Montgomery Business Journal – May 2012 by Montgomery Area Chamber of Commerce

Camilla W. Prince, executive director of The Volunteer And Information Center, Inc. of Montgomery

WE ALL HAVE THE POTENTIAL TO BRIGHTEN A FUTURE. This year, more than 1 million kids will drop out of high school many of them right here in the Montgomery Area. Without a diploma, these students are robbed of promise, opportunity and a bright future. But it doesnâ&#x20AC;&#x2122;t have to be that way. WVAS-FM 90.7 is part of American Graduate: Letâ&#x20AC;&#x2122;s Make It Happen, a public media initiative to address the high school dropout crisis, made possible by the Corporation for Public Broadcasting (CPB). As part of American Graduate, WVAS-FM 90.7 is bringing us together parents, educators, students, volunteers, and community and business leaders to identify local causes and solutions to the dropout crisis. Together, we can help kids stay engaged and build a stronger community. Visit www.wvasfm.org to learn more about how you can help. If we all do our part, the future will look brighter than ever.

americangraduate.org

May 2012

Contents

16 14 6 Calendar 8

The Alabama Business Confidence Index shows strong gains

Local economist Keivan Deravi says the recovery and economy are not typical

Hyundai enjoys its all-time best month and first quarter

Investor Profile: Alabama Gas Co. turns up the heat on customer service

AUM University Outreach program touches private and public sectors as well as individuals

DAS North America is coming to Montgomery

City, County officially welcome Community Newspaper Holdings Inc.

Q&A with Greg Canfield, Secretary of the Alabama Department of Commerce

Member Profile: Haroldâ&#x20AC;&#x2122;s Fine Jewelry owner Harold Bowdoin creates customers

Alabama Steel Supply celebrates 100 years

Business Buzz

Members on the Move

New Members

Ribbon Cuttings & Ground Breakings

Economic Intel

20 11 23 May 2012 Montgomery Business Journal

THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George Executive Editor

Tina McManama Managing Editor

David Zaslawsky Editorial assistanT

LaShanda Gaines Design

Copperwing Design Photographer

Robert Fouts On the cover:

Greg Canfield is the Secretary of the Alabama Department of Commerce. Advertising:

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 4, Issue 5. POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

Montgomery Business Journal May 2012

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Calendar Montgomery Area Chamber of Commerce Events

MAY PLANNING SEMINAR 7 BUSINESS 4 PM @ Small Business Resource Center

JUNE MILITARY SALUTE AT RIVERWALK STADIUM 2 Presenting Sponsor: ServPro

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door

CEO ROUNDTABLE BREAKFAST Presenting Sponsor: Alabama Steel Supply 7:30 AM @ Small Business Resource Center 600 South Court Street Free event, registration requested www.montgomerychamber.com/juneCEO

600 South Court Street, Montgomery $10 at the door

21 31

60 MINUTE COFFEE Sponsored by Alabama Artificial Limb & Orthopedic Service 8 AM @ Montgomery Area Visitor Center 300 Water Street, Montgomery Free event, exclusively for Chamber Members

7 PM @ Riverwalk Stadium 200 Coosa Street, Montgomery

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door BUSINESS AFTER HOURS Sponsored by AlleyBAR 5 PM @ AlleyBAR 166 Commerce Street, Montgomery Free event, exclusively for Chamber Members

Convention Calendar

EGGS & ISSUES WITH CONGRESSMAN MIKE ROGERS Presenting Sponsor Troy University 7:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/rogers

60 MINUTE COFFEE Sponsored by Brantwood Children’s Home 8 AM @ Brantwood Children’s Home 1309 Upper Wetumpka Road, Montgomery Free event, exclusively for Chamber Members

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door

MILITARY FAMILY APPRECIATION DAY AT THE ZOO Presenting Sponsor: Dreamland Bar-B-Que 11:00 AM @ Montgomery Zoo 2301 Coliseum Parkway, Montgomery Free with Military ID.

BUSINESS AFTER HOURS Sponsored by Hampton Inn & Suites 5 PM @ Hampton Inn & Suites 100 Commerce Street, Montgomery Free event, exclusively for Chamber Members

compiled by the Montgomery Area Chamber of Commerce Convention & Visitor Bureau

May 5/20-5/24

Montgomery IT Summit

5/31-6/3

Disabled American Veterans Summer Meeting

June

6/3-6/8

Alabama State FFA Convention

6/6-6/7

Alabama Reading Association Summer Leadership Meeting

6/6-6/8

Alabama Association of School Nurses Conference

6/23-6/29

Council for Leaders in Alabama Schools Summer Conference

Montgomery Business Journal May 2012

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Thomson Reuters, the world’s leading source for healthcare data, has now ranked Baptist Health one of the 15 Top Health Systems in America, making it the only one with that distinction in Alabama. Based on a 2012 study, the nation’s top 15 health systems: • Saved more lives and caused significantly fewer patient complications • Followed industry-recommended standards of care more closely • Ranked higher in patient safety • Released patients half a day sooner • Scored significantly better on overall patient satisfaction • Provided an overall superior level of clinical care with better patient outcomes Baptist Health physicians and staff are committed to excelling at every aspect of patient care. We're leading the way to a healthier future for central Alabama.

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Optimism Roars Back State business executives forecast strong second quarter by David Zaslawsky

The state’s business executives are firmly in agreement that the economy is getting much, much better. All six of the individual components of the Alabama Business Confidence Index (ABCI) rose from the first quarter to the second quarter and four of the six had sharp increases. Most of the individual components jumped from barely positive to moderate growth. For just the eighth time in the 42-quarter history of the ABCI, the overall index jumped a full 6 points. That is meaningful. The index is now at 56.8 and a number above 50 signals growth and more importantly, it is the highest level since the third quarter of 2007. It is also a 25-point improvement from an index low of 32 in both the first and second quarters of 2009. The Montgomery area participants are the most upbeat of the state’s four metro areas (the others are Birmingham, Huntsville and Mobile). The overall ABCI for Montgomery is nearing 60 at 58.4 with Birmingham second at 57.6. Mobile is third at 55.5 and Huntsville is at 55.0. Montgomery ranks first among the metro areas in four of the individual components: national economy (57.1);

ABCI quarterly breakdown 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: University of Alabama’s Center for Business and Economic Research

Alabama economy (62.2); industry sales (63.3); and capital expenditures (56.1). Montgomery is second to Birmingham with an index of 58.2 for industry profits. Birmingham has a 60.5 index. The following is a component-bycomponent breakdown of the ABCI, which is conducted quarterly by the University of Alabama’s Center for Business and Economic Research: National economy This component has been a drag on the ABCI, but this quarter climbed into positive territory by gaining 8.0 points from the first quarter for an index of 54.5. Almost 40 percent of the participants in the survey expect the second quarter to be better than the previous quarter and another 2 percent anticipate a much better quarter. Only 21 percent anticipate a worse quarter.

Alabama economy At 58.9 this component has the second-highest index to industry sales (61.8) and jumped 6.9 points from the first quarter. Almost half of the respondents expect the state’s economy to improve in the second quarter. Less than 15 percent are forecasting the second quarter to be worse than the previous quarter. Industry sales This component rose 6.2 points from the previous quarter and is solidly in growth mode with a 61.8 index. Close to 60 percent of survey respondents are forecasting improved sales while less than 14 percent see a decrease. The most upbeat sectors are manufacturing, wholesale trade, finance, insurance, real estate, transportation, information and utilities. Industry profits This component had the second-highest increase from the first quarter, soaring 7.3 points to an index of 57.5. That is the component’s CONTINUED ON PAGE 10

Montgomery Business Journal May 2012

May 2012 Montgomery Business Journal

The state’s business executives are firmly in agreement that the economy is getting much, much better. CONTINUED from page 8

highest index since the third quarter in 2006. Once again, the numbers are quite positive – about 46 percent expecting profits to increase in the second quarter compared with 19 percent forecasting a decrease. The wholesale trade, finance, insurance, real estate, transportation, information and utilities sectors are the most optimistic about the second quarter. The healthcare sector is the lone sector that anticipates declining profits in the second quarter.

Industry hiring The component rose 4.1 points from the first quarter to 54.1, but 57 percent of the respondents expect to see no change. About 30 percent are forecasting an increase in hiring compared with 13 percent expecting a decline. The sectors most upbeat about hiring are manufacturing, transportation, information, utilities and other services. Capital expenditures This component had the smallest increase from the first quarter, rising 3.3 points to 53.9. The index is the lowest among the six individual components and nearly three points less than the overall index. Still, the mood is upbeat with about one-third of the respondents expecting an increase in capital expenditures. That is a two-to-one difference from those expecting a decline in spending (16 percent). A little more than half expect spending to remain the same. Those sectors anticipating increased spending are manufacturing, finance, insurance, real estate, transportation, information and utilities. The healthcare sector is forecasting a reduction in second-quarter spending. •

Alabama Training Institute Y Customized training and education based on specific needs

Center for Advanced Technologies Y Information technology strategic management, consulting, mentoring and research

Center for Business & Economic Development Y Human resource solutions designed to improve performance management

Center for Demographic Research Y Expert consultation and publication of demographic and economic impact studies for records and public relations

The six divisions within Auburn Montgomery’s Outreach help companies, public agencies and individuals expand their professional knowledge and prepare for the challenges of the future. Find out how Auburn Montgomery Outreach resources can benefit your organization.

Center for Government & Public Affairs Y Research assistance to determine areas of improvement for processes and service

Division of Continuing Education Y Personal and professional development workshops and classes

Call us at 334-244-3956 or visit us on the web at www.outreach.aum.edu 10

Montgomery Business Journal May 2012

Economic

Forecast

Dr. Keivan Deravi, professor and special assistant to the Chancellor, Auburn University Montogmery.

