1. 2015 Annual Edition ALABAMA STATE
ECONOMIC REPORT
Prepared for:
Economic Development Administration
Atlanta Region
PREPARED BY:
AUBURN TECHNICAL ASSISTANCE CENTER
AUBURN UNIVERSITY, ALABAMA
(800) 446-0386
POLARIS ASSEMBLY PLANT – HUNTSVILLE GOOGLE DATA CENTER – STEVENSON
MERCEDES-BENZ ASSEMBLY PLANT – TUSCALOOSA AUSTAL ASSEMBLY PLANT – MOBILE
2. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 2
Table of Contents
Introduction...................................................................................................................................................................4
Broad Overview of State...............................................................................................................................................5
Employment by Industry, Updated September 2015................................................................................................6
Top Industries in the State by Establishments and Employees.................................................................................7
Top Industries: Economic Development Focus........................................................................................................8
Alabama Overview .....................................................................................................................................................10
About Governor Robert Bentley.............................................................................................................................10
Economic Conditions and Outlook.........................................................................................................................12
Alabama’s 2014 Comprehensive Annual Financial Report: Highlights from Most Recent State Comptrollers’
Report .................................................................................................................................................................12
Financial Highlights............................................................................................................................................13
High-Level SWOT Analysis.......................................................................................................................................14
Strengths .................................................................................................................................................................15
Automotive and Aerospace Industries................................................................................................................15
Agriculture..........................................................................................................................................................15
Business Climate.................................................................................................................................................15
Weaknesses.............................................................................................................................................................15
Poverty................................................................................................................................................................15
Reliance on Federal Government........................................................................................................................15
Opportunities ..........................................................................................................................................................15
Manufacturing.....................................................................................................................................................15
Innovation...........................................................................................................................................................15
Threats ....................................................................................................................................................................15
Alabama General Fund.......................................................................................................................................15
Federal Government ...........................................................................................................................................15
Cluster Analysis..........................................................................................................................................................16
Alabama’s Top 10 Rated Clusters ..........................................................................................................................16
Alabama Data from Harvard Business School’s Institute for Strategy and Competitiveness ................................17
Statewide Information.................................................................................................................................................18
Statewide Industry Overview..................................................................................................................................18
Statewide Agriculture .........................................................................................................................................18
Statewide Automotive.........................................................................................................................................20
Statewide Economy ............................................................................................................................................21
Statewide Healthcare ..........................................................................................................................................27
3. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 3
Statewide Infrastructure......................................................................................................................................28
Statewide Tourism..............................................................................................................................................29
Economic Regions......................................................................................................................................................31
Appalachian Region................................................................................................................................................32
Appalachia Worker Adjustment Restraining Notification Act (WARN) ...........................................................32
Appalachia Automotive......................................................................................................................................33
Appalachia Data Transfer ...................................................................................................................................34
Black Belt Region...................................................................................................................................................35
Black Belt Worker Adjustment Retraining Notification Act (WARN)..............................................................36
Black Belt Automotive .......................................................................................................................................37
Black Belt Aerospace..........................................................................................................................................39
Black Belt Agriculture........................................................................................................................................41
Black Belt IT.......................................................................................................................................................41
Coastal Region........................................................................................................................................................42
Coastal Worker Adjustment Retraining Notification Act (WARN)...................................................................42
Coastal Aerospace...............................................................................................................................................43
Coastal Chemical................................................................................................................................................44
Coastal Distribution............................................................................................................................................45
Coastal Shipbuilding...........................................................................................................................................46
Coastal Tourism..................................................................................................................................................48
North Alabama Region...........................................................................................................................................49
North Alabama Worker Adjustment Retraining Notification Act (WARN) ......................................................49
North Alabama Aerospace..................................................................................................................................51
North Alabama Construction..............................................................................................................................52
North Alabama Healthcare .................................................................................................................................53
North Alabama Manufacturing...........................................................................................................................55
North Alabama Technology................................................................................................................................58
Closing........................................................................................................................................................................60
4. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 4
Introduction
THE AUBURN TECHNICAL ASSISTANCE CENTER: Impacting Jobs, Efficiency and
Innovation Across Alabama
This report was prepared by the Auburn Technical Assistance Center, located in the College of Business at
Auburn University. Since 1976, ATAC has provided businesses, industries, and organizations with
economic, training, and technical project assistance to make them more competitive.
For more information: David Mixson, EDA University Center Program Director
334.844.3887
dmixson@auburn.edu
www.auburnworks.org
ABOUT THIS REPORT
This report is intended to represent a high-level analysis comparing relevant national statistics to those of
the State of Alabama in order to determine if our state compares favorably to national trends. We have also
created a narrative identifying strengths, weaknesses, opportunities, and threats. These classes represent
Alabama’s innovation and opportunities in manufacturing, but also the challenges with poverty and
government regulations that the state struggles with.
Information contained in this report is the result of broadly conducted research and analysis of news media
reports, economic forecasts, and various indicators produced from a number of responsible sources. These
sources include:
Business Alabama Magazine
Alabama Development Office
Economic Development Partnership of Alabama
Birmingham Business Journal
Local Print Media
Attendance at Economic Development Meetings
Numerous State and Federal Sources
The content in this report does not necessarily represent the opinions of the Economic Development
Administration, nor of Auburn University.
Special thanks to Zachary Hupy, ATAC’s Graduate Assistant and an MBA candidate for his many hours of
research and coordination in helping produce this report.
Auburn Technical Assistance Center
Raymond J. Harbert College of Business
5. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 5
Broad Overview of State
Alabama National
Population, 2014 estimate1 4,849,377 318,857,056
Population Change Since Last Census
(Last Census was 2010)
+69,641 +10,111,518
Total Non-Farm Employment2,3
1,950,500 142,288,000
Employment by Major Industry, Changes
and Top Industries
See Tables and information Below
Per Capita Personal Income Estimate for
20144
(Updated September 2015)
$37,512.00 $46,049.00
State PCI as a % National PCI 81.5% 100.0%
24 Month Unemployment Rate5
(period ending September 2015)
6.55% 5.96%
Unemployment Rate6,7
(September 2015 Estimate)
6.0% 5.1%
Educational Attainment, Age 25 and above
with high school or above8
83.1% 86.0%
Workforce Percentage in Durable Goods
Producing Industries9,10
(September 2015 Estimate)
34.5% 6.1%
Workforce Percentage in Non-Durable
Goods Producing Industries
(September 2015 Estimates)
65.5% 93.9%
Median Household Income (2009-2013) $43,253.00 $53,046.00
1
US Census Bureau
2
BLS NonFarm Employment - Alabama
3
BLS NonFarm Employment - US
4
Bureau of Economic Analysis
5
StatsAmerica - 24 month Unemployment
6
Governor’s Press Release
7
US BLS Unemployment - US
8
US Census Bureau – Alabama QuickFacts
9
BLS One Screen Search - Alabama
10
BLS One Screen Search - US
6. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 6
Employment by Industry, Updated September 2015
CES Not Seasonally
Adjusted Employment
in September 2015
NAICS based data by
place of work11
Employment
Percent
Distribution
State Rank
(Private
Employment
Compared to Total
Employment)
% Change
since
September
2014
State Rank
(Total Nonfarm
Employment Change
since July 2014)
Total Non-Farm 1,958,800 100.0% - 1.5% 23
Total Private 1,578,800 80.6% 44 1.6% 24
Goods Producing 349,100 17.8% 7 0.7% 32
Service Providing 1,609,700 82.2% 45 1.7% 16
Private Service
Providing
1,229,700 62.8% 47 1.9% 20
Natural Resources and
Mining
10,500 0.5% 19 -11.0% 37
Construction 85,400 4.4% 24 5.4% 17
Manufacturing 253,200 12.9% 5 -0.3% 33
Trade, Transportation,
and Utilities
375,400 19.2% 21 0.8% 31
Information 21,900 1.1% 47 0.9% 19
Financial Activities 96,800 4.9% 33 2.4% 16
Professional and
Business Services
229,000 11.7% 33 1.7% 34
Educational and
Health Services
231,800 11.8% 48 2.7% 17
Leisure and Hospitality 193,600 9.9% 34 3.5% 17
Other Services 81,200 4.1% 13 1.4% 22
Government 380,000 19.4% 8 0.9% 13
11
Stats America – Alabama Workforce Tables
7. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 7
Top Industries in the State by Establishments and Employees
Annual Industry Distribution of
Jobs and Avg. Wage in 2014
(NAICS)12
Establishments Jobs
Percent
Distribution
Annual
Average
Wage per Job
State Rank
(Average Wage
Per Job 2014)
Total Covered Employment
and Wages
117,452 1,863,561 100.0% $43,287 35
Private 111,159 1,504,320 80.7% $42,359 38
Agriculture, Forestry, Hunting 1,411 11,742 0.6% $37,073 7
Mining 342 7,569 0.4% $80,887 15
Construction 9,123 79,856 4.3% $47,826 37
Manufacturing 5,017 252,821 13.6% $52,879 44
Wholesale Trade 9,165 73,075 3.9% $59,960 37
Retail Trade 18,345 228,570 12.3% $25,940 39
Transportation, Warehousing 4,067 67,911 3.6% $43,575 38
Utilities 750 23,462 1.3% $78,633 37
Information 1,740 22,797 1.2% $52,936 37
Finance and Insurance 7,892 70,468 3.8% $67,320 29
Real Estate, Rental, Leasing 4,592 21,761 1.2% $40,044 34
Professional, Technical Services 12,722 96,876 5.2% $71,702 24
Mgmt. of Companies,
Enterprises
1,119 15,118 0.8% $85,375 37
Administrative, Waste Services 6,031 113,893 6.1% $27,204 48
Educational Services 2,968 162,293 8.7% $41,497 31
Healthcare, Social Assistance 11,195 252,854 13.6% $44,953 31
Art, Entertainment, Recreation 1,183 19,646 1.1% $19,943 42
Accommodation and Food
Services
8,824 170,203 9.1% $14,828 43
Other Services, Exc. Public
Admin
8,915 44,851 2.4% $33,910 14
Public Administration 2,058 123,985 6.7% $52,153 26
12
Stats America – Alabama Workforce Tables
8. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 8
Top Industries: Economic Development Focus13
Aerospace
With a vibrant history in Aerospace and Defense, Alabama is home to hundreds of aerospace
related industries. Space and Defense; Aviation; and MRO (Maintenance, Repair, & Overhaul)
make up some of Alabama’s most productive sectors within the aerospace
industry. Companies like Airbus, Boeing, GE Aviation, GKN, Lockheed Martin, Northrop
Grumman, and Redstone Arsenal call Alabama home. The aerospace industry employed over
12,000 people in 2014 and exported $651 million in equipment and parts in 2014.
