Montgomery Business Journal – August 2011 by Montgomery Area Chamber of Commerce

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august 2011 Chairman’s Column

7 Calendar 8

Small Business Loan Clinic

U.S. Rep. Mike Rogers Goes Fishing for Jobs

Q&A with Chris Murphy

Member Profile: Dixie Electric Cooperative

The Waters Attracts More Buyers

Total Resource Campaign Launches in September

Air Force General Leads IT Transformation

Hyundai Breaks Sales Record; HMMA Renovates/ Expands Engine Shop

Idea Factory Welcomes Community Input

Business Buzz

Members on the Move

Ribbon Cuttings & Ground Breakings

New Members

Economic Intel

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Contents

20 28

22 August 2011 Montgomery Business Journal

Downtown

THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION

G O E S U PTOW N

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PUBLISHER

Randall L. George Executive Editor

Tina McManama Managing Editor

David Zaslawsky Design

Copperwing Design Photographer

Robert Fouts On the cover:

Gen. Craig S. Olson, who is based at Gunter, is the program executive officer of the Air Force Program Executive Office for Business and Enterprise Systems. Advertising:

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com

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Montgomery Business Journal August 2011

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 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 3, Issue 7. 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.

be heard AUG 23

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2 0 1 1 M u n i c i pa l E l e c t i o n s Your vote. Your voice. Your city. Elect leadership that shares your dream. Your Ballot speaks loud and clear.

2011 Municipal Election

Absentee Voting Begins Voter Registration Deadline Last Day to Apply for Absentee Ballot Absentee Ballot Hand-Delivery Deadline* Absentee Ballot Postmark Deadline** ELECTION DAY

July 14 August 12 August 18 August 22 August 22 August 23

elect your

city Mayor ★ Council

Run-Off Election

August 25 September 23 September 29 October 3 October 3 October 4

*Hand-delivered absentee ballots must be received at the Montgomery Election Center by 5:00 p.m. on this date. Only the voter may hand-deliver his or her own absentee ballot and identification is required. **Absentee ballots returned by U.S. Mail must be postmarked by this date and received at the Montgomery Election Center by noon on Election Day.

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All polling places are open from

7 a.m. until 7 p.m. on Election Day and accessible to persons with disabilities. to locate your polling place in the city of montgomery visit MontgomeryElectionCenter.org

Fo r M o r e in f o r mat io n C o n tact

The Montgomery Election Center 1 2 5 Was h in gt o n Aven ue (3 3 4 ) 8 3 2 -7 7 4 4 M o n t g omeryE lect io n C en t er . o rg

August 2011 Montgomery Business Journal

Chairman’s Column If I asked you to name a place that was a “Center of Excellence” for Information Technology; what would come to mind; maybe California’s Silicon Valley, North Carolina’s Research Triangle, or booming Austin, Texas? Let me give you some hints. This city: > Stores all electronic medical records for every military member and their dependents for the entire Department of Defense; and a medical record could be obtained worldwide in a matter of seconds? Certainly that city could be considered as a “Center of Excellence” for information technology. > Maintains and defends the entire Air Force network from outside intrusions worldwide and can fix any Air Force Base network problem without even a phone call. > Maintains the contracts that purchases every computer, router, piece of IT equipment, and software program for the Air Force worldwide and is in charge of the acquisition, development, and sustainment of all the specialized software programs for logistics, finance, and medical; and can maintain and update that software on every computer in the Air Force, remotely? > Holds the largest Information Technology Conference for the Air Force each year with 6,000 attendees, 200 top IT vendors, and has speakers such as Steve Ballmer, CEO of Microsoft and Michael Dell, CEO, of Dell Computer? Give up? Well, there is a city that has all of that and more -- A true “Center of Excellence” for Information Technologies -Montgomery, Alabama. This issue’s cover story is an interview with Brigadier General Steve Olson, Program Executive Officer for Business and Enterprise Systems for the Air Force. General Olson shares how his organization is expanding and what exciting things are on the horizon as they provide support systems for the war fighter worldwide. The preservation and growth of Maxwell–Gunter has long been a centerpiece of the Chamber’s economic development strategy to strengthen the regional economy. More importantly, there is an incredible partnership here in Montgomery that supports the mission of our men and women to fly, fight and win around the globe. I think you’ll be pretty amazed at what’s taking place right here in the River Region that’s making our hometown, and the world, a better place to live, work and raise our families.

Larry D. Puckett, 2011 Chairman of the board Montgomery area chamber of commerce

Montgomery Business Journal August 2011

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Calendar Montgomery Area Chamber of Commerce Events

AUGUST PLANNING SEMINAR 1 BUSINESS 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door Registration not required

60 MINUTE COFFEE Sponsored by Fine Line Engravers & Gifts 8 AM @ Fine Line Engravers & Gifts 1651 Perry Hill Road, Montgomery Free event, exclusively for Chamber Members

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door Registration not required

BACK TO SCHOOL BREAKFAST Presenting Sponsor: Information Transport Solution, Inc. 8 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/breakfast

BUSINESS TRAINING & DEVELOPMENT SERIES Presenting Sponsor: The Deli at Alley Station 12 PM @ Small Business Resource Center 600 South Court Street, Suite 460, Montgomery Registration: www.montgomerychamber.com/BTDaugust

BUSINESS AFTER HOURS Sponsored by Allstate Beverage Company 5 PM @ Allstate Beverage Company 1580 Parallel Street, Montgomery Free event, exclusively for Chamber Members

SEPTEMBER ORIENTATION 13 CHAMBER Presenting Sponsor: Heartsill Payroll

8 AM @ Montgomery Area Chamber of Commerce 41 Commerce Street, Free. Reservations required. Details at www.montgomerychamber.com/orientation

60 MINUTE COFFEE Sponsored by Auburn Montgomery Outreach 8 AM @ Center for Lifelong Learning, 75 TechnaCenter Drive, Free event, exclusively for Chamber Members

DIVERSITY SUMMIT Presenting Sponsor: Troy University 8AM @ Renaissance Montgomery Hotel & Spa at the Convention Center, 201 Tallapoosa Street, Montgomery Registration at www.montgomerychamber.com/diversity2011

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door Registration not required

BUSINESS AFTER HOURS Sponsored by AlleyBAR 5 PM @ AlleyBAR, 166 Commerce Street, Free event, exclusively for Chamber Members

Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention & Visitor Bureau

AUGUST 8/4-8/7

I Want it All! National Conference

8/7-8/10

Alabama Motorcoach Association Annual Meeting

8/26-8/27 University of AL School of Social Work Conference 8/29-8/31 Air Force Information Technology Conference

September 9/25-9/28 AL State Dept. of Education Joint Leadership Development Conference

August 2011 Montgomery Business Journal

Chamber News

Showing Business Owners the Money Chamber seminar provides wealth of funding information by David Zaslawsky

“What we (SBA) do is try to encourage banks to make small business loans,” Ramp said. “We do that by providing a guaranty to the bank to encourage them to make the loan by reducing their risk.” He said there are several advantages to an SBA loan. “The big (advantage) is of course to help get the lender to make the loan and by using the SBA you can get a longer term on the loan. We allow flexible maturities.” The SBA offers loans of seven to 10 years and for the most part the guaranties are 85 percent on loans up to $150,000 and 75 percent of loans more than $150,000. The range on the loans is $25,000 to $5 million.

A small business owner wanting to learn about the ABCs of borrowing received a crash course at the Small Business Resource Center (SBRC). The Montgomery Area Chamber of Commerce held a small business loan clinic at the SBRC and a wealth of information was provided. Featured speaker David Ramp, lender relations specialist for the U.S. Small Business Administration District Office in Birmingham, offered a wide range of lending programs that meet the needs of any small business owner. Ramp will also be the featured speaker at a loan clinic scheduled noon Oct. 12 at the SBRC. There is no charge to attend the clinic.

Montgomery Business Journal August 2011

Caps are set on interest rates, which is the prime rate plus 2.25 percent on loans less than seven years and prime plus 2.75 percent on loans greater than seven years. With any loans there are plenty of requirements and of course no guarantee that the loan will be approved. Just because the government is what Ramp called a “cosigner” doesn’t mean the SBA will squander its resources.

Loan applicants often need approval both from their lender, who provides the money, and the SBA. That means potential borrowers must have credit scores of 700-plus; have a feasible business plan; equity in their business; good character; and “we are going to expect you to demonstrate the ability to repay the loan from projected operating cash flow,” Ramp said. There are two types of SBA loans: 7(a) and 504. Ramp said a 7(a) loan can be used for any business purpose, but the businesses must be for-profit and meet the federal size regulations of $15 million net worth and $5 million in average net income after taxes in a two-year period. The loans cannot be used for real estate development, investments or speculation, according to Ramp. The 504 loans offer fixed-rate financing and are used for buying land, building and equipment. These loans are handled by a certified development company and the SBA’s portion of the loan is 40 percent. The loan limits are $5 million and $5.5 million for manufacturers. But for every $65,000 from the SBA, one job must be created or retained.

Ramp said one of the major changes to the program is the ability to refinance a 504 loan. That feature is effective until the end of September 2012.

One of those programs – Community Advantage – is geared to lenders who previously have not participated in SBA loans. For loans more than $25,000, the business must be located in a low- to moderateincome area or a historically underutilized business zone.

“When you borrow the money, you are going to be fully at risk,” Ramp said. “You are the one that is going to have everything on the line.”

The Small Loan Advantage program works with preferred lenders, which means if the bank approves a loan the SBA automatically approves it.

Although the SBA is not a collateral lender, the borrower is expected to pledge all available collateral. Liens on personal assets may be required. Ramp did stress that the SBA will allow “a collateral weakness” in the loan application and that guaranty “can make a difference with a lender providing that little bit of extra security,” he said.

The SBA is creating the Small Business Intermediary Lending Pilot Program, which is a microloan program with a loan limit of $200,000.

The SBA offers expedited loan programs that feature a 36-hour response instead of the typical five to 10 business days, but those loans have a guaranty of 50 percent. The Patriot Express program is for veterans, spouses of veterans and widows or widowers of veterans. The loan limit is $500,000 with the standard SBA guaranty of 85 percent for loans of $150,000 or less and 75 percent guaranty for loans more than $150,000.

The Small/Rural Lender Advantage is for any lender who does less than 20 SBA loans a year. Ramp said the program was geared for community banks. There is considerably less paperwork. A typical nine-page eligibility questionnaire is one paragraph long. These loans have a limit of $350,000. The SBA extended a pilot program to 2013 called Dealer Floor Plan Financing, which features a revolving line of credit with a maximum term of five years. The loan range is $500,000 to $5 million and is for any title inventory: vehicles, boats, RVs, mobile homes, etc. •

Advantage Loan Programs are replacing Community Express for loans up to $250,000. The loan application is handled by an SBA resource partner, which locally is Alabama State University’s Small Business Development Center.

Lenders typically put up 50 percent of the loan, but get 100 percent of the collateral, Ramp said. The borrower must invest at least 10 percent; if it’s a start-up that equity climbs to 15 percent and if the building has limited use, then the borrower must come up with 20 percent of the loan total.

August 2011 Montgomery Business Journal

A Fishing Trip for Jobs U.S. Rep. Mike Rogers heard an earful from some colleagues about how companies are struggling in their states. One state’s plight Rep. Mike Rogers could become another state’s prize and that state might as well be Alabama. Rogers, R-Anniston, speaking before a packed crowd at the Montgomery Area Chamber of Commerce’s Eggs & Issues event, sees opportunities from those disgruntled, struggling companies. He encouraged local officials to turn the opportunities into jobs. Colleagues from New York, Ohio, Wisconsin and California have told Rogers “how miserable our companies are and how they are having a difficult time surviving.” Rogers said some of the reasons are high taxes, overregulation and unions.

Montgomery Business Journal August 2011

by David Zaslawsky

“The fact is we have a lot to offer here,” Rogers said. “We don’t unionize. We don’t have high taxes. We have wonderful weather and we play football. We have great fishing; great golf.”

County being carved into three congressional districts. Some people have criticized the new district, claiming it eroded Montgomery County’s influence, but Rogers contends just the opposite happened.

He suggested that the Montgomery Area Chamber of Commerce and local political leaders go on a “fishing trip for jobs.” Rogers said he would like to join such a Montgomery delegation looking to bring home jobs from another state. He said there is “no downside” trying to attract companies to the River Region. Officials from other counties plan to visit out-of-state companies.

“Redistricting turned out very good,” he said. “You have three folks with skin in the game – three folks advocating for you.”

“I think you have a great product here to sell and I can’t imagine someone not wanting to come to a place like Montgomery County especially if you live somewhere like Upstate New York,” Rogers said. Rogers also spoke about the benefit of redistricting, which resulted in Montgomery

The new map divides Montgomery County between the 2nd, 3rd and 7th districts. The county will be represented by Rogers, Martha Roby, R-Montgomery; and Terri Sewell, D-Birmingham, which gives Montgomery “a lot more muscle in the U.S. Congress than you had before,” Rogers said. Rogers said he will represent 32,000 people in Montgomery. He said if there is a Montgomery County-related issue before the House, “I own it. Residents will have real clout in Congress.” •

R I V E R R E G I O N U N I T E D WAY. O R G August 2011 Montgomery Business Journal

Setting the record straight Q&A with Chris Murphy

Chris Murphy is the director of the Department of Public Safety for the City of Montgomery. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky

Montgomery Business Journal: What is the background of your position?

Chris Murphy is the director of the Department of Public Safety for the City of Montgomery.

Murphy: Mayor (Todd) Strange had this concept as a business decision for the City of Montgomery. He wanted to combine like responsibilities in order to make the city more efficient and more effective. He wanted subject matter experts to (handle) those responsibilities so he could do a better job of running the city in a more holistic matter as opposed to getting bogged down in the details. He actually approached me about a year before I took it. MBJ: Why did it take a year? Murphy: We had some discussions about it, but I felt like I had to stay with Gov. (Bob) Riley because at the time we still had some things to do. The mayor’s concept was to combine police, fire and the department of communications. Those three agencies were working fine separately and occasionally would overlap in their responsibilities. He wanted to bring those together for greater efficiency and have someone oversee all of that. MBJ: What are your responsibilities as the city’s director of public safety?

