Honda and Toyota reopen their Alabama plants with COVID-19 protection measures
Both plants had been closed since late March due to the COVID-19 pandemic.
Alabama’s largest county looks to continue economic development momentum
With the recent announcements of thousands of jobs coming into Jefferson County in connection with Amazon’s advanced robotics fulfillment center, DC BLOX’s data center and Shipt’s decision to keep its corporate headquarters in Birmingham, local officials are working from a playbook that has four steps, they say. It all begins with Alabama’s business climate that has been ranked as best in the United States for growth potential and workforce training by Business Facilities magazine, said Commissioner David Carrington, chair of the county’s Finance, Information Technology and Business Development Committee. The second is that Jefferson County is the economic center of the state, with the largest population and number of jobs. In 2016, companies announced they were going to create 14,500 jobs and invest $5.1 billion in Alabama. The Birmingham-Hoover metro area accounted for about 20 percent of those jobs and 25 percent of the capital investment. Jefferson County alone was responsible for 1,436 announced jobs and $506 million in capital investment. “In fact, the metro area’s gross domestic product is greater than Mobile, Montgomery and Huntsville combined,” Carrington said. “In 2017, according to the Alabama Department of Commerce, Jefferson County led the state with 2,200 new announced jobs in targeted industries.” The next step is collaboration among partners that often include the Birmingham Business Alliance (BBA), University of Alabama at Birmingham (UAB) and, if a proposed site is in a city, the city. “As in most successful projects, it was a well-coordinated community effort that led to a successful conclusion, and we’re very grateful to our partners and allies for their great work on this project,” said Lee Smith, East Region CEO for BBVA Compass and 2018 chairman of the BBA, after the area secured Amazon’s $325 million investment. “The county actively listens to the prospect’s needs and then participates in the development of an aggressive marketing plan with (those) partners,” Carrington said. Fourth, a project team is in place that “leverages our community’s assets,” Carrington said. “. . . We will talk about our enviable road and rail transportation network when talking to a distribution company; or UAB, Southern Research and Innovation Depot when talking to a STEM (science, technology, engineering and math) company; or our central, geographic proximity to Mercedes, Honda, Hyundai, Volkswagen, Kia and the soon to be open Toyota/Mazda plants when talking to an automotive supplier.” All of those steps are done under a positioning umbrella, he said. “Even if we don’t win a project, we want the company and their consultants to ‘have a good feeling’ about the community so we will be considered for a future project,” he said. Carrington pointed to the community’s Amazon HQ2 “BringAtoB” campaign. “The primary project team knew that Birmingham was at best a long shot, but, despite the odds, we put together an innovative vision and proposal for the company to consider,” he said. “While we didn’t win the headquarters, we caught Amazon’s attention and less than a year later announced an 855,000-square-foot advanced robotics fulfillment center in Bessemer.” Republished with the permission of the Alabama Newscenter.
Honda Alabama opens new logistics buildings in $85 million project
Honda Manufacturing of Alabama has officially opened its new logistics buildings, an $85 million project that further deepens the automaker’s roots in Talladega County, as well as its significant imprint on the state’s economy. The new facilities add nearly 400,000 square feet to Honda’s existing 4.2 million-square-foot factory in Lincoln, where more than 4,500 workers build the Odyssey minivan, Pilot SUV, Ridgeline pickup and the V-6 engines that power all three models for customers around the world. “Our new logistics operations represent an $85 million investment in our operations, as well as continued investment in our associates, our products and in customer satisfaction,” said Mike Oatridge, HMA vice president. “This new space will help us better streamline our logistics operations, which will result in improved parts delivery, improved quality and improved organization across our production lines.” The new logistics facilities are mirror-image buildings at both Line 1 and Line 2. They are part of a multiphased project dedicated to the enhancement and revitalization of Honda operations in Alabama. “I’m excited to see these new buildings come alive,” HMA President Tsutomu Morimoto said. Commerce Secretary Greg Canfield speaks at a grand opening ceremony for the new logistics buildings at Honda’s Alabama factory. (contributed/Alabama Newscenter) ‘Setting the standard’ Alabama Secretary of Commerce Greg Canfield joined company officials in cutting the ribbon on the expansion. He praised employees for Honda’s success in the state, growing from an initial $400 million investment in 2001 to more than $2.6 billion today. “You guys here have been a vital part of the fabric of the automotive sector that is growing very rapidly in our state,” he said. Canfield also cited Accelerate Alabama, the state’s strategic plan for economic development. One of the plan’s key drivers is supporting the growth of existing companies in the state. HMA’s latest investments in technology that will prepare the facility and workforce for future models are exactly the kind of growth from within that Accelerate Alabama promotes, he said. “Honda is a brand that people across the globe recognize, respect and desire to own, and you are setting the standard for that quality and excellence right here in Alabama,” Canfield said. “We’re looking forward to the continued investment that occurs here.” Alabama Commerce Secretary Greg Canfield, flanked by Honda Alabama workers and officials, cuts the ribbon on the company’s new $85 million logistics buildings. (contributed/Alabama Newscenter) Additional investment More growth is on the way. Last week, HMA announced an additional $54.8 million investment to improve weld operations at Line 2. This expansion, which will add more than 50,000 square feet, is expected to be completed in early 2021. When combined with the 2017 investment announcements for the Line 1 and Line 2 logistics facilities and other investments, HMA has taken on additions of more than 425,000 square feet to its production operations, along with an investment of about $150 million. A University of Alabama analysis shows HMA has an estimated $6.8 billion economic impact in the state. Republished with the permission of the Alabama Newscenter.
