Montgomery Business Journal – November December 2015

DIALING INTO THE WORLD OF YOUNG PROFESSIONALS PAGE 10

WORKFORCE DEVELOPMENT PAGE 16

TALKING MONEY PAGE 32

ON THE VERGE OF

GREATNESS

MONTGOMERY MAYOR TODD STRANGE ON HIS NEXT TERM AND THE NEXT LEVEL FOR THE CAPITAL OF DREAMS PAGE 40

CONTENTS 54

50

NOV/DEC 2015

33rd Annual River Region Economic Summit

Saturday Afternoon Outing 16 Guest 32 Commentary

32 40

MEMBER NEWS 28 Member Profile: Alabama Ag Credit 36 Chamber Notebook

CHAMBER NEWS 06 Calendar 62 Reporter’s Notebook 67 Business Buzz 70 Members on the Move 73 Ribbon Cuttings & Ground Breakings 74 New Members 75 Economic Intel

FEATURES 10 MILLENNIAL MASTERMIND Q&A with Clay McInnis 16 TRAINING ON DEMAND AIDT will continue to offer soft skills and manufacturing fundamentals courses 22 SOMETHING MEMORABLE New Reinhardt Motors facility wows customers 30 TRANSFORMATION Air University reveals strategic plan 32 HOW TO DRIVE YOUR PORTFOLIO HIGHER Guest Commentary by Irby J. Thompson and Chris Driver from Warren Averett Asset Management

34 SAVVY INVESTORS NEED TO STAY THE COURSE Guest Commentary by David Roda from Wells Fargo Private Bank 40 MONTGOMERY ON THE VERGE OF GREATNESS Mayor Todd Strange discusses his dream for Montgomery 50 SATURDAY AFTERNOON OUTING Earlier start time turns the Raycom Media Camellia Bowl into a family event 54 REMARKABLY STRONG The 2015 River Region Economic Summit

November/December 2015 montgomerybusinessjournal.com

3

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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 7, Issue 9.

Referred for a reason.

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Montgomery Business Journal November/December 2015

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.

DAY 11 VETERANS PARADE RECEPTION Presenting Sponsor: City of Montgomery Invitation-only reception

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Montgomery Business Journal November/December 2015

BUSINESS 18 DOING WITH THE GOVERNMENT

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CHAMBER NEWS

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7 BUSINESS PLANNING SEMINAR Sponsored by BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 South Court Street, Montgomery $10 at the door

BUSINESS TAX SEMINAR 8 AM @ Renaissance Montgomery Hotel and Spa at the Convention Center 201 Tallapoosa Street, Montgomery $80 Chamber Members $100 Nonmembers

BUSINESS AFTER HOURS

8 The Montgomery Chamber Event Calendar is at montgomerychamber.com/events

143RD ANNUAL MEETING

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21 BUSINESS PLANNING SEMINAR Sponsored by BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 South Court Street, Montgomery $10 at the door

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Montgomery Business Journal November/December 2015

Clay McInnis, owner of Commerce Consulting, is also executive director of the Montgomery chapter of Angel Investor Management Group and the president of the Downtown Business Association. He was recently interviewed by the Montgomery Business Journal’s David Zaslawsky.

Q&A 10

MILLENNIAL MASTERMIND

Montgomery Business Journal November/December 2015

What’s the impact of the Gumption Fund?

This Gumption Fund – this Gumption brand – has had a ripple effect on quality of place throughout the city.

In August, the American Advertising Federation had a printer matters downtown workshop. The Gumption Fund is $24,000 a year, but the impact that it has is well beyond (the money). It’s the seed that’s being planted and you’re empowering those that may say to themselves, “Maybe I can’t. Maybe I shouldn’t. Maybe I don’t have the right tools.” Once they execute they are part of this community. They are part of this Gumption community. That’s really what we’re going for. n

Montgomery Business Journal: I know you wear multiple hats. Please talk about your role as president of the Downtown Business Association, and what does the organization do?

McInnis: I serve as volunteer president of the Downtown Business Association and what we have become is a group of businesses that advocate for quality of life downtown. We’re positioned to communicate, facilitate, collaborate and aggregate the efforts of downtown, whether that’s through businesses; whether that is through the Chamber (Montgomery Area Chamber of Commerce); whether that is through the city – it could be various different channels – but what we try to do is bolster the quality of life. n

What are some of the things that the association has accomplished? n This year we have introduced a fund called the Gumption Fund, which consists of 20 trustees (people) to commit $100 a month for a year. We grant $2,000 a month for good ideas to improve the City of Montgomery with a focus on downtown. It’s been tremendously successful.

How does someone seek a grant? n Our application process is pretty simple. We accept applications and we average around 10 to 12 applications. We email them for a democratic vote of the trustees and then we grant the money and make sure that those projects get done.

What projects have been funded? n In January, we did the mural on AL.com. In February, we (had) the Peace Within Trail app and website. In March, we had Lemonade Day, which was a day to teach at-risk youth entrepreneurial skills. April was Gumption Park improvements – capital improvements in partnership with the city at the incubator spaces.

May was the Foomatic space up on Cottage Hill. They worked on a science bus. It’s basically a rolling science lab for public schools and also Weird Montgomery newsletter. In June, (a grant was leveraged from $2,000 to $4,000) for more bike racks downtown. In July, the Gumptioneers summer internships program we hosted here at Stamp. It was a four-week program, where we brought in leaders for graphic designer interns at Stamp. They started six different programs.

How long have you been president of the Downtown Business Association? n I’ve been president a little over a year and a half. We have grown the organization from about 12 members (to) a little over 130 members. It’s only $99 to join.

It’s really just a conduit and a platform. We have meetings every other month – big member meetings.

It’s basically like a town hall, but what we did with this Gumption Fund is, we created a system; we created a program that can live on hopefully and send out ripple effects. We can point to a lot of these programs that we empower to help bolster downtown and the quality of place without us really getting too involved on a bigger level.

Talk about your Commerce Consulting company. n I’m working with the Chamber this year on quality of place on Goal III (of the Imagine a Greater Montgomery II strategy, which is “Transform Montgomery’s Image and Quality of Place.”) That’s been a blessing and a great opportunity and we’ve gotten a lot of deliverables to the table. The programs that we’re doing touch on Goal I (“Champion Education and Develop Competitive Regional Talent”); Goal II (“Strengthen and Diversify the Regional Economy”); Goal III; and a little of Goal IV (“Embrace Diversity and Build Leadership Capacity”) in the Imagine a Greater Montgomery II strategy.

What are some of your accomplishments in this arena? n It’s really, really about bolstering the quality of place and that incorporates downtown, but also incorporates a few other things. It incorporates really understanding our IT (information technology) assets; our cyber assets; our soft assets that we can leverage going forward as far as economic development. If you look at

Continued on page 12

November/December 2015 montgomerybusinessjournal.com

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Continued from page 11

Montgomery over the last 150 years, the economy has shifted from the river to the railroad to the interstate to the device. That’s not an uncommon thing for most American cities. I’m a millennial and half the workforce in five years will be millennials. Our priorities and the way we work and how we work and why we work in the first place (are) completely different than what we see today. Part of this year has been identifying strategies to incorporate that as well as coming up with a program like connectmgm.

What is connectmgm? n It’s my idea of an interactive website to point people who just moved into town, or younger people, to groups and organizations. It’s kind of like the Yelp of soft assets in the community. My goal is that you click on connectmgm and then you click on each category based on your interests. This is just simply a resource connector.

half the working force in five years will be millennials.

What does that look like for us being competitive not only regionally, but nationally in recruiting and retaining young talent?

I see that you’re executive director of the AIM (Angel Investor Management) Group in Montgomery. Please talk about that. n Even though I wear several different hats, they all connect – there’s a common denominator. Statewide we have 225 accredited investors – high-net individuals.

They get together once a month and see a high-tech startup that’s based somewhere in the Southeast or the rest of the country and we (decide whether to) invest in that company. We have invested in over 27 companies so far and I’m basically a bird dog for startup companies not only in Alabama, but particularly Montgomery. There have been five or six trying to go through the program.

There are a ton of opportunities in Montgomery. It’s about raising awareness of those opportunities and empowering those to seek it out and to seize those opportunities.

This is a quality-of-life builder because you’re taking resources and assets and aligning those with people wanting to do things. We’re trying really hard to get a downtown Wi-Fi network that connects people.

Isn’t that available right now? n No, we don’t (have one); not one that works. What we’re looking for is a robust, downtown Wi-Fi network because millennials and tourists … want connectivity, but there’s a deeper level of connectivity that happens downtown. We’re looking for digital connectivity, but we’re also looking for community connectivity.

Things to go to and things to see?

Exactly. That strikes to the core of the millennials and innovation strategy going forward. When you look at Montgomery, we’re actually well positioned for the future because we have a low cost of living. We are 10.4 percent below the national average cost of living and we’re adding assets – especially downtown. We’re adding community assets. We’re adding IT assets.

We’re levering economic assets that we have to position ourselves, plus I don’t see us running out of water in the foreseeable future and other parts of the country are unfortunately. We’re cheap; we’re strategically placed; n

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Montgomery Business Journal November/December 2015

- Clay McInnis

Did any of the Montgomery-based firms receive funding? n They haven’t yet. We have a very high standard for a return on investment for the investors. These Montgomery companies are really great companies, but we get 40 applications throughout the Southeast so it’s a very, very competitive process. The value of the network is the due diligence. The risk is dissipated through 225 investors and your threshold to invest is a lot lower. It’s risky, but our members really like it.

How many members are in the Montgomery chapter?

It has grown exponentially. We have a little over 30.

My goal is 40 to 45 for the Montgomery chapter, which I think is attainable. n

As executive director, do you recruit members? n Yes. I identify potential members and meet with them.

I organize the meetings locally and help administratively on due diligence efforts.

Continued on page 14

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You earlier said you’re a millennial. How old are you?

“...our future in Montgomery is how well we connect people with people and how we connect people to the future economy.”

- Clay McInnis

n I just turned 29. The millennials, I believe, are born from 1981 to 2000. I am the last generation that did not know what is was like to be on social media when I was growing up. Also, I am the last age group within the millennials not to have my brain already programmed in some kind of operating system environment like a phone or an iPad or a laptop. Within the generation there are huge canyons of differences and that’s not uncommon with a lot of generations. But the speed in which innovation is happening is happening at a very rapid pace. Where there are problems there are opportunities, and what does that look like for Montgomery and what does that look like for our economy? When we talk about the future, a lot of my peers growing up have moved on to different cities.

Well, there is a lot of opportunity in Montgomery.

There are a ton of opportunities in Montgomery. It’s about raising awareness of those opportunities and empowering those to seek it out and to seize those opportunities because retaining and recruitment of young talent and startup companies and innovation (are) going to be a huge economic strategy going forward. I think we are being intentional about taking steps to do that.

What makes Montgomery such a great place to live, work and play for young professionals? n First of all our downtown is growing and we’re starting to see the density of not only activities, but also communities within the built environment. Two, the 10.4 percent-below-the-national-average cost of living is a benefit – that’s an asset that a lot of people don’t talk about. I think a lot of people say that it’s the biggest small town that they have ever seen, and where there are opportunities there are a lot of people rooting and cheering on people that are champions for their specific cause; for their specific project. We are a community that gets behind people that want to champion their passions in something. As we grow our built environment downtown – as we grow our soft assets and our communities – as we are able to identify those communities and connect people to people and people to organizations – you’re going to start seeing a flywheel effect happen.

What do you mean by “built environment?” n Basically, the hard assets. Lofts. We had zero residential units prior to 2004. We’ll have over 525 (downtown) by the first quarter of 2016.

The number of restaurants since 2004 probably doubled or tripled.

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Montgomery Business Journal November/December 2015

Probably quadrupled. There were only two restaurants with lights on after 5 o’clock in 2004 in the Entertainment District – Lek’s and the Brew Pub. When you add the residential component on top of that, you really have a community. n

Everything I’ve read is that downtown is a critical draw for millennials. Why is downtown so important for millennials? n Downtown is so important because of the priorities of millennials. Connectivity. The common denominator of the millennials is connectivity. You see it every day on social media. You see it on Snapchat. You see it on Twitter. You see it on Instagram. There is a digital connectivity and there is a physical connectivity. As we’ve seen the economy shift from the river to the railroad to the interstate to the device, there are specific themes that go along with that.

What are those themes? n You’ve got the goods – farm, factory and cubicle device, but the interstate represented sprawl and the interstate represented separation from what was a concentrated community downtown. The millennials somewhat grew up in that. The opposite of that is connectivity. The opposite of that is intentional communities. The opposite of that is placing quality of life above material trappings. We (millennials) came up in a complete economic meltdown. We grew up in the suburbs and there are a lot of psychological components with that. We want connectivity. We absolutely want connectivity.

And downtown can give you that connectivity. n That’s right. With the devices and the built environment, then you have connectivity in both themes and that’s what we strive for.

That’s the key to recruiting and retaining young professionals.

