Southwire to expand its manufacturing plant in Florence creating 120 jobs
Southwire, one of North America’s largest wire and cable producers, announced plans on Friday for an expansion of its manufacturing campus in Florence. The effort is expected to increase production capacity by 30% and create approximately 120 jobs. “At Southwire, we’re making a multi-year investment of more than a billion dollars to integrate newer and better equipment, systems, and technology into our operations to increase efficiency,” said Southwire President and CEO Rich Stinson. Stinson said the expansion will, “Enhance competitiveness and ensure the operational capability and capacity to support our strategic growth. The Florence expansion is a testament to those efforts.” Economic developer Dr. Nicole Jones told Alabama Today, “Southwire’s commitment to long-term growth is evident with its latest expansion announcement. The Shoals location investment, which focuses on commercial and residential building wire production, will add 120 jobs to its current total of 625+. A productive, welcoming environment in which companies choose to re-invest in existing buildings, employees, and the local community is a testament to partnerships between the public and private sector and a framework conducive for business.” Southwire also has a facility in Heflin and an Alabama statewide workforce exceeding 625. Greg Canfield is the Secretary of the Alabama Department of Commerce. “Southwire’s investment project will create good-paying jobs in Florence while also enhancing the facility’s competitiveness and solidifying its future in the community,” said Sec. Canfield. “Southwire is a world-class company and a great corporate partner at the state and local level. We’re thrilled to see them grow and thrive in the Shoals area.” The Southwire Florence Plant was acquired from Essex in 2006 to support the company’s production of commercial and residential building wire. The 300,000-square-foot campus has grown over time, and this expansion will include approximately 340,000 square feet of added space for new equipment. Norman Adkins is the president of Wire and Cable and the COO. “Southwire is committed to remain generationally sustainable for the next 100 years and beyond and be an employer of choice,” said President Adkins. “We look forward to the growth opportunities that this expansion will bring to our company.” The expansion not only increases operating space and new equipment but will include renovations to the existing building to enhance the team member experience, including locker rooms, training space, and an outdoor picnic and activity area. “This investment will allow us to better service our customers safely and efficiently, and the Florence team and I are very excited about the expansion and what it means for the future,” said Brian Davis, plant manager. “This expansion speaks volumes about the dedication, hard work, and commitment of our team members, and we look forward to the opportunities that this expansion will bring.” The investments and upgrades will effectively streamline Southwire’s commercial and residential building wire efforts, complement existing products and emphasize the facility’s culture and labor pool. Construction at the Florence campus is expected to begin this quarter and should be completed in 2025. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey meets with Japanese Consul General Mio Maeda
On Tuesday, Governor Kay Ivey met with Japanese Consul General Mio Maeda in Montgomery. Japan is one of Alabama’s top trading partners, and many Japanese companies, including Honda, Toyota, and Mazda, have a substantial manufacturing presence in Alabama. “I was honored to host Consul General Maeda in my office this morning,” Gov. Ivey said on Twitter. “With over 80 Japanese companies that call Alabama home, this robust relationship has produced great economic growth across the state. Truly, there is no stronger partner state to Japan than Alabama.” Gov. Ivey and Consul General Maeda were joined by Alabama Commerce Secretary Greg Canfield. Sec. Canfield said on Twitter, “Good meeting today between Consul General Maeda and Governor Ivey. Thank you to Honorary CG Mark Jackson for his assistance.” “The Southeast has strong ties with Japan,” Maeda said on the Atlanta consulate’s homepage. “These states host a large number of Japanese companies and offer a direct flight to Japan from Hartsfield-Jackson Atlanta International Airport, which is said to be the busiest airport in the world.” Maeda became Consul General in Atlanta on November 3, 2022. Maeda has served in Japan’s Ministry of Foreign Affairs since 1990, but this is his first position in the United States. He previously served as the Deputy Head of Mission at the Japanese Embassy in Switzerland located in Bern. In 2013, Maeda worked as Minister-Counselor and Deputy Head of Mission at the Embassy of Japan in the Islamic Republic of Afghanistan, and in 2014 returned to Japan to serve as Director of the Southwest Asia Division (Southeast and Southwest Asian Affairs Department, MOFA, Japan). He served in the Imperial Household Agency in 2015. He was appointed Chamberlain to HIH, the Crown Prince of Japan, and later as Chamberlain to HM the Emperor of Japan, until 2019, when he was assigned to the Embassy in Switzerland. Maeda is married and has one daughter. He resides in Atlanta with his wife. “The Southeast is great not only for business but also the Southeast is blessed with land full of nature and famous for its people’s ‘Southern Hospitality,’” Maeda added. “I’ve heard this is a very comfortable and good area to live. I would like to get used to life here and make my own form of hospitality combining Japanese ‘omotenashi’ and Southern’ hospitality.’” Japan is Alabama’s fifth largest trading partner, trailing only Germany, China, Canada, and Mexico. Alabama exported one billion dollars worth of goods to Japan in 2022 – a 42% increase from 2021. Alabama set a new record of $25.5 billion in exports in 2022. Probably even more important has been Japanese investment in Alabama. Investments in Alabama from South Korea, Canada, Japan, and Germany are credited by Canfield with contributing to $1.8 billion in investments in rural Alabama in 2022, creating 1,900 new jobs. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey awards six Alabama companies with Trade Excellence