After about 40 minutes of explaining how the economy fell off a cliff in 2008 and 2009 and is now moving at a snail’s pace, local economist Keivan Deravi had what he called a “straightforward message” for the participants at an Auburn University Montgomery Business Breakfast. “We are recovering,” Deravi said, “but this is not a typical recovery. This is not a typical economy. This is an economy that requires thinking about … what your business model is and how you are going to apply that business model.” Deravi, an economics professor at AUM and special assistant to the AUM chancellor, went on to say that the economy is under pressure from technology and its gazillion applications and globalization. “There are half a billion people with skills just like ours who will do our job at a fraction of the cost,” Deravi said. What Deravi spent 40 minutes doing after attendees had consumed grits, biscuits and gravy, eggs, sausage and bacon – and some fruit – was paint a picture of how “the magnitude of the fall was just superbly dramatic,” he said. “For the drop that we had; for the deepness of the recession we had – we cannot have a slow recovery,” he said. “We have to have a very fast recovery to make up for (losses). And that’s the problem – the speed of the recovery.” To get a feel for the depth of the recession, Deravi pointed to several scary sets of numbers: In 2006, there were 2.7 million housing starts and the projection for 2011 is 750,000 starts. The state’s Education Trust Fund was $6.8 billion for 2008 and is now a projected $5.5 billion.

Deravi: ‘Speed of the recovery’ is the problem by David Zaslawsky Paychecks have for the most part been frozen since 2007. There are still close to 13 million people unemployed; the number of long-term unemployed is staggering – nearly 5 million for six months or more and 3 million for one year or more. In 2009, Alabama lost nearly 107,000 jobs. As demoralizing as the above numbers are, Deravi pointed to a massive drop in consumer non-mortgage credit during the recession. It was such a massive nose dive, Deravi said that “this kind of dip is not a recession. This was a huge, uncharacteristic correction. It will have consequences for the next 10 years.” He spoke about a number of areas that will take years to recover, including housing and the 10-year U.S. Treasury bond moving back to its more traditional 5 percent level. It will take years for this economy to reach pre-recession levels, according to Deravi. With the recovery stuck at 2 or 3 percent growth – that is nowhere near the necessary 6 to 8 percent growth that is needed. Deravi said that usually within nine months to one year after a recession ends, the economy returns to pre-recession levels. Well, it’s 2012 and the economy is not close to pre-recession highs. “The recovery is beginning to start at a very, very slow rate,” Deravi said and he warned about some strong headwinds including Europe’s financial struggles and China’s economy slowing down. He did say that consumer spending – forecast to increase 1.9 percent this year – is showing modest growth because “we are tired of being thrifty.”

Exports have been a plus, but they too will slow because of Europe importing less. Deravi does expect to see a pickup in hiring with productivity near its limits. Overall, the best-case scenario for gross domestic product (GDP) growth in 2012 is 4 percent, according to Deravi while the worst-case scenario is -1 percent. “I cannot get more optimistic than 4 percent – it’s not in my DNA,” Deravi said. He showed some charts that reinforced a bleak picture that although unemployment is declining so is the number of people working in Alabama. The civilian labor force has shrunk by more than 40,000 people from January 2011 to January 2012. The state’s second-largest sector is state and local government with more than 300,000 employees while the services sector is close to 700,000 workers. Deravi said that government jobs are being shed across the country, which “is going to even make the matter worse.” He said the second-largest “engine for economic growth” is basically the issue. “You cannot have economic growth with austerity,” Deravi said. Although the news was gloomy, Alabama is doing much better than its Southeastern neighbors. With an unemployment rate of 7.8 percent (at press time), Alabama’s jobless rate is 2.4 percent lower than North Carolina; 2.1 percent lower than Mississippi; 1.8 percent lower than Florida; 1.5 percent lower than South Carolina; and 1.4 percent lower than Georgia. The second-lowest unemployment to Alabama is Tennessee at 8.2 percent. Kentucky is 1 percent higher than Alabama at 8.8 percent. •

May 2012 Montgomery Business Journal

Two days before the month ended, Hyundai Motor America was projecting that March would be the company’s best-ever sales month. Hyundai Motor America, the sales and marketing arm of Hyundai, which is based in Costa Mesa, California, was anticipating sales of 65,000-plus vehicles. That would be only the fourth time that the Korean automaker broke the 60,000 plateau in the United States. Actually, the estimate was on the low side. Hyundai’s March sales were less than 300 shy of the magical 70,000 plateau – 69,728. That shattered last March’s record by 13 percent. Escalating gas prices may have given Hyundai a boost with Accent, Veloster M/T, Elantra and the hybrid Sonata all getting 40 mpg on the highway.

Hyundai Shatters All-Time Monthly, First-Quarter Sales Marks by David Zaslawsky

“We expect to sell 50 percent more of our 40-mpg highway vehicles than we sold in March 2011 as customers recognized that Hyundai is the place to shop for the best selection of high mileage cars,” Dave Zuchowski, Hyundai Motor America’s executive vice president of national sales, said in a statement. His estimate was also on the low side. When all the numbers were tallied, Hyundai sold 67.5 percent more vehicles that get 40 mpg on the highway. “As Hyundai continues to offer more fuel-efficient vehicles, we are seeing more and more consumers in our showrooms, resulting in greater 40-mpg highway vehicle sales than ever before,” John Krafcik, president and CEO of Hyundai Motor America, said in a statement. The company’s best month followed its best February when 51,151 vehicles were sold, an increase of 18 percent over the same period a year ago. The Sonata and Elantra, which are both produced at Hyundai Motor Manufacturing Alabama’s plant in Montgomery, are leading the way. Sonata sales in March were the second-best ever at 23,281 and the Elantra had its fifth-best all-time month with 19,681 vehicles sold. The company’s top-two bestsellers accounted for 62 percent of March’s total sales.

Montgomery Business Journal May 2012

“Improving vehicle availability, particularly among our most fuelefficient vehicles, Sonata, Elantra, Accent and Veloster, has fueled this record growth,” Zuchowski said. Retail sales at dealerships climbed 33 percent from the previous March. Sonata and Elantra sales were up 6 percent and 8 percent, respectively from last March.

set an all-time record for firstquarter sales with 163,573 units. That’s nearly a 21,000 increase from last year when Hyundai set an all-time annual sales record of 645,691 vehicles. Sonata (55,195) and Elantra (44,401) have accounted for 61 percent of the Hyundai’s first-quarter sales. •

In addition to its best sales month by nearly 7,900 vehicles, Hyundai

Hyundai’s top months

Elantra’s top months

Mar 2012: 69,728 Mar 2011: 61,873 Apr 2011: 61,754 Aug 2009: 60,467 Jul 2011: 59,561 May 2011: 59,214 Jun 2011: 59,209 Aug 2011: 58,505 Jul 2010: 54,106 Aug 2010: 53,603

Apr 2011: 22,100 Aug 2009: 21,673 May 2011: 20,006 Jun 2011: 19,992 Mar 2012: 19,681 Mar 2011: 19,255 Jul 2010: 18,215 Aug 2010: 15,181 Jul 2011: 15,181 Aug 2011: 15,054

Sonata’s top months

First-quarter sales Last 5 years

Dec 2007: 24,872 Mar 2012: 23,281 Mar 2011: 22,894 May 2011: 22,754 Apr 2011: 21,738 Aug 2010: 21,399 May 2010: 21,195 Jul 2011: 20,884 Dec 2005: 20,853 Aug 2011: 20,682

2012: 163,573 2011: 142,620 2010: 111,509 2009: 95,854 2008: 95,338

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May 2012 Montgomery Business Journal

Investor Profile BUSINESS BUZZ (CONTINUED FROM PAGE 63)

Joe Hampton is manager of system integrity for Alabama Gas Co.

The Heat is On Alabama Gas Co. places premium on customer service by David Zaslawsky

photography by Robert Fouts

A statement of principles on the Alabama Gas Co.â&#x20AC;&#x2122;s website is the blueprint for a successful company.

Alagasco Statement of Principles: We will conduct our business and earn a profit based on ethical standards and values which recognize: > The dignity and worth of all individuals > Commitment to excellence in performance > Personal and business integrity > Courage of convictions and actions Joe Hampton, manager of system integrity for Alagasco, said, “If you think about being ethical; being dedicated; committed to your actions and convictions – you are going to be a successful company.”

Alabama Gas Co.

“I believe that each of our employees stand for that. They stand for being ethical; being honest; being up-front; and dedicated to serving our customers at any time of the day or night.”

Number of employees in Montgomery area

Hampton repeatedly refers to the premium placed on customer service and its role in helping to make the company a successful one and the largest natural gas distributor in the state with more than 430,000 customers in 200-plus cities, towns and communities. Alagasco, which is based in Birmingham, began in 1852 as the Montgomery Gas Light Co. It officially became known as Alagasco in 1948 – more than 60 years ago.

78,198

“We want every customer to be 100 percent satisfied with the services we provide,” Hampton said. “Whether that is from installing a gas dryer to fixing a leak to responding to just call of concern about our product. Our mission – our focus – is to satisfy every customer we have and hopefully through having a reliable system and safe product we will grow our company.” It is Hampton’s responsibility to ensure that Alagasco’s product is safe and the system is reliable so when a customer wants to heat their home or take a hot shower – they can. As the manager for system integrity, Hampton also purchases natural gas from transmission companies and is responsible for all those miles and miles of pipe. The company is so proactive, that Hampton said, “We don’t want a customer to have to call us and say, ‘I think I smell gas.’ If we get that call, it is an immediate response. My job is to make sure that we have the parameters in place – the processes – so customers don’t have to worry about that.” A key to the company’s success, according to Hampton, is employees. “In order to be able to satisfy our customers, we’ve got to have dedicated employees. I’ll put our employees to bat vs. any group of employees around the country because they all believe in our customers; believe in our company mission; are ethical people, who believe in serving our customers and satisfying them to the best of our ability.”