Yes, 100 percent. That’s our future. I want to go out on a limb and say our future in Montgomery is how well we connect people with people and how we connect people to the future economy. The economy is going to look different, so how we position ourselves is really important. We’re working on some really big changes in the IT infrastructure. That’s a big deal. There is something very attractive with connecting mid-market cities. When you have a robust infrastructure and you’re able to connect Chattanooga to Nashville to Huntsville to Birmingham to Montgomery to Mobile to Auburn to Atlanta to Charlotte – that is a big deal. When you add manufacturing on top of that and you add natural resources on top of that and you add a low cost of living on top of that, I see the Southeast – specifically Montgomery because we’re right in the middle of that – (prospering). n n

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Simply put, if a company has a workforce-related issue, the Alabama Industrial Development Training program will step in and do what is necessary.

Ed Castile is director of AIDT and Deputy Commerce Secretary.

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Montgomery Business Journal November/December 2015

TRAINING ON DEMAND

by David Zaslawsky photography by Robert Fouts

AIDT will continue to offer essential skills and manufacturing fundamentals courses

November/December 2015 montgomerybusinessjournal.com

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Yes, it’s that simple. All a company needs to do is contact AIDT and watch the agency respond. “Our objective, and it’s always the same for AIDT, is if a company says there is a need, our job is to solve it when it comes to their workforce,” AIDT Director Ed Castile said.

“We just would love to see more (people) and I think over time we’ll get there.”

-Ed Castile, director of AIDT and deputy commerce secretary

And there is no charge to the company nearly all the time. If AIDT does not have the expertise to solve the workforce issue, then the agency would hire an instructor and the company would pay that cost divided by the number of participants. There is some current training going on that does include a $15 charge for lunch. If a college is involved in the training, there will be costs, but the schools are “committed to make that as reasonable and as palatable as they can for the companies,” Castile said. He said that 90 percent of the current training is at no cost because AIDT is able to conduct it.

“We can set these things up all day long and if nobody is coming, it doesn’t do us any good,” Castile said, about current training programs. “We’ve got to fix it so it’s OK for (companies) to send people.”

That’s why the frequently requested soft skills training sessions in conjunction with the Montgomery Area Chamber of Commerce are six, four-hour modules to make it easier on smaller companies to send employees for training. That training is held at the Montgomery Chamber Business Resource Center.

Soft skills training includes sessions on communicating with co-workers, supervisors and customers; remaining calm under pressure; problem solving; how to build your team; educating team leaders, supervisors and managers; communication skills; and teamwork and motivation techniques.

Another current training program under way is manufacturing fundamentals, a six-week course. Each week consists of 40 hours and participants must pass the first two weeks to continue. The first week includes sessions on math and conversions, computer, precision measurement and blueprint reading. Week two includes sessions on OSHA (Occupational Safety and Health Administration), forklift, overhead crane and arc flash.

Weeks three through six can vary in order and can be substituted, but now are basic electricity, basic welding, basic programmable logic controllers (hard drives for robotics) and basic robotics.

Remember that companies came to AIDT and requested training in those areas and that training will continue next year, Castile said. For now the program is just for employees, but will be expanded at some point to include non-employees, he said.

Castile would like to see greater participation in the training programs, but understands that issues come up at work. There are 10 to 12 people who sign up for a class, but fewer show up. AIDT will not cancel the class even if just six or seven people show up.

“Good sense might tell you that you should (cancel),” Castile said. “At the end of the day my goal is, ‘By golly, we’re going to do this training because that’s what you said and you told us that’s what you need.’ We need you to send people. We just would love to see more (people) and I think over time we’ll get there.”

He said that there is a perception problem of AIDT not conducting the training programs it said it would. “The perception is wrong,” Castile said. “Again, people have to understand we are going to do it. We are delivering and there is a multitude of partners that can deliver.

We’ll just see where it all goes.”

When asked about new programs for next year, Castile responded: “Whatever they (company officials) tell us.” n

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Montgomery Business Journal November/December 2015

TRAINING ON DEMAND

TURNING UP THE VOLUME ON PROGRAMS “We don’t start a program unless we’ve done a survey to find out that there is a need.”

Sam Munnerlyn, president, H. Councill Trenholm State Community College

Sam Munnerlyn

Now that H. Councill Trenholm State Community College has shed “Technical” from its former name there has been a major impact not only on the current fall semester, but the fall 2016 semester as well.

One new program that will be introduced is respiratory therapy. The medical community told Trenholm officials that there is shortage of respiratory therapists not only in the River Region, but surrounding areas. “We don’t start a program unless we’ve done a survey to find out that there is a need,” Munnerlyn said.

With its accreditation, Trenholm can begin to offer the two-year Associate of Art (AA) degrees and Associate of Science (AS) degrees, but must expand its course offerings next fall. The college currently offers typical general education courses that are required of freshmen such as English, math, psychology, physiology, anatomy, biology, music and computer classes.

In fall 2016, courses in history, speech, physics and perhaps chemistry will be added. Those classes are necessary for students to complete their twoyear degree, but Trenholm plans to introduce new programs as well. Those are still to be determined, but could be pre-engineering or pre-nursing, according to Trenholm President Sam Munnerlyn. To complete the AA or AS degree in pre-engineering or pre-nursing or veterinarian science, students would need to fulfill their general education requirements and take courses in their selected field. Those degrees require 60 credit hours, which are transferrable to all colleges and universities in the state.

“What we’re trying to do is make these courses more (attractive) to people and that’s why pre-engineering and the prefix is so important,” Munnerlyn said. “If we say we’re offering pre-engineering that sounds better than just general education. We say we offer pre-engineering and that means that you can come and take those first two years here and transfer (the credits) to Auburn for their engineering program.

That means that you took all your general education courses here.”

Baptist Health is working with Trenholm on the respiratory therapy program. The two organizations have worked in the past to bring a sonography program and a radiology program to Trenholm.

It will take about two years for students to graduate with a respiratory therapy degree and the median national salary is $56,000. Students will also need to pass an exam to receive their license. The duties of a respiratory therapist include monitoring, measuring and administering oxygen therapy at both in-patient and out-patient facilities and monitoring all the respiratory equipment at a hospital.

For Trenholm, adding general education courses is much cheaper than buying equipment for a technical program, as the requirements are an instructor, classroom and what the instructor needs.

“The equipment costs an astronomical amount of money, so you don’t get a lot of bang for your buck,” Munnerlyn said.

Trenholm is bringing back its barbering program as part of its cosmetology program, Munnerlyn said. The college does have a barbering class, but is expanding it into a program. He said the school stopped offering the program a few years ago, but “now we are finding from our different surveys it’s something we need to do again.”

A new short-term certificate for a pharmacy technician will be introduced in the spring and a student may attend Trenholm for six months to get the certificate, Munnerlyn said. n

November/December 2015 montgomerybusinessjournal.com

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TRAINING ON DEMAND

NEW HOME FOR MONTGOMERY REGIONAL WORKFORCE TRAINING CENTER

by David Zaslawsky

photography by Robert Fouts

AIDT will have space inside the Montgomery Preparatory Academy for Career Technologies (MPACT) in fall 2016 when the school opens at One Center.

The agency will have a shop/lab area, classroom and office area, according to AIDT Director Ed Castile, who is also the Deputy Commerce Secretary in charge of the Workforce Development Division. The Alabama Technology Network (ATN) will also have space inside the school and the two will share space, Castile said.

“We will be shoulder-to-shoulder with ATN, trying to work with businesses in the area,” Castile said.

AIDT’s space is actually the Montgomery Regional Workforce Training Center, whose partners include Montgomery Area Chamber of Commerce, Alabama Community College System, Region 7 Workforce Council as well as ATN, Montgomery Public Schools and Auburn University at Montgomery.

The renovation cost for AIDT’s space will be less than $500,000 and Castile said that it should be in the $300,000 to $400,000 range. “It is a great investment for us to what we think we’ll get out of working with MPS (Montgomery Public Schools) students – helping them find their career paths,” Castile said.

“We will be

“Being able to work and line things up with MPS is really why we are over there,” Castile said from his office, which is across the street from MPACT.

ATN, trying

The school will be able to use AIDT equipment from 8 a.m.-3 p.m. and after the school day, AIDT will be able to use the school’s equipment. He said that AIDT “was in lockstep” with school officials.

businesses in

AIDT will offer a high-level, industrial maintenance program at the Montgomery Regional Workforce Training Center, according to Castile. He said it will enhance the program at H. Councill Trenholm State Community College, which is next door to AIDT. The AIDT program “will be more industry specific maintenance training,” Castile said.

Once AIDT is set up inside MPACT, the agency will ask companies what they need. “Let’s nail down exactly what we’re missing in the people that you have currently and what you want to see in the future and then we are going to focus specifically on those areas,” Castile said. n

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Montgomery Business Journal November/December 2015

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-Ed Castile, director of AIDT and deputy commerce secretary

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SOMETHING MEMOR ABLE New Reinhardt Motors facility wows customers

by David Zaslawsky photagraphy by Robert Fouts

Mike Reinhardt is president of Reinhardt Motors and general manager of the Lexus dealership.

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Montgomery Business Journal November/December 2015

Some people come out of the restrooms at the Toyota/ Scion and Lexus dealerships with wet hands and complain about the lack of paper towels.

The restrooms have a Dyson dryer and depending on where you place your hands you will either continue to put water on them or dry them off. Those Dyson dryers were meant as a wow element, according to Mike Reinhardt, president of Reinhardt Motors, which owns the dealerships and is general manager of the Lexus store. “We were trying to pick out something that would differentiate us,” he said.

He said that some customers don’t realize they are helping the environment. “They come in with wet hands and say, ‘Are you so cheap that you didn’t want to put paper (towels) in there?’ ”

He also has heard from customers sitting in the café/ lounge, which doubles as a waiting area for customers having their cars serviced. By the way, there is a fireplace in the lounge.

The fireplace was another wow – “something to be memorable,” Reinhardt said. For some customers, however, they have complained about the cost of repairs because so much money was spent on the waiting areas.

Continued on page 24

“We hope it continues the relationship that our family has had with the community.”

Mike Reinhardt, president of Reinhardt Motors

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30 23 November/December 2015 montgomerybusinessjournal.com

Continued from page 23

The owners of the sprawling, 83,000-square-foot facility for Lexus, Toyota and Scion spent a lot of their money. When told that the facility does not seem like a dealership other than vehicles in the showroom, Reinhardt asked: “Does it make you feel like we spent too much?”

Only he, his brother Ed and sisters Jamie Raley and Linda Wilson can answer that. He can answer how much was spent on the new facility and it will be around $20 million – nearly 20 percent more than estimated after adding a road, paving and an employee parking lot.

“Our customers love it,” Reinhardt said. “We were not so focused on (spending) … we’d love to make our payments.” He recalled that his father who built the previous facility “was trying to make sure that the notes were going to be paid.” That was not the case with the four siblings. His dad had said that “he didn’t feel like we had cut any place like he had. I certainly believe that we could have cut back. We could have reigned it in and we really didn’t. My brother and sisters were like: ‘How are we going to pay for all of this?’ Honestly, a lot of it is faith. We hope it continues the relationship that our family has had with the community.”

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24

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'D^͕ /ŶĐ͘ ƉƌŽǀŝĚĞƐ ƚƌĂĚŝƚŝŽŶĂů ƉƌŝŶƚ ĂŶĚ ĚŝƌĞĐƚ ŵĂŝů ƐƚƌĂƚĞŐŝĞƐ ĂůŽŶŐ ǁŝƚŚ ĞdžĐŝƚŝŶŐ ĚŝŐŝƚĂů ƐŽůƵƚŝŽŶƐ ŝŶĐůƵĚŝŶŐ ƉĞƌƐŽŶĂůŝnjĞĚ ƉƌŝŶƚ ĂŶĚ ĞŵĂŝů ĐĂŵƉĂŝŐŶƐ͘

Montgomery Business Journal November/December 2015

dĞůů ƵƐ ĂďŽƵƚ LJŽƵƌ ĐŚĂůůĞŶŐĞƐ ƚŽĚĂLJ͊

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A lot of it is selling a lot of vehicles and, of course, servicing them. The monthly sales goal, announced at the groundbreaking, was 350 vehicles and the three dealerships nearly achieved that in August with a total of 336 vehicles sold, including 131 pre-owned. Service revenue jumped 20 percent in August from the same period a year ago. Total revenue through August was $73 million, an increase of 10 percent from last year, but Reinhardt pointed out that the first two months of 2015 were very slow and of course there have been disruptions with opening a new facility. Adjustments were still being made to some of the equipment three months after the dealerships opened.

The service area features 40-plus bays, including six quick-service bays as well as wet detail and dry detail areas.

Reinhardt Motors has grown to 166 employees, including about 30 added for the new facility. The growth will continue as Reinhardt hopes to hire another 15 people. He is looking for five more salespeople – two for Lexus and three for Toyota – and technicians. n

November/December 2015 montgomerybusinessjournal.com

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SOMETING MEMORABLE

LEXUS, TOYOTA, SCION SHARE SAME BUILDING

by David Zaslawsky

Toyota very carefully – painstakingly – created the luxury brand Lexus and for the most part, kept it separate from Toyota. The automaker sought the upscale car buyer.

