Initiatives magazine, April 2005

april 2005 review

huntsville madison county chamber of commerce

Way to the World International Intermodal Center Revs Up

initiatives H unt s vi l l e/ Madi s on C ount y • C ham ber of C om m erce

april 2005

f eatures cover story

Way to the World International Intermodal Center Revs Up

Page 15

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.

A Globally Competitive Community

07

International Academics

10

All Eyes on Huntsville/Madison County

12

Mobile Students = Global Managers

13

Global Supply Chain Management

18

Beautiful Reminders of Friendship

21

d e v e l o p me n t s HREGI Investors

04

Recent Headlines from foreign-based companies

11

Community Profile

23

Member Developments

25

ed i t o r i a l s t a f f

mission

contact

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

Chamber of Commerce Huntsville • Madison County 225 Church Street Huntsville, AL 35801 256.535.2000

Publisher

Brian Hilson

Executive Editor

Holly McClain

Editorial Designer

Kristi Sherrard

Writers

Anne Burkett Ray Garner Ethan Hadley Holly McClain Rebecca Sallee

Photography

Holly McClain

Advertising Sales

Susan Bowen

on the web HuntsvilleAlabamaUSA.com

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

03 Initiatives April 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 • TVA

President’s Circle

A Message from the President Dear Chamber of Commerce Investors, Community Leaders and Friends: Economic growth in Huntsville/Madison County is fueled by key industry sectors – most notably defense and aerospace, electronics, information technology, transportation equipment manufacturing and now also biotechnology. Employers in these industries have been recruited here and nurtured for more than 50 years, with our community always maintaining a strategic and aggressive approach to economic development. Along the way, due in large part to the significant influence of Wernher von Braun, Huntsvillians also learned how to do business and think internationally. When residents had the opportunity to receive the team of German rocket scientists in the 1950s, they did so enthusiastically. Since then, Huntsville has excelled in its international relationships, and much of the community’s economic growth is the direct result of our ability to “think globally.”

Huntsville is now home to over 30 foreign-based industrial and technology employers.

CINRAM, LG Electronics, Siemens and Toyota Motor Manufacturing are foreign-based companies which also rank among Huntsville’s largest employers. While 2004 was a recordsetting year in economic development for Huntsville/Madison County with 5,461 jobs announced by new and expanding companies, Huntsville’s international companies accounted for 2,015 jobs, or 37 percent of the total.

The recruitment of foreign direct investment continues to be a major objective of the Chamber’s economic development program. A comprehensive and effective international business strategy, however, includes more than foreign business recruitment. Huntsville is also very active and successful in international trade and transportation, and in international relations. Organizations such as the Chamber of Commerce, the City of Huntsville, the Madison County Commission, the Huntsville/Madison County Airport Authority, as well as the North Alabama International Trade Association and the International Services Council, provide the Huntsville area with a highly visible means of promoting the community’s capabilities to the world. The International Intermodal Center, pictured on the front cover of this issue of Initiatives, does 80 percent of its transportation business internationally, and our highly successful Web site, www.HuntsvilleAlabamaUSA.com, gives us “24/7” exposure to the world.

This Initiatives also recognizes many of the important international features of our community, which range from international business and education programs to Huntsville’s Big Spring International Park. We are proud of our many international successes, including the economic benefits they have brought to our community and the lasting friendships with people from around the world we have been so fortunate to develop.

Brian Hilson President & CEO Chamber of Commerce of Huntsville/Madison County

04 April 2005 Initiatives

($25,000-$49,999 invested)

ADTRAN • AmSouth Bank • BellSouth • The Boeing Co. Colonial Bank • Compass Bank • Crestwood Medical Center The Huntsville Times • Redstone Federal Credit Union SouthTrust Bank

Chamber Trustees

($10,000-$24,999 invested)

Avocent Corp. • Beason & Nalley • Bill Penney Toyota Blue Cross & Blue Shield of Ala. • Camber Corp. • CINRAM COLSA Corp. • Continental Airlines • Huntsville Area Assoc. of Realtors • Huntsville/Madison Co. Builders Assoc.

Intergraph Corp. • Lamar Outdoor Advertising LG Electronics Ala. • 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 & Co. • 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. • 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 Radiance Technology • SES Southern Natural Gas Co. 3D Research Corp. • Wesfam Restaurants • Westar Corp.

WHNT-19 • Wilson Lumber • Yellowbook

Take Stock

(<$2,500 invested)

Ala. Psychological Services Center • Allied Photocopy Arnold Hornbuckle Available Plastics • Bama Jammer • Blue Creek Investment Partners • Charles G. Robinson • CityScapes Crabtree Rowe & Berger • Curves: 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 • Mercer & Assoc. • O & S Enterprises • OMI Padgett Bus. Service • Park Supply Co. • Pearce Construction Phoenix Industries • Quantitech • RTJ Golf Trail at Hampton Cove • RNR Ventures • S&S Photography • Sellers Aerial 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 Co. Westwind Technologies Corp. • White, Fleming & Co.

