Alabama businesses on trade trip to Germany
Bolstering commerce in Alabama is the focus of a trade mission to Germany this week. A group of Alabama business leaders, headed by Commerce Secretary Greg Canfield, are in the central European country this week on a strategic trip designed to help Alabama companies strengthen economic ties, new markets, and potential partnerships. The department’s Office of International Trade is currently working with the U.S. Commercial Service to give Alabama minority-owned businesses the chance to meet with potential partners in Europe. “Through our Office of International Trade, we are leading the charge to ensure that Alabama companies are directly connected to the resources they need to access foreign markets and develop export opportunities,” Canfield said in a release. We are committed to strengthening Alabama’s international ecosystem and working with our trade partners on every level to foster a healthy climate for international business.” The trip, which concludes Wednesday, will see the group visit Munich and Augsburg and is the first trip by the Department of Commerce since before the pandemic. The last trip was in September 2019 to the United Arab Emirates. While in Augsburg, according to the release, the team will participate in the EU-US Small and Medium Enterprise Best Practices Workshop, which is designed to provide more trade and investment opportunities in both regions. In Munich, the team will attend business meetings, according to the release. Munich is billed as a global center of technology, innovation and science, and finance. Alabama companies on the trip include Gene Capture, a biotechnology company based in Huntsville. The company is working to develop portable technology that would be used for identifying infections. BLOC Global Group, which is a Birmingham-based company specializing in corporate real estate and infrastructure delivery, according to the release. Domestique, which is an EV hospitality company, is on the trip. The company is working to create a better user experience and fighting climate change, according to the release. Adah International, which is an industrial engineering and project management services company, and ASHIPA Electric Limited, a company developing power microgrid management software, are also on the trip. According to the release, German-based companies have invested almost $10 billion into the state’s economy since 1999. Republished with the permission of The Center Square.
Magazine ranks Alabama as the sixth best state for doing business
Area Development, a national economic development publication, reported that according to the site-selection professionals it surveyed, Alabama is the sixth best state for doing business. The survey cited a broad range of factors contributing to a fertile growth environment for Alabama. Alabama’s number six ranking is the same as the previous two years. Alabama earned top ten rankings in 11 out of the 13 different individual categories in the new Area Development survey. Greg Canfield is the Alabama Secretary of Commerce. “Companies from around the world have discovered that our state can offer them a favorable business environment, a motivated workforce, and a support system that helps make success possible,” said Canfield. “The message is clear: Alabama offers the advantages that growth-minded companies are looking for.” Economic Developer Dr. Nicole Jones told Alabama Today, “Area Development has been a leading publication in our industry for over fifty years. Alabama’s held position as Number 6 in the Top Ten States for Business survey is a testament to teamwork; the public and private sector have collaborated to create an environment conducive for business.” The publication said that it recruits site-selection professionals as serve as judges because they have accumulated deep experience in evaluating the factors that pave the way for business growth. “They’ve learned through experience which states are the standouts in various important factors for doing business, from costs to taxes and incentives to training to a welcoming and hassle-free government,” it notes. “The Alabama Department of Commerce unveiled competitive, fiscally responsible tax initiatives and workforce development programs designed from continuous dialogue with industry,” Jones said. “In addition, the speed of permitting, low energy costs, and AdvantageSite program managed by the Economic Development Partnership of Alabama (EDPA) in many cases simplifies the site selection process, which keeps Alabama in a competitive position. It takes a team to build Alabama. We are thankful that companies continue to choose Alabama and recognize the diversity of industries we have a population to support.” Alabama ranked number one in the speed of project permitting. Number three in energy availability and costs, number 3 in favorable regulatory environment, number four in the overall cost of doing business, number four in workforce development programs, number five in business incentive programs, number seven in available real estate, number seven in cooperate state government, number eight in corporate tax structure, and number ten in both competitive labor environment. Commerce data shows that companies announced new facilities and expansion projects involving $7.7 billion in new capital investment last year, creating ten thousand jobs across Alabama. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Companies to invest $92 million in Alabama Wiregrass growth projects
