Alabama business roundup: Headlines from across state – 2/20/17 edition
What company is downsizing again in the Yellowhammer State? Who holds the key to auto industry boom in the state? Which Alabama company has purchased a defunct power plant in Maine? Answers to the these questions and more in today’s Alabama business roundup. Alabama NewsCenter: Mercedes holds key to Alabama auto industry boom In the 20 years since Mercedes-Benz began producing the M-Class SUV in Tuscaloosa County, Alabama’s auto industry has roared to life in communities across the state. Vehicle production has steadily risen to make Alabama one of the Top 5 auto-producing states in the U.S. Last year, for the second year in a row, workers at Mercedes, Honda and Hyundai combined to build more than 1 million vehicles. Jobs are on the rise, too, growing by more than 200 percent over the past 15 years. In 2016, there were 38,730 jobs at auto, engine and motor parts manufacturers in the state, up from 12,760 in 2001, according to data supplied by the Economic Development Partnership of Alabama (EDPA). The average annual earnings of all of those jobs combined is $70,680. Meanwhile, the economic output of the state’s auto and parts manufacturing industries has grown from an estimated $1.1 billion in 1997 to about $6.2 billion by 2014, according to the Center for Business and Economic Research at the University of Alabama. On Feb. 14, 1997, the day the first customer-ready M-Classes began rolling off the assembly line, no one dreamed where it would lead, said Steve Sewell, EDPA executive vice president. “The growth and economic impact have far exceeded our expectations, and the industry’s extraordinary success has earned the state a reputation as a top business location,” he said. ‘Fertile ground’ While Mercedes started it all, the industry would not be what it is without the major contributions of Honda and Hyundai, which built their own auto assembly plants in the state in the years following the M-Class debut, as well as Toyota’s engine plant and hundreds of suppliers and support businesses. But Mercedes’ decision to build its first U.S. manufacturing plant in Alabama was a signal seen around the world that the state was fertile ground for new business opportunities, said Greg Canfield, secretary of the Alabama Department of Commerce. “That decision was the key that opened the doors to an industry that continues to create new opportunities today,” he said. “It was a vote of confidence from a premium automaker with a long and storied history of innovation and excellence that saw great potential in Alabama.” That signal is still reverberating globally, as Mercedes has completed multiple expansions at its Tuscaloosa County operations, Canfield said. Today, the facility, known as Mercedes-Benz U.S. International Inc., has seen investment valued at more than $4.5 billion and has the capacity to produce 300,000 vehicles per year. Another expansion, which includes a new body shop, major enhancements to the SUV assembly shop and upgraded logistics and IT systems, is in the works. The project is valued at $1.3 billion and will create 300 jobs. “Mercedes’ initial vote of confidence in Alabama has been proven correct time and time again, thanks to the company’s strategic vision and the skill and dedication of their workers here who have helped them achieve and surpass those goals,” Canfield said. ‘Transformational impact’ Alabama’s business recruiters often say the Mercedes success story helps in courting other companies, and not just those in the auto industry. The automaker’s presence here helped usher in a new era of foreign direct investment in Alabama, in industries including automotive, aerospace, chemical and more. In 2015 alone, the state’s FDI topped $3.4 billion. Mercedes has lifted other areas of the state’s economy, too. The company is consistently Alabama’s top exporter, and in 2015 alone shipped more than $5 billion in products to 135 markets around the world. Overall auto exports for that year, the latest for which data is available, topped $7 billion, a record annual total and a 5.8 percent growth from the previous year. Exports of motor vehicle parts reached $1.2 billion, an 18 percent increase. “Mercedes has had a transformational impact on Alabama’s auto industry, as well as the state and its economy as a whole,” Canfield said. “With new growth on the horizon for the company in Tuscaloosa County, we anticipate even more opportunities for Alabama workers and support businesses throughout the state.” AL.com: Google Fiber downsizing again, says it’s still coming to Huntsville Google Fiber is losing hundreds of employees, according to press reports, but it still plans to bring its Gigabit Internet service to Huntsville. Google Access, the part of the larger Google empire that oversees fiber, is moving hundreds of fiber employees to other jobs, the website Business Insider reports. The report says no employees will be laid off, but they will be moved to divisions that are growing such as cloud and hardware. Earlier reports said Google wouldn’t expand to several cities as originally planned, and there has been speculation that Alphabet, the Google parent company, will sell the fiber division. Business Insider discounted the sale reports on Wednesday. “Google Fiber is committed to Huntsville. Once the Huntsville Utilities fiber network is built we intend to bring Google Fiber to Huntsville as planned,” a spokeswoman said Wednesday. “We can’t wait to share Google Fiber with the Rocket City.” Birmingham Business Journal: Alabama company buys defunct Maine power plant A newly formed Alabama company recently purchased a mothballed biomass power plant in northern Maine and plans to create about 300 jobs there. The company, 42 Railroad Ave LLC, plans to bring the former Sherman Development Power Plant in Stacyville, Maine online as a renewable energy facility. The company was recently established by CEO Steven Johnson, a longtime renewable energy investor and redevelopment entrepreneur, and focuses on heavy industrial and small-town revitalization projects. The company bought the 24 megawatt power generation station from Niagara Worldwide LLC after more than four years of negotiations, according to a press release. A purchase price was not made available. Johnson said
Alabama business roundup: Headlines from across state – 2/3/17 edition
What company’s creating 100 new jobs in Huntsville? Who’s been named the top municipal advisory firm in the state? What could be bringing more jobs to the the Gulf Coast? Answers to the these questions and more in today’s Alabama business roundup. Alabama NewsCenter: Birmingham experiencing urban renewal In his Letter from Birmingham Jail, the Rev. Martin Luther King Jr. wrote, “In a real sense, all life is interrelated. All men are caught in an inescapable network of mutuality, tied in a single garment of destiny.” More than 50 years after King was wrongfully imprisoned for his part in boycotts and “unlawful gatherings,” integration in Birmingham has finally been achieved through urban renewal — integration of races, religions, cultures and environments. Things are not perfect, but progress is being made, and a cultural renaissance is developing in downtown Birmingham. The Alabama Symphony Orchestra and Birmingham Museum of Art partnered in January to host “American Rhapsody: A Festival of American Music and Art.” One well-attended event focused on Jewish-American composers, specifically Leonard Bernstein, Aaron Copland and Richard Danielpour. A standing ovation was given after the symphony and ASO chorus performed Bernstein’s “Chichester Psalms” in Hebrew. Near the Alys Stephens Center, where the Alabama Symphony Orchestra performs, the well-regarded Alabama Ballet is headquartered. The Alabama Ballet draws principal dancers from nations including Russia, China and Japan. It is one of only eight companies in the world licensed by The Balanchine Trust to perform George Balanchine’s “The Nutcracker®”. This February, notable company dancers including John Mingle IV will perform “Giselle,” a French romantic ballet. Before they attend the ballet, people often walk through Railroad Park, a marvel of adaptive re-use. The park includes 19 acres of green space and a biofiltration wetlands area. A rail trail runs the length of the park and is used for activities including biking and jogging. Recycled materials including hand-cast brick and cobblestone are incorporated into walls and benches. A Railroad Park dining car remains as a nod to Birmingham’s past as an iron and steel producing center. Native plants are used in landscaping to preserve water. Regional vegetables are celebrated in the farm-to-table cuisine of Alabama native Frank Stitt, the chef and owner of three award-winning restaurants south of downtown. Stitt was named “Best Chef in the Southeast” by the James Beard Foundation and was recognized with a Lifetime Achievement Award from the Southern Foodways Alliance. The visual arts in Birmingham are vibrant as well. Notable artist William McLure has modern paintings displayed