Now, right here in Montgomery, Reinhardt Motors opened a new facility in the summer and combined its Toyota and Lexus dealerships, not to mention its Scion dealership, which is located on the southernmost area of the building.

There are perhaps only two other locations in the country – Boston and Anchorage, Alaska, where Lexus and Toyota dealerships are located together.

Reinhardt Motors does have separate entrances for Lexus and Toyota; separate showrooms; and separate lounges/cafes. Yet, you can walk inside the facility and visit both showrooms.

“We’re the only store that (has) the shop in one continuous shop and the office is common,” said Mike Reinhardt, general manager of the Lexus dealership and president of Reinhardt Motors, which owns the dealerships.

There are plenty of common areas, including that hallway. They share a business office, parts department and service department. The technicians can handle work for Toyota, Scion and Lexus and any other vehicle although some are dedicated to Toyotas and some are dedicated to Lexus, Reinhardt said. Some techs prefer to work on pre-owned vehicles, he said. If you are wondering, there are more Toyota technicians because there are more Toyotas sold than Lexus vehicles.

When asked why the dealerships were combined, Reinhardt said, “It would obviously be easier if we ever wanted to sell off either store for them to be two separate stores. As a family we didn’t expect to do that.

We made the commitment that we would always be the

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Montgomery Business Journal November/December 2015

There are customers who now look at both Toyota and Lexus, according to Reinhardt, while the separate Toyota and Lexus sales staffs only get paid for selling vehicles from their dealership. For the first three months of the new facility there was not much movement from Toyota customers buying a Lexus or a Lexus customer buying a Toyota, Reinhardt said.

“I would say that we really don’t have a customer come in and say, ‘While I’m here I’ll just walk over next door and look at Lexus.’ ”

Mike Reinhardt is president of Reinhardt Motors and general manager of the Lexus dealership.

Toyota-Lexus dealer in Montgomery. For us, it made sense to build a common facility on a common piece of property.”

The dealerships have the type of vehicles that “fit every budget,” Reinhardt said. The Scion is for the younger customers; Toyota bridges the gap from the young to the upscale buyer. “We have to make sure as an automobile retailer in this community that (customers) know everything we have,” Reinhardt said. “There are different reasons for buying the cars.”

Although the vehicles are sold at the same facility, Lexus customers are treated differently than Toyota customers and that stems from the different training staffs receive. Toyota calls its training Toyota University and for Lexus it’s called Lexus College. The Lexus employees attend a senior master certified program that includes a heavy dose of personal development.

Lexus owners are made to feel special, Reinhardt said.

“They will feel differentiated. The waiting room for Lexus is much smaller. It’s more unique – specialized for our clients. The Toyota waiting area is much larger and we tried to bring it upscale, but it’s still not what you expect to find in the Lexus area.”

As a luxury car owner, you receive a loaner vehicle when your car is being repaired and your vehicle will be washed. There is a courtesy shuttle service for Toyota owners. n

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November/December 2015 montgomerybusinessjournal.com

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Member Profile

ALABAMA AG CREDIT Outperforming through a targeted market.

by David Zaslawsky

photography by Robert Fouts

It was during the lean years that what is now called Alabama Ag Credit not only survived, but thrived.

During the financial crisis in 2008-2010, Alabama Ag Credit made a decision to continue lending while other firms stopped. “We continued to build relationships and continued to finance loans that other people wouldn’t, and I don’t mean to imply a lender as last resort in any way,” said Doug Thiessen, president and CEO of Alabama Ag Credit.

He said that if the financial institution had decided to stop lending, “we’re out of business,” but instead, has “grown our business every single year.”

From 2010 to 2015, total loans have grown from $675.3 million to about $850 million. First of all, the firm, which has nine branches in Alabama in addition to its headquarters on the fourth floor of the Lakeview Center at EastChase, expanded its products in 2010.

Doug Thiessen is president and CEO of Alabama Ag Credit.

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Montgomery Business Journal November/December 2015

Growth prospects are excellent because new products were added just five years ago. “We believe our opportunity to grow in the pure agriculture space is very significant because we didn’t have any of that volume in 2010,” Thiessen said. “As we’re out aggressively talking to the agricultural producer, we believe that to be a market that can help us grow for many, many years.”

Thiessen said that it’s the employees who make the firm successful. “Everybody always says the greatest asset is your people – I agree with that,” Thiessen said, “but it’s more than that. It’s the right people and we have a culture here that people can passionately get behind what they do.

“Think of it this way: The people we help put food on our plates; clothes on our backs; shelter over our heads with timber; and even impact energy.

Those are the people we help. That’s an easy thing for employees to get passionately behind because it affects everybody one way or another.”

The organization, which is part of the nationwide Farm Credit system that is celebrating its 100th anniversary next year, has a focused mission as its name implies. Alabama Ag Credit loans money to farmers, ranchers, rural real estate buyers and rural homeowners. The list includes timber products and aquaculture. The Ag in the name is short for agriculture – it’s not short for attorney general, but some people do get confused.

“When we decided on our name, we wanted people to know that we’re headquartered in Alabama,” Thiessen said. “We’re from Alabama. Our board is from Alabama. At the same time, we needed (people) to know that we’re making ag loans, farm loans and land loans. We want people to know that’s who we are.”

That focused mission of lending to a select group sets Alabama Ag Credit apart from other financial institutions. Its borrowers are also required to become shareholders, which is what Thiessen called “a distinguishing factor.” Borrowers must either buy $1,000 worth of stock or 2 percent of their total

loan – whichever is less. “Therefore, when we make profits one of the key benefits for those stockholders is they get to share in those profits,” Thiessen said.

And those annual patronages have risen from $3 million in 2010 to $7 million-plus this year – an alltime high and about $1 million more than the 2014 total of $6.1 million.

The patronage is determined by the institution’s board of directors and reflects the average amount of borrowing for the year. Some of the borrowers have received tens of thousands of dollars, according to Thiessen. The more you borrow, the greater the patronage. “If you’re going to borrow that money from someone – and make sure you understand I am a big supporter of the financial industry – (our firm) will share profits with a borrower at the end of the year and other institutions won’t,” Thiessen said. “Why wouldn’t you leverage that?”

EMPLOYEES

He estimated that the $7 million-plus in patronages this year was the equivalent of a 1 percent reduction in borrowing costs.

TOTAL LOANS*

Those interest rates naturally vary by product, terms and individuals. A borrower may have a one-year variable-rate operating loan while someone else may have a 20-year fixed rate loan “or anything in between,” Thiessen said.

67 BRANCHES

9

ABOUT $850 MILLION *through the second quarter of 2015

2014 NET INCOME

$15.2 MILLION

Because Alabama Ag Credit only handles loans for farmers, ranchers as well as rural real estate borrowers, it has a knowledgeable staff and that makes a difference because they routinely deal with such loans. Thiessen said that a potential borrower “can talk to another lender that may be willing to make the loan, but the relationship down the road will be built upon the experiences and expertise of who they’re working with.”

The organization operates in 40 Alabama counties from as far north as Tuscaloosa to the Gulf Coast and has increased its presence by expanding its staff from 38 in 2007 to the current 67. n

November/December 2015 montgomerybusinessjournal.com

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Lt. Gen. Steven Kwast is president and commander of Air University at Maxwell Air Force Base.

“Once leaders recognize Air University as the thought leader on intellectual and leadership development, the prestige of the university and those who serve it will undoubtedly rise.”

– 2015 Air University Strategic Plan

Air University reveals strategic plan

by David Zaslawsky photography by Robert Fouts

The 2015 Air University Strategic Plan revealed five lines of operation that will enable the “intellectual and leadership center of the Air Force” to transform itself.

Those five lines of operation are: > Delivering the best training, education and leadership opportunities. > Making recommendations that address Air Force and national security issues using research and analysis. > Improving integration and outreach. > Developing doctrine and educational programs to guide strategies and operations. > Building the university’s capacity for problem solving, research, outreach and doctrine.

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Montgomery Business Journal November/December 2015

By focusing on those five lines of operation, Air University will be able “to educate more people, more broadly and deeply so that they can think critically, act morally and innovate rapidly,” according to the strategic plan.

“Air University (AU) can leverage capability to help senior leaders address vexing challenges and in so doing connect more fully with communities, agency partners, industry, academia, legislators and the American people.”

In his message in the strategic plan, Lt. Gen. Steven Kwast, president and commander of Air University at Maxwell Air Force Base, wrote: “What will change is how we go about the business of training and educating Airmen for the challenges of this dynamic era. We must be focused on outcomes, ensuring that we are constantly analyzing, assessing and improving all that we do to be more relevant to Air Force and stakeholder needs even as we continue to become more effective and efficient. In short, we will rethink conflict, reimagine airpower and build agile leaders.”

The 37-page strategic plan states that Air University “must become something more than a teaching university or a research university.” The university must “embed itself fully” in the Air Force operations to provide new solutions for air power and cyber. The university “must become an educational institution” that combines research and teaching for problem solving.

“Once leaders recognize Air University as the thought leader on intellectual and leadership development, the prestige of the university and those who serve it will undoubtedly rise,” according to the strategic plan.

In addition to the five lines of operation, the strategic plan also includes six principles that will guide Air University’s transformation: > Embracing the university as a military organization with an academic mission. > Investing in people. > Aligning resources, responsibility, authority and accountability “to support decentralized execution.” > Sharing information “to build an AU-wide shared consciousness of actions and opportunities.” > Focusing on outcomes. > Ensuring that university programs are relevant and responsive to the Air Force.

“We must also lean forward to analyze and address the challenges facing our Airmen and our leaders, providing well-researched, thoughtful recommendations that directly support the defense of our nation and its freedoms that are at the heart of our calling to serve,” Kwast wrote. n

November/December 2015 montgomerybusinessjournal.com

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Chris Driver

Irby J. Thompson

How to Drive Your Portfolio Higher

G U E S T C O M M E N TA RY

by Irby J. Thompson and Chris Driver

In the 1780s, Benjamin Franklin donated $5,000 to his two favorite cities, Philadelphia and Boston, to be invested in mortgages for a term of 200 years. By the 1980s, each $5,000 gift became over $5 million.

The funds were used to build education facilities for tradesmen. This growth was driven by a concept known as compound interest. Compound interest is compelling and the most effective way to harness it is to invest methodically over time.

That’s not to say the current economic backdrop doesn’t matter – it does. Historically, however, there has been little chance of long-term (10-plus years) losses in stocks with a strong economy. At present, we have a growing economy with low inflation and almost 95 percent employment. Since the 2008 financial crisis, most buyers have continued to finance autos, pushing demand for cars and trucks close to record levels. We see mortgage underwriters easing requirements slightly, and pent-up demand for housing starting to drive higher sales, with room for expansion.

In the meantime, consumer confidence is strong and spending is climbing.

What’s going on with oil? It’s volatile. In the last 50 years, crude has dropped by 50 percent on seven occasions. In all but one instance, World War II, global economic expansion followed. Think of it this way: If you live in India and spend 20 percent of your income on cooking oil, you just got a break. You’ll likely spend that on food and clothing, maybe even a motorcycle.

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Montgomery Business Journal November/December 2015

Instead of enriching a few countries, companies and families, lower oil prices drive a higher quality of life and a stronger global economy. One CNBC analysis suggests lower oil prices result in a $308 billion boost to global GDP. Recently, we reviewed 10-year forecasts from some of the world’s largest investment managers. Their average predictions are that stocks should appreciate in the 7 to 8 percent range, bonds in the 2 to 4 percent range and cash in the 1 to 2 percent range annually. You may be wondering why these percentages appear to be relatively low numbers. Didn’t the S&P 500 deliver almost 30 percent in 2013? Yes, and the point is that the price paid going into an investment is extremely important, especially for three- to five-year results. Good investors maintain a longer-term perspective, and in so doing, the importance of remaining diversified can hardly be overstated. According to Vanguard, almost 90 percent of investment results (performance and volatility) are attributable to asset allocation.

Even at today’s elevated valuations, stocks are still the best long-term bet for capital appreciation, but they will also have the widest range of outcomes. On average, a portfolio of U.S. equities will decline in value approximately 28 percent of the time, which leaves the remaining 72 percent at an increase. This can make it hard to “stay the course.”

Psychologically, losing $100 is double the pain relative to the pleasure from gaining $100. To minimize those nasty negative return periods, an allocation to bonds can help cushion the ride. More specifically, high-quality bonds tend to appreciate when stocks take a hit.

CNBC calls it the “flight to quality,” but they do not focus on it (think viewership).

