Contents
Fouts Commercial Photography
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Chairman’s Column
7 Calendar
14 12 16
26 43
8
139th Chamber Annual Meeting
10
Total Resource Campaign Sets Record
12
Stacia Robinson Named Chamber’s Point of Light Award Winner
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Hyundai Power Transformers USA Celebrates Ribbon Cutting
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Q&A with Ashley Frye, Vice President of the Production Division of Hyundai Motor Manufacturing Alabama
24
The RSA Dexter Avenue Building is Formally Dedicated
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Montgomery County District Attorney Ellen Brooks Receives the Athena Award
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Experts Offer Forecasts at River Region Economic Summit
34
Industrial Partners Plays an Important Role in Economic Development
36
The Alley is Expanding and Will Offer New Retail Outlets
40
Meet the 2012 Chamber Chairman C. Lee Ellis
43
Imagine a Greater Montgomery II A Next-Level Economic Development Strategy
52
2012 Montgomery Area Chamber of Commerce Board of Directors
56
Alabama Gov. Robert Bentley Praises the State’s Work Force
57
Rep. Terri Sewell Encourages Incentives for Small Businesses
58
Business Buzz
66
Members on the Move
68
New Members
74
Ribbon Cuttings and Ground Breakings
75
Economic Intel
January 2012
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January 2012 Montgomery Business Journal
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Montgomery Business Journal January 2012
Design
Copperwing Design Photographer
Robert Fouts On the cover:
C. Lee Ellis is the executive Vice President of Operations at Alfa Insurance Companies, and the 2012 Chairman of the Board of Directors of the Montgomery Area Chamber of Commerce. Advertising:
Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com
Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 4, Issue 1. POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.
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Chairman’s Column At the Chamber’s139th Annual Meeting in December, outgoing Chairman Larry Puckett passed the Chairman’s gavel to me in grand style, driving a red Camaro convertible. After the great year we had under Larry’s leadership, I think I’m going to need that sports car! What a great way to signify the start of a new year for the Chamber, and for our community, with a high energy level and tremendous momentum. You can feel the energy in Montgomery, and it is the result of so many people who are working in partnership to make this a better place for all. The Chamber will embark on the Imagine a Greater Montgomery II strategy this year, built upon the foundation of the four goal areas of the original Imagine a Greater Montgomery plan. At our Annual Meeting, the Chamber debuted a new video about the progress and power of partnership rallied around the Imagine strategy. I encourage you to watch the video at montgomerychamber.com/celebrate, and then share it. I know it will make you proud of this city we call the capital of dreams.
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Montgomery Business Journal January 2012
C. Lee Ellis, 2012 Chairman of the board of directors Montgomery area chamber of commerce
Calendar Montgomery Area Chamber of Commerce Events
JANUARY 9
BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required
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EGGS & ISSUES WITH SENATOR RICHARD SHELBY Presenting Sponsor: Troy University 7:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Details and registration: www.montgomerychamber.com/shelby
60 MINUTE COFFEE Sponsored by COSTCO Wholesale 8 AM @ COSTCO Wholesale 8251 Eastchase Parkway, Montgomery Free event, exclusively for Chamber Members SMALL BUSINESS LOAN CLINIC 12 Noon @ Small Business Resource Center 600 South Court Street, Montgomery Free event. Registration not required
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FEBRUARY 6
STATE OF THE CITY & COUNTY Presenting Sponsor: Alabama State University 7:30 AM – 8:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/state
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BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required
26
BUSINESS TAXATION WORKSHOP Two Sessions: 3 PM & 6 PM @ Small Business Resource Center 600 South Court Street, Montgomery Free event, open to the public BUSINESS AFTER HOURS Sponsored by WVAS-FM Radio 5 PM @ Montgomery Area Visitor Center, 300 Water Street, Montgomery Free event, exclusively for Chamber Members
BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required
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ENTREPRENEURIAL UNIVERSITY Presenting Sponsor: Integrated Computer Solutions, Inc. 6 AM – 8 PM @ Small Business Resource Center 600 South Court Street, Montgomery Registration: www.montgomerychamber.com/eu
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60 MINUTE COFFEE Sponsored by The Deli at Alley Station 8 AM @ The Deli at Alley Station 130 Commerce Street, Suite 100, Montgomery Free event, exclusively for Chamber Members
16
MINORITY BUSINESS DEVELOPMENT COMMUNITY FORUM Presented by Care Ambulance 7:30 AM @ Small Business Resource Center 600 South Court Street, Montgomery Registration: www.montgomerychamber.com/forum
20
BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required
22
LUNCHWORKS Noon @ Small Business Resource Center 600 South Court Street, Montgomery Registration: www.montgomerychamber.com/lunchworks
23
BUSINESS AFTER HOURS Sponsored by Jack Ingram Motors 5 PM @ Jack Ingram Motors 227 Eastern Boulevard, Montgomery Free event, exclusively for Chamber Members
Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention & Visitor Bureau
January
February
1/5-1/8
Disabled American Veterans Winter Meeting
2/9-2/12
Health Occupations Students of America Convention
1/13-1/15
The American Legions Meeting
2/9-2/12
Alabama Sheriff Conference
1/16-1/19
Alabama Association of Realtor Winter Conference
2/14-2/17
Alabama Farmer’s Cooperative Annual Meeting
1/19-1/22
Alabama Music Educators Association Conference
2/23-2/26 YMCA Youth Legislature
1/24-1/24
ADEM Nonpoint Source Conference
2/24-2/25
Student Alabama Education Association Meeting
1/25-1/28
Alabama Football Coaches Association Conference
2/25-3/1
Home Builders Association of Alabama Board Meeting
January 2012 Montgomery Business Journal
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Montgomery Business Journal January 2012
139th
Montgomery Area Chamber of Commerce
Annual Meeting
The 2011 Annual Meeting was held December 5 in the Montgomery Performing Arts Centre, with a reception following in the Alabama Ballroom of the Montgomery Renaissance Hotel & Spa at the Convention Center. The stage was set by Steppenwolf’s “Born to be Wild,” smoke and lights as 2011 Chairman of the Board, Larry Puckett, rolled onto the stage in a 2012 cherryred Chevy Camaro. The annual video presented a “wild” year of progress for the Chamber and for Montgomery and the River Region. Review the video at www.montgomerychamber.com/celebrate.
1. 2011 Chairman of the Board of Directors, Larry Puckett, arrived onstage at the Montgomery Performing Arts Centre in a 2012 Camaro. 2. Larry Puckett outlined the many successes of 2011 for the Chamber Membership. 3. Larry Puckett ended the evening with the traditional passing-of-the-gavel to the 2012 Chairman of the Board, C. Lee Ellis. 4. The 2011 Total Resource Campaign Volunteers were called on stage for a standing ovation. The record-breaking campaign raised $856,676. 5. The Membership was entertained with an acoustic performance by Skyler. 6. The Chairman’s Award was presented to Montgomery County Commission Chairman Elton N. Dean, Sr. 7. More than 600 attended the 139th Annual Meeting in the Montgomery Performing Arts Centre.
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Shattering Records
Chamber’s Total Resource Campaign Surpasses its Goal by David Zaslawsky
It is easy to understand the sleepless night Larry Puckett had right before the completion of the Montgomery Area Chamber of Commerce’s Total Resource Campaign (TRC). As the TRC chairman (and by the way, also the Chamber’s Chairman of the Board during the campaign) Puckett desperately wanted to reach the goal of $750,000. The TRC funds the Chamber’s events, programs, publications, electronic media and aids in recruiting members. He said he woke up around 2:30 a.m. and never went back to sleep. It had been a difficult sixth annual TRC, which ran into strong headwinds from a declining number of corporations headquartered in Montgomery; a sluggish economy; and the investment campaign for the Imagine a Greater Montgomery II economic strategy. If all of those factors weren’t enough, the structure of the TRC had been dramatically changed. In the inaugural campaign, there were 180 volunteers selling to Chamber members and that was followed by 80 the next year and then 75. The past two campaigns had between 50 and 55 volunteers to sell. It was decided to reduce the number of volunteers. Now they were recruited instead of being appointed by their bosses. The volunteer salespeople were experienced except for three or four rookies, who had demonstrated sales ability. “I can’t emphasize enough of what these folks did,” Puckett said about the 33 volunteer salespeople. “What they did under the conditions they worked in was unbelievable. I don’t think I’ve ever seen a bunch try any harder in anything. They knocked it out of the park.”
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Montgomery Business Journal January 2012
That goal of $750,000 was smashed with a final figure of $856,676, an all-time record that broke the 2010 campaign mark of $760,474 by nearly $100,000. “We had a very successful campaign this year given those circumstances,” said Puckett, who was the TRC chairman for the second annual campaign in 2007. “To me, it was a vote of confidence for the Chamber and the staff that people would come to the table and participate in our TRC as well as the Imagine strategy.” The volunteers were so dedicated that during a wrap-up meeting, someone suggested to continue selling because there were businesses that wanted to be involved with the Chamber. “They (volunteers) knew what they were doing and they enjoyed it,” Puckett said. “They wanted to be part of us succeeding. It was really a pleasure. It was exciting and got me fired up just watching them perform. It made me feel young again just to be associated with all that energy.” Patsy Guy, vice president, member & investor relations for the Montgomery Area Chamber of Commerce, said another key factor in the campaign’s success was the behind-the-scenes work of former Chamber chairmen Mac McLeod and Carl Barranco, along with previous TRC chairmen Ray Petty, Gene Crane, Guy Davis, and Nimrod T. Frazer Jr. “I am real comfortable with the structure,” Guy said. “Larry said it best: ‘We are going to have one superstar team with one goal in mind and that was $750,000.” Reaching that goal was in doubt. Puckett said entering the final week of the campaign the volunteers were shy of $750,000. He was also nervous about having to attend a Chevrolet meeting
Year
Amount raised
Chairperson
2006
$553,365
Ray Petty
2007
$706,000
Larry Puckett
2008
$669,907
Gene Crane
2009
$683,360
Guy Davis
2010
$760,474
Nim Frazer
2011
$856,676
Larry Puckett
Source: Montgomery Area Chamber of Commerce
during the last three days of the campaign. Puckett is president of the Larry Puckett Chevrolet dealership in Prattville. He was making calls to volunteers and asking if they needed any assistance. “I wanted to be sure if we didn’t hit our goal that I felt like I had done the best I could to try and get us there,” Puckett said. Puckett said he experienced a wide range of emotions during the campaign and when it was over, he said he was relieved. “I am appreciative and grateful for all the volunteers and what they did.” •
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Chamber News
Stacia Robinson is the winner of the 2011 Point of Light Award.
Helping create
A community
Where YouWant to Live Stacia Robinson receives the Chamber’s 2011 Point of Light Award by David Zaslawsky photography by Robert Fouts
The BeneChoice Companies President Stacia Robinson grew up in what she called “a volunteer-centric family.” She said, “You have to get involved and give back and not only give back, but get involved to create the community you want to live in. It’s just natural for me to do that.” Robinson said one of her strengths is “identifying other people who could be involved and should participate.” She has been involved and participated in numerous groups and organizations including: > Pre-Trial Diversion Commission for 23 years. > Board member of Leadership Montgomery.
> Board member of Leadership Alabama. > Past executive board member of Montgomery Education Foundation. > Board member and past chair of the Montgomery County Department of Human Resources. > Board member and past president of Montgomery AIDS Outreach. > Small business campaign chair and past board member of the Montgomery Area United Way. > A member of the group that started Envision 2020. > The first African-American female on the board of the Montgomery Area Chamber of Commerce. > Being involved with Resurrection Catholic Missions for years. > Appointment to the Alabama Electronics Securities Board. She is the consumer advocate.
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Montgomery Business Journal January 2012
> Past Southern Division Governor of Toastmasters International. > Past president and member of the Montgomery Advertising Federation. She was named the Montgomery Area Chamber of Commerce’s Point of Light Award winner, which honors an outstanding minority or woman-owned small business for its achievements and contributions to the community. The previous award winners are Cedric Varner, CTV Communications; Keith Eakins, Hyundai Motor Manufacturing Alabama, LLC; Martha Hawkins, Martha’s Place; Susan Odle, Success Unlimited Academy; Owen Burnett Jr., Burnett Civil Contracting; and Lisa Perkins, Titanium Music Productions Group Inc. “I’ve been around for 20 years and I’ve never been nominated for anything like that,” said Robinson, who is also the executive director of Business Network International (BNI) franchise for Central Alabama and Southwest Georgia.
“I am really humbled by being acknowledged for just doing what I do, which is to help people,” she said. A retired Air Force captain, Robinson served as a vendor liaison, with her office starting the first computer conference – which has grown into the annual Air Force Information Technology Conference. She also learned a valuable lesson while escorting then Col. Lloyd Newton, who later became a four-star general. He told her: “ ‘Colonels don’t walk the halls looking for captains. Captains walk the halls looking for colonels.’ ” Said Robinson: “It’s been a huge help to me to realize … you have to build your credibility and you have to build trust with people and that’s my responsibility – not anybody else’s.” Her BeneChoice Companies is an employee benefits firm that explains and enrolls a company’s employees into their benefits program. Her firm conducts group presentations and provides benefit booklets. There is no charge to the employer and her clients include the State of Alabama and City of Montgomery. The BeneChoice
agents discuss additional insurance with the individual employees that include disability, life insurance, critical illness, cancer coverage, hospital confinement, long-term care, accident and health. “People realize that they have huge gaps in their coverage and that they need to understand what they have and what they don’t have,” Robinson said. Her other company – BNI – is a memberbased franchise in which business owners meet weekly to give each other referrals. The members carry each other’s business cards and while conducting business, there may be a job opportunity for another member. Here’s how it works: A Realtor may be a BNI member and a house they are trying to sell may need a plumber or electrician or a painter or a lawn service. The Realtor would then refer their client to other BNI members. There are 90 members in Robinson’s territory, who pay a membership fee. Her company tracks revenue that the members generate for each other and the number of referrals. •
January 2012 Montgomery Business Journal
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Korean Company Joins Alabama ‘Family’ Hyundai Power Transformers USA calls Montgomery home by David Zaslawsky
Ontario, Canada-based Hydro One ordered its first power transformer from Hyundai Heavy Industries nine years ago. In 2009, Hydro One, which is the largest electricity transmission and distribution in Ontario, was looking for a long-term partner, according to Peter Greg, the firm’s executive vice president. After a competitive bidding process, Hydro One ordered 47 power transformer units from Hyundai Heavy Industries (HHI) and about half of the total has been delivered. “It’s a great company; very, very highquality products; great customer service,”
Greg said about HHI during a grandopening ceremony for Hyundai Power Transformers USA (HYPO) at its facility at Interstate Industrial Park in Montgomery. About 400 people attended the ceremony for Hyundai Power Transformers USA, whose parent company is HHI. The guests, who included members of the state’s legislative delegation, Montgomery City Council and Montgomery County Commission, received a red-carpet welcome along with a string quartet and saw massive banners that read: “Committed to the customer needs” and “Quality is customer delight.”
“We’ve been looking forward to this plant,” Greg said. “It’s certainly nice to have an onshore facility. It reduces the delivery time it takes and takes away the risk of getting it across the ocean.” Daniel Recker, managing director of American Electric Power, which serves 5.3 million customers in 11 states, talked about his company’s long relationship with HHI – a relationship based on mutual trust. While the grand-opening ceremony was being conducted in HYPO’s final assembly area and next to the testing area, employees were busy producing the company’s first two power transformers. HYPO Production Manager Mukund Bhagwat said those transformers are expected to be completed in January. The power transformers, which can weigh 500 tons when fully loaded with oil, cost between $500,000 and several million dollars, according to Bhagwat. The smaller unit, which weighs about 80 tons, can be transported by truck or rail and the 110-ton unit will be moved by rail. A train shuttle will transport the units from inside the final assembly area to outside the building. The 260,000-plus square-foot facility has a capacity of 200 units a year and when fully staffed will have 500 employees. That means 400 more will be added to the current staff.
Fouts Commercial Photography
A host of dignitaries participated in the official ribbon cutting for Hyundai Power Transformers USA.
“This is certainly the type of industry and type of jobs we want for this state,” Alabama Governor Robert Bentley said at the grand-opening ceremony.
“We’re privileged to have these jobs coming before us,” Montgomery County Commission Chairman Elton N. Dean said. “We recruit you. We tell you all the great things that we are going to do. We give you incentives, but that is not where we stop. “You’re family and you have a home here and we will always be that family. We will always be there for you. So 10 years, 15 years down the road if there is a need that you have you can always (count on us) and we want you to remember that.” HHI President and CEO Jai-Seong Lee thanked the State of Alabama, City of Montgomery, Montgomery County and the Montgomery Area Chamber of Commerce “for their support, encouragement and commitment extended to Hyundai Heavy Industries during the entire process of giving birth to Hyundai Power Transformers USA.”
He said he hoped the company’s $108 million investment in the Montgomery facility will stimulate the local economy as well as Korea’s. “This is an American factory on American soil – an Alabama factory on Alabama soil,” Lee said. “(I) envision a great opportunity to grow together based on mutual trust and respect. “My strategy is now to strengthen and consolidate Hyundai’s position and competence as a world-class electrical equipment supplier - the cornerstone of which is the opening of this new factory today here in Montgomery. With the combination of Hyundai’s production technology and the State of Alabama’s talented human resources a new crosscultural dynamic of growth will emerge in making this plant a showcase of collaboration and partnership between the State of Alabama and Hyundai Heavy Industries.”
HYPO Purchasing Manager Andrew Sanders said, “The key to our success is the expertise and dedication of our skilled team members. As our operations grow, we will look forward to welcoming many more to our team members. “Alabama has extended a warm and gracious welcome to us and we will do our part reciprocating the kindness we have been so privileged to receive. Today marks an important step on our exciting journey to build world-class transformers here in the United States. Ladies and gentlemen, Montgomery, Alabama, is now the home of Hyundai Power Transformers USA and we are glad to be home.” •
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Communication Leads to Success Q&A with Ashley Frye
Ashley Frye is vice president of the production division of Hyundai Motor Manufacturing Alabama (HMMA). He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: What are your responsibilities as HMMA production director?
Fouts Commercial Photography
Ashley Frye is vice president of the production division of Hyundai Motor Manufacturing Alabama.
Frye: I am responsible for all of our production operations and that includes the press shop to our weld assembly operation; paint shop; general assembly; two of the engine shops that we have onsite; all of our production control or logistics operations; and our maintenance organization. MBJ: How many people work in those areas? Frye: A little over 2,000. MBJ: A predecessor said that the production director sets the tone. Do you agree with that and what does that mean to you? Frye: Absolutely. We maintain here an atmosphere of what I call civility. It dovetails into all of our key performance indicators or our performance objectives here. You establish that kind of atmosphere from the top down. When I grew up as a kid, my dad was a military man. He always maintained that kind of atmosphere within the household. In fact, while growing up I never knew my dad to ever utter one curse word. That impressed me. Later, being in the military and working for Nissan for 22 years, I was certainly surrounded by that kind of language and behavior. I could see that when you treat people with dignity and respect – you get the best out of them. When
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Montgomery Business Journal January 2012
you use the other style of management, you might get the end result, but not necessarily the best effort out of your (employees). MBJ: How many team members are in general assembly? Frye: About 1,000. By establishing within the general assembly staff and later expanding it out to other areas of the plant – I was able to prevail upon everyone that if you use that kind of management style (of civility, dignity and respect) you receive the best results from everyone. MBJ: Do team members come up and tell you how much they appreciate a management style of civility, dignity and respect? Do you get that type of feedback? Frye: Yeah. I spend a minimum of 25 percent of my day and I try to do more depending on the day of the week – talking to team members. I’ve been able to establish from very early on this ease of comfort in having a dialogue with everyone here. I can tell you that I get a lot of feedback from team members on a variety of different subjects. And one of them occasionally is related to what you just said. MBJ: What are your top priorities and also your greatest concerns? Frye: My top priorities are related to the business plan. That’s my job – to ensure that we meet those (plans) and also along with that, I have to develop the detail that allows us to achieve it. Prior to the start of the calendar year we put together what we call our business plan and in this case (mid-October) we are working on our 2012
business plan right now. It outlines all of the central objectives of the business from how effectively we want to run our operations, our up time, maintenance down time, our manpower, our inventory control. It’s my job to ensure that I communicate those objectives effectively to the team members so at the start of the year I’ll have a meeting. I have monthly meetings in which I gather all of the team members on both shifts. It takes a total of seven meetings throughout the day in order to accomplish that because we don’t have one area on this site that will allow us to congregate everybody. I will review the results of the prior month and also lay out the detailed objectives for the coming month so that everybody clearly understands what’s going on around here. MBJ: It sounds as though you are the coach and team members are the players. Is that a fair analogy? Frye: It’s actually a very appropriate analogy because from time-to-time I’ll use in my monthly communication analogies related to SEC (Southeastern Conference) football. It’s true – everybody can relate to that. MBJ: Do you see yourself as a coach?