Murphy: I see the job as two- or three-fold: One is to look for operational efficiencies. I am not a super chief of police or a super fire chief. They do their jobs as chiefs of their agencies or the director of communications. I tell them, ‘My job is to poke you and ask what about this or what about so-and-so?’ MBJ: Because you oversee all three agencies, aren’t you almost an outsider looking in? Murphy: Right. As an outsider I can ask sometimes difficult questions and sometimes they say they have never done it that way – and I can make them uncomfortable and think why do we have to do it that way – just to get that conversation going. I will get into operational aspects of their job, but I don’t do their job. There is a need for a fire chief and a police chief and a director of communications. But the other aspect of what I do is to economically look at where there are efficiencies. MBJ: Do you have any examples? Murphy: Early we saw that it didn’t make much sense to use an outside vendor to do not all, but a good bit of our blue-light/ red-light installation in our vehicles. It didn’t make much sense because we had talented people (available). We worked with fleet management and we feel like we have been able to eliminate all that outside vendor. I think that is going to save us somewhere in the neighborhood of $75,000. But individually, it would have been difficult for any one agency to see that. MBJ: Do you have another example of a costcutting measure? Murphy: We had three different contracts for clothing for each of the agencies. The police wear in their dress uniform, the same pant as the firemen – they just have a different-colored

Montgomery Business Journal August 2011

stripe. We can buy those (uniforms) in larger bulk and our pricing will be different. We are in the process of eliminating those three contracts and developing one contract with the Department of Public Safety. It will be a little more expensive for the fire department because we are going to go with a different uniform. It will initially cost us a little bit more because they are going to have a better quality uniform, but it’s going to save us tremendously for the police department. All total, it will save us $45,000 the first year and probably closer to $75,000 the second year and years after. The agencies weren’t able to see the bigger picture how we could do things a little bit differently and save money. We saved by just expanding our motorcycle contract. We saved $40,000 in the purchase of five motorcycles, which could buy another motorcycle. MBJ: What is the third aspect? Murphy: It’s expanding the brain trust of these three departments. Every Monday we have a staff meeting. One Monday we have it with just myself, my staff, the chiefs and chiefs of staffs for all three agencies. Then the next Monday we expand that to the division chiefs. MBJ: What’s the result?

Murphy: It greatly expands the brain trust. Many times, I’ve heard the chief of police say, ‘You know we are having the same problem. How are you handling that?’ Instead of reinventing the wheel each time, we’re seeing there are commonalities in some of the problems that we are able to play off each other. We are creating things that I call working groups for common problems. There is a rules and regulation working group. When we find a common problem that we need to address, we are going have a working group of two to three people from each of the different agencies to address that problem so that there is consistency. MBJ: You were appointed Oct.1 of last year. How do you characterize your time in office? Murphy: This is a good time to have a first report card. On the brain trust category, I think we are doing very well. All three agency heads have said that they feel very good about being able to know and understand more about what the other agencies are doing. Another thing we are doing in that category is we are having police majors ride on the red trucks for part of a shift so they a better understanding of what (firefighters) do. Fire assistant chiefs are riding in the

City of Montgomery 1990 – 2010

Since 2003, crime is down 29% 2009 had the lowest crime rate 2010 has the 2nd lowest crime rate

Continued on Page 14

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August 2011 Montgomery Business Journal

Crime Rates 1999 – 2009

Montgomery

Down 29%

Continued from page 13

Down 4%

black-and-whites for part of a shift. We are having both of them (police majors and assistant fire chiefs) spend some time with communications and put a headphone on to see what communications does. We are truly understanding what each agency does to help them do a better job.

United States

MBJ: How are you doing with the economic category?

Alabama

Down 9%

Murphy: We have identified – conservatively – about $300,000 worth of savings. We won’t be able to save $300,000 every six months, but for the first six months to identify $300,000 worth of savings is pretty significant for the city. All in all, I think we’re doing pretty well. MBJ: What about the operational side? Murphy: There have been some operational things we’ve changed. There has been some moving around of personnel in both police and fire. We (recently) promoted four division chiefs – two in fire and two in police. I think all in all, the first six months have gone very well.

MBJ: When you were first appointed, you talked about goals for the new position. What were some of the goals and please talk about your progress? Murphy: I haven’t accomplished all the goals. One of the goals … I believe there is a misconception within both Montgomerians and visitors that our crime rate is high. That really bothers me because that can negatively impact business and I want the Department of Public Safety to partner with the Chamber, mayor, City Council, business leaders and others in that recruitment process. We went back and did our own homework and we had the lowest crime rate in 20 years (the lowest in 2009 and second-lowest in 2010). MBJ: Are you saying in the last 20 years, that 2009 had the lowest crime rate and 2010 had the second-lowest crime rate? Murphy: Yes. We are on par for capita with Auburn; with Prattville; and with Wetumpka. We are lower than Birmingham, Mobile and Huntsville. When you compare us (crime rate) around the state, we are doing very well. There is a misconception. Do we have crime in Montgomery? Absolutely. And as the mayor

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Montgomery Business Journal August 2011

said if crime has happened to you it’s 100 percent. If your house has been broken into or your car has been vandalized – it’s 100 percent. We want to reduce that even more. MBJ: How are you going to reduce the crime even more? Murphy: We are using data-driven enforcement. For the police department that’s data-driven enforcement – we use a system called Comp Stats, where Chief (Kevin) Murphy and his staff are really drilling down to what is happening not just in the city, but in that precinct; in that district; in that neighborhood where that crime is happening. The bicycle patrol knows where to hit it; the regular patrol knows where to be; the traffic division knows where they need to back up the patrol units; the detectives know where they need to concentrate; special operations divisions knows where they need to do a prostitution detail or a drug detail. Everybody gets really involved in where the crime is and not a month later, but weekly they know specifically where the crimes are and what kinds of crimes are happening. MBJ: In addition to the data-driven enforcement, what else needs to be done to eliminate the misconception about the city’s crime rate? Murphy: In the public relations end of it, Martha (Earnhardt) and others need to talk more to the citizens about it. For instance, (recently) 70 percent of the vehicle break-ins were unlocked and the week before that, 67 percent were unlocked. We are not blaming anybody, but we need to partner with the citizens. That data is so important in how we do enforcement; how we do public relations; and how we do so much of what we do. MBJ: Isn’t that misconception about the crime rate so evolved and so widespread, it is difficult to change it? Murphy: It is extremely difficult. There is crime here like there is in Austin, Texas, or anywhere else. We are aware of it and we are systematically working on it. We are trying to address it with the most modern technology. We are working in partnership with police, fire and communications, but also with the Chamber, the City Council, the Sheriff’s Department, district attorney’s office, Alabama State Troopers and whoever else we can partner with to make sure we are staying on top of that so that this is an inviting place for people to come here. They will

know that their children will be educated in a safe environment; that they can go to parks and have leisure time with their families in a safe environment; and that they can relocate their businesses. MBJ: You don’t read stories about no murders were committed today. That’s not news. Isn’t that what you are dealing with – violent crimes make the first page or second page of the newspaper? Murphy: Right. That’s why we hired a public relations specialist like Martha to help us with this. We did a news release that we had our eighth homicide and that’s very unfortunate, but we also made two arrests in 24 hours and that’s very significant. At this time last year we are on our 10th homicide, that’s a 20 percent reduction in homicides. When you incorporate that good news with the unfortunate news and let’s make that part of the story. Yes, there was a homicide and we all grieve over that, but we also want to tell the full story. That we are down from last year and we want to continue that trend. We made two arrests within 24 hours and those are two good aspects of a very, very tragic situation. MBJ: What about the fire department? Murphy: We are using the same data on the fire side of the house. We have a phenomenal rating from ISO (Insurance Services Office), which is a 2. No other large city had a 2 in the state. There are no 1s. We’re proud of that. Our response time for emergency medical is 4 minutes, 20 seconds. Our response time for (fire) suppression is 3 minutes, 43 seconds. Those are impressive numbers, but we are also using this data to decide where are we going to put this new

ALS Pumper, which is an advanced life support pumper. We want to know where we need to put what equipment to make sure it’s where we are going to continue to drive those numbers (response times) down. That is also, I believe, a recruiting tool the Chamber would like to use – what our ISO rating is and what our response times are. Montgomerians, visitors and potential industry – there is a lot to be proud of with Montgomery’s Department of Public Safety and the agencies in this department. We’re trying to get that word out and let people know what the facts are. MBJ: How many people are you in charge of with the three combined agencies? Murphy: It’s a little over 1,200, which is almost half of the city workers. MBJ: What has been the impact of ShotSpotter? Murphy: It is a very valuable tool, but it is just a tool. A lot of people will say that we need 20 of those. They are very expensive and very effective. It has dramatically reduced the shooting incidents in that mile area. We got that with a grant, but we don’t have a grant for that now. We can use our General Fund money, but is that the best way to use that amount of money? We have to balance that. I would love to have several more, but I’m not sure in these economic times if that’s the best use of money from the General Fund. MBJ: It’s a matter of getting the most bang for your buck. Murphy: Right. Technology is great, but it doesn’t put people in jail. It does tell you where that shot came from and it can tell you Continued on Page 16

Of the four largest Alabama cities, Montgomery has the lowest violent crime rate; second lowest property crime rate. City

Population

Violent Crimes

Property Crimes

Montgomery

202,764

4.29

54.56

Birmingham

212,237

12.37

79.86

Huntsville

178,601

6.52

54.81

Mobile

195,111

8.10

57.37

August 2011 Montgomery Business Journal

Continued from page 15

if it was a .22 or a .45 caliber. You still have to have the boots on the ground to respond to that and the detectives to investigate it. If I’m in a tough economic time, I would rather have the additional officers and additional detectives and resources. When times are more comfortable and there is some grant money, I would love to expand the program. MBJ: The mayor has talked about some additional police substations or precincts near the old Montgomery Mall and on or near West Fairview Avenue. What is the latest on those projects? Murphy: There is a master plan that in good economic times, we would have precincts all around the city. We’ve had to address a little bit of that in the sense we are doing a little better than the state and a lot of other cities. The one in the Montgomery Mall will be a very significant fire station with a police presence. Whether it will be a full police precinct – you’re talking about a full police service with

opposed to full precincts until we can get out of this economic downturn. MBJ: What is the difference in staffing between a substation and a precinct? Murphy: In a precinct, you have all police services. The concept is that a citizen could walk in to a police precinct and get everything they would need as they would walk into Ripley Street (main police headquarters). MBJ: You’re talking about a lot of people. Murphy: Yes. A substation would probably have 10 to 15 people. You would have a patrol division and probably a skeleton crew of detectives. MBJ: What are some of your long-term goals? Murphy: Assuming the economy will continue to move forward, I would like to see police precincts or at least a permanent police presence at strategic locations along the city. I would love for the Department of Public

is better at recovering evidence. That’s a good way for us to combine a resource and use each other’s expertise. I would like to see more areas like that. I would like to see the Department of Public Safety continue to pinpoint areas where we can be more efficient and more effective. Another one that I am excited about right now is – we have a number of firefighters and sometimes police officers who get injured on duty. The injuries may not be debilitating, but it causes them not to be able on a fire line or not to be in a patrol car. They can still do a function what everybody calls light duty. We also have had a constant problem in communications with a high turnover and a staff shortage. We are now going to identify long-term light duty candidates from several months to eight months and send them down to the Department of Public Safety. We are not shifting them into another agency, but take them to the Department of Communications,

“It’s about relationships – our relationships with citizens; with neighborhood associations; the media; Chamber; and business community. “ every detective division you need; you’ve got juvenile; you’ve got family services; you’ve got a jail. We have to look at that, reduce it some and say let’s narrow down that jail to a couple of holding cells and we will transport them back to the main jail. MBJ: What you call a substation? Murphy: That’s right. It will be a full fire with probably three different units in it: suppression, EMS and ladder truck. There are a couple of different sites for the police presence. We are still in negotiations and believe we will have a police presence by the Farmer’s Market on Fairview, which will be a temporary police presence. We would love to have a substation at that location. In the short term, we will look at police substations as

Montgomery Business Journal August 2011

Safety to be an integral part of the growth of Montgomery. I believe that Montgomery is on the cusp of that next level of growth. If downtown and all of Dexter gets booked up, you are going to need to see more bike patrols; more police walking the beat. The police change as Montgomery changes. And the same thing for fire. No. 1, I would like to see us be the first fire department in the State of Alabama to get a No.1 ISO rating. I would like to have more communications officers. I would like to see more areas we could combine forces.

give them some of the basic training and let them become call takers or dispatcher. It would help the Department of Communications significantly in their manpower shortage, but get a better use out of that individual without putting them at any health risk. That’s another good way of using this brain trust of all three agencies sitting at the table together. We’re able to define areas that because we are together now – we can do a better job with the citizens that we serve.

MBJ: Do you have an example?

MBJ: Going back to the negative perception of crime rates in the city … Isn’t perception even an inaccurate perception – the reality?

Murphy: We have a police dive team and a fire dive team. We are now making a Department of Public Safety dive team. The fire team is a little more advanced and the police team

Murphy: I think it is a process of continuing to get that message out, but not be haphazard about it. It needs to an orchestrated event. We didn’t get the reputation overnight of

having a bad crime rate and we are not going to correct that perception overnight. I don’t think it is a quick fix. It has to be something we hammer on. We have to be sure that all the City Council know that they bring it up when they go to Kiwanis Clubs or Rotary Clubs and neighborhood association meetings. Everybody needs to be singing that same sheet of music. If the crime rate goes up, we have to be honest about that. We have to be transparent. We need to continue to do our job well – be excellent – but we have to have everybody singing that same song that the crime rate is really not where it is. You touched on a point that we need to be responsive to the citizens who pay us and they are who we work for. Whether the news is good news, we are certainly going to do that (spread the message). But when there is bad news – if there is an incident of misconduct, we need to be honest about that, too. We are going to be upfront about that. There are going to be consequences to actions. There is a good process in effect. It’s about relationships – our relationships with citizens; with neighborhood associations; the media; Chamber; and business community.

