Attention: Chamber members Join us for our annual
WASHINGTON, DC TRIP April 15-17, 2007 Our itinerary includes 2 days of meetings, briefings and appointments. During the trip, the Chamber’s Federal Agenda is presented to our delegation. Your participation in the trip is an important part of our success. Reservation deadline: April 9 For more in formation, contact Tina Leopold by calling (256) 535-2031 or send an email to: TLeopold@hsvchamber.org Presenting Sponsor:
The Boeing Company Gold Sponsors:
Northrop Grumman; SPARTA, Inc.; Tennessee Valley Authority Silver Sponsors:
Advanced Federal Services Corporation; Dick, Riggs, Miller and Stem, LLP; Embassy Suites; O&S Holdings LLC; Pratt & Whitney Rocketdyne; System Studies & Simulation, Inc.
4
April 2007 Initiatives
Presented by
initiatives Chamber of Commerce of Hunt sville/ M adison County
april 2007
in this issue
Teaming Together for Economic Growth
f eatures Total Resource Campaign
13
Partners in Economic Development:
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 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.
Teamwork is Everything
18
City of Huntsville
20
Madison County Commission
22
Alabama Development Office
24
U.S. Congressman Bud Cramer
26
EDPA
29
Port of Huntsville
32
NAIDA
35
Huntsville Utilities & TVA
38
Verizon Wireless groundbreaking, Feb. 2007
d e v e l o p me n t s Washington, D.C. Trip
4
Chamber Board Listing
8
Community profile
10
TRC: CHAMBEROPOLY
12
Chamber Staff Listing
15
HREGI Investors
16
ed i t o r i a l s t a f f Publisher
Brian Hilson
Executive Editor
John Southerland
Editorial Designer
Kristi Sherrard
mission
The mission of the Chamber of Commerce of Huntsville /Madison County is to prepare, develop and promote our community for economic growth.
Contributing Writers
contact
Chamber of Commerce of Huntsville /Madison County 225 Church Street Huntsville, AL 35801 256.535.2000
John Southerland, Danielle Moran, Gerri Miller, Garrett Sheehan, Wendy Wallace Johnson, Ethan Hadley, Nancy Haragan, Barbie Peek
Photography
Chamber staff
on the web HuntsvilleAlabamaUSA.com
(unless otherwise noted)
Advertising Sales
Cassandra Darby The Huntsville Times
Initiatives April 2007
7
Chamber of Commerce
Board of Directors and Executive Committee 2007 Executive Committee
Dear Chamber of Commerce Investors, Community Leaders and Friends:
Planning, Analytical Services, Inc.
Exciting. Competitive. Rewarding. These adjectives and more apply to the process of economic development. The system of economic growth that communities depend upon is a priority for leaders at all levels. Much is at stake – ultimately, the economic stability and prosperity of a community is determined largely as a result of local economic development programs and their effectiveness. Fortunately for Huntsville/ Madison County, we benefit from the tremendous leadership that our elected officials and key organizations provide in growing our economy. It’s all a matter of teamwork.
Joey Ceci, Vice Chair - Governmental Affairs,
To take you behind the scenes in economic development for a moment, imagine a high profile business recruitment opportunity for Huntsville/Madison County, such as Toyota Motor Manufacturing. Once Toyota’s needs were revealed, our leaders worked as a team, very aggressively and confidentially, as the situation always requires, to develop a proposal that was ultimately selected by Toyota. Numerous individuals worked tirelessly to make certain that our proposal was competitive, that all issues were addressed, and that Toyota felt welcome and had the best possible impression. The same approach and attitude apply to other opportunities, from small businesses to BRAC. When Governor Riley, Mayor Spencer, Congressman Cramer, County Commission Chairman Gillespie and other key organizations work together as a team, as they always do on any economic opportunity, Huntsville/Madison County is hard to beat. The role of the Chamber of Commerce is to coordinate the process, and we are able to rely on a team of elected leaders and allied organizations which are second to none.
Don Nalley, Vice Chair - Image Development / TRC,
Senator Shelby and Senator Sessions, working with Congressman Cramer, provide outstanding leadership, particularly in support of programs for Redstone Arsenal, NASA and community infrastructure. Preparation is always important – the numerous recent business announcements in Cummings Research Park, for example, were made possible because Mayor Spencer and the City of Huntsville planned and developed CRP. Another key element of the economic development team is Huntsville Utilities, which along with the Tennessee Valley Authority provide both economic development assistance and utility support. The Alabama Development Office, the Huntsville/ Madison County Airport Authority, North Alabama Industrial Development Association and Economic Development Partnership of Alabama are among the other always reliable economic development partners for Huntsville/Madison County. This edition of Initiatives describes some of the key organizations and individuals who make the process in Huntsville/Madison County work so effectively, time and again. From Mayor Spencer’s vision for Cummings Research Park and the City’s investment in economic development to Congressman Cramer’s incredible influence in addressing business prospects’ issues, from the marketing skill of Governor Riley and the always reliable support of the Alabama Development Office, to the dedication and leadership of Chairman Gillespie, you’ll learn more about their perspectives and their roles in economic development. The next time a business announcement is made for the Huntsville area, or the next time you see our community ranked highly for economic performance, you can be certain that these key leaders and organizations worked hard to bring success to our community and state. Economic development truly is a team sport!
Brian Hilson President & CEO Chamber of Commerce of Huntsville/Madison County
8
Brad Jones, Chair, Crestwood Medical Center Evans Quinlivan, Chair-Elect, First American Bank Dave Hargrove, Immediate Past Chair, AT&T Tommy Beason, Chamber Foundation Chair, retired Herman Stubbs, Secretary/Treasurer, Colonial Bank Irma Tuder, Vice Chair - Economic Development / Strategic
April 2007 Initiatives
Main Street Strategies
Chuck Allen, Vice Chair - Investor Relations, The Boeing Co. Jim Bolte, Vice Chair - Workforce, Toyota Motor Manufacturing Alabama, Inc.
Ron Klein, Vice Chair - Small Business, Belzon Ralph Malone, Vice Chair - Research & Information Services, Triana Industries, Inc. Beason & Nalley, Inc.
Chairman Mike Gillespie, Chair-Appointed, Madison County Commission
Joe Ritch, Chair-Appointed, Sirote & Permutt, P.C. Mayor Loretta Spencer, Chair-Appointed, City of Huntsville Tom Young, Chair-Appointed, Qualitest Pharmaceuticals Brian Hilson, President/CEO, Chamber of Commerce of Huntsville/Madison County
Elected Board
Joe Alexander, Camber Corporation Clayton Bass, Huntsville Museum of Art Frank Caprio, Lanier Ford Shaver & Payne John Cooper, Avocent Corporation Derrick Copeland, Applied Data Trends, Inc. Kerry Fehrenbach, Intergraph Karen Stanley Fleming, Stanley Construction Co., Inc. Dick Fountain, FPH Financial Services, LLC Dr. Frank Franz, University of Alabama in Huntsville Ron Gray, Gray Research, Inc. Dr. Greg Gum, Radiology of Huntsville, P.C. Bill Gurley, SAIC Jeff Hamilton, The Orthopaedic Center Tom Hancock, Booz Allen Hamilton Tharon Honeycutt, MSB Analytics, Inc. Dr. Eric Janssen, SportsMed Orthopaedic Surgery & Spine Center Dr. Robert Jennings, Alabama A&M University Charlie Kettle, First Commercial Bank Frederick Lanier, J. Smith Lanier & Co. Dan Montgomery, Northrop Grumman Caroline Myers, Foreign Language Services, Inc. Jim Owens, Regions Bank Jerre Penney, Bill Penney Toyota Pete Schofield, SPARTA, Inc. Scott Seeley, Regions Bank Jan Smith, System Studies and Simulation, Inc. (S3) David Spillers, Huntsville Hospital Tom Stanton, ADTRAN Sandra Steele, Enfinger Steele Development, Inc. Paula Steigerwald, Huntsville Botanical Garden Al Sullivan, consultant Gerald Toland, Redstone Federal Credit Union Gail Wall, Beason & Nalley, Inc. Bill Watson, retired John Wilmer, Wilmer & Lee, P.A. Dr. Ernie Wu, ERC, Incorporated
c o m m u n i t y p ro f i l e
TOP 10 EMPLOYERS
City of Huntsville
City of Madison
Huntsville Metro Area
U.S. Army/Redstone Arsenal . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14,601
Population
Madison County
2000 Census
276,700
158,216
29,329
342,376
Huntsville City Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000
2005 Estimate
298,192
166,313
35,893
368,661
The Boeing Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000
Huntsville Hospital System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,126
NASA/Marshall Space Flight Center . . . . . . . . . . . . . . . . . . . . . . . .2,555 Households 2000 Census
CINRAM, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,500
109,955
66,742
11,143
134,643
Avg. Household Income
$57,220
$55,856
$72,432
$55,343
City of Huntsville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,199
Per Capita Income
$23,091
$24,015
$27,821
$22,073
Madison County Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,150
Sanmina-SCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,500 Intergraph Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,450
Income
Source: U.S. Census Bureau (www.census.gov)
Source: Chamber of Commerce of Huntsville/Madison County
Aerospace & Defense Huntsville/Madison County is home to the U.S. Army Redstone Arsenal and NASA’s Marshall Space Flight Center which combine to drive a thriving aerospace and defense technology industry. Over 14,500 direct DoD and 2,500 NASA employees manage some of the country’s most important and sophisticated technology programs including missiles, aviation and space exploration. More than 250 companies employing an additional 27,000 workers support the local aerospace and defense industries.
