Auto supplier Samkee Corp to build first U.S. manufacturing plant in Tuskegee
On Friday, Alabama Governor Kay Ivey announced that Samkee Corp., a major South Korean automotive supplier, plans to invest $128 million to open its first U.S. factory in Alabama through a project that will create 170 jobs in Tuskegee and provide an economic boost for Macon County. “Alabama’s auto industry is filled with world-class manufacturing companies from around the world, and Samkee will fit right in with that group,” said Gov. Ivey. “We’re proud that the company selected Alabama for its first U.S. production center and look forward to seeing it grow and thrive in the coming years.” After finalizing agreements with state and local authorities, Samkee Corp. is poised to begin construction on the new manufacturing facility in the Tuskegee Commerce Park. It will become the city’s first auto parts manufacturer. Samkee will serve as a Tier 1 supplier to Hyundai Motor Co. According to the Alabama Department of Commerce, the new jobs will pay an average wage of just over $20 an hour. Samkee was founded in 1978. The company specializes in high-pressure die-cast aluminum components, including parts for engines, transmissions, and electric vehicles, along with alloys. The company currently operates factories in South Korea and China. Hyundai has a major automobile manufacturing presence in Montgomery. Chi Hwan Kim is the CEO of Samkee. “Samkee is a worldwide leader in quality manufactured aluminum die-cast products,” Kim said. “Our Tuskegee plant will allow our company to serve the North American market along with Hyundai’s market growth for both combustion engines and transmissions, as well as electric vehicle and battery parts.” Kim thanked Gov. Ivey for her assistance. “I give many thanks to Governor Ivey, Secretary Canfield and local officials, and Hyundai Motor for their steadfast support to Samkee in our decision today,” Kim added. Greg Canfield, Secretary of the Alabama Department of Commerce, said that Samkee’s decision to locate its first North American factory in Macon County reflects its confidence in the region’s workforce. “The skilled workers in Alabama’s auto sector have proved they are ready for any challenge the industry can throw at them, and they consistently turn out complex products of the highest quality,” said Secretary Canfield. “Samkee has come to the right place for its new U.S. industrial home.” Joe Turnham, director of the Macon County Economic Development Authority, said that local support for the project includes site work in Tuskegee Commerce Park, upgrades to the water and sewer system, and the installation of a new power substation. “Samkee appreciated the local assets, spirit of cooperation, and friendship developed over time with Macon County,” said Turnham. “We have strived with our stakeholders in a team effort to meet Samkee’s needs. We will remain partners going forward to see that they have a successful construction and manufacturing launch and future growth in the North American market. This is obviously a big win for our community and its citizens.” Tuskegee Mayor, Tony Haygood, said, “Today’s announcement is another major step in Tuskegee’s progression as a city. Samkee will be a great community partner for years to come and an example of how Tuskegee is open for business in the 21st Century marketplace. We appreciate Samkee’s partnership with us and will strive to succeed and grow together.” New automobiles and automotive parts are Alabama’s largest export. The state exported $8.9 billion worth of Alabama-made vehicles and parts last year, which approached $8.9 billion last year, an increase of 13%. Billions more are sold in Alabama and all fifty states. Alabama Industrial Development Training (AIDT), the state’s primary workforce development agency, will help Samkee assemble and train its workforce. According to an analysis by the Center for Business and Economic Research (CBER) at the University of Alabama, the Samkee factory will generate $140.2 million in annual economic output in Macon County, will add $37 million to the county’s GDP, and generating $1.3 million per year in taxes for Macon County. Production is expected to begin at the Tuskegee plant sometime next year. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
State sets new record in exports in 2022
Governor Kay Ivey on Thursday announced that Alabama exports surged to over $25.5 billion in 2022, setting a new annual record. Ivey said this is yet another indicator that the state’s economy is performing strongly. “Our record-breaking success when it comes to our exports is yet another example of the far reach of the ‘Made in Alabama’ brand and a direct result of our incredible companies and top-notch workforce,” said Gov. Ivey. “Exporting is a fundamental economic pillar that supports growth in Alabama, contributing economic vitality and spurring job creation across the state.” 2022’s surging export activity was driven by rising overseas shipments of Alabama-made vehicles, aerospace parts, chemicals, minerals, metals, and paper products, according to data from the Alabama Department of Commerce. The value of Alabama exports in 2022 jumped 22% compared to 2021, which also saw a substantial increase from the COVID-19 stunted 2020. Alabama exports have soared almost 47% since 2020 when global trade tensions and the COVID-19 pandemic dragged down shipments. The 2022 export total surpassed the previous record year – 2017’s $21.7 billion – by 17.5%. Greg Canfield is the Secretary of the Alabama Department of Commerce. “Setting a new annual export record is just another example of the economic success that Alabama is enjoying right now,” said Sec. Canfield. “Despite turbulence on the national scene, Alabama’s economy is really humming on all cylinders and can keep rolling as a bounty of growth projects bring in new jobs and investment.” Economic developer Dr. Nicole Jones told Alabama Today, “The Made in Alabama brand is recognized throughout the world thanks to driven folks in the public and private sector who have positive business relationships and ongoing communication with our trade partners.” Alabama exports spanned the globe during 2022, going to 196 countries. The Top 5 destinations for Alabama exports were: · Germany: $4.3 billion, a 16% gain over 2021 · China: $3.8 billion, a 10% increase over the previous year · Canada: $3.2 billion, which was up 3% · Mexico: $2.8 billion, an 11% increase · Japan: $1 billion, a 42% jump from 2021 Other top destinations were South Korea, Brazil, the United Kingdom, Belgium, and Australia. Christina Stimpson is the director of Commerce’s Office of International Trade. Stimpson said that broad-based gains for Alabama exports represent good news for companies back home because it generates increased production, additional investment, and new jobs. “Seeing a new annual export record demonstrates the success of operating and producing in Alabama. Growth in production from exports means job creation for our communities,” said Stimpson. “Export Alabama is here to support Alabama businesses launching into export or expanding to new global markets.” Commerce’s Office of International Trade offers resources to help Alabama companies enter profitable new overseas markets through frequent trade and business development missions, training, foreign-market information, and international contacts. The