Montgomery Business Journal – February 2013 by Montgomery Area Chamber of Commerce

Contents

48 8

Calendar

Q&A with Auburn University at Montgomery economics professor Keivan Deravi

Officials celebrate existing industries’ expansions

Hyundai breaks all-time annual sales record

Montgomery Mayor Todd Strange receives Chamber Chairman’s Award

Rep. Terri Sewell puts constituents first

Investor Profile: Larry Puckett Chevrolet

EastChase was a gamechanger for Montgomery

Business Council of Alabama unveils its legislative agenda

Reporter’s Notebook

Member Profile: Industrial Specialty Company

exploreMedia creates niche

Business Buzz

New Members

Members on the Move

Ribbon Cuttings & Ground Breakings

Economic Intel

26 February 2013 Montgomery Business Journal

THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George Executive Editor

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Managing Editor

David Zaslawsky COPY EDITOR

Lashanda Gaines

tŝƚŚ ƚŚĞ ůŽǁĞƐƚ ŝŶƚĞƌĞƐƚ ƌĂƚĞƐ ŝŶ ŚŝƐƚŽƌǇ ĂŶĚ ƚŚĞ ŚŽƵƐŝŶŐ ŵĂƌŬĞƚ ŐĂƚŚĞƌŝŶŐ ƐƚƌĞŶŐƚŚ͕ ƚŚĞƌĞ ŵĂǇ ŶĞǀĞƌ ďĞ Ă ďĞƩĞƌ ƟŵĞ ƚŽ ƉƵƌĐŚĂƐĞ Ă ŚŽŵĞ͊

Copperwing Design

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Robert Fouts

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Tina McManama

Montgomery Business Journal February 2013

Design

Photographer

On the cover:

Jim Wilson III (left) is chairman of the board and CEO of Jim Wilson & Associates and Will Wilson is president of the company.

Advertising:

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 5, Issue 2. POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

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February 2013 Montgomery Business Journal

Calendar Montgomery Area Chamber of Commerce Events

FEBRUARY

MARCH

60 MINUTE COFFEE Sponsored by Guardian Credit Union 8 AM @ Guardian Credit Union 418 Madison Avenue, Montgomery Free event, exclusively for Chamber Members

13 18 21

18 26 28

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door STATE OF THE CITY & COUNTY Presenting Sponsor: Integrated Computer Solutions 7:30 AM â&#x20AC;&#x201C; 8:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/state BUSINESS AFTER HOURS Sponsored by Railyard Brewing Company 5 PM @ Railyard Brewing Company 12 West Jefferson Street, Montgomery Free event, exclusively for Chamber Members

Montgomery Business Journal February 2013

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door 60 MINUTE COFFEE Sponsored by Alley Station 8 AM @ Alley Station 130 Commerce Street, Montgomery Free event, exclusively for Chamber Members BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door MINORITY BUSINESS DEVELOPMENT COMMUNITY FORUM Presented by Russell Construction of Alabama, Inc. 7:30 AM @ Small Business Resource Center 600 South Court Street, Montgomery Contact Heidi Powers hpowers@ montgomerychamber.com or 334-240-6863 Registration: www.montgomerychamber.com/forum BUSINESS AFTER HOURS Sponsored by Allstate Beverage Company 5 PM @ Allstate Beverage Company 130 6th Street, Montgomery Free event, exclusively for Chamber Members

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Keivan Deravi is an economics professor at Auburn University at Montgomery and is a special assistant to the chancellor. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky Montgomery Business Journal: What is the 2013 economic forecast for the local economy? Deravi: What we are beginning to see is that fundamentals are in place – meaning that certain weaknesses are beginning to work their way out. We are starting to see that housing is beginning to firm up. There seems to be adequate demand for mid-range prices and we’re beginning to see some starts going up and we’re beginning to see prices firming up. All of this has to be put in the context of firming up relative to 2011. When you look at it relative to 2007, we’re still certainly down a pretty good bit. In terms of number of homes sold, we should be in the neighborhood of 280 to 300, which is what we had in 2001, but it’s a whole lot better than it was in 2011. MBJ: How many houses were sold monthly in 2011?

Keivan Deravi is an economics professor at Auburn University at Montgomery.

Economic forecast Q & A with Keivan Deravi

Deravi: It was 250 to 260. What we saw in 2012, was about a 12 or 13 percent increase. But 2011 and 2010 were so bad, that even 2012 was good by relative standards. MBJ: I have been seeing many more building permits for residential housing in the newspaper than a few years ago. Deravi: Starts are going up, but I really don’t look at permits. It’s the housing starts that create jobs. There will be some strong construction going on in the Pike Road area because of natural out-migration and demographics and the schools out there. MBJ: Won’t Park Crossing and the new Park Crossing High School have an impact on the real estate sector in East Montgomery – opening up land for development by Ray Thorington and Taylor roads? Deravi: What’s going on in Montgomery County and the City of Montgomery – the City of Montgomery is about 90 percent of the county. We were going to the east and now we’re going to make a turn south. Basically what we are going to do is take a lot of people

Montgomery Business Journal February 2013

from one area of Montgomery to another area of Montgomery because you’re building more energy-efficient and affordable housing. Schools are going to be a major, major contributor. I’ve always said and nobody believes me – if you build a high school in East Montgomery that the Montgomery Public Schools system will be split into east and west because it will be too difficult to manage. That will be another problem we’ll have to deal with in the future. MBJ: You talked about housing. What are some other indicators you’re seeing that are starting to firm up? Deravi: Employment is beginning to firm up, specifically with Montgomery. For example, we see the unemployment rate coming down and it’s not entirely at the expense of the labor force shrinking. There still is some very, very small shrinkage in the labor force, but employment is truly picking up. We are beginning to see some good numbers in sales tax up 4 to 6 percent range, which is basically saying that people are buying. People will buy if they have money or they will lower

their saving (rate). Montgomery is a very unique situation. MBJ: How so? Deravi: You have the state, federal, the automotive industry and retail. The automobile industry, which is basically Hyundai and their suppliers, didn’t lose any employees during the recession. They just cut the number of hours so it was a short-term furlough. So when they raised the number of hours, they did not hire. Employment stayed pretty stable here. Unemployment went up a pretty good bit simply because of the trade (sector) and construction (sector), but as I shared with you, construction is stabilizing and trade is stabilizing. MBJ: What about the Hyundai Motor Manufacturing Alabama expansion of adding a third shift/third crew and hiring nearly 900 employees and the subsequent expansions at many of its suppliers? Deravi: That is the basis for the employment numbers to firm up. The automobile industry is setting records everywhere that you go. They are selling a lot of cars. There is pent-up

demand and a lot of good deals going on. A large amount of cash that consumers have – they can’t really invest in the stock market or bond market or CDs. They are using cash to buy things. We think it’s eventually going to slow down. MBJ: When do you think it will slow down? Deravi: It will slow down in late 2013. During the middle of 2013, the automotive industry will still do well. The automotive industry is benefiting from another factor and that factor is going to stretch into 2013 – that’s lower gas prices. MBJ: I recall that you look at some specific indicators for your economic forecasting. Do you look at the trucking sector? Deravi: There are national indicators we look at. We look at diesel tax because truckers have to pay diesel tax when they move products. When we see an upturn in diesel tax, that shows that transportation is picking up. We look at the cardboard boxes – the production of cardboard boxes – because Continued on page 10

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February 2013 Montgomery Business Journal

Continued from page 9

products are moved in boxes. We look at those as very meaningful indicators. MBJ: What are you seeing with cardboard production and what does it tell you about 2013? Deravi: Well, 2013 is a transition time. We think that 2014 is going to be the real recovery – truly the real recovery. MBJ: What is 2014 going to look like? Deravi: In 2014 we are going to have all the obstacles and speed bumps removed. For one thing, the inventory of houses will be removed. For the second thing, the problem that we have with the labor market will be relieved to some great extent. We are beginning to see some reversal of outsourcing of our manufacturing. We will see some manufacturing coming back, but we don’t see those jobs coming back that will pay the same amount prior to outsourcing. We are beginning to see a wage realignment. Whatever happens in 2013 in terms of higher taxes or lower taxes or spending cuts will work out the kinks and in 2014 we will have a road map. There is no question about the fact that fiscal policy needs to be resolved so corporations know what they will be taxed on and what the tax rate will be. Right now, as we sit here (late 2012), corporations quit making investments simply because they don’t know what the tax implications are. They quit hiring because they are not making

investments. There is a big, big unknown that we will work on. There is no question that the Alabama state government wants to lower the (number of government employees) by offering incentives and consolidating departments. That is going to impact us. States are trying to do more with less and the only way to do it is to cut the payroll because it’s the largest part of their budget. In 2013, it’s going to be the last 12 months of clearing all the uncertainties. MBJ: What else are you seeing for 2014? Deravi: In 2014, the affordable health care act will GO into effect. There will be a number of surcharges on businesses and we just don’t know how that will work. MBJ: Will 2014 resemble the pre-recession levels of 2007 or is the economy still four or five years away from matching the prerecession levels? Deravi: 2014 will be the beginning of a very respectful growth trajectory. We will maybe see a 4 percent growth in GDP (gross domestic product); maybe a high 3 percent growth in production. We’ll probably see a 6 percent unemployment rate, but that’s at the expense of a large number of the labor force basically giving up searching for a job. There are a lot of people who have been unemployed for more than one year. The labor force will be smaller in my opinion.

There is no other economic engine for economic growth like

MBJ: What’s the new normal for the economy? Deravi: The new normal is … a downward shift in the income formation – meaning that the slope has dropped and now we’re going to go up, but at a slower (rate) so there will be less of a wealth accumulation in American households. If you look at American households, net worth in 2011 after adjusted for inflation – is lower than it was in 1999. You will see that stabilizing and gradually going up. Less of us will be employed, but those of us who are employed will have a very reasonable growth in our income going forward. It will be a smaller, more efficient economy going forward. MBJ: Please elaborate Deravi: There will be less government and if there is less government there will be fewer government employees and less contributions to the retirement system. Where will all these people go? They will go to the private sector, but the manufacturing wages in the private sector will go down further from the prevailing wages of $15 to $16 an hour that we have. Their skill set will go up. Basically, the global economy makes (workers) be more skillful, but get less pay. We will grow upward with a smaller slope, but a lower plateau. Our economy collapsed so much that we will have a lower plateau. MBJ: At the end of 2013, will the economy be 50 or 60 percent of what it was before the Great Recession? Deravi: We are at the peak when we fell in 2007 – in terms of GDP; in terms of income we are where we were in 2007. The growth from this point on is going to be smaller than we experienced from 2002 to 2007. MBJ: But 2014 will be a little bit better?

Continued on page 12

a well-paid worker.