Research & Technology
For more information visit: HuntsvilleAlabamaUSA.com
10
April 2007 Initiatives
Huntsville’s Cummings Research Park has earned a reputation as a world center for technology development. The second-largest science and technology park in the U.S., Cummings Research Park is home to more than 285 companies and 25,000 people involved in technology research and development.
Let the game begin... Volunteers will soon be bringing the Chance your way. Many Properties sold out last year. Be the first to purchase your Real Estate before they disappear. The Community Chest of opportunity will be open to all Chamber members April 19 and locked June 21.
12
April 2007 Initiatives
2007 Total Resource Campaign Chamber of Commerce volunteers ready to open the Community Chest of opportunity
T
There are so many ways for Chamber of Commerce of Huntsville/Madison County companies and industries to be a part of the team and win in the 2007 Total Resource Campaign – CHAMBEROPOLY. Whether it is through making new business contacts, networking with peers or making better budget decisions that add actual value to companies’ marketing and promotional efforts, one thing is guaranteed: the TRC will be fun and beneficial to all involved. To the winners go the spoils – a little good-natured ribbing of players, and, perhaps most importantly to some, the thrill of victory and knowing their efforts and support helped bring economic prosperity to our community.
Game On TRC Chairman Don Nalley, Beason & Nalley; vice-chairs Frank Caprio, Lanier, Ford, Shaver & Payne; Elizabeth Morard, Qualis Research; Andy Kattos, ServisFirst Bank; Scott Seeley, Regions Bank; and Harry Waugh, Regions Bank, will lead 20 teams of volunteers representing a variety of industries and companies throughout the community over a nine-week run. These teams will offer Chamber sponsorship opportunities and memberships to a wide range of small and large companies. The TRC is designed to allow companies to better align their marketing plans with the Chamber’s sponsorship
Mission Accomplished: 2006 Total Resource Chair Scott Seeley announces that the 2006 goal of $600,000 was reached. The 2006 TRC ultimately totalled $935,000 in commitments from local companies and organizations.
opportunities and to maximize their return on investment. The popularity of the TRC continues with unprecedented interest – even before the volunteers get ready to pass go. Last year, volunteers were given a goal of $600,000, which they met then exceeded by another 50 percent to $935,000. Many sponsorships sold out before the campaign ended. This year, more than 100 volunteers will try to achieve a goal of $1 million by June 21. Money raised through the campaign will fund further economic development for our community.
Maximizing Your Investment In previous years, companies may have sponsored an event earlier in the year that may not have been as strategic as an event later in the year. The problem was the company may have already exceeded their sponsorship/advertising budget by the time the more strategic opportunity was presented. So the TRC teams will work with companies to help them choose products and opportunities that best meet their marketing needs for the entire year – all at once – helping the companies make more strategic use of their advertising/sponsorship dollars. “This campaign provides more companies, both large and small, access to other community leaders, a focused audience for their marketing efforts and the ability for companies to plan in advance. From one person home offices to large international corporations and everything in between, our Chamber offers a product that is right for continued on page 14 Initiatives April 2007
13
Total Resource Campaign, continued from page 13
them and will help them reach their business goals,” said Loren Traylor, vice president of investor relations for the Chamber and director of the TRC program.
Community Recognition Last year’s TRC top producer, Carrie McCrillis, regional district manager for Kelly Services, praised the program and its results. “It is just a great way to help other businesses. I felt like I really helped these companies accomplish their missions.” McCrillis said. “Equally as important, I was able to increase the exposure of the business I represent throughout the McCrillis community.” Brad Jones, chair of the Chamber’s board of directors, said CHAMBEROPOLY is a worthwhile investment for companies. “The TRC is an excellent way for companies to get recognition and get their names
And the Award Goes To: 2006 TRC Chair Scott Seeley recognizes Regina Underwood, A Realty Group, as the 3rd top producer in last year’s Total Resource Campaign. Carrie McCrillis of Kelly Services was the top producer, and Lee Lester with Regions Bank was the 2nd top producer.
associated with some very important events that occur in our community. This type of exposure is valuable and gives the companies the opportunity to be associated with some of the Chamber’s signature events,” he said.
Benefiting the Community Don Nalley commented, “Participating in TRC is a huge community involvement effort that benefits those involved, the community and the Chamber and ultimately the economy of our community, which means everybody wins. The participants network, creating individual business opportunities, and the businesses they solicit receive what we at Beason & Nalley consider one of the best marketing investments we can think of for our development dollars,” Nalley said. “So the fulfillment of being involved in a worthwhile community program is enough, but there is much more in the Chamber's annual Total Resource Campaign.” Nalley Training for new volunteers is set for April 18-19 at the Chamber. Please contact Loren Traylor at 535-2028 for more information about volunteering or for sponsorship information. You may also visit www.HuntsvilleAlabamaUSA.com and click on the CHAMBEROPOLY logo. • 14
April 2007 Initiatives
Chamber of Commerce of Huntsville/Madison County
Staff 2007 Brian Hilson, president & CEO John Southerland, communications director Laura Kendrick, executive assistant
Economic Development Ethan Hadley, VP, economic development Steve Finnell, director, industrial development Rick Davis, director, Cummings Research Park Amy Locke, industrial development assistant Danielle Moran, economic development specialist
Governmental Affairs Mike Ward, VP, governmental affairs Tina Leopold, program assistant
Workforce Lucia Cape, VP, workforce Debra Dunbar, director, Launch Program Davion Walker, workforce development coordinator
Investor Relations Loren Traylor, VP, investor relations Jenni Jeffers, director, small business/membership services
Donna McCrary, investor relations coordinator
Lillie Ben, events coordinator Amber Barnes, events coordinator Terrie Ledbetter, membership sales representative
Research & Information Services Ken Smith, director, research & information services
Kristi Sherrard, publications/graphic design specialist
Hiroko Sedensky, information services specialist
Judith Short, information services assistant Cheryl Crowe, resource desk coordinator
Finance & Administration Ken Williams, director, finance & administration
Desman Holt, IT manager Summer Behel, accounting specialist Ginny Buie, financial assistant Joe Watson, facilities supervisor
Associated Organizations & Staff Leadership Huntsville/Madison County Sarah Savage, executive director Allison Gregg, program/PR manager Mary Stewart, program coordinator Allison Bowman, administrative coordinator
Northeast Alabama Regional Small Business Development Center Dr. Larry Crowson, director, SBDC Cassandra Zeigler, assistant director Hanson Howard, business counselor Patsy Nayman, executive secretary Mary Jane Fleming, secretary
Chamber of Commerce of Huntsville/Madison County 225 Church Street, Huntsville, Alabama 35801 / p 256-535-2000 www.HuntsvilleAlabamaUSA.com Initiatives April 2007
15
Thanks to our HREGI investors Development Partners
($50,000+ invested annually: Public Sector)
City of Huntsville Tennessee Valley Authority Huntsville Utilities
Madison County Commission Huntsville Hospital
Huntsville/Madison County Airport Authority
President’s Circle ($25,000 - $49,999 invested annually)
ADTRAN AT&T
Chairman’s Council
($50,000+ invested annually: Private Sector)
Toyota Motor Manufacturing Alabama, Inc. and Regions Bank
Colonial Bank Compass Bank Crestwood Medical Center Redstone Federal Credit Union The Boeing Company The Huntsville Times Wachovia Chamber Trustees ($10,000 - $24,999 invested annually)
Applied Research Associates, Inc. Avocent Corporation Beason & Nalley, Inc. Bill Penney Toyota Blue Cross & Blue Shield of Alabama Booz Allen Hamilton Camber Corporation CINRAM, Inc. City of Madison COLSA Corporation Express Jet Huntsville Area Association of Realtors Huntsville/Madison County Builders Association, Inc. Intergraph Corporation Lamar Outdoor Advertising Northrop Grumman Panalpina, Inc. SAIC Siemens VDO Automotive SPARTA, Inc. SportsMed Orthopaedic Surgery & Spine Center Teledyne Brown Engineering, Inc.