Automotive
The automotive industry produced nearly 1 million vehicles in 2014 (a new production record
for Alabama), exported $7.3 billion in vehicles and parts, and employs nearly 12,000 people at
the major assembly plants alone. Alabama is home to vehicle assembly plants for Mercedes-
Benz, Honda and Hyundai, and an engine assembly plant for Toyota. They are joined by
a growing list of automotive suppliers such as Johnson Controls, Kamtek, Lear, ZF Lemforder,
Topre, Gestamp, Mobis, Flex-N-Gate, Fleetwood Metals, North American Lighting and
Mando.
Chemical
The chemical industry is the 2nd
largest exporter in the state, exporting $2.4 billion worth of
products in 2013 and employs over 10,400 people. Alabama is home to chemical companies
such as Akzo Nobel, BASF, Daikin, Evonik Degussa, Huntsman, Occidental, SABIC, Solutia
and Syngenta.
Distribution
Alabama’s 6 interstates allow goods to easily be shipped to major markets domestically and
Mobile’s port allows products to be shipped to nearly 200 countries. Alabama is home to
numerous distribution companies. Home Depot, Wal-Mart, McLane, ACE, Target, C&S
Wholesale Grocers, and SYSCO are among the nationally known companies with major
distribution operations in the state.
Energy
GE, Evonik, Molded Fiber Glass, Southern Company, and Teledyne Brown have investments
in Alabama. Alabama offers exceptional access to emerging energy resources and offers strong
logistical advantages.
Food Production
Food and beverage production companies employ over 32,000 workers and exported $466
million in 2014. Alabama is home to numerous distribution companies. Home Depot, Wal-
Mart, McLane, ACE, Target, C&S Wholesale Grocers, and SYSCO are among the nationally
known companies with major distribution operations in the state.
13
Economic Development Partnership of Alabama – Key Industries
9. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 9
Forest Products
Alabama has the second largest timberland base in the United States with nearly 23 million
acres. Forest products accounted for over $1 billion exported in 2013 making it the 5th
largest
exporter in the U.S. while employing more than 25,000 people.
Information Technology
Alabama is an emerging hub for the information technology industry. Employing
approximately 15,000, Alabama’s IT companies generate over $1 billion in annual revenues
and serve such distinct industries as banking and finance, government, education, consumer
products, GIS, and utilities automation.
Metals
The metal manufacturing industry exported over $1.8 billion in 2014 and employ over 42,000
people. Alabama is home to primary metal and fabrication companies such as ArcelorMittal,
Outokumpu Stainless, Golden Dragon Precise Copper Tube, Nucor, SSAB Steel, U.S. Pipe and
U.S. Steel.
Plastics & Rubber
Alabama’s plastics and rubber products manufacturing industry had a 1.4 percent growth in
output for 2014. The plastics and rubber products industry employs nearly 15,000 people in
Alabama. Companies such as 3M, BF Goodrich, Goodyear, Webster Industries, Ansell, Rain
Bird, Rehau, and Showa Best Glove call Alabama home.
10. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 10
Alabama Overview
About Governor Robert Bentley14
Governor Robert Bentley is in his second term as Alabama’s
chief executive. He continues to be committed to creating
jobs for the people of Alabama. In 2010, he was elected the
53rd Governor of the state of Alabama on his promise to put
Alabamians back to work. When Governor Bentley took
office in 2011, the state’s unemployment rate was 9.3 percent.
Governor Bentley promised the people of Alabama he would
not accept a salary until the State reached full employment
(5.2% unemployment). To date, Governor Bentley has never
accepted a salary as Governor. Although, given the reduction
in unemployment Alabama has seen over the past four years,
he is getting closer to receiving a paycheck.
During Governor Bentley’s first four years in office, Alabama
gained more than 80,000 jobs. In addition, Governor Bentley
has recruited over 70,000 new, future jobs, many of which have yet to go online as new facilities
are being constructed. Alabama’s manufacturing sector has grown under Governor Bentley with
great gains in the automotive and aerospace industry. In July 2012, Governor Bentley announced
Airbus would forever help change Alabama’s economic landscape as it begins to assemble
commercial aircraft in Mobile. Airbus, headquartered in France, will build airplanes in Mobile
with the skill and expertise of Alabama workers. From the time ground was broken in 2013, to the
first delivery of the Airbus A320, over 3,000 Alabama workers will have had a good, well-paying
job that they and their families need.
During his first term in office, Governor Bentley led the state government to become more efficient
by cutting unnecessary redundancies and combining similar state agencies. Under Governor
Bentley’s leadership the state saves $1.2 billion annually.
Keeping true to his mission of job creation and retention, Governor Bentley drove efforts to keep
the Wrangler Distribution plant in Hackleburg, a small town in northwest Alabama which was
wiped out by an E-F5 tornado during the April 27 outbreak. Governor Bentley convinced
Wrangler, the town’s largest employer, to rebuild the company’s plant, serving as a cornerstone in
the rebirth of the Marion County town.
During his time in office, Governor Bentley led legislative efforts to increase incentives for new
businesses and industries, to streamline government services and reduce spending. In December
2013, Governor Bentley announced that his administration saved taxpayers one billion dollars in
just three years by right-sizing Alabama’s government.
Prior to becoming Governor, Dr. Bentley served two terms in the Alabama House of
Representatives. He represented House District 63 in Tuscaloosa. He was born and raised in Shelby
County and graduated from the University of Alabama. He was commissioned Captain in the
14
Alabama Governor’s Office
11. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 11
United States Air Force. Upon completion of his military service, he completed his residency in
Dermatology at the University of Alabama School of Medicine.
Dr. Bentley moved to Tuscaloosa in 1974 and established his own dermatology practice.
Governor Bentley currently chairs the Interstate Mining Compact Commission and the Alabama
Gulf Coast Recovery Council. He is Vice-Chair of the National Governor’s Association Economic
Development and Commerce Committee, for which he was previously the chairman. He also
served as chair of the Interstate Oil & Gas Compact Commission and the Southern States Energy
Board. He has twice been the chair of the Appalachian Regional Commission and co-chair of the
National Governor’s Association Task Force on Prescription Drug Abuse.
Governor Bentley has four sons with seven granddaughters and one grandson.
12. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 12
Economic Conditions and Outlook15
Alabama’s 2014 Comprehensive Annual Financial Report: Highlights from
Most Recent State Comptrollers’ Report
In 2014, Alabama’s economy grew at a slightly higher pace than in 2013. Consumer spending
increased moderately as Alabama’s gross domestic product (ALGDP) rose by 2.0 percent. The
State’s unemployment rate remained the same in 2014 at 6.5 percent which is slightly above
the national average of 6.2 percent. State tax revenues increased 3 percent. Sales tax receipts
were up 2 percent and income tax receipts increased 3.5 percent.
Alabama gained 33,100 jobs during 2014. Industries with significant job increases included
manufacturing, leisure and support, administrative support and waste management services,
and motor vehicles and parts dealers. While federal jobs decreased slightly, both state and local
government sectors showed gains. Other industries such as physician offices, general
merchandise stores, financial services, and wholesale trade saw considerable losses.
Manufacturing sector output rose by 3.9 percent during the period October 2013 to October
2014, with an upsurge of 10.4 percent for manufacturers of motor vehicles and parts and an
increase of 5.9 percent for machinery manufacturing during this period. Other transportation
equipment and fabricated metals also contributed to the growth in manufacturing output with
an increase of 4.9 percent and 5.3 percent, respectively. The construction sector’s output
showed some improvement in the period October 2013 to October 2014 with real output
growing by 1.8 percent as well as an increase of 4 percent in employment. Wholesale trade
grew 2.0 percent but was accompanied by a 1.3 percent decrease in employment for the period
October 2013 to October 2014. Retail output rose 1.4 percent with an employment decrease of
0.2 percent.
Alabama exports saw a slight increase from $14.4 billion in the first nine months of 2013
compared to exports of $14.6 billion during the first nine month period of 2014 according to
data from the U.S. Census Bureau. Exports to Canada, Alabama’s largest trade partner,
decreased by 3.0 percent for the first nine months of 2014. Other major export destinations for
Alabama products included Germany, Mexico, China, Japan, the United Kingdom, and Brazil.
For the first three quarters of 2014, transportation equipment exports amounted to $6.6 billion,
a 7.1 percent increase from the same period in 2013. Other major exports during the first three
quarters of 2014 were chemicals, minerals and ores, machinery, and primary metals.
Alabama’s economy is expected to expand moderately in 2015 with a 2.3 percent increase in
output. Non-agricultural employment is expected to experience a slight gain of 1.8 percent.
Manufacturing and services employers will be the major economic drivers in 2015. These
include firms in industries such as automotive manufacturing, aerospace, tourism, healthcare,
and biotechnology. However, until uncertainties about federal spending priorities, as well as
deficit reduction plans are resolved, many private contractors and government facilities
engaged in defense-related projects will be cautious in hiring and investment.
15
Alabama Comptroller’s Office
13. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 13
Financial Highlights
The State’s net position increased by $465 million during the fiscal year. The assets of the
State exceeded its liabilities at the close of the fiscal year by $24.0 billion (net position). Of
this amount, $21.1 billion was the net invested in capital assets, and $2.9 billion was
Alabama Trust Capital.
The Change in Net Position in governmental activities was $322 million.
Governmental activities have $3.5 billion in investments, $2.6 billion of which is held in
the Alabama Trust Fund.
Tax revenues increased $223 million, or 3 percent as the economy continued to improve.
Income tax revenues increased $123 million, or 3.5 percent.
Revenues and expenses increased slightly. Revenues increased $182 million, or 1 percent
while expenses increased $124 million, or 0.6 percent.