Montgomery Business Journal February 2013

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In 2013 the kinks will be

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Continued from page 10

Deravi: It will be better, but it will be a different composition. The bankers now are flush with cash. They are timid to make loans because the business environment was timid. As the business environment starts jelling, the banks will get it and when the banks get it, that’s when the flood gates will open. The banks are the keeper of the gate. They are sitting on the money and not making loans. By 2014, the Federal Reserve System will suspend or end its supporting of interest rates and the interest rates will go up and banks will go after higher borrowing (costs). MBJ: What does it take to have economic growth? Deravi: Fundamentally, what you want to have for economic growth is a well-paid population. There is no other economic engine for economic growth like a well-paid worker. What you have to do is invest. You have to invest in the school system. You have to invest in the university system. You have to invest in infrastructure. That’s how you attract big businesses and they will bring people and they will demand a symphony orchestra. They will demand an airport. They will demand a diversified school. They will demand all types of parks and recreation. If we don’t increase our population base and we don’t increase the income of the population … MBJ: Earlier, you talked about a very respectful growth trajectory beginning in 2014. Does that continue to rise for a decade? Deravi: We’ll know by 2014 that the problem in the housing market will be removed and the labor market will be smooth in terms of operation. The skill set will be well defined. A great deal of the pay realignment will be in place. Whatever regulations the banking system will be facing will be known. We will know what the health care burden will be.

We will know by then the size and significance of the federal government. We will be out of Afghanistan by then and the money will go into deficit reduction. We will know what the deficit reduction plan will be. From 2008 to 2012, we raised the national debt by about $5 trillion. We have to bring the national debt down by $5 trillion over the next 10 years. If we don’t bring the national debt down by $5 trillion, there will be interest rate consequences. We will have answers for all of these (issues) by 2014. MBJ: With all the uncertainty removed, isn’t the long-term economic outlook very promising? Deravi: It’s going to look pretty good, but it’s going to look different. My view is that in 2020, universities will price themselves out of the ability of the middle-income class to pay if they continue to raise their tuition at this rate. Just think about the ramification of that. Maybe students will go to vocational education and vocational education will be great and maybe we will hire a lot of welders and they will make $15 or $16 an hour rather a lot of accountants and engineers. The question you asked about what happens after 2014, what I’m trying to tell you is that in 2013 the kinks will be worked out and by 2014 we will be ready to go. But from 2014 onward, whether we grow or not or whether we have another recession or when we will, depends on how we can adopt and understand two things: technology and globalization. As long as we have global trade and this economic system, globalization is going to have an impact on our future economic direction. Having a 1 billion highly educated labor force that can do our job as easily as we can, but at a fraction of the cost, you have to understand (the impact of globalization). MBJ: Please talk about in-sourcing and its economic impact? Deravi: The jobs that left to go overseas were extremely labor-intensive jobs. We are bringing them back, but we are also introducing robots to replace low-skilled labor. A robot costs about $30,000, but that’s a one-time cost and there are no health care costs. There are no benefits; no retirement. In-sourcing is going to happen, but it won’t recover all the jobs that we lost and a lot of others are being replaced by technology. •

Montgomery Business Journal February 2013

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Success

STARTS Tour spotlights expanding industries by David Zaslawsky

When existing industries expand it means not only the obvious of additional jobs and capital investment, but it also means preservation of existing jobs. So when a MOBIS Alabama, a tier one supplier to Hyundai Motor Manufacturing Alabamaâ&#x20AC;&#x2122;s (HMMA) plant in Montgomery, announces it is adding 193 jobs and investing another $9.9 million, it also means the company is staying put with its 1,017 existing employees. The expansions also signal something else, according to Bill Taylor, president of the Economic Development Partnership of Alabama, who was president and CEO of Mercedes-Benz U.S. International. â&#x20AC;&#x153;It really validates the decision that was made maybe five or 10 years ago,â&#x20AC;? he said. â&#x20AC;&#x153;Expansion validates that you made the right decision â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s a good place to do business. The people that said they were going to do those things back in those years when they were talking about coming to the state or community â&#x20AC;&#x201C; delivered. And the work force delivered.â&#x20AC;?

Letâ&#x20AC;&#x2122;s take a closer look at MOBIS Alabama, which produces cockpit modules, front and rear chassis, bumpers, interior door trim, and exterior door garnishing. In 2010, the company announced the addition of 250 jobs and a capital investment of $59.7 million. In 2011, MOBIS expanded again â&#x20AC;&#x201C; the fifth time â&#x20AC;&#x201C; adding 129 employees and $39 million in capital investment.

2012 Industry Expansions

In just the past three years, MOBIS has expanded as HMMA and the Kia manufacturing plant in West Point, Georgia have expanded and added 572 jobs and a capital investment of $108.6 million.

Jobs Created

Companies

Capital Investment

$36 Million 745

MOBIS was one of 13 existing companies that announced the combined creation of 745 jobs in 2012 and with a $35.9 million capital investment. Those 13 companies had Continued on page 16

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February 2013 Montgomery Business Journal

“We are proud to be in the community, where we are all making a better place to live and raise our families.” Hyung Joon Koo, CEO, GLOVIS Alabama Continued from page 15

a combined 4,375 jobs that were preserved with the expansions. The largest of those expansions was another HMMA tier one supplier, GLOVIS Alabama, which added 300 jobs in 2012 and had a capital investment of $500,000. GLOVIS provides just-in-time sequencing as well as warehousing and transportation services for both HMMA and Kia. “We are proud to be in the community, where we are all making a better place to live and raise our families,” GLOVIS Alabama CEO Hyung Joon Koo said at one of the stops on the third annual Success Starts Here Bus

Montgomery Business Journal February 2013

Tour, celebrating expansions at existing industries. “We look forward to continuous growth,” he said. GLOVIS Alabama has invested $20 million-plus in its facility and now has 479 employees. City, county, Montgomery Area Chamber of Commerce officials and others participated in the bus tour. “Job creation is at the heart of the Chamber’s mission and supporting existing business ensures that investments will continue to be made in our local economy,” said Lee Ellis, chairman of the Chamber’s Board of Directors. “Today is all about existing industry. Let’s keep cheering Montgomery – it gets better every day.”

Top Left: Montgomery County Commission Chairman Elton N. Dean addresses the crowd at GLOVIS Alabama’s plant in Montgomery. He was joined by Montgomery Mayor Todd Strange (left), Montgomery County Commission Vice Chairman Dan Harris Montgomery City Council president Charles Jinright, Montgomery City Councilman Richard Bollinger and GLOVIS Alabama CEO Hyung Joon Koo. Right: Duk Kim, plant manager for the Lear Corp. facility in Montgomery, speaks at the Success Starts Here tour as Montgomery City Councilman Arch Lee looks on. Above: Cindy Martin, president of Alabama Media Group.

Another HMMA tier one supplier, which announced an expansion in 2012, was Lear Corp., which added 93 employees and had a capital investment of $90,000. Lear makes seat components for HMMA and the Kia plant.

Trails and just a stone’s throw from the Railyard Brewing Co. and second-floor tenant Partners Realty. The Alabama Media Group, which includes the Mobile Press-Register, The Huntsville Times, The Birmingham News and al.com, reaches more than 900,000 weekly readers and 3.2 million-plus unique monthly visitors to al.com. “This plant has been consistently recognized as one of the best plants year after year,” said Lear Corp. Plant Manager Duk Kim. Lear now has 335 workers. Another existing industry recognized during the bus tour was Alabama Media Group, which set up its office next to Southern

“We want Montgomery to be part of what we do and that led us to choose this particular location.” Cindy Martin, president, Alabama Media Group

“We see this as a significant growth opportunity for our company,” Alabama Media Group President Cindy Martin said. “We want Montgomery to be part of

Continued on page 19

February 2013 Montgomery Business Journal

No metal, no rust:

Rheem’s new water heater made in Montgomery by David Zaslawsky

Rheem’s water heating division is located in Montgomery, but that site was in competition with other manufacturing facilities the company has, including Mexico, to produce a new product.

(Montgomery Area Chamber of Commerce), we’re able to bring the investment and the jobs to Montgomery,” Luehrs said. “We expect to be in full production in the summer of 2013.”

That new product is the Marathon water heater and what sets it apart from other water heaters – it’s plastic – and according to Dan Luehrs, corporate vice president for quality and the Montgomery plant manager, it’s the only water heater in the world that contains no metal. “It will not rust,” he said proudly.

The company’s manufacturing facility was part of the third annual Success Starts Here Tour, which showcases existing industry expansions and the preservation of existing jobs. Rheem Water Heating has nearly 1,150 jobs at three Montgomery locations.

The futuristic water heater being manufactured at Rheem’s facility at Gunter Industrial Park meant an additional 26 jobs and an initial capital investment of $2.5 million. “Because of the efforts and the commitment of the city, county and the Chamber

Montgomery Business Journal February 2013

The new water heater will be available in several sizes and for now is only electric. Luehrs estimated that the Montgomery facility produced close to 1 million water heaters in 2012. “The Montgomery plant builds a full line of residential water heaters and the Montgomery plant is the exclusive location for commercial Rheem water heaters,” Luehrs said.

Dan Luehrs is Rheem Water Heating corporate vice president for quality and the Montgomery plant manager.

The Montgomery plant has manufactured 40 million-plus units during its 40-year history in Montgomery, according to Luehrs. “We look forward to continued investment and continued job creation for another 40 years here in the Montgomery location,” Luehrs said. •

Top: GLOVIS Alabama CEO Hyung Joon Koo said his company looks forward to continued growth. Standing behind Koo (from left) Montgomery County Commission Vice Chairman Dan Harris, Montgomery City Council President Charles Jinright, Montgomery City Councilman Richard Bollinger and Montgomery County Commission Chairman Elton N. Dean. Bottom: Montgomery Mayor Todd Strange said that when existing industries expand it shows that company officials “have confidence to trust this community and they’re willing to reinvest in this particular area.”

said that we’ve become a family when we recruit you to Montgomery. You always want to be there to assist them in whatever their needs are. This is what this tour is all about.” Continued from page 17

what we do and that led us to choose this particular location.” Montgomery County Commission Chairman Elton N. Dean thanked the companies and the companies’ employees who are the reason for expansions. “It’s very important that we go out and recruit new businesses all the time,” Dean said. “A lot of places leave them alone (after being recruited). I’ve always

Montgomery Mayor Todd Strange said, “What’s important is that they (companies) have the confidence to trust this community and they’re willing to reinvest in this particular area. Anytime that they reinvest, that means you’re going to keep what’s already here.” He said that when companies look at the Montgomery area, local economic development officials turn to existing industries “as our No. 1 salespeople.” •

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February 2013 Montgomery Business Journal

Shattering Hyundai breaks all-time annual sales record by David Zaslawsky

Records Although they are separated by about 2,000 miles, Costa Mesa, California-based Hyundai Motor America and Montgomery-based Hyundai Motor Manufacturing Alabama (HMMA) share the same fate.

Hyundai Motor America (HMA) is the sales and marketing arm for Hyundai in the United States and when sales volume is up – everybody is happy, including the corporate officials of Hyundai Motor Group in Seoul, Korea. When sales increase that’s awfully good news for the 3,000-plus employees at the HMMA plant in Montgomery. “We try to keep team members informed of what is going because they know that their job depends on sales and the acceptance of that vehicle in the marketplace,” said Robert Burns, senior manager of public relations and sales for HMMA. “It’s important for the team members’ longrange planning. From their own individual perspective – they may be thinking about moving into a house… They feel confident that as long as they do their job that the company is backing them up in the sense of promoting the vehicles being sold and they can feel good about their future.” Those employees can feel confident in manufacturing two of Hyundai’s best-selling

The company’s manufacturing facility produced 300,500 vehicles in 2010. “It’s a result of Hyundai’s ever-growing brand and recognition as a high-quality product at the marketplace that drives demand all the way back to the plant,” Frye said.

vehicles: Elantra and Sonata. About two-thirds of all Hyundais sold in the U.S. are either Elantra or Sonata and those two accounted for 400,000plus units sold in 2012. The company broke the 2011 record of 645,691 vehicles in early December 2012 and closed out the year with 703,007 vehicles sold, a 9 percent increase over the previous year. And more importantly, Hyundai reached the 700,000 milestone for the first time. The HMMA plant also had a record production year – building 361,348 vehicles in 2012 compared with 338,127 vehicles in 2011. “It’s a constant challenge to provide as many vehicles as HMA is ordering from us,” said Ashley Frye, vice president of production for HMMA. “Several years ago, we were outputting considerably fewer vehicles compared to what we have today.”

