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

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Dawn Casey

Norman Azar Paul Corwin

Frank Potts

Carter Burwell Neal Berney

Mickey Griffin

Amy Knudsen

David Potts Scott Harris

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Chairman’s Column

7 Calendar

May 2011

Contents

Montgomery Housing Authority

Economic Update

I-85 Extension

Hyundai Breaks Sales Records

Hot Rod Power Tour

Guest Commentary with Les Massey

Transforming Montgomery: Q&A with Chamber Chairman-elect Kenny Coleman

Garrett Coliseum Update

Member Profile: LWT Communications

Alabama Business Confidence Index

Business Buzz

Members on the Move

Ribbon Cuttings & Ground Breakings

New Members

Economic Intel

May 2011 Montgomery Business Journal

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Randall L. George Executive Editor

Tina McManama Managing Editor

David Zaslawsky Copy Editor

Brooke Thorington Design

Copperwing Design Photography

Robert Fouts On the cover:

Kenny Coleman is vice president of the Southern Division for Alabama Power Company and chairman-elect of the Montgomery Area Chamber of Commerce Board of Directors. Advertising:

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Montgomery Business Journal May 2011

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) And in the bottom paragraphs, insert â&#x20AC;¦is published monthly except for the combined issues of June/July and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 3, Issue 5. 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.

WVAS is my source for information, news and jazz music - Rep. Joseph Mitchell, Alabama House of Representatives & Jazz Musician

www.wvasfm.org

WVAS helps me as a legislator because the news and information series keeps me informed. It includes a lot of information that helps me keep my consituents informed. I donâ&#x20AC;&#x2122;t get that information through other public radio stations. But WVAS provides a specific type of information, apparently on the basis of the clientele that it so values. May 2011 Montgomery Business Journal

Chairman’s Column This year is the fifth, and last year of the Chamber’s Imagine a Greater Montgomery strategic plan. As we celebrate the progress we have made so far, we are also building on that foundation as we develop the Imagine a Greater Montgomery II strategy. This issue’s cover story is a Q&A with Kenny Coleman, vice president of the Southern Region for Alabama Power, and the chairman of the Chamber’s Imagine a Greater Montgomery II steering committee. In Kenny’s Q&A, he shares the process and the preliminary goals for the Chamber’s strategic plan for 2012-2017. The Imagine a Greater Montgomery II steering committee consists of 50 community, business and elected leaders. Many went to Austin, Texas last fall to see how “Opportunity Austin” is succeeding because the entire community is focused on the same goals. Meetings, conversations and surveys with diverse community stakeholders have all shaped this new community strategy. The Chamber is leading the charge on developing the next fiveyear plan, but as with the first Imagine a Greater Montgomery, the entire community needs to focus on the same goals and be a part of the progress. I invite you to invest in the future success of the River Region. Many opportunities are available for you to make a difference; volunteering, participating in the Total Resource Campaign (TRC) in the fall, and joining the Sustaining Founders Council. Be a part of making where we all live, work and raise our families a much better place.

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

Montgomery Business Journal May 2011

Calendar Montgomery Area Chamber of Commerce Events

MAY 2

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

ALABAMA UPDATE Presenting Sponsor: Wilson Price IT 11:30 AM @ Embassy Suites Montgomery Hotel and Conference Center, 300 Tallapoosa Street, Montgomery Chamber Members: $30, Nonmembers: $40 Corporate Table: $575 Registration: www.montgomerychamber.com/ALupdate

CHAMBER OPEN 11 AM @ Robert Trent Jones Golf Trail at Capitol Hill 2600 Constitution Avenue, Prattville, Chamber Member: $155/player, Nonmember: $175/player, Registration: www.montgomerychamber.com/open

AIDT Leadership Skills Course 8 AM @ Small Business Resource Center 600 South Court Street, Montgomery Two-day course, $25 per person Information & registration: www.montgomerychamber.com/aidt

60 MINUTE COFFEE Sponsored by Alabama Artificial Limb & Orthopedic Service 8 AM @ Faulkner University, Bible Building, 5345 Atlanta Hwy, Montgomery, Free event, exclusively for Chamber Members

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

BUSINESS AFTER HOURS Sponsored by WVAS-FM Radio 5 PM @ Union Station, 300 Water Street, Montgomery Free event, exclusively for Chamber Members

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

May 5/9-5/14

5/12-5/15 5/15-5/19

JUNE 6

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

60 MINUTE COFFEE Sponsored by Brantwood Children’s Home 8 AM @ Brantwood Children’s Home 1309 Upper Wetumpka Road, Montgomery Free event, exclusively for Chamber Members

MILITARY SALUTE AT RIVERWALK STADIUM Presenting Sponsor: ITT Systems Division 7 PM @ Riverwalk Stadium, 200 Coosa Street, Montgomery

CHAMBER ORIENTATION Presenting Sponsor: Heartsill Payroll 8 AM @ Montgomery Area Chamber of Commerce 41 Commerce Street Free. Reservations required. Details at www.montgomerychamber.com/orientation

CEO ROUNDTABLE BREAKFAST Presenting Sponsor: Copperwing Design 7:30 AM @ Small Business Resource Center 600 South Court Street Free event registration requested www.montgomerychamber.com/ceo

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

MILITARY FAMILY APPRECIATION DAY AT THE ZOO Presenting Sponsor: Dreamland Bar-B-Que 11:00 AM @ Montgomery Zoo 2301 Coliseum Parkway, Montgomery Free with military identification

BUSINESS AFTER HOURS Sponsored by Virginia College 5 PM @ Virginia College 6200 Atlanta Highway, Montgomery Free event, exclusively for Chamber Members

June Alabama Dept. of Rehabilitation Services Meeting State Rotary Conference AFCEA Technology Conference

6/5-6/11

Alabama School Transportation Association Conference 6/5-6/8 Alabama-West Florida Annual Conference 6/5-6/10 Alabama State FFA Convention 6/18-6/20 Southeastern Association of Fire Chiefs Leadership Conference 6/19-6/22 Council for Leaders in Alabama Schools Annual Meeting

May 2011 Montgomery Business Journal

Montgomery Housing Authority Pumps Millions into Local Economy Ambitious $200 million plan transforming properties photo by Robert Fouts

Evette Hester is executive director of the Montgomery Housing Authority.

Montgomery Business Journal May 2011

ÂŠ Fouts Commercial Photography

by David Zaslawsky

That physical inventory includes the following communities: Gibbs Village West and East, Smiley Court, Cleveland Court, Trenholm Court, Richardson Terrace, Paterson Court and Tulane Gardens. It is fitting that the Montgomery Housing Authority has moved its district office from Maxwell Boulevard to South Lawrence Street in downtown Montgomery. After all the agency, is transforming its properties into modern apartment communities complete with all the amenities one expects. The move consolidates four buildings into one and places the agency in an advantageous location. Some of those office buildings were converted public housing units. “There was a need to find suitable office space and we located a building that is centrally located in the business district,” said Evette Hester, executive director of the Montgomery Housing Authority. “We wanted to anchor ourselves in the downtown business district, which is easily accessible to all the people that we serve.” The agency, which has 69 employees, owns the new building after renting its previous location from the City of Montgomery, which has long-range plans for the property, Hester said. “People don’t realize what a major contribution the housing authority has in the broader community – the amount of resources that are injected into the local economy,” Hester said. The Montgomery Housing Authority has an estimated annual economic impact of $50 million, according to Hester. She said the economic impact is derived from the public housing and housing choice voucher (Section 8) programs as well as capital funds, “which allow us to improve our physical inventory.”

Take a closer look at the agency’s economic impact and you’ll find there are 1,000 landlords in the housing programs. “These landlords pay bills with the funding we give them,” Hester said. “We have over 2,600 families now in the housing choice voucher program. We pay utilities for those families.” Hester pointed out that the agency pays for electricians, carpenters, landscapers, pest control people, construction workers, designers, engineers – hundreds of people involved in all the housing authority’s projects. And those projects combined have an estimated price tag of $173.9 million. The projects range from cosmetic improvements to some properties to what Hester called “gut rehab” to demolition and rebuilding.

redevelop, to acquire and to reposition this agency so that it can better serve the need of the community. “We are repositioning the housing authority and its inventory so that it will become not just a premiere affordable housing provider, but building sustainable communities that will withstand time,” Hester said, “and quality communities that offer the amenities that many of us enjoy in the private sector.” Those amenities, which in most did not exist in the apartment units before, include garbage disposals, dishwashers, refrigerators with icemakers, more storage space, energyefficient heating and air conditioning. The housing authority is looking to attract more families to its properties. Hester said

“People don’t realize what a major contribution the housing authority has in the broader community – the amount of resources that are injected into the local economy,” - Evette Hester, executive director of the Montgomery Housing Authority

Tulane Court was demolished and a new project will be built on the same site. Trenholm Court will be demolished and rebuilt. The site for a new Trenholm Court will be determined during the master planning process, Hester said. “When you combine Tulane Court, Trenholm Court, Richardson Terrace, Cleveland Court and the renovations and redevelopment activities – that probably comes to a lot higher number than that,” Hester said, estimating the cost closer to $200 million.

the renovations at Richardson Terrace we designed to “bring it up to standards that will make the property competitive with any other apartment community in the broader market. We’re hoping to broaden our market and get a cross-section of the Montgomery community.” •

It is also being spread out over the next five to seven years, Hester said. “As we evolve and continue to serve and improve our housing stock there will be plenty of opportunities to May 2011 Montgomery Business Journal

Housing authority projects by David Zaslawsky The following is a look at the Montgomery Housing Authority projects: Richardson Terrace The renovation is about 75 percent completed, said Montgomery Housing Authority Executive Director Evette Hester. The apartment community, which underwent a complete makeover inside and outside, will house 92 families and is for seniors ages 62-and-above. Parking spaces were moved from the front of the building to a side and the rear to improve curb appeal and they are now covered. Even the outside community space has been updated, including an indoor/outdoor area for residents to relax and socialize. The project is expected to be completed by the end of September.

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Tulane Court This 300-unit property was demolished and will be rebuilt in three phases, according to Hester. There will be both affordable housing and mixed-income housing. The first two phases will each consist of 126 units. Hester said there is a possibility of a home ownership phase – 30 to 40 homes - depending on market conditions. The housing authority and the City of Montgomery are each investing $5 million in the first phase. Hester said another $10 million needs to be raised for the $20 million first phase. That money will come from a combination of low-income housing tax credits and a developer. That process will be repeated for the second phase. If the financing is secured, Hester said construction could start early next year and would take about 18 months. Cleveland Court The housing authority is starting to plan renovations. The 150-unit property is where Rosa Parks lived and there is a historical marker in front of the unit. Hester said the property will be brought “up to modern standards and offering amenities through a comprehensive renovation.” The agency hoped to have an architect soon and then will be working on financing the project. Trenholm Court This property will be demolished after the 90-plus families living there are relocated. Hester said it typically takes three to four months to relocate the residents and demolition could start about six months after the last family has moved out. Gibbs Village Heating and air conditioning systems have been upgraded. Smiley Court Thirty to 40 apartments have been renovated. •

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Montgomery Business Journal May 2011

May 2011 Montgomery Business Journal

The Perfect Hook Montgomery has the right tools for economic development by David Zaslawsky

Unlike heavily populated states or cities, smaller communities need a hook to attract people. “You have to make the critical investment in the critical infrastructure that gives you what I call the hook,” said Keivan Deravi, special assistant to the chancellor/economic affairs at Auburn University at Montgomery (AUM). “Economic development requires two to four hooks and Montgomery has the perfect hook,” Deravi told the Montgomery Area Chamber of Commerce’s Minority Business Development Task Force community forum.

Keivan Deravi, special assistant to the chancellor/economic affairs at Auburn University at Montgomery.

He said one of Montgomery’s hooks is access to Interstate 65 and Interstate 85 and the city is centrally located in the state. “We have the perfect location,” he said. Another hook was what used to be recession-proof and provided the region with what Deravi called “enormous amounts of stability,” referring to state government and federal government, which features Maxwell Air Force Base and Gunter Annex. The region has benefited greatly from Montgomery being a state capital because “politicians will spend money whether there is a depression or a recession,” according to Deravi. “The lawmakers need to eat and drink and have meetings and there has to be some media to cover them and lobbyists.” Deravi, who teaches an economics course at AUM, said that Montgomery’s third hook “is the presence of an institution of higher education that can feed the businesses. We have a major, major tier one university 45 miles away – Auburn University.” He said that Auburn University “has huge research facilities that businesses can connect to and create a laboratory for a lot of folks.” Closer to home, there are a handful of colleges and universities: Alabama State University, Huntingdon College, Faulkner University, AUM and Troy University’s Montgomery campus.