On Wednesday, Alabama Governor Kay Ivey hosted the Governor’s Trade Excellence Awards Ceremony. During the event, Governor Ivey signed a proclamation proclaiming May as World Trade Month. This year’s ceremony recognized six of Alabama’s top international trade exporters and finest trade companies, as well as the 2023 Trade Advocate of the Year. “I recognized @TuskegeeUniv and six Alabama companies for their trade success in the global market,” Gov. Ivey said on Twitter. “Their economic activities ranged from automotive manufacturing to food production.” The six exporters honored in the Governor’s Trade Excellence Awards were: · Adah International LLC · Bud’s Best Cookies · Canfor Southern Pine · Hyundai Motor Manufacturing Alabama · ICONN Orthopedics · Pinnacle Solutions, Inc. “Their work has sparked record-breaking economic growth across the state,” Ivey stated. “Thanks to tremendous levels of innovation, craftsmanship, and ingenuity, Alabama’s talented workers turn out products that are in demand around the world,” Governor Ivey said. “These products really elevate the ‘Made in Alabama’ brand and transmit the message internationally that top-quality goods come from our state.” Governor Ivey presented Tuskegee University with a 2023 Governor’s Trade Excellence Award for extraordinary results in international initiatives that include partnerships with dozens of overseas universities and hosting students from more than 20 countries in recent years. Economic developer Dr. Nicole Jones told Alabama Today, “Alabama has a plethora of international trade partners that exemplify the Made in Alabama brand. The Governor’s Trade Excellence Awards gives outstanding organizations well-deserved recognition for their contributions to our state’s success in global markets. Considering the myriad of global disruption that has dominated worldwide news in recent years, it is impressive that Alabama maintained $25.5 billion in exports in 2023. Other countries have demonstrated a continued need for made-in-Alabama goods, especially in the industries of transportation, aerospace, chemicals, minerals, and paper products.” Greg Canfield is the Secretary of the Alabama Department of Commerce. “Exporting is a driving force in Alabama’s economy, providing benefits here at home that include new jobs and investments,” Sec. Canfield said. “The vision of our companies to be international leaders in their respective fields is most impressive, and we look forward to seeing their continued success in overseas markets.” Christina Stimpson is the Director of Commerce’s Office of International Trade. “We are proud to have worked with all the companies represented today and to have assisted them in identifying international opportunities,” Stimpson said. “The communities where they are located are fortunate to have them because, through exporting, they’re diversifying the economy, growing their production, and creating and sustaining jobs.” Alabama exports surged to a record $25.5 billion in 2022. The Department of Commerce’s Office of International Trade offers resources to assist Alabama companies enter new overseas markets. The Office uses its frequent trade and business development missions, training, foreign-market information, and international contacts to further Alabama companies’ international presence. “Economic development is a continuous process of cultivating relationships, investing in human capital, and working with communities to find their hidden talent within,” Jones explained. “Governor Ivey, the Alabama Department of Commerce, and leaders within the public and private sector work every day to make Alabama a place where a myriad of industries can grow and prosper.” To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Polaris begins shipping first all electric off road vehicles
Polaris has begun shipping the first fully electric RANGER XP Kinetic off-road vehicles from its Huntsville factory to dealerships. These first production all-electric off-road vehicles have all already been ordered by customers. The company began production of the all-electric off-road vehicles this month. Steve Menneto is the president of Off Road at Polaris. “Since announcing our electrification efforts and partnership with Zero Motorcycles, it has been major milestone moments like today’s announcement that have motivated and driven our team to engineer and deliver category-redefining powersports vehicles,” said President Menneto. “The RANGER XP Kinetic demonstrates the game-changing performance advantages that an electric powertrain can provide, and we look forward to getting these vehicles into the hands of our dealers and consumers across the country.” The all-electric Ranger has proven to be very popular with Polaris customers. The company plans to take additional orders on the RANGER XP Kinetic this summer. Josh Hermes is the Vice president of Electric Vehicles for Off Road at Polaris. “We knew there would be interest for a performance-driven electric RANGER, but selling out two hours after opening our initial order window for the XP Kinetic exceeded our expectations,” said VP Hermes. Polaris is based in Minneapolis and produces off-road vehicles, including all-terrain vehicles, snowmobiles, and side-by-side vehicles. The company opened its 900,000-square-foot facility in Huntsville in 2016. Economic developer Dr. Nicole Jones told Alabama Today, “Polaris has been a partner with the state of Alabama since 2016, and the company can now add electric off-road vehicles to its Made in Alabama portfolio. The Huntsville facility is one of Polaris’ largest manufacturing