Office of International Trade is a partner in Export Alabama. It is a seamless network of international trade agencies that share the fundamental objective of helping Alabama companies expand their business internationally. “The strength of Alabama’s companies is a result of dedicated human capital,” Jones said. “These newest export numbers speak volumes; products made by Alabamians are an integral part of the global economy.” Alabama’s No. 1 export category — transportation equipment — helped power the state’s record performance during 2022, climbing above $11.4 billion, a gain of 9%. The category includes motor vehicles and parts, aerospace products and parts, and ships, among other things. The largest part of this category was the exports of Alabama-made vehicles which approached $8.9 billion last year, an increase of 13%. The top international destinations for Alabama-made vehicles were Germany, China, and Canada, which all saw increases in 2022. According to Commerce data, overseas shipments of aerospace products and parts increased by an incredible 21% to exceed $1.7 billion. All of Alabama’s top-ranking export categories posed major gains during 2022. Alabama exported $2.7 billion in chemicals – an increase of 19.5%. Alabama exported $2 billion in minerals and ore — up 178%. The state exported $1.6 billion of primary metals — up 20%. Alabama exported $1.6 billion in paper products — up 35% To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Honda builds its 30 millionth American vehicle
Honda recently announced that it had manufactured its 30 millionth vehicle in the U.S. Many of those vehicles were built here in Alabama at its Lincoln plant. Honda has eight auto manufacturing facilities in Alabama, Georgia, Indiana, and Ohio. The first was the Marysville Auto Plant in Ohio forty years ago, but Honda is now in its third decade of manufacturing vehicles in Alabama. Today those eight manufacturing plants build twelve Honda and Acura vehicles, along with the engines, transmissions, and hybrid-electric systems that power them. Economic developer Dr. Nicole Jones told Alabama Today, “Since 2001, Honda has been an incredible partner with our state and now employs approximately 4,500 Alabamians at the Lincoln, AL Assembly Plant. Vehicles have become Alabama’s chief export, with annual shipments to 90 nations around the world. A business-friendly climate that includes a quality and skilled workforce, low taxes, competitive incentives, and an excellent quality of life facilitate an environment conducive for business. Alabama has over 25 years of solid 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.” Honda has invested almost $20 billion in its American manufacturing facilities. Bob Schwyn is the Senior Vice President and Center Lead at Honda Development and Manufacturing of America. “Honda is preparing for the electrified future,” Schwyn said. “Our vision to make battery-electric and fuel cell electric vehicles represent 100% of our vehicle sales in North America by 2040 – including our plan to make those vehicles here in America within the next few years.” “I joined Honda 35 years ago as an equipment engineer in the paint department in that first plant in Ohio,” Schwyn wrote. “That was 1988, when our cumulative production was less than 500,000 vehicles. I was a young engineer straight out of college, and I recall that we had only one computer in the entire office, and it was shared by everyone.” “We opened a second Honda auto plant in Ohio, and I was advancing my skills in production engineering and production planning when Honda decided to establish a new auto and engine production facility in Alabama,” Schwyn continued. “I was tapped to join a small team of experienced engineers from our plants in Ohio and Canada to help construct and launch production at the new plant.” “I spent most of that time at our Alabama Auto Plant, ultimately serving as the Plant Lead,” Schwyn wrote. “One of my joys was to spend time on the production floor talking with the people who make products for our customers. And I have to say that seeing the growth in expertise and leadership has been a very rewarding experience. I’m proud that my successor as Plant Lead of the Alabama Auto Plant, Lamar Whitaker, is a home-grown Honda associate who I met when he joined the company, the year we began production in 2001.” Honda produced its first made-in-Alabama vehicle, a Honda Odyssey minivan, on November 14, 2001. Over the next twenty years, Honda built 5 million light trucks and V6 engines at its Lincoln plant. Honda has expanded the plant several times since 2001. “Since Honda began production in Alabama in 2001, we have accomplished a great deal and put a number of high-quality products on the road, but it is our people — our Honda associates — who are the driving force in all of our accomplishments,” Schwyn said. “One of Honda’s biggest strengths is the innovative design and manufacturing methods that keep its vehicles in high demand in markets around the globe,” Alabama Commerce Secretary Greg Canfield said. “The company has brought cutting-edge developments to its Talladega County plant many times over the past two decades, putting great trust in its local workforce, and Alabama auto workers have delivered outstanding results again and again.” To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama exports near $23.4 billion in 2022
The Alabama Commerce Department reports that the state’s exports were up in 2022. According to preliminary trade data, Alabama exports approached $23.4 billion in value through November — a figure that already eclipses the annual record of $21.7 billion, set in 2017, showing that Alabama’s economy was back on track after the COVID-19 global pandemic and the forced economic shutdowns. Alabama businesses that export their products to an international customer base have made a strong recovery during 2021, and that growth accelerated in 2022. Trade data indicate that the value of Alabama exports through the first 11 months of 2022 were tracking 23% higher than in the same period in 2021. Alabama-made goods went to 194 countries in 2022. “Alabama is full of next-level innovation taking place in key industries, and we’re ready to bring what’s happening inside our factories and laboratories and within our entrepreneurial ecosystem to the world,” said Alabama Commerce Secretary Greg Canfield. Economic developer Dr. Nicole Jones told Alabama Today, “Alabama has an impressive track record with exports. In 2021, our state exported goods and services at a total of almost $21 billion, which increased 21.8% from 2020. New data from 2022 shows a 23% increase from the same time period in the previous year. Pandemic-related global trade disruptions led to economic uncertainty, but fortunately, demand increased for Alabama-made products.” Christina Stimpson is the director of Commerce’s Office of International Trade. “Alabama’s vibrant export community has overcome significant challenges in the past few years, and it’s positioned for sustained growth because its high-quality products are in demand around the world,” Stimpson said Alabama’s No. 1 export category is transportation equipment. During the first 11 months of 2022, that category reached nearly $10.4 billion, an 8.4% increase from 2021. The category includes motor vehicles and parts, aerospace products and parts, and ships, among other things. $8 billion