Progress Partners ($5,000 - $9,999 invested annually)
AEgis Technologies Analytical Services, Inc. Applied Data Trends, Inc. BAE Systems Balch & Bingham, LLP BASF Catalysts LLC CapitalSouth Bank Coldwell Banker/McLain Real Estate Colonial Properties Consolidated Construction Dynetics Enfinger Steele Development, Inc. 16
April 2007 Initiatives
ERC, Incorporated First American Bank First Commercial Bank General Dynamics HiWAAY Internet Services International Diesel Intuitive Research and Technology Corp. J. Smith Lanier & Co. Jerry Damson Honda Acura Keystone Foods Corporation Lanier Ford Shaver & Payne LG Electronics Alabama, Inc. Main Street Strategies NAI Chase Commercial Realty Parker Hannifin Corporation Pratt & Whitney Rocketdyne, Inc. Radiology of Huntsville, P.C. Samples Properties Sirote & Permutt, P.C. SOUTHBank Stanley Associates Superior Bank System Studies and Simulation (S3) The Orthopaedic Center The Surgery Center of Huntsville Turner Universal Construction WAFF-TV Wilmer & Lee, P.A. Yellowbook Anonymous
Take Stock
(<$2,500 invested annually)
Alabama Psychological Services Center; Allied Photocopy, Inc.; Appliance Direct; Arnold Hornbuckle; Armstrong Relocation; AT&T’s Real Yellow Pages; Available Plastics; Bama Jammer Promotions; Bevilacqua Research Corp.; Bill Johnston, Jr.; Blue Creek Investment Partners; Charles G. Robinson, attorney; Crabtree Rowe & Berger, P.C.; Crestani Family Medicine; Davidson Technologies; Dick, Riggs, Miller & Stem, LLP; Foreign Language Services, Inc.; G.W. Jones & Sons; General & Automotive Machine Shop, Inc.; Huntsville Marriott; Infinity Technology; Inergi Design Services; Mercer and Associates, P.C.; O & S Enterprises, Inc.; OMI, Inc.; Padgett Business Services; Park Supply Co.; Pearce Construction; Phoenix; QuantiTech, Inc.; Renasant Bank; Robert Trent Jones Golf Trail at Hampton Cove; Russ Russell Commercial Real Estate; S & S Photography; Sellers Photo; Snelling Personnel Services; Southwest Research Institute; SRS Technologies; Stanley Construction; State Farm’s Marshall England; Suzuki of Huntsville Driving 2000; System Technology Associates; Taos Industries; Technology Management Training; Tetra Tech, Inc.; Vulcan Heating and Air Conditioning; Wellness is Health; West Huntsville Land Co.; Westwind Technologies Corp.; White, Fleming & Co., P.C.; Winters & Associates
Progress Investors ($2,500 - $4,999 invested annually)
3D Research Corporation Averbuch Realty / Averbuch Enterprises Ball Aerospace Baron Services Belzon Bentley Pontiac / GMC / Cadillac / Saab Bradley Arant Rose & White Century Automotive Chapman Sisson Architects Cintas Corporation Currie Systems DESE Research, Inc. Fountain Parker Harbarger & Associates Fuqua & Partners Gray Research, Inc. Huntsville Tractor & Equipment, Inc. Jacobs ESTS Group JH Partners Architecture & Interiors Johnston, Moore, Maples & Thompson Kelly Services Kudzu Productions Lamb Commercial Services, Inc. Madison Research Corporation Madison Square Chrysler/Jeep Mercedes Benz of Huntsville North Alabama Gas District Radiance Technologies, Inc. Science & Engineering Services, Inc. (SESI) The Heritage Club Torch Technologies Weichert Realtors – The Executive Group Wesfam Restaurants, Inc. – Burger King Westar Aerospace & Defense Group WHNT-19 Wilson Lumber Woodland Homes of Huntsville Woody Anderson Ford Initiatives April 2007
17
Teamwork is Everything in Economic Development
S
Successful economic development results from the seamlessly orchestrated input of many. Economic development is a team sport, and winning is all about teamwork. There are many organizations that work with the Chamber and comprise the Huntsville/Madison County team. As you enter the Chamber building, just to the right of the front reception desk, there hangs a picture of our team’s starting line-up. In addition to Chamber leadership and staff, there are many faces from the front line of community economic development including: the City of Huntsville, represented by Mayor Loretta Spencer; Madison County, represented by County Commission Chairman Mike Gillespie; and scores of other representatives of other key players such as our congressional delegation, the Huntsville/
18
April 2007 Initiatives
Madison County Airport Authority, the North Alabama Industrial Development Association, Huntsville Utilities and the Tennessee Valley Authority. Not pictured are our statewide partners – the Alabama Development Office (ADO) and the Economic Development Partnership of Alabama (EDPA), but, they too are starting players. All these organizations have unique talents and resources that they bring to bear in the economic development of our community. Our “bench” is also deep and strong with more than 160 private companies investing in our Huntsville Regional Economic Growth Initiative (HREGI). It consists of a variety of special teams, including universities and community colleges, banks, law firms, real estate and temporary staffing agencies and the list goes on. During the course of any new busi-
ness site location process, there are countless opportunities for community business leaders to engage and participate in the recruitment effort. Often, the prospect company will request to meet with a sampling of our existing companies in their particular industry. To the credit of a good many of our business leaders, they will meet with potential new companies to discuss workforce, business environment and other key issues, even when the company is a direct competitor. We are certainly fortunate to have so many people in our community who “get” economic development and get involved in it for the greater common good. In economic development, a key strategy in the game plan is confidentiality. That is why we use a project name instead of referring to the company name during the course of a project. For nearly a year, the Verizon Wireless project was referred to in communications and correspondence as Project Karat. Toyota was Project Diamond, and so on. Prospects expect confidentiality for a number of reasons, not the least of which is keeping their competition in the dark. All too often, someone in the site selection process feels the urge to divulge confidential information in order to further their own agenda. This was certainly the case in late 2002 in our neighboring state of Georgia when the state’s governor announced a Daimler Chrysler van manufacturing project. Although this may have seemed like a game winner in an election year, there were a couple of key strategic errors, namely there was no signed deal on the table and no Daimler Chrysler representative in attendance at the “announcement.” Let history be the judge: that governor is the former governor and there is no Daimler Chrysler van manufacturing facility in Georgia. For better and sometimes worse, large economic development projects usually require that many teammates, due to their particular expertise, take the field to tackle particular issues related to project specifics. It is no small feat to maintain confidentiality over the course of a project when it involves a lot of people over a long period of time, but it is absolutely imperative to maintain trust
S & S Photography
Working Together in Economic Development: Some of the key team members pivotal to economic development in Huntsville/Madison County include: (back L-R) Mike Ward, Ethan Hadley, Rick Davis, Rick Tucker, Brooks Kracke, Tate Godfrey, Brian Hilson, Joe Vallely, Steve Finnell, and Ken Smith; (front L-R) Bill Pippin, Tommy Beason, Brad Jones, Chairman Mike Gillespie, Mayor Loretta Spencer, Jim Link, Butch Massey, and Jim McCamy. The team was recognized by Southern Business & Development Magazine for supporting employment growth through new and expanding businesses.
