Initiatives February 2012
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February 2012 Initiatives
Initiatives February 2012
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Thanks to Our Investors Huntsville Regional Economic Growth Initiative Chamber of Commerce of Huntsville/Madison County
www.growHuntsville.com
Development Partner ($200,000+ annually)
City of Huntsville Development Council ($120,000+ annually)
Huntsville Utilities Chairman’s Council ($75,000+ annually)
Toyota Motor Manufacturing Alabama, Inc. President’s Circle
($50,000+ annually)
Huntsville Hospital Port of Huntsville Regions Bank Tennessee Valley Authority Leadership Forum ($25,000+ annually) ADTRAN, Inc. BBVA Compass The Boeing Company Emerson Network Power - Avocent The Huntsville Times Lockheed Martin Corporation Madison County Commission Qualitest Pharmaceuticals Redstone Federal Credit Union Verizon Wireless
Executive Council
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($15,000+ annually)
AT&T BB&T CINRAM, Inc. COLSA Corporation Crestwood Medical Center Intergraph Corporation North Alabama Multiple Listing Service Northrop Grumman Corporation SES, Inc. Wells Fargo Bank Wyle CAS Group
February 2012 Initiatives
Chamber Trustees ($10,000+ annually) AEgis Technologies Group Agility Defense & Government Services Blue Cross & Blue Shield of Alabama Booz Allen Hamilton, Inc. Camber Corporation First Commercial Bank L-3 Communications Corp. – Huntsville Lamar Outdoor Advertising, Inc. Lanier Ford Shaver & Payne, P.C. Look Outdoor Advertising, Inc.
Progress Partners
MJLM Engineering & Technical Services Navistar Diesel of Alabama, LLC Raytheon Company SAIC SPARTA, Inc. SportsMed Orthopaedic Spine & Surgery Ctr. System Studies & Simulation, Inc. Teledyne Brown Engineering, Inc. WEUP
($5,000+ annually)
Ability Plus Analytical Services, Inc. A-P-T Research, Inc. Available Plastics, Inc. BAE Systems Baron Services, Inc. BASF Catalysts, LLC Beason & Nalley, Inc. The Bentley Automotive Group Bill Penney Toyota-Mitsubishi Bradley Arant Boult Cummings, LLP Cadence Bank City of Madison Clearview Cancer Institute Coldwell Banker Commercial McLain Real Estate Colonial Properties Trust Connected Logistics Consolidated Construction Company Cook’s Pest Control Davidson Technologies, Inc. DRS Technologies
Dynetics, Inc. Enfinger Steele Development, Inc. ERC, Inc. Holiday Inn – Downtown Huntsville-Madison County Builders Association iBERIABANK Intuitive Research & Technology Corporation J. Smith Lanier & Co. LogiCore MTS, Inc. The Orthopaedic Center Pratt & Whitney Rocketdyne, Inc. QinetiQ North America Strata-G / StrataForm Torch Technologies Turner Construction Company URS U.S. Space & Rocket Center WAFF-TV Wilmer & Lee, P.A. Yellow Book USA
Progress Investors ($2,500+ annually) Alpha Beta Technologies, Inc. Amanda Howard Real Estate Averbuch Realty Co., Inc. / Averbuch Enterprises Aviagen, Inc. Bama Jammer, Inc. BancorpSouth Belzon, Inc. BlueCreek Investment Partners Brown Precision, Inc. Bryant Bank Century Automotive Cerqa CFD Research Corporation Chapman Sisson Architects, Inc. Coast Personnel Services decibel Research, Inc. Decisive Analytics Corporation Decosimo Certified Public Accountants DESE Research, Inc. DHS Systems, LLC Digium, Inc. First Financial Group Wealth Management Fite Building Company, Inc. Foreign Language Services, Inc. Fountain, Parker, Harbarger & Associates, LLC 4SITE, Inc. GATR Technologies Gray Research, Inc. Halsey Foodservice The HDC, LLC HEMSI Hiley Mazda Volkswagen Audi Huntsville Huntsville Botanical Garden Huntsville Tractor & Equipment, Inc.
Investor’s Resource / Raymond James Financial Services KPS Group Kudzu Productions, Inc. Leadership Huntsville/Madison County, Inc. Mattress King, Inc. MOOG, Inc. National Bank of Commerce PeopleTec PHOENIX Pinnacle Solutions, Inc. Progress Bank PROJECTXYZ, Inc. Public FA, Inc. QTEC, Inc. Qualis Corporation Radiance Technologies, Inc. Renasant Bank RJ Young SCS Exhibits ServisFirst Bank Sigmatech, Inc. Spencer Companies Incorporated State Farm – Tim Roberts Insurance Agency Inc. Systems Products and Solutions, Inc. UBS Financial Services, Inc. United Space Alliance, LLC Wesfam Restaurants, Inc. (Burger King) West Huntsville Land Co., Inc. WHNT-TV WILL Technology, Inc. Woodland Homes of Huntsville Woody Anderson Ford Worthington Federal Bank
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February 2012 Initiatives
initiatives
Chamber of Commerce of Huntsville/Madison County
february 2012 cover story
The Picture of Health A Closer Look at the Economic Development Impact of Continued Growth in the Health Care Sector beginning on page 18 SellersPhoto.com
Cover image from Shutterstock.com
features Economic Development Highlights
including Stratolaunch Systems, UAHuntsville, MBDA Missile Systems, Tennessee Valley Authority, U.S. Army Materiel Command, White House Meeting, BID Designs and Telephonics Corporation
2012 Executive Committee 2012 Board of Directors Return on Investment SBA Spotlight: Avion Solutions More Than One Strata-G
L. Young
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 economic hub of the northern Alabama/ southern Tennessee region. Huntsville/Madison County’s economy is one of the strongest in the nation, 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.
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developments HREGI Investors Listing Chamber Board Listing HREGI Testimonial Community Profile Employee of the Quarter Making Connections Chamber Staff Listing
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editorial staff
R. Robbins
mission The mission of the Chamber of Commerce of Huntsville/Madison County
is to prepare, develop and promote our community for economic growth.
contact Chamber of Commerce of Huntsville/Madison County 225 Church Street, Huntsville, AL 35801 main line: 256.535.2000 fax: 256.535.2015
online www.HuntsvilleAlabamaUSA.com www.asmartplace.com
fyi
Submissions for editorial content are not accepted. Information in this and other Chamber publications is at the discretion of the Chamber of Commerce of Huntsville/Madison County. Advertising inquiries go through The Huntsville Times.
Publisher Chip Cherry, cce Executive Editor Patricia C. McCarter
Editorial Designer Kristi Sherrard ontributing Writers Kimberly Ballard, Lucia Cape, C Harrison Diamond, Laura Kendrick, and Patricia McCarter Photography Chamber of Commerce staff, publications and archive unless otherwise noted Advertising Sales Becky Fentress The Huntsville Times becky.fentress@htimes.com Initiatives February 2012
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Chamber of Commerce
Executive Committee and Board of Directors 2012 Executive Committee
Jim Bolte, Chair, Toyota Motor Manufacturing Alabama Ron Poteat, Chair-Elect, Regions Bank Charlie Kettle, Immediate Past Chair, First Commercial Bank Tommy Beason, Chamber Foundation Chair, Consultant Frederick Lanier, Secretary/Treasurer, J. Smith Lanier & Co. Rey Almodóvar, Vice Chair - Economic Development, Intuitive Research & Technology Corporation
A Message from Chip Cherry Dear Chamber of Commerce Investors, Community Leaders and Friends: I am honored to serve as your new President and CEO. Huntsville, Madison and Madison County have a great deal to be proud of, and I am excited to join the team of business, professional and government people who are working to grow our economy and enhance our community. Many wise decisions have been made by our forefathers and current leaders, and those decisions have laid the foundation for success. I look forward to working with those who will build on our foundation to realize the level of growth and success our community needs and deserves. I want to express both the gratitude and appreciation from our membership, leadership and staff to Tommy Beason who did an excellent job in his role as Interim President and CEO during the ten months between the departure of long-term President & CEO Brian Hilson and the beginning of my tenure on Dec. 15. I also want to thank Charlie Kettle who served in the dual role as Chairman and Chairman of the President & CEO Search Committee in 2011. Your staff deserves a special thank you for a job well done during the transition. Special recognition is due to all of our members who make what we do possible – thank you for your faith and confidence in your Chamber. I promise that we will work hard to retain that faith and confidence, and we will endeavor to meet and exceed your expectations! This month’s Initiatives cover story takes a look into the economic impact of the health care industry. When you review the numbers, you realize that the health care sector not only improves our lives by making us well, it contributes greatly to our community’s economic health as well. I look forward to seeing you at a Chamber event soon!