of that were Alabama-made vehicles. Shipments of aerospace parts rose 31% to $1.6 billion in the first eleven months of 2022. Mercedes-Benz motor vehicles were Alabama’s No. 1 export in 2022. Alabama exported $2.5 billion in chemicals in 2022, an increase of 22%. Exports of minerals and ores were up 194% to $1.9 billion. The exports of primary metals were up 24% to total $1.5 billion. Alabama exported $1.4 billion worth of paper and paper products, an increase of 35%. Jones credited the hard work of the Alabama workforce as well as the sound corporate governance of Alabama companies for the good export news. “Our quality and skilled workforce pushed through,” Jones said. “The strength of Alabama’s companies is a result of dedicated human capital, innovative products and services, and continued communication and positive relationships with nations throughout the world.” “For companies ready to forge ahead on a new path and discover the benefits of exports, the members of Export Alabama are always available as a resource for collaboration and guidance in this process,” Stimpson said. Germany was the No. 1 international destination for Alabama goods in 2022. A spot the country held in 2021. During the first 11 months of 2022, shipments to Germany were valued at nearly $3.9 billion. Alabama’s other leading export destinations during 2022 were Canada, China, Mexico, and South Korea. Commerce’s Office of International Trade and its partners in Export Alabama assist Alabama companies in accessing foreign markets to increase international sales, providing trade education and training opportunities, and organizing international trade missions and shows for Alabama firms to identify opportunities in foreign markets. Export Alabama provides comprehensive international trade services, all on a confidential basis, to help Alabama companies succeed in the global marketplace. Services provided to Alabama companies include advocacy, export education workshops, export finance assistance, identifying foreign distributors and buyers, international market research, and trade missions. Michael Brooks is the associate director of the Alabama International Trade Center at the University of Alabama. “Export Alabama plays a vital role in connecting companies with the experts, tools, and resources they need to access foreign markets and compete globally,” said Brooks. “Alabama’s competitiveness on the international stage is key to accelerating the state economy; companies that export tend to hire more people, pay higher wages, and are more resilient in economic downturns,” he added. Export Alabama launched a new web presence on Monday that features resources, helpful advice, success stories, and contacts to further increase its aid to Alabama companies competing in the global marketplace. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Kay Ivey announces plans to open aviation training academy in Selma
On Friday, Governor Kay Ivey announced that Resicum International LLC plans to open an aviation training academy at Craig Field in Selma. The company provides flight training and maintenance support to government, commercial, and general aviation customers. “I am proud to stand before all of y’all to announce Resicum International, a world-renowned woman and veteran-owned small business with a global reach will open an aviation training academy here at Craig Field!” Ivey announced at a public announcement event held in Selma. Resicum plans to invest $1.3 million, creating 70 jobs over three years at its new operational hub at the former Craig Field U.S. Air Force base in Dallas County. The new jobs will pay an average wage of $30 an hour. Resicum has signed a 10-year lease for a 50,000-square-foot hangar on the Craig Field flight line. Renovation work has already begun to prepare the historic facility for its new mission. “We are exceptionally pleased to invest in Craig Field and expand our company in Selma,” said Resicum CEO Jeanine Ziervogel. “The location is ideal for our company’s expansion, and we look forward to ongoing growth of our aviation operations in this storied place.” The Warrenton, Virginia-based company has made the decision to locate its aviation training academy at Craig Field, a facility where thousands of American and British pilots received flight instruction during World War II. “Craig Field has aviation training in its DNA, so it’s great to see Resicum establish a facility in such a historic location that will tap into this rich heritage while also solidifying the future for this Selma landmark,” Ivey said. “This project has significant potential, and I look forward to seeing how it unfolds.” Economic developer Dr. Nicole Jones told Alabama Today, “Resicum International‘s partnership with Craig Field will be an asset for Selma and Dallas County. Alabama has a history of leadership in aerospace and aviation. Not only will the training facility enhance Selma’s workforce, the redevelopment of the historic Craig Field will serve as a catalyst to bring other companies to the area.” Greg Canfield, Secretary of the Alabama Department of Commerce, praised the company. “Craig Field offers growing aviation companies a lot of advantages, particularly when it comes to the preparation of the next generation of aviation professionals,” said Secretary Canfield. “Resicum represents an ideal partner as Craig Field continues to capitalize on these possibilities.” Canfield explained that Craig Field’s long runway, large parking apron, and excellent hangar facility make it a perfect match for Resicum’s project. The groundbreaking of a new remote tower facility and Air Traffic Control Training Academy will further enhance the complex’s flight safety and training opportunities. The Selma & Dallas County Economic Development Authority coordinated meetings with representatives from state agencies, including AIDT, the state’s primary workforce development agency, to assist in the recruitment of the project. AIDT, a division of the Alabama Department of Commerce, will work with Resicum to develop a local workforce training and hiring program. “I am extremely happy that I had a part in bringing more jobs and economic development to Selma and Dallas County,” said EDA Executive Director Wayne Vardaman. “This is a quality company with a great reputation in the aviation community.” “Our company is growing our aviation footprint nationwide and globally, and we look forward to welcoming students from around the U.S. and the world who wish to begin or enhance their aviation careers,” said Robert Baird, Resicum’s chief of operations. Craig Field Airport & Industrial Authority Executive Director Jim Corrigan said that he expects Resicum’s operation to act as a catalyst for growth in the region. “We are extremely happy to help bring Resicum International to Craig Field,” said Corrigan. “Their credibility and growth potential will bring more jobs and economic prosperity to the Selma and Dallas County area.” “It is exciting to have Resicum International expanding into Dallas County and providing such incredible career opportunities to our citizens,” said Judge Jimmy Nunn, chairman of the Dallas County Commission. “I am so grateful for our local leadership making Dallas County such a great place to invest and do business. Thanks to everyone for a job well done.” “Once again, this is great news for Selma,” said Selma Mayor James Perkins. “Our logistics planning strategy starting with aviation is working even better than I predicted. Thank you, Resicum, for choosing Selma. Great job, Team Selma.” Brenda Tuck, Rural Development Manager for the Alabama Department of Commerce, stated, “Aerospace and aviation are key industries for Alabama’s economy, and the contributions of the state’s rural communities are vital to their success. Resicum made a great choice in selecting Selma because all the resources are in place to make this venture a success.” Resicum is a corporate partner for the U.S. Department of Defense’s Special Operations Command. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Fabrication company Morgan Metals announces growth plans in north Alabama