The business-type activities reported net position at year-end of $1.8 billion, an increase of
$143 million for the fiscal year. The Unemployment Compensation Trust Fund cash grew
by $92 million. The operating revenues for the State Port Authority increased by 10
percent.
The State’s total bond debt at the end of the fiscal year was $4.8 billion, a decrease of $112
million.
The State issued $104 million in new education related revenue bonds and $25 million in
transportation related revenue bonds.
Capital Assets increased $362 million to $22.3 billion, which includes $18.9 billion in
infrastructure assets.
The Alabama Trust fund balance decreased slightly by $40 million and now stands at $2.9
billion.
The Alabama Trust Fund receivable from the General Fund and the Education Trust Fund
decreased to $254 million as the Education Trust repaid $330 million.
General Fund revenues increased $10 million, while expenditures increased $66 million.
On a budgetary basis, General Fund expenditures and other uses exceeded revenues and
other sources by $2 million. However, on a GAAP (Generally Accepted Accounting
Principles) basis, General Fund revenues and other sources exceeded expenditures and
other uses by $30 million. The Budgetary Comparison Schedule in Required
Supplementary Information reconciles these amounts and lists the accounting basis
differences.
The General Fund was not prorated and the Medicaid Agency has unexpended General
Fund appropriations of $16 million to carry over to fiscal year 2014. The $93 million
balance owed the Education Trust Fund Rainy Day Account within the Alabama Trust
Fund is due in fiscal year 2015.
14. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 14
High-Level SWOT Analysis
Automotive and Aerospace
Agriculture
Business Climate
Government Regulation
Alabama General Fund
Manufacturing
Innovation
Poverty
Reliance on Federal Government
15. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 15
Strengths
Automotive and Aerospace Industries
pg. 20 - Alabama automakers built nearly 1 million cars in 2014, setting a new state record
pg. 40 - Airbus invests $600M in new Mobile A320 facility
Agriculture
pg. 18 - From poultry to pine trees, agribusiness is big business in Alabama
pg. 18 - How Alabama's $15 billion poultry industry feeds the world
Business Climate
pg. 21 - Keeping good secrets key to Alabama landing new business deals
pg. 22 - Alabama ranks high for auto manufacturing, workforce development
Weaknesses
Poverty
pg. 17 – Annual Private Wage in Alabama from 2008-2013
Reliance on Federal Government
pg. 24 - Alabama: Where we hate the federal government but sure do need them
Opportunities
Manufacturing
pg. 55 - Constellium buys out Wise Metals, boosting ability manufacture sheet aluminum
pg. 55 - Alabama adds 2,000 manufacturing jobs in building ATVs
Innovation
pg. 58 - Alabama companies working to build a ballistic missile defense
pg. 59 - Alabama developing tech to take humans to the moon
Threats
Alabama General Fund
pg. 25 – Alabama still rife with budget issues
Federal Government
pg. 23 – EPA regulations eliminating jobs
pg. 25 – Federal government cuts military budget – Fort Rucker loses 6% of employees
16. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 16
Cluster Analysis
A cluster is a regional concentration of related industries in a particular location. Clusters are a striking
feature of economies, making regions uniquely competitive for jobs and private investment. They consist of
companies, suppliers, and service providers, as well as government agencies and other institutions that
provide specialized training and education, information, research, and technical support.
Traded clusters are groups of related industries that serve markets beyond the region in which they are
located. They are free to choose their location of operation (unless the location of natural resources drives
where they can be) and are highly concentrated in a few regions, tending to only appear in regions that
afford specific competitive advantages. Since traded clusters compete in cross-regional markets, they are
exposed to competition from other regions.
According to the Harvard Business School’s Institute for Strategy and Competitiveness, the following
information is the most recent data provided on some of the larger traded clusters within Alabama.
Alabama’s Top 10 Rated Clusters16
2013
Employment by
Traded Cluster
2012
Employment by
Traded Cluster
Growth or
Decline from
2012 to 2013
Business Services 103,549 113,947 Decline
Distribution and Electronic Commerce 61,938 60,785 Growth
Automotive 41,156 38,408 Growth
Transportation and Logistics 25,628 23,453 Growth
Education and Knowledge Creation 23,344 24,039 Decline
Livestock Processing 22,751 22,912 Decline
Hospitality and Tourism 22,645 20,821 Growth
Insurance Services 17,195 17,704 Decline
Upstream Metal Manufacturing 16,836 15,300 Growth
Construction Products and Services 14,825 12,265 Growth
16
US Cluster Mapping – Harvard Business School
17. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 17
Alabama Data from Harvard Business School’s Institute for Strategy and
Competitiveness17
17
US Cluster Mapping – Harvard Business School
Business Services
Distribution and Electronic Commerce
Automotive
Transportation and Logistics
Education and Knowledge Creation
Livestock Processing
Hospitality and Tourism
Insurance Services
Upstream Metal Manufacturing
Construction Products and Services
Plastics
Employment
Top Clusters By Employment for 2013
18. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 18
Statewide Information
Economic events pertaining to the State of Alabama are presented below. These events have been classified
as the most important events that pertain to the entire state. More regional economic information will be
described in the Economic Regions section.
Statewide Industry Overview
Statewide Agriculture
From poultry to pine trees, agribusiness is big business in Alabama
Forestry and forest products are the state’s second largest industry next to automotive.
Forestry has a $21 billion economic impact, making up 9 percent of the state’s GDP
and 12.3 percent of all manufacturing in Alabama. Alabama is the second largest state
in pulp production and third largest in producing paper.
Additionally, forestry in Alabama has accounted
for:
$8 billion capital investment over past 20 years
An annual payroll of $2.3 billion
17 pulp and paper mills
126 lumber and plywood mills
500 secondary wood products manufacturers
producing flooring, cabinets, furniture, and other
value-added products
Forestry is the largest use of land in Alabama, with
22 million acres, or 70 percent of the state, covered
in timber. Alabama has the second largest
commercial timberland acreage in the U.S.,
growing by 1.4 million over the past three decades.
Chicken feet to Asia. Leg quarters to Cuba. How Alabama's $15 billion
poultry industry feeds the world
Every year, more than 200,000 tons of
poultry is exported out of Alabama's state
docks in Mobile. It is sent to Hong Kong,
Romania, Estonia and Latvia. Alabama
chicken makes its way to countries across
Latin America, Central America, and the
Middle East. At its peak, ports along the Gulf
Coast exported one million tons of poultry a
year from 2006 to 2008. Alabama's poultry
business is booming. In 2012, the Heart of Dixie sold more than 1 billion edible
chickens, known in the industry as broilers. That's more than twice the amount the
state sold in 1980. Today, Alabama is the second largest broiler producer in the United
States, trailing behind only Georgia.
19. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 19
Agriculture Secretary Vilsack Announces $4.9 Million in Investments for
Rural Alabama Businesses and Community Infrastructure
U.S. Agriculture Secretary Tom Vilsack announced $4.9 million in new funding for
projects that will protect public safety and health, improve water and wastewater
infrastructure and create expanded economic opportunities in rural Alabama.
"The investments that USDA is announcing in Alabama today are vital to protect
public health and safety and improve the economic well-being of the state's rural
residents," Vilsack said. "USDA is proud to work with Alabama's state and local
leaders to make these projects a reality." USDA contributed a $1,024,000 grant and a
$112,000 loan toward the project.
20. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 20
Statewide Automotive
Alabama automakers built nearly 1 million cars in 2014, setting a new
state record
The Economic Development Partnership of Alabama says Honda, Hyundai and
Mercedes-Benz combined to manufacture 997,270 vehicles in the state in 2014. That's
80,000 more vehicles than the previous high set in 2013.
Hyundai led state producers by turning out 398,851 vehicles, Honda was next with
363,419 vehicles, and Mercedes-Benz produced more than 235,000 vehicles.
The three companies have produced more than 8 million total vehicles in Alabama
since Mercedes began production in the state in 1997.
Can Alabama support an Aston Martin plant? Signs point to yes
Greg Canfield, secretary of the
Alabama Department of Commerce,
said in May, the state is well-
positioned to lure another automaker
while it continues to support the
existing industry. These comments
follow reports that automaker Aston
Martin, the maker of high-
performance sports, is considering
building a new U.S. factory in Alabama.
In Alabama, the company would be close to its industrial partner and fellow luxury
nameplate, Mercedes-Benz, as well as the local supplier network that surrounds the
German automaker's operations in Tuscaloosa County.
Aston Martin has an ambitious plan to revive the brand's fortunes and boost annual
sales to 15,000 vehicles, up from 4,000 in 2014, according to Automotive News
Europe.
A key part of that plan is the company's first crossover, called the DBX, which could
be based on the new Mercedes-Benz GLC that was recently unveiled in concept form.
The DBX is an all-electric model and part of Aston Martin's attempt to gain a wider
following with a somewhat more affordable offering.
21. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 21
Statewide Economy
Keeping good secrets is key to Alabama landing new businesses
Right now there are 43 economic development projects in the works in Madison
County alone, all of them are being handled behind the scenes and considered highly
confidential.
Keeping the details of possible big moves like the recent Remington Plant addition and
Polaris announcement secret is key to landing those big deals.
Alabama Commerce Secretary Greg Canfield says few states have a better reputation
of keeping good secrets as Alabama does.
“Companies don’t like dealing with a state they can’t trust to keep the deal under
wraps and that bodes well for us to continue to see new business development here,”
Canfield added.
Alabama City Tops For Black-Owned Businesses
African-American businesses continue to prosper and grow, ranking one Alabama
metro on the list of the best places for black-owned businesses. Montgomery ranked
second on the 2014 list compiled by NerdWallet.com. The report said the city’s
African-American population is growing faster than any other city on the list, with
nearly a third of the businesses being black-owned. The top five cities: 1st
) Columbus,
GA, 2nd
) Montgomery, 3rd
) Atlanta, 4th
) Memphis, and 5th
) Washington, DC.
Regions Bank renews $1.5 billion commitment to Alabama Economic
Development Loan
It’s a source of capital that has financed nearly $3
billion in business activities since it was launched.
Last year, Haynes Ambulance of Alabama turned to
Regions for loan pool financing to help the
company bring air ambulance service back to
Alabama’s River Region, including Montgomery
and surrounding counties.
