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Contents
21 14 6
Executive Editor’s Column
7
Calendar
8
Investor Profile: BlueCross BlueShield
10
Q&A with Ed Castile, Director of Alabama Industrial Development Training
14
Member Profile: Crosby Drinkard Group
16
Alfa Insurance Modernizes its Operation
20
CNHI Moves to Montgomery
21
Alley Station corporate rental unit
22
Business Buzz
26
Members on the Move
27
New Members
27
Ribbon Cuttings
28
Economic Intel
8
16
10
27
AUGUST 2010 August 2010 Montgomery Business Journal
3
THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER
Randall L. George EXECUTIVE EDITOR
Tina McManama MANAGING EDITOR
David Zaslawsky COPY EDITOR
Michelle Jones DESIGN
Copperwing Design COVER PHOTO
Heath Stone PHOTOGRAPHY
Jamie Martin ADVERTISING:
Robert Edmonds 334-221-7948 mbjsales @montgomerychamber.com ON THE COVER:
Jerry Newby, president and CEO of Alfa Insurance
Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post OfďŹ ce 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 issue of 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 2, Issue 8. POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.
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Montgomery Business Journal August 2010
August 2010 Montgomery Business Journal
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THE MAY 2010 NIELSEN SURVEY IS COMPLETED AND THE RESULTS ARE IN!
WAKA/CBS-8 NEWS WAS A BIG WINNER! CBS-8 NEWS AT 6 PM UP 60% CBS-8 NEWS AT 10 PM UP 176%
GLENN HALBROOKS
STEFANIE HICKS
DEE JACKSON
ASHLEY McDONALD
CBS-8 THIS MORNING UP 20%
EXECUTIVE EDITOR’S COLUMN When you hear the term “tolerance” what do you think of? If you’re like me, the word tolerance has a negative connotation. I tolerate that family member (by marriage) who talks about how wonderful they are... incessantly. But that does not mean I spend one minute more than I have to in their presence. That’s why the organizers of this year’s Diversity Summit built the event around the theme of appreciation rather than tolerance. On Thursday, Sept. 16, the Montgomery Area Chamber of Commerce will present its third-annual Diversity Summit: “Embracing Differences in the Workplace; Moving from Tolerance to Appreciation.” The day-long event will feature noted business executives with expertise in the area of diversity and inclusion. This year’s Diversity Summit will explore how diversity affects value judgments in the workplace, how certain workplace behaviors can limit success, how to improve your communication skills and how to increase market share by targeting diverse markets. You will also learn business strategies from the Vice President and Chief Diversity Officer of Monster Worldwide, parent company for leading online career property, Monster. Stephen J. Pemberton has led Monster’s efforts to help employers diversify their workforce. Under Pemberton’s leadership, the company’s revenue has increased 60 percent, and he has gone on to become one of the nation’s leaders on matters on diversity and inclusion. In 2008, Mr. Pemberton was named one of the Top 100 most influential AfricanAmericans in corporate America. Pemberton would most certainly agree that whether we’re talking about race, gender, culture, age or ability, there is something we can all learn from each other. There is something to appreciate in our differences.
TIM LENNOX
KAIT PARKER
CBS-8 NEWS AT 5 PM UP 20%
We hope you’ll come and be a part of this experience, and discover that not only can we all tolerate each other, but we can learn from each other and enrich our businesses and our communities in the process. To register for the 2010 Diversity Summit, visit www.montgomerychamber.com, or call Heidi Ellis at 240-6863. The event is $65 for Chamber Members and $75 for non-members. You can also be a Diversity Advocate, which comes with a table for eight, for $675.
JAMIE LANGLEY
JEFF SANDERS
ASHLEY McDONALD
And if you think you are that relative (by marriage) I mentioned above, I didn’t mean you.
CBS-8 NEWS WEEKEND UP 31%
Tina McManama, EXECUTIVE EDITOR MICAH HARRIS
6
JENNA DEERY
Montgomery Business Journal August 2010
STU McCANN
VICE PRESIDENT, MARKETING AND COMMUNICATIONS MONTGOMERY AREA CHAMBER OF COMMERCE
Calendar Montgomery Area Chamber of Commerce Events
AUGUST
SEPTEMBER
4
2
SMALL BUSINESS LOAN WORKSHOP Noon @ Small Business Resource Center 600 S. Court Street, Montgomery Registration: www.montgomerychamber.com
11 26
60 MINUTE COFFEE Sponsored by Aronov Realty Management, Inc. 8 AM @ Eastdale Mall 1000 Eastdale Mall, Montgomery Free event, exclusively for Chamber Members BUSINESS AFTER HOURS Sponsored by Dreamland Bar-B-Que 5 PM @ Dreamland Bar-B-Que 101 Tallapoosa Street, Montgomery Free event, exclusively for Chamber Members
Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention and Visitor Bureau
AUGUST 14-17 20-22 30-SEPT2
Alabama Governor’s Conference on Tourism
14 16
Buckmaster Expo Air Force Information Technology Conference
SEPTEMBER 7-10
8
Alabama Retired State Employees Association Annual Meeting
16-18
Now Generation Alliance Fellowship National Conference
19-22 29-30
Alabama Airport Conference Joint Leadership Development Conference
22 23 28
ITC GOLF TOURNAMENT 8 AM @ Robert Trent Jones Golf Trail, 2600 Constitution Avenue, Prattville Registration: www.montgomerychamber.com
60 MINUTE COFFEE Sponsored by Renaissance Montgomery Hotel & Spa at the Convention Center 8 AM @ Renaissance Montgomery Hotel & Spa at the Convention Center 201 Tallapoosa Street, Montgomery Free event, exclusively for Chamber Members CHAMBER 101 Sponsored by Heartsill Payroll Professionals 8 AM @ Montgomery Area Chamber of Commerce 41 Commerce Street, Montgomery Registration: www.montgomerychamber.com DIVERSITY SUMMIT Sponsored by Alabama State University 9 AM @ Renaissance Montgomery Hotel & Spa at the Convention Center 201 Tallapoosa Street, Montgomery Registration: www.montgomerychamber.com/diversity LUNCH WORKS ETIQUETTE SERIES Noon @ The Small Business Resource Center 600 S. Court Street, Montgomery Registration: www.montgomerychamber.com BUSINESS AFTER HOURS Sponsored by Jackson Hospital 5 PM @ Jackson Hospital 1725 Pine Street, Montgomery Free event, exclusively for Chamber Members BUSINESS TAXATION WORKSHOP 3 PM @ The Small Business Resource Center 600 S. Court Street, Montgomery Free event, open to the public BUSINESS TAXATION WORKSHOP 6 PM @ The Small Business Resource Center 600 S. Court Street, Montgomery Free event, open to the public
August 2010 Montgomery Business Journal
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Investor ProďŹ le
Larry Chapman, BCBS of Alabama district manager.
THECARINGCOMPANY BlueCross BlueShield of Alabama and its employees give back to the community by David Zaslawsky
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Montgomery Business Journal August 2010
Y
BLUECROSS BLUESHIELD OF ALABAMA
When a BlueCross BlueShield of Alabama district manager talked about his employees’ devotion to community service in the River Region, he sounded like a proud father. Larry Chapman had nothing but the highest praise for the company’s River Region employees. “Each person here has the attitude of giving back and I see it firsthand,” Chapman said. “It’s exciting to see their desire to give back to local organizations; their church or their neighborhood or community. “Every one of the employees here in the River Region is involved with some organization somehow. For instance, we have employees involved with the Junior League; we have employees that are involved with the Alabama Shakespeare Festival; we have employees that are involved with the Jimmy Hitchcock Foundation; employees that are involved with the YMCA; employees that are involved with FCA (Fellowship of Christian Athletes); Rotary Club; Kiwanis Club; and the list goes on and on.” Those individual efforts are tied to the company’s community involvement. “BlueCross BlueShield of Alabama has long been known as ‘The Caring Company’ and that’s not just some catchphrase used in an ad campaign,” Chapman said. “One of the corporate values that guides our company is to give back to the community. “We stress to all our associates the importance of contributing their personal time and resources just as we utilize our corporate strengths and resources to positively impact the communities that we serve. Our corporation is one of the oldest and largest in the state and we take very seriously the responsibility that comes with that distinction to give back to the community.”
The company has been operating in the state since June 1936, first as Hospital Service Corp. and in 1952 as a BlueCross plan. BlueCross BlueShield of Alabama first opened a Montgomery sales and service office in 1974. With nearly 3,800 employees statewide, BlueCross BlueShield of Alabama is truly a large corporation, which insures 2.3 million Alabamians. The company provides health and dental insurance to employer groups, individuals and the senior market. Through its affiliate Cahaba Government Benefit Administrators, the firm administers Parts A and B Medicare benefits in Alabama, Georgia and Tennessee. “We underwrite about 34 percent of our business and we also administer plans for groups who are self-funded,” Chapman said. He said those self-funded employer groups pay their claims “and then they have a small administration fee and I mean very small.” The company is a fixture in the state. In 2009, the firm processed more than 75 million claims in an average of 1.6 days. Last year, the customer service department answered 7.1 million-plus phone calls and more than 100,000 e-mails. For every premium dollar received, 93 cents is paid out in health care benefits. The firm was recognized by ComputerWorld as one of the “100 Best Places to Work in IT.” For the third straight year, the company was recognized by a major customer satisfaction marketing research firm for the highest customer satisfaction in the Southeast.