Chip Cherry, CCE President & CEO Chamber of Commerce of Huntsville/Madison County
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February 2012 Initiatives
Rose Allen, Vice Chair - Governmental Affairs, Booz Allen Hamilton Kim Lewis, Vice Chair - Member Services, PROJECTXYZ Danny Windham, Vice Chair - Workforce, Digium Miranda Bouldin, Vice Chair - Small Business, LogiCore Dr. O’Neal Smitherman, Vice Chair - Research & Information Services, HudsonAlpha Institute for Biotechnology
Crystal Shell, Vice Chair - Image Development, WILL Technology Mayor Tommy Battle, Chair-Appointed, City of Huntsville Mayor Paul Finley, Chair-Appointed, City of Madison Chairman Mike Gillespie, Chair-Appointed, Madison County Commission Robert Mayes, Chair-Appointed, BlueCreek Investment Partners Joe Ritch, Chair-Appointed, Sirote & Permutt David Spillers, Chair-Appointed, Huntsville Hospital Chip Cherry, President & CEO, Chamber of Commerce of Huntsville/Madison County
Elected Board
Joe Alexander, Camber Corporation Cathy Anderson, Woody Anderson Ford Bob Baron, Baron Services Dr. Marc Bendickson, Dynetics Penny Billings, BancorpSouth Greg Bragg, Consolidated Construction Company Everett Brooks, Incrementum Consulting Group Micah Bullard, Turner Universal Construction Kevin Byrnes, Raytheon Company Frank Caprio, Bradley Arant Boult Cummings Glenn Clayton, Appleton Learning Joe Collazo, COLSA Corporation Mark Curran, L-3 Communications Corporation - Huntsville Operations Kerry Fehrenbach, Intergraph Corporation Ron Gray, Gray Research John Gully, SAIC Natalie Hasley, Bama Jammer Steve Hassell, Emerson Network Power John Holly, Lockheed Martin Corporation Tharon Honeycutt, MSB Analytics Dr. Pam Hudson, Crestwood Medical Center Dr. Andrew Hugine, Alabama A&M University Tony Jones, The Boeing Company Simon Kim, LG Electronics Alabama Rich Marsden, Lanier Ford Shaver & Payne Angie McCarter, Davidson Technologies Elizabeth Morard, Qualis Corporation Joe Newberry, Redstone Federal Credit Union Jim Owens, BBVA Compass George Prueitt, Wyle CAS Group Charlie Sealy, Sealy Management Company Dr. Ashok Singhal, CFD Research Corporation Todd Slyman, Village of Providence Jan Smith, S 3 Tom Stanton, ADTRAN Cynthia Streams, Domino’s Pizza (Valley Pizza) Nilmini Thompson, Systems Products and Solutions Dr. Ernie Wu, ERC
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ECONOMIC DEVELOPMENT HIGHLIGHTS CHAMBER OF COMMERCE OF HUNTSVILLE/MADISON COUNTY
Revolutionizing Space Transportation Microsoft Co-Founder Establishes Commercial Space Company in Huntsville; Dynetics to play key role in manufacturing for Stratolaunch Systems Microsoft co-founder and philanthropist Paul G. Allen announced on Dec. 13 that he and aerospace pioneer Burt Rutan have reunited to develop the next generation of space travel, and Huntsville will play a major role. Allen and Rutan, whose SpaceShipOne was the first privately-funded, manned rocket ship to fly beyond earth’s atmosphere, are developing a revolutionary approach to space transportation: an airlaunch system to provide orbital access to space with greater safety, cost-effectiveness and flexibility. Stratolaunch Systems will bring airport-like operations to the launch of commercial and government payloads and, eventually, human missions. Plans call for a first flight within five years. The air-launch-to-orbit system will mean lower costs, greater safety, and more flexibility and responsiveness than is possible today with ground-based systems. Stratolaunch’s quick turnaround between launches will enable new orbital missions as well as break the logjam of missions queued up for launch facilities and a chance at space. “I have long dreamed about taking the next big step in private space flight after the success of SpaceShipOne – to offer a flexible, orbital space delivery system,” Allen said. “We are at the dawn of radi-
cal change in the space launch industry. Stratolaunch Systems is pioneering an innovative solution that will revolutionize space travel.” Dynetics will provide the mating and integration system and the systems engineering, integration, test and operations support for the entire air-launch system. The mating and integration system will be manufactured in Huntsville in Dynetics’ new 226,500-squarefoot prototyping facility. “We are excited to play such a major role on this system. This is an ambitious project unlike any that has been undertaken, and I am confident the Stratolaunch team has the experience and capabilities to
accomplish the mission,” said David King, Dynetics executive vice president and Stratolaunch board member. Former NASA Administrator and current Eminent Scholar at UAHuntsville Mike Griffin, also a Stratolaunch board member, joined Allen and Rutan at a press conference in Seattle to announce the project. “We believe this technology has the potential to someday make spaceflight routine by removing many of the constraints associated with ground launched rockets,” Griffin said. “Our system will also provide the flexibility to launch from a large variety of locations.” •
Stratolaunch Systems, headquartered in Huntsville, will build a mobile launch system with three primary components: • A carrier aircraft, developed by Scaled Composites, the aircraft manufacturer and assembler founded by Rutan. It will be the largest aircraft ever flown. • A multi-stage booster, manufactured by Elon Musk’s Space Exploration Technologies; • A state-of-the-art mating and integration system allowing the carrier aircraft to safely carry a booster weighing up to 490,000 pounds. It will be built by Dynetics, a leader in the field of aerospace engineering. 10
February 2012 Initiatives
~ continued on page 14
UAHuntsville Research Institute Celebrates 50 Years; Opens Newest Research Lab The University of Alabama in Huntsville celebrated the 50th anniversary of its Research Institute and opened its newest lab, the Reliability and Failure Analysis Laboratory (RFAL). RFAL is designed to enable research to reduce the cost of ownership of defense and aerospace systems, according to university officials at the grand opening of the lab. The UAHuntsville Research Institute was created as a result of Dr. Wernher von Braun’s impassioned plea to the Alabama Legislature to fund a research institute on the campus of UAHuntsville. The Alabama Legislature responded with a $3 million investment. “It was the strong encouragement from our federal partners that motivated the Alabama Legislature to provide seed money to create the UAH Research Institute,” said Dick Rhoades, director of the research institute. “We have chosen to celebrate that creation today, in the building built with those state funds, while also officially opening the institute’s newest laboratory.” The genesis of the institute was more about hiring faculty to teach graduate level courses and less about conducting actual research. In the early 1960s, von Braun, NASA and the U.S. Army had a pressing need to provide advanced courses to Redstone Arsenal employees. Offering courses at the master’s and doctorate level was crucial to meeting the nation’s challenge of space exploration. At that time, there was a very real threat from Washington,
Congressmen Mo Brooks and Robert Aderholt and UAH president Bob Altenkirch listen to Chris Sautter, director of the Reliability and Failure Analysis Laboratory, as he explains the purpose of UAH’s newest lab.