Haynes provides air ambulance services to 10
counties around Montgomery and has airlifted hundreds of patients. The financing also
allowed the company to hire 15 additional workers.
With the financing, Haynes bought an AS350 medical helicopter. The company hired
four pilots, a mechanic, and 10 additional medical personnel.
22. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 22
Business Facilities: Alabama ranks high for auto manufacturing,
workforce development
Alabama received high marks for “Automotive Manufacturing Strength” and AIDT,
Alabama’s workforce development agency, ranked high among “Workforce Training
Leaders” in Business Facilities magazine’s annual rankings report, released this week.
Record output at Alabama’s three auto assembly plants underlined the state’s No. 2
ranking in the magazine’s “Auto Manufacturing Strength” category. Alabama and
Tennessee swapped positions in the rankings from the previous year.
Mercedes team members pose with
MBUSI’s “Job 1” GLE Coupe, a new
model being produced in Alabama.
“Alabama, this year’s No. 2, is
throwing down a marker for a
heavyweight rematch: the Crimson
Tide rolled out nearly a million
vehicles in 2014 for Mercedes, Honda
and Hyundai, with Mercedes
expanding at Tuscaloosa to introduce
a new model,” Business Facilities noted in its ranking report.
Alabama’s “world-class on-site training for advanced manufacturing,” is cited for a
No. 2 ranking among “Workforce Training Leaders.” AIDT, which has trained 600,000
Alabamians since its founding in 1971, is a division of the Alabama Department of
Commerce.
Alabama to get $2.3B in BP oil spill settlement
BP and the state of Alabama have
reached a multibillion-dollar agreement
to settle the state's lawsuit against the oil
giant. As part of the settlement,
Alabama will receive $2.3 billion from
BP. About $1.3 billion of the total will
go toward coastal restoration projects in
the state.
The other $1 billion will go to the state's
general fund over the next 18 years.
The 2010 oil spill caused considerable
damage and environmental concerns along the Gulf Coast. The settlement the oil giant
reached with Alabama is part of an overall $18.5 billion settlement to coastal states.
23. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 23
Study: Obama climate agenda will cost Alabama over 10k
manufacturing jobs
A newly released study by the
Heritage Foundation estimates
that Alabama will lose 10,718
jobs as a result of the Obama
Administration’s climate
policies. That represents a
reduction of 4.14 percent of
the state’s total number of
manufacturing jobs, making
Alabama the seventh most negatively impacted state in the country, by percentage.
For context, the massive $600 million Airbus manufacturing facility in Mobile, Ala.,
will sustain up to 1,000 jobs at full capacity. In other words, the Heritage study
predicts that President Obama’s climate policies will ultimately cost Alabama the
equivalent of losing 10 Airbus-sized manufacturing projects.
Alabama’s large coal mining industry will undoubtedly take a significant hit if the
administration’s proposed environmental regulations continue to be implemented, but
the Heritage study paints an even bleaker picture by noting the subsequent impact on
manufacturers.
24. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 24
Alabama: Where we hate the federal government but sure do need
them
You'd be hard-pressed to find someone in Alabama who was all fired-up about the
federal government. Still, as a Tax Foundation study recently showed, as much as the
state's residents say they don't like the government, they sure do depend on it.
The foundation looked at 2013 data to determine which states relied most on federal
aid. Mississippi came in at the top of the list, with 42.9 percent of its total state general
revenues obtained from the federal government. Also on the high end are Louisiana
(41.9 percent), Tennessee (39.5 percent), South Dakota (39.0 percent), and Missouri
(38.2 percent).
Alabama's dependence on the federal government was 9th
highest in the country, with
36.1 percent of revenues coming from Uncle Sam's coffers.
25. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 25
Alabama still rife with budget issues
Alabama is only one of a handful of states that work out of two budgets. We have a
General Fund budget and a separate Education Budget. Our General Fund is where the
severe problem rests. The reason is that the General Fund gets none of the growth taxes
so its revenue has remained the same for decades.
In the meantime, the Education Budget has passed. It glided through both houses with
minimum strife. The almost $6 billion Education Budget increases funding for
textbooks by $3 million. It also includes a $10 million increase for the state's pre-
kindergarten program. Colleges and universities are essentially level funded.
The Education Budget does not provide money for teacher pay raises or an increase in
funding for their health insurance. This essentially means that teachers will probably
see a cut in compensation in the next fiscal year under this Republican budget.
The crisis in the General Fund has been formulating for over a decade. Our current
Republican governor and Legislature did not create the problems, they inherited them.
However, they have done very little to resolve the dilemma.
Alabama’s unemployment rate drops below 6%; here’s a map detailing
each county (Chart shown on next page)
Alabama’s preliminary, seasonally-adjusted October unemployment rate is 5.9%, down
from September’s rate of 6.0%, and below October 2014’s rate of 6.2%, according to
data released by the Department of Labor.
“More jobs are being created, Alabama’s unemployment rate continues to drops and
our economy is growing,” Governor Robert Bentley said in a statement. “The wage
and salary employment is at its highest level for the year. It has not been this high in
almost seven years. We are one step closer to full employment (5.2%), and my effort to
create jobs will continue until every Alabamian who wants a job has an opportunity to
have one.”
27. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 27
Statewide Healthcare
Three Alabama hospitals highly ranked by U.S. News and World Report
U.S. News and World Report honored three Alabama medical centers in its annual list
of best acute care hospitals.
The nationally-ranked University of Alabama Hospital at Birmingham received top
honors in the state, followed by Huntsville Hospital and Decatur Morgan Hospital,
which are both regionally ranked.
UAB Hospital is nationally ranked in six adult specialties: Rheumatology, Neurology
and Neurosurgery, Nephrology, Gynecology, Orthopedics and Urology. It's also the
biggest Alabama hospital on the list with more than 1,000 beds.
Huntsville Hospital was ranked as high-performing in three areas: The treatment of
Chronic Obstructive Pulmonary Disease, heart failure and heart bypass surgery. That
hospital has 835 beds.
Decatur Morgan Hospital also serves North Alabama, but is significantly smaller than
the other hospitals on the list, with just 132 beds. The hospital has high ratings for its
specialties of dealing with heart failure and Chronic Obstructive Pulmonary Disease.
28. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 28
Statewide Infrastructure
AT&T, after investing $1.3 billion into Alabama, pushing 'fiber-ready'
initiative for business parks
AT&T invested $1.3 billion into Alabama from
2012-2014, an amount underscored by its recent
public push to label industrial and business parks
as "fiber-ready."
AT&T Alabama continues to investments in the
state making more residential areas "fiber-ready."
A Mobile County Commissioner said he hoped
the designation will attract more high-speed
Internet companies to Mobile. AT&T bringing fiber to Mobile would mean that the
city can market to more high-speed Internet companies.
CUTS HIT HOME: Military population in Alabama will dwindle as
Defense budget is trimmed
The United States Department of the Army announced Thursday its nationwide
reduction of 40,000 troops by 2017 will include trimming its force at Fort Rucker by
186 soldiers.
“A six percent reduction at Fort Rucker is not nearly as devastating as the 40 percent
cut some had projected,” said U.S. Rep. Martha Roby, who represents the
congressional district in which Fort Rucker is located. “And, as of right now, this
won’t affect the aviation student load. Those are both positives. However, we don’t
need to be cutting our force at all. We need to be growing and making sure our military
has what it needs to meet global threats.”
29. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 29
Statewide Tourism
Four Alabama hotels among top Marriott, Renaissance golf resorts in
North America for 2014
Four hotels on Alabama's Robert Trent
Jones Golf Trail are among the top five
Marriott or Renaissance golf resorts in
North America when it comes to
satisfaction with the golf amenities, a
recent survey conducted for Marriott
shows.
"Having four of the top five Marriott or
Renaissance hotels in North America is
remarkable and the result of a great team
of hard workers," stated the president of Alabama's Robert Trent Jones Golf Trail.
Here is the complete list of the top 10 Marriott and Renaissance hotels, in terms of
guest satisfaction with golf amenities:
1. Renaissance Ross Bridge Golf Resort and Spa, Hoover, Ala.
2. Auburn Marriott Opelika Hotel and Conference Center at Grand National,
Opelika, Ala.
3. Sawgrass Marriott Golf Resort and Spa - Vedra Beach, Fla.
4. Montgomery Marriott Prattville Hotel and Conference Center at Capitol Hill,
Prattville, Ala.
5. Grand Hotel Marriott Resort, Golf Club and Spa - Point Clear, Ala.
6. Los Suenos Marriott Ocean and Golf Resort - Herradura, Costa Rica
7. The Vinoy Renaissance St. Petersburg Resort and Golf Club - St. Petersburg, Fla.
8. Ann Arbor Marriott Ypsilanti at Eagle Crest - Ypsilanti, Mich.
9. Marco Island Marriott Beach Resort, Golf Club and Spa - Marco Island, Fla.
10. Renaissance Indian Wells Resort & Spa - Indian Wells/Palm Springs, Calif.
Fishing is big business in Alabama
Most Alabama residents are well aware that fishing is
a major hobby in the south, but new economic data
shows just how much of an impact those anglers have
on the local economy.
Auburn University’s Dr. Rusty Wright explains that
anglers spend anywhere between $450 million to $1
billion in Alabama each year on fishing related purchases. Statistics show as much as
$3 million is spent per year at Cullman County’s Smith Lake, alone. One of the big
reasons? Alabama has a very large and unique wildlife climate.
30. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 30
Why record-setting beach tourism is elating and frustrating coastal
Alabama
According to state and coastal
Alabama tourism figures, Baldwin
County's tourism industry is
expected to reach a fifth year of
record breaking returns since the oil
spill kept tourists away. The county,
with the beach cities of Gulf Shores
and Orange Beach as the main
attractions, experienced a 4.7
increase in visitors from 5.5 million
in 2013 to 5.8 million in 2014.
Jefferson County attracted 3.1 million visitors in 2014, with Mobile County a close
third at 3 million visitors.
But with growth, comes problems. In particular, South Alabama public officials are
fueling a county-wide theme of being mostly forgotten by state officials when it comes
to road work even though Baldwin County's beaches account for nearly 40 percent of
tourism spending in Alabama. The angst is heightened every summer when tourists
flock to the state's coastal beaches, creating gridlock along major arteries such as
Interstate 10 in Mobile and Ala. 59 through south Baldwin County.
31. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 31
Economic Regions
Key economic information is categorized according to the EDA designated regions as shown on the map.
The designated regions are Appalachian (orange), Black Belt (green), Coastal (yellow), and Northern
(white).
32. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 32
Appalachian Region
County
Population
July 2014
% Pop.
Change
(from previous
year)
Employment
(Aug 2015)
Employment
Change
(from
previous
year)
Per Capita
Personal
Income (2014)
%PCPI
of US
24 Month
Employment
(Oct 2015)
DeKalb 71,065 0.24% 27,264 4.04% $29,724 65% 6.66%
Jackson 52,665 -0.53% 21,681 -9.24% $33,550 73% 7.04%
Marshall 94,636 0.07% 37,928 2.69% $31,796 69% 6.38%
Appalachia Worker Adjustment Restraining Notification Act (WARN)18
The following is a listing of plant closings or employee layoffs (dislocation events) according to the
Alabama State Dislocated Worker Unit. The listing includes ONLY those dislocation events where
notifications were submitted to the State Dislocated Worker Unit pursuant to requirements of the
Worker Adjustment Retraining Notification (WARN) Act. This listing does NOT represent a complete
listing of plant closings and/or employee layoffs having occurred in Alabama during this period.
Closing or
Layoff
Planned Starting
Date
Company City
Planned # of
Affected Employees
County
Layoff 3/13/15 Earth Link Arab 42 Marshall
Closing 3/23/15 Kennametal Grant 93 Marshall
Layoff 6/4/15 Shaw Industries Valley Head 160 DeKalb
Appalachian Top Industries and Strengths Looking Forward
Automotive
Date Transfer
18
Alabama WARN List
Appalachian Region
33. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 33
Appalachia Automotive
Automotive supplier announces the addition of nearly 100 new jobs in
Marshall County
It was a huge day for one Marshall
County city, a celebration that is
finally coming to fruition after
years of planning and dreaming.
TS Tech in Boaz had a
groundbreaking ceremony
announcing the addition of
nearly 100 new jobs, and the
construction of a new building.
TS Tech is currently Marshall
County's largest automotive supplier, employing around 650 people.
The construction will begin in the near future, and will be completed by April of next
year.
34. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 34
Appalachia Data Transfer
Google to Build $600 Million Alabama Data Center
Google announced plans to build a $600 million
data center in northeast Alabama’s Jackson
County, creating up to 100 jobs at a state-of-the-
art facility designed for efficiency and powered by
renewable energy.
The data center will act as a hub for Internet traffic,
operating in a network that keeps the Google
search engine and company products such as Gmail and YouTube up and
running for global users 24 hours a day, seven days a week.
“For more than 50 years, the Widows Creek plant has generated electricity for the
region. Now the site will be used to bring Internet services and information to people
around the world — powered by 100 percent renewable energy,” said Gary Demasi,
Director of Global Infrastructure at Google. “We see a lot of potential in redeveloping
large industrial sites like former coal plants, and we’re excited to bring a data center to
Alabama.”
Governor Robert Bentley said Google’s decision to locate its newest data center in
Alabama underscores the advantages the state can offer high-tech companies.
“Google is one of the world’s most innovative companies that just about every
Alabamian interacts with daily,” Governor Bentley said. “Google’s decision to expand
its data center network to Alabama is the start of a long-lasting state partnership that
will provide a significant boost to our state’s high-tech sector, provide good jobs for
our citizens and position the state for additional growth in this important industry.
Google will use the site’s many electric transmission lines to bring in renewable
energy to power the data center. The company will find new renewable energy
projects and work with TVA to bring the power onto the authority’s electrical
grid.
In addition, the data center will incorporate Google’s most advanced efficiency
technologies, which today allow the company to get 3.5 times the computing power
out of the same amount of energy, as compared to just five years ago.
Greg Canfield, secretary of the Alabama Department of Commerce, said data centers
produce many positive economic benefits, including well-paying jobs with highly
technical skill sets, a supplier support system, and possible infrastructure upgrades.
Google said the Alabama data center will be its 14th
globally and its first new U.S.
location since 2007. It recently expanded its data center sites in Georgia, Iowa,
Singapore and Belgium.
36. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 36
County
Population
July 2014
% Pop.
Change
(from
previous
year)
Employment
(Aug 2015)
Employment
Change (from
previous year)
Per Capita
Personal
Income
(2014)
%PCPI
of US
24 Month
Employment
(Oct 2015)
Henry 17,190 -0.20% 6,385.00 -0.76% $35,273 77% 7.23%
Houston 104,193 0.55% 41,999.00 -0.19% $37,316 81% 6.59%
Lamar 14,086 -0.82% 5,214.00 9.19% $30,143 65% 6.86%
Lee 154,255 1.68% 68,341.00 1.25% $33,064 72% 5.42%
Lowndes 10,580 -1.40% 3,453.00 1.11% $36,082 78% 12.59%
Macon 19,425 -2.00% 7,444.00 -6.21% $30,828 67% 8.82%
Marengo 20,110 -0.58% 6,840.00 -3.69% $37,235 81% 7.96%
Monroe 21,947 -1.09% 6,673.00 5.42% $30,799 67% 11.01%
Montgomery 226,189 -0.48% 98,069.00 4.22% $41,008 89% 6.71%
Perry 9,826 -1.52% 3,135.00 8.18% $29,647 64% 11.83%
Pickens 20,365 5.07% 7,049.00 -1.61% $30,233 66% 7.87%
Pike 33,389 -0.87% 13,957.00 -5.26% $35,125 76% 7.12%
Randolph 22,539 -0.55% 8,812.00 8.64% $31,626 69% 6.69%
Russell 59,608 0.30% 23,137.00 7.27% $29,080 63% 6.46%
Sumter 13,166 -1.34% 4,732.00 13.12% $31,164 68% 8.61%
Talladega 81,322 -0.02% 32,814.00 -6.13% $31,233 68% 7.38%
Tallapoosa 41,165 -0.14% 17,279.00 9.99% $35,369 77% 7.31%
Tuscaloosa 202,212 0.73% 93,037.00 3.64% $35,482 77% 5.81%
Washington 16,834 -0.05% 5,968.00 1.24% $33,496 73% 9.62%
Wilcox 11,098 -1.46% 2,400.00 -9.60% $27,815 60% 16.77%
Black Belt Worker Adjustment Retraining Notification Act (WARN)
The table below lists plant closings or employee layoffs for this region.
Closing or
Layoff
Planned Starting
Date
Company City
Planned # of Affected
Employees
County
Closing 3/7/15 CINRAM Group Tuscaloosa 100 Tuscaloosa
Layoff 3/20/15
JMC Steel Group
- ENERGEX
Thomasville 260 Clarke
Closing 5/15/15 TW Fitting NA Vance 58 Tuscaloosa
Layoff 5/15/15 Flex-N-Gate McCalla 97 Tuscaloosa
Black Belt Top Industries and Strengths Looking Forward:
Automotive
Agriculture
Aerospace
Information Technology (IT)
37. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 37
Black Belt Automotive
Alabama’s Record Year By The Numbers
2014 was a record year for Honda Manufacturing as their Lincoln facility built 361,948
Hondas and Acuras at its 3.7 million square-foot plant this year.
Here are the numbers:
144,382 Odyssey minivans
133,692 Pilot SUVs
10,015 Ridgeline pickups
73,859 Acura MDX luxury SUVs
The Lincoln facility is the only factory that makes each of the cars. More than 4,000
people work there.
Auto parts manufacturer to bring hundreds of jobs to Alexander City
A South Korea-based auto parts manufacturer announced last week that it will locate a
plant in Alexander City. Korens Inc., which primarily supplies Hyundai, Kia and
BMW, said it will bring hundreds of jobs to the area over the next few years, according
to a report from WSFA.
Officials said the company will create 200 jobs by the end of 2019 and 400 by the
end of 2021.
Korens manufactures exhaust gas recirculation (EGR) coolers, EGR tubes and various
fluid systems, including a power steering pipe and a high-pressure brake line tube for
use in the automotive industry.
Alabama-made models help Mercedes-Benz register record sales
The luxury vehicles assembled by workers at
the Mercedes-Benz plant in Tuscaloosa
County helped the German automaker set sales
records in June. On a global scale, Mercedes
sold more than 898,000 vehicles from
January to June, an all-time high and up 15
percent from the previous year's first half, the
company reported. That total includes a 25
percent improvement in sales of SUVs,
including products from the Alabama plant.
In the U.S. alone, Mercedes also registered a record-setting June, as sales grew 6
percent from a year ago to 28,044.
Alabama workers have already begun building the new GLE-Class, which will succeed
the M-Class when it goes on sale later in 2015. Mercedes is renaming the M-Class and
other SUVs to draw a closer correlation between them and similarly-sized sedans.
38. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 38
Schmidt Automotive USA L.P. to Open Production Facility in Auburn
German manufacturer Schmidt Maschinenbau GmbH announced that it has selected
Auburn as the location for its first U.S. manufacturing operation.
Starting in 2016, Schmidt USA will produce engine components including balance
shafts and gear wheels in Auburn for Mercedes-Benz and other German car
manufacturers.
“Schmidt’s decision to open a manufacturing facility in Alabama is great news because
it will result in the creation of 50 well-paying jobs and $17 million in new
investment in Auburn,” Gov. Robert Bentley said in a press release issued by the city.
“This project reflects the strength of our expanding auto sector and the capabilities of
our workforce. It also shows that Alabama is a perfect home for companies from
around the world.”
Mercedes supplier SMP to open $150 million Alabama facility, creating
650 jobs
Mercedes-Benz
supplier Samvardhana Motherson
Group plans to open a $150 million
manufacturing facility in
Tuscaloosa County, creating 650
jobs by the fourth year of
operation.
The new venture, called SMP
Automotive Systems Alabama Inc.,
will manufacture various exterior and
interior components for future models produced at the Mercedes assembly plant in
Tuscaloosa County.