between the community and the prospect. Keeping it mum is the best sign of teamwork continuing off the field. Confidentiality is imperative for corporate projects; however, economic development involves more than bringing corporations to the area. Indeed, a non-corporate economic development project resulted in the largest job announcement to date in Huntsville/ Madison County. The 2005 Base Realignment and Closure (BRAC) process is an excellent example of the teamwork that benefits our community and our region. Our success in BRAC 2005 resulted from the ability of our core team to recruit surrounding community and county players in Alabama and Tennessee. Team building and planning began well in advance of 2005, and it continues today in the form of regional efforts to attract thousands of BRAC-related employees whose positions will move to Huntsville between now and the end of 2011. Even when there is a common goal, economic development teamwork is particularly challenging when it involves crossing state lines. We can be proud of the talent, commitment and achievements of our team players to the north, south, east and west of Redstone Arsenal. Delegations of Alabama and Tennessee federal and state elected leadership, mayors, county commissioners, chambers of commerce, economic development agencies, companies and so many other dedicated team members put forth the effort that led to success in BRAC thus far. Well, BRAC was 2005. In economic development as in sports, fans want to know what you have done for them lately. Fortunately, through the continued execution of the HREGI game plan, in 2006 the Huntsville/Madison County team worked together to put over 4,600 jobs on the score
board. Once again, we led all Alabama counties in job creation. When you post these kinds of numbers in successive years, it causes people to take notice. Governor Bob Riley put Huntsville’s recent successes in perspective when he commented at our recent annual pep rally, “You aren’t just winning. You are running up the score!” Thanks for the encouraging words, Coach, and here’s to another banner year in 2007! • Ethan Hadley
Initiatives April 2007
19
5 1
Leaders in Economic Development Mayor Spencer, City of Huntsville Enjoying Fruits of Economic Growth
H 2 3
Huntsville Mayor Loretta Spencer has helped lead the City to phenomenal economic growth during her three terms. Huntsville/Madison County has led Alabama in jobs announced in 14 of the past 17 years. Spencer was elected to her third term in 2004 and has led and helped direct many positive changes during her tenure and overseen some of the most dynamic growth eras in the City’s rich history. Among them:
ensure that we have a competitive quality of life in our community. This includes:
• Addition of new retail centers and industry, including a Target Distribution Center, Toyota’s V-8 engine plant and the future state headquarters for Verizon Wireless
The third component is employing a full-time economic development director. His duties include:
• Construction of new schools and growth and diversification of the City’s economy • Revitalization of the downtown area of Huntsville, including the addition of a convention hotel and renovation of the area around the Von Braun Center and Big Spring International Park Spencer also played an integral role in the expansion of Cummings Research Park – which has now become the second largest research park in the United States. Because of her vital role in economic development, the Initiatives staff for the Chamber of Commerce of Huntsville/Madison County asked Spencer a series of questions concerning her thoughts about economic development and utilizing partners in the community to increase economic opportunities in Huntsville and Madison County…
4 Q: What is the City’s role in increasing economic development opportunities in the City? The City’s role involves three key areas. The first is assuring that necessary services are in place. This includes basic infrastructure such as water, sewer, electrical, streets and drainage. In addition, the City seeks to maintain an inventory of attractive industrial sites and industrial parks. Also, we are committed to the ongoing development of Cummings Research Park. The second focus is to provide amenities which will
• A well-funded educational system • Arts, entertainment, cultural events & activities • Sports activities • Vibrant downtown • Parks, greenways & open space
• Tracking industrial & commercial prospects • Guiding prospects through the local development process • Working closely with the Chamber & its economic development staff
Q: How does the City utilize its community partners in achieving those goals? The City supports and provides major funding for the Chamber and its economic development strategies which include: • Direct marketing to national location consultants, state-level & allied organizations • Prospect hosting, including business & diplomatic representatives • Community/state incentive proposals • Existing business consultation • Domestic & international business events • Promotion of research & industrial parks • Retail & commercial business recruitment • Workforce recruitment • Workforce assessments & marketing • Development of marketing materials • Direct mail campaigns • Media & public relations – image promotion • Audio visual productions • Web site (www.HuntsvilleAlabamaUSA.com) • Economic development center (public access)
6 Q: What are the things that are unique about Huntsville that help increase economic development opportunities? As noted above, we strive to maintain an excellent quality of life in our community. As a result, we have attracted progressive, highly-educated and involved residents. Huntsville residents come from around the world thus creating a diverse and vibrant community. In addition, we have an excellent healthcare system and a low cost of living which not only attracts workers, but also makes them want to stay here when they retire. We also enjoy a temperate climate and the convenience of a beautiful and scenic geographic region.
Q: What are the plans for Cummings Research Park and how has its development increased economic development for the City? Cummings Research Park (CRP) is one of the world’s leading science and technology business parks and serves as a model for transforming research into business success. It has a unique and vibrant mixture of Fortune 500 companies, local and international high-tech enterprises, U.S. space and defense agencies, a thriving business incubator, and competitive higher-education institutions. It currently has approximately 500 acres still available for development. Understandably, we are committed to managing this special resource in a way that maximizes its role in stimulating growth and investment in the community. As a result, we may consider acquisition of additional property to help ensure its place in our long term economic strategy.
Q: What are some of the goals the City has regarding economic development over the next year and in the years to come? Our goals for economic development include: • Continue to invest in our educational system
7
• Continue to manage and expand our industrial & research parks • Continue our downtown revitalization efforts • Continue innovative strategies such as tax increment financing to fund needed public improvements
Q: How will BRAC impact the City and how should the community partners help capitalize on these unique opportunities? On a positive note, BRAC will result in an inflow of jobs and opportunities which will result in increased payrolls, new construction and increased tax revenues. However, with these opportunities will come several challenges. These include meeting basic infrastructure demands, providing adequate educational facilities as well as ensuring that our transportation system keeps pace with growth. In addition, we want to maintain and expand our parks and open space system. As in the past we will continue to foster and encourage public-private partnerships and work together to meet the challenge of this special opportunity for quality growth and expansion.
Q: One of the things that is most difficult for government is being able to handle the issues of today while having the foresight to plan for tomorrow. How have you been able to do that in Huntsville? We have been fortunate to have many forward thinking leaders in the past. These leaders were proactive rather than reactive, and many of the successes we enjoy are a direct result of their vision. In addition, they set the stage for us to continue with a similar “can do” attitude. This spirit is evident today as we emphasize long-range planning by City, Chamber and various community partners to help ensure a bright future for this very special community. •
(1) Mayor Spencer helps Kommerling executives celebrate the expansion of their facility in Chase Industrial Park. (2) The Embassy Suites, which houses Ruth’s Chris Steakhouse, opened in November 2006. Adjacent to the Von Braun Center, the hotel is evidence of Mayor Spencer’s commitment to downtown development. (3) Tim Singleton and Evans Quinlivan join Mayor Spencer at a ribbon cutting for First American Bank at the Big Spring Summit. (4) Huntsville Municipal Building (5) Mayor Loretta Spencer, shown at a recent Verizon Wireless groundbreaking event, has played a pivotal role in helping the city attract and land major economic development projects. (6) At 3,843 acres, Cummings Research Park is the second largest research park in the United States and fourth largest in the world. (7) Gov. Bob Riley and Mayor Loretta Spencer join COLSA executives Al Sullivan (left) and Francisco Collazo during ground-breaking ceremonies for COLSA’s 80,000 square foot headquarters building in Cummings Research Park.
