BCA announces new governance structure, companies return

BCA

The Business Council of Alabama (BCA) on Wednesday announced a new plan to strengthen and improve the association’s governance structure. Several major corporations including Alabama Power, Blue Cross and Blue Shield of Alabama, and Regions Bank left the organization this summer siting problems with BCA’s leader Billy Canary. The BCA has stated in June that they would be replacing Canary. “The wholesale governance and leadership changes made today show what is possible when businesses come together with a common goal,” said CEO of Alabama Power Company, Mark Crosswhite in a press release.  “While the hard work of moving this organization forward remains, I am pleased with this progress and look forward to working with businesses across our state for a stronger BCA and a better Alabama.” The BCA’s new structure consists of an executive committee made up of 11 individuals. According to the BCA, five committee members represent larger businesses, five represent smaller businesses, and one trustee represents the Alabama Self-Insured Worker’s Compensation Fund. The new executive committee elected today includes: Rey Almodovar, CEO, Intuitive Research and Technology Mark Crosswhite, CEO, Alabama Power Co. Perry Hand, Chairman, Volkert Inc. Denson Henry, Owner/Vice President, Henry Brick Co. Carl Jamison, Shareholder, JamisonMoneyFarmer PC Johnny Johns, Executive Chairman, Protective Life Corp. John Mazyck, Principal, The Frazer Lanier Co. Gary Smith, CEO, PowerSouth Energy Cooperative John Turner, CEO, Regions Bank Bobby Vaughan, Chairman of the Board, Alabama Self-Insured Worker’s Compensation Fund Tim Vines, CEO, Blue Cross and Blue Shield of Alabama “We are fortunate in Alabama to have a business community that understands the importance of providing strong leadership on matters that affect our state’s economic success,” Heather Brothers New, chairwoman of the Chamber of Commerce Association of Alabama said in a press release. “Individuals, families and communities can’t thrive if our state doesn’t provide an environment where businesses can thrive. Everyone in Alabama benefits from this effort to ensure a unified and effective BCA.”

After major departures, Business Council of Alabama plans for its future

BCA President and CEO William J. Canary

Following a wave of high-profile member-company departures, the Business Council of Alabama Board of Directors met via conference call Monday to be apprised of the ongoing work of its Executive Committee the last several months to implement its plan for the transition and succession of executive leadership at the organization. “Today’s meeting brought the Board up to date on the efforts to identify a high-quality, dynamic leader and on-board that individual by September 1, 2018, but not later than January 1, 2019,” said BCA Chairman Perry Hand. “Throughout this process, it’s always been about what’s in the best interest of the organization as a whole and not just meeting arbitrary deadlines. Our organization has never had a smooth transition of power, and it’s imperative that we get this right.” Last week, Alabama’s largest health insurer Blue Cross and Blue Shield of Alabama (BCBSAL) joined Alabama Power, Regions Bank and PowerSouth Energy Cooperative in leaving the BCA due to dissatisfaction with BCA’s leadership under President and CEO Billy Canary. The selection committee, which is comprised of members of the Executive Committee, will begin their work immediately to identify and hire an individual to lead the organization into the 2019 legislative session and into the future. Former BCA Chairman Carl Jamison was named chairman of the selection committee. Other members of the selection committee are BCA 2017 Chairman Jeff Coleman, BCA 2018 Chairman Perry Hand, BCA Vice Chairman Denson Henry, BCA Executive Committee Member Wayne Hutchens, and BCA 2016 Chairman Tommy Lee. Members of the transition committee were also named. The transition committee is tasked with overseeing all the tasks essential to a successful transition of power, including the on-boarding process for a new president and CEO. “The BCA has achieved major successes through the years under the leadership of Billy Canary and the entire team at the BCA” added 2017 BCA Chairman Jeff Coleman. “There is definitely more work to do, which is why the BCA is focused on being a catalyst to bring growth and prosperity to our great state. We are currently in the middle of an election year that will see a new Legislature elected – a Legislature that will have to develop effective solutions for infrastructure, education, and health care, to name a few. As an organization that respectfully represents over 1 million working Alabamians, we are strongly committed to the work ahead of us to move Alabama forward.” On May 21, the BCA Executive Committee adopted a formal Transition and Succession Plan, the first in the organization’s 33-year history. The plan established guidelines to provide for an orderly transition of leadership. Monday, the BCA Board of Directors accepted that plan with unanimous support.