Honda to invest $54.8 million in Alabama expansion project
Honda Manufacturing of Alabama continues to grow its operations in Talladega County, with a multi-phase project that will improve flexibility, strengthen efficiency and prepare for future technologies. The latest phase announced by the automaker is a $54.8 million expansion that will add more than 50,000 square feet at Honda Alabama’s Line 2 operations. The expansion is expected to be completed in early 2021. When combined with last year’s investment announcements for both the Line 1 and Line 2 facilities, Honda Alabama will add more than 425,000 square feet to its production operations for a combined investment of about $150 million. “Honda is a cornerstone of Alabama’s vibrant automotive industry,” said Greg Canfield, secretary of the Alabama Department of Commerce. “The company continues to show confidence in its local workforce, with new investments that fuel innovative technologies sought by customers around the world.” Economic impact Honda has more than 4,500 employees at its $2.6 billion plant in Lincoln, which has the capacity to produce more than 340,000 vehicles and engines each year. Its lineup includes the Odyssey minivan, Pilot SUV and Ridgeline pickup, as well as the V-6 engines that power all three models. Last year, workers built a record number of Pilots as part of a total output of 357,316 minivans, sport utility vehicles, pickup trucks and V-6 engines. The factory has an annual estimated economic impact in the state of $6.8 billion, according to a University of Alabama analysis. Republished with the permission of the Alabama Newscenter.
Alabama team returns home after productive talks in Japan
Gov. Kay Ivey said meetings with high-level executives from Mazda, Toyota and Honda in Japan helped to fortify the state’s relationships with the global automakers and will facilitate their growth plans in Alabama. Ivey, Commerce Secretary Greg Canfield and a team of Alabama economic development specialists returned home Thursday after talks with the automakers and an appointment with Bill Hagerty, the U.S. Ambassador to Japan. The group traveled to Tokyo on Tuesday. “Creating jobs is a team effort built upon solid relationships with business and industry leaders. When Mazda Toyota Manufacturing announced they were coming to Alabama, they chose to make this announcement in Montgomery, a sign of their support for the current direction of our state and a clear indication of the quality of our relationship,” Ivey said. “By visiting with Mazda, Toyota and Honda in their home country, we have continued to kindle our relationship with these fine companies and have returned the respect they showed by meeting with me at the state Capitol in recent months.” Mazda-Toyota appointment The Japan mission took place amid preparations by Mazda and Toyota to construct a $1.6 billion assembly plant in Huntsville that will have 4,000 workers and produce 300,000 vehicles per year. When production launches in 2021, Mazda Toyota Manufacturing USA, as the alliance is known, will become the first new assembly facility to open in Alabama since Hyundai opened a plant in Montgomery in 2005. “A goal of the mission was to reiterate our support for the development and implementation of the Mazda-Toyota joint venture’s supply chain strategy for the new assembly plant,” Canfield said. “The supplier network will be substantial, and we’d like to see it anchored in Alabama.” Mazda and Toyota executives told the Alabama team the project remains on target, with construction work at the Limestone County site scheduled to begin by Oct. 1. The Alabama officials assured the automakers that the site will be graded and prepared for construction on that timeline. Ivey told the automakers that AIDT, the state’s primary workforce development agency, is ready to engage with them on developing a workforce program and suggested a near-term meeting to launch the process. AIDT has been involved in preparing Alabama’s auto industry workforce for a quarter century. “Alabama has a wealth of resources that can help these great automakers build their business in the state, ranging from first-class contractors that can assist with construction to research universities eager to collaborate with them to discover technical advances and new processes,” Ivey said. “With this mission, we strengthened our critically important partnerships with these automakers and continued to make clear our commitment to helping them create jobs and grow over the long term, not just in their current locations, but throughout Alabama.” Honda appointment During a visit to Honda, the Alabama team spoke with Yohshi Yamane, a senior managing director, and received an update on an expansion at the automaker’s Talladega County plant that was announced in 2017. The $85 million project is designed to improve manufacturing flexibility at the Alabama factory. The group also got a briefing on possible