in galleries across the South and in magazines including Southern Living, which is based in Birmingham. Though McLure travels to Manhattan and other cities for commissions, the artist is proud to call Birmingham home. Regional magazines often photograph McLure’s paintings alongside antiques, in a nod to traditional Southern interior design. In downtown Birmingham’s renaissance, symbols of the past are often adapted rather than destroyed. Unlike Atlanta, where developers usually tear down historic buildings in favor of glass and steel high-rises or McMansions, Birmingham is a place where soot-covered brick is preserved on both boutiques and nightclubs. The renowned Birmingham Civil Rights Institute (BCRI) is a transitionally-styled brick structure with antique-inspired iron streetlights in front. BCRI placed a statue of civil rights leader the Rev. Fred Shuttlesworth near the museum’s entrance. The Alabama-born Shuttlesworth was once persecuted on the streets of Birmingham by the forces of the public safety commissioner at the time, Eugene “Bull” Connor. Now Shuttlesworth stands firm to welcome all, a symbol of what Birmingham has become. AL.com: Construction group: Trump plan could mean jobs for Mobile The Mobile area might have seen its share of positive economic developments in the last year, but there’s at least one persistent sore spot: a lack of growth in construction jobs. Brian Turmail, national spokesman for the Associated General Contractors of America, visited the Mobile waterfront on Wednesday to highlight the issue, joined by representatives of the Mobile business community. The choice of location was no accident: The AGCA sees a potential wave of government infrastructure spending as the cure for lingering construction-industry blues, and in Mobile that spending would include funding for the proposed I-10 bridge over the Mobile River. Part of the reason for Turmail’s visit was to announce the AGCA’s interest in seeing the administration’s pro-infrastructure stance translate into action. “The construction firms that are the members of the Associated General Contractors of America, our association, are going to do everything in our power to make sure that President Trump delivers on his promise to make massive new investments in our public infrastructure,” Turmail said. “And that Congress acts on and approves any plan that the president puts forward.” Turmail said Alabama generally, and Mobile specifically, are somewhat out of step with national industry trends. Overall, he said, the industry has been rebounding from the great recession that ended a few years ago – but the recovery has been “at least from a construction point of view, inconsistent, a little erratic, and obviously not as fast as all of us would like it to be.” He said Alabama lost jobs through 2014, added jobs in 2015, but slid back in 2016. The state lost 6,100 construction jobs in 2016 and the Mobile area lost about 1,100, or 10 percent of its total jobs in the field, he said. “Today, construction employment is shrinking faster in this area than in just about any other metro area in the country,” he said. Bill Sisson, president and CEO of the Mobile Area Chamber of Commerce, said the Turmail’s figures represent a pattern already noticed by the Chamber. In the Chamber’s most recent State of the Economy presentation, he said, some sectors showed significant growth, notably shipbuilding and manufacturing. But a rebound for construction jobs had lagged. Rob Middleton, president of Middleton Construction, said that the business is cyclical, and that the completion of the Airbus Final Assembly Line in 2015 accounted for some of the jobs lost in 2016. But he also cited some major
Alabama business roundup: Headlines from across state – 10/18/16 edition
Who’s purchased the low-income housing tax credit portion of Sterling Financial? Where’s there a funding boost for tech startups in the Yellowhammer State? Which gourmet hot dog chain is eyeing the state for its newest location? Answers to the these questions and more in today’s Alabama business roundup. Alabama News Center: Funding wave boosts Birmingham tech startup scene Entrepreneurs and innovators are getting noticed for their work in Birmingham, attracting millions of dollars in new investment for their technology-based startups. Recent months have brought at least three major funding announcements involving local firms: On-demand grocery delivery service Shipt announced during the summer that it had secured $20.1 million in Series A funding. Fleetio raised $750,000 from private investors, the fleet management software firm said earlier this month. Swell Fundraising, a software company that serves nonprofits, in August announced $500,000 in angel investor funding. Meanwhile, Daxko, a veteran of Birmingham’s tech scene, recently announced that San Francisco-based private equity firm GI Partners has acquired a majority stake in the company that will further accelerate its growth. Daxko provides software for health and wellness organizations. All the funding activity shows Birmingham has the right ingredients to fuel a thriving technology landscape and more growth is on the horizon, said Kathleen Hamrick, director of the UAB iLab at the downtown business incubator Innovation Depot. “The components people need to live, work, play and collaborate are here, in Birmingham,” she said. “That said, it’s exciting, but not all that surprising that we’re now seeing increased support for startups — evidenced by activity such as that of the recent funding rounds seen with Fleetio, Swell Fundraising, Shipt and Daxko.” Read more here. AL.com: Regions Bank buys low-income housing tax credit portion of Sterling Financial Regions Bank has purchased a portion of First Sterling Financial that manages low income-housing tax credits. First Sterling, based in Great Neck, New York, was founded in 1979 and deals in syndication, asset and portfolio management of Affordable housing investments. Regions has acquired the Low Income Housing Tax Credit (LIHTC) corporate fund syndication and asset management businesses. Terms of the deal were not disclosed. “Regions has a long history of supporting affordable housing developments that benefit communities through direct investment in Low Income Housing Tax Credits,” John Turner, head of Regions’ Corporate Banking Group, said in a statement. “The addition of First Sterling’s industry-leading syndication and asset management capabilities will allow us to grow non-interest revenue and offer clients additional solutions to meet the affordable housing needs of more communities.” Sterling has raised more than $1.9 billion in investor equity through both proprietary and multi-investor funds. It has been used to develop more than 700 properties in 45 states and Puerto Rico. Birmingham Business Journal: Hot dog chain eyes expansion into Alabama A fast-growing chain of gourmet hot dog restaurants is planning to add 300 stores over the next 12 years, and Alabama is one of the states on its radar. Pasadena, Calif.-based Dog Haus has inked a deal with American Development Partners that will result in hundreds of new restaurants for the chain, which currently has 21 stores open in the Western U.S. The deal is valued at more than $500 million. The company hasn’t disclosed which markets in Alabama it would target for franchises. American Development Partners will aid in the development of new locations, and facilitate the acquisition of land and oversee construction of this deal’s over 300 new franchise locations. Dog Haus specializes in gourmet hot dogs, sausage and burgers. AL.com: Polaris to host grand opening this fall for new Alabama vehicle plant Polaris will finally unveil its new Center of Manufacturing Excellence months after starting vehicle production in Huntsville-annexed Limestone County. The Minnesota company will host a grand opening at 10 a.m. Nov. 1 on 7049 Greenbrier Parkway N.W. The location, which has a Madison address, spans 910,000 square feet on 505 acres and will serve at least 1,700 workers at full capacity. The powersports leader announced it began making Polaris RANGER vehicles and Slingshots this summer at the plant, which handles assembly, chassis and body painting, welding, fabrication and injection molding. In addition to a multi-shift manufacturing hub, the campus has a research and development (R&D) center and distribution warehouse. Polaris spokeswoman Marlys Knutson said the facility has about 450 workers. AIDT, the state’s workforce development agency, is seeking welders, painters and assembly operators for the Polaris site. Some roles require applicants to complete AIDT pre-employment training to be considered. The starting wages, which will increase after three and nine months of employment, are as follows: Welders ($14.25) Painters ($14.25) Assembly Operators ($12.75) Click here for more information. A Polaris worker was taken to UAB Hospital a week ago for burn injuries he sustained while on the job in Huntsville. Polaris, which said it is investigating, has not released details about the cause of the incident.