John Krafcik, president and CEO of Hyundai Motor America, was quite pleased with the December sales and year-end totals. “We closed 2012 with strong demand in both volume and premium segments and all-time sales records for December and the full year,” he said in a statement.

Robert Burns, senior manager of public relations and sales

The HMMA employees play a critical role in the company’s overall success. “They have to assemble a quality car and we have to depend on the suppliers to do their Continued on page 22

ecords February 2013 Montgomery Business Journal

Continued from page 21

part,” Burns said. “We have to depend on Hyundai Motor Group to design and Hyundai Motor America’s design team to come up with a vehicle that is going to appeal to the consumer, but then we have to complete the package. “We’ve got to be able to build the car as designed without any issues and if issues are identified – resolve those issues – so that the customer is going to be happy and have a great driving experience with the vehicle.” To establish a sales record last year, Hyundai had to ramp its production at the Montgomery plant and added a third crew/third shift in late fall by adding 877 employees. That third production shift increased HMMA’s daily capacity to 1,550 units by adding about 180 units a day. “The concern throughout this year (2012) from the dealers’ perspective (has been) having enough inventory on their respective lots to be able to have just the right vehicle

the consumer wants,” Burns said. “The only way a dealer can have a variety is if he has the volume of cars coming to his lot. Our role has been able to have enough production to support the inventory levels these dealers want. “If we are able to supply that number of vehicles – that translates into higher sales. Our ability to meet that dealership demand is important.” He said if the vehicles are not on the lot, a consumer is likely to visit another dealership. “With teamwork from thousands of Hyundai team members in manufacturing plants, offices, engineering centers and dealerships across the U.S., we’ve been able to increase our supply of our hottest-selling vehicles like Sonata, Elantra and Santa Fe, and deliver more satisfied customers than ever before,” Krafcik said. It was just a short nine years ago that Hyundai first sold 400,000 vehicles in the

That’s what Hyundai is all about – the highest quality of vehicle that’s being sold and that is very stylish as well. Ashley Frye, vice president of production, Hyundai Motor Manufacturing Alabama

Montgomery Business Journal February 2013

U.S. It did not eclipse the 500,000 plateau until 2010.

Experts have forecast new car sales to reach 15 million this year after 14.5 million units were sold in 2012. “What that means to us here is while we’re continuing to increase output of the product here, our competitors are as well,” Frye said. “At the same time, we have to maintain our focus on ensuring that the quality of our product is the highest level that’s being sold in the marketplace. After all, that’s what Hyundai is all about – the highest quality of vehicle that’s being sold and that is very stylish as well.

Meanwhile, Sonata’s sales topped the 200,000 mark for the second straight year and broke its all-time yearly record with 230,605 units sold in 2012. Elantra also broke its annual Ashley Frye, vice president record with 202,034 units in of production 2012. It was the first time that Elantra broke the 200,000-unit milestone. Elantra sales were up 8 percent for “The competition is out there doing it and we absolutely have our eye on that ball and we’re 2012 and Sonata sales increased 2 percent. not going to be tripped up like some of our “Adding the third shift to our plant in competitors have in the past.” Alabama this year has allowed us to better All the Sonata models except the hybrid are meet demand for Elantra,” Krafcik said. “With a full year of three-shift U.S. production manufactured in Montgomery while some Elantras are imported from Korea to meeting in 2013 we hope to introduce even more rising demand in the U.S. • American car buyers to Elantra next year.”

Hyundai Sales VEHICLE

YTD 2012

YTD 2011

Accent

61,004

55,601

Sonata

230,605

225,961

Elantra

202,034

186,361

Santa Fe

71,016

74,391

8,431

1,524

Tucson

48,878

47,232

Veloster

34,862

9,284

Veracruz

8,232

9,146

33,973

32,998

3,972

3,193

703,007

645,691

Azera

Genesis Equus Total

Source: Hyundai Motor America

February 2013 Montgomery Business Journal

The immediate past Montgomery Area Chamber of Commerce Chairman of the Board of Directors Lee Ellis was fond of telling his children over and over a quote from John D. Rockefeller. Ellis said the quote goes something like this: “There are lots of people who dream and dream big and there are lots of people who will work and work hard, but there are just a few people that dream big and work to do whatever it takes to accomplish it.” He recalled that quote the other day when he was asked about the 2012 Chamber Chairman’s Award, which he presented to a shocked and visibly moved Montgomery Mayor Todd Strange at the Chamber’s Annual Meeting. “The mayor fits that to a tee,” Ellis said about his often-repeated saying. “I’ve known or known of Todd for many years and it wasn’t until I was out there in the battle watching what’s going on in this city and learning so much about the wonderful city we have – that I realized that he is the driver of everything happening that is good and there is an awfully lot of good happening.

You’re never not

the mayor Strange receives Chamber Chairman’s Award by David Zaslawsky

photography by Robert Fouts

Montgomery Mayor Todd Strange was the recipient of the 2012 Chamber Chairman’s Award, which was presented at the Montgomery Area Chamber of Commerce’s Annual Meeting.

Montgomery Business Journal February 2013

“He cares about all the people and will work from dawn to dusk to do whatever it takes as the mayor of this city to make it a better place.” The mayor, who won re-election in August 2011, does work from dawn to dusk. His weekday schedule is 7 a.m.-7 p.m. The staff needs his approval for appointments after 7 p.m. on weekdays as well as weekend appointments. “You’re never not the mayor,” Strange said. During a special lunch to thank city maintenance workers for their efforts with the Christmas parade, one person came up to him and asked about securing doors at schools and another asked about when the city was going to pave a street. He said he doesn’t mind the comments. “It comes with the territory,” he said, but Strange brings a different level of commitment and passion to his job as well as his boundless energy. Strange is passionate about Montgomery and even talks about his love affair with Montgomery, where he worked as a regional

manager for Bell Telephone and later in the car business. “His strongest quality is his unwillingness to give up or walk away from a big challenge and we faced a lot of big challenges under his leadership,” Ellis said. “He has met all of them head on.” Strange said, “You always want better and you’re never satisfied. You’re always looking at how can we make that better? How can we improve that? How can we go to the next level? It’s a shared vision. It’s one thing to have the vision, but it’s another thing to be able to translate that vision into action. “I start from where I want to be and back it up and see how you get there. I think that what I learned is patience. The wheels of progress move pretty slowly. I get frustrated when we don’t get to where I want to be as quickly as I want us to be there. As long as you’re moving forward – as long as you’re taking four steps forward and only two steps back – you’re making progress.” Strange said that he was “honored” to receive the Chairman’s Award. “Certainly, there are many other deserving people that would

receive it because frankly that’s my job. It’s my job to be a cheerleader. It’s my job to lead.” He said it was an emotional moment “because you put so much into this and the truth of the matter is there is personal sacrifice. You know people appreciate it, but in one fell swoop for a group of individuals to say how appreciative they are of what you do is very meaningful to me and I was very humbled.” Ellis said that the City of Montgomery would have been a different place without Strange. “We wouldn’t be where we are. We wouldn’t have had the job growth. We wouldn’t have the lowest crime rate that we’ve ever had. And we wouldn’t have the excitement or commitment from all the citizens without his leadership. “He is as genuine a leader that I’ve ever worked with or for. I worry about the day that we lose him because he is such a good influence on every part of the city. I hope we are able to find the right person that will continue to work to bring everybody together because that’s how we’re making Montgomery great – by working together.” •

February 2013 Montgomery Business Journal

Putting

alabama

First Itâ&#x20AC;&#x2122;s state before party for Rep. Terri Sewell by David Zaslawsky

photography by Robert Fouts

Rep. Terri Sewell is the lone Democratic lawmaker in the Alabama congressional delegation, but her first allegiance is to the State of Alabama and not her party. She told the audience at the Montgomery Area Chamber of Commerce’s Eggs & Issues event that she evaluates bills in three areas: > How it affects her Seventh Congressional District, which includes parts of Montgomery and Lowndes counties > How it affects the State of Alabama > How it affects the overall goals of the country. “I think it’s important that we don’t look at legislation just as D and R, but we really try to concentrate (on,) is it in the best interests of the people we represent? I hope that you all understand that I am a straight shooter. I think the best thing I can do as a representative for Montgomery is to be honest and forthright about what I can and cannot do.” Sewell, D-Birmingham, who was named a chief deputy whip by the Democratic leadership, has broken with party ranks and opposed EPA regulations on greenhouse gas emissions because it would adversely impact Alabama farmers. She voted with the GOP on the Restore Act “because it provided better economic prosperity and opportunities for Mobile.” She was evaluating bills based on her criteria. “To make a partisan vote just because you’re a Democrat did not make sense to me. I am first and foremost an Alabamian – a proud Alabamian. When we can find common ground we should do that – it’s critically important.” Sewell said one of her second-term goals is work force development and training. She talked about private and public partnerships and four-year and two-year educational institutions working with the business community to develop the skill sets for existing jobs and jobs that officials are trying to attract. She plans to launch a job readiness initiative she calls Project READY (Realizing Everyone’s Ability to Develop Yourself).

about failing to pass a five-year farm bill over the size of proposed cuts to the food stamps program. “I think the real challenge facing us is how to divide a very limited pie,” Sewell said. “I think it’s really important that we hear from all factions of society. Although it may hurt me to my core to consider changes to Medicare or Social Security, I have to consider that.

“I think it’s important that we don’t look at legislation just as D and R, but we really try to concentrate on, is it in the best interests of the people we represent?” Congresswoman Terri Sewell

“I believe in a balanced approach (to deficit reduction). I think we should consider all options and put everything on the table …” She was adamant about raising the debt ceiling and not using it as leverage for spending cuts. “Our debt ceiling is our credit card and we have already spent that money,” she said. “America pays its bills. The global economy counts on America paying its bills. “Democracy is messy and it’s not always pretty, but I wouldn’t trade living in the United States of America for anywhere in the world. I think we have a wonderful gift that we have to protect and I think the best way to do that is put aside partisan politics and really focus on what’s the best interest of America.” •

She talked a lot about compromise and collaboration as well as the debt ceiling, sequestration and her disappointment

February 2013 Montgomery Business Journal

State delegation’s two women form personal bond

assisting Alabama specialty crop farmers and catfish producers.

said she was “especially proud” to call Roby her friend.

“Where we have found common ground is our love of the State of Alabama,” Sewell said about Roby.

by David Zaslawsky

The Alabama delegation has a monthly lunch and the first two women in the delegation have been instrumental in introducing salads to the traditional country fried steak and mash potatoes meal. Roby and Sewell often have dinner together and it’s a time for girl talk – no Rep. Martha Roby politics allowed.

