Alabama’s Commerce chief, Kay Ivey note economic development successes and challenges
Alabama has seen more than $40 billion in capital investment and the creation of more than 130,000 jobs since 2012.
New investment fuels aerospace job growth across Alabama
Momentum continues to build in Alabama’s aerospace industry, which is adding new investments and hundreds of jobs to produce innovative, in-demand products in communities across the state. In 2017 alone, there were announcements totaling nearly $690 million and 1,750 jobs. Those numbers increased the sector’s cumulative investment over the past seven years to almost $2.4 billion, along with 8,348 aerospace and defense jobs during the same time period. This year, there’s a hiring surge, as the plans become reality. And more jobs are on the way. At last week’s Farnborough International Airshow, defense contractor BAE Systems and Carpenter Technology Corp., a maker of premium metals and alloys used in the aerospace industry, announced expansions of their Alabama operations. Together, these projects will create more than 250 jobs in north Alabama. Meanwhile, growth plans are already in place for aerospace companies operating across the state. Airbus’ Alabama factory, for instance, is in linefor 600 new jobs, thanks to a planned second assembly line for the Bombardier C Series jetliner (renamed the A220), as well as a potential increase in the production of A320 Family aircraft. GE Aviation plans to double its 90-member Huntsville workforce in the coming year and increase to 300 when the new factory complex for silicon carbide materials reaches full production. The company is also adding workers at its Auburn facility, which mass produces a jet engine fuel nozzle using additive manufacturing, or 3-D printing technologies. Targeting growth Aerospace companies from around the world are seeing that Alabama offers plenty of advantages to help them expand their business, said Greg Canfield, secretary of the Alabama Department of Commerce. “From complex military weapons systems to innovative passenger aircraft, and many of the break-through technologies that power them all, Alabama is home to an impressive array of the industry’s leading products,” Canfield said. “How do we do it? In Alabama, we take partnerships very seriously. A company’s strategic vision and expertise, coupled with the skill and dedication of our highly trained workforce, is always a winning combination.” Canfield joined Gov. Kay Ivey and an Alabama team at Farnborough for appointments with executives of 16 aerospace companies, including Airbus, Boeing, Leonardo and GE Aviation. The talks were aimed at bringing home new investment and jobs in the aerospace sector. Aerojet Rocketdyne One of last year’s key announcements was Aerojet Rocketdyne’s $46.5 million, 800-job expansion project in Huntsville. The company is consolidating its Defense division headquarters and Rocket Shop advanced programs to the Rocket City, where it has had a presence for more than 50 years. It has also moved into a new office space at Cummings Research Park and is building a new Advanced Manufacturing Facility that will produce subassemblies and components for the AR1 rocket engine, composite cases for rocket motors, 3-D printed rocket engine components and other parts. James Ramseier, site leader for operations at the Huntsville Advanced Manufacturing Facility, said construction is about 60 percent complete and right on schedule. “We plan on opening that facility in December of 2018, and initially in 2019, we are going to go through product verification. In 2020, we will ramp up to full production,” he said. Ramseier said everyone in Huntsville, from major business groups to individual building inspectors, has been supportive and welcoming. “The culture here is, ‘Let’s all work together to help make you successful,’” he said. “It’s a pleasure working in an environment where people want you to succeed. “You don’t feel like a stranger. As soon as you move here, you’re part of the family.” Aerojet Rocketdyne’s hiring plans are moving forward as well, with support from Alabama’s top worker training agency. “AIDT is fantastic. We’re working with them every week on developing our training plans and material, and they have been outstanding to work with,” Ramseier said. Forging partnerships The company is also impressed with the ties between business and education in the community, said Bill Bigelow, chief of defense communications. “The partnerships here are very attractive to us,” he said. “We’re growing the future workforce, as we grow our presence here in Huntsville, partnering with Alabama A&M University, the University of Alabama in Huntsville and other area educational institutions, as well as the chamber of commerce and the mayor’s office.” Bigelow said the Tennessee Valley is clearly committed to bringing in the types of jobs and training programs that will grow a generational workforce. “The knowledge and the history in all things aerospace, missile-defense and industrial base operations is here, and Aerojet Rocketdyne wants to leverage that community expertise both now and well into the future,” he said. Republished with the permission of the Alabama Newscenter.