The Chamber of Commerce

Board of Directors and Executive Committee 2005 Executive Committee Jim Link, Chair Dave Hargrove, Chair-Elect Tommy Beason, Past Chair Peri Widener, Secretary Jan Hess, Treasurer Brad Jones, Vice Chair Economic Development 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 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 Jim Bolte, Toyota Motor Manufacturing Alabama, Inc. Frank Caprio, Lanier Ford Shaver & Payne John Cooper, Avocent Corporation Dick Fountain, Fountain, Parker, Harbarger & Associates Dr. Frank Franz, UAH Dr. John Gibson, Alabama A&M University Dr. Greg Gum, Radiology Associates Bill Gurley, SAIC Tharon Honeycutt, WHNT-TV Dr. Eric Janssen, SportsMed Jerre Penney, Bill Penney Toyota Joe Ritch, Sirote & Permutt, P.C. Scott Seeley, Regions Bank Remigius Shatas, RNR Ventures 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 06 April 2005 Initiatives

Written by Anne Burkett, director of planning and economic development for the Madison County Commission and executive director of the North Alabama International Trade Association (NAITA)

The North Alabama Region: A Globally Competitive Community

G

lobalization has brought monumental changes in the ways we do business. The world is becoming dramatically more interconnected and competitive. Innovation, stresses the Washington, D.C.-based Council on Competitiveness, is the single most important factor in determining America’s future success in the 21st Century. The ability to innovate drives our productivity, standard of living, and leadership in global markets. To thrive in this new world, a globally competitive community must be globally educated and engaged. Our challenge lies in finding innovative solutions to the market realities posed by globalization.

The North Alabama Region: A Globally Competitive Community is a nonpartisan initiative and catalyst to build and maintain a sustainable, globally-competitive region. With Huntsville/ Madison County as its economic core, this region extends into the North Alabama counties of Cherokee, Cullman, Dekalb, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Marshall, Morgan and Winston, plus Lincoln County in Tennessee. The initiative aims to develop long-term, strategic partnerships to enhance our global competitiveness.

Already, a series of Global Community Forums have been held in Huntsville and across the Southeast. Last spring, the Madison County Commission; the University of Alabama in Huntsville (UAH); NASA Marshall Space Flight Center; BizTech; the Chamber of Commerce of Huntsville/ Madison County; and NAITA joined forces with the Southern Growth Policies Board (SGPB) for discussions under Globally Positioning the South. SGPB is a non-partisan public policy think tank devoted to strengthening the South’s economy and creating the highest possible quality of life. Three forums were held to discuss three primary focus areas: strengthening the workforce, strengthening business, and strengthening civic relationships.

The results of our forums were used in Southern Growth’s 2004 Report on the Future of the South – The Globally Competitive South (Under Construction).

Four main focus areas have been identified for this initiative: Education/Workforce Development, Civic/Cultural Relationship Development, Business Development, and Infrastructure Development.

Education/Workforce Development addresses how we prepare our workforce for the jobs of the future in today’s global environment.

Understanding North Alabama’s occupational structure can help the region identify and grow the workforce skills that will drive our global advantage. Educational curricula at all levels (pre-school through post graduate school) must address the needs of the global leaders of tomorrow. Dr. Henning Heppner, executive vice president and chief financial officer, Powertrain Electronics and Drivetrain, for Siemens VDO, and a relatively new resident of Huntsville, has made a number of international career moves. A German native, he believes if this region is to be even more globally competitive, more emphasis should be put in the K-12 school system on subjects that support international relations. “For example, foreign language education could be offered much earlier. I see foreign language as a clear bridge; foreign students could integrate more easily, local students would enrich their capabilities,” he remarked. “Consideration should be given to adding an international school. I know many cases where the existence of such a school was the decision-making factor of foreign investors and relocating managers for a community,” he added. Heppner feels such a move would fully embrace the needs of foreign nationals and residents and would put the North Alabama region in a clear competitive advantage.

Developing Civic and Cultural Relationships between residents, business people, elected officials, and foreign businesses – both overseas and within our own communities – can create valuable exchanges. These relationships are essential to a global community and can help our residents think globally, share responsibility, and take action on behalf of our region’s future. Arts continued on page 8 07 Initiatives April 2005

continued from page 7

and cultural activities reach, link and celebrate the diverse communities of our region. Dr. Heppner has noted his personal elation at how well foreigners are welcomed and accepted in Huntsville/Madison County. “Likely, it is because so many here have an international experience; certainly many military people here have been overseas and many business professionals travel internationally.” In regard to general input, he said his single colleagues usually have a more difficult time finding contacts and weekend activities, but, “for families – it’s great.”