Initiatives April 2007
21
Madison County Commission: Working Together with One Voice
F
For the third straight year Huntsville/ Madison County is the state’s leader in announced jobs. Maybe once could be an accident – a statistical anomaly. But economic and financial forecasters and business developers looking for trends can wrap themselves around the fact that Huntsville/ Madison County has been number one in this state in 14 of the past 17 years. That is no accident. Many of the largest and most well known government contracting companies are part of the new and expanding job growth, including names such as Boeing, EADS North America, Lockheed Martin, Raytheon Company, Northrop Grumman, and SAIC, to name just a few. Add in names like Toyota and Verizon Wireless, which will open its
22
April 2007 Initiatives
1,300 employee state headquarters in Huntsville in 2007 (the largest job announcement in Alabama in 2006), and it becomes clear that Huntsville/Madison County is a hotbed of growth both in the research and development and manufacturing sectors. But how does that happen? One of the most critical elements, according to Madison County Commission Chair Mike Gillespie, is teamwork. It takes a team of dedicated leaders and organizations to work together to ensure that every strategic economic development opportunity is realized. Major economic growth and expansion can include working with numerous organizations, federal, state and local government and elected officials. All have a role to play and all are vital to bringing in new jobs to the area, which
means any given opportunity may involve working with state and federal leaders, the city, the county and the utilities. Key job announcements such as Toyota and Verizon have involved not only those organizations and the leadGillespie ership associated with those entities, but also organizations such as the Alabama Development Office and the North Alabama Industrial Development Association. And it has to happen with dedicated, focused leadership and foresight. In other words – it doesn’t happen overnight. “Teamwork really is the key to it,” Gillespie said. “We are only one member of
Chase Industrial Park is a development of the Madison County Commission.
the team and the Chamber of Commerce has served as the focal point for this team.” Gillespie said the multiple organizations and partners working together as a team have played a pivotal role in the growth in Huntsville/Madison County, home to NASA’s Marshall Space Flight Center; Redstone Arsenal; U.S. Army Aviation and Missile Command (AMCOM); PEO Aviation; PEO Air and Missile Defense; the Space and Missile Defense Command (SMDC) and more than 20 Fortune 500 companies with headquarters here. “I think one of the ways we’ve had so much success is the fact that all of the team members have had the same goals and vision. It really makes a tremendous difference when everyone works together and has one voice as a community,” Gillespie said. That cohesive economic development process has been prevalent over the years and has helped pave the way for quantitative growth, he said. “We are benefiting from the foresight of community leadership and partnerships long before I got involved. It is about putting the community first.” Consequently, the area continues to be a leading technological center of high tech research and manufacturing in such fields as computing equipment, telecommunications, space vehicles, defense weapons and rocket propulsion. “None of our growth happened by chance, but is the result of the vision and action of people who strive to maintain and improve the quality of our life in this cosmopolitan community.” One of the areas where the Madison County Commission has played a vital role is in helping launch the North Alabama International Trade Association (NAITA) more than 23 years ago. NAITA’s original mission was to help existing companies create more jobs through increased foreign trade. Since then, NAITA has been critical to increasing the area’s economic growth and opportunities through networking events hosted and provided by NAITA and helped pave the way for area companies, small
and medium, to increase business overseas, according to Anne W. Burkett, director of planning and economic development for the commission. “We started 26 years ago with 30 companies involved – now we’re over 300,” she said. NAITA is a non-profit membership organization that is focused on increasing international trade activity and economic expansion and growth opportunities in North Alabama. Burkett said NAITA’s mission is to be a catalyst for trade development and growth opportunities in North Alabama and the surrounding region. And again, Gillespie said, it comes down to teamwork. “Whatever is needed and whoever we need to bring to the table, we know that our community economic development partners, led by the Chamber, will come forward as one team with one mission.” •
Initiatives April 2007
23
ADO: A Key Team Member in Alabama’s Success in Economic Development
A
Alabama is on a roll when it comes to attracting and retaining world-class businesses. The state’s success is the result of partnerships developed among economic development allies in the state, communities, counties and private business. “The state will always work hard to be an active partner with our local communities and with industries in growing our economy and creating new jobs for our citizens,” explained Alabama Gov. Bob Riley. “The efforts to boost economic development in our state have given Alabamians new opportunities and a better quality of life than ever before.” Riley
24
April 2007 Initiatives
Alabama places an emphasis on its competitive advantages such as strong partnerships among the Alabama Development Office, the Economic Development Partnership of Alabama, and regional, corporate and local partners such as the Chamber of Commerce of Huntsville/Madison County. These partnerships are vital both in terms of marketing the state and how project incentives are prioritized. The partnerships have paid off with major announcements in the Huntsville area such as the Hudson-Alpha Institute for Biotechnology, which will open in September and employ more than 900 people, the 1,300-employee Verizon Wireless project, and the Toyota engine plant. ADO Director Neal Wade explains, “We can be much more successful if we utilize the
corporate dollars, the local dollars and the state dollars in a coordinated fashion to win these projects.” Wade said the company’s comfort level with the community makes a major difference when it comes to being successful in economic development. “Many times, relationships end up being an important part of the process. It’s not always the tipping point, but it certainly helps you get to the point where you can put something like incentives in that is the tipping point,” he said. And successful results are what the state is seeing more than ever. ADO is currently working on nine projects that each have the potential of bringing more than 500 jobs to the state, and some have more than 2,000 jobs, Wade said. Alabama has a good shot at
Courtesy of Governor Riley’s office
landing every one of the projects, he said, and the potential ripple effects will touch everyone in the state. Riley said that the state has developed an international reputation. “Alabama is the ideal setting for both new and expanding industrial projects,” he said. “We have become a destination state for new industries. People around the world today are beginning to recognize that if you want your business to be the most cost effective and you want to be the most efficient, then you need to locate in Alabama.” In an effort to provide even more opportunities to Alabamians, Riley has sought to expand the definition of economic development beyond the traditional project recruitment approach. More than 70 percent of the state’s new jobs are created from existing industry. Trade involving Alabama companies is also becoming a great contributor to the state’s growth and small businesses are growing rapidly. The film industry is also rapidly becoming a major contributor to Alabama’s economy, netting more than $20 million for the state’s economy in 2005 alone. “Of the 3,000 businesses in Alabama that sell their products overseas, more than 75 percent are small and medium-size companies,” Riley said. ADO led a delegation of business and
Boom Continues: Gov. Bob Riley presents Verizon Wireless officials Jim McGean and Blake Messinger with the Alabama State Seal. Verizon Wireless has started construction on a 152,000 square-foot facility that will bring up to 1,300 jobs to Huntsville/Madison County.
government leaders to India in February to promote the state as a gateway for trade and investment in North America. “We know that opportunities exist in biotechnology, automotive, aviation, medical equipment, telecommunications, mining, and professional services,” Wade said. “We feel it is vital for ADO to work with our business community in order to tap into this growing marketplace. This trip allowed us to accomplish that goal.” The trip included meetings with Indian commerce and government officials, networking events with the Indo-American Chamber of Commerce, receptions and promotional events. India emerged last year as a
target for Alabama's business recruitment efforts. India’s ambassador visited Alabama, the India-based technology company ITC Limited opened a subsidiary in Birmingham, and the Alabama India Business Partnership was formed to promote Alabama to India. Alabama’s economic efforts traditionally have targeted other countries. For instance, Riley has led industrial recruitment trips to Korea, China and Europe, including one to Germany and Austria in February. In late November, a delegation of nearly 30 Alabamians traveled to Seoul, South Korea, for an Alabama/Korea Business Seminar and left with commitments from many automocontinued on page 31
Initiatives April 2007
25
Helping Bring New Jobs To North Alabama Part of Congressman Cramerâ&#x20AC;&#x2122;s Role Congressman Bud Cramer is an important partner in the economic development of North Alabama. He plays an integral role in creating jobs for the area, and he is particularly effective in promoting the needs of Redstone Arsenal through his position on the House Appropriations Committee. The Initiatives staff asked Congressman Cramer to comment on his role in economic development.