plants, which makes the Slingshot, the RANGER, and most recently, the RANGER XP Kinetic. Several companies in Alabama are on the cutting edge of research and development of electric vehicle technology, a sustainable alternative to fossil fuels.” Greg Canfield is the Secretary of the Alabama Department of Commerce. “From automobiles and airplanes to ships and rockets, Alabamians build all kinds of complex vehicles,” said Secretary Canfield. “Now we can add all-electric off-road vehicles to the list of world-class products made in Alabama.” Other vehicle manufacturers in Alabama have also begun production of all-electric products. Both Mercedes-Benz and Hyundai are producing all-electric vehicles at their Alabama facilities. Autocar, a maker of specialized trucks, delivered its first EV built in Alabama, a battery-electric terminal tractor, last year. New Flyer of America is making zero-emission buses in Anniston. Mercedes is already producing the all-electric EQS SUV at its Tuscaloosa County plant. The company recently announced plans to build the luxury all-electric Mercedes-Maybach EQS 680 SUV in Tuscaloosa. The new luxury vehicle will have two electric motors that are expected to produce 649 horsepower and be capable of accelerating from zero to 60 mph in 4.1 seconds. The range on the new Maybach is expected to be over 285 miles. The all-electric Polaris comes equipped with an on-dash USB port and a 12-v cargo box power port for customers to charge their phones, tools, and accessories. The quietness of the all-electric Ranger XP Kinetic means that it can quietly get a hunter to his tree stand or hunting blind without tipping off everything with ears within a quarter mile like gas engines. The quiet electric engine will also be less disturbing for farmers and ranchers working around livestock. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey signs ‘The Game Plan’ legislation
On Thursday, Alabama Gov. Kay Ivey signed a package of four bills to extend and expand the economic incentive tools available to state financial planners. The Alabama Legislature passed the package of bills on Thursday morning, promising that the four “Game Plan” bills are the “plays” Alabama needed to call to have a bright future. “I am proud the Alabama Legislature has officially passed all four bills in The Game Plan package – my plan for our state’s continued economic success,” Ivey said in a statement. “I commend both the Senate and House for their incredible work on this timely legislation that will, no doubt, be transformative for our state and, more importantly, for our families. We are creating stability for our economy and are going to keep Alabama winning for many years to come.” “The Game Plan will give Alabama’s team the tools it needs to extend our winning record in economic development and help us unleash a new wave of growth and innovation across the state,” said Gov. Ivey. “From our rural areas to our big cities, this is going to benefit every corner of Alabama.” Senate President Pro Temp Greg Reed said that passage of the package was a victory for the state and its future. “The Game Plan is a multi-pronged approach to strengthen Alabama’s economy from all angles,” said Reed. “The four ‘plays’ are effective pieces of legislation that will help Alabama’s local communities thrive by attracting high-quality employers, creating jobs, and stimulating economic growth.” Speaker of the House Nathaniel Ledbetter said that the package would benefit Alabamians by better positioning the state to compete for the best jobs in the country. “Industries across the nation and globe are trying to come here because of our great employees, our low taxes, and our unbeatable quality of life,” said Ledbetter. “We want to make sure that, from a competition standpoint, we have the tools needed to bring companies here and keep them here.” Greg Canfield is the Secretary of the Alabama Department of Commerce. “The Game Plan will serve as our next-generation strategic economic development framework as we work to build a more dynamic economy for Alabama and its citizens,” said Secretary Canfield. “Neighboring states are aggressively escalating their economic development activities, and this will allow us to keep winning the projects that trigger lasting impacts.” The Alabama Big 10 Mayors praised the passage of the economic development Incentives bills. Passing the economic incentives legislation was item number one on the Alabama Big 10 Mayors’ 2023 legislative agenda. “These incentives programs are critically important to our cities and the entire state of Alabama,” the Alabama Big 10 Mayors said in a joint statement. “For our cities to be successful, we need to have the tools to attract new industry, businesses, and high-quality jobs. These bills give Alabama the ability to not just remain competitive, but also increase our ability to attract the world-class businesses and developments that improve the quality of life across our state.” “We thank Governor Kay Ivey, legislative leadership and their members, the Department of Commerce, and the many stakeholders who worked tirelessly to make this happen. We were proud to support this package of bills, and we look forward to seeing the impact that these incentives programs will have on each of Alabama’s ten largest cities.” The Mayors representing Alabama’s ten biggest cities work together to address the state’s most important issues and make Alabama a safer, better place for all its residents to live. The Alabama Big 10 Mayors include Auburn Mayor Ron Anders, Birmingham Mayor Randall Woodfin, Decatur Mayor Tab Bowling, Dothan Mayor Mark Saliba, Hoover Mayor Frank Brocato, Huntsville Mayor Tommy Battle, Madison Mayor Paul Finley, Mobile Mayor Sandy Stimpson, Montgomery Mayor Steven Reed, and Tuscaloosa Mayor Walt Maddox. The Game Plan includes four bills — or “plays” — focusing on economic development issues such as incentives, site development, small business support, and transparency. Play 1: The Enhancing