MBJ: There is a highly visible police presence downtown now with all the redevelopment that has been going on. Murphy: As Montgomery grows, police, fire and communications not only has to keep up, but be a part of that growth. One of the great successes about downtown has been the bike patrol. That has been so successful we expanded that now to neighborhoods. We are putting a lot more bikes in neighborhoods because they are quieter. They are an effective tool. They are not the only tool in the tool chest. We can’t always depend on them. The black-and-whites have their purposes. The Suburbans have their purposes. There are a lot of tools and we don’t need to be narrow-minded and get to thinking that any one tool is the tool that works all the time.

saw a black-and-white stopped. There was a group of women there. Then the officer gets out and I wonder what is going to happen. Then they gather around him. He takes their camera and they pose. He takes their picture and they thank him. He gets back into the patrol car and drives away. I (thought) that’s great. I don’t know if they were visitors or residents, but if they were visitors what image do they now have about Montgomery? It’s breast cancer awareness and a police officer gets out of his black-and-white takes a picture and they have a good encounter with him. He’s there to enforce the law, but what a great exchange and encounter with the Montgomery Police Department. It thrilled me. I didn’t get much work done for 15 minutes. It was a great experience. •

MBJ: The bike patrol officers are much more accessible to the public. Murphy: Absolutely, especially in the downtown area where you have people walking. Back when the fountain was pink, I was sitting in my office looking out and I

August 2011 Montgomery Business Journal

Member Profile

Gary Harrison is CEO/general manager of Dixie Electric Cooperative.

Membership Has Its Advantages Dixie Electric Cooperative prides itself on customer service by Jennifer Kornegay

Over 70 years ago, when rural areas of the country were being “kept in the dark” by investor-owned power companies, President Franklin D. Roosevelt saw the critical need for electric cooperatives.

Montgomery Business Journal August 2011

He signed Executive Order 7037, establishing the Rural Electric Association. Dixie Electric Cooperative, based in Montgomery, was incorporated in 1938 and first delivered electricity in 1939. Today, Dixie Electric delivers the power and services needed to run homes and businesses to 23,000 customers in portions of eight counties in Central Alabama. CEO/General Manager Gary Harrison made an important distinction when he spoke about Dixie’s customers. “We actually call them member-owners,” he said. Dixie functions as a member-owned electric utility, and is a non-profit organization, in contrast to investor-owned utilities that are in business to make money for investors. Any margins made are allocated back to the member-owners in the form of capital credits. It is currently one of the fastest-growing electric cooperatives in the state. Harrison credited the employees for playing a large role in this expansion. “One of our greatest strengths is our employees,” he said. “They are very dedicated, and their dedication is always evident, but you can really see it when we have a severe weather event like a hurricane or an ice storm. They all have issues to deal with at their own homes, but they are here working around the clock for our members. That’s when you really appreciate how committed they are.” A nine-member board of member-owners governs Dixie Electric, and they too play a part in its success. “Our board is very active, and members have given us some great vision and leadership through the years,” Harrison said. Membership in the cooperative is open to any of the utility’s customers, but only people in Dixie Electric’s designated service areas can use the organization as their energy provider. “Our industry is unique in that way,” Harrison said. “We have defined territories, and people don’t have a real choice about using us. But that means we strive even harder keep our members satisfied.” One way to keep them smiling is to stay in step with new technologies, including making use of eco-friendly energy sources. Another is to keep monthly energy bills low. Garrison explained how a focus on energy efficiency accomplishes both. “One of the biggest issues we have concerning green power is that there is not as much of it available here as there is in other parts of the country,” he said. “We are using methane gas from a landfill to provide some power, and our members can opt to be a part of that with our Green Power Choice program. We have been getting more inquires about it lately. But making your home more energy efficient is a great way to go green and save money in the process, so we put a lot of emphasis on energy conservation.”

Name

Dixie Electric Cooperative Date founded

Incorporated in 1938. First power lines energized on July 31, 1939 Number of employees

Number of member-owners

23,000

Dixie Electric encourages its members to become more aware of the energy they are using in an effort to use less and offers a wealth of tips and tools to help people reduce their energy consumption. “Making your home energy efficient can actually save you more money than some of the other ‘green’ power options,” Harrison said. “We are focused on putting power back in the hands of our members.” A prime example of that philosophy in action is a free service called MyUsage.com. “Two years ago, we put in automated meter reading, so now our members have the ability to log onto MyUsage.com and check their daily usage. They can even set limits. With this one tool, we’ve helped many of our members become more aware of what energy they are using and when and why.” Those members taking advantage of the program often see that the weather is a major factor. “Once they can see their habits, they can make changes and lower their bills,” Harrison said. Dixie Electric’s pre-pay program also gives customers more control, allowing them to buy blocks of electricity. “When you get close to your limit, you get a phone call, text or email that lets you know,” Harrison said. “In this economy, that has helped our members.” Dixie Electric has grown and maintains a reliability rate of 99.98 percent. Its most recent American Consumer Satisfaction Index score was 91. In comparison, the average score for the electric industry is 74. Harrison explained why the utility couldn’t get away with anything less. “We’re not some faceless corporation somewhere else,” he said. “We live right here with our members in the communities we serve, so people have real access to our employees and to me. That makes us very accountable. And we really pride ourselves on our customer service.” •

August 2011 Montgomery Business Journal

Broader Appeal The Waters hopes to attract a ‘much bigger market’ with new pricing and an upstairs option

by David Zaslawsky

Montgomery Business Journal August 2011

Some of those prices for homes in prestigious East Montgomery subdivisions were $369,000, $459,900 and $574,000. There were other homes for sale for $895,000 and $400,000 and some between $250,000 and $300,000. All of those prices were more than two of the three listings for The Waters, one of the most exclusive neighborhoods in the River Region. Those two homes at The Waters were listed at $246,600 and $274,500. There was a third listing for a lakefront home for $329,900. That shows just how far The Waters has evolved. “The market has changed,” said Tommy Brigham, partner and chairman of Birmingham-based Ark Real Estate Strategies, which bought 500 acres at The Waters, including the 200-acre Lake Cameron and two smaller lakes. “Everybody has been affected from the collapse of the real estate industry. All of us have to adjust to what the consumer of today is interested in buying. What we found was in East Montgomery area (including Pike Road) there were about 250 people a year buying houses in the $250,000 range and The Waters was getting none of them. “I think we made The Waters a far more reachable option for a much bigger market.” Welcome to the new Waters, where you can still build a $1 million mansion or pay upward of $500,000 for a large, lakefront estate, but you can also be part of the traditional neighborhood development for about $250,000.

“We took the approach that if we could have a certain amount of space downstairs that was attractive and then have the option of going upstairs to increase your square footage – that would be a very attractive option,” said Brigham, whose group purchased The Waters more than a year ago. That upstairs option coupled with new pricing and building spec homes has had a dramatic impact on the development. Eight new homes and 10 lots were sold the first five months of the year for a combined $3.3 million. Ark Real Estate Strategies started with seven spec houses at The Waters and Brigham said five of those sold “fairly quickly.” One of those is being used as a model and another was just finished in early summer. “We felt in order to come in here and enhance the development and to reposition and rebrand in a significant way, we had to create product and put it in the ground,” Brigham said.

The Waters, which has 185 homes and room for about 750, features so many amenities that the development markets itself: “It’s not a vacation home. It just feels like one.” The Waters is built around Lake Cameron, but there is so much more from the Chapel Hill meeting house, five lighted tennis courts, pool and pool house, miles and miles of trails, wide sidewalks, bark park, basketball court, playground and beach not to mention fishing and kayaks and canoes. Those amenities have led to numerous events at The Waters, including an annual fireworks show, fishing tournaments, community suppers, beach luau, back to school bash and music events. Then there is the Town Square with a number of outlets, including a dentist office, Wishbone Café, community post office, YMCA and an interior decorator. In four years, there might be a Pike Road public school at The Waters, which is donating 40 acres for the site. The school would most likely be K-8. That would give The Waters a real boost, according to Brigham. •

The new owners are cost-conscious. Brigham said there is a metal roof option that costs $8,700. “If you don’t get the metal roof that’s a big savings in today’s economy and it makes a big difference,” he said. Making the houses more affordable while maintaining all the high standards and quality is what Ark Real Estate Strategies brought to The Waters. The company is still tweaking its products. Brigham showed a reporter how kitchen counter tops will be moved slightly or turned in another direction. The development itself is also being tweaked to enhance the entrance to The Waters; enhance the entrance to Welch Cove and making the Town Square even more pedestrian friendly and more conducive to outdoor activities.

PIKE ROAD – There were a wide variety of homes for sale in a recent Sunday Real Estate section of the Montgomery Advertiser.

For that $250,000 or so you can buy a three-bedroom, two-bath house that is about 1,800 square feet. The Waters offers a unique option of finishing the upstairs, which according to Brigham costs between $20,000 and $30,000 – depending on what is done – to add another 800 square feet. Now a homebuyer has a 2,600- to 2,800-squarefoot house for less than $300,000. A finished model features a completed upstairs with two bedrooms, two bathrooms and a large game room.

Jennifer Atkins, vice president of marketing operations for New Waters Realty Co., and Tommy Brigham, partner and chairman of Ark Real Estate Strategies.

Brigham was quick to point out that with The Waters a homebuyer “is not just getting a house – you are getting a whole lifestyle.”

August 2011 Montgomery Business Journal

Chamber’s Total Resource Campaign launches mid-September by David Zaslawsky

The top producers from last year’s Montgomery Area Chamber of Commerce Total Resource Campaign were Carol Gunter, public relations administrator for the City of Montgomery; and Richard Younger, a certified public accountant with Aldridge, Borden & Co. This year’s TRC Chairman is Chamber Chairman of the Board of Directors Larry Puckett (right). © Fouts Commercial Photography

Montgomery Business Journal August 2011

Volunteers are the foot soldiers selling various products and sponsorships in the Montgomery Area Chamber of Commerce’s Total Resource Campaign (TRC). The success of the TRC depends on the collective success of the volunteers and TRC Chairman Larry Puckett, who is also the Chamber chairman has some encouraging words for companies. “One of the things we like to think is that employers loan us their best and brightest and we’ll give them back better and brighter,” said Puckett, who directed the second TRC in 2007 when the program raised more than $700,000. That record stood until last year when about $760,000 was raised under then Chamber Chairman Nimrod T. Frazer Jr. despite an anemic economic recovery. Puckett said the volunteers learn sales techniques from other volunteers. They also get face time with company executives whom they might not meet in their daily business routines. “They (volunteers) are not only representing themselves, but they are representing their company and they are helping us all make Montgomery a better place,” Puckett said. “It’s a win-win for the companies that allow their people to do this and it gives their company exposure. I promise you that everybody knows where the (TRC) top producers work. “From the business-side, companies can plan for their events. They can make this part of their budget.”

Year

Chairperson

Amount raised

2006 Ray Petty

$553,365

2007 Larry Puckett

$706,000

2008 Gene Crane

$669,907

2009 Guy Davis

$683,360

2010 Nim Frazer

$760,474

Total

$3.4 million

The sixth TRC is scheduled to start in midSeptember. The campaign’s details are still being finalized, but companies may sponsor events with prices ranging from $400 to $7,500. The TRC funds the Chamber’s programs, events, publications, electronic media and aids in recruiting members. This year’s goal is $750,000, an increase of $50,000 from last year. The five previous campaigns have raised a combined $3.4 million. “The TRC allows our staff to plan these events and expose the things that the Chamber does,” said Puckett, who owns Larry Puckett Chevrolet in Prattville. “It obviously has the revenue side, but it also gives us a little more structured environment. It allows our members a vehicle or platform to showcase their wares, talk about their company and be a part of what we do here at the Chamber which is trying to make a better place for all of us.”

This marks the second straight year that the Chamber’s chairman has also directed the TRC. “If you’re (involving) the Chamber chairman and that’s our MO (modus operandi) down the road, you’re obviously giving it more than lip service,” Puckett said. “It (TRC) is a very important thing to the Chamber for a lot of reasons and obviously revenue is one.” Puckett said the Chamber’s chairman involvement in the TRC tells the members “the importance” of the campaign. Each year the campaign is tweaked as lessons are learned. Meetings are held with the top producers after a campaign and before the next one to discuss what works and what doesn’t. Puckett said last year’s campaign “was a lot more structured” and exceeded its goal by nearly 9 percent. Meanwhile, volunteer participation increased 52 percent from the 2009 TRC and there was a 51 percent increase in the number of new members. One hundred joined the Chamber during last year’s TRC compared to 66 in 2009. “We can make all the rules we want, but at the end of the day it’s the people who are involved out there on the street selling that makes a difference,” Puckett said. “You want their input to know what works for everybody.” Patsy Guy, vice president, member & investor relations for the Montgomery Area Chamber of Commerce, said, “Top producers are motivated by that personal competitive spirit and because they believe in what the Chamber does and they believe in the impact of what they are doing.” •

August 2011 Montgomery Business Journal

Gen. Craig S. Olson oversees about 2,200 people at five locations as program executive officer of the Air Force Program Executive Office for Business and Enterprise Systems. ÂŠ Fouts Commercial Photography

Montgomery Business Journal August 2011

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Looking for ways to operate a business more effectively and efficiently is commonplace in the private sector. When an Air Force brigadier general repeatedly talks about operating more effectively, efficiently and reinvesting savings he sounds more like a CEO than a PEO. Meet Gen. Craig S. Olson, program executive officer (PEO) of the Air Force Program Executive Office for Business and Enterprise Systems. Saving money is always on his mind. “Yes, it’s moved to the front of our minds because of budget constraints are rather significant,” Olson said. “It moved to the front of our minds to be always looking for a more efficient and effective way to do business. Every organization – Taco Bell – should do that. As a large Air Force corporation we owe it to our taxpayers and of course our airmen to do this and furthermore, we are motivated by the reality of the budget to do it.” Money, money, money. Olson said he is running the PEO he oversees as a corporation – a very large corporation that consists of the Air Force and Department of Defense. He said his information technology organization, which is headquartered at the Gunter Annex in Montgomery, is “highly motivated” to take advantage of existing services to eliminate duplication and save money.

