Airbus expanding in Alabama, adding 1,000 jobs
The space industry is expanding in Alabama, Gov. Kay Ivey said. The governor was in Mobile on Monday afternoon to announce Airbus is adding to its aerospace manufacturing facility and will create more than 1,000 new jobs in the coming years. The company is planning to add a third production and final assembly line at the facility as it plans to increase production on its A320 family of single-aisle passenger aircraft. “It’s wonderful to see Airbus continue to grow its only U.S. airliner manufacturing operation with another expansion in Mobile,” the Republican governor said in a release. “This growth is made possible by the company’s skilled workforce in Alabama and our commitment to developing a pipeline of future aerospace workers.” Airbus already employs 1,200 at the Mobile production facility, according to the release. The announcement comes just one week after the aerospace company said it plans to increase global production on the jets, which features the new 350,000 square-foot production line addition in Mobile as part of its plan. “The fact that Mobile will lead our unprecedented global production rate increase in coming years is a tribute to the world-class labor force in Alabama,” C. Jeffrey Knittel, chairman and CEO of Airbus Americas, said in the release. “I’m so proud of our Mobile employees for proving through years of hard work what Alabama is capable of, and I’m also immensely grateful to state leadership for making Alabama such a great place to invest and do business.” According to the release, the state is focusing workforce development and education efforts to work on recruitment and training initiatives to construct a pipeline for jobs, said Ed Castile, director of AIDT who also serves as secretary of the Alabama Department of Commerce. “Airbus has been an extraordinary partner as we work together daily to help change people’s lives,” Castile said in the release. “Airbus provides incredible career opportunities, and we have the awesome opportunity to help them find their team and assist with training.” According to the release, AIDT said it will widen its Aviation Training Center, which is located in Mobile at the Aeroplex at Brookley. The 36,500 square-foot facility, which opened in 2014, will aid Airbus production in place, Castile said. The organization plans to increase apprenticeship programs to support the company’s training programs at Flight Works Alabama. Focused projects include FlightPath9 and We Build It Better. Dual enrollment will be accepted at area schools, according to the release. Flight Works Alabama, which is located near the production facility, provides education in aerospace with a goal of drawing in future aviation workers to the 15,000 square-foot facility, the release says. The facility targets high school seniors to provide information for those students who want to work in the industry, according to the release. The We Build It Better focuses on providing classroom kits and interactive programs that will help teachers to expand creative capacity of students. Airbus, according to the release, began production of the A320 aircraft in 2015 and launched production for the A220 single-aisle passenger jets in 2019. A new production line for the aircraft also opened that year. The company has invested more than $1 billion into the plant, the release said. Republished with the permission of The Center Square.
Airbus posts profit, plans new jet assembly line in Alabama
Airbus said Wednesday that its profit in the first three months of 2022 more than tripled to 1.22 billion euros ($1.28 billion), helped by an increase in aircraft deliveries as airlines recover from the worst of the pandemic. Airbus said it plans to speed up production of its A320 family of planes that compete with Boeing 737s to 75 per month by 2025. To hit that rate, Toulouse, France-based Airbus will build a second final assembly line at its plant in Mobile, Alabama, CEO Guillaume Faury told reporters. The ramp-up in A320 production builds on a current Airbus goal to build 65 A320s a month by the middle of 2023. The company hopes to take advantage of strong demand for short- and medium-range planes. Boeing is also trying to churn out more 737 Max jets but is producing only about 30 a month. Richard Aboulafia, an analyst for the consultant AeroDynamic Advisory, said Airbus’ aggressive plans should worry the European company’s rival, Chicago-based Boeing Co. “The market for single-aisle jets is extremely strong, and the A321neo is doing particularly well,” Aboulafia said. He said Airbus’ objective is to gain 70% of that market, leaving only 30% for Boeing, “and they just might get there.” While it is forging ahead with ambitious production plans, Airbus suffered a setback in building a new plane, the A321 XLR. Airbus now expects the plane to begin carrying passengers in early 2024, not late 2023. Airbus has encountered more difficulty than it anticipated in meeting certification requirements set by Europe’s aviation regulator. The market for “narrowbody” planes like the A320 and 737 families is much stronger than demand for bigger, two-aisle “widebody” planes that are mostly for long-haul international flights — a segment of the travel market that has been slower to recover. Some analysts question whether the supply chain is strong enough to let Airbus hit production targets. Airbus officials said on a call with analysts that suppliers have assured the company they can produce the necessary parts. Airbus said, however, that Russia’s invasion of Ukraine and the resulting ban on Russian imports has increased the company’s exposure to supply-chain disruptions. Before the sanctions, the company used titanium from Russia in aircraft parts. In the first quarter, Airbus delivered 142 airline planes, up from 125 a year ago. Revenue rose 15% from a year earlier, to 12 billion euros ($12.645 billion). The company stood by its targets of delivering 720 airliners this year and producing 5.5 billion euros ($5.8 billion) in adjusted profit before taxes, even with rising risks due to the “complex geopolitical and economic environment,” Faury said. Republished with the permission of the Associated Press.