Houston County officials say infrastructure improvements will allow two growing businesses to make new capital investments totaling a combined $92 million in Dothan as part of projects that will provide a boost to the region’s forestry industry. SmartLam North America, a maker of cross laminated timber (CLT) products at a factory in Dothan, will invest $62 million to build a new glulam manufacturing facility that will produce large beams and columns for the construction industry. The project will create 43 jobs. Meanwhile, Peak Renewables will build a wood pellet production facility that will use sawmill residuals to make pellets used in renewable power generation. The $30 million project will generate 26 jobs at the facility in Dothan. “The forest products industry has long been a central pillar for Alabama’s economy, and its vitality is attracting significant levels of new investment and driving job growth across the state,” said Greg Canfield, secretary of the Alabama Department of Commerce. “These new investment projects in Dothan will inject additional vigor and innovation into this critical sector.” Infrastructure improvements The Dothan Area Chamber of Commerce said the combined projects represent one of the largest industrial investments in the history of southeast Alabama’s Wiregrass region. It expects the SmartLam expansion to become operational in 2024 and the Peak Renewables wood pellet plant to open in 2023. “There are a lot of moving parts to support these developments, and we cannot thank our state, city, county, and Chamber team enough for their work and support,” Chamber Chairman Brad Kimbro said. “We have a lot of infrastructure support needed to ready these developments for their operations to meet Peak Renewables’ and SmartLam’s needs, so we will be on it.” The project will involve the construction of a new industrial access road and water and electric utility improvements. Through partnerships with the Alabama Department of Transportation, Houston County, and the city of Dothan, an access road will be built to serve the new industrial sites. In addition, Dothan Utilities will provide water extensions and electric utility service. Growth plans SmartLam North America CEO Derek Ratchford said the investment will allow the company to construct a state-of-the-art, 140,000-square-foot custom glulam manufacturing plant with the capacity to produce 84 million board feet annually. SmartLam will also add equipment to fully automate its existing 225,000-square-foot plant to produce 2 million cubic feet of CLT annually. “Most mass timber glulam/columns are manually produced. The new plant will be automated, allowing SmartLam to significantly increase production and simultaneously deliver multiple mass timber projects,” Ratchford said. “We are strategically located in Alabama to serve the Southeast, the fastest-growing mass timber market in the United States. We are currently the largest CLT manufacturer in North America, and with the glulam addition, SmartLam will become the largest mass timber (glulam/CLT) producer in North America,” he said. The expansion will allow SmartLam to purchase high-strength timber from landowners throughout central and southern Alabama. SmartLam is the first and largest manufacturer using Southern yellow pine to produce CLT. Peak Renewables CEO Scott Bax said his company’s growth project will use 30 acres and will include new rail spurs in collaboration with Genessee and Wyoming Railroad. The wood pellet facility will be a 24/7, 365-day operation. “This facility and the investment will further strengthen the overall forestry economy and bring a world-class wood fiber operating facility to the Dothan area, producing 180,000 MT of wood pellets annually,” Bax said. Local impact Dothan Mayor Mark Saliba and Houston County Chairman-Elect Brandon Shoupe said the projects will enhance the area’s forestry industry and generate additional jobs through economic ripple effects. “We are proud and very appreciative of our partnership with SmartLam North America and welcome our new corporate partner Peak Renewables,” Saliba and Shoupe said in a joint statement. “Both companies represent a significant impact to continue the building and developing of southeast Alabama as a center for excellence for forestry product manufacturing and innovation.” Ratchford praised the state and local agencies and community partners that made his company’s project possible. “This group is focused on helping us position for future growth,” he said. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with the permission of Alabama NewsCenter.