NUMBER OF EMPLOYEES IN THE RIVER REGION
32
NUMBER OF EMPLOYEES STATEWIDE
ABOUT 3,800
NUMBER OF INSURED PERSONS IN ALABAMA
2.3 MILLION
NUMBER OF INSURED PERSONS NATIONWIDE
3.2 MILLION
NUMBER OF CONTRACTS IN THE RIVER REGION
116,436
NUMBER OF MEMBERS SERVED IN THE RIVER REGION
191,508
hospital-acquired infections by 33 percent and in 2009, saved an estimated 316 lives. “Being a good corporate citizen means doing our part to make sure the River Region is successful; assisting the Chamber, local governments and any initiatives that would improve the quality of life for the people in the River Region,” Chapman said. Twenty years ago, the company established The Caring Foundation, which is supported by employees. Nearly 300 charities received support through The Caring Foundation last year. When it comes to the United Way campaign, employees contribute their fair share, but that amount is twice what the typical donation is. BlueCross BlueShield of Alabama employees donated nearly $3 million to last year’s United Way campaign.
The company has been ranked in top three PPOs (preferred provider organization) nationwide by Consumer Reports four times in the last seven years, including No. 2 in 2009. The firm is heavily involved with hospitals, physicians and various community organizations to reduce health care costs and promote healthier lifestyles. Some of those projects include health and wellness initiatives and the Alabama Hospital Quality Initiative, which reduced the number of
August 2010 Montgomery Business Journal
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SUPER-SIZED INCENTIVE Q&A WITH ED CASTILE Ed Castile is the director of Alabama Industrial Development Training (AIDT). He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: What are your responsibilities as AIDT director?
Alabama Industrial Development Training Director Ed Castile oversees an annual budget of $30 million.
Castile: Our agency was created to be an incentive to help recruit business to the state. The incentive is to recruit, screen, assess and train the new work force for those businesses at no cost. AIDT, the agency I’m responsible for, is charged with that job – to help sell the state; to present our case as a state; and being able to provide a very good quality work force. We work alongside the governor’s office, the governor and the Alabama Development Office and sometimes we go around the world and help recruit business. We present the work force or the job training incentive. Obviously, once you get the business then you have to deliver on what you have committed. We do that. MBJ: How many employees to you have? Castile: We have roughly 140 full-time staff spread out statewide. We have roughly 200 part-time people who work for us. MBJ: Instructors? Castile: Yes, trainers. If they are an expert in some type of metal working or maybe they are a welder, we hire them on a parttime basis as a trainer. A lot of our work is coordinating training; and developing materials for (training). Generally, it’s customized to each project. We’ve worked with Mercedes and Hyundai. They don’t make cars the same way – two totally different projects although they are both automotive they have a whole different philosophy how you build a car and how you train people to build a car. MBJ: When you say you help sell the state, you are working very closely on economic development projects. During a recruiting trip, do you tell a prospect this is what I can do and we can train as many workers as you need?
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Montgomery Business Journal August 2010
Castile: That’s exactly right. Ellen McNair with the Montgomery Area Chamber of Commerce or any members of her staff or Randy George could call this afternoon and say, ‘We have a prospect we are meeting Friday morning for breakfast and we need you or someone from AIDT to come and make a presentation.’ If the (prospect) announces they are coming to the state, then again what we told them we would do – what we promised that we could provide – we obviously have to deliver that. MBJ: What is a typical presentation? What do you tell prospects about AIDT? Castile: Let’s say the prospect will hire 100 people. We will lay out for them how the AIDT service can best help them meet that need. That’s recruiting and screening; working with the company to develop specific materials. Sometimes there will be several meetings with a prospect. They will come by to see if Montgomery is a viable place. On that trip they may call and say, ‘Hey, Ed let’s have lunch and answer a few questions about AIDT.’ The next meeting when they come back they may have their HR person or the person who is going to be responsible for this particular site out of corporate for any of the hiring or work force issues. That person is the one I’m generally going to sit down and deal with. They are truly trying to understand, ‘does Montgomery, Ala., or does the State of Alabama have what it takes for us find the best work force we can to be a success?’ This work force matter – this issue of finding the right people – has become extremely important as they put their business model together and hoping to be a success in Montgomery or in the state. MBJ: How do prospects respond when you inform them about all that AIDT performs? Isn’t it eye-opening to those prospects? Castile: It is. What we’ve done during my time here and it’s been almost 17 years, is really worked hard to develop a program that is – what I would say is, jaw-dropping – when we sit in front of a prospect. We want them to know and understand in that first
meeting the kind of impact we’re going to have on their project. One of the things we’ve done – our logo has ISO 9001:2008. That is a quality credential. We are the only organization in the country – government job specific training program – that has that quality designation. When we sit in front of a prospect and they see our logo – their customers generally make them get those kinds of credentials for quality. When they see that logo – it’s like you joined the country club set. They say, ‘Oh, my gosh. You obviously know what it takes to do this kind of work – quality system of management.’ That has been one of our most impacting things we’ve done in last years to improve our program. It’s helped us a lot with new companies – with any company as far as that goes. We’ve done that as an agency so we can continuously improve our program. That’s what it is really all about – continuously improving your process and your program. In their business, it is continuously improving their product and their customer base. We went after that designation several years ago and we did that mainly so we would continuously improve our program and not let it get stale and old. You’re working 20 years back and the world is 20 years advanced. MBJ: Where do you see the agency in five years? Castile: We think we’re pretty good at this, but what we want to be is a quick response – but not just a quick response. We want to be on the cutting edge of technology with the tools we need to do our job: the digital world and photography. We do a TV show every week – On the Job. The world that creates that is changing rapidly. The services we provide there and the training materials we develop and everything we do – we want to be on the leading edge of those things so we can be more responsive to these customers. Because of the economy, there are less companies looking at a new location in Alabama. When they walk through our state, we want them to have to work hard to not locate here. We want them to (look at us) as their easy answer and the others won’t even compare to use. If we can reach that kind of goal in the next few years – it’s a lofty one and the challenge will be to stay there. We have been ranked No. 1 in the country several times and have been in the top two for four or five years. We’ve been leading the country in a lot of ways in this business, and honestly there is always the challenge to maintain that. That’s why our ISO credential was so important. Our objective is to be more customer-friendly, easy access and easy to work with. We want them (companies) to have an experience that they won’t think about us being a government agency. It won’t even cross their mind. When you work with AIDT, you’re working with a business type of agency. We’ve worked hard for that for a long time and we feel like we are in pretty good shape with it, but as in anything there is always room for improvement and there are always ways to do things better. Almost everybody on this staff – and I can say this with great confidence, 140 people – are good creative people and they do not get stuck in a rut. They are creating all the time: thinking of the next best thing; how can we better serve the trainee; how can we better serve the company; and when you have that kind of mentality in an organization, being the leader is an easy job. MBJ: Would you please elaborate about the TV show? Castile: It’s called On the Job. Right now it comes on APT (Alabama Public Television) and Raycom digital channel in Montgomery. It’s a half-hour show. On APT, it comes on Sunday at 12:30 and on Tuesday night at 9:30. It is produced here. We have a staff that produces, directs, acts, provide the voice-overs. Those are full-time staff. MBJ: How big is the staff for the TV show? CONTINUED ON PAGE 12
August 2010 Montgomery Business Journal
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CONTINUED FROM PAGE 11
Castile: There are six or seven. We have a host, Bobby Jon Drinkard. He was almost a survivor on Survivor twice. He is a very recognizable young man. He is a Troy native and graduate of Troy University. He has been our host for three or four years. The show is (based) on what we do. If it’s automotive, then there is going to be several shows on how cars are made, how they are serviced, what the jobs are, how much pay is possible. In addition to that part, how do you get the training and how do you get the education? In that 30 minutes, we try to tie all those pieces together and Bobby is guiding the audience through that process. MBJ: Isn’t AIDT developing some other projects? Castile: Up north, we’re developing what’s called a Robot Technology Park and in the south, a Maritime Training Center. You’ll see a good bit of our show devoted to those two things as they begin to open. We are building them now. MBJ: What is AIDT’s annual operating budget? Castile: We have been prorated – we lost money – we’re just under $34 million. In our heyday, we were about $42 million before the (financial) crisis hit. MBJ: Could you put a dollar figure on what AIDT does in a large project – an automotive manufacturer project? Castile: The Hyundai training package for the 2,000 jobs that were committed, the state through our program committed $54 million to help them start that plant. For Mercedes, the C class (production) that was just announced, it is just under $50 million. That’s for big projects. Most projects that we work … let’s say it’s 100 jobs. We would typically spend $1,000 a job if you look at the whole package. But the value to the customer is really about three times that. MBJ: Why is that? Castile: If they had to go buy that in the market, it would cost them about three times that to get somebody hired. When it’s at no cost to you as a new company coming in – there is a cost – it would be wrong to say there is no cost because Alabama tax dollars are paying for it. The incentive for the new company is that we will assist them and
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DOS AND DON’TS FOR JOB APPLICANTS by David Zaslawsky There are some basic dos and don’ts when it comes to training for a new job. Do be on time; do attend all the training sessions; and be engaged while you are there. What about some don’ts? Well, don’t trash a previous boss, current boss or the new boss you hope to work for. Don’t say things during a smoking break or at the water cooler that may get you into trouble.