Montgomery Business Journal May 2011

“We have a critical mass of universities here and if they all come together we can really be a force,” Deravi said. “We need to figure out what we can do for the kids and that’s partially our fault. We have to get out of our cocoons.” He said that Montgomery “is perfectly situated because of the hooks that we have in order to elevate ourselves.” There are, however challenges, which he said includes improving the Montgomery Public Schools system. He complimented the district’s magnet schools, but said there is too big of a difference between magnet schools and non-magnet schools. He warned his audience about a subpar housing market and cuts in state government budgets, which “is a major problem for us in Montgomery because we rely enormously on state government,” Deravi said. He told the forum participants to be as tech savvy as possible. “If you’re not with technology – you’re not in the game. You don’t understand the magnitude of technology. “This is a different game. This is a different environment. You must learn the new technology or technology will overwhelm you. I think at universities we are struggling to understand how to use technology.” He said that Montgomery businesses are not competing with Prattville. “You are competing with – not Arkansas, not Mississippi – but with China; we’re competing with Malaysia; we’re competing with Indonesia; we’re competing with Mexico. That’s the bigger fight you have to concentrate on.”•

Representative Joe Hubbard 73rd District, Montgomery

“My roots run deep in Montgomery. My family has been here for seven generations, and I’ve realized my dream to return to Montgomery to build a family and future. As a member of the Alabama House of Representatives, I can give back to a city that has given me so much opportunity, and help make sure that our future generations have endless possibilities. For me, Montgomery is the Capital of Dreams. Make it the city for your success.”

d r e a m m o n t g o m e r y. c o m

May 2011 Montgomery Business Journal

Officials Applaud First Phase of I-85 Extension by David Zaslawsky

The eventual completion of the Interstate 85 extension is all about commerce and economic development. Hyundai Motor Manufacturing Alabama’s plant in Montgomery delivers engines to the Kia Motors Manufacturing Georgia facility in West Point. That’s trucks making 11 daily round-way trips of 216 miles and traveling through downtown Montgomery. The proposed I-85 extension, which would connect Interstate 65 in South Montgomery to Interstate 85 near the Waugh exit would benefit HMMA by using a less congested Interstate 85. Traveling on less congested roadways can save time and money. Now add other Kia suppliers located off Interstate 65 such as MOBIS Alabama into the equation and the reduction of transportation costs is greatly magnified. What about other manufacturers located in industrial parks off of Interstate 65 which truck products along Interstate 85? A completed Interstate 85 extension will reduce transportation costs for local

This map shows the I-85 Extension around Montgomery.

businesses moving goods along the 650-plus mile Interstate 85 that goes through Georgia, South Carolina, North Carolina before ending in Petersburg, Va., as well as other interchanges and interstates. “The I-85 extension is not as much about retail as it is commercial and manufacturing,” Montgomery Mayor Todd Strange said. “Anytime you can be along an interstate like that and have that instant access, it’s going to open up

industrial parks, manufacturing parks and high-tech parks. There will be some retail around the exits, but there won’t be a lot of exits between I-85 and I-65.” Pike Road Mayor Gordon Stone said the I-85 extension “will benefit a great majority of Pike Road residents to get east and ease their access to the downtown area.” He said Pike Road “probably has 2,000 houses right there that can enter into the interstate traffic.” Stone said the I-85 extension would hit just east of Pike Road’s Town Hall. Although it may be years before the I-85 extension connects Interstate 85 and Interstate 65, the first phase is beginning

Montgomery Business Journal May 2011

and will be completed in two to three years. That first phase, called the Montgomery Outer Loop, may seem like a baby step â&#x20AC;&#x201C; a 3.4-mile section to connect Vaughn Road to Interstate 85. But the overall project is not small - $150 million with 80 percent of the funding coming from the federal government and the remaining 20 percent from the state. Another $120 million will be spent on a nine-mile project extending Vaughn Road to Carter Hill Road and Carter Hill Road to US 231. The first phase is tentatively scheduled to start in late summer, according to John Cooper, director of transportation for the State of Alabama. He said the department expected to be taking bids by late May or sooner. That first phase is several projects, which include completing some old work. The first new projects will add lanes and ramps on I-85. An auxiliary lane will be added to I-85 between the new ramps and the Waugh interchange, according to Tony Harris, government relations manager and bureau chief, media and community relations for the Alabama Department of Transportation. There will also be some slight re-alignments at the existing ramp locations for the Waugh interchange. Cooper said work on the first phase â&#x20AC;&#x153;will provide tangible progress while we continue the required federal studies to (allow) preliminary engineering and right-of-way acquisition west of Interstate 65. It gives us momentum to continue building east and west in areas where we relieve congestion first and hopefully sustain our momentum.â&#x20AC;? The project to connect Interstate 85 with Interstate 65 is currently estimated at $500 million the Alabama Department of Transportation has a completion goal of 2022, but is contingent on federal funding.

CONTINUED ON PAGE 16

Itâ&#x20AC;&#x2122;s going to be great for the City of Montgomery. Everybody in the state will benefit. -Reed Ingram, Montgomery County Commission Chairman

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May 2011 Montgomery Business Journal

CONTINUED FROM PAGE 15

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Extending Interstate 85 all the way to Interstate 20/59 near the Mississippi state would cost $2.4 billion in today’s dollars for the 126 mile-project. There could be up to 27 interchanges, according to Harris. The Montgomery Outer Loop was announced with all the fanfare expected of a project long sought by local officials for the past two decades. “This will alleviate traffic congestion on I-65 and I-85 through Montgomery, making the daily commute easier for tens of thousands while at the same time reducing the amount of truck traffic through downtown and making our area more attractive to potential employers,” Montgomery County Commission Chairman Elton N. Dean said in a statement. The announcement at the boardroom at the Montgomery Area Chamber of Commerce was also hailed as a major economic development project. Cooper said that the Federal Highway Administration’s guidelines are for every $1 billion spent on a transportation project – 35,000 to 40,000 jobs are created. For the Outer Loop, that means 3,500 to 4,000 jobs. “Don’t forget about the impact it will have on driving other projects that can be relocated that would now have access around Montgomery and through Montgomery,” Strange said. Montgomery County Commission Vice Chairman Reed Ingram said, “It’s (Outer Loop) going to be great for our lodging. It’s going to be great for EastChase. It’s going to be great for the town of Pike Road. It’s going to be great for the City of Montgomery. Everybody in the state will benefit.”

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Montgomery Business Journal May 2011

Strange agreed: “Does it help the Pike Road area? Certainly. Does it help the southern part of Montgomery County? Certainly. Does it help the City of Montgomery, Prattville and Wetumpka? It absolutely does. It helps all of us.” •

Hyundai Breaks Monthly Sales Mark by David Zaslawsky

Hyundai’s top months

March 2011: 61,873 Aug 2009: 60,467 July 2010: 54,106 Aug 2010: 53,603 June 2010: 51,205 June 2008: 50,033 June 2007: 49,368 May 2010: 49,045 July 2006: 47,205 Sept 2010: 46,556 Dec 2007: 46,487

It was a short decade ago that Hyundai, which had six different models at the time, sold 27,715 vehicles in March.

breakthrough 40-mpg 2011 Elantra, we are poised to sustain our momentum into the strong spring selling season.”

Fast forward to August 2009 when the federal government launched the Cash for Clunkers program to spark the sagging new vehicle sales because of the Great Recession. That month, Hyundai sold a monthly record of 60,467 new vehicles. It was the first time the Korean automaker had sold 60,000-ormore vehicles in a single month.

Here are some of the sales highlights:

Let’s get more current. In March 2011, the company set an all-time monthly record of 61,873 new vehicles sold, but this time there was no Cash for Clunkers program artificially swelling the numbers. “March was an unbelievably strong month for Hyundai,” Dave Zuchowski, executive vice president of national sales for Hyundai Motor America, said in a statement. “With our overall supply of fuel-efficient vehicles improving and the recent launch of our

> The March 2011 sales were up 32 percent compared with the same month last year. > Total first-quarter sales are up 28 percent over the same period last year. It is the company’s best first quarter with 142,620 units. > The company’s top two selling vehicles for March 2011 were Sonata and Elantra, which are both produced at the Hyundai Motor Manufacturing Alabama (HMMA) facility in Montgomery. “The Hyundai brand is riding the rebound wave of auto sales,” said Robert Burns, manager of public relations for HMMA. “Total sales are up 28 percent over last year and the Montgomery-built Sonata and Elantra have accounted for 68 percent of Hyundai’s sales. CONTINUED ON PAGE 18

May 2011 Montgomery Business Journal

Elantra’s top months

Aug 2009: 21,673 March 2011: 19,255 July 2010: 18,215 Aug 2010: 15,181 June 2008: 14,482 June 2010: 14,245 Aug 2002: 13,731 May 2008: 13,645 July 2009: 13,616 Aug 2003: 13,265 Sonata’s top months

Dec 2007: 24,872 March 2011: 22,894 Aug 2010: 21,399 May 2010: 21,195 Dec 2005: 20,853 Sept 2010: 20,639 March 2010: 18,935 April 2010: 18,536 July 2010: 17,836 June 2010: 17,771

CONTINUED FROM PAGE 17

Rising fuel costs are influencing consumer’s automotive buying decisions and both of HMMA’s vehicles offer more than 35-mpg EPA fuel economy on the highway. Plus, the Hyundai brand has introduced several new vehicle designs in the last 18 months that have been a huge hit with the automotive press and car buyers.” Sales for the Sonata and Elantra increased a combined 55 percent over March of 2010. Both vehicles had their second-best monthly total ever. There were 22,894 Sonatas sold in March and 19,225 Elantras. “Of course, the combined strong sales of the Sonata and Elantra bode well for HMMA’s team members who will be focusing on building the safest and highest-quality cars,” Burns said. “They understand the importance of using the sales momentum to build brand loyalty for the long-term success of Hyundai at its premier manufacturing facility in Montgomery.” The 2011 Elantra is a newly redesigned model, but 2011 Sonata has been around for a year and still sales are surging – 51,878 units sold

this year compared with 31,747 during the same period last year. That’s a whopping increase of 63 percent and is on pace for a record-setting 200,000-plus units for the year. “It is exciting to see the momentum for the Sonata not tail off one year after its launch in the U.S. market,” Burns said. “Sonata sales are up 67 percent through March 2011 and we are very confident annual sales will reach 200,000 units.” Although it is early in the year, Hyundai is on pace to break its annual sales record of 538,228 units in 2010. If the sales volume continues, Hyundai could sell 570,000 or more units this year. Hyundai Motor America President and CEO John Krafcik said in a statement, “It’s simple. American car buyers want to put great-looking cars that get great fuel economy in their driveways and the 35-mpg Sonata and 40-mpg Elantra deliver both in spade.” Overall in March, 1.25 million new vehicles were sold, a 17 percent increase from the same period a year ago. The projected annual sales are 13.1 million units. •

Overall in March, 1.25 million new vehicles were sold, a 17 percent increase from the same period a year ago.

Montgomery Business Journal May 2011

HMMA builds record number of vehicles When you manufacture the company’s top two selling vehicles, you can expect to set production records. That’s what is happening at Hyundai Motor Manufacturing Alabama’s (HHMA) facility in Montgomery with the production of the Sonata and Elantra. The manufacturing plant built a monthly record of 31,730 vehicles in March, the same month the Korean automaker set an all-time monthly sales record of 61,873. The previous monthly production record at HMMA was 31,500 vehicles in June 2010. The 2011 first-quarter production total of 86,276 units – is an increase of 25 percent for the same quarter in 2010 when the company built 68,820 units.

Last year, HMMA was building twice as many Sonatas as Santa Fes, one of the automaker’s sports utility vehicles. For the most part, production of the Santa Fe ended in July with almost 10,000 vehicles manufactured. There were 31 Santa Fes manufactured in August and then production shifted to the Kia plant in West Point, Georgia. The first Elantras were manufactured last September in Montgomery. Production ramped up in November (8,270 units) and December (11,329 units). Nearly 13,000 Elantras were manufactured in March along with almost 18,800 Sonatas. - David Zaslawsky

Hyundai Motor Manufacturing Alabama 2011 PRODUCTION

Sonata Usa

January 2011

February 2011

March 2011

2011 Sonata Total

17,159

17,448

17,217

51,824

Guam Puerto Rico Canada

100

168

338

1,253

1,144

1,495

3,892

Total

56,054

Elantra January 2011

February 2011

5,641

6,430

9,475

21,546

Guam

Puerto Rico

2,393

2,810

3,473

8,676

USA

Canada

March 2011

Total

Grand Total

2011 Sonata Total

30,222

26,546

28,000

31,730

86,276

May 2011 Montgomery Business Journal

Hot Rod Power Tour Coming to Montgomery Dream comes true for car aficionados by David Zaslawsky

Economic development takes on many shapes in many places. This time, economic development was in the shape of about a dozen performance cars from the 1950s, 1960s and 1970s. The vintage vehicles were parked outside the Montgomery Area Visitor Center and created quite a backdrop for the announcement of Hot Rod magazine’s 17th annual Hot Rod Power Tour, which is coming to Montgomery. That stop on the seven-day, seven-city tour means 3,000-plus vehicles will be on display for a day – June 6 – at Montgomery Motorsports Park.