Airbus Alabama facility in line to build tanker aircraft with Lockheed Martin
The Airbus manufacturing facility in Mobile is poised for potential growth, thanks to plans announced Monday by the aerospace company and Lockheed Martin to collaborate on a refueling tanker aircraft if the partners win an Air Force competition. In a news conference at its Alabama facility, Airbus said it would begin building A330 aircraft in Mobile that would be converted into a tanker outfitted for military use at Lockheed Martin’s plant in Marietta, Georgia. Lockheed Martin — which also has a major presence in Alabama — provided details in an announcement released Monday morning. The tanker aircraft, called the LMXT, would represent a significant new chapter for the Alabama Airbus facility, where the company builds A320 and A220 passenger jets. The $1 billion factory at the Mobile Aeroplex at Brookley employs about 1,000 people. “Establishing this production work in Alabama and Georgia confirms Lockheed Martin’s commitment that the LMXT will be built in America, by Americans, for Americans,” said Lockheed Martin Chairman, President and CEO James Taiclet. “The LMXT will strengthen global security by enabling our U.S. service members to carry out their most critical missions at extended ranges. “At home, the LMXT will strengthen job growth and manufacturing by drawing on the experience and talents of a high-tech American workforce in two states that are proven leaders in aviation,” he said. Lockheed Martin and Airbus plan to compete for a new contract from the Air Force for aerial refueling tankers as part of a competition set to begin later this year. “Today’s announcement further cements Alabama’s reputation for excellence in the aerospace industry,” Gov. Kay Ivey said. “We have a world-class workforce making Mobile a top city for manufacturing and innovation, and we are excited to welcome the Lockheed Martin LMXT to Brookley. “This state-of-the-art aircraft is the right plane for the war fighter, and we’re thrilled to have it built in Alabama.” Ivey joined Airbus officials and local leaders at the announcement ceremony at the Brookley facility. Lockheed Martin scheduled a formal announcement at its Georgia facility later in the day. “This partnership between Lockheed Martin and Airbus brings together two titans in the aerospace/aviation sector,” said Greg Canfield, secretary of the Alabama Department of Commerce. “It also heralds a new shared synergy in the military aviation space between the state of Alabama and the state of Georgia as Airbus will assemble the well-proven A330 jet aircraft in Mobile and Lockheed Martin will militarize the jet, transforming it into the LMXT. “From the Alabama perspective, this signifies the potential of a significant expansion of Airbus’s activities in Mobile and could elevate Alabama’s critical role in our national defense,” Canfield said. For France-based Airbus, Monday’s announcement represents its second attempt to provide the Air Force with an aerial refueling tanker, made in Mobile. In 2011, Airbus was part of a winning team for the first phase of the contract, but the decision was reversed and the contract awarded to Boeing. Airbus later began producing passenger aircraft at the Brookley site. Its tanker aircraft, based on the A330-200, has been ordered by NATO, Australia, France, the United Kingdom, and several other nations. “Over our 50-year history in the U.S., some of our proudest moments have come from supporting our American service members,” said C. Jeffrey Knittel, chairman and CEO of Airbus Americas. “Our U.S. workforce, which is more than 35% military veterans, is eager to see an Air Force tanker join the fleet of Airbus aircraft flying for the U.S. Army, National Guard, Navy, and Coast Guard.” Bethesda, Maryland-based Lockheed Martin’s presence in northern Alabama spans more than five decades, with a concentration in the rotorcraft and hypersonics sectors. More than 2,600 Lockheed Martin employees live and work in Alabama. In October, Lockheed Martin opened an advanced production facility in Courtland focused on hypersonic strike production. Our LMXT offering for the @usairforce will be built in Georgia and Alabama and extend our 60+ year history of delivering tankers to U.S. and global operators. Watch for more on how our proven, ready solution will fuel future missions. pic.twitter.com/jdtgGPrlEV — Lockheed Martin (@LockheedMartin) January 31, 2022 “Alabama Power was involved in supporting the original tanker project that unfortunately never came to fruition,” said Alabama Power Mobile Division Vice President Patrick Murphy. “Over the last 10 years, Alabama Power has partnered with the Alabama Department of Commerce and Team Mobile to strategically support the growth of Airbus and its supplier base. Alabama Power’s Mobile Division and our corporate Economic Development group have worked steadily to lay the framework for Airbus and Lockheed Martin to be successful in this project and we will continue to lend our support as the project evolves.” This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.