Report: 2017 projects generate nearly 15,500 new jobs across Alabama
Companies planning new facilities or expanding existing operations in Alabama announced nearly 15,500 new jobs and more than $4.4 billion in capital investment during 2017, according to a comprehensive report detailing economic development activity in the state last year. The 2017 New & Expanding Industry Report, released by Gov. Kay Ivey and the Alabama Department of Commerce, shows that key industrial sectors such as automotive and aerospace continue to expand. The important forest product and food production sectors also turned in strong performances last year. “I’m committed to creating high-paying jobs that transform the lives of Alabamians and bring new levels of prosperity to communities across the state,” Ivey said. “For Alabama to continue our recent success of job creation, it’s vitally important that we continue to pursue 21st-century jobs for our people. “Momentum is on our side, and I will continue leading the charge in helping every Alabama family achieve their goals,” she said. Key findings in the report include: Alabama’s economic development efforts resulted in securing 317 projects last year, resulting in 15,465 new and future jobs and $4.41 billion in new capital investment. Those totals exceed 2016’s figures – 14,707 jobs and $4.2 billion in investment. Jefferson led all Alabama counties in job growth from 2017 projects, with 2,200 anticipated jobs. Rural Dallas County led in new capital investment in 2017, with $556.2 million. Alabama attracted foreign direct investment from 16 countries, generating 3,391 new and future jobs, as well as more than $1.2 billion in investment. South Korea was the top source for jobs, with 1,216 anticipated positions. The momentum from a solid 2017 in economic development in Alabama has carried over into this year. Already in 2018, the state has landed major projects including a Toyota-Mazda auto assembly plant that will create 4,000 jobs in Huntsville and a Kimber firearms factory that will create 366 jobs in Troy. “We’re going to be energetically pursuing more of these projects because we want to bring jobs home to Alabama,” Ivey said. Goal: job creation Greg Canfield, secretary of the Alabama Department of Commerce, said the 2017 results outlined in the report align with the priorities of Accelerate Alabama 2.0, the state’s updated economic development growth plan. “Our economic development strategy has centered on developing longstanding relationships with high-caliber companies from the U.S. and around the world so that they will put down roots in the state and grow through expansions over many years,” Canfield said. “Our primary goal is to create top-quality jobs and meaningful opportunities for people all across the state.” The largest 2017 project, based on jobs created, was Aerojet Rocketdyne’s expansion in Huntsville. The California-based company is building a new manufacturing facility for its AR1 rocket engine and relocating many functions related to its defense business to Alabama, creating a total of 800 jobs. Other large job-creating projects included: Autocar announced plans to open an assembly facility for heavy-duty work trucks in Birmingham, creating 746 jobs. Walmart announced that it will open an import distribution center in Mobile with 550 jobs. Mercedes-Benz broke ground on a Global Logistics Center in rural Bibb County that will be staffed with 502 workers. (The automaker also announced plans for a battery plant, but the dimensions of that project are not yet final.) John Soules Foods plans to create 500 jobs in Chambers County as it expands its production capacity. Project breakdown A detailed look at the 2017 New & Expanding Industry Report shows that a majority of the projects involved expansions of existing facilities in Alabama. There were 256 expansion projects last year, involving $2.7 billion in capital investment and 8,367 anticipated jobs. The 61 projects involving new facilities are expected to create almost as many jobs – 7,098, according to the report. New capital investment tied to these projects approached $1.7 billion. Following Jefferson, the top counties for project-related job creation in 2017 were: Madison: 1,828 Montgomery: 1,056 Mobile: 797 Chambers: 585 Counties ranking behind Dallas for the most new investment were: Morgan: $516.3 million Madison: $492.2 million Mobile: $339.1 million Bibb: $281.5 million Republished with the permission of the Alabama Newscenter.