Alabama business roundup: Headlines from across state – 9/30/16 edition
Which manufacturer has just produced their four millionth vehicle in Alabama? As the global shipping industry faces problem, should Alabama’s port be concerned? Answers to these questions and more in today’s business roundup below: Birmingham Business Journal: Bham contractors named to prestigious list Birmingham-based companies were recently named to a list of the nation’s top construction firms. Building Design + Construction magazine ranked B.L. Harbert as the No. 2 on its list of Federal Government Giants, firms with the largest amount of government projects last year. According to a press release, B.L. Harbert had more than $661.2 million in revenue for federal projects in 2015. Federal work is the company’s largest market sector in a diverse portfolio. “We are humbled to be recognized as a Building Design + Construction Giant in the federal division,” said Chuck Bohn, President of BL Harbert’s International Group. “This is a testament to our employees, near and far, for securing contracts and performing the work successfully. We look forward to what next year will bring for our team.” Another local firm, Brasfield & Gorrie, ranked No. 8 on the list. The company had more than $105 million in 2015 federal project revenue. Robins & Morton ranked No. 17 with more than $38 million, and Hoar Construction came in at No. 27 with around $7.7 million in 2015 federal project revenue. Alabama News Center: Milestone: Honda produces 4 millionth Alabama-made vehicle If you line up all the Honda vehicles that have been built at the automaker’s Talladega County plant since it opened 15 years ago, they would stretch across the U.S., from New York to Los Angeles, more than four times. That’s what 4 million Alabama-made Hondas look like. Last week, Honda Manufacturing of Alabama celebrated a key milestone: the production of 4 million vehicles and V-6 engines. The $2.2 billion plant started mass production in November 2001. It is the sole source of Honda’s Odyssey minivan, Pilot SUV and Ridgeline pickup, as well as the Acura MDX luxury SUV. It also produces the engines that power all four vehicles. “The commitment and dedication of our 4,500 associates has allowed HMA to achieve this production milestone and fulfill our commitment to quality for Honda customers across the globe,” HMA President Jeff Tomko said. The 4 million milestone came as a delegation of Alabama government and business leaders were visiting Tokyo for SEUS Japan 39, a forum that aims to strengthen cultural and economic ties between the Southeastern U.S. and the Asian nation. Greg Canfield, secretary of the Alabama Department of Commerce, led the state delegation in Tokyo. Canfield and a group of Alabama officials visited Honda’s corporate headquarters last week. “Honda has been a powerful economic engine in Alabama, creating thousands of jobs and new levels of opportunity for residents in Talladega County and across the state,” Canfield said. “Honda has found a home in Alabama, expanding repeatedly to boost output and add capabilities,” he said. “We’ll work hard to keep this fruitful partnership going strong.” Going the distance To mark the milestone, Honda had a little fun with the numbers. Based on an average length of 16.4 feet per vehicle, 4 million HMA-built vehicles lined up end-to-end would stretch 12,422 miles, the company said. That would: Stretch around the Talladega Superspeedway 4,670 times (2.66 miles) Nearly span the distance (just eight miles short) from the North Pole to the South Pole (12,430 miles) Go from New York to Los Angeles almost 4.5 times (2,791.8 miles) Four million vehicles also would: Fill up every parking space at Hoover’s Riverchase Galleria 370 times (10,800 spaces) Fill up every parking space at Walt Disney World 170 times (23,540 spaces) 2.2 million minivans The Odyssey represents the lion’s share of the plant’s output over the past 15 years, accounting for more than 2.2 million models produced. It’s followed by the Pilot, at 1.4 million, the Acura MDX at 216,521 and the Ridgeline at 121,009. The plant also turned out 27,119 Accord V-6 sedans from 2009 to 2010. Honda’s Alabama assembly lines have the capacity to produce up to 340,000 vehicles and engines per year. Since 2013, the company has invested more than $520 million and added more than 500 jobs in multiple expansions. A 2015 study showed the plant generated $6.8 billion in economic activity in the state. Along with its Tier 1 suppliers, the automaker is responsible for more than 43,000 jobs and 4.4 percent of the state’s total annual output of goods and services. Honda leads the way in Japanese investment in the state. Since 1999, when the automaker announced plans for the Talladega County operation, Japanese companies have invested more than $5 billion in Alabama. Birmingham Business Journal: UAB, Under Armour sign 7-year apparel agreement Sports apparel company Under Armour will pay the University of Alabama at Birmingham a rights fee of $50,000 per year under a new seven-year outfitter contract. UAB and Under Armour on Thursday publicly announced the partnership, though the contract officially began on June 1 of this year. UAB athletes and employees began wearing Under Armour apparel in July. “We’re thrilled for all of our student athletes,” UAB Athletic Director Mark Ingram said. “We’re excited to provide such a high quality product for our students.” In addition to the annual rights fee, UAB will receive a $1,075,000 product allowance for the 2016-17 school year. The annual allowance will decrease to $1 million for the 2018 and 2019 school years before increasing again, ending at $1,030,000 for the 2022 school year. Todd Locklear, manager of Under Armour’s NCAA services, announced the partnership alongside Ingram and UAB coaches Thursday. “UAB checks a lot of boxes for us. Birmingham is a huge market for Under Armour,” Locklear said, pointing to their relationship with Birmingham-based Hibbett Sports (Nasdaq: HIBB) Locklear said Under Armour (NYSE: UA) is excited about the rebirth of UAB football, as well. Under Armour will design a unique football uniform and sideline products to commemorate the return of the program next fall. “Their jerseys mean a lot to us,” Locklear said. “We
Alabama business roundup: Headlines from across state – 9/16/16 edition
Which Alabama company is on a space mission to Mars? What happened to the lawsuit against Gov. Robert Bentley and the beachfront hotel plans? Who’s been elected to develop economic groups? Answers to all of these questions and more in today’s business roundup: Alabama NewsCenter: Alabama-made Atlas V rockets to lift NASA to asteroid, Mars Alabama-made Atlas V rockets will launch a NASA spacecraft on a dramatic mission to rendezvous with an asteroid and later send Mars 2020, the space agency’s next-generation robotic rover, to the Red Planet. First up is the lift-off of the OSIRIS-REx spacecraft, scheduled for Sept. 8 at Florida’s Cape Canaveral Air Force Station. The United Launch Alliance Atlas V, assembled in Decatur, will boost the explorer on its way to the near-Earth asteroid Bennu. The spacecraft will travel to the asteroid, survey it to produce 3-D maps and bring back a sample of surface material for study. NASA says the mission – the first involving a round-trip to an asteroid — will help scientists investigate how planets formed and life began. “This mission exemplifies our nation’s quest to boldly go and study our solar system and beyond to better understand the universe and our place in it,” said Geoff Yoder, a NASA administrator in Washington, D.C. The spacecraft should reach Bennu in 2018 and return the sample via a detachable capsule in 2023. This week, the OSIRIS-REx was bolted onto the Alabama-made Atlas V on Pad 41 at Cape Canaveral in preparation for lift-off. NASA said the launch should not be affected by Thursday’s SpaceX rocket explosion on a nearby pad. Mission to Mars On Aug. 25, NASA’s Launch Services Program announced that ULA’s Atlas V will launch Mars 2020 on its mission to the Red Planet. Lift-off is planned for July 2020 from Cape Canaveral, and the spacecraft should reach Mars in 2021. The Mars 2020 rover will conduct geological assessments of its landing site and determine the habitability of the environment. It will also search for signs of ancient Martian life, and assess natural resources and hazards for future human explorers. ULA’s Alabama assembly facility is the sole production site for Atlas V and Delta IV rockets, which launch payloads for NASA and other government agencies. The 1.6 million-square-foot Decatur factory employs around 1,000 people.