Utility-scale solar projects brighten Alabama’s tech recruitment efforts
Massive new utility-scale solar farm projects are poised to dramatically expand Alabama’s solar power capacity as major technology companies make their first significant investments in the state. In the last three months alone, the Tennessee Valley Authority has announced plans for large solar installations in North Alabama tied to data centers being constructed by Google in Jackson County and Facebook in Huntsville. The new projects build on solar capacity in Alabama that only recently came on line. Alabama Power has also helped military bases in the state by installing solar projects to help them meet their goals. Alabama Power is using all the energy from the military projects and a portion from a Chambers County project to support its renewable programs. In the latest projects, TVA is teaming with developer First Solar to build what will be Alabama’s largest solar farm in Colbert County, serving Facebook. With an output of 227 megawatts, this project alone will almost double Alabama’s installed solar capacity of 252 megawatts, according to data from the Solar Energy Industries Association. “Solar power has a bright future for families in the Tennessee Valley if we can continue to attract top-tier companies like Facebook,” Doug Perry, TVA vice president of Commercial Energy Solutions, said in an announcement. Greg Canfield, secretary of the Alabama Department of Commerce, said the state’s economic development team is making a strategic push to recruit technology companies such as Facebook and Google. “These are world-class companies, and initial projects in Alabama represent an important first chapter in the growth of our high-tech sector,” Canfield said. “We’re working hard to set the stage for the arrival of other technology companies and the high-paying jobs they bring with them.” Like many high-tech companies, Facebook and Google have a commitment to using renewable energy. Between them, the companies are investing more than $1.3 billion in their Alabama data center projects. ‘Development boom’ These new utility-scale projects are rapidly expanding the state’s renewable energy landscape. TVA’s projects for Google and Facebook, which also include new solar farms in Tennessee communities, may have even set a precedent, according to pv magazine USA, an industry publication. “The net total of Google and Facebook’s actions are a development boom. If you had said last year that Alabama and Tennessee were on track to add 790 megawatts over just two development announcements, you’d have been accused of blasphemy,” pv magazine noted. In January, Google announced that in coming years it will purchase 413 megawatts of power from TVA for data centers it is building in Bridgeport, Alabama, and in Tennessee. The solar installation in Hollywood, Alabama, will produce around 150 megawatts. The two facilities will have 1.6 million solar panels. “These solar sites will be among the largest renewable energy projects in the Tennessee Valley region, and the largest solar farms ever to be built for Google,” the company noted in a blog post. “Thanks to the abundant solar power generated by these new farms, electricity consumed by our data centers in Tennessee and Alabama will be matched with 100 percent renewable energy from day one.” Last November, TVA announced plans for the Colbert County solar farm and a smaller facility in Tennessee, whose combined output of 377 megawatts will serve the Facebook data center in Huntsville. “This partnership aligns the core values of TVA’s public power model with Facebook’s mission to bring the world closer together — powered by renewable energy,” Perry said. Tracking the sun In LaFayette, Houston-based Centaurus Renewable Energy operates a 72-megawatt solar installation called AL Solar A. The facility sits on 1,100 acres in Chambers County and is made up of more than 338,000 solar panels that automatically track the sun for optimum efficiency. Alabama Power has a long-term power-purchase agreement with Centaurus to market the output of AL Solar A to its customers, chiefly to Walmart, which has adopted long-term sustainability goals. “Sourcing renewable energy from the AL Solar A project plays a crucially important role in providing power for Walmart facilities throughout Alabama,” Steve Chriss, director of Energy and Strategy Analysis for Walmart, said at an event marking the facility’s opening last year. Alabama Power has been involved in two other large-scale renewable energy projects, both on military bases in the state. A 10-megawatt installation at Fort Rucker comprises more than 115,000 solar panels on 90 acres. A 7-megawatt facility at