Morgan Metals Inc., an Athens metal manufacturing company, plans to expand its north Alabama operations in 2023, according to an announcement by the Limestone County Economic Development Association. Morgan Metals President Patrick Townsend said the growth plans will allow the company to serve the growing number of industries in the region. The expansion will take place at the company’s current location on U.S. Highway 31 and will include an additional 4,800-square-foot building and a loading dock. “This expansion gives us the necessary space for additional painting and packaging product finishing,” Townsend said. “We will now be able to complete larger projects for our customers.” Morgan Metals plans to invest about $286,000 in the expansion, which will create four jobs. “We are excited that this expansion will allow us to add more jobs to Athens and Limestone County and better serve our customers,” Townsend said. Morgan Metals plans to invest $286,000 in an expansion in Athens, Alabama, which will create four jobs and allow it to serve more customers. (Morgan Metals) Investment plans The Athens City Council approved a tax abatement for noneducational taxes to assist Morgan Metals with this expansion. “Morgan Metals has a history that dates back to 1944 in our state, and when you have a solid company like that investing in an expansion in our city, that’s a win for Athens,” Mayor Ronnie Marks said. Greg Canfield, secretary of the Alabama Department of Commerce, said expansion plans by a company with long-lasting roots in a community is a strong signal of confidence in local business conditions. “It’s always satisfying to see a company with an established presence in Alabama decide to reinvest in its operations and position them for the future,” he said. Bethany Shockney, president and CEO of the Limestone County Economic Development Association (LCEDA), congratulated Townsend and his team on the success that sparked the growth plans. “This expansion is a testament to Limestone County’s history of existing industries expanding to meet the needs of their customers,” Shockney said. “It was LCEDA’s pleasure to work with Morgan Metals Inc. on this project.” This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with the permission of The Alabama NewsCenter.
Alabama Sen. Richard Shelby’s lasting legacy
If Alabama is prospering, thank retiring U.S. Sen. Richard Shelby. That’s the refrain from the coast to the mountains among those responsible for economic and industrial development. While representing the state in the U.S. Senate for six terms – 36 years – preceded by work as an attorney, roles in state government, and eight years in the U.S. House of Representatives, Shelby earned a reputation as one who can understand the issues, work across the aisle to get things done and look ahead with a clear vision of what the state can achieve in the future. Ask in Huntsville; they’ll tell you his support of space and defense was critical to that entire region. Ask in Montgomery or Tuscaloosa or Lincoln or Huntsville, and they’ll tell you federal dollars for roads and public works made it possible to attract an automotive industry that thrives today in the state’s heartland. Ask at the universities, and they’ll tell you that federal support helps educate today’s students to meet the needs of growing industries. And ask in Mobile and hear the story of phenomenal growth at the port – how it impacts the Port City and then sends goods on trains and interstates and inland waterways to reach the whole Alabama economy. And all of them will tell you that without Richard Shelby, the economy just wouldn’t be what it is today. Business Alabama asked key individuals around the state for their examples of Shelby’s impact. Here’s what they had to say. Chip Cherry President & CEO, Huntsville/Madison County Chamber of Commerce “Sen. Shelby has been a blessing to us in the sense that he has the ability to see how the different pieces of the puzzle are scattered about and what can be brought together to benefit both the country and the state.” Cherry’s favorite example is at Huntsville’s Redstone Arsenal, centerpiece of the space and defense work and more recently of the FBI’s Southern headquarters. “He saw the synergies between what was happening at Redstone and what the FBI was doing” and helped bring the FBI. The move “allows for collaboration among federal partners on the same campus,” he said. Shelby, he said, “has been a strong advocate, informing his colleagues of the value of what happens at Redstone and making the case for how investment there benefits the entire country. And that benefits us as a region. “I believe in my heart that he’s more of a statesman than a politician – able to work across party lines to make a case and build consensus. That’s an unusual thing to happen in D.C. these days.” Finis St. John IV Chancellor, University of Alabama System “Sen. Shelby recognized and strongly believed from early on in his career that education and higher education were the ways that the state could advance. He has been a tireless supporter of higher education, research, health care – all of which are integral to our mission at the University of Alabama System. “It’s hard to list all the ways he’s helped advance our mission, but nobody in anyone’s memory has been more important to that.” And why is higher education important to the state’s economy? “It’s the pipeline for the people that execute our economy,” St. John said. “If we do a better job at generating that raw material, then every entity in the state is better off, every business, government, all areas of the economy do better with higher equality results from higher education. “Every time you talk to a business leader right now, the biggest problem they face is workforce. Nobody has enough people, and they don’t have qualified people. Not only are we trying to address that with Alabama students but also by bringing in out-of-state students and then working with government and industry to entice them to stay in Alabama.” Shelby’s influence goes well beyond higher education and research funding, St. John noted. “It hasn’t been piecemeal, but comprehensive.” Shelby was a family friend as St. John was growing up, and he considers the senator “a dear friend, mentor and adviser, whose wisdom I’ve been very fortunate to benefit from for a long time.” Greg Barker President, Economic Development Partnership of Alabama “We’re in a global economy right now, so having somebody like Sen. Shelby, who is a constant advocate for the right federal policies that position the United States for growth and as a good place to do business, that’s paramount.” “He was an aggressive