“What is so great with my relationship with Martha is we may differ about our approach or solutions that we want, but I have never, ever questioned her commitment to her constituents and never questioned her commitment to the state and never, ever questioned her commitment that she believes in her heart that she is doing exactly what she needs to do. And I hope she gives me that same deference.”

It was an unusual sight at the head table at a recent Montgomery Area Chamber of Commerce Eggs & Issues event. The featured speaker was Rep. Terri Sewell, D-Birmingham, but what was highly unusual was that one of her Republican colleagues was sitting at the head table and would introduce the lone Democrat in the state’s delegation. That Republican colleague was Martha Roby, R-Montgomery, who, like Sewell, is in her second term. Roby said that she and Sewell differ about 95 percent of the time on policy, but continue to work together and find common ground where they can. And the two found common ground helping Alabama deal with devastating tornadoes in April 2011; working to protect the C-130s at Maxwell Air Force Base and hundreds of jobs; and

Montgomery Business Journal February 2013

“It is my privilege and honor to introduce my friend … who I hold in very high regard – your congresswoman Terri Sewell,” Roby said. Sewell returned the warm regards, calling Roby “my esteemed colleague.” She

Roby nodded her approval and throughout her talk, Sewell frequently turned to face Roby. “If Washington could see the relationship that we in the Alabama delegation have with one another and especially my relationship with Martha Roby – we can get things done,” Sewell said. “I can tell you that Martha and I over a bottle of red wine could solve (problems),” Sewell said. “It’s about figuring out priorities.” •

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Investor Profile

Larry D. Puckett is president of Larry Puckett Chevrolet.

Driving

Loyalty Larry Puckett Chevroletâ&#x20AC;&#x2122;s reputation delivers loyal customers by David Zaslawsky

photography by Robert Fouts

oyalty

He does have loyal customers and those loyal customers see the same employees year after year. “If you go to a business and every time there is a different face, your antenna has to go up a little,” Puckett said. “People know our employees; they trust them and know they are going to do what’s right. We try to make sure that when you come here you are not just a number.” Those employees are Puckett’s “secret weapon.” He said that they truly care about one another. “Our employees pull together,” he said. “We try to do what’s best for all of us.

PRATTVILLE – In the automotive industry, car salespeople frequently change jobs and dealerships are bought and sold, but Larry Puckett Chevrolet is a Prattville institution. The dealership has been here since 1982 and at its current site since October 1988. That’s 24 years at its Cobbs Ford location, but with a recent $3.5 million makeover it doesn’t look the same. The new showroom is a showcase with a raised ceiling, lots of glass and airy and open atmosphere, as well as new flooring, lighting, modular furniture, computers, landscaping, customer lounge, play area for children, WiFi area – and there are still additional renovations coming this year. The 10-month construction project was completed in November and although Larry Puckett, president of Larry Puckett Chevrolet, had his marching orders from Chevrolet on the dealership renovation, he did much more. He had the front building, which contains the showroom and office space, torn down and rebuilt with new energy-efficient heating and air conditioning instead of a renovation. He has been an innovator in the industry with the introduction of his Express Oil Change station back in 1988. Puckett saw a need to save time for his busy customers – many of whom are two-parent working families. He also saw that need for the area’s first express oil change site because of his own impatience. “We can service any make of car; we can maintain that car; and we can do it at a very competitive price,” Puckett said. He said that the vehicle will be inspected and “if that person needs brakes and if they have the time, we will stop what we’re doing to finish the job.” That’s just one small example of why Larry Puckett Chevrolet has been so successful over the years. He credits that success on “treating customers fairly and treating employees fairly,” he said. “It’s pretty simple – we try to do the right thing.” That right thing can even mean turning away business. Puckett recalled a customer coming in for an oil change and after an inspection, the vehicle needed about $1,000 in repairs. The vehicle was not a Chevrolet and the customer was told that if they had an extended warranty it would pay for the repairs.

“For us to survive, myself and others have to do a good job. My finance and insurance people have to do a good job. Everybody has a job to do. Everybody has to perform for us to survive. We all have a responsibility … for all of our well-being and survival.” Puckett’s job is the face of the dealership. “Part of my job is to be that high-profile person,” said Puckett, who is a strong advocate of “paying your civic rent” by being an active member in the community. He has been involved in numerous boards and had leadership positions in both the Montgomery Area Chamber of Commerce and Prattville Area Chamber of Commerce. His goal is having the public think of Larry Puckett Chevrolet for all their automotive needs. “What we’re trying to do is be the people’s automobile dealer of choice,” Puckett said. “If you think about anything automotive you can call one number: 285-9300 – and we can fix it for you or we’ll put you in touch with somebody that can fix it for you. I think that comes with a little piece of mind.” His employees also have that little piece of mind. One of those employees – Vicki Andrews – recalled that an employee with Lou Gehrig’s disease (ALS) was kept on the payroll when he couldn’t function at his desk and was in a wheelchair. “He wouldn’t actually work, but he was on the payroll,” she said. “When he couldn’t come in to work and was in his bed – he was still on the payroll. Until the day he died he was on the payroll. That speaks volumes.” •

Larry Puckett Chevrolet Number of employees

67 31

Years in business

“He did the right thing,” Puckett said of his employee who advised that customer. “And that’s what we try to do and I think everybody knows that. If you do that over a period of time, customers become loyal.”

February 2013 Montgomery Business Journal

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Most of the development in East Montgomery is less than 8 years old except The Shoppes at EastChase, which celebrated its 10th anniversary this past November. That’s right; it’s already been 10 years since those 40 or so stores opened at EastChase, just off the Taylor Road exit on Interstate 85. Montgomery had strong retail corridors on the Atlanta Highway bypass and Zelda Road as well as other sites and one-of-akind boutiques in both Cloverdale and the Mulberry District, but lacked a larger, more concentrated area of upscale specialty shops. Consumers had to go to Birmingham or further to shop at upscale retailers. “Now, we’re a magnet for East Alabama and South Alabama,” said Montgomery Mayor Todd Strange. “Even the Prattvilles of the world come to EastChase for the upper-end stores and frankly we’re going to get more in that area.” From day one, EastChase not only attracted shoppers from outside the area, but kept local customers’ dollars in the city. And those are some big dollars. The stores are bringing in more than $300 a square foot, according to Jim Wilson III, CEO and chairman of the board of Jim Wilson & Associates, which developed EastChase along with Alfa Properties. Add all the stores and Wilson estimates annual sales at EastChase of $225 million-plus.

“Now we’re a magnet for East Alabama and South Alabama.” Montgomery Mayor Todd Strange

“This has an economic impact as big if not bigger than Hyundai because we are a retail sales tax state and not a property tax state,” he said, referring to the state’s low property taxes and Montgomery’s sales tax of 10 percent. Sales taxes comprise the biggest chunk of the state’s education budget. The state receives 4 percent; the city gets 3.5 percent; and Montgomery County receives 2.5 percent. That’s just part of the impact. An estimated 1,000 people work at EastChase and it has cost an estimated $300 million to develop EastChase, which includes the retailers’ investment in their stores. By the time the entire project is completed – and it’s a 25-year project – Wilson said that capital investment will be in the $500 million range.

Montgomery Business Journal February 2013

There was never a shortage of shoppers in East Montgomery. The current demographics show an estimated 86,000 people live within a 5-mile radius of EastChase and about 325,000 within a 20-mile radius. A key demographic for retailers is the average household income of about $83,000 within a 5-mile radius of EastChase – upscale shoppers. Now throw into the mix traffic counts: About 70,000 vehicles travel daily on Taylor Road. Now, you begin to understand that monumental November in 2002 when a treasure trove of upscale stores opened at a lifestyle center called The Shoppes at EastChase. These were specialty stores and many of the retailers were new to the area. Montgomery and in particular East Montgomery would never be the same. “Anytime you have a retail concentration in one particular area – that is going to create rooftops,” Strange said. “It’s going to create commercial entities whether it be tire stores or drugstores or dry cleaners or medical. Continued on page 37

February 2013 Montgomery Business Journal

EastChase has changed shopping patterns. It created a new shopping venue.â&#x20AC;Ś It filled a void in the marketplace.â&#x20AC;? Jim Wilson III, CEO and chairman of the board of Jim Wilson & Associates

Continued from page 35

Itâ&#x20AC;&#x2122;s going to lead to other development opportunities out there, including residential and retail.â&#x20AC;? EastChase was the catalyst for East Montgomeryâ&#x20AC;&#x2122;s growth, which in the past decade has featured new subdivisions, new schools and more and more retailers. â&#x20AC;&#x153;EastChase has changed shopping patterns,â&#x20AC;? Wilson said. â&#x20AC;&#x153;It created a new shopping venue. It changed shopping styles where you used to venture out of Montgomery or hit the other venues in town. This consolidated a lot of things into an easier access and an easier point to get to one center and have food. And bringing new tenants to town created a need of want. It filled a void in the marketplace.â&#x20AC;? Strange compared the impact of EastChase in East Montgomery to the impact of the Montgomery Biscuits and the Renaissance Montgomery Hotel & Spa at the Convention Center on downtown Montgomery. â&#x20AC;&#x153;If youâ&#x20AC;&#x2122;re coming to Montgomery then you have to come here to be successful because

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of the interstate and the synergy that weâ&#x20AC;&#x2122;ve created,â&#x20AC;? Wilson said. â&#x20AC;&#x153;There is not another place in the city that has the tenants that we have and the road networks that we have and the establishments that we have.â&#x20AC;? Some of the first retailers to EastChase that were new to Montgomery included Ann Taylor, Banana Republic, The Gap, Williams-Sonoma, Talbotâ&#x20AC;&#x2122;s and The Childrenâ&#x20AC;&#x2122;s Place. Nearly 20 of the original tenants are still at EastChase, which attests to the developmentâ&#x20AC;&#x2122;s success through good times and bad. â&#x20AC;&#x153;There is some pent-up demand in Montgomery and surrounding areas for this shopping component,â&#x20AC;&#x2122; Kevin Ketzler, vice president of Alfa Properties told Shopping Centers Today. â&#x20AC;&#x153;The decision to expand my small business 10 years ago to a new outdoor shopping concept was not an easy decision,â&#x20AC;? Merle Norman Peggy Perdue said in a statement. â&#x20AC;&#x153;Fortunately, I opened the EastChase

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February 2013 Montgomery Business Journal

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Studio and have enjoyed more success. The studio is one of the Top 10 studios in lifestyle centers out of 1,500 studios. It is destination shopping at its best with beautiful landscaping and high-end shopping.â&#x20AC;? Over the years, The Shoppes at EastChase grew to about 400,000 square feet and a power center â&#x20AC;&#x201C; The Plaza at EastChase â&#x20AC;&#x201C; opened in 2003 and is anchored by Target and Kohlâ&#x20AC;&#x2122;s. The 325,000-square-foot Plaza also features World Market, PetSmart, Pier 1 Imports and Ross Dress for Less. In 2004, Dillardâ&#x20AC;&#x2122;s opened a massive store at EastChase and the development continued to grow throughout the years as some retailers moved from other Montgomery locations, such as Rooms To Go, and new-to-thearea retailers flocked to EastChase: DSW, Francescaâ&#x20AC;&#x2122;s Collections, Chicoâ&#x20AC;&#x2122;s, Coldwater Creek, Versona Accessories, Cache, American Eagle, World Market, World Dress

Barn, The Buckle, New York & Company and Express. In late 2007, a new power center â&#x20AC;&#x201C; EastChase Market Center, opened with the regionâ&#x20AC;&#x2122;s only Costco and the following year more retailers filled in the 300,000-plus square-foot center, including UTLA and Dickâ&#x20AC;&#x2122;s Sporting Goods, and later, JoAnn Stores. All three were new to Montgomery and some of the cityâ&#x20AC;&#x2122;s familiar retailers also came to EastChase Market Center: Michaelâ&#x20AC;&#x2122;s, Old Navy and Bed, Bath & Beyond. That center is still owned by Jim Wilson & Associates. JP Morgan now owns The Shoppes at EastChase and The Plaza at EastChase, which are managed and leased by Birmingham-based Bayer Properties, which increased the leasing from 76 percent capacity to 100 percent in two years. The EastChase development now boasts 10 hotels and 782 rooms, which represent 11

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Montgomery Business Journal February 2013

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percent of all the hotel rooms in the market, but account for 17 percent of all the revenue.