What looks good to us right now? Viewed from the perspective of valuation, the sub-asset classes of U.S. small-caps, U.S. mid-caps, international developed and emerging markets look more favorable than earlier this year. Within the U.S., many companies have sold off while fundamental growth continues. The smaller companies tend to be more domestically focused and benefit more directly from the expansion. It’s hard to imagine, but only 12 percent of the U.S. GDP is in manufacturing. The remaining 88 percent is in services, many of which are smaller companies. Internationally, the central banks of Germany, Japan and even China continue to support their economies. Western Europe and Japan are in the earlier stages of economic growth, while their stocks remain at attractive levels. For emerging markets, the valuations are attractive but the economic backdrop is less favorable. Two conditions we would like to see before we get more serious about adding to those areas are more stability in commodities and currencies.

2016 is a new year. Regardless of your spending and caloric intake this year, next year is a new opportunity.

Remember, the largest contributor to your portfolio’s future value is the amount you invest, so you have control over the most critical variable. Forget about your past and focus on the small decisions which lead you a step closer to that car, house, college education or retirement. We all have those one-time recurring expenses (tires and brakes come to mind), but save whenever you can. As Mick Jagger said, “Catch your dreams before they slip away.” n Irby J. Thompson is vice president of Warren Averett Asset Management and Chris Driver is senior research analyst for Warren Averett Asset Management.

However, almost every week the stock market got hammered this year, bonds were up. The No. 1 reason to hold bonds is for diversification and downside protection. To view this from a different perspective, in the 2008 financial crisis, U.S. stocks were down 57 percent but the 10-year Treasury was up 15 percent.

So, it’s important to pick a target allocation that aligns with your personal risk profile. Then, annually rebalance back to your target allocation, forcing you to sell high, buy low and keep your risk tolerance at your desired level.

November/December 2015 montgomerybusinessjournal.com

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Savvy Investors Need to Stay the Course

by David Roda

G U E S T C O M M E N TA RY

Investors face a variety of uncertainties today that could derail their resolve to maintain fully diversified portfolios aligned with their longterm investment objectives and risk budgets. This heightened sense of concern is being fueled by many factors, including economic weakness in China, uncertainty around Federal Reserve policy, and a collapse of oil prices and other commodities.

In response, equity market volatility has risen sharply in recent months with the S&P 500 experiencing its first 10 percent correction in over four years.

In an environment characterized by rising volatility and record-low interest rates, what is the savvy investor to do?

Our advice is to stay the course, remain highly diversified, and look for opportunities to take advantage of major demographic, technology, and policy trends.

“Staying the course” requires that investors clearly define their long-term financial goals and design an investment portfolio that is capable of meeting those goals under varying market conditions with the least amount of risk over time. We often think of risk in terms

of portfolio fluctuations associated with short-term market gyrations, but in reality the biggest risk most investors face is the risk of failing to achieve their long-term goals.

Human nature compels us to run from perceived danger and to seek safety in numbers, yet in the realm of investing the best time to buy is usually when others are selling and the best time to sell is when the herd has already moved in on the opportunity. History shows that the bulk of stock market returns have occurred over very brief periods of time.

Consequently, market timing is not a reliable strategy for long-term investors because the probability of consistently getting in and out of the market at the right moment is extremely low. Holding excess cash during periods of market volatility may feel like the safe bet, but not being invested during these quick upswings can greatly reduce long-term performance, and at today’s yields, cash does not even cover the cost of inflation.

In short, discipline trumps emotion. Don’t overestimate your ability to consistently call market turns that even the most highly trained investment professionals fail to navigate with precision.

Diversifying investment holdings across a broad number of asset classes and geographies can help to reduce portfolio volatility due to the fact that at any given time, a decline in the price of one investment is likely to be offset by a rise in another. Therefore, a bad outcome in any single investment will not have a catastrophic impact on the overall portfolio.

Nonetheless, many investors have a tendency to concentrate their portfolios in those asset classes that have performed best in the recent past. Since

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Montgomery Business Journal November/December 2015

the lows of April, 2009, the S&P 500 has significantly outperformed most international equity indices, producing annual returns of over 16 percent including dividends through August of 2015 and prompting many investors to concentrate their holdings in U.S. stocks.

These outsized returns were driven in part by corporate earnings growth and as a result of a rise in valuations from depressed recessionary levels.

Highly favorable returns in U.S. stocks cannot persist indefinitely, however, that in no way implies that the bull market in U.S. equities is over. To the contrary, Wells Fargo Investment Institute (WFII) is recommending an “overweight” position to both U.S. and international developed market stocks. The U.S. economy is healing, corporate profits are rising, home prices and employment are gaining momentum, and consumer net worth is now at an all-time high.

The imminent reversal of Federal Reserve interest rate policy may constrain investor optimism in the nearterm, but the gradual nature of future rate hikes should not derail the economic recovery. The U.S. is a net importer of oil and lower energy prices translate into increased consumer spending power, which benefits the broader economy.

Overall we expect the U.S. economy to grow roughly by 2.5 percent in 2015 and at a slightly higher pace in 2016. In this environment, equity returns should pace earnings growth and volatility should increase toward historical norms. As a result, there will be more dispersion among individual winners and losers with earnings growth being the primary differentiator among competitors.

recession recovery. However, growth has slowed due to a combination of factors, including weakness in the manufacturing export sector driven by slow global demand and a rising currency – the cumulative impact of years of monetary and fiscal policies aimed at fighting inflation and containing credit growth, and a concerted effort by the government to enact policies aimed at reducing China’s dependence on the export of manufactured goods.

Now that growth has slipped below the government’s stated threshold of 7 percent, we have seen a slate of pro-cyclical policies aimed at reviving China’s economic trajectory. While we do not expect its economy to return to high-single-digit growth, we do anticipate stabilization at or near the current level of roughly 6 percent, which should take the edge off of investor worries about China’s economy.

Overall, 2016 is likely to be a year of uneven growth and increased market volatility. The global economy may be exhibiting growing pains, but six years of postrecession data show that the U.S. banking system has fully recapitalized, companies have lowered costs and restructured balance sheets, and consumers have reduced debt and rebuilt wealth. Trends in technology innovation as well as global demographics are creating opportunities and risks for investors.

The mere fact that individuals are living longer in a low-interest rate environment suggests that the chance of outliving one’s savings has increased, even for the wealthy. Therefore, having a detailed financial plan is essential. Diligent execution of the investment strategy around that plan will greatly increase the probability of a successful outcome in the long term. n David Roda is regional chief investment officer for Wells Fargo Private Bank.

Similarly, the international developed equity markets in Europe and Japan are poised to benefit from very low-interest rates and aggressive bond buying programs initiated by their central banks. While we are not declaring an economic “liftoff” in Europe or Japan, we have seen broad-ranging signs of economic stabilization and we expect to see some growth in 2016.

The obvious fly in the ointment is China. China is the world’s second-largest economy and it has been a significant engine of global growth during the post-

November/December 2015 montgomerybusinessjournal.com

35

CHAMBER NOTES

Annual Meeting The Montgomery Area Chamber of Commerce 143rd Annual Meeting – presenting sponsor Welch Hornsby – is Dec. 8 at the Renaissance Montgomery Hotel & Spa at the Convention Center. A crowd of nearly 1,000 is expected.

Outgoing Chamber Chairman of the Board of Directors W. Russell Tyner will preside over the meeting, which includes the introduction of the 2016 chairman.

36

Montgomery Business Journal November/December 2015

CHAMBER NOTEBOOK

Conversations Alabama Power Co. Southern Division Vice President Leslie Sanders gave a presentation on “What Leaders Really Do” to a sold-out crowd at the Montgomery Chamber’s Conversations: Roundtables for Professional Women.

The networking event provides information for professional women to use in both their business and personal lives. After Sanders’ short presentation, lively roundtable discussions followed.

38

Montgomery Business Journal November/December 2015

CHAMBER NOTEBOOK

INFORMATION TECHNOLOGY FORUM The Montgomery Chamber held an information technology forum on “Adapting to a Digital World” at the Montgomery Chamber Business Resource Center.

The featured speaker was Col. Richard J. Bailey Jr., who is dean of the School of Advanced Air and Space Studies at Air University at Maxwell Air Force Base. He spoke about the importance of businesses and individuals being able to adapt to advancing technology from both a military and business perspective.

CELEBRATING MANUFACTURING The Montgomery Chamber, along with Montgomery County and the City of Montgomery, celebrated Manufacturing Month in October with a kickoff event at Hyundai Power Transformers USA. Montgomery Public Schools students were scheduled to tour Hyundai Motor Manufacturing Alabama’s facility;

H. Councill Trenholm State Community College; and mobile robotics and aeronautics labs from Alabama Industrial Development Training and Alabama Technology Network.

The IT forums are held quarterly.

November/December 2015 montgomerybusinessjournal.com

39

ON THE VERGE OF GREATNESS Bringing Up the ‘Beloved Community’

by David Zaslawsky

photography by Robert Fouts

When Montgomery Mayor Todd Strange said that the city is on the verge of greatness, although he just as quickly acknowledges that he is unsure how to define it, he does have a good idea of what it looks like.

Continued on page 42

Montgomery Mayor Todd Strange chats with firefighters from Fire Station 9 at One Center, the site of the former Montgomery Mall.

Moving Fire Station 9 to what is now One Center helped revived the longtime vacant site of the Montgomery Mall.

Continued from page 41

It resembles his Vaughn Meadows neighborhood, where the mayor sees black children in their front yards; white children in their front yards; and Asian children in their front yards.

“When we can be as proud of what’s on the west side and the north side as we are with the east side, then I believe we will have approached greatness.”

- Todd Strange, Mayor, City of Montgomery

42

Montgomery Business Journal November/December 2015

“That’s where I want us to really be,” Strange said.

“We’ve got a city that is not divided, but we can do more uniting with our citizens. When we can be as proud of what’s on the west side and the north side as we are with the east side then I believe we will have approached (greatness). Whether we ever get there or not I do not know. I don’t know if you get there in four years, but what you can get to are safe neighborhoods; people black and white, Asian all playing together; working together; socializing together. When that happens, then we will have made giant strides.”

He quoted Martin Luther King Jr. about the “beloved community.” For Strange, the beloved community “is when we all – all of us – care about our kids; want the best for our kids; and work together to achieve that particular goal. And that we do have good-paying jobs for black; for white; and for Asian; and whomever else that wants to come here and not just be in a certain sector of town and say, ‘That’s the rich side of town vs. some other side of town.’

“You are always going to have different parts of our community that are going to have more success and easier success than others. I want to develop retail. I want to develop housing and good neighborhoods and good parks all over the city.”

direction that we all can be proud of whether it be from the retail standpoint; a residential standpoint; commercial standpoint,” he said. “We will not get there, but we will be moving in a direction that we’ve not moved in 30 years in West Montgomery.”

This is the mayor’s third and final term after winning re-election in August. He hopes that in four years, Dexter Avenue “will be a model for what downtown redevelopment can achieve when you put private and public sectors together and get creative and think outside the box. And go find individuals that can, in fact, be part of the development and not just let those individuals come to you. Be proactive and go find them, which we’ve done.”

Continued on page 44

Four years from now, the mayor thinks there will be continued growth in the downtown residential sector.

“I think you will see West Montgomery moving in a

“I want to develop retail.

I want to develop housing and good neighborhoods and good parks all over the city.”

- Todd Strange, Mayor, City of Montgomery

November/December 2015 montgomerybusinessjournal.com

43

“I would hope that we see what we talked about in the beginning – all of us coming together...we would be a Montgomery that really is colorblind.”

- Todd Strange, Mayor, City of Montgomery

Continued from page 43

He thinks that the east corridor will resemble “another Prattville” with 25,000 new households. “We won’t get there in the next four years, but we’ll be well on our way with big subdivision tracts.” He said there are already signs of that with churches, apartments and houses.

There will be timely infrastructure investments instead of having to “wait three, four or five years past the useful life of a road,” Strange said.

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Montgomery Business Journal November/December 2015

Remember his Vaughn Meadows neighborhood. “I would hope that we see what we talked about in the beginning – all of us coming together and I hate to use the word One Montgomery, but we would be a Montgomery that really is colorblind.”

The final-term agenda and goals are, as you’d expect, ambitious and wide ranging – everything from street paving to education. The street paving as well as other infrastructure investments are what Strange calls the “blocking and tackling so that we can in fact have the opportunities for these families to make a better living.”

Montgomery Mayor Todd Strange joins firefighters from the city’s South Central Fire Station 9 at One Center.

Street paving is a big deal. The city has paved about 130 miles of roads and has another 170 miles to go, including such key connector roads as Fairview, Carter Hill, Narrow Lane and Wares Ferry. New paving helps spur other development, Strange said.

He talked about infrastructure investment in West Montgomery – sidewalks, repaving and relocating utilities to “prime the pump� for private developers to investment their money.

He did say that the West Fairview Avenue streetscape will be completed during his final term in office.

The mayor was adamant about the city holding the Montgomery County Board of Education accountable.

In a word, “proactive.� He said that he was told there was $350,000 available for pre-K programs but that no one applied for the money. “If they (school district officials) need help writing grants we’re going to help them write the grants or we’re going to ask them, why did we leave $350,000 on the table because we didn’t ask for something?�

Continued on page 46

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November/December 2015 montgomerybusinessjournal.com

45

“I think you will see West Montgomery moving in a direction that we all can be proud of whether it be from the retail standpoint; a residential standpoint; commercial standpoint.”