Airbus set to deliver first Alabama-made A220 jetliner, marks five years in Mobile
Since opening a plant in 2015 in Mobile, Airbus has used it to make more than 180 planes from its other narrow-body family – the A320.
New $17 million advanced manufacturing training center coming to Alabama
The facility is designed for students, incumbent workers and people looking for a career change.
Airbus Adding 275 Jobs at Mobile Facility
The expansion will cost $40 million.
Airbus defies naysayers with Alabama plant for new jet
Airbus SE has broken ground for a new factory in Mobile, Alabama, defying predictions by archrival Boeing Co. that the plant would never be built. By midyear, mechanics will begin assembling the first American-made A220, a single-aisle jetliner developed by Bombardier Inc. and taken over by Airbus last year. Delivery of the initial plane with made-in-the-USA label is slated for next year. The new factory caps a dizzying turnaround for the Canadian-designed aircraft formerly known as the C Series, which Airbus rescued in 2018 after working for years to stymie sales. Bombardier turned to the European planemaker after Boeing rejected overtures. The U.S. aerospace giant then waged a high-profile and ultimately unsuccessful campaign to slap duties on imports of the jets by Delta Air Lines Inc. “That plane with our Airbus brand, with our support, our procurement and our sales is a game-changer,” said Jeff Knittel, Airbus’s Americas chief. Boeing spat In November 2017, Boeing at the height of the trade spat argued in a letter to U.S. Commerce Secretary Wilbur Ross that Airbus and Bombardier were “extremely unlikely ever to actually establish a C Series assembly line in Alabama.” Building a new factory would “make no economic sense,” the Chicago-based company said, contending there were too few orders to support a second production facility beyond the existing one in Mirabel, Quebec. Airbus has been shoring up sales and production of the jetliner since taking control over the unprofitable C Series program on July 1. The economic case once questioned by Boeing has grown stronger after a flurry of recent deals expanded the backlog of unfilled A220 orders to 480 aircraft. The initial sales and a top-up order by Delta show that there is ample demand to support a second factory in Mobile, Knittel said. Airbus is in discussions with several U.S. customers, he said, declining to provide specifics. “The trendline is terrific,” he said. “I am not concerned about filling the backlog.” Final assembly of the A220 jets in the U.S. “is a vital selling point for most U.S.-based customers,” Airbus said. Even so, Airbus and Bombardier plan to build the first 40 A220s ordered by Delta in Mirabel. Airbus is looking to achieve a “significant double-digit’’ reduction in production costs of the A220, said Philippe Balducchi, who runs the partnership with Bombardier. “The targets we have in our plan are achievable,’’ while conceding, “they are not easy.” The desired savings likely represent about $3 million per plane, according to Benoit Poirier, an analyst at Desjardins Capital Markets. In a twist, the new Airbus factory will be modeled on the production system that Bombardier created in Mirabel rather than mimic a neighboring A320 plant in Mobile, said Florent Massou, head of the A220 program. That’s unexpected, given the mass-production techniques that Airbus and Boeing have forged as they push single-aisle jet output to record-high levels. When Boeing took control of McDonnell Douglas Corp.’s MD-95 program following the companies’ 1997 merger, for example, engineers created an elaborate cable system to move jets and copy the moving line created for the 737 program. Tripling output The jigs, tooling and robotics at Mirabel are all cutting-edge, part of a lean production system that will eventually make 10 of the aircraft a month. But the engineers’ desks scattered around the factory floor hint at the problem-solving needed to triple output by the mid-2020s. “Technically, the production processes haven’t changed,” Massou told reporters at Mirabel this week. Rather than changing out