“Our launch vehicles have a rich heritage with Mars, supporting 17 successful missions over more than 50 years,” said Laura Maginnis, ULA’s vice president of Custom Services. “ULA and our heritage rockets have launched every U.S. spacecraft to the Red Planet, including Mars Science Lab, as well as the Spirit and Opportunity rovers.” Versions of the Atlas V can stand 205 feet tall, rising to almost 19 stories. An Alabama-made Atlas V will launch NASA’s next Mars lander, called inSight, in 2018. The surface explorer aims to provide understanding of the processes that shaped the planets of the inner solar system, including Earth. There’s another Alabama connection to two of these missions. OSIRIS-REx is the third mission in NASA’s New Frontiers Program, which is managed by Marshall Space Flight Center in Huntsville. InSight is part of NASA’s Discovery program, also managed by Marshall. Birmingham Business Journal: Judge tosses lawsuit against Alabama’s beachfront hotel plans Montgomery Circuit Judge Greg Griffin on Thursday moved to dismiss a lawsuit filed in opposition to the state’s plans to bring a new hotel and conference center to Gulf State Park using funds from the BP oil spill settlement. The suit, filed by State Auditor Jim Zeigler and state Rep. Johnny Mack Morrow, claimed the state couldn’t spend the money from the settlement without legislative approval. On Thursday, Griffin dismissed the case, arguing Zeigler had no authority to file the suit in his official capacity and that since the state wasn’t spending taxpayer dollars, no legislative approval was necessary. “Today’s decision reiterates that the Gulf State Park project is proceeding within legal means,” Bentley said in a statement. “The redevelopment of the Gulf State Park will benefit Alabama as well as all state parks throughout the state.” Alabama NewsCenter: Alabama firms seek foothold with Latin America trade mission Latin America is the latest target for Alabama trade leaders seeking growth markets for state businesses. Representatives of a dozen companies are participating in a trade mission this week that started Sunday in Mexico and continues Wednesday in Chile. It’s being held in conjunction with the U.S. Commercial Service’s Trade Winds program, which includes regional and industry-specific conferences, as well as prearranged consultations with senior diplomats. For Gadsden’s Back Forty Beer Co., the trade mission is an opportunity to expand a new focus on international sales. Back Forty, widely regarded as one of the pioneers of craft beer in Alabama, exports several of its beer varieties — including Naked Pig, Truck Stop Honey and Freckle Belly – to China and Canada. The international sales started last year, and the company has been ramping up the endeavor since January. “In the U.S., craft beer has been around for a while, and it’s fairly well understood,” said Vince Schaeffer, Back Forty’s director of international sales. “But in countries like China and Mexico, we’re really on the leading edge, so we want to establish our brand there and become partners with important people.” Mexico is the most immediate growth target, he continued, but Chile, along with Australia, is on the list for next year. The company is expanding its global effort in a deliberate fashion, so it fully understands customers in each market before moving on to the next one, Schaeffer added. “Exporting just makes so much sense to us. It creates U.S. jobs and profits for U.S. companies, and we just see it as a natural way to grow,” he said. Click here to read the rest. Birmginham Business Journal: BBA leaders elected to economic development groups Two leaders at the Birmingham Business Alliance have been appointed to serve with groups to improve economic development statewide. Victor Brown, vice president of business development at the BBA, was appointed by Gov. Robert Bentley to the Renewal of Alabama
Alabama business roundup: Headlines from across state – 8/3/16 edition
According to federal figures where does lotto money really go? Who’s hiring 500 new employees? Answers to these questions and more in today’s business roundup: AL.com: Amid Alabama lottery proposal, federal figures show where lotto money really goes Alabama is apparently so broke that it might be forced to adopt a lottery to raise funds, giving up on a longtime abstinence that would see it join a group of 44 other states where the ‘game of chance’ is not only legal, but raising crucial revenues for services such as education, tax relief and infrastructure costs. Each year tens of billions of dollars are raised across the country by lotteries in order to plug holes in state budgets, allowing lawmakers to keep taxes low and state agencies functioning. But despite claims by most states that lotteries are largely charitable organizations, the latest (2014) U.S. Census Bureau statistics on lottery revenues show that only around 33 percent of money raised by the 44 states is made available to spend on state services. The rest, around 62 percent, is given in prizes, while around 5 percent is set aside for administrative fees. As part of his pitch for an Alabama lottery, Gov. Robert Bentley made an impassioned plea late last week claiming that a state lottery would bring in as much as $225 million a year, which he said would be spent on services for children, the mentally ill, law enforcement and “those in the most need,” as well as the contributing to the state’s General Fund. “The time has come for us to find a permanent solution,” said Bentley. “This solution will provide funding that we can count on for year after year without ever having to raise your taxes or put one more band-aid on our state’s money problems.” And those so-called money problems are becoming more acute every year as Alabama looks to deal with debt that exceeds $60 billion. While the scant details of Bentley’s lottery spending plan are generally in line with how other states claim they spend lotto revenues, his figure of $225 million would depend on what percentage of lottery revenue the state will allocate to prizes, administration and to state services. In nearby Louisiana, which has a similar population and economy to Alabama, the state generated around $432 million in lottery revenues in 2014, according to the U.S. Census Bureau. Of that, $160.5 million went to the state treasury, $237 million was given out in prizes and $26 million spent on administering the lottery. What isn’t immediately clear is whether Bentley’s $225 million estimate is before or after administrative costs and prizes are discounted. The North American Association of State and Provincial Lotteries offers a general view of how each state spends its lottery revenue, although there is little centralized documentation that shows the exact details of how every dollar is spent. However, some state lottery websites do offer more information on post-prize expenditure. For example, California directs around $1.6 billion of its state services-assigned revenue toward education, while in Pennsylvania almost all of the $1 billion it raises for state spending is used exclusively on caring for pensioners. But even these high figures account for a far less amount that what is given out in prize money. But there are some states that buck the big-prize trend. For example, Rhode Island, West Virginia, Oregon, and South Dakota divert around 60 percent of all lottery cash raised toward state-funded programs, such as education, tourism, economic development, gambling addiction and tax reductions. Only a very small amount finds its way to prizewinners. In West Virginia, for example, $509 million of the $654 million pot was directed into state services in 2014, while only $111 million was given in prizes. The rest, $33 million, was spent on administrative costs. Whether or not Alabama will be similar to one of these states is yet to be seen. Read more here. Alabama News Center: How Google came to choose Alabama for its $600 million data center Getting Alabama to come out on top of Google’s own search results for its high-tech data center took thousands of emails and texts, 20 visits from the company to north Alabama and the last-minute signature of a mayor named Bubba. The key players in the recruitment of the $600 million Google data center to Jackson County gave a behind-the-scenes look at the twists and turns the project took before settling on 500 acres at a power plant that was shutting down. The recruitment was the subject of a panel discussion at last week’s Economic Development Association of Alabama summer conference. It was a project shrouded in secrecy. At various times, it went by the codename of “Project Zebra” and “Project Spike.” Officials involved in the recruitment had to sign nondisclosure agreements even though they didn’t know the name of the company. In April 2014, Tennessee Valley Authority project manager Spencer Sessions took the first call and began trying to find sites that matched the criteria. Bob Smith, project manager with the Alabama Department of Commerce, was brought in a few weeks later. He said Alabama had won a fair number of data centers the previous four years — projects that were heavy with capital investment because of the technology infrastructure, but don’t have the same number of employees as large manufacturing plants. Site Selection magazine, an economic development trade publication, had cited Alabama’s success in the data center arena. Smith said officials recognized that the state’s incentives were more geared toward manufacturing but needed to focus on data centers. The state passed such incentives in 2012. Alabama now had a new tool in the toolbox and waited for an opportunity to use it. Meanwhile, TVA had a site in Jackson County certified as ready for a data center. “We had this certified data center site right next to the community college,” said Dus Rogers, president and CEO of the Jackson County Economic Development Authority. The only problem is Project Zebra (or was it Project Spike by this time?) didn’t care for that site and wanted officials to think
Alabama business roundup: Headlines from across state – 7/26/16 edition