Gateway Tire announces $9 million expansion
Gateway Tire announced on Tuesday that it plans to invest $9 million to expand its distribution hub in Dothan. The project is expected to add 30 new jobs to Houston County. Greg Canfield is the Secretary of the Alabama Department of Commerce. “The distribution/logistics sector is one of the foundational business targets in Alabama’s overarching strategic economic development effort,” said Canfield. Bryan Dismukes is the general manager of Gateway Tire. “We appreciate the State of Alabama, City of Dothan, Houston, the Industrial Development Board of the City of Dothan, and the Dothan Area Chamber of Commerce/Grow Dothan for their continued support in our growth and success,” Dismukes said, thanking the Commerce Department, Dothan, and Houston County for the support that made this expansion possible. Gateway Tire is expanding its existing 200,000-square-foot warehouse by 100,000 feet. Gateway Tire’s existing 200,000-square-foot warehouse was built in Westgate Industrial Park in 2017 and cost $11 million. “The Gateway Tire expansion project showcases how our team works to recruit new investment, as we did when the company selected Dothan back in 2017, and how we support their continued growth over the years,” Canfield added. Economic Developer Dr. Nicole Jones told Alabama Today, “Distribution centers are one of the State of Alabama’s foundational business targets, meaning services they provide support a variety of industries within our state. Products distributed through the Gateway Tire Southeast facility, for example, contribute to Alabama’s position as a leader in the automotive industry.” Mayor Mark Saliba and Houston County Commission Chairman Mark Culver issued a joint statement thanking Gateway for choosing Dothan. “Gateway Tire has been a great fit for our community, and we are proud to be a partner in their continued growth and development in Dothan and the Wiregrass,” said Mayor Saliba and Chairman Culver. “Gateway Tire has been in business since 1929,’ Jones stated. “Their latest expansion announcement, a 50% increase in size of their warehouse at Westgate Industrial Park, will create additional jobs and opportunities for Dothan/Houston County and the Wiregrass area. Thank you, Gateway Tire Southeast, for your continued investment in Alabama.” Gateway Tire is operated by Dunlap & Kyle Inc., a wholesale and retail tire dealer based in Batesville, Mississippi. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Alabama legislators could extend state’s Jobs Act, remove incentives cap
All or portions of the tax credit incentives within Alabama’s seven-year-old Jobs Act could be extended through 2028 with a higher cap on payouts, based on a proposal a legislative-appointed commission is mulling over. The newly formed Joint Study Commission on Renewing Incentives formed out of 2021 legislation met recently to discuss the various components of the Jobs Act, which was initially created in 2015 and is slated to sunset next year. At the commission’s meeting, held on August 16, Secretary of Commerce Greg Canfield said the incentives borne out of the legislation have bolstered Alabama’s economic development activity. Speaking to a metric he described as a “return on incentives,” Canfield said, “The actual performance of the Jobs Act far exceeded our estimates in those real numbers.” To date, the Jobs Act has netted $256.8 million in incentives, Canfield reported at the committee meeting, which outpaced the department’s benchmark of $164.6 million. With the forthcoming sunset on the horizon, Canfield and other state officials are advocating not only to have it extended but also looking to have the $350 million cap on the incentive payouts increased. Canfield said the cap, if it were to continue, could stifle ongoing efforts to bring new companies and new job sectors into Alabama. When asked what he thought would be an appropriate figure for the cap, Canfield was hesitant to offer up a hard and fast figure. “We don’t really know. I wish I could tell you,” he said. “If I were to guess, it would be just a guess.” But in the coming years, Canfield said more specific data concerning the incentives should come into sharper focus. “We believe that there’s an equilibrium that we will eventually reach,” he said. “The number of new incentives that will be coming online, at some point, will equal the incentives that are coming offline as the incentive payouts and the project agreements are exhausted and terminated.” Based on its structure, Canfield said the incentives offered through the Jobs Act have safeguards in place through a pay-as-you-go approach. “We are not paying any incentives to a company that does not perform in the previous 12-month cycle,” Canfield said. “A company has to make the investment that they agreed to – that’s the first hurdle. They have to go into operation and commence operations by a date certain that’s also stipulated in the contract.” Lt. Gov. Will Ainsworth, who chairs the Joint Study Commission on Renewing Incentives, acknowledged that some of the current provisions within the Jobs Act might be ripe for refinement in the next legislative session. But he also lauded the program’s performance. “People are impressed with what’s going on here. Companies want to move here. We’re in a good spot,” Ainsworth said. “Obviously, there are some things that need to be tweaked.” While there was resounding support for the Jobs Act’s performance at the committee meeting, state Sen. Bobby Singleton, D-Greensboro, said he would like to see more incentives in underserved communities. “It’s OK to have it on the books, but what is the next step?” Singleton, who sits on the commission, said of previously announced efforts to allocate incentives in rural areas of the state. “I don’t want something to just be on the books that looks cute.” The study commission is slated to have a report on its findings submitted by January 31, as Alabama’s 2023 legislative session is in full swing. Republished with the permission of The Center Square.