Frye: Sure I do. MBJ: And these are your players. Frye: I guess you could say that in a manner of speaking. What I’ll do on an ongoing basis… it is part of my walking about the plant and talking to the team members. It’s not only just talking – I’m looking at the how the operations are running. It allows me to communicate with the team members. When I see an opportunity, particularly with our first-line supervisors, I can provide them a coaching moment. I see how they are going about conducting their business and I see opportunities for improvement, I’ll share that with them – much like a coach shares improvement ideas with members of their team. MBJ: What are your greatest concerns? Is it not meeting the objectives? Frye: We have in operations what are known as the four Ms, which are man, machine, method and materials. Those are the four great variables. You might hear a reference to five Ms or six Ms, which includes maintenance and morale. MBJ: Would you please elaborate?
Frye: Starting with the machine. We have what I call a fairly robust system here for the repeatability and consistency of all our equipment – it is quite high. It is ensuring that we take care of the equipment. We have preventative maintenance protocols here that we use to ensure that even if the equipment looks like it is running good and it sounds like it is running good – you still have to get in there and do certain preventative maintenance actions on it to ensure that it continues to do so. I don’t worry about that so much, but it’s one of those things that I have to consider and act on almost on a daily basis. MBJ: What about the method? Frye: The method is the process we use to assemble the vehicle. We use here what is called standardized work instructions. We develop those prior to the production of a unit. We provide clear, detailed instructions along with pictorials on how to assemble a part onto the vehicle. We recognized that we have got to make the instructions as clear and simple to understand as possible. That is exactly how we write Continued on page 18
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January 2012 Montgomery Business Journal
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Hyundai’s annual U.S. sales 1997 113,186 1998 90,217 1999 164,190 2000 244,391 2001 346,235 2002 375,119 2003 400,221 2004 418,615 2005 455,012 2006 455,520 2007 467,009 2008 401,742 2009 435,064 2010 538,228 2011 594,926
(through November)
Continued From page 17
them so there is no chance for question or error in the interpretation. Plus, along with those documents we train all of our team members and we qualify them to perform certain jobs before we turn them loose. The method is foolproof. Seldom is the time that I’m concerned about that. MBJ: What about the material? Frye: Material is the parts that we use and other stuff like radiator fluid, but mainly it’s the parts. The quality of the product – it’s not a problem for us, but it’s something that we have to maintain vigilance for. We have a great many sources of supply providing material here from bolts and nuts all the way up to big plastic parts or module assemblies. MOBIS (Alabama) for example, gives us our cockpit modules. We ensure that they (suppliers) comply with all of the requirements that we have placed on them. We have a parts certification process that they go through and they maintain their production processes to that. MBJ: If you aren’t terribly worried about machine, method and material – that leaves man. Frye: You’re keeping count, I like that. MBJ: There are 2,000 of them. Frye: We do have quite a few. We don’t have much of an attrition problem here. Most team members when they join us are very happy to be a part of the Hyundai team. It’s due to – you can start with pay and benefits, but coupled with the fact that we make a product… you can look at any Sonata or Elantra running down the road and know that you had your hands on that product. Think of the pride of being associated with that because a lot of folks manufacturing can’t really say that. They can’t relate the product they are making to a finished vehicle. People have issues that pop up from timeto-time and making sure that we take care of our team members in a manner that allows them to come to work every day.
MBJ: In 2010, 300,500 vehicles were manufactured at the plant and the projections were about 330,000 vehicles in 2011. How do you balance the production goals vs. quality? Frye: When you’re developing a product it starts with working with manufacturing engineering folks in Korea. We go over and work with the designers and manufacturing engineering teams to ensure that the part design or the parts structure that they provide to us is conducive towards assembly. Ease of assembly helps you with high quality and we’ve been able to do that here. They are very receptive to our input. We set up our work stations to meet our line speed, which is 73 units per hour. Our whole process from the very beginning to when we’re launching is set up for – going back to the four Ms and dealing with each one of those areas individually and ensure that we develop and validate the process that we are going to use to ensure we can support our quality objectives here. Once we reached that point – we’ve stabilized and we’re launching – we start looking for how to increase our output and it’s not really related to increasing line speed. MBJ: Is 73 units per hour the maximum line speed? Frye: Yes. MBJ: How does operating at such a high volume impact your job as the production director? Does it complicate your job with two 10-hour shifts and a Saturday shift? Frye: It keeps my radar turned on to most sensitive. Certainly, as you point out there is more going on around me, but I’m not running this plant by myself. I’ve got an excellent staff that works for me and I rely on them to take care of their respective area of responsibility. If we are increasing output in one area or there is some kind of issue taking place, I look to them to take the first action. I provide the oversight and input as necessary to manage or resolve any issue that might be taking place. MBJ: What are the hours of the two shifts? Frye: The day shift starts at 6:30 and on an eight-hour shift ends at 3:15; on a 10hour shift, which we’ve been running for a long time now because of the demand for our product, is at 5:15. The night shift starts at 6:15 and on an eight-hour day ends at 3 a.m. and 10 hours it’s 5 a.m.
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MBJ: Is it possible to add a third shift to have three, eight-hour shifts? Frye: It’s certainly possible to do anything beyond what we have established. Going back to this football analogy you used earlier, part of our job is to plan for any kind of contingencies. We are always looking at ways to improve our operation. We look at different operating patterns, but that doesn’t mean we are ever going to do anything with them. MBJ: Would you please talk about the team leaders and group leaders and the roles they play? Frye: Group leaders are our first line of supervision. MBJ: How many people report directly to you? Frye: The team members that report directly to me are the heads of departments. MBJ: Would it be the seven or eight departments you talked about? Frye: Right, there are seven. Team leaders are members of our hourly work force. MBJ: How many group leaders are there?
Frye: I’m not able to respond to that question. MBJ: All those supervisors are also your ears. Frye: Absolutely. MBJ: How important are those people? Frye: They are critical. We have a communication process here… I have the heads of the departments that report directly to me, but I also have a meeting with group leaders every other week (including) human resources. It’s four different sessions that we do during the week to catch the group leaders from day shift. We have to break it up because we can’t pull everybody off at the same time and then the same with night shift. We will pull them aside and if we have any information that needs to be cascaded through the organization or we want to reinforce one of our policies for enhanced understanding or if we want to just do a simple Q&A session. Continued on page 20
Nothing else is possible in the absence of communication.
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Hyundai Annual Sales Sidebar by David Zaslawsky It took Hyundai just 10 months to break its all-time annual sales record as the Korean automaker marched toward the 600,000 plateau in 2011. It was just two years ago that Hyundai’s annual sales broke through the 500,000 barrier and closed out the year at 538,228 units. Sales through the first 11 months of 2011 have already reached 590,000-plus. “Breaking our all-time anytime sales record set in 2010 with two months left in the 2011 calendar year is an accomplishment we take great pride in and is clearly indicative of consumer acceptance of our bold lineup of award-winning products,” Dave Zuchowski, executive vice president of national sales for Hyundai Motor America, said in a statement. “The overall sales environment appears to be stabilizing despite continued fluctuations in traditional economic indicators and we believe those market dynamics position Hyundai well to finish the year on a strong note.” The Sonata and Elantra, which are both manufactured at Hyundai Motor Manufacturing Alabama’s plant in Montgomery, are leading the record-breaking surge. Elantra has already shattered its best year by nearly 35,000 units through October. Add another 12,000-plus units sold in November and the Elantra is 50,000plus units ahead of 2010’s pace. That is an increase of 31 percent year-over-year.
The Sonata, which closed out October about 4,000 shy of its all-time record of 196,000-plus units, passed the 200,000 mark in November for the first time in its history. The Sonata had sold nearly 30,000 more units through November 2011 compared with 2010. What is even more astonishing is the combined sales of the Sonata and Elantra through November 2011 – about 380,000 units – is greater than the total number of Hyundai vehicles sold in 2002 and just 20,000 shy of the 2003 total. More records were expected to be broken when December 2011’s numbers were announced in early January. “With vehicle availability at the highest levels for the year, and with positive demand signals and improving consumer confidence, Hyundai is positioned for a very strong December finish to this record-breaking year,” John Krafcik, Hyundai Motor America’s president and CEO, said in a statement. “While our 35 days-supply level today is low by most standards, it’s the best we’ve seen at the start of a month for some time.” Hyundai sales were up 21 percent in 2011 compared with 2010. October sales increased 23 percent from the previous October sales and November 2011 sales rose 22 percent vs. November 2010 sales. October was also the first full month of sales for the automaker’s Veloster and sales nearly hit 3,800 units. The Veloster is one of four models along with the Elantra sedan, Sonata Hybrid and 2012 Accent, which get 40 miles-per-gallon on the highway. Meanwhile, Hyundai was No. 1 for brand loyalty for the second straight quarter, according to kbb.com. The company’s brand loyalty was 48 percent for the third quarter with Toyota second and Subaru finishing third. Kia was in fourth place and Ford was fifth.
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Continued From page 19
MBJ: How much time do you spend in meetings on a daily basis? When you said you spend 25 percent of your day talking to team members were you referring to meetings or was that walking around the plant and observing? Frye: That’s an interesting question. Today was supposed to be my day not to have any meetings and yet here I am. We have established that this day (Wednesday) is one that allows me to maximize my chance to be out in the shop and talking to team members. It (spending time in meetings) really varies day-to-day. My meeting heavy days are Tuesdays and Thursdays because I don’t like to be tied up in them on Mondays and Fridays. That’s when I feel like the greatest opportunity for interaction out in the shop exists. I’m going to say maybe 20 to 30 percent of my time is spent in meetings. MBJ: You repeatedly talk about interaction and communication with team members. How critical is that to the organization? From what you are saying, is communication the most important thing you do? Frye: Communication is the foundation for our success along with the fact that we have fantastic vehicles that we (build here) and are well designed and easy to put together. Nothing else is possible in the absence of communication. You’ve heard my comment about how I do the monthly communication. Actually, I’ll do an annual meeting in which I roll out the whole year and then month-bymonth. I keep the team members informed to where we are relative to our objectives. It’s so important for our team members to understand what part they specifically play in reaching those objectives. So whenever we have what I call a production hiccup and say we adjust the break time, which we have the flexibility to do. When we adjust the break time, our group leaders and assistant managers go out and touch the team members and say, ‘This is why we are doing it.’ Based on my experience, as long as you can do that – clearly inform the objective – have that understanding of what part everyone plays to reaching that objective and the feedback of where we are relative to reaching it (objectives) then you will always get everybody to cooperate.
MBJ: You’re talking about getting everybody to pull in the same direction and all 2,000 people understand that they are important. It only works with everybody on board. Frye: You nailed it. MBJ: In a speech a couple of years ago at a manufacturing conference, you talked about the importance of the “demeanor of the work force.” Please elaborate about the team members’ morale and how that plays into the company’s success? Frye: There is a relationship of happiness to quality of work that is performed. You can see that in a true craftsman because they like what they do. You can see their passion. Back to the SEC analogy, everybody is so passionate about their support for their team. One of the things that I’ve tried to prevail upon our team members here – we call them team members – team, team: a collective effort to achieve our results. MBJ: You’re saying a happy work force will be a more productive work force. Frye: Yes. You’ve heard me comment about maintaining the air of civility. We don’t
allow abusive language here. We even have a policy that prohibits that. People don’t want to hear that. To me it’s demeaning and when you demean somebody you are demoralizing them. And when they are demoralized their thoughts are not on what they need to be doing, which is performing high-quality assembly work. Thus, we’ve established that kind of atmosphere in here. MBJ: When people are motivated, don’t they perform better at work? Frye: It’s human nature and along with that everybody likes to feel they are surrounded by support. Nobody wants to feel like they have to look over their shoulder and see if someone is trying to stick it to them. It’s all a collective, collaborative, cooperative working effort that we have here. MBJ: To be successful in this type of a business, don’t you have to have that collective, collaborative, cooperative working effort? Or is this the Hyundai way or the Ashley Frye way?
Frye: I certainly have some influence, but this is a Hyundai company. The things that I do here are conforming to the policies that the company has. Regarding large operations and how they are managed, you can go the bookstore and see dozens or perhaps hundreds of books on management style. Over my career, I’ve been at 31 different plants, 12 different countries and 11 different manufacturers; I’ve been in excess of 60 different tier 1s and tier 2s. Most of them seemed to be managed across the whole spectrum. You can see before you even walk in the front door – the curb appeal or the lack thereof – is the indicator of what’s going on inside. There is no easy way to answer that question. It’s getting a group of people to come together and working as a team. It’s all about communication and teamwork. •
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January 2012 Montgomery Business Journal
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In 2010, Hyundai spent $5.1 billion and $2.7 billion of that total was spent in the state – $2.7 billion worth of goods and services from Alabama-based companies.
2010. That represented about 2 percent of the state’s entire gross domestic product. “HMMA was a great success,” Deravi said. “It forever changed the landscape of this area.”
Hyundai’s economic impact exceeds ‘wildest imagination’ by David Zaslawsky During a presentation to political leaders, Auburn University at Montgomery economics professor Keivan Deravi was describing the economic impact of Hyundai Motor Manufacturing Alabama’s facility in Montgomery and its tier 1 and tier 2 parts suppliers. Deravi, special assistant to the AUM chancellor and the state’s foremost expert on economic impacts, kept referring to HMMA as an industry. He repeatedly said that “we did not recruit a company – we recruited an industry.” Just for emphasis that phrase – calling HMMA an industry – was recited a half dozen times in a 20-minute to 25-minute speech. The audience did absorb that message. HMMA was not a company, but an industry and its economic impact with and without its tier 1 and tier 2 suppliers was astronomical. The comprehensive study that Deravi and his staff conducted from May through September, concluded that HMMA and its tier 1 and tier 2 suppliers had a $3.8 billion economic impact throughout the state in
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He said that because HMMA and its suppliers have been so successful “this promises a whole lot more for the future.” Because of Hyundai and its suppliers in the Montgomery area, the region actually had an increase in manufacturing jobs – 3,600 workers – while the rest of the country was shedding them. Deravi said that the area “was experiencing an explosion” of high-skilled, high-paying jobs. He noted that the companies were paying more than the prevailing wages at the time in the manufacturing sector. “The industry that we recruited is a shining star – manufacturers produce something,” he said. Hyundai boasted a 23 percent sales growth in 2010 and now the company’s two-best selling vehicles – Sonata and Elantra – are made in Montgomery and combined account for about two-thirds of all the automaker’s sales. While growing its sales, Hyundai also had a tremendous gain in the U.S. market share, where moves of 0.1 percent are significant. Hyundai’s market share has surged from 4.2 percent at the end of 2009 to 4.6 percent at the end of 2010 to 5.2 percent through September of last year. Another significant aspect of HMMA and its suppliers is the money spent in Alabama. Deravi stressed that it is not important how much money a company makes, “but what’s really important is how much money you spend.”
The following are some of Deravi’s findings about the combined economic impact of HMMA and its tier 1 and tier 2 suppliers in 2010: > Direct employment: 11,620 jobs. > Direct payroll: $419.7 million > Total of direct and indirect employment: 34,000 jobs. > Total of direct and indirect payroll: $1 billion-plus. > Total capital investment: Nearly $2.2 billion. HMMA accounted for almost 50 percent of the combined $5 billion in sales from tier 1 and tier 2 suppliers. “Hyundai Motor Manufacturing could not be more pleased with our contributions to Alabama’s economy and employment,” HMMA President and CEO Y.D. Lim said in a statement. “We are proud of our track record as an important and rapidly growing Alabama employer and as a manufacturer of high-value, high-quality and high-efficiency vehicles for American consumers.” The numbers were equally impressive for the Montgomery area, where 10 to 12 of Hyundai’s 40-plus tier 1 and tier 2 suppliers are located. The following are combined figures for HMMA and its local tier 1 and tier 2 suppliers: > Overall economic impact locally: $1.7 billion. > Direct employment: About 4,300 jobs. > Direct and indirect employment: About 7,000 jobs. > Taxes paid to Montgomery County: $8.3 million.
A key factor to consider, according to Deravi, about 60 percent of all the direct and indirect jobs from HMMA and its tier 1 and tier 2 suppliers are in the manufacturing sector vs. the service sector. He said the manufacturing jobs not only pay more than service sector jobs, but “really move the national economy and global economy” as export-based industries. “Hyundai has surpassed our wildest imagination,” Montgomery Mayor Todd Strange said. “Not only has it done it financially, but we certainly did not appreciate and certainly didn’t recognize the impact that the team members have on our community.” Hyundai also surpassed the careful calculations of Deravi, who was asked by the State of Alabama to conduct an economic impact so an incentive package could be developed to recruit the Korean automaker to Alabama. The state offered Hyundai an incentives package of about $253 million based on the estimate that HMMA would employ 2,000 people, invest $1 billion and have a $100 million payroll. There would be an additional 6,000 direct and indirect jobs created, which included suppliers. The estimated combined
payroll of those 8,000 jobs was $280 million. Deravi said his projections assumed there would be 12 to 15 suppliers. “Now it is a totally different ballgame,” Deravi said. “Now, Hyundai has about 2,700 employees, the original capital investment has grown from $1 billion to $1.5 billion and the payroll is exactly $218 million.” He said there are 41 or 42 combined tier 1 and tier 2 suppliers. Keivan Deravi
ºRick Neal, vice president of administration and general counsel, said that HMMA commissioned the economic impact study because in 2010 the company reached its stated production capacity of 300,000 units and also marked the fifth full year of production. He thanked those at the political leaders’ breakfast held at the Montgomery Area Chamber of Commerce. “The support that Hyundai received from all levels of government should be a model for how other states show support,” he said. “I also want you to know how we are going to rely on that support for the years ahead.” •
“The growth has been more profound than we presumed,” he said. “The original impact was a whole lot more than we anticipated and the growth projector was a whole lot more than we anticipated.” Deravi wondered aloud what HMMA’s impact would be in five years if the company continues on its present trajectory. “HMMA has changed the landscape for future generations,” he said.
January 2012 Montgomery Business Journal
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Bridging Old and New:
The RSA Dexter Avenue Building
‘We have been able to achieve the nearly impossible’ by David Zaslawsky
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Montgomery Business Journal January 2012
photography by Robert Fouts
The design-construction team built the RSA Dexter Avenue Building around the state’s former Supreme Court building, which was fully restored. “The idea for the building – and it is the only building that we know of in this part of the world – is half steel and the other half is concrete,” Bronner said. “It is a totally different sort of engineering feat to be able to do this.” A guest at the RSA Dexter Avenue Building dedication wondered how the Retirement Systems of Alabama could ever find enough tenants to fill all that space. Just give RSA CEO David Bronner some time. During a formal dedication held on the unfinished 12th floor of the 345,000-square-foot building, Bronner announced three new tenants: two law firms and offices of the U.S. Bankruptcy Court. It was earlier announced that Community Newspaper Holdings Inc. was moving its corporate headquarters from Birmingham to the RSA Dexter Avenue Building. The company, which operates on the entire seventh floor and has 44,600 square feet, moved in earlier than expected in August. BB&T is moving its regional headquarters from Interstate Office Park to the fourth floor of the $190 million RSA office building, which transformed the old judicial building that had been vacant for more than a decade. BB&T will occupy about 20,000 square feet. Jackson Thornton Technologies is also listed as a tenant. Bronner said it took about four years to fill the office space at the 23-story RSA Tower, which is the tallest building Montgomery and has 600,000-plus square feet of office space. He said there is about 1½ floors of space remaining at the 35-story RSA Battle House Tower in Mobile, which is the tallest building in the state and has 450,000-plus square feet of office space.
The building’s interior features limestone, white mahogany, marble, stainless steel, gold leaves and granite from Africa and Brazil as well as other sites. There is a four-story onyx wall in the lobby/atrium that actually leans, a grand staircase, and several bridges that connect the new building to the old one. The original building was designed in 1926 as a Scottish Rite Temple and was sold to the State of Alabama in 1932. It was converted into the Judicial Building that housed the state’s Supreme Court and Appellate Court of Alabama. The building became vacant in 1993 and Bronner said he “traded some parking spaces” to buy the building in 2007. Bronner did trade 150 parking spaces at the Alabama Center for Commerce. The state did not have the necessary funds to renovate the vacant building.
David Bronner, CEO of the Retirement Systems of Alabama, talks to guests during a formal dedication of the RSA Dexter Avenue Building.
“Once again, Dr. Bronner has come to the rescue of downtown Montgomery,” the state’s former finance director, Jim Main, told the Montgomery Advertiser. “Dr. Bronner is very enthusiastic about the project and has wonderful studies about how to preserve it.” In the Honor Court outside the restored Supreme Court chambers are life-size sculptures of the five most recent Alabama Supreme Court chief justices. The court also features a display shaped like the state. •
With the Dexter Avenue office building, RSA has invested $1.3 billion in its green-roofed buildings in Montgomery and about 7,000 people work in those buildings, according to Ron Blount, RSA project manager. “Today is a very happy/sad time for the design-construction team,” Blount said. “We have been able to achieve the nearly impossible.”
January 2012 Montgomery Business Journal
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Chamber News
Ellen Brooks is the Montgomery County District Attorney.