new advanced technologies that could be introduced at the plant. Ivey and Canfield met Tsutomu “Mori” Morimoto, who became president of Honda Manufacturing of Alabama on April 1. He was previously president of Honda’s Canada operation. Honda’s $2.6 billion Alabama facility has more than 4,500 employees and produces around 340,000 vehicles and V-6 engines each year. During the appointment with Ambassador Hagerty, the discussion focused on the strength of the U.S. auto industry, particularly in the Southeast, where the sector continues to expand. Employment in the state’s auto industry employment today tops 40,000, a figure that has increased 150 percent since 2000, according to data from the Alabama Department of Commerce. Republished with the permission of the Alabama Newscenter.
Ivey leads Alabama team in talks with Japanese automakers
Gov. Kay Ivey is leading a small team of Alabama economic development specialists on a business development mission to Japan for high-level meetings with leaders of global automakers Toyota, Mazda and Honda. The Alabama delegation is departing for Japan today and will return on Thursday following appointments in Tokyo. The mission’s strategic goal is to facilitate growth in the state’s automotive sector and extend relationships with the manufacturers. Bill Hagerty is the U.S. ambassador to Japan. (contributed) “The auto industry has been a key driver of economic growth in Alabama for two decades, and we want to make sure we’re positioned to see that growth accelerate in coming years,” Ivey said. “It’s important that we work closely with these automakers to ensure they thrive in Alabama because that will bring more jobs and investment to the state.” In addition to meeting with executives from the three automakers, the Alabama group will visit the U.S. Embassy in Tokyo to meet with Ambassador Bill Hagerty. There, the discussion is expected to center on the business climate in Japan and unfolding trade developments affecting both countries. “Ambassador Hagerty was one of the first people to call me and congratulate Alabama on attracting the Toyota-Mazda investment. This meeting shows the importance that Alabama plays on the world stage and I appreciate the work the ambassador does on behalf of our nation,” Ivey said. “I look forward to the meeting and to working with him to continue the strong relationship between Japan and Alabama.” Mission agenda The Japan mission comes as the Mazda Toyota Manufacturing USA joint venture partnership is beginning to move forward with plans for a $1.6 billion assembly plant in Huntsville that will employ 4,000 people and spawn a significant network of suppliers. Greg Canfield, secretary of the Alabama Department of Commerce, said the discussions with Mazda and Toyota executives will focus on moving the assembly plant project forward. In addition, the talks will center on how their critical supply chain can be filled out leading up to a planned production launch in 2021. “While we have a longstanding relationship with Toyota, we’re still developing bonds with Mazda, which has no manufacturing presence in the U.S.,” Canfield said. “We can use our extensive experience in assisting automakers expand their footprint to help the company build out a productive and efficient operation in Alabama.” Leaders from Toyota and Mazda announced their decision in January 2018 to open the assembly plant at a site in Huntsville that’s just 14 miles from a Toyota engine plant that has almost 1,400 workers after multiple expansions. Joining Ivey and Canfield in the meetings with Mazda and Toyota executives will be Huntsville Mayor Tommy Battle, Tennessee Valley Authority CEO Bill Johnson and Chip Cherry, president and CEO of the Huntsville/Madison County Chamber of Commerce. Steve Pelham, Ivey’s chief of staff, and Hollie Pegg, assistant director of business development at the Alabama Department of Commerce, will also be included in these meetings. Honda appointment Ivey, Canfield, Pelham and Pegg will also engage in talks with leaders of Honda, which operates a $2.6 billion assembly plant in Talladega County with 4,500 full-time workers. In early 2017, Honda announced an $85 million expansion as part of a multi-phase project to improve manufacturing flexibility at the Alabama factory and prepare it for future technologies. Canfield said the meetingAla with Honda is meant to reinforce Alabama’s strong relationship with the automaker and discuss how the state can support the facility’s new leadership and future growth plans. “Honda is a very important member of the Alabama automotive manufacturing family, and we’re committed to working closely with this great company as it pursues new levels of success at its Talladega County operation,” he said. Ivey said she hopes these meetings will lead to additional economic growth for Alabama and more trade between the state and Japan. Republished with the permission of Alabama Newscenter.