advocate for a wide range of elements that made the U.S. a better place to live and work. That’s where you start,” said Barker, who previously was an executive at Alabama Power. “When you think of business growth and development, you have to have the right infrastructure, and that infrastructure is expensive. It takes federal money to build roads and water systems and everything.” Shelby was particularly good at “making sure Alabama is aware of the federal programs and very competitive to be able to receive federal money and put it to good use for Alabamians.” Shelby, he said, “was a very distinguished and influential U.S. senator, and that put him in a lot of interesting rooms with interesting people – and he was consistently an advocate for Alabama, suggesting that people consider it for future growth for their company.” Barker especially respected the senator’s role in getting roadbuilding funds that enabled the establishment of Mercedes-Benz U.S. International in Tuscaloosa County and water system funding that enabled construction of the Honda plant in Talladega County. “I don’t think it’s an exaggeration at all to say that Alabama’s advanced manufacturing success – for the auto industry alone – is due to him.” Greg Canfield Secretary, Alabama Department of Commerce “From my perspective, what’s most impressive about Sen. Shelby’s legacy in Alabama is his impact on Alabama’s economic engines and the infrastructure that drives our economy.” Canfield called out examples across the state – the port with the most container traffic in its history; the universities with
Alabama bioscience sector poised for growth through major investments
Growth projects valued at almost $200 million are underway in Alabama’s bioscience sector, setting the stage for new research funding and recruitment of scientists for cutting-edge projects. The growth spurt will build on investments announced in 2021 by life science companies in the state that totaled $166 million, according to an estimate by the Alabama Department of Commerce. These projects are creating 574 jobs. In Alabaster, Avanti Polar Lipids, which provides pharmaceutical and diagnostics industry products, is adding 67 jobs through a $16 million expansion launched last year, Commerce data shows. In Huntsville, Discovery Life Sciences is creating 140 jobs. And in Auburn, SiO2 Medical Products – which grabbed headlines by developing high-tech vials for COVID-19 vaccines – continued its fast-paced growth with a $123 million investment to expand production. The project is creating 40 jobs. Expanding the state’s bioscience sector is a strategic priority for the Alabama Department of Commerce, which supports industry growth in various ways, including trade missions to overseas biotech clusters and events. A mission to Nordic Life Sciences Days in Denmark is scheduled for 2023. “We have exceptional strengths in biosciences, including world-class research organizations and a roster of cutting-edge companies, so it’s a natural growth area for the state,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Our goal is to help unleash brainpower and provide a catalyst for innovation within this important economic sector,” he said. While it’s overshadowed by the automotive and aerospace industries, Alabama’s bioscience sector already delivers a major financial impact for the state through activities that include medical research, drug discovery, genomic medicine and medical devices. Alabama is home to 780 bioscience establishments employing almost 18,000 people earning average annual salaries exceeding $67,000, according to an analysis conducted for Bio Alabama, an industry trade group. Biotech foundations During 2022, all three of Alabama’s major research institutions embarked on significant growth projects that will allow them to create new laboratory jobs while positioning them to make high-impact scientific discoveries. Southern Research – a landmark in Alabama’s bioscience sector since its founding in 1941 – is preparing to begin construction on a flagship biotech center in Birmingham. The organization plans extensive renovations on its campus. Coming in 2024, the new biotech center will feature 106,000 square feet of commercial wet labs, A/BSL-3 space and data science facilities. Renovations to 65,000 square feet of facilities include vivarium space and a new clinical diagnostics lab. Southern Research’s biotech center is projected to create 150 jobs, while doubling the organization’s annual economic impact to $300 million. “This is going to be another game-changer for Alabama,” said Gov. Kay Ivey, who approved a $45 million state investment in the biotech center. “We are proud of our investment. It’s going to help Alabamians and help change the world.” Southern Research is investing more than $108 million in the overall project, according to its 2021-2022 annual report. Also in Birmingham, UAB is constructing the Altec/Styslinger Genomic Medicine and Data Sciences Building to advance its leadership in precision medicine, genomic science, and biomedical research. UAB officials said the facility will allow the university to recruit 75 investigators and about 350 support staff to work alongside the talented cadre of researchers. It expects the center to attract an estimated $100 million in additional research funding annually. Total project costs are expected to exceed $78 million, including significant financial support from the state. Construction could be completed in spring 2024, according to UAB. Together, these projects represent groundbreaking initiatives to enhance research capabilities, create jobs, and generate new investment, while propelling Birmingham and Alabama to the forefront of innovation built around discoveries. “Between UAB and Southern Research, we are working to ensure that Birmingham and Alabama become the biotech commercialization center of the Southeast,” said Dr. Ray Watts, president of UAB and chair of the Southern Research board. Unleashing brainpower In Huntsville, the HudsonAlpha Institute for Biotechnology is growing in new and exciting directions. In August, HudsonAlpha announced a public-private partnership with the city of Dothan to create HudsonAlpha Wiregrass to advance education, agricultural research, and economic development through entrepreneurship. Meanwhile, the HudsonAlpha Center for Plant Science and Sustainable Agriculture recently opened a lab and greenhouse in Huntsville to grow research plants to improve existing crops and develop new uses for plants. The facility is equipped with two lab spaces, seven grow rooms with 15-foot ceilings, and several technologically advanced features rarely found in greenhouses. In addition, the HudsonAlpha AgTech Investment Accelerator opened to support startups and enhance the institute’s commercialization pipeline for new ideas. The initiative is a collaboration with gener8tor, a leading national tech accelerator. The HudsonAlpha AgTech Investment Accelerator is supported by the Growing Alabama Credit program through the Alabama Department of Commerce. “We’re committed to supporting innovation throughout Alabama’s economy, and the HudsonAlpha AgTech Investment Accelerator will be an important resource in helping us achieve that goal in this critically important sector,” Canfield said. Republished with the permission of The Alabama NewsCenter. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.