Fighting Crime by Preventing It District attorney receives prestigious Athena Award by David Zaslawsky
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Montgomery Business Journal January 2012
photography by Robert Fouts
When Montgomery County District Attorney Ellen Brooks learned she was nominated for the Athena Award she was very uncomfortable. Brooks did not want to be singled out for any individual award from the Women In Business Forum. “I felt we needed to go outside the Women In Business group and there are so many worthy women leaders in our community,” Brooks said. “Someone in the group said to me: ‘Think of it as recognition for the projects you’re working on and use it to promote them.’ I decided that was a good thing to do. It was how to use this opportunity.” She is quick to credit others for successful programs, including two of her crowning achievements: One Place Family Justice Center and Helping Montgomery Families Initiative, which focuses on keeping students in school. “I believe if we are firm in our passion and resolute in our commitment that we will be at the right time at the right place with the right idea,” said Brooks, who was named the 2010 Montgomery Advertiser Citizen of the Year. She is the second recipient of the Athena Award for “supporting, developing and honoring women leaders” as well as “inspiring women to achieve their full potential.” The award was presented before an estimated crowd of 275 at the Women In Business Forum Annual Gathering at Wynlakes Golf & Country Club. Brooks said that there has been a push to establish a Family Justice Center for 30 years and that it was only 11 years ago when the country’s first one was established. The One Place Family Justice Center, which opened in the fall of 2010, assists victims of domestic violence, elder abuse, child abuse and sexual assault. The center provides a wide range of services from legal assistance to counseling and advocacy and contains numerous on-site agencies such as police, prosecutors, experts and specialists in sexual assault, elder abuse and child abuse. “I don’t want to take full credit for any of these projects because I am simply a person who can facilitate things and when necessary lend my title; my office; my time; my energy; my connections.
“I do a lot of energizing people; seeking funding and support; and letting (others) know what we are doing.” Although she has been a prosecutor since 1977 and the county’s district attorney since 1993 – overseeing a staff of 100-plus and 21 attorneys, Brooks said her focus is on crime prevention. “I can try the best case in the world and get a guilty verdict and send somebody to person for life, but when I hold the hand of the mama that lost her child – I cannot bring her child back, which is one thing that she really wants. I have to learn how to deal with that tragedy so I do positive things.” Those positive things include being involved with numerous organizations and creating programs that will help prevent crime – such as Helping Montgomery Families Initiative. “What we are trying to do is get involved early on before the deaths occur and try to turn some lives around and the earliest you can do that is when the child first gets in trouble. If they are in school, they are not in court – that’s my goal. Keep them in school and out of court. It’s certainly the one common denominator I’ve seen in my 35-year career.” When students are suspended, they will receive a letter from the District Attorney’s office, telling the student to “straighten up and fly right,” Brooks said. The District Attorney’s office wants to know why a student is suspended – what is going on in their life. She said 85 percent of those students do not get suspended a second time, but the ones that do get a second letter and it’s not as nice. That letter warns the student “we’re coming to see you.” A year before the program began, there were 33,000-plus suspensions and that number has been reduced by 21 percent. “What we are learning from the first two or three years we’ve done this, is that most of these kids are experiencing. mental health issues or in their family there is a mental health issue,” said Brooks, who expected the primary reason to be drug-related or sexual abuse
“We have formed a multi-disciplinary team that brings together all of their records and information about these families. We literally send someone to the home who interviews everybody in the home – and opens the refrigerator. We go through a series of steps and documents and hear what the family says it needs and we observe (and come up with) what we think they need. We come up with a plan and then we make sure they follow the plan. “I don’t want to put them in jail – that is not my goal. My goal is to get them to follow through.” Brooks praised the Women in Business Forum, which is an initiative of the Montgomery Area Chamber of Commerce. “It’s been fantastic for me. One, it gets me out of my environment. Prosecutors tend to hang out with prosecutors – lawyers tend to hang out with lawyers. I go into that meeting and there are 20 women with totally different career paths – some of whom I knew; others I never met. It invigorates me. I find out what they’re doing; what they’re thinking. “The speakers that we’ve had have been educational – very informative. The camaraderie we’ve built has enabled us to do some projects together, which have benefited things like the Family Justice Center,” she said, referring to decorating the center for the holidays. “The annual gathering is fabulous because it allows us to reach out to even more women and identify leaders and encourage people.” And speaking about reaching out. This district attorney arranges her own appointments. When asked why, Brooks said, “The negative is I’m too controlling. The positive, which I would prefer to focus on – I don’t ever want to lose touch with – I am the public servant of the people of Montgomery County. They didn’t elect me to be some high, muckety-muck that you can’t reach. “I was trained by someone who tried real hard to return every message. It is hard to get me on the phone the first time because I’m usually doing something, but I will return your phone call. I love e-mails – it’s much easier.” •
January 2012 Montgomery Business Journal
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Capital
Gains Strange details Montgomery’s economic surge by David Zaslawsky Montgomery Mayor Todd Strange details Montgomery’s economic surge at the 2011 River Region Economic Summit.
photography by Robert Fouts
If only the rest of the country was moving in the same economic direction as the City of Montgomery.
Property tax revenue has increased from $27.1 million in 2009 to $27.6 million in 2011.
Montgomery Mayor Todd Strange, an admitted half-glass-full-of-water person, painted a picture of a city with increasing revenue streams and numerous projects coming on line or in development that will continue the economic surge over time.
Lodging tax revenue has increased from $5.3 million in 2009 to $5.7 million in 2011.
Unlike those who followed him at the 29th annual Economic Summit at the Renaissance Montgomery Hotel & Spa at the Convention Center, Strange was the bearer of good news, including the following: Sales tax revenue has increased from $84.4 million in 2009 to $89.2 million last year.
The city, along with the Montgomery Area Chamber of Commerce’s Convention & Visitor Bureau as well as the Central Alabama Sports Commission, is working to grow lodging tax revenue dramatically. One area is sports events and to attract those events the city built a new $12 million, 95,000-squarefoot indoor sports facility adjacent to the renovated Cramton Bowl, and contributed to a new, 10-field soccer complex near Auburn University at Montgomery. “Consultants will tell you that if you spend a night in Montgomery, Alabama, on average you’re going to spend $264 a night,” Strange said. He said that figure will soon increase to $300-plus.
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Montgomery Business Journal January 2012
To help attract conventions, visitors and locals, the public and private sector developed The Alley with its restaurants and bars. Now The Alley has been extended and retail will be added. A $20 million, fourstory, 200-plus unit apartment complex is planned near Riverwalk Stadium. Meanwhile, new projects on Lower Dexter Avenue include restaurants, retail, a performance venue and residential units while the three-story, 27,000-square-foot Webber building near City Hall is under renovation and will have a restaurant, office space, retail and residential. While downtown has become a hotbed of economic development, there are other game-changers, according to Strange: the Genetta Park project; $9 million Maxwell Boulevard renovation, the removal of vacant buildings and various proposals that include retail and residential projects. The Outer Loop is moving forward with I-85 Interstate connecting to Vaughn Road. Streetscapes and façade restorations are planned along West Fairview and the old, vacant Sears building is being
torn down as well as new affordable housing units have been constructed. The old Montgomery Mall will now have a new fire station and police presence in the former Steve & Barry building, which actually saves the city money because of the reduced cost. “If Montgomery was a patient the prognosis would be stable and good,” Strange said. “The doctor would prescribe more job creation and more construction whether it be residential or commercial.” He proudly pointed to reduced crime rates and the Montgomery Public Schools’ increased graduation rates from 77 percent in the 2006-2007 school year to 89 percent in the 2009-2010 school year. Enrollment in AP classes has nearly tripled in a three-year span. Despite those gains, Strange acknowledged that more improvement is needed. “We have to do better because at the end of the day, companies come where they’ve got a trained or trainable work force – jobs are our lifeline.” Speaking of jobs, Montgomery is competing for 25 companies that represent 8,000
jobs. Alabama Governor Robert Bentley told the economic summit attendees that he expected to announce a total of 10,000 jobs his first year in office. About 1,000 of those jobs are coming from Golden Dragon Precise Copper Tube Group, a Chinese firm that is locating its first U.S. facility in the Black Belt. The plant in Thomasville will manufacture copper popes and tubes used in air conditioning, automobiles and plumbing. He said he has been talking to other potential investors from China who are considering bringing their companies to Alabama. Bentley said that the state needs to provide the same type of incentive packages to existing companies that it does for companies being recruited. “One of the things that I think is very important is that the governor has to be the cheerleader for the state,” Bentley said. “The governor needs to be a salesman and the governor has to be a leader. I see a bright future for this state because there are very few states like Alabama.” Bentley recalled a visit to Germany, where he asked Mercedes-Benz officials how Continued on page 31
January 2012 Montgomery Business Journal
29
Experts cite lack of consumer demand in sobering economic forecast by David Zaslawsky The message was loud and clear during the 29th annual Economic Summit: These are challenging times. Reduced consumer demand and the housing sector are weighing down the economy, according to four of the guest speakers at the summit. Here are some of the general comments: A. Gary Shilling is president of the consulting firm A. Gary Shilling & Co. Inc.
A. Gary Shilling 2012 forecasts > Slow growth over a number of years – about 2 percent. > Savings rate will grow 1 percent a year. > Big deficits for a long time because of the unemployment situation. > Might have a recession next year. > Commodity prices will decline. > Stock market will decline – sees the S&P index falling to 800. > The percentage of home owners underwater with their loans could rise from about one-third to 40 percent. > Treasury bonds (20-year and 30year) and 25-year zero coupon bonds will outperform the stock market. > Rental apartments are an attractive investment for the long term. > Goods and services will deflate. > China’s GDP will slow to 5 or 6 percent, creating a hard landing. > President Obama will be a oneterm president and Republicans will gain control of the U.S. Senate. Note: A Gary Shilling is president of the consulting firm A. Gary Shilling & Co. Inc.
“It’s clear we’re in some bad shape here. All have lived beyond our means.” – William Dunkelberg, chief economist for the National Federation of Independent Business. “It is a recovery and I want to make that point. We are climbing, but we are climbing very slowly – more slowly than ever before.” – Robert Brusca, chief economist for Fact and opinion Economics, a consulting firm. “This recovery has not had the formal four cylinders. We haven’t had a housing recovery; haven’t had a big increase in employment; and we haven’t had a big pick-up in consumer spending. One of those that has worked is the rebounded inventory.” – A Gary Shilling, president of the consulting firm A. Gary Shilling & Co. Inc. “If people don’t feel good they are not going to spend and people are obviously concerned about the future.” – James Saccacio, chairman and CEO of RealtyTrac.
Montgomery Business Journal January 2012
He said an increased savings rate, which at one point had dropped to 1 percent then jumped to 6 percent and now is down to 4 percent, translates into $500 billion in less spending. “Services spending is way down and that was labor intensive,” he said. While the services sector is struggling, the manufacturing sector has seen a tremendous growth in output, but with fewer workers. In 2010, 177 employees can manufacture what 1,000 workers did in 1950, according to Dunkelberg. He said that 50 years ago there were 11 million employed in agriculture and that number has declined to 2 million today because of the increased productivity. “The manufacturing sector is a high, productivity sector, but the bottom line is … I don’t see a lot of jobs,” Brusca said. “When you get growth in services, you get jobs.” He said the services sector accounts for 70 percent of the country’s employment and the government “is the next most-important sector.” State and local governments have been cutting jobs for months. “State and local spending is at the lowest levels … this is a real problem. When government shrinks it takes a toll on growth.”
The four panelists at the economic summit repeatedly pointed to weak consumer demand and the drag that the housing sector is having on the recovery. “The big issue is (consumer) demand and there is weak demand,” Brusca said. “Because of demands, people buy stuff and firms have to make stuff and for firms to make stuff they have to hire people. If you buy services – you need more people. “The problem is demand. Jobs are derived from demand. You hire for demand for your service. You have to create demand.” He also stressed the importance of creating demand for American-made products. Dunkelberg said, “Weak sales are the most-important problem facing small business owners. We need customers.
30
We need spending to come back. When you start spending more, guess what? I’ll hire some more people.”
William Dunkelberg is chief economist for the National Federation of Independent Business.
Brusca said that the national unemployment has been 9 percent or more for nine quarters. “If unemployment went to 12 to 15 percent that would be recession,” he said. The unemployment rate is likely to increase with a GDP (gross domestic product) growth rate of around 2 percent. You need a growth rate of 3.3 percent to keep employment stable, Shilling said. There are some areas where the United States can recover lost manufacturing jobs, according to Shilling: transportation equipment, computers and electronics, electrical equipment, plastics and rubber products, furniture and machinery and fabricated products. He said “it costs a lot of money to transport things into China,” which is far away from the customer base. Consumer confidence has hit recordlows in various polls, which among other things points to a weak housing sector, Saccacio said. He said this year and next will look similar to 2011 “as we
grapple with loads of distressed properties that we’ve never seen before.” Here are some of the troubling numbers: > There are 1.5 million foreclosed properties and banks own about half of them. > There are 3.6 million delinquent loans at risk for foreclosure. > There are 12 million seriously underwater loans potentially at risk for foreclosure. > There are 17 million distressed properties – a 30- to 45-month supply. Dunkelberg said there the sector “is missing 1 million housing starts and that’s a lot of jobs.” He does believe that at some point there will be a housing boon when the excess inventory has vanished. Brusca advocates for what he calls “real free trade” as well as a cheaper dollar to stimulate exports and discourage imports; and more manufacturing jobs. •
Continued from page 29
many people don’t show up for work every day. He said the answer was 7 to 8 percent. He told his guests that the number of workers who do not show up for work at the Mercedes plant in Vance is 0.6 percent. That is why he constantly praises the Alabama work force when not only talking to local business leaders, but international companies as well. He even talked a little bit about his work ethic saying he works 12 to 14 hours a day and doesn’t get paid because he will not accept a salary until the state’s unemployment rate is 5.2 percent. “I’m going to get paid because we are going to have 5.2 percent unemployment… but I don’t worry about that. I worry about doing what’s right for this state.” •
January 2012 Montgomery Business Journal
31
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Montgomery Business Journal January 2012
Alabama’s housing sector outperforms national average by David Zaslawsky While the housing sector would hardly receive a passing grade, Alabama is faring much better than the national trends, according to a foreclosure expert. James Saccacio, chairman of CEO of RealtyTrac, the preeminent source on foreclosures as well as the overall real estate market, gave Alabama’s housing sector a C+ or B- during his speech at the 29th annual Economic Summit. He said that 14,240 properties are in the foreclosure process and an additional 61,000 delinquent loans are at risk and that includes about 21,000 that are 90 days or longer late. Saccacio told the summit
attendees that 17 percent of all homeowners have home loans “that are seriously underwater� and there is a 12-month supply of foreclosed properties owned by banks. That hardly sounds like good news, but when compared with national numbers Alabama’s figures are much better. Saccacio said that sales of foreclosed properties nationwide are 40 percent less than the average sale price of non-foreclosed properties. In Alabama, the discount on foreclosed properties is 27 percent. One of the state’s best statistics regarding foreclosures is the average length of time – 181 days vs. the national average of nearly one year (336 days). Saccacio said the timeline for foreclosed properties in New York is 986 days and Florida is 676 days. He said it took about 100 days in 2007.
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James Saccacio is chairman of CEO of RealtyTrac.
“When I look at the hardship in the rest of the country, you (Alabama) seem to be in a better position,â€? Saccacio said. “You have a lot of good things going for you. I tend to like where you’re sitting.â€? He did say that the state’s default trends are rising as are the delinquency trends. •
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January 2012 Montgomery Business Journal
33
Member Profile
Nimrod Frazer Jr. is CEO of Industrial Partners, which owns and manages buildings.
Big Developments Industrial Partners helps build up economy by David Zaslawsky
photography by Robert Fouts
Doing business for more than three decades, Industrial Partners (IP) is a longstanding Montgomery company with deep roots in the Capital City.
34
Montgomery Business Journal January 2012
During the economic downturn, real estate was one of the hardest hit sectors, yet IP has survived thanks to Frazer’s two-fold approach. “You have to know when to accelerate and grow and know when to put on the brakes,” he said. “I liken it to driving a car.”
While having three full-time employees may give the initial impression that IP is minor player in the area economy, the company has given the entire River Region some major leverage when it comes to drawing other businesses here, making it a key piece of the economic development puzzle, as CEO Nimrod Frazer Jr. explained. “Most of our investment is in Montgomery,” he said. “We are very happy to be here and contribute to our city’s continued progress through increased economic development.” In the early 1970s, Frazer’s father Nimrod Sr. was doing bond financing for companies looking to locate in the Southeast. These companies were searching for quality properties to lease for their operations, and there just weren’t many around. At the same time, over in Georgia, Pattillo Construction Corp. was building industrial buildings for lease in small towns around that state. Frazer’s father saw an opportunity. He and H.T. Pattillo came together to form Industrial Partners with one goal: to increase industrial development in Alabama, and specifically Montgomery, by building, leasing and managing the needed rental spaces. In 2006, Frazer Jr. bought Pattillo’s interest in the company. The company specializes in the construction of speculative industrial buildings situated near major transportation in central Alabama. These buildings can be finished out quickly to the client’s specifications, and if clients need specialized facilities involving design and construction from the ground up, Industrial Partners can accommodate those requirements as well. Clients include companies such as GKN Aerospace, Federal Express, Rheem Manufacturing, Graham Packaging, Hager Companies and the State of Alabama. Today, IP owns 18 buildings, totaling 1.4 million-plus square feet with an additional nine buildings under management. “We have 34 tenants in our portfolio in four industrial parks in Montgomery,” Frazer said. Frazer joined the business his father started in the mid-’80s. He began at the ground floor, actually working on some of the Pattillo Construction crews. Now, as CEO, Frazer wears many different hats, and he outlined the principles that he believes have led to IP’s success. “It is important to work on your business and in your business,” he said. “You have to be involved in every aspect and stay abreast of changes in your industry.”
He also addressed the importance of IP’s product. “IP has brought many businesses here,” he said. “Companies usually decide on a community and then look for appropriate real estate. We have created a product that helps the city lure companies here.” The company’s customer service plays a big part in its longevity, keeping tenants happy and coming back and generating referrals. “We really take care of our existing tenants and work had to please them,” he said. “It is much easier to extend a lease than to find a new company to fill the space.” He also credits those that IP works in partnership with locally. “The success for any development depends heavily on the surrounding community,” he said. “We are really lucky to have our great city leaders like Mayor Strange and the Montgomery Area Chamber of Commerce. They both provide wonderful support and resources as we try to bring more and more industry to Montgomery and the area. I feel very comfortable continuing to invest here.” IP has an exciting project in Montgomery Industrial Park, which is a private/public partnership with Montgomery County. The park has some strict covenants and restrictions in place governing the types of buildings allowed there. “For example, there will be no metal buildings there,” Frazer said. “Some companies are specifically looking for higher-quality buildings and are willing to pay for them. Having an industrial park like this will really help promote Montgomery.” •
Industrial Partners Year founded
1974 Employees
3 full-time and many contractual employees Current holdings
18 buildings, totaling more than 1.4 million square feet with an additional nine buildings under management.
To that end, Frazer is a member of the Society of Industrial Office Realtors. “This keeps me on the cutting edge of my business,” he said. “I’m always educating myself and keeping up with what’s new.”
January 2012 Montgomery Business Journal
35
Another lane for
The Alley Extension creates much-desired retail space by David Zaslawsky
36
Montgomery Business Journal January 2012
Alley
While Commerce Street has seen more than its share of redevelopment and new businesses along with Tallapoosa Street, the downtown Montgomery resurgence has not featured Coosa Street. That is changing dramatically with January’s scheduled opening of a restaurant on Coosa Street and perhaps even more significant is the extension of The Alley from Commerce Street to Coosa Street. Now pedestrians can park on Coosa Street and walk through The Alley’s entrance there instead of walking around the block or simply not bothering to visit the various businesses at The Alley. And the number of businesses at The Alley will be growing as Jerry Kyser Builder Inc. develops about 4,500 square feet of retail space along The Alley breezeway behind iCantina and The Dauber Gallery. The latter has been the lone non-restaurant, nonbar business at The Alley, but Jerry Kyser, president of Jerry Kyser Builder Inc., said he is spending $2 million to develop four to six retail spaces. Those spaces range from 400 square feet to about 1,100 square feet. “We’re looking for a small, clothing-type boutique or gift shop or maybe a little coffee shop or ice cream shop,” said Kyle Kyser, vice president of Jerry Kyser Builder Inc. “Jewelry is another (possibility). It’s the things you would see when a hotel has retail in it. The main focus is to cater to retail for people that are visiting.” The smaller retail spaces – 400 square feet – will rent for about $700 a month, according to Kyle Kyser and the 600-square-foot space and 650-square-foot space would rent for around $1,000. He expects one retailer to combine the 1,000-square-foot spaces because one-half of that site won’t face The Alley.