equipment, Toulouse, France-based Airbus has focused on how work is organized to make sure that unfinished tasks aren’t handed over to workers downstream, while training mechanics to be more efficient. The Alabama final assembly line will look “exactly like this,” Massou said Jan. 14, from a balcony overlooking the Mirabel factory floor, where two lines of A220s were slowly taking shape. That’s so workers at the two factories can share the tribal knowledge that comes with repeating tasks – the learnings that drive down cost and speed production times for aircraft, he said. Boeing-Embraer Including the new factory, Airbus’s total investment in Mobile will approach $1 billion, Knittel said. Bombardier has committed to providing as much as $700 million in funding to the A220 partnership through 2021, Chief Financial Officer John Di Bert said last month. The figure includes a commitment of $350 million for 2019. Airbus and its partners are investing $300 million in the Mobile facility against the uncertain economic fallout from Brexit, and the emerging competitive threat of a joint venture that will give Boeing control of rival aircraft made by Brazil’s Embraer SA. “It’s sometimes hard to predict the future, but it didn’t take a genius” to anticipate the Boeing-Embraer tie-up, Airbus Chief Executive Officer Tom Enders told reporters. “We’re helped by the fact that we have by far the best aircraft in the A220.” (Contact the reporters at jjohnsson@bloomberg.net and tomesco@bloomberg.net.) Reprinted with permission from The Alabama NewsCenter.
Airbus to invest $300 million on new Mobile plant, will create over 400 new jobs
Governor Kay Ivey on Wednesday joined leaders of Airbus, top local officials and others at the Mobile Aeroplex at Brookley for a groundbreaking ceremony to launch construction of the company’s new A220 aircraft manufacturing facility. The plane-maker will invest $300 million and create 400 jobs in the new facility located in Mobile, Ala., which will sit beside an existing assembly line for its A320 passenger jet. The new assembly line will satisfy the strong and growing U.S. demand for the A220 aircraft, the newest offering in Airbus’ commercial aircraft product line, and create 432 full-time jobs in Mobile. “This is a great day for Mobile and for Alabama,” Ivey said. “Airbus’ growth plans will not only create new jobs for Alabamians but also strengthen the bonds that have developed between the global aerospace company and our state. Alabama has a long history in flight and, as this project shows, a bright future in the aviation industry.” Airbus CEO Tom Enders led the celebration and welcomed attendees including Airbus and other industry executives, Airbus manufacturing employees, state and national dignitaries, and local community leaders. Jeff Knittel, Chairman and CEO of Airbus Americas, said that Airbus’ expansion in the United States reflects the company’s growing partnerships with customers, as well as with American supplier-partners and the communities in which the company operates across the U.S. “Our partnerships are growing again with the addition of an A220 manufacturing facility that will employ some 400 more employees at full rate,” Knittel explained. “Together we’ve already put Mobile on the map in the world of global aviation, and together we are making a new mark for the future.” Production timeline Aircraft production is planned to begin in Q3 2019, with first delivery of a Mobile-assembled A220 aircraft scheduled for 2020. The new A220 production facilities will be complete by next year. Greg Canfield, secretary of the Alabama Department of Commerce, said that the A220 assembly line project represents an important milestone for the state’s robust and expanding aerospace sector. “Airbus’ decision to launch production of A220 aircraft at a new assembly line in Mobile will act as a powerful catalyst for sustained growth in an industrial sector that is key to Alabama’s future,” Secretary Canfield said. “Airbus’ expanding presence in the Mobile aerospace cluster will spark significant job creation and spur additional aerospace investment in the region for many years.”