It also means about 1,000 room nights in the area, according to Dawn Hathcock, vice president, Montgomery Area Chamber of Commerce Convention & Visitor Bureau. The one-day event will have an estimated $1.2 million economic impact and to add emphasis to the significance of the tour stop, Montgomery Mayor Todd Strange repeated that $1.2 million figure. Hathcock said the Hot Rod Power Tour stop in Montgomery could draw anywhere from 7,000 to 10,000 people. “You know they are going to buy,” Strange said. “You know they are going to eat in our restaurants; and you know some of them will stay in our hotels. We are all about sports and we are all about economic development.”

The Hot Rod Power Tour, which is presented by GM Performance Division, is scheduled to start June 4 in Cocoa Beach, Fla., and then move to Valdosta, Ga., the next day before stopping in Montgomery. After the Montgomery stop, the tour travels to Nashville, Tenn., and Indianapolis before concluding in Detroit.

Montgomery Mayor Todd Strange announced that the Hot Rod Power Tour is coming to Montgomery.

“We are grateful to you for helping spur our economy,” Strange said to Hot Rod magazine publisher Jerry Pitt. “We will throw out the red carpet. We will do everything we can to make it exciting.” There is no admission charge to gaze at 3,000-plus cars – a huge variety of hot rods, street rods, custom trucks, muscle cars, sport compacts and street machines. The cars will be on display from noon to 7:30 p.m. In addition to the car show, automotive and aftermarket manufacturers will have booths and displays. Pitt said the tour is coming to Montgomery because of the support from the Convention & Visitor Bureau and the City of Montgomery. Hot Rod magazine will be bringing its own television crew to film its weekly show on the Speed Channel Cable Network. Pitt said about 275,000 people watch that weekly show, which will give Montgomery national exposure as will the media from outside the River Region covering the event.

Montgomery Area Chamber of Commerce Chairman Larry Puckett, who also is president of Larry Puckett Chevrolet in Prattville, thanked Pitt for bringing the tour to Montgomery. “I think you’ll find this a warm and friendly place to be. I think you will be glad you came to the City of Montgomery.”

“What’s really great about hot rods and our brand is that we bring the passion of the magazine and the passion of performance cars to life,” Pitt said. “The people go on tour not only to show their cars and be with friends, but come out and see the local sites.” The seven-day event is expected to attract 4,500-plus cars and more than 69,000 spectators. Pitt said that about 1,400 cars with 2,300 people completed the tour from start to finish. He said one-third of the participants will travel to one to three stops along the tour and about one-third will be from local car clubs.

By the way, Strange is also a car guy from his days as serving as president, CEO and coowner of Blount Strange Automotive Group. •

Three local car clubs were represented at the news conference to announce the Hot Rod Power Tour: GM High Performance Club, Mustang Tri-County Club and the Capital City Street Rod Association.

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Guest Commentary

Whitfield Foods faces broad array of challenges Taxes, work force development, commodity prices are key issues by Les Massey

Whitfield Foods, Inc., now celebrating its 105th year, has always faced challenges… many of the same challenges that face other small manufacturing concerns, and some that are unique.

Les Massey is president and CEO of Whitfield Foods Inc.

Embracing Change. Over the decades, our challenge has been embracing change. Founded in 1906 as the Alabama-Georgia (Alaga) Syrup Company, it added Whitfield Pickles in the 1920’s. In the late 1970’s, the pickle company was divested, and the company began what is now it’s lifeblood, contract manufacturing. Whitfield produces non-carbonated beverages for some of the largest food and beverage companies in the nation, which presents significant challenges in itself. Trying to foresee the future is necessary for survival. Operating in a Regulated Environment. As a food producer, Whitfield is subject to rigorous annual audits by each customer, compliance testing, American Institute of Banking audits, periodic Health Department inspections, oversight by an onslaught of government agencies, including the FDA, OSHA, ADEM, and EPA. We work year long to ensure compliance in all of these areas. For the most part Whitfield has control over these challenges but we must work hard to comply.

Access to Capital. Our business is extremely capital intensive and over the years technology has dictated that we invest heavily into our production lines. Our challenge is to be cognizant of the ever changing needs of our customers and provide them with the highly technical services that they require at an efficient cost. While the challenges described above are somewhat within our control, many of the daily challenges are not. Many of these issues involve local, state and federal government at some level, as outlined below: Workforce Development. Education rightfully continues to be at the forefront of most civic and business leaders agendas. There have been tremendous strides in the overall educational system in the River Region over the past couple of decades. 20 years ago, Whitfield Foods changed its hiring policy to require a minimum high school diploma or GED equivalent. This proved very difficult for our hiring process, and we still find ourselves rejecting applicants due to a lack of education, but the issue has certainly improved. With the growing complexity of our processing and production equipment, it remains very difficult to hire from a pool of applicants to handle some of our production positions. Technical schools and programs offered by organizations like Trenholm Tech and AIDT are excellent in their efforts to train those seeking the opportunity. The school system has made great strides in many areas, but one significant area needs improvement. Recent statistics show that approximately two-thirds of Alabama high school graduates further their education. Theoretically then, another third go directly into the workforce.

Montgomery Business Journal May 2011

Most of these students will be ill-equipped to find meaningful employment straight out of high school. It is my opinion that a greater emphasis on technical training at the high school level is needed. I am not speaking of magnet schools, where “the best and brightest” are further educated, rather a place where the “tooled and trained” are developed. Both the expansion of career academics and making technical training generally available throughout the school system is imperative. Teaching trades such as plumbing, air conditioning/heating, robotics, pneumatics, logic and industrial controls, forklift handling and electrical will produce a trained and ready workforce. Other schools provide some of this already, but much more is needed. Career Academies, recently featured by this publication, is an outstanding program that could perhaps embrace some of the aforementioned industrial trades. We need to offer technical trades to those students that may otherwise be left behind or worse yet, left out. Every student, if pushed hard enough, will certainly find some type of trade that they enjoy and can use to further themselves in our community…and be productive employees directly out of high school. Commodities. Corn syrup prices, obviously our main ingredient in Alaga Syrup, have increased 40% in cost since 2001, the majority of that since 2007. These increases are largely due to the use of corn for ethanol, government subsidies and exporting. Simply stated, these areas need a complete (and honest) review by the federal government. Supply and demand being what it is, I am not alone in saying that using food sources for fuel is not the best use of our resources. Coupled with competing against national brands that have buying power that small manufacturers simply do not have, creates a tremendous challenge to keep our products on the grocery shelf at competitive prices.

products. Increased energy and commodity prices reduce profits, costing jobs. Taxes. Corporations are often accused of not paying their fair share of taxes. Forget corporate income tax for a minute. We pay the following taxes, fees or licenses without regard to profitability: > Privilege tax > Business license/Tax > Sales and use tax > Employer FICA tax > Employer Medicare tax > Federal unemployment tax > State unemployment tax > Property (including all depreciable equipment) tax > Numerous taxes related to trucking Last year, our ratio of all taxes paid vs. net income before any taxes were applied, was 48%. That is high, period. Reduction in this percentage would greatly help with increased capital investment, resulting in an increase or preservation of jobs.

possession. Being capital intensive as we are, the property tax is a significant annual expense. There are statewide programs that can eliminate the tax, generally for new or expanding businesses creating new jobs. Consideration for tax deferral or removal in cases where capital expenditures ensures continued employment would be a positive for small manufacturers. Current corporate tax incentives at the federal level are certainly allowing us to increase our capital investments, while improving ourselves as a contract manufacturer. These incentives, if made permanent, would be very helpful for the future of small-medium sized manufacturers. Manufacturers and businesses of all sizes face daily challenges in an attempt to improve processes, remain competitive, be profitable and keep employees employed. It is incumbent upon everyone in the business and civic communities to diligently ensure small manufacturer’s stability with continued positive actions • Les Massey is president and CEO of Whitfield Foods, Inc.

An issue that stands out is property taxes, which includes equipment. When we purchase production equipment, we pay the appropriate sales tax; then, annually, we pay the property tax until said equipment is no longer in our

Additionally, fuel, especially natural gas used for our production facilities, has created major budgeting issues. Over the past 5-6 years, well-head natural gas prices, traded openly, have ranged from approximately $2.75/MMBTU to over $14/MMBTU. This is nearly impossible to budget and can have a significant impact on net income. Users have the ability to purchase natural gas in the marketplace, but that can create its own issues. Gasoline and diesel prices continue to escalate costs for all delivered materials and

May 2011 Montgomery Business Journal

Q&A with Kenny coleman on the Cityâ&#x20AC;&#x2122;s Comprehensive five-year strategic plan for growth and prosperity

ÂŠ Fouts Commercial Photography

by David Zaslawsky photos by Robert Fouts

A steering committee of nearly 50 members helped develop the strategy for the Imagine a Greater Montgomery II strategy.

anevengreater Montgomery

Kenny Coleman is vice president of the Southern Division for Alabama Power Co. He is also the chairman-elect of the Montgomery Area Chamber of Commerce Board of Directors. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: What is your role in the Imagine a Greater Montgomery II strategy – the Chamber’s five-year strategic plan? Coleman: I am the chairman of a steering committee of about 50 people. It is a community-wide very diverse group of community leaders who have all come together to review the documentation; review the research and analysis; and try to ensure that one, the plan makes sense based on the research and two, that it will continue to move our community forward in economic development; and three, we are going to ask them to help us figure out can we implement it; what are the costs and all the other implementation factors.

Coleman: Out of that research came four main targets: advanced manufacturing, health care, logistics and distribution and applied technologies (high-tech industry). MBJ: What about stage IV? Coleman: We will review drafts of the strategy. The steering committee will have a lot of input of what exactly ends up becoming the strategy. The steering committee will mold and shape this draft strategy. Market Street Services will provide us with strategic initiatives underneath each key strategy. MBJ: What are the tentative key strategies and I know these primary goals are subject to change? Coleman: Goal I is: Aggressively pursue educational excellence and develop competitive regional talent. Goal II: Advanced targeted and diversified economic growth. Goal III: Improve quality of place and accelerate community revitalization. Goal IV: Foster community capacity engagement and image.

MBJ: Who is on the steering committee?

MBJ: What is Stage V of the process?

Coleman: The steering committee members include our large Chamber functions; includes members of government entities; includes members of universities and K-12; and a number of other civic leaders and Chamber Board members.

Coleman: Implementation of the plan. The steering committee will provide guidance to that, but ultimately the Chamber’s Executive Committee will have the final say on the entire strategy.

MBJ: Please describe the steps in the process of the Imagine strategic plan to get where we are now with the strategy? Coleman: It is a five-stage process. Stage I was the leadership trip to Austin, Texas. Stage II was a competitive assessment, where we benchmarked ourselves against three other Southeastern communities that we thought in some ways were leading the way in economic development. Those communities were Little Rock, Arkansas; Richmond, Virginia and Shreveport, Louisiana. Stage III was the target cluster review. MBJ: What is the target cluster review? Coleman: We looked at the data; we looked at where we were competitive and we looked at macro- and micro-economic trends to try to determine what sectors of the economy made sense for us as a region to proactively target for economic development efforts. MBJ: What are the suggested target clusters?

MBJ: When will the final stage be completed? Coleman: I suspect by mid-May we’ll have a final strategy pretty much hammered down. MBJ: Why is the strategy important? Coleman: We have seen the success of when a community rallies around a common purpose. We have seen it in our community with Imagine I. We’ve seen it in other communities like Austin with their Opportunity Austin plan. To have an entire community’s resources laser-focused on accomplishing goals that we think will march the community forward is one of the best ways to get things done. The great thing about this economic CONTINUED ON PAGE 26

To have an entire community’s resources laser-focused on accomplishing goals that we think will march the community forward is one of the best ways to get things done. - Kenny Coleman

per capita income for our community and our 21st century-type jobs that are less vulnerable to systematic global changes.