“These things have more of an impact on the overall economy of the city than just a few little shops down here,” Jerry Kyser said. “The experience of coming downtown is certainly enhanced as these things progress and everything that the city, county and everybody else is doing and promote these things – this is just another small piece of a giant puzzle that is coming into play in Montgomery. “This is going to put us at the forefront of a lot of wonderful things in the next 10 or 20 years. It is going to enhance the quality of life for everybody in the city.” Montgomery Mayor Todd Strange said that except for The Dauber Gallery “there really is no other place that visitors can come and pick up things” near the three downtown hotels. “What we have been trying to do is figure out how to get space available for retail.” According to a study commissioned by the City of Montgomery, there is demand for 309,000 square feet of retail space for downtown and that figure does include restaurants. The restaurant that the Kysers are opening on Coosa Street will feature American cuisine. Continued ON PAGE 38
“This is a game-changer for everyone in The Alley.” Kyle Kyser
January 2012 Montgomery Business Journal
37
City primes The pump for retail growth
by David Zaslawsky
Jeff Downes
Montgomery Mayor Todd Strange and Deputy Mayor Jeff Downes are fond of saying that the government’s role in economic development is to prime the pump.
To pay for the extension of The Alley from Commerce Street to Coosa Street, the City of Montgomery will reimburse Jerry Kyser Builder Inc. with a 15-year lease. The cost of the extension is $250,000, which is being paid by Jerry Kyser Builder Inc. The Alley extension does reduce the amount of retail space that Jerry Kyser Builder can develop. The city’s annual lease payment is $60,000, according to Downes. If the city decides to pay back the $250,000 this year or next, which is quite likely, Downes said, the annual lease payment will drop to $34,000.
collections over 15 years from the 4,500 square feet of retail space that Jerry Kyser Builder is developing. That translates into about $115,000 a year. “Any decision we made is all predicated on good cost-benefit analysis,” Downes said. “When we look at these projects, we have to make sure they are a good return on investment. We are activating retail space. We are going to have a nice payoff in the way of revenue as well as being a quality sense of place.” The Alley has been a huge success. The city and county have invested a combined $1.6 million into the common space at The Alley while the private sector has invested a combined $25 million, Downes said. He said annual sales tax collections from The Alley range from $600,000 to $700,000. •
What does the city receive for its $34,000 a year lease payment? The City of Montgomery will receive $1.7 million in sales tax
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Montgomery Business Journal January 2012
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Fouts Commercial Photography
Jerry Kyser (left) is president of Jerry Kyser Builder Inc. and Kyle Kyser is the firm’s vice president.
Continued from page 37
“It will be a fun place, but sophisticated,” Kyle Kyser said. “It will have what I call ‘American mainstream’-type food.” He said there will be 80 to 100 employees and having the restaurant will expand the company’s large banquet facility at 129 Coosa St. The Alley extension opens up the area around Coosa Street. “I think this is a game-changer for everyone in The Alley,” Kyle Kyser said. “It makes the Coosa-Madison corridors have a direct connection to The Alley.” He said the extension will create more foot traffic in that area and Jerry Kyser said that could prompt redevelopment along Coosa Street. Jerry Kyser Builder Inc. is also looking lease the Dreamland Bar-B-Que basement for a bar business. •
January 2012 Montgomery Business Journal
39
Ellis will lead Chamber during first year of Imagine II strategy by David Zaslawsky photography by Robert Fouts
‘The
Greatest Thing in the World’ 40
Montgomery Business Journal January 2012
Ellis has several priorities entering his one year as Chamber chairman, including economic development and education. Alfa Insurance Companies Executive Vice President of Operations Lee Ellis had some misgivings about becoming the Montgomery Area Chamber of Commerce Chairman of the Board of Directors. He was a member of the Chamber’s Executive Committee and when two other members of that committee left, Ellis was next in line to be chairman. He was concerned, however, that he was retiring February 1 from Alfa after 36 years. Was it OK for the Chamber Chairman to be retired? In a word – yes – and being retired has its advantages for the 2012 Chairman. “I went from thinking it was a bad thing to thinking it was the greatest thing in the world because I’m used to getting up in the morning and getting something done,” Ellis said. “I’m really excited about the transition. I don’t have to slow down. My plan is to focus my energy to making Montgomery a better place. What better could a person ask for than that opportunity?” He has scheduled a date in early February to attend a University of North Carolina at Chapel Hill’s men’s basketball game against Duke. Ellis also has plans for a North Carolina game against Virginia. He has a political science degree from the University of North Carolina at Chapel Hill. Being retired will mean visits to see his sons who live in other states. But being retired also means Ellis has plenty of time to focus on the Chamber and ensuring that “things get done.” That is his mindset from those 36 years in the Alfa culture – getting things done. It is a nononsense approach. It’s results-oriented. “The Alfa culture is like a religion down here – everybody bleeds red. I go way, way back to the tougher days when people didn’t go play golf – didn’t do any of the fun things. They got the job done. Getting the job done is a top priority. I’ve learned that and that’s been my way of life. There is no excuse for not getting something done.”
“I believe in promoting business and getting more industry in Montgomery, Alabama. We need to continue to focus on jobs – more good jobs and expand our big and small companies. “We need to bring some more diversity in so we are not so dependent on the automobile industry. We need other things and I think we have a tremendous opportunity… in the technology area.” He cited cyber technology as a target industry with its links to Maxwell Air Force Base and Gunter Annex. “I think there ought to be more possibilities of getting more technology businesses in Montgomery.” Ellis, who is from Montgomery, said that “education is dear to my heart.” He said that the Montgomery Public Schools system has shown great improvement, but needs to continue that trend. He is an advocate of students learning a trade. “In America, people are considered failures if they don’t go to college,” he said. “That is not true. Some people’s goal is to go to Princeton; some people’s goal is to be the best mechanic in the world. “The more and more we do with the Career Academies the more and more people we’ll have ready to be productive in the workforce,” Ellis said, referring to the school’s district seven Career Academies in which students learn about various professions while taking courses designed for them. He was a member of the Chamber’s Education and Workforce Development Council and learned about all the “positive steps that are happening in the education field.” Another area that Ellis hopes to improve is Montgomery’s image, which he feels does not represent the reality. “I think Montgomery is its own worst enemy,” he said. “I don’t think the citizens of Montgomery are as proud of Montgomery as they should be.
As Chamber chairman, Ellis will help spread the word about Montgomery and will be heavily involved in the implementation this year of the Chamber’s Imagine A Greater Montgomery II strategy. He understands the importance of setting a strong foundation for the five-year strategy and knows the pitfall of falling behind. “I will consider myself successful if we kicked off the first year of the new campaign in a very positive way so that we make progress that we can carry through the rest of the campaign. “The Imagine II strategy will build on a foundation built by the four goals of the original Imagine a Greater Montgomery plan,” he said. “I believe that enhancing diversity and building leadership capacity – Goal 4 – was extremely important. “We have come so far in building trust and communication among our elected leadership, and growing young leaders through creation of the Emerge Montgomery program. And harnessing the power of diversity as an asset in business and in our community is something so vital. It is critical that we build on that as we move forward “Never before have the city, county and state leadership of Montgomery worked together with the business community to make such great things happen.” When asked if being named Chamber chairman was a crowning achievement of his lengthy business career, Ellis said, “I have spent most of my time with my family; with my religion; and with Alfa. Some people say that Alfa is my religion. “The first time I started trying to give something back was when I was chairman of the United Way campaign. This is another opportunity for me to give back to a wonderful community that I’ve lived in my whole life. I see it as an opportunity to make Montgomery a better place.” •
“Anything that we can do or I can do to help take the image and excitement of Montgomery, Alabama, to a new level is of paramount importance. We are a great city.”
January 2012 Montgomery Business Journal
41
Past chairmen
42
of the Montgomery area chamber of commerce
1890-96
H. B. Houghton
1942-43
William C. Bowman
1980
Dr. Thomas C. Nolan
1897-98
Jacob Greil
1944-45
L. D. Rouse
1981
James S. Gaskell, Jr.
1899-1900 Charles G. Abercrombie
1946
Stanhope E. Elmore
1982
John M. Trotman
1901-04
Alex Rice
1947
James D. Flowers
1983
Samuel L. Schloss
1905-08
A. G. Forbes
1948
James J. Durr
1984
Maury D. Smith
1909
Fred S. Ball
1949-50
Boyd H. Leyburn
1985
Parker A. Narrows
1910
Sam J. Cassels
1951
Robert F. Henry
1986
James G. Martin, Sr.
1911
Edwin B. Joseph
1952
Max S. Baum
1986-87
Henry A. Leslie
1911
Frank D. Kohn
1953
Charles M. Smith, Jr.
1988
George B. Clements
1912
Emil J. Meyer
1954
C.T. Fitzpatrick
1989
Clyde H. Wood
1913
Fitzgerald Salter
1955
James G. Pruett
1990
Perry Mendel
1914
Duncan May
1956
Mark A. Johnston
1991-92
Will Hill Tankersley
1915
Terry T. Griel
1957
Clyde C. Pearson
1993
A. Bowen Ballard
1916
Clayton Tullis
1958
J. Noble Crump
1994
J. Mike Jenkins
1917
A. C. Davis
1959-60
Carl W. Bear
1995
Margaret A. Carpenter
1918
E. Meertief
1961
Edgar W. Stuart
1996
Todd Strange
1919
C. J. Beane
1962
Bryan B. Marsh
1997
Tom Somerville
1920
I. H. Dewees
1963-64
W. Lyle Hinds
1998
James K. Lowder
1921
Robert Teague
1965
A. Berney Jones
1999
W. Stephen Cawood
1922
I. H. Dewees
1966
Charles P. Brightwell
2000
Nimrod T. Frazer, Sr.
1923
L. C. Cardinal
1967
W. Robbins Taylor, Sr.
2001
Jerry C. Kyser
1924
I. Fred Solomon
1968
George E. von Gal, Jr.
2002
Lawrence Cole, Jr.
1925
Harry E. Snow
1969
Frank A. Plummer
2003
Larry A. Groce
1926
General Robert F. Ligon
1970
Philip A. Sellers
2004
Carl A. Barranco
1927-28
W. A. Bellingrath
1971
Earle D. Kitchen
2005
G. Carlton Barker
1929
Robert Emmet Seibels
1972
Thomas M. Tyson, Sr.
2006
Purser L. McLeod, Jr.
1930-31
Fred J. Cramton
1973
Hugh P. Foreman
2007
Edward F. Crowell
1932-33
Harry E. Snow
1974
James L. Rouse, Jr.
2008
Gordon G. Martin
1934
W. A. Bellingrath
1975
Frank H. Hawthorne, Sr.
2008
Charles B. Paterson
1935-36
Sylvain Baum
1976
Robert P. Hudgens
2009
W. Daniel Hughes, Jr.
1937-38
J. M. Jenkins
1977
John H. Neill, Jr.
2010
Nimrod T. Frazer, Jr.
1939-40
A. S. Coleman
1978
James T. Upchurch, Jr.
2011
Larry D. Puckett
1941
Richard F. Hudson
1979
M. Taylor Dawson, Jr.
Montgomery Business Journal January 2012
Imagine a greater Montgomery ii
A NEXT-LEVEL ECONOMIC DEVELOPMENT STRATEGY 2012-2017 Imagine a Greater Montgomery II Goals Goal I: Achieve Educational Excellence &
Develop Competitive Regional Talent
Goal II: Diversify Economic Growth Goal III: Accelerate Revitalization and Improve Quality of Place Goal IV: Build Community Capacity,
Fouts Commercial Photography
2012 Executive Committee. (Seated L-R): Immediate Past Chairman Larry D. Puckett, President Randall L. George, Vice Chairman Leslie Sanders. (Standing L-R): Chairman Elect Horace Horn, Chairman C. Lee Ellis, Vice Chairman Joseph Hampton, Vice Chairman Arthur DuCote.
Engagement, and Image
In 2006, the Montgomery Region and the Montgomery Area Chamber of Commerce worked with Market Street Services to design and implement Imagine a Greater Montgomery, a strategic economic development plan to build upon the community’s strengths and address its challenges while maximizing real opportunities. Over 250 community members participated in shaping the first Imagine a Greater Montgomery plan. Since the adoption of the strategy in 2006, numerous accomplishments and strategic success have been achieved by the Chamber and its implementation partners: steady growth in regional per capita income; the launch of seven K–12 career academies; vastly improved communication and partnership among elected
officials; the creation of the EMERGE Montgomery young professionals program; a significantly enhanced image through downtown and riverfront revitalization; and, in 2010, the leadership position in the state for announced new and expanding businesses. Perhaps the most important result of the Imagine a Greater Montgomery process has been the collective pursuit of a shared local vision. Imagine a Greater Montgomery II continues the momentum from the 2006 strategy, but with a greater intensity and an expanded focus.
January 2012 Montgomery Business Journal
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IMAGINE A GREATER MONTGOMERY II 2012-2017
Goal I: Achieve Educational Excellence and Develop Competitive Regional Talent The Montgomery region has made great strides in improving the quality of its public pre-K–12 system. New magnet schools and career academies in Montgomery Public Schools have increased enthusiasm for and trust in public education. To become more competitive, Montgomery’s students must be served by a topquality continuum of programs reaching all ages – from pre-K through college. Demonstrating a strong public school system will not only improve the quality of the regional labor force, but will also make Montgomery a more attractive place for businesses and families to choose to locate. In order to have a healthy, growing community and tax base, it is critical that the community further develops and maintains the quality of its public school systems.
Actions: > Broaden the availability of magnet schools and career academies.
Additionally, the region’s postsecondary institutions can play a more important role in developing the competitive talent Montgomery needs to attract and retain firms. The flexible degree options, research and development potential, and diverse and expanding academic program offerings can be further leveraged and strengthened in the region’s efforts to build a more competitive workforce. The region must work to develop a talent pipeline viewed as a seamless pre-K–20 system, inclusive of early childhood, primary through high school, postsecondary education and training, and graduate and professional education programs.
> Foster the parental involvement and neighborhood development critical to improving student outcomes.
Objective 1: Continue to strive for public pre-K–12 education success and excellence. Since the first implementation actions of Imagine a Greater Montgomery, the community leadership has been focused on increasing the capacity, opportunities, and performance of its public schools. To truly take the region to the next level, these successful programs must be expanded to accommodate increased demand. In addition, the community is ready for new and different actions not thought possible five years ago.
> Engage in tactical efforts to close racial and socioeconomic achievement gaps among public school systems’ students. > Effectively transition high school students into postsecondary education, training, and job opportunities in the Montgomery region. > Boost enrollment in the region’s pre-K programs. > Increase Chamber members’ participation in career shadowing and internships with middle and high school students.
Objective 2: Unify pre-K–12 education leadership and promote the positive story of Montgomery Public Schools. Montgomery’s public schools need the full support of the community to truly succeed. This requires leadership cooperation and strategic public relations not currently being adequately achieved. The region must have open dialogues about the importance and value of its schools and students, effectively telling the story of successes and addressing challenges with best practice programs and structures. A unified leadership and positive narratives about education will allow Montgomery’s citizens to recognize the essential role that pre-K–12 educational performance plays in the region’s short- and long-term economic prosperity. Actions: > Proactively seek community-wide solutions to public education problems and perceptions. > Utilize common performance measurement and accountability standards to publicize the successes and ongoing challenges of regional school systems and community education improvement efforts. > Advocate for increased community funding and other support for public schools.
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Montgomery Business Journal January 2012
IMAGINE A GREATER MONTGOMERY II 2012-2017
Objective 3: Leverage higher education resources to build increased talent development and research capacity. Montgomery is home to several higher education institutions, but the colleges and universities often operate in silos, separated from each other and the larger community. Alabama State University (ASU) has the potential to be a research and development leader in the region, but must be supported by the region as it communicates and celebrates successes. Auburn Montgomery (AUM) continues to expand its academic degree programs and identify itself as a standalone institution. Increasing the region’s awareness of schools and their offerings, as well as tying degrees and professional education to target business sectors, will provide the Montgomery region’s colleges and universities with an even more significant impact on creating home-grown talent and prosperity. Montgomery must also develop and upgrade its technical college programming. Trenholm State Technical College delivers the region’s certificates, associate’s degrees, and workforce training resources. However, curricula must be organized and aligned with regional targets and talent development goals. Active partnerships with businesses will ensure that Trenholm State administration and instructors are guiding students into competitive skill sets and sufficient career preparation. Trenholm State Technical College would benefit from significant alignment with regional economic development goals and enhancements to its organization and performance.
Objective 4: Coordinate and strengthen workforce development resources. The lack of a coherent regional workforce development plan is a major issue for sustaining a skilled labor force. This issue was identified during the 2006 process, and while some progress in annual planning has been made, additional effort must be leveraged to establish strong buy-in from the larger community, including local businesses, municipalities, and economic development leaders. Actions: > Coordinate workforce resources across the region with economic development efforts. > Continue advancing and improving availability of local workforce development resources.
> Support the growth of the research and development capacity and potential at regional universities to increase commercialization, talent development, and development of new technologies and products for target business clusters.
Objective 5: Build diverse marketing campaigns directing talent recruitment efforts towards young professionals, recent college graduates, military families, and former Montgomery area residents. Many stakeholder input participants expressed concerns that Greater Montgomery could not compete with larger cities for young talent. However, the growth and activity of the EMERGE Montgomery young professionals group demonstrates that there is a strong base of young people who chose to live and work in the community. It is important that Greater Montgomery continues its efforts to be recognized as a place where young adults can flourish. A substantial talent attraction and retention strategy is critical to sustaining a viable and growing presence in the region of young professionals as well as a skilled, competitive workforce across of all ages.
> Work closely with Trenholm State leadership to build its course and degree offerings, marketing efforts, and the overall education and training quality of the institution to improve regional awareness and perceptions.
Actions: Partner with regional firms and organizations to identify key national markets in which to source potential talent that fills current gaps in the region’s workforce pipeline.
Actions: > Create a Higher Education Task Force. > Engage higher education institutions in regional community and economic development initiatives.
> Expand the “Live, Work, Play” section of the Montgomery Area Chamber website. > Provide recruited or relocating talent with information on the assets and improvement efforts in the Montgomery region. > Involve EMERGE Montgomery and the region’s postsecondary institutions in talent recruitment and attraction efforts.
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IMAGINE A GREATER MONTGOMERY II 2012-2017
Goal II: Diversify Economic Growth Greater Montgomery’s relative resiliency during the Great Recession was not an accident. Hyundai Motor Manufacturing Alabama (HMMA) has been a tremendous asset to the region and sustained jobs in the Montgomery area as manufacturing endured significant drops elsewhere in the country. However, the rise of HMMA has not offset the risk of cuts in state and local government employment and the dramatic decline in the local finance and insurance sector. These highs and lows demonstrate the need for Greater Montgomery to further diversify its local economy, both in terms of business sectors and types of firms – from small startups to large headquarters. The Montgomery Area Chamber of Commerce has made significant programmatic strides since the adoption of the Imagine a Greater Montgomery strategy. These efforts and programs implemented and led by the Chamber have resulted in the need for more capacity within the organization to support key leadership and other organizations, as well as the need for more strategic staff positions. This goal focuses on efforts in the development of target sectors identified in the Target Cluster Review and on activities related to the “three legs of the stool” of economic development – business attraction and relocation, existing business retention and expansion, and small business and entrepreneurial development.
Objective 1: Pursue target-specific economic development recruitment and diversification activities. The 2011 Target Cluster Review established a new paradigm for the local economy, taking into account the dynamics of the Great Recession and new developments and “wins” in the region. Now, more than ever, economic development efforts must be deliberate and support economic growth that is diverse, high-value, and sustainable in the long term. Actions: > Create target sector councils with business leaders of each target cluster, as well as education and workforce representatives.
Actions: > Fully develop and formalize a strategic business retention and expansion program. > Develop a strategic plan aligned with the U.S. Department of Defense’s (DoD) planning in order to assure the growth and sustainability of missions on MaxwellGunter and the Montgomery military complex. > Provide local firms, municipalities, and higher education institutions with market data and other critical research gathered by the Chamber.
Objective 3: Increase and facilitate high-value small business and entrepreneur growth. The Chamber’s Small Business Resource Center (SBRC) is an excellent support network and facility for entrepreneurs and small businesses. An increased focus on startups and small businesses clustered around targets will be the top activity in which the SBRC should engage in the short- and long-term in order to facilitate a diverse range of firms in each target. Actions: > Better market the SBRC’s resources and facilities to the region and the state. > Make Greater Montgomery the state leader in minorityowned business growth and development.
> Expand the Applied Technologies cluster.
> Facilitate readily-available space for startups and small businesses.
> Further develop the Health Care target, including development efforts in the Research Science and Medical Manufacturing niches.
> Increase availability of start-up funding in the Montgomery region.
> Expand the Advanced Manufacturing target to leverage the growth of Hyundai and the opportunities of Maxwell-Gunter AFB. > Expand Greater Montgomery’s Logistics and Distribution target. > Establish linkages and networks between postsecondary institutions, Maxwell-Gunter AFB, and businesses in target sectors. > Assess and communicate target sector skill requirements to the region’s high schools, colleges and universities, and workforce development providers. > Expand corporate development staff with professional target-focused development specialists.
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Objective 2: Expand business retention and expansion efforts. While Greater Montgomery has experienced many big relocation wins from outside businesses in recent years, growth in the region remains concentrated in existing businesses that need support and resources to continue their trajectory of prosperity and expansion. A well-organized business retention and expansion program with increased efforts geared toward existing businesses in target sectors will be key to developing a diverse and resilient local economy.