AIDT to assist Airbus in hiring 600 new workers for Alabama growth
Airbus said it is working with AIDT to seek candidates to fill the first manufacturing positions at a new assembly line for A220 aircraft at the company’s production facility in Mobile. In addition, Airbus said it is hiring for production positions at its existing A320 Family aircraft manufacturing line on its Alabama campus. Altogether, Airbus plans to add 600 new employees in Mobile over the next 18 months. Open positions on both lines include aircraft structure/installation mechanics, aircraft cabin furnishings installers and aircraft electricians. Successful candidates for all positions will participate in several weeks of preparation at AIDT, the state’s primary workforce development agency, in a combination of classroom instruction and on-the-job training. “Airbus’ growth plans in Alabama underscore the strengths of the talented workforce that has already assembled more than 100 A320 family aircraft at the Mobile manufacturing facility,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Alabamians take pride in their work, and building A220 aircraft in Mobile will be another major accomplishment for the state’s workforce.” For a full job description of all the positions and to apply, go to https://airbususmanufacturing.applicantpro.com/jobs/. AIDT’s contribution AIDT has already played a major role in helping Airbus assemble and train a workforce at the company’s only U.S. manufacturing facility. In 2014, AIDT, part of the Alabama Department of Commerce, opened a $7 million training facilit ynear the Airbus campus in Mobile. “The addition of the new Airbus A220 family of aircraft in Mobile is proof that Alabama is well positioned with its workforce training to meet the needs of manufacturers all over the world,” said Ed Castile, director of AIDT and deputy secretary of the Alabama Department of Commerce. “AIDT has worked with Airbus since the beginning, and we’re honored to continue our support,” he said. “Congratulations to Airbus and Bombardier. We’re proud that they chose to build this next-generation aircraft here.” Airbus and Canada’s Bombardier finalized plans last year to form a joint venture to produce Bombardier’s C Series passenger jet, now called the Airbus A220. The new A220 production facility will be at the Mobile Aeroplex at Brookley industrial complex, adjacent to Airbus’ A320 Family production line. It will build aircraft for U.S.-based customers. The assembly line, which will create more jobs and further strengthen the aerospace industry, is part of Airbus’ strategy to enhance its global competitiveness by meeting the growing needs of its customers in the United States and elsewhere. A220 aircraft assembly is planned to start in 2019, using a combination of the existing and expanded Airbus facilities at Brookley to enable the first A220 delivery from Mobile to take place in 2020. A groundbreaking ceremony for the new facility is planned for next week. A permanent production process will be established upon completion of an A220 final assembly line building in 2020. Birmingham’s HPM was selected as program manager for the construction project, according to a November announcement. HPM served as program manager for Airbus’ $600 million project to build its first U.S. manufacturing facility in Mobile, with work beginning in 2013. Airbus delivered its first Alabama-made A321 aircraft in 2016. Airbus said some candidates for the new Alabama jobs will have the opportunity for on-the-job training with the company’s manufacturing team in Mirabel, Canada, before returning to Mobile. Production on the first A220 aircraft begins in the third quarter. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Airbus kicks off construction on Flight Works Alabama education center
Flight Works Alabama, a new aviation experience center near Airbus’ manufacturing facility in Mobile, is ready to begin its take off. Alabama Gov. Kay Ivey joined Airbus executives, city and county leaders from Mobile, and industry and educational partners in breaking ground for the hands-on instructional facility. In May 2017, Ivey announced plans to build the center, with a goal to bolster Alabama’s workforce development efforts and inspire young people to pursue careers in aerospace. Wednesday’s event officially launched construction of the facility, which is due to open in late 2019. “Success for Airbus, and any company, means we can’t just look at what we’re doing now; we need to look at what we need later — whether it be next year, next decade or the next five decades,” Airbus Americas Chairman and CEO Jeff Knittel said during the ceremony. “What Airbus and other companies in our industry need to be successful in the future is a skilled, knowledgeable workforce that is ready for that future. Flight Works will help us create that workforce in a fun, creative way,” he said. Exploring opportunities Flight Works Alabama will be an 18,000-square-foot experience center housing a large interactive exhibition area, classrooms, a collaboration room, a workshop, a restaurant and a gift shop. Situated near the campus of Airbus’ aircraft manufacturing facility at the Mobile Aeroplex at Brookley, the center will also be a gateway for public tours of Airbus’ A320 family assembly line. “Aerospace is a premier industry, filled with innovative developments and high-demand jobs, which are sought after by every state,” Ivey said. “Flight Works Alabama will become a hub to explore the opportunities of this industry. “As our state continues to grow this sector, we must show Alabamians all that the aerospace industry can offer them, today and in the years ahead,” she said. In addition to the experience center, the facility will host educational opportunities for adults seeking new or expanded skills in the industry. Nine education partners have signed on to provide these opportunities. They are Auburn University, Bishop State Community College, Coastal Alabama Community College, Embry-Riddle Aeronautical University, Troy University, Tuskegee University, University of South Alabama, University of Alabama and University of West Alabama. Industry and community sponsors for the project were also named at the ceremony, including the Airbus Foundation, Alabama Power Foundation, Conde Systems, the Mobile County Commission, Mott MacDonald, Hoar Program Management, Johnson Controls, Mech-Net, Pratt & Whitney, Safran and Snap-On. Airbus said other sponsorships are in development. Airbus launched production of A320 Family aircraft at the Mobile manufacturing facility in 2015. The $600 million complex now produces four aircraft a month and employs more than 400 people. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Checking in: What has Mobile Mayor Sandy Stimpson been up to?