Number of customers in Tri-County Miles of pipeline

1,662

“It not only makes us one of the top companies to work (for) in the City of Montgomery and the State of Alabama, but in the country.” Some aspects of that customer service have been the assistance provided to victims of last year’s tornadoes; people struggling financially; and educating people on how to use natural gas wisely. “Our company not only came up with financial assistance for the tornado victims, we were actually in those communities hand-inhand,” Hampton said. “We had many employees volunteering their time to assist with clean-up efforts; making sure that people were fed; and helping with clothing.” He said that Alagasco has a Rebuild initiative. “There are a lot of people out there who may not have had enough insurance or no insurance at all,” Hampton said. “The last thing you want to be worrying about during those times is your money. We want to (help) not only people who were our customers prior to those storms, but people who would like to convert or change fuel and become a natural gas customer. We provided assistance to them so they could enjoy the benefits of natural gas and realize how safe that product is.” Alagasco offers several different programs to help customers during the sluggish economic recovery, including payment arrangements. The low-income home energy assistance program, a state-funded initiative, provides money for customers to heat their homes in the winter and cool their homes in the summer. On the company’s website are cost-saving tips. “It all goes back to (how) we want our customers to enjoy the benefits of natural gas, but at the same time we want to make sure that they are educated and understand in these difficult economic times they need to be as efficient as possible with the product,” Hampton said. •

May 2012 Montgomery Business Journal

Solutions Made to OrdeR AUM University Outreach touches businesses, government, non-profits, individuals by David Zaslawsky

State agencies have been told to tighten their spending the past few years because of declining revenues. Just as in the private sector, government agencies are trying to figure out how to do more with less. That’s where Auburn University Montgomery’s University Outreach comes into play.

Fouts Commercial Photography Katherine A. Jackson is vice chancellor for Auburn University Montgomery’s University Outreach & Strategic Initiatives.

When government officials are wondering how they can operate more efficiently, University Outreach will come in and perform an audit, said Katherine A. Jackson, vice chancellor for AUM’s University Outreach & Strategic Initiatives. Both the private and public sectors as well as non-profits turn to University Outreach for its expertise and resources, and with six divisions, they cover practically everything. When they don’t have the expertise on-hand, they can rely on vast resources. Jackson recalled one client needed an industrial engineer. “We don’t have one of those in Outreach or on our campus,” Jackson said. “We called Auburn (University’s) School of Engineering and said, ‘Do you have an industrial engineer?’ Now, that person is doing consulting on that project.” University Outreach utilizes resources available not only at AUM and Auburn University, but has also partnered with the University of Alabama and has brought in outside experts.

“We provide a variety of services to the community and that includes individuals; private sector businesses; and public sector,” Jackson said. “We provide services for very specific areas.” The University Outreach program, which is located in buildings from downtown Montgomery to its Center for Lifelong Learning at the Techna Center Park in East Montgomery and in between, consists of six divisions: > Alabama Training Institute > Center for Advanced Technologies > Center for Business and Economic Development > Center for Demographic Research > Center for Government and Public Affairs > Division of Continuing Education. One of the strengths of the Outreach program is that multiple divisions work together on projects because of overlapping issues. The Center for Advanced Technology may be working with a client on computer issues or strategic planning for information technology while the same company may have human resources issues that the Center for Business and Economic Development will handle or need advice on position audits. Human resources consulting is a main focus for the Center for Business, according to Jackson. The Outreach program has about 70 fulltime employees and another 12 part-time workers, but the work force balloons to 100plus to conduct all the summer programs. The organization “focuses on solutions that help companies, public agencies, and individuals expand their professional

Montgomery Business Journal May 2012

knowledge and prepare to face challenges in the future,” according to the organization’s website. It’s all about solving problems. “You tell us your problems in your agency or your business and then we look to see if we have a solution,” Jackson said. “Can we provide the services that will fix your problem? Because we offer training in a couple of different units – Continued Education and Alabama Training Institute – instead of you trying to figure out what service do I need, tell us your problem and we will try to find a solution.” With six divisions, University Outreach can handle a plethora of problems from technology solutions to research and data analysis solutions to human resources and training solutions to organizational effectiveness and performance solutions to grant writing, management and evaluation solutions to conference planning and management solutions. The Center for Business and Economic Development and the Center for Government and Public Affairs actually began more

than two decades before the University Outreach program was formed in 2000. The divisions are kept busy and that’s important because for the most part it pays for itself from the revenue generated by clients. Jackson said that employees are hired based on the number of projects. “We know if we don’t keep those (projects) up, those employees will not have a job,” she said. “That’s not usually an issue.” Last year, the Center for Government worked on 63 projects and more than two dozen projects can be worked on simultaneously by all the divisions, Jackson said. A project’s involvement may be as simple as a guest speaker or as complicated as a legal case that has lasted years and years. The Alabama Training Institute had 57 projects last year. For 2011, the Outreach program worked on 200-plus projects, including pro bono work and all divisions combined to train more than 13,000 individuals. The Advance Computer Technologies division was asked to set up an automated computer system for employee timekeeping and recordkeeping for hourly workers

at a state agency to improve efficiency. AUM has instituted that system, which will become part of the Outreach program. One of the organization’s most unique projects, according to Jackson, was working with the Department of Homeland Security and other groups on Virtual Alabama. That project, using Google Earth technology, maps school systems so a 911 dispatcher can look on a computer and tell where a fire is; where a shooter is; where students are; where chemicals are being stored, etc. University Outreach has also been working with other organizations on their plans to operate after a disaster. On the University Outreach website it talks about “deliver(ing) fresh concepts and ground-breaking programs.” Sometimes, that means training, Jackson said. “Some of it is looking at things in different ways. You have been approaching it one way in your organization for years and it’s figuring out how to approach it differently. It may be a leadership academy or executive leadership – getting people to look at things in a different way.” •

May 2012 Montgomery Business Journal

“This is an exciting time at Auburn Montgomery.” – Auburn University at Montgomery Chancellor John G. Veres

AUM will build new residence hall MONTGOMERY – Auburn University at Montgomery has been approved to build an estimated $30 million, 140-unit residence hall.

and services, this new residence hall will offer students comfortable living in a convenient location with plenty of space to study, meet and socialize.

The nearly 145,000-square-foot, fivestory facility will have 293 beds and help alleviate a housing crunch on campus. The university’s two existing residence halls have been full the past two years.

“In concert with our existing residence halls, the placement of this hall will create a residential community and outdoor common space for students that will help further enhance their quality of life. Along with the new Wellness Center opening this summer, this beautiful facility will also provide an attractive welcome to campus.”

The new residence hall will feature 148 suites divided into one-, two- and threebedroom units. There will be common areas with lounge and study spaces on each floor. A smaller, two-story commons wing will be at the southeastern end of the residence hall and will include classrooms, conference space, recreation rooms, Residence Life offices and a student lounge. “This is an exciting time at Auburn Montgomery,” AUM Chancellor John G. Veres said. “As we continue our efforts to provide first-class student facilities

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Montgomery Business Journal May 2012

The new residence hall, which is expected to be complete for the fall 2013 semester, will be on the east side of campus parallel to Taylor Road. The project’s construction manager is B.L. Harbert International and the building is designed by Williams Blackstock Architects. The Auburn Board of Trustees approved the project, which is funded from the sale of bonds as well as student room-and-board fees. •

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capi t a l the City righ is t fit Elected officials joined DAS executives at the announcement.

DAS North America feels right at home in Montgomery by David Zaslawsky

photography by Robert Fouts

With a history of successfully recruiting Korean companies, supporting the families of those Korean executives coupled with an aggressive economic development team of private and public officials it is not surprising that Montgomery attracted DAS North America Inc. to make its home here.

DAS North America looked at 80-plus sites before deciding on Montgomery although it will supply parts miles away to the Kia manufacturing plant in West Point, Georgia. It does make business sense to be a handful of miles away from your final destination and reduce transportation costs. “That is more logical and makes more sense,” said James Uhm, deputy general manager of DAS North America, which will supply automotive seat components to the Kia Motors Manufacturing Georgia plant. Those seat components enable the front seats to slide back and forth as well as recline. The company will build a permanent manufacturing plant at Montgomery Industrial Park in East Montgomery after it begins assembling parts at a temporary facility at Interstate Industrial Park in Montgomery. “This is a very big win for us because we had to compete for this site with a lot of other locations in East Alabama and Georgia,” said Carl Barranco, chairman of the Montgomery Area Committee of 100 and chairman of the economic development committee for the Montgomery Area Chamber of Commerce. “We are very appreciate of DAS putting the confidence in us because it would have been really easy to locate somewhere in East Alabama,” Montgomery Mayor Todd Strange said. “It would have been very easy for them to locate somewhere in Georgia.” Montgomery won the recruiting war and although nobody would come out and say it, city, county and Montgomery Area Chamber of Commerce took this one with their demonstrated partnerships and a little bit of help from a former Montgomery Realtor, who now works for a Birmingham firm. But more about that later. “We looked for a manufacturing plant (site) near the West Point area,” Uhm said before a news conference, announcing a $50 million investment and the eventual creation of 240 jobs. “We looked at Opelika, Auburn and LaGrange, Georgia. We started from that area and expanded out. We also looked at Columbus, Georgia. We looked at Birmingham. We even looked as far as Greenville, Alabama, just to see what’s out there for us.”