PowerSouth joins Alabama Power as second major company quitting BCA, citing leadership concern

electrical-power-lines

PowerSouth, an energy cooperative servicing parts of South Alabama have joined Alabama Power in cutting ties with the  Business Council of Alabama (BCA). In a letter to BCA Chairman Perry Hand and the BCA Executive Committee, President & CEO of PowerSouth Gary L. Smith indicated that the company believes the BCA has become ineffective under the leadership of Billy Canary.  “Our problem with BCA is simply Billy Canary and his leadership. Billy has been effective in the past, but in our opinion Billy is now a severe liability and must be replaced for BCA to again be effective,” Smith said in the letter. PowerSouth’s concerns are similar to those listed by Alabama Power, “[W]e have become concerned that membership in BCA has become a liability rather than a benefit,” wrote Alabama Power CEO Mark Crosswhite in a letter to BCA Chairman Hand and Executive Committee. He continued, “To be candid, BCA has needlessly alienated federal and state officials, failed to communicate with its own members, squandered our collective corporate goodwill, allowed its financial health to decline, and become a divisive force in our State.” Read PowerSouth’s full letter to BCA below: Dear Perry: Power South has been a long, supportive member of BCA. We have supported the BCA political agenda, assisted on many BCA projects and sponsored a number of events for BCA. More recently, I have expressed our concern that BCA has lost its effectiveness and, more importantly, its way. I have described in detail many of our specific concerns about BCA’s activities, shortcomings, and relationships. You are familiar with those concerns and I will not repeat them. They are all symptoms of a more serious issue of leadership. Our problem with BCA is simply Billy Canary and his leadership. Billy has been effective in the past, but in our opinion Billy is now a severe liability and must be replaced for BCA to again be effective. You indicated the BCA Executive Committee agrees a leadership change is needed, but we have serious disagreements about the timing of the replacement, Billy’s continuing involvement in the search for his replacement, and his involvement in the leadership transition. We have no interest in participating or supporting an organization that Billy heads, influences through his choice of successor, or can manipulate through a transitional plan. It is simply time to completely sever the relationship before further damage is done to the organization. Apparently, the Executive Committee doesn’t view the leadership issues as seriously as we measure them. Therefore, you have left us no option other than to withdraw from BCA immediately. Sincerely, GARA Gary L. Smith President & CEO  