Study group urges Legislature to grow Alabama’s economy
Lieutenant Governor Will Ainsworth led a study group that on Monday recommended that for Alabama to remain economically competitive with neighboring states, the Legislature needs to reauthorize and expand the Alabama Jobs Act and Growing Alabama Act which pays economic incentives to companies that locate or expand in Alabama. The Joint Legislative Study Commission on Renewing Economic Development Incentives held its final meeting at the Alabama State House before submitting its report to the Governor and Legislature on recommendations for reauthorizing economic development incentive programs. The study committee claimed that the Alabama Jobs Act and the Growing Alabama Act are essential and recommended that these incentive programs should be reauthorized before they expire in 2023. This commission was established by the Alabama Legislature in the 2022 legislative session. It includes representation from businesses and industry and was tasked with reviewing existing economic incentives and making recommendations to the Governor and Legislature on those incentives ahead of the 2023 legislative session. Ainsworth, who chairs the commission, said that the commission’s findings will be a roadmap for the Legislature on how Alabama can best leverage incentive programs to boost the state’s economy: “Our goal is simple – we want to have the best incentives not only in the southeast but in the nation as a whole,” Ainsworth said. “This commission has been diligent in comparing our existing incentives with other states and working with the Department of Commerce to determine how we can expand both new and existing industries. Reauthorizing these programs is going to be essential in attracting high-paying, long-lasting, 21st Century jobs.” State Representative Nathaniel Ledbetter agreed, “Reauthorizing these incentives is going to help Alabamians by allowing us to compete for the best jobs in the country right here 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. We want to make sure that, from a competition standpoint, we have the tools needed to bring them here and keep them here.” Ledbetter is the Republican House Caucus’s choice to be the next Speaker of the House. Republicans have a commanding supermajority in the Alabama House of Representatives, so the Republican choice for Speaker will, in all likelihood, be the next Speaker when the full House of Representatives vote in an organizational session in January. The Study Commission held discussions with the Alabama Department of Commerce, industry professionals, and the Economic Development Partnership of Alabama to reach their conclusion that the Alabama Jobs Act and Growing Alabama Act are pivotal tools used by the state’s economic development professionals in successfully attracting businesses to the state. Senate President Pro Tempore Greg Reed said that for Alabama to compete with neighboring states, economic development incentives need to be reauthorized and expanded. “When you look at the top issues Alabamians care about, economic development and job creation are right at the top of that list,” Reed said. “States around our region are all competing with each other to attract jobs and to create economic growth, and we need to make sure that we win those competitions so good-quality jobs will come to our state and our communities. Alabama is the greatest state in the nation to live and work, and these incentives will play a key role in keeping it that way.” Senate Minority Leader Bobby Singleton also supports renewing the incentives legislation. “Growing Alabama’s economy and creating good jobs for our citizens is something we can all agree on,” Singleton said. “This commission has been thorough in studying existing incentives and exploring how they can be improved and further deployed to really capture their full potential. I thank this commission for its diligent work and look forward to seeing the impact its findings will have on communities across our state.” Alabama Commerce Secretary Greg Canfield also served on the Committee representing Alabama Governor Kay Ivey’s administration. “If you look at Alabama, we are almost a victim of our own success, is what I said in the commission meeting,” Ainsworth said in a video clip shared with the media. “We have had so much success in developing sites that we are out almost. We need to develop more sites in Alabama, and we have got to be more aggressive to make sure that we stay ahead of other states. Look at mega-sites. We need more mega-sites for companies to locate here. We have some of the lowest taxes. We have the best workers. People want to live in Alabama. Companies want to come here, so it is our job to make sure that we have sites so that they can come here and build their businesses.” Critics of economic incentives dismiss them as “corporate welfare.” At the same time, some ultra-conservatives have argued that the decision to give or not give economic incentives to businesses looking to locate or expand in Alabama is picking winners and losers and is not a function of government. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Hyundai supplier, Mobis, announce new factory bringing 400 jobs to Montgomery
Alabama Governor Kay Ivey joined executives of Hyundai Mobis in the Old House Chambers of the historic Alabama State Capital to announce the company’s plan to build a second manufacturing plant in the Montgomery area. Montgomery Chamber of Commerce Chairman Cedric Campbell said that Mobis plans to invest $205 million to open an EV battery module plant in Montgomery that will eventually employ at least 400 people. Once it reaches full production, the 450,000-square-foot facility will be able to supply over 200,000 EV batteries annually to the Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery and the Kia Georgia plant. Hyundai plants to produce a luxury Genesis GV70 vehicle as well as an electric version of the popular Santa Fe sports utility vehicle. “Alabama’s auto manufacturing sector is evolving rapidly to capitalize on the EV revolution that is sweeping the industry, and this new Hyundai Mobis battery plant represents another milestone in that transition,” said Gov. Ivey. “We’re excited about the company’s new investment and what it represents for the next chapter of automaking in Alabama.” Mobis is one of the largest automotive suppliers in the world. “It is an honor to host you all in the state capital, and especially to have our friends from Korea, here today,” said Gov. Ivey. Ivey praised Hyundai. “We have watched the company grow more and more and have watched the company evolve to keep up with the ever-changing automotive industry,” said Ivey. “When you choose the state of Alabama to do business, you can expect the full support of the state of Alabama as well as from local government.” H.S. Oh is the vice president of the division that produces the electric powertrain business for Hyundai Mobis. Oh said that the new Alabama EV battery assembly facility will play a critical role in the company’s plans to expand its production network across the globe. “As the EV market continues to grow, having a strong production capacity will be key in allowing Hyundai Mobis to see continued growth in the market,” Vice President Oh stated. “We believe this new facility in Montgomery will be an important step in that process, and we are excited for the project to be underway.” “Governor Ivey, we thank you for the work that you, your cabinet, and your entire staff do for the state of Alabama, the Montgomery City, and the entire river region,” said Montgomery Mayor Steven Reed. “There are a lot of pieces that have to come together to have a $205 million dollar investment, especially one that produces over 400 jobs.” “We will be there every step of the way to get things up and running in this facility,” said Mayor Reed. Reed thanked the members of the industrial development board, the Governor, the county, and the Chamber of Commerce, “It is the hard work of the employees that make this possible. It is their hard work that allows us to recruit companies to this city and the river region.” “This is one of the best economic development years in memory, said Reed, who just last week welcomed Manna Beverages and