D.C. to transfer the development of America’s space program to California or Massachusetts rather than invest necessary dollars in Alabama. That was the motivation behind von Braun’s remark during his address to the Alabama Legislature: “To make Huntsville more attractive to technical and scientific people across the country – and to further develop the people we have now – the academic and research environment of Huntsville and Alabama must be improved and improved immediately.”
Today, the Research Institute has become an integral part of the campus, providing cutting-edge research in addition to contributing to the academic mission, particularly at the graduate level. UAHuntsville annually produces approximately 40 Ph.D. and 350 master’s degrees. Also, earlier this year, the university was classified by the Carnegie Foundation as a very high research institution, which places the university as one of only 73 public universities in the nation with that distinction. •
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C H A M B E R O F COMMERCE : 2012 EXECUTIVE COMMIT TEE
Jim Bolte
president, Toyota Motor Manufacturing Alabama, Inc. Board Chair
Ron Poteat
Charlie Kettle
Tommy Beason
Chair-Elect
Immediate Past Chair
Chamber of Commerce Foundation Chair
north alabama area executive, Regions Bank
president, First Commercial Bank
consultant
Frederick Lanier
Rey Almodóvar
Rose Allen
Kim Lewis
Danny Windham
Secretary/Treasurer
Vice Chair – Economic Development
Vice Chair – Governmental Affairs
Vice Chair – Member Services
Vice Chair – Workforce
Miranda Bouldin
Dr. O’Neal Smitherman
Crystal Shell
Tommy Battle
Paul Finley
Vice Chair – Small Business
Vice Chair – Research & Information Services
Vice Chair – Image Development
Chair-Appointed
Chair-Appointed
Mike Gillespie
Robert Mayes
Joe Ritch
David Spillers
Chip Cherry
Chair-Appointed
Chair-Appointed
Chair-Appointed
Chair-Appointed
senior vice president, J. Smith Lanier & Co.
president & chief executive officer, LogiCore
chairman, Madison County Commission
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“I look forward to being the 2012 Chairman of the Board of Directors for the Chamber of Commerce. With such stellar leaders on the Executive Committee and Board, I know we will achieve great things for Huntsville and Madison County. I am honored to serve with them and the hard-working chamber staff.”
February 2012 Initiatives
chief executive officer, Intuitive Research & Technology Corp.
executive vice president, HudsonAlpha Institute for Biotechnology
chief executive officer, BlueCreek Investment Partners
principal, Booz Allen Hamilton, Inc.
president & chief executive officer, WILL Technology, Inc.
partner, Sirote & Permutt, P.C.
chief executive officer, PROJECTXYZ, Inc.
mayor, City of Huntsville
chief executive officer, Huntsville Hospital
chief executive officer, Digium, Inc.
mayor, City of Madison
president & chief executive officer, Chamber of Commerce of Huntsville/Madison County
CHAMBER OF COMMERCE : 2012 BOARD OF DIR E C TO R S
Joe Alexander
Cathy Anderson
Bob Baron
Dr. Marc Bendickson
Penny Billings
Greg Bragg
Everett Brooks
Camber Corporation
Woody Anderson Ford
Baron Services, Inc.
Dynetics, Inc.
BancorpSouth
Consolidated Construction Company
Incrementum Consulting Group
Micah Bullard
Kevin Byrnes
Frank Caprio
Glenn Clayton
Joe Collazo
Mark Curran
Turner Construction
Raytheon Company
Bradley Arant Boult Cummings, LLP
Appleton Learning
COLSA Corporation
L-3 Communications Corp.- Hsv Operations
Kerry Fehrenbach
Ron Gray
John Gully
Natalie Hasley
Steve Hassell
John Holly
Intergraph Corporation
Gray Research, Inc.
SAIC
Bama Jammer, Inc.
Emerson Network Power
Lockheed Martin Corporation
Tharon Honeycutt
Dr. Pam Hudson
Dr. Andrew Hugine, Jr.
Tony Jones
Simon Kim
Rich Marsden
MSB Analytics, Inc.
Crestwood Medical Center
Alabama A&M University
The Boeing Company
LG Electronics Alabama, Inc.
Lanier Ford Shaver & Payne, P.C.
Angie McCarter
Elizabeth Morard
Joe Newberry
Jim Owens
George Prueitt
Charlie Sealy
Davidson Technologies
Qualis Corporation
Redstone Federal Credit Union
BBVA Compass
Wyle CAS Group
Sealy Management Company
Dr. Ashok Singhal
Todd Slyman
Jan Smith
Tom Stanton
Cynthia Streams
Nilmini Thompson
Dr. Ernie Wu
CFD Research Corporation
Village of Providence
S 3, Inc.
ADTRAN, Inc.
Domino’s Pizza (Valley Pizza, Inc.)
SPS, Inc.
ERC, Inc. Initiatives February 2012
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ECONOMIC DEVELOPMENT HIGHLIGHTS continued from page 11
European Weapons Leader MBDA Expands its Footprint in the U.S. MBDA Inc., the wholly owned U.S. subsidiary of missile manufacturer MBDA, has purchased Northrop Grumman Corporation’s Viper Strike munitions business, located in Huntsville and announced its intentions to grow in Huntsville. MBDA, a world leader in missiles and missile systems, is a multi-national group with over 10,000 employees in France, the United Kingdom, Italy, Germany and the United States. MBDA has three major aeronautical and defense shareholders – U.K.-based BAE Systems (37.5%), Netherlands-based EADS (37.5%) and Italian-based Finmeccanica (25%), and is the first truly integrated European defense company. The Viper Strike Business Unit facilities, located in Huntsville and on the Army’s Redstone Arsenal, will allow MBDA to design, build and assemble complete precision-guided weapons in one location, as well as bring in new business to the MBDA-Huntsville facilities. Jerry Agee, CEO of MBDA Inc., said, “Acquiring the combat proven Viper Strike weapon system and facility allows us to take an important step in our strategy to research, design and produce the world’s finest weapons that meet
the current and future needs of U.S. armed forces. The Viper Strike line is a perfect addition to our portfolio and allows us entrée into the fast growing armed [Unmanned Aerial System] business segment.” MBDA Inc. now owns two design, development and manufacturing locations: the Huntsville Viper Strike operating unit and its original Westlake Village, Calif., operating unit. U.S. Sen. Richard Shelby (R-Ala.) said, “I am pleased that MBDA will be joining the robust and growing Huntsville defense community. Viper Strike weapons have been a key asset for our troops in Iraq and Afghanistan, and I am proud that they will continue to be produced in Alabama. MBDA’s plan to grow the business going forward represents a strong vote of confidence in the Alabama workforce and is great news for the local economy.” Charlie Kettle, 2011 chair of the Chamber of Commerce Board of Directors, thanked the company for choosing Huntsville as its first-ever American acquisition. “Today we are here for an economic development announcement of international proportion. We are all very ex-
cited that MBDA has chosen this business unit in Huntsville as its first American acquisition,” Kettle said. Viper Strike is a low-collateral damage, precision guided weapon designed for both manned and unmanned aircraft. This 44-pound, covert glide weapon allows U.S. Army, U.S. Air Force, Special Forces and U.S. Marine Corps aircraft to precisely engage targets in urban and complex terrain environments. It combines a GPS Inertial Navigation System and a Semi-Active Laser seeker to provide maximum operational flexibility. MBDA CEO Antoine Bouvier stated, “This acquisition is a demonstration of our commitment to continue to grow in the U.S. We are excited by the opportunity this production facility provides us to continue to design, build and deliver first-class missiles to U.S. armed forces. We now have over 60 missile systems fielded, in production, or in development and equip over 90 armed forces around the world. We can leverage the economies of scale of this wide customer base and product line to provide excellent missile systems, like Viper Strike, to the U.S. warfighter.” •
MBDA, Inc. president and CEO Jerry Agee announces MBDA’s intentions to grow its U.S. footprint in Huntsville at a ribbon cutting for the company. MBDA acquired a business segment of Northrop Grumman in the company’s first acquisition of a U.S. company.