Kay Ivey travels to Japan, meets with automakers
Gov. Kay Ivey departed for Japan Tuesday with a small team of Alabama economic development specialists on a business development mission. There, they’ll attend high-level meetings with executives of global automakers Toyota, Mazda and Honda with the strategic goal to facilitate growth in the state’s automotive sector and reinforce relationships with the manufacturers. The Alabama delegation will return Thursday following the appointments in Tokyo. “The auto industry has been a key driver of economic growth in Alabama for two decades, and we want to make sure we’re positioned to see that growth accelerate in coming years,” Ivey said. “It’s important that we work closely with these automakers to ensure they thrive in Alabama, because that will bring more jobs and investment to the state.” The Japan mission comes as the Mazda Toyota Manufacturing USA joint venture partnership is beginning to move forward with plans for a $1.6 billion assembly plant in Huntsville that will employ 4,000 people and spawn a significant network of suppliers. Greg Canfield, Secretary of the Alabama Department of Commerce, said the discussions with Mazda and Toyota executives will focus on moving the assembly plant project forward. In addition, the talks will center on how their supply chain can be filled leading up to a production launch in 2021. “While we have a longstanding relationship with Toyota, we’re still developing bonds with Mazda, which has no manufacturing presence in the U.S.,” Canfield said. “We can use our extensive experience in assisting automakers expand their footprint to help the company build out a productive and efficient operation in Alabama.” Joining Governor Ivey and Secretary Canfield in the meetings with Mazda and Toyota executives will be Huntsville Mayor Tommy Battle, Tennessee Valley Authority CEO Bill Johnson, and Chip Cherry, president and CEO of the Huntsville/Madison Chamber of Commerce. Steve Pelham, Governor Ivey’s Chief of Staff, and Hollie Pegg, Assistant Director of Business Development at the Alabama Department of Commerce, will also be included in these meetings. Honda Appointment The state team, minus the Huntsville representatives, will also engage in talks with leaders of Honda, which operates a $2.6 billion assembly plant in Talladega County with 4,500 full-time workers. In early 2017, Honda announced an $85 million expansion as part of a multi-phase project to improve manufacturing flexibility at the Alabama factory and prepare it for future technologies. Canfield said the meeting with Honda is meant to reinforce Alabama’s strong relationship with the automaker and discuss how the state can support the facility’s new leadership and future growth plans. “Honda is a very important member of the Alabama automotive manufacturing family, and we’re committed to working closely with this great company as it pursues new levels of success at its Talladega County operation,” he said. Meeting with Ambassador In addition, the Alabama group will visit the U.S. Embassy in Tokyo to meet with Ambassador Bill Hagerty for a discussion expected to center on the current business climate in Japan and unfolding trade developments affecting the two countries. “Ambassador Hagerty was one of the first people to call me and congratulate Alabama on attracting the Toyota-Mazda investment. This meeting shows the importance that Alabama plays on the world stage and I appreciate the work the Ambassador does on behalf of our nation,” Ivey continued. “I look forward to the meeting and to working with him to continue the strong relationship between Japan and Alabama.” Ivey says she hopes these meetings will lead to additional economic growth for Alabama and more trade between the state and Japan.