- Todd Strange, Mayor, City of Montgomery

Continued from page 45

The city was also proactive with hiring longtime educator Camille Finley on a contract basis to develop ideas to improve education. That is the genesis for the community school concept and the city helped acquire $500,000 in funding from the state Legislature for the pilot program.

“We are going to say, ‘Why aren’t we getting it done?

What do we have to do next? What’s your next move?’ ”

You price

promise

Strange was quick to say that the city is “not trying to take over the schools. If everybody agrees and we’ve got the game plan and we’ve got the money, why aren’t we getting (it done)?”

The city has always been an advocate for education, but heard that “it was your job; not your responsibility and you have no authority,” Strange said. “We may not have any authority, but the citizens hold us responsible. They also hold the school board responsible, but at the end of the day they know that elected officials are responsible for anything that happens in that governmental area.” n

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Montgomery Business Journal November/December 2015

MONTGOMERY ON THE VERGE OF GREATNESS

LEAVING MONTGOMERY A BETTER PLACE Montgomery Mayor Todd Strange used a quote from automotive dealer Larry Puckett when asked to talk about his legacy as mayor.

Puckett, president of Larry Puckett Chevrolet in Prattville, likes to say that you always want to leave the campground better than what you found it, according to Strange. “I want somebody to say that he in fact did leave Montgomery better than what he found it and that we built a foundation – a strong foundation on which we can spring into the greatness that we aspire to,” Strange said.

He would like his legacy to be that he made a difference. “We call ourselves the Capital of Dreams,” Strange said, “but our dreams now are turning into action. But we’ll always have dreams, so those actions will always follow your dreams.

“I would like for us to be remembered as somebody that had a part in having Montgomery see and follow that dream, but never stopped dreaming.”

November/December 2015 montgomerybusinessjournal.com

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One of those projects is One Center – the old Montgomery Mall, where two new high schools will be located: Loveless Academic Magnet Program High (LAMP) and the Montgomery Preparatory Academy for Career Technologies (MPACT). Those schools are scheduled to open in fall 2016.

MONTGOMERY ON THE VERGE OF GREATNESS

GAME-CHANGING PROJECTS MOTIVATE MAYOR

A new Municipal Court is being built on Madison Avenue and could be completed in about one year.

One of the key reasons that Montgomery Mayor Todd Strange ran for re-election was seeing key projects completed.

Just as important was “not letting people down” who believed in what the mayor’s administration was doing, and those who gave up careers to work at City Hall.

He knows that there will be many new projects that won’t be completed during his final four-year-term, but there are key projects that Strange called “gamechangers” that will be completed under his watch.

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Another 17 homes are being built at Lanier Place in West Montgomery, and that will be a significant accomplishment considering the project is only the second residential development west of Court Street in the last 30 years, according to Strange. There was a new multifamily project by the Cleveland Avenue YMCA about three years ago. “We’ve been working on Lanier Place for the 17 new houses for three years now,” Strange said.

He could have made the announcement before the mayoral election, but held off because the importance of the project “would have been lost in the rhetoric of the politics, so you wait until after the election. It’s about the betterment of that particular neighborhood.”

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Montgomery Business Journal November/December 2015

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All the development on Dexter Avenue is another game-changer, Strange said, but one of the most important game-changers is what Strange called a “paradigm shift”, and that’s cyber. “Because of our uniqueness with the military and Gunter (Annex), the cyber school of the Air Force is going to be at Maxwell – we have to take advantage of that,” he said.

“We have to leverage that and make our city a cyber city; make our city a gig city, where you can connect to any device anywhere in the world in record time.

That in and of itself is a major, major push of this administration. We’ve been working on it for a while.”

made in Park Crossing (High School) and to establish the infrastructure as far as the transportation side of the equation.”

Strange said that he could not walk away and let those people down, or many who work at City Hall, including members of his Cabinet. “They bought into something and we’ve been working together for a couple of years.” n

“Because of our uniqueness with the military and Gunter, the cyber

“These projects that we’ve been working on, we have been working on them for four or five years,” he said.

“At the end of the day, I know there will be projects that we would have just started, but my expectation is there will be projects that we have finished.”

college of the Air Force is going to be at Maxwell – we have to take

He said that he ran for a third term “because of all the people that really believed in us – believed in the vision of what we could do in downtown Montgomery. Or believed in what we could do with the old Montgomery Mall or trying to make a great neighborhood out east with the investment we

anywhere in the world in record time.”

advantage of that. We have to leverage that and make our city a cyber city; make our city a gig city, where you can connect to any device - Todd Strange, Mayor, City of Montgomery

November/December 2015 montgomerybusinessjournal.com

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SATURDAY AFTERNOON OUTING

Earlier starting time turns the Raycom Media Camellia Bowl into a family event

by David Zaslawsky

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Montgomery Business Journal November/December 2015

photography by Robert Fouts

The second annual Raycom Media Camellia Bowl will closely resemble last year’s inaugural event except for one noticeable difference.

“We’re going to

That’s the four-hour earlier starting time – 4:30 p.m.

– and that is a crucial difference. Last year’s game between Bowling Green State University and The University of South Alabama started at 8:30 p.m. and ended almost at midnight.

make this as nice a bowl as they’ll ever experience.”

“It was too late for a family event,” said Johnny Williams, the bowl game’s executive director. “We think this becomes more of a family opportunity for a Saturday afternoon outing – tailgate, go to the game and you’ll be back home by 8 o’clock.”

The reason for the earlier start time was the success of the inaugural game, according to Williams. With 20,256 tickets sold the Camellia Bowl outdrew 17 other bowl games based on attendance vs. capacity.

The game was at 81 percent of Cramton Bowl’s 25,000-seat capacity.

“Our game looked great on TV,” Williams said. “We had a full house, especially on the side away from the press box, and that had a significant impact on how the game was viewed nationally, according to ESPN. They gave us a much more conducive environment now and we think we can have bigger and better crowds in the years to come.”

Johnny Williams, executive director, Raycom Media Camellia Bowl This year’s game – which pits teams from the MidAmerican Conference and the Sun Belt Conference – is Saturday, Dec. 19, and will be televised by ESPN. Williams was beaming about selling nearly 13,000 tickets locally. “We’ve got a good base to draw from,” he said. “You go to a lot of communities and Continued on page 52

November/December 2015 montgomerybusinessjournal.com

51

golf tournament and four tickets to the Alabama football legends lunch. Catering and beverage options are not included. “It’s like having your own miniature suite,” Williams said. “It’s self-contained.”

The inaugural Raycom Media Camellia Bowl will start four hours earlier this December.

Continued from page 51

the game wouldn’t get noticed. Montgomery was the perfect-size market for this football game and our fan base and our community responded.”

This year, he hopes to increase attendance with a direct mailing to all Montgomery Area Chamber of Commerce members and is heavily promoting the Corporate Tailgate Village at Fanfest. There were 18 companies that paid $1,250 or $2,500 or $4,500 for corporate tailgate packages that include tickets, parking passes, tents, tables, folding chairs, coolers, cups, plates, napkins and dinnerware. Catering is available, but not included.

Now after last year, Williams also has word-of-mouth to help promote sales. “We are encouraging companies to buy them (corporate tailgate packages) and they could have their Christmas office party there.”

There is a new $7,500 private field suite available this year, but only three tents are left at the south end zone.

The cost includes 24 tickets, 12 parking passes, a 3-foot-by-9-foot television, a foursome in the annual

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Montgomery Business Journal November/December 2015

The ESPN Zone – $150 per person – will again be at the Multiplex at Cramton Bowl and the Wind Creek Hospitality Field Suite will be back at $100 a ticket.

If fans purchase their tickets by Dec. 1, they can join the Legacy Club. There is no fee and it enables members to buy the same seats each year or to request new seats. There are no advance costs as club members pay for their seats each year.

“We may not be the largest bowl and we may not be at the beach, but what we do have in our community is the ability to be friendly and more hospitable than anybody in the world,” Williams said. “We’re going to make them (teams and officials) feel comfortable. We’re going to entertain them for those four days and build relationships. We’re going to make this as nice a bowl as they’ll ever experience.” n

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Remarkably Strong

by David Zaslawsky photography by Robert Fouts

General Motors Chief Economist G. Mustafa Mohatarem (from left); McConnell Honda/Acura President Forrest McConnell III; and National Automotive Dealers Association Chief Economist Steve Szakaly spoke at the 33rd annual Economic Summit. Carl Barker, president and CEO of ServisFirst Bank in Montgomery was the moderator.

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Montgomery Business Journal November/December 2015

Some analysts have cautioned that annual auto sales are peaking around 17 million units, but one economist said they are wrong.

Another expert – Steven Szakaly, chief economist for the National Automobile Dealers Association – was also upbeat about new vehicle sales. His forecast calls for 17.2 million to 17.3 million units this year and a record-setting 17.6 million units in 2016 and declining slightly to 17.4 million sales in 2017.

“American customers are demanding … more vehicles and they are demanding the type of vehicles that American companies are very good at

Photo Credit: Kim Box Photography

“Auto sales have been remarkably strong,” he said at the 33rd annual Economic Summit at Wynlakes Golf & Country Club. “In fact, this has been one of the best auto recoveries in the past five cycles.”

PERFECT SPACE PERFECT PLACE

Photo Credit: Jon Cook Photography

Mohatarem, who has 20-plus years with GM as the automaker’s chief economist, said that he expects new vehicle sales this year to approach the all-time record of 17.4 million units in 2000 and top it next year.

Photo Credit: CP Mac Photography

“I respectfully disagree,” General Motors Chief Economist G. Mustafa Mohatarem said. He said there are a number of factors that fuel the strong auto sales in the U.S.: gross domestic product growth, employment, gasoline prices and credit availability. “All the indicators suggest we’re in for a period of strength.

producing.”

G. Mustafa Mohatarem, chief Those assessments matter economist, General Motors because the automotive industry accounts for 20 percent ($2.4 billion) of Montgomery’s economy, according to a study conducted by Keivan Deravi, an economics professor at Auburn University at Montgomery and dean of the College of Public Policy and Justice.

He is a leading expert in economic impact modeling.

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That $2.4 billion annual economic impact comes from Hyundai Motor Manufacturing Alabama’s plant in Montgomery and its suppliers in the area.

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Szakaly does forecast annual vehicle sales to fall back to 16.5 million units to 16.8 million units beginning in 2018 because of demographics. He said he doesn’t see support for 18 million units a year. The average new car buyer, according to Szakaly, is 52 years old with an annual salary of $80,000. That represents just 5.3 percent of the population.

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Modern and vintage coexisting in perfect harmony.

Stunning sky and city views.

Rustic, elegant and unassuming.

Those are the baby boomers doing the buying while Millennials tend to have below-average incomes and a lot of student debt.

They are also marrying later and starting families later and adding children is a key factor in buying vehicles, Szakaly said.

Continued on page 56

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November/December 2015 montgomerybusinessjournal.com

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Continued from page 55

“Young people aren’t buying cars because they can’t afford them,” Mohatarem said. “They don’t have jobs.

Insurance costs are killing. They are still trying to deal with student loans.

As soon as the economy recovers and gets stronger and kids start moving out of (their parents’) basement they’ll buy cars and we’re seeing that now. Young people are coming back into the market.”

Another issue is that wages have not kept up with rising new car prices and that has forced dealerships to offer incentives, including low-interest rates and long-term loans.

Even at 16.5 million units to 17 million units a year – Szakaly called those annual sales numbers “strong.”

Just three years ago, new car sales were 14.5 million and had fallen as low as 10.5 million during the Great Recession.

G. Mustafa Mohatarem is the chief economist for General Motors.

“American customers are demanding … more vehicles and they are demanding the type of vehicles that American companies are very good at producing,” Mohatarem said. n

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Montgomery Business Journal November/December 2015

2 0 1 5 R I V E R R E G IO N E C O N O M IC S U M M I T

“Over the next several few years our economy should experience solid growth and we should return to full employment in the not-todistant future. The strength of the economy’s performance is most evident in the job market. We are creating a lot of jobs.”

– Mark Zandi, Chief Economist, Moody’s Analytics

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“The recovery doesn’t get enough credit because we don’t know what could have happened. We can’t measure what didn’t happen, but certainly what we dodged was an amazing, dangerous bullet and this recovery has been impressive...

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Montgomery Business Journal November/December 2015

2 0 1 5 R I V E R R E G IO N E C O N O M IC S U M M I T

Wages

Automotive

Wages will start to increase as the country reaches full employment and consumers will spend more because they will feel more confident about their own economy.

The automotive manufacturing sector has about 875,000 jobs while the automotive retail sector employs more than 1 million. Those jobs average about $25 per hour.

Jobs

The new car dealerships are forecast to sell more than 31 million vehicles this year. That includes used vehicles.

Job growth is expected to remain strong and the economy should reach full employment by the summer. Through October, about 180,000 jobs were created monthly. In 2014, 2.8 million jobs were added and that was the most since 1999.