TVA Increases Commitment to Renewable Energy with Solar Site Dedication A new solar-powered site in Huntsville will generate clean, renewable electricity as part of the Tennessee Valley Authority’s Green Power Switch program. Officials from TVA, Huntsville Utilities and site host Huntsville Botanical Garden dedicated a 23-kilowatt installation recently at the Huntsville Botanical Garden. The site can generate approximately 30,000 kilowatt-hours annually. The average household in the TVA service area uses about 14,000 kilowatt-hours per year. Though these new solar sites will produce only enough electricity for a few homes, they will be valuable educational and demonstration tools for the public. This site, along with one in Tennessee, will add nearly 43 kilowatts of clean solar capacity to the Green Power Switch program, adding to the growth of renewable energy in the Tennessee Valley. Green Power Switch is TVA’s program that lets residents and businesses purchase blocks of green power from their local power company. Those interested in supporting Green 14
February 2012 Initiatives
Power Switch can learn more about the program at www.greenpowerswitch.com. “In the 10 years since TVA became the first utility in the Southeast to offer consumers clean electricity through Green Power Switch, we’ve seen a renewable energy renaissance take root in the Tennessee Valley,” said John Trawick, TVA senior vice president for Commercial Operations and Pricing. “Green Power Switch continues to attract new consumers, and these new solar sites will support their commitment to renewable energy.” With the newly dedicated solar sites, TVA’s Green Power Switch program now has 16 TVAowned solar generation sites throughout the Tennessee Valley with a total combined capacity of 472 kilowatts. Together the new sites will be capable of generating about 54,000 kilowatthours of electricity each year. Since Green Power Switch began in 2000, consumers have received more than 600,000 megawatt-hours of renewable energy. Today, the Green Power Switch program counts nearly 11,000 participants served by 116 local power companies. •
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ECONOMIC DEVELOPMENT HIGHLIGHTS continued from page 14
Chamber Salutes AMC, Provides Update on Redstone Arsenal Efforts The last of the Army commands that moved to Redstone Arsenal via the 2005 Base Realignment and Closure (BRAC) decision was officially welcomed by the Chamber of Commerce of Huntsville/Madison County during a “Hail to AMC” luncheon on Dec. 12. Almost 700 people came to the event spotlighting the Army Materiel Command and four-star Gen. Ann E. Dunwoody, who said the “tough journey” of relocating AMC headquarters from Fort Belvoir, Va., was made easier by the community’s “embrace.” “You have been with us every step of the way,” said Dunwoody at the SAIC-sponsored luncheon at the Von Braun Center. “You reached out to us six years ago and started this incredible journey. And because of that friendship, partnership and caring, our command is up and running. We didn’t skip a beat and we’re delighted to be part of this community.” AMC is responsible for developing, buying, transporting and maintaining just about everything a soldier needs: uniforms, weapons, food, vehicles and countless other items. The deadline to move all BRAC-impacted commands to Redstone was Sept. 15, and nearly 1,400 AMC employees were in place by then. Those workers represent $102 million in salaries and contracts as well as $170 million in economic activity. Also speaking at the luncheon was John Nerger, who is executive deputy to the commanding general. He said AMC is busy leading the drawdown of equipment and troops from Iraq before the Dec. 31 deadline. To help the audience visual-
Madison County Commission Chairman Mike Gillespie welcomes Gen. Ann E. Dunwoody to Huntsville at the Hail to AMC luncheon. Gen. Dunwoody also received the keys to the cities of Huntsville and Madison from Mayor Battle and Mayor Finley. ize the enormous undertaking, Nerger said if all of the gear in Iraq was loaded onto trucks which were lined up in a single convoy, it would stretch nearly 2,000 miles, from Washington, D.C. to El Paso. Also on Dec. 12, the Chamber held a Redstone Update, during which Arsenal leaders briefed the audience on the work their commands are performing. Included were Lt. Gen. Patrick O’Reilly, director of the Missile Defense Agency; Maj. Gen. James Rogers, commander of the Aviation and Missile Life Cycle Management Command and
of Redstone Arsenal; Brig. Gen. Ole Knudson, program executive officer for Missiles and Space; Col. John Hamilton, garrison commander of Redstone Arsenal; Col. Robert Pastorelli, chief of staff at the U.S. Army Security Assistance Command; Dr. Steve Messervy, deputy to the commander of the Space and Missile Defense Command; and Randy Harkins, chief of staff for PEO Aviation. They all spoke to the need for greater efficiency, as they face pending but unknown cuts in the Department of Defense budgets. •
Chamber Members Provide Input Again to White House Business Council
Andre Gudger, White House Business Council 16
February 2012 Initiatives
For the second time this year, the Obama Administration’s White House Business Council came to Huntsville to meet with area business leaders for input on how to jumpstart the economy. On Oct. 16, Andre Gudger, director for the Office of Small Business Programs within the Department of Defense and member of the White House Business Council, met with small businesses invested in the Huntsville Regional Economic Growth Initiative – the community’s blueprint for economic growth – to discuss the Administration’s jobs plan. “The President is very aware that we are here in Huntsville and is ready to hear what you have to say. I know that he reads these notes from these meetings closely as we try to find ways to do things better and ways we can be better,” Gudger said. Gudger explained that the American Jobs Act got its start in 2008 at a time when the United States was losing hundreds of thousands of jobs a month. “We were in the middle of a crisis,” he said. He added that as a result, the American Recovery and Reinvestment Act of 2009 (ARRA) was created and has served as “the basis for the Jobs Act.” “ARRA was intended to be short-term,” Gudger said. “Alabama was a major recipient of funds. Of the money, 50 percent
went to small businesses. We’ve gotten through the recovery part, and now we are ready for the reinvestment part. As you all know, small businesses do more with more. Many technological innovations have come out of our many small businesses. We, as a government, must do all that we can to create an environment to let the best ideas grow and foster.” Gudger said the Jobs Act was put before the Congress for a vote but it was defeated and is now being taken up piece by piece. Among the elements being put forward is a tax credit of $5,600 for companies hiring veterans and a tax credit of $9,000 for hiring a wounded warrior. “I believe that if we stimulate the hiring of vets who have great experience and know how to get the job done, it will stimulate the economy,” Gudger said. Other elements of the Jobs Act Gudger mentioned include money for schools and infrastructure as well as loans to get businesses through the “valley of death” where they are too small for some loans and too big for others. He also addressed the importance of the accelerated pay program that shortens the time for contractors to get paid for work as well as the importance of steady funding for the Small Business Innovation Research and the Small Business Technology Transfer programs. •
Economic Development Highlights compiled by Patricia McCarter & Harrison Diamond
BID Designs Celebrates Five Years of Growth BID Designs, a business specializing in helping small and medium-sized companies with business development, recently celebrated its first five years in business. “The vision and ingenuity of companies like BID Designs exemplify why the Huntsville/Madison County area is a smart place to live, work and play,” said Ron Poteat, vice-chair of economic development for the Chamber of Commerce of Huntsville/Madison County Board of Directors. BID Designs co-founder Chris Luchtefeld said the company was formed out of collaboration. “We aim to dispel the rumors of the process business development. There is a better way to do it. There is no better place to start a business than Huntsville, which is, I believe, No. 2 for acquisition,” he said. •
Celebrating BID Design’s 5th anniversary in business.