What does Alabama Commerce Chief Greg Canfield have to say about the state’s economic outlook in 2016? What health system is now offering physician ratings? Who’s grabbed a chunk of the JetBlue $30 billion contract? Answers to these questions and more in today’s business roundup: Birmingham Business Journal: UAB Health System to begin offering physician ratings The University of Alabama at Birmingham Health System this week unveiled a new physician rating system built into its Find a Provider platform, the only Alabama hospital to offer such information. “We are dedicated to transparency and accountability, and we constantly look for ways our organization, and each faculty and staff member, can improve the services we provide,” UAB Health System CEO Will Ferniany said. “This initiative will play an important role in that commitment.” Under the new system, reviews and ratings on a five-star scale appear with physician profiles in the directory for each physician with at least 30 patient-submitted surveys. Star ratings are based on data collected from patients using the U.S. Agency for Healthcare Research and Quality’s Medical Practice Consumer Assessment of Healthcare Providers and Systems surveys. Surveys don’t vary from one provider or facility to another, so the resulting data are standardized and allow for more accurate comparisons. Ratings are updated monthly and are based on the previous years of surveys. At its launch, more than 81 percent of eligible physicians had a posted rating of at least four stars on the five-star scale. “It’s clear that most patients already think highly of the majority of UAB Medicine providers and the care environment they and their staffs maintain, but we can always do better,” Ferniany said. “Our goal is that each patient who puts his or her trust in our team experiences nothing but the highest level of world-class comfort and care.” AL.com: Mobile’s Airbus site grabs chunk of new $30 billion JetBlue contract JetBlue Airways ordered 30 Airbus A321 jetliners Wednesday valued at $3.6 billion, many of which are set to be built the at the aircraft manufacturing company’s assembly plant in Mobile, Alabama. The sale includes 15 A321s with the current engine option (ceo) for delivery starting next year, and 15 more A321s with new, fuel efficient engines starting in 2020. The positive news for the European-based Airbus comes after good results at the recent Farnborough airshow in the United Kingdom, where it brought in $30 billion of orders for around 280 aircraft. “Airbus has been our partner since the beginning, and we are proud that our partnership continues today,” said Robin Hayes, JetBlue president and CEO, according to an Airbus press release. “The A321 is an incredible aircraft that is delivering results for our business. We intend to deploy many of these aircraft to expand our successful Mint experience and our west coast presence.” The new order comes during a period of aggressive expansion for JetBlue as it looks to grow its coast-to-coast service known as Mint, and as the company gears toward a trans-Atlantic service starting in 2019. For Airbus, the order adds to the significant backlog on its single-aisle aircraft, which will keep its international assembly plants busy for years to come, and as it U.S. operation on the Gulf Coast marches toward its full-production rate of four a month by the end of 2017. “When we decided to build an assembly line in the U.S., we did it to help meet the increasing demand from our U.S. customers,” said John Leahy, Airbus USA Chief Operating Officer. “The A320 Family is a market leader worldwide – one that has found particularly great success in the United States because of its economics, efficiency and comfort. We look forward to delivering more and more aircraft from our U.S. facility to our customers here in America.” JetBlue currently operates a fleet of 160 A320 Family aircraft, including 130 A320s and 30 A321s, according to Wednesday’s press release. The airline’s backlog of Airbus aircraft comprises of 116 planes: 25 A320neo, 31 A321ceo, and 60 A321neo aircraft. Alabama News Center: Alabama Commerce chief: 2015 will be hard to beat, but 2016 looking good Alabama Commerce Secretary Greg Canfield said economic development years like 2015 don’t come along very often. In fact, by one measure there’s never been a year like last year for Alabama. “We’ve gone back several years and we can’t find a year where we had $7.1 billion in capital investment like we had in 2015,” Canfield said. “It’s quite an achievement. It’s going to be hard to beat.” Canfield spoke to economic developers from throughout the state Monday kicking off the Economic Development Association of Alabama’s 2016 summer conference. The commerce chief credited last year’s success with his department’s collaboration with local economic development entities throughout the state, Alabama’s universities and community colleges, the state’s power companies, the Alabama Department of Economic and Community Affairs and the Economic Development Partnership of Alabama. In addition to the record-setting capital investment, 2015 saw the announcement of 19,202 new or future jobs from those projects. Read more here. Alabama News Center: Polaris Alabama facility begins producing Rangers, Slingshots Polaris Industries has launched vehicle production at a new, state-of-the-art factory in north Alabama that’s projected to provide a major economic boost to the region. Polaris Chairman and Chief Executive Officer Scott Wine announced the production launch in a company statement on Wednesday, saying the Huntsville factory began turning out Ranger off-road vehicles in June. Earlier this month, Wine added, the Polaris Alabama facility began producing the Slingshot, a three-wheeled roadster. Alabama beat out at least 14 states to win what was code-named “Project Axle” and its investment of at least $127 million. ‘World-class products’ Polaris and Huntsville are a good match, said Greg Canfield, secretary of the Alabama Department of Commerce. The company is known for its engineering prowess, while the city has a large concentration of highly skilled workers, thanks to the significant presence of military contractors and technology and aerospace firms. “From automobiles and airplanes to ships and rockets, Alabamians build them all,” Canfield
Alabama business roundup: Headlines from across state – 7/12/16 edition
Which major Alabama company is getting a new look for the first time in 20 years? How much have new home sales gone up over last year? Which manufacturing company is priming for a production ramp-up? Answers to all of these questions and more in today’s business roundup: AL.com: Alabama business owners treat Mobile area police officers to lunch A group of Alabama business owners in Mobile decided to treat every police officer to a free buffet style lunch at Moe’s Original Barbecue in Downtown Mobile Tuesday (July 12) afternoon. Brian Birdsong, Co-owner of Moe’s Original Barbecue said the motivation behind the random act of kindness came from the tragic Dallas police shootings last week. “Just seems like to the rest of the world they are not getting a good rap on things so we just wanted to show our support,” said Birdsong. Birdsong says Austin Key, Vice President of Bugmaster pest control reached out to him after the police officers shootings and wanted to do something in Mobile to lift officers spirits. With tensions high between community members and police after several police involved shootings across the country, including the death of 19 year-old Michael Moore in Mobile Key says something good needed to be done. “We told Moe’s just set up the buffet lines and from 11 a.m. to 4 p.m. it’s on us,” said Key The business owners invited officer’s from Mobile County and Baldwin County to stop in for lunch. Patrons and kids at the restaurant took the time to give hugs to officers as they enjoyed lunch and stopped to take pictures. Birdsong says the response from the community during the lunch hour rush was all positive. “The response has been all positive little kids coming up to them thanking them and I’ve thanked them and they’ve been very appreciative of it,” said Birsong. T-shirts supporting the Mobile Police Department and the Mobile Sheriff’s Office were for sale during the event. The restaurants owners said the proceeds from the T-shirt sales will be donated to both police departments. Alabama News Center: Airbus Alabama primes for production ramp-up Now that the first Alabama-made airplanes are rolling off the assembly line at the Airbus manufacturing plant in Mobile and taking to the skies, the big question is: What’s next? Plenty. In fact, the global plane maker has only just begun to make its mark on Mobile and Alabama, according to business leaders and market forecasts that show a robust, long-term demand for the passenger jets produced there. Airbus continues to ramp up production and expects the $600 million factory at Mobile Aeroplex at Brookley to turn out between 40 and 50 A320 Family aircraft each year by 2018. Worldwide, there’s an anticipated demand for more than 20,000 single-aisle planes over the next 20 years. The U.S. is the world’s largest market for such aircraft, and the vast majority of those built in Mobile will be delivered to customers in North America. “I think we can all take great comfort in knowing that the Airbus book of orders is so healthy for the next 20 years,” said Bill Sisson, president and CEO of the Mobile Area Chamber of Commerce. “Certainly, we will see aircraft production reach capacity rates as quickly as possible in order to meet the demand,” he added. “The more aircraft