Anniston Army Depot uses more than 87,000 solar panels. In addition to its planned projects, TVA purchases power from the River Bend Solar Energy Center in Lauderdale County. Operated by NextEra Energy Resources, the facility’s 300,000 solar panels have a generating capacity of 75 megawatts. Alabama could be in line for more large-scale TVA solar projects. Late last year, TVA said it is planning to invest $8 billion in renewable energy over the next 20 years. Alabama has another connection to solar power – on the manufacturing side. In June 2018, LG Electronics announced plans to invest $28 million to open an advanced solar module assembly plant in Huntsville, creating 160 jobs. LG’s new Alabama factory is expected to produce 500 megawatts of the company’s high-performance N-type solar panels annually, equivalent to about 1 million panels each year. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Alabama unemployment rate holds steady at 3.8 percent
Alabama’s unemployment rate held steady in January at 3.8 percent for the eighth consecutive month. “People are working in Alabama. Employers are hiring in Alabama,” said Fitzgerald Washington, Secretary of the Alabama Department of Labor. “We continue to report record numbers of people with jobs, and we are seeing fewer and fewer people counted as unemployed, which is what we like to see.” The number of people counted as unemployed in January measured 83,406, which is the third lowest count in history. Just one year ago, this number measured 86,250. “While maintaining our record low unemployment rate, we’ve also seen some great over-the-year growth in some of our high wage industries,” continued Washington. “Both the construction, information, and manufacturing sectors saw significant increases from January 2018 to January 2019.” Counties with the lowest unemployment rates are: Shelby County: 3.2% Marshall and Cullman Counties: 3.7% Tuscaloosa, Morgan, Madison, and Elmore Counties: 3.8% Counties with the highest unemployment rates are: Wilcox County: 10.5% Lowndes County: 8.2% Clarke County: 7.9% Major cities with the lowest unemployment rates are: Homewood: 2.7% Vestavia Hills: 2.9% Alabaster: 3.0% Major cities with the highest unemployment rates are: Selma: 8.8% Prichard: 7.5% Anniston: 6.1%
Auburn University constructing $22 million Advanced Structural Testing Laboratory
Auburn University is taking a big step as a leader in structural engineering research and instruction through the construction of a $22 million Advanced Structural Testing Laboratory. The 41,500-square-foot facility will include a high bay laboratory with specially engineered floors and walls capable of handling extreme structural testing loads; a geotechnical test chamber; a concrete materials research and testing laboratory; a wind testing facility, and faculty and graduate student spaces. The 4,700-cubic-foot geotechnical test chamber is one of the few across the nation included in a university laboratory. It will allow students and faculty to conduct testing that has been possible only in the field until now on structures such as foundations, anchorages and towers. In addition, the wind testing facility will allow replication of the dynamic wind loads induced by hurricanes, tornadoes and other extreme wind events on large-scale specimens. These unusual features, and many more, will accelerate research aimed at reducing the impacts during extreme events, and increase lifespan and safety of structures under all loading conditions. “Auburn is at the forefront of engineering education, and by providing our students opportunities for experiential learning, we’re ensuring our graduates emerge as industry leaders,” said Auburn University President Steven Leath. “This outstanding facility enables our researchers to deliver innovative solutions to pressing industry demands — something Auburn does best.” The laboratory will be near Auburn University Facilities Management offices on West Samford Avenue. The construction of the new facility will allow the Samuel Ginn College of Engineering to repurpose the structural laboratory space in the Harbert Engineering Center for other academic and research programs. “When you combine the strong floor and strong wall with the geotechnical testing capability and all the other materials testing capabilities, we think this will be one of the best laboratories in the country — if not the best,” said Steve Taylor, associate dean for research in the Samuel Ginn College of Engineering. “If I’m a civil engineering student who wants to be a structural engineer, this is going to be one of the best places to go to school in the nation.” This story originally appeared on Auburn University’s website.