New York-Based Company Sees Opportunity for Huntsville Growth Telephonics Corporation, a wholly owned subsidiary of Griffon Corporation, recently announced the opening of a new facility at 315 Bob Heath Drive that will house engineers from its Radar Systems and Communication and Electronic Systems Divisions as well as its subsidiary, Systems Engineering Group (SEG), Inc. This facility, located in the Cummings Research Park, will primarily provide air and missile defense threat systems analysis and engineering, high fidelity modeling and simulation, and missile, radar and combat systems engineering design and performance analysis. Additionally, the work will involve performance of high-technology engineering for integrated information, communication and sensor system solutions for military applications and platforms. “This facility will enable Telephonics and SEG to provide hardware, technical support, maintenance, and high-end systems engineering services to our customers. The proximity to Redstone Arsenal will facilitate our ability to expand our role with new and existing customers, not only as a provider of the engineering, advanced systems and technologies, but also to ensure these systems are reliable and are available at all times when needed,” said Joseph Battaglia, president and CEO of Telephonics. “We also see tremendous opportunities to foster the continuing economic development of Huntsville and of Madison County.” • Initiatives February 2012
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The Picture of Health A Closer Look at the Economic Development Impact of Continued Growth in the Health Care Sector
Crestwood Medical Center
Huntsville Hospital
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hen you think about the biggest money-generating industries in Madison County, mostly rockets, missiles and software come to mind. But the business of healing makes a significant contribution to the local economy, though many people don’t automatically regard health care as an industry. An estimated 8 percent of the total north Alabama economy has its roots in health care, accounting for more than 25,000 jobs and over $1 billion in annual wages. In fact, the American Hospital Association reports that 9 percent of the total employment in Alabama is provided by hospitals. “If you added up everyone who works at Huntsville Hospital, Crestwood Hospital, the Surgery Center, Clearview (Cancer Institute) and all of the clinics and doctors’ offices, I’ll bet you’d come up with a number that’s pretty close to the number of people working on (Redstone) Arsenal,” said David Spillers, CEO of Huntsville Hospital. “These are people who make good salaries and have benefits. And they turn around and invest in this community.” And having access to quality health care isn’t just important to the local citizenry. It is a top concern of businesses and residents considering relocating to Huntsville and Madison County. “We get calls (from outside our community) about health care all the time,” said Dr. Pam Hudson, Crestwood Hospital CEO. “We can put those concerns to rest. There is very little out-migration for health care necessary. “Our community is fortunate to have two very good hospitals. Just about every specialty can be met without leaving Huntsville.”
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February 2012 Initiatives
Clearview Cancer Institute
Huntsville Hospital With a company-wide $400 million annual payroll, the not-for-profit Huntsville Hospital Health System maintains a fairly
constant air of growth. Its downtown campus, with about 800 beds, always seems to be involved in a renovation project, and its 60-bed Madison Hospital will open in late February, “on time and within budget,” Spillers said. The new hospital in Madison will have room to grow to 200-plus beds, “when we see there is a need for that number,” the CEO said. Initially, Madison Hospital will employ 300 to 400 people. All basic hospital services will be provided there, including an emergency room, labor and delivery, imaging, physical therapy and general surgery. “This will decompress us here somewhat for the more acute patients,” Spillers said. “We expect that the majority of the patients will come from a five- to 10-mile radius.” That’s a very different mission from the main hospital, which draws patients from across the Tennessee Valley. It is one of just three hospitals in the state with a trauma center. Spillers The main campus of the notfor-profit is almost always under renovation. Spillers said all of the “old rooms” are being refurbished, at 10 to 15 rooms at a time, “because we can’t close down to renovate.” This summer, Huntsville Hospital opened a centralized medical instrument sterilization center in Thornton Research Park, in conjunction with its logistics center that began operation six years ago. Now, every surgical instrument used at any of the hospital system’s campuses is sterilized there, just as all hospital supplies run through the logistics center. About 200 employees work there. “A vendor will give you a much better deal when you’re buying 1,000 instead of 10,” Spillers said. “With medical reimbursements constantly being cut, we have to be economical with all of our decisions. Our regional relationships give us critical mass.”
In December, the system announced it purchased the 120-bed Parkway Medical Center in Decatur from Capella for $17.5 million, extending its growth even more in the Tennessee Valley. Other facilities acquired by Huntsville Hospital include Decatur General Hospital, Hellen Keller Hospital in Colbert County, Red Bay Hospital in Franklin County and Athens-Limestone Hospital. That makes the Huntsville Hospital system the eighth largest publicly owned health care system in the United States, with more than 9,000 employees. The University of Alabama in Huntsville’s Center for Management & Economic Growth calculated the economic impact of the hospital’s operation in the state for the fiscal year ending June 30, 2010. The calculations included the hospital’s direct employment, payroll and non-payroll expenditures, as well as the estimated additional jobs which are created “downstream.” This multiplier impact is a conservative estimate of the value of indirect jobs and expenditures which result from Huntsville Hospital’s operation. Here are some of the study highlights: • The total payroll of direct and indirect employment was estimated at $556 million in Alabama. • Huntsville Hospital’s total economic impact, including payroll and other expenditures in Alabama, exceeded $709 million for the year. • Huntsville Hospital purchased more than $250 million in goods, supplies, services and equipment during the year. • An estimated 729,000 people (non-patients) visited Huntsville Hospital facilities last year, many of whom were not local residents. These out-of-town visitors spent time and money in the community. • Huntsville Hospital helped create an additional 7,400 jobs in Alabama during the
year, bringing the hospital’s total job impact to more than 14,000 in the state.
Crestwood Hospital By providing up to 1,000 surgeries a month and 40,000 emergency room visits annually, Crestwood Hospital makes a definite splash in the health care economic impact pool in Huntsville. Crestwood CEO Pam Hudson said the hospital - which is a part of investorowned Community Health Systems – has an annual payroll of $47 million and pays $3.6 million in sales, use and property taxes. “Something else that contributes economically is that Crestwood helps launch 10 physician practices a year,” Hudson said. “Our mission is to provide great health care. There is a shortage of physicians, so by recruiting physicians, that is also a part of our economic impact. “Each new practice that is established will also hire nurses and office workers. Jobs are created.” Hudson Hudson, a Huntsville High graduate and former ER doctor at Crestwood, said Medical Economics recently rated this area as one of the best places to launch a medical career. That kind of endorsement does help in recruiting good staff, and quality health care options make it easier for economic developers to attract new or expanding industries. One of the new things Crestwood can highlight to potential residents is its newly renovated labor, delivery, recovery and postpartum (LDRP) area. Also Crestwood launched a new occupational medicine program, renovated the pain management de-
partment and expanded the operating room area. “Our niche is to provide a very high quality of care in an environment of service excellence,” she said. “People like options.” An aspect of care particularly attractive to the community’s retirees is Crestwood’s acute care for the elderly, or ACE unit. The hospital has a core of “Geriatric Resource Nurses,” who have received additional education and training specific to care of the elderly.