Alabama third in nation in auto exports
According to a survey conducted by the Alabama Department of Commerce; Alabama is the third in the nation in auto exports. Mercedes-Benz is the state’s top exporter, responsible for $5 billion in shipments every year. Alabama exported a total of $7.75 billion in automobiles in 2017, coming up short of only Michigan and South Carolina. “Customers around the globe continue to seek the high-quality, high-performance products of Alabama’s auto industry, and our skilled auto workers continue to deliver what they’re looking for,” said Greg Canfield secretary of the Alabama Department of Commerce, in a news release. “The success of Alabama exports, and particularly automotive exports, helps create jobs and transform communities here at home.” Alabama-made vehicles were shipped to six continents in 2017. China was the leading market, accepting more than $2.2 billion in Alabama-built vehicles exports, a 10 percent increase from last year. Hilda Lockhart, director of Commerce’s Office of International Trade, said China is a good growth market for vehicles. “Their GDP continues to grow, and the middle class income level is increasing – thus buying cars,” Lockhart told the Associated Press. “As for Africa, this market continues to have a growing population and a lot of the people are moving to the cities. The main transportation is vehicles via the roads,” said Lockhart. “If the trend continues, Africa is an emerging market and is home to some of the top fastest-growing economies in the world.” Other top importers of Alabama-built vehicles were: Germany, Canada, Mexico, Belgium, South Korea, Australia, United Arab Emirates, India, South Africa, Chile and Saudi Arabia. Alabama’s Honda Manufacturing plant exports 8 to 10 percent of its annual output of SUVs, minivans and pickups. Exports of Honda products are limited because the plant only produces left-hand-drive vehicles, and some of their models are too large for countries with narrow roads and high fuel costs. Honda’s Alabama products were exported mostly to Canada, Mexico, Central and South America, South Korea and the Middle East. Hyundai’s Alabama plant exported nearly 5 percent of its SUVs and sedans last year. Most vehicles were exported to Canada, while some went to Puerto Rico and El Salvador.
Alabama metro ranks No. 1 for manufacturing jobs, analysis says
The Talladega-Sylacauga Micropolitan Statistical Area was rated the best place in the U.S. for manufacturing jobs in a detailed analysis by SmartAsset, a financial technology company that studied data on nearly 500 cities. SmartAsset singled out the high concentration of well-paying manufacturing jobs in the Talladega-Sylacauga area in its analysis. Here’s what the firm says about the micropolitan: “A large chunk of the workforce in this Alabama metro area work in manufacturing – just over 39 percent. Only three other metro areas in this study can beat this stat. “Manufacturing jobs here also pay pretty well, especially when you consider the area’s average housing costs. We estimate the average manufacturing worker earns $58,461 after accounting for housing costs.” The Talladega-Sylacauga micropolitan area consists of Talladega and Coosa counties, with a total population of around 93,000. The area’s top employer is Honda Manufacturing of Alabama, which operates an auto assembly plant in Lincoln with more than 4,500 workers. “Alabama has a strong heritage in manufacturing, and it remains an important pillar in the state’s economy,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Alabamians have the expertise to produce top-class products that are in high demand around the world, and the workers in the Talladega-Sylacauga area are especially good at it.” Manufacturing workers in Alabama total more than 260,000, representing more than 13 percent of the state’s workforce. That’s the fifth-highest concentration among the states, according to data from the National Association of Manufacturers. Rising incomes To identify the best places to work in manufacturing, New York-based SmartAsset looked at data for 483 metro areas in the United States. Specifically, the firm looked at data on employment growth in manufacturing, income growth in manufacturing, density of manufacturing jobs and housing costs. The number of manufacturing jobs in the Talladega-Sylacauga micropolitan area expanded by 3.4 percent in the past year, reaching 39.4 percent of total jobs, according to SmartAsset’s data. Incomes, meanwhile, climbed 6.2 percent over the year. The area’s annual income after housing figure of $58,461 was second-highest among cities making the list’s Top 25, and it was more than $10,000 higher than the city ranking just behind it on the overall list. “Manufacturers rely on the skills of their workers for success, and the talents of manufacturing workers in the Talladega-Sylacauga region are highlighted by this impressive ranking,” said Ed Castile, deputy Commerce secretary and director of AIDT, the state’s primary job training agency. After the Talladega-Sylacauga micropolitan, other areas rounding out the Top 5 on SmartAsset’s list of the top places for manufacturing were: Greenville-Anderson-Mauldin, South Carolina Ogden-Clearfield, Utah Rockford, Illinois Elizabethtown-Fort Knox, Kentucky The Talladega-Sylacauga area ranked No. 11 in the 2016 installment of the SmartAsset analysis. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Alabama auto sector primed for growth with $1 billion in new investment