Mercedes plans $1.3 billion expansion in Vance
Mercedes-Benz U.S. International
unveiled plans for the largest
industrial expansion in Tuscaloosa
County’s history — an almost $1.3
billion addition to its automotive
assembly complex here.
The German automaker will build a
third vehicle body shop covering
about 1.4 million square feet to
accommodate the demand for Mercedes' sport utility vehicles, said Jason Hoff, MBUSI
president and CEO.
When the expansion is completed, “the plant will span one mile end-to-end,” Hoff
said.
39. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 39
Black Belt Aerospace
GE Aviation readies first 3-D printed jet engine nozzle at Alabama plant
GE Aviation is turning its facility in
Auburn into the world’s first factory
for 3-D printed jet engine fuel
nozzles, landing the Alabama plant a
starring role in a technology that
promises to revolutionize aerospace
manufacturing.
GE Aviation, one of the world’s top
aircraft engine producers, announced
plans to introduce high-volume production of the fuel nozzle using additive
manufacturing in Auburn at last year’s Farnborough International Airshow. The
company said the $50 million project would make the Alabama plant the first to
mass produce 3-D printed components for the jet propulsion industry. GE
Aviation will begin 3-D printing jet engine fuel nozzles at its Auburn plant in late
2015. GE Aviation will begin 3-D printing jet engine fuel nozzles at its Auburn plant
in late 2015.
The company plans to have 10 printing machines installed
at the 300,000-square-foot facility by year’s end, a figure
that could eventually climb to as many as 50.
GE Aviation plans to 3-D print fuel nozzles for the LEAP
engine that will be used on Airbus A320 family aircraft and
other passenger jets. Since there are 19 fuel nozzles in
every LEAP engine, GE Aviation said the stage is set for
large-scale, long-term production at the Auburn plant. In
March, the company said production there will ramp up
quickly over the next five years, going from 1,000 fuel
nozzles manufactured annually to more than 40,000 by 2020.
The new 3-D printed nozzle is 25 percent
lighter and as much as five times more
durable than the current nozzle made from
20 different parts.
Employment at the Auburn plant, which
totaled 70 at the time of the Farnborough
announcement, has risen to 120 in June.
40. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 40
Auburn launches nation’s first FAA-approved unmanned aircraft flight
school
Auburn University is positioned to become a key
training center for commercial operators of unmanned
aircraft as it launches the nation’s first FAA-
authorized flight school for those piloting the aerial
systems.
Auburn’s Unmanned Aircraft Systems Flight School represents the latest chapter in the
university’s longstanding involvement in aviation, and the program is getting started at
a time when commercial interest in drones, as they’re often called, is surging. The
Federal Aviation Authority approved
Auburn’s request in April. The Aviation
Center began the UAS flight school
classes to the public in July.
A number of companies have unmanned
systems projects in Alabama, including
Griffon Aerospace, Camber, Sierra
Nevada Corp. Dynetics and Lockheed
Martin, which acquired Huntsville’s Chandler May, a maker of unmanned aircraft.
Lockheed Martin to add 240 employees to Troy facility by 2020
Lockheed Martin announced it is adding
240 employees by 2020 in an expansion to its
Pike County Operations facility in Troy,
through a partnership with the state.
The expansion will help meet an increase in U.S. and international orders for
Lockheed's joint air-to-surface standoff missile and its terminal high altitude area
defense missile. The missiles will be assembled in Pike County.
The state will be pitching in $2.5 million to fund infrastructure improvements
related to job creation.
Lockheed Martin has already increased its employment level by 65 percent over the
last four years. The expansion will also create an estimated 135 construction jobs.
By 2020, the company expects that its expansion should indirectly support more
than 1,000 local jobs.
41. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 41
Black Belt Agriculture
Wayne Farms plans to begin hiring 400-500 employees in August
It was a little more than a year ago when
Wayne Farms LLC, one of Houston County’s
largest employers, announced it would cut
more than half its local workforce because of a
long-term agreement with another company.
Wayne Farm’s Dothan facility began its hiring
of an estimated 400 to 500 new production
and maintenance employees in August. The
Dothan plant currently employs about 356 workers. Operations include a slaughter
and cut-up line.
Wayne Farms announced in May its intentions to add 42,000 square feet to its existing
105,000-square-foot fresh processing facility along Ross Clark Circle.
According to the company, Wayne Farms is the sixth largest poultry producer in
the U.S., with annual sales exceeding $1.9 billion.
Opelika lands meat processing plant, will bring 175 new jobs to area
California-based Golden State Foods will build a meat-processing plant in Opelika ,
bringing approximately 175 jobs to the area to produce hamburger patties and
other ground beef products for the restaurant industry.
Based in Irvine , Calif., GSF is one of the largest diversified fast-food restaurant and
retail industry suppliers. It services more than 125,000 restaurants from its 45
locations spread across five continents. GSF is a member of the McDonald’s supply
chain with the Opelika plant responsible for production of 25 percent of meat
products for McDonald’s restaurants across the nation.
Black Belt IT
Equifax partners with Auburn on IT talent center
Equifax, a global consumer, commercial and workforce information solutions firm, in
December, announced the opening of a new information technology (IT) talent center
with Auburn University. The new IT talent center will work to help address the
company's growing global information technology needs. Equifax currently offers
services in 19 countries on four continents, but the company has a growing need
for top-tier IT professionals.
The Auburn talent center will be staffed with 40-45 full-time positions located in
space at the main terminal building of the Auburn University Regional Airport, and is
expected to expand to 150 positions within the next couple of years. Employees at
the center will focus on developing automation and global platform services for
Equifax's global operations. Auburn University has been honored as a Carnegie
Foundation University for its high research activity and programs in business, software
development, and engineering degrees.
42. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 42
Coastal Region
County Population
– July 2014
% Pop. Change
(from previous
year)
Employment
(Aug 2015)
Employment
Change (from
previous year)
Per Capita
Personal
Income (2014)
%PCPI
of US
24 Month
Employment
(Oct 2015)
Baldwin 200,111 2.39% 87,831 9.41% $39,040 85% 5.90%
Escambia 37,733 -0.42% 13,263 1.90% $30,755 67% 7.95%
Mobile 415,123 0.14% 167,989 0.15% $35,031 76% 7.53%
Coastal Worker Adjustment Retraining Notification Act (WARN)
The table below lists plant closings or employee layoffs for this region.
Closing or
Layoff
Planned Starting
Date
Company City
Planned # of
Affected Employees
County
Closing 3/31/15
NCO Financial
Systems
Mobile 57 Mobile
Closing 3/31/15
Transworld
Systems Inc.
Mobile 57 Mobile
Closing 9/27/15
Sears Holdings
Corporation
Mobile 86 Mobile
Coastal Top Industries and Strengths Going Forward
Aerospace
Chemical
Distribution
Shipbuilding
Tourism
Coastal Region
43. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 43
Coastal Aerospace
Airbus confirms June arrival of first major components for Mobile's
A320 facility
The main hangar of Airbus' A320 final
assembly line is under construction at
Mobile Aeroplex. The facility began
production this summer and will deliver its
first Mobile-assembled aircraft in the
second quarter of 2016.
Officials with the Mobile Airport Authority
have been planning for and coordinating the
aircraft components' arrival for months to
the $600 million facility nearing completion
at Mobile Aeroplex at Brookley. The facility will deliver its first Mobile-assembled
aircraft in 2016 and employ about 1,000 people when it reaches full annual
production of 40 to 50 aircraft by 2018.
Mobile-based Star Aviation plans $2.4M expansion, 50 new jobs
Mobile-based Star Aviation will soon invest $2.35 million to expand its operations at
Mobile Aeroplex at Brookley, creating as many as 50 jobs within the next two
years. The company stated that business is booming, with 20 new people hired in
the past 12 months and another 50 new hires projected within the next two years.
Star Aviation specializes in aircraft engineering, certification, manufacturing and
technical services, primarily supporting commercial passenger aircraft modifications
that consist of components needed for aftermarket systems and equipment such as on-
board Internet connectivity.
Mobile lands major supplier Hutchinson Aerospace on first day of 2015
Paris Air Show
Officials with Paris-based Hutchinson
Corp announced plans to establish an
aerospace manufacturing center of
excellence in Mobile, creating as
many as 100 jobs within the next
three years and substantial
expansion opportunities.
Hutchinson Aerospace North America
stated that logistics, quality of life,
available workforce and access to
training made Mobile an ideal location for its new facility.
44. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 44
Coastal Chemical
Bayer CropScience, Evonik Corp. investing more than $200M in Mobile
co-location project slated for 2017 completion
More than two years of speculation ended with Bayer CropScience's confirmation it
will invest more than $200 million in partnership with Evonik Corp. to construct two
chemical manufacturing units in Mobile.
The facilities will be situated at the Evonik manufacturing facility in Mobile County's
Theodore Industrial Park. Each company will be responsible for construction of one of
the units. The chemical manufacturing units will produce precursor materials for use
in the production of Liberty herbicide, a key component in Bayer's LibertyLink weed
management technology.
The units, intended to assist Monheim, Germany-based Bayer, will double its Liberty
herbicide production capacity. Production is slated to begin in mid-2017 and employ
50 personnel with average annual salaries of $75,000. The new hires will actually be
classified as Evonik employees per the co-location arrangement.
45. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 45
Coastal Distribution
Mobile's Page & Jones wins Airbus logistics contract to support A320
final assembly line
Page & Jones has been chosen to provide
assembly material and services to Airbus.
The $600 million Airbus A320 facility will
receive parts and assemblies from various
countries, and major component assemblies
such as fuselage sections, tail planes and
wings are expected to arrive in the United
States via the Port of Mobile.
Founded in 1892, Page & Jones is an
international logistics company with branch
offices at 12 ports and airports in a six-state area. Specifically, it offers U.S. Customs
clearance, export forwarding and ship agency services between ports and airports
worldwide.
FedEx Ground coming to Theodore as part of $1 million Mobile County
deal
Mobile County is set to give $1 million to a private developer to lure a FedEx Ground
to an industrial park in Theodore.
The Mobile County Commission approved the decision, which may bring 100 jobs to
the area.
The project began this summer with completion set for early 2016.
Port Authority, APM Terminals announce $40 million container facility
expansion
APM Terminals will invest $40 million to add two
more gantry cranes capable of serving the largest
modern container ships and expand its container
yard by 20 acres.