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He said there will be fewer dollars in the future as the defense budget shrinks. “Rather than cut work out,” he said, “if you could find a way to save money and reinvest that saved money into the work that needs to get done – you don’t have to cut the program. “From the Secretary of Defense on down, we are all incentivized and motivated to find efficiencies in our work. If you could get a few processes out; streamline a few things; save some money and reinvest that money somewhere else, you could buy an extra airplane. You could buy an extra IT system because that’s the only way you will be able to do it. You’re not going to be getting more money in the budget.” It definitely sounds like the private sector mantra of doing more with less and then Olson reminds a reporter of the important work his organization does. “We are here to provide for the airmen to keep this country safe,” he said. “That’s the bottom line.” But now the bottom line is also the bottom line and that was a factor in the Air Force’s creation of a new system July 1 last year. That was when Olson’s organization’s was launched, when the 554th Electronic Systems Wing was deactivated and the number of Program Executive Officers was greatly expanded to take advantage of senior leadership. Continued on Page 26

August 2011 Montgomery Business Journal

Mission statement

Source: Air Force Program Executive Office for Business and Enterprise Systems

Vision statement

A trusted and purpose-driven combat/ mission support IT organization characterized by … A positive culture based on mutual trust and respect that attracts, grows and retains the very best people Adherence to well-documented processes which facilitate effective and efficient acquisition, operation, and sustainment of enterprise IT capabilities and infrastructure

So what exactly is the Program Executive Office? It is “an acquisitioning program management organization inside the Air Force,” Olson said, and are organized “by the types of things you are acquiring and delivering.” The Air Force Program Executive Office for Business and Enterprise Systems is all about information technology. Olson said it is information technology that includes business-related systems, contracting, personnel, some combat support and mission support. There was another Program Executive Office that was handling logistics systems and involved parts and supplies that could be on a base or aircraft. That piece was merged with Olson’s organization. “The driving motivation was to get a better opportunity to effectively and efficiently manage similar (information technology) programs,” Olson said. “They have similar programs; they have similar stakeholders; they have similar challenges to put them in a single PEO portfolio makes (sense).” He now oversees about 2,200 people at five sites, including 600 to 700 at Gunter Annex. Those other sites are Wright-Patterson Air Force Base in Ohio; Hanscom Air Force Base in Massachusetts; Randolph Air Force Base in Texas; and a small contingent of people at Hill Air Force Base in Utah.

Defined priorities that optimize resources to deliver agile capabilities on a robust, services-based infrastructure

His responsibility has been expanded and now Olson also is in charge of 100plus programs of various sizes and two of those programs are massive: a financial program and logistics program. The finance program will enable the Air Force to “account for every dollar spent,” according to Olson and do it accurately.

Effective trust-based stakeholder relationships within the government and industry IT community

“This is for the corporate Air Force,” Olson said. “I want to audit every dollar spent because I owe that to the taxpayer and everybody else. I want to make it automated as possible. I could do it with a pencil and paper and lots of man hours or I could do

Source: Air Force Program Executive Office for Business and Enterprise Systems

Continued from page 25

Montgomery Business Journal August 2011

Acquiring, operating, sustaining, and enabling enterprise IT capabilities while accelerating the modernization of infrastructure to support the warfighter across the spectrum of combat and mission support.

Gen. Craig S. Olson was named program executive officer (PEO) of the Air Force Program Executive Office for Business and Enterprise Systems last July.

it with a lot of automation with fewer man hours and definitely improve the accuracy, too.” Simultaneously, a logistics program is being developed that will account for what the Air Force is buying. “You have to know the numbers of what you’re buying and the dollars it is costing – it is all part of that audibility requirement,” Olson said. Both of those programs are operational at one base for a certain number of users and the goal is to include all personnel at all bases. Olson stressed that the programs are key components of the Air Force’s “corporate audibility.” The programs are replacing that pencil and paper he mentioned and all the smaller, older systems that are not compatible. “We are trying to replace all that with a single, enterprise resource planning system that integrates all those functions; alleviates the man hours required and does it more accurately.” Olson and his organization are reinventing the wheel and that has been going on for the past year. He said there was not an acquisition organization or a PEO for information technology prior to July 1, 2010. “What you’re seeing is a journey … and the journey is very new for IT PEOs – brand new.” To get his arms around the issues involved, Olson studied all the moving parts to develop mission and vision statements. It was no simple task. About seven months before work began on developing those statements, Olson and his staff were learning about all

the moving parts in the information technology world. Olson said that the entire Air Force is essentially an operator of IT from desktop computers to Blackberrys to aircraft. “We had to study and understand where we as a PEO fit in that whole engine,” Olson said. The learning curve was particular steep for Olson who was not “an information technology person” before coming to Gunter Annex. “It’s not so much how you acquire an IT (program), it’s more about the community of players and how do we all understand and how can we work more effectively together in delivering IT for warfighters,” Olson said. “That’s what this mission and vision tried to capture. We have regular meetings that take the vision we developed and create initiatives – specific projects that lead to something deliverable to allow us to achieve the vision. We gathered this morning to go through some of those projects that were executed.” Olson’s organization, unlike other Program Executive Offices, handles both acquiring and sustaining programs. He said a Program Executive Office usually develops something and then delivers it, which is acquisition, but other organizations “sustain something after it’s been delivered,” he said. “That was something new and the question was how do we do both effectively. You are really talking about the whole life cycle of a system: developing it, testing it, delivering it and sustaining it over its life cycle in one organization

“In some ways it has great advantages to follow something from its inception all the way through its sustainment in one organization if you’re organized well to do that.” Before concluding an interview, Olson asked to make a statement about the military’s appreciation for all the community support from the City of Montgomery, Montgomery County, Montgomery Area Chamber of Commerce and the businesses in the River Region. Olson said he “felt very blessed” for the community support and noted that it has “been very delightful to deal” with all the entities. •

Air Force Information Technology Conference grows from humble beginnings by David Zaslawsky More than 25 years ago, the Air Force Small Computer Conference was held at the Montgomery Civic Center. The year was 1983 and the featured speaker at the event was Donald P. Moffet, president of Zenith Data Systems. There were about 40 seminars/workshops for the conference participants and about 65 vendors attended the two-day event in late October. The conference in 1996 became known as the Air Force Information Technology Conference (AFITC) and now annually attracts about 5,500 people who fill up hotel rooms across the River Region. The conference, which is scheduled Aug. 29-31 at the Renaissance Montgomery Hotel & Spa at the Convention Center, has an estimated economic impact of $30 million. The theme is: “IT Transformation: Conquering the Cloud.” It has come a long way from humble beginnings. Now the annual conference features 135 seminars/workshops and 200-plus vendors are in attendance. The top executives from the high-tech world speak at the conference. Those executives have been with Google, Verizon, Microsoft, McAfee, Research In Motion, Sun Microsystems, Hewlett Packard, Dell Computers, Oracle, Cisco, Symantec and Akamai.

The Air Force Information Technology Conference annually attracts 5,000-plus to Montgomery.

The government is well represented at the AFITC. The vice chairman of the Joint Chiefs of Staff has attended a conference as has the Air Force Chief of Staff. There were six government speakers at last year’s conference. The conference has been at the former Montgomery Civic Center, which was expanded into the convention center and Auburn University at Montgomery, when the convention center was under construction. There were no conferences in 1985 and 2005 because of budget constraints. To register for the conference go to http://afitc.gunter.af.mil.

August 2011 Montgomery Business Journal

Lofty Goal

Hyundai-Kia Automotive Group expects to sell 1 million units in U.S. in 2011 by David Zaslawsky

Montgomery Business Journal August 2011

Visitors are frequently impressed by the sheer size on the Hyundai Motor Manufacturing (HHMA) plant in Montgomery during guided tours. Not only is the physical plant huge, but HMMA is the largest manufacturer in the region with 2,500 employees and will add another 200plus during a modification and expansion of an engine shop. To gain a better appreciation and understanding about HMMA’s parent company – Hyundai Motor Co. (HMC) – and its impact, a trip to Korea is mandatory. It is there that you begin to grasp just how large HMC and what the company means to its country.

Elantra wins shootout

Hyundai Motor Co. has been on a meteoric rise to become the world’s fifth-largest automaker in the world and this year could surpass Ford to become No. 4. As dramatic as that growth has been – Hyundai Motor Co., which consists of the Hyundai-Kia Automotive Group, ranked 11th in the world in 1999 – Hyundai officials are not satisfied. They feel they should have reached that plateau sooner. It comes as no surprise that HMC officials have aggressive sales goals this year. The company has been on the fast track for a decade. The company is one of largest in Korea and has had a tremendous impact on the country’s growth. Company officials expect to sell about 3.9 million vehicles worldwide, which is nearly an 8 percent increase from 2010. The U.S. market is expected to account for about 25 percent of those sales. Hyundai sold a record 538,228 units in the U.S., but that is yesterday’s news. Now, company officials are looking at 600,000 units, an increase of more than 11 percent from 2010. When you add an expected 400,000 units from Kia, the combined goal is 1 million units in the U.S. this year. Those are lofty goals during a slow economic recovery and an amazing projection considering that Hyundai sold less than 250,000 units in 2000.

The company expanded its worldwide footprint by opening a manufacturing plant in Russia last year and began construction of a third plant in China, which will increase capacity there to 1 million units year. This year, construction was started on a manufacturing facility in Brazil. The company is geared up to climb the ladder of the worldwide brand rankings and has been in the Top 100 global brands for five straight years. The company rolled out a brand slogan campaign: “New thinking. New possibilities.” Some of that new thinking revolves around a slew of eco-friendly technology, which features zero-emission vehicle; hybrid electric vehicle; electric vehicle; and fuel cell electric vehicle. Four vehicles – more than any other automaker – get 40 mph on the highway without extras: Accent, Elantra, Sonata hybrid and Veloster, which will be available in the U.S. this year. HMC spends about 5 percent of its budget on research and development. In 1995, the company opened the Namyang Research and Development Center, a world-class, 870-acre facility with 8,000-plus researchers and 400 top designers. It is one of six design centers worldwide. The proving grounds feature 34 road surfaces and about 30 miles of track. It is here where the company develops its vehicles in a process that can take three years from concept to production. Speaking of production, Hyundai has the world’s largest manufacturing plant in Korea, a five-factory facility in Ulsan, where about 34,000 are employed. There are two, 10-hour shifts and those workers can eat at one of 24 restaurants. The Accent and Veloster are produced at Factory No. 1; Veracruz and Santa Fe at Factory No. 2; Elantra at Factory No. 3; commercial vehicles and Genesis Coupe at Factory No. 4; and Genesis and Equus at Factory No. 5. The No. 5 factory has 580 employees who manufacture 240 vehicles a day: 170 Genesis models and 70 Equus models, which is about 13 units per hour. Overall, the facility turns out a vehicle every 12 seconds. The manufacturing plant produces nine different engines.

The 2011 Elantra was declared the winner of the “Best Value: Price to Pump” award by Cars.com. The Elantra emerged victorious in a shootout with other cars that get better than 35 mpg, seat five passengers and cost less than $20,000. “Based on our results, every car shopper looking at this segment needs to put the 2011 Hyundai Elantra at the top of their consideration set,” said Patrick Olsen, editor-in-chief of Cars.com. He wrote that the Elantra has “refined styling, solid handling and a comfortable interior” as well as gets 40 mpg and offers “incredible affordability.” The 2011 Elantra was the 10th bestselling vehicle in May with 20,006 units. The Sonata was No. 7 on the Top 10 list with 22,754 units. The top two sellers were Ford F-Series and Chevrolet Silverado. Both the Elantra and the Sonata are produced at Hyundai Motor Manufacturing Alabama’s plant in Montgomery.

The plant is so large that it has its own port and that port is so large that it can handle three, 50,000-ton ships anchored at the same time. Each of those ships can transport 6,000-plus vehicles. Last year, more than 900,000 vehicles were shipped from the plant and 28 percent of those vehicles are sent to North America. The Ulsan plant can manufacture 1.6 million vehicles a year – 5,600 vehicles a day. It also has a capacity of nearly 2.2 million transmissions a year. It is one of three plants in the country. One of those plants produces commercial vehicles and another manufactures the Sonata and Azera equivalent. Hyundai’s impact in Korea does not stop there. The company owns Hyundai Steel Co., which is the second-largest steelmaker in the country. Hyundai Steel invested about $5.5 billion in the steel mill and a third blast Continued on Page 30

August 2011 Montgomery Business Journal

Commitment to work Koreans rebuild war-ravaged country in just 60 years by David Zaslawsky

An executive at Hyundai Steel said he lived too far away from the plant to commute daily so he lived in a guest house. He said he worked Monday through Friday and left Saturday morning to visit his family. He returned Sunday to take care of personal business such as cleaning, shopping, etc. That story vividly shows the Korean work ethic, a work ethic that was forever changed by the Korean War when the capital of Seoul was destroyed and about 90 percent of the country occupied by North Korea. How do you rebuild a country? Koreans dedicated themselves to work. They sacrificed so future generations could live in better conditions. In a short span of about 60 years, Korea has emerged as one of the world’s top 15 economies. When you visit Korea, you begin to see their perspectives. You see that devotion to work at the top of corporations as chief executive officers start their day at the office at 6:30 a.m. and stay for 12, 13 or 14 hours a day. Education is stressed in the Korean culture. Students are required to study English and may study additional languages as electives. Young Koreans are now learning Chinese. A private university costs about $10,000 a year. Koreans pay to attend high school and begin wearing school uniforms in middle school. Both middle school and high school are three years long. Korea, according to a tour guide for a group of community leaders from the River Region, is very Western, but there still is the blend of new and old. In downtown Seoul, a visitor will see a restored royal palace as well as the president’s residence – the blue house, where you are allowed to drive by, but not take pictures. Downtown Seoul is home to the financial center, press center, City Hall and government offices, including ministry offices. Electronic companies test products in the Korean market, where smart phones are commonplace and the people are considered very tech savvy.

Montgomery Business Journal August 2011

The country was also the fifth to develop a high-speed train that travels 180 mph to 200 mph. The country is so densely populated that about 60 percent of Korea’s 50 million people own apartment units in high-rise buildings that may have 60, 80 or 100 floors. Some of the apartment units in Seoul cost between $500,000 and $1 million, while other sections and other areas of the country cost about half as much. Because of that cost, young people save money for years to buy their apartment – often saving 30 percent to 40 percent of their income. Young people also save to marry and an estimated 90 percent marry at private wedding halls. The brides rent their dress and the grooms rent their tuxedos. There is a minimum wage, which is around $5 per hour and there are minimum wages for a week and month. The income tax rate is 18 percent for salaries up to $40,000. There are additional taxes paid on incomes more than $40,000. Average salaries increase from $40,000 or $45,000 to $60,000 after 10 years. The country’s unemployment rate is around 4 percent after peaking at 8 percent during the height of the global recession. There is a value-added tax of 10 percent. A tour guide said Korea has a need for foreign workers and many come from China, Vietnam and the Philippines. She said that the foreign workers do the “difficult, dirty and dangerous” jobs. Travelers may be refreshingly surprised at how clean the cities are and even the high-speed train stations are spotless.