We want to position North Alabama as a world leader in technology and innovation.

Business Development will review current services available to businesses and help determine the next steps in continuing economic restructuring.

Strengthening business throughout the region and providing resources to facilitate competitiveness makes our community more attractive to talent and investors outside the region.

Export development is a significant element of business development that helps companies learn, innovate and stay competitive. Research shows exporting companies stay in business longer and increase jobs at a faster rate. In fact, any international activity increases the odds for business survival and growth. Carol Conway, deputy director of the Southern Growth Policies Board, commented, “We sometimes forget trade built

08 April 2005 Initiatives

America. As time went by, changing economic circumstances allowed us to grow through our rapidly expanding internal markets. But circumstances have changed and trade is no longer a marginal business activity. It is central to future business growth and economic stability.”

Infrastructure Development is critical to connecting communities to the world. Cities of international character, led by private and public sector leaders, act as a gateway to the region.

“The future economic prosperity of our region is dependent upon our commitment to continue developing transportation systems which will allow commerce and industry to successfully compete in the global marketplace,” said Rick Tucker, executive director of the Port of Huntsville. An internationally connected community is shaped by investing in airports, seaports, and efficient ground transportation; developing the financial and legal infrastructure; and facilitating the flow of products and services.

Many continue to ask the question: Are we global victims or global competitors? According to the SGPB, the cumulative impacts of terrorist attacks, the recession, the loss of manufacturing jobs to other nations, and the recent focus on outsourcing of professional-level work have resulted in many seeing themselves as victims of globalization. Our mindset must change. We must transcend any perceptions that we are global victims.

The Economist reports, “More jobs are outsourced to America than the other way around. American workers . . . are net beneficiaries of outsourcing (it goes without saying that consumers always were). And in the crossborder trade of white-collar services, a chief concern, America’s surplus with the rest of the world is not shrinking; it is growing.”

We are already global competitors and we must devote time, attention, and resources to becoming the best competitors we can possibly be. We must be relentless in our pursuit of innovative, global economic opportunities for our region and our nation. • NAITA is a non-profit membership organization committed to increasing knowledge, interest, and activity in international trade in North Alabama.

NAITA's Mission is to facilitate trade development and growth opportunities in North Alabama and the surrounding region.

Links to sources additional reading on related topics are available at www.naita.org/globalcommunity.htm.

Sources: Innovate America, National Innovation Initiative Report, Council on Competitiveness, December 2004 Fast Forward: Mobilizing the South for Prosperity in a Global Economy, Southern Global Strategies Council, February 2004 The Globally Competitive South (Under Construction), Southern Growth Policies Board, June 2004

International Academics Local university takes education globally

E

ducation, research, economic development, civics and cultural awareness. International programs at The University of Alabama in Huntsville (UAH) stress all of these qualities.

Most activities center upon UAH’s Office of International Programs (OIP).

Since the OIP was created, the office has been instrumental in securing numerous agreements between UAH and foreign academic and research institutions in such places as Belarus, the Ukraine, Russia, China and Uzbekistan. These agreements have allowed UAH to perform an instrumental role in various academic programs that range from teaching, to the environment, to the pursuit of free enterprise and government structure and operation.

Some examples include: • UAH is an affiliate of the AustraLearn program, the premier study abroad organization for Australian and New Zealand universities.

• PLUS: Partnership in Learning Undergraduate Studies is a State Department program that promotes exchanges between UAH and students from North Africa and the Middle East.

• Young Russian Leadership brings graduate students from Bosnia and Herzegovina to study

10 April 2005 Initiatives

and conduct research at UAH. The program is expected to expand to include Croatia.

• The UGRAD program is a liberal arts and business undergraduate program for students from the former Soviet Republics.

• The Open World Leadership Program is sponsored by the Library of Congress. The program brings specialists, such as doctors, journalists and politicians to Huntsville.

UAH is also the destination for scores of students from Japan. The National Collegiate Network is a Japanese organization that works to place Japanese students in American universities to strengthen their basic English language skills.

Once the students master the English language, they move on to other academic courses and work toward earning a bachelor’s degree.

“The presence of international students on the UAH campus provides invaluable occasions for increasing cultural awareness and tolerance,” said OIP director John Pottenger.

In addition to these programs, several departments on The UAH campus are promoting cooperative research partnerships.