Ventures to the city. “I am delighted to welcome the Mobus facility to Montgomery,” said HMMA President Ernie Kim. “Over the last ten years, Hyundai has enjoyed the support of the City of Montgomery and the State of Alabama. This facility will allow Hyundai to become a leader in electric vehicle production.” Isaiah Sankey is the Vice Chairman of the Montgomery County Commission. “Electrification of vehicles creates a green, clean economy,” said Sankey. “Electrification of vehicles makes me proud that Montgomery County will be part of cleaning up the environment.” “Thanks to the governor for all that you do that makes the state of Alabama great,” Sankey said. The EV battery module plant will expand Hyundai Mobis’ already large presence in Montgomery. Hyundai Mobis has operated a manufacturing facility on 83 acres in Montgomery since 2002 as the largest Tier 1 supplier to HMAA and Kia Georgia. The plant supplies the auto plants with complete cockpit modules and front and rear chassis modules, as well as bumper assemblies and instrument panels. “Hyundai Mobis’ investment project in Montgomery reflects an acceleration in the development of the EV supply chain in Alabama’s auto industry,” said Alabama Department of Commerce Secretary Greg Canfield in a statement. “We’re going to be a major production player in the EV market, and that’s going to trigger more growth within the sector.” Hyundai Mobis said that the construction of the new facility will be located on HMAA’s sprawling campus just off Interstate 65 in Montgomery. Construction is expected to begin as early as December. Production of EV battery assemblies is projected to begin in 2024. President Joe Biden has announced a goal of making the entire new American automobile production electric by 2030. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Kay Ivey hosts the second annual Made in Alabama showcase
Gov. Kay Ivey and the Alabama Department of Commerce hosted the second annual Made in Alabama Showcase on Friday at the Old State Supreme Court Chambers in the historic Alabama Capitol Building to recognize some of Alabama’s top companies. “It is great to be surrounded by some of Alabama’s most wonderful businesses who continue showing the world what it means to be Made in Alabama,” Gov. Ivey stated. “As I like to say, the work that our businesses are doing, Made in Alabama, is bringing back Made in America. I would like to begin by offering big congratulations to this year’s 14 honorees. I am truly honored to recognize y’all today here in our State Capitol. We have got companies from all across Alabama run by a group of diverse group of Alabamians. Truly we are seeing Alabama. In booths around the room, we are honoring great Alabama companies producing things from honey balls to pop sickles, to game clocks, to Red Land Cotton bed sheets. I firmly believe that Alabama has the best businesses in the country. What you have accomplished has made that Made in Alabama brand even more exceptional. As Governor, please know that you always have my full and total support. When you are successful, the state of Alabama is successful.” “It is amazing all the good things that Alabamians are making,” Ivey told reporters. The governor praised “all the good work that the people of Alabama are doing.” Gov. Ivey selected 14 top-rated businesses for their work and invited them to exhibit their products at the Alabama State Capitol. The 11 honorees that were able to attend showcased their products, discussed their company’s history and gave away promotional items to the public. “Our state is blessed to have numerous companies producing outstanding Alabama-American-made products every single day. During Manufacturing Month, I am proud to recognize 14 of the best our state has to offer,” said Governor Ivey. “Alabama made products speak to who we are as a state, and we could not be more excited to showcase these exceptional companies’ products and service to all our visitors today.” Ivey has prioritized economic development since her elevation to governor in 2017. The state has attracted over $32 billion in capital investment and 65,000 new jobs over that time period. “The ‘Made in Alabama’ badge is synonymous with quality, and it’s crystal clear that the companies being honored in today’s showcase have mastered the art of turning out an amazing variety of world-class products,” said Alabama Commerce Secretary Greg Canfield in a statement. The honorees were nominated by the Alabama Department of Commerce, Manufacture Alabama, the Chamber of Commerce Association of Alabama, and the Business Council of Alabama. The 14 honorees are as follows: Frios Gourmet Pops, based in Mobile, produces gourmet popsicles for its franchisees across the country. The company has grown from a brick-and-mortar shop to pivoting in the middle of the COVID-19 pandemic to be mobile by attending parties and corporate events in their tie-dye food trucks. Shaw Industries Group, Inc. offers a diverse portfolio of carpet, resilient, hardwood, tile and stone, laminate, synthetic turf, and other specialty items for residential and commercial markets worldwide via its brands Anderson Tuftex, COREtec, Floorigami, Patcraft, Philadelphia Commercial, Shaw Contract, Shaw Floors, Shaw Sports Turf, Southwest Greens and more. Shaw’s fiber manufacturing plant in Andalusia, Alabama, is Covington County’s largest employer. To Your Health Sprouted Flour Company is a national pioneer in producing organic sprouted grains. In their 17 years of business, they have grown to become the largest U.S. producer of sprouted grains, flours, legumes, seeds, and nuts, producing close to one million pounds per year. They are located in Fitzpatrick, Alabama, in Bullock County. Victory Game Clocks is a female, veteran-owned and operated team sport timing supplier based in Roanoke, Alabama. Victory Game Clocks designs, manufactures, and sells high-quality practice timers, play clocks, scoreboards, electronic down markers, and timeout countdown clocks for football and other sports. Their products first hit the market in 2011, and today are used by professional, college, and high school teams across the country. WoodHaven Custom Calls designs top-of-the-line turkey and deer calls in Heflin, Alabama. The calls can be customized as a mouth, wood, or friction call. The idea for the company was built in the late 1980s from the owner’s desire to be the best turkey hunter he could be. Red Land Cotton is a family-owned, direct-to-consumer e-commerce company crafting luxury bedding, towels, and loungewear exclusively from cotton grown on their family farm in north Alabama. Red Land Cotton utilizes a supply chain that starts and ends in north Alabama. All of the cotton is grown, harvested, and ginned on Red Land Farms in Lawrence and Colbert counties. It is manufactured in different communities across the United States before it returns as finished cloth to be cut and sewn and then distributed from Moulton, Alabama. Golden Eagle Syrup founders, Mr. and Mrs. Victor Patterson Sr., produced their first can in Fayette, Alabama on October 28, 1928. The original manufacturing building still remains the home of Golden Eagle Syrup today. In efforts to keep the historic company viable, additional products, which incorporate the syrup, are being added. Caramel Corn was the first of these brought to market and is carrying on the tradition of quality products at fair prices. Golden Eagle Syrup remains a family-owned, family-run business; the present owners have a strong commitment to preserving the tradition and quality established by the founders. Jack Daniel Cooperage manufactures white oak barrels for Jack Daniel’s Tennessee Whiskey. The Jack Daniel Cooperage is located in Trinity, Alabama, and is home to approximately 175 employees. “JDC” was established in 2014 and currently produces approximately 1,200 barrels per day. Specification Rubber Products began in 1968 as a manufacturer of molded rubber components for the waterworks industry, specializing in rubber gaskets. Today, their company is a primary supplier of ductile iron pipe, valve, and hydrant producers. Not only do they help to make drinking water safe, but they also received the “Best Place to Work” award in 2021 from Rubber News, a national industry publication.