Animal Hospital; or taking care of your car at Firestone.

In addition to the hotels is Broad Street at EastChase, which features one-, two- and three-bedroom apartments ranging from 871 square feet to 1,303 square feet. There are 350 units.

That’s only the tip of the options and when it comes to food options, there is everything from fine dining to fast-food restaurants. It is by design that EastChase has 20-plus food establishments and there will be more in the future. Twelve of the 29 outparcels are food establishments.

Don’t forget the development’s 100,000-square-foot office building – Lakeview Center. And even with all of its 1 million-plus square feet of retail, there are available outparcels throughout EastChase. Those outparcels are available for hotels, restaurants, banking, apartments and small offices, according to the Jim Wilson & Associates website.

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Food is such a key draw that Wilson said “a lot of people know EastChase because of the food options. In a lifestyle center like this, to get people to get out of their house – you’ve got to have food. Food drives people. They will come out of their house for food – not for a pair of chinos. That’s why you see so many restaurants.” •

You can find just about anything you want at EastChase and that has been expanded to taking care of your body at Gold’s Gym, an urgent care facility or at Earth Fare; taking care of your dog or cat at Golden

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February 2013 Montgomery Business Journal

A master plan Keeps coming together by David Zaslawsky

A handful of the stores and restaurants that originally opened at The Shoppes at EastChase 10 years ago are still operating. Yet, from that beginning of about 40 stores/restaurants and about 180,000 square feet of space, the development has grown to about 1.3 million square feet of retail space; 325 apartment units; 100,000-square-foot office building; and 10 hotels with almost a combined 800 rooms. That spells success and what puts an exclamation mark on it is the development is still growing: There may one or two more 100,000-square-foot office buildings and maybe some much smaller office complexes. There could be one or two more hotels. There could be another 250 apartment units. There will be additional retail, including three or four restaurants early this year. Those are the comments from Jim Wilson III, chairman and CEO of Jim Wilson & Associates, which continues to developEastChase along with Alfa Properties. Actually, the two companies have worked together from the beginning of the project – combining forces to buy the land instead of bidding against each other after two other projects fell through for the site. “EastChase is a 25-year development,” Wilson said, “and we have about 100 acres left.” EastChase has been highly successful since its opening in November 2002. Three of the reasons, according to Wilson, are location, timing and financing.

Montgomery Business Journal February 2013

The location, thanks to the interstate, has brought customers from all over the River Region as well as Auburn/Opelika. “We came in here and said, ‘Let’s do a master plan; handle the traffic flow up front,’ ” Wilson said. “There were about $20 million worth of roads built so that we could handle all the traffic flow and make it a master-planned commercial project.” Wilson said it took four or five years to buy the land; acquire the proper zoning; obtain financing; lease properties; and build the shopping center. “Rome wasn’t built in a day,” Wilson said. “It was like building blocks. We built The Shoppes and then Dillard’s came; then Target came; then Kohl’s came; then Costco came; and then the hotels came.” EastChase has brought new tenants to the area. “When you bring new tenants to the market like we did at EastChase, that stops the leakage (retail sales) from going to Atlanta or Birmingham. That’s the key to being a successful new development.” Wilson said the development filled a void in the marketplace with its upscale retailers.

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“If you’re a new tenant coming to town – a regional tenant or a national tenant with a regional or national draw – you have to come look at EastChase first,” Wilson said. “This corridor is the right corridor for growth and the right economic demographics for what the retailers are looking for. “We don’t dictate demographics and we don’t dictate the road network. The worst thing you can do is try to create a market where it’s not – force the shopping center. We enhanced the road network here at EastChase to make it work. We applied our knowledge to what the tenants wanted.” He credits EastChase with changing shopping patterns by consolidating retail options and providing easy access via the interstate. •

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February 2013 Montgomery Business Journal

William J. Canary is the president and CEO of the Alabama Business Council and Anita Archie is senior vice president of intergovernmental affairs, advocacy and communications/ legal adviser for the organization.

Supporting Employersâ&#x20AC;&#x2122;

RIGHTS Legislative battle looms over firearms at the workplace by David Zaslawsky

photography by Robert Fouts

The Business Council of Alabama’s legislative agenda form 2013 focuses on the usual items – the state’s two budgets – Education Trust Fund and General Fund.

One bill that has been proposed would allow employees to leave firearms in a company’s parking lot and other gun-related proposals are expected in the 2013 legislative session.

The business advocacy organization, which conservatively represents 750,000 “working Alabamians,” as BCA President and CEO William J. Canary calls his members, will keep a keen watch on education and health care developments in the upcoming legislative session.

“Those who are advocating in certain areas of this legislation are seeking a solution where no problem exists,” Canary said. “We believe strongly and have advocated that the Constitution provides equal importance to all of its amendments and therefore no amendment should trump another. The Second Amendment and the Fifth Amendment have standing. We believe strongly that there is no threat of any attack on the Second Amendment in Alabama.

Yet, one of the key priorities that the BCA adamantly opposes – with all its might and influence – is the Alabama Legislature passing a bill that would allow employees to have firearms in their vehicles at the company parking lot. In lieu of the mass slayings in Newtown, Connecticut, where 20 young schoolchildren and six adults were gunned down at Sandy Hook Elementary School, legislation dealing with guns will be a hot topic. In the organization’s newsletter called The Business Advocate, the BCA states it “will actively oppose any legislation infringing on employers’ right to provide a safe workplace by restricting unauthorized firearm possession on company property and/or creating any new causes of action against employers because of such policies.” Anita Archie, senior vice president of intergovernmental affairs, advocacy and communications/legal adviser for the BCA, said the organization has battled against the workplace firearm issue for several years. She and Canary have met with representatives from the National Rifle Association (NRA) and explained the organization’s position. “As we’ve pointed out to the NRA, we don’t have a problem here in Alabama,” Canary said. “There is nothing that has risen to the level where they’re trying to legislate an issue that is entirely not necessary.” Archie said that the BCA is “the only association that is on the front line of this issue. Tell us what is the problem that you need to come here and have this legislation? Our members are strong believers in the Second Amendment and always have been, so tell us why this legislation is necessary in the State of Alabama? If you can’t give us a valid reason, than it’s a political reason for doing it.”

“We believe strongly that people who run businesses and maintain businesses have an inherent property right and that is their right to make the determination of what’s in the best interests of their employees within both federal and state law. And more importantly, how to protect their workers as best as they are capable at the workplace. “We have maintained a very rational, logical position – our members are very much concerned about government’s overreaching into their world.” Canary said if there is a serious conversation about firearms at the workplace, the BCA advocates employers have immunity from any type of liability and “businesses should have the right to opt in or opt out.” He said there have not been any discussions about immunity from liability and giving the employer the option of allowing firearms at their business.

The BCA released a statement late last year about bringing guns to work: “At a time when the business community in all sectors should be focused on creating jobs, we instead are dealing with this unnecessary legislation which erodes the constitutional property rights of businesses. Alabama businesses are already struggling with burdensome regulations that impact productivity and increase costs.”

Another aspect of the proposed legislation that concerns the BCA is imposing the mandate on the private sector and exempting the public sector. “If the argument is that this person deserves this level of safety, why should it be limited to the private sector?” Canary asked. “What difference should it make if you are a public sector employee or a private sector employee? That’s called discrimination. We hope not to deal with the issue, but realistically we believe we will probably have to.” •

February 2013 Montgomery Business Journal

Education remains at top of BCA’s legislative agenda by David Zaslawsky

The Business Council of Alabama’s leadership is passionate about education and once again this legislative session will be advocating funding for voluntary pre-K programs. BCA President and CEO William J. Canary would like to see “the need for business practices to merge and marry into the education community across the board from pre-K voluntary programs right straight through career training, community college system and four-year” institutions. The statewide association that represents around 750,000 people in the work force also is throwing its weight behind efforts to increase the high school graduation rate. “One of the biggest things we hear all the time is that educators and businesspeople don’t know how to talk to each other,” said Anita Archie, senior vice president of intergovernmental affairs, advocacy and communications/ legal adviser for the BCA. “There is a disconnect. They have recognized that and plan to work together with business and industry so that you have a businessperson that actually can articulate … on what that program or curriculum needs to be designed for.”

Montgomery Business Journal February 2013

She said the process concentrates on math, science and reading, which lead to making students more employable. “It doesn’t mean you go on to a four-year institution,” Archie said. “It could be a two-year (school) or a short-term certificate program. Education is still one of the top issues on our members’ list.” As Canary explained, the new jobs being created in the state require “a 13th-grade education,” which is a high school degree and one year of advanced study. “You cannot sustain a work force with a high level of dropouts and you cannot sustain a work force on the old modeling,” Canary said. “I think the mantra now is ‘that the status quo is not an option.’ I think what you’re seeing is applying simple and dramatic business practices to a structure in the education community. “That’s why we have and continue to advance the … Business and Educational Alliance. If we continue to drive the two positive forces together you will create energy and we will create success and at the end of the day we will make the world better for these children and create that educated work force.” Archie said that the BCA is encouraged and excited by the partnership between Alabama State Department of Education Superintendent Tommy Bice and Alabama Community College Chancellor Mark Heinrich. The two are working closely together, Archie said, and are communicating with business and industry to identify what their needs are.

The BCA is also supportive of charter schools and hopes that legislation will be passed this session. “We had a lot of angst in the last session and we haven’t changed our view on it and many others haven’t,” Canary said. “We are never going to give up on the opportunity to find ways to lessen the percentage of individuals that find a path to drop out. We want to find ways to keep them in.” For the BCA, the 2013 legislative session “is a level playing field,” according to Canary, “which means no one wins for showing up and no one loses. There is an openness and willingness to listen. That’s a game-changer and at the same time, we’re just energetic and we’re aggressive in forging and forming the business

and education alliances in the state because the success for all of us will rise at that level.” Archie said that the lawmakers now contact the BCA and ask for its opinions and those opinions found their way into immigration legislation and restricting the sale of pseudoephedrine/ ephedrine products. “Now they (lawmakers) are seeking our input and guidance from the actual associations that have these members who are going to be impacted by (legislation),” Archie said. “That’s what has been absolutely the best thing that has happened in the last two years is having that phone call and conversation with folks.” •

“We are never going to give up on the opportunity to find ways to lessen the percentage of individuals that find a path to drop out.