“For the most part, we are looking for trainable people. We’ll never train for every skill. If they can think a little bit for themselves and problem solve a little bit and just use some common sense – that’s who they (employers) want.” Sometimes it pays not to have experience. That was the case when MercedesBenz came to Alabama. AIDT did not have to undo bad habits because nobody in the state had built cars.
It’s pretty simple – watch what you say. That’s important because the employers often attend those training sessions for their prospective job applicants, according to Ed Castile, director of Alabama Industrial Development Training (AIDT).
“When I was in Nashville and we got Saturn, the training program was untrain them (job applicants) from the GM thinking and retrain them for the new Saturn thinking. That was the mantra.”
What are employers looking for? Castile said that companies seek high school graduates or job applicants with additional schooling or perhaps a two-year degree. They are also looking at a specific type of experience and uninterrupted work history.
Castile said that one of the state’s advantages is the work force. “If we hear anything out there, it’s about how good the work force is in our state and when the governor makes those comments it’s not just politics. When it comes to doing a good day’s work for a day’s pay – we have them.”
Just those requirements usually trim about half of the 1,000 prospects competing for 100 jobs, Castile said. Those who have been selected for a training spot eliminate themselves from hiring by showing up late or not attending training sessions. The AIDToperated training sessions are held at night so people with daytime jobs may participate.
Castile: That’s an excellent point. There are several layers involved.
Castile warns job applicants do not quit their daytime job before they are hired. “If they go to training for a few weeks; if they come every night; if they are on time; if they have a good attitude; if they are active in class; and if they do well on any assessments, they will likely be hired,” Castile said.
we’ll provide that value at no cost to them. The good news about that incentive is you are investing not in the company, but you’re investing it in the trainees because you are training them for something new. The training is spent on them. Now they have more skills and now they are more marketable if they have to go look again (for another job). MBJ: When those workers take a higher-paying job, then someone else moves up to take their job at an increased salary and so on.
MBJ: How long would it typically take to train 100 workers? Castile: Theoretically and ideally, it’s about 10 weeks. We have yet to work a project that fits that exact amount of time. But theoretically, to do everything from that first meeting to when they start hiring and then there is training after they are hired is 10 weeks. Ten weeks to get ready, to get in business, to get your ads built for recruiting people, to get your training materials developed because you probably have to go somewhere and sit with experts. We don’t know how to build anything here other than what we have learned from these companies. If it’s how to build a Hyundai – we have to go talk to someone who knows how to build a Hyundai in Korea or wherever that is. In that space of time, a lot of things have to occur. We do all of our printing here. We are a full print shop. Once the company starts hiring, this (program) may go on for two or three years even for 100 people, depending on their timeline. If they are going to hire 100 people over several years, then we will stay with them until they hire 100 people.
Every time they want to hire 20 people, we will turn the spigot on and when they have hired their 20 people, we will turn the spigot back off. Next time they are going to hire 10 people or 15 people or 30 people, we’ll turn the spigot on. Each of our programs at each company is an individual hiring system. We call it the Pre-Employment Selection System. What that means is, depending on what the job is, in most cases there are all kinds of jobs. It’s not just a job. There is likely to be four of five different skill sets necessary. Some of them are very complicated or it’s the material handler. For every job, we will have some form of training to take that individual to the level they need to go to. MBJ: What are some of the different types of companies you have worked with? Castile: We’ll work with car folks. We do a lot of work in the aerospace business. We are very much involved in the EADS project the governor is involved in Mobile (competing with Boeing to replace Air Force refueling tankers). Virtual every announcement in the last 10 years, we have been a part of those. We are working on a project right now for Hausted. Once we get
a project, the real work starts and we have to deliver. The easy part is the selling job. MBJ: How many applicants do you typically need for a company bringing 100 jobs to the area? Castile: I’d love to say it’s 10 to 1, but it’s not. It’s more like 15 to 1. It depends on where you’re at: what part of the state; what kind of jobs are in the area already. Is this company going to pay better than the other ones because generally that gets a lot of looks? It also depends on the work force’s attitude and work ethic and things like that. We have gone into some parts of the state and just … the first time we ran an ad for Mercedes we got 67,000 applications for 20 jobs. MBJ: Wow. Castile: We quickly figured out how to put a system together. This is back in 1995 and I came in ’93. From that time until now we have consistently improved that process. You can bet, that first one was not pretty. It was like making sausage. But we got it down and we got the best that we could find. Those 67,000 (applicants) stayed in the system. Mercedes needed many more than
20 over time. We may have run an ad three times over two or three years. The reason we ran an ad the second time was that we wanted people to update their resumes. MBJ: How many applicants were there for Hyundai? Castile: About 30,000. The first hiring was about 2,000 jobs. The initial hiring was probably a couple hundred. The other group that helps us a lot with this is Alabama Career Centers. They are a key player in our process. MBJ: Talk about the activity you are seeing now compared to last year and previous years? Castile: In the last 18 months, we were looking at just under 15,000 people statewide (for jobs). Over the next two years to 36 months we may be back up to 18,000 to 20,000 jobs we have open. But back in our heyday before the (financial) crisis, we were probably at any given time looking at double that. •
August 2010 Montgomery Business Journal
13
Member Profile
Ron Drinkard and Cassandra Crosby formed the Crosby Drinkard Group in 2004.
Dynamic Duo Crosby Drinkard Group concentrates lobby efforts for local and county government by Jennifer Kornegay
“It’s just a perfect partnership,” said Cassandra Crosby, referring to the working relationship she shares with Ron Drinkard, the other half of the Crosby Drinkard Group.
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Montgomery Business Journal August 2010
Crosby’s statement capped off a long list of compliments streaming from Drinkard. “Cassandra is the most congenial person I’ve ever met. We’ve never had a real disagreement,” he said. “I’ve never had a better partner in anything.” Wide-open smiles and nods of agreement from both as the other spoke showed the sincerity of their remarks. The two equal parts of this lobbying duo simply become better when they are together. The Crosby Drinkard Group is a Montgomery-based lobbying and governmental affairs consulting firm. The Group represents its clients’ interests as they relate to issues and bills being considered by the Alabama State Legislature. It was formed in 2004 after Crosby and Drinkard first met while doing community service work. “We instantly clicked, and we did some lobbying together. After a year of that, we decided to officially join forces,” Crosby said. Both partners worked in other fields before getting into governmental affairs. Crosby was a state employee for 10 years and then started her own event-planning and fundraising business. “It was after I met Ron that I got interested in lobbying,” she said. Drinkard started as an accountant and then worked in banking for 26 years. While the partners have found who they work well with, they’ve also identified who they work well for. “We focus most on local and county government,” Crosby said. “It’s a specialty of ours and become a real niche,” Drinkard added. Working on behalf of county governments brings both challenges and rewards. “We deal with a smaller number of people,” Drinkard said. “But it can be difficult because we have very specific issues we’re advocating, and we’re working with so many different personal interests and personalities. You just have to find the right balance, and we have. This area has worked very well for us so far. And we’ve done well for our clients.” Indeed they have. In their first year together, the partners saw four of the bills they were promoting get passed. “That’s almost unheard of,” Crosby said. And every year since, they’ve gotten at least one bill passed. Doing well in their jobs probably stems from enjoying the job, as Crosby explained. “I like people, so this job is easy for me,” she said. “I really haven’t had a bad day yet. I’ve had a frustrating day, but not a truly bad one.”
CROSBY DRINKARD GROUP FOUNDING PARTNERS
CASSANDRA CROSBY AND RON DRINKARD YEAR FORMED
2004
PRIMARY SERVICE
CONSULTING AND GOVERNMENTAL AFFAIRS Drinkard finds fulfillment in the job too, but admitted that he’s not as even-keeled as Crosby. “I enjoy working with people and getting the opportunity to work with such a diverse group of people, but it can be hectic and frustrating. I can get wound up,” he said, “and Cassandra is a real stabilizing factor for me.” The fact that the two play off each other well is obvious, but it goes even deeper than their complementary temperaments. “We just balance out so well,” Drinkard said. “Between us, we’ve got gender, age and political affiliation covered. “ While their “perfect partnership” certainly plays a large part in the Group’s successes, Drinkard credited one more essential ingredient. “We respect each other,” he said. “That’s the real key. Without it, the rest wouldn’t work.” And despite the perception some may harbor of backstabbing and backroom deals as the norm down at the statehouse, both Crosby and Drinkard say they also really respect everyone they work with and for. “I think what we do is just like any industry,” Drinkard said. “There are all kinds of people, good, bad and indifferent, in everything. We’re just under the spotlight more. But we’ve surrounded ourselves with good people. Everyone we work with wants to do the right thing; they’ve got their hearts in the right place, even if we don’t always agree.” Crosby echoed her partner’s sentiments. “We keep everything upfront, and we are totally transparent,” she said.