CONTINUED From Page 25

development strategy it’s holistic. It’s not economic development in its purest sense in terms of only what targeted groups or customers or companies you go after. It is also a road map for us to help build community capacity and infrastructure to help support the kinds of jobs that we want to recruit and grow internally. MBJ: Do you have an example of that? Coleman: What we saw in Imagine I was to transform Montgomery’s image. Part of a company’s valuation becomes a quality of life issue: How do people feel about it? Is the community moving forward? Are they going to support me in my endeavors going forward? Part of Imagine I’s image strategy was to make sure that as we go and try to encourage companies and consultants to give a greater

of life factors like housing. It was a surprise because everybody feels it, but because some of the things we had done to build our automotive industry and other advanced manufacturing we weathered the storm pretty well. What you find when you look at Montgomery and these other communities, we have many similar resources: University presence, great physical infrastructure assets with sites and dual rail lines. We have what I like to call the full six-pack. MBJ: Did any of the weaknesses surprise you? Coleman: In some ways, we recognize our weaknesses. Our educational attainment levels were not where any of us want them

MBJ: I read from the various Market Street Services findings that tourism and downtown development are two opportunity areas. Please elaborate. Coleman: The city has a pretty aggressive strategy in not only acquiring properties, but develop additional mechanisms to make them more attractive to the kind of development that is consistent with a growing, vibrant downtown. Continuing that strategy is going to be key. There are also a number of projects that we think will help on the tourism side. One of those projects being worked on is Questplex, which will be a combination of our children’s museum and public library into a world-class technology center that we think can be a centerpiece to start to bring

Continuing to make downtown a place where people want to go is look to Montgomery, once they get here their people also feel good about it. We are also talking and selling the positive things that are happening in our community, which there are a lot of. It’s holistic in a sense that we are also building our community capacity to support these jobs that we all want to create. MBJ: You talked earlier about the competitive assessment – looking at how Montgomery fared against Little Rock, Shreveport and Richmond. What did you learn about Montgomery’s strengths and weaknesses and were there any surprises? Coleman: One of the biggest surprises was that we all have felt the effects of the Great Recession, but Montgomery has weathered the Great Recession much better than the comparison cities and much better than many, many other cities around the country. Some of the stability we have in state government and military and some of our other larger industries, we’ve been able to weather the downturn in employment and in some ways be rather insulated in other quality

Montgomery Business Journal May 2011

to be and that showed in some comparative assessment data. I think that is job one for our community. We have to continue to marshal as many community resources behind improving the educational experience and attainment for our kids. That is going to yield a quality work force going forward and an overall quality of life that we all want. MBJ: What type of changes will residents be able to see in the next couple of years from the Imagine II strategy and what will they see in five years? Coleman: I think what they will see is an improved education system; increased collaboration amongst the partners involved in economic development; a much closer tie to our colleges and universities that we have here; and improved amenities downtown and throughout the city when this is all said and done. They will see an increased focus on keeping, growing and retaining our young professionals. They will see an aggressive strategy in recruiting work force talent into our community. The bottom line is they will see increased employment opportunities. We’ve had a tremendous amount of success in advanced manufacturing. This plan is guiding us toward diversifying that economy. We want to continue to increase jobs and the

people up Commerce Street. Many people come in for conventions and they are at the Renaissance or they may go down to the riverfront, but an additional downtown venue for children and adults will give people more opportunities to do things while they are here. That’s the guts of downtown redevelopment partnered with tourism. There is a lot of talk about how we build ourselves and how we market ourselves to the rest of the world. We have a rich vibrant history and continuing to make downtown a place where people want to go is critical for our young professionals and our recruitment of new talent. They tend to like quality of place first. We heard during our study that young people now pick place first and job second. We have to continue to make Montgomery a place that more and more people want to make home. MBJ: Please talk about the target clusters: Advanced manufacturing, logistics and distribution, health care and applied technologies (high-tech industry). It seems that those areas have strong foundations. Is the strategy to build on that?

MBJ: You are talking about high-paying jobs and you were also talking about high-paying jobs from the advanced manufacturing sector to raise that per capita income.

Coleman: All of the opportunity areas were chosen for one or several reasons. One is we have a pretty good infrastructure now to support them – either work force or logistics – and where they are an opportunity area. When you look at health care and you look at the aging population and you look at how many health care-type of resources we have in this community. The study said that we may have room for additional capacity and a need from your residents and visitors for those kinds of services. It (the study) was forward looking in the sense that where the opportunities go in the 21st century – how competitive can we be; how much

component with nanobiotechnology and other words I cannot pronounce. You have building infrastructure in that realm and we think that provides us some opportunities. In advanced technology, one of the big questions we are trying to answer – is there a way to leverage what is happening out there with Maxwell/ Gunter? It’s primarily one of the technology hubs for the entire Air Force. With that, we have several smaller companies who are supporting some of the efforts there. Is there a way to leverage that into additional public sector-private sector jobs? That is the key strategic question that we are trying to ask ourselves.

Kenny Coleman, vice president of the Southern Division for Alabama Power Co. and chairman-elect of the Montgomery Area Chamber of Commerce Board of Directors

critical for our young professionals and our recruitment of new talent. infrastructure we have here now to support it; and whether or not we can really sell Montgomery as a place to attract additions. It’s building on strengths; capitalizing on opportunities; and overcoming weaknesses really boils it down to these four areas. Advanced manufacturing for us is a pretty obvious one. We have a very competitive cost structure. We have demonstrated that we have a very trainable work force. We’ve got some of the most technologically advanced automotive plants here already. We have Hyundai Power Transformers building a new facility in Hope Hull. MBJ: What about the other target clusters? Coleman: With health care, there are some questions of what the new health care law might mean, but what is clear is that baby boomers are retiring – the need is there. MBJ: Are there also opportunities for medical research and maybe a medical industrial park? Coleman: That’s right. You have health care services, which include things like Federally Qualified Health Centers. We also have some device manufacturers here like Hausted Patient Handling Systems and some others. You’ve got ASU (Alabama State University) accelerating their research and development

Coleman: Absolutely. Higher-paying jobs and jobs that we think will be needed in the future and that are less subjective to outsourcing. MBJ: You’ve said the input of stakeholders is critical to the success of Imagine a Greater Montgomery II campaign. Are the stakeholders energized and how important is it to have a diverse group to hear so many different opinions? Coleman: There was a quote that was used in one of our presentations during this process and it said: ‘Change is debilitating when done to us, but exhilarating when done by us.’ My view during this process is that we’ve had a very engaged stakeholder group. They’ve asked fantastic questions. They’ve challenged assumptions and at the end of the day, I hope that we come out here with a strategy that everybody – there was a consensus around not only it making sense for our community, but that we can execute it and that successful

execution will lead to a better community. I have no doubt that with that group of leadership around the table fully engaged as they’ve been that will be the outcome of the process. MBJ: Mac Holladay, the CEO of Market Street Services, said that the City of Montgomery has progressed so much in the past five years that it can now be compared to Little Rock, Ark.; Richmond, Va.; and Shreveport, La. What does that say about the effectiveness of the initial campaign and what has happened in Montgomery the past five years? Using a baseball analogy, it now seems that the city is being compared with Triple A cities after being compared with Class A cities. Coleman: I agree 100 percent. I’m a newcomer here, but what I think we have realized is that we can play in the Big Leagues. We compete day in and day out with much larger communities with much greater resources and much larger populations, airports and all those critical success factors to choose from and we win. Winning has shown us that we have an appetite to compete on a larger scale and that was part of the reason in going to Austin. Austin is a CONTINUED ON PAGE 28

May 2011 Montgomery Business Journal

‘A Next Level Strategy’ by David Zaslawsky To conclude his Imagine a Greater Montgomery II presentation to the Montgomery Area Chamber of Commerce Board of Directors, Market Street Services CEO J. Mac Holladay borrowed a quote. The quote was from former Secretary of State Gen. Colin Powell and was taken from a leadership primer with 18 lessons. Here is the quote: “If it ain’t broke, don’t fix it is the slogan of the complacent, the arrogant or the scared. It’s an excuse for inaction, a call to non-arms. It’s a mindset that assumes (or hopes) that today’s realities will continue tomorrow in a tidy, linear and predictable fashion. Pure fantasy.” It was Holladay’s call to arms for the Board members to roll up their collective sleeves and help implement the Imagine a Greater Montgomery II five-year strategic plan, which builds on the successes of the Imagine I campaign. “We believe you made a great deal of progress but at the same time there are serious difficulties that remain,” Holladay said. Christa Tinsley Spaht, who is Market Street Services’ project manager for the Imagine II campaign, said, “There is a lot more capacity for things there wasn’t before.

CONTINUED From Page 27

This is a critical junction for Montgomery to do something for all these efforts that have taken place the last five years.” The five-year Imagine a Greater Montgomery II campaign is expected to be finalized in May and implementation will follow. “This is not just about the Chamber,” Holladay said. “This is very much about the team – the city, the county; other agencies and entities; and institutions are going to be part of this implementation.” The campaigns are detailed economic development strategies, which are roadmaps for retaining and creating jobs and investment. Imagine II is being billed as “A Next Level Strategy.” That means, according to Atlanta-based Market Street Services, a “more highly targeted economic development strategy.” One of the four goals in the Imagine I campaign was: “Strengthen the Montgomery Regional Economy.” In the preliminary Imagine II draft proposal, which is subject to change, one of the goals is more specific: “Advance Targeted and Diversified Economic Growth.” An emphasis on the suggested targeted areas are advanced manufacturing, logistics and distribution, health care and applied technologies (high-tech industry) are expected to diversify the region’s economy and make it less dependent on federal, state and local government. The once-stable public sector helped Montgomery weather the Great Recession, but now there are layoffs in government. •

much larger city and has some similarities of course being a state capital and having a riverfront. They have spent an awful lot of time and effort in developing their downtown. So there are some similarities, but it is about eight times our size. They have 50,000 students pouring out of the University of Texas every year. MBJ: Even if you had 10 universities and colleges with 5,000 students apiece that does not compare with a single university with 50,000 students and Montgomery may have half that total. Coleman: That’s correct, but what you find on a per capita basis and you look at the population per students coming out and we’re close. One of the things the Austin trip showed many of us is that maybe there is an opportunity to leverage what’s happening in our colleges and universities and be more of a partner of what’s happened there in terms of helping to keep some of those young folks here and provide opportunities with internships and those kinds of things. MBJ: There does not seem to be close ties between the business community and the local colleges and universities as there is between the business community and public education. Coleman: There are some individual ties. What you saw in Austin was a really tight partnership and the success of that was obvious. Those are some of the other more subtle strategies that playing in the Big League level can help a city. We challenged ourselves this year. Richmond is about the size of Austin and much larger than us and Little Rock is larger than us. MBJ: Because there were so many successes from the Imagine a Greater Montgomery campaign, are the expectations even greater for the Imagine II campaign? Does it make it tougher on you to follow a successful campaign or easier? Coleman: For me, it provides a little more personal motivation and I hope it does our committee. What I hope to do is to continue and leverage the success of Imagine I, but to have the (next committee chairman and steering committee) five years from now

Montgomery Business Journal May 2011

working on Imagine III have an even higher bar to shoot at. It’s motivation for me. I don’t think it makes it much tougher.

Target sectors diversify local economy

MBJ: What about the expectations? How do you follow the Renaissance, The Alley, West Montgomery Initiative, etc.?

The four proposed target sectors in the Imagine a Greater Montgomery II campaign have the best opportunities for growth, higher wages and to leverage the River Region’s existing assets.

Coleman: I think it does raise the bar. I think our committee welcomes that bar being raised. MBJ: Holladay told the Montgomery Area Chamber of Commerce Board of Directors: ‘It’s a tough time. We have to do better. We have to do more. We have to do some things differently. We have to get our comfort level uncomfortable.’ Please comment. Coleman: I agree with him. My view is the old adage: ‘Nothing ventured, nothing gained.’ If you don’t challenge yourself to shoot for the moon you might never reach the stars. With us putting the strategy down that we felt was going to be a stretch; was going to be a challenge; was going to be hard; it’s going to take commitment; it’s going to take lots of hard work to get done and perhaps we don’t see everything around the corner that could influence the strategy, but we feel good that together we can get there – that’s success. Looking without seeing everything around the corner, probably should make you a little uncomfortable, but should also want to make you work harder and make our community want to work harder to achieve the goals. •

by David Zaslawsky

That is the conclusion from Market Street Services and the reasons the four target sectors were recommended to the Montgomery Area Chamber of Commerce Executive Committee and the Imagine steering committee. Here are those four target sectors: > Advance manufacturing. > Logistics and distribution. > Health care. > Applied technologies. Although three of the target sectors are the same ones from the Imagine I campaign – applied technologies has replaced finance and insurance – niches have been identified. The overall goal of the target sectors is to diversify the local economy and to concentrate on higher-paying jobs. The following is a look at the four target sectors: Advanced manufacturing This target sector includes automotive manufacturing, energy and sustainable technologies and aerospace and defense. About 25 percent of the workers in the region are employed in this target sector. Montgomery has become a major player in the automotive manufacturing sector with the Hyundai Motor Manufacturing Alabama facility that produces the automaker’s top two selling vehicles – Sonata and Elantra. Montgomery and other nearby communities have major parts suppliers, including MOBIS Alabama, a tier one supplier to both Hyundai and the Kia plant in West Point, Ga.

region’s workers are employed in the sector. The region’s central location and interstate and rail access are key advantages and Montgomery is close to the Port of Mobile. Another advantage, which also benefits advanced manufacturing, is industrial sites. There are 26 industrial sites in the River Region with 25-plus acres and about 30 buildings with at least 20,000 square feet. Health care This target sector has three niches: health care services, research science and medical manufacturing and wholesale. The health care services niche has been one of the fastest-growing sectors locally and nationally. The sector offers a wide range of highpaying jobs. The medical supply sectors are expected to grow nationally by more than 16 percent between 2008 and 2018. Market Street Services stated that Montgomery “has many of the pieces in place to move aggressively into this high-value niche.” In the research science niche, the area has a need for computer software engineers and systems software employees. Those jobs pay an average annual salary of $75,000. There is also a need for biomedical engineers, microbiologists, biomedical researchers and other medical scientists. Applied technologies This target sector is the high-tech industry. Applied technologies can be hardware and software, manufacturing and services. There are numerous opportunities for growth including cyber security, data storage and health care data plus the sector is projected to be one of the fastest-growing in the country. The average annual salary in the various target sector jobs is $65,000-plus compared with the region’s average annual wage of about $37,000. Montgomery has a tremendous resource in Maxwell Air Force Base and Gunter Annex, where the 754th Electronic Systems Group and the Defense Information Systems Agency are located. •

Market Street Services suggests that the region work with the state’s aerospace and defense markets in Huntsville and Mobile to create supplier networks. Logistics and distribution There are growth opportunities in transportation and warehousing as well as wholesale trade. Nineteen percent of the

May 2011 Montgomery Business Journal

Saving Garrett Coliseum Officials work on funding proposals by David Zaslawsky

The dreams of a renovated Garrett Coliseum generating a lot of revenue are running into harsh realities of the state’s budget crunch. Montgomery’s local Statehouse delegation as well as the City of Montgomery and Montgomery County are fighting to keep Garrett Coliseum operational. The alternative is a gigantic empty building slowly rotting away. Montgomery Mayor Todd Strange said that Garrett Coliseum could generate about $1.5 million a year in revenue if ticket prices are increased $1 or $2. “If you have an operator in there that knows what they are doing and get the right kinds of events in there and charge the right prices, then the operation could stand by itself,” Strange said. He said the that livestock shows and horse shows could be held at the coliseum, which hosts a national rodeo, Alabama National Fair, circus and monster truck shows.