Alabama’s Economic Progress Act renews the Alabama Jobs Act and the Growing Alabama program and extends their sunset dates to 2028 while adding strategic enhancements to increase their effectiveness. The Jobs Act is the state’s primary incentives platform, while Growing Alabama primarily speeds development of shovel-ready sites. Play 2: The Site Evaluation and Economic Development Strategy Act (SEEDS) will allow the State Industrial Development Authority to accelerate the development of industry-ready sites at a time when available sites are scarce, and other states are expanding their site programs. Play 3: The Innovation and Small Business Act aims to supercharge growth in Alabama’s innovation economy and support underrepresented businesses and enterprises in rural areas, transforming the state into a hub for technology and innovation. Play 4: The Enhancing Transparency Act will amend the Jobs Act to require the Alabama Department of Commerce to publish certain incentivized project information on its website. Transparency around important information related to companies receiving incentives will serve a valid public service and increase confidence in the process. Critics of the idea of economic incentives to lure industry and projects argue that it is corporate welfare and picking winners and losers, but there were no critics in the Alabama Legislature as the plan sailed through both Houses. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey launches Game Plan legislative package
On Monday, Governor Kay Ivey launched what plan for Alabama’s continued economic success. Called “The Game Plan,” the proposed package consists of four economic development bills. Governor Ivey was joined by the leadership of the Alabama Legislature to signal bipartisan support for The Game Plan. Ivey spoke with reporters at Montgomery’s Riverwalk Stadium. “The Game Plan will position Alabama for a new era of vigorous growth, allowing us to continue our record-breaking economic development success while providing new levels of support for the state’s innovation economy,” said Gov. Ivey. “This package will benefit all Alabamians, those living in both urban centers and rural areas, and ensure our citizens are ready for high-paying careers.” The Game Plan package includes four bills — or “plays” — that will be introduced during the current session of the Legislature. According to the governor’s plan: • Play 1: The Enhancing Alabama’s Economic Progress Act renews the Alabama Jobs Act and the Growing Alabama program and extends their sunset dates to 2028 while adding strategic enhancements to increase their effectiveness. The Jobs Act is the state’s primary incentives platform, while Growing Alabama primarily speeds development of shovel-ready sites. • Play 2: The Site Evaluation and Economic Development Strategy Act (SEEDS) will allow the State Industrial Development Authority to accelerate the development of industry-ready sites when available sites are scarce and other states are expanding their site programs. • Play 3: The Innovation and Small Business Act aims to supercharge growth in Alabama’s innovation economy and support underrepresented businesses and enterprises in rural areas, transforming the state into a hub for technology and innovation. • Play 4: The Enhancing Transparency Act Enhancing will amend the Jobs Act to require the Alabama Department of Commerce to publish certain incentivized project information on its website. Transparency around important information about companies receiving incentives will serve as a valid public service and increase confidence in the process. Ivey was joined by Lt. Gov. Will Ainsworth, state Senate President Pro Temp Greg Reed, Speaker of the House Nathaniel Ledbetter, Senate Minority Leader Bobby Singleton, and House Minority Leader Anthony Daniels. Greg Canfield is the secretary of the Alabama Department of Commerce. “The Game Plan represents the state’s next-generation strategic economic development framework, designed to future-proof Alabama’s economy and provide a blueprint for growth that lifts families and communities across the state,” said Secretary Canfield. “It will keep us competitive for high-impact projects as our neighboring states are aggressively escalating their economic development efforts.” Canfield and Ivey credit the Jobs Act with bringing $22 billion in new capital investment and 40,000 jobs to the state. The jobs created by these projects will pay an average hourly wage of $23.42, a figure that is 31% more than the state’s median wage, according to Commerce data. If the Legislature does not renew the Jobs Act, it will expire on July 31 of this year, as will the Growing Alabama tax credit program. State and local governments will not be able to offer the incentives that the state has been offering over the last dozen years. Ivey has announced that economic development projects in 2022 will bring over $10 billion in new capital investment to the state, setting a new annual record. “Our goal is simple — we want to have the best incentives not only in the Southeast but in the nation as a whole,” said Lt. Gov. Ainsworth. “Reauthorizing these programs is going to be essential in attracting high-paying, long-lasting 21st Century jobs.” “When you look at the issues Alabamians care about, economic development and job creation are at the top of that list. States around our region are all competing to attract jobs and create economic growth,” said Sen. Reed. “We need to make sure we are best positioned to attract these good-quality jobs to communities in our state.” “Industries across the country are trying to come here because of our great employees, our low taxes, and because of our great quality of life,” said Speaker Ledbetter. “From a competitive standpoint, we want to make sure we have the tools necessary to bring them here and keep them here.” “Growing Alabama’s economy and creating good jobs for our citizens is something we can all agree on,” said Sen. Singleton. “We will continue to promote practical and meaningful legislation and policies that highlight our pro-growth, pro-innovation platform,” said Leader Daniels. Critics have criticized the state’s incentives program as the state government picking winners and losers. However, this package seems to have bipartisan support from the leadership of both political parties, and there has been no public opposition from any legislators. It appears to be on the fast track toward passage. Tuesday will be day 5 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey to announce launch of economic development agenda