He acknowledged that “Opelika and Auburn looked very promising in the beginning.” He said that at one point LaGrange and Opelika were “probably our top two choices.” Uhm also said, “Opelika was looking like a favorite to us.” Opelika also had a temporary facility for DAS North America at a site that more closely met the company’s needs - about 100,000 square feet and less rent than the temporary, 150,000-square-foot facility at Interstate Industrial Park. So what happened? Why Montgomery? That’s where Lear Corp. Plant Manager Duk Kim comes in and Eric Higgins, a Birmingham commercial real estate professional comes in. Business is all about relationships and DAS supplies Lear and Lear is located in the Interstate Industrial Park. Kim and Uhm have known each other for about five years, play golf together and have a “very friendly business relationship,” according to Kim. Kim talked to Uhm and suggested why not look at Montgomery. “The only thing I did was point them in a different direction,” Kim said. “I don’t think it was that big of a deal. The ultimate decision was made by DAS and I had no influence on them making the decision.” The Montgomery Area Chamber of Commerce’s data about Montgomery – in Korean – was sent to DAS Korea. After reviewing the information, Kim recalled that Uhm said, ‘maybe we should look at Montgomery.’ Uhm said that Kim said “there is a good opportunity here (Montgomery).” That made quite an impression on Uhm, who said, “So we decided to pay attention to Montgomery. That’s when we found out that Montgomery has a lot more to offer.” After the news conference at the Chamber, Uhm said the quality of Montgomery’s work force was another factor in his company’s decision to locate here. He said there was a “better pool of workers.” Kim said that Uhm “knows that the Lear plant has a great work force. He knows the caliber of the Montgomery work force.” Higgins, who used to work in commercial real estate in Montgomery, called the Chamber and told Ellen McNair, vice president, Corporate Development, about a

site search for “Project Vision.” He asked the Chamber to put together a proposal that he would submit to the client. Two weeks later, Kim invited a Chamber official to have lunch and meet Uhm. It took a few days, but Chamber officials figured out that Project Vision was the recruitment of DAS North America. Relationships between automotive parts suppliers and Realtors and the Chamber were critical, but more people would get involved. The first phase of DAS North America’s project is moving into that temporary facility, where Graham Packaging Co. was once located but vacated the building after losing their primary client in Montgomery. That building is owned by Industrial Partners General Manager Nimrod T. Frazer Jr. He said that Graham Packaging was still paying on its 15-year lease although the building was vacant. Hodges Commercial Real Estate/ Warehouse + Logistics in Montgomery represented Graham Packaging to sublease the building. Oh, by the way, Paul Hodges is vice president and a shareholder of Hodges Commercial Real Estate. He, along with Frazer and Kim are all active Montgomery Area Chamber of Commerce members. Uhm said that two of the most important factors in the site selection process were proximity to the customer and plant availability “so that we could move in quickly and set up our operation quickly,” he said. Another key element was that the site for a permanent plant be near the temporary location. “My management took a long time to weigh all the options and at the end even with a longer (travel) time – Montgomery was a better candidate,” Uhm said. “When we reviewed offers and incentives here and the support – we had to go with Montgomery. We feel we made the right choice and we are excited and happy to be here.” Montgomery County Commission Chairman Elton N. Dean said, “Montgomery is proud to partner with you. If there is anything you need and I say it from the heart and I know there are a lot of things you might need – the city and the county will make sure you get it.” CONTINUED ON PAGE 22

May 2012 Montgomery Business Journal

CONTINUED from page 21

One of the reasons for moving the operations to Montgomery is reducing the number of containers bringing parts from Korea and cutting logistics and packaging expenses. Right now, DAS North America is bringing in six to seven containers a week. The company will still have to import some core components from Korea. “What this says to me is the future of the automotive industry in Montgomery, Alabama, in Central Alabama and the River Region is in good hands and will be growing,” Strange said. DAS North America is the 13th automotive supplier in Montgomery County, which combined have invested more than $478 million and created 3,400-plus jobs. Uhm is balancing several projects and programs. The first phase is assembling parts at the former Graham Packaging Co. plant and the goal was to begin that work May 1 with 60 to 70 employees. DAS North America will supply seat components beginning July 1 for the Hyundai Santa Fe, which is manufactured at the Kia plant. A couple of months after that, Uhm’s company will supply

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Montgomery Business Journal May 2012

seat components for the Kia Sorento, which is also manufactured at the Kia plant. DAS North America can produce 130,000 seat components for both the Santa Fe and Sorento. With the Kia plant and the Hyundai Motor Manufacturing Alabama plant in Montgomery producing a combined 600,000-plus vehicles a year – that translates into 1.2 million seat components (two per vehicle). As soon as assembly begins at Interstate Industrial Park, DAS North America will begin construction on a 150,000-square-foot plant at Montgomery Industrial Park with an expected completion date of 1½ to two years. Once DAS North America is at its permanent site, the company will also manufacture the parts as well as assemble them. About 200 of the company’s projected 240 employees would be involved in the manufacturing/ assembly segment, according to Uhm. The remainder will be salaried positions in management and administration. Frazer said that DAS North America will have ample room to grow on the company’s

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14-acre site at Montgomery Industrial Park. “This property is located off of I-85 and it’s to the east of town so it gives (DAS) access to go to Kia from the eastside of Montgomery. Plus, it’s a nice existing park. It was a really good fit for them.”

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Uhm is also involved with a joint venture with Johnson Control that has grown dramatically in Clanton. DAS had been working with CRH, which was bought out by Johnson Control. The joint venture supplies parts for the Hyundai Sonata and Elantra, which are produced in Montgomery at Hyundai Motor Manufacturing Alabama’s plant. •

City, County Welcome Community Newspaper Holdings Inc.

Fouts Commercial Photography Donna Barrett, center, is the president and CEO of Community Newspaper Holdings, Inc.

by David Zaslawsky

As president and CEO of Community Newspaper Holdings Inc., Donna Barrett oversees a company that serves 150 communities in 24 states. That means she travels a lot, but with corporate headquarters in Montgomery that also means that company executives spread out in the Midwest, South and East also travel – and their visits may very well wind up in Montgomery. With 80 daily newspapers, 47 non-daily newspapers and 286 specialty publications, CNHI employs about 4,000 people. “We get a lot of visitors as you would expect with most corporate offices,” Barrett said at the company’s official ribboncutting ceremony. “We have press associations. We have various partners in our digital enterprises and also our print advertising. We have visitors from The Associated Press.” The privately-owned local news media company has its 44,600-square-foot corporate office on the entire seventh floor of the RSA Dexter Avenue Building. About half of the 70 employees at the corporate office relocated from Birmingham and many of the remaining 35 employees were local hires. The company had spent more than a decade in Birmingham after a 14-month stint

in Lexington, Kentucky, where CNHI was founded in 1997. Montgomery Mayor Todd Strange recalled a meeting two years ago with Barrett. He was accompanied by Montgomery County Commission Chairman Elton N. Dean, Montgomery Public Schools Superintendent Barbara Thompson, Montgomery Area Chamber of Commerce President Randy George and Ellen McNair, senior vice president of Corporate Development for the Chamber. “This was an opportunity to get a corporate headquarters in Montgomery, Alabama,” Strange said. “We wanted to put our best foot forward. We are extremely excited and honored that you would make that decision to have the confidence in us.” Dean recalled that there were “a lot of challenges” to bring CNHI to Montgomery and those challenges were met. Barrett said, “It has been from the very beginning a very positive experience for us. I can tell you that I have never felt so welcomed.” That may be because after a company locates in the area, it is not ignored. “We do a lot to get you here,” Dean said, adding that the city and county “are always here to help you. You are now family.” • May 2012 Montgomery Business Journal

Greg Canfield was director of the Alabama Development Office, which has been renamed the Department of Commerce. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: How do you describe the Alabama Development Office (ADO)? Canfield: We just went through that process. ADO is probably best known as the commerce and economic development agency for the State of Alabama. We’re an Office of the Governor. We basically have four priorities – four tasks: The first of those is recruitment and expansion activity to recruit industry to the State of Alabama and to assist existing industry to expand in Alabama. That’s the part that most people know about. The second aspect of what we do is to develop trade relationships. ADO is responsible for developing export opportunities for businesses based in Alabama. We are measured there usually in terms of our export activity. And third, we’re responsible for through our Office of Small Business Advocacy – we have responsibility for assisting small businesses in the State of Alabama. I like to describe it that we are the agency that cuts across the silos created by other agencies to help provide access to information and resources to Alabama’s existing small industry. MBJ: Are you talking about the federal government definition of a small business being 500 or less employees?

Selling

Alabama Q&A With Greg Canfield, Secretary of the Alabama Department of Commerce photography by Robert Fouts

Canfield: We typically are concentrating on anything that the federal government concentrates on and so that happens to be 500, but practically speaking you are usually talking about in most cases companies that are under 100 employees. MBJ: What is the fourth priority? Canfield: The fourth is film and entertainment. The Alabama Film Office is a division of the Alabama Development Office. MBJ: What are your responsibilities as ADO director? Canfield: Our responsibility is to make sure that all of those four functions are executed properly to the satisfaction of the Governor of Alabama. Everything that I do boils down to one thing – job creation. At the end of the day, that’s how I’m measured – the success of the Alabama Development Office and our four operating divisions and our ability to create jobs in this state. MBJ: Are there hard goals for job creation? Canfield: There are no hard goals for that. I have hard goals for myself. MBJ: What are those? Canfield: My hard goal for myself on job creation is while I’m here as director to show a continued improvement in jobs year-overyear from the baseline we had when I first came here. We’ll measure that through project activity; the number of new projects that have come to ADO and the number of projects that we have closed; and also expansion of jobs. The number of expansion projects that come our way and how many jobs and what the capital investment is that is created by both new and expansion projects. MBJ: For exports, you can use hard numbers. Canfield: Hard, fast numbers. MBJ: Exports are really surging. Canfield: Over the past two years – we just closed out 2011 – a 44 percent improvement in export activity as measured by the value of exports of Alabama products to other countries. MBJ: We’ll get back to exports in a little bit. What is the size of the ADO staff? Canfield: About 31. MBJ: What is the annual operating budget? I do know that the Legislature (at press time) was working on the budgets.

Canfield: We typically operate on is between $3.5 million to $4.3 million, which depends on what kind of a year we’re having in the General Fund.