O
One of my most important roles as your congressman is to work to bring new jobs to North Alabama. While many members of Congress are not as engaged in economic development as I am, it is a part of my job that I enjoy. I believe that I am an asset to our eco-
nomic recruitment team both here in Madison County and throughout my congressional district. I have worked with our economic developers, our local officials, Gov. Bob Riley, and our community leaders to attract compaCramer nies that provide quality jobs to our area. My position on the House Appropriations Committee also allows me to see that our communities have the industrial parks and infrastructure needed to attract these jobs. I enjoy knocking on the doors of our prospective industries and telling them the benefits of doing business in North Alabama. CEOs and consultants know that I will be a partner with them on the federal level. This approach has been successful. I am proud to have played a role in bringing Toyota, the Hudson-Alpha Institute for Biotechnology, International Diesel, Boeing, Target, and Verizon Wireless to our community. I am in a unique position to bring people together over economic development. Through the years, I have established relationships with decision makers on the local and state level in the corporate world, and in the site consultant community. These relationships have proven valuable time and again for our area. One of the most recent and significant examples of our success is the Base Realignment and Closure (BRAC) Commissionâ&#x20AC;&#x2122;s decisions. During the years prior to this last round of BRAC, the Alabama congressional delegation planned as if we were economic developers. We knew how important Redstoneâ&#x20AC;&#x2122;s infrastructure would be to the final recommendations by the BRAC Commission. We secured funding necessary to construct the buildings that now house thousands of people who are making our nation secure. Due to the efforts of federal, state, and continued on page 28
26
April 2007 Initiatives
Illustration courtesy of HAIB
On the Way: The Hudson-Alpha Institute for Biotechnology (HAIB) will soon be a world-class center for human genome research that will improve human health through individualized therapies for diseases while providing a bridge between bioscience and entrepreneurship. HAIB is scheduled to open in September 2007. The institute is the centerpiece of Cummings Research Parkâ&#x20AC;&#x2122;s biotech campus, and it will create over 1,000 new jobs.
Initiatives April 2007
27
Helping Bring New Jobs,
Photo courtesy of Toyota
continued from page 27
local leaders, North Alabama was a tremendous winner in the most recent BRAC round. Only a small number of regions around the country were given this opportunity. The people in North Alabama have worked for years to prepare for this round of BRAC, and the dividends are already paying off. People from northern Virginia and other areas around the country are already moving to the Tennessee Valley. After the 1995 BRAC decision, many families voiced concerns prior to their move. We need to ask these same families what they now think – I know we will hear great things about their experience in Alabama. We have
28
April 2007 Initiatives
a successful record from the past BRAC rounds and are making great strides to showcase our area to our soon-to-be neighbors. BRAC is moving forward as planned. While there have been changes in Washington, Congress remains committed to following through with the BRAC recommendations, and I will work with our delegation to ensure the funding required for this move is in place. North Alabama was selected by the Commission for missions vital to the nation’s defense, and we will be ready to accept this responsibility. Now, we need to build on our success in the BRAC process and continue to work together as a region to attract new jobs. Many site consultants and industry executives have told me the value of a regional approach. I have hosted a number of economic development roundtable meetings that allow the recruitment teams from across my congressional district to sit down and discuss what we are doing right along with what we should do better. The Chamber of Commerce of Huntsville/Madison County should be a leader in this effort. I am hopeful that we can reach out to our neighboring communities to plan and work in cooperation as we recruit quality jobs to our area. North Alabama has a tremendous opportunity on the near horizon as a result of the BRAC decisions. This cannot be overstated. However, we need to continue to aggressively recruit other companies in different sectors so we can further grow and diversify our region. We have attracted people and companies to North Alabama from all points across the globe, and we should continue to look for industries that add to our communities. I know that when others see what our communities have to offer, many more will decide to join us in North Alabama. I will continue to work with leaders from across the Tennessee Valley to further our region’s efforts to recruit workers and attract new companies. •
EDPA: A Key Organization for Economic Development in Alabama
T
The Economic Development Partnership of Alabama (EDPA) is dedicated to helping Alabama realize its full economic development potential. EDPA is unique in that it is the only private, non-profit statewide economic development organization in the U.S. The partnership works closely with state, regional, corporate and local organizations, such as the Alabama Development Office, the Chamber of Commerce of Huntsville/ Madison County, the North Alabama Industrial Development Association, and the Tennessee Valley Authority among others to contribute to Alabama’s economic development efforts. Through private sector support, EDPA brings additional resources that enhance Alabama’s competitiveness in economic development. Founded in 1991 by a handful of Alabama businesses, EDPA is today supported by more than 70 leading companies that are committed to the state’s long-term economic growth. EDPA has played a role in some of Alabama’s most noteworthy economic development successes, including many of those in North Alabama. EDPA worked with local partners to help recruit industries such as Toyota, Boeing, and Panalpina. EDPA also played an active role in some of the projects that have changed Alabama’s economic landscape, such as Mercedes-Benz, Honda and Hyundai. “I attribute much of Alabama’s astounding recent success to the cooperative spirit found here in the state,” says EDPA President James P. Hayes. “What sets us apart from some of our competitors is the ability of state, local and corporate econom-
ic development organizations to join forces to present a united front when competing for new business.” “Of course, Alabama is blessed with natural resources and a top-rate work force. Huntsville in particular is a shining example of what is right in our state. The North Alabama area is clearly poised for growth,” says Hayes. “We are well aware of the unique opportunities and challenges offered in the Huntsville area and look forward to continuing to be a partner in this exciting period of growth.” EDPA’s focus is on job creation – by attracting new industry, encouraging expansion of existing industry and promoting new business starts. The partnership works to accomplish these goals by marketing and promoting Alabama as a business location, providing
research and information that is important to a company’s final decision, supporting existing industry, and leading innovative programs. The partnership has two main divisions – marketing and business information. Both are essential components of an effective industrial recruitment program. Without a consistent marketing program, the state is challenged to build interest, generate leads and make the consideration list for new projects. Without credible research, it is impossible to make a compelling case that the state is capable of meeting a company’s needs.
Marketing The state depends on a professional marketing effort that can generate interest from continued on page 30
Initiatives April 2007
29
EDPA, continued from page 29
prospective companies. EDPA raises awareness of Alabama as an excellent business location and creates opportunities to build relationships with key decision makers. By consistently marketing the state the past 16 years, EDPA has helped to greatly raise awareness of the advantages Alabama offers to business and industry. Among EDPA’s marketing activities are select trade shows and other events. This year, EDPA will lead a delegation to the BIO 2007 International Convention in Boston. Huntsville is represented in this year’s efforts by the Partnership for Biotechnology Research, the Hudson-Alpha Institute for Biotechnology, and Open Biosystems, Inc., who will all have booth space in the Alabama pavilion. The Chamber of Commerce of Huntsville/Madison County is participating with other economic development organizations as a sponsor of the delegation. This is the fourth year that Alabama will have a presence at the BIO show. The state is gaining momentum as Alabama works to raise awareness of biotechnology and other intellect-intensive industries in the state.
Business Information Research and data drive the site selection process. Companies weigh a mountain of data on a wide range of factors, including labor force, available sites and buildings, access to markets, presence of potential sup-
pliers and the overall cost of operating a business. EDPA provides direct support to local, state and corporate economic developers. Research assistance is confidential and free of charge. Among services available are customized demographic reports, confidential proposal development support, a PowerPoint library featuring more than 100 premade slides on Alabama, assistance for communities with industry targeting, and cooperative research with other state economic, educational and research groups. EDPA’s Web site, advantagealabama.com, houses the state’s Alabama Buildings, Sites and Communities database. The most visited area of the EDPA Web site, the database lists 640 buildings and more than 540 sites. In 2005, the number of average daily searches exceeded 220. Huntsville’s sites and buildings include sought-after space in Cummings Research Park and Jetplex Industrial Park.
Foundations for Growth – Existing Industry Program EDPA recently established a formal existing industry program. With input from local users, it provides insight into the conditions and needs of local industry. This year, the program is taking on an industry-specific approach, focusing first on the automotive and chemical industries.
EDPA and Alabama Industrial Development Training (AIDT) are partnering to conduct interviews with automotive original equipment manufacturers (OEMs) and suppliers to gain an understanding of the state of the industry. The purpose is to codify the opportunities and needs of the auto industry and provide information to policy makers for use in decisions that affect this sector, such as infrastructure and workforce training.