The Surgery Center of Huntsville Not all surgeries require a hospital stay. For those outpatient procedures, The Surgery Center of Huntsville is an option, and it is one that contributed economically to the community in a big way when it spent $24 million to expand its space. Another $6 million was spent on additional medical equipment. “Prior to the expansion, our caseload was approximately 11,000 patients a year,” said Bill Sammons, CEO of The Surgery Center of Huntsville. “In 2011, we performed 26,720 cases.” The expansion increased the payroll to $8.2 million for its 217 employees. More than 70 physicians have privileges at the center. “The Surgery Center of Huntsville, along with hospitals in the area, is vital to the economic development of the area,” Sammons said. “Just as people look to the quality of education, lifestyles and other resources, continued on page 21 Initiatives February 2012
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Increase in demand for health services creates job growth In 2010, aol.com compiled the “Top 10 Most Secure Jobs in 2011,” using data from the U.S. Department of Labor. The top four were healthcare jobs – nurse, physical therapist, pharmacist and physician/surgeon. Fast-forward to the end of 2011 and, according to the Bureau of Labor statistics, healthcare jobs account for 20 percent – 324,000 of 1,572,000 – of the non-farm job growth in the United States between November 2010 and November 2011. Over the same period, healthcare jobs have accounted for 5,859 openings or 13 percent of all jobs posted on the Chamber of Commerce of Huntsville/Madison County’s job website, ASmartPlace.com. A breakdown of those available jobs shows as many as 60 employers across the Huntsville/Madison County and our surrounding communities. Projections through 2014 show 1,610 new healthcare related jobs in Madison County. Among the largest employers are our hospitals – Huntsville Hospital and Crestwood Medical Center.
Hospitals Workforce by the Numbers
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February 2012 Initiatives
• Employees in Madison County Huntsville Hospital = 6,570
Crestwood = 1,010
• New hires in 2011 Huntsville Hospital = 841
Crestwood = 200
• Lucia Cape
The Picture of Health, continued from page 19 – they also look for quality healthcare in the city which they live.” Sammons said The Surgery Center’s niche focus is strictly on surgical services that will allow a patient to return home no greater than 23 hours post surgery. “However, just as vital, is having the premier intensive care, neonatal care and trauma services that are offered by Huntsville Hospital,” Sammons said. “Crestwood Hospital also serves as an exceptional healthcare system. These are important to my family and should be a very positive benefit for future residents.”
Clearview Cancer Institute Clearview Cancer Institute opened the doors to its new three-story, 115,000-squarefoot building off of Interstate-565 from its downtown Huntsville facility in 2006. The institute offers an integrated cancer treatment program to include medical oncology and hematology, radiation oncology, gynecologic oncology, research and clinical trials, imaging services, full laboratory services, genetic counseling, education and supportive care resources. The staff of 300 employees includes board-certified oncologists, nurse practitioners, registered nurses, licensed social workers and the only certified genetic counselor in North Alabama. “Our 12 physicians have been active in cancer research trials for more than 25 years,” said Leslie Vallely, public relations director for the institute. “More than 30 scientific breakthroughs of new FDA approved cancer-fighting treatments have been proven in clinical trials conducted at Clearview Cancer Institute.” Clearview has five offices to include a second location in southeast Huntsville and offices in Decatur, Athens and Scottsboro.
All the rest And of course, there are countless physician offices, mental health providers, imaging centers and other health care workers located throughout the community who contribute to the economic picture. All together, they provide a complete network of services for residents and a great card in the hand economic developers use to recruit industry. • Patricia McCarter Initiatives February 2012
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strength in
numbers
connects business prospects
“HREGI gives AT&T a platform to invest into the continued economic growth of North Alabama and
But HREGI also helps identify challenges to that growth, which allows us to develop solutions to any potential
Photo by Matthew Chandler © 2011 Chamber oc Commerce
Southern Tennessee.
”
roadblocks to our success.
For a list of HREGI investors, see page 4 or visit: www.growHuntsville.com 22
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Dave Hargrove, Regional Director
AT&T HREGI Investor since 2003
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community profile
TOP 10 EMPLOYERS Redstone Arsenal* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Population
Madison County
City of Huntsville
2000 Census
276,700
158,216
29,329
342,376
NASA/Marshall Space Flight Center* . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
2010 Census
334,811
180,105
42,938
417,593
Huntsville City Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
46.4%
21.9%
The Boeing Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600
% Growth
21.0%
13.8%
City of Huntsville Madison Metro Area
Madison County Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,389
Households & Income* # of Households
128,729
75,737
14,707
155,251
Avg. Household Income $75,911
$71,775
$94,538
$73,316
Per Capita Income
$31,226
$35,496
$29,026
$30,835
Huntsville Hospital System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,280
Sources: U.S. Census Bureau (www.census.gov), *2009 American Community Survey
SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,229 City of Huntsville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,206 ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,740 UAHuntsville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,675 Source: Chamber of Commerce of Huntsville/Madison County *includes on-site contractors
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. More than 36,000 people work at Redstone Arsenal and NASA managing some of the country’s most important and sophisticated technology programs including missiles, aviation and space exploration.
Research & Technology
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Huntsville’s Cummings Research Park has earned a reputation as a global
For more information visit:
park in the U.S., Cummings Research Park is home to more than 300 compa-
HuntsvilleAlabamaUSA.com
nies and 25,000 people involved in technology research and development.
February 2012 Initiatives
leader in technology development. The second-largest science and technology
E M P L O Y E E
O F
T H E
Q U A R T E R
Ashley Shady Resource Desk Coordinator
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henever you step inside the lobby of the Chamber of Commerce of Huntsville/Madison County, you’re sure to be greeted by a smiling face. The latest Employee of the Quarter, Ashley Shady, is responsible for making all visitors feel welcome. “I am the first person everyone sees when they enter our building or the first person they speak with when calling the Chamber,” Shady said. “I feel strongly that as the face of the Chamber, a smile and a friendly greeting set the tone for how we as a Chamber feel about our guests and our community.” As Resource Desk Coordinator, Shady’s duties include assisting visitors for various meetings as well as new community members. When answering calls to the Chamber, she often shares directions, phone numbers and things to do in Huntsville. She updates member contact information, coordinates the Chamber’s Industrial Directory, maintains the in-house plasma screens that announce upcoming events, and updates
the Chamber website with statistical reports, from unemployment to cost of living to home sales. “My favorite part of my job is meeting new people and helping our community,” she said. “Every day I have the opportunity to meet someone new from a different part of the United States and sometimes even the world. It is very rewarding to get to tell them about our wonderful community and my hometown.” Ken Smith, the Chamber’s director of research and information, said Shady made an immediate positive impact after joining the staff last April. “Ashley provides community information and assistance to numerous families and businesses looking to locate or expand to the region,” Smith said. “She provides a quality first impression to represent the entire community. She takes pride in all she does to help others, whether it is a first-time visitor, Chamber member or fellow staff member. She is very much deserving of the honor of Employee of the Quarter.” •
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Return on Investment Reaping Economic Rewards for Huntsville Metro with HREGI
F
rom a community known for watercress, cotton farming and agrarian enterprise came a new catalyst for growth. The defined tipping point which made Huntsville and Madison County a technology center occurred in the 1950s and 1960s with the arrival of 118 German rocket scientists. Our beginnings as a high tech region originated with these amazing scientific capabilities, and the Chamber of Commerce of Huntsville/Madison County has long worked to improve and expand our area’s capabilities. Providing measurable growth, the Chamber has had some version of a communitygrowth funding mechanism since the 1980s. Originating as a means to fund governmental affairs issues – and later economic development efforts – the programs gradually melded into a comprehensive effort with economic development at its core, and containing critical elements of governmental affairs/public policy advocacy, workforce retention, targeted business recruitment, education, image enhancement, accountability and the growth of existing business. The program was retooled in early 2011, and a full-court press in the community resulted. Called the Huntsville Regional Economic Growth Initiative, or HREGI, the program is Huntsville/Madison County’s blueprint for targeted growth. When businesses invest in HREGI, they are quite literally investing in the growth of the local economy. That is because the HREGI investment is the funding mechanism that allows the Chamber to prepare, develop and promote the community for economic development. “Investing in HREGI is absolutely critical to the growth of the Huntsville Metropolitan Statistical Area,” said 2011 Chamber Board Chair Charlie Kettle. “This investment enables the Chamber to recruit targeted industries to our community. It is the funding mechanism that allows us to develop our federal and state agendas that are so important to our businesses and our community infrastructure.” And to be clear, investing in HREGI is not considered donating or giving back to the community. “There are numerous non-profit organizations designed to give back to the people in our community that are all worthy of dona-
tions,” said Jim Bolte, 2012 chair of the Chamber and the president of Toyota Motor Manufacturing Alabama. “But investing in HREGI is a business investment, one that has a return on investment to the member’s business and to the economy of our metropolitan statistical area.” Bolte said this investment was used to create one of the most in-depth workforce programs in the nation, at a time when we
wanted to continue our strong pre K-12 and post-secondary workforce development programs but also needed to combine recruiting highly skilled, highly educated workers to our community to fill thousands of federal and contractor support jobs. Substantial portions of this activity, thanks to the efforts of local business leaders and the Tennessee Valley BRAC Committee, were eventually funded through the State of Alabama. But the program was initially developed and implemented by investors as part of HREGI. Dave Hargrove, past chairman of the Chamber and the regional director for AT&T, praised the effort for helping grow jobs, recruit workforce and create the opportunity for more clients. “This Chamber is responsible for helping create jobs and grow our local economy,” Hargrove said. “At AT&T, we invest in HREGI to support the economic growth of continued on page 34
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SPOTLIGHT ON 2011 Small Business Award Winner:
Government Contracting Category
Initiatives recently connected with Avion president/founder Gary Donald to get more insight into the Chamber of Commerce of Huntsville/ Madison County’s 2011 Small Business Awards Government Contracting Services of the Year.