Top exports in 2011

MBJ: What numbers do you have for Montgomery’s 2011 performance?

Chemicals

Canfield: ADO just closed out our New & Expanding Industry Announcements report for 2011. Here are the preliminary numbers for ADO’s activity in Montgomery County: 16 projects that accounted for the creation of almost 700 jobs with a capital investment of about $237.8 million. MBJ: You’ve been in your position about 10 months, what are some important lessons that you’ve learned?

Transportation equipment

$6.1 billion

$2.3 billion Total mining

$2.2 billion Total forestry

$1.2 billion

Machinery (except electrical)

$1.2 billion

Canfield: I’ve learned the important lesson of the strength of Alabama in economic development and that is the teamwork; the importance of cutting across silos; and concentrating and focusing on a common goal. We do economic development in Alabama better than any other state when it comes to amassing our resources from amongst a variety of sources both public resources and private resources because we are not a rich state. In order to be effective, I think we had to evolve into a state whose economic development engine ran on teamwork. We do a great job of leveraging resources and cutting across silos to make things happen.

Top trading partners in 2011 (Exports only)

MBJ: How do you sell Alabama?

$716.5 million

Canfield: Alabama is an easy sell because I’m a firm believer that you sell based on reality and experience. Take for instance, direct foreign investment. You can easily say if we isolate the Montgomery market, that for Hyundai automotive this has been a great move. They have one of their most productive manufacturing facilities anywhere in the world located right here in Montgomery. They have continued to break their production record. They have continued to produce a model of a vehicle that has surpassed their original unit sales goals in the Sonata. The experience here has been a dramatically good experience. If you go a little bit farther away the prime example is Mercedes. Mercedes actually began production in 1997. From 1997, the experience for Mercedes, who had never manufactured a single automobile in the United States, chose Alabama. Since that time, they went from just

Canada

$3.3 billion China

$2.3 billion Germany

$1.9 billion Mexico

$1.7 billion Japan

Source: Department of Commerce

CONTINUED ON PAGE 27

May 2012 Montgomery Business Journal

Playing to Our Strengths: the Alabama Economic Development Alliance by David Zaslawsky In football-frenzied Alabama, playing to a team’s strengths is a commonsense approach to winning. The Alabama Economic Development Alliance (AEDA) also believes that playing to a state’s strengths is a winning formula. The organization’s five-year strategic plan concentrates on the state’s strengths, which are 11 sectors. Those sectors are: > Aerospace/defense > Automotive > Agricultural products/food production > Steel/metals > Forestry products > Chemicals > Biosciences > Information technology > Enabling technologies > Distribution/logistics > Corporate operations “We are taking all the things that we are doing well and growing from that,” Alabama Development Office Director Greg Canfield said about Accelerate Alabama, the state’s strategic economic development plan. “We chose these 11 sectors because they represented two things: Each one of these represents a core competency or a growth opportunity. As a core competency, that means we already have experience and a model of success of that sector working in the State of Alabama. We’ve got models that can be shown and held up as examples of that success. “The second is they represent growth opportunities. Every one of the 11 sectors we focused on are only those business sectors that were going to show a certain level of growth over the next 10 years.” One example of recruiting a company in the biosciences sector was Pharmavite, which manufactures Nature Made products.

Montgomery Business Journal May 2012

The company announced last fall that it would invest $74 million in building a 330,000-square-foot manufacturing facility in Opelika and hire 280 people. The new facility is expected to be operational early next year and in a press release on the company’s website states that “based on future growth (it) expects to add employees in the coming years.” It may not seem revolutionary to build economic development around a state’s strongest sectors, but it was revolutionary to create a statewide organization that featured a diverse group of players. “We have ADO, which is the Department of Commerce for the state,” Canfield said about the Alabama Economic Development Alliance. “We have EDPA (Economic Development Partnership of Alabama) that represents all the private economic development interests. We have AIDT (Alabama Industrial Development Training) – the recruitment and work force training arm for economic development. We’ve got our primary power producers who have an interest in economic development. “We’ve got the community college system. We’ve got the local economic development organizations and communities from across the state. And for the first time, the universities are at the table and we’ve expanded it to include K-12.” The alliance has been tasked with the three Rs: recruitment, retention and renewal. The renewal component is coupling the strength of research universities with entrepreneurs to develop products and businesses. “If we are going to do research in Alabama, shouldn’t we be creating jobs in Alabama from the research that is being done here and creating companies that spring from that research?” Canfield asked. “That is a great opportunity and that capitalizes on every region in the state – the strengths of every region.

Fouts Commercial Photography

“We have research universities and institutions in all four corners and the middle of the state. The renewal aspect of the three Rs is where we are really venturing into new territory for this state.” Canfield sees it as a huge advantage in job creation – this new team. By utilizing the state’s colleges and universities, courses can be added that will provide students with the necessary education and skills to develop the future work force. “This is not going to be the typical scenario that you see so often in state government, where the Legislature or governor calls for a task force to develop a strategy and you go through the process and have a nice bound (document) and everybody says, ‘Look at how much work we did.’ and you put it on the shelf only for it never to be seen again,” Canfield said. “Governor (Robert) Bentley has given us the charge that this plan will be implemented and so we are.” •

CONTINUED from page 25

manufacturing the M Class – through a series of multiple investments and expansions – they are about to introduce what will be the fourth line produced, which is the C Class – produced here in Alabama. After that, Mercedes will follow with Project Five Star, which is a yet-to-be revealed, never produced fifth line of vehicle that is not produced anywhere in the world today. When you sell Alabama, we’ve got so many examples to point to. Alabama’s workers continually rank very high with companies that have located here in terms of the work ethic, low turnover rate and the low rate of absenteeism because Alabama workers take great pride in what they do. We are really gaining that reputation. MBJ: How do you sell Montgomery to either an existing industry to expand or recruiting a new company that you feel is a good fit in Montgomery? Canfield: We partner with the local communities and ultimately location is going to be driven by the prospect. We honor that and respect that. Many times a company will say Montgomery is where the site is located that we’re interested in. We

sell Montgomery by introducing them to the people. You have a city government and a county government that have shown the ability to rally around the business community to support existing industry that is here so that they can grow. They have taken what used to be at one point in a time a fairly insular-based government and expanded their vision under the leadership that’s here today. I think they are approaching things in a much more regionalized basis, which is working to the benefit of Montgomery, Montgomery County and the surrounding counties. Everyone wins when they think more globally in terms of regionalization. Plus, you sell Montgomery on the basis of what’s happening in downtown with the reinvestment and revitalization. Arts are important and you have a great arts community here with the Shakespeare Festival and number of other festivals here. It’s a pretty easy sell. MBJ: Is project activity beginning to return to pre-recession levels? Canfield: Our project level was higher in 2011 than it was in 2010 and we’re at a fever pitch this year.

Alabama annual exports

2011: $17.9 billion 2010: $15.5 billion 2009: $12.4 billion 2008: $15.9 billion 2007: $14.4 billion 2006: $13.9 billion 2005: $10.9 billion 2004: $9.1 billion 2003: $8.3 billion 2002: $8.3 billion 2001: $7.6 billion Source: Department of Commerce

CONTINUED ON PAGE 28

May 2012 Montgomery Business Journal

CONTINUED from page 27

MBJ: Do you have some numbers? Canfield: No, I don’t share those numbers. MBJ: Please talk about the pressure of creating jobs during a slow economic recovery. How does that impact you?

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Montgomery Business Journal May 2012

Canfield: You don’t accept disappointment if you’re not willing to be under pressure. To be successful as ADO director, you have to be able to put pressure on yourself in a constructive way – the pressure to produce; the pressure to perform. You want to take that and translate it into the staff in a way that it’s positive pressure; it’s motivating pressure. That’s where you try to strike the balance. During a recession, I don’t do anything differently because I believe in a very targeted approach to what we do. The key to that is having a strategy; having targets; implementing that strategy; and pinpointing the type of industry sectors that you know that you have the ability to recruit and you can build a story around the recruitment of those industries based on success that you are seeing already. MBJ: I read where you talked about the need for new and innovative techniques in recruiting companies and helping existing companies because other states are improving their economic development incentives. What are some of those new and innovative techniques? Canfield: Alabama has always had the reputation of being very competitive with our incentives, but states are catching up. They are becoming more creative with their incentive packages. Alabama has also always had a great reputation for the recruitment and training incentives that we provide through AIDT (Alabama Industrial Development Training). AIDT consistently ranks No. 1. Other states have seen how

successful that we’ve been with that and are beginning to pattern their own programs after us. In order to maintain our success in Alabama we’ve got to keep our incentive toolbox competitive. We don’t have to have the best incentives. We need to have competitive incentives. MBJ: Does Alabama still have competitive incentives? Canfield: We do today, but that can change. We cannot afford to sit by idly and not continue to try to progress and maintain a competitive balance. If we just sit back on our laurels and past success then we will be left behind. And we cannot allow that to happen. Job creation continues to be the No. 1 focus for Alabama residents. Jobs are foremost on their mind – job security. MBJ: The competition between states for jobs has to be fierce during this slow economic recovery. There must be intense competition for jobs – to recruit and retain what you have. Canfield: That’s right. It has become increasingly competitive. I think the increase in competition is a product of the recession. MBJ: There may be a strong effort by other states to lure companies away. Canfield: The competition for high-profile projects is fierce and probably has been more fierce during the recession than at any other time. MBJ: There are trade missions planned this year to Hungary and China. I know China is fast becoming the state’s No. 2 trading partner behind Canada. Please talk about the importance of trade missions and the state’s exports. Canfield: We are always looking to improve trade relationships we have with countries. Several years, the relationship with China was hardly on the radar. Once you begin to develop relationships with some countries who have