That sounds simple enough, but there are some complex issues. First of all, a Legislative committee voted to rescind a 2010 bill that gave $800,000 a year for debt service if $30 million was spent on major renovations to Garrett Coliseum. That funding was scheduled to start in 2014. Alabama Gov. Robert Bentley has also proposed cutting the $500,000 a year that the state currently funds for operations at Garrett Coliseum. Strange said that money is used to pay five employees. Now, consider that the General Fund budget, where the Garrett Coliseum funding comes from, is expected to be $1.4 billion to $1.5 billion – and three or four years ago was $2 billion. At the same time, the state’s Medicaid tab has grown from $400 million to $700 million. “Some state agencies will be zeroed out and others will be cut up to 45 percent,” Rep. Jay Love, R-Montgomery, said at a breakfast meeting with other local political leaders. If the coliseum generates $1.5 million a year in revenue that would pay for more than half of the expected debt service payments on a $30 million renovation. Strange said those debt payments would be about $2.5 million a year and that the City of Montgomery, Montgomery County

and the State of Alabama would the pay the remainder. He said the state would need to contribute between $250,000 and $500,000 a year for debt service – a far cry from the $800,000 previously agreed to. Strange pointed out that the state receives 4 percent of the tax revenues from Garrett Coliseum while the city receives 3.5 percent and the county gets 2.5 percent. At one point, there were talks of overhauling Garrett Coliseum at an estimated price tag of $80 million, which would have resulted in an annual debt service of around $4.5 million. Strange said the city was being asked to pay the entire debt service and was not in a position to do so. “We need to make sure we fund it (Garrett Coliseum) properly, but we need to also look at the long-range goal for the coliseum,” Love said. “It is a priority to keep it operational,” Love said. “I think if you have the right plan in place it’s something that could be great for this area and it could pay for itself by increased use of the coliseum.” Rep. Joe Hubbard, D-Montgomery, said, “I think everybody on the delegation is on board on ensuring that that property does not dilapidate and doesn’t become a burden to the city or the county. It does have a net economic impact.” He told the Montgomery Advertiser that Garrett Coliseum “is an economic engine. It can be a great economic engine in the future.”

Montgomery Business Journal May 2011

help2recognize

Merrill Lynch is extremely proud of Robert F. Runkle for being recognized on Barron’s “Top 1,000 Advisors” ranking. Robert was ranked #1 in the state of Alabama. Our Financial Advisors demonstrate every day how a one-on-one relationship, knowledge, insight and one of the broadest platforms in the industry can impact clients’ lives. Congratulations from all of us at Merrill Lynch.

Robert F. Runkle, CFM, CIMA®

Institutional Consultant Senior Vice President-Investments Wealth Management Advisor

Runkle, Haynes & Associates Merrill Lynch 4001 Carmichael Road Suite 500 Montgomery, AL 36106

(334) 409-5810 • (800) 921-9415 www.fa.ml.com/runklehaynes

Source: Barron’s “America’s Top Advisors: State-by-State,” February 21, 2011. Barron’s is a trademark of Dow Jones & Company, Inc. All rights reserved. Financial advisor criteria: minimum seven years of financial services experience and employment at current firm for at least one year. Numerous quantitative and qualitative measures determine the financial advisor rankings. The bull symbol, help2recognize and Merrill Lynch Wealth Management are registered trademarks or trademarks of Bank of America Corporation. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and member SIPC, and other subsidiaries of Bank of America Corporation. Investment products: Are Not FDIC Insured © 2011 Bank of America Corporation. All rights reserved. 232704

Are Not Bank Guaranteed ARA651J1-03-11

May Lose Value Code 4424401PM-0311

May 2011 Montgomery Business Journal

ÂŠ Fouts Commercial Photography

Member Profile

David Allred (left) and Jim Leonard are co-owners of LWT Communications.

Attention to Detail and Commitment LWT Communications connects clients with their customers by Jennifer Kornegay

It wasnâ&#x20AC;&#x2122;t that long ago that advertising agencies stuck photos and text onto foam board with spray mount to present new marketing concepts to clients.

Montgomery Business Journal May 2011

LWT Communications Number of Employees Then came the computer age, and graphic design and photo editing software that could keep pace with graphic artists’ imaginations and magnify their talents made everything easier and faster. But if this move forward enhanced the game the advertising industry was already playing, the widespread use of the Internet and the growing use of social media have changed it. And LWT Communications, a Montgomery advertising agency that’s now more accurately identified as a comprehensive communications firm, is in the major leagues. “I think we were the first agency in Montgomery to integrate the web into our core services,” said Jim Leonard, co-owner of LWT. “1998, we started the web development part of company and had 5 percent of our business directly related to web. In 2010, over 35 percent of our business is directly related to the web. We now have eight fulltime employees dedicated to interactive services like websites, social media, content development, etc.” Leonard’s partner David Allred jumped in and named the biggest change in advertising in the last decade. “Definitely social media. It is here to stay,” he said. “We’ve embraced it, too. One reason we like it is because it allows a client to connect with the customer in a way they never have before. People under age 25 are communicating in new ways, and businesses need to connect with them in the way they communicate.” LWT has a full-time coordinator to manage content for its clients using social media. Leonard and Allred bounced comments off one another, giving evidence of the true collaborative nature of their partnership. They bought LWT together in 1994 while they were both working there. “I knew I wanted to be in advertising for a long time,” Leonard said. David wasn’t so sure. “I have a business background, and advertising was not a childhood dream, but it fits now,” he said. It is a harmony of backgrounds and personalities that has kept their relationship in synch. “I’m the creative,” Leonard said. “He’s the business guy; he makes sure everything works to the clients’ benefit and the agency’s benefit. We come at things from different angles; that’s why our partnership works so well.” Allred agreed. “Our partnership lasts because of this balance. We are both involved in both parts, but one of us leans one way, and the other one leans the other way, so we’re not competing or butting heads,” he said. In 1959, a Montgomery artist and entrepreneur named Jay Leavell founded LWT. Looking at it today, he may not recognize the company he started. Or then again, maybe he would. Technology has changed the methods, but not the message. LWT still works toward the same goals for each of its clients: to create and market a brand identity and to connect them with their consumers. “At a basic level, we create and manage interactive, advertising, social, media and content to tie together a client’s marketing efforts,” Leonard said.

22 Recent Award

Two-time Small Business of the Year Award Winner, Montgomery Business Committee for the Arts; 13time winner of Best in Show, American Advertising Federation ADDY Awards; Southern Public Relations Federation Lantern Award, 2009; Over 550 local and regional American Advertising Federation ADDY Awards over the last 12 years. Point of Pride

“This year is the 10th year we’ve done CreateAthon,” Jim Leonard, co-owner of LWT, said. “Through this event, we’ve given back to the community in a way that no other agency has and donated over $400,000 in agency services to 70 non-profit organizations.” CreateAthon is a 24-hour effort that provides free strategic marketing planning as well as creative and interactive development services to area non-profits. which included a TV spot that we produced in-house, billboards, print ads, signage and more,” he said. “As the interactive component of that campaign, we developed an application, a kind of Twitter feed aggregator. The city can set up a website and integrate this feature, which allows the website to publish Tweets from anybody the website is assigned to follow.” LWT also does public relations work and handled all of the public relations for the episode of ABC’s “Extreme Home Makeover” television show done in Montgomery a few years ago. “We really have a huge range of services,” Leonard said. “Our branding is very comprehensive. For example, for the new Deli at Alley Station downtown, we designed the logo and such, but we also helped them pick out paint colors and tile. All of those things go into keeping their branding consistent.” This attention to detail and commitment to the needs of its clients is at least one of the keys to LWT’s success. “We’ve built a real trust with our clients,” Leonard said. “In some cases, we’ve worked with them so long, they feel like we are part of their business. We are trusted advisers and consultants. We have many long-term clients, one that we’ve had for 15 years.” Their dedication has also earned them multiple awards. Yet for all the hard work, both Allred and Leonard are also having a good time. “We do so much, but it is something different every day,” Allred said. “That keeps it fresh and fun for me; it is why I love what I do.”

Because that encompasses so much, Allred pointed to a specific campaign to better illustrate what it all means. “We recently launched a fully integrated branding campaign for the City of Montgomery,

May 2011 Montgomery Business Journal

Great Expectations Business leaders bullish about second-quarter industry sales by David Zaslawsky

While business leaders across Alabama are less optimistic about the national and state economies, they are downright excited about industry sales. The overall 2011 second-quarter Alabama Business Confidence Index (ABCI) rose for a third straight quarter and that 0.8-point increase was sparked by the overwhelming positive outlook on sales. That category rose 4.1 points to 61.9 points and is at least 4 points higher than the next closest component and nearly 8 points higher than two of the categories. The index, compiled by the University of Alabama’s Center for Business and Economic Research, is now the highest since the third quarter of 2007 when it hit 57. The index all-time high, which began in 2002, is 69 points set in the third quarter of 2004. Four of the six components improved from the first quarter while the outlooks for the national economy and state economy both declined.

The panelists in Montgomery – one of four metro areas - were the state’s most upbeat about the state economy (62.5 points) and national economy (58.9). Mobile participants were the most optimistic about industry sales (64.0) and industry profits (60.0). The most optimistic sectors by group are finance/insurance/real estate (61.1) and transportation/information/utilities (59.7) while the most pessimistic is professional/ scientific/technical services (49.1). The following is a component-bycomponent breakdown of the secondquarter ABCI: National economy This component declined 1.5 points from the first quarter, a small pullback after surging 13 points from the 2010 fourth to the 2011 first quarter. The component stands at 53.6 points and the second-quarter sentiment is still very positive. Nearly twice as many respondents (43 percent) expect the second quarter to be somewhat better compared with those expecting a somewhat worse quarter (23 percent). About 28 percent anticipate no change from the first quarter. Alabama economy By an overwhelming margin – 48 percent to 18 percent – panelists are forecasting an improved second quarter. About half of the survey participants are optimistic compared with 20 percent who expect the quarter to be

Montgomery Business Journal May 2011

worse than the previous one. The number of panelists expecting a decline in the quarter did increase from 13.7 percent in the first quarter. The component’s index declined 2.3 points to 57.3, but that is still an upbeat outlook for the second quarter. That 57.3 total is the second-highest of all the individual components. About 30 percent of the panelists expect no change from the previous quarter. Industry sales Almost six of 10 panelists expect second-quarter sales to improve from the previous quarter. That figure is almost four times greater than those who expect sales to decline. The 61.9 points is the highest level since the third quarter in 2006. About three-fourths of the panelists in the finance, insurance and real estate sectors anticipate an improved quarter and 80 percent of the retailers are forecasting better sales. The sectors expecting a decline in sales are construction, professional, scientific and technical services sectors. Construction panelists are the most pessimistic – 29 percent expect sales to decline. Industry profits This component increase 1.8 points from the previous quarter to 55.8 points, matching the second quarter in 2007. Nearly half of the respondents are forecasting improved profits in the second quarter while less than 24 percent expect profits to decline. Nearly 30 percent expect profits to remain the same. The most optimistic sectors are finance, insurance, real estate, wholesale trade, transportation, information and utilities. Sectors anticipating a decline in second-quarter profits are professional, scientific, technical services, construction and health care.