Port Authority officials said the development is
well-timed, as the state agency moves to build
the Intermodal Container Terminal Facility in the
same area, which will allow the containers to be easily transferred between rail to
ship.
The project is expected to be complete during the first quarter of 2016.
46. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 46
Coastal Shipbuilding
Austal USA christens USNS Trenton on the Mobile River, the Navy's fifth
joint high speed vessel
"Give her a nice hard whack," was the advice Craig Perciavalle, president of Austal
USA, imparted to the sponsor of the USNS Trenton. Standing at the edge of a
platform, Virginia Kamsky hurled the champagne bottle against the bow of the ship,
breaking it after a second swing.
The ceremony held at Austal's shipyard was the fifth such occasion, blessing another
one of the U.S. Navy's joint high speed vessels. Several local and state lawmakers
gathered for the ceremony at the shipbuilder's facility on the Mobile River.
Austal is currently under contract to build ten joint high speed vessels for the Navy's
Military Sealift Command, the transportation provider for the U.S. Department of
Defense. The construction of aluminum ships -- joint high speed vessel and the littoral
combat ship -- helps employ more than 4,000 people.
Navy funds two more Austal USA-built littoral combat ships
Austal USA was awarded close to $700 million to
build two more littoral combat ships according to
company officials. The Navy also provided an option
for an 11th ship that could be funded in fiscal year
2016. Lockheed Martin and shipbuilder Marinette
Marine are partnered to construct and outfit the steel-
hulled Freedom-class ships, while Austal, acting as
the prime contractor, builds the aluminum Independence-class ships along with
General Dynamics Mission Systems.
47. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 47
Mobile’s Austal shipyard cranks out second U.S. Navy ship in three
months
Austal USA’s Mobile, Alabama, shipyard, in May, launched its second U.S. Navy ship
in three months. The launch comes as the company continues to fulfill its $1.6 billion,
10-ship block buy contract with the United States government.
The 338-foot USNS Brunswick entered the water for the first time and will undergo
final outfitting and testing before sea trials and delivery to the U.S. Navy. The recently
launched ship is classified as Joint High Speed Vessel (JHSV) 6 and has an average
speed of 35 knots. Like other JHSVs, it can support rapid deployment of personnel,
equipment, and supplies, as well as a helicopter-capable flight deck.
Austal efficiency outfitting U.S. Navy's 21st-century fleet
It's Mobile's largest private employer now, and it's still growing. In fact, by the time
another expansion wraps up in March 2016, the company will have invested upward
of $380 million. Austal USA bought the first 10 acres in 1999 for $2 million. It
sprawls now on 130 acres.
One key to Austal's success is the design of its operation: Two fully commissioned
production lines working in fully covered facilities abounding with the latest
technologies. Most aluminum shipbuilders favor a keel-up fabrication process. Austal
USA takes an entirely different approach. Uncut metal enters at one end of the
production line, and modules – 85 percent complete – emerge at the far end, ready to
be assembled in one of two assembly bays.
Austal USA launched the USNS Brunswick (see above article), the sixth in a $1.6
billion, 10-ship JHSV contract. Five of its joint high-speed vessel predecessors –
Spearhead, Choctaw County, Fall River, Millinocket and Trenton – have already been
delivered. Ten more high-tech aluminum warships are currently in various stages of
construction.
48. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 48
Coastal Tourism
Downtown Mobile's historic Battle House nabs global recognition as a
'Top 500' hotel for 2015
Mobile's own Battle House Renaissance Hotel &
Spa has been named one of the "Top 500 Hotels
in the World" for 2015 by Travel + Leisure
magazine.
The general manager of the North Royal Street
gem in downtown Mobile, called the accolade an
honor for "the Battle House, the local area and
the entire state of Alabama.
The Mobile landmark, which first opened its doors in 1852, was last named to the
Travel + Leisure list in 2009, following a massive renovation. It is the only Alabama
hotel on the 2015 list.
Carnival Cruises officially returning to Alabama in 2016
Carnival Cruise Lines are officially
coming back to the Port City, Mobile
Mayor Sandy Stimpson announced in
September.
The Carnival Cruise Lines removed its
port stop from Mobile in 2011, leaving the
$26 million Alabama Cruise Terminal
inactive for the past four years. According to city officials, the cruises ported in Mobile
were netting only $1 million a year.
The city is required to deposit $800,000 a year into a promotion fund to advertise the
port. That tab is expected to be paid by parking fees, which will cost cruisers $18 per
day and are estimated to raise up to $3 million a year.
49. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 49
North Alabama Region
County
Population
July 2014
% Pop. Change
(from previous
year)
Employment
(Aug 2015)
Employment
Change (from
previous year)
Per Capita
Personal
Income (2014)
%PCPI
of US
24 Month
Employment
(Oct 2015)
Blount 57,719 0.00% 23,487 -5.19% $31,464 68% 5.92%
Calhoun 115,916 -0.54% 43,185 -4.18% $32,753 71% 7.69%
Cherokee 26,037 -0.30% 10,850 0.00% $32,034 70% 5.76%
Cleburne 15,080 0.42% 5,556 -5.72% $30,954 67% 6.52%
Colbert 54,543 0.08% 21,439 -7.15% $34,616 75% 8.13%
Cullman 81,289 0.63% 34,416 -5.74% $35,548 77% 5.87%
Etowah 103,531 -0.41% 40,539 -2.97% $33,374 72% 6.75%
Franklin 31,601 0.19% 12,474 5.25% $30,509 66% 7.40%
Jefferson 660,793 0.24% 294,525 3.25% $48,582 106% 6.14%
Lauderdale 93,096 0.35% 39,194 -5.21% $33,933 74% 7.11%
Limestone 90,787 2.10% 36,696 -4.78% $37,435 81% 5.90%
Madison 350,299 0.93% 158,920 -2.26% $44,517 97% 5.96%
Marion 30,271 -0.11% 11,290 9.35% $28,783 63% 7.77%
Morgan 119,607 -0.02% 51,871 -0.48% $35,188 76% 6.37%
Shelby 206,655 1.20% 102,112 1.36% $45,879 100% 4.41%
St. Clair 86,697 0.53% 36,524 2.11% $32,737 71% 5.63%
Walker 65,471 -0.59% 24,201 -3.85% $37,085 81% 7.48%
Winston 24,150 -0.15% 8,873 5.83% $29,657 64% 8.49%
North Alabama Worker Adjustment Retraining Notification Act (WARN)
The table below lists plant closings or employee layoffs for this region.
North Alabama Region
50. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 50
Closing or
Layoff
Planned
Starting
Date
Company City
Planned # of
Affected
Employees
County
Layoff 1/31/15 Hexpol Muscle Shoals 61 Colbert
Closing 3/29/15 US Steel Fairfield 1923 Jefferson
Layoff 3/31/15 Earth Link Anniston 68 Calhoun
Layoff 3/31/15
Cahaba Government Benefit
Administrators
Birmingham 131 Jefferson
Layoff 4/3/15 Fairfield Southern Company Fairfield 85 Jefferson
North Alabama Top Industries and Strengths Looking Forward
Aerospace
Construction
Healthcare
Manufacturing
Technology
51. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 51
North Alabama Aerospace
Boeing celebrates launch of new $6M research and tech center in
Huntsville
The Boeing Research & Technology (BR&T)-Alabama center officially opened as a
collaborative hub spanning 80,000-square-feet at Redstone Gateway and Jetplex
Industrial Park. The June celebration was held in the new Center for Applied
Simulation and Analytics (CASA), a 7,000-square-foot facility that employs about
50.
The research center includes metals and fracture technology, chemical technology and
several new or increased labs, such as radio frequency systems, advanced systems
integration, vehicle management systems integration, composites lab and advanced
electromechanical technologies.
Announced in December 2013, the research center represents a $6 million investment
by Boeing. Boeing, which has 2,650 current employees and 2,610 retirees in
Alabama, also has research centers operating or under development in Missouri,
California, Washington and South Carolina. The company first established a presence
in Alabama in 1962 to support new space programs.
GE Aviation plans Alabama materials factories in $200 million project
GE Aviation will create adjacent factories in Huntsville to mass-produce silicon
carbide materials for ultra-lightweight components that are poised to revolutionize how
jet engines are manufactured.
Ohio-based GE Aviation announced the $200 million project for the factories at the
Alabama State Capitol in Montgomery in late October. The two manufacturing
centers are expected to employ up to 300 people when fully operational.
Construction of the plants is expected to begin in mid-2016, with full completion by
the first half of 2018. Production will begin later that year. GE is now assembling the
technical team that will transfer to the Huntsville operation. It will begin hiring hourly
workers late next year.
52. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 52
North Alabama Construction
Birmingham's Brasfield & Gorrie finishes 10-story, 345,000 square-foot
tower
A Birmingham general contractor
recently finished a 10-story patient
tower for an Orlando hospital that was
part of a $297 million redesign and
renovation.
Brasfield & Gorrie completed
construction on the Orlando Regional
Medical Center tower in October 2011.
The 345,000-square feet tower can hold
245 beds. There are 3,000 tons of reinforcing steel used in the structure and
approximately 400,000 bricks.
The building's curve was built to symbolize water's waves, according to a press release.
The architectural firm was HKS Architects, Inc.
In 2014, Brasfield & Gorrie completed construction projects at hospitals in North
Carolina and Virginia.
Birmingham's Brasfield & Gorrie named third best healthcare
contractor nationwide
Birmingham construction
firm Brasfield & Gorrie was
named the third healthcare
general contractors in the country
by Modern Healthcare magazine.
The ranking was based on 2014
revenues. The company had $1.38
billion in revenues for completed
healthcare construction projects,
which was up 36 percent from the
previous year.
Brasfield & Gorrie built more than 4.1 million square feet of healthcare projects. The
healthcare sector is 41 percent of the company's work.
53. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 53
North Alabama Healthcare
Medical device firm to create 44 Florence jobs in five years
A new local medical device production company that plans to create 44 jobs stands to
receive up to $110,000 in local economic-incentive funds.
Elite-Medical LLC will receive the money from the Shoals Economic Development
Fund if it provides the jobs over five years, as part of a $6 million investment at a
Helton Drive location.