Montgomery Business Journal January 2012
> Create and promote strategic networks of entrepreneur groups.
IMAGINE A GREATER MONTGOMERY II 2012-2017
Objective 4: Expand the growth of diverse, high-wage business sectors in the Montgomery area through a targeted external marketing campaign. The Montgomery region must continue to expand its national and international presence through strategic marketing efforts that highlight the business growth, quality of workforce, and key local and state resources that will attract major employers and relocating firms. Actions: > Leverage the City of Montgomery’s “Capital of Dreams” initiative. > Continue to expand and invest in the Chamber’s websites and marketing materials. > Increase and develop the global presence of the Montgomery region and the Montgomery Area Chamber of Commerce.
Objective 5: Prepare for success through the continuous development and improvement of the area’s infrastructure and economic development tools. In order to compete in the international market, Greater Montgomery must continue to prepare for future development by preparing product, tools and infrastructure.
Actions: > Ensure the availability of a full spectrum of fully-prepared industrial sites and buildings in the region. > Continue to improve and develop transportation networks to enhance businesses’ and industries’ ability to move people and products. > Continue to expand competitive incentive tools available to assist new and expanding business at both the state and local levels. > Develop a close working relationship with City of Montgomery departments in order to assist new and existing business and industries through the permitting process and regulatory procedures necessary for startup and expanding operations. > Work for the expansion of Montgomery Regional Airport’s service, which is currently typified by few direct flights and expensive airfares that significantly hinder business and tourism recruitment efforts. > Develop and market the technology infrastructure necessary to support recommended target clusters.
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IMAGINE A GREATER MONTGOMERY II 2012-2017
Goal III: Accelerate Revitalization and Improve Quality of Life Greater Montgomery’s commitment to restoring vitality to its community is profound. Even through the worst economic period since the Great Depression, new developments sprouted and plans were advanced downtown and throughout the community. The region’s residents wear their pride on their sleeves – this process’s input participants universally praised efforts made to improve the Montgomery area. Yet, there is still much to be done. The work of building a place is never finished, and Greater Montgomery still faces substantial challenges, from underutilized parcels to struggling retailers. The Montgomery area must build on past successes, garnering even greater momentum. The importance of “place” can scarcely be overstated, and an increasing body of evidence suggests that it is a top priority in today’s economic development environment. Effectively improving the somewhat nebulous “quality of place” requires collaboration among a broad network of partners – no party is irrelevant. Initiatives must be varied and inclusive. The objectives and action steps that follow reflect the desires, capabilities, and opportunities related to Greater Montgomery’s place-based characteristics revealed during the research phases of this process. This quality of place identity begins in the core of the region, downtown Montgomery. Throughout the inter-city leadership visit and stakeholder input process, community leaders and young professionals expressed a strong desire to see downtown Montgomery’s continued revitalization serve as a catalyst for overall improvements in the region. A vibrant center city represents growth and progress throughout the Montgomery area and serves as a business and activity center and destination for regional residents as well as visitors – Greater Montgomery’s “living room.” This goal area does not imply that other parts of the region should be overlooked for development and redevelopment; rather, that the momentum of downtown Montgomery should be capitalized on and leveraged for improving the region’s quality of place. Objective 1: Continue supporting riverfront development as a primary component of regional and downtown revitalization. Montgomery’s riverfront has emerged in the last decade as a major source of civic pride and an engine of activity. Riverwalk Stadium alone has regularly drawn thousands of local visitors that might otherwise have no reason to be downtown. Input participants were also quick to point to the Riverwalk’s other destinations – the amphitheater, Union Station, and the skate park – as favorite local venues. Yet, there still remains substantial opportunity for expansion of riverfront amenities.
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Recreational amenities, such as canoe and kayak facilities, a large public park, designated fishing areas, and bicycle and pedestrian trails, are still somewhat lacking along the urban stretches of the river. As evidenced by best practice communities such as Chattanooga and Nashville, a riverfront with both formal and informal gathering spaces, recreational amenities, and quality event spaces can have a transformative effect on downtown. Montgomery’s leaders will need to harness the momentum created by recent successes and continue developing attractive riverfront resources so that every resident and visitor in the area is drawn there. Actions: > Ensure that stewardship of riverfront development remains strong. > Conduct periodic implementation reviews of the riverfront components of Montgomery’s Downtown Development Plan and Strategic Development Concept. > Develop inviting pedestrian amenities in the blocks surrounding Montgomery’s riverfront. > Market Montgomery’s riverfront amenities as a core component of the region’s identity. > Develop river recreation activities that draw the region’s adventurers downtown. > Link riverfront and downtown improvements to Maxwell-Gunter AFB.
Objective 2: Improve quality of life, housing, and retail offerings in targeted revitalization districts. The vast improvements made to Montgomery’s downtown and other neighborhoods since the 2006 strategy process have not yet resulted in a substantial residential presence in these districts. Neither have they created the kind of destination retail environment that draws visitors from within the region or other metro areas. During stakeholder input, many participants – particularly young professionals – remarked that demand for in-town living exists and that loft developments that have opened in recent years have been successful. This is one of the pieces of downtown development yet to substantially take hold in Montgomery. A strong residential presence in the heart of the Montgomery region creates opportunities for activity throughout the day and night. The region’s retail presence has likewise migrated away from downtown and surrounding neighborhoods, shifting toward the eastern suburbs. Montgomery’s leaders need to continue encouraging a broad range of venues where visitors spend their money to locate in targeted revitalization district. An invigorated retail sector in the region’s core will support efforts to lure residents and visitors alike.
IMAGINE A GREATER MONTGOMERY II 2012-2017
Actions: > Support the City of Montgomery and Montgomery County in the revitalization of key districts to renew Montgomery’s central revitalization areas. > Support existing and prospective retailers with detailed customer analytics. > Develop a suite of legal regulatory and incentive tools promoting infill development and densification in the identified revitalization areas. > Establish a grant program for the City of Montgomery to fund development of plans for zones with high capacity to link housing development, employment opportunities, and multi-modal transportation amenities. > Survey Montgomery area retailers to identify the greatest barriers to success and ways to improve permitting and regulatory processes. > Incorporate the area’s rich arts community in developing downtown Montgomery. > Address widespread perceptions of crime.
Objective 3: Synergize professional recruitment and quality of place improvement. Recent research suggests that young professionals increasingly pick where they want to live first, and then look for a job second. However, communities are beginning to realize that the desirability of a place is not just a deciding factor for young workers; it shapes the decisions of executives, entrepreneurs, and site selectors as well. Developing a strong workforce relies on much more than jobs; communities must be attractive, vibrant, and diverse to hold the interests of today’s mobile workers. Some aspects of a community’s quality of place appeal equally across all workers – school systems, recreational amenities, and quality housing. The Montgomery region’s leaders and community members must continue developing those broadly appealing assets, as they have done well, and those that cater especially to the young and future workforce. Actions: > Develop a diversity of housing types and price points that appeal to young professionals and other potential residents. > Utilize planning and regulatory tools to ensure that high-tech, Class A office space is a key component of new downtown and targeted revitalization area development initiatives. > Find out what professionals think of the Montgomery region and its amenities.
Objective 4: Take Montgomery’s tourism economy to the next level. Tourism can catalyze a number of positive outcomes for communities – bolstering tax receipts, drawing business to local stores, attractions, and restaurants, and precipitating the development of amenities that improve residents’ quality of life. It plays a central role in reputation-building and thus has the capacity to affect both direct and indirect growth. Directly, it supports job
and revenue growth in various service sectors. Indirectly, it can plant the seeds of relocation in visiting parties – each of which is a potential investor, resident, or business owner in the region. Greater Montgomery’s tourism-related efforts in recent years have led to the development of excellent new facilities and an invigorated sense of pride in its residents. Everyone boasts proudly of the Riverwalk and the new activities it has generated. Montgomery has also continued developing its historic profile as a locus of Civil War and civil rights history. The region is now poised to push itself to the next level of tourism capacity by carving an identity as a vibrant, metropolitan destination while still embracing its past. The arts, which are well established in the Montgomery region, will play a crucial role in this phase, as will the continued development of attractive riverfront amenities and the revitalization of downtown’s commercial, residential, and retail markets. Actions: > Foster a more regional approach to tourism development. > Develop gateways, signage, and walking trail programs that appeal to intra- and extra-region visitors and reinforce a sense of place for residents in the core. > Further establish the riverfront as a centerpiece of the region’s tourism-related efforts. > Support the Selma-to-Montgomery National Voting Rights Trail. > Capitalize on tourism opportunities related to sporting events and outdoor recreation.
Objective 5: Engage the region’s postsecondary institutions as partners in revitalization. The region’s institutions of higher education have historically had a low profile in the community. However, economic development efforts leveraging their strengths and opportunities have, in recent years, begun to gain momentum. Troy University was an early leader in Montgomery’s downtown renaissance and is making continuous improvements to its campus. Alabama State University has been making investments that will also substantially affect the downtown fabric, including a new stadium complex and an office building. Colleges and universities in many of the country’s cities play a central role in urban development and revitalization, while students are an important demographic for creating vitality in urban centers. Leveraging capacity of the region’s postsecondary institutions to generate economic activity in Montgomery while supporting their objectives is a key strategy. These institutions must be generators of Greater Montgomery’s quality of place. Actions: > Make downtown attractive to college students and market its amenities to this group. > Establish connections between regional college and university campuses and downtown Montgomery. > Work with alumni offices of local institutions to connect with their constituents.
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IMAGINE A GREATER MONTGOMERY II 2012-2017
Goal IV: Build Community Capacity, Engagement, and Image The Montgomery region must sustain the momentum begun in 2006 by fostering the positive community efforts that have unified the region, building new bridges of inclusiveness, communication, and trust between historically divided groups. New leaders have been developed, nurtured, and actively engaged in initiatives focused on building Greater Montgomery’s social and human capital. Constantly evaluating the effectiveness of these programs should be constantly evaluated and efforts pursued and examining ways to expand their outreach to build an increasingly positive identity for the region that will forge new partnerships and enable the community to innovatively embrace the complex and diverse history of Montgomery.
Objective 1: Build bridges between Montgomery’s diverse leadership at every level. The Montgomery region’s divisive history has necessitated an intentional push for restoration, collaboration, and inclusion. In many ways, these efforts have resulted in a spirit of partnership and an appreciation of diversity. The annual Diversity Summit is a testament to the region’s commitment to understanding and embracing the needs of all of its constituent groups. Still, leadership structures in the region would benefit from further establishing those connections to the young and diverse groups that comprise Greater Montgomery’s future. The region must engage a broader set of leaders – including youth, women, minorities, and Montgomery area residents of many nationalities – in order to ensure a smooth transition into a changing, diverse reality. The Chamber continues to struggle with implementing initiatives that would best raise Greater Montgomery’s national and international profile and highlight the region’s quality of life, tourism opportunities, and community events. The increased activity of the Chamber, through the Diversity Summit, EMERGE Montgomery, Women in Business, Eggs and Issues, and other annual and ongoing events and initiatives justifies the addition of full-time professional staff to manage the Chamber’s interactions with stakeholders and the public. The Chamber must also optimize its staff and volunteer capacity to implement these tasks. Leveraging the community’s human capital will increase its ability to successfully address the region’s greatest challenges and will create opportunities for all Montgomery region residents to thrive.
Actions: > Create formal networking events between young professionals and established leadership. > Better engage and empower under-represented subsets of local constituencies in civic processes. > Continue to build communication, collaboration, and trust between elected officials at the city, county, state, and federal level and between elected officials and citizens.
Objective 2: Strengthen regional partnerships and collaborations. It will be necessary to reinforce the connections between the Montgomery region’s public, private, and civic organizations if each of them are to be maximally effective. These organizations must see themselves as part of a highly interconnected and mutually dependent region rather than isolated players in a competitive game for resources. Input participants mentioned the need for greater intraregional collaboration among governing bodies. They also mentioned that it can be difficult to engage some of the poorer or less connected communities. Those with the capacity and vision for bringing together a broad collection of organizations and constituencies will need to use innovative approaches to accomplish these goals. Actions: > Enhance and expand the Leadership Montgomery and Torchbearers Leadership programming.
Objective 3: Strengthen and expand the Diversity Summit’s impact. The four Diversity Summits held in the Montgomery Region since 2008 have been, by most accounts, thoroughly positive experiences. The challenge from here is turning now to turn the good ideas and camaraderie generated there and turning them into something that truly affects change in the community. Greater Montgomery can enhance the impact of the Diversity Summit by ensuring that it addresses diversity issues specific to the Montgomery region (such as age and gender) and leads directly to real change. Actions: > Continue to broaden the scope of the Diversity Summit to encompass additional aspects of diversity, including age and background. > Develop an actionable work plan at the conclusion of each Summit.
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Objective 4: Engage in proactive initiatives to create a positive identity and image of Montgomery for current and future residents. The Montgomery region’s leaders and residents have taken on much hard work and accomplished many transformative successes since the launch of Imagine a Greater Montgomery I. However, the message of these achievements and the renewed face of Montgomery must be constantly communicated to residents in order for the entire region to understand and embrace what it truly means to “imagine a greater Montgomery.” Actions: > Collaborate with the Montgomery Advertiser and other local and national news outlets to publicly celebrate personal achievements and overall community successes. > Initiate a comprehensive internal public relations campaign that tells the story of Montgomery to its regional residents. > Counteract negative perceptions of Greater Montgomery among key groups.
MONTGOMERY AREA CHAMBER OF COMMERCE DEPARTMENTS & SENIOR STAFF The Chamber has three physical locations:
MAIN CHAMBER OFFICE 41 Commerce Street, Montgomery AL 36104 334-834-5200 Executive
Randall L. George, CEcD | President 334-240-9423 | rgeorge@montgomerychamber.com
Anna Buckalew | Senior Vice President 334-240-9423 | abuckalew@montgomerychamber.com Patsy W. Guy | Vice President, Member & Investor Relations 334-240-9434 | pguy@montgomerychamber.com Tina McManama | Vice President, Marketing & Communications 334-240-9295 | tmcmanama@montgomerychamber.com
Paul Redhead, IOM | Vice President, Administration 334-240-9446 | predhead@montgomerychamber.com Corporate Development & Recruitment
Ellen G. McNair, CEcD | Senior Vice President,
Objective 5: Learn from other communities and embrace their best practices. While many communities can assume a defensive posture when presented with another community’s successes, the team of Montgomery metro representatives that went on the inter-city visit to Austin in December, 2010 came back full of ideas and invigorated by some of the major successes experienced in that region. The reality is that communities that do not make themselves aware of best practices in economic and community development are less likely to risk upsetting the status quo. Inter-city community visits are one of the most effective ways to understand your own community better and to develop new ideas about how to improve it. The leadership team that visited Austin should endeavor to conduct such a trip every year and to steadily build an arsenal of best practices expected to translate well to the Montgomery region. In Market Street’s experience, community visits can be an extraordinarily effective means of modeling economic development programming. Those communities that never conduct such trips are often among the most siloed and gridlocked in their inabilities to seek solutions outside of their local problems. Actions: > Continue annual inter-city leadership visits to best practice regions dealing with similar community issues and competitive challenges as the Montgomery area. > Identify a short list of best practices from each visit to be considered for implementation in Greater Montgomery.
Corporate Development 334-240-9430 | emcnair@montgomerychamber.com
THE CHAMBER SMALL BUSINESS RESOURCE CENTER 600 S. Court Street, Montgomery AL 36104 334-832-4790 Dr. Cameron Martindale | Senior Vice President, Community Development 334-240-9299 | cmartindale@montgomerychamber.com Harold L. Boone, Sr. | Vice President, Minority Business Development & Leadership Programs 334-262-2270 | hboone@montgomerychamber.com Joe Greene | Vice President, Military & Governmental Affairs 334-240-9459 | jgreene@montgomerychamber.com Douglas Jones | Vice President, Business Services Executive Director, The Small Business Resource Center 334-240-6864 | djones@montgomerychamber.com
The Chamber Convention & Visitor Bureau Union Station 300 Water Street, Montgomery AL 36104 Montgomery Visitor Center 334-262-0013 Dawn Hathcock | Vice President, Convention & Visitor Bureau 334-261-1100 | dhathcock@montgomerychamber.com
www.montgomerychamber.com
facebook.com/montgomerychamber twitter.com/mgmchamber youtube.com/montgomerychamber
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2012 Board of Directors
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Anita L. Archie Business Council of Alabama
Jake F. Aronov Aronov Realty Management, Inc.
Owen W. Aronov Aronov Realty Management, Inc.
Robin Barca Leadership Montgomery
Carl A. Barranco Montgomery Area Committee of 100
Carl J. Bartlett, Jr. Jim Wilson & Associates, LLC
Jere L. Beasley, Jr. Boosters, Inc.
Jere L. Beasley, Sr. Beasley, Allen, Crow, Methvin, Portis & Miles PC
Gregory B. Calhoun Calhoun Food Supermarket
Larry F. Chapman Blue Cross Blue Shield of Alabama
A. Bruce Crawford BBVA Compass
Cassandra Crosby-McCullough Crosby Drinkard Group
Eleanor L. Dawkins Ross Clayton Funeral Home, Inc.
Elton N. Dean, Sr. Montgomery County Commission
Martha T. Demere Entec Stations, Inc.
Arthur J. DuCote Regions Bank
Willie Durham State Farm Insurance
C. Lee Ellis Alfa Insurance Companies
Reverend Terry Ellison New Life Church of God in Christ
Lt Gen David S. Fadok Air University, Maxwell AFB
Rick G. Fleming Hewlett Packard
Tammy Knight Fleming Knight Fleming & Associates
J. Tyler Fondren AT&T Alabama
Collin R. Gaston WSFA-TV
Montgomery Business Journal January 2012
Randall L. George Montgomery Area Chamber of Commerce
Robert E. L. Gilpin, Gilpin Givhan, PC
Stephen S. Goldsby Integrated Computer Solutions
Jason W. Goodson EMERGE Montgomery
Richard E. Hanan Montgomery Water Works & Sewer Board
Paul M. Hankins Alabama Association of Independent Colleges & Universities
Sylvia N. Harper Central Alabama OIC
William H. Harris, Ph.D. Thomas Ashley Harris Alabama State University Merchant Capital Investments
Jack Hawkins, Jr., Ph.D. Troy University
Donald G. Henderson Jackson Hospital & Clinic, Inc.
Robert M. Hertenstein Aliant Bank
Horace H. Horn PowerSouth Energy Cooperative
W. Daniel Hughes, Jr. Summit Housing Partners
Jodie E. Hughes BB&T
Lance D. Hunter Hodges Warehouse + Logistics
C. S. Kim MOBIS Alabama, LLC
Jerry C. Kyser Jerry Kyser Builder, Inc.
E. Kyle Kyser, Jr. Jerry Kyser Builder, Inc.
G. C. Lee Hyundai Power Transformers USA, Inc.
Y. D. Lim Hyundai Motor Manufacturing Alabama, LLC
John W. Livings Wells Fargo Bank
James K. Lowder The Colonial Company
Joshua K. Lowder Colonial Commercial Realty, Inc.
B. Saxon Main Ball, Ball, Matthews & Novak, PA
Chester D. Mallory Montgomery Airport Authority
C. Bernell Mapp Health Services, Inc.
Samuel P. Martin The Advertiser Company, Inc.
F. Berry Grant Industrial Development Board of the City of Montgomery
Joseph Hampton Alabama Gas Corporation
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H. Greg McClellan MAX Credit Union
Jerry A. Newby Alfa Insurance Companies
Brig Gen Craig S. Olson Enterprise Information Systems
Larry D. Puckett Larry Puckett Chevrolet
David B. Reed Goodwyn, Mills & Cawood, Inc.
Peter A. Reynolds Rheem Water Heaters
Riley W. Roby Balch & Bingham LLP
Stephen G. Rutledge Alfa Insurance Companies
Leslie L. Sanders Alabama Power Company
James H. Sanford HOME Place Farms, Inc.
Tomi J. Selby Information Transport Solutions, Inc.
Ned F. Sheffield Jackson Thornton
Shannon G. Speir Speir Consulting
Richard M. Stabler Wilson, Price, Barranco, Blankenship & Billingsley, PC
Benjamin C. Stakely Kowa Pharmaceuticals America, Inc.
Mayor Todd Strange City of Montgomery
Percy D. Thomas Thomas Construction & Masonry Company, Inc.
Barbara W. Thompson Montgomery Public Schools
W. Russell Tyner, Baptist Health
Phillip B. Young, UBS Wealth Management
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Montgomery Business Journal January 2012
David R. Thrasher, M.D. Thomas J. Tsekouras SABIC Innovative Montgomery Pulmonary Plastics Consultants, PA
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January 2012 Montgomery Business Journal
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Bringing the Jobs Home Gov. Robert Bentley praises Alabama’s work force by David Zaslawsky
Fouts Commercial Photography
“We were able to announce future jobs in this state – about 1,250 yesterday,” Bentley said during his speech. “I wish I could do that every day. The most important thing is creating jobs in the State of Alabama. That should be our No. 1 priority.” What he is doing on a daily basis is talking with CEOs from U.S. companies as well as foreign businesses. He said most CEOs want to talk to the governor “so I make myself available every day.”