$215M U.S. Steel project provides spark for Alabama steel industry
United States Steel Corp.’s plans to invest $215 million to install a technologically advanced electric arc furnace at Fairfield Works is expected to provide a boost to Alabama’s steelmaking industry in its historic home. U.S. Steel had initiated construction of the EAF at its Tubular Operations in Fairfield in March 2015 but suspended construction in December 2015 because of unfavorable market conditions. The project’s revival means the addition of 150 jobs at the Jefferson County facility. The company said the EAF will have an annual capacity of 1.6 million tons. “This puts Birmingham back on the map in the steel industry, which is a backbone of our region,” said Mark Brown, vice president of Business Retention and Expansion at the Birmingham Business Alliance. “The sustainable technology that will be used in the EAF will solidify Birmingham’s future in the industry for years to come. “U.S. Steel’s investment will have a monumental impact and will drive future growth for our region,” he added. U.S. Steel CEO David Burritt cited improved market conditions, President Donald Trump’s strong trade actions, support from the United Steelworkers and incentives from the State of Alabama and the Jefferson County Commission as reasons for the project’s revival. “This investment is an important step to improve our cost structure and positions our tubular business to win over the long term,” Burritt said. “We are committed to investing in the sustainable steel technology required to be a value-added tubular solutions provider for our customers.” AIDT support AIDT, the state’s primary workforce development agency, agreed to provide recruitment, pre-employment training and certain post-employment training support for the expected 150 new employees at U.S. Steel’s Fairfield Works. The AIDT commitment is estimated at nearly $1.4 million, according to data from the Alabama Department of Commerce. The BBA said U.S. Steel employs 750 in Fairfield and expects to add the 150 new jobs by 2020, bringing the total employee count to 900. The project will provide a lift to employment in Alabama’s steelmaking industry. Primary metals manufacturing jobs in Alabama stood at around 23,000 in October 1997. Today, the figure is just over 17,000, after adding 3,000 jobs since mid-2009. In Birmingham, primary manufacturing employment is around 5,500, up slightly since late 2016 but down over the long term, according to data from the St. Louis Federal Reserve. U.S. Steel has been making steel in Birmingham for more than 100 years. Construction on the EAF is expected to begin immediately, the company said, and the furnace is expected to produce steel rounds by late 2020, according to the BBA. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Goodyear to lay off workers this year at Gadsden plant
A Goodyear official says the tire company is planning layoffs at an Alabama plant. News outlets quote a Goodyear communications manager as saying that the layoffs will happen at the company’s plant in Gadsden. Barbara Hatala said in a statement Tuesday that employees will be laid off in the second quarter of this year as the factory reduces tire production. She says Goodyear doesn’t know yet which jobs or how many people will be laid off. Local 12 of the United Steelworkers represents the plant’s employees. A representative for the union declined to comment while it gathers information. According to the Gadsden Industrial Development Authority’s website, Goodyear employs 1,698 people, making it Etowah County’s largest employer. Gadsden is the county’s seat and roughly 70 miles (113 kilometers) northeast of Birmingham. Republished with permission from the Associated press
Kemira investing $71 million to expand Alabama operation, creating 20 jobs
Finland-based Kemira announced it is investing $70.8 million to expand production at its Mobile facility. The company is a polymer producer serving the pulp and paper, oil and gas, and water treatment industries. The project will create an additional 20 jobs, growing Kemira’s Mobile workforce by 32 percent, to handle new process operations, increased logistics and the support functions at the site. “For Kemira this investment is an important step toward the growth objectives outlined in our strategy. It also secures our position as a leading global polymer producer and demonstrates our continued commitment to the oil and gas industry,” said Pedro Materan, senior vice president, Oil & Gas, at Kemira. Richard Ryder, Kemira’s Mobile plant manager, said construction will begin this year and the expanded plant will be operational in 2021. “We are expanding on our current footprint and will significantly increase production to meet our customers’ demand in the oil and gas industry,” Ryder said. ‘Renewing a relationship’ The existing site first opened in 1938, initially focused on the area’s lumber and pulp and paper businesses. Over time, Kemira said, the site began serving the wider industrial water treatment industry and, more recently, the oil and gas industry. Kemira utilizes chemistry to add optimal quality, functionality and strength to paper and board products, ensure the safety and hygiene of water and food packaging, and maximize yield from energy resources. Mobile is one of three Kemira facilities in the U.S., with others in Columbus, Georgia, and Aberdeen, Mississippi. Kemira’s parent company, Kemira Oyj, is based in Helsinki, Finland, with its Americas headquarters in Atlanta. “There has been significant growth in the area’s manufacturing and chemical sectors, whose companies historically and continue to provide high-paying jobs for our community,” said Shelby