BCA, Alabama Technology Network announce Manufacturer of the Year awards

BCA, Kay Ivey, ATN

The Business Council of Alabama and the Alabama Technology Network announced the 2018 Manufacturer of the Year (MOTY) winners on Wednesday. The winners were announced during an awards luncheon ceremony at the Alabama Activity Center in Montgomery, Ala. Awards were broken down into large, medium, and small manufacturer categories. This years winner are: Large Manufacturer of the Year (400 or more employees): ADTRAN Inc., Huntsville Medium Manufacturer of the Year (100 to 399 employees): Birmingham Fastener & Supply Inc., Birmingham Small Manufacturer of the Year (1 to 99 employees): Ecovery LLC, Loxley Governor Kay Ivey was the keynote speaker for the ceremony. “From automobiles to aerospace to everyday products and equipment, whether for our own use or for export around the globe, Alabama’s manufacturers create high-quality jobs and produce substantial economic benefits,” Ivey said. “Our manufacturers are very important to us and we are committed to helping them succeed and thrive.” Each year, the MOTY awards recognize manufacturing enterprises in Alabama who exhibit excellence in leadership, performance, profitability, and workforce relations. An independent panel of judges select the winners based on their performance in several categories including: customer focus, operating excellence, employee commitment, profitable growth, continuous improvement, and investment in training and retraining. BCA Chairman Perry Hand, chairman of Volkert Inc. recognized MOTY finalists for 2018. “The annual Manufacturer of the Year Awards seek to honor Alabama manufacturers – from the largest industrial employers to the smallest businesses – for displaying efficiency, safety, and excellence in their products and the process for making them,” said William J. Canary, president and CEO of the BCA. “Quite simply, manufacturing is an economic engine powering the state’s economy.” ATN Executive Director Keith Phillips said; “The companies acknowledged today represent the best in Alabama manufacturing and the use of technology. Now in its 19th year, the Alabama Technology Network and the Business Council of Alabama are honored to salute Alabama’s best manufacturers for their valuable participation in not only the state’s economy but also the economies of their employees and the suppliers who do business with them.” More about the 2018 Manufacturers of the Year ADTRAN Inc.: Since its creation in 1985, ADTRAN Inc. in Huntsville, Ala. has been a worldwide leader in the information and communications technology industry. After AT&Ts divestiture of the Regional Bell Operating Companies, ADTRAN founder Mark C. Smith saw an opportunity to supply network equipment to the new Regional Bell businesses and thousands of independent telephone companies. From an initial seven employees to a workforce of almost 2,200 today, including 1,500 in Huntsville, ADTRAN serves more than 2,400 customers in 68 countries. The publicly traded company has shown consistent revenue growth, devises ways to cut costs, supports employee education and career development, encourages and supports community involvement, and supports more than 200 organizations. ADTRAN is a two-time winner, having won a MOTY award in 2010. Birmingham Fastener & Supply Inc.: Birmingham Fastener & Supply Inc. has successfully built a manufacturing company by valuing customers and people, providing quality products with customer service, and emphasizing development of its people. Founded by the late Howard P. Tinney in 1980, Birmingham Fastener & Supply is the South’s largest and most diversified fastener supplier. It makes and distributes fasteners for structural steel fabrication, metal building  manufacturers, transportation, water works and utilities, original equipment manufacturers, agricultural equipment manufacturers, construction and maintenance, and repair and operations industries. Birmingham Fastener & Supply provides two scholarships a year through Wallace State Community College, education assistance to employees, and partners with Workshops Inc. that focuses on training people with disabilities. Ecovery LLC: Ecovery LLC in Loxley was formed in 2008 by Larry Sloan and Walter Norris originally to recycle and process electronic waste such as computers, televisions, and cell phones. In 2013, the company shifted to processing primarily copper and aluminum radiators from commercial and residential HVAC units. Ecovery LLC separates, shreds, and re-packages the pure raw material to fit customer needs. Ecovery also melts aluminum flakes from the shredding operation and mixes it with other scrap to produce recycled secondary ingots. Ecovery has two plants that employed 66 men and women in 2017.

Personnel note: Volkert names Jerry Stump CEO in “Strategic Succession Plan”

Jerry Stump

Alabama-based Volkert Inc. has announced effective January 15, CEO and Chairman of the Board Perry Hand is stepping down as CEO. Hand has named President and COO Jerry Stump to be his successor. “This transfer of leadership represents a well-thought-out succession plan that’s been five years in the making,” stated Hand. Hand will remain Chairman of the Board, to support the CEO in corporate activities. He has held many different leadership positions at the firm since 1993, and has occupied the CEO position for the past seven years. Hand hired Stump as COO nearly two years after taking over as CEO himself in 2011. The two men found that they had complementary strengths and together grew Volkert 15 percent each year for the last six years, taking it from a $77 million firm in 2011 to a $180 million firm today. In 2017, the firm also became one of the top 100 U.S. Engineering Firms according to Engineering News-Record’s. Stump said he is “incredibly honored to receive this appointment from Perry Hand.” “Perry has provided leadership, stability, and growth to Volkert through a quarter century of service. No incoming leader could ask for a better example and mentor,” he continued. “I’m excited about our firm’s direction as we continue to engineer the future of infrastructure and improve the communities we serve. In so doing, I’m privileged to work with some of the finest professionals in the industry.” Hand said he can think of no one better than Stump to lead Volkert into its second century of business “Jerry’s outstanding performance as President and Chief Operating Officer has helped our firm achieve growth that is virtually unprecedented in our industry,” added Hand. “In 2017 he received the Chairman’s Award, Volkert’s highest recognition of leadership. I can think of no one better suited to lead this firm into its second century of business than Jerry Stump.” Volkert is a privately held company based in Mobile, Ala. Founded in 1925, it offers engineering, environmental consulting, program management, and construction services.