Major economic development announcements have been few and far between for the State of Alabama during a sluggish recovery, but Governor Robert Bentley ended last?? year with some significant news. He announced 1,250 jobs, many of which will occur over a two- to five-year-period. He told a packed RSA Activity Center crowd attending a Montgomery Area Chamber of Commerce event that a new nuclear plant in Hollywood would result in 650 new jobs and 2,600 construction jobs over a fiveyear span. “That’s a lot of jobs in Jackson County,” Bentley said, referring to the Bellefonte nuclear plant, which is expected to be operational between 2018 and 2020. Bentley announced 200 jobs that Carpenter Technology will create at a new, 400,000-square-foot steel mill in Limestone County as part of a $500 million capital investment. The audience also heard about MercedesBenz U.S. International manufacturing a fifth vehicle at the plant in Vance, creating 400 jobs. The company is investing $350 million in its expansion.
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Montgomery Business Journal January 2012
Because of what Bentley called the “total disarray and confusion of economic development teams all over the state,” the Alabama Economic Development Alliance was formed and tasked with crafting a statewide strategic plan. The alliance, which was created by an executive order, will streamline the state’s economic development entities. “We need some organizational structure as we create more jobs and make it easier for us to create jobs in this state,” Bentley said. For the first time in years, the state’s fouryear colleges and universities will be heavily involved in economic development. “There are a lot of bright minds in our institutions of higher learning and we need to take advantage of those (people),” Bentley said. Bentley, who is thrusting himself in the role as the state’s chief economic development salesman, said that Alabama has several advantages over other states including its work force, work force training and its status as one of 22 right-to-work states. “The most important thing is this: We have the best work force of any state in the country and I say that everywhere I go,” Bentley said.
Area Development magazine ranked Alabama No. 3 in the country for doing business behind Texas and Georgia. Alabama tied for first place in the incentives aspect of the survey and was ranked second for labor costs and work force development programs. He reminded the attendees at the Chamber event that “incentives do work” and those incentives help create jobs. “If you create jobs you’re going to put money into the coffers of education here in Montgomery,” Bentley said about the Education Trust Fund budget. The governor talked about the three Rs of economic development: Recruitment, retention and renewal. “If we do that (the three Rs) we can create jobs in this state and we are going to continue to do that,” Bentley said. “That is my goal; that is the goal of the Legislature. We are going to continue to work together to get that done.” He noted that most jobs come from existing industries/businesses expanding. Renewal is “about innovation and entrepreneurship.” He emphasized the importance of the state’s brightest minds “to come up with ideas and those ideas become products; and those products become companies; and those companies hire workers and they are retained here in Alabama.” The governor was asked about high school vocational training and acknowledged that area has been neglected and needs to be linked to technology and training in the two-year college system. It was neglected “because we think that everyone should go to college and get a four-year college degree, but that is just not true. I think education ought to be for one reason and that’s to prepare you in life to get a real job and go to work.” •
Sewell Urges Incentives for Small Businesses by David Zaslawsky
One of the first pieces of legislation that freshman Rep. Terri Sewell Rep. Terri Sewell introduced last year in Congress was the Small Business StartUp Savings Account Act. The bill would permit entrepreneurs to save $10,000 a year – tax-exempt – to fund a start-up business. Sewell said that encouraging “entrepreneurship is critically important.” Sewell, who was speaking before political and business leaders at a Montgomery Area Chamber of Commerce’s Eggs & Issues event, said that government has a role in business and that role is “incentivize and step back.” The Democrat from Birmingham who was elected in 2010, said, “Now is not the time to overburden businesses with regulation. Right now, we need to be incentivizing businesses to hire people and not overburden them.” She said she voted against EPA legislation despite calls from her party and President Obama. Sewell said she also received phone calls from farmers who opposed the legislation and she represents nine counties in the Black Belt – 12 counties overall. With the expected redistricting, Sewell will add Lowndes County and west Montgomery. “I believe that small businesses are really the backbone of our economy,” said Sewell, who is a member of Agriculture Committee and the Space, Science & Technology Committee.
“In this day and age, we need to make sure that we incentivize small businesses. Any playbook (we use) to bring the economy back has to have in it strong help for small businesses.” She told the audience that the entire Alabama Congressional delegation meets monthly. She is the lone Democrat in the delegation. “We set a shining example of how members of Congress can work together even if we’re on different sides of the political aisle,” Sewell said. “I am extremely impressed with our delegation. Moving this state forward is really not a partisan issue.” She said the monthly lunch meeting is restricted to the delegates – no staff members allowed. She credited the delegation’s closeness with helping to marshal federal resources to respond to Alabama’s deadly tornado outbreak last spring. Sewell stressed that she concentrates her efforts to increase the “resources and opportunities” for her constituents. “I learned that you have to use every opportunity that you have to talk about your district.” One of those opportunities came during President Obama’s Stateof-the-Union Speech last year. Sewell was invited to walk in front of the president and when he greeted her moments before the speech, she reminded Obama that her district “is one of the poorest in the country; is the poorest in Alabama; and needs resources and opportunities.” It’s OK. Sewell knows Obama – they went to Harvard Law School together. •
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Member News
Business Buzz brokerage firm Anderson & Strudwick Inc.
Robert Gilpin
Eddie Stivers
MONTGOMERY LAW FIRM OPENS BIRMINGHAM OFFICE
STIVERS AUTOMOTIVE GROUP ADDS MAZDA VEHICLES
MONTGOMERY – The Montgomery law firm of Kaufman Gilpin McKenzie Thomas Weiss, P.C., recently announced the addition of nine Birmingham-based attorneys and a change to the firm name.
MONTGOMERY – The Stivers Automotive Group will carry Mazda vehicles and create 20 jobs.
The firm will be known as Gilpin Givhan, P.C., and will have fullystaffed offices in Montgomery and Birmingham with a total of 24 attorneys. The addition of the Birmingham attorneys gives the firm increased depth in the areas of labor and employment, health care and litigation, and helps to build on the firm’s core practice of taxation, estate planning and business transactions. “This combination of experience and expertise is an across-theboard enhancement to the legal services we provide for clients,” said Robert Gilpin, shareholder with Gilpin Givhan, P.C. “Bringing these two groups of like-minded attorneys together into one firm is a winwin for clients,” said Marcus Givhan, also a shareholder with Gilpin Givhan, P.C.
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“We are very proud to announce the addition of the Mazda brand to our dealership holdings in Montgomery,” said Eddie Stivers, president of the Stivers Automotive Group. “We are now able to offer domestic, luxury and import vehicles to the River Region. We are excited to offer the Mazda family of vehicles. Mazdas are great looking and fun to drive.” The Mazda brand will be located next to Stivers Ford Lincoln at 4000 Eastern Blvd. Stivers Mazda is open for sales and service. The St. Louis-based Stivers Automotive Group is a privately owned dealership group. STERNE AGEE GROUP TO ACQUIRE ANDERSON & STRUDWICK BIRMINGHAM – Sterne Agee Group Inc. has entered into a letter of intent to acquire
Montgomery Business Journal January 2012
Sterne Agee, a financial holding company that is based in Birmingham and has a Montgomery office, expects to complete the acquisition early this year. With the acquisition, Sterne Agee will expand its wealth management business with Anderson & Strudwick’s 18 offices in the East; Knoxville, Tennessee; and Chicago. “We are excited at the opportunity to expand our eastern presence with the acquisition of Anderson & Strudwick and believe that Anderson & Strudwick has built an impressive business with a culture similar to ours in key markets in the eastern United States,” said Jim Holbrook, chairman and CEO of Sterne Agee Group. Damon Joyner, president and CEO at Richmond, Virginiabased Anderson & Strudwick, will become a senior managing director at Sterne Agee. Sterne Agee has nearly 1,200 employees and 45 offices in 23 states. LOCAL CAR, TRUCK SHOW RAISES $4,500 FOR CHARITIES MONTGOMERY – The Fourth Annual River Region Open Car and Truck Show raised $4,500 for various charities. Representatives of the show’s sponsors, the Capitol City Corvette Club, the GM High Performance Club, the Capital
City Street Rod Association and the Tri County Mustang Club, presented checks for the Montgomery Area Food Bank, Montgomery Area Council on Aging, Juvenile Diabetes Foundation, Liddy Shriver Sarcoma Foundation, Cancer Wellness Foundation and the Big Brothers/Big Sisters Program.
C. Lee Ellis III
ELLIS ANNOUNCES RETIREMENT FROM ALFA INSURANCE MONTGOMERY – Alfa Insurance Executive Vice President of Operations C. Lee Ellis III has announced plans to retire February 1 after 36 years with the company. Alfa President and CEO Jerry Newby praised Ellis for his leadership and exemplary service to policyholders. “Lee embodies the wise, conservative management philosophy that has made Alfa a strong company,” Newby said. “Under his leadership, we have not only grown the Alfa companies and set records for production, but we also have implemented initiatives that allow us to better serve Alfa’s customers. In the last 12 years,
Alfa has made major strides in embracing new technology and has established procedures to ensure it is prepared to deliver the company’s promise to policyholders, no matter how severe the disaster.� Ellis joined Alfa in 1975 as an investment officer. He quickly rose through the ranks of the company, serving as an assistant vice president, vice president, senior vice president, and executive vice president of investments and chief investment officer before being named executive president of operations in 1999. A Montgomery native, Ellis received a political science degree from the University of North Carolina. In announcing his plans, Ellis spoke fondly of the employees, board members and local leaders he’s worked with during his tenure with the organization. “I have enjoyed many wonderful moments throughout my career, but the best part has definitely been building relationships with the many exceptional employees and friends that make up the Alfa family,� he said. “I feel exceptionally blessed to have been given the opportunity to work with a company that promotes strong values and community service, and I am grateful to have built many lifelong relationships in the process.� Under Ellis’ leadership, Alfa grew its life insurance portfolio from $12 billion in force in 1999 to $27 billion today. He also led efforts to expand Alfa’s property and casualty business beyond Alabama, Georgia and Mississippi with the acquisition of Alfa Alliance Insurance Corp., and Alfa Vision Insurance Corp. Today, Alfa and its affiliates provide insurance and other financial services in 12 states.
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ANZALONE LISZT RESEARCH EXPANDS WITH NEW YORK OFFICE MONTGOMERY – Anzalone Liszt Research has opened a new office in New York City, headed by partner Jeff Liszt. The NYC office will continue the firm’s expansion that began with the opening of a Washington, D.C. office in 2008 that now features three senior staff. The company’s third location in New York will help expand the firm’s non-profit, philanthropic and issue advocacy practice. Anzalone Liszt Research is a public opinion research firm headquartered in Montgomery specializing in message development and strategic consulting. The firm currently conducts polling for two United States senators, 12 members of the U.S. House and several statewide officials.
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Richard Younger
YOUNGER OPENS NEW FIRM: MONTGOMERY CPA ASSOCIATES MONTGOMERY – Richard Younger has opened a certified public accounting firm. (Continued on page 60)
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January 2012 Montgomery Business Journal
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BUSINESS BUZZ (CONTINUED FROM PAGE 59) His firm will provide the following service areas: individual tax planning and preparation; small business assurance and tax services; financial statement audits – focusing primarily on non-profit organizations and trade associations; litigation consulting and expert witness testimony; business valuation; and fraud examination. Younger has 15 years’ experience in public practice and including the past 10 years with Aldridge Borden & Co., Younger said by having his own firm he will be able to serve clients as a certified public accountant and business adviser. He said it will also enable him the flexibility to “grow my portfolio of restaurant ventures.” His firm - Montgomery CPA Associates – is located at 8228 Old Federal Road. The phone number is (334) 462-6456. CAPELL & HOWARD ATTORNEYS NAMED TO BEST LAWYERS’ LIST MONTGOMERY – Three attorneys from the Montgomerybased law firm of Capell & Howard, P.C., were recently singled out by Best Lawyers. Henry H. Hutchinson was named “Montgomery Best Lawyers Corporate Lawyer of the Year” and M. Courtney Williams was named “Montgomery Best Lawyers Litigation & Controversy Tax Lawyer of the Year.” George L. Beck, who recently left the firm to become the U.S. Attorney for the Middle District of Alabama, was named as “Montgomery Best Lawyers Criminal Defense: Non-White Collar Lawyer of the Year.” Only one lawyer in each specialty in a community is honored as the “Lawyer of the Year.” These lawyers received particularly high ratings in the Best Lawyer surveys by earning a high level of respect among
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their peers for their abilities, professionalism and integrity. Fifteen additional lawyers at Capell & Howard, P.C. were selected by their peers for inclusion in The Best Lawyers in America. The following attorneys were named: William D. Coleman, Frank H. McFadden, William K. Martin, Bruce J. Downey, Henry C. Barnett, K. Palmer Smith, Robert T. Meadows, Henry H. Hutchinson, Shap D. Ashley, D. Kyle Johnson, Robert F. Northcutt, J. Lister Hubbard, James N. Walter, Debby D. Spain, R. Brooke Lawson, M. Courtney Williams and James M. Scott. The attorneys selected practice in the areas of arbitration, mediation, construction law, labor and employment law, family law, real estate, trusts and estates, tax law, commercial litigation, corporate law and employee benefits law.
worked with the administration to facilitate the institution’s transition from a junior college to a four-year college to a university encompassing five colleges, including a law school. After a name change to Faulkner University, Hilyer was named president in 1986. Under Hilyer’s tenure, Faulkner has increased its enrollment, added to its number of programs and degrees and expanded its campus.
Carts are lined up and tournament players hit a few practice swings at the MAX4Kids Charity Golf Tournament.
Best Lawyers is the oldest and most respected peerreview publication in the legal profession.
GOLF TOURNAMENT RAISES $33,000 FOR MAX4KIDS FOUNDATION
FAULKNER HONORS PRESIDENT’S 25 YEARS OF LEADERSHIP
PRATTVILLE — The MAX4Kids Foundation golf tournament raised a record $33,000.
MONTGOMERY – Faulkner University honored President Billy D. Hilyer for his 25th anniversary. Alabama Governor Robert Bentley presented a surprised Hilyer with a commendation for Hilyer’s service to the university and to the state during the school’s Annual Benefit Dinner held at the Renaissance Hotel & Spa at the Convention Center. Former President George W. Bush was the featured speaker. The Faulkner Board of Trustees also presented Hilyer and his wife, Kay, with a crystal award commemorating their 25th year as the university’s president and first lady. Hilyer first came to work for Alabama Christian College in 1976. During that time Hilyer
Montgomery Business Journal January 2012
The 12th annual charity event attracted 175 players and 125-plus corporate sponsors at Robert Trent Jones Golf Trail at Capitol Hill in Prattville. “The annual charity golf tournament is the foundation’s largest fundraiser of the year,” MAX4Kids Foundation President D.G. Markwell said. “Through MAX4Kids, fantastic organizations and individuals who serve our community are able to make a huge impact on the children in the River Region.” The MAX4Kids Foundation has donated more than $531,900 to children’s charities and has distributed more than $200,000 in college scholarships to high school seniors during the past 12 years.
The MAX4Kids Foundation was founded by the associates of MAX Credit Union. BAKER, DONELSON MERGES WITH TWO LAW FIRMS BIRMINGHAM – Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., has merged with both a law firm in Texas and another in Florida. The Birmingham-based law firm, which has an office in Montgomery, merged with the Houston law firm of Spain Chambers, marking Baker Donelson’s entry into Texas. The firm also merged with the Orlando law firm of Litchford & Christopher Professional Association. That is Baker Donelson’s first location in Florida. The two mergers give Baker Donelson 620-plus attorneys across 17 offices in seven states. Baker, Donelson is the 73rd largest law firm in the country.
Paul Hankins
UNITED STATES SPORTS ACADEMY HONORS COLLEGE ORGANIZATION LEADER DAPHNE –During the past seven years, Paul Hankins has grown the Alabama Association of Independent Colleges and Universities (AAICU) into one of the top state independent college organizations in the country. The retired U.S. Air Force brigadier general is being honored by the United States Sports Academy with a 2011 Distinguished Service Award for his leadership of
BUSINESS BUZZ an association that serves 14 independent higher education institutions in Alabama and for his involvement in various nonprofit and public organizations. The Distinguished Service Award is given annually by the academy to those individuals who have made outstanding contributions to national or international sports through instruction, research or service. At AAICU, Hankins is an advocate for progressive and innovative educational change. His work with the governor’s staff and legislative leaders continues to examine possible solutions to the educational problems facing Alabama, with a focus on finding ways to make education affordable for students attending any institution of higher education in the state.
rating is a reflection of your firm’s expertise, experience, integrity and overall professional excellence,” said Carlton Dyce, vice president of MartindaleHubbell Peer Review Ratings. “Your firm’s lawyers are part of a select group recognized for exceptional legal abilities and professional ethical standards.” The list of Top Ranked Law Firms in the United States will be published in Fortune magazine. “It is important to us, as a firm and as individual lawyers, to do the best job we possibly can on behalf of our clients,” said Thomas Methvin, managing shareholder of Beasley Allen. “It is an added pleasure to see the hard work of our lawyers recognized with this honor.”
The United States Sports Academy is an independent, non-profit created to prepare men and women for careers in sports.
Rick Williams
SCORE ANNOUNCES LEADERSHIP TEAM
Thomas Methvin
BEASLEY ALLEN LAW FIRM RANKED AMONG TOP IN U.S. MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., has been recognized by LexisNexis Martindale-Hubbell as one of the top nationally ranked law firms in the United States. Martindale-Hubbell rated 254,000 firms and just 996 were selected nationally for having at least one-third (33 percent) of their attorneys achieve an AV Preeminent rating. “Having a large percentage of attorneys with this peer review
MONTGOMERY – The Montgomery chapter of the Service Corps of Resource Executives (SCORE) recently announced its 20112012 leadership team. Rick Williams, a Prudential Financial professional, will lead the volunteer organization for a second consecutive term as chairman. Rounding out the team is Pam Langley of Exit Hodges Realty as vice chair; Mike Lee, secretary; and Curtis Ingram, treasurer. SCORE is a non-profit association dedicated to assisting entrepreneurs and helping small businesses start, grow (Continued on page 62) January 2012 Montgomery Business Journal
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BUSINESS BUZZ (CONTINUED FROM PAGE 61) and succeed nationwide. Its services are confidential and free. SCORE is a resource partner with the U.S. Small Business Administration (SBA) and has been mentoring small business owners for 40-plus years. The Montgomery chapter is located at the Montgomery Area Chamber of Commerce’s Small Business Resource Center at 600 S. Court St. The phone number is (334) 240-6868.
candidates typically have severe arthritis, but do not need to use the wrist to meet heavy demands,” Turki said. “The primary reasons for wrist replacement surgery are to relieve pain and to maintain function in the wrist and hand. Our ultimate goal is to help get the patient back to a normal daily lifestyle.” Turki received his degree from Emory University School of Medicine and studied orthopedics at the University of Texas Health Science Center at San Antonio. CUNNINGHAM GROUP WINS REGIONAL PUBLIC RELATIONS AWARDS
Hussein Turki
JACKSON HOSPITAL PERFORMS TOTAL WRIST REPLACEMENT SURGERY MONTGOMERY – Dr. Hussein Turki recently performed a total-wrist replacement. The procedure is used to treat patients who have severe arthritic conditions involving the wrist. Arthritis may be due to a systemic process such as rheumatoid disease or may be post traumatic following a wrist injury. Wrist replacement surgery is designed to allow for painless range of motion. The older alternatives in people crippled by arthritic wrists had been a fusion. While eliminating pain, the fusion also eliminates motion. A wrist replacement can meet both goals. The postoperative course usually involves an overnight stay at the hospital followed by therapy as an outpatient. Turki is a surgeon at Alabama Orthopaedic Specialists specializing in hand and upper extremity orthopaedics. “Total wrist replacements aren’t that common and most
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MONTGOMERY – The Cunningham Group won four awards at the Southern Public Relations Federation (SPRF) conference. The Montgomery-based Cunningham Group won awards for Alabama Shakespeare Festival’s 25th Anniversary Celebration; Vintage Affair’s annual fundraiser, “A Night In España;” Home Builder’s Association “Carnival at the Beach” promotion; and Hyundai Heavy Industries’ groundbreaking ceremony. The SPRF, a network of more than 1,300 public relations professionals from Alabama, Northern Florida, Louisiana and Mississippi, recognizes work in the field of public relations through its annual Lantern Awards program. The Cunningham Group has been providing advertising and public relations services in Montgomery since 1974. RENAISSANCE GENERAL MANAGER NAMED HOTELIER OF THE YEAR MONTGOMERY – Renaissance Montgomery Hotel & Spa at the Convention Center General Manager Mike Eveleth was
Montgomery Business Journal January 2012
named Hotelier of the Year for the Resort Collection on the Robert Trent Jones Golf Trail. The Alabama Restaurant Association and the Alabama Hospitality Association honored five Resort Collection employees across the state at the Stars of the Industry Dinner. Eveleth was the lone winner from Montgomery. “We are excited and honored that our employees received the recognition that they deserve,” said Steve Solberg, CEO of PCH Resorts that manages the Resort Collection. “The success of our hotels are a reflection of our hard-working and devoted staff.” STAYBRIDGE SUITES AT EASTCHASE RECEIVES HOSPITALITY INDUSTRY AWARDS MONTGOMERY – Staybridge Suites at EastChase was recently honored with two of the hospitality industry’s highest awards during the 2011 InterContinental Hotels Group (IHG) Americas Investors & Leadership Conference. The east Montgomery hotel received the IHG 2011 Torchbearer Award, the company’s most prestigious prize. Staybridge Suites is one of only 116 properties within the Americas chosen from the IHG system of more than 4,400 hotels for achieving the highest levels of excellence in all aspects of operation, from quality to customer satisfaction. Staybridge Suites at EastChase also received the 2011 Priority Club Excellence Award based on overall guest satisfaction obtained from guest surveys and by providing outstanding experiences for Priority Club Rewards members during stays at its hotel. Priority Club Rewards is the world’s largest hotel loyalty program with almost 60 million members worldwide.