Kay Ivey announces 84 Ecore International jobs in Ozark
Alabama Governor Kay Ivey announced Tuesday that Lancaster, Pennsylvania-based Ecore is making a $25.5 million investment in rural Dale County. The new state-of-the-art manufacturing facility will employ 84 workers in the city of Ozark with an average pay of $42,500 annually. Ecore specializes in transforming reclaimed materials into high-performance flooring and surface products. The privately held company is the largest converter of reclaimed rubber in North America, and its largest raw material is scrap truck tires. “Ecore International is a great addition for Alabama’s business community, and its decision to locate an advanced manufacturing and recycling facility in Dale County will have a major economic impact on the rural area,” stated Ivey. “This project in Ozark will bring good manufacturing jobs to the citizens there and spark new opportunities throughout the region.” Ecore is purchasing an existing building in Ozark. There the company will equip it to reclaim the rubber from used truck tires. The reclaimed rubber will be used to manufacture flooring and surfacing products. Art Dodge is the CEO of Ecore. Dodge said the company is pleased to be partnering with the city of Ozark, Dale County, and the State of Alabama to establish the world-class manufacturing and recycling facility. “Since its inception, Ecore has transformed over 2 billion pounds of rubber waste into surfaces that make people’s lives better,” Dodge said. “All Ecore manufacturing facilities are certified ‘Zero Waste,’ amplifying the company’s commitment to environmental stewardship. Ecore invests in more than its facilities — we invest in our people and in our communities because we believe that when our people and our communities prosper, we prosper.” Economic developer Dr. Nicole Jones told Alabama Today, “Ecore International has already demonstrated good stewardship. The company is purchasing an existing building to utilize for its Alabama facility, transforming used tire rubber into flooring and surfacing products, and creating jobs within the rural Ozark/Dale County community.” In 2021, the company upcycled over 100 million pounds of truck tires into manufacturing products, taking approximately 1 million truck tires from landfills or illegal dumps. “Ecore is a champion of sustainability, with a primary goal of creating products that improve lives and the environment,” said Alabama Commerce Secretary Greg Canfield. “Its new tire recycling and manufacturing facility in Dale County will help this impressive company extend its mission while also providing good-paying jobs for citizens there.” “Ecore’s manufacturing process produces commercial flooring for a variety of markets, including nursing homes, schools, fitness centers, hotels, and retailers,” Dr. Jones said. “The company ergonomically engineered its flooring products to support joints and impact. Ecore patented its TRU technology, which the company said provides more safety, sound absorption, enhanced force reduction, and energy restitution. We are thrilled about Ecore’s investment in Alabama, and their business model focused on sustainability, safety, and long-term relationships within the communities they have a presence within.” Ozark Mayor Mark Blankenship said that Ecore’s addition to the community will have a positive effect on Ozark and Dale County as a whole. “I want to thank the team at Ecore International for their confidence in Ozark and Dale County. We welcome the expansion of your company from Pennsylvania to Ozark, Alabama,” said Mayor Blankenship. “We look forward to a great partnership with Ecore International.” Dale County Commission Chairman Steve McKinnon said, “I am thrilled that Ecore is a company who will bring in the type of jobs that will attract people to move here and involve themselves in our community and our churches and schools. We want to thank the company for choosing to expand to Dale County and heartily welcome them.” Brenda Tuck is the Rural Development Manager for the Alabama Department of Commerce. Tuck said that Ecore’s recycling facility project in Dale County joins a list of innovative operations being launched in rural Alabama. Since 2020, projects valued at over $3 billion have landed in the state’s rural counties. “Companies from around the world are discovering that Alabama’s rural communities are an ideal location to bring their game-changing innovations to life,” said Tuck. “The simple fact is these areas can offer growing businesses significant advantages that will magnify the impact of their investment and provide a launchpad for growth.” To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Dan Roberts says legislature will look at ways to help taxpayers