On Monday, Alabama Governor Kay Ivey will officially launch her push to pass economic development bills at an announcement event in Montgomery. Ivey will present “The Game Plan,” her plan for Alabama’s continued economic success. “The Game Plan” is a proposed package of four economic development bills that Ivey insists will strengthen the state’s competitiveness for job-creating projects. Ivey will be joined by Alabama Department of Commerce Secretary Greg Canfield, Senate President Pro Tempore Greg Reed, Speaker of the House Nathaniel Ledbetter, Senate Minority Leader Bobby Singleton, House Minority Leader Anthony Daniels, and Lieutenant Governor Will Ainsworth. Ivey has made renewing the state’s economic incentives a key goal of her administration this legislative session. “I am proud of the successful track record we have had in recruiting business and industry to both the rural parts of Alabama and the larger cities,” Ivey said in her state of the state address. “Since I’ve been governor, more than $42 billion have been invested in our state, which has created some 78,000 new jobs. For most of those, we can thank the Alabama Jobs Act. And any good coach knows when you have a play that’s working, the team needs to keep running it. Today, we have to look ahead and create an economic development strategy for the 2030s. I assured you we would have a winning game plan here at home, and tonight, I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan. We will ensure stability and growth by renewing and improving the Alabama Jobs Act and the Growing Alabama Act.” Speaker Ledbetter has said that renewing the Alabama Jobs Act would be one of the legislature’s first priorities. “(The Alabama Jobs Act) is going to be priority No. 1 coming back after break. I think you’ll see a big push for that,” Ledbetter stated. “They’ve been very positive for our state. We’ve seen the job growth has been tremendous because of it. We’ve looked at the numbers; we got a return on the investment of 173% over a 20-year period.” Ledbetter believes legislation on this needs to be done quickly. The Alabama Jobs Act, created in 2015 and set to expire this year, has netted $256.8 million in incentives, Sec. Canfield reported in 2022. This amount outpaced the department’s benchmark of $164.6 million. The Joint Study Commission on Renewing Incentives has discussed extending the Jobs Act through 2028 with a higher payout cap. Legislation has not been filed yet. The Jobs Act created two separate incentives: The Alabama Jobs Credit and Alabama Investment Credit. The Jobs Credit gives companies cash rebates on their previous year’s payroll for qualified employees, and companies can get higher rebates if they locate in rural parts of the state or hire veterans. The Investment Credit addresses a company’s capital investment and can be applied to several taxes, including income. Companies can receive incentives for up to 10 years. The incentives are currently capped at $350 million annually. Canfield said the Jobs Act has helped the state recruit 217 projects creating more than 38,000 jobs, and he believes the $350 million cap should be increased. During her state of the state address, Ivey also proposed a plan to dole out $200 million in direct cash payments to Alabama businesses. “I am also proposing we invest even more into our locally owned businesses – the ones engrained into the DNA of our communities – through a $200 million grant program known as our Main Street Program,” Ivey said. “These competitive grants will help revitalize our small cities and towns. When folks think of main streets, they should think of rural Alabama!” Unemployment has dropped to just 2.5%, and state revenues have soared under Ivey. The state is so flush with cash that on September 30, it rolled $3 billion in surpluses from the 2022 fiscal year into the 2023 budget year. Renewing economic incentives is also a priority of Alabama’s Big Ten Mayors. The Mayors of Alabama’s ten biggest municipalities support the reauthorization and accompanying expansion of the Alabama Jobs Act and the Growing Alabama Act. The Mayors claim that the incentive programs established by these bills are critical to keeping Alabama’s economy globally competitive as we work to attract new businesses and jobs to our communities. Some fiscal conservatives have criticized the push to renew incentives. “Economic incentives should be Alabama’s last resort in securing new businesses,” the Alabama Policy Institute’s Justin Bogie argued recently. “Lower tax rates and a better-educated workforce will be enough incentive. It will also improve the lives of all Alabamians.” At this point, it appears that the Governor’s plan, with perhaps some minor alterations in the legislative process, will pass the Alabama Legislature with broad bipartisan support. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama automakers hitting new milestones with electric vehicle production underway
