shield and Storm. In Vietnam, he served as a company commander in the 173rd Airborne Brigade. As 2005 chair of the chamber, Link emphasizes five issues of particular importance â&#x20AC;&#x201C; BRAC, membership growth, community relations, chamber funding and regional partnerships.
February 2005 Initiatives
Consultant, Beason & Nalley, Inc. Past Chair of the Board
Joe Austin
Joel Daves
CEO, Huntsville Hospital
N. Alabama Executive & Huntsville City President, AmSouth Bank
Vice Chair Workforce Development & Board Member
Vice Chair Investor Relations
Mike Gillespie
Bill Gurley
Chairman, Madison County Commission
Senior Vice President & Group Manager, SAIC
Chair Appointed
Chair Appointed & Board Member
Jan Hess
Brad Jones
VP Finance & Contracts, Chief Financial Officer, Teledyne Brown Engineering
CEO, Crestwood Medical Center
Treasurer
Vice Chair Economic Development
Joe Ritch
Loretta Spencer
Karen Stanley
Partner, Sirote & Permutt, P.C.
Mayor, City of Huntsville
Vice Chair Governmental Affairs & Board Member
Chair Appointed
Vice President Finance & Marketing, Stanley Construction
Gerald Toland
Bill Watson
Peri Widener
President Redstone Federal Credit Union
CEO, SouthTrust Bank
Huntsville Site Senior Executive, The Boeing Company
Vice Chair Small Business & Board Member 28
Tommy Beason
Chair Appointed & Board Member
Vice Chair Research & Information Services & Board Member
Secretary & Board Member
2005 Chamber of Commerce
Board of Directors
Joe Alexander
Pete Apple
Scott Averbuch
Clayton Bass
President & COO, Camber Corporation
Director of Legislative Affairs & Community Relations, CSC
President/Broker, Averbuch Realty Company, Inc.
President/CEO, Huntsville Museum of Art
Frank Caprio
John Cooper
Dick Fountain
Dr. Frank Franz
Partner Lanier Ford Shaver & Payne
Chairman, President & CEO, Avocent Corporation
Agency Principal, Fountain, Parker, Harbarger & Associates, LLC
President, University of Alabama in Huntsville
Dr. John Gibson
Dr. Greg Gum
Tharon Honeycutt
Dr. Eric Janssen
President, Alabama A&M University
Radiologist, Radiology Associates
General Manager, WHNT-TV
President, SportsMed Orthopaedic Surgery and Spine Center
Jerre Penney
Scott Seeley
Remigius Shatas
Sandra Steele
President, Bill Penney Toyota
Senior Vice President, Regions Bank
CEO, RNR Ventures
President, Enfinger Development, Inc.
Paula Steigerwald
Herman Stubbs
Irma L. Tuder
Gail Wall
President & CEO, Huntsville â&#x20AC;˘ Madison County Botanical Garden
Vice President of Commercial Lending, Colonial Bank
President & CEO, Analytical Services, Inc.
CPA, VP of Information Technology & Director, Beason & Nalley, P.C.
Keith Wilson
Tom Young
General Manager of Test, Eastern Operations and Utility Services, Wyle Laboratories
Vice President, Intergraph Corporation
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