Industry hiring This component increased 1.4 points to 53.1 points, which is the highest level in nearly four years. About 30 percent expect to increase hiring in the second quarter compared with 16 percent who anticipate a decline. The majority of respondents â&#x20AC;&#x201C; 54 percent â&#x20AC;&#x201C; expect no change from the first quarter. The most bullish sectors are transportation, information and utilities. Other optimistic sectors are trade, manufacturing, finance, insurance and real estate. Sectors expecting a decline in secondquarter hiring are construction, professional, scientific and technical services. Industry capital expenditures This component also rose to 53.1 points, gaining 1.3 points from the first quarter. About half of the respondents expect no change from the first quarter, but 28 percent are forecasting a moderate increase in spending compared with 15 percent who expect a moderate decrease in the second quarter. The manufacturing sector was the most upbeat

ABCI quarterly breakdown 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

55 56

Source: University of Alabamaâ&#x20AC;&#x2122;s Center for Business and Economic Research

about spending with 46 percent expecting an increase compared with 8 percent forecasting a decline. The retail trade, transportation, information and utilities sectors are forecasting increased spending in the quarter while the construction, professional, scientific and technical services sectors are expecting to spend less in the second quarter. â&#x20AC;˘

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May 2011 Montgomery Business Journal

Member News

BusinessBuzz Sutton & Associates, a division of Alabama World Travel, is a full-service incentive travel and meeting planning company.

He graduated from Cumberland School of Law and practiced law in Birmingham for a number of years prior to joining the Beasley, Allen firm in 2008.

Chris Glover

BEASLEY ALLEN SHAREHOLDER WILL LEAD LAWYERS’ ORGANIZATION MONTGOMERY – A shareholder with Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., was elected president of the Southern Trial Lawyers Association (STLA).

HAMPSTEAD WILL RECEIVE AWARD FROM 2011 CONGRESS FOR THE NEW URBANISM

Liz Sutton

MONTGOMERY – The Town of Hampstead has been recognized as an award recipient for the 2011 Congress for the New Urbanism (CNU) Charter Awards. Hampstead is a 416-acre community developed by Montgomery-based City Loft Corp.

Chris Glover was named to lead the organization at the group’s 23rd annual conference. The mission of the STLA is promoting fellowship, learning and networking among trial lawyers throughout 13 Southern states.

The 11th annual CNU Charter Awards recognize excellence in urbanism with the best projects in sustainable design and implementation throughout the world.

“I am extremely honored to serve as president of the Southern Trial Lawyers Association,” Glover said. “It is humbling to be asked to lead such an accomplished group of lawyers.”

From a field of more than 100 entries around the world, the jury has recognized 16 professional projects and two academic submissions that represent a commitment to urbanism as a vehicle for civic-oriented growth. All of the recognized projects will be honored June 2nd at the 19th annual Congress for the New Urbanism in Madison, Wisconsin.

SITE is a global network of meeting, event, marketing and sales professionals.

Montgomery Business Journal May 2011

Jack Hawkins Debbie Szafran

SUTTON & ASSOCIATES PLAYS LEADING ROLE AT CONFERENCE MONTGOMERY - Sutton & Associates of Montgomery played a key role in the recent Society of Incentive Travel Executives (SITE) conference in Destin, Fla. Sutton & Associates President Liz Sutton and Debbie Szafran, business development manager, co-chaired the seven-state conference with Evan Gekas of Atlanta. “In today’s marketplace it is vital to engage and gain insight into the pulse of the incentive and meetings market,” Sutton said.

TROY CHANCELLOR RECEIVES LEADERSHIP AWARD TROY - Troy University Chancellor Jack Hawkins Jr. has been honored by the Council for Advancement and Support of Education (CASE) District III with the Chief Executive Leadership Award. Hawkins received the award at the District III annual meeting. The award, established in 1999, recognizes the chief executive of a District III member institution for outstanding leadership and service in support of education. Hawkins is the first chancellor

The firm’s new office is located in Mountain Brook Office Center at 2700 Highway 280, Suite 208. W.R. Taylor & Co. has its headquarters in Montgomery.

or president of an Alabama university to receive the award. “One of my favorite four-letter words, after ‘Troy’ is ‘team’ and we are fortunate to have an outstanding advancement team at Troy University,” Hawkins said. “It is on their behalf that I accept this award.”

MONTGOMERY - Alabama Graphics has been awarded the Excellence in Construction Award by the Associated Builders and Contractors (ABC) Birmingham chapter. The company received the award for their work in The Clubhouse at The Cottages of Baton Rouge, La. Alabama Graphics, working with Dungan and Nequette Architects, designed and installed giclee canvases and framed paper prints to create art-filled areas within the 11,700-square-foot facility. “Our team really enjoys the challenge of high-end production and tight timelines, and I’m proud of them,” said Alabama Graphics CEO John Davis. This is the second time that Alabama Graphics has received this annual award, which recognizes top construction projects across the state.

Kimbro Renovations is a member of the Greater Montgomery Home Builders Association.

THE SHOPPES AT EASTCHASE OFFER FASHION SUMMER CAMPS Jason Grubbs

A native of Mobile, Hawkins was named Troy University chancellor Sept. 1, 1989. He received his bachelor’s and master’s degrees from the University of Montevallo and his doctorate from the University of Alabama. ALABAMA GRAPHICS RECEIVES EXCELLENCE IN CONSTRUCTION AWARD

and bath designers, and other building professionals.

MONTGOMERY - The Shoppes at EastChase will conduct eight Fashion Camps for ages 6-12 throughout the month of June. The day-camps will be separated into two age groups: ages 6-8 and ages 9-12. Each fashion camp will be 9 a.m. – 1 p.m. and will cost $60 per child.

Robbins Taylor III

W.R. TAYLOR & CO. OPENS BIRMINGHAM OFFICE MONTGOMERY - W.R. Taylor & Co., LLC, opened a new office in Birmingham. The new office is office is directed by Jason Grubbs, managing director of investment banking. The focus of the Birmingham location will be expanding the firm’s investment banking practice, including industrial revenue bond business for corporate clients. Grubbs, a native of Montgomery and graduate of Auburn University, has been with W.R. Taylor & Co. since its inception. The firm also announced the addition of Robbins Taylor III to the staff of the new Birmingham office. Taylor, who will serve as vice president of investment banking, comes to W. R. Taylor & Co. from the Miami office of Morgan Stanley and Co. Taylor, a Montgomery native, is a graduate of Auburn University. He previously worked in the private wealth management-Latin American division of Morgan Stanley.

During each of the fashion camps, attendees will learn about subjects such as Style 101, accessorizing, makeup, decorating and entertaining. The day includes lunch, a $25 gift card to The Shoppes at EastChase, a special gift and an official graduation certificate.

Anna Lowder

HAMPSTEAD FARMS WILL HOST PRESTIGIOUS DINNER MONTGOMERY - Hampstead Farms and Ham and High’s chef Joe Wolfson were recently selected to host an outdoor farm dinner as part of Outstanding in the Field’s 2011 culinary tour across the U.S. and Europe. The event, scheduled Oct. 13, marks Alabama’s only Outstanding in the Field dinner in 2011 and the first in all 11 seasons for the City of Montgomery.

Space is limited. To register, visit guest services located next to Ware Jewelers or call (334) 279-6046. MONTGOMERY REMODELER WINS BEST IN SHOW MONTGOMERY - Kimbro Renovations Inc. captured the top prize of Best in Show at the 2011 Alabama Remodeling Excellence Awards banquet. The Best in Show award is presented to the project that has the highest score among all entries in all categories. Kimbro Renovations earned the top score with its first-place finish in the category of Kitchen Remodel Over $80,000 for the Hudson kitchen remodel. The Alabama Remodeling Excellence Awards, presented by the Home Builders Association of Alabama, were given to remodelers, contractors, kitchen

“It’s a tremendous honor to be selected to host an Outstanding in the Field dining experience and represent Alabama among other top chefs and venues across the country and abroad,” said Anna Lowder, co-owner of Hampstead Farms and Hampstead Institute board member. “This unprecedented event perfectly suits The Hampstead Institute’s mission to connect people in the community to each other together through education, sustainable agriculture and incredibly local food.” Tickets are limited and available for purchase online. For event details, visit www. outstandinginthefield.com.

(CONTINUED ON PAGE 38)

May 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 37) DOW CORNING BREAKS GROUND ON FACILITY IMPROVEMENTS

BAPTIST BREAST HEALTH CENTER NAMED BREAST IMAGING CENTER OF EXCELLENCE

Thomas Dozier

ALABAMA AG CREDIT DISTRIBUTES RECORD PATRONAGE MONTGOMERY - Alabama Ag Credit, a rural lending cooperative serving Central and Southern Alabama, recently distributed a $5.1 million cash patronage to its customers. This record amount was based on the co-op’s solid 2010 earnings and was approved by the association’s board of directors. As a member of the Farm Credit System, a network of rural lending cooperatives, Alabama Ag Credit has a long history of sharing earnings with its customers. The co-op has returned more than $35 million in stock reductions, dividends and patronage payments to its borrowers since 1996. “This all-cash patronage is yet another example of how Alabama Ag Credit is committed to honoring our cooperative principle of sharing our earnings with our borrowers,” said Thomas Dozier, chairman of the board of directors. The Alabama Ag Credit reported $13.8 million net income for 2010 and loan volume had increased nearly $17 million to $654.2 million.

MONTGOMERY — The Baptist Breast Health Center has been designated as a Breast Imaging Center of Excellence by the American College of Radiology (ACR).

Harrell Reynolds

The Baptist Breast Health Center is the first in Montgomery to receive the designation and the fourth in the state. By awarding facilities the status of a Breast Imaging Center of Excellence, the ACR recognizes breast imaging centers that have earned accreditation in mammography, stereotactic breast biopsy and breast ultrasound (including ultrasoundguided breast biopsy). ADMIRAL RECORDS MANAGEMENT UNVEILS INTELLIGENT ARCHIVING MONTGOMERY - Admiral Records Management announced the introduction of Intelligent Archiving. Intelligent Archiving is the ultimate in scan-on-demand efficiency for clients who need immediate access to stored records. Rather than pulling and delivering a file to a client, the file is retrieved, scanned and returned to its storage location in Admiral’s protected records center. The client can then access the file via a secure web connection and download it onto the business’ server, document management system or onto a disc. Effectively, record storage clients will save money, save time, and go paperless through this innovative approach to digitally archiving documents.

Montgomery Business Journal May 2011

Ronnie Shaw

COTTON STATES INSURANCE MANAGER, REP RECOGNIZED Cotton States Insurance agency manager Harrell Reynolds of Alabaster was recently named Agency Manager of the Year for the organization. Cotton States Insurance financial representative Ronnie Shaw of Montgomery has earned a position on the insurance group’s distinguished All American team. Reynolds, who manages his agency at 11123 Chantilly Parkway Court, Suite C in Pike Road, was recognized for his agency’s production levels as well as the leadership he provides to the agency. Reynolds began his career with Cotton States Insurance in 2005. Shaw is among a group of more than 21 Cotton States financial representatives and agency managers who qualified for the award. This is the fourth time he has been named an All American. Shaw, who was named South Alabama Agency Agent of the Year for 2010, is located at 75 Market Place in Montgomery.

MIDLAND, Mich. - Dow Corning Corp. is breaking ground on an approximately $30 million investment at its Montgomery silicon metal manufacturing facility. The investment will create more than 30 new jobs at the site in the next few years. The facility has 150-plus employees. “This investment signifies Dow Corning’s commitment to sustaining the success of this site in Mt. Meigs and our appreciation for the wonderful home that Montgomery County provides us,” said Tommy Vessels, site manager for Dow Corning Alabama. The $30 million will be used to enhance equipment and technology at the site, helping to make the site more efficient. The silicon metal manufactured at the site is used as a raw material for thousands of silicon-based products, used in the electronics, automotive, construction and solar industries among others. WSFA 12 NEWS CAPTURES STATION OF THE YEAR AWARD MONTGOMERY – WSFA 12 News received the Station of Year Award at the fifth annual ABBY award ceremony from the Alabama Broadcasters Association. WSFA 12 News also received several awards from The Associated Press including Best Documentary: “Committed to a Cure”; Best Sports Story: Jeff Shearer, Staff, “Iron Bowl 2010”; Best Extraordinary Coverage of a Planned Event: “Honor Flight”; Best Weather Anchor: Rich Thomas; Web Journalism: “WSFA.COM”; and AP News Cooperation Awards.

BUSINESS BUZZ “I am proud to accept this award as it recognizes the tireless effort and dedication of a wonderfully talented group of individuals at WSFA 12 News,” said Collin Gaston, vice president and general manager of WSFA.

for recognizing and modeling the importance of making community service a vital a part of the education process.” The River Region United Way is a nonprofit organization that funds programs and projects that help children and youth succeed, promote financial stability, and promote health and well-being in the five-county River Region area.