Justin Bogie: Lower taxes, better education are keys to attracting business to Alabama, not incentives
The Alabama Jobs Act is set to expire on July 31, 2023, meaning that economic incentives could be a major topic of interest during next year’s regular legislative session. The chatter has already begun. Last month, Alabama Secretary of Commerce Greg Canfield told a state economic incentive oversight committee that he thought the act should be extended and the current annual credit cap of $350 million should be removed. But is handing out hundreds of millions of taxpayer dollars in economic incentives to large corporations each year sound fiscal policy? More importantly, are there other steps Alabama can take to make itself more competitive in attracting new businesses compared to neighboring states? If you are unfamiliar with the Alabama Jobs Act, it was first authorized by the Legislature in 2015 and provides payroll and investment credits to qualifying business projects that, with some exceptions, create at least 50 new jobs in the state. The program was reauthorized during the 2021 regular session, and the current cap on credits is $350 million per year. The law specifies that $20 million per year must be targeted to counties with populations less than 25,000. Before thinking about expanding or removing the cap on incentives, the first question legislators should ask is this: do economic incentives work? Evidence suggests that they do not. A 2019 report from the Mercatus Center at George Mason University found state and local governments nationwide give out an estimated $95 billion in economic incentives per year. In contrast, those same governments in total collected less than $66 billion in corporate income taxes in 2019. A supposed benefit of economic incentives is that it will create new jobs in Alabama. According to the Brookings Institution, on average, only 10-30% of the new jobs created through economic incentives end up being filled by state residents who are unemployed. Many of the new positions will end up being filled by Alabama residents who are already working or from new employees coming from outside the state. This means the cost of public services inevitably rises. Brookings estimates this increase in the cost of services offsets any increased tax revenues from wages by at least 90%. Incentives are particularly ineffective in states with low unemployment rates, where at best, citizens who are already employed will shift to a different company or career. Alabama’s unemployment rate is currently at a record low of 2.6%. Another downfall of economic incentives is they allow state and local governments to pick winners and losers. It means that companies already conducting business in the same industry as a new company that moves to Alabama will be paying higher tax rates. All Alabamians pay the price. The state does not just give away $350 million in tax incentives every year. The money is recouped through a higher tax burden on not only other corporations but citizens as well. Economic incentives also favor large corporations over small businesses. A 2015 study by Good Jobs First found big businesses received 90% of state and local economic incentives. In most cases, at least 50 new jobs must be created to receive incentives in Alabama. What does that do for the small family-run business that employs ten people? They are already at a disadvantage compared to larger companies. Economic incentives aimed at large corporations make it even harder for small businesses to survive. Instead of giving out more economic incentives, Gov. Kay Ivey and the Alabama Legislature should be looking for ways to fundamentally make Alabama more competitive with neighboring states in attracting new businesses. The two primary areas of focus should be tax policy and education. In terms of corporate income tax rates, Alabama’s rate is higher than Georgia, Florida, Mississippi, Arkansas, South Carolina, North Carolina, and Kentucky in the Southeast, making it one of the worst in the region. Lower corporate tax rates mean lower costs of doing business in the long term, not just during the period of economic incentives. It levels the playing field for both small and large companies. On the individual income tax side, Florida and Tennessee have no income taxes. Georgia and Mississippi have already enacted legislation to reduce rates over the next few years. If Alabama wants to be competitive and incentivize citizens to remain living and working in Alabama, it must follow suit. There is also the issue of education. Businesses considering moving to Alabama need a qualified workforce if they are going to be successful. Alabama consistently ranks near the bottom in national test scores and the worst in the Southeast, well below Florida, Tennessee, Georgia and Mississippi. A recent column by former Alabama State Superintendent of Education Joe Morton highlighted that in 2021, 16% of Alabama’s high school graduates were not college or career ready. He asked, “What signal does it send to business and industry?” Not a good one. These are the issues Alabama’s government should be focused on improving if it wants to attract new businesses and keep existing businesses in Alabama. They do not want handouts. They want lower taxes, less government interference, and a capable workforce. Economic incentives should be Alabama’s last resort in securing new businesses. Lower tax rates and a better-educated workforce will be enough incentive. It will also improve the lives of all Alabamians. Justin Bogie is the Senior Director of Fiscal Policy for the Alabama Policy Institute.