Alabama aerospace industry gains velocity with new investment
Alabama’s aerospace and aviation industry is recording a landmark year, with a major haul of project announcements that bring the promise of international prominence to communities and workers across the state. So far this year, aerospace companies have unveiled plans to invest at least $500 million and bring more than 2,200 jobs to Alabama in new facilities or expansions of existing operations. That follows another solid year of growth for the industry in 2016, when project announcements involved $260 million in new investment and 2,000 additional jobs. “Alabama has long been a major player in designing and manufacturing the most innovative, complex solutions to conquer skies and space, and we are continuing to shape the global industry today,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Companies around the world know our workforce has proven itself, time and time again, and that’s why they keep turning to this state to help solve modern industry challenges and achieve the latest groundbreaking work,” he added. Leonardo in Tuskegee One of this year’s major announcements came from global aerospace and defense firm Leonardo, which plans to build the T-100 jet trainer at Tuskegee’s Moton Field if it wins a U.S. Air Force contract for a next-generation training aircraft. The project calls for the creation of 750 jobs over a 10-year period beginning in 2019. The potential opportunity for Tuskegee and the surrounding area is huge, and it would add a new chapter to the region’s aviation legacy. Moton Field is where the legendary Tuskegee Airmen trained during World War II. Canfield led an Alabama delegation that last week met with Leonardo executives and toured a factory in Italy where the company manufactures jet trainer aircraft. The objective of the mission was to help advance preparations under way in Alabama for the development of the manufacturing facility at Moton Field. Rocket engines Other key 2017 announcements include a pair of new rocket engine factories in Huntsville. Blue Origin, the spaceflight company started by Amazon founder Jeff Bezos, plans to manufacture its BE-4 engine in a new $200 million, 342-job facility. At the same time, Aerojet Rocketdyne is expanding its Huntsville operation with plans for 800 jobs and a new manufacturing plant for its ARI rocket engine and other parts. The companies cite Alabama’s skilled workforce and industry prominence. “Alabama is a great state for aerospace manufacturing and we are proud to produce America’s next rocket engine right here in the Rocket City,” Robert Meyerson, president of Blue Origin, said at the time of the company’s project announcement. “The area’s skilled workforce and leading role in rocket propulsion development make Huntsville the ideal location for our state-of-the-art manufacturing facility.” Aerospace clusters Elsewhere in the state, more industry breakthroughs are on the horizon. GE recently selected Auburn University as one of eight universities in the world to participate in an innovative program focusing on 3-D printing research and education initiatives. Nearby, the GE Aviation plant in Auburn is using additive manufacturing to mass produce fuel nozzle injectors. The company says the nozzle is the first complex jet engine component produced with 3-D printing technology. And Airbus, which builds its A320 Family aircraft at its $600 million plant in Mobile, said last month that it will partner with Canadian manufacturer Bombardier to bring a new production line for Bombardier’s C Series passenger jets to Alabama. Aerospace has been an important contributor to Alabama’s economy for decades, and in recent years the state has emerged as a top location for companies that are global leaders in the industry, said Steve Sewell, executive vice president of the Economic Development Partnership of Alabama. “In addition to major industry clusters in Huntsville and Mobile, we now have aviation and aerospace-related companies providing advanced manufacturing and engineering jobs in communities throughout the state,” he said. “One of Alabama’s great strengths in aerospace is the diversity of sectors that are represented here, including aircraft assembly, rocket propulsion, precision component manufacturing, missile defense and maintenance, repair and overhaul.” Sewell said the latest aerospace projects planned for Alabama will further cement the state’s legacy in the sector. “The recent investments and the continued growth and success of the aerospace industry have enhanced Alabama’s reputation as a state that can support the most advanced level of manufacturing,” he said. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabam NewsCenter.