Alabama Launchpad Alabama Launchpad is an innovative business plan competition formed in 2006 by EDPA and founding partners Alabama A&M University, Alabama State University, Auburn University, the University of Alabama, the University of Alabama at Birmingham, and the University of Alabama in Huntsville. The goals of Alabama Launchpad are to provide seed financing to high growth businesses on an annual basis, to create a statewide event that brings together various regional and technology-based interests, and to market and promote the economic opportunities for technology development in Alabama. Alabama Launchpad will provide seed financing to technology and highgrowth businesses with three cash prizes to be awarded annually. The Huntsville area has made a strong showing in the competition’s inaugural year. Of 61 entries, 26 teams advanced to the semifinals. Twelve of those 26 teams hailed from the two Huntsville area universities.
Other Initiatives
Check out www.advantagealabama.com
30
April 2007 Initiatives
EDPA is proud to be a founding partner and active member of the Automotive Manufacturer’s Association of Alabama and the Aerospace Industry Association of Alabama, organizations founded to increase competitiveness of these high-growth industries. The partnership continues to actively work on new initiatives to grow Alabama’s economy and support growth of existing industries and new business starts. “Alabama still has untapped opportunities,” says Hayes. “We can make a difference by continuing to strengthen the partnerships between economic development organizations, our educational institutions and the private sector as a cohesive team for progress.” • Wendy Wallace Johnson
ADO, continued from page 25
tive suppliers to visit sites in Alabama for the Kia project in West Point, Ga. In July, Gov. Riley led the largest business mission across the globe that the state has ever attempted, traveling to China, South Korea, and London, England. “We live in a global economy and we must pursue these types of partnerships so that Alabama can remain competitive internationally in the world marketplace,” Gov. Riley said. Wade said Riley’s strong sales skills and extensive business background have proven effective in these missions in attracting companies to visit and locate in Alabama. Existing industry, according to Wade, is another important backbone of the state’s communities, and ADO continues to investigate ways to help Alabama’s corporate base. He said project managers are working more closely with local economic development agencies and chambers of commerce to make communities and industries aware of incentives for in-state companies to help them grow inside the state. ADO is also enhancing its small business program to provide the tools small business-
es need to get started or grow. In an effort to better align ADO with this broader definition, the agency is in the process of realigning its resources to enhance these important economic development functions. Working with the Small Business Development Consortium, ADO’s Small Business Office of Advocacy will work to ensure that the needs and concerns of the state’s small business owners are addressed. ADO also works with communities to enhance local economies through the efforts of the organization’s Film Division. In addition to scouting locations for specific project needs, the Alabama Film Office also publish-
es a resource guide to locations for filming and technical support availability, providing the production industry with many cost-free services. The state offers a diversity of locations for filming and is affordable in terms of costs associated with filming such as lodging, catering, carpentry and other services. “Gov. Riley told us from the beginning that he wanted a diverse, broad, strong economic development program,” Wade said. “We will continue to work on all of these areas to make sure that Alabama continues to be the nation’s leader in business vitality and growth.” • Gerri Miller
Initiatives April 2007
31
Port of Partnership Port of Huntsville Fosters Economic Development in the Tennessee Valley Region and Beyond
32
April 2007 Initiatives
brings to the table or one of our economic development partners – we are one team working for the betterment of our community. Our board and staff work jointly with the Chamber and others to assess the needs of our community in order to provide the transportation services and facilities that allow our region to shine above our competitors.” Transportation costs are one of the elements that companies factor into their business plan. By offering these services businesses can move their people and products quicker and cheaper, making them sit up and take notice of these added benefits. Each facet of the Port of Huntsville plays a unique part in the growth and development of this region. The Huntsville International Airport serves more than a million passengers a year with non-stop service to 12 destinations and one-stop service to almost anywhere in the world. Adding new non-stop destinations is a collaborative effort involving city and county public officials in our region, regional chambers of commerce – and in
some cases – specific industries. Among our successes are six daily non-stop flights to Washington D.C. to support the military and aerospace industry, and more recently, non-stop service to Denver and Dulles. To accommodate anticipated growth, the airport recently launched a $60 million terminal project that includes improvements to concessions, security screening, passenger waiting area and baggage claim – all for the improvement of our customer experience. Another addition includes the extension of our west runway to 12,600 ft., making it the second longest runway in the southeast. Huntsville is the only airport in the state with non-stop international air cargo service by Panlapina to Europe, Mexico and Hong Kong, which provides a competitive advantage for our region. One of the unique facilities that our community has to market is the International Intermodal Center (IIC) located at the airport. The IIC has long been viewed as a model for other communities looking to The Port of Huntsville offers direct non-stop air cargo service to Asia, Europe and Mexico.
Photos courtesy of the Port of Huntsville
F
Forty years ago, many people could not have imagined the economic effect the Port of Huntsville would have on the Tennessee Valley region. What once stood as vast cotton fields surrounded by undeveloped land has been transformed into a modern-day, multi-modal transportation facility with a direct and indirect impact on regional employment totaling more than 24,000 jobs and exceeding $1.1 billion in payroll. The three main entities that comprise the Port of Huntsville, which encompasses more than 6,000 acres, include the Huntsville International Airport, International Intermodal Center and Jetplex Industrial Park. According to Rick Tucker, executive director, Port of Huntsville, “The foundation of the Port of Tucker Huntsville lies in providing quality and user-friendly transportation services to a diverse regional customer base as well as stimulating the economic growth of the Tennessee Valley region. This organization has a tremendous responsibility to help lead the way in our region’s transportation development and attract new business and industry to the area.” This facility serves as a catalyst for economic development for the Tennessee Valley, helping to stimulate employment by offering one-stop service opportunities that enhance business’ operations. The Port of Huntsville’s top objective is to partner with regional and state entities to foster industrial development and growth – not only to the immediate Huntsville area, but also to the entire North Alabama region and beyond. The Port of Huntsville also serves as an economic development partner alongside the Chamber of Commerce of Huntsville/ Madison County and other regional economic development entities. Tucker added, “Whether it is a project that the airport
enhance their transportation services. This center provides one central location for companies to transfer, distribute and store products and services, and is home to logistics tenants that include UPS, Panalpina, DHL, FedEx and Eagle Global Logistics. The attraction of the IIC lies in the combination of the rail, air and highway modes of transportation combined with the on-site services of U.S. Customs and Border Protection, freight forwarders and brokers. “The Port of Huntsville serves as one of the southeast’s most attractive logistics hubs, shipping and receiving both international and domestic cargo with faster turnaround times than other regional airports,” said Mitch Bradley, director, International Intermodal Center. “The economic effects of the Intermodal Center reach beyond the immediate Huntsville area to the entire Tennessee Valley region and beyond. International containers arrive at our facility destined for companies as far away as 200 miles. When it comes to international air cargo, the service radius is even larger – 600 miles or more.” The 4,000-acre Jetplex Industrial Park hosts a Bradley powerhouse of more than 60 companies, including Boeing, Siemens VDO, International Diesel of Alabama, Raytheon and LG Electronics. The convenient location of the park offers commerce and industry access to the tools necessary to
compete around the world. And the added benefit of Foreign-Trade Zone No. 83 makes it easy for park tenants to conduct international business and reach international markets. “When we have a prospect, I call upon our many partners in the community to help support our project,” stated Brooks Kracke, director, Jetplex Industrial Park. “Whether it’s supplying data or accompanying us on sales calls, our partners are also there beside us.” Our partnerships with the Chamber of Commerce of Huntsville/Madison County, the Alabama Development Office (ADO), Economic Development Partnership of Alabama (EDPA), Tennessee Valley Authority (TVA) and North Alabama Industrial Development Association (NAIDA), as well as other regional economic development entities, are vital to the future economic prosperity of the Tennessee Valley region and the state of Alabama. Not only does our community work domestically to recruit new industry, but also we have created international attention for our community at both the Paris Air Show and Farnborough Air Show. These international events are the top two gatherings of aerospace and defense companies and executives in the world. The airport, Chamber of Commerce and Madison County Commission have partnered on many of these events, furthering our community’s name in the international arena. As evidence of the Port’s regional partnerships, the North Alabama International Trade Association (NAITA) presented the organization with its prestigious 2006 Global Trade Award, which honors North Alabama organizations and companies for dedication to international trade development. The Port of Huntsville was selected for its community leadership and excellence in expanding international business by establishing the infrastructure critical to the global success of companies across the region. In addition, NAITA and the Port of Huntsville recently teamed together to support an initiative that will help our region become a more Globally Competitive Community (GC2). Officials at the Port of Huntsville have their eye on the future with current and planned expansion projects to position the complex to further its reach domestically and internationally. It is our goal to continue moving people and products forward for the betterment of our community. • Barbie Peek Initiatives April 2007