August 2010 Montgomery Business Journal
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Jerry Newby is president and CEO of Montgomery-based Alfa Insurance.
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Montgomery Business Journal August 2010
Through the years, Alfa Insurance has made it a point to be innovative, proactive and responsive to its customers. But a few years ago, the company realized it was under more and more pressure to meet Wall Street expectations, and less and less able to invest in the future. Although they had done many things to create a state-of-the art facility – a 10,000 square foot daycare center in 1991, a massive cafeteria that feeds employees all day, an auditorium that seats 165, and a 134,000 square foot business processing center – the day-to-day operations consumed everyone’s efforts. “We have always run a very lean company and when I say lean I mean that what most of us have time to do every day is our regular job,” said Alfa Insurance President and CEO Jerry Newby. “Everybody had a full-time job and they were just making sure that the nuts and bolts got tightened every day and the oil got changed.” The result was Alfa fell behind in technology and offering some services. “We weren’t looking down the road,” Newby said. That coupled with the Wall Street mentality of hitting your numbers caused Alfa to hold off on costly improvements that would negatively impact quarterly earnings of those demanding stockholders. “One of the things that goes on in the country today is that everybody that owns stock wants an instant return,” Newby said. “Companies are not able to do the things that are going to make them better over the long term because they are concerned about their stock.” When the company went from a publicly held company to private in 2008, it was able to upgrade its technology and provide new services without stockholders looking over the shoulders of executives. Newby created a task force of corporate officers from accounting, marketing, corporate development, information technology and one of the firm’s outlying subsidiaries. The diverse group collaborated for nine months.
ALFA INSURANCE FACTS NUMBER OF EMPLOYEES IN MONTGOMERY
1,080 NUMBER OF EMPLOYEES AT THE CORPORATE HEADQUARTERS “They came up with some ideas, and that’s the foundation for our strategy going forward,” said Steve Rutledge, executive vice president for business development. “It’s an outstanding foundation and there was a lot of work behind it, but we’ve got to convert that into a long-term strategy for the company.”
923
Having someone in charge of that transformation was one of the recommendations from the task force. Newby turned to his chief financial officer at the time – Rutledge – to guide the transformation. Rutledge has been in his new position for about six months and is aggressively moving Alfa forward.
485
The company dissected how it did business and now is implementing a variety of services and products, which doesn’t come cheaply. The company has spent tens of millions of dollars and will be spending tens of millions of dollars more to catch up to the competition, and as Newby said, “get ahead of them.” The company appointed Walter Overby to spearhead their web efforts. The ultimate goal is to allow customers to get a quote and buy a policy online. This summer, Alfa customers will be able to review their policies and request changes online. The company now accepts a credit card for the website and call center, and by October will remove the fee for those transactions.
NUMBER OF EMPLOYEES IN THE STATE
2,260 NUMBER OF EMPLOYEES COMPANYWIDE
2,800 NUMBER OF AGENTS IN ALABAMA NUMBER OF AGENTS IN ALABAMA, GEORGIA AND MISSISSIPPI
639 NUMBER OF SALES OFFICES IN ALABAMA
252 NUMBER OF SALES OFFICES IN MONTGOMERY COUNTY
9 NUMBER OF INSURED VEHICLES OVERALL
982,029 NUMBER OF INSURED VEHICLES IN ALABAMA
668,768 NUMBER OF INSURED VEHICLES IN GEORGIA
53,336 NUMBER OF INSURED VEHICLES IN MISSISSIPPI
80,479 NUMBER OF INSURED VEHICLES THROUGH ALFA VISION (BRENTWOOD, TENN., OPERATIONS)
119,760
“The second phase will be taking a credit card and debit card anywhere Alfa does business in any of the service centers,” Rutledge said. “That’s the next step.”
NUMBER OF INSURED VEHICLES THROUGH ALFA ALLIANCE (RICHMOND, VA., OPERATIONS)
There also will be some limited service with handheld devices.
$75 MILLION-PLUS
“It’s extremely expensive to be the leader of a lot of this technology,” Rutledge said, “but with web development for example, we can see what others have done. We can do things quickly for a cheaper investment and get to a place that took (rivals) a lot longer.
$991 MILLION
It’s all about retaining customers and attracting new customers – especially younger people, who could be Alfa policyholders for decades. Those younger
CONTINUED ON PAGE 18
59,686 LOCAL ANNUAL PAYROLL PROPERTY AND CASUALTY WRITTEN PREMIUMS PROPERTY AND CASUALTY POLICIES/UNITS IN FORCE
1.4 MILLION LIFE INSURANCE IN-FORCE VALUE
$26.3 BILLION LIFE INSURANCE POLICIES IN FORCE
244,163 WIND/HAIL CLAIMS PROCESSED IN 2009
30,000 – WITH A TOTAL VALUE OF $180 MILLION August 2010 Montgomery Business Journal
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BUSINESS PROCESSING CENTER FACTS
> HANDLES 2.5 MILLION INTERNET TRANSACTIONS DAILY > TELEPHONE PROCESSORS SUPPORT 16,000 CALLS DAILY > MAIL DISTRIBUTION CENTER SENDS OUT 175,000-PLUS PIECES OF MAIL WEEKLY > CONTENT MANAGEMENT SYSTEM PROCESSES 1.4 MILLION DOCUMENTS MONTHLY FOR ELECTRONIC STORAGE > THERE ARE 30 MILES OF ELECTRICAL WIRING AND 11.5 MILES OF DATA CABLES > THE PEDESTRIAN BRIDGE BETWEEN THE BUSINESS PROCESSING CENTER AND THE MAIN CORPORATE BUILDING IS 532.5 FEET LONG AND 13.8 FEET WIDE. TEN TRIPS EQUAL ONE MILE. > THE COMPANY’S MONTHLY POWER BILL FOR THE CORPORATE HEADQUARTERS COMPLEX IS $110,000. Source: Alfa Insurance
CONTINUED FROM PAGE 17
customers are proficient at technology and are much less likely to talk to agents face-to-face or even on the phone. “We’re going to make it easier for the folks who do business with us and make it more convenient for them,” Newby said, “and we’re looking at reaching some customers we hadn’t ever reached before.” Because Alfa has nearly $1 billion of written property and casualty premiums, adding 1 or 2 percent to its already impressive 91.4 percent retention rating, means a significant revenue increase. “My philosophy is the first thing you want to do is take care of your customers – deliver that promise that you made with them,” Newby said. “You want to give them products that are useful to them at a competitive rate.
“The next thing that you have to do is take care of your employees because they are the biggest asset you have. They are out there delivering that promise to our customers. The third thing you have to do is be profitable so you can do one and two. It’s pretty simple.” Alfa is a financially strong company, rated A+ (superior) by A.M. Best Co., which rates the insurance industry. ‘We’re the largest property and casualty insurance company headquartered in the State of Alabama,” Rutledge said. “That’s important. We’re kind of a jewel. We want to compete and be here for a long time for this state and our sister states – Georgia and Mississippi. “If we can’t compete long term, then (Alabama residents) can go to some of the bigger players, but they won’t have a regional choice. We want to be here a long time.” •
‘RIGHT THERE WITH YOU’ by David Zaslawsky Alfa Insurance has no control over one of the key issues it faces – the weather. The company paid out about $56 million in claims from three spring storms this year, and now we’re in the heart of the hurricane season. “We’ve had a lot of high-frequency and high-severity storms over the last 10 years,” said Steve Rutledge, the company’s former chief financial officer who now is the executive vice president for business development. “These storms are constant.”
Alfa Insurance President and CEO Jerry Newby said the company has had almost $1.2 billion worth of storm damages the past six years. “That turns out to be $200 million a year and that’s a lot of money,” Newby said. Last year, storm-related damage in North Alabama was about $140 million, according to Rutledge. “The losses just on catastrophes is about half of our premium every year,” Rutledge said about homeowners’ policies. Still, Alfa is prepared to aid those who suffer stormrelated damages. With its mobile response units – a business office on wheels – Alfa quickly responds to those catastrophes. The company also built a 134,000square-foot business processing center at $250 a square foot to withstand a category 5 hurricane and a F3 tornado. The building, which is behind the main corporate headquarters, features 22,000 tons of steel, 775 tons of reinforced steel and three 30,000-pound generators. That building ensures that the company can continue operations no matter what. To communicate that, the company has launched a new marketing campaign. The slogan: “Right There With You.”
Top: Steve Rutledge, Executive Vice President of Business Development. Bottom: Alfa’s Mobile Response Units provide a mobile office for taking claims during times of high need.