Glover, the Mobile Area Chamber’s senior project manager of economic development. “I look forward to seeing what the future holds for Kemira as they continue to excel in Mobile,” Local officials welcomed Kemira’s decision to expand its Mobile operation. “This expansion by Kemira is about more than just jobs – it’s about a global company reinvesting in our city and renewing a relationship that dates back more than 80 years. When existing businesses are thriving in combination with new jobs and investment, that’s a winning formula,” Mobile Mayor Sandy Stimpson said. “We are very excited about Kemira’s decision to expand operations in Mobile County to meet customer demand. Their additional $70 million capital investment and 20 jobs further demonstrates Mobile’s growing attraction for foreign direct investment,” said Mobile County Commission President Connie Hudson. Republished with permission from Alabama NewsCenter
Kay Ivey: Workforce development is ‘very clear need’ that requires attention
Alabama Gov. Kay Ivey told economic developers today that the state’s success in growing jobs and capital investment is the result of teamwork and more of it will be required to address the workforce challenges ahead. “Alabama has hit record low unemployment rates and also we have more people working in Alabama than ever before,” Ivey told those gathered at the Economic Development Association of Alabama’s Winter 2019 Conference. “And jobs, y’all, are continuing to pour into our state. So, as we seek out companies to locate and expand in our great state, there remains a very clear need that we’ve got to prepare our men and women for the jobs of today and the jobs of tomorrow.” Ivey said it is an area that requires attention. “That’s why enhancing workforce development is vitally important and it’s a priority of mine moving forward,” she said. “This will be led by Nick Moore and this office will focus solely on aligning our workforce development funding streams with our workforce development programs for Alabamians all across our state,” she said. “This entity within the governor’s office is working to increase our labor force participation to surpass our goal to better equip some 500,000 of our workers with a post-secondary degree, certificate or credential.” It’s a needed element in a larger strategic plan to enhance workforce development that educators, leaders of business and industry and communities put together, Ivey said. “I know that together we can get that done,” she said. “Alabama’s workforce efforts will be known worldwide and they will be effective. And, to put it simply, they will be known as the best.” Ivey used her keynote address as a call to action. “So today, my friends at EDAA, I charge each of you, each and every one of you, to show the world that Alabama’s workforce is a force to be reckoned with and that Alabama is the place to do business,” she said. “Let’s show companies that the ‘Made in Alabama’ team is one to join because with it, our future will be filled with growth and opportunity for everyone.” Ivey’s address wasn’t all about the challenges. She did take time to celebrate the successes. “Throughout my time as governor, we have proven time and time again that success is best found when we work together,” she said. During her time as governor, Ivey said the state has seen $8 billion in new investment, 16,000 new jobs and several coveted economic development projects announced, along with strides to improve the state’s education system. “Working together, we are achieving these results,” she said. “But what matters most to Alabamians is what are the next steps. How are we going to build on the success that we’ve had?” Ivey said she and Commerce Secretary Greg Canfield recently met with seven top U.S. site consultants. “They made it very clear to me that they appreciate the teamwork that they see in our state,” she said. “They further said that they didn’t find that degree of teamwork in many other states.” That approach has led to a revamping of the state’s incentives program that is paying off, she said. One area seeing a large payoff is the way the state brings economic development to rural areas. “I’ve often said that we’re only truly successful when we are all successful together,” Ivey said. “That means also striving for economic growth is important for all 67 counties.” The incentives created by the Jobs Act focus on targeted counties allowing companies to claim more tax breaks for establishing operations in those counties. “Since I became governor, the targeted counties saw a success rate of over 70 percent by landing 10 economic development projects. This means that nearly $1 billion and some 1,200 new jobs have been created in rural Alabama,” Ivey said. “The targeted county approach certainly has merit,” she added. “It works, and we need to take advantage of that and continue to be innovative and work hard to be sure that we have economic development of our rural areas as well. Rural economic development is absolutely a top priority of mine. When there is gain in rural Alabama, it’s a gain for the entire state.” Reprinted with permission from Alabama Newscenter
AIDT to assist Airbus in hiring 600 new workers for Alabama growth