Alabama’s auto industry continues to thrive, racking up new jobs and investments in communities across the state. Last year, there were at least 68 auto projects, for an estimated total of 3,848 jobs and $907.1 million in new capital investment, according to an analysis of the 2016 New & Expanding Industry Report. New projects announced this year push that total past $1 billion and add hundreds of more jobs. The projects included new companies and expanding operations, which manufacture everything from intricate vehicle parts and major component systems to entire automobiles. “Our deep roots in the auto industry keep growing deeper,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Last year alone, there were new or expanding auto companies in 26 Alabama counties, showing the vast reach of auto production in Alabama.” The foundation of the state industry is made up of three auto assembly plants operated by Mercedes-Benz, Honda and Hyundai, as well as a major engine plant for Toyota. The 2016 projects included Hyundai’s $52 million investment in upgrades to its Montgomery plant to bring the Santa Fe SUV back to its assembly lines. Another was the 535-job expansion of Tuscaloosa County’s Lear Operation Corp., which supplies seating systems to the Mercedes factory in Vance. Among the other highlights were MöllerTech USA LLC’s new $46.3 million, 222-job facility in Bibb County and a $14.5 million, 200-job expansion for Eissmann Automotive North America Inc. in St. Clair County. Both manufacture parts for car interiors. Elsewhere, Spain’s Truck & Wheel Group is building its first U.S. parts plant in Tuscaloosa County, where it’s investing $30 million in an operation that will employ 70 people. In Lee County, The Berghoff Group announced a $30 million, 100-job precision machining facility. Hyundai invested $52 million in its Alabama assembly plant to launch production of the Santa Fe Sport SUV. (Contributed) Promising outlook As Alabama’s auto industry marks a key milestone – two decades of vehicle production – the sector’s growth prospects continue to look strong in 2017. Mercedes, for example, recently held a supplier forum at its plant to discuss its next-generation SUVs. Officials for the automaker underlined the current and future importance of SUV production in Alabama during personal discussions with partners including Lear, SMP and Kamtek. They also emphasized the successful partnership that has grown over the years since the first Mercedes M-Class rolled down the automaker’s Alabama assembly line on Feb. 14, 1997. “The increasing requirements due to a continual rise in production numbers for the SUV segment was a massive challenge for all suppliers, which was mastered very well,” said Dr. Klaus Zehender, member of the divisional board of Mercedes-Benz Cars, Procurement and Supplier Quality. Jason Hoff, president and CEO of the Alabama operations, Mercedes-Benz US International Inc., echoed those comments. “These are exciting times for our Alabama facility as we prepare to take on this new challenge to build the next generation of SUVs,” he said. “Mercedes-Benz became the first auto manufacturing plant to build vehicles in Alabama more than 20 years ago and, since that time, other automakers and suppliers have joined us. “Our suppliers have found – just as we have – that Alabama is a great place to do business,” Hoff added. Commerce Secretary Greg Canfield, left, presents MollerTech leaders with an Alabama seal at a groundbreaking ceremony last year. The company is one of several auto suppliers that announced projects in Alabama during 2016. (Contributed) 2017 momentum Meanwhile, 2017 has brought new auto sector projects to Alabama, setting the stage for more growth across the state. Among them: Auto supplier Hanwha Advanced Materials America LLC plans to invest $20 million to upgrade its manufacturing facility in Opelika, adding 100 jobs over the next three years. Honda announced plans to invest $85 million at its Lincoln plant in the first phase of a multi-faceted project to improve manufacturing flexibility, strengthen logistic efficiency for future models and prepare for future technologies. Spain-based auto supplier Grupo Antolin announced plans to invest nearly $10.4 million to establish a manufacturing facility in Jefferson County that will employ 150 people by 2020. Republished with permission of Alabama NewsCenter.