Engineering professor Dr. Bob Frederick annually pulls together a team of students from

UAH and ESTACA, a French high school, to conceptualize, design and make presentations on various projects for the U.S. Army. The group designed a “guided bullet” that may be helpful on the battlefield, protecting American soldiers from mortar fire.

This year, a class project by a trio of international graduate students in UAH’s business school might help an international company with a Huntsville plant improve its supply chain. The students in Dr. Jatinder Gupta’s management class spent most of a semester collecting information about Saint-Gobain Ceramics & Plastics, Inc., the world’s largest manufacturer of abrasives.

Last year, following a three-week tour of conferences in India, Dr. Gupta came home with invitations for UAH to participate in joint research and academic programs with some of the top business, engineering and technology schools in the world’s second most populous country.

“Both international and American students benefit from lively discussions of values, beliefs, and practices,” said Dr. Pottenger. “To this end, our office actively seeks opportunities to expand international programs at UAH.” • Ray Garner

Recent Headlines from foreign-based companies APRIL 2004

Siemens VDO Automotive Completes Acquisition Siemens VDO Automotive officially completed the acquisition of DaimlerChrysler’s Huntsville Electronics operations on April 1. The company plans to make the former DaimlerChrysler Huntsville location one of its global electronics manufacturing and engineering centers of expertise.

As a subsidiary of Siemens, the Huntsville plants will have access to a broader range of business opportunities within the rapidly growing, global $125 billion automotive electronics market.

Mitchell Plastics Establishes Operation in Chase Park Mitchell Plastics, a division of Canada-based Ultra Manufacturing, has chosen Chase Industrial Park to locate its new U.S. manufacturing facility.

The manufacturer was welcomed to Huntsville/ Madison County in ceremonies held on April 15.

The company has currently invested about $6.5 million in equipment and building modifications/upgrades. Initial employment is anticipated to be about 75 with another 25 added by year two.

SEPTEMBER 2004

Governor Riley Announces Major Toyota Expansion, New Jobs in Huntsville Governor Bob Riley joined community leaders from Huntsville and executives from Toyota to announce another expansion of Toyota’s engine plant located in Huntsville.

“This is the second major expansion of the Toyota plant in the past 14 months and is yet another sign that Alabama’s economy is on the right track,” Governor Riley said. “The fact that Toyota has essentially doubled its presence in Alabama shows not only that this is a truly successful company with a great team of workers, but that it also has a lot of confidence in the economy of our state.”

This expansion project will nearly double the size of the current facility. Additional investment for this expansion will be $250 million, bringing the total to $490 million. Another 300 jobs will be added for a total of 800. Annual production capacity will be increased by 150,000 engines for a total of 400,000 units.

Visit HuntsvilleAlabamaUSA.com for more business headlines.

FEBRUARY 2005

Westar Breaks Ground in Cummings Research Park Systems and Engineering Center Aims to Strengthen Service Westar Aerospace & Defense Group (A&DG) has broken ground on a new facility to enhance customer service, create greater synergy between staff and leadership, and advance corporate growth plans. “Westar is committed to this community and our customers,” announced Garrett Martz, Westar Aerospace & Defense Group chief operating officer. “The new systems and engineering center is our future home for achievement, teamwork and quality,” he added. When complete, the center, located in Cummings Research Park West at 890 Explorer Boulevard (near the corner of Discovery Drive and Explorer Boulevard), will encompass over 85,000 square feet. Notably, the company has already asked the City of Huntsville for an option on the land adjacent to the planned systems and engineering center.

In 2004, the high growth Westar A&DG was acquired by QinetiQ, United Kingdom’s largest science and technology solutions company.

11 Initiatives April 2005

All Eyes on Huntsville/Madison County

I

t’s a small world, or as the Japanese say, “the world is narrow.” However you express it, we live on an increasingly connected planet. The nature of current international business dictates that economic development strategies must be global. Our competition for new business projects could be regional, in other parts of America, or in a country far removed from our shores. Fortunately, Huntsville/ Madison County has unique capabilities and attributes, making this community highly attractive to companies in our targeted industries.

One of our primary challenges is in getting the word out to the key corporate executives in those industries, as well as everyone who influences the site location process. There is no substitute for faceto-face contact with these decision-makers and facilitators and we maximize opportunities for personal introductions at home, across the country, and around the world.

However, we cannot be everywhere at once, so we rely heavily on our virtual presence through electronic marketing newsletters and increased traffic to and through our Web site: HuntsvilleAlabamaUSA.com. The new site, launched at the end of 2004, integrates a number

12 April 2005 Initiatives

of other sites, including the main chamber Web site, the Cummings Research Park Web site, and our Huntsville Jobs Web site. The entire revamping process began about a year ago, when the chamber contracted with one of the leading site location consultants in the world. His task was to redesign and upgrade the site to ensure all of the information any given company or hired consultant looks for in the macro stage of location analysis – this is the first make-or-break evaluation of a location’s viability for a specific investment project – is readily available. Most communities are unknowingly eliminated in this stage due to unfavorable, unavailable, incomplete or difficultto-access information. Our 24/7 Web presence ensures people can “visit” Huntsville at any time and find the outstanding amenities and infrastructure our community has to offer.