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Montgomery Business Journal August 2010
ALFA, ALABAMA FARMERS FEDERATION SHARE PAST, PRESENT by David Zaslawsky When you walk inside Alfa Insurance’s corporate headquarters on South Boulevard, you notice the sign for Alabama Farmers Federation. That’s because the two separate entities – one a non-profit (the federation) and one a regional insurance powerhouse – are linked physically as well as historically and that close tie includes the president and CEO of Alfa Insurance – Jerry Newby, who is also president of the Alabama Farmers Federation. But the federation and Alfa do have separate staffs and keep a separate set of books. The federation’s employees work on the first floor of Alfa Insurance’s 350,000square-foot corporate headquarters and all but one of those employees work solely for the federation. If you want to buy Alfa Insurance in the State of Alabama, you have to be a member of the federation, and there are 423,355 members. Membership does have its advantages, including that opportunity to be an Alfa Insurance policyholder, but also access to a wide range of discounts on products and services. The federation also offers health and dental programs for individuals. The Alabama Farmers Federation started in 1921 as a farm organization in Auburn and is affiliated with the American Farm Bureau Federation. The Alabama chapter was formed to help promote agriculture through lobbying and research money as well as marketing initiatives. Farmers formed an insurance company because in the rural areas where there was no fire service, farmers could not get insurance on their homes and barns, according to Jeff Helms, director of communications for both the Alabama Farmers Federation and Alfa Insurance. Helms said the farmers pooled their money and promised not to file a claim that first year the insurance company was formed in 1946.
ALFA’S STRUCTURE ALFA INSURANCE’S TOP EXECUTIVES
EIGHT PROPERTY AND CASUALTY COMPANIES
JERRY NEWBY President and CEO
Alfa Mutual Insurance Co.
LEE ELLIS Executive Vice President of Operations
Alfa Mutual General Insurance Co.
STEVE RUTLEDGE Executive Vice President of Business Development HERMAN WATTS Executive Vice President of Marketing
Alfa Mutual Fire Insurance Co.
Alfa Insurance Corp. Alfa General Insurance Corp. Alfa Specialty Insurance Corp. Alfa Vision Insurance Corp. Alfa Alliance Insurance Corp. ONE LIFE COMPANY:
“Farmers were the first salesmen for this insurance company, going door-to-door and talking to their neighbors,” Helms said. That insurance company attracted non-farmers as well, and grew into today’s Alfa Insurance.
Alfa Life Insurance Corp. FOUR NON-INSURANCE COMPANIES Alfa Financial Corp. Alfa Properties Inc. Alfa Realty Inc. (Alabama) Alfa Builders Inc. (Alabama)
ALFA’S FOOTPRINT FEATURES PRIME REAL ESTATE IN RIVER REGION
FOUR AGENCY OPERATIONS: Alfa Agency Alabama Inc. General Agency
by David Zaslawsky
Alfa Agency Georgia Inc. General Agency
Across the bypass from Baptist Medical Center South, is the sprawling corporate headquarters of Alfa Insurance.
Alfa Agency Mississippi Inc. General Agency
This corporate giant is in 12 states with core operations in Alabama, Georgia and Mississippi. The other states are Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas, Kentucky and North Carolina. Alfa Insurance is comprised of eight property and casualty companies, one life company, four non-insurance companies and has four agency operations. One of the company’s non-insurance entities is Alfa Realty, which has developed some well-known projects in the River Region: Fairfield, Dexter Ridge, Grove Park and Breckenridge in Montgomery; Silver Hills in Prattville; The Columns in Millbrook; and The Cove at Quail Run in Wetumpka.
The Vision Insurance Group, LLC
But one of the firm’s highest-profile developments is Sturbridge Plantation, which includes Rockbridge at Sturbridge and Piedmont Place at Sturbridge. There is also a shopping center – Sturbridge Village and apartment homes at Sturbridge Commons. Alfa Insurance expanded from its threestate core business by purchasing Alfa Vision Insurance Corp., which is based in Brentwood, Tenn.; and primarily handles auto insurance. Richmond, Va.-based Alfa Alliance Insurance Corp. was the former Virginia Mutual Insurance Co. and was also purchased by Alfa. •
August 2010 Montgomery Business Journal
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Come on Down Community Newspaper Holdings Inc. moving Corporate headquarters to Montgomery by David Zaslawsky
Community Newspaper Holdings Inc.’s announcement that it would locate its corporate headquarters in Montgomery was a signal to the community that it would have an immediate economic impact to the area. CNHI is a privately held media company that publishes 86 daily newspapers, 46 weeklies, 200plus specialty publications and owns four television stations. The Community Newspaper Holdings Inc. President and CEO Donna Barrett. company’s plan to relocate from Birmingham to Montgomery means that 70 highly paid executives will move into the community when it opens its doors in about 18 months. Montgomery Mayor Todd Strange said the community is grateful for CNHI’s decision. “It speaks volumes when a company of this caliber chooses Montgomery. This is great for our economy. We will do all we can for you,” Strange told CNHI President and CEO Donna Barrett, who was joined by Executive Vice President and Chief Operating Officer Keith Blevins at a news conference announcing the company’s move. With an annual payroll of about $5 million, CNHI’s 70 staff members will have an average salary of $75,000. Company executives are unsure how many employees will relocate to Montgomery. But when they get here, they will need homes. They will make improvements, and they will pay property taxes. Executives also will make heavy use of Montgomery Regional Airport, as was demonstrated when two CNHI executives made a dash for the airport after the announcement was made. CNHI is the first named tenant of the Retirement Systems of Alabama (RSA) headquarters in the old judicial building on Dexter Avenue. The company will transform the sixth floor into 200,000-plus square feet of office space. The city and county provided $300,000 in incentives to help with moving costs. Montgomery County Commission Chairman Elton Dean said, “I think we promised you a lot and we are a community that keeps our word. Montgomery is a great place to live.” •
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Montgomery Business Journal August 2010
Fit for Royalty Alley Station offers exclusive corporate rental unit by David Zaslawsky
If you work downtown or near it, what could be more convenient than plopping down in a corporate rental unit at the Alley Station in downtown Montgomery? That’s exactly what one business executive did when he opted to stay there for a month, according to T.J. Williford, a broker with Partners Realty in Montgomery. “It’s just a little different feel than a hotel,” Williford said. “It’s a little more homey. It has an exclusive feel.” The spacious 1,200-square-foot, onebedroom unit is outfitted for a corporate executive. The unit features designer furniture, stainless steel appliances, open and modern kitchen, 46-inch plasma television, telephone, cable, Internet, exposed brick and beams. There is a washer and dryer and an onsite gym at the Alley Station. Partners Realty will even stock the refrigerator as requested for an additional charge. And talk about location. If you stand on the large outdoor balcony there are great views of downtown as well as a roof-top garden just below. “The idea is once you come downtown for business or pleasure, you may not want to leave here, so my office and staff will make sure you have what you need,” Williford said. “We’re full service and we will accommodate and be creative to suit the client’s needs. The idea is to provide convenience, luxury and security.” The corporate rental unit is one of 16 loft apartments built on top of SaZa’s Serious Italian Food and next to Dreamland Bar-BQue and just around the corner from Alley Bar. Alley Station is across the street from Renaissance Montgomery Hotel & Spa at the Convention Center and Riverwalk Stadium, home of the Class AA Montgomery Biscuits.
Partners Realty broker T.J. Williford shows the high-end corporate rental unit at the Alley Station.
LOCAL GROUP BUYS FORMER BANK BUILDING, PARKING LOT Parking – it can be more valuable than a building. Greg Allen and Jere Beasley have purchased a former AmSouth Bank building downtown and its accompanying parking lot on Commerce Street, across from the Montgomery Area Chamber of Commerce. They plan to sell the accompanying bank building and knock down a drive-by window to make room for more parking. The building and parking lot cost $1.2 million. They plan to sell the bank building for $495,000.
deck at the Renaissance Montgomery Hotel & Spa at the Convention Center, but Allen wanted to offer another option. Daily, weekly and monthly parking rates will be available. “There is a big demand for parking in the area,” he said. “The rates will be reasonable.” Guests staying at the Hampton Inn & Suites also use that parking lot, and Allen said there are negotiations with the hotel to continue that practice. Allen and Beasley also are in negotiations with a valet service, which wants to use the lot.
“We have no need for it,” Allen said. The two formed 130 Commerce, LLC. Beasley is the founding shareholder of the Montgomery-based law firm Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.; and Allen is a shareholder with the firm. Some Alley Station residents use the parking
“You can hear the crack of the bat (from the balcony) and it’s a great perch to watch the fireworks,” Williford said.
August 2010 Montgomery Business Journal
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Member News
BUSINESSBUZZ CONSUMER REPORTS’ TOUTS REDESIGNED HYUNDAI SONATA The 2011 redesigned Hyundai Sonata received an “excellent” score from Consumer Reports and finished second in the family sedan class. Jere L. Beasley
Benjamin E. Baker Jr.