Q: In what industry is your business and what are your principal products and/or services? A: We are recognized for our solid business practices and commitment to our men and women in uniform and our U.S. Army Customers, AMRDEC, PEOAVN, AMCOM as well as municipal and commercial customers.
Q: When and why was Avion founded? A: It was founded in 1992. The goal was and is to utilize experimental design, engineering analysis and rapid prototyping methodologies to solve technical engineering problems and broaden our technical presence throughout the Army Aviation community. The ultimate goal is to use engineering solutions to solve everyday problems that make the life of the Soldier easier.
Q: What has been the company’s greatest achievement?
p Members of the Avion leadership team at the 2011 Small Business Awards Celebration. q L-R: Sigmatech founder, chairman and chief technical officer Dr. Gurmej Sandhu presents
the 2011 award to Chad Donald, executive vice president of Avion Solutions.
A: There are many! Avion also has been a consistent winner in the Top 15 Best Places to Work in Huntsville and Madison County, appearing on the list in 2009, 2010 and 2011. In 2010, Avion purchased and completely rehabilitated a building (ten years vacant) in the older part of Research Park for our Corporate Headquarters. This is the first time Avion has owned it offices. Avion is an industry leader in Army Rotorcraft System Safety and Automated Asset Management Technology. Our programs result in cost savings to our customers and ultimately, the taxpayers.
Q: What are your goals for the next five years? A: Again, we have many: • Develop new expertise/capability that can be transitioned to non-government business sectors to reduce the dependence on the DoD sector that is anticipated to receive substantial budget reduction through 2016. • Retain and improve our key employees. • Improve the stability and profitability for our shareholders. • Connect applied R & D efforts to three new customers next year. • Pay off leveraged ESOP loan (a year early). This will result in an increased line of credit if needed, lower interest rates and higher per share values for our employee owners. 28
February 2012 Initiatives
• Develop five new Project Managers to improve our “bench strength” for upcoming growth among new customers achieved in 2010 and provide growth enabler. • Identify new opportunities for both funded and cost-sharing research opportunities to develop new product commercialization strategies; enabling future business product line and revenue growth.
Q: What is the company’s vision? A: Avion is dedicated to providing the most efficient, high quality solutions to our customers, fully satisfying and exceeding requirements and expectations in a cost-effective manner for all projects delivered. Avion’s success is determined by the success of our customers in performing their mission. We strive to be a leading provider of specialized engineering and logistics services; use sound, practical, engineering methodologies; continually improve our standard of service through clear and responsive communication; approach each project as an opportunity to establish a new “personal best” in professionalism, service and quality; and maintain a work environment that encourages and acknowledges exemplary service.
Q: How has being active in the Chamber helped you? A: The Chamber has provided the venues to provide exposure in many of the areas that Avion has achieved success, Best Places to Work, Small Business Award, etc. The Chamber has many resources that allow companies such as Avion to flourish and gain support from a truly professional Staff.
Q: What does the Award mean to your company? A: This is a great honor to all Avion employees. We have been recognized as being a good employer, good partner, and positive contributor to the whole community. Thank you for recognizing the Avion Employee Owners Team! • Initiatives February 2012
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More Than One Strata-G Merging Military Aircraft with Pink Flamingos Has Huntsville’s StrataForm Soaring
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StrataForm employees putting finishing touches on pink flamingos.
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February 2012 Initiatives
hat do aircraft avionics line-replacement units (LRU) have in common with plastic pink flamingos? Metaphorically speaking, they are all cut from the same mold. Technically speaking, they are both born from the same diversified manufacturing ingenuity for which Huntsville is famous. But economically speaking, they are both the offspring of a synergetic relationship between the local business community and native Huntsville businessman Devin Whitaker and his wife Beth, who recently retired from the U.S. Army Space & Missile Defense Command (SMDC) after 20 years, to help run the two growing companies. With 18 years as a civilian working for the Army on Redstone Arsenal, Devin first breathed life into Strata-G Solutions, Inc. in 2008, after leaving his job as a consultant to a local Department of Defense contractor. Providing complex systems engineering and design integration, prototyping, and weapons and defense manufacturing for the Army and its contractors, in 2010 Whitaker saw an opportunity to expand and diversify some of those capabilities into mass-market retail production. “We leveraged Strata-G’s expertise in hardware-related programming, design and engineering to produce everyday products you can buy at Dollar General, Target, Lowes, Kmart, Home Depot and Sam’s Club,” Whitaker said. “The result is our sister company StrataForm, which manufactured a million pairs of pink flamingos last year, the No. 1 pink flamingo seller on Amazon.” StrataForm also manufactures gardenrelated plastic products like watering cans, planters, and birdbaths; as well as a sundry assortment of StrataCool coolers. “As StrataForm began to take off last year, we researched non-regional, non-seasonal
products we could produce year round,” he said. “The cooler market is a half-billion dollar market worldwide. The industry’s current largest producer has $150 million of those sales.” With a pie that large, Whitaker intends to take a large slice of it; and right now, he has the pie knife in-hand. “In just 18 months, we have agreements with Target, Kmart and many others,” he said. “And we just signed a contract with comedian Jeff Foxworthy to endorse the StrataCool products. That is huge!” On the drawing board is a unique product called the ChillSpot cooling dog bed. Made from similar material and with the same concept as the Stratacoolers, this plastic bed for dogs has slots underneath its surface in which cooling elements are inserted that maintain an air conditioning-type of sleeping spot for Fido. Named one of Forbes Top 20 Leading Metros for Business last July and touted by many publications as ideal for high-tech growth, Whitaker feels Huntsville is an ideal environment in which to build a company because it is friendly to economic growth and small business. “Without the partnerships formed between Strata-G and the Huntsville business community, our expansion into more mainstream commercial manufacturing and the opening of our subsidiary company StrataForm, couldn’t happen,” Whitaker said. “It takes a lot of faith and hard work to build a business, but you cannot underplay the significant roles the Chamber of Commerce of Huntsville/Madison County and its affiliates play in that. We squeezed five years of work into just a little over a year to accomplish it and there are a lot of people who helped.” Whitaker points to relationships with staffing companies who screen and recruit job applicants, banks who aid with finances, the City for licensing and permits, as well as accountants, investment brokers, attorneys, inspectors, retailers and wholesalers, all who contribute to a company’s needs and growth. Acknowledging Huntsville’s friendliness to Strata-G and StrataForm, the two companies and its owners are actively giving back to Huntsville. StrataForm took over a facility left abandoned by a company that shipped its jobs to Venezuela during the automotive crisis. StrataForm in turn moved nearly 160 jobs back to the United States from China. continued on page 33 Initiatives February 2012
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Making Connections The Chamber of Commerce of Huntsville/Madison County hosts numerous events each month to create networking and business growth opportunities for members and to coordinate efforts to grow the local economy. Examples of recent events include:
Chamber of Commerce of Huntsville/Madison County
2 0 1 2 S TA F F Chip Cherry, president & CEO Laura Kendrick, manager, investor relations Tammy Gregory, executive assistant
Communications
Holiday Open House presented by AT&T
Hundreds of Chamber members kicked off the holiday season at the Chamber’s Annual Holiday Open House – enjoying tasty treats by Chocolate Gallery, Endless Catering, Gigi’s Cupcakes and Tommy’s Pizza.