Job openings are at a 15-year high of 5.8 million. That is 1 million more job openings than 2014 and 2 million more than in 2013. There is now a little more than one worker competing for each job vs. seven in 2009 and 2010.

...The recovery is probably stronger than you think.â&#x20AC;? â&#x20AC;&#x201C; CNN Chief Business Correspondent Christine Romans

Of the 6.6 million jobs created during the recovery about 3 million are classified as good jobs paying an average salary of $53,000 with benefits including health care and retirement.

The overall national unemployment rate is 5.1 percent, but for college graduates it is 2.7 percent.

In less than 10 years, automotive manufacturers have gone from producing 69 high-fuel economy vehicles in 2006 to 492 today. Thatâ&#x20AC;&#x2122;s a whopping 600 percent increase.

Only 14 percent of new car buyers said that mileage was their No. 1 concern.

Light truck sales account for 56 percent of the market vs. 44 percent for passenger vehicles.

The key gas price point impacting car buying is $2.50 gallon.

Regions that are heavily dependent on the automotive sector because of its cyclical nature need a rainy day fund.

There were no such rainy day funds for Michigan and Ohio.

Gas Prices Gasoline prices are likely to remain low for as long as two decades, which happened from 1985 to 2005 after oil was discovered in the North Sea. U.S. shale oil producers will not go out of the market if prices remain low or if they do, will return when prices begin to rise.

Gas prices will be $2.25 a gallon in 2018.

Continued on page 61

November/December 2015 montgomerybusinessjournal.com

59

Montgomery is “one big house.

We all together should make it our business to take care of this one big house. We’ve got four bedrooms: north bedroom, south bedroom, west bedroom, east bedroom.”

– Montgomery County Commission Chairman Elton N. Dean Sr.

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Montgomery Business Journal November/December 2015

2 0 1 5 R I V E R R E G IO N E C O N O M IC S U M M I T

The Alabama Cyber Initiative will “connect every person, every household, every business and every device to the rest of the world at the speed of light.”

– Montgomery Mayor Todd Strange

Continued from page 59

Workplace Millennials are going to reshape the workplace because they don’t want 9-to5 jobs. They may even be the driving force for a four-day work week. There are not interested in staying with one company for an extended period of time.

Housing The housing sector will surge because the current construction level is not enough to keep up with demand.

Millennials will be moving out of their parents’ home and will form new households – a lot of new households – at least 1 million in the next two to four years. That’s in addition to the average of 1 million to 1.5 million new households formed annually.

Risks Some of the headwinds weighing on the economy are stagnant wages, low commodity prices, slowdown in China, stronger dollar, political gridlock, government/municipal debt, student debt and pensions’ liability.

The next recession will probably come in 2019 because of an overheated economy.

The economies of Brazil, Russia, India and China – the so-called BRIC nations – are struggling after leading the world’s economy. Massive stimulus programs fueled those economies and now there is excess capacity that needs to be reduced. n

November/December 2015 montgomerybusinessjournal.com

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REPORTER’S NOTEBOOK

NEW HIRE AT AIR UNIVERSITY

by David Zaslawsky

Maxwell Air Force Base’s Air University has hired its first chief information officer and it’s a big name in local technology circles. It’s Scott Baker, who served as director of Defense Information Systems Agency (DISA) the past three years at the Gunter Annex.

Baker has an extensive background with 27 years of experience in the IT industry, including stints at Fortune 100 companies. His new role at Air University includes everything from improving existing IT systems to advances in cyber to research and outreach.

“He understands the Air Force, understands the joint information environment and is a profound innovator who will help lead the transformation of the education mission of the Air Force going into the future,” Lt. Gen. Steven Kwast, president and commander of Air University, said in a statement.

In a statement, Baker said, “My experiences with various Fortune 100, DISA and DoD (Department of Defense) initiatives gives me a unique business and information technology perspective. I will be able to apply my agile and progressive thinking within the Air Force framework to an open field of opportunities within Air University for our next generation of leaders and war fighters.”

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Montgomery Business Journal November/December 2015

RECORDSETTING PACE Hyundai is on pace to break last year’s U.S sales record of 725,718 units and Sonata sales will likely top 200,000 for the fifth straight year.

After nine months, Hyundai sales were about 150,000 units from the all-time record and need to average around 50,000 units a month, but averaged nearly 65,000 monthly units from JanuarySeptember. The Korean automaker sold almost 170,000 vehicles the final three months of 2014.

Elantra could set an all-time record with about 55,000 sales in the final quarter of 2015.

Both the Elantra and Sonata are produced at the Hyundai Motor Manufacturing Alabama facility in Montgomery.

BUSINESS PARTNERS

MILESTONE FOR CADENCE BANK

Montgomery business owner Greg Calhoun and comedian Steve Harvey have bought the former site of a latex plant in Eufaula that is now called AmeriTech Glove.

Cadence Bank has surpassed $500 million in transactions through its Cadence Bank signature debit card program powered by Discover Debit. The program was launched in April 2013.

The facility had been closed for five years, but reopened in September.

The new owners announced plans to hire 300. It is the only latex glove factory in the country.

Harvey and Calhoun are long-time friends and established an investment firm called HarCal.

The bank has been successful in building its debit rewards program and sees the potential to achieve â&#x20AC;&#x153;significant customer retention value and drive higher deposits.â&#x20AC;?

Big-Time Grant for Troy University Troy University will receive $4 million-plus over the next five years for student support services. It is the largest grant to a fouryear institution by the U.S. Department of Education for student support services.

More than 550 Troy students will participate in the Student Support Services project. The program is for first-generation, low-income and special needs students.

November/December 2015 montgomerybusinessjournal.com

63

REPORTER’S NOTEBOOK

$43.1

MILLION

COUNTY SETS RECORD Montgomery County set a record with sales tax revenue of $43.1 million in fiscal 2015, breaking the previous mark of $42.8 million set in fiscal 2007.

NEW PROBATE OFFICE Montgomery County Commission is spending $900,000 to renovate the former Pier One building across from One Center to be used as a probate/ revenue office. The project is expected to be completed in spring.

MAJOR MILESTONE The City of Montgomery reached $100 million – $101.1 million to be exact – in sales and use taxes for the fiscal year that ended Sept. 30. The city had a previous high of $98.2 million for the 2007 fiscal year, but just two years later the Great Recession hit and sales tax revenue had declined to $83.7 million.

The $101 million in sales tax revenue was an increase of 4.6 percent over the previous fiscal year.

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Montgomery Business Journal November/December 2015

ALABAMA RANKED NO. 5

CLEARSPEND CARD DEBUTS

Site selection consultants ranked Alabama in a fifthplace tie in their annual survey of Top States for Doing Business in Area Development magazine.

BBVA Compass has launched its prepaid ClearSpend card that features a budgeting app to keep track of spending.

Nine of the top 10 states in the rankings were in the South: Georgia (No. 1), Texas (No. 2), South Carolina (No. 3), Tennessee (No. 4), Alabama and Florida (No. 5), North Carolina (No. 7), Louisiana (No. 8), Ohio (No. 9) and Kentucky (No. 10).

The states were ranked in numerous areas including labor pool, taxes, incentives, training, skill level, energy costs, postsecondary schools, regulatory climate, cooperative state government, speed of permitting, transportation infrastructure and infrastructure/ global access.

“Our research shows a rapidly expanding market with more clients turning to prepaid cards to manage their budgets, stay out of debt and avoid overdraft and check-cashing fees,” BBVA Compass Chief Digital Banking Officer Jeff Dennes said in a statement.

The card automatically creates personalized budgets after 30 days of spending.

Regions Partners with Online Lender Regions Bank and Fundation Group announced an agreement to provide small businesses options to secure a loan with

REPORTER’S NOTEBOOK

COUNTY SUPPORTS SCHOOL DISTRICT Since 2001 when Montgomery County increased its sales tax 1 percent and dedicated that money to fund Montgomery Public Schools – the school district has received more than $330 million. The total includes $26.7 million this fiscal year plus another $2.9 million for the school district’s debt service.

either financial institution.

Companies may access Fundation’s online application from Regions’ website or apply for Regions’ lending products. A Regions executive said that 20 percent of small business owners are using online lenders. “This unique agreement with Fundation allows Regions Bank to expand loan product offerings and method delivery for small businesses while also cultivating long-term revenue and loan growth opportunities,” Joe DiNicolantonio, head of Regions business banking, said in

SERVISFIRST RECEIVES HONOR ServisFirst Bank’s holding company has been named to the Sandler O’Neill’s Sm-All Stars Class of 2015. It was just one of 34 publicly traded banks with a market cap less than $2.5 billion to receive the honor.

SIGN OF THINGS TO COME Building permit valuations for the City of Montgomery have soared from $118 million in 2012 to $271 million for the current fiscal year.

The increase was an impressive 49 percent from $182 million in the 2014 fiscal year.

a statement.

November/December 2015 montgomerybusinessjournal.com

65

REPORTERâ&#x20AC;&#x2122;S NOTEBOOK

PRIMING THE PUMP: The public sector invested about $2 million for infrastructure to create The Alley in downtown Montgomery.

THAT $2 MILLION SPARKED ABOUT $30 MILLION IN INVESTMENT FROM THE PRIVATE SECTOR.

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Montgomery Business Journal November/December 2015

BUSINESS BUZZ RAYCOM MEDIA ACQUIRES WEBSTREAM SPORTS MONTGOMERY – Raycom Media has acquired WebStream Sports (WebStream Productions Inc.).

WebStream, a leading provider of live sports production for television and the Web, will operate as a new division of Raycom Media.

WebStream founder John Servizzi will continue as CEO and Greg Weitekamp will continue as president. WebStream maintains its headquarters in Indianapolis and has offices in Charlotte, N.C.

WebStream Productions Inc., which was established in 2006, produces more than 1,000 live events annually for television, Internet and in-venue audiences. Its output has been seen on ESPNU, ESPN3, CBS Sports Network, Fox Sports and Comcast Regional Networks, and NCAA.com, among others.

Raycom Media, an employee-owned company based in Montgomery, is one of the nation’s largest broadcasters and owns and/or provides services for 53 television stations in 37 markets and 18 states.

Raycom stations cover 13.1 percent of U.S. television households and employ nearly 4,000 in full- and parttime positions.

“We are thrilled that WebStream is now part of the Raycom team,” Raycom Senior Vice President Pat LaPlatney said in a statement. “From our first conversation, it was WALKER360 clear that Raycom Media MAGAZINE and WebStream were PROJECT a great fit. WebStream RECEIVES shares our customerNATIONAL first mentality and RECOGNITION commitment to growth not only in putting MONTGOMERY – production resources on the Walker360’s advertising Taylor Blackwell road, but staffing them with agency and its client, the well-trained, dedicated employees.”

Alabama Association of Realtors, have been recognized nationally for “The WebStream team is very excited Porch & Property. to become a division of Raycom Media,” WebStream CEO John The new consumer-driven magazine Servizzi said in a statement. “The was selected as one of six top staff at WebStream prides itself on ideas by the National Association delivering high-quality productions of Realtors State Leadership Idea that meet client budgets. Having Exchange Council, presented Raycom Media behind us in that during NAR’s annual Realtor effort allows us to increase our own Party Convention & Trade Expo in lofty expectations and continue to Washington, DC. provide unprecedented service to our partners. We are proud to become part of the Raycom family.”

MEMBER NEWS

“We are always happy to see our clients succeed and we are thrilled by the recognition of this work for Alabama Realtors,” Walker360 President Taylor Blackwell said in a statement.

Porch & Property, Alabama is published twice a year and is distributed to the state’s Realtors and is also available at medical offices statewide.

TROY UNIVERSITY HONORS JACKSON THORNTON EMPLOYEE Renee B. Hubbard

MONTGOMERY – A Jackson Thornton employee was inducted into the Troy University School of Accountancy Accounting Hall of Honor.

Renee B. Hubbard, a certified public accountant, was honored

by Troy University. She has 30plus years of experience providing tax planning and compliance services to individuals and closely held businesses.

CONTINUED ON PAGE

68

November/December 2015 montgomerybusinessjournal.com

67

BUSINESS BUZZ FROM PAGE

67

INDEPENDENT COLLEGE GROUP DISTRIBUTES $34,300 IN SCHOLARSHIPS MONTGOMERY – The Alabama Association of Independent Colleges and Universities (AAICU) has distributed $34,300 in UPS scholarships to 14 low-income students at private colleges and universities in the state.

The scholarships were made possible by a grant from the UPS Educational Endowment Fund administered by the Council of Independent Colleges (CIC) in Washington D.C. Nationally, CIC and the UPS Foundation teamed up to provide nearly $1.5 million in student scholarships this year, which will be distributed through state-based private college associations around the country.

Colleges in Alabama that received UPS Scholarships this year from AAICU include Amridge University, Birmingham-Southern College, Concordia College Alabama, Faulkner University, Huntingdon College, Judson College, Miles College, Samford University, Spring Hill College, Stillman College, Talladega College, Tuskegee University, University of Mobile and the United States Sports Academy.