Jimmy Hill, campaign director for the River Region United Way, presents awards to Sylvia Goshton, principal for the Loveless Academic Magnet Program.

RIVER REGION UNITED WAY HONORS MONTGOMERY PUBLIC SCHOOLS MONTGOMERY - Twenty-seven Montgomery Public Schools were recognized by the River Region United Way for being $1,000 Honor Roll Schools during their most recent campaign. Each of the schools had combined faculty and student donations exceeding $1,000 per school. Among MPS schools, Loveless Academic Magnet Program was the top-dollar contributor to the 2010 campaign with donations totaling more than $5,700. The school district donated $68,700, which included contributions from students and 830-plus employees. “MPS has an excellent record of generously supporting the United Way specifically and our community as a whole,” said Jimmy Hill, campaign director for the River Region United Way. “We are certainly very grateful to the superintendent (Barbara Thompson) and everyone at MPS

Jeremy Arthur

PRATTVILLE CHAMBER EXECUTIVE PARTICIPATES IN CHINA TRADE MISSION PRATTVILLE - Prattville Area Chamber of Commerce interim president Jeremy Arthur recently returned from a nineday trade mission to China. The delegation included 23 other chamber executives from across the U.S. and was hosted by the American Association of Chamber Executives and Citslinc International. Arthur was the only Chamber representative from Alabama. The trip featured site visits, meetings with government and business officials, production facility tours and cultural experiences. The delegation visited Beijing, Suzhou, Hangzhou and Shanghai. The goal in each city was to learn more about doing business in the Chinese culture and explore trade opportunities. “My trip to China was the experience of a lifetime,”

Arthur said. “With China listed as a developing country with emerging markets, meeting with the dignitaries from various cities in China to let them know about markets in Alabama was a great opportunity.” Arthur pointed out China’s huge appetite for materials and products such as coal, steel, cement and iron ore. China ranks No. 1 in the vehicles market at more than $110 billion; No. 1 in Internet use with 457 million users and has 303 million mobile service users. “My hope is that we can build links to take advantage of these markets that are expanding throughout China,” Arthur said. “Everything is possible in China, although it might not be easy. Business leaders and officials continually stressed patience as the key to success. However, I left with a feeling of optimism and an eye on the future.”

position. Governors are elected by local ACP members and serve four-year terms. Board-certified in internal medicine and infectious diseases, Many received a bachelor of science degree from Louisiana State University in Baton Rouge and a medical degree from the University of Alabama School of Medicine in Birmingham. He completed an internal medicine residency at the University of Alabama-Birmingham and two infections disease fellowships at the University of Texas Parkland Hospital and the University of Alabama. Many is a professor of medicine at the University of AlabamaBirmingham School of Medicine. He also serves as program director for the University of Alabama-Birmingham Health Center in Montgomery. AUBURN UNIVERSITY AT MONTGOMERY WILL OFFER INFORMATION SECURITY DEGREE MONTGOMERY - The Southern Association of Colleges and Schools and the Alabama Commission on Higher Education have approved Alabama’s first college degree program in information security.

Wick Many Jr.

MANY WILL LEAD ALABAMA CHAPTER OF PRESTIGIOUS MEDICAL GROUP SAN DIEGO - Dr. Wick Many Jr. has been elected governor of the Alabama chapter of the American College of Physicians (ACP), the nation’s largest medical specialty organization. Many has been a fellow of the American College of Physicians since 2007. He is currently serving as governor-elect in transition for the ACP governor

Auburn University at Montgomery will offer a master’s degree in cyber systems and information security beginning in the fall. The degrees will train future leaders in the field of information and network security. The initial target audience for the program will be Air Force personnel, both uniformed and civilian, stationed at Maxwell Air Force Base and Gunter Annex. Related defense industry personnel and the broader information technology community will also be recruited. (CONTINUED ON PAGE 40)

May 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 39) The new program prepares students for careers in homeland security, government and state agencies, private businesses and the armed forces by providing instruction and research opportunities that give students the knowledge and skills to effectively assess, develop and manage secure information networks and respond to newly developed threats. Admission requirements are available at www.aum.edu/ csis. For information, contact program director Mehmet Sahinoglu at (334) 244-3769 or msahinog@aum.edu.

The combined company’s increased scale and financial strength will enable it to deliver a broader range of communications services to consumers and small businesses throughout the company’s 37-state service area and to business, wholesale and government customers nationwide via its 190,000 route-mile fiber network. As previously announced, the combined company will use the name CenturyLink, although the Qwest brand will continue to be used in former Qwest markets for the next several months.

“I am both honored and humbled to be selected as the 20112012 Wetumpka Chamber president,” Fain said. “We have a great group of members as well as an experienced staff and I look forward to working with them in the coming months.” Jan Wood, executive director of the Wetumpka Area Chamber of Commerce, said, “I certainly want to say that the board of directors is pleased and honored to have Dennis Fain serve as its president this year.

“This recognition of the strength of our graduate programs is extremely gratifying,” said Jeff Elwell, an AUM provost. “I’m delighted that our outstanding faculty and programs are being recognized by the national media.” CENTURYLINK, QWEST COMPLETE MERGER MONROE, La. – CenturyLink Inc. and Qwest Communications completed their merger, creating the nation’s thirdlargest telecommunications company in the United States.

MONTGOMERY - The Montgomery Area Chamber of Commerce Convention & Visitor Bureau was host for eight tour operators from the United Kingdom for a Familiarization Tour. The tour was developed to promote Alabama tourism throughout the UK. The tour operators visited many downtown attractions and attended the Montgomery Biscuits homeopener at Riverwalk Stadium. The Montgomery Convention & Visitor Bureau was working in partnership with the Alabama Tourism Department and other CVBs in the state. •

In another development, two of AUM’s graduate programs were ranked among the best in the country, according to the 2012 edition of the U.S. News Media Group’s “Best Graduate Schools.” The publication ranks the university’s public administration master’s program 80th in the nation and its part-time business administration master’s program is 82nd.

MONTGOMERY CONVENTION & VISITOR BUREAU HOSTS UNITED KINGDOM TOUR OPERATORS

Billy Bradford

Dennis Fain

JACKSON THORNTON’S FAIN LEADS WETUMPKA CHAMBER WETUMPKA - Jackson Thornton Principal Dennis G. Fain was recently selected president of the Wetumpka Area Chamber of Commerce. Fain, a certified public accountant and leader of Jackson Thornton’s Elmore County offices, has been active with the Chamber for more than 24 years. This is the second time he has served as Chamber president.

Montgomery Business Journal May 2011

ALFA INSURANCE HONORS LOCAL AGENT BIRMINGHAM – Alfa Insurance agent Billy Bradford received the PRO Award for 2010 during the company’s annual awards ceremony. The company’s top agents and managers were recognized for their dedicated work and commitment to policyholders. Bradford, who has been an agent for 22 years, received his 15th straight distinguished service award. He is a 1978 graduate of the University of Alabama with degree in accounting. He works in Montgomery.

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

Members on the Move GASTON NAMED VICE PRESIDENT, GENERAL MANAGER OF WSFA-TV

Collin Gaston

MONTGOMERY – Collin Gaston has been promoted to vice president and general manager of WSFA-TV.

He has 17-plus years of broadcast experience, including the last four years at WSFA as general sales manager and local sales manager. Gaston previously worked in the Jacksonville, Fla., market with WAWS and WTEV. His positions included local sales manager, national sales manager and account executive. Gaston, a Florida State graduate, took over for Ken Selvaggi, who is now vice president and general manager at WAVE-TV in Louisville. LICENSED AUDIOLOGIST JOINS DOCTORS HEARING CLINIC

Amanda C. Holley

MONTGOMERY – Dr. Amanda C. Holley has joined Doctors Hearing Clinic.

Holley, a licensed audiologist, specializes in pediatric audiology and assistive listening technology.

Holley completed her undergraduate studies at Auburn University and obtained her doctoral degree in clinical audiology with a specialization in pediatric audiology from Gallaudet University in Washington, D.C. Doctors Hearing Clinic is a free-standing private practice in audiology and the only AudigyCertified audiology clinic in Alabama. Two clinic locations in Montgomery and Opelika offer comprehensive hearing health care and auditory rehabilitation solutions for children and adults as well as industrial and forensic audiology services. O’REAR WILL DIRECT MEDIATION PROGRAM FOR THE SAMARITAN COUNSELING CENTER MONTGOMERY – Former Family Will O’Rear Court Judge Will O’Rear has joined The Samaritan Counseling Center Inc. O’Rear will help launch and direct the center’s family and domestic mediation program. He was appointed as a Circuit Judge, Place 8, Family Court Division by Gov. Bob Riley from 2008-2011.

University. He is a licensed professional counselor and a licensed attorney. “We are absolutely thrilled to have Will O’Rear launching and directing our newly established family mediation program,” said K. Blake Horne, executive director of The Samaritan Counseling Center. “While our goal at The Samaritan Counseling Center is to see marriages reconciled, we realize that’s not always possible. Will is a wellrespected community leader and public servant that brings a wealth of experience and trust to the table in a most desperate area of need in our community.” Mediation offers a less expensive, shorter path to divorce and minimizes the stress that a traditional divorce proceeding can have on a family. “I’m excited about opening this new professional O’Rear to Head Mediation Program at The Samaritan Counseling Center chapter in my life. The Samaritan Counseling Center is well-positioned to offer mediation services for our community on a large scale, and in a way that will minimize the damaging effects of divorce and domestic conflict on our community’s families,” O’Rear said. •

O’Rear holds degrees from Auburn and Troy universities and is also a 2001 graduate of the Jones School of Law at Faulkner

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

Physicians To Children 470 Taylor Road, Suite 210 Montgomery, AL 36117 334-293-5033 Dr. Robert Beshear-Physician Physicians-Pediatrics/Adolescents

Chamnong Family Medicine 8300 Crossland Loop Montgomery, AL 36117 334-239-8939 Dr. Chai Chamnong-Physician www.drchamnong.com Physicians-Family Practice

Designer Smiles Dental Studio, P.C. 11123 Chantilly Parkway, Suite I Pike Road, AL 36064 334-270-7751 Jennifer B. Richardson, D.M.D. www.designersmilesdental.com Dentists

May 2011 Montgomery Business Journal

New Members Associations/ Non-Profit Heritage Training and Career Center Cynthia Brown 2249 Congressman W.L. Dickinson Drive Montgomery, AL 36109 334-260-6161

Casinos Creek Casinos Megan Young 1801 Eddie L. Tullis Road Montgomery, AL 36117 1-888-772-9946

Cellular/Wireless Phone Services Sprint Nextel Corporation Joe Howard 2550 Acton Road, Ste. 220 Birmingham, AL 35243 334-450-3150

Department Stores WalMart SuperCenter Ramona Benson 6495 Atlanta Highway Montgomery, AL 36117 334-272-0263

Employment Agencies Automation Personnel Services, Inc. Ryan Price 5756 Atlanta Highway Montgomery, AL 36117 334-274-1004 P & J Staffing LLC John Choi 600 South Court Street, Ste. 301 Montgomery, AL 36104 334-323-9469

Montgomery Business Journal May 2011

Fitness Center/Gym

Pharmacies

Photographers

AllFit Gym David Z. Little 3705 Eastern Boulevard Montgomery, AL 36116 334-356-1626

Walgreens Drug Store #13158 Jorge Escobar 3110 Taylor Road Montgomery, AL 36117 334-244-0143

Robin Cooper Photography Robin Cooper 1323 South Perry Street Montgomery, AL 36104 334-221-2688

Foods-Specialized

Walgreens Drug Store #2203 Dora Jodoin 3892 Atlanta Highway Montgomery, AL 36109 334-270-0757

RestaurantsFast Food

Honey Baked Ham Rayford Lee 2816 East South Boulevard Montgomery, AL 36116-2514 334-284-9100

Graphic Designers/ Desktop Publishing Color Craft, Inc. Steve Terrell 84 Ashburn Drive Montgomery, AL 36117 334-269-5944

Information Technology Firms Creative Information Technologies, Inc. Patricia Smith P.O. Box 241692 Montgomery, AL 36124 334-425-6143

Jewelers/Jewelry Heidiâ&#x20AC;&#x2122;s Fine Jewelry Heidi C. Woods P.O. Box 230922 Montgomery, AL 36123-0922 334-239-7700

Walgreens Drug Store #6843 Mario Escobar 2281 East South Boulevard Montgomery, AL 36111 334-286-6678 Walgreens Drug Store #7746 JoAnn Jones 6680 Atlanta Highway Montgomery, AL 36117 334-409-0611 Walgreens Drug Store #9456 Terry Criswell 2920 Carter Hill Road Montgomery, AL 36106 334-409-0611

Chocolate Carnival Nancy Davis 1272 Eastdale Mall Montgomery, AL 36117 334-271-8009

Signs Complete Signs, LLC Patrick Walding P.O. Box 8861 Dothan, AL 36304 334-556-0214

Economic Intel Food prices increase nearly 4 percent in latest survey MONTGOMERY – Warmer temperatures, blooming tulip trees and pollen-covered vehicles allude to one thing in the South: spring is officially in season. While many shoppers are balancing their vacation plans and budgets with the rising prices of gasoline, it seems they’ll also have to factor in a few extra dollars for groceries. Alabama shoppers noticed an increase of 3.8 percent or $2.10 for 20 basic market items, which had a total average cost of $57.41. The prices reflect the latest results from the Alabama Farmers Federation’s monthly food price survey. A portion of the increase can be attributed to a few items in the meat case. Boston butts were up 31 cents to $2.11 a pound; T-bone steaks were up 25 cents to $7.86 a pound; and chicken breasts were up 8 cents to $2.22 a pound. Meanwhile, bacon was down 21 cents to $4.85 a pound; pork chops were down a nickel to $3.45 a pound; ground beef was down 4 cents to $2.80 a pound; chuck roasts were down a penny to $3.71 a pound; and whole fryers were also down a penny to $1.23 a pound. Eggs were down for the second consecutive month, averaging 3 cents less at $1.63 a dozen.