Airbus said it is working with AIDT to seek candidates to fill the first manufacturing positions at a new assembly line for A220 aircraft at the company’s production facility in Mobile. In addition, Airbus said it is hiring for production positions at its existing A320 Family aircraft manufacturing line on its Alabama campus. Altogether, Airbus plans to add 600 new employees in Mobile over the next 18 months. Open positions on both lines include aircraft structure/installation mechanics, aircraft cabin furnishings installers and aircraft electricians. Successful candidates for all positions will participate in several weeks of preparation at AIDT, the state’s primary workforce development agency, in a combination of classroom instruction and on-the-job training. “Airbus’ growth plans in Alabama underscore the strengths of the talented workforce that has already assembled more than 100 A320 family aircraft at the Mobile manufacturing facility,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Alabamians take pride in their work, and building A220 aircraft in Mobile will be another major accomplishment for the state’s workforce.” For a full job description of all the positions and to apply, go to https://airbususmanufacturing.applicantpro.com/jobs/. AIDT’s contribution AIDT has already played a major role in helping Airbus assemble and train a workforce at the company’s only U.S. manufacturing facility. In 2014, AIDT, part of the Alabama Department of Commerce, opened a $7 million training facilit ynear the Airbus campus in Mobile. “The addition of the new Airbus A220 family of aircraft in Mobile is proof that Alabama is well positioned with its workforce training to meet the needs of manufacturers all over the world,” said Ed Castile, director of AIDT and deputy secretary of the Alabama Department of Commerce. “AIDT has worked with Airbus since the beginning, and we’re honored to continue our support,” he said. “Congratulations to Airbus and Bombardier. We’re proud that they chose to build this next-generation aircraft here.” Airbus and Canada’s Bombardier finalized plans last year to form a joint venture to produce Bombardier’s C Series passenger jet, now called the Airbus A220. The new A220 production facility will be at the Mobile Aeroplex at Brookley industrial complex, adjacent to Airbus’ A320 Family production line. It will build aircraft for U.S.-based customers. The assembly line, which will create more jobs and further strengthen the aerospace industry, is part of Airbus’ strategy to enhance its global competitiveness by meeting the growing needs of its customers in the United States and elsewhere. A220 aircraft assembly is planned to start in 2019, using a combination of the existing and expanded Airbus facilities at Brookley to enable the first A220 delivery from Mobile to take place in 2020. A groundbreaking ceremony for the new facility is planned for next week. A permanent production process will be established upon completion of an A220 final assembly line building in 2020. Birmingham’s HPM was selected as program manager for the construction project, according to a November announcement. HPM served as program manager for Airbus’ $600 million project to build its first U.S. manufacturing facility in Mobile, with work beginning in 2013. Airbus delivered its first Alabama-made A321 aircraft in 2016. Airbus said some candidates for the new Alabama jobs will have the opportunity for on-the-job training with the company’s manufacturing team in Mirabel, Canada, before returning to Mobile. Production on the first A220 aircraft begins in the third quarter. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Birmingham Business Alliance launching a talent recruitment initiative
The Birmingham Business Alliance has enjoyed great success bringing industry to the metro area. A new initiative aims to bring people to the area to fill the jobs of tomorrow. At the 2018 BBA Chairman’s Meeting at the Alys Stephens Performing Arts Center at UAB, the metro area’s leading economic development organization unveiled a talent recruitment plan that officials said will be critical to growth. “Without question, workforce issues including availability of our workforce, the workforce’s alignment with career opportunities and, third, the perception that Birmingham can deliver a workforce to attract and support employers will be the most important economic development issues we will face in years to come,” said BBA CEO Brian Hilson. The BBA has hired New York-based Development Counsellors International (DCI) to help develop the talent recruitment plan. The BBA has worked with DCI for the past few years promoting and building the metro area’s image and recognition in national and international media. Andrew Levine, DCI chairman, said Birmingham has a good story to tell companies and potential workers. “You’re at a 3.5 percent unemployment rate in the Birmingham metro area, so companies right now, if they’re going to be able to grow, they have to find employees, they have to find workers,” Levine said. Levine said by taking this on as a key initiative, the BBA is taking the lead on other cities. “It is kind of a new day. This unemployment rate has gone down so much and the labor market has gotten so tight, it’s really in the last two years that people have started focusing on talent attraction,” Levine said. “There are some good models out there. I don’t think anyone has completely figured it out. The BBA is really a bit ahead of the game in terms of what other communities are doing, so there is a running start here that we have.” DCI is compiling data by interviewing human resources directors at Birmingham companies, employees and potential employees and mapping out the important components of talent recruitment in the metro area. Levine said the question they need to answer is: “How do you market Birmingham not just to companies, not just to visitors, how do you market Birmingham to potential residents?” He believes the key is to marry talent recruitment with tourism and business recruitment. “The three things should work all together and be integrated,” he said. DCI recently surveyed 1,000 millennials, who now make up the