33
July 16-20, 2007 For more information call Tina Leopold at 256-535-2031
34
April 2007 Initiatives
NAIDA: The North Alabama Industrial Development Association Shares the Vision
M
More than fifty years ago Karl Woltersdorf, the manager of Huntsville Utilities, had a vision to create jobs and enhance the quality of life in North Alabama. Along with Barrett Shelton Sr., publisher of The Decatur Daily, he started what is now the North Alabama Industrial Development Association, commonly referred to as NAIDA. Since 1949, NAIDA has worked to fulfill his vision. In Huntsville and Madison County, the success of this vision is evident. Most of the first 11 months of operation of NAIDA was devoted to enticing the Air Force in establishing its Air Engineering Development
Center (wind tunnel) on Redstone Arsenal. North Alabama lost this project to Tullahoma, Tenn. Instead, as a consolation prize, the U.S. Army decided to make Huntsville the guided missile center of the United States. Today thousands are employed on Redstone Arsenal doing work for either the Army or NASA. Eventually, NAIDA grew to serve all of North Alabama, today comprising 12 counties stretching from the Mississippi state line to the Georgia state line and from Tennessee as far south as Cullman County. Targeted industries include aerospace, automotive, biotech, chemicals, defense, distribution,
plastics and wood products. According to J. Tate Godfrey, the current president of NAIDA (only the 4th President in 58 years), â&#x20AC;&#x153;Industrial Development is more competitive today than in 1949 and requires even more cooperation than ever before.â&#x20AC;? NAIDA is supported in its mission of economic development by the local power distributors of North Alabama. These organizations, including Huntsville Utilities, are the backbone of NAIDA. A representative from each distributor serves on the NAIDA board, and two representatives from the Tennessee Valley Authority also sit on the NAIDA continued on page 36
Initiatives April 2007
35
NAIDA, continued from page 35
board. TVA has made a strong commitment to economic development in North Alabama with its support of NAIDA by providing not only financial resources, but also helicopters for site visits, marketing and other technical services. The NAIDA staff works to attract and recruit industry to the area. In many ways the organization works as a marketing arm for the region. Each year NAIDA hosts luncheons for site selection consultants in Chicago, New York and Atlanta. These events are well attended and have resulted in project leads. Throughout the year, NAIDA staff also attend trade shows for targeted industries such as aerospace and automotive. Direct marketing pieces sent to companies and site selection consultants are also successful economic development tools. In addition, NAIDA conducts prospecting trips to visit companies that may have an interest in a southeast U.S. location. Cultivating relationships with these
36
April 2007 Initiatives
companies over the years has resulted in actual plant locations. In 2006 NAIDA launched a new Web site to market the region. NorthAlabamaUSA.com is a Web site designed for site selection consultants and companies considering new facility locations. Companies generally turn to the internet first for information about a community. If they cannot find necessary information, a site can be eliminated without even a phone call. NorthAlabamaUSA.com is focused on providing the data and information companies need upfront. When a company is interested in visiting North Alabama, the NAIDA staff often serves in a project management role. Everything from hotel rooms to the itinerary is coordinated by NAIDA. The staff also provides data and information to companies. NAIDA assists in the completion of requests for information (RFIs) as well as site presentations and information requests.
Courtesy of Redstone Arsenal
NAIDA continues to have a strong working relationship with the Huntsville/ Madison County Chamber of Commerce. The Chamber is a strong supporter of NAIDA and an active participant in NAIDA events. Each year the Chamber is a sponsor of the NAIDA conference, a two-day event organized to further educate local officials and economic development personnel about trends in the industry. Godfrey said, “The support provided by the Chamber of Commerce is critical to the success of our conference each year.” NAIDA frequently assists the economic development staff at the Chamber. NAIDA officials sit in on project visits by companies considering locating in Huntsville and Madison County. The NAIDA staff is able to provide an understanding of the overall region. This past year, the NAIDA staff was a part of the team that helped recruit Verizon Wireless to Huntsville. The Chamber is also a supporter of the concept of regionalism. Today companies are not just choosing a community, but an overall area. To this end, NAIDA is regionalism in action. The 12 counties of North Alabama actively work to support each other in economic development. Thousands of workers commute from the surrounding counties to work in Madison County. For many companies, this influx of workers has been a key factor in deciding to locate in Huntsville and Madison County. The future is bright for Huntsville and Madison County. The North Alabama Industrial Development Association continues to partner with the Chamber of Commerce to improve the economy of the entire region. NAIDA’s visionary founders had a noble dream, and dedicated economic developers are still at work realizing that goal. In 1950 Thomas Johnson, the first director of NAIDA, made the following statement “The expansion of industry into new plants and new locations is a slow process. There is keen competition from all over the U. S. It is going to take a lot of hard digging, research, patience and understanding, to accomplish the job ahead. It is a tough job. It requires the close cooperation of all agencies.” His words still ring true today. The job ahead is still difficult, but through valued partnerships, Huntsville/ Madison County will continue to be a community marked by smart growth and prosperity. • Garrett Sheehan
Top Employer: Redstone Arsenal, which is home to the Sparkman Center (pictured), is a major component of the Huntsville regional economy.
Initiatives April 2007
37
Huntsville Utilities, TVA Play Pivotal Roles in Regional Economic Development
Courtesy of TVA
T
The various articles in Initiatives should collectively provide a snapshot of how economic development occurs in Huntsville/ Madison County. As the reader learns more about the various economic development organizations, several themes emerge: teamwork and leadership, including the vital role played by Huntsville Utilities and the Tennessee Valley Authority in supporting economic development success. Chamber of Commerce of Huntsville/ Madison County President/CEO Brian Hilson praised both entities and emphasized their importance in economic development projects that occur in Huntsville and Madison County. “In addition to providing superior utility service to the Huntsville region, both Huntsville Utilities and the Tennessee Valley Authority provide direct economic development assistance to our Chamber of Commerce and other regional partners,” Hilson said. “Huntsville Utilities and TVA employ economic development specialists who, on a project-by-project basis, analyze the needs of each new and expanding company and provide services ranging from meeting utility requirements to infrastructure support to special incentives, where appropriate.” Owned by the City of Huntsville,
Huntsville Utilities has been an economic development driver as the area has grown from a small cotton town to a global hightech center – its leadership insisting that a foundation for that growth is in place and ensuring utilities resources are always available to promote development and progress for citizens and industry alike. Operating as an efficient, cost-effective business, Huntsville Utilities maintains a rate structure that is among the lowest in the U.S. – a great recruiting tool that stimulates both growth and discretionary spending dollars in the local economy. Huntsville Utilities provides electricity that is purchased from TVA and distributed throughout Madison County. TVA generates electricity from fossil fuels at 11 coal-fired
plants and six combustion-turbine sites, which accounts for about 60 percent of the electric power that serves more than 3-million Tennessee Valley homes and businesses. TVA plays an important role in fostering the social and economic well-being of the people it serves, and has done so for more than 70 years. From water quality, to land management, to efficient transportation, the agency is a crucial partner in the economic prosperity of the Tennessee Valley and the southeast U.S. With the Chamber’s responsibilities in economic development for Huntsville and Madison County, Hilson said the relationship between Huntsville Utilities, TVA and the Chamber has been a great advantage to the area landing large economic development opportunities. “Huntsville Utilities and TVA are longstanding supporters of the Chamber both through economic development and ancillary programs,” he said. “Huntsville Utilities President and General Manager Bill Pippin chairs the Chamber’s existing industry committee, and electric utility board member Ronnie Boles served as chair of the Chamber’s board of directors in 2002. TVA’s Butch Massey serves on the Chamber’s board of directors and both organizations are extensively involved in the Chamber’s numerous events and activities.” • Pictured: TVA power generation site at Wheeler (above); Huntsville Utilities building downtown (left)