Daniel W. “Dee” Miles III
BEASLEY ALLEN ATTORNEYS NAMED TO PRESTIGIOUS 2010 SUPER LAWYERS LIST MONTGOMERY – Nine Beasley Allen attorneys were selected for the 2010 Super Lawyers list. The list includes the firm’s founding shareholder, Jere L. Beasley, as well as shareholders J. Greg Allen, Thomas J. Methvin, J. Cole Ports, Daniel W. “Dee” Miles III, C. Gibson Vance, Andy D. Birchfield Jr., Rhon E. Jones and Benjamin E. Baker Jr. Beasley also earned the distinction of being named among the Top 50 Lawyers in the state and was selected as one of the 2010 Lawdragon 500 Leading Lawyers in America. The Lawdragon 500 list is one of the most elite in law. The Super Lawyer designation, which is earned by fewer than 5 percent of the lawyers in Alabama, is based on peer recognition and personal achievement, and involves a statewide nomination process, independent research on each candidate, and peer evaluation by practice area.
22
Thomas J. Methvin
C. Gibson Vance
The magazine wrote about the vehicle’s agile handling, impressive performance, fuel economy, steady ride and user-friendly controls. “The Sonata has been transformed from a humdrum car into a really nice stylish car with impressive fuel economy, all at a competitive price” said David Champion, senior director of Consumer Reports’ auto test center in Connecticut. The Nissan Altima placed first in the family sedan class. ALABAMA KIDNEY FOUNDATION SCHEDULES WALK-A-THON
J. Cole Ports
Rhon E. Jones
MONTGOMERY – The Alabama Kidney Foundation will host its 23rd annual Walk-a-Thon Aug. 21 at Baptist Health’s DeBoer Building, 301 Brown Springs Road in Montgomery. There also will be breakfast, entertainment, silent and live auctions, door prizes and a children’s activity area.
Andy D. Birchfield Jr.
Montgomery Business Journal August 2010
J. Greg Allen
Participation in the annual Walk-a-Thon funds the Alabama Kidney Foundation’s programs, which are provided free to Alabama’s kidney patients in need. The Alabama Kidney Foundation serves kidney patients by providing
BUSINESS BUZZ financial assistance, education and support services. For information or to register a team, call (334) 241-0003 or visit www.alkidney.org.
Irvin Wells
TWO ORGANIZATIONS CERTIFY WELLS PRINTING CO. MONTGOMERY – Wells Printing Co. was recently named a “chain of custody” certified printer by the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI). The FSC and SFI encourage environmentally sound procedures and emphasize sustainability. The company is the only printer in Central and South Alabama to be certified by both agencies. Only four printers in the state are certified by both agencies. Because Wells Printing is certified by both agencies, customers have access to more certified products. “We were recycling long before recycling was popular,” said Wells Printing President Irvin Wells.
receive marketing assistance during the firm’s ninth annual CreateAthon event. CreateAthon, scheduled for Oct. 7-8, is a 24-hour effort that will provide free strategic marketing planning, creative and interactive development services to non-profits. The organizations selected are: National Alliance on Mental Illness of Alabama, Montgomery Public Schools’ Career Academies, Goodwill Industries of Central Alabama, Brantwood Children’s Home, One Place Family Justice Center, Montgomery CityCounty Public Library System, KidOne Transport System and Dusty Trails Horse Rescue. “During this 24-hour period, we’ll work on projects ranging from website development to branding to strategic marketing planning to brochure development.” said David Allred, an LWT principal. “CreateAthon allows our staff to give back to so many worthwhile organizations; it’s worth the lost revenue and sleep to provide these pro bono services,” he continued.
LWT SELECTS EIGHT CREATEATHON CLIENTS MONTGOMERY– LWT announced the eight area non-profit organizations to
Charles Ingram, vice president of operations for Whaley, and Roy Folmar, supervisor of maintenance, were singled out for their contributions. “Lockheed does a great job in recognizing a job well done, promoting small businesses and in doing business within the communities where they are located,” said Alex Whaley II, the company’s president. “Our Lockheed team led by Charles Ingram and Roy Folmar are dedicated to building value to our clients through quality service.”
ABC32 LAUNCHES EXPANDED NEWSCAST IN HIGH DEFINITION
Pike County Operations Facility Engineer Mack Brownlee (left) and Pike County Operations Director Mel Schubert (far right) presented the award to Whaley team members Roy Folmar, Stanley Senn, Jeron Senn, Charles Ingram and Alex Flowers
TROY – One of the nation’s largest defense contractors has recognized a Troy-based construction company for its efforts to improve efficiency and service delivery.
last year and we’re extremely proud of the way it’s turned out.”
Construction has been approved for a 73,500-square-foot Wellness Center for Auburn Montgomery’s campus.
BOARD OF TRUSTEES GRANTS FINAL APPROVAL FOR AUBURN MONTGOMERY WELLNESS CENTER MONTGOMERY – The Auburn Board of Trustees unanimously approved construction of a 73,500-square-foot Wellness Center for Auburn Montgomery’s campus. The center will house several wellness and fitness facilities, including a pool, healthy snack bar, weight room, aerobics room, running track, basketball courts and rock-climbing wall.
Jesse Grear
WHALEY CONSTRUCTION HONORED FOR OUTSTANDING SERVICE David Allred
Lockheed Martin presented its Small Business Award to Whaley Construction Co. Inc., which increased Lockheed’s Pike County operations facility work order completion rate from 70 percent to 97 percent.
MONTGOMERY – ABC32 has unveiled its new 35 minute Newscast, the ABC32 News at 10 in high definition. The newscast will air Monday-Friday. The expanded format enables ABC32 to cover more local news, weather and sports throughout the River Region. “I think our viewers will enjoy watching a newscast of this quality and will be impressed with the professionalism of our reporters and news team,” said ABC32 General Manager Jesse Grear. “We’ll certainly be more visible in the community and be able to provide more local news, weather, and sports content. This has been in the works since late
The center will be funded largely through the increase in the student activities fee. Additional funds for building and operating the center will be provided by the university, private donations and memberships sold to Auburn Montgomery employees and alumni. “The students have been tremendously excited about this project,” said Auburn Montgomery Chancellor John Veres. “And the board of trustees clearly was pleased to be able to give it final approval. I think that enthusiasm reflects the board’s commitment to keep the focus of our growth on what is good for students.” HODGES REAL ESTATE JOINS EXIT REALTY MONTGOMERY – Hodges Real Estate has joined (CONTINUED ON PAGE 24)
August 2010 Montgomery Business Journal
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BUSINESS BUZZ (CONTINUED FROM PAGE 23) area, Hodges will continue his affiliation with Hodges Warehousing and Logistics and the other Hodges companies.
Paul Hodges
EXIT Realty. The firm, EXIT Hodges Real Estate, will be directed by Paul Hodges as an EXIT Realty franchisee. “We wanted to provide these great benefits to our agents,” said Hodges, who was the qualifying broker of Hodges Commercial Real Estate, which included six real estate professionals. “We look forward to assisting both past and new customers with their real estate needs.” In addition to serving the residential and commercial real estate needs in the tri-county
24
The list of the 51 best-performing systems, based on the top quintile of 255 organizations analyzed, is published in Modern Healthcare with the top 10 systems highlighted. Baptist Health is the only Alabama health system listed and one of only five in the Southeast.
BAPTIST HEALTH NAMED AMONG TOP HEALTH SYSTEMS NATIONWIDE
Thomson Reuters ranked the health systems on measures of clinical quality and efficiency using data from two public databases: Medicare Provider Analysis and Review (MedPAR) and the Centers for Medicare and Medicaid Services’ (CMS) Hospital Compare.
MONTGOMERY – Baptist Health was recently named in Thomson Reuters’ second-annual 100 Top Hospitals. The Health System Benchmarks Study identified the top U.S. health systems based on their clinical performance and patient satisfaction.
“Being named among an elite group of health systems such as Mayo Foundation and Cleveland Clinic is a testament to the hard work and dedication of our outstanding physicians and staff,” said Baptist Health President and CEO Russell Tyner.
Russell Tyner
Montgomery Business Journal August 2010
CINTAS CORP. CONSOLIDATING OPERATIONS AT GUNTER INDUSTRIAL PARK MONTGOMERY – Cintas Corp. is increasing its sales staff and moving to a larger facility at Gunter Industrial Park. The company will add two people to its sales staff and move its uniform process facility to a building already housing its distribution center. The move will enable the company to better serve its customers as well as improve efficiencies. Cintas operates more than 350 facilities across the U.S. The company came to Montgomery in 1995 and has 125 employees. The Montgomery staff serves about 2,000 clients from Prattville to Monroeville and from West Georgia to Selma.
CHICKEN BISCUIT WITH ALAGA SYRUP RECEIVES NO. 4 NATIONAL RANKING MONTGOMERY – Riverwalk Stadium’s chicken biscuit with Alaga Syrup has been named the fourth-best ballpark food in the country by Travel Channel’s “Man vs. Food” host Adam Richman. The chicken biscuit with Alaga Syrup has been served at Riverwalk since the stadium opened in 2004. The dish is comprised of a deep-fried boneless chicken patty served between a freshly baked biscuit. Two styles of warm Alaga syrup (original Cane style and Yellow Label) are served on the side. The chicken biscuit with Alaga Syrup is sold at the Biscuit Cart on the concourse behind home plate. “We’ve always taken great pride in our ballpark food,” said Biscuits’ co-owner Tom
Dickson. “We understand that great food is a big part of the ballpark experience, and being recognized for that commitment by ‘Man vs. Food’ is something we’re very proud of.” Alaga opened in downtown Montgomery in 1906.