Continued from page 29

furnace is under construction. It is expected to be completed in 2015 and will increase the mill’s capacity of high-grade steel to 12 million tons. It is expected that the company will be ranked in the world’s top 15 for annual output. The mill produces the high-quality steel used in vehicles, ships and consumer durable items as well as turning steel scrap into a variety of products. The country will be able to reduce its reliance on imported steel, which exceeds 20 million tons of semi-finished steel products. Now, you are beginning to understand what Hyundai means to Korea. •

Hyundai shatters sales records by David Zaslawsky Hyundai has found the perfect encore for its record-setting year in 2010 – shatter those marks in 2011. The Korea automaker, which for the first time reached the plateau of 500,000 vehicles sold last year, is on pace to sell 600,000-plus units this year. After the first six months this year, Hyundai had already sold a record 322,797 vehicles. That is a 26 percent increase from a then-record 255,782 units last year. The company’s top two best-sellers Sonata and Elantra - are both produced at the Hyundai Motor Manufacturing Alabama (HMMA) plant in Montgomery. Both vehicles have topped the 100,000 mark in six months and have accounted for about 68 percent of all Hyundai sales this year. Almost 20,000 Elantras were sold in June and more than 18,000 Sonatas were also sold. The company set a sales record for June with nearly 60,000 units and it was the sixth straight all-time monthly sales record in 2011. Not surprisingly, the HMMA plant is on a record production pace this year and is expected to produce 330,000 units, topping last year’s total of 300,000. The production totals – 175,000 units in six months - have increased 13.2 percent from 2010, according to Robert Burns, senior manager of public relations and sales for HMMA. •

HMMA grows again Automaker investing $173 million in engine shop, creating 214 jobs by David Zaslawsky

When Hyundai Motor Manufacturing Alabama (HMMA) first opened its Montgomery facility in 2005, the Korean automaker was building the 3.3-liter, 6-cylinder Lambda engine. That new engine was one of the options for the 2006 Sonata and was the company’s most powerful V6, which had 235 horsepower. A 2.4-liter, four-cylinder Theta engine was also available for the Sonata, but the engine was imported from Korea. Just a few years later, HMMA announced it was supplying its sister company – Kia Motor Manufacturing Georgia – with engines which required building a second engine shop in a $270 million expansion that created 522 jobs. At that second engine plant, HMMA was producing the 2.4-liter, four-cylinder Theta engine for both Kia and for use in its vehicles. HMMA stopped importing the Theta engines from Korea in 2010. The nearly 350,000-square-foot engine shop was operational in September 2008 and could produce 300,000 units a year.

said at a formal news conference. “This is another example of Hyundai’s efforts to make products close to its assembly plants.” The retooled engine plant will enable HMMA to produce 300,000 Nu units for the Santa Fe and Sorrento vehicles being built in the Kia facility and being used in the Elantra in Montgomery. It will also increase the capacity for the Theta engines that are used in the Sonata. “This investment is another example of HMMA’s strong commitment to the people of Montgomery and the people of Alabama,” Lim said. Nearly all of the capital investment - $163 million – is for retooling and equipment with the remaining $10 million for the physical expansion of the engine plant. Alabama Gov. Robert Bentley said, “This will be a great opportunity to put more people to work in good, high-paying jobs here in the region as we try to put people back to work in Alabama. I would like to thank Hyundai for their addition to our great state and for what they mean to us.”

Montgomery County Commission Chairman Elton N. Dean said, “It’s a great time to be an Alabamian and it’s a great time to be a Montgomerian.” He, too, thanked HMMA as did Montgomery Mayor Todd Strange, who said how important it was that the Montgomery delegation, City Council, County Commission and Montgomery Area Chamber of Commerce all worked together on the expansion. “To have an existing company that has confidence in us, our work force and our community and say we want to continue to expand – speaks volumes about the things that we can do,” Strange said. The new engine plant is expected to be completed in the fall and production is scheduled to start in March. Montgomery Area Chamber of Commerce Chairman Larry Puckett said, “HMMA has been a great partner and has had a significant impact on the River Region’s economy. Hyundai has played an important role in making Montgomery a better place to live, work and play.” •

Meanwhile, Hyundai shifted production of its Santa Fe to the Kia plant; started manufacturing the Elantra in Montgomery and decided to use only four-cylinder engines in both the Elantra and its Sonata to improve mpg. That meant the original engine shop went quiet. HMMA was now producing the automaker’s top two-selling vehicles and for the first time in 2010 reached its manufacturing capacity of 300,000 vehicles. At the same time, HMMA has been supplying engines to the nearby Kia plant in West Point, Georgia. In its latest expansion announcement in mid-May, HMMA President and CEO Y.D. Lim said the company was modifying and slightly expanding the original engine plant to produce the 1.8-liter, four-cylinder Nu engine, which replaced the Lambda engine. The $173 million expansion will add 214 jobs. “Today marks another milestone in Hyundai Motor Manufacturing Alabama’s everexpanding commitment to the citizens of Montgomery and the State of Alabama,” Lim

Participating in the signing of Hyundai Motor Manufacturing Alabama’s $173 million engine plant investment were (seated, left) HMMA President Y.D. Lim and Alabama Gov. Robert Bentley. (Top row, left) Montgomery Mayor Todd Strange, Montgomery County Commission Chairman Elton N. Dean, F. Berry Grant, chairman of the Industrial Development Board of the City of Montgomery; former Alabama Development Office Director Seth Hammett.

August 2011 Montgomery Business Journal

by David Zaslawsky

It’s pretty straightforward, but not what you would call a common concept with government. That is exactly how the City of Montgomery operates and why the city’s Development Department offers a monthly opportunity for concerned people to swap thoughts in a forum called the Idea Factory. The monthly sessions at One Dexter Plaza are all about ideas. The first session was about what restaurants and retailers would you like to see in Montgomery. Another session focused on downtown public spaces and there was a road trip to Atlanta to visit retail districts. “When we decided to start the Development Department we knew that we needed a way to interact with people and not be real insular,” said Chad Emerson, director of development for the City of Montgomery. “We wanted to engage in a lot of outreach because that’s how you get ideas. We are not so bold as to think we’re the only ones with good ideas.” Those good ideas can and do come from a diverse group of people who attend the Idea Factory sessions, which draw between 40 and 50 people. The attendees represent all age groups from 20s to 70s. They exchange ideas over snacks and refreshments. There are tables with pens and big pieces of paper. While writing down their thoughts, participants “bounce ideas off each other,” Emerson said and that begins a dialogue. At the session about restaurants and retailers, people said they wanted more artisan bakeries; local, downtown coffee shop; healthier dining options; smaller, local hardware stores; and more ethnic restaurant options – South American, German, Turkish and Egyptian. “One of the big things that came out of the Idea Factory is that people were very interested in local and regional brands,”

Montgomery Business Journal August 2011

Community members at an Idea Factory bounce build on each other’s ideas.

Emerson said. “We found that people like local businesses and that’s a good thing because the owners of those companies either live in Montgomery or typically spend a lot more time in Montgomery than the CEO of some distant national chain.” Some ideas from the public spaces session included removing the parking lot at Overlook Park and using that area for green space. Parking could be moved to the street and the speed of the traffic on Maxwell Boulevard could be reduced. Idea Factory participants have also suggested biking paths on the other side of the Alabama River. Two more road trips have been planned for Chattanooga, Tenn.; and Greenville, S.C. Emerson said the trip to Chattanooga will concentrate on riverfront development while the Greenville visit will focus on the “cultural side,” he said. “We are going to focus on how Greenville concentrated on intellectual capital and created downtown destinations and

interesting venues whether they be art venues or performance venues,” Emerson said. The Greenville visit will also study the impact of the nearby BMW manufacturing plant. It is an opportunity to hear ideas from people who didn’t live in the area before BMW was there. That’s the bottom line for the Idea Factory – tapping into the ideas from different people who have had various experiences away from Montgomery. “One way to combat the outflow of creative young talent is to empower then to share their ideas,” Emerson said. “There are a lot of people who have ideas, but (didn’t) know where to share them. One of the things that the Development Department tried to do is fill that gap.” •

Member News

Business Buzz Pat Khamken

Jack Khamken

J&P KHAMKEN INDUSTRIES NAMED SMALL BUSINESS SUBCONTRACTOR OF THE YEAR WASHINGTON – The Montgomery firm of J&P Khamken Industries Inc. was named Small Business Subcontractor of the Year by the U.S. Small Business Administration. Pat and Jack Khamken, brothers and founders of the company, came to the U.S. as refugees from Laos at the end of the Vietnam War. Jack Khamken started the business in 2000 after obtaining citizenship and learning the machinist trade. His brother joined him after completing his military service.

The company provides a wide range of services including manufacturing products for the defense industry, munitions, aircraft components and parts, machine products and assemblies and dockside ship repairs. J&P Khamken Industries has delivered more than 1,000 contracts with a 100 percent on-time or early delivery record. The company has become a valued subcontractor to major defense prime contractors such as Lockheed Martin, BAE, Raytheon Missile Systems, General Dynamics and L-3 Communications. The small business was selected from among 10 regional subcontractors of the year. The award honors small businesses that have provided outstanding goods and services to the federal government as subcontractors. The award was announced as part of the National Small Business Week celebration in Washington. INTEGRATED COMPUTER SOLUTIONS AWARDED DEFENSE INFORMATION SYSTEMS CONTRACT MONTGOMERY - Integrated Computer Solutions Inc. (ICS) announced it has been awarded a contract as prime vendor for the Defense Information Systems Agency (DISA).

Seventy-three teams of cancer survivors, families, caregivers, local faith-based groups, businesses and clubs walked 12 hours.

Steve Goldsby

Under the multi-million dollar, multi-year contract, ICS will provide information technology consulting and support services to the Agency’s Consolidated Communications Center (CCC) in Montgomery.

Since its beginning in 1985, Relay For Life has developed from one man running around a track for 24 hours to a full-fledged international event taking place in 5,000-plus communities and 20 countries with nearly 4 million walkers in the United States.

ICS also announced that it has been awarded a subcontract by Science Applications International Corp. to help support DISA. “We are honored to continue our history of service to the United States Department of Defense, and especially to DISA,” said Integrated Computer Solutions CEO Steve Goldsby. ICS is in its 14th year of providing state and federal agencies, including the Department of Defense, with military-grade information technology security services and products. RELAY FOR LIFE RAISES $127,000-PLUS MONTGOMERY – The American Cancer Society’s Relay For Life of Montgomery raised more than $127,000.

The Annual Kennamer Distinguished Lecture was recently held. (From left) Richard Kennamer, Isabelle Kennamer Dreher, Dr. Gil Wilensky, Seaborne Kennamer and Dr. Wick Many.

LECTURE SERIES FEATURES FORMER MEDICARE, MEDICAID DIRECTOR MONTGOMERY - The Annual Kennamer Distinguished Lecture featured Dr. Gail R. Wilensky, former director of Medicare and Medicaid during President George H. W. Bush’s administration. Wilensky, a senior fellow at Project Hope, spoke about

August 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 33) “The Challenge of Providing Care in a Changing Health Care Environment.” She discussed the uncertainties of health care in the environment of reform and fiscal limitations. The event was sponsored by the UAB Health Center Montgomery and the S. Rexford Kennamer, MD Endowment. The Distinguished Lecture series was established in 1978.. In 2005, Dr. S. Rexford Kennamer, a retired cardiologist and native of Montgomery, provided an endowment to ensure the event’s future.

as a region,” said former Prattville Mayor Jim Byard Jr.

AUM GRADUATES 500-PLUS AT SPRING COMMENCEMENT

The River Region’s landing of Hyundai Heavy Industries’ first North American power transformer plant was listed among SB&D’s “Ten Notable Collective Economic Development Efforts in the South” Winter 2011 issue.

MONTGOMERY – Five of the 500-plus graduates from Auburn University at Montgomery will also have geographic information systems (GIS) certificates.

The SB&D article featured only one photograph, using the cover shot of the Chamber’s Montgomery Business Journal. The picture featured the Montgomery County Commission Chairman Elton N. Dean Sr., Greenville Mayor Dexter McLendon, Montgomery Area Chamber of Commerce Immediate Past Chairman Nimrod T. Frazer Jr., Byard. and Montgomery Mayor Todd Strange all holding a football. To read the story on the economic development partnership in the Montgomery Business Journal, go to www. montgomerychamber.com/HHI.

Southern Business & Development recognizes Montgomery Area Chamber of Commerce MONTGOMERY - Efforts to land international manufacturing companies in the River Region have paid off with job creation and now with recognition by Southern Business & Development (SB&D) magazine. The combined strategy of the City of Montgomery, Montgomery County, Prattville, Greenville and Elmore County and their creation of an incentives package to lure Hyundai Heavy Industries (HHI) to Montgomery is receiving high praise from Southern Business & Development. “We compete on the football field Friday nights, but when it comes to economic development we have to think 34

E & M MOSAICS OWNER COMPLETES MOSAIC FOR AUBURN MUSEUM MONTGOMERY - E & M Mosaics owner Enid Probst recently completed a pathway mosaic for the Jule Collins Smith Museum of Fine Art in Auburn.

AUM offers a GIS certificate program for non-degree seeking students as well as undergraduate and graduate concentrations for those pursing degrees at the university. Students at AUM are equipped to use spatial theory, technology and data to unearth and explain relationships, patterns, entities and attributes related to geographic areas. They also study geography – learning to understand how the interaction between people and their environments impacts culture, politics, economics and ideology. The Auburn Montgomery GIS program recently made news when it was selected by the GIS Corps as one of four U.S. universities asked to assist the Japanese government in processing and analyzing satellite images of Japan’s northeastern coastal cities before and after the recent earthquake and tsunami disasters. The AUM team examined changes in the landscape and created maps for aid workers to use in recovery efforts.

Probst and her assistant Chintia Kirana, worked with nine fourth-grade students in Loachapoka to create the 6 x 6 foot pathway mosaic. The mosaic is a composite of students’ drawings and was fabricated at the E & M Mosaics workshop in Montgomery. Parts of the mosaic were also assembled in Loachapoka during the five weekly classes with the students, who were instructed in the art of mosaic.