that are delivered per month from Mobile will mean more supplier and service provider opportunities at Brookley and beyond.” Farnborough mission Sisson and others from the Mobile area are part of the Alabama economic development team that is promoting the state at the Farnborough International Airshow in London this week. The Alabama delegation at the industry’s most important trade event is being led by Gov. Robert Bentley. “Our work at the Farnborough Airshow will be about continuing to build a strong network with Airbus suppliers and a great opportunity to evangelize about the strength of doing business in Mobile,” Sisson said. “As the world’s newest aviation center, it is our region’s golden opportunity to market on the world stage. We’re doing that and will continue to foster the full development of Mobile’s fastest-growing business sector.” The region already has been successful in landing new business tied to Airbus. A recent example is UTC Aerospace Systems, which in May announced an expansion of its Baldwin County aerostructures plant. The company plans a $30 million facility that will supply jet engine systems to the Airbus plant, creating 260 jobs. Continue reading: https://alabamanewscenter.com/2016/07/12/airbus-alabama-primes-production-ramp/ AL.com: Alabama Business Confidence Wanes, but Remains Positive for Third Quarter 2016 The Alabama Business Confidence Index™ (ABCI) came in at an optimistic 52.4 on the third quarter 2016 survey conducted by the Center for Business and Economic Research in UA’s Culverhouse College of Commerce. Business confidence decreased 2.8 points since last quarter and panelists remain less optimistic than a year ago when the ABCI registered 54.8. All component indexes except for capital expenditures decreased this quarter, but most remain in solidly positive territory. Panelists continue to see expansion in the Alabama economy, but are somewhat pessimistic about the national economy. The outlook for the state economy fell to a still quite confident 52.8, while the national economy index remained near the neutral mark with a slightly negative 49.0. Almost 30 percent of panelists expect stronger economic growth in the state this quarter and 52 percent expect the state’s economy to perform about the same as last quarter. In comparison, about 25 percent expect increased U.S. economic growth and almost 49 percent think growth will continue at about the same pace. The sales index remains on top of the list at 54.9 even after a 4.9 points drop, while expectations for capital expenditures increased slightly to 53.4. Pace of job growth and profits are expected to improve moderately or stay stable. Firms in construction, professional, scientific, and technical services, as well as in finance, insurance, and real estate are the most optimistic this quarter, all posting index levels of 54 or more. Retailers, however, continue to have the most negative outlook. The four largest metro
Alabama business roundup: Headlines from across state – 6/16/16 edition
Which mega-retailer now allows Alabama shoppers to pay with their smartphones? Are you familiar with the new Alabama tax laws that could affect your company? Answers to all of these questions and more in today’s business roundup: Birmingham Business Journal: North Alabama megasite primed for development A 1,252-acre site off Powell Road in Limestone County was certified as a Tennessee Valley Authority megasite, rendering the site more competitive when it comes to large-scale development. The Chamber of Commerce of Huntsville/Madison County said the site – which sits in the same area as other recent large scale manufacturing projects like Polaris Industries and GE Aviation- can now compete globally to land a major manufacturer. It’s the first TVA certification of its kind in Alabama. “The certification is our international calling card telling global manufacturers we are open for business and a prime place for industry and jobs,” Huntsville Mayor Tommy Battle said. “This site should attract a high-tech, high-end company for worldwide customers.” The TVA has seen its certified mega sites go on to land major projects, as five of the seven certified locations have brought a collective capital investment total of more than $5 billion. AL.com: Alabama Walmart customers can now pay with their smartphones Starting today, customers at the more than 120 Walmart locations across Alabama can check out using their smartphones. Walmart Pay was already available in Arkansas, Oklahoma and Texas and today rolled out in four Southern states, including Georgia, Louisiana and Mississippi, according to company spokeswoman Molly Blakeman. The service will soon be available nationwide. Here’s how it works: Open: Visit any register, open the Walmart app and choose Walmart Pay. Activate the camera. Scan: At any time during checkout, simply scan the code displayed at the register. Walmart Pay is now connected. Done: Associate scans and bags the items and it’s done. An eReceipt will be sent to the app and can be viewed at any time. The service, first announced in December, makes Walmart “the only retailer to offer its own payment solution that works with any iOS or Android device (that can download the Walmart app), at any checkout lane, and with any major credit, debit, pre-paid or Walmart gift card – all through the Walmart mobile app,” according to a press release. “We can’t wait to hear what our customers and associates in Alabama think of Walmart Pay. The service was built to make shopping easier and faster, something we know our customers want,” said Daniel Eckert, senior vice president, Services, Walmart U.S. “Walmart Pay is a powerful addition to our app, a tool that we’re using to transform the shopping experience by seamlessly connecting our online assets and our stores for customers. The service opens the door to new and better ways we can serve the 140 million customers who shop our stores each week.” Alabama NewsCenter: Gulf Coast facility helps keep saltwater fishing afloat in Alabama Marie Head works long hours monitoring conditions and tending to the fish at the Claude Peteet Mariculture Center in Gulf Shores. She shares on-call duties on weekends and holidays for a facility that requires constant attention. Being a biologist’s aide isn’t a high-paying job, either. And there’s nowhere else she’d rather be than the hatchery that grows saltwater fish for research and stock enhancement. “I love it,” Head said with a smile. “We watch them hatch out under a microscope. We feed them and grow them so that they can be released and fishermen can fish. You get to see life right here in this building.” Despite Alabama’s small coastline, recreational saltwater fishing is a $900-million-plus business for the state. The Alabama Department of Conservation Division of Marine Resources oversees both recreation and commercial fishing in saltwater. Its hatchery spearheads efforts to make sure anglers have plenty of fish to pursue down at the Gulf. “We’re two-fold,” said Josh Neese, hatchery manager. “We do research and raise fish in mass numbers to release at one inch long.” Completed in January 2015, the hatchery, tucked away behind the Gulf Shores Airport, includes a brood stock room, a fry room, grow-out tanks, an algae room where food for the larval and fish fry is grown, a pond production area and 35 one-fifth-acre ponds, said Chris Blankenship, director of Marine Resources. Raw water lines connect the facility to the Intracoastal Waterway Canal, where it draws its brackish water, and the Gulf of Mexico at Gulf State Park Pier, where it gets its pure salt water. Read the rest of the article here. Birmingham Business Journal: Alabama tax law changes your company needs to know The Alabama Legislature concluded a relatively productive 2016 regular session on May 4. The 2017 Regular Session will begin next February, although there is a good possibility of the governor calling a special session this fall to address his prison plan, increased Medicaid funding, how to spend the BP settlement funds awarded to the state and perhaps another vote on the popular historic renovation tax credit legislation. Here is a look at the some noteworthy state tax bills that were signed into law: Act #2016-412 – Federal/State Filing Date Conformity Bill: Conforms the state income tax return filing dates for corporations and pass-through entities to the inverted filing dates established by Congress last year. CPAs across the state breathed a sigh of relief. Act #2016-345 – HSA Conformity Bill finally passes: Generally conforms the state income tax rules for creating a health savings account to the federal tax rules, but not until 2018. Beginning that year, taxpayers can claim a state income tax deduction for contributions to HSAs, limited to the annual cap imposed by federal tax law (currently $3,350 for individuals and $6,750 for families). Alabama was one of only three states with an income tax that didn’t conform to the federal rules. Many Alabama employers offer this useful option to their employees. Act #2016-406 – Additional restrictions on private auditing firms: Clarifies that the statutory ban on contingent fee audits includes unwritten agreements between counties or
Alabama business roundup: Headlines from across state – 6/1/16 edition