The committee, which oversees disbursement of the fund, unanimously approved
dedicating the money toward the project. Money from the fund comes from a half-cent
sales tax in Colbert and Lauderdale Counties designated for economic development.
Foresight Biosciences moving research discoveries to market
Foresight Biosciences, an associate company at the HudsonAlpha Institute for
Biotechnology, announced its enzymes and assay kits are now available to the
glycobiology and pharmaceutical research markets.
Glycosylation is the chemical process of attaching complex sugar molecules to
proteins. The increasing number of glycosylated therapeutic proteins is driving a
growing market for new products to assist in glycobiology research.
Foresight’s products can be used for infectious diseases and protein therapeutics
research. Foresight came to HudsonAlpha in 2012 to commercialize concepts to further
glycobiology research.
Oxford Pharmaceuticals closes on $1.4 million JeffMet land purchase
Oxford, England-based Oxford Pharmaceuticals has completed the purchase of land at
the Jefferson Metropolitan Lakeshore Industrial Park in Birmingham, which will be the
site of a $29 million facility. The company, which will manufacture generic drugs,
paid $1.4 million for the 23.4 acre site.
Oxford Pharmaceuticals announced in
November, 2014 it would build the facility
at JeffMet, which will bring 200 jobs
over the next decade.
Work is scheduled to be completed on the
facility during the fourth quarter of 2015.
Robins & Morton is the general
contractor for the project.
54. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 54
Southern Research lands $22M grant for HIV research
Southern Research has secured a seven-year grant of up to $22 million from the
National Institute of Allergy and Infectious Diseases for further research into a
potential cure for HIV.
The funds will be used to develop and standardize assays that quantitate latent
reservoirs of the disease, specifically the Quantitative Viral Outgrowth Assay.
Southern Research stated that this is a revolutionary area in HIV research that is
opening up new avenues for us in infectious diseases and that it supports a 24-year
legacy in HIV drug discovery and development for government and pharmaceutical
clients.
HealthSouth buys Reliant Hospital Partners for $730 million
Birmingham-headquartered HealthSouth Corp.
closed on its purchase of Reliant Hospital
Partners for $730 million.
Reliant has 11 in-patient rehab hospitals in
Texas, Massachusetts and Ohio, totaling 902
beds. Last year, Reliant had $210 million in
revenues and had an adjusted EBITDA, which
is a key profit measure, of $82 million.
In August, HealthSouth announced plans to buy Augusta, Georgia-based CareSouth for
$170 million. HealthSouth is the nation's largest provider of recovery health
services, with facilities in 33 states and Puerto Rico.
55. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 55
North Alabama Manufacturing
Constellium closes on $1.4 billion purchase of Wise Metals in Muscle
Shoals, plans $750 million investment
Wise Metals Intermediate Holdings' private
aluminum sheet production facility in Muscle
Shoals is under new ownership. Constellium
N.V. announced it has closed on a $1.4 billion
acquisition of the Colbert County company.
By acquiring Wise Metals, Constellium will have access to 450,000 metric tons of hot
mill capacity. Constellium plans to invest $750 million in the Muscle Shoals plant by
2022 to boost involvement. Wise Metals is the Shoals' largest employer with about
1,500 employees. The Muscle Shoals plant, which produces metal for cans, has a
multi-year contract with Budweiser. Wise generated approximately $1.2 billion of
revenue in 2013.
Alabama will soon have 2,000 more jobs manufacturing the world’s
best ATVs
Gov. Robert Bentley, in January,
joined state and local leaders in
Huntsville to announce Polaris
Industries has chosen Alabama to
produce off-road vehicles and create
up to 2,000 new jobs for North
Alabama.
The project is worth about $127
million. The new 600,000 square-foot facility will be located southwest of Huntsville
City Center. The 453-acre Huntsville site offers Polaris close proximity to its key
customer base in the Southeast U.S. and strong logistics network. Equipped with state-
of-the-art technologies, the plant will support several core processes including, vehicle
assembly, chassis and body painting, welding, fabrication and injection molding.
Polaris broke ground on the Huntsville facility in the first quarter of 2015 with
completion slated for early in the second quarter of 2016. Production will begin shortly
thereafter.
56. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 56
Remington's Alabama plant is running, and the first gun is ...
The Remington RM380, first gun to be made by
the company in its new Huntsville, Ala. plant, is
displayed at the 2015 NRA annual meeting in
Nasvhille, Tenn. In this picture, a Remington
employee points to the "Huntsville" engraved on
the side.
Alabama's new Remington firearms plant is up
and running, and the first gun to bear the Huntsville stamp is a pocket .380-cal. pistol
being marketed to women as well as men.
Remington’s CEO said the company's reception in Alabama has been everything it
hoped for. He stated "We're really incredibly proud to be in Huntsville. The
community has supported us incredibly. We feel so welcome there. The quality of the
workforce we've been able to recruit has been fantastic." As Remington re-locates
some of its production to Alabama, it will create 2,000 jobs over the next decade
and invest $110,000.
Busche announces 100 new jobs, CNC machining investment at
Hartselle plant
Busche's workforce in Hartselle will expand by
100 jobs through 2016.
The Indiana computer numerical control (CNC)
production machining company announced it is
increasing the number of Busche employees and
investing $22 million in new equipment to
maintain its aggressive growth plan on Thompson
Road.
Founded by CEO and President Nick Busche, Busche has more than 750 employees at
10 production facilities in Indiana and Alabama. The company specializes in the
machining of castings and forgings for the auto, agriculture and durable goods
industries.
American Steel Pipe completes $70M expansion
American Steel Pipe, a division of American Cast
Iron Pipe Co., in Birmingham, began in June 2014
and completed in July, its new 150,000-square-
foot steel pipe processing facility. The $70
million project, which is the length of three
football fields, doubles American's processing
capacity to 700,000 net tons. The facility
manufactures electric-resistance-welded steel
pipe. Only a few positions were created and filled internally due to the expansion
because the facility is nearly fully automated.
57. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 57
U.S. Steel to permanently close Fairfield blast furnace, 1,100 Alabama
workers affected
United States Steel Corporation (U.S.
Steel) announced its plans in August
to permanently close a blast furnace
as well as other operations at its
Fairfield Works location, a decision
that will affect 1,100 employees in
the Birmingham area.
U. S. Steel’s president and CEO
stated that they have made some difficult decisions over the last year as part of our
portfolio optimization and they have determined that the permanent shut-down of the
Fairfield Works blast furnace, steelmaking and most of the finishing operations is
necessary to improve the overall efficiency and cost structure of our flat-rolled
segment.
The operations of the blast furnace will not be the only aspect of the Fairfield location
terminated. Fairfield Works’ steelmaking operations, hot strip mill, pickle line, cold
mill, annealing facility, stretch and temper line and the flat-rolled finishing operations
will all be permanently closed either on or after Nov. 17 of this year.
4 millionth engine rolls off the line at Toyota’s Alabama facility
Workers at the Toyota Alabama plant
recorded a production milestone in
September – the 4 millionth engine
assembled at the Huntsville facility.
The milestone engine was produced on
the 4-cylinder line at the Alabama plant,
which also makes V6 and V8 engines.
The facility, which employs 1,300 people, is one of the global automaker’s largest
engine plants. It’s the only Toyota facility worldwide to produce all three engines
under one roof.
The total plant investment is now $864 million.
Yorozu Corp. set to invest more than $100M, create 300 jobs at new
plant
Yorozu Corp., a global Tier 1 automotive supplier headquartered in Yokohama, Japan,
announced plans to build a new state-of-the-art metal stamping plant in Jasper. The
company has pledged to invest more than $100 million to build and equip the
facility that will create 300 new jobs in Jasper.
Yorozu Corp. was founded in 1948 and has grown to include facilities in Japan, North
and South America, China and Southeast Asia. The company currently has more than
6,000 employees worldwide.
58. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 58
North Alabama Technology
Dynetics Technical Services in Huntsville wins $59.3M MITS contract
extension
Dynetics Technical Services has won a sole-source
extension modification for the $59.3 million
Marshall Space Flight Center Information
Technology Services (MITS) contract. DTS received
the contract nearly six years ago to provide IT
planning, development and support services for the
MSFC, the National Space Science and Technology Center in Huntsville, and the
Michoud Assembly Facility in New Orleans.
DTS will continue the work through January 2016, bringing the total contract
value to $393.5 million.
Verizon Wireless hiring 200 full-time workers for Huntsville call center
Northrop Grumman expanding tech workforce in Huntsville
Northrop Grumman, an American aerospace and
defense technology company, is hiring a variety of
positions, ranging from engineers and analysts to
administrators and managers. At any given time, the
Huntsville location has approximately 30 open
positions.
4 Alabama companies to work with Lockheed Martin on $784 million
contract
Four Huntsville firms will work with Lockheed Martin
on a new nine-year, $784 million contract awarded by
the Missile Defense Agency.
Lockheed Martin said it will lead a team responsible
for developing, building and testing Long Range
Discrimination Radar (LRDR) to support layered
ballistic missile defense strategy to protect the U.S. from ballistic missile attacks.
Work on the LRDR system will take place in New Jersey, Alaska, Alabama, Florida
and New York. Operational testing should begin by 2020 in Clear Air Force Station,
Alaska.
59. Auburn Technical Assistance Center – Raymond J. Harbert College of Business 59
Alabama put a man on the moon, now developing technology that
could take us to Mars
Engineers and scientists in the Huntsville area are using next-generation manufacturing
techniques and the latest advances in rocket engine technology to build cost-efficient
hardware aimed at lifting U.S. ambitions in space and safeguarding security at home.
Dynetics states that Alabama is leading in developing advanced manufacturing
techniques in low-cost, affordable, complex space systems, both in rocket engines and
the launch vehicles, and that technology is here and the company will continue to
utilize it and put it into future programs. The Huntsville team’s goal is to build low-
cost liquid-fuel rocket engines and produce them quickly in a way “that completely
breaks the cost paradigm.”
New technologies and advanced manufacturing techniques are making that possible.
The Huntsville team used additive manufacturing – also called 3-D printing – to
build a critical engine component, the gas generator injector, in just 15 days, plus a
few weeks of additional machining time.