I’m pleased to note in January 2005, we nearly doubled the January 2004 number of unique client hits to our Web site. We also know that those people are viewing more of the content available on the Web site, with a 300 percent growth in files accessed and a 600 percent growth in the amount of data transferred.

We expect traffic to Huntsville, both virtual

and real, to increase in 2005. On the face-to-face side, we have already hosted reciprocal visits from a number of corporate executives and site location consultants we visited last year. We also expect over 300 people to attend the Japan America Society of Alabama (JASA) Annual Dinner in Huntsville in May. Active participation in international business and cultural organizations such as JASA and site consultant-centric organizations such as the International Economic Development Council and CoreNet are additional avenues extending our reach and enabling a greater awareness of Huntsville/Madison County. As they say, “seeing is believing,” and there is no better way to drive home our message than to have people see Huntsville for themselves through their own eyes.

Of course, the more eyes, the better.

• Ethan Hadley Vice President of Economic Development Huntsville/Madison County Chamber of Commerce

Mobile Students = Global Managers Corporate programs shows commitment to next generation of innovators “Modern technology has made global networking possible and, in turn, opened up new forms of cooperation across national and cultural boundaries.

All of which has brought new demands in terms of technical, professional training and the social skills of individual employees. Business success will stand or fall in line with our ability and willingness to think and act globally.” The preceding is part of the impetus behind Siemens’ programs for college students and young professionals that provide work experience abroad.

“The Siemens graduate program and the Siemens student program address those just starting careers, as well as students who have not yet graduated from the university or technical college,” said Chris Redlin, human resources generalist for Siemens in Dearborn, Michigan.

He commented the company sees these programs “almost as marketing tools” in the pursuit of establishing Siemens as the employer of choice.

“These global experiences are phenomenal for students; in turn, Siemens is more likely to get quality, engaged engineers and managers,” noted Redlin. The student programs, he said, develop young professionals “from the ground up.” Too, said Redlin, the largest number of trainees hail from Germany – the headquarters country for Siemens AG.

While generating goodwill in the communities of origin, the communities receiving students – including Huntsville – also benefit. Savvy students and young professionals such as those participating in the Siemens programs are destined to become the global movers, shakers and decision-makers of tomorrow. The more they know about what Huntsville and Madison County have to offer, the better.

Thomas Barnickel is one such student currently reporting to the Huntsville Siemens VDO facility. The 23 year-old German student from the Technical University in Ilmenau is learning firsthand about engineering and finance functions. “My course of study is industrial engineering and management,” supplied Barnickel. His thesis is all that remains to be completed before he graduates at the end of the year with a degree equivalent to a masters level.

“I started here September 27 [2004] and the experience will end March 27,” said Barnickel.

He enthusiastically noted he was “totally lucky,” in the accommodations he procured – a basement apartment in a house where he is warmly accepted by his landlady and her family.

Regarding work environment, Barnickel said this is the first time he has been exposed to a

management environment.

“Before, I worked vacations jobs on the line [manufacturing]. Here, I’ve learned a lot about accounting and controlling and I still have five weeks to be introduced to more systems and processes,” he Barnickel commented. Interestingly, he noted cultural differences between the German and U.S. work environment, “In Germany, you just go to work; in the U.S. there is a social aspect to work.” He added the U.S. work day is longer and “a lot of people here work Saturdays and Sundays, something not used to in Germany.”

How does Barnickel feel about Huntsville?

“I’m from a small town so I don’t miss anything.”

He appreciates the availability of sports, cinemas, and golf, but regarding the latter noted he hadn’t yet been able to play.

Would he come back? “Yes,” he said, “I have found good friends and hope I can welcome them in the future.” Plus, he “likes the U.S. way of working and living.” *Locally, Siemens VDO is involved at the high school level with Rocket City robotics.

13 Initiatives April 2005

Way to the World International Intermodal Center Revs Up

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he little engine that could has nothing on the International Intermodal Center (IIC) at the Port of Huntsville. The IIC is an essential economic engine that helps make Huntsville/Madison County a more globally-competitive community.

The IIC includes a 45acre airport-owned rail center, including a depot yard that services Norfolk Southern freight trains with two 45-ton cranes, moving the containers between trains and trucks that arrive at their own Bradley adjoining terminal. According to Mitch Bradley, director of the IIC, “About 80 percent of the traffic is of international origin.”