Jim Byard Jr.
MEDLINE INDUSTRIES TO BUILD PRATTVILLE FACILITY PRATTVILLE – Medline Industries Inc. announced it is building a 350,000 squre-foot distribution center here and is expect to hire 35 to 40 people.
Medline is the country’s largest privately held manufacturer and distributor of health care products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies. “I am pleased that this nationally recognized medical supply provider has chosen Prattville,” said Prattville Mayor Jim Byard Jr. “Medline will not only employ our citizens, but also become an integral partner to local health care providers. The Medline family will be a great addition to our business community.” KYSER OFFICE WORKS RECEIVES NATIONAL SALES AWARD MONTGOMERY – Kyser Office Works has been selected for a national sales award.
Kyser Office Works has been selected for a national sales award from Coalesse, a subsidiary of Steelcase Inc.
The award is based upon the strong working relationship between Coalesse, dealer and customer as well as sales production. Kyser Office Works, a division of Kyser Co. Inc., provides design, space planning, delivery and installation of quality products for the commercial contract customer, including state and federal agencies. •
The Montgomery firm received the award from Coalesse, a subsidiary of Steelcase Inc.
August 2010 Montgomery Business Journal
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MEMBERS ON THE MOVE MAYOR NAMES PUBLIC SAFETY DIRECTOR MONTGOMERY - Mayor Todd Strange has announced that Colonel J. Christopher J. Christopher Murphy Murphy will be the city’s public safety director effective Oct.1. In his new position, Murphy will oversee the police, fire and communication departments. “As we began the process of reorganizing our city government, we have had a lot of great success,” Strange said. “I believe with the addition of Col. Murphy, we will be able to take it to the next level. Our hope is that he will use his focus and abilities to help us set Montgomery apart.” Murphy is currently the director of the Alabama Department of Public Safety. Prior to his appointment by Gov. Bob Riley, Murphy was a 30-year law enforcement veteran. He began his career as an officer with the Auburn Police Department. He then served as a special agent with the Tennessee Bureau of Investigation before joining the U.S. Secret Service. “My leadership is simple and straight forward,” Murphy said. “I like open and candid communication and accountability.” A native of Birmingham, Murphy received a bachelor’s degree in criminal justice at Auburn University and a master’s degree in the administration of criminal justice at Troy University. ALFA INSURANCE NAMES CHIEF FINANCIAL OFFICER MONTGOMERY — Alfa Insurance announced the Ralph Forsythe promotion of Ralph Forsythe to chief financial officer. Forsythe previously served as senior vice president and chief accounting officer. He will direct the financial strategy of the Alfa companies, including oversight of accounting, tax, financial planning and reporting functions.
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Montgomery Business Journal August 2010
“I am excited to have the opportunity to serve Alfa as its chief financial officer,” Forsythe said. “We have a great company with a strong focus on providing exceptional service to our customers. I look forward to providing leadership for our company in maintaining and growing our financial strength over the coming years.”
Phillip C. Anderson
Tim J. Berryman
Rob A. Godwin
Don F. Lutomski
Oliver L. Haynes III
John P. Maloney
“We are delighted with their enthusiastic response to this shareholder offering. This is certainly a significant milestone in the history of Welch Hornsby & Welch.”
Beau K. Williams
Jim W. Underwood
The new shareholders are: Phillip C. Anderson, consultant; Tim J. Berryman, director of business development; J. Harvey Clark, chief financial officer and chief compliance officer; Ginger B. Glenn, manager of portfolio accounting; Rob A. Godwin, consultant;
Cindy C. Oliver
Brian S. Mitchell
Ginger B. Glenn
J. Harvey Clark
A certified public accountant, Forsythe joined Alfa in 2001 as vice president and assistant chief financial officer. He previously served as chief financial officer of the Coriolis Group in Scottsdale, Ariz., and as vice president and chief financial officer of United Methodist Publishing House in Nashville, Tenn. WELCH HORNSBY & WELCH ANNOUNCES NEW SHAREHOLDERS MONTGOEMRY - Welch Hornsby & Welch announced 12 new shareholders from a private offering to company employees. “Over the past 22 years, our employees have made significant contributions and exhibited the values integral to our firm,” said Edward V. Welch Jr., president and CEO of Welch Hornsby & Welch.
Oliver L. Haynes III, consultant; Don F. Lutomski, consultant; John P. Maloney, consultant; Brian S. Mitchell, consultant; Cindy C. Oliver, chief accountant; Jim W. Underwood, chief portfolio strategist; and Beau K. Williams, director of research. Welch Hornsby & Welch has offices in Montgomery and Birmingham. To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.
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AdvertisingOutdoor
Event Planner
FRESH FACE MEDIA 201 Monroe Street Montgomery, AL 36104 888-336-8797
CARTER SYMONE PREMIER PARTIES FOR GIRLS, LLC 2856 Zelda Road Montgomery, AL 36106 334-356-0754
Advertising Specialties
Gifts & Specialty-Retail
FINE LINE ENGRAVERS & GIFTS 1651 Perry Hill Road Montgomery, AL 36106 334-281-7577
FINE LINE ENGRAVERS & GIFTS 1651 Perry Hill Road Montgomery, AL 36106 334-281-7577
Ambulance Services
Health & Nutrition
CARE AMBULANCE 1150 South Panama Street Montgomery, AL 36107 334-386-3802
Associations/ Non-Profit ALABAMA WRITERS’ FORUM, INC. 401 North Hull Street Montgomery, AL 36104 334-265-7728
Bartending Services CURT FORD BARTENDING 478 Forest Park Drive Montgomery, AL 36109 334-220-0010
Communication Equipment COMMSERV, INC. 906 Plantation Way Montgomery, AL 36117 334-272-7373
Concrete 5 STAR CONSTRUCTION, LLC P.O. Box 241841 Montgomery, AL 36124 334-277-6183
XOCAI HEALTHY CHOCOLATE Cheri O’Dell 4121 Johnstown Drive Montgomery, AL 36109 334-430-2950 XOCAI HEALTHY CHOCOLATE Shelby Kelley 68 Laurelview Road Dadeville, AL 36853 256-825-3333
Individuals JULIE WELLER P.O. Box 6244 Montgomery, AL 36106 334-399-4179
Ironworks MCGOUGH FABRICATIONS, LLC 6145 Sheffield Drive Montgomery, AL 36107 334-430-6409
Landscaping/Lawn Services PRESTIGE ORGANICS LAWNCARE 270 Murfee Drive Prattville, AL 36066 334-380-7899
HERE WE GROW AGAIN
INTERIORSCAPES, INC. 115-E Walter Davis Drive Birmingham, AL 35209 205-942-7151
Publications MONTGOMERY LIVING MAGAZINE 1430 I-85 Parkway, Suite 228 Montgomery, AL 36106 334-265-0066
HEIDI’S FINE JEWELRY 4695 Vaughn Road, Montgomery, AL 36106 334-239-7700 Heidi Woods-Owner Jewelers/Jewelry
RestaurantsBar & Grill MARINA BAR & GRILL 617 Shady Street Montgomery, AL 36104 334-239-8226
Telecommunications CHARTER BUSINESS 2100 Columbiana Road Vestavia Hills, AL 35216 205-824-5428
JIM WILSON & ASSOCIATES, LLC/EARTH FARE Lakeview Center, 2660 EastChase Lane, Suite 100 Montgomery, AL 36117 334-260-2500 William B. Wilson-President Organic Supermarket
T. U. ENTERPRISES/ 5LINX ENTERPRISES 715 Whitehall Parkway Montgomery, AL 36109 334-462-6828
Security Services ROYAL GUARD SECURITY, INC. 1231 Rucker Boulevard Enterprise, AL 36330 334-347-9999
WATERMARK RESIDENTIAL 8462 EastChase Parkway, Montgomery, AL 36117, 317-454-8023 Eric Garrett-Managing Partner Apartments
Steel QUALICO STEEL 8650 Minnie Brown Road, Suite 234 Montgomery, AL 36117 334-462-9001
LILLIEPAK’S PERSONAL CELEBRATION & EVENT PLANNING P.O. Box 4311, Montgomery, AL 36103 334-546-1645 Pakeania Alexander-Owner Event Planner
Party Services E & M MOSAICS, LLC 2822 Mallory Street Montgomery, AL 36107
ADAMS AVENUE LOFTS 500 Adams Avenue, Montgomery, AL 36104 334-657-0296 Sam Adams & John Foshee Apartments
August 2010 Montgomery Business Journal
27
ECONOMIC INTEL Sales Tax Collections Montgomery County City of Montgomery Pike Road Autauga County
JUNE 2010
JUNE 2009
$3,098,242
$3,093,324
$7,079,972
$6,964,149
$164,386
Year/Year % Change
YTD 2010
YTD 2009
Year/Year % Change
0.16%
$19,482,896
$19,405,648
1.66%
$44,095,543
$42,963,625
2.63%
$164,386
0.00%
$969,486
$595,950
62.68%
0.40%
$616,403
$636,210
-3.11%
$3,599,396
$3,648,983
-1.36%
$1,086,563
$1,098,432
-1.08%
$7,179,739
$6,987,206
2.76%
Elmore County
$720,735
$701,251
2.78%
$4,432,405
$4,244,599
4.42%
Wetumpka
$447,653
$474,401
-5.64%
$2,692,159
$2,803,501
-3.97%
Millbrook
$435,735
$424,620
2.62%
$2,744,727
$2,537,576
8.16%
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
Unemployment Data Area Montgomery MA
May r 2010
June r 2009
June p 2010
May r 2010
June r 2009
165,524
165,224
168,966
9.7%
9.5%
10.2%
Autauga County
23,573
23,513
24,249
8.4%
8.0%
9.5%
Prattville City
7.9%
15,281
15,282
15,714
6.8%
6.7%
Elmore County
34,850
34,762
35,525
9.0%
8.7%
9.3%
Lowndes County
4,734
4,780
4,996
15.8%
16.5%
18.9%
Montgomery County
102,367
102,168
104,195
10.0%
9.7%
10.2%
Montgomery City
92,455
92,217
94,224
9.8%
9.5%
10.1%
Birmingham-Hoover MA
508,306
504,386
521,502
10.0%
9.5%
10.3%
Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States MA=Metropolitan Area. pPreliminary
28
June p 2010
94,852
94,491
97,392
12.1%
12.1%
12.5%
205,322
204,351
205,134
8.0%
7.7%
8.3%
91,246
90,591
90,992
8.1%
7.6%
8.3%
181,240
180,720
184,174
10.9%
11.0%
11.0%
84,507
84,201
85,815
11.2%
11.2%
11.2%
2,105,845
2,094,120
2,148,403
10.3%
9.9%
10.8%
154,767,000
153,866,000
155,921,000
9.6%
9.3%
9.7%
rRevised
Montgomery Business Journal August 2010
Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2009 benchmark.