strong demand for the products that are made in Alabama – that’s what you are trying to do – marry the countries with the products that you have. MBJ: Could China become the state’s No. 1 trading partner? Canfield: Could be. I think it’s going to be hard for any country to beat Canada as our No. 1 trade partner. China has some economic issues. Their economy is slowing down a little bit. MBJ: Why has there been such an explosion in export growth? Canfield: I think there are a number of things that caused that to occur. One of those is the quality of products made in Alabama has continually improved over time and our productivity has improved. Alabama has taken on the characteristics of being a leader in manufacturing in the Southeast. The fact that we have products being produced and manufactured in the State of Alabama means that they have got to be sold from the State of Alabama and distributed from the State of Alabama. If you look at the steel that is manufactured here; the chemicals that are manufactured here; the coal that is produced here; the cars that are produced here – all of that signals global demand. As the global economy has begun to stabilize, I think there is some pent-up demand for products and some of those products happen to be made here in Alabama. MBJ: Besides China, are you looking at the other emerging economies of Brazil, India and Russia? Canfield: Absolutely. We’re talking to countries every day. We have meetings with representatives and companies from India, Brazil. You could just about name a major country and we would have had (meetings with them). MBJ: I read where Audi, the luxury brand of Volkswagen, was

looking at building an automotive plant in 2013. Volkswagen built a plant in Chattanooga along the Alabama-Tennessee border. Is Alabama recruiting Audi and taking advantage of the great synergy with a supply chain already in existence? Canfield: That’s the rumor. MBJ: I know Volkswagen seriously considered Alabama. What about Audi locating a plant near Volkswagen just as Kia built a plant in Georgia not far from the Hyundai plant in Montgomery? Canfield: Let me answer your question this way: If a major European automotive manufacturer wanted to locate in the Southeast, Alabama is doing everything it can to be attractive to that company. There are a number of VW suppliers in the State of Alabama. The synergy is created this way: In the Southeast you’ve got an automotive crescent. We call it the OEM (original equipment manufacturer) crescent. The Southeast crescent goes from Mississippi, Alabama, Tennessee, Georgia, South Carolina and Kentucky. Within that area you could find a radius – you have more and more suppliers these days are supplying to multiple OEMs. They are not limiting themselves to one customer. The answer to the question is that OEMs find it very desirable to be located in an area like Alabama in the Southeast because of the proximity to the supply chain; the good source of high-quality labor; because we’re a right-to-work state; and because we have a low-tax load. MBJ: Is Audi expected to make an announcement next year?

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Canfield: Our understanding is that Audi has not made any official announcement regarding a project in North America, but they are continuing to evaluate their options. •

Referred for a reason.

May 2012 Montgomery Business Journal

Member Profile

Harold Bowdoin has owned Harold’s Fine Jewelry since 2002.

Unique Experience Creates Customers Harold’s Fine Jewelry celebrates 10 years by Jennifer Kornegay

photography by Robert Fouts

Harold Bowdoin, owner of Harold’s Fine Jewelry in midtown Montgomery, has turned a high-school summer job into a fulfilling and successful career. This year marks his jewelry store’s 10th anniversary.

Harold’s Fine Jewelry Year founded It all began when a 17-year-old Bowdoin happened upon an opportunity for some extra cash. He started doing deliveries for a local jewelry store and then moved into other facets of the business. He worked that first summer, then the next and continued his employment and his education in the jewelry business on weekends, holidays and summers throughout college. After graduating from the University of Alabama, he returned to Montgomery and worked at the jewelry store full time for a few years. “I enjoyed it there, but I always wanted to have my own business,” Bowdoin said. So he took the knowledge and experience he’d gained and opened Harold’s Fine Jewelry in 2002. As it was when it was first founded, Harold’s is a family business. On any given day you might find Bowdoin’s wife Julie or his mother Emily helping out at the store. With several other long-standing and prosperous jewelry stores established in the capital city, introducing one more into the market was a bit of a gamble but one that paid off, thanks in large part to Bowdoin’s reputation. “I had quite a few existing customers from the other store,” he said. “They liked me and liked doing business with me, so they came to check out the store when I opened and then they ended up buying something.” Harold’s customers are satisfied not just with the piece they buy, but with the experience, and Bowdoin believes that’s why they tell others to shop with him and often come back themselves. His secret to success, beyond carrying pretty, sparkly items people want to buy, is treating people in a way that lets them trust him. “They need to know that you aren’t just trying to sell them something,” Bowdoin said. “You build a relationship with a customer, and they keep coming back. I’m not trying to make a sale, I’m trying to create a customer.” This is particularly true in the jewelry business. “A jewelry purchase is very personal,” Bowdoin said. “People usually know they don’t know a lot about it and know they have to trust you, but they’re not sure if they can. We make them sure that they can trust us.” This commitment to customer service has added to Harold’s longevity. And business has stayed steady, even during the economic downtown, thanks to Bowdoin’s innovation. He travels to Hong Kong several times a year and buys very high-grade Japanese saltwater pearls. By purchasing them there himself, he’s able to pass along some great savings to his customers, but he also picks up some less-expensive pearls on these trips, letting Harold’s offer a diverse selection of lower-priced pearls not often found in other jewelry stores. “Pearls have become really fashionable again,” Bowdoin said. “And not just for dressy occasions. Women are wearing pearls in more casual settings now.”

2002

Employees

5, including owner Harold Bowdoin Address

3078 Zelda Road Phone number

(334) 273-0260 Other unique items found at Harold’s are the collegiate-colored pearls, strands custom dyed with colors chosen by Bowdoin to match the hues of favorite college sports teams. “They’ve been a huge hit,” he said. In the last few years, business has been so good, Harold’s needed more room. So in October 2011, Bowdoin moved his store to a new location, a former bank building on Zelda Road, just down the street from the original store site. The additional space is allowing Harold’s to expand its jewelry creation and repair services. “We’ve created an entire design center for making jewelry and have the room to bring in another jeweler for custom designs and repairs.” Currently, you’ll find Harold’s master jeweler Tim Sabo in the design center. Sabo’s been with Harold’s since 2005 but in the jewelry business for 30-plus years. “I love designing jewelry,” he said. “It is a fascinating process and now we have the ability to design something, cut out the wax, cast it, finish it and do it all here. You can walk in with an idea, and then we execute it right in this building.” In addition to the pearls and what Harold’s can make for you, the store carries some beautiful jewelry lines, all carefully chosen by Bowdoin. “I love hunting down great stuff for the store. The designers we carry are small, family-run businesses, like us, and I know them all personally, so our pieces are very unique,” he said. “We don’t usually carry the nationally advertised designers; you can get that in any jewelry store.” From the day he started, Bowdoin’s favorite part of his job has been working with his customers. “It’s fun helping them find that special something. The jewelry industry is really a happy industry,” he said. “You’re dealing with people when they are happy, and helping them with good times in their life: marriage, engagement, the arrival of a new baby, picking out a necklace for a surprise Christmas gift.” •

May 2012 Montgomery Business Journal

Stronger than Ever at

100 Alabama Steel Supply thrives with new business models by David Zaslawsky photography by Robert Fouts

Montgomery Business Journal May 2012

A company cannot survive for 100 years by standing still and Alabama Steel Supply has reinvented itself several times and continues to expand today.

That helps unlock a couple of secrets to longevity. Another factor for staying in business for 100 years is employees. “Our secret weapon is a highly specialized skill that everyone at Alabama Steel Supply is required to develop – listening,” said Jerald

Jerald Labovitz, president and owner of Alabama Steel Supply (right) talks about his company’s 100-year history while Montgomery Mayor Todd Strange looks on.

Labovitz, president and owner of Alabama Steel Supply and the third generation to run the family-operated business. “We have remained competitive by being able to maneuver in complex markets while keeping it simple for our customer,” Labovitz said. “We have excellent relationships with not only our customers, but with our vendors and we enjoy exceeding expectations.” Alabama Steel Supply remained competitive by changing its business models over the decades. On his business card it states: “A Century of Evolving Steel Related Businesses.” The company was founded by Labovitz’s grandfather in 1912 near the site of the old Montgomery Civic Center in downtown Montgomery. The original business was buying and selling hides, furs, paper, glass and metals from a horse and cart. After World War II, Labovitz’s dad stopped buying and selling hides, furs and paper and concentrated on various types of scrap metal and surplus structural steel. He was buying materials from peddler trade and industrial accounts and the company was called Montgomery Iron & Metal Co. In 1974,

the name was changed to Alabama Steel Supply and offered scrap iron and metals and salvage steel. The company changed its focus from surplus steel to general structural steel, pipe, steel building components and manufacturing steel buildings; components, metal roofing and siding in 1988. â&#x20AC;&#x153;When I came in we began moving toward manufacturing and particularly manufacturing of metal roofing and siding and thatâ&#x20AC;&#x2122;s what the focus of the business is now,â&#x20AC;? said Labovitz, who has been in the family business for about 35 years. The metal roofs and siding as well as steel panels are manufactured for industrial, commercial, agricultural and residential uses and the company also offers pre-engineered steel buildings. â&#x20AC;&#x153;If someone wants a few panels for a shed we can do that or provide up to 50,000-square-foot buildings. He is planning to complete new expansions by early summer, including moving the manufacturing of cutting steel coils and producing panels with different patterns and colors to a 30,000-square-