Alabama Commerce Secretary Greg Canfield said in a statement that the Alabama auto industry is moving forward with electric vehicle production. “Alabama’s auto sector is poised for a pivotal year in 2023, as our automakers respond to major industry challenges, embrace new technologies and continue to turn out high-quality vehicles that are in demand around the world,” Canfield said. “Hyundai’s Alabama plant recently began assembling its first all-electric SUV, the electrified Genesis GV70, following the production launches of EQS and EQE luxury sport utilities at the Mercedes-Benz facility,” Canfield continued. “Meanwhile, Honda’s plant is planning updates for some of its Alabama-made models, and the new Mazda Toyota Manufacturing factory is proceeding with its hiring plans.” “As always, these automakers are forging ahead with ambitious growth strategies while devising innovations that herald promising futures for their products, their employees, and their communities,” said Canfield. “These companies have a proven track record of success — of adapting, reimagining, and transforming what they offer to customers — and their Alabama workers are helping to fulfill that mission in markets around the world. We can all be proud of that.” Economic developer Dr. Nicole Jones said, “The state of Alabama has over 25 years of steady growth in the automotive manufacturing industry because of continued collaboration between the public and private sector in the areas of R&D, workforce development, and overall industry needs.” “Alabama offers a business-friendly climate that includes a quality and skilled workforce, low taxes, competitive incentives, and an excellent quality of life – all which facilitate an environment conducive for business,” Jones continued. “We are excited about the future ahead for the many automotive manufacturers and suppliers throughout our state.” Hyundai began assembling its first all-electric SUV, the electrified Genesis GV70, at its plant in Montgomery. Mercedes has launched the production of EQS and EQE luxury sport utilities at the Mercedes-Benz facility in Vance. Honda has begun updating some of its Alabama-made models at its facility in Lincoln. The new Mazda Toyota Manufacturing factory in Limestone County began production in 2022 and is continuing to hire workers. The joint venture company is continuing its hiring push. MTM’s investment in the plant is $2.311 billion. Canfield is urging legislators to renew and expand the state’s economic incentives package. The Alabama Jobs Act was created in 2015 and is set to expire this year. Canfield said that the Jobs Act has netted $256.8 million in incentives, outpacing the department’s benchmark of $164.6 million. The incentives are currently capped at $350 million annually. Canfield said the Jobs Act has helped the state recruit 217 projects creating more than 38,000 jobs, and he believes the $350 million cap should be increased. The state was able to develop Alabama’s booming automobile manufacturing sector with the assistance of economic incentives. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama lawmakers set to focus on Jobs Act and economic incentives for 2023 session
Now that the Alabama Special Session is done and ARPA funds have been allocated, leaders can focus on the 2023 regular session that begins on Tuesday. Speaker of the House Nathaniel Ledbetter explained that the Alabama Jobs Act would be one of their first priorities. “(The Alabama Jobs Act) is going to be priority No. 1 coming back after break. I think you’ll see a big push for that,” Ledbetter stated. “They’ve been very positive for our state. We’ve seen the job growth has been tremendous because of it. We’ve looked at the numbers; we got a return on the investment of 173% over a 20-year period.” Ledbetter believes legislation on this needs to be done quickly. The Alabama Jobs Act, created in 2015 and set to expire this year, has netted $256.8 million in incentives, Secretary of Commerce Greg Canfield reported in 2022. This amount outpaced the department’s benchmark of $164.6 million. The Joint Study Commission on Renewing Incentives has discussed extending the Jobs Act through 2028 with a higher payout cap. Legislation has not been filed yet. The Jobs Act created two separate incentives: The Alabama Jobs Credit and Alabama Investment Credit. The Jobs Credit gives companies cash rebates on their previous year’s payroll for qualified employees, and companies can get higher rebates if they locate in rural parts of the state or hire veterans. The Investment Credit addresses a company’s capital investment and can be applied to several taxes, including income. Companies can receive incentives for up to 10 years. The incentives are currently capped at $350 million annually . Canfield said the Jobs Act has helped the state recruit 217 projects creating more than 38,000 jobs, and he believes the $350 million cap should be increased. Canfield discussed on Twitter how rural areas have benefited from the Jobs Act as much as urban areas. “We are going to continue to build on that success,” Canfield stated. “Alabama has led the Southeast in economic development, job creation, and industrial recruitment for roughly 20 years, and much of that success is the result of the incentives we offer,” Lt. Governor Will Ainsworth told Alabama Daily News on Thursday. “If we are going to continue that incredible success for decades to come, our incentives must remain competitive with those offered by our sister southeastern states, and this proposal does just that in a conservative, common sense manner. The pay-as-you-go package we have crafted also ensures taxpayers are protected from companies that are unable to fulfill their commitments.” Other recommendations from the task force in December included: Several lawmakers agreed that focusing on the Jobs Act is a priority for the Legislature. “When we come back, the economic incentive package to me is the No. 1 priority,” Rep. Marcus Paramore stated. “I want to make sure that gets done, make sure it gets out, make sure we can continue to recruit good businesses and good high-quality jobs for our constituents.” Rep. Phillip Ensler said, “But as with any bill, I want to look at the details, and having it done in a way that is equitable and making sure that we’re doing it in a way where the numbers of it make sense.” Lawmakers will meet for three legislative days next week, Tuesday through Thursday.