State Sen. Dan Roberts (R-Mountain Brook) spoke on Sunday with Alabama Today about tax relief and reform proposals that the legislature is looking at in order to help Alabama families “that are really struggling with inflation.” The state is flush with cash due to the strength of the Alabama economy and federal stimulus dollars, so lawmakers are anticipating carrying over as much as $2.5 billion from the 2022 fiscal year into FY2023, which begins on October 1. Roberts told Alabama Today that he is still looking at Sen. Arthur Orr’s (R-Decatur) plan to rebate some of the surplus back to taxpayers in the form of one-time tax rebates. “I would not be opposed to that,” Roberts commented. “I still need to read the bill though.” Another proposal that Roberts thinks that the legislature will consider is eliminating the state’s four percent tax on groceries. “I like the concept of that,” Roberts said. “We need to consider anything we can do to help our people right now that are really struggling with inflation.” Roberts continued, “This is a big issue. I am an engineer, so I like to look at numbers. I would find that most interesting. I would support that if we can make the numbers work.” “I think it is closer to $500 million,” Roberts said of the tax revenues brought in by the four percent grocery tax. There are concerns by many in the legislature that the billions of dollars that the Trump and Biden administrations poured into the economy with CARES and the American Rescue Act are creating a temporary “sugar high” and that state revenues might fall back to where they were pre-pandemic. “You have to take a look at the total influx of moneys coming into the state,” Roberts explained. Another big issue that the legislature is likely to take up is renewing Alabama’s economic incentives. Alabama Commerce Secretary Greg Canfield is urging the legislature to pass incentives renewal legislation. “These are pay-as-you-go incentives. They are sustainable,” Canfield told reporters following a meeting of the legislative oversight committee. “Pay-as-you-go means companies have to perform and create new revenues before they can ever be paid an incentive. And that’s the best checks-and-balances system.” Roberts explained that Canfield has a bill to modernize incentives to help bring businesses to Alabama. “I am not opposed to the concept of that bill.,” Roberts stated. “We have to remain competitive with other southeastern states, and incentives are a major component of that,” Roberts explained. “We are competing against the other 48 continental U.S. States as well as foreign countries.” “We passed, and the Governor signed the Alabama competitiveness Act In 2021,” Roberts said. “It adds a great deal of competitiveness. Alabama businesses and corporations are getting their tax returns back now, and they are pleased with what we have done.” Roberts said that much of the focus of legislators right now is on the November 8 general election. “I do have a Libertarian running against me,” Roberts said. “There is a lot of work that goes into a Senate race. I am very focused on our situation locally.” Roberts was optimistic that Republicans will be able to hold their supermajority in the Alabama Senate. “I am looking at every other race across the state,” Robert said. “There are some guys I still haven’t met,” Roberts said, referring to Republican State Senate nominees. Dan Roberts represents Alabama Senate District 15. SD15 includes parts of Jefferson, Shelby, and Talladega Counties. Unless Governor Kay Ivey calls a special session, the State Legislature will not meet again until January and then for a brief organizational session where rules and leadership will be set for the next quadrennium. The next regular session will not begin until March. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Steel company to make $5.5M investment in Alabama