Which Alabama retailers will be feted by the National Retail Federation? What sized companies are on the rise in Alabama? Answers to all of these questions and more in today’s business roundup: Birmingham Business Journal: Alabama News Center: Ready for red snapper? Alabama looks to bigger catch from longer season, expanded waters A longer state red snapper season and expanded state waters where anglers can fish are expected to provide a boost to the coastal tourist economy this summer. “It should be good for our bottom line,” said Mike Giannini, one of the owners of J&M Tackle on Canal Road in Orange Beach. “It’ll increase fuel sales, ice sales, bait sales, tackle sales, just about everything.” Red snapper season will be open in Alabama waters from Friday, May 27, through July 31, giving anglers two full months to fish. Last year, U.S. Sen. Richard Shelby of Alabama attached an amendment to the General Fund budget that extends state waters for Alabama, Mississippi and Louisiana to nine miles from the coast for the purposes of managing reef fish, including snapper. The move aligned the state waters of those three states with the state waters for Florida and Texas. Before this year, the federal government recognized Alabama’s authority only over waters extending three miles from the coast. The expanded territory is important to anglers. “It makes a big difference when it comes to the amount of structure available to fishermen to fish,” said Chris Blankenship, director of Alabama’s Division of Marine Resources. Snapper are good to eat and relatively easy for anglers to locate. That has made them what Herb Malone, president and CEO of Gulf Shores and Orange Beach Tourism, calls Alabama’s “flagship fish.” “Anybody with a boat who knows how to use a GPS can find snapper,” Malone said. Alabama’s artificial reef system Snapper are reef fish. They live around structure whether natural, like rocks or coral, or manmade, like sunken ships or concrete rubble. Alabama has few natural reefs off its tiny coast and had few if any snapper before about 35 years ago. Beginning in the late 1970s, the state and private individuals sank ships, tanks and armored vehicles, concrete pyramids and rubble off the coast. It now has the largest artificial reef system in the country, and upward of 35 percent of the total snapper catch in the Gulf of Mexico comes off the Alabama coast. The longer season and expanded state waters “is going to be huge for us,” said Mark Russo, manager of Sam’s, a store on Canal Road in Orange Beach that caters to fishermen. “Now that we’ve got the longer season, we need to put more structure in the nine miles controlled by the state.” Read the rest of the article here. AL.com: Alabama business optimism improves as 2016 progresses Business confidence rose to 55.1 on the second quarter 2016 Alabama Business Confidence Index™ (ABCI) survey, conducted by the Center for Business and Economic Research in UA’s Culverhouse College of Commerce. The index increased 2.1 points and closed at its highest level in three quarters. That said, panelists are now less optimistic than a year ago when the ABCI registered 57.6. Note that an index value above 50 indicates a positive outlook. Panelists continue to see expansion in the Alabama economy, but are less optimistic about the national economy. The outlook for the state economy rose to a quite confident 56.4, while the national economy index remained near the neutral mark at a slightly positive 50.9. Overall, business executives expect the state’s economy to continue expansion in the second quarter of 2016. At 56.4, the index is up 4.4 points from last quarter, but down two points compared to a year ago. Almost 38 percent of panelists expect stronger economic growth this quarter and approximately 51 percent expect the state’s economy to perform about the same as last quarter. Every industry indicator moved higher on the survey and all remain positive. The sales index again tops the list at 59.8, while expectations for capital expenditures, hiring, and profits all rose to easily positive readings. Firms in financial services, construction, miscellaneous services, and professional services are the most optimistic this quarter, all posting index levels of 56.0 or more. Retailers, however, continue to see the economic environment as a negative. The four largest metro areas all posted positive readings, even as confidence declined by 2.1 points in Mobile. Confidence increased in Birmingham-Hoover, Huntsville and Montgomery. Montgomery enjoys the highest confidence among the large metros with an index of 57.3. The mixed, but mostly positive sentiment of ABCI panelists in a broad range of industries supports the recent 2016 forecast from the Center for Business and Economic Research. CBER expects the state’s economic growth to slow down slightly from 2.4 percent in 2015 to 2.3 percent this year. Employment growth is forecasted to decelerate from around 1.2 percent in 2015 to 1.0 percent in 2016, while tax revenues are forecasted to rise 2.7 percent in FY2016 compared to last year’s 3.3 percent increase. Report: Results of the second quarter 2016 ABCI survey are available at https://cber.cba.ua.edu/ABCI. The survey, which is in its 15th year, was completed online March 1-15 by 258 Alabama business executives. Alabama News Center: Alabama retailers Bromberg and Shea to be feted by National Retail Federation The National Retail Federation is recognizing Alabama Retail Association Chairman Ricky Bromberg, president of Bromberg and Co. in Birmingham, and board member Terry Shea, co-owner of Wrapsody in Hoover and Auburn, for their contributions to advocacy. They are among “America’s Retail Champions.” Bromberg and Shea flew to Washington, D.C., this week to take part in NRF’s Retail Advocate’s Summit. The America’s Retail Champions program, now in its third year, honors retailers who make their mark on public policy debates affecting the industry. Bromberg and Shea are among 41 small business retailers throughout the country to be named as a 2016 champion, and are in the running to be named as a finalist and honored as the America’s Retail Champion of
Alabama business roundup: Headlines from across state – 4/27/16 edition
Which Alabama city is the nation’s top destination for STEM graduates? What local startup was tapped by UAB for a solar energy construction project? Answers to all of these questions and more in today’s business roundup: Birmingham Business Journal: This Alabama city is the nation’s top destination for STEM graduates For the second consecutive year, Huntsville offers better career prospects for college graduates planning a job in the science, technology, engineering and mathematics fields than tech hotspots like Silicon Valley, San Francisco, and Seattle. Of 330 cities analyzed by NerdWallet, Huntsville ranked No. 1 for STEM graduates. The city ranks highly for job opportunity, average salary, and cost of living. There are 152 STEM employees per 1,000 total jobs in Huntsville and that high demand also comes with a high paycheck. The average salary for STEM employees in Huntsville is $95,000. That’s about $11,000 higher than the national average. The city was also highlighted for Cummings Research Park, which employs 29,000 people in science and technology and is home to the operations of major national companies. Huntsville is also the headquarters of U.S. military garrison and weapons manufacturer Redstone Arsenal and NASA’s Marshall Space Flight Center. “Dozens of Fortune 500 companies have a presence at the research park, including AT&T, IBM and Comcast. Huntsville stands out in particular for its opportunities in aerospace and defense. The research park hosts the Boeing Co., United Technologies, Lockheed Martin, General Dynamics, Northrop Grumman and Raytheon. The Huntsville area is home to the Army’s massive Redstone Arsenal, which employs over 35,000 people, many in the science and engineering fields. NASA’s Marshall Space Flight Center is located on the grounds of the Redstone Arsenal and is the area’s third-largest employer.” Here’s the rest of NerdWallet’s top 10 cities for STEM graduates. No. 2 San Jose, Cali No. 3 Boulder, Colo No. 4 Seattle, Wash No. 5 Durham-Chapel Hill, N.C No. 6 San Francisco, Calif No. 7 Kennewick-Richland, Wash No. 8 Palm Bay-Melbourne, Fla No. 9 Trenton, N.J No. 10 Austin, Texas Alabama News Center: First Alabama-made Airbus A321 ‘BluesMobile’ goes to JetBlue Airbus marked a major milestone at its new Alabama manufacturing facility today as the aviation giant delivered its first U.S.-made A321 passenger jet to customer JetBlue. The plane, which flew for first time on March 21, was nicknamed “BluesMobile.” Workers from the Alabama final assembly line joined the plane on the tarmac at Mobile Aeroplex while a marching band and cheerleaders performed. John Leahy, Airbus chief operating officer, told the crowd that the delivery to JetBlue climaxed years of planning and preparation for the company, which announced plans for the $600 million manufacturing facility in Alabama back in 2012. “The team here at the Airbus U.S. Manufacturing Facility is very pleased and immensely proud to deliver to JetBlue the very first Airbus aircraft manufactured right here in Mobile, Alabama,” said Daryl Taylor, general manager of the Airbus facility. “Going from breaking ground on this facility three years ago to handing over the first Alabama-produced A321 today is an amazing accomplishment,” Leahy said. “It’s a testament to how well executed this project was and how strong the teamwork has been here in Mobile and throughout Airbus. “The Airbus U.S. Manufacturing Facility has brought together all the best aspects of our other assembly lines around the world, and it shows how Airbus people work hand in hand with our partners to deliver great aircraft to our customers,” he added. ‘AIRBUS 1’ Robin Hayes, president and CEO of JetBlue, said the company was honored to take delivery of the first U.S.