Chris Luebbers, group manager of international marketing for Norfolk Southern (NS) Intermodal, reported volumes in and out of Huntsville grew by over 25 percent in 2004 compared to the year prior. Nationally, the Association of American Railroads stated intermodal loading was up 10 percent in 2004.

“Intermodal volumes in 2004 were incredibly strong across the country due to overall improvements to the U.S. economy and growing demand for consumer products.

Huntsville's above average growth can be attributed to increasing demand in the market, as well as growth in the local industrial and distribution activities,” informed Luebbers.

“The majority of Norfolk Southern’s traffic through Huntsville was international marine containers, with some domestic container and trailer traffic moving as well,” asserted Luebbers. Most of the international traffic moves via rail from the U.S. West Coast ports.

However, the trend in recent years is the growth in “all water” services, whereby more and more volume is being shipped from Asia through the Panama Canal to the U.S. East Coast ports. “Huntsville has also experienced this shift in traffic patterns, making Savannah and Charleston Huntsville's second and third largest service lanes, behind Memphis,” remarked Luebbers.

The current spike in fuel costs means rail shipping is well positioned. “While railroads are impacted by the increasing cost of fuel, railroads are also more fuel efficient relative to trucks,” declared Luebbers. “As a result, we are better able to control the impact of the higher costs to our operation. Customers that at one time trucked their containers from Savannah or Memphis are now railing directly into Huntsville in order to control their transportations costs – which in the end is good for consumers.”

The Norfolk Southern manager noted the main issue facing many intermodal terminals is efficient use of existing capacity. Anticipating rapid growth, the Port of Huntsville recently completed $13.4 million in capital improvements at the ICC. “With these expanded capabilities, we can triple the volume that we currently have,” said Rick Tucker, executive director of the Port of Huntsville. “This allows us to provide excellent customer service by staying ahead of the demand rather than trying to catch up to it.” Luebbers concurred by saying, “The Port Authority's ability to effectively manage this strong growth can be attributed to sufficient terminal capacity and an efficient operating team.”

Crossing training personnel “in the yard” is integral to that efficient operating team.

“Time is money,” said Bradley. “The crane

Pittman

operator can hop on a yard tractor, hop on the locomotive, run the gate and check drivers in and out. We’re very customer service-centric.”

January saw a record number of container lifts – 3,400. “On an annual basis, we’re capable of doing over 100,000 lifts,” he added.

Kent Pittman is one of the members of the cross-trained team. He started at the IIC on opening day in 1986. Switching cars, moving track to track, loading and operating cranes and handling empty containers are all in a day’s work for Pittman. With a grin, he admits that steps to make the yard more efficient occasionally have a down side – the crane’s high overhead cab used to offer a chance to sit continued on page 16

14

15 April 2005 Initiatives

Initiatives April 2005

continued from page 15

down, and on a cold, blustery day, a chance to get out of the cold wind. Now, streamlined crane operations are typically directed with a hand-held remote control from the ground. But Pittman is proud of the improvements and achievements at the IIC. “The Huntsville center is a model, so we receive many calls and conduct tours for others trying to Tucker enhance or establish an intermodal facility,” he shared.

The IIC’s rail/truck facility is adjacent to the air cargo complex but there is little airto-rail connect. According to Tucker, air cargo usually uses two separate connections; air-to-truck and truck-to-air. Most of the overseas shipping containers handled at the ICC hold freight that is too bulky and low-value to travel by air. “While the IIC does export – typically scrap metals, special metals, lumber hard woods for furniture – we’re primarily an import yard,” offered Bradley.

Enhancements at the airport in 2004 supported globalization. The west runway extension project enabled direct service to Asia and the Pacific Rim using a Boeing 747-400 aircraft under typical all-cargo loading conditions. “Extending the west runway from 8,000 feet to 12,600 feet was the largest single project since the original construction of the airport. This length of runway is needed to allow a Boeing 747400 aircraft to take off fully loaded with fuel and freight even on a hot summer day,” asserted Tucker. The Huntsville runway is second to Miami as having the longest runway in the Southeast.

For both rail and air, lack of congestion at the Port of Huntsville is a valuable commodity. “You can turn around a 747, unloaded and reloaded, in two hours. You can’t do that at the major gateways,” supplied Tucker.

“International trade is the way of the world and will only get bigger. I think we have the world’s attention,” finished Bradley. • –––––

The Port of Huntsville is an inland port that combines the Huntsville International Airport, International Intermodal Center and Jetplex Industrial Park. The entities that comprise the Port of Huntsville strive to move people and products efficiently throughout the global marketplace with onsite services.