“Through this national scholarship program, CIC and UPS are delighted this year to make it possible for 585 talented young men and women to attend the private college or university of their choice,” CIC President Richard Ekman said in a statement. “By directly assisting students with significant financial need, CIC and UPS are helping a new generation of students achieve their dreams of a college education.”

STARKE AGENCY SELECTED AS A BEST PRACTICE INSURANCE AGENCY MONTGOMERY – Starke Agency Inc. has retained its status as part of an elite group of independent insurance agencies participating in the Independent Insurance Agents & Brokers of America (IIABA) “Best Practices” Study Group.

Each year since 1993, IIABA and Trey Starke Reagan Consulting join forces to study the country’s leading agencies in six revenue categories. More than 1,100 independent agencies throughout the U.S. were nominated to take part in the annual study, but only 217 agencies qualified for the honor.

“We are pleased to be recognized as a best practice agency for the ninth straight year,” Starke Agency President Trey Starke said in a statement. “We are the only independent agency in our area to receive this accolade. Our established leadership structure and team approach has proven itself beneficial in keeping our status as a best practice agency and moving our agency forward each year.”

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Montgomery Business Journal November/December 2015

The Starke Agency Inc. is an insurance brokerage and risk management company established in 1929.

BEASLEY ALLEN NAMED TO LAW 360 ‘MOST FEARED PLAINTIFFS FIRMS’ LIST MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. has been selected for inclusion on the Law 360 Most Feared Plaintiffs Firms list for accomplishments in the past year.

The list identifies law firms nationwide that have secured the largest awards for their plaintiff clients. Eleven firms were selected for inclusion on the list.

“We are honored to be selected to the Law 360 Most Feared Plaintiffs Firms list,” Tom Methvin, principal and managing attorney for Beasley Allen, said in a statement. “Our attorneys and staff are dedicated to our firm’s mission of ‘helping those who need it most’ and make it our goal to secure justice for our clients.”

The 11 firms selected pulled in big victories in complex cases that have a wide impact on the law and legal business. Beasley Allen was selected based on cumulative wins over the last year, but three cases in particular set the firm apart from others and earned it a spot on the list:

Working alongside Georgia attorney Lance Cooper, the firm helped secure a settlement for the parents of Brooke Melton, the 29-year-old nurse who died in an accident in 2010 while driving her 2005 Chevrolet Cobalt.

The case was critical in uncovering the GM ignition switch defect. Beasley Allen secured a nearly $19 million verdict against truck dealer Empire Truck Sales, in favor of a man who became paralyzed when the freightliner he was driving spun out of control after Empire serviced the truck.

The most recent verdict was when a Georgia Federal court found in favor of Cheryl Bullock and awarded $8 million against Volkswagen AG in a sudden unintended acceleration crash that caused her serious injuries.

ALFA INSURANCE FIGHTS CANCER IN ALFA CARES CAMPAIGN MONTGOMERY â&#x20AC;&#x201C; Alfa Insurance honored fighters and celebrated survivors of all types of cancer in October with its Alfa Cares campaign.

Throughout the month, employees participated in numerous events and memorials at the corporate office and at more than 320 service centers in Alabama, Georgia and Mississippi to raise money for the American Cancer Society (ACS). Alfa Insurance has pledged to match up to $25,000 in donations through the Alfa Foundation.

president of marketing services for Alfa, said in a statement. â&#x20AC;&#x153;The donations from our co-workers, customers and the company itself will be a tremendous help in funding research and providing resources for cancer patients.â&#x20AC;? n To submit your business news for publication, email a press release to editor@montgomerychamber. com. Montgomery Area Chamber of Commerce Members only.

â&#x20AC;&#x153;As a cancer survivor, I am proud to work alongside others who recognize the struggles of fighting cancer and who are willing to support the ACS,â&#x20AC;? Carol Golsan, senior vice

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November/December 2015 montgomerybusinessjournal.com

69

MEMBER NEWS

MEMBERS ON THE MOVE REGIONAL MEDICAL CAMPUS NAMES ADMINISTRATION DIRECTOR MONTGOMERY – Todd B. Smith has been named the director of administration and fiscal affairs for the Montgomery and Selma campuses of the Montgomery Regional Medical Campus of the UAB School of Medicine.

Todd B. Smith

He is replacing Valerie Johnson Treat, who left the School of Medicine after 25 years of service.

Smith was most recently serving as an administrator in the UAB Provost Office. He began his career in health care administration at the Mobile Infirmary, where he was manager of cancer services for that institution.

In 2001, he began his service to UAB as research administrator and administrative director for the departments of radiology and pediatrics and the division of preventive medicine. He subsequently served as the senior administrator for the UAB School of Optometry from 2012 until assuming his current role in the provost office. Smith also is an adjunct instructor in the UAB School of Health Professions and the UAB School of Nursing.

Smith, who is a graduate of Sidney Lanier/ ALABAMA NEWS Loveless Academic NETWORK Magnet Program High, HIRES CHIEF received a bachelor’s METEOROLOGIST degree in nursing MONTGOMERY – from Auburn University Alabama News Network at Montgomery. After has announced that Shane completion of a master’s Shane Butler Butler has been hired as degree in business chief meteorologist. administration degree from UAB, he also received a master’s degree in Butler, a native of Central health administration from UAB in Alabama, has more than 25 December of the same year. Smith years of experience in weather received a doctorate degree from the forecasting, making him the most UAB Schools of Health Professions experienced TV meteorologist in the and Business.

Montgomery market.

TRUSTMARK ANNOUNCES BRANCH MANAGER MONTGOMERY – Trustmark has named Heather Phillips as branch manager at the Montgomery main office.

Heather Phillips

She has nine years of experience in the financial industry in various banking roles, including personal banker, relationship banker, market leader and mortgage loan officer.

“Heather is a welcomed addition to our Trustmark family,” Trustmark Montgomery Metro Retail & Commercial Banking Manager Tod Etheredge said in a statement. “We look forward to drawing from her banking knowledge and expertise.”

She received a bachelor’s degree in business administration from Troy University.

“I’m excited to finally be coming home,” Butler said in a statement. “I will enjoy forecasting the weather on CBS 8, ABC Montgomery and the other Alabama News Network stations and reconnecting with the people of this area.”

Butler comes to Alabama News Network from WRDW, the CBS affiliate in Augusta, Ga., where he was chief meteorologist for six years. Previously, he worked as chief meteorologist for stations in Lynchburg-Roanoke, Va., Huntsville and Atlanta.

He also worked as a meteorologist for stations in Birmingham and Jacksonville, Fla. Early in his career, he worked in Dothan and for WSFA in Montgomery.

Butler was born in Montgomery and grew up in Elmore County. He is a graduate of Elmore County High School and Troy University. He received his broadcast meteorology certification from Mississippi State University.

He has won numerous awards over the years, including “Best

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Montgomery Business Journal November/December 2015

Weathercaster” from The Associated Press in Alabama, Georgia and Virginia, and has been nominated for an Emmy Award.

Butler’s forecasts are weeknights on the Alabama News Network at 5 p.m., 5:30 p.m., 6 p.m. and 10 p.m. on WAKA CBS 8 and WNCF ABC Montgomery as well as 9 p.m. on WCOV Fox 20.

ASE Credit Union through major changes, including opening the credit union’s community charter, which opened up membership from just Alabama state employees to anyone; expanding the locations to include Wetumpka, Millbrook, downtown Montgomery and EastChase in Montgomery; and increasing ASE’s asset size by 220 percent.

“My affiliation started in 1989 when I became a director on the board, and later ALABAMA STATE became the CEO in EMPLOYEES’ 1999,” McHenry CREDIT UNION said in a statement.

NAMES CHIEF “Throughout my EXECUTIVE OFFICER tenure with this great credit union, I have MONTGOMERY – Jared enjoyed working with Jared Freeman Freeman has been named our members and being chief executive officer for the a part of the progress we have Alabama State Employees’ Credit made together.”

Union (ASE Credit Union).

Freeman, who graduated from the University of Mobile with both undergraduate and graduate degrees in finance, was chief operations officer at Guardian Credit Union prior to being hired at ASE Credit Union.

“For 61 years, ASE Credit Union has provided excellent service to both its members and employees,” Freeman said in a statement. “I look forward to continuing that tradition of great member service while bringing new ideas and perspectives to keep ASE on the path of success.”

ASE Credit Union was established in 1954 and is affiliated with 5,000plus shared branching service centers nationwide.

CONTINUED ON PAGE

72

He replaced Ned McHenry, who retired after 26 years with the credit union. McHenry assisted in leading

November/December 2015 montgomerybusinessjournal.com

71

MEMBERS ON THE MOVE FROM PAGE

71

RIVER BANK & TRUST ADDS VICE PRESIDENT MONTGOMERY – Billy Whigham has been hired

by River Bank & Trust as vice president and relationship manager.

He will be based at the bank’s East Montgomery office on Halcyon Park Billy Whigham Drive. Whigham, who has 15 years of experience, specializes in wealth management and private banking. He graduated with a bachelor’s degree in business administration from Troy University.

River Bank & Trust is a locally owned and operated community bank with offices in Alexander City, Montgomery, Prattville and Wetumpka.

BRANTWOOD CHILDREN’S HOME NAMES EXECUTIVE DIRECTOR MONTGOMERY – Gerald Jones, who has been with Brantwood Children’s Home for 20-plus years, has been named the executive director.

He most recently was the interim executive director and prior to that was youth services director for nine years.

Gerald Jones

“During my tenure here, I have seen considerable growth and expansion,” Jones said in a statement. “Also, I have seen so many of our children, now adults, go on to the successes they were destined to be. It is with that knowledge that I anticipate

72

Montgomery Business Journal November/December 2015

continued growth and strength in our family. Together, we will give hope to those currently in our care and those becoming a part of our family soon.

I am thankful to be a part of this great organization.”

develop leaders committed to honor, scholarship, service and the pursuit of excellence. Jay is the embodiment of MA’s mission and core values and we look forward to his leadership.”

Spencer’s appointment was the result of a nationwide search that took into consideration critical input from The Montgomery Academy MONTGOMERY school community including ACADEMY HIRES parents, teachers, HEAD OF SCHOOL students, alumni and MONTGOMERY – administration. “The James L. Spencer IV school retained a has been named the nationally-recognized head of school for The search firm (that) Montgomery Academy. identified numerous qualified Jay Spencer His starting date is June 1. applicants from across the United States,” Temple Millsap, “I am honored to be called to serve search committee chairman and such a fine institution as head of school,” Spencer said in a statement. 1974 graduate of The Montgomery Academy, said in a statement.

“My family and I are excited to be making this move. I was impressed at how genuine and dedicated everyone was during my brief time on campus, and I look forward to developing strong and lasting relationships over the coming years.”

PALOMAR INSURANCE CORP. HIRES ACCOUNT MANAGER MONTGOMERY – Palomar Insurance Corp. has hired Amanda Bechard as an account manager.

Spencer, who will become the eighth head of school, is currently Amanda Bechard the director of studies She began her career in at The Hill School in Pottstown, 2003 in Montgomery, specializing Pa., from which he graduated in in property and casualty insurance.

1984. He received a bachelor’s Bechard has held the designation degree in electrical engineering of Certified Insurance Service and mathematics at Vanderbilt Representative since 2007.

University in 1989. Spencer received Palomar Insurance Corp. is an a master’s degree in electrical insurance brokerage and risk engineering from Vanderbilt in the management consulting firm. same year. He served for the next 20 years in the U.S. Navy as a submarine officer.

“We believe we have made an excellent choice in Mr. Spencer,” Ronnie Brown, president of the board of trustees and 1992 graduate of The Eden Thornton Montgomery Academy, said in a statement. “Our mission at The Montgomery Academy is to

JACKSON THORNTON NAMES SENIOR MANAGER MONTGOMERY – Jackson Thornton has named certified public accountant Eden Thornton as senior manager.

With more than 20 years of experience, Thornton will focus primarily on tax and assurance services for closely held businesses and the construction industry. She is a graduate of Troy University.

Jackson Thornton is a certified public accounting and consulting firm.

VETERAN FINANCIAL ADVISER JOINS RAYMOND JAMES AS CONTRACTOR MONTGOMERY – Veteran financial adviser Sam Chambers has moved to the independent channel of Raymond James Financial Services in Montgomery as a financial adviser and branch manager of a new firm he is helping establish.

Chambers has 21-plus years of experience in the financial services industry. His career began in 1993 at Morgan Keegan & Co., which was later acquired by Raymond James.

He served as branch manager and managing director there from

2002 through 2014 before stepping down to help develop a new independent firm.

“After thoughtful consideration, I have decided that moving to the independent contractor model with Raymond James is a natural progression in my career while simultaneously creating a new, more entrepreneurial business model,” Chambers said in a statement.

COLONIAL COMMERCIAL REALTY ANNOUNCES NEW EMPLOYEES MONTGOMERY – Colonial Commercial Realty announced three additions to its staff.