Sunbelt Solomon Services to build a $5 million facility in Coffee County
On Tuesday, Alabama Governor Kay Ivey announced that Sunbelt Solomon Services plans to open a new facility in Coffee County to repair and recycle electrical transformers. Sunbelt Solomona is one of the world’s largest providers of commercial and industrial electrical distribution equipment. The Kansas-based company will invest over $5 million in the facility in Elba, creating 50 jobs initially, with more to come as the operation grow. “Sunbelt Solomon is a welcome addition to Alabama’s dynamic business community,” said Gov. Ivey. “The company has made a great choice by locating this new operation in Coffee County, and I know the hard-working people of Elba will help make it a long-lasting success. This is just another reminder that Sweet Home Alabama is a top state for business.” Sunbelt Solomon will base its operation in an existing building at 2450 Industrial Boulevard in Elba, where it will install manufacturing equipment and outfit its office. The facility will officially open its doors for business in June. “Elba is the first greenfield facility we’ve built in several years, reaffirming our strategy of getting closer to our customer base while developing the human capital wherever we operate,” said CEO Gus Cedeño. “Sunbelt Solomon is excited to provide new, well-paying jobs and career paths to the Elba community while continuing the growth and expansion of our business.” Economic developer Dr. Nicole Jones told Alabama Today, “Sunbelt Solomon has over 100 years of combined experience and takes pride in providing comprehensive solutions for utility, industrial, and commercial applications. The company has experience in transformers, regulators, recycling, reclosers, field service, and oil processing. Their latest announcement is an exciting expansion for the Elba plant in Coffee County and is the first greenfield facility Sunbelt Solomon has added to its portfolio in several years.” “We are committed to an excellent customer experience, and expanding our footprint in Alabama brings us closer to many of our valuable customers, increasing our ability to provide fast and dependable services,” Cedeño added. The new job will pay from $18 to $37 an hour. The average salary range for roles offered at Sunbelt Solomon’s new facility is anticipated to be 45% higher than the annual salary range for existing manufacturing roles in Coffee County, according to the Alabama Department of Labor. Sunbelt Solomon also offers its employees a competitive suite of benefits, including health care coverage, annual incentive compensation, and opportunities for advancement. The company’s growth project is expected to boost Elba economically. The city’s population has declined since 1970, and today, the Southeast Alabama city has just 3,379 residents. Greg Canfield is the Secretary of the Alabama Department of Commerce. “Growing companies like Sunbelt Solomon are discovering that Alabama offers abundant opportunities that will help them expand the scope of their operations,” said Sec. Canfield. “I look forward to seeing Sunbelt Solomon put down roots in Elba and watching this operation thrive.” Jesse Quillen is the executive director of the Wiregrass Economic Development Corp. “The new jobs, new capital investment, and new energy provided by Sunbelt Solomon are all incredibly important and attractive for Elba citizens; but, I believe the most important and welcome attribute that Sunbelt Solomon brings to Elba is its tremendous corporate culture, as exhibited throughout this process,” said Quillen. “Sunbelt Solomon’s corporate culture will be a perfect fit in Elba.” Tom Maddox is the Mayor of Elba. “On behalf of the citizens of Elba, we are thrilled to have a new corporate citizen in Sunbelt Solomon,” Maddox said. “The investment and jobs that will be provided bring a great deal of energy and excitement to our community.” To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Nucor Corp. plans $125 million facility, creating 200 jobs in Decatur
Governor Kay Ivey on Wednesday announced that Nucor Corp. plans to invest approximately $125 million to open an advanced manufacturing facility in Decatur. There, a new business unit – Nucor Towers & Structures, will produce transmission towers. “Alabama offers world-class companies like Nucor all the advantages they need to find success, including a skilled workforce, a pro-business environment, and a solid support system,” said Gov. Ivey. “This investment project is a win for Nucor, Decatur, and all of Alabama.” The new plant will create 200 full-time jobs. The positions will have an average annual compensation of $75,000 and will be filled over a four-year period. Leon Topalian is the Chair, President and CEO of Nucor Corp. “We are very excited to be building this new tower production plant in Alabama, where Nucor has a long history and presence throughout the state,” said Topalin. “As America’s most diverse industrial manufacturer of steel products, we will be able to efficiently supply this new plant, helping to ensure that our nation’s critical energy and digital infrastructure is built with the cleanest, most sustainable steel in the world.” Charlotte, North Carolina-based Nucor already has a strong presence in Alabama. The company established the new business unit after it acquired both Summit Utility Structures LLC and Sovereign Steel Manufacturing LLC in 2022. The new division produces metal poles and other steel structures for utility infrastructure and highway signage. Nucor’s existing facilities in Alabama produce steel, tubular products, joists, and decking, as well as metal buildings. The company has locations in Birmingham, Tuscaloosa, Fort Payne, Eufaula, and Decatur. Economic developer Dr. Nicole Jones told Alabama Today, “Nucor and the steel industry have a long history and presence in Alabama. Nucor’s product lines serve an array of commercial customers in the fields of agriculture, automotive, construction, energy transmission, heavy equipment, infrastructure, transportation, oil & gas, and more. Nucor’s latest expansion, Nucor Towers & Structures, will be an advanced manufacturing facility that makes transmission towers. The company’s capital investment in Decatur will include land improvements, construction of a new building, and manufacturing equipment. The new plant will be located adjacent to the Nucor Steel Decatur sheet steel mill. Greg Canfield is the Secretary of the Alabama Department of Commerce. “Nucor Corp. has a long-standing manufacturing presence in Alabama, and it’s great to see the new Nucor Towers & Structures business unit commence operations in Decatur,” said Sec. Canfield. “Over