Montgomery Business Journal August 2011

Tina Hodge

MONTGOMERY BREAST CENTER DESIGNATED BREAST IMAGING CENTER OF EXCELLENCE MONTGOMERY– Montgomery Breast Center has been

designated a Breast Imaging Center of Excellence by the American College of Radiology (ACR). By awarding facilities the status of a Breast Imaging Center of Excellence, the ACR recognizes breast imaging centers that have earned accreditation in mammography, stereotactic breast biopsy, and breast ultrasound (including ultrasoundguided breast biopsy). “It’s a great honor to receive this designation,” said Tina Hodge, manager of breast imaging at Montgomery Breast Center. “Advanced imaging technology is a tool that’s saving lives every day, and we’re committed to providing the latest state-of-the-art diagnostics to the patients we serve.” The Montgomery Breast Center is a subsidiary of Montgomery Cancer Center. COALITION FOR EDUCATION SUCCESS TURNS TO CALHOUN AND ASSOCIATES CONSULTING WASHINGTON – The Coalition for Educational Success announced it had retained the services of Montgomery-based Calhoun and Associates Consulting. “We see our work with Calhoun and Associates Consulting as a great opportunity to support and develop a wide spectrum of minority and women-owned businesses, as we work to provide traditionally underserved students with a pathway to higher education and a job,” said Penny Lee, managing director of the coalition. Greg Calhoun, president and CEO of Calhoun and Associates Consulting, owns several other businesses including Calhoun Foods. “We are excited that Greg and his team have joined the Coalition in this effort,” Lee said.

BUSINESS BUZZ AUBURN UNIVERSITY AT MONTGOMERY LAUNCHES NEW SPEAKERS’ BUREAU MONTGOMERY – The Auburn University at Montgomery’s School of Liberal Arts has launched a new speakers’ bureau, Scholars Without Walls. The program features professors discussing their areas of expertise before high school classrooms and community groups. “These presentations are free, which we hope will help organizations with tight budgets,” said Michael Burger, dean of the School of Liberal Arts. “High schools, in particular, can often no longer afford field trips. But if you can’t come to us, we’ll come to you.” Since January, Auburn Montgomery liberal arts faculty have spoken to more than 1,000 students from the following schools: Booker T. Washington Magnet High School, Blount Elementary, Wetumpka High School, Enterprise State Community College, Trinity Presbyterian School, Loveless Academic Magnet Program, Montgomery Catholic Preparatory School, Brewbaker Technology Magnet High School and Montgomery Academy. They have also spoke at four public libraries. Professors are available in the areas of archaeology, geography, art, history, literature, music, academics, societal issues and theater. For information or to schedule a presentation, contact Dana Bice at (334) 244-3278 or dbice1@aum.edu. MONTGOMERY CANCER CENTER USING NEW THERAPY MONTGOMERY – Montgomery Cancer Center is the first facility in Alabama and among the first in the nation to treat advanced

John Reardon

W. Inge Hill Jr.

Navan Ward

MONTGOMERY – Beasley Allen Shareholder Navan Ward assumed the role of President of the Alabama Lawyers Association at the organization’s annual meeting.

prostate cancer patients with a promising new therapy. Provenge (sipuleucel-T) is the first in a new therapeutic class known as autologous cellular immunotherapies. It was approved by the U.S. Food and Drug Administration (FDA) for the treatment of men with asymptomatic or minimally symptomatic metastatic castrate resistant (hormone refractory) prostate cancer. Made from a patient’s own immune cells, Provenge is designed to stimulate a patient’s immune system to identify and target prostate cancer cells. “This is one of the most important developments in years for the treatment of prostate cancer,” said Montgomery Cancer Center medical oncologist/hematologist Dr. John Reardon. “We’re proud to be the first facility in Alabama to offer it to patients. Whether immunotherapies or other advanced treatments, we’re committed to providing state-of-the-art care here in Central Alabama.” HILL, HILL, CARTER, FRANCO, COLE & BLACK ATTORNEYS NAMED TO PRESTIGIOUS LIST MONTGOMERY – Hill, Hill, Carter, Franco, Cole & Black attorneys Robert W. Bradford Jr. and W. Inge Hill Jr. were named by Alabama Super Lawyers magazine as two of the top attorneys in Alabama for 2011. Bradford was recognized for his work in business litigation and Hill for his expertise in real estate.

Ward takes the office following his professional colleague at Beasley Allen, Larry Golston, who served as president from June 2010-2011.

David Henderson

“I look forward to continuing and expanding some of the projects that Larry was able to initiate during his term in office,” Ward said. “I also intend to expand the ALA’s presence both in and out of the state.”

Robert W. Bradford Jr.

Alabama Super Lawyers is an annual publication of Thomson Reuters that identifies attorneys reaching high levels of peer recognition and professional achievement. The honor is limited to no more than five percent of the lawyers in the state. Managing shareholder David W. Henderson was named a “Rising Star” in the 2011 edition of Alabama Super Lawyers, in the field of civil litigation defense. Attorneys under the age of 40, who have practiced law for less than 10 years, are eligible to be nominated for the “Rising Star” distinction. Less than two and a half percent of attorneys within the state achieve the honor.

BEASLEY ALLEN ATTORNEY NAMED PRESIDENT OF ALABAMA LAWYERS ASSOCIATION

Established in 1971 as the Alabama Black Lawyers Association, it is the mission of the ALA to enhance the integrity of the legal profession, to improve the quality of legal services provided to the public and to protect the civil rights of the citizens of the State of Alabama. SERVISFIRST BANK RECEIVES HIGH RANKINGS FROM AMERICAN BANKER BIRMINGHAM - ServisFirst Bancshares Inc. has been listed by American Banker as the 20th “Most Efficient Bank Holding Company.” American Banker also ranked ServisFirst Bancshares No. 44 in “Banking Companies with Highest Multiples of Net Income to Salary, Benefits.” Both rankings include the top 150 banks for each category in the United States for 2010. No other (CONTINUED ON PAGE 36)

August 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 35) Alabama-based banks were included in either ranking. “To know that ServisFirst is recognized nationally in multiple categories is an honor,” said ServisFirst Bank CEO and President Tom Broughton. “We have a very talented team working at ServisFirst, and we are always committed to excellence and to putting our customers’ needs first.”

and the Montgomery Area Chamber of Commerce.

the past four hours and are refreshed at least every hour.

the school’s learning kitchen, cultivating an authentic farmto-table experience firsthand.

JACKSON HOSPITAL POSTS ER WAIT TIMES ON WEBSITE

MONTESSORI SCHOOL WILL OPEN AT HAMPSTEAD

MONTGOMERY - Jackson Hospital now posts the emergency room (ER) wait times

MONTGOMERY – A Montessori School will open in August for the 2011-2012 school at

Other extra-curricular activities include physical education, foreign language, art, computer technology and music.

MAX CREDIT UNION SPONSORS BRANCH AT LANIER HIGH SCHOOL MONTGOMERY – Max Credit Union plans to fund and open a branch in September at

Greg McClellan

Sidney Lanier High School as part of the school district’s Career Academies program. Max Credit Union employees will manage the branch while students in the Business/ Finance Career Academy will staff it. In addition to earning school credit for working at the branch, Lanier students will be allowed to create marketing materials for financial products and services offered there. Max Credit Union Chairman and CEO Greg McClellan said, “This is an investment in our kids, our community and our economy. We believe that this is an opportunity for the students to acquire the real knowledge, skills and selfconfidence necessary for them to reach and exceed whatever goals they set for their future.” The company is working in partnership with the Montgomery County Board of Education

For registration details, visit www.montessoriathampstead. org, e-mail info@ montessoriathampstead.org or call (334) 356-1969. SCOTT REALTIME REPORTING OWNER RECEIVES $5,000 GRANT MONTGOMERY - Scott Realtime Reporting, LLC, owner Tasha M. Scott was awarded a $5,000

Don Henderson

Betsy Hosp

on its website, www.jackson.org.

The Town of Hampstead.

This new feature allows the public to view the approximate wait time once the patient goes through the registration process.

The school is open to children from 18 months to 12 years. The school will have certified, experienced Montessori teachers in modular classrooms located in the heart of Hampstead’s Town Center. There will be a permanent campus.

Tasha Scott

There is a waiting list for expanded classes, including junior high, which will be added in the 2012-2013 school year.

business development grant from the National Association for the Self-Employed.

“I feel it is very important that Jackson Hospital be friendly and transparent in our emergency department operations,” Jackson Hospital CEO Don Henderson said. “Updating the ‘time to emergency medical provider’ in real-time on our website gives area residents another tool to evaluate our performance, and to help them make the best choice when they need emergency care.” ER wait times may change very quickly depending on patients arriving by ambulance or with life-threatening injuries or illnesses. All patients are evaluated by a nurse upon arrival. Patients with life-threatening conditions will be seen before those with less serious problems or ailments. Jackson Hospital ER wait times represent the average estimated length of time from registration to being assigned to a doctor, nurse practitioner or physician assistant. The wait times are averaged over

Montgomery Business Journal August 2011

“On behalf of the board of directors, we are thrilled to announce this amazing opportunity to the community offering a top-notch Montessori education to children in the Central Alabama region,” stated Betsy Hosp, director of the Montessori School at Hampstead. “We could not dream of a more natural fit for the school than the beautiful Hampstead neighborhood where the onsite amenities offer students integration of courses not found anywhere else. Working closely with the Hampstead Institute’s farmers and program directors, students will have the opportunity to grow, harvest and prepare all-natural produce at Hampstead Farms for neighborhood restaurants and

The grant is designed to help successful small and micro-businesses and was in recognition of excellence in business. “I feel like I now have the seed money I need to back my ideas for the growth of the business,” Scott said. “It’s basically the resources I need to start the process of going to the next level.” The business already outgrew its prior location and now is located at the Montgomery Area Chamber of Commerce’s Small Business Resource Center. Scott plans to use the grant money to purchase new software that will improve the company’s service offerings of Communication Access Realtime Translation and

BUSINESS BUZZ realtime captioning services for the deaf and hard of hearing. “We want to be able to grow this business so we can help more people,” she said.

Jones Lang LaSalle, which has 90-plus employees in Alabama, is a financial and professional services firm specializing in real estate.

JONES LANG LASALLE NAMES BURWELL VICE PRESIDENT

BALL, BALL, MATTHEWS & NOVAK ATTORNEYS NAMED TO SELECT LISTS

MONTGOMERY — Jones Lang LaSalle expanded into

examinations, prosecution, civil legal help and referrals. PNC FINANCIAL SERVICES BUYS RBC’S U.S. BRANCHES Royal Bank of Canada’s U.S. operations, including six branches in the River Region, are being purchased by Pittsburghbased PNC Financial Services Group for nearly $3.5 billion.

Jay Watkins

MONTGOMERY - Five attorneys

RBC has three branches in Montgomery and one each in Prattville, Millbrook and Wetumpka.

Tabor Novak P. Carter Burwell

Ham Wilson

the Montgomery market by hiring top producer P. Carter Burwell as vice president. Burwell will provide advisory and transaction services to Jones Lang LaSalle’s clients including executing office, land, industrial, retail and investment sales. Burwell, whose office is at 8650 Minnie Brown Road, he will serve markets across South and Central Alabama and Mississippi. Burwell brings a wide range of experience in tenant representation, commercial sales and leasing, development, investment sales and site selection. He joins Jones Lang LaSalle from Aronov Realty. Burwell is a graduate of the University of Alabama, where he received a bachelor’s of science degree in finance and real estate. “I look forward to advancing Jones Lang LaSalle’s reputation for providing the most comprehensive and integrated real estate services,” Burwell said. “This is a great opportunity to grow Jones Lang LaSalle’s brand in Alabama and Mississippi.”

(civil litigation defense), and Jay Watkins (personal injury defense: general) were selected for Alabama Rising Stars 2011. Ball, Ball, Matthews & Novak has offices in Montgomery and Mobile.

Evans Brittain

MONTGOMERY COUNTY BAR ASSOCIATION RAISES $37,500 FOR LEGAL SERVICES CENTER

PNC will gain about 420 branches in the Southeast, including Alabama, Florida and Georgia. RBC also has branches in North Carolina, South Carolina and Virginia. PNC is also buying a credit card portfolio from RBC for a reported $165 million. The deal, which is expected to be completed in March, would give PNC nearly 2,900 branches and make it the fifth-largest U.S. bank by branches. The bank would add $19 billion in deposits and $16 billion in loans. •

MONTGOMERY – The Montgomery County Bar Association 2011 Spring Charity Event raised $37,500 to benefit the One Place Family Justice Center. Juan Ortega

from Ball, Ball, Matthews & Novak, P.A., have been selected for Alabama Super Lawyers and Alabama Rising Stars 2011. Only five percent of the lawyers in each state are named to the Super Lawyers list, and only 2.5 percent are named to the Rising Stars list. Tabor Novak (civil litigation defense) and Ham Wilson (civil litigation defense) were selected for Alabama Super Lawyers 2011. Evans Brittain (insurance coverage litigation), Juan Ortega

The fundraising event drew more than 200 Montgomery County Bar Association members, community leaders and supporters to Wynlakes Golf and Country Club. More than 20 state and local agencies have partnered with One Place Family Justice Center to provide services to victims of domestic violence, elder and child abuse, and their families both on-site and off-site. Several agencies will have staff located at One Place to provide law enforcement assistance, counseling, advocacy, sexual assault

August 2011 Montgomery Business Journal

Members on the Move AUM APPOINTS NEW DEANS, NAMES UNIVERSITY HONORS PROGRAM DIRECTOR

Tyler Peterson

Donald Nobles

Janice Lyn

MONTGOMERY – Auburn University at Montgomery has appointed Tyler Peterson to serve as the university’s first dean of admissions and recruiting. The university also appointed Janice Lyn as dean of students and named Donald G. Nobles, associate professor in the Department of Communication and Dramatic Arts, director of the university’s honors program.

Peterson has served as director of admissions and recruitment at BirminghamSouthern College for the past five years, during which the university recruited the three largest freshman classes in its history. He was promoted to director after increasing enrollment of Atlantaarea students by 80 percent while serving as assistant director in 2004-2006.

been a student and administrator there since 1989. She received a bachelor’s degree in 1991 and a master’s degree in educational administration with a concentration in higher education in 1993. She went on to receive a doctorate degree in higher education administration in 1998.

Lyn will be responsible for supervising 17 employees in the offices of Student Life, the Counseling Center, the Learning Center, Disability Services, and Career Services. She began her career in higher education at the University of New Orleans and has

Montgomery Business Journal August 2011

SERVISFIRST BANK HIRES THREE

In 2000, Lyn became associate dean for student affairs and was appointed dean of student affairs in 2009. She said she looks “forward to working with new friends and colleagues, supporting the university’s mission and serving the students at Auburn University at Montgomery.” Nobles, who been the university honors program interim director since August, came to AUM in 1979 as an adjunct instructor in the Department of Speech and Theatre. After leaving in 1984 for graduate school at the University of Texas at Austin and a teaching appointment at Trinity University, Nobles returned to AUM in 1989, earning tenure in 1994. “I am excited and honored to have the opportunity to build on the University Honors Program that’s in place,” Nobles said. “I look forward to working with the Faculty Senate Honors Committee to continue the revision of the Honors curriculum and to develop a new series of courses to challenge the very special students who participate in the program.”