-made Airbus passenger jet. He presented Taylor with a plaque to mark the occasion. “You’ve done an amazing job building an incredible airplane,” Hayes told the Airbus Alabama workers, who were wearing a blue “Airbus 1” jerseys. Airbus, which now employs about 350 people at the final assembly line, plans to produce four or five A320 Family jets at the Alabama plant. The facility will eventually support 1,000 jobs. “There is no better place to build airplanes in the United States than Mobile, Alabama,” John Leahy said at today’s ceremony. In addition to the JetBlue A321 delivered today, there are nine other A320 Family aircraft in production at the facility. Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. Alabama News Center: Auburn University’s Recreation and Wellness Center named one of the best nationwide Auburn University’s student Recreation & Wellness Center was recently ranked No. 3 on a list of the 35 most luxurious student recreation centers in America. Here’s what College Rank had to say about the 237,981-square-foot center:Featuring a bike repair shop and two 50-foot climbing walls, Auburn’s student recreation center made College Rank’s list for a variety of reasons, according to the college evaluation website. “The goal of the Campus Recreation Department at Auburn University is to enrich student life by promoting physical activity and responsible, healthy choices. To ensure this, Auburn offers programs like the “Healthy Weight Challenge,” which challenges students to stay active and maintain nutritional balance. Cooking classes are also offered to ensure that students complete the challenge. Auburn also has fun options for students with events like the Polar Bear Plunge; where students take a swim in the outdoor leisure pool during the colder months of the year. In addition to these events, Auburn also has several programs and options for students looking to live a healthy lifestyle. Auburn has professional trainers on staff, has fitness assessments, group fitness courses, and a “Pilates reformer”, which adds resistance training to the traditionally mat-based Pilates regimen. The university also has many outdoor options for students and even has a bike rental kiosk for those who simply want to bike around campus.” Auburn’s student center was opened in 2013 after construction was completed by Birmingham’s Robins & Morton and HOK design firm. The facility features a 1/3-mile track, as well as basketball courts, an outdoor leisure pool, cardio/fitness zones and weight training areas. According to the firm HOK’s website, the facility was
Alabama business roundup: Headlines from across state – 4/7/16 edition
Who’s laying off more a quarter of their salaried workforce? What company’s launching a $19 Alabama expansion? Who’s bringing more than 100 jobs to Dothan? Answers to all of these questions and more in today’s business roundup: Birmingham Business Journal: U.S. Steel to lay off a quarter of salaried workforce U.S. Steel Corp. (NYSE:X) announced this week it plans to lay off around 25 percent of its salaried workforce in North America. The cuts come less than a month after the embattled steel producer announced it would lay off 800 workers, including 200 union-represented employees in Alabama. The Pittsburgh-based company has roughly 21,000 employees in North America and about 18,000 are represented by the United Steelworkers union. A 25 percent cut to non-union workers should impact approximately 750 workers. Sarah Cassella, a spokeswoman for U.S. Steel, said the company is not providing an exact count as to how many jobs it plans to cut, or a locational breakdown. U.S. Steel saw a massive $1.5 billion loss in 2015 as the global steel market continues to struggle amid falling demand and competition from other sources both domestic and international. The majority of that loss can be attributed to a fourth quarter net loss of $999 million, when sales and shipments fell by 37 percent and 19 percent, respectively. The waves of U.S. Steel’s losses have been hitting the local manufacturing sector hard. Roughly $91 million of the company’s losses came locally. The blast furnace at the Fairfield Works facility was shuttered in August last year and work on a new electric arc furnace at Fairfield Works facility was postponed soon after, a halt which cost the company millions. More than 1,300 local workers have been laid off since the start of 2015. The company also announced cuts at its mill in Kosice, Slovakia. U.S. Steel’s annual shareholders meeting is scheduled for April 26. AL.com: Population grew in most Alabama metro areas in 2015 Alabama’s metro area population continued to grow, increasing by 14,754 people or 0.4 percent from July 1, 2014 to July 1, 2015, according to the population estimates from the U.S. Census Bureau. Population in non-metro areas of the state continued declining by 0.2 percent or by 2,186 people. Most metropolitan statistical areas saw an increase in their population, but some areas saw a decline. The largest increase of 4,028 people (0.9 percent) occurred in Huntsville while Daphne-Fairhope-Foley saw the largest percentage increase of 2.0 percent or 3,996 people in 2015. Birmingham-Hoover, Auburn-Opelika, and Tuscaloosa metro areas saw population increase of 2,824, 2,567, and 1,919 people, respectively. During the last year, population also increased in Dothan by 178 people, in Mobile by 469, and in Montgomery by 536 people. Meanwhile, the Anniston-Oxford-Jacksonville, Decatur, Florence-Muscle Shoals and Gadsden population declined. Looking closer at the components of population change gives a better understanding of underlying trends in metro area population. Six out of the 12 metro areas experienced both positive natural increase (births minus deaths) and positive net migration (in-migrants minus out-migrants) in 2015. Anniston-Oxford-Jacksonville, Florence-Muscle Shoals and Gadsden had both negative natural increase and net migration that year. For Florence-Muscle Shoals metro, 2015 represented a reverse trend in net migration—the number of in-migrants exceeded the number of out-migrants before, causing positive population growth during previous years. Dothan, Mobile, and Montgomery had births exceeding deaths, but the number of people moving out of the area was higher than the number of people moving into the area. A recent positive trend in employment may have some effect on future metro population. Only Anniston-Oxford-Jacksonville and Mobile saw a decline in annual employment during the period ending in February 2016, according to the preliminary data release by the Alabama Department of Labor. The declines represent 0.2 and 0.3 percent decrease in total employment or loss of 92 jobs and 493 jobs for these two areas, respectively. Other metro areas with population decline in 2015 saw an increase in the number of jobs: Decatur total employment increased by 74 people, Florence-Muscle Shoals by 576, and Gadsden by 1,012 people from February 2015 to February 2016. DATA: Population estimates are available at CBER website: https://cber.cba.ua.edu/edata/est_prj.html. Alabama NewsCenter: Auto supplier Mando launching $19 million Alabama expansion Mando America Corp. plans to invest $19 million in its Alabama manufacturing operation and hire 32 new workers to support the expansion, officials said Tuesday. South Korea-based Mando, one of the world’s largest auto parts suppliers, has based its North American headquarters in Opelika, where it makes brake components, suspension modules and steering systems for U.S. industry customers. As part of the expansion, Mando will add equipment and make improvements over the next three years to its facility in the Northeast Opelika Industrial Park. Once the project is complete, Mando’s Alabama investment will surpass $220 million and its workforce will number more than 700. Mando also expanded in Alabama in 2013 and in 2012. Opelika Mayor Gary Fuller, who announced the project at the City Council meeting, said Mando’s additional investment underscores the manufacturer’s confidence in its Opelika operation. . “Mando is very important to Opelika,” Fuller said. “They are one of our largest manufacturing employers, and we understand this continued investment is a testament to the success they have had in Opelika.” Accelerating growth Mando’s expansion comes amid a growth spurt in Alabama’s auto industry, which last year saw vehicle output eclipse the 1 million mark for the first time. Auto industry employment has surged, and rising production volumes have stimulated rapid growth in the state’s supply chain. “Alabama’s auto sector recorded a banner year in 2015, and it continues to gain momentum through expansion projects like Mando’s in Opelika,” said Greg Canfield, secretary of the Alabama Department of Commerce. “When world-class automotive companies repeatedly expand their operations in the state, the industry gets another reminder that ‘Made in Alabama’ translates into success.” Mando is recognized globally for its innovative automotive chassis components and systems. The company operates 17 production plants and eight research and development centers in 10 countries. “Mando’s new expansion project in