A carbon steel and aluminum parts manufacturer plans to create jobs in rural Alabama, state officials announced. Commerce Secretary Greg Canfield announced this week that O’Neal Manufacturing Services is planning to invest $5.5 million in Fayettte for a 130,000-square-foot facility to make steel while planning to create 70 full-time jobs within three years of the project’s completion. The company is a subsidiary of Birmingham-based O’Neal Industries. “O’Neal Manufacturing Services’ investment will bring advanced capabilities to its new fabrication facility in Fayette,” Canfield said in the release. “This is a positive development for the community not only in terms of job creation but also for growth potential in the future.” The company plans to manufacture carbon steel and aluminum parts that will be used to produce equipment in the construction, agriculture, materials handling, transportation, and other industries. According to the release, the company, which will have ten facilities when Fayette is complete, plans to utilize robotic machine technology along with welding stations, beam-cutting equipment, a wet paint booth, press brakes, plasma, and saw cutting initiatives that will all aid medium- to heavy-gauge steel production. “We are thrilled to have acquired the facility, and we are even more excited to have the skilled workers that were available in Fayette. People have always been our most valuable asset,” OMS President and CEO Kent Brown said in the release. “In this time of unprecedented low unemployment and worker shortages across the country, good people have become even more valuable.” Republished with the permission of The Center Square.
Greg Canfield and Gov. Kay Ivey note challenges, opportunities ahead for state economy
Alabama is not immune to global economic disruptions but is in a strong position to turn challenges into opportunities, according to the state’s commerce secretary. Secretary Greg Canfield said at the Economic Development Association of Alabama’s 2022 Summer Conference this week that the economic disruptions that began with the global pandemic now include worldwide inflation, a tight labor market, and ongoing supply chain issues. “Everyone is talking about disruptions again. It seems like we can’t get out of this pattern of talking about disruptions,” Canfield said. “Yes, we’re coming out of the pandemic, but now we’re facing things like the highest inflation that we’ve seen in 40 years.” While Alabama is feeling the pressures, so is the rest of the world, Canfield said. “We’re concerned that this is a different time,” Canfield said. He referenced the popular Netflix show “Stranger Things” and its Upside Down world where things seem to be opposite. “What is normally good news today is not being perceived as good news by the Federal Reserve,” Canfield said. “What I mean by that is the June reports for joblessness were great. The June reports for the number of jobs being created was great. But the Fed happens to look at that through the lens that maybe that isn’t such great news.” Economists don’t see the economy reacting as it should to high inflation, he said. Sooner or later, that may lead to a recession. Meanwhile, fast-growing inflation is hitting workers with higher prices at the pump and at the grocery store. That’s putting pressure on wages and reducing consumer spending. “We will turn these challenges into opportunities,” Canfield told the state’s economic developers. “Alabama will rise to a more vibrant economy, but we will need your help.” During her keynote address at the conference, Alabama Gov. Kay Ivey promised “the best is yet to come” even as she noted the challenges of high inflation. She declared, “Our country is at a critical point.” Canfield and Ivey both pointed to the $7.7 billion in new investment and more than 10,000 announced jobs connected to Alabama economic development projects announced last year. “Despite all of the challenges we’re facing, Alabama is thriving and will continue to do so,” Ivey said. Canfield’s appearance at the conference was fresh off his participation in the Farnborough International Airshow in London, where he said Alabama was in rarified air because of its aerospace successes. “Aerospace continues to take off in our