16 April 2005 Initiatives

Strengthening Weak Links Through Effective Global Supply Chain Management Continuing Education Offered by NAITA and UAH

“I

n today’s highly competitive manufacturing landscape it isn’t company versus company anymore, it’s supply chain versus supply chain,” noted Tom Dadmun, vice president of supply chain operations for international business savvy ADTRAN. Supply chain management (SCM) is a highly complex undertaking involving multiple functional areas of an organization, including procurement of raw materials, transportation/logistics throughout the manufacturing process, inventory and distribution. According to a publication by Booz Allen Hamilton, it also includes the process of forecasting demand and ideally ties in with sales and marketing programs.

Supply chain management is about ensuring survival in a global marketplace. Dadmun remarked, “With customers demanding short lead times and customization, you have to be agile and adaptive. Responsiveness is paramount and we [ADTRAN] use the V3 or Vcubed concept of “velocity, visibility and valueadded.” He explained material must be moved quickly with shorter cycle times. “You must be able to see material and components at all levels in the supply chain, even to the suppliers’ supplier. And you must remove all the non value-added time or waste in the supply chain to have pure value-added processes.”

The North Alabama International Trade Association (NAITA) and the University of Alabama in Huntsville (UAH) will offer a three-day seminar – Global Supply Chain Management – May 12, 26 and June 16, to help area professionals in the pursuit of such value-added processes. The course will provide an introduction to leading edge models and practical processes for effective and efficient

18 April 2005 Initiatives

supply chain design and management in a global environment. Senior and mid level managers will learn how to design, reengineer, and implement effective supply chain practices. The course will emphasize the role of information technology in SCM; the need for information sharing to reduce inventory control and supply chain uncertainty; distribution and logistics management; partnering with suppliers and customers to reduce costs and increase service levels; and effective practices for global procurement.

“Global logistics is in the middle of a crisis today,” shared Dadmun. “The U.S. logistics infrastructure is at full capacity with numerous delays at all of our ports. The railroads cannot keep up with demand and are trying to hire new employees and procure new engines in record numbers. The trucking industry has a shortfall of drivers that is the highest in decades. The need for a solid, efficient logistic plan with contingencies keeps transportation managers awake at night,” he informed.

Programs such as the one offered jointly by NAITA and UAH, Dadmun confirmed, are good steps toward learning how to establish a logistics infrastructure and methodology to handle contingencies.

Recent developments and methods for successfully utilizing Web-based e-business in supply chain management will also be explored during the three-day seminar held on the UAH campus.

For further information on the three-day Global Supply Chain Management, contact Dr. Jeet Gupta, eminent scholar of management, UAH College of Administrative Science, at 824-6593. •

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20 April 2005 Initiatives

Sometimes a bridge is just a bridge; a physical structure that allows people to go from one point to another.

Sometimes a bridge is a personal relationship that brings about enlightenment and friendship between two cultures. In this second installment of our Huntsville bicentennial series, we remember Mikio Kimata, a master bridge builder in every sense of the word.

Beautiful Reminders of Friendship International exchange is Huntsville heritage

W

hy is Big Spring Park in Huntsville known as Big Spring International Park? It all began with the planting of some cherry trees and the building of a bright red bridge.

The red bridge is the park’s signature manmade item, but it’s more than just a conversation piece. It represents a period in the city’s history, during its evolution from a small, rural cotton town into a thriving high-tech city with international ties.

In the mid 1960s, Redstone Arsenal’s Ordnance Guidance School (now the U.S. Army Ordnance Missile and Munitions Center and School) attracted soldiers from around the world. Among them was a lieutenant colonel from Japan, Mikio Kimata, a representative of the Japanese Self Defense forces and commander of his country’s personnel at Redstone.

Kimata, who eventually became a major general and is now retired in Tokyo, was deeply touched by the hospitality shown to him and

his troops during their stay in Huntsville.

Kimata grew especially close to the late T.P. Gates, founder and leader of the city’s International Services Council.

At the end of his assignment in 1966, Kimata arranged for a gift from his country to the city’s Big Spring Park: a series of Yoshino cherry trees to line the lagoon. Mayor Loretta Spencer marvels at the beauty the original trees continue to bring to the city every spring.

“We’ve always photographed the trees in showing scenes of the season as we do recruitment,” she said, calling them park’s springtime focal point.

In 1976, 10 years after the donation of the trees, in honor of the United States’ bicentennial, Kimata, who by then had returned to Japan, provided funds for the building of a “Friendship Bridge” for the park. The bridge was to be fashioned after those in his home country. Kimata and his wife attended the dedication ceremony for the bridge and in later years, contributed funds for its refurbishment.