Montgomery Regional Airport Year over Year % Change
JUNE 2010
JUNE 2009
Air Carrier Operations
1,109
1,015
9.3%
Total Operations
5,927
6,476
-8.5%
Enplanements
15,469
14,623
5.8%
Deplanements
15,491
15,272
1.4%
Total Passengers
30,960
29,895
3.6%
YTD 2009
Year over Year % Change
6,149
5,465
12.5%
35,495
34,895
1.7%
89,671
71,401
25.6%
90,113
72,664
24.0%
179,784
144,065
24.8%
YTD 2010
Source: Montgomery Regional Airport (MGM) Dannelly Field
2010 Montgomery Building Starts Building Permits
Building Valuations
JUNE 2010
MAY 2010
JUNE 2009
JUNE 2010
MAY 2010
JUNE 2009
New Construction
27
23
31
$3,863,000
$3,526,600
$10,326,000
Additions and Alterations
69
68
88
$1,689,600
$2,249,606
$4,194,600
Others
32
29
43
$2,379,200
$289,600
$855,400
Total
128
120
162
$7,931,800
$6,065,806
$15,376,000
Source: City of Montgomery Building Department
Montgomery Metro Market Home Sales MAY 2010 Total Home Sales
APR 2010
Month/Month % Change
MAY 2009
Year/Year % Change
Statewide MAY 2010
390
342
14.04%
292
33.56%
4,082
Median Selling Price
$129,900
$130,000
-0.08%
$135,300
-3.99%
$127,454
Average Selling Price
$149,729
$143,181
4.57%
$153,083
-2.19%
$148,049
87
103
-15.53%
95
-8.42%
144
3,266
3,195
2.22%
3,104
5.22%
41,935
Average Days on Market Total Homes Listed
Source: Alabama Center for Real Estate (ACRE), The University of Alabama
Quarterly Reports QUARTERLY REVENUES
NET INCOME
EARNINGS PER SHARE
EARNINGS ESTIMATE
YEAR-AGO REVENUES
YEAR-AGO NET INCOME
$3.1B
$136M
$0.39
$0.34
$2.8B
$83M
Profit jumped 64%
Talbots
$320.7M
(-$4.4M)
(-$0.08)
$0.16
$306,2M
(-$23.6M)
Revenue rose 4%
Men’s Wearhouse
$473.5M
$13.6M
$0.26
$0.14
$464.1M
$5.3M
Revenue increased 2%
$10.8B
$155M
$0.36
$0.50
$10.1B
$153M
International revenue up 11% to $2.9B
NAME Dollar General
Best Buy Walgreen
NOTABLE
$17.2B
$463M
$0.47
$0.57
$16.2B
$522M
Profit declined 11%
$145.9M
$11M
$0.18
$0.19
$181M
$16.8M
Net earnings declined 35%
$6.4B
(-$73.7M)
(-$0.09)
(-$0.14)
$6.5B
(-$98.4M)
$306.3M
$7.7M
$0.07
(-$0.02)
$281.1M
$29.3M
Sales at same-stores opened at least one year up 14.3%
$1.3B
(-$32.1M)
(-$0.58)
(-$0.81)
$1.1B
(-$2.7M)
Loss related to spending for e-book business
$282.4M
$13.6M
$0.25
$0.16
$259.1M
(-$608,000)
Sales at same-stores opened at least one year rose nearly 11%
Darden Restaurants (Red Lobster, Olive Garden, LongHorn Steakhouse)
$1.9B
$115.6M
$0.82
$0.88
$2B
$123M
Increased dividend to 32 cents a share from 25 cents
Bed Bath & Beyond
$1.9B
$137.6M
$0.52
$0.48
$1.7B
$87.2M
Profit soared 58%
$435.2M
(-$3.1M)
(-$0.06)
$0.18
$446.8M
$14.4M
Transaction fees and costs were $20.9M in the quarter
$2B
$104.4M
$0.77
$0.76
$1.8B
$87.7M
Profit increased 19%
Sonic Corp. Rite Aid Pier 1 Imports Barnes & Noble Finish Line
CKE Restaurants (Carl’s Jr., Hardee’s) Family Dollar
Cut costs 5%
August 2010 Montgomery Business Journal
29
Airline Fares Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. Destination
Montgomery
Birmingham
Atlanta
Baltimore (BWI)
$334
$254
$214
Boston (BOS)
$377
$318
$300
Charlotte, NC (CLT)
$243
$204
$190
Chicago (ORD)
$438
$268
$264
Cincinnati (CVG)
$294
$251
$227
Dallas/Ft Worth (QDF)
$288
$268
$284
Denver (DEN)
$430
$384
$334
Detroit (DTW)
$392
$297
$254
Houston (QHO)
$418
$218
$274
Indianapolis (IND)
$334
$254
$230
Las Vegas (LAS)
$378
$308
$354
Los Angeles (LAX)
$373
$290
$384
Memphis (MEM)
$390
$346
$210
Miami (MIA)
$252
$252
$186
Nashville (BNA)
$258
$158
$398
New Orleans (MSY)
$278
$158
$164
New York (JFK)
$413
$278
$286
Orlando (MCO)
$336
$178
$230
Philadelphia (PHL)
$376
$258
$168
Pittsburgh (PIT)
$362
$281
$234
St Louis (STL)
$292
$228
$234
Seattle (SEA)
$509
$436
$346
$1,824
$1,351
$1,763
Tampa (TPA)
$336
$256
$230
Washington DC (DCA)
$369
$284
$254
Seoul, Korea (SEL)
Date of travel: Aug. 16-22. Date of pricing: July 11.. Source: travelocity.com
National Retail Sales (Monthly and Quarterly) Year Target Costco Family Dollar JCPenney Kohl’s Gap Rite Aid Walgreens
1.7%
2009
-6.2%
2010
1.0%
2009
-1.0%
2010
7.0%
2009
6.2%
2010
4.5%
2009
-8.2%
2010
5.9%
2009
-5.6%
2010
-3.0%
2009
-10.0%
2010
-2.5%
2009
-0.6%
2010
2.0%
2009
3.4%
Hyundai Sales VEHICLE
JUNE 2010
JUNE 2009
YTD 2010
YTD 2009
Accent
4,615
8,139
27,078
32,928
Sonata
17,771
11,950
89,249
60,481
Elantra
14,245
6,493
57,564
39,904
Tiburon
0
443
0
8,346
Santa Fe
7,586
7,148
44,376
33,473
428
313
1,581
1,951
3,382
1,100
19,689
7,552
Entourage
0
43
0
3,343
Veracruz
609
476
3,354
6,770
Genesis
2,569
1,838
12,891
9,938
Total
51,205
37,943
255,782
204,686
Tucson
Source: Hyundai Motor America
Montgomery Business Journal August 2010
2010
U.S. same store sales compiled from 10-Q and 10-K forms (excluding fuel sales) Source: RetailerDaily.com
Azera
30
June
August 2010 Montgomery Business Journal
31
Post OfďŹ ce Box 79 Montgomery, AL 36101