We want to find ways to keep them in.”

February 2013 Montgomery Business Journal

Reporter’s Notebook by David Zaslawsky

Sports Capital of the South Montgomery is certainly developing a reputation as a player in the sports arena. Montgomery Mayor Todd Strange told a story about someone from Tuscaloosa interested in attracting a softball event. That person happened to attend a sports-related

breakfast that was sponsored by the City of Montgomery and lamented there was no chance of getting that event. “Third parties are telling me that we are becoming known in the state for a place that is very aggressive going after these sporting events,” Strange said. •

Remembering dad The EastChase development was the brainchild of the late Jim Wilson Jr., who was president and CEO of Jim Wilson & Associates. His son Jim Wilson III is the current president and CEO and was asked what it was like watching The Shoppes at EastChase grow to today’s mammoth development that now has three shopping centers, outparcels, hotels, office building and apartments. “Every time I drive through it, I think of my father,” Wilson said. And he drives through it all the time. His office is at the Lakeview Center in the EastChase development. •

Did you know that? The first company to call Gunter Industrial Park home was Rheem Water Heating. The company built a manufacturing facility there in the early 1970s.

Best photo Saint James School junior Hayley White captured first place in the City of Montgomery’s 2012 “Your Best Shot” photo competition. White received $500 for her winning photo, which is displayed in the One Dexter Plaza lobby. Twelve finalists were chosen by a panel of professional photographers, architects and city officials from more than 50 submissions. “I liked the picture because you could see the train shed and also Biscuits stadium in the background,” said White, who took the picture from atop the Montgomery Intermodal parking deck. “I just like that you can see so many parts of Montgomery in the picture.”

Montgomery Business Journal February 2013

White’s photography instructor Evelyn Shoults said that Hayley works very hard on her photography, both in and outside of class. “I am so very proud of her and this significant accomplishment.”

White, who says she also shoots photos for the Saint James football team, expects to continue photography as a hobby. She currently is studying to become an attorney. •

Inauspicious start Todd Strange, who was born in Mobile, first came to Montgomery in 1977 as a regional manager for Bell Telephone. “It snowed the first day I was here,” he recalled. He has another memory from his first days in Montgomery. The new phone directory had reversed the numbers for Blount’s dealership and Capitol Chevrolet. “When you called Capitol Chevrolet, you got Blount,” Strange said. Of course, Strange later teamed up with Blount. Strange was elected mayor in 2009 in a special election after then-Montgomery Mayor Bobby Bright left office to run for the U.S. House of Representatives. •

Superstar Elton John returning to Montgomery Grammy Award winner Elton John will return to Montgomery after a 12-year absence and will perform March 22 at Garrett Coliseum. Officials are considering a major renovation of Garrett Coliseum in hopes of bringing other big-name concerts to the facility. •

February 2013 Montgomery Business Journal

Investor Member Profile BUSINESS BUZZ (CONTINUED FROM PAGE 63)

Darrell Dapprich is president of Industrial Specialty Co.

One-Stop Shop Industrial Specialty Company can do it all by Jennifer Kornegay

photography by Robert Fouts

Founded in 1974, it seems the secret to Industrial Specialty Company Inc.â&#x20AC;&#x2122;s longevity and success is stability, and that comes from the top down.

Industrial Specialty Co. Year Founded

1974

Number of Employees

Primary Service

Machining

Awards/Honors

The Montgomery-based machining business can boast that more than half of its 48 employees have been with the company for 15 years or more. One quarter has been there for 20-plus years. “Our owner and founder, Ken Kranzusch, still comes into work every day,” said Industrial Specialty Co. President Darrell Dapprich. “That stability trickles down to all the employees, and I believe our low employee turnover equals low customer turnover.” While the company does have loyal customers, Dapprich also points out that the customer base is quite diverse. “Our clients are in very different industries, ranging from automotive to defense to water heaters,” he said. “That requires a lot of flexibility from our machinists, but we’ve got the talent to do it.” The company’s primary services include the specialized machining of precision machines parts and assemblies; custom-designed and fabricated industrial equipment; fixturing; tooling; and aluminum anodizing. It also includes creating parts for military defense. “We make ruggedized cases and keyboards for laptops and PDAs for use in the field,” Dapprich said. “We also do missile transport boxes for Lockheed Martin.” The company does some work locally as well, for Hyundai Motor Manufacturing Alabama in Montgomery.

Named Supplier of the Year in 2010 for large defense contractor

Dapprich again touted his employees. “Our folks are highly skilled, and that means we can do a lot of things,” he said. A recent award backs up his praise. In 2010, Industrial Specialty Company was named Supplier of the Year for a leading defense contractor. The company’s diversity goes one step further. Three years ago, Industrial Specialty Co. entered the retail market when it started making aftermarket accessories and parts for a popular motorcycle, the Can-Am Spyder. “That was a big leap for us, but we saw a void in the marketplace and knew we could fill it,” Dapprich said. Now, customers all over the country order floor mats, armrests, hand-brake systems and more for their bikes from Industrial Specialty. One other interesting note is the make-up of Industrial Specialty’s highly skilled work force. It takes the term “family business” to a whole new level. “We are family owned but also truly family run,” Dapprich said. “We have many families working here together, lots of fathers and sons; brothers; and husbands and wives.” And Industrial Specialty Co. is growing. The company just bought a building to expand. Dapprich credits his workers and the diverse customer base. “Those are the two things that set us apart, and thanks to them, we need more space for our machines and products,” Dapprich said. •

Another big selling point for the company? According to Dapprich, it’s the company’s one-stop-shop nature. “Normally, in manufacturing, there is a two- to three-step process. You’ve got the design, then the manufacture, then the finishing, often coating for most anything metal,” he said. “And normally, you have to go to two to three different places to do all that. But we can do it all here under one roof.”

February 2013 Montgomery Business Journal

Covering

Pam Mashburn is publisher of exploreMedia

New Ground exploreMedia creates niche in publishing arena by David Zaslawsky

photography by Robert Fouts

When Pam Mashburn was trying to teach her teenage son how to drive she ran into some obstacles â&#x20AC;&#x201C; the same obstacles most parents face: How do you teach your teenagers to drive?

One of the first issues she ran into was that her son was texting – as many teens do – while he was riding in the car and not paying attention to where their school and church are located. “I thought that this was going to be really easy and after almost getting killed three times – it was really hard,” Mashburn said. “I think it’s the most dangerous job as a parent.” It’s a job for which parents are ill equipped, so Mashburn sought help. “ ‘OK, dad, how do you teach someone to drive a car? Because I obviously don’t know how to do this,’ ” she recalled. Now Mashburn was already talking to the next driver in the family. One thing led to another, and Mashburn, who is publisher of exploreMedia, launched a magazine for parents of teens called Potential.

another. What started out as helping Realtors stage homes and then collecting information on public and private schools evolved into an annual publication for newcomers. Mashburn said the area has about 4,000 newcomers annually and about half of those are military, who attend classes at Maxwell Air Force Base and Gunter Annex. “We go to five military events each summer and we give them our guide and put together some welcome bags,” she said. “We work on penetrating the entire newcomers’ market. I have a base pass and ask what do they need to make them (military personnel) really feel welcomed.” In addition, the company is in its second year of its “Warm Welcome Montgomery” program, which is similar to the Welcome Wagon program. Mashburn uses four greeters to visit newcomers with the Know the

Every time I saw a business need,

“It’s for parents trying to get their kids ready for college,” Mashburn said. “There are publications written for teenagers, but not for parents of teenagers. You go out there and look on the Internet and there is so much (information). There are a lot of scams out there and it’s really hard to know what to trust.” The magazine made its debut in October and is mailed to about 4,200 families in the Montgomery area. It will be published six times a year and is just one of four publications her company produces. Mashburn’s company, which has three employees and recently moved into office space off Atlanta Highway across from Walmart, publishes Know the Community, Montgomery Visitor Guide and Selma Visitor Guide. The Montgomery Visitor Guide is for the Montgomery Area Chamber of Commerce’s Convention & Visitor Bureau and unlike most visitor guides is produced twice a year. “We try to make it more seasonal,” Mashburn said. There is a different cover each quarter.

I started filling it. Community publication and a goodies bag with products and coupons. The greeters visit 400 to 500 families a year. “Every time I saw a business need, I started filling it,” said Mashburn, who has engineering degrees from Georgia Tech and Purdue University. The company’s revenue growth has been phenomenal, increasing 500 to 600 percent since its inception in 2006. That growth led Mashburn to seek office space. She needed a site for her graphic designer and some space for the greeters to pick up the goodies for the welcome bags. •

When it comes to Know the Community, it was also a case of one thing leading to

February 2013 Montgomery Business Journal

BusinessBuzz Thomas Ashley Harris

MERCHANT CAPITAL RANKED NO. 1 IN ALABAMA MONTGOMERY – Merchant Capital, LLC, ended 2012 on a high note as the firm was ranked No. 1 among the state’s banking institutions for municipal bond financings. The company ranked 26th nationally with 115 bond issues totaling about $1.6 billion last year, according to Thomson Reuters, an independent New York-based company tracking bond issues nationwide that publishes annual rankings. Merchant Capital was also No. 2 nationally in the multifamily housing finance sector and in 2012 celebrated its 25th anniversary.

The projects financed include municipal issues such as education as well as water and sewer, industrial development and affordable housing.

In addition to its corporate headquarters in Montgomery, Merchant Capital has offices in Atlanta and Seattle.

The Hire Power Awards were scheduled to appear in Inc.’s December/January issue as well as the company’s website: www.inc.com.

“At Merchant Capital, we take pride in growing a company here in Montgomery, which has helped so many across the Southeast attain their goals by assisting in their strategic planning and capital raising processes,” said Thomas Ashley Harris, chairman of Merchant Capital.

ESOLUTION ARCHITECTS RECOGNIZED FOR CREATING JOBS

“The top 100 companies on the list have created 73,032 American jobs in the three-year period from 2008 to 2011 – an amazing feat, given that much of that job growth came during the heart of the recession,” said Inc. editor-in-chief Eric Schurenberg.

“I credit this unique milestone to our long-standing commitment to provide our clients with the best possible outcomes for their financing needs. We are grateful for the confidence they continue to place in our team and we look forward to serving them for the next quarter century.” Merchant Capital, which was founded in 1987, has become one of the Southeast’s leading investment banks in public, project, real estate, housing and corporate finance as well as venture capital. The firm has served as manager or comanager on bond financings totaling more than $37 billion.

Montgomery Business Journal February 2013

NEW YORK – eSolution Architects Inc. was featured in Inc. Magazine’s Hire Power Awards, which ranks the top private business job creators. The Montgomery-based company generated 52 jobs from 2008 to 2011, ranking in the Top 10 in the state for private business job creators. eSolution Architects is a Small Business Administrationcertified company, veteran, minority-owned professional solutions provider with expertise in enterprise architectures, service-oriented architectures, cloud computing, systems and software engineering, system integration, security, enterprise resource planning systems, logistics systems, software development, web and mobile application development and program management.

FIVE POINTS OF LIFE KIDS MARATHON SCHEDULED FOR MARCH 9 MONTGOMERY – Participants in the third annual Five Points of Life Kids Marathon will have the 26.2-mile event March 9 split into small pieces. They will run or walk the final 1.2 miles at the James W. Wilson Jr. YMCA at 1445 Wilson Park Drive. The runners will gather at 8:45 a.m. and the run begins at 9 a.m. “We’re expecting about 300 kids to participate,” said Brite Whitaker, program director for Five Points of Life.