largest part of the workforce. The survey sought to discover what is most important to them in choosing a place to live and work. While the expectation was that issues like arts, entertainment and culture would carry the most weight, the results showed that millennials are practical and care most about the cost of living, housing costs and employment opportunities for their spouses. Hilson said that shows that any strategy must appeal to a wide range of workers. “Talent recruitment comes in lot of different flavors and shapes,” he said. “It’s based upon quality of life perceptions. It’s based upon job availability.” Nancy Goedecke, CEO of Mayer Electric, took over as BBA chairwoman at Tuesday night’s meeting, taking the gavel from Lee Smith from BBVA Compass, who ended his term. Goedecke said she has found with her business and her efforts in promoting Birmingham to others that the biggest hurdle is getting them to the Magic City to experience it for themselves. “We have got to continue to develop our talent, get people interested in coming to Birmingham,” she said. “The key is, once we get them to Birmingham they don’t want to leave. We’ve got a real plus in that area, but we’ve got to get them here. There is enough excitement in the air that will attract people to do just that.” Addressing workforce needs will be necessary for the BBA to build on its momentum since the Great Recession of a decade ago. Since 2011, metro Birmingham has announced 23,423 new jobs by new and expanding companies that have announced $5 billion in new investment. So far in 2018, Hilson said the metro area has announced 3,908 jobs by 24 new and expanding companies in the BBA’s core business sectors. That’s about 1,000 more new jobs than at this time last year. Also this year, the seven-county metro area has seen $958 million in new capital investment announced, a $450 million increase over what was announced a year ago. “While we are on track to meet the job and investment goals that are part of our BBA current five-year strategy, we all agree that a higher level of economic development accomplishment is attainable,” Hilson said. “Therefore, the BBA is adjusting our strategy and our expectations, and we will begin implementing those plans beginning early next year.” Birmingham Mayor Randall Woodfin is coming off his first year in office and said he recognizes what BBA has done while acknowledging more needs to be done. “As a city, I believe we’ve seen strong economic progress over the last year,” he said. “We’re grateful to our partners at BBA who have helped us build momentum and we look forward to the work we will continue to do together to move our community forward.” But not everyone shares in that success, Woodfin said. “Birmingham is a tale of two cities and each time I have the chance to speak to a set of leaders like each of y’all sitting in this room, I want to share that tension between the success some our businesses feel and the real struggle some our neighborhoods are up against,” he said. Woodfin noted that 30 percent of the city’s residents and 42 percent of its families live in poverty. The unemployment rate is twice as high among black residents compared to white, and four in 10 black adults have stopped looking for work altogether, he said. Alabama Commerce Secretary Greg Canfield praised BBA for tackling tough issues related to growing the region.“The bottom line is that we are making progress, but we are not yet where we need
Ohio-based manufacturer Hyster-Yale to move some operations to Alabama
An Ohio-based lift truck manufacturer plans to move part of its operations to west Alabama next year as part of an expansion plan. Al.com reports Hyster-Yale Materials Handling, Inc. announced Tuesday that its Bolzoni line’s North America attachment manufacturing will move from the company’s Homewood, Illinois, facility to its Sulligent, Alabama, facility. A company statement says the move to the larger Sulligent facility will start in January. It says Bolzoni will control the facility’s product manufacturing, and the range of products manufactured at the facility will be expanded. Employees at that facility will become Bolzoni workers. It says production will be phased out at the Homewood facility, which employs 70 people. The statement says the company intends to maintain a Bolzoni distribution center near Homewood. Republished with permission from the Associated Press.
Alabama counties target Mazda Toyota supply chain in jobs push
The groundbreaking for the new Mazda Toyota Manufacturing USA auto assembly plant in Huntsville took place just a couple of weeks ago, but the $1.6 billion, 4,000-worker project is already making a big impact across North Alabama. Business recruiters in the 13-county region have been working for months to lure suppliers for the facility. Their efforts include readying industrial sites and speculative buildings, along with a digital strategy that is reaching around the globe. The North Alabama Industrial Development Association (NAIDA) created a microsite that specifically targets companies interested in supplying the Japanese automakers’ operation, which is expected to launch production in 2021 with an eventual output of 300,000 vehicles annually. NAIDA President and CEO Brooks Kracke said his team went to work right away following the Mazda Toyota plant announcement in January. “We contacted the 13 counties we cover and asked them to give us their top five buildings or sites to put their best foot forward,” he said. “We put all of them on the microsite, along with additional data for each county, and we put everything in a searchable format.” The Mazda Toyota Manufacturing USA assembly plant in Huntsville will produce