After receiving a bachelor’s degree in marketing from Auburn University in 2001, Peterson was an admissions counselor and assistant director of orientation at Troy University. He received a master’s degree from Troy in 2004. “I look forward to becoming part of the community of AUM and am ready for the challenges and exciting times ahead,” Peterson said. “The world of admissions and recruiting is always changing, and it is imperative that we look at new and innovative ways to recruit the best students to AUM.”

The company, which has offices in Birmingham, Montgomery and Orange Beach, provides professional architecture, civil engineering and surveying services.

KREBS ARCHITECTURE & ENGINEERING ANNOUNCES NEW HIRE

Jonah Taylor

MONTGOMERY - Jonah R. Taylor has joined Krebs Architecture & Engineering Inc.

Taylor, an engineer, received a bachelor’s degree in biosystems engineering from Auburn University in 2011. His responsibilities include completion of field survey and investigation duties; preliminary design of sanitary sewer, water distribution, storm drainage and site development projects; preparation of project specifications; assisting with construction review services; and utility system modeling.

Brooks Seale

Michael Wilber

Cheryl Portis

MONTGOMERY ServisFirst Bank hired two banking center managers and a mortgage loan officer. Michael Wilber will be the new banking center manager for the bank’s downtown location, and Cheryl Portis will be responsible for the East Montgomery branch. Brooks Seale, who was previously with Synovus Mortgage, is the firm’s new mortgage loan officer. He has been a loan officer in the region

for the past nine years. Wilber has had previous experience working in various roles with other financial institutions such as RBC Bank, Regions Bank and Wachovia. He also has had experience as a loan specialist with the U.S. Department of Agriculture’s Rural Development program. Portis has served in numerous positions with Regions Financial Corp. for more than 35 years, such as assistant branch manager, branch manager and vice president. WILSON PRICE FAMILY OFFICE SERVICES HIRES CLIENT SPECIALIST MONTGOMERY – Ashley Bowdoin was hired as a Ashley Bowdoin client specialist for Wilson Price Family Office Services. She will be responsible for helping clients with their day-to-day individual financial affairs

and working closely with Family Office clients to achieve their customized financial plans.

BB&T ANNOUNCES HIRE, PROMOTION

as well as a position as a legal associate with the Americans for Prosperity Foundation.

Prior to joining Wilson Price Family Office, Bowdoin was office manager for the Central Alabama Regional Planning and Development Council, a public agency that studies regional problems. The agency helps develop policy and make recommendations to carry out programs and projects to benefit member governments.

MONTGOMERY – BB&T has hired Chad Kenney as a business services officer and promoted Ryan Hamilton to the same position for the Montgomery area market.

Douillard received her juris doctor degree from Thomas Goode Jones School of Law in 2010. Prior to becoming an attorney at Beasley Allen, Douillard worked as a law clerk in the firm’s fraud section for more than two years, assisting attorneys in consumer and securities fraud litigation.

Wilson Price Family Office is designed to assist executives, retired executives and the elderly with their personal financial needs by developing a customized plan that fits their specific financial situation and objectives. THE FRAZER LANIER CO. NAMES EXECUTIVE VICE PRESIDENT MONTGOMERY — The Frazer Lanier Jason Grubbs Co. announced that Jason Grubbs has joined the firm as executive vice president. Grubbs, who will manage the firm’s Birmingham office, provides investment banking services to clients throughout the United States and specializes in tax-exempt and taxable bond financings for a variety of industries. He received a bachelor’s degree from Auburn University with a major in finance. His areas of expertise include the financing of food processing facilities, agri-business projects, solid waste disposal facilities, recycling facilities, wastewater treatment facilities and industrial development projects. The Frazer Lanier Co. provides investment banking services to corporations, hospitals, universities, cities, counties, states, local boards and agencies across the country. PARTNERS REALTY HIRES AGENT MONTGOMERY – Partners Realty has hired agent Cindy Keeping. Cindy Keeping

She will specialize in residential sales and acquisitions in Montgomery’s historical neighborhoods.

Chad Kenney

Kenney, a native of DeFuniak Spring, Fla., received a Ryan Hamilton bachelor’s degree in business administration from Evangel University and a master’s degree from Missouri State University. He will be based at 2000 Interstate Park Drive. Hamilton, who joined BB&T in 2007, previously served as a business services officer-portfolio manager. He will also be based at 2000 Interstate Park Drive. The Louisville, Ky., native received his bachelor’s degree in business administration and finance from the University of Kentucky. He also is a 2007 graduate of the BB&T Leadership Development Program. BEASLEY ALLEN ADDS TWO ASSOCIATES

Andrew Brashier

MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., announced the addition of two new associates.

Andrew E. Brashier practices in the firm’s consumer fraud section, focusing primarily Alison Douillad on class-action work involving consumer fraud. Alison Leigh Douillard also practices in the firm’s consumer fraud section. Brashier received his juris doctor degree from Samford University’s Cumberland School of Law in 2010. His past experience includes law clerk positions at the Shelby County Public Defender Office, Alabama Attorney General’s Office, Capital Litigation Division; Legal Aid Society of Birmingham; and Mobile County District Attorney’s Office;

BAKER DONELSON EXPANDS WITH MONTGOMERY OFFICE BIRMINGHAM The law firm Baker, Donelson, Bearman, Caldwell & Berkowitz, Dennis Nabors P.C., has expanded with the opening of an office in Montgomery. “We’re committed to playing a key role in Alabama’s future, and launching a presence in the state’s capital is important to that,” said Timothy M. Lupinacci, managing shareholder of Baker Donelson’s Alabama offices. “This marks a significant step in our plan for strategic growth and continued expansion of our service offerings in Alabama.” Dennis Nabors, who joined Baker Donelson as a shareholder, will lead the firm’s Montgomery location. Nabors focuses his practice in health care law and related public policy issues, and advises health care clients such as hospital systems, long-term care companies, home health agencies, hospice agencies, Medicaid billing agencies and physician groups. He previously served as chief of staff to Alabama Gov. Guy Hunt, and was assistant Attorney General for the State of Alabama’s White Collar Crime and Civil Rights divisions, City Attorney for Montgomery and the executive vice president and chief lobbyist for the Alabama Hospital Association. “I was interested in joining Baker Donelson because of the Firm’s broad reach both geographically and across practice areas,” Nabors said. “Beyond the additional resources that come with being part of a law firm with 560-plus attorneys in 15 offices across five states and in Washington, D.C., Baker Donelson’s outstanding reputation made this move a clear choice for me.”

(CONTINUED ON PAGE 40)

August 2011 Montgomery Business Journal

MEMBERS ON THE MOVE (CONTINUED FROM PAGE 39) NEW WATERS REALTY COMPANY NAMES VICE PRESIDENT MONTGOMERY – Jennifer Atkins has been appointed Jennifer Atkis vice president of marketing and operations for New Waters Realty Company. Atkins, who was formerly with Aronov Realty Management Inc. as vice president of marketing, has with more than 18 years of experience in the marketing and real estate industry. She has managed and marketed a variety of retail, commercial and residential real estate projects throughout the Southeast.

Her prior experience includes development manager of Vaughn Road, LLC; executive director of the Deer Creek Home Owners’ Association, and director of marketing and operations for Jim Wilson & Associates Inc. Atkins received a master’s degree in business administration from Troy University and a bachelor’s degree in business administration from Auburn University at Montgomery. “I am excited to have the opportunity to be a part of this outstanding team,” Atkins said. “I look forward to helping this development grow.”

Road. Birmingham-based Ark Real Estate Strategies purchased The Waters. “New Waters Realty Company and Ark Real Estate Strategies are proud to welcome someone of Jennifer’s caliber and wealth of knowledge to our team,” said Tommy Brigham, president and CEO of New Waters Realty Company and Ark Real Estate Strategies. “She will be responsible for the development, sales, marketing and daily operations of this 500-acre thoughtfully designed traditional neighborhood development.” •

New Waters Realty Company is the development, marketing and sales company for The Waters, a masterplanned residential community in Pike

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

Hospice Advantage

New Waters Realty Company, LLC

4253 Wetumpka Highway Montgomery, AL 36110 334-517-6112 Kimberly Gordon-Administrator www.HospiceAdvantage.com Hospices

55 Bridge Street Pike Road, AL 36064 334-272-3200 Garrett McNeil-COO www.thewatersal.com Real Estate Sales & Development

Christian Brothers Automotive

Hibachi Sushi & Supreme Buffet

10885 Chantilly Drive Montgomery, AL 36117 334-244-4200 Martha & Jim Skelley-Owners www.cbac.com/montgomery Automobile Repair Services

181 D Eastern Boulevard Montgomery, AL 36117 334-260-6111 David Zheng-Owner Restaurants

Montgomery Business Journal August 2011

Up and Running, Inc.

60 Commerce Street, Suite 1050 Montgomery, AL 36104 334-262-3113 Josh Bush-President/CEO www.uar-inc.com Information Technology Firms

Wesley Gardens Retirement Community

1555 Taylor Road Montgomery, AL 36117 334-272-7917 Randy Allen-Administrator www.methodist-homes.org Retirement Communities

New Members Associations/ Non-Profit

Communications Equipment

Delivery/Courier Services

Information Technology Firms

United Cerebral Palsy of Central Alabama Michael Mayfield 2520 Fairlane Drive, Suite 360 Montgomery, AL 36116 334-271-2280

Montgomery Electronics & Communications Services, LLC Derek Montgomery 236 Mountain Ridge Road Millbrook, AL 36154 334-290-1214

Hackbarth Delivery Service, Inc. Kevin Deem 5415 Lamco Street, Whse 2 Montgomery, AL 36117 334-284-2128

IBM Scott Dean 4137 Carmichael Road, Suite 300 Montgomery, AL 36106 334-213-2348

Automobile Parts & Services

Computers-Sales/ Services/Supplies

E-Commerce & Search Engine Marketing

Computer Salvations Aaron Long 4323 Atlanta Highway Montgomery, AL 36109 334-593-3394

eCommerceincentives, Inc. J. W. Wheeler 2924 Milton Road Montgomery, AL 36110 334-263-2693

Car Rental

Construction

Enterprise Rent-A-Car Robert Patrick Downtown Branch 123 Dickerson Street Montgomery, AL 36104 334-265-1900

Southern Services Group, LLC Jessie Stubbs 600 South Court Street, Suite 445 Montgomery, AL 36104 334-324-3478

Financial Planner/ Advisor

Enterprise Rent-A-Car Robert Patrick Airport Branch 4437 Selma Highway Montgomery, AL 36108 334-288-2880

Consulting Services

Montgomery Service Center, Inc. Penny Seago 2234 East South Boulevard Montgomery, AL 36116-2485 334-281-2886

Enterprise Rent-A-Car Robert Patrick 3025 Atlanta Highway Montgomery, AL 36109 334-272-3123 Enterprise-Rent-A-Car Robert Patrick 2958 East South Boulevard Montgomery, AL 36116 334-280-3200

Confidential Consultants, LLC Tammie McCurry P.O. Box 3795 Montgomery, AL 36109 334-649-2114 Langley & Associates Group, L.L.C. Mark R. Langley 624 McKeithen Place Millbrook, AL 36054 334-663-4954

Credit Cards/ Services Alpha & Omega Processing Nate Roulston P.O. Box 640011 Pike Road, AL 36064 334-315-3235

Prudential, Rick WilliamsFinancial Professional Rick Williams 1783 Taliaferro Trail Montgomery, AL 36117 334-396-7573 Valic Michael Probst 2822 Mallory Street Montgomery, AL 36107 334-235-0654

Government Municipality Town of Pike Road Gordon Stone 4902 Pike Road Pike Road, AL 36064 334-272-9883

Netelysis Boyd Stephens P.O. Box 230546 Montgomery, AL 36123 334-213-1128

Janitorial Service/ Supplies Uricho Services, Inc. Samuel Uribe 234 Oxmoor Circle, Suite 205 Homewood, AL 35209 205-482-0733

Legal Services Attorneys Baker Donelson Bearman Caldwell & Berkowitz P.C. Dennis Nabors 614 South Hull Street Montgomery, AL 36104 334-262-2000 Jones Walker, Waechter, Poitevent, Carrere & Denegra, LLP Carrie E. McCollum 2000 Interstate Park Drive Montgomery, AL 36109-5414 334-213-7318 Pitts & Zanaty, LLC R D Pitts 4400 Carmichael Road Montgomery, AL 36106 334-244-0181

(CONTINUED ON PAGE 42)

August 2011 Montgomery Business Journal

New Members (continued from page 41) Legal Services Court Reporting

Printers/Copy Centers

Real EstateInvestments

RestaurantsJapanese

Scott Realtime Reporting LLC Tasha Scott 600 South Court Street, Suite 435 Montgomery, AL 36104 334-323-9471

FedEx Tina M. Davis 2240 Eastern Boulevard Montgomery, AL 36117-1500 334-277-1477

Jennifer Gray Investments, LLC Jennifer Gray P.O. Box 1203 Millbrook, AL 36054 334-306-6730

Sushi Cafe Daniel Lee 3004 Zelda Road Montgomery, AL 36106 334-819-7060

Plumbing Vaughn Plumbing, Heating & Air Derrell L. Vaughn 2028 Mount Meigs Road Montgomery, AL 36107-2306 334-265-8713

FedEx Tina M. Davis 6544 Atlanta Highway Montgomery, AL 36117 334-260-5560

Private Schools Saint Jude Educational Institute Wanda Twitty 2048 W. Fairview Avenue Montgomery, AL 36108 334-264-5376

Restaurants Boardwalk Fresh Burgers & Fries Frank Limas 6941 EastChase Loop Montgomery, AL 36117 334-356-6355 Hibachi Sushi & Supreme Buffet David Zheng 181 D Eastern Boulevard Montgomery, AL 36117 334-260-6111

Restaurants-Pizza Midtown Pizza Kitchen Ben Skelley 2940 I Zelda Road Montgomery, AL 36106 334-395-0080

Taxi/Cab Service Checker & Deluxe Cab Company, Inc. Will Wright 1075 Chandler Street Montgomery, AL 36104 334-613-0600

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Montgomery Business Journal August 2011

Economic Intel

Food Prices Barely Edge Up MONTGOMERY â&#x20AC;&#x201C; The average cost of 20 basic market basket items in May was $58.41, up 38 cents or 0.65 percent from the previous, according to the latest results from the Alabama Farmers Federationâ&#x20AC;&#x2122;s monthly food price survey. Largely behind the slight increase were a few items in the meat case. T-bone steaks increased 37 cents to $8.68 a pound; bacon increased 27 cents to $5.72 a pound; chuck roasts increased 22 cents to $3.96 a pound; and pork chops increased 17 cents to $3.54 a pound. Meanwhile, chicken breasts were down 18 cents to $2.10 a pound; whole fryers were down 8 cents to $1.21 a pound; Boston

butts were down 7 cents to $2.07 a pound; and ground beef was down a penny to $2.87 a pound. Eggs fell 10 cents to $1.53 a dozen.

cottage cheese increased a penny to $2.56 a pound. Ice cream remained the same at $4.17 a half-gallon.