The Five Points of Life Foundation was started by LifeSouth Community Blood Centers as a way to raise awareness of the five ways to share life through the donation of blood, apheresis (platelets), marrow, organ/tissue and cord blood. The run is open to youngsters in kindergarten through eighth grade. All participants receive a T-shirt and receive a medal when they cross the finish line. Registration packets are available at the new LifeSouth donor center and headquarters in Montgomery at 4139 Carmichael Road. Registration is $5 in advance and $10 on the day of the event. Log sheets can be downloaded at www.fivepoints.org. For information, call Melinda Hinds at LifeSouth at (334) 657-0900.

ALABAMA POWER RAMPS UP WIND-GENERATED ENERGY Alabama Power is now receiving energy from the Oklahomabased Chisholm View Wind Project as part of a 2011 power purchase agreement. This energy, along with the approval of a similar agreement with the Buffalo Dunes Wind Project, positions Alabama Power to be a leading purchaser of wind-generated energy in the Southeast by 2014. The agreements allow Alabama Power to provide its customers with cost-effective energy in a region, where weather patterns are much less favorable for wind generation. By 2014, the two projects will produce up to 404 megawatts from wind – enough to power

the equivalent of 115,000 homes. Alabama Power has power purchase agreements and generation facilities producing up to 2,000 megawatts of energy from wind, biomass and hydro generation projects. In another development, Alabama Power received the Edison Electric Institute’s 2012 Emergency Assistance Award for its efforts to help other electric utilities restore power after windstorms hit the Midwest and Middle Atlantic regions in June and after Hurricane Sandy walloped the East Coast in October. The award recognizes extraordinary efforts undertaken in restoring power to another utility company’s customers whose electric service

was disrupted by severe weather conditions or other natural events. WAKA LAUNCHES MEMORABLE ENTERTAINMENT TELEVISION MONTGOMERY – WAKA Television recently launched Memorable Entertainment Television (MeTV) on channel 8.2 and can be found on various local cable systems. MeTV and its format was created to present a wide variety of iconic series, stars and genres including such favorites such as “My Three Sons,” “I Love Lucy,” “The Donna Reed Show” and “The Mary Tyler Moore Show.” For a complete listing of shows, visit: www.metvnetwork.com. The following is a partial listing of (Continued on page 54)

February 2013 Montgomery Business Journal

BUSINESS BUZZ

(CONTINUED FROM PAGE 53)

cable systems and the channel numbers for MeTV: Charter: Channel 138 Knology: Channel 117 Brighthouse: Channel 217 Troy Cable: Channel 201 Com-Link: Channel 823 TV Cable of Andalusia: Channel 92.5 Opp Cable: Channel 101 Demopolis Cable: Channel 82 For information, contact Jesse Grear, vice president/general manager for Alabama Telecasters Inc. at (334) 271-8888. Alabama Telecasters operates WAKA CBS8, WNCF ABC32, WBMM CW Montgomery and the MeTV Network. WARREN AVERETT MERGES WITH ATLANTA, TAMPA FIRMS BIRMINGHAM – Regional certified public accounting firm Warren Averett, LLC, merged with Atlanta-based Gifford, Hillegass & Ingwersen (GH&I) and Tampabased Pender Newkirk & Co. After the merger, which was effective January 1, Warren Averett will have more than 725 employees and serve clients through 14 offices across Alabama, Florida and Georgia, including Warren Averett Wilson in Montgomery. Jim Cunningham serves as CEO of Warren Averett, LLC. Andrew Siegel and Cindy Ethridge will maintain their roles as co-managing members of the Atlanta division, which will operate during a transitional time as Warren Averett GH&I.

Ralph Garcia will continue as managing member of the Tampa division, which will operate during a transitional time as Warren Averett Pender Newkirk.

cook-off and there will be prizes in the following categories:

“This merger strengthens Warren Averett’s presence in the Southeast by joining three successful firms together across Alabama, Florida and Georgia,” Cunningham said. “We are proud to be entering the Atlanta and Tampa markets, joining with premier local firms, and together becoming an accounting force across the Southeast. Our clients are growing and expanding and so are we. The Atlanta and Tampa markets are poised for growth and opportunity which will benefit our clients and our firm.”

“Best in Beef” overall

Steak – first place Hamburger – first place

“People’s Beef Choice” award. Teams are encouraged to sign up online at www.bamabeef.org by clicking on the “COWBOY COOKOFF” logo by Feb. 22. For information, visit the above website or contact Erin Beasley at the Alabama Cattlemen’s Association at ebeasley@ bamabeef.org.

Ted G. Meadows

To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.

The event, which will be at Embassy Suites Montgomery Hotel and Conference Center in downtown Montgomery, will feature dozens of vendors. COWBOY COOK-OFF SET FOR SLE RODEO, EXPOSITION MONTGOMERY – The Alabama Cattlemen’s Association is hosting a “Cowboy Cook-Off” as part of the SLE Rodeo and Exposition festivities. The 56th annual SLE Rodeo and Exposition is scheduled March 9 at Garrett Coliseum and the cookoff is set for 4:30 p.m. through 6:30 p.m. Teams of up to four individuals may compete in the

Montgomery Business Journal February 2013

In addition to selecting the overall “top attorney,” Beasley Allen recognized excellence in each of its sections, naming the Lawyer of the Year in each. Honorees for 2012 are Dana G. Taunton, personal injury section Lawyer of the Year; Larry A. Golston, fraud section Lawyer of the Year; Russ Abney and E. Frank Woodson, mass torts section Lawyer of the Year; and J. Parker Miller, toxic torts section Lawyer of the Year. “We are blessed to have lawyers in our firm who work hard for their clients and who always put their clients’ interest first,” said Jere L. Beasley, the firm’s founding shareholder. “This has to be a priority for all of us.” •

BLUEWATER BROADCASTING PLANS WEDDING EXPO MONTGOMERY – Bluewater Broadcasting is presenting the Montgomery Wedding Expo from 11 a.m. until 5 p.m. February 10.

The annual recognition is presented to the attorney(s) who demonstrates exceptional professional skill throughout the course of the year and best represents the firm’s ideal of “helping those who need it most.”

Benjamin E. Baker

BEASLEY ALLEN NAMES FIRM’S TOP LITIGATORS MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., announced that shareholders Benjamin E. Baker and Ted G. Meadows were selected as the firm’s Litigators of the Year.

New Members AccountingCertified Public SmartBooks Accounting Solutions, LLC Christi Millo 2569 Bell Road Montogmery, AL 36117 334-398-3434

Consulting Services/ Education Human Learning Systems, LLC Benjie Williams 1900 Bouldercrest Road, S.E. Atlanta, GA 30316 404-545-0949

Electric Contractors Dawkins Electric, LLC Keith Dawkins P.O. Box 241381 Montgomery, AL 36124 334-235-2961

Employment Agencies Aerotek, Inc. Michael Byrnside 2876 Zelda Road, Suite B Montgomery, AL 36109 334-409-2700

Hotels/Motels Comfort Suites Vernon Helms 110 Folmar Parkway Montgomery, AL 36105 334-613-9843

RestaurantsMexican

Hilton Garden Inn Carrie White 1600 Interstate Park Drive Montgomery, AL 36109 334-272-2225

Landscaping/Lawn Services HeroMan Services Plant Company Deborah Heroman 1115 Perry Hill Road, Suite D Montgomery, AL 36109 334-264-1800

Legal Services Attorneys

Cucos Mexican Cafeâ&#x20AC;&#x2122; Express Oscar Franco 31 South Court Street Montgomery, AL 36104 334-832-0081

Retirement Communities CaraVita Village Tonya Allen 4000 Fieldcrest Drive Montgomery, AL 36111-3103 334-284-0370

David E. Belser, Attorney at Law David Belser 4122 Wall Street Montgomery, AL 36106 334-270-2882

February 2013 Montgomery Business Journal

Members on the Move Paulk graduated from Auburn University at Montgomery in 2005 with a bachelor’s degree in psychology.

from nationally ranked programs in mental health, marriage and family and college issues. Thomas has been with the Samaritan Counseling Center since 2005 and has served as the center’s clinical director since 2008. Nancy W. Thomas

SAMARITAN CENTER NAMES CO-EXECUTIVE DIRECTORS MONTGOMERY – Nancy W. Thomas and Alice T. Williams have been promoted to coexecutive directors of the Samaritan Counseling Center Inc. Thomas, who graduated with a bachelor’s degree in communications from the University of Alabama, will serve as executive director for clinical services. She has a master’s degree in counselor education from the University of Alabama with a focus in marriage and family therapy. She has significant clinical experience from her internship and subsequent employment at Meadhaven Emotional Health Program at Baptist Health. She was director of counseling at Huntingdon College and has extensive continuing education

Williams, who has been with the Samaritan Counseling Center since 2005, will be the executive director of operations. She most recently was director of operations and development. She has worked and volunteered with non-profit organizations and public agencies for 30-plus years and has served in numerous state and national positions with non-profits. Prior to joining the Samaritan Center, Williams served as development manager of the Alabama National Kidney Foundation and as executive director of the McCraney Cottle Arts Council. She is a graduate of the University of Florida. The Samaritan Counseling Center, founded in 1999, is a non-profit organization that provides professional counseling services and educational programs to people of all economic backgrounds.

Montgomery Business Journal February 2013

Daniel Paulk

REGIONS BANK HIRES BRANCH SALES MANAGER MONTGOMERY – Regions Bank has hired Daniel Paulk to be the branch sales manager at the Jackson Hospital location. Paulk has several years in outside sales experience and most recently worked at New York Life as a financial services professional for three years. He is in charge of the day-to-day operations of the branch and will also be involved in insurance and annuity sales. “We are thrilled to have Daniel join the Regions team,” said Donald Hunter, vice president/ consumer sales manager. “We are sure he will have a very rewarding and exciting career at Regions. He brings exactly what we are looking for to be a very successful branch sales manager.”

Minjae Song

GILPIN GIVHAN WELCOMES ASSOCIATE ATTORNEY MONTGOMERY – Minjae Song has joined the law firm of Gilpin Givhan, P.C., as an associate attorney. Song is an attorney in the firm’s business organizations and transactions, and labor and employment practice groups. He attended Korea University, receiving a bachelor’s degree in law. Song received his J.D. from Emory University School of Law in Atlanta.

experience in the construction and architectural fields. He will oversee the roles of specification development and contract administration. Gray has worked in the Montgomery area for the past 20 years.

Amy Bierly

Donald W. Cioban

RIVER REGION FACIAL PLASTICS HIRES CERTIFIED MEDICAL AESTHETICIAN

BANKTRUST HIRES SENIOR VICE PRESIDENT

MONTGOMERY – River Region Facial Plastics has added a certified medical aesthetician to its staff. Amy Bierly has years of experience in medical spa treatments. She is also certified in a number of different lasers and advanced medical spa procedures, including Ultherapy, a new type of non-surgical, non-invasive treatment that uses ultrasound and the body’s own natural healing process to lift, tone and tighten loose skin.