state,” Canfield said. Space, missile defense, and commercial aviation are areas where Alabama excels, he said. “The whole sector of aerospace that’s really developing new technologies … they see Alabama as a potential home for continuing to expand that base,” Canfield said. Six potential projects were identified from the Farnborough trip that would build on aerospace announcements that most recently included: Airbus adding 1,000 jobs with an aircraft assembly line expansion in Mobile. The nation’s first Remote Tower Air Traffic Control Center at Selma’s Craig Field. A new Lockheed Martin Missile System Integration Lab in Huntsville. Kratos Defense & Security Solutions Inc.’s plans to add 76 jobs at its newly established business unit in Birmingham. Those successes, along with Alabama’s strength in other industries from automotive to advanced manufacturing, have the state in an enviable position, Canfield said. “We have the momentum, and we have disruptions,” Canfield said. “They create challenges, but smart states turn challenges into opportunities.” Ivey echoed Canfield’s optimism. “Make no mistake; we are well-positioned for the future,” she said. “This is our opportunity, so let’s not waste a moment.” Canfield said Alabama’s economic development successes have been aided by incentives programs like the Alabama Jobs Act and the Growing Alabama tax credits. Both programs will expire in June 2023. Canfield said studies show both programs are sustainable and viable, and the Department of Commerce will push to have them reauthorized in the next legislative session. Ivey said the reauthorizations will be on her legislative agenda. Canfield said he couldn’t be sure what the future holds, but he is certain of one thing. “It will be made in Alabama.” Republished with the permission of Alabama NewsCenter.
Progress report on Kay Ivey’s Success Plus plan; Alabama work skills increase
On Thursday, Gov. Kay Ivey shared that Alabama is making progress toward reaching her goal of adding 500,000 people with post-secondary credentials to the state’s workforce by 2025. Also known as Governor Ivey’s Success Plus plan, the report showed that since launching the plan in 2018, Alabama has added 214,922 credentials, according to the Center for Regional Economic Competitiveness (CREC). “Here in Alabama, we are laser-focused on bringing good-paying jobs to the state, and very importantly, we want to ensure we are providing opportunities for Alabamians to be the most equipped for those jobs,” stated Governor Ivey. “I am proud of our progress and predict we are well on our way to surpassing the goal of adding 500,000 additional credentialed individuals to our workforce by 2025.” Governor Ivey, collaborating with AlabamaWorks! and the Alabama Workforce Council, partnered with Credential Engine and the CREC to measure the progress. “I am extremely proud of the work the Alabama Workforce Council has done in advancing Governor Ivey’s Success Plus initiative and helping Alabamians earn post-secondary credentials that will set them up for success,” commented Alabama Workforce Council Chair Tim McCartney. “It is evident we have more work to do to carry this goal to completion, but we are on the right path and have the right leadership with Governor Ivey at the helm.” The progress report shows that since 2018, Alabama has made progress toward the Success Plus goal of adding 500,000 credentialed adults ages 16 to 64 to the workforce by 2025. Of the more than 200,000 added credentialed individuals, 137,848 newly credentialed individuals were in the 16 to 24 age group, and 38,240 were in the 25 to 64 age group. “Alabama’s current and future economic growth depends on a highly skilled workforce. That’s why I am so proud of the progress we are making in increasing our postsecondary education attainment goal,” said Alabama Commerce Secretary Greg Canfield. “We are on track to meet our goal, which will result in more Alabamians in the workforce.” “Success Plus has required focused efforts across multiple state agencies, the private sector and community-based organizations,” stated AIDT Executive Director and Deputy Commerce Secretary Ed Castile. “I am proud of the progress we have made thus far, and I am even more excited about the progress we will make between now and 2025.”