Scorecard: Alabama recruited more than 14,700 jobs in 2016
Companies announced plans for more than 14,700 new jobs and nearly $4.2 billion in capital investment in Alabama during 2016, according to an analysis prepared by the Alabama Department of Commerce that chronicles wide-ranging economic development activity across the state last year. The 2016 New & Expanding Industry Report, released today by Gov. Kay Ivey and the Commerce Department, provides a detailed look at 405 projects recorded in the state during another solid year of business recruitment and support. Since 2012, economic development activity in Alabama has attracted $24.5 billion in investment and nearly 90,000 jobs, according to Commerce Department figures. Exact totals for 2016 were $4.199 billion in capital investment and 14,707 new and future jobs. “The investments made by these companies mean jobs for the citizens of our state, and I’m committed to creating an environment where opportunity flourishes across Alabama,” she added. Diverse activity The 2016 report reflects another year of strong growth for two industries that are central pillars in the Accelerate Alabama 2.0 economic development blueprint — automotive and aerospace. Both sectors contributed to a record year for Alabama exports. Other segments of Alabama’s economy, ranging from forest products to alternative energy and corporate headquarters, also saw healthy project activity last year, according to the new report. Foreign companies accounted for nearly $1.6 billion in 2016’s new capital investment, or about 40 percent of the total, a figure in keeping with that of recent years. Austria was the top source of foreign direct investment last year, with projects valued at $666 million. “We’ve been very strategic in our approach to economic development in Alabama because we want to develop productive partnerships with companies from around the globe that will put down roots in our state and expand over time,” said Greg Canfield, secretary of the Alabama Department of Commerce. “We’re focused on creating high-caliber jobs and opportunities for hard-working people of our state,” he added. The momentum has carried over into 2017. Already this year, companies such as Aerojet Rocketdyne, Leonardo and Wal-Mart Stores Inc. have announced major economic development projects in Alabama. Together, these projects alone would create 2,000 jobs. 2016 rankings Here are snapshots from the 2016 scorecard for Alabama’s economic development team. Top projects, ranked by investment: Kronospan, an Austria-based maker of laminate flooring, announced a $362 million expansion of its Calhoun County facility. BC Foley LLC, a company created by the Poarch Band of Creek Indians, is investing $361 million to open the Owa amusement and entertainment complex in Baldwin County. Lenzing, another Austrian company, is investing $293 million to expand production of eco-fibers at its plant in Mobile. Top projects, ranked by job creation: BC Foley’s Owa complex will create 620 jobs. Lear Operations, an auto supplier, will create 535 jobs with an expansion in Tuscaloosa County. Aerospace giant Boeing Co. will add 470 jobs to its Alabama workforce as it expands activities including engineering and the production of missile components in Huntsville. Top counties, ranked by investment: Jefferson — $506 million Calhoun — $398 million Baldwin — $394 million Top counties, ranked by jobs: Montgomery – 1,704 jobs Madison – 1,548 Jefferson – 1,469 This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission of Alabama NewsCenter.