Patricia McCarter, communications director Kristi Sherrard, graphic designer
Economic Development Ethan Hadley, VP, economic development John Southerland, Director, Cummings Research Park | Project Manager
Harrison Diamond, economic development coordinator
Amy Locke, industrial development / existing industry assistant
Finance & Administration Christy Nalley, director, finance & administration Jamie Gallien, IT manager Mary McNairy, accounting specialist Lori Warner, accounting specialist
take :90
Joe Watson, facilities supervisor
information exchange
Governmental Affairs
The Chamber held a guide to applying for the Small Business of the Year that will be presented at the Chamber’s Annual Small Business Awards Celebration, one of the Chamber’s premier events.
Mike Ward, VP, governmental affairs Tina Leopold, governmental affairs assistant
Member & Small Business Services Jenni Jeffers, director, member & small business services
Mike Brazier, new member coordinator Terrie Ledbetter, member relations specialist Donna McCrary, membership specialist
Redstone Update presented by SAIC
More than 500 people attended the Chamber’s first-ever Redstone Update and heard about various commands and agencies on Redstone. Special presentations were made by the Garrison, AMC, SMDC, MDA and AMCOM. Chamber members benefit from networking events, electronic and printed publications, educational programs for small business and, perhaps most importantly, the knowledge that they are part of a collective effort to establish Huntsville/Madison County as a stronger, more visible community in the global competition for economic growth.
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February 2012 Initiatives
Mitzi Floyd, small business coordinator Kathleen Byrne, events coordinator
Research & Information Services Ken Smith, director, research & information services Hiroko Sedensky, web designer/research specialist Urisa Rêvé Smith, information services specialist Ashley Shady, resource desk coordinator Becky Moretti, resource desk assistant
Workforce Lucia Cape, VP, workforce Amanda Bishop, workforce assistant
Associated Organization WBCNA (www.wbcna.org)
Chamber of Commerce of Huntsville/Madison County 225 Church Street, Huntsville, AL 35801 phone 256-535-2000 / fax 256-535-2015 www.HuntsvilleAlabamaUSA.com
More Than One Strata-G, continued from page 31 – “We need the labor force and the labor force needs jobs, so we are happy to do our part,” Whitaker said. According to StrataForm vice president Marty Hirsch, the company salvaged millions of dollars in unused machinery and equipment that was rusting and collecting dust sitting in vacant plants in Mexico. “We brought it back here where we have added new electronics and upgraded and modified it to our needs,” Hirsch said. “We have ISO 9001-2008 certification from the National Quality Assurance (NQA) registrar, assuring our customers the highest possible quality. We implement procedures that ensure accountability and continuous proactive improvement to our products and how we make them.” Currently, Strata-G occupies a 100,000square-foot plant near the Huntsville International Airport where they perform a number of integrative and assembly processes for shipping products all over the world. They employ 125 people with annual revenues of $20 million. The StrataForm facility consists of 200,000 square feet of manufacturing space off Wynn Drive. They employ 135 workers, running three shifts six days a week, and they showed revenues of $22 million their first year in business. “We have an exciting future designing and prototyping our own proprietary products,” Whitaker said. “We have several ideas in-house, and we are always looking for innovative products to manufacture for others. We encourage people who feel they have a legitimate product idea but aren’t sure how to manufacture it, to present their ideas to us. If they do not already have a design but need help, we have engineers who can put those ideas into a blueprint for production.” The Whitakers live by the principle that to whom much is given, much is required. Devin is a member of the Executive Board of Directors for The CARE Center, he serves as an executive advisor to several public organizations, and he is active in local civic, church and school activities. “As a part of the Huntsville community, we are required to give back to the community,” he said. “As a small business in that community, we are required to provide a quality product, at a fair price, with customer service people can trust, and on-time delivery.” • Kimberly Ballard Initiatives February 2012
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Return on Investment, continued from page 27 – Huntsville, Madison and Madison County. We also know that the investment has paid itself back many times over. The community continues to grow the bottom line and that means more potential customers, clients and opportunities for us all. “I want to be clear, we don’t invest in HREGI because we look at this as charity – we invest because we do expect a return on that investment.” Ron Poteat, 2012 Chamber chair-elect and the North Alabama Area Executive for Regions Bank, said the HREGI strategic plan is reviewed annually to ensure that the Chamber’s mission continues to be met in a changing and challenging economy. “There are a number of areas that make up the HREGI strategic plan,” Poteat said. “Those include growing and preserving the Huntsville Metro’s existing economic base and business; recruiting targeted businesses and working to diversify our economic base; supporting efforts to ensure we have the quality and quantity of workforce to meet our employers’ needs; enhancing the community’s image; identifying and rectifying
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issues that may limit our economic development; and being accountable to our investors. “Without that investment, the Chamber cannot recruit targeted industries and workforce and develop the community’s federal and state agendas that are so critical to our federal programs and community infrastructure needs. Investment in HREGI is what enables that to happen.” Between 2004 and 2010 – when HREGI was developed and implemented – new and existing employers in Huntsville/Madison County announced 30,000 new jobs. The seven-year goal was 17,500. This number by far led the state and compared favorably with other peer technology communities such as Austin, Nashville and Atlanta, among others. The total announced capital investments for that same period was $1.9 billion, compared with a seven-year HREGI goal of $1 billion. In 2010 the Chamber unveiled a goal of getting 400 announced jobs from new employers and 2,100 announced jobs from existing employers. These goals were exceeded in 2010 with 652 announced jobs from new
employers and 2,249 announced jobs from existing employers. The Chamber has a plan, and it implements the plan. The results over the past seven years have far exceeded those of just about any community nationwide with which you could compare Huntsville/ Madison County. For every technical job created, another .86 jobs are created – and the trickle-down effect is substantial. When the implementation of HREGI is successful, the community as a whole is successful. More banks, car dealers, retail opportunities and restaurants result. Our Chamber’s ability to protect and grow critical government, space and defense programs is immeasurably impacted in a positive way. The Huntsville/Madison County region has a staggering amount of intellectual talent. Thanks to HREGI, the Chamber of Commerce is able to continue preparing and promoting our region for the ultimate expansion and use of this talent for the betterment of each of our citizens’ lives. • Laura Kendrick
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