MONTGOMERY – Donald W. Cioban has joined BankTrust as Senior Vice President Commercial Lender. A veteran banker with more than 40 years of experience, Cioban has served in executive and senior level positions throughout his career. He will assist customers with commercial loans and cash management services. His office is at the Taylor Road branch in Montgomery.

Springna Zhao

EXPERIENCED FINANCIAL ADVISER JOINS STERNE AGEE’S MONTGOMERY OFFICE

THOMPSON INSURANCE ADDS TWO EMPLOYEES MONTGOMERY – Thompson Insurance Inc. expanded its staff with the additions of Doug Aman and Charlie Carper. The two are experienced in the construction insurance industry segment. The firm also announced the association of HRCA (Hines, Rudolphi, Carper, Aman), specializing in the placement and risk management of construction surety bonds and insurance. Thompson Insurance, which was founded in 1963, is an insurance brokerage firm.

“His years of experience and knowledge bring a high level of value to Chambless King in the field of material specifications, construction administration, marketing, project cost and quality control,” said Stephen King, principal of Chambless King Architects.

on high net worth clients in the Montgomery area. “All of us at Sterne Agee are excited to have Springna bring her financial knowledge and expertise to our team,” said Chappell Hill, managing director of Sterne Agee. “Her global experience and wealth management training will blend well with our group of existing financial advisers furthering our focus on providing excellence in customer service.” Zhao received a master’s degree from Auburn University in 2006. After graduation, Zhao served as a consultant for Alabama Governor Bob Riley in international economic affairs. She is a native of the Yunnan Province of China. Zhao received a bachelor’s degree in international relations and English in 2004 from China Foreign Affairs University in Beijing. • To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.

MONTGOMERY – Sterne Agee has named Springna Zhao a vice president of the private client group in Montgomery. Roy Gray

CHAMBLESS KING ANNOUNCES ADDITION MONTGOMERY – The team of architects and interior designers at Chambless King Architects recently announced the addition of Roy Gray. Gray comes to Chambless King with more than 20 years of

Zhao was a global wealth management consultant for Merrill Lynch in Montgomery from 2007 to 2009. She also founded LAN Consulting, LLC, in Montgomery, that consulted with the both U.S. government and private sectors alike to obtain Chinese investments. In 2009, she founded an independent financial planning practice, NEXT Financial Group, which focused

February 2013 Montgomery Business Journal

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

Montgomery Chamber Music Organization, Inc. 744 Cloverdale Road Montgomery, AL 36106 334-263-7610 www.montgomerychambermusic.org Mary Miles-President Entertainment & Recreation

Montgomery Business Journal February 2013

Prime South Bank (Ground Breaking, opening end of summer) 225 Emma Lane Pike Road, AL 36064 334-567-5601 www.primesouthbank.com Todd Motes-Senior Vice President Banks

Nest Egg Properties, LLC 1759 Eastern Boulevard Montgomery, AL 36117 334-207-6368 Millie Knight-Realtor, Broker, Owner Real Estate-Broker

Economic Intel

February 2013 Montgomery Business Journal

Unemployment Data Civilian Labor Force Area

November p 2012

October r 2012

Unemployment Rate

November r 2011

November p 2012

October r 2012

November r 2011

Montgomery MA

168,825

170,150

169,740

6.90%

8.00%

7.90%

Autauga County

25,597

25,740

25,672

6.10%

7.10%

6.90%

Prattville City

16,186

16,328

16,220

5.40%

6.60%

6.10%

Elmore County

35,266

35,538

35,429

6.30%

7.40%

7.20%

4,178

4,227

4,271

12.50%

13.90%

14.90%

103,784

104,645

104,368

7.00%

8.20%

8.10%

93,394

94,191

93,887

6.90%

8.10%

7.90%

523,628

528,724

526,777

6.00%

7.00%

89,162

90,370

90,295

7.90%

9.30%

9.50%

211,169

213,146

212,350

5.70%

6.70%

6.60%

90,686

91,600

91,213

5.70%

6.80%

6.70%

192,087

193,785

191,778

7.50%

8.70%

8.80%

89,621

90,663

89,689

7.80%

9.20%

9.30%

2,164,935

2,182,446

2,176,926

6.70%

7.80%

7.70%

154,953,000

155,779,000

153,683,000

7.40%

7.50%

8.20%

Lowndes County Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2012 benchmark.

Sales Tax Collections

DECEMBER 2012

DECEMBER 2011

YEAR OVER YEAR % CHANGE

Montgomery County

$3,263,055

$3,117,297

4.68%

$39,215,600

$38,062,602

3.03%

City of Montgomery

$7,636,598

$7,055,500

8.24%

$92,398,637

$89,133,815

3.66%

$56,804

$136,363

-58.34%

$1,796,673

$1,660,906

8.17%

$595,507

$570,213

4.44%

$7,374,237

$7,049,456

4.61%

$1,626,469

$1,584,453

2.65%

$19,245,260

$16,988,304

13.29%

Elmore County

$843,530

$399,355

111.22%

$7,592,456

$5,073,012

49.66%

Wetumpka

$478,327

$457,776

4.49%

$5,356,595

$5,412,477

-1.03%

Pike Road Autauga County Prattville

YTD 2012

YTD 2011

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 2012 thru current month. * Did not receive this months numbers.

Montgomery Business Journal February 2013

YEAR OVER YEAR % CHANGE

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

DESTINATION

MONTGOMERY

BIRMINGHAM

ATLANTA

Baltimore (BWI)

$340

$285

$236

Boston (BOS)

$344

$294

$275

Charlotte, NC (CLT)

$185

$175

$141

Chicago (ORD)

$299

$238

$220

Cincinnati (CVG)

$353

$356

$252

Dallas/Ft Worth (QDF)

$399

$330

$148

Denver (DEN)

$428

$342

$269

Detroit (DTW)

$372

$353

$270

Houston (HOU)

$384

$334

$275

Indianapolis (IND)

$305

$261

$160

Las Vegas (LAS)

$509

$447

$399

Los Angeles (LAX)

$441

$457

$335

Memphis (MEM)

$429

$490

$209

Miami (MIA)

$401

$307

$235

Nashville (BNA)

$380

$190

$322

New Orleans (MSY)

$346

$236

$243

New York (JFK)

$332

$298

$236

Orlando (MCO)

$309

$219

$201

Philadelphia (PHL)

$377

$220

$299

Pittsburgh (PIT)

$360

$345

$267

St Louis (STL)

$260

$199

N/A

Seattle (SEA)

$437

$455

$350

$1,464

$1,232

$1,296

$334

$208

$232

Seoul, Korea (SEL) Tampa (TPA) Washington DC (DCA)

$361

Date of travel: Feb. 19-24, 2013. Date of pricing: Jan. 13, 2013. Source: travelocity.comâ&#x20AC;?

$200

$291

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FEXV -$1 0E [ 3+ LQGG February

$0 2013 Montgomery Business Journal 61

Montgomery Metro Market Home Sales NOVEMBER 2012

OCTOBER 2012

MONTH/MONTH % CHANGE

NOVEMBER 2011

YEAR/YEAR % CHANGE

STATEWIDE NOVEMBER 2012

Median Price

$123,000

$131,950

-6.78%

$132,000

-6.82%

$120,164

Average Price

$144,966

$155,153

-6.57%

$141,469

2.47%

$144,652

Units Listed

2,691

2,779

-3.17%

2,768

-2.78%

32,226

Months of Supply

11.9

10.1

17.82%

13.1

-9.16%

10.9

Total # Sales

226

276

-18.12%

211

7.11%

2,968

Days on Market

1.04%

3.19%

145

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

Montgomery Regional Airport DECEMBER 2012

DECEMBER 2011

Year over Year % Change

YTD 2012

YTD 2011

Year over Year % Change

827

938

-11.8%

11,652

11,795

-1.2%

Total Operations

4,276

4,377

-2.3%

64,578

62,493

3.3%

Enplanements

14,132

14,700

-3.9%

181,997

184,485

-1.3%

Deplanements

15,004

14,320

4.8%

183,737

183,032

0.4%

Total Passengers

29,136

29,020

0.4%

365,734

367,591

-0.5%

Air Carrier Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

Quarterly Reports NAME

QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

Pier 1 Imports

$424.5M

$23.7M

$0.22

$0.24

$382.7M

$23M

Revenue increased 11%

$23.2B

$416M

$0.95

$0.93

$21.2B

$320M

Profit surged 30%

$4B

$207.7M

$0.62

$0.60

$3.6B

$171.2M

Plans to open 625 stores in fiscal 2013

$2B

$33.6M

$0.26

$0.27

$1.8B

$453.7M

Profit tumbled 37%

Bed, Bath & Beyond

$2.7B

$232.8M

$1.03

$1.02

$2.3B

$228.5M

Revenue rose 15%

Rite Aid

$6.2B

$60.5M

$0.07

(-$0.03)

$6.3B

(-$54.5M)

First quarterly profit since 2007

Walgreen

$17.3B

$413M

$0.43

$0.70

$18.2B

$554M

Profit fell nearly 26%

Sonic

$126M

$6.1M

$0.11

$128.3M

$5.5M

Sales at drive-ins open at least 1 year up 3%

Family Dollar

$2.4B

$80.3M

$0.69

$0.75

$2.2B

$80.4M

Sales increased 12.7%

Wells Fargo

$21.9B

$5.1B

$0.91

$0.89

$20.6B

$4.1B

Costco Wholesale Dollar General Darden Restaurants (Olive Garden, Red Lobster, LongHorn Steakhouse)

Montgomery Business Journal February 2013

NOTABLE

Profit jumped 24%

Hyundai Sales VEHICLE

DEC 2012

DEC 2011

YTD 2012

YTD 2011

Accent

2,933

5,316

61,004

55,601

Sonata

20,826

17,340

230,605

225,961

Elantra

19,024

13,025

202,034

186,361

7,279

5,082

71,016

74,391

847

8,431

1,524

Tucson

3,745

4,458

48,878

47,232

Veloster

1,976

2,188

34,862

9,284

543

8,232

9,146

2,397

2,470

33,973

32,998

350

325

3,972

3,193

59,435

50,765

703,007

645,691

Santa Fe Azera

Veracruz Genesis Equus Total

Source: Hyundai Motor America

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ŽŶƚĂĐƚ ƵƐ ĨŽƌ ŵŽƌĞ ŝŶĨŽƌŵĂƚŝŽŶ Žƌ ƚŽ ƌĞĐĞŝǀĞ Ă ŶŽ ĐŽƐƚ͕ ŶŽ ŽďůŝŐĂƚŝŽŶ ŚĂƌƚĞƌ ,Z ^ŽůƵƚŝŽŶ͘

tĞ ĐĂŶ ŚĞůƉ ǇŽƵ ǁŝƚŚ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ŶĞǁ ŚĞĂůƚŚĐĂƌĞ ƌĞŐƵůĂƚŝŽŶƐ͘

ϳϱϱ >ĞĞ ^ƚƌĞĞƚ͕ ^ƵŝƚĞ ůĞǆĂŶĚĞƌ ŝƚǇ͕ > ϯϱϬϭϬ ϴϱϱͲϮϯϰͲϲϮϯϰ ŝŶĨŽΛŵǇĐŚĂƌƚĞƌŚƌ͘ĐŽŵ ǁǁǁ͘ŵǇĐŚĂƌƚĞƌŚƌ͘ĐŽŵ February 2013 Montgomery Business Journal

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