Casey Williams, who has 18 years of experience, is the new facilities manager. David Peden is the new operations manager as well as a leasing agent.

He has about eight years of experience in sales and management.

The office is at 4209 Carmichael Road.

David Peden

Larry Harvill joined the firm as a leasing and sales broker. He has about 30 years of experience in appraisal, consulting, development and brokerage. n

Casey Williams

Larry Harvill

CHAMBER NEWS

RIBBON CUTTINGS & GROUND BREAKINGS

CICI’S PIZZA

A PLUS CONSULTANTS, LLC

URBAN COOKHOUSE

981 Ann Street • Montgomery, AL 36107 334-386-3086 • www.cicispizza.com Patrick Parker-General Manager • Restaurants-Pizza

520 Melanie Drive • Montgomery, AL 36109 334-546-6726 • www.aplusconsultantsllc.com Audrey White-Owner • Consulting Services

7712 EastChase Parkway • Montgomery, AL 36117 334-239-7801 • www.urbancookhouse.com Will Gillespie-Owner • Restaurants

November/December 2015 montgomerybusinessjournal.com

73

CHAMBER NEWS

NEW MEMBERS ADVERTISING AGENCIES

ELECTRIC CONTRACTORS

HOTELS/MOTELS

RESTAURANTS-FINE DINING

THE FINKLEA GROUP, INC. R. G. Finklea 300 North Dean Road, Suite 5-193 Auburn, AL 36830 337-799-7842

MR. ELECTRIC Dan Black 5965 Monticello Drive Montgomery, AL 36117 334-523-2200

QUALITY INN & SUITES Dan Patel 1401 Eastern Boulevard Montgomery, AL 36117 334-277-1656

LA JOLLA RESTAURANT Lee Beatty 8147 Vaughn Road Montgomery, AL 36116 334-356-2600

EMPLOYMENT AGENCIES

INDUSTRIAL EQUIPMENT AND

SERVICE STATIONS

ASSOCIATIONS/NON-PROFIT

ALABAMA KIDNEY FOUNDATION, MONTGOMERY CHAPTER Renae Thompson P. O. Box 240294 Montgomery, AL 36124 334-241-0003 CHURCHES/MINISTRIES

PILGRIM REST BAPTIST CHURCH Zack Buckner 1550 East Washington Street Montgomery, AL 36107 334-265-1807 CONSULTING SERVICES

INTERNAL AUDIT CONSULTANT Victor L. Lesher 7016 Watchman Circle, Apt. A Montgomery, AL 36116-1353 334-801-9002 RIVERWOOD ASSOCIATES Scott Luton 1624 White Oak Cove Logansville, GA 30052 678-296-5268 DENTISTS

CARMICHAEL DENTAL CARE Judy Savage 4146 Carmichael Road, Suite D Montgomery, AL 36106 334-270-9924

WARREN AVERETT STAFFING & RECRUITING, LLC David Salters 3815 Interstate Court Montgomery, AL 36109 334-271-2200

THE LILLY COMPANY Michael Popwell 4217 Troy Highway Montgomery, AL 36116 334-271-5650

FINANCIAL PLANNER/ADVISOR

LANDSCAPING/LAWN SERVICES

EDWARD JONES, LAUREL CALLAWAY Laurel Callaway 4822 Woods Crossing Montgomery, AL 36106 334-270-8377

VINSON LANDSCAPING & MAINTENANCE Jeremy Vinson 1709 Hillwood Drive Montgomery, AL 36109 334-202-3322

FINANCIAL SERVICES

NAIL SALON

PARAGON ADVISORS GROUP, LLC Brian H. Belsterling P.O. Box 2307 Montgomery, AL 36102 334-676-1918

ROYAL NAILS & SPA Andy Nguyen 3177 Taylor Road Montgomery, AL 36116 334-356-5688

FITNESS TRAINING

PHYSICIANS-SURGERY

UNLEASHED POTENTIAL FITNESS Keon Addison 8812 Templeton Court Montgomery, AL 36117 334-868-0796

MONTGOMERY SURGICAL CENTER, LTD Linda Westhoff 470 Taylor Road, Suite 100 Montgomery, AL 36117 334-284-9600

FURNITURE

HOLLEYâ&#x20AC;&#x2122;S HOME FURNISHINGS Ralph Holley 3490 Wetumpka Highway Montgomery, AL 36110 334-279-3101 HOME HEALTH SERVICES

OMICRON CARE Ryan Powers 445 Dexter Avenue, Suite 4050 Montgomery, AL 36104 334-310-1012

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SUPPLIES

Montgomery Business Journal November/December 2015

RESTAURANTS

URBAN COOKHOUSE Will Gillespie 7712 EastChase Parkway Montgomery, AL 36117 334-239-7801

MAPCO MART AND MY DELI STORE #7516 Robert Shankwitz 7670 Vaughn Road Montgomery, AL 36116 334-244-2092 MAPCO MART AND MY DELI STORE #7517 Robert Shankwitz 5550 Atlanta Highway Montgomery, AL 36117 334-277-8201 TRACTOR/TRAILER SALES & REPAIR

SUNSOUTH Ronnie Hayes 1975 Forbes Road Montgomery, AL 36110 334-834-6340 VIDEO PRODUCTION

G2 PRODUCTIONS, INC. Dale E. Gray 4255 Wetumpka Highway Montgomery, AL 36110 334-320-9333

ECONOMIC INTEL Unemployment

Civilian Labor Force SEPT p 2015

Area

AUG r 2015

Unemployment Rate SEPT r 2014

SEPT p 2015

AUG r 2015

SEPT r 2014

Montgomery MA

168,503

171,256

167,817

5.80%

6.40%

6.20%

Autauga County

25,252

25,613

25,111

5.10%

5.70%

5.40%

Prattville City

16,509

16,719

16,332

4.90%

5.40%

4.80%

Elmore County

35,969

36,530

35,843

5.00%

5.50%

5.30%

3,911

3,949

3,880

11.70%

12.50%

12.40%

Montgomery County

103,371

105,164

102,983

6.00%

6.70%

6.50%

Montgomery City

91,116

92,691

90,688

6.20%

6.80%

6.60%

532,573

538,560

528,720

5.40%

5.90%

5.50%

92,116

93,532

91,740

6.90%

7.60%

7.30%

208,243

207,821

207,172

5.20%

5.90%

5.60%

90,339

90,308

89,612

5.60%

6.30%

5.60%

180,868

182,176

181,868

7.00%

7.60%

7.20%

84,778

85,353

85,300

7.30%

7.80%

7.50%

2,147,772

2,159,609

2,133,941

5.90%

6.50%

6.20%

156,607,000

157,390,000

155,903,000

4.90%

5.20%

5.70%

Lowndes County

Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

CHAMBER NEWS

SALES TAX

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2014 benchmark.

SEPTEMBER 2015

SEPTEMBER 2014

Montgomery County

$3,431,678

$3,319,856

City of Montgomery

$8,008,042

YEAR OVER YEAR % CHANGE

YEAR OVER YEAR % CHANGE

YTD 2015

YTD 2014

3.37%

$31,961,474

$30,599,742

4.45%

$8,193,550

-2.26%

$76,165,157

$72,958,964

4.39%

$198,670

$173,640

14.41%

$1,566,039

$1,437,775

8.92%

$1,694,148

$1,592,505

6.38%

$16,244,132

$15,198,975

6.88%

Autauga County

$651,012

$619,803

5.04%

$6,100,871

$5,834,887

4.56%

Elmore County

$198,004

$193,188

2.49%

$2,055,111

$1,901,392

8.08%

Wetumpka

$373,869

$464,043

-19.43%

$3,641,487

$4,256,256

-14.44%

Pike Road Prattville

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 2015 thru current month.

November/December 2015 montgomerybusinessjournal.com

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HYUNDAI SALES VEHICLE

SEP 2015

SEP 2014

YTD 2015

YTD 2014

Accent

3,640

3,662

48,625

46,405

Sonata

16,124

14,918

157,680

164,934

Elantra

20,724

18,848

193,962

176,403

Santa Fe

10,752

8,945

88,400

78,907

Azera

281

762

4,639

5,976

Tucson

7,925

3,589

41,076

36,958

Veloster

2,118

2,777

17,655

22,965

Veracruz Genesis Equus Total

0

0

0

1

2,239

2,248

24,423

22,313

212

261

1,730

2,596

64,015

56,010

578,190

557,458

Source: Hyundai Motor America

A Word from Leadership:

What a great year for the HCS Group Team!

You could not ask for a more loyal and dependable staff. After finishing FY15 deadlines on time; we are off to new and emerging FY16 projects. Just for starters, we begin our travel to Corpus Christi Army Depot and Red River TX, Anniston Army Depot and Ft. McClellan AL, Ft. Carson CO, Lackland AFB San Antonio, Eglin AFB FL, Lakenheath AFB United Kingdom and throughout the countries of Honduras and Colombia.

Thanks to the HCS Team and local Montgomery area support!

76

Montgomery Business Journal November/December 2015

8401 Crossland Loop Montgomery, AL 36117 334.277.6737 info@hcsgroupet.com

www.hcsgroupet.com

Building Permits

BUILDING STARTS

Building Valuations

SEPT 2015

AUG 2015

SEPT 2014

SEPT 2015

AUG 2015

SEPT 2014

New Construction

47

84

31

$8,951,200

$12,923,820

$2,214,000

Additions and AlterationsÂ

76

96

86

$11,998,582

$8,410,430

$11,493,302

Others

27

16

25

$485,312

$79,300

$95,000

Total

150

196

142

$21,435,094

$21,413,550

$13,802,302

Source: City of Montgomery Building Department

MONTGOMERY METRO MARKET HOME SALES SEPTEMBER 2015

AUGUST 2015

MONTH/MONTH % CHANGE

SEPTEMBER 2014

YEAR/YEAR % CHANGE

STATEWIDE SEPTEMBER 2015

Median Price

$135,000

$140,000

-3.57%

$140,000

-3.57%

$137,884

Average Price

$149,127

$155,773

-4.27%

$157,657

-5.41%

$165,975

2,848

2,956

-3.65%

2,723

4.59%

32,491

Months of Supply

6.6

7.1

-7.04%

7.3

-9.59%

7

Total # Sales

431

415

3.86%

372

15.86%

4,618

Days on Market

114

115

-0.87%

127

-10.24%

140

Units Listed

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

November/December 2015 montgomerybusinessjournal.com

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AIR FARES Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations.

DESTINATION

MGM

BHM

ATL

Baltimore (BWI)

$349

$267

$181

Boston (BOS)

$380

$361

$241

Charlotte, NC (CLT)

$273

$225

$332

Chicago (ORD)

$311

$272

$148

Cincinnati (CVG)

$330

$376

$230

Dallas/Ft Worth (DFW)

$310

$284

$153

Denver (DEN)

$379

$322

$271

Detroit (DTW)

$382

$317

$201

Houston (HOU)

$353

$282

$171

Indianapolis (IND)

$338

$338

$193

Las Vegas (LAS)

$395

$309

$248

Los Angeles (LAX)

$458

$414

$251

Memphis (MEM)

$334

$326

$317

Miami (MIA)

$327

$281

$152

Nashville (BNA)

$438

$406

$363

New Orleans (MSY)

$438

$367

$148

New York (JFK)

$382

$357

$295

Orlando (MCO)

$319

$212

$101

Philadelphia (PHL)

$376

$286

$103

Pittsburgh (PIT)

$362

$323

$243

St Louis (STL)

$328

$262

$221

Seattle (SEA)

$566

$469

$409

$2,603

$1,709

$1,516

Tampa (TPA)

$316

$194

$101

Washington DC (DCA)

$362

$243

$229

Seoul (SEL)

Date of travel: Dec. 15-20, 2015. Date of pricing: Oct. 11, 2015. Source: travelocity.com

MONTGOMERY REGIONAL AIRPORT STATS SEPTEMBER 2015 Air Carrier Operations

SEPTEMBER 2014

YTD 2015

YTD 2014

YEAR OVER YEAR % CHANGE

840

883

-5.0%

7,055

7,824

-9.8%

5,088

6,370

-20.1%

44,237

45,380

-2.5%

Enplanements

14,321

15,395

-6.9%

131,214

123,096

6.6%

Deplanements

14,134

15,470

-8.6%

128,533

124,315

3.4%

Total Passengers

28,455

30,865

-7.8%

259,747

247,411

5.0%

Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

78

YEAR OVER YEAR % CHANGE

Montgomery Business Journal November/December 2015

When a company becomes part of the fabric of the towns and cities where it does business, great things happen.

Ideas become realities. Enterprises get launched.

And people come together.

COMMUNITY Since our inception, service to the community has been an important part of who we are. Thatâ&#x20AC;&#x2122;s why our associates spend thousands of hours each year volunteering in our markets. From teaching financial education classes to offering resources to help businesses thrive, making communities stronger is our priority.

trustmark.com

Member FDIC

November/December 2015 montgomerybusinessjournal.com

79

Post Office Box 79 Montgomery, AL 36101