Prices along the produce aisle were also a little harder to swallow. Tomatoes were up 59 cents to $2.31 a pound; lettuce was up 52 cents to $2.15 a head; and sweet potatoes were up 2 cents 93 cents a pound. Red potatoes were a little more affordable, down 2 cents to 83 cents a pound. Items in the dairy case weren’t exempt from the price increases in the monthly food survey. Butter was up 33 cents to $4.61 a pound; ice cream was up 19 cents to $4.13 a half-gallon; cottage cheese was up 10 cents to $2.56 a pound; and milk was up 4 cents to $3.30 a half-gallon. While prices along grocery aisles are increasing faster than most paychecks, there are a few simple things shoppers can do to stretch that dollar a little further. Planning ahead is the most important step to getting more bang for your buck at the grocery store, said Katherine Tallmadge, a spokesperson for the American Dietetic Association.

plan and take into account how you plan on using leftovers,” she said. Other tips for reducing a grocery bill is looking at ads to see what’s on sale and using coupons before planning a weekly menu. Shoppers can sign up online to receive coupons and e-mail alerts from their favorite grocers. Regional reports collected by volunteer shoppers throughout the state March 1-10 showed the market basket averaged $54.28 in Northwest Alabama, $55.91 in Northeast Alabama, $59.47 in Central Alabama and $60.82 in South Alabama. Alabama Farmers Federation, a member of the American Farm Bureau Federation, is the state’s largest farm organization. Its county members conduct the informal monthly market basket survey. •

“Take inventory of what you have on hand so you don’t overbuy, create a detailed shopping list based on your needs and weekly menu

May 2011 Montgomery Business Journal

Unemployment Data Civilian Labor Force February p 2011

Area Montgomery MA

January r 2011

Unemployment Rate February r 2010

February p 2011

January r 2011

February r 2010

166,422

165,300

168,764

9.40%

9.50%

10.00%

Autauga County

24,076

23,852

24,208ºº–

8.90%

8.80%

8.70%

Prattville City

15,627

15,470

15,688

7.50%

7.30%

7.10%

35,495

35,089

36,113

8.70%

8.40%

9.60%

4,661

4,739

4,738

16.20%

18.30%

16.90%

102,190

101,621

103,704

9.40%

9.70%

10.10%

92,383

91,846

93,653

9.30%

9.50%

9.80%

513,725

510,688

519,041

9.10%

9.80%

94,971

94,549

95,779

11.00%

11.20%

11.60%

207,165

205,866

206,862

8.00%

8.20%

8.30%

90,916

90,502

90,486

7.80%

8.20%

7.90%

186,726

185,386

185,309

10.70%

11.20%

86,920

86,254

86,121

11.00%

11.40%

2,113,981

2,106,305

2,131,754

9.70%

9.90%

10.20%

152,635,000

152,536,000

153,194,000

9.50%

9.80%

10.40%

Elmore County 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 based on 2010 benchmark

rRevised ; Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics,

Montgomery Metro Market Home Sales FEB 2011

JAN 2011

Month/Month % Change

FEB 2010

Year/Year % Change

Statewide FEB 2011

Median Price

$123,000

$120,000

2.50%

$116,500

5.58%

$120,040

Average Price

$137,256

$140,883

-2.57%

$137,634

-0.27%

$143,839

Units Listed

3,057

3,009

1.60%

3,133

-2.43%

37,549

Months of Supply

18.3

20.1

-8.96%

13.9

31.65%

15.7

Total # Sales

167

150

11.33%

226

-26.11%

2,390

Days on Market

112

108

3.70%

15.46%

160

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

Montgomery Building Starts Building Permits FEB 2011

JAN 2011

FEB 2010

FEB 2011

JAN 2011

New Construction

$4,937,600

$1,992,000

$4,751,000

Additions and Alterations

$4,614,000

$2,013,000

$1,149,600

Others

$328,400

$148,800

$133,000

Total

137

108

100

$9,880,000

$4,153,800

$6,033,600

Source: City of Montgomery Building Department

Building Valuations

Montgomery Business Journal May 2011

FEB 2010

Airline Fares

Hyundai Sales

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

VEHICLE

March 2011

March 2010

YTD 2011

YTD 2010

Montgomery

Birmingham

Atlanta

Accent

5,739

4,233

14,487

15,288

Baltimore (BWI)

$223

$163

Sonata

22,894

18,935

51,878

31,747

Boston (BOS)

$278

$265

$188

Elantra

19,255

8,225

41,203

23,881

Charlotte, NC (CLT)

$118

$143

Chicago (ORD)

$253

$256

$193

5,701

9,548

14,392

24,716

Cincinnati (CVG)

$330

$268

$208

199

225

522

698

Dallas/Ft Worth (DFW)

$302

$282

$223

4,508

3,084

10,713

8,041

Denver (DEN)

$348

$324

$253

Veracruz

672

607

1,809

1,561

Detroit (DTW)

$253

$364

$158

Genesis

2,664

2,145

6,888

5,577

Houston (HOU)

$368

$268

$213

Equus

241

N/A

728

N/A

Indianapolis (IND)

$233

$138

Total

61,873

47,002

142,620

111,509

Las Vegas (LAS)

$421

$375

$318

Los Angeles (LAX)

$355

$309

$273

Memphis (MEM)

$411

$388

$153

Miami (MIA)

$322

$298

$188

Nashville (BNA)

$258

$158

$351

New Orleans (MSY)

$288

$188

$148

New York (JFK)

$293

$326

$233

Orlando (MCO)

$248

$237

$188

Philadelphia (PHL)

$363

$306

$183

Pittsburgh (PIT)

$253

$158

St Louis (STL)

$248

$173

$178

Seattle (SEA)

$438

$348

$288

$1,602

$1,426

$1,461

Tampa (TPA)

$328

$235

$188

Washington DC (DCA)

$293

$283

$233

Destination

Seoul, Korea (SEL)

Santa Fe Azera Tucson

Source: Hyundai Motor America

Date of travel: May 17-22, 2011. Date of pricing: April 10, 2011. Source: travelocity.com

Sales Tax Collections March 2011

March 2010

Year over Year % Change

YTD 2011

YTD 2010

Year over Year % Change

Montgomery County

$3,098,921

$3,061,962

1.21%

$9,865,057

$9,618,307

2.57%

City of Montgomery

$7,122,290

$6,882,154

3.49%

$22,743,174

$21,650,588

5.05%

$59,575

$145,461

-59.04%

$379,848

$472,791

-19.66%

$567,454

$558,232

1.65%

$1,804,672

$1,808,837

-0.23%

$1,132,192

$1,219,979

-7.20%

$3,764,561

$3,660,039

2.86%

Elmore County

$399,665

$673,177

-40.63%

$1,220,800

$2,203,011

-44.58%

Wetumpka

$438,800

$414,027

5.98%

$1,346,125

$1,310,520

2.72%

Millbrook

$438,402

$443,738

-1.20%

$1,389,811

$1,376,951

0.93%

Pike Road Autauga County Prattville

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook; Note: YTD numbers are January 2010 thru current month; * Did not receive this months numbers.

May 2011 Montgomery Business Journal

Montgomery Regional Airport March 2011

March 2010

Year over Year % Change

YTD 2011

YTD 2010

Year over Year % Change

Air Carrier Operations

1,042

1,016

2.6%

2,894

2,796

3.5%

Total Operations

6,388

6,106

4.6%

16,211

16,319

-0.7%

Enplanements

15,555

15,457

0.6%

41,312

40,563

1.8%

Deplanements

15,317

15,532

-1.4%

41,120

40,501

1.5%

Total Passengers

30,872

30,989

-0.4%

82,432

81,064

1.7%

Source: Montgomery Regional Airport (MGM) Dannelly Field

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

$263M

(-$35M)

(-$0.53)

(-$0.27)

$292.7M

(-$36M)

Revenie fell 10%

$1.2B

$113.4M

$1.05

$0.98

$1.1B

$88.4M

Online sales increased 27%

AnnTaylor

$515.3M

$8M

$0.14

$0.17

$469.1M

$41,000

Changes name to Ann Inc.

Hibbett Sports

$173.2M

$12.5M

$0.44

$0.43

$166.8M

$11.8M

Revenue rose 4%

Stein Mart

$336.7M

$18.8M

$0.42

$0.21

$341.8M

$2.7M

Profit surged sevenfold

Ulta Salon, Cosmetics & Fragrance

$473.7M

$30.1M

$0.49

$0.44

$396.4M

$20.2M

Profit jumped 49%

$303M

$49.5M

$1.05

$1.00

$274.4M

$42.1M

Men’s clothing sales drive 10% revenue gain

$227.3M

$7.9M

$0.27

N/A

$220.9M

$7.3M

Revenue increased 3%

Best Buy

$16.3B

$651M

$1.62

$1.84

$16.5B

$779M

International revenue up 4% to $4.1B

GameStop

$3.7B

$237.8M

$1.56

$3.5B

$215.9M

$292.6M

(-$28M)

(-$0.14)

(-$0.18)

$315.9M

$4.1M

Plan to close 90 to 100 stores

$18.5B

$739M

$0.80

$17B

$669M

Filled 205M prescriptions in quarter, an increase of 6.9%

Sonic Corp.

$113.5M

$4.3M

$0.07

$0.03

$113.3M

(-$600,000)

Repaying debt early

Pier I Imports

$426.6M

$57.1M

$0.48

$0.47

$396M

$34.5M

Profit climbed 65%

Rite Aid

$6.5B

(-$208M)

(-$0.24)

$6.5B

(-$210.6M)

Bed, Bath & Beyond

$2.5B

$283.5M

$1.12

$0.97

$2.2B

$226M

Sales rose 11.6%

$318.3M

$40.9M

$1.47

$1.44

$279.3M

$35.3M

Revenue increased 14%

$2B

$151.7M

$1.08

$1.05

$1.9B

$134.8M

Olive Garden up 4.3% to $907M

$575.8M

(-$30.4M)

(-$0.26)

(-$0.10)

N/A

(-$28M)

Revenue rose 11% at Lane Bryant

$485.6M

$8.6M

$0.22

$0.21

$473.1M

$5.8M

NAME

Pacific Sunwear Williams-Sonoma (Pottery Barn)

The Buckle Cato

Talbots Walgreen

JoS. A. Bank Clothiers Darden Restaurants (Red Lobster, Olive Garden, LongHorn Steakhouse)

Charming Shoppes (Lane Bryant)

Fred’s

Montgomery Business Journal May 2011

NOTABLE

E-commerce and digital products spark gains

Expects full-year loss of $370M to $560M

Profit jumped 48%

As energy costs rise and budgets continue to tighten, it is important to partner with a proven company that can assist you in finding ways to improve your companyâ&#x20AC;&#x2122;s (HVAC) environmental condition, deliver energy savings and reduce the overall costs related to owning and operating your facility. CAPITAL REFRIGERATION is the largest and most experienced company in Central Alabama and our mission is to provide comprehensive solutions to help you control and reduce costs while effectively managing the operations of your HVAC systems. Our programs have helped many local companies save up to 27% annually! Some of the realized benefits of our programs include: improved comfort conditions within the facility, extended life of your operating systems, reduction in major breakdowns and increased productivity which results in improved cash flow. We will work with you to find a logical solution from an economical and mechanical view through a complete assessment of your facilityâ&#x20AC;&#x2122;s operating system, evaluate associated costs and provide opportunities to enhance your current conditions.

CAPITAL REFRIGERATION COMPANY, INC. A Comfort Systems USA Company

Montgomery, AL (334) 263-0201 Auburn, AL (334) 887-2262

Post Office Box 79 Montgomery, AL 36101