the next-generation Toyota Corolla, along with a brand new Mazda crossover model. (Toyota) Growing interest Since then, the microsite has drawn interest from companies and organizations from the U.S., Japan, India, China, Israel, Germany, Poland, Russia, the Czech Republic and beyond. Some companies have contacted NAIDA directly, asking for additional information, and some are scouting out the region in person, too. Meanwhile, NAIDA is contacting the companies that have looked at the microsite, including a Detroit firm that Kracke recently called on during a trip to Michigan. “This has given us a good segue to creating contacts and creating awareness that North Alabama is a good place to consider for their supplier operations,” he said. North Alabama is home to more than 100 automotive companies, in nearly every county. Anchors of the industry are the Toyota and Navistar engine plants in Huntsville; there are also numerous top suppliers for Alabama’s other automakers, which include Mercedes-Benz, Honda and Hyundai. The supplier impact of the Mazda Toyota plant could very well reach beyond North Alabama. Communities in other parts of the state are preparing to attract new firms and help existing companies land new business related to the facility. Kracke said the full supplier picture for the new Mazda Toyota plant is not yet clear. Companies are still determining their own plans and whether they will aim to supply the plant from existing facilities elsewhere or establish new operations nearby. But there’s no doubt that some will make a move to Alabama. It’s just a question of where. “The synergy is starting to happen, and I think the next five years or so will really be something,” Kracke said. Alabama Commerce Secretary Greg Canfield and Gov. Kay Ivey stand next to a Mazda at the official groundbreaking for Mazda Toyota Manufacturing USA in Huntsville last month. (contributed) ‘Catbird seat’ In Marshall County, the strategy to attract suppliers includes promoting a workforce that is well-versed in the automotive industry, said Matt Arnold, president and CEO of the Marshall County Economic Development Council. Over the past 20 years, the county’s auto sector employment has seen significant growth, amid continued expansions at two Tier 1 suppliers for the Honda auto assembly plant in Talladega County, and at a few Tier 2 and aftermarket suppliers. “Following the Mazda Toyota announcement, we immediately updated our website with specific information and a page for suppliers, and we designated three industrial sites that we feel are our optimal sites for suppliers,” he said. “We are also showcasing the fact that we have been in automotive for quite a while, and we have the training programs in place in our technical schools and career tech programs in our high schools.” As for location, Arnold said the most obvious choice for suppliers is west of Huntsville, around the Shoals, since that’s between the new Mazda Toyota plant and a Toyota plant in Blue Springs, Mississippi. But on the other hand, Marshall County is a prime location for suppliers who want to be in proximity to Mazda Toyota and Honda Alabama, he added. “If that’s the case, we’re in the catbird seat. We’re right in the middle,” he said. Developing relationships Recruiters in the Shoals also went to work quickly following the Mazda Toyota announcement, creating their own web page targeting suppliers, said Forrest Wright, president of the Shoals Economic Development Authority. An industrial robot turns the first shovel of dirt at a groundbreaking ceremony for the $1.6 billion Mazda Toyota Manufacturing USA assembly plant in Huntsville. (Hal Yeager/Governor’s Office) The Shoals has a solid automotive industry presence, an attractive location and more. “We have multiple highway corridors to the Mazda Toyota facility from this area of Alabama, which helps with just-in-time delivery,” Wright said. “The chance of delay is reduced if you have multiple ways to get there. We’re also just far enough away from the facility to not have to directly compete with that labor market.” Wright is a regular participant in the annual joint meetings of the Southeast-U.S. Japan and the Japan-Southeast associations, known as SEUS Japan. He was a part of the Alabama delegation that traveled to Tokyo in October for SEUS Japan 41. “One of the things we try to do as a community is to maintain good communication with our existing companies,” he said. “Doing business with companies from Japan has its own unique style, and one of the things you must do is develop and maintain relationships. “While we were in Japan, we visited the headquarters of Japanese companies located in our area. We’ve seen that bear fruit in the past.” This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
FBI bringing 1,350 jobs to Redstone Arsenal in Huntsville
The Federal Bureau of Investigation (FBI) will continue to grow at Redstone Arsenal in Huntsville, Ala. as part of an expansion project. The Redstone Arsenal FBI Director Robert Hamilton announced Thursday the federal agency will move 1,340 personnel and contractors from the Washington, D.C., area to Redstone. During a presentation to local Huntsville business and community leaders Hamilton explained that expects the building to be ready for occupancy in early 2021. “Alabama is on a roll. Each new development spawns two more. If you can’t find a job in Alabama, you are doing something wrong,” State Auditor Jim Zeigler said of the expansion. Currently, the FBI has around 300 employees working on its two Redstone campuses. According to the Associated Press, Huntsville Mayor Tommy Battle anticipates the FBI expansion at Redstone will reach between 4,000 and 5,000 jobs.