J. Greg Allen
ALLEN LAW CENTER OPENS AT JONES SCHOOL OF LAW MONTGOMERY – A ribboncutting ceremony was held to celebrate the grand opening of the new Allen Law Center on the campus of Thomas Goode Jones School of Law at Faulkner University. The new, $2.5 million law school facility was named in honor of Jones alumnus J. Greg Allen, a shareholder at the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. The new facility adds about 17,000 square feet to the existing law school building and includes additional study space in the law library, a classroom, faculty office space, a courtroom and space for the school’s three law clinics. The law clinics assist clients with cases involving family violence, elder law and mediation. The new building provides space for client interview rooms and features a separate, private entrance and parking area for the clinic’s clients. “I can’t tell you how much this means to me,” Allen said. “I am so proud of this law school, and how it has grown throughout the years. It is exciting to see its continued growth with this new building, and I am honored and humbled to see my name as a part of it. I believe it is very important to give back, and that my contribution to this school is small compared to what the school has provided to me and to so many others.” Charles I. Nelson, dean and professor of law at Jones School
BUSINESS BUZZ of Law, said, “We are very pleased to dedicate the new addition to the Jones School of Law building as The Allen Law Center in recognition of J. Greg Allen, one of our most distinguished graduates.” STONE MARTIN BUILDERS HONORED FOR ENERGYEFFICIENT HOMES MONTGOMERY – Stone Martin Builders is the only builder in the River Region to meet the U.S. Department of Energy’s Builders Challenge. The Builders Challenge program provides standards that help homebuyers choose the best energy-performing homes in their market. Builders are required to meet or exceed the Department of Energy quality criteria in home design and construction. Each Stone Martin Builder home is constructed to meet the rigorous quality and energy efficiency Builders
Challenge standards by using the latest building technology including spray foam insulation, tankless water heaters and 16 SEER heat pumps. Stone Martin Builders builds new homes throughout the River Region, priced from the $130,000s to $300,000s. For information, visit www. StoneMartinBuilders.com ABOUT 1,300 LAWYERS ATTEND ANNUAL CONFERENCE MONTGOMERY – Nearly 1,300 lawyers attended the fifth annual Legal Strategies Conference & Expo at the Renaissance Montgomery Hotel & Spa at the Convention Center. The event, which is hosted by the law firm Beasley, Allen, Crow, Methvin, Portis and Miles, P.C., provides continuing legal education credits and is open to all Alabama lawyers in private practice.
“We are extremely pleased to be able to offer this conference as a service for lawyers throughout the state of Alabama,” Beasley Allen managing shareholder Tom Methvin said. “This is a valuable opportunity for continuing education, as well as providing the chance for networking with other attorneys.” Alabama Governor Robert Bentley delivered the keynote speech.
Standard Roofing is one of seven recipients of the Commitment to Excellence Award, which is based on performance criteria that includes excellence in leadership, strategic planning, attention to customers and other stakeholders, market focus, process management and analysis of organization performance. PRINTWISE TECHNOLOGIES RECEIVES PRESTIGIOUS CERTIFICATION
The two-day conference had an economic impact of about $1 million, according to Dawn Hathcock, vice president, Montgomery Area Chamber of Commerce Convention & Visitor Bureau. STANDARD ROOFING RECEIVES 2011 ALABAMA QUALITY AWARD MONTGOMERY – Standard Roofing has been designated a recipient of the 2011 Alabama Quality Award.
MONTGOMERY – Printwise Technologies received the ISO 9001:2008 certification. This quality management certification is awarded to organizations that meet the rigorous criteria for assuring quality in the products or services offered.
(Continued on page 64)
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BUSINESS BUZZ (CONTINUED FROM PAGE 63) “Achieving ISO 9001:2008 certification sharpens our focus on continual improvement of service efficiency and effectiveness, which gives us a distinct advantage in serving our customers and maintaining our position as an MPS (Managed Print Services) leader in the Southeast,” said Newt Higman, president of Montgomery-based Printwise Technologies. For information, contact Printwise Technologies at 334-323-9473 or visit www.myprintwise.com. ONLINE COMMERCE GROUP REPORTS INCREASED SALES MONTGOMERY – Online Commerce Group, LLC (OCG) reported a nearly 100 percent increase in Cyber Monday sales on its flagship site CushionSource.com. The company, which offers upscale custom outdoor
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and logistics of high-quality products, we are able to exceed our customer’s expectations.”
Bob Winter
living products, also reported a 28 percent increase in the number of transactions from online shoppers. “This year (2010) we have unveiled a number of innovative solutions designed around the consumer experience,” said Bob Winter, general manager of Online Commerce Group. “From the first moment they land on our website, our singleminded purpose is to simplify the process by providing an intuitive step-by-step interface. By tightly integrating the manufacturing
Montgomery Business Journal January 2012
In August, CushionSource.com unveiled a user-friendly fabric viewer, which includes larger images of fabric swatches so customers can obtain a clear view of the color as well as texture of each fabric before making their selection. More recently, the site introduced the Cushion Inspiration Design Center, an innovative application that allows consumers to view the fabric of their choice on their desired style of cushion prior to purchase.
Kay Walters
TWO JACKSON HOSPITAL EMPLOYEES HONORED
David Coffey
MONTGOMERY – Two Jackson Hospital employees were among those honored for their dedication to the health care field.
director of respiratory therapy; were honored at a luncheon hosted by the Central Alabama Regional Hospital Council of the Alabama Hospital Association.
The two employees – Dr. David Coffey and Kay Walters,
Coffey, who has served the Montgomery area as a family
physician in private practice on Jackson Hospital’s campus since 2004, provides general medicine and osteopathic medical services for his patients. Walters has been with Jackson Hospital since 1997 and is a registered respiratory therapist. She is also a neonatal and pediatric specialist and a certified asthma educator. FAULKNER UNIVERSITY SIGNS ON WITH WALKER360
and see our attractive new space and celebrate the official opening of our new retail office,� Brown said. “The one-on-one interaction with our customer service account specialists and enhanced services available at this new location help us fulfill our mission to deliver insurance products with unmatched quality and value to the community.� Palomar Insurance, which was founded in 1954, has offices in Birmingham, Troy and Atlanta.
MONTGOMERY – Walker360 has announced that it has been named agency of record of nontraditional student recruitment for Faulkner University. With campuses in Montgomery, Birmingham, Huntsville and Mobile, Faulkner University began as Montgomery Bible College in 1942. The Montgomery campus is now home to five colleges: the Alabama Christian College of Arts and Sciences, the Harris College of Business and Executive Education, the V.P. Black College of Biblical Studies, the College of Education, and the Thomas Goode Jones School of Law. Walker360 is an advertising and printing company that offers a range of services from marketing plans and strategies, to graphic design and copywriting for radio, TV, print, outdoor, direct mail, websites, and packaging. PALOMAR INSURANCE OPENS FIRST RETAIL LOCATION IN MONTGOMERY MONTGOMERY – Palomar Insurance celebrated the official opening of its first retail sales office in Montgomery. The Palomar Plus office at 8193 Vaughn Road in the Peppertree II shopping center has an eightperson sales staff directed by Sharon Brown, director of Personal & Select Units for Palomar Plus.
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Tish Leonard
CUPCAKE STORE OPENS IN MULBERRY DISTRICT MONTGOMERY â&#x20AC;&#x201C; Cupcakes by Tish held a grand opening for its store in the Mulberry shopping district. The store offers traditional cupcakes, but also sugar-free and gluten-free cupcakes as well. â&#x20AC;&#x153;Diabetes and allergies pose a problem for some, but our variety of cupcakes will also include health-conscious options to serve the entire family,â&#x20AC;? said store owner Tish Leonard. â&#x20AC;&#x153;We realize there are many outlets for cupcakes, but unlike the rest, particularly the chain stores, our products are made from scratch daily and we do not use preservatives.â&#x20AC;? Cupcakes by Tish is located at 1940 Mulberry St. and is open from 10 a.m. to 6 p.m. Monday-Saturday. â&#x20AC;˘
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â&#x20AC;&#x153;We want to welcome all our current clients as well as everyone in the River Region to come
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Members on the Move PICKWICK ANTIQUES HIRES INTERIOR DESIGNER MONTGOMERY – Pickwick Antiques announced Pam Sexton the addition of Pam Sexton to its staff. She will assume full-time responsibilities as interior designer at the Montgomery store. Sexton brings years of experience in the areas of design, display and knowledge of antiques. She is a graduate interior designer with a bachelor’s degree in interior design from Judson College.
Wells has experience in a wide range of civil lawsuits involving claims of employment discrimination or retaliation, civil rights violations, trademark infringement, fraud, breach of contract and other matters. She has argued cases before the Eleventh Circuit Court of Appeals and has experience in federal criminal defense work. She will be providing counseling and guidance to employers on a wide variety of topics, including but not limited to development of personnel policies, investigations of employee misconduct and arbitration under collective bargaining agreements. METLIFE ADDS MANAGING DIRECTOR, AGENCY SALES DIRECTOR
Sexton has worked with clients from around the South with a wide range of interior needs from color and fabric selection, furnishing placement, decorative accents and painting selection as well as integrating antique pieces. Pickwick, which also has locations at The Stalls in Atlanta; and the Interiors at Pepper Place in Birmingham; offers antiques from around the world. Inventory includes 18th, 19th and early 20th century English and French furniture and accessories, English paintings and a selection of European and Chinese porcelain. The Montgomery store is located at 3851 Interstate Court and the phone number is (334) 279-1481. ATTORNEY RETURNS TO CAPELL & HOWARD MONTGOMERY – Capell & Howard, P.C., announced that Barbara J. Wells is returning to the law firm as a shareholder. She left the firm in 2002 to begin nine years of service as a Career Judicial Law Clerk with Mark E. Fuller, a United States District Court Judge for the Middle District of Alabama. She recently made the decision to return to private practice, focusing on labor and employment law and commercial litigation.
Joseph Holt McGee
MONTGOMERY – Ernest L. Jordan III and Joseph Holt McGee have joined MetLife Financial Group of the South.
Jordan, a graduate of Faulkner University with a degree in management, has been named Ernest Jordan a managing director. He has worked in the financial services industry for 28 years. McGee, who has 18 years of experience in the financial services industry, is the company’s new agency sales director. He will be managing the firm’s business performance. He has a bachelor’s degree in economics from Cornell University and a master’s degree in finance and entrepreneurship from Babson College. The two will manage the Montgomery office. The firm offers various financial products and services including life, disability income, long-term care insurance and annuities, mutual funds and investment products. MetLife Financial Group of the South is an office of MetLife.
66
Montgomery Business Journal January 2012
RIVER BANK & TRUST NAMES CHIEF FINANCIAL OFFICER PRATTVILLE – Kenneth H. Givens has been named Ken Givens chief financial officer for River Bank & Trust. Givens, who has 37-plus years of experience, attended Troy University and graduated from the University of Wisconsin’s Graduate School of Banking. He is a graduate and past trustee of Alabama Banking School. He has served as instructor for Alabama Banking School at the University of South Alabama and taught courses through the American Institute of Banking. River Bank & Trust, which was founded in 2006, is a locally owned and operated bank with offices in Montgomery, Prattville and Wetumpka. ALFA INSURANCE NAMES SMITH TO LEAD SALES EFFORTS MONTGOMERY – Alfa Insurance Senior Vice President of Marketing Patrick Smith Patrick Smith has been tapped to lead the agency and sales efforts of Alfa Insurance throughout Alabama. Smith has led the marketing team in North Alabama since April 2008. Steve Rutledge, executive vice president of marketing and business development for Alfa, said he expects Smith, 40, to bring the same energy and innovative thinking to Alabama’s overall sales program that contributed to sales records set by North Alabama agents and managers. “Patrick has been very successful in motivating the agency force in North Alabama,” Rutledge said. “He brings more than a decade of experience in sales management to this position, and he is eager to make Alfa the market share leader in Alabama through profitable growth of our automobile and life insurance lines.”
Smith worked with Buck Hardy, senior vice president of marketing for South Alabama, to transition agents and district managers to the new management system. Hardy had announced plans to retire December 1 after 46 years in the insurance industry. Smith said he is excited about the opportunity to build on Hardy’s success and work more closely with South Alabama managers and agents. “We have an extremely talented group of district managers and a loyal agency force,” Smith said. “It’s an honor to be given the opportunity to lead this outstanding group. I am excited about sales, marketing and business development working hand in hand under Mr. Rutledge’s leadership as we focus on growing the Alfa companies.” Under the leadership of Smith and Hardy, Alfa recently set a record for the number of automobiles insured in Alabama. In 2010, Smith’s North Alabama region set an Alfa record for life insurance production.
degree in business administration with an emphasis in marketing. Before joining Alfa, he was an associate vice president with Nationwide Mutual Insurance Co. Smith also served as a regional sales officer, regional sales director in Alabama and district sales manager in Alabama during his nine years with Nationwide. ADMIRAL MOVERS ANNOUNCES NEW HIRE
for Admiral’s sister company, Admiral Records Management. DePlanche has more than 20 years’ experience in sales, and is a certified sales professional and certified wireless data professional. Admiral Movers is an agent for Mayflower Transit, a UniGroup Co. DePlanche may be contacted at (334) 657-1410 or mdeplanche@ admiralrecordsmanagement.com. •
MONTGOMERY – Admiral Movers announced the addition of Mark DePlanche Mark DePlanche as part of the Admiral Records Management/Admiral Movers team. He will work with all aspects of the business, but his primary focus will be as information management consultant
A native of El Dorado, Arkansas, Smith graduated from Louisiana Tech University where he received a bachelor’s
January 2012 Montgomery Business Journal
67
New Members AccountingCertified Public
Attractions-Arts & Culture
Montgomery CPA Associates, LLC
Cloverdale Playhouse
Richard Younger 8228 Old Federal Road Montgomery, AL 36117 334-462-6456
Wealth Management Partners, LLC Keary L. Foster P.O. Box 11763 Montgomery, AL 36111 334-230-9676
Apartments Tuscany at Midtown Apartment Homes Scott Taylor 4054 Beth Manor Drive Montgomery, AL 36109 334-277-5505
Architects Cole & Cole Architects, Inc. Les Cole 3120 Zelda Court Montgomery, AL 36106 334-213-0094
Associations/ Non-Profit Alabama Alliance for Arts Education, Inc. Donna Russell 4131 Carmichael Road, Ste 24 Montgomery, AL 36106 334-269-1435
Alabama Association for Justice
Ginger Avery P.O. Box 1187 Montgomery, AL 36101-1187 334-262-4974
68
Emily Flowers 960 Cloverdale Road Montgomery, AL 36106 334-262-1530
Audio-Visual Consultants & Designers Interscapes, Inc.
Bob Hansen P.O. Box 242458 Montgomery, AL 36124-2458 334-395-6555 Ext 105
Automobile Parts & Services Haigler Auto Service
Larry Haigler 4287 Atlanta Highway Montgomery, AL 36109-3024 334-272-2025
Automobile Repair Services Chico’s Paint & Body, Inc
William H. Flores 1764 Hicks Industrial Boulevard Union Springs, AL, 36089 334-399-1055
Chico’s Paint & Body, Inc. William H. Flores 1665 McQueen Smith Road S Prattville, AL, 36066 334-399-1055
Don Duncan’s All American Automotive & Tire, Inc.
Don Duncan 408 Madison Avenue Montgomery, AL 36104 334-263-3872
Montgomery Business Journal January 2012
Don Duncan’s All American Automotive & Tire, Inc.
Don Duncan 2700 Bell Road Montgomery, AL 36117 334-270-9825
Bakery Cake Designs
Sandra McGhar 3651 Debby Drive Montgomery, AL 36111 334-288-6900
Cupcakes by Tish
Lekisha Leonard 1940-A Mulberry Street Montgomery, AL 36104 334-625-0999
Beauty Salons/ Spas L’Esprit Salon Da’Spa Gina Mount 8161-B Seaton Place Montgomery, AL 36116 334-260-0355
Studio 4619 Salon
Steven Leonard 8073 EastChase Parkway Montgomery, AL 36117 334-271-3778
Beverage Distributor/Bottler Bama Budweiser of Montgomery, Inc.
Steve Tatum 1700 Emory Folmar Boulevard Montgomery, AL 36110 334-263-1681
Bricks Jenkins Brick-Central Warehouse Chris Whisenant 703 Howe Street Montgomery, AL 36104 334-241-0790
Jenkins Brick/Coosada Brick Plant/Jenkins Stone Creations Brian Sims P.O. Box 69 Coosada, AL, 36020 334-285-5155
BuildersCommercial/ Residential Holley-Henley Builders, Inc.
Hoyt Henley 438-A Twain Curve Montgomery, AL 36117 334-272-298
Catering Services Leslie Bailey Events & Catering Leslie Bailey P.O. Box 4432 Montgomery, AL 36104 334-264-1116
Charitable Foundations Faith Crusades/ Montgomery Rescue Mission Curtis Browder P.O. Box 4444 Montgomery, AL 36103 334-834-0551
Child Care Centers True Divine Child Care Development
Edwin Lewis 4601 Troy Highway Montgomery, AL 36116 334-288-4558
Childrenâ&#x20AC;&#x2122;s Clothing & Specialty Items Born Childrenâ&#x20AC;&#x2122;s Boutique
Construction
Contractors
Western Dynamics International
Design Build South
Stephanie Moseley 3014 Zelda Road Montgomery, AL 36106 334-215-9140
Gene Crum P.O. Box 11218 Montgomery, AL 36111-0218 334-613-7956
Chiropractors
Construction Services
Hollis Chiropractic Robert Hollis 500 Shae Park Drive Montgomery, AL 36117 334-272-3883
Churches/ Ministries First Baptist Church of Greater Washington Park Willie Welch 2817 2nd Street Montgomery, AL 36108 334-284-2600
New Life Church of God in Christ
Terry Ellison 5600 Carriage Hills Drive Montgomery, AL 36116 334-558-0258
Newell Roadbuilders, Inc. Jack Newell 13266 US Highway 31 Hope Hull, AL, 36043 334-288-2702
Consulting Services Certified Technical Experts, Inc.
Eugene Tinker 600 South Court Street, Ste 314 Montgomery, AL 36104 205-792-1516
Matrix LLC
Kim Hines 644 South Perry Street Montgomery, AL 36104 334-262-5478
ComputersSoftware/ Hardware/ Consulting
McGuire Sponsel
BWS Technologies
Whitfield Consulting
Jeremy Jackson 3066 Zelda Road #377 Montgomery, AL 36106 334-358-6305
Consulting Serves/ Educational Erate 360 Solutions, LLC
Kasey Oakley 503 Coliseum Boulevard Montgomery, AL 36109 334-399-6492
TJ Sponsel 201 N. Illinois Street, Ste 1730 Indianapolis, IN 46204 317-564-5002
Virginia Whitfield 8428 Water Oak Court Montgomery, AL 36117 334-277-4548
Financial Planner/ Advisor
A. D. Payne 522 Interstate Park Drive Montgomery, AL 36109 334-558-0069
Parsons Broach Financial Services
Robert Broach 7050 Fain Park Drive, Ste 14 Montgomery, AL 36117 334-481-6916
Price Ceiling, Inc. Jason Bice 2000 Lay Dam Road Clanton, AL 35045 205-280-5500 www.priceceiling.net
Trip Phillips/Harbor Financial Services Trip Phillips 4209 Carmichael Road Montgomery, AL 36106 334-481-1405
Dentists Willis Dental Care
Fire/Water Damage
Pat Holt 8161 Seaton Place Montgomery, AL 36116 334-260-2929 www.willisdentalcare.com
Paul Davis Emergency Services of Prattville
Jon Turner 2751 Legends Parkway, Box 323 Prattville, AL 36066 334-358-8599
Electric Contractors
Fitness Center/Gym
Electric Service of Montgomery
Daniel Starr P.O. Box 9095 Montgomery, AL 36108 334-834-1414
ProFitness 3D
Jennifer Biddy 3251 Malcolm Drive Montgomery, AL 36116 334-356-0992
Embroidery/ Screenprinting Southern Threadworks Susan Fleming 3452 Eastdale Circle Montgomery, AL 36117 334-213-7359
Graphic Designers/ Desktop Publishing Creative Marketing Concepts
Terri Mendez 1085 Chesson Hill Drive Fitzpatrick, AL 36029 334-657-6575
Employment Screening Bradley Screening, LLC
(continued on page 70)
Debbie Bradley 5283 Vaughn Road Montgomery, AL 36116 334-272-3539
January 2012 Montgomery Business Journal
69
New Members (continued from page 69) Heating & Air Conditioning Services Engineered Cooling Services
Tylor Hibbard 868 Lagoon Commercial Blvd Montgomery, AL 36117 334-224-2349
Hospices
Individuals
Lisa Bond 700 Interstate Park Drive, Ste 705 Montgomery, AL 36109 334-260-0015
Monica G. Hammett, P.C.