Meanwhile, representatives of the International Services Council began pursuing gifts from other countries for the park. Some countries sent books to the library in the name of the park. Germany provided a sun dial.

England sent a bench.

Other countries, including the Netherlands and the Philippines, donated seedlings, trees and other plantings. Some 200 rose bushes from Rapperswill, Switzerland, “the town of roses,” were given to the park and planted to form a Swiss flag. Few signs of those times remain in the park as Mother Nature and reconstruction have taken their toll.

Perhaps the most unusual gift still standing is a fog bell tower given to the park from the country of Norway in the early 1970s.

Shipped to Huntsville in a 20-ton container, the former lighthouse was a gift from the Norwegian Lighthouse Authority, represented

by Kosti Herlofson, who also came to Huntsville for a dedication ceremony.

But the bridge remains the strongest symbol of a lasting international relationship between Kimata and the city, said Luba Cehelska, executive director of the International Services Council.

Although Cehelska has never personally met the general, he sent her a card and calendar over the holidays, “with a note: ‘No thanks required,’” she said.

Kimata would undoubtedly be pleased to see the work being done at the International Services Council today.

Funded by the city and county, the organization coordinates a program for international visitors; works to integrate international military trainees into the community; familiarizes people from other countries with the rules continued on page 22 21 Initiatives April 2005

continued from page 21

of the U.S. Immigration and Naturalization Service; and helps promote area international cultural events.

Hospitality for troops from other countries has been an integral element of the office’s work from the beginning, Cehelska said.

“They don’t know anyone. They don’t know where to shop.” Such were the very problems facing Kimata when he first came to Huntsville and Redstone Arsenal.

Cehelska’s office in the Madison County Courthouse displays memorabilia about Kimata, and his contributions to the cause she now extols. “He has been a very important figure in this city,” Cehelska said. “This kind of understanding and hospitality leads to good business and relationships, and that’s what makes the world go around.”

Mayor Spencer said the Japanese bridge in Big Spring International Park will become even more visible as renovations to the park continue in coming months and years.

“It will become a more dominant feature to our park, once we get the landscaping and water features in,” she said.

Big Spring International Park is a gathering place for families who enjoy feeding the ducks and strolling the downtown sidewalks. It’s home to two of Huntsville’s largest annual

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festivals, Panoply of the Arts, a spring arts and music festival, and the Big Spring Jam, a fall multi-stage music festival, both of which bring in thousands of visitors to the city.

Ironically, many know little about its “international” touches.

Among those who will never forget are troops of U.S. Boy Scouts. The bridge is the site of numerous “bridging ceremonies” where youngsters move from one stage of the organization to another. The history of the bridge and recognition of Kimata are always part of the ceremony, as documented in International Services Council archives.

Spencer was among the many civic group members who helped adopt representatives of other countries during their stays in Huntsville in the early years. “There was such a wonderful relationship between the general and Huntsville,” she said.

Archives in the Huntsville Public Library commemorate the establishment of the “international” park with the first donations from the Japanese dignitary.

The cherry trees, noted Gates to Kimata, serve as “a constant reminder of the friendship between you and our community, and, in a broader sense, between our two countries.”

• Rebecca Sallee

c o m m u n i t y p ro f i l e

TOP 10 EMPLOYERS

Population

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

2000 Census

276,700

158,216

29,329

342,376

2003 Estimate

289,662

164,237

34,080

357,907

109,955

66,742

11,143

134,643

Households 2000 Census

U.S. Army/Redstone Arsenal . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14,599 Huntsville Hospital System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,320 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,300

The Boeing Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,092

Huntsville City Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,700

NASA/Marshall Space Flight Center . . . . . . . . . . . . . . . . . . . . . . . .2,676 CINRAM

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,500

Wal-Mart Stores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,300

Income & Age Avg. Household Income

$57,220

$55,856

$72,432

$55,343

Per Capita Income

$23,091

$24,015

$27,821

$22,073

Source: U.S. Census Bureau (www.census.gov)

Intergraph Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,097

Madison County Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,033 Source: Chamber of Commerce

Aerospace Huntsville/Madison Co. 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 in the local aerospace industry.

Defense 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.

Research & Technology

For more information visit:

Huntsville’s Cummings Research Park is the country’s second largest

HuntsvilleAlabamaUSA.com

people involved in technology research and development.

research and technology park, containing 225 companies employing 23,000

23 Initiatives April 2005

Chamber of Commerce Huntsville â&#x20AC;˘ 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 Joe Watson, Facilities Supervisor

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 â&#x20AC;˘ Madison County 225 Church Street Huntsville, Alabama 35801 (256) 535-2000 www.HuntsvilleAlabamaUSA.com 24 April 2005 Initiatives

25 Initiatives April 2005

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