Aerojet Rocketdyne to build AR1 rocket engine, add 800 Alabama jobs in expansion
Aerojet Rocketdyne announced plans Monday to expand its presence in Huntsville with a new state-of-the-art manufacturing facility for the company’s AR1 rocket engine and the relocation of engineering, program management, and other jobs. Aerojet Rocketdyne’s overall growth plans for Huntsville call for the California-based company to add 800 jobs to support the U.S. space and defense programs for the next quarter century and beyond. As part of a strategic Competitive Improvement Program, Aerojet Rocketdyne previously selected Huntsville as the home of its Defense division headquarters and its Rocket Shop advanced programs. “We are two years into the first phase of our CIP affordability drive and the consolidation progress, and overhead cost reductions achieved to date have exceeded our expectations,” Aerojet Rocketdyne CEO and President Eileen Drake said. “We intend to build on this success by expanding our CIP-related consolidation efforts so we can deliver the value our customers demand and position our company for further growth.” New rocket engine Aerojet Rocketdyne has been developing the AR1 rocket engine since 2014 as a replacement for Russian engines used on the Atlas V rocket, which is assembled in Decatur by the United Launch Alliance. In addition, the AR1 is being advanced for use on the Space Launch System (SLS), NASA’s Mars rocket now under development at Marshall Space Flight Center in Huntsville. The AR1 production facility in Huntsville will include advanced functions such as additive manufacturing (3-D printing), composites fabrication, and research and development. The company expects the facility to be ready for production in mid-2019. “Huntsville’s legacy in the development of rocket propulsion systems makes it the ideal choice for Aerojet Rocketdyne’s AR1 rocket engine assembly center and its advanced manufacturing and engineering operations,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Aerojet Rocketdyne’s decision to base these cutting-edge activities in Huntsville is a powerful endorsement of the capabilities found there,” he said. The company said it plans to move all Defense-related program management, engineering and support positions to Huntsville by the end of 2018. Some positions at a Gainesville, Virginia, facility that is being closed will also move to Huntsville. “We believe these actions are essential for the performance of our business and the growth of the company. The results from this initiative will benefit our valued employees, customers and shareholders alike,” Drake said. ‘Rocket City USA’ Huntsville officials welcomed the company’s expansion news. “This project is another great example of our effort to diversify Huntsville’s economy with high-quality advanced manufacturing, and yet, Aerojet Rocketdyne is here because of Huntsville’s outstanding role in research and defense technology,” said Huntsville Mayor Tommy Battle. “This project works all facets of our economy by marrying R&D with advanced manufacturing. We are both rocket scientists and rocket builders,” he said. Madison County Commission Chairman Dale W. Strong said, “The announcement by Aerojet Rocketdyne today selecting Huntsville, Alabama, to build their rocket engines reaffirms we are and will continue to be Rocket City USA and our world will be better because of this decision.” Aerojet Rocketdyne has worked with Huntsville-based Dynetics on the AR1 rocket engine project. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission of Alabama NewsCenter.
Aerojet Rocketdyne to move 800+ jobs to Huntsville
A globally-recognized rocket and missile propulsion manufacturer is expanding its presence in Alabama. Aerojet Rocketdyne announced plans on Monday it will consolidate several facilities and relocate their operations to Huntsville, Ala. over the next two years. “We are two years into the first phase of our CIP affordability drive and the consolidation progress, and overhead cost reductions achieved to date have exceeded our expectations,” said Aerojet Rocketdyne CEO and President Eileen Drake. “We intend to build on this success by expanding our CIP-related consolidation efforts so we can deliver the value our customers demand and position our company for further growth.” Aerojet Rocketdyne plans to consolidate its Sacramento and Vernon, Cali. and Gainesville, Va. sites while centralizing and expanding its existing presence in Huntsville, Ala. with a new state-of-the-art manufacturing facility for AR1 engine production, Additive Manufacturing, Composites production and Research & Development. The site is expected to be ready for production in mid-2019. The company plans to close its Gainesville, Va. facility in the third quarter of 2018. Approximately 170 positions there will be relocated or eliminated with relocations planned to Huntsville and the company’s facility in Orange County, Va.. To accommodate the company’s consolidations, overall growth plans for Huntsville include the addition of approximately 800 jobs to support America’s space and defense needs for the next quarter century and beyond. “Huntsville’s legacy in