Landscaping/ Lawn Services
Mini-Storage
Landscape Source, Inc.
Amy Abrahams 707 Shelia Boulevard Prattville, AL 36067 334-365-3333
Charisse D. Stokes 7956 Vaughn Rd #134 Montgomery, AL 36117 334-657-1883
Jerry Howell Faye Hall Jackson Mike Jenkins
Information Technology Firms
Monica G. Hammett 1310 Old Oak Place Montgomery, AL 36117 334-356-0836
Stor-House Mini Storage
Bill Gunter 11040 Highway 80 East Montgomery, AL 36117 334-420-5959
Hewlett-Packard
Vista Care Hospice
Telos Corporation
Rickie G. Fleming 4613 Triple Crown Drive Montgomery, AL 36109 334-224-8178
Mortgage/Finance
Legal Services - Attorneys
Nova Technology Solutions, LLC
Roger Herndon 600 South Court Street, Ste 204 Montgomery, AL 36104 334-241-0006
Hometown Lenders, LLC Tyler Tullis 242 Peace Church Road Wetumpka, AL 36093 334-567-4223
Butler, Snow, O’Mara, Stevens & Cannada, PLLC Mike Beers 250 Commerce Street Montgomery, AL 36104 334-832-2900
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Montgomery Business Journal January 2012
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Rockport Mortgage Corporation
Jon Killough 8136 Glynnwood Drive Montgomery, AL 36117 978-675-2028
Starkey Mortgage Lori Harris 8101 Seaton Place, Ste B Montgomery, AL 36116 334-213-2537
Moving Transfer & Storage First Klass Movers, LLC Bud York 2730 Bell Road Montgomery, AL 36117 334-277-6010
Newspapers
Pawn Shop
Community Newspaper Holdings, Inc.
Magic Pawn
Donna Barrett 445 Dexter Avenue, Ste 700 Montgomery, AL 36104 334-293-5800
Outdoor Supplies/Apparel Southern Trails
PhysiciansOccupational Medicine
Mickey Phillips 601 South Memorial Drive Prattville, AL 36067 334-361-1122
Southeastern Industrial & Family Medicine Associates Patsy Moretz 1600 Forest Avenue Montgomery, AL 36106 334-261-4445
Physical Therapists Montgomery East Physical Therapy
PhysiciansSpecialized
Forrest Carden 12 West Jefferson Street Montgomery, AL 36104 334-323-1300
Danny Sutter 499 St. Lukes Drive Montgomery, AL 36117 334-244-5892
Painter
PhysiciansFamily Practice
Marla H. Wohlman P.O. Box 589 Millbrook, AL 36054 334-285-7808
Dr. William D. Smith
(continued on page 72)
R B Painting Contractors’ LLC
Randy Brown 7406 Pinnacle Point Montgomery, AL 36117 334-430-1670
Marla H./Wohlman, MD
William D. Smith 1722 Pine Street, Ste 1002 Montgomery, AL 36106 334-263-4444
Get the Most for Your Travel Dollar From negotiating the lowest rates and fares to our personalized service, we work to ensure that your company yields the most value for every travel dollar spent.
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January 2012 Montgomery Business Journal
71
New Members (continued from page 71) Plumbing
Private Schools
Propane
Roto-Rooter
Montessori School at Hampstead
Dowdle Gas Company & Appliance Center
Jane Tierce P.O. Box 11685 Montgomery, AL 36111 334-272-7130
Betsy Hosp 5251 Hampstead High Street Unit 111 Montgomery, AL 36116 334-356-1969
Plumbing Equipment Smith Industries, Inc./Jay R. Smith Manufacturing Company
Holly Roth P.O. Box 3237 Montgomery, AL 36109-0237 334-277-8520
Project Management Hunt Military Communities-Maxwell Family Housing Chris Radliff 400 E. Maxwell Blvd Montgomery, AL 36113 334-262-1630 www.huntcompanies.com
Real EstateInvestments 3 Bridges, LLC
John Seele 8475 Selma Highway Montgomery, AL 36108 334-281-2750
Lee Hamilton 8244 Old Federal Road Montgomery, AL 36117 334-396-5719
Publishing Companies
Restaurant Consultants
Dees Communications
Montgomery Restaurant Partners
Allen Dees P.O. Box 931 Montgomery, AL 36101-0931 334-263-4436
Real Estate Sales and Development
Richard Younger 8228 Old Federal Road Montgomery, AL 36116 334-462-6456
Ryan Ridge Development Billy Johns P.O. Box 117 Mount Meigs, AL 36057 334-215-1977
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RestaurantsAmerican
Roofing Companies
Zaxby’s
Capitol City Roofing, LLC
Richard Conner 3130 Taylor Road Montgomery, AL 36116 334-481-0406
Alex Chanthavongsy 8123 Vaughn Road Montgomery, AL 36116 334-517-1179
Retail Shops/ Distribution Kinnucan’s
Bobby Lake P.O. Box 1029 Auburn, AL 36831 334-887-6189
Dawn Casey 221 North Eastern Boulevard Montgomery, AL 36116 334-244-2572
Robbie Pelt 1520 Ann Street Montgomery, AL 36107 334-277-3311
Restaurants-Thai Noodles Cafe
StorSafe Mini Warehouse
Surveying Burger & Associates, LLC
Integrity Roofing Specialist, LLC
Chuck Isbell 400 Eastern Boulevard Building 2, Ste 203 Montgomery, AL 36117 334-239-8715
Storage Atlanta Highway Mini Storage, LLC
Stone Equipment Company
Doug Stone P.O. Box 241585 Montgomery, AL 36124 334-430-8431
Jerry W. Burger 563 George Todd Drive Montgomery, AL 36117 334-274-0800
Truck Sales & Service
Tobacco Products-Retail
Jerry Kocan 3140 Hayneville Road Montgomery, AL 36108
Zelda Cigar
Veterinarians
Four Star Freightliner
Shells Hasley 2920-H Zelda Road Montgomery, AL 36106 334-279-5775
Yvonne Drawdy 3536 Atlanta Highway Montgomery, AL 36109 334-272-2220
Tractor/Trailer Sales & Repair
Willis Animal Clinic Edward Willis 3598 Mobile Highway Montgomery, AL 36108 334-281-9780
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73
RIBBON CUTTINGS & GROUND BREAKINGS
HERE WE GROW AGAIN
74
Inline Electric Supply Company, Inc. 520 North Eastern Boulevard Montgomery, AL 36117 334-279-9050 Jim Fulks-Operations Manager www.inlinelighting.com Lighting-Retail
Glitter Girls 562 Pine Level Lane Ramer, AL 36069 334-399-0634 Helen Hyden Holston-Owner Gifts & Specialty-Retail
Haroldâ&#x20AC;&#x2122;s Fine Jewelry 2801 Zelda Road Montgomery, AL 36106 334-273-0260 Harold Bowdoin-Owner Jewelers/Jewelry
Saigon Bistro 1060 Eastern Boulevard Montgomery, AL 36117 334-279-5921 David Mai-Owner Restaurants-Vietnamese
Cantina 130 Commerce Street, Suite 103 Montgomery, AL 36104 334-262-2339 Jorge& Alex Castro-Owners www.cantinabirmingham.com Restaurants-Mexican
Certified Technical Experts, Inc. 600 South Court Street Montgomery, AL 36104 334-792-1516 Eugene Tinker-CEO www.ctex-inc.com Consulting Services
Vaughn Urgent Care 9540 Wynlakes Place Montgomery, AL 36117 334-395-9933 Dr. Thang An & Dr. Namburu-Owners www.vaughnurgentcare.com Physicians
Studio 4619 Salon 8073 EastChase Parkway Montgomery, AL 36117 334-271-3778 Steven Leonard-Owner Beauty Salons/Spas
Stone Martin Builders 404 South Eighth Street Opelika, AL 36801 334-742-8050 Mitchell Martin-Owner www.stonemartinbuilders.com Builders-Residential
The Egg & I 2920 Zelda Road, Suite Montgomery, AL 36106 334-277-0802 Bobby McGuirk-Regional Manager Jasen Delchamps- General Manager www.theeggandirestaurants.com Restaurants
Barbara Bonds REAL Estate, LLC 7051 Fain Park Drive, Suite 200 Montgomery, AL 36117 334-201-1234 Barbara Bonds-Owner www.BarbaraBondsRealEstate.com Real Estate Sales & Development
Montgomery Business Journal January 2012
Economic Intel
Unemployment Data Civilian Labor Force
Unemployment Rate
Area
October p 2011
September r 2011
October r 2010
October p 2011
September r 2011
October r 2010
Montgomery MA
168,392
168,382
166,846
8.90%
9.80%
8.80%
Autauga County
24,203
24,224
24,000
7.80%
8.80%
7.80%
Prattville City
15,736
15,755
15,623
6.60%
7.60%
6.70%
Elmore County
35,816
35,825
35,529
8.00%
8.90%
8.00%
Lowndes County
4,713
4,724
4,614
15.70%
16.70%
14.60%
103,658
103,608
102,704
9.20%
10.00%
9.10%
93,681
93,594
92,722
9.00%
9.80%
8.80%
522,187
523,841
514,801
8.00%
8.90%
8.50%
96,765
97,100
95,574
10.20%
11.10%
10.90%
210,742
210,985
206,606
7.40%
8.10%
7.10%
92,656
92,765
90,864
7.40%
8.10%
7.10%
190,108
190,983
186,188
10.00%
10.80%
9.60%
88,721
89,144
86,640
10.50%
11.40%
9.90%
2,158,581
2,161,028
2,121,714
8.70%
9.60%
8.90%
154,088,000
154,022,000
153,652,000
8.50%
8.80%
9.00%
Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States
MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2010 benchmark.
January 2012 Montgomery Business Journal
75
Montgomery Metro Market Home Sales OCTOBER 2011
SEPTEMBER 2011
Month/Month % Change
OCTOBER 2010
Year/Year % Change
Statewide OCTOBER 2011
Median Price
$127,500
$126,200
1.03%
$119,750
6.47%
$115,829
Average Price
$145,521
$150,309
-3.19%
$139,698
4.17%
$137,970
Units Listed
2828
2899
-2.45%
3185
-11.21%
35,228
Months of Supply
12.2
12.3
-0.81%
15.9
-23.27%
11.9
Total # Sales
232
235
-1.28%
200
16.00%
2,968
Days on Market
101
99
2.02%
102
-0.98%
166
Source: Alabama Center for Real Estate (ACRE), The University of Alabama
Montgomery Building Starts Building Permits OCTOBER 2011
SEPTEMBER 2011
Building Valuations OCTOBER 2010
OCTOBER 2011
SEPTEMBER 2011
OCTOBER 2010
New Construction
42
14
23
$3,029,000
$1,812,000
$17,311,600
Additions and AlterationsÂ
72
64
90
$8,030,200
$2,831,600
$3,317,308
Others
31
45
33
$242,400
$303,000
$253,400
145
123
146
$11,301,600
$4,946,600
$20,882,308
Total Source: City of Montgomery Building Department
Montgomery Regional Airport NOVEMBER 2011 Air Carrier Operations
NOVEMBER 2010
YTD 2011
YTD 2010
Year over Year % Change
979
987
-0.8%
10,857
11,601
-6.4%
4,564
4,869
-6.3%
58,116
63,963
-9.1%
Enplanements
15,634
15,632
0.0%
169,785
172,752
-1.7%
Deplanements
15,630
15,394
1.5%
168,712
171,833
-1.8%
Total Passengers
31,264
31,026
0.8%
338,497
344,585
-1.8%
Total Operations
Source: Montgomery Regional Airport (MGM) Dannelly Field
76
Year over Year % Change
Montgomery Business Journal January 2012
Airline Fares
Hyundai Sales
Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. Destination
Montgomery
Birmingham
VEHICLE
NOV 2011
NOV 2010
YTD 2011
YTD 2010
Accent
4,682
4,052
50,285
49,191
Atlanta
Sonata
15,668
14,031
208,621
180,659
12,414
8,631
173,336
119,150
6,129
6,967
69,309
71,396
58
248
1,506
2,889
Baltimore (BWI)
$358
$302
$234
Elantra
Boston (BOS)
$302
$302
$262
Santa Fe
Charlotte, NC (CLT)
$162
$162
$232
Azera
Chicago (ORD)
$354
$262
$284
Tucson
4,101
3,042
42,774
35,553
Cincinnati (CVG)
$338
$278
$282
Veloster
2,538
N/A
7,096
N/A
Dallas/Ft Worth (DFW)
$270
$250
$198
Veracruz
1,018
747
8,603
7,889
Denver (DEN)
$369
$254
$308
Detroit (DTW)
$442
$364
$218
Genesis
2,702
3,005
30,528
26,699
Houston (HOU)
$354
$278
$328
300
0
2,868
0
Indianapolis (IND)
$361
$364
$242
49,610
40,723
594,926
493,426
Las Vegas (LAS)
$464
$325
$386
Los Angeles (LAX)
$389
$336
$301
Memphis (MEM)
$269
$328
$252
Miami (MIA)
$334
$242
$142
Nashville (BNA)
$246
$146
$322
New Orleans (MSY)
$284
$182
$212
New York (JFK)
$355
$226
$318
Orlando (MCO)
$366
$224
$242
Philadelphia (PHL)
$305
$205
$328
Pittsburgh (PIT)
$364
$308
$212
St Louis (STL)
$220
$168
$246
Seattle (SEA)
$380
$338
$300
$1,612
$1,143
$1,086
Tampa (TPA)
$360
$222
$242
Washington DC (DCA)
$370
$320
$268
Seoul, Korea (SEL)
Equus Total
Source: Hyundai Motor America
Date of travel: Jan. 17-22, 2012. Date of pricing: Dec. 4, 2011. Source: travelocity.com
Sales Tax Collections NOVEMBER 2011 NOVEMBER 2010
Year over Year % Change
YTD 2011
YTD 2010
Year over Year % Change
Montgomery County
$2,992,828
$2,940,315
1.79%
$35,073,999
$34,441,536
1.84%
City of Montgomery
$6,753,063
$6,658,859
1.41%
$80,875,646
$79,576,484
1.63%
Pike Road
$135,533
$153,699
-11.82%
$1,470,496
$1,694,680
-13.23%
Autauga County
$569,544
$541,994
5.08%
$6,486,138
$6,439,264
0.73%
$1,471,822
$1,063,723
38.37%
$15,356,712
$12,902,442
19.02%
Elmore County
$407,650
$391,047
4.25%
$4,255,927
$5,978,683
-28.81%
Wetumpka
$429,112
$427,943
0.27%
$4,955,701
$4,937,315
0.37%
Prattville
Millbrook* Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook. Note: YTD numbers are January 2010 thru current month. * Did not receive this months numbers.
January 2012 Montgomery Business Journal
77
Quarterly Reports QUARTERLY REVENUES
NET INCOME
EARNINGS PER SHARE
EARNINGS ESTIMATE
YEAR-AGO REVENUES
YEAR-AGO NET INCOME
Wells Fargo
$19.6B
$4.1B
$0.72
$0.73
N/A
$3.3B
Profit increased 21%
McDonald’s
$7.2B
$1.5B
$1.45
$1.43
$6.3B
$1.4B
Nine straight quarters of increased earnings
$3B
$464M
$0.43
$0.43
N/A
$414M
Profit rose 19%
$206.2M
$2.1M
$0.14
$0.22
$194.8M
(-$4.2M)
Revenue up 5.9%
$278.9M
Revenue in stores open at least 1 year increased 9%
NAME
CSX Red Robin Starbucks CVS Caremark
$358.5M
$0.47
$0.36
N/A
$26.7B
$866M
$0.65
$0.67
$23.7B
$809M
O’Charley’s
$186.6M
(-$4M)
(-$0.19)
N/A
$188.6M
(-$7.4M)
Revenue rose 12% Comparable sales declined 0.9%
Hhgregg
$618.6M
$6M
$0.16
$0.06
$480.9M
$3.9M
Opened 24 stores in the quarter
Wal-Mart
$109.5B
$3.3B
$0.97
$0.98
$101.2B
$3.4B
Revenue up 8.2%
Lowe’s
$11.9B
$225M
$0.18
$0.33
$11.6B
$404M
Profit declined 44%
J.C. Penney
$4B
(-$143M)
(-$0.67)
$0.08
$4.2B
$44M
$179M in costs for early retirement program
Home Depot
$17.3B
$934M
$0.60
$0.59
$16.6B
$834M
Revenue increased on storm-related repairs
TJX Companies
$5.8B
$406.5M
$1.06
$1.05
$5.5B
$372.3M
Dick’s Sporting Goods
$1.2B
$41.5M
$0.33
$0.26
$1.1B
$16.9M
Profit more than doubled
$535M
Revenue at stores open at least 1 year rose 4.3%
Target Sally Beauty
$16.1B
$555M
$0.82
$0.74
$15.2B
Sales rose 5%
$837.2M
$54.4M
$0.29
$0.27
$747.8M
$42M
Profit increased 29%
Abercrombie & Fitch
$1.1B
$50.9M
$0.57
$0.71
$885.8M
$50M
Sales up 21%
Sears Holdings
$9.6B
(-$421M)
(-$3.95)
(-$2.29)
$9.7B
(-$218M)
$258.5M
(-$1.8M)
(-$0.04)
(-$0.01)
$267.9M
$4.3M
$2B
$144M
$1.26
$1.24
$1.9B
$121.4M
(Victoria’s Secret, Bath and Body Works)
$2.2B
$94.3M
$0.31
$0.24
$2B
$61.3M
Dollar Tree
$1.6B
$104.5M
$0.87
$0.83
$1.4B
$93.2M
Sales up 11.9%
Stein Mart Ross Stores Limited Brands
Sears Canada’s comparable store sales fell 7.8% Loss blamed on increased markdowns, higher borrowing costs Revenue rose 10% Profit increased 22%
$2B
$53.9M
$0.39
$0.39
$1.9B
$54.7M
New video game software revenue rose 4.8%
Williams-Sonoma
$867.2M
$43.4M
$0.41
$0.38
$815.5M
$36.5M
Profit up 19%
The Buckle
$273.4M
$38.3M
$0.81
$0.80
$243.3M
$34.4M
Revenue at stores open at least 1 year rose 9.1%
Hot Topic
$175.8M
$3.1M
$0.07
$0.08
$183.2M
$400,000
Revenue declined 4%
PetSmart
$1.5B
$56.2M
$0.50
$0.48
$1.4B
$45.6M
Profit rose nearly 22%
Big Lots
$1.1B
$4.2M
$0.06
$0.08
$1B
$17.7M
Profit decline due to acquiring Canada operations
Ulta Beauty
$413.1M
$26.8M
$0.42
$0.38
$339.2M
$14.2M
Revenue up 22%
Rue21
$194.8M
$8.7M
$0.29
$0.33
$163.9M
$7.1M
Opened 30 stores in the quarter
Aeropostale
$596.5M
$24.1M
$0.30
$0.27
$602.8M
$58.5M
Profit fell nearly 60%
Jos. A Bank Clothiers
$209.6M
$15M
$0.54
$0.51
$173.3M
$12.6M
Profit increased 19.3%
Cracker Barrel
$598.4M
$23.8M
$1.03
N/A
$598.3M
$23.7M
Sales, profit flat
Zale Corp.
$351M
(-$31.9M)
(-$0.99)
(-$1.58)
$327M
(-$97.9M)
Kirkland’s
$97.1M
$1.2M
$0.06
$0.03
$92.7M
$2.3M
Profit declined 48%
Hibbett Sports
$185.2M
$16M
$0.59
$0.51
$167.4M
$12.6M
Profit surged 27%
$1.4B
$66M
$0.43
$0.39
$1.3B
$52M
Sales at stores open at least 1 year increased 7.4%
GameStop
Foot Locker
78
$3B
NOTABLE
Sales rose 7%
Cato
$194.1M
$6.1M
$0.21
N/A
$198.2M
$5.9M
Profit up 4%
Ann
$564M
$32.3M
$0.61
$0.57
$505.3M
$24.2M
Sales at Loft chain rose 19%
Gap
$3.6B
$193M
$0.38
$0.36
$3.7B
$303M
Profit declined 36%
Montgomery Business Journal January 2012
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