Ever wonder what your mayor been up to each month? Sure you may have helped elect them, but what happens after that? Alabama Today has you covered. Each month we’ll highlight what the Yellowhammer State’s Big 5 mayors have been doing in an effort to hold them accountable and keep things more transparent. In the last month, Mobile, Ala. Mayor Sandy Stimpson has implemented several changes to the city, traveled to the United Kingdom on behalf of his constituents, and announced the launch of the city’s first bike sharing program among other things. Here’s what he’s been up to for the last month: July 12 The city of Mobile enhanced Three Mile Creek Trail; adding picnic tables, fitness zones, pet stations, and several other amenities. “These new amenities will encourage fitness, support recreation and educate our citizens on one of our most precious waterways,” Stimpson said in a press release. “Our goal is to link neighborhoods, businesses and residents across Mobile. Within a mile radius of this segment alone, there are 69,000 residents, 900 businesses and 3 hospitals. Three Mile Creek was once Mobile’s drinking water source before World War II, and now it can once again connect communities throughout the City of Mobile.” July 15 – 17 Stimpson attended the Farnborough International Air Show in London meeting with Governor Kay Ivey, and several airplane manufacturers about expanding in Mobile. “Our strategy this week is all about jobs! Our momentum is surging with Airbus and Bombardier expanding at Brookley,” Stimpson posted to his Facebook page. “We have a busy week of meetings and businesses are eager to learn more about Mobile.” July 23 Stimpson attended and spoke at a community meeting at Williamson High School on the Ladd Peebles Stadium. July 25 Stimpson spoke to the Mobile City Council about the Ladd Peebles Stadium, addressing the comments of the community to the council. “For years, the problems at Ladd Stadium have been kicked down the road for someone else to handle. It’s time for that to change,” Stimpson posted on his Facebook page. July 30 Stimpson announced the launch date of Mobile’s first bike sharing program, Limebike. “In a statement, Stimpson called for Mobilians to help make the bike share program a success,” the Associated Press reported. “He asked motorists to give cyclists plenty of room, and asked cyclists not to park their bikes in places that block vehicular or pedestrian traffic.” August 4 Stimpson hosted the fourth annual Mayors Cup, a full day of football, soccer, and track events for young people in the community. “I am extremely excited to welcome back the Mayor’s Cup this year. I look forward to seeing the local community come together for a fun day outdoors and enjoy one of our beautiful parks in the City of Mobile,” Stimpson said in a statement. “This event teaches our young people the important values of teamwork and sportsmanship. May the best man or woman win!”
Kay Ivey to Alabama economic developers: “Momentum is on our side.”