the development of rocket propulsion systems makes it the ideal choice for Aerojet Rocketdyne’s AR1 rocket engine assembly center and its advanced manufacturing and engineering operations,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Aerojet Rocketdyne’s decision to base these cutting-edge activities in Huntsville is a powerful endorsement of the capabilities found there.” The AR1 is being developed to provide the United States with a new, world-competitive, state-of-the-art engine for launch vehicles and will end American dependency on Russian engines for national security and civil space launches. The company is currently developing and testing AR1 engine systems and is on schedule to deliver a certified engine in 2019 to meet the congressionally-mandated deadline to end U.S. dependence on foreign engine suppliers. “This project is another great example of our effort to diversify Huntsville’s economy with high quality advanced manufacturing, and yet, Aerojet Rocketdyne is here because of Huntsville’s outstanding role in research and defense technology,” stated Huntsville Mayor Tommy Battle. “This project works all facets of our economy by marrying R&D with advanced manufacturing. We are both rocket scientists and rocket builders.” At the company’s Sacramento site, Defense-related program management, engineering and related support positions will be moved to the company’s Huntsville, Alabama, facilities, home of Aerojet Rocketdyne’s Defense headquarters and Rocket Shop℠ Defense Advanced Programs, by the end of 2018. “Aerojet Rocketdyne’s announcement today is excellent news for our state,” added Sen. Richard Shelby. “North Alabama remains the nation’s epicenter for aerospace and defense research, development, and production. I am pleased to see Aerojet Rocketdyne investing and growing in Alabama, and I look forward to working with them and other businesses to continue boosting economic development opportunities.”
Aerojet Rocketdyne to establish headquarters in Huntsville
Aerojet Rocketdyne announced Monday that it will establish its new Defense Business headquarters in the Rocket City. Huntsville, Alabama, will be home of the new HQ as a result of a significant reorganization that will be consolidating the company’s six business units into the two units: Space and Defense. “Today’s reorganization is another crucial step in our strategic journey to enhance the efficiency of Aerojet Rocketdyne and improve the company’s competitive posture,” said Aerojet Rocketdyne’s President Eileen Drake. “This move within our aerospace and defense reporting segment better aligns our business units with our operating capabilities and customers, increases accountability at the management level, and further streamlines our business operations by reducing spans and layers in the organization, while achieving significant cost savings for our customers and the country.” The move is expected to create 40 jobs between August 2016 and August 2017. Huntsville Mayor Tommy Battle released a statement expressing his excitement for the new headquarters. “Aerojet Rocketdyne has been a strong business partner in Huntsville for the past eight years, and today’s announcement celebrates the company’s expansion as a result of our dynamic aerospace and defense community,” Mayor Battle said. “We look forward to continued growth as a result of this news, and we are proud of Huntsville’s global position as the place to be for innovation and strategy in rockets and defense.” Gov. Robert Bentley said the news sends a strong message about the robust capabilities of Alabama’s aerospace sector. “Aerojet Rocketdyne’s decision to base its Defense Business Unit in Huntsville sends a strong message about the robust capabilities of Alabama’s aerospace sector,” Governor Bentley said. “Alabama has a long and distinguished history with the aerospace industry and I am pleased to see Aerojet Rocketdyne move its Defense Headquarters to north Alabama. The growth in Madison County is a result of technology and innovation, and I excited to know this new project will present more high-skilled and high-paying jobs to Alabamians.” U.S. Sen. Richard Shelby also weighed in on the news. “Aerojet Rocketdyne’s announcement today is great news for Alabama,” Shelby said in a news release. “I have worked closely with the company for years, and I am proud of its expanding presence in Huntsville. North Alabama plays a leading role in supporting our nation’s space and defense needs, which makes Aerojet Rocketdyne a natural fit for the area. I am confident that Aerojet Rocketdyne will build on its history of producing cutting-edge rocket technology and continue to flourish in the state of Alabama.” The exact location of the new headquarters is yet to be determined, but it will be within Huntsville’s Cummings Research Park. “Cummings Research Park is proud Aerojet Rocketdyne chose to locate in the Park years ago and now expand in the Park with this latest announcement,” explained Cummings Research Park Director Erin Koshut. “We look forward to working closely with them and their employees to build a vibrant community in CRP, one that is driven by science and powered by people.”