Alabama receives national recognition for economic development
On Friday, Gov. Kay Ivey announced that Alabama was selected for a Silver Shovel Award from Area Development, a national business publication. The award recognizes the state’s economic development successes in 2021. Indiana and South Carolina also received a Silver Shovel Award in the category for states with populations between 5 million and 8 million. Area Development’s annual Gold and Silver Shovel Awards evaluate the overall effectiveness of economic development efforts in states across the nation. In 2021, companies have announced new facilities and expansion projects involving $7.7 billion in new capital investment. It stands as the second-highest annual investment total for the state, trailing only the $8.1 billion recorded in 2018. These 2021 projects will create over 10,000 jobs across Alabama. Ivey emphasized that companies are choosing Alabama for their businesses because the state is pro-business. Ivey stated, “High-performing companies from around the globe have discovered first-hand that they can find all the advantages they need to succeed right here in Sweet Home Alabama. The Silver Shovel Award is a testament to the state’s pro-business environment and to the skilled workforce that makes that success possible.” In its new report, Area Development singled out The J.M. Smucker Co.’s project to build a manufacturing and distribution facility in Jefferson County as one of its “Deals of the Year.” “The combination of peanut butter and jelly is comfort food for many people, and frozen PB&J sandwiches will be comforting a lot of Alabama lives when a $1.1 billion Smucker’s plant opens in Jefferson County,” the magazine wrote. “The deal promises some 750 jobs that will pay an average of $25 an hour, making the company’s Uncrustables frozen sandwiches.” “The overarching goal of Alabama’s economic development team is to spark the creation of good jobs and enhance opportunity throughout the state by strategically focusing on high-impact industries with solid growth prospects,” stated Greg Canfield, Secretary of the Alabama Department of Commerce. “This honor is another concrete example showing that our team is executing on its plan and delivering results that make a difference for the state.” Other top 2021 Alabama projects listed by the magazine included Hanwha Cimarron’s plans for a manufacturing plant in Opelika, Amazon’s plans for fulfillment centers in Huntsville and Montgomery, as well as Alabama Graphite LLC’s investment in a graphite processing facility in rural Coosa County. Alabama claimed a Gold Shovel in 2020 for success in economic development projects that advanced the manufacturing sector.
Kay Ivey announces Shinhwa investing $78 million on second facility in Auburn
An auto supply company is expanding its footprint in Alabama, Gov. Kay Ivey said. The governor announced Tuesday that Shinhwa plans to invest $78 million into a second manufacturing facility in Auburn that is expected to create 42 new jobs over the course of the next three years. “This is a great example of the constant innovation and advancements in manufacturing – particularly in the automotive sector – right here in Alabama,” Ivey said in a release. “With this expansion, Shinhwa will have invested over $190 million and created more than 185 well-paying jobs since choosing Auburn as their first U.S. location.” According to the release, the company will construct a 400,000-square-foot production facility in Auburn Technology Park adjacent to its current building. The expansion will allow for additional output of aluminum parts and will help the company meet future demand with the rising production of electric vehicles. “This new facility will give us greater capacity for aluminum automotive parts, including both die casting and machining operations, allowing us to further diversify our customer base,” Kwi Hyun Lee, founder and CEO of the Shinhwa Group, said in the release. “This increased capacity will give us the ability to provide greater support for the electric vehicle market here in the U.S.” The Auburn facility opened in 2019, and since then, the company has achieved enough growth to meet the demands of the auto industry. Shinhwa has vertically integrated its supply chain and has added capacity designed to support electric and fossil fuel engines in vehicle manufacturing, according to the release. Shinhwa’s Auburn production facility provides parts to Hyundai’s plant in Montgomery and the Kia facility in West Point, Ga., according to the release. Over the course of the past three years, Shinhwa has undertaken a substantial expansion, according to the release. In November 2021, the company added high-pressure aluminum die casting and post-processing equipment in a $42 million expansion project. “Alabama has become a key player in the evolving global automotive industry, and Shinhwa’s continued growth in Auburn illustrates how our industry is preparing for the future,” Greg Canfield, Secretary of the Alabama Department of Commerce, said in the release. “We look forward to working with the company to support its expansion plans and fully develop the growth potential of its Auburn manufacturing operation.” Republished with the permission of The Center Square.