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foot facility that is currently empty. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be expanded so we can better serve our customers,â&#x20AC;? Labovitz said. At the same time, he will move the frame fabrication shop into the current 20,000-square-foot site where the steel coils are processed into panels. The twin moves will help grow the company and the story of Alabama Steel Supply has been one of growth for decades. The 25-acre site off of Highway 31 has been the companyâ&#x20AC;&#x2122;s home for about 40 years. When the company first moved to todayâ&#x20AC;&#x2122;s location the facility was about 5,000 square feet and that was larger than the previous site. There were five employees plus family members at the time. Now, 40 years later, there are half a dozen buildings, 100,000 square feet and 25 employees. There is a 20,000-square-foot storage shed of structural (reinforced) steel and the company features a pipe yard with thousands of tons of steel. â&#x20AC;&#x153;Our group of employees is an exceptional assembly for two reasons,â&#x20AC;? Labovitz said. â&#x20AC;&#x153;First, they take ownership of their work. And

second, they strive to make our customers satisfied with every step of their transaction.â&#x20AC;? â&#x20AC;&#x153;From the greeting a customer receives when they call our offices â&#x20AC;&#x201C; all the way to the delivery made to their business, home or jobsite â&#x20AC;&#x201C; we strive to always furnish you the results you were looking for â&#x20AC;&#x201C; and then some.â&#x20AC;? It hasnâ&#x20AC;&#x2122;t been an easy journey. The steel building market has been inconsistent, according to Labovitz â&#x20AC;&#x201C; â&#x20AC;&#x153;erratic supply and erratic demand so we must fight twice as hard not only to retain our customers, but expand our market.â&#x20AC;? He said that during the recession â&#x20AC;&#x153;there were people who dropped out of the market and people that dropped into our market that were looking for more creative ways to build in a more economical way.â&#x20AC;? The companyâ&#x20AC;&#x2122;s grounds are an instant ad for its products â&#x20AC;&#x201C; steel buildings, pole barns, not to mention a gigantic billboard. When asked if potential clients being able to see Alabama Steel Supply buildings helps business, Labovitz said, â&#x20AC;&#x153;It doesnâ&#x20AC;&#x2122;t hurt.â&#x20AC;? â&#x20AC;˘

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May 2012 Montgomery Business Journal

Member News

Business Buzz Palomar Insurance Corp. is a leading insurance brokerage, employee benefits and risk management consulting firm founded in 1954. LATTICE INN OFFERS PLAYCATION PACKAGE Rhea Ingram

Tay Knight

Karen Grace

AUM DEPARTMENT OF MANAGEMENT RECEIVES RECOGNITION FOR HR CURRICULUM

STANDARDS FOR EXCELLENCE INSTITUTE NAMES KNIGHT A LICENSED CONSULTANT

PALOMAR INSURANCE CORP. ACQUIRES MARTIN GRACE BENEFIT GROUP

MONTGOMERY – Local certified public accountant Tay Knight was a member of the 2011 Class of Standards for Excellence Licensed Consultants.

MONTGOMERY – Palomar Insurance Corp. has acquired Birmingham-based Martin Grace Benefit Group Inc.

MONTGOMERY – The Auburn Montgomery Department of Management has been recognized for successfully aligning AUM’s human resource management curriculum with the Society for Human Resource Management’s HR Curriculum Guidebook and Templates. Only 263 programs in 213 educational institutions worldwide have attained this goal. “This recognition is simply another indicator of the quality programs offered by our faculty,” said Rhea Ingram, dean of the AUM School of Business. “It says a great deal about faculty when a school continues to seek the highest possible recognitions of their programs. I tip my hat to their determination and achievements.” The news follows the recent accreditation of the school’s accounting program by the Association for the Advancement of Colleges and Schools of Business, which placed AUM in the top 1 percent of schools and colleges of business worldwide.

She completed the intensive, three-day training and is now licensed in all aspects of the Standards for Excellence program. Knight, who works for the accounting firm Warren Averett, LLC, Warren Averett Wilson Price, can begin assisting non-profits. The Standards for Excellence Institute is an initiative designed to help non-profit organizations operate more ethically and accountably. Standards for Excellence Licensed Consultants use their extensive knowledge of the multi-faceted initiative to help non-profits strengthen their governance practices and exceed the rising demand for non-profit accountability. They provide non-profit organizations with organizational assessments, consulting, training, and assistance in the application process for national Standards for Excellence certification.

Montgomery Business Journal May 2012

Martin Grace is one of the Southeast’s leading employee benefit and insurance consulting firms. The acquisition aligns with Montgomery-based Palomar Insurance’s strategy of expanding its personalized customer service, strengthening its employee benefit offerings and providing diverse alternatives to its clients. “With the acquisition of Martin Grace, we combine the commitment of experienced advisers with the newest technology and innovative resources of Palomar,” said Palomar Insurance Corp. CEO Tony Craft. “I am excited about the merger with Palomar,” said Karen Grace, CEO of Martin Grace Benefit Group. “Palomar creates an opportunity for us to continue serving our clients and create new relationships by combining our knowledge of the ever-changing employee benefit landscape.”

MONTGOMERY – The Lattice Inn is featuring a playcation package for two or more people. The two-hour package costs $5 a person and includes two hours of swimming in a saltwater pool; relaxing in a hot tub or sunbathing on one of three decks. Guests must bring their own towels. Coolers and picnic baskets are permitted, but glass beverage containers are prohibited. Wi-Fi is available at no additional cost. The Lattice Inn is located at 1414 S. Hull St. Children under the age of 19 must be accompanied by an adult. Space is limited and reservations are accepted for late morning, midday or early afternoon packages. Late afternoon and early evening packages are for adults only. For information, call (334) 2623388; or send an e-mail to info@ thelatticeinn.com or visit the website www.thelatticeinn.com. STORE ROOM FASTENERS MOVES CORPORATE HEADQUARTERS MONTGOMERY – Store Room Fasteners Inc. (SRF) announced the relocation of its corporate office and regional distribution center to 600 North Eastern Blvd. The new facility will provide for more space for continued

growth of the company’s products and services.

hose related to the transferring of non-hazardous materials.

“As we continue to add new products and services to our existing offerings, this new facility will allow us to do so in a much more efficient manner,” said Tim Wilsford, president and founder of Store Room Fasteners. “In today’s business environment, a company must be in a position to respond quickly to their customer’s needs. This facility provides us with that capability.”

Store Room Fasteners Inc. has other locations in Opelika, Selma, LaGrange, Georgia, and Nuevo Laredo, Mexico.

With 34,000 square feet of open space now available, SRF will offer warehouse services to companies that need to provide Montgomery area manufacturers with same-day delivery and inventory management services controlled by certified ISO 9001-2008 practices. SRF also has immediate plans to increase inventories of highpressure hydraulic hose and fittings along with industrial

Will Hickman

REGIONS BANK RECOGNIZES HICKMAN AS TOP PERFORMER MONTGOMERY– Will Hickman was named Regions Bank top performer at an officers’ meeting. Hickman, a business banker, was recognized for his performance for the bank’s central region which includes Alabama, Georgia

in Alabama on the list out of the 11 that qualify.

and South Carolina. He has consistently been recognized for his performance since joining Regions in 2005. A 13-year financial services veteran, Hickman has also achieved chairman’s club recognition for five consecutive years. A 1999 graduate of Troy University, Hickman’s current responsibilities include advising and partnering with businesses with annual revenues of $2 million to $20 million. SERVISFIRST BANCSHARES RANKED AMONG TOP COMMUNITY BANKS BIRMINGHAM – ServisFirst Bancshares Inc. is ranked 26 in the Top 100 Community Banks between $500 million and $5 billion in assets in the U.S. by SNL Financial for 2011. Moving up 15 spots, ServisFirst Bancshares is the only bank

“With this ranking, ServisFirst Bancshares Inc. confirms once again that we are a leader in the community banking industry,” said Tom Broughton, the company’s CEO and president. “We strive to provide our clients with the best service and it is proven by prestigious rankings such as this.” SNL ranked the best-performing community banks using six core financial performance metrics that focus on profitability, asset quality and growth for the 12-month period ended December 31, 2011. The metrics used were: return on average tangible assets before tax; net charge-offs as a percentage of average loans; adjusted Texas ratio; efficiency ratio; net interest margin; and loan growth. (Continued on page 36)

May 2012 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 35) ServisFirst Bancshares Inc., a Birmingham-based bank holding company, has locations in Montgomery, Huntsville, Dothan and Pensacola, Florida.

Collin R. Gaston

WSFA 12 NEWS CAPTURES SIX AWARDS MONTGOMERY – WSFA 12 News received six awards including Most Outstanding News Operation from The Associated Press. The station also won a Judges Award of Merit in Promotion at the sixth annual ABBY award

ceremony of the Alabama Broadcasters Association.

honey, pecan brittle, fresh produce and much more.

“This award recognizes the tireless effort and dedication of the wonderfully talented group of individuals at WSFA 12 News,” said Collin R. Gaston, vice president and general manager. “These men and women show up every day focused on delivering excellence in news and serving our community. I am proud to be a part of such an outstanding team.”

“Our goal is to sell a Sweet P Experience,” said co-owner Brendon Parkman. “Sweet P’s is a happy place that the entire family can enjoy.” The restaurant features music in the dining area; paintings by Bruce Brannon; and the Pink Sweet P Cow available for pictures.

Kadra and Brendon Parkman

SWEET P’S EATS AND TREATS EXPANDS SPRING, SUMMER HOURS

“Whether they are looking for coffee and a cupcake, a cold cut sandwich, catering options or a hotplate lunch which is offered on Sundays, there is something for every taste and budget,” said co-owner Kadra Parkman.

PIKE ROAD – Sweet P’s Eats and Treats has extended its hours for spring and summer.

WSFA 12 News also received Best Spot News Story, Best Sports Features, Best SoftNews Feature, Best Hard-News Feature and Best Extraordinary Coverage of a Planned Event.

The restaurant will now be open 10 a.m.-6 p.m. Wednesday through Sunday. Sweet P’s Eats and Treats offers a variety of homemade cupcakes, cookies and deli menu options daily as well as many Alabamamade products in the Sweet P Market. These products range from jellies, salsas,

The station’s news programs were ranked No. 1 for all time slots in the region, according to the latest Nielsen ratings.

Sweet P’s is located on Highway 231 at the former site of Partridge Pine Restaurant. For information on daily specials, catering and upcoming events, visit www. sweetpseatsandtreats.com.