Meanwhile, shoppers were able to find significant savings on an in-season summer favorite. Tomatoes were down 52 cents to $1.79 a pound. Also more affordable was lettuce, down a nickel to $1.53 a head. Edging higher in the survey were red potatoes, up 5 cents to 89 cents a pound; and sweet potatoes, up 3 cents to 92 cents a pound.

Regional reports collected by volunteer shoppers throughout the state June 1-10 showed the market basket averaged $55.96 in Northwest Alabama, $56.99 in Northeast Alabama, $59.83 in Central Alabama and $61.58 in South Alabama.

Prices in the dairy case were mixed. Butter was down 22 cents to $4.52 a pound. Milk increased 10 cents to $3.50 a half-gallon, and

Alabama Farmers Federation is a member of the American Farm Bureau Federation. Its county members conduct the informal monthly market basket survey.

August 2011 Montgomery Business Journal

Montgomery Regional Airport JUNE 2010

Year over Year % Change

YTD 2011

YTD 2010

Year over Year % Change

986

1,109

-11.1%

5,871

6,149

-4.5%

5,228

5,927

-11.8%

32,575

35,495

-8.2%

Enplanements

15,720

15,469

1.6%

89,136

89,671

-0.6%

Deplanements

15,571

15,491

0.5%

87,967

90,113

-2.4%

Total Passengers

31,291

30,960

1.1%

177,103

179,784

-1.5%

JUNE 2011 Air Carrier Operations Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

Montgomery Metro Market Home Sales MAY 2011

APRIL 2011

Month/Month % Change

MAY 2010

Year/Year % Change

Statewide MAY 2011

Median Price

$120,900

$124,700

-3.05%

$129,900

-6.93%

$124,174

Average Price

$140,102

$143,410

-2.31%

$149,729

-6.43%

$147,040

Units Listed

3,249

3,243

0.19%

3,266

-0.52%

38,796

Months of Supply

13.4

12.8

4.69%

8.4

59.52%

11.5

Total # Sales

242

253

-4.35%

390

-37.95%

3,363

Days on Market

115

-20.00%

5.75%

153

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

Montgomery Building Starts Building Permits MAY 2011

APRIL 2011

Building Valuations MAY 2010

MAY 2011

APRIL 2011

MAY 2010

New Construction

$7,403,800

$1,523,400

$3,526,600

Additions and Alterations

$3,149,400

$3,605,200

$2,249,606

Others

$709,000

$192,280

$289,600

119

136

120

$11,262,200

$5,320,880

$6,065,806

Total Source: City of Montgomery Building Department

Sales Tax Collections JUNE 2011

JUNE 2010

Year over Year % Change

YTD 2011

YTD 2010

Year over Year % Change

Montgomery County

$3,177,608

$3,047,440

4.27%

$19,585,036

$19,248,614

1.75%

City of Montgomery

$7,131,117

$7,079,972

0.72%

$45,122,576

$44,016,239

2.51%

Pike Road

$136,057

$161,306

-15.65%

$768,235

$959,197

-19.91%

Autauga County

$588,718

$616,404

-4.49%

$3,564,849

$3,599,397

-0.96%

$1,542,833

$1,086,387

42.01%

$7,712,333

$7,226,879

6.72%

Elmore County

$471.695

$720,735

-34.55%

$2,126,242

$4,432,406

-52.03%

Wetumpka

$453,231

$447,653

1.25%

$2,719,605

$2,692,159

1.02%

Millbrook

$467,732

$437,099

7.01%

$1,857,543

$2,748,290

-32.41%

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 2010 thru current month. * Did not receive this month’s numbers.

Montgomery Business Journal August 2011

Airline Fares

Hyundai Sales

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

Montgomery

Birmingham

VEHICLE

YTD 2010

24,018

27,078

17,771

115,014

89,249

14,245

103,301

57,564

7,586

34,821

44,376

428

1,095

1,581

4,406

3,382

23,537

19,689

976

609

4,165

3,354

3,149

2,569

15,454

12,891

Atlanta

Sonata

18,644 19,992 7,987 222

Baltimore (BWI)

$278

$248

$200

Boston (BOS)

$313

$268

$258

Santa Fe

Charlotte, NC (CLT)

$150

$168

Azera

Chicago (ORD)

$277

$216

$225

Tucson

Cincinnati (CVG)

$363

$298

$248

Veracruz Genesis

Dallas/Ft Worth (DFW)

$258

$260

Denver (DEN)

$366

$344

$168

Equus Total

Detroit (DTW)

$337

$368

$208

Houston (HOU)

$367

$268

$220

Indianapolis (IND)

$291

$289

$205

Las Vegas (LAS)

$413

$392

$341

Los Angeles (LAX)

$365

$334

$283

Memphis (MEM)

$451

$388

$183

Miami (MIA)

$322

$320

$196

Nashville (BNA)

$248

$148

$339

New Orleans (MSY)

$263

$163

$178

New York (JFK)

$319

$339

$267

Orlando (MCO)

$277

$227

$205

Philadelphia (PHL)

$343

$283

$230

Pittsburgh (PIT)

$289

$301

$210

St Louis (STL)

$218

$168

$217

$456

$413

$298

$1,881

$1,288

$1,227

Tampa (TPA)

$323

$200

$205

Washington DC (DCA)

$309

$276

$240

Seoul, Korea (SEL)

YTD 2011

3,612

Elantra

Seattle (SEA)

JUNE 2011

Accent

JUNE 2010 4,615

221

N/A

1,392

N/A

59,209

51,205

322,797

255,782

Source: Hyundai Motor America

Date of travel:Aug. 16-21, 2011. Date of pricing: July 10, 2011. Source: travelocity.com

Unemployment Data Civilian Labor Force Area

May p 2011

April r 2011

Unemployment Rate May r 2010

May p 2011

April r 2011

Montgomery MA

170,047

170,023

167,671

9.40%

Autauga County

24,522

24,546

24,042

8.60%

8.20%

7.20%

Prattville City

15,911

15,935

15,637

7.10%

6.80%

6.00%

Elmore County

36,242

36,184

35,756

8.60%

8.00%

7.80%

4,757

4,738

4,687

16.10%

15.30%

104,526

104,555

103,186

9.50%

9.10%

8.80%

Lowndes County Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City

8.90%

May r 2010 8.50%

94,476

94,523

93,181

9.40%

9.00%

8.50%

521,851

520,736

514,906

8.80%

8.40%

8.60%

96,655

96,372

95,561

10.90%

10.50%

10.90%

Huntsville MA

211,645

211,106

205,877

7.90%

7.50%

7.10%

Huntsville City

93,052

92,823

90,484

7.90%

7.50%

7.00%

Mobile MA

190,645

190,301

185,241

10.60%

10.20%

9.90%

Mobile City

88,707

88,566

86,107

10.90%

10.50%

10.10%

Alabama United States

2,156,429

2,154,143

2,123,889

9.50%

9.00%

153,449,000

152,898,000

153,866,000

8.70%

9.30%

MA=Metropolitan Area. pPreliminary rRevisedEstimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2010 benchmark.

August 2011 Montgomery Business Journal

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

Abercrombie & Fitch

$836.7M

$25.1M

$0.28

$0.12

$687.8M

(-$11.8M)

Chico’s FAS

$537.2M

$45.9M

$0.26

$0.25

$481.6M

$35.4M

Wal-Mart

$103.4B

$3.4B

$0.98

$0.95

$99.1B

$3.3B

NAME

International sales rose 64% Revenue up 11.5% Eight straight quarters of declines in U.S. same-store sales

O’Charley’s

$265M

$1.8M

$0.08

$0.05

$267.1M

(-$4.3M)

Costs fall from $3.1M to $162,000

TJX Companies (T.J. Maxx)

$5.2B

$266M

$0.67

$0.80

$5B

$331.4M

Repurchased 7.1M shares of stock

Dick’s Sporting Goods

$1.1B

$37.5M

$0.30

$0.29

$1B

$26.2M

Sales increased 6.3%

Home Depot

$16.8B

$812M

$0.50

$0.49

$16.9B

$725M

Profit climbed 12%

Target

$15.6B

$689M

$0.99

$0.95

$15.2B

$671M

Credit card revenue rose 18% to $355M

JC Penney

$3.9B

$64M

$0.28

$0.26

$3.9B

$60M

Same-store sales increased 3.8%

Dillard’s

$1.5B

$76.7M

$1.31

$0.91

$1.5B

$48.8M

Profit jumped 57%

Lowe’s

$12.2B

$461M

$0.34

$0.36

$12.4B

$489M

Sales and number of visits to stores declined

Kohl’s

$4.1B

$211M

$0.73

$4B

$199M

Sales rose 3.1%

Sears Holdings

$9.7B

(-$170M)

(-$1.58)

(-$1.22)

$10B

$16M

Sales declined 3.4%

Advance Auto Parts

$1.9B

$109.6M

$1.35

$1.39

$1.8B

$109.4M

Opened 138 stores in the last 12 months

The Buckle

$240.1M

$33.5M

$0.72

N/A

$214.8M

$30.1M

Sales increased 11.8%

The Children’s Place

$430.8M

$29.1M

$1.10

$1.05

$422.1M

$28M

Aeropostale

$469.2M

$16.4M

$0.20

$0.21

$463.6M

$45.4M

Profit declined 64%

Cato

$270.9M

$30.5M

$1.04

N/A

$259M

$25.1M

Expenses fell 7%

Ross Stores

Online revenue grew 24%

$2.1B

$173M

$1.48

$1.9B

$142.3M

Revenue increased 7%

Williams-Sonoma

$770.8M

$31.6M

$0.29

$0.28

$717.6M

$19.5M

Sales at stores opened at least 1 year rose 6.7%

Casual Male Retail Group

$95.8M

$4.2M

$0.09

$0.10

$95M

$4.1M

Profit, revenue up 1%

$3.3B

$233M

$0.40

$0.39

N/A

$302M

20% increase in average unit costs second half of year

Hibbett Sports

$203.7M

$21.3M

$0.76

$0.66

$184.5M

$17.3M

Profit up 23%

Kirkland’s

Gap (Banana Republic, Old Navy)

$94.4M

$3.2M

$0.15

$0.13

$93.5M

$6.5M

Cost of sales rose $3.5M to $56.3M

Foot Locker

$1.4B

$94M

$0.60

$0.44

$1.3B

$54M

Profit surged 76%

Red Robin

$286.8M

$8.7M

$0.56

$0.24

$275.5M

$5M

Profit jumped 76%

SteinMart

$303.5M

$15.9M

$0.35

$0.31

$301M

$14.3M

Revenue, profit up slightly

AnnTaylor

$523.6M

$27.3M

$0.51

$0.48

$476.2M

$22.6M

AnnTaylor online sales jump 43%

Rue21

$172.9M

$9.6M

$0.38

$0.30

$137.8M

$5.8M

Profit soars 65%

$507M

$14.6M

$0.36

$0.28

$417.3M

$10M

Opened 42 stores the past 12 months

Big Lots

$1.2B

$52.5M

$0.70

$0.69

$1.2B

$55.9M

Comparable store sales declined 3.6%

Costco Wholesale

$20.6B

$324M

$0.73

$0.77

$17.8B

$306M

Took $49M accounting charge because of increased costs

Zale Corp.

$411.8M

(-$9M)

(-$0.28)

(-$0.58)

$359.8M

(-$12.1M)

Cracker Barrel

$582.5M

$15.2M

$0.64

$0.66

$578.2M

$14.4M

Property sale adds $1.5M to earnings

$2B

$227.4M

$5.29

$4.97

$1.8B

$202.7M

Sales at stores opened more than 1 year up 5.3%

$193.3M

$17.8M

$0.64

$0.65

$178.1M

$15.8M

Sales at stores opened at least 1 year up 0.1%

$3.5B

$157M

$0.45

$0.50

$3.1B

$136M

Revenue rose 11%

$301.3M

$739,000

$0.01

$0.04

$320.7M

(-$4.4M)

Revenue declined 6%

$580M

$27.2M

$0.52

$0.49

$473M

$13.6M

Profit doubled

$334.6M

$14.1M

$0.12

$0.11

$306.3M

$7.7M

Revenue at stores opened at least 1 year up 10.2%

Best Buy

$10.9B

$136M

$0.35

$0.33

$10.8B

$155m

Online sales rose 12%

Walgreen

$18.4B

$603M

$0.65

$0.62

$17.2B

$463M

Profit jumped 30% Refinanced debt to save estimated $35M a year

hhgregg

AutoZone Jos. A Bank Clothiers Dollar General Talbots Men’s Wearhouse Pier 1 Imports

Sonic Corp.

Revenue rose 14.5%

$152.1M

(-$4.7M)

(-$0.08)

$0.18

$146M

$11M

Bed Bath & Beyond

$2.1B

$180.6M

$0.72

$0.62

$1.9B

$137.6M

Profit increased 31%

Family Dollar

$2.2B

$111.1M

$0.91

$0.95

$2B

$104.4M

Sales rose 7.8%

$2B

$137.4M

$0.99

$1.00

$1.9B

$115.6M

Olive Garden revenue increased 3.9% to $881M

Darden Restaurants (Red Lobster, Olive Garden, LongHorn Steakhouse)

NOTABLE

Montgomery Business Journal August 2011

August 2011 Montgomery Business Journal

Post Office Box 79 Montgomery, AL 36101

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