the years, we’ve developed a strong partnership with Nucor, and I look forward to seeing our relationship expand with this new venture.” The new plant in Alabama will be highly automated. The factory will utilize efficient straight-line production and will also include advanced hot-dip galvanizing operations. Laurent De Mey is the General Manager of Nucor Towers & Structures. “We appreciate the support we have received from the state and local officials in Alabama, including Governor Ivey, the Alabama Department of Commerce, the State of Alabama State Industrial Development Authority, Morgan County Economic Development Association, Morgan County Economic Development Cooperative District, Morgan County, Decatur Industrial Development Board, City of Decatur, Decatur-Morgan County Chamber of Commerce, Hartselle Chamber of Commerce, and the Tennessee Valley Authority,” said De Mey. “We are excited to launch our expansion of this new Nucor business in the State of Alabama.” “The direct and indirect jobs resulting from Nucor’s expansion will provide significant economic benefits for Decatur, Morgan County, and our entire state,” Jones said. State Senator Arthur Orr serves as chairman of the Morgan County Economic Development Association. “It is a true vote of confidence in our community when an existing business decides to further expand its operations here. Our people are our strength in Morgan County,” said Sen. Orr. “We are grateful for the excellent job they do for employers like Nucor and others across the area.” Ray Long is the chairman of the Morgan County Commission. “This is a great company with a great reputation for working with us to make Morgan County a better place to live,” said Chairman Long. “We look forward to working with them to make sure this venture is successful,” said Long. “We are also thankful for the approximately $125 million investment and the 200 jobs created with a compensation of around $75,000,” said Decatur Mayor Tab Bowling. “Our local economic development office, along with its numerous partners, continue to work hard to bring new industries and quality jobs to Decatur. This is a prime example of that work.” “Metals and advanced materials are one of our state’s targeted business sectors,” Jones explained. “Alabama Department of Commerce data from 2021 shows primary metal manufacturing exports valued at approximately $1.3 billion, and fabricated metal manufacturing exports valued at $453 million.” To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Foreign investment accelerates with new growth projects in Alabama
With new growth projects underway in key industries such as automotive and aviation, foreign direct investment continues to be a powerful catalyst in Alabama’s economy, casting a wave of job creation and triggering positive ripple effects. Since 2018, foreign companies have launched investment projects valued at more than $13 billion across Alabama, generating nearly 17,000 job commitments, according to the Alabama Department of Commerce. While final figures aren’t tallied for 2022, foreign direct investment (FDI) projects topping $2.6 billion were announced and will bring at least 2,600 new jobs to the state, according to a preliminary estimate from the Department of Commerce. Those figures exceed the FDI totals for 2021 when $1.1 billion of new investment generated 1,700 job commitments. “The success of the companies operating in Alabama is a story that’s being told around the world, and that’s helped us recruit many important global companies to our state,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Here at home, that’s meant much-needed new investment and lucrative jobs for communities across the state,” he said. Major FDI projects launched in 2022 include: After a $300 million investment, Hyundai is building the hybrid version of its Santa Fe SUV and the first electrified Genesis GV70 SUV at its Montgomery plant. (Hal Yeager / Governor’s Office) Global gateway Foreign investment has long been a major economic driver for Alabama. Select USA, a government initiative that facilitates foreign business investment across the nation, estimates that more than 120,000 jobs in Alabama are tied to FDI projects in industries, led by automotive, plastics, metals, and chemicals. Top sources for foreign investment in Alabama are Germany (23%), Japan (16%), and South Korea (13%), according to Select USA. Christina Stimpson, director of the Commerce Department’s Office of International Trade, said FDI accounts for a substantial share of the new and expanding industry activity in Alabama each year. Her office supports FDI attraction efforts to heighten awareness that Alabama represents a global gateway to the U.S. “Clearly, facilitating foreign investment is a huge priority for us as a state, and we’re fortunate to have a diverse base of industries, along with a highly skilled workforce, to attract and retain these commitments from global companies year after year,” Stimpson said. “We know that FDI adds vitality to local economies seeking strong industries and job-creation potential because we can point to many examples in Alabama where this has had a huge impact,” she said. Mercedes-Benz opened a battery factory on the automaker’s Bibb County campus a few months before starting production of electric vehicles in Alabama in 2022. (Hal Yeager / Governor’s Office) Rural spark Foreign direct investment has spurred economic growth in recent years in rural parts of the state. Between 2015 and 2021, Alabama’s 40 “targeted” counties attracted almost $1.9 billion in FDI through growth projects, with more than 4,200 job commitments, according to Alabama Department of Commerce data. This investment has primarily flowed from South Korea, Canada, Japan, and Germany. Brenda Tuck, Rural Development manager for the Alabama Department of Commerce, said rural Alabama locations such as Chambers County, Selma, and Fayette are among those that have seen job creation through foreign investment. The Scott G. Davis Industrial Park in rural Bibb County illustrates the power of FDI. The 564-acre park is home to a Mercedes-Benz EV battery plant and other operations, along with a factory run by auto supplier MöllerTech. Together, the German companies have invested more than $600 million in the park, creating 1,200 jobs. “The high level of FDI activity shows decision-makers around the world that rural Alabama is an ideal location for doing business, and the companies locating there often expand their operations because they are getting the critical support they need to be successful,” Tuck said. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with the permission of The Alabama NewsCenter.