Alabama foreign investment tops $1.5 billion in 2016, creating 3,250 jobs
Businesses based in countries around the globe continue to find a welcoming home in Alabama, as the state’s foreign direct investment (FDI) reached $1.57 billion last year, driving job growth in several industries. Expansions accounted for the vast majority of the 79 FDI projects announced by companies in 17 different countries. But there were notable new projects, too. A total of 3,254 new jobs were tied to the overall investment, according to the 2016 New and Expanding Industry Report, which was released last month by Gov. Kay Ivey and the Alabama Department of Commerce. Overall, the state landed nearly $4.2 billion in capital investment and more than 14,700 new jobs. “The success of the companies operating in Alabama is a story that’s being told around the world,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Here at home, that’s meant significant new investments and lucrative jobs for communities across the state.” FDI has represented a powerful growth engine for Alabama, with foreign companies announcing $7 billion in new capital investment in the state since the beginning of 2013, according to Commerce data. Top FDI sources Austria led the way in FDI during 2016, with a total investment of $666.1 million. That was due mostly to two major expansions of existing companies in the state. Kronospan, a leading manufacturer of wood-based panel products, announced plans to invest $362 million in its Calhoun County operations and add 160 jobs. Another Austrian firm, Lenzing AG, said it would spend $293 million to expand production of an eco-friendly, botanic fiber at its Mobile County plant. The project is also creating 163 jobs. A third Austrian firm, auto supplier voestalpine, announced plans for an $11 million manufacturing facility in Jefferson County with 42 jobs. Other countries that were in the top five for FDI were: Germany — $213.5 million South Korea — $155 million Canada — $145 million Spain — $131.7 million In terms of new jobs, German companies announced the largest overall total for Alabama last year, with 1,187. Those projects included a new plant in Bibb County for automotive supplier MollerTech USA LLC, which plans a $46.3 million investment and 222 jobs. There was also an expansion in St. Clair County for Eissmann Automotive North America Inc., an automotive supplier that is adding $14.5 million and 200 jobs. Other top countries for total jobs were: Canada — 527 jobs Austria — 365 jobs South Korea — 347 jobs France — 333 jobs FDI and jobs also came from companies in other countries, including Australia, Belgium, Finland, Israel, Italy, Japan, Mexico, Switzerland, Taiwan, Thailand and the United Kingdom. Canfield recently led a trade mission to Canada, the state’s top international trade partner. Auto driver Auto industry projects dominated the entire list of FDI activity. Another major expansion in this sector was in Jefferson County, where Spain’s Gestamp announced plans to invest $131 million in its metal stamping operations. Alabama Commerce Secretary Greg Canfield, left, presents MollerTech leaders with an Alabama seal at a groundbreaking ceremony. (Made in Alabama) In addition, other suppliers for automakers Mercedes-Benz, Honda, Hyundai and Toyota –- and in some cases, the manufacturers themselves –- took steps to expand their Alabama facilities. Foreign direct investment plays a key role in the U.S. economy, according to SelectUSA, which works to facilitate job-creating business investment in the United States. About 6.4 million U.S. workers were employed by U.S. affiliates of majority foreign-owned firms in 2014, the latest data available. In addition, these companies account for $57 billion in research-and-development spending, and their total contribution to U.S. exports is estimated at $425 billion. In Alabama alone, 92,700 jobs are directly supported by majority foreign-owned affiliates, SelectUSA figures show. From July 2007 to June 2016, a total of 221 greenfield, or new, FDI projects were announced in the state. Nearly a quarter of them were by companies based in Germany, which is no surprise, since that’s the corporate home of Mercedes. Japan, home to Honda and Toyota, and South Korea, home to Hyundai, trailed close behind at 18 percent and 17 percent, respectively. Republished with permission of Alabama NewsCenter.