Alabama’s two main economic development leaders urged state economic developers to continue to evolve and advance to help keep the momentum Alabama has enjoyed in landing and expanding industry. Alabama Gov. Kay Ivey and Alabama Commerce Secretary Greg Canfield addressed the 2018 Summer Conference of the Economic Development Association of Alabama Monday. Both had much to brag about. Alabama’s economy has roared back since the Great Recession a few years ago to post the lowest unemployment in state history and some of the biggest names in business now — or soon will — have significant operations in the state. Gov. Kay Ivey addresses the 2018 EDAA Summer Conference from Alabama NewsCenter on Vimeo. Consider: Alabama unemployment in October 2009 was 11.8 percent. In May 2018, it was 3.9 percent. Alabama’s gross domestic product (a measure of total economic output) was 2.5 percent in 2009. In 2017, it was 3.3 percent. In 2017, the state announced economic development projects with $4.4 billion in capital investment that will create an estimated 15,456 jobs. Monday, AIDT, the state’s lead workforce training department, announced it is working a record number 135 projects with 30,000 jobs. Alabama Commerce Secretary Greg Canfield shared his cautious optimism with leaders at the Economic Development Association of Alabama summer conference. (Mike Tomberlin/Alabama Newscenter) “Times have gotten better. The strategy is paying off,” Canfield said. “But we’re not yet where we want to be.” Ivey credited economic developers at the local level across the state with helping achieve the success. “These jobs are in large cities like Mobile and Birmingham, but they’re also in smaller towns like Brewton and Bridgeport,” she said. “We’ve celebrated announcements and groundbreakings with companies like Google and Facebook and Boeing and with some growing companies, too, like Kimber Firearms and AutoCar. Y’all, momentum is on our side and I want Alabama to be every company’s first choice for their location.” Ivey said corporate CEOs from around the world tell her they are successful in Alabama because of the quality and productivity of their employees in the state. Part of keeping the momentum the governor talked about is gearing economic development toward the jobs and businesses of the future. “We’re really focused a lot on technology and innovation, the growth of entrepreneurship,” he said. “It’s really about growing the knowledge economy in Alabama that will support the industry that’s here.” Canfield said the state is about to get a major tool to work with in that regard. Alabama EPSCoR, which represents research universities and private institutions like Southern Research and HudsonAlpha, is close to unveiling a gamechanger. “EPSCoR is putting together and about to launch a digital database that’s searchable so that economic developers and site consultants and companies who want to be able to find out where they can link their product development and their own internal research with that of public universities or private research institutions, they will actually be able to go into this database and if they want to find something like who is doing research right now on composite materials, who is doing research on nickel alloys in the aerospace sector, who is doing additive manufacturing and powder alloy research in technology development? They can actually go in and be linked to the specific researchers doing that work, not just at the university level, but at the researcher level,” Canfield said. “So at the state level, we will be able to provide that connectivity. This will really help us advance economic development to the next level.” Canfield’s optimism is due, in part, to education at all levels of the state (K-12, community colleges and universities,) along with worker training initiatives working closely to complement each other’s efforts. “I think the state has never been better aligned in terms of workforce preparedness,” he said. “That terminology really includes everything from education – the academic side of education but also skills development and certifications – anything that’s industry-specific, industry-recognized and equips Alabamians with the right tools necessary to be able to do the right jobs.” With that alignment, Ivey wants to ensure education and worker training are looking ahead to what’s needed. “We’ve got a great workforce, but we have got to keep the pipeline full with folks trained with higher skills to meet the jobs that we know are coming, and some of them are already here,” Ivey said. Many of those next-generation jobs will be in aerospace. Ivey said the state delegation’s recent efforts at the Farnborough International Air Show are paying off. “Even more good news may be on the horizon for Alabama,” she said. “I’m proud of what Airbus and Bombardier are doing to finalize their plans to create a second assembly line in Mobile for the A220 series. And, also, Leonardo is still in the running to be awarded the contract from the United States Air Force to build the T-100 trainers. Y’all, if Leonardo is successful and gets that contract, there are going to be 750 new jobs in Macon County. That is huge.” Canfield, too, is hopeful for the state’s chances on the T-100 trainer. “I am so eager to hear positive news for Tuskegee and Macon County,” he said. Ivey said watching Alabamians get good-paying jobs is the true goal of economic development. “All of this good news gives me great hope about our fine state,” she said. “We all want Alabamians to be able to achieve their dreams, live in a safe environment, have a quality of life and create a reputation for the state of Alabama that is envied worldwide.” Greg Canfield at the 2018 EDAA Summer Conference from Alabama NewsCenter on Vimeo. Republished with the permission of the Alabama Newscenter.