Alabama business roundup: Headlines from across state – 9/30/16 edition
Which manufacturer has just produced their four millionth vehicle in Alabama? As the global shipping industry faces problem, should Alabama’s port be concerned? Answers to these questions and more in today’s business roundup below: Birmingham Business Journal: Bham contractors named to prestigious list Birmingham-based companies were recently named to a list of the nation’s top construction firms. Building Design + Construction magazine ranked B.L. Harbert as the No. 2 on its list of Federal Government Giants, firms with the largest amount of government projects last year. According to a press release, B.L. Harbert had more than $661.2 million in revenue for federal projects in 2015. Federal work is the company’s largest market sector in a diverse portfolio. “We are humbled to be recognized as a Building Design + Construction Giant in the federal division,” said Chuck Bohn, President of BL Harbert’s International Group. “This is a testament to our employees, near and far, for securing contracts and performing the work successfully. We look forward to what next year will bring for our team.” Another local firm, Brasfield & Gorrie, ranked No. 8 on the list. The company had more than $105 million in 2015 federal project revenue. Robins & Morton ranked No. 17 with more than $38 million, and Hoar Construction came in at No. 27 with around $7.7 million in 2015 federal project revenue. Alabama News Center: Milestone: Honda produces 4 millionth Alabama-made vehicle If you line up all the Honda vehicles that have been built at the automaker’s Talladega County plant since it opened 15 years ago, they would stretch across the U.S., from New York to Los Angeles, more than four times. That’s what 4 million Alabama-made Hondas look like. Last week, Honda Manufacturing of Alabama celebrated a key milestone: the production of 4 million vehicles and V-6 engines. The $2.2 billion plant started mass production in November 2001. It is the sole source of Honda’s Odyssey minivan, Pilot SUV and Ridgeline pickup, as well as the Acura MDX luxury SUV. It also produces the engines that power all four vehicles. “The commitment and dedication of our 4,500 associates has allowed HMA to achieve this production milestone and fulfill our commitment to quality for Honda customers across the globe,” HMA President Jeff Tomko said. The 4 million milestone came as a delegation of Alabama government and business leaders were visiting Tokyo for SEUS Japan 39, a forum that aims to strengthen cultural and economic ties between the Southeastern U.S. and the Asian nation. Greg Canfield, secretary of the Alabama Department of Commerce, led the state delegation in Tokyo. Canfield and a group of Alabama officials visited Honda’s corporate headquarters last week. “Honda has been a powerful economic engine in Alabama, creating thousands of jobs and new levels of opportunity for residents in Talladega County and across the state,” Canfield said. “Honda has found a home in Alabama, expanding repeatedly to boost output and add capabilities,” he said. “We’ll work hard to keep this fruitful partnership going strong.” Going the distance To mark the milestone, Honda had a little fun with the numbers. Based on an average length of 16.4 feet per vehicle, 4 million HMA-built vehicles lined up end-to-end would stretch 12,422 miles, the company said. That would: Stretch around the Talladega Superspeedway 4,670 times (2.66 miles) Nearly span the distance (just eight miles short) from the North Pole to the South Pole (12,430 miles) Go from New York to Los Angeles almost 4.5 times (2,791.8 miles) Four million vehicles also would: Fill up every parking space at Hoover’s Riverchase Galleria 370 times (10,800 spaces) Fill up every parking space at Walt Disney World 170 times (23,540 spaces) 2.2 million minivans The Odyssey represents the lion’s share of the plant’s output over the past 15 years, accounting for more than 2.2 million models produced. It’s followed by the Pilot, at 1.4 million, the Acura MDX at 216,521 and the Ridgeline at 121,009. The plant also turned out 27,119 Accord V-6 sedans from 2009 to 2010. Honda’s Alabama assembly lines have the capacity to produce up to 340,000 vehicles and engines per year. Since 2013, the company has invested more than $520 million and added more than 500 jobs in multiple expansions. A 2015 study showed the plant generated $6.8 billion in economic activity in the state. Along with its Tier 1 suppliers, the automaker is responsible for more than 43,000 jobs and 4.4 percent of the state’s total annual output of goods and services. Honda leads the way in Japanese investment in the state. Since 1999, when the automaker announced plans for the Talladega County operation, Japanese companies have invested more than $5 billion in Alabama. Birmingham Business Journal: UAB, Under Armour sign 7-year apparel agreement Sports apparel company Under Armour will pay the University of Alabama at Birmingham a rights fee of $50,000 per year under a new seven-year outfitter contract. UAB and Under Armour on Thursday publicly announced the partnership, though the contract officially began on June 1 of this year. UAB athletes and employees began wearing Under Armour apparel in July. “We’re thrilled for all of our student athletes,” UAB Athletic Director Mark Ingram said. “We’re excited to provide such a high quality product for our students.” In addition to the annual rights fee, UAB will receive a $1,075,000 product allowance for the 2016-17 school year. The annual allowance will decrease to $1 million for the 2018 and 2019 school years before increasing again, ending at $1,030,000 for the 2022 school year. Todd Locklear, manager of Under Armour’s NCAA services, announced the partnership alongside Ingram and UAB coaches Thursday. “UAB checks a lot of boxes for us. Birmingham is a huge market for Under Armour,” Locklear said, pointing to their relationship with Birmingham-based Hibbett Sports (Nasdaq: HIBB) Locklear said Under Armour (NYSE: UA) is excited about the rebirth of UAB football, as well. Under Armour will design a unique football uniform and sideline products to commemorate the return of the program next fall. “Their jerseys mean a lot to us,” Locklear said. “We