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Montgomery Business Journal May 2012

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BUSINESS BUZZ officer of Coldwell Banker Commercial Affiliates Inc. The Moore Co. Realty and its affiliate companies manage more than 2 million square feet of commercial buildings in three states. The firm has offices in Montgomery and Birmingham. Jerome T. Moore III

COLDWELL BANKER COMMERCIAL MOORE COMPANY REALTY RECEIVES TWO TOP AWARDS MONTGOMERY – Coldwell Banker Commercial Moore Co. Realty was the 2011 No. 1 office and affiliate president Jerome T. Moore III was named the company’s top agent in Alabama. “Coldwell Banker Commercial Moore Company Realty exemplifies the standards of excellence for which Coldwell Banker Commercial offices are known,” said Fred Schmidt, president and chief operating

ZELDA PLACE ADDS CHICKEN SALAD CHICK MONTGOMERY – Aronov Realty Management announced that Chicken Salad Chick will open its first Montgomery restaurant at Zelda Place shopping center. The restaurant will be situated between the soon to open Five Guys Burgers and Fries and Ted The Wine Guy on Zelda Road. “We are thrilled that Chicken Salad Chick has chosen Zelda Place for their location in Montgomery,” said Beau Young, leasing representative for Aronov Realty Management, Inc.

“Following the popularity of their Auburn location, which serves 400-500 pounds of chicken salad a day, we know that Montgomery will be receptive to the concept and their restaurant will complement an already stellar line-up of food and retail offerings at Zelda Place.” Zelda Place shopping center is developed, managed and leased by Montgomery-based Aronov Realty Management, the largest privately-owned, fully diversified real estate company in the Southeast with 100-plus properties.

In addition to serving menu items inside the restaurant, the Zelda Place location will offer a “grab and go” where customers can choose a variety of chicken salad in family-size to-go containers. The Zelda Place location will also offer catering to include boxed lunches and tailgating options. FARMER’S MARKET KICKS OFF AT THE SHOPPES AT EASTCHASE

Chicken Salad Chick offers 15 varieties of freshly made chicken salad, gourmet soups, unique side items and desserts. Founded in Auburn in 2007, Chicken Salad Chick’s Montgomery restaurant will be the third location for the chain. The restaurant is slated to open mid-summer 2012.

MONTGOMERY – The grand opening for The Shoppes at EastChase Farmer’s Market will be 7 a.m.-noon Saturday, May 26 in the parking lot between Dillard’s and Earth Fare Organic Grocer. Williams-Sonoma will kick off the opening with The Taste of EastChase as it provides cooking demonstrations featuring Alabama-grown produce.

(Continued on page 38)

May 2012 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 37) For the opening, a bluegrass band will perform from 10 a.m. until noon and MANE’s miniature horse “Whinnie” will provide rides for children. The Shoppes at EastChase Welcome tent will be set up on site and will include complimentary, reusable shopping bags filled with coupons from retailers. In addition, coffee will be served by Panera Bread from 7 a.m-9 a.m. and 32 degrees will provide yogurt samples at the booth. This is the eighth season for The Shoppes at EastChase Farmer’s Market. The Farmer’s Market is held 7 a.m.-noon every Saturday through August 25. The Farmer’s Market offers unique items such as organic meats and milk, goat cheese, naturalbath products and hand-made soaps, honey, sprout breads and fruit pastries all made from locally grown ingredients.

For information about Farmer’s Market, call (334) 279-6046. AUBURN MONTGOMERY’S MASTER OF PUBLIC ADMINISTRATION PROGRAM RANKED IN TOP 100 MONTGOMERY – Auburn University Montgomery’s Master of Public Administration program was ranked in the top 100 nationwide. In the 2013 edition of the U.S. News Media Group’s “Best Graduate Schools” guide, AUM was ranked 97th for its graduate program for public and nonprofit leaders. “Recognition that results from a ranking in the top 100 is a result of the hard work and outstanding leadership of current and previous faculty, especially our recently retired program director, Dr. Thomas Vocino,” said Bradley Moody, interim head of the AUM

Montgomery Business Journal May 2012

Department of Political Science and Public Administration. “But most of all, it is a reflection of the exceptional students who have graduated from our program and of their outstanding performance in many different types of public and non-profit organizations.” Auburn Montgomery’s MPA program is one of only a handful of programs in Alabama accredited by the National Association of Schools of Public Affairs and Administration. It holds the distinction of being the first program in the state to achieve this standard. AUM’s 36-hour MPA degree program takes about two years to complete and offers students the ability to concentrate in healthcare administration, non-profit management and leadership, or state and local administration.

ALABAMA POWER PARTNERS WITH HOSPITALS BIRMINGHAM – Alabama Power is partnering with 27 hospitals including the three Baptist Health facilities in the River Region and Jackson Hospital. The partnership will reduce health care-associated infections, improve patient outcomes and cut costs. The “Putting Power into Healthcare (PPHI)” initiative focuses on increasing hand hygiene in hospitals, which studies show can help reduce health care-associated infections. These infections can complicate a medical condition, extend the time a patient stays in the hospital and increase the costs of healthcare and health insurance. The hospitals involved in the project have installed Proventix’s nGage System, which uses active communication units and radio-

BUSINESS BUZZ frequency badges tied to a data and compliance monitoring system. By using the system, hospitals can measure when and how often their employees and healthcare professionals wash their hands. Princeton Baptist Medical Center in Birmingham conducted a sevenmonth study to determine whether increased hand-washing prompted by the nGage System could reduce infection rates. During the study period, infection rates dropped 22 percent in the unit where the system was installed. That translated into 159 fewer patient days and estimated health cost savings of more than $133,000.

commercial litigation section of the firm. He is involved in every case being litigated in the section and on a national level. Cumberland School of Law, founded in 1847 as part of Cumberland University in Lebanon, Tennessee, was acquired by Howard College, now Samford University, in 1961. The Law School is accredited by the American Bar Association and is a member of the Association of American Law Schools.

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Megan McCarthy

W. Daniel Miles III

BEASLEY ALLEN SHAREHOLDER NAMED CHAIR OF CUMBERLAND ADVISORY BOARD MONTGOMERY â&#x20AC;&#x201C; Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., Shareholder W. Daniel â&#x20AC;&#x153;Deeâ&#x20AC;? Miles III is serving as chairman of the Advisory Board for Cumberland School of Law at Samford University. As chair, he works hand-inhand with the dean, Judge John Carroll, on issues involving the law schoolâ&#x20AC;&#x2122;s vision, accreditation, general operations, faculty, students and alumni affairs. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a tremendous honor to be elected by other board members to help lead the law school into the future,â&#x20AC;? Miles said. Miles, a 1989 graduate of Cumberland, joined Beasley Allen in 1991 and has been a pioneer of consumer fraud and commercial litigation nationwide. In addition to representing clients in litigation, he manages the consumer fraud/

Alex Holtsford

TWO ATTORNEYS RECEIVE PRESTIGIOUS RECOGNITION MONTGOMERY â&#x20AC;&#x201C; Holtsford Gilliland Higgins Hitson & Howard, P.C. announced that Alex L. Holtsford Jr. has been selected as a 2012 Super Lawyer in the State of Alabama for civil litigation defense. This award goes to the top 5 percent of lawyers in the state who have attained a high degree of peer recognition and professional achievement. Megan K. McCarthy, an associate in the firm, has been selected as a 2012 Rising Star. The Rising Star award is given to the top 2.5 percent of attorneys under the age of 40 and/or who have been practicing less than 10 years in the State of Alabama. â&#x20AC;˘

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May 2012 Montgomery Business Journal

Members on the Move TURENNE PHARMEDCO RESTRUCTURES, NAMES THREE GENERAL MANAGERS

RILEY NAMED CEO OF JACKSON HOSPITAL

Joe Riley

MONTGOMERY – Joe B. Riley has been appointed president and chief executive officer of Jackson Hospital.

Tisha Hayes

Riley has spent the past four years as CEO of McAllen Medical Center in Texas, which is operated by Universal Health System, a national investor-owned company which owns 231 hospitals throughout the country. Before his employment with Universal Health System, Riley worked 10 years for Health Management Associates, which operates 66 hospitals mostly in the South. He served as CEO of Central Mississippi Medical Center in Jackson; Poplar Bluff Regional Medical Center in Missouri; and Crawford Memorial Hospital in Van Buren, Arkansas. Riley is the fourth CEO in Jackson Hospital’s 66-year history. He succeeds Don Henderson, who resigned to become CEO of Central Florida Health Alliance, which has two hospitals – Leesburg Regional Medical Center and The Villages Health System. “We are delighted to announce the appointment of Joe B. Riley as our next CEO at Jackson Hospital,” said Jim Ridling, chair of the CEO search committee. “Physicians and board members on the search committee were impressed with both his business and clinical background. His focus has always been on quality patient care. The board is very excited to have Joe and Mary Ann Riley as new members of the Montgomery and Jackson family.” Riley, a registered nurse, has a master’s degree in health care administration from Trinity University in San Antonio. He has a bachelor’s degree from West Texas State University and an associate in nursing degree from Amarillo College.

Montgomery Business Journal May 2012

MONTGOMERY – Turenne PharMedCo announced that it is restructuring its executive management team and introduced several key members.

In its new model, Turenne PharMedCo has been broken into five divisions: Alabama Pharmacy, Tennessee Pharmacy, Medical Supplies, Part B Billing and Therapeutic Keith Spry Shoes, and a Shared Services Division, which includes their internal support structure. Carol Webb

Craig Miller, vice president of operations said the company is “... consolidating the management of each of the company’s five divisions under a general manager, who will be responsible for all aspects of their respective division. We’ve simply outgrown our original management model. It’s a good problem to have.” Tisha Hayes is taking the helm of the Tennessee Pharmacy division, located in Nashville. Serving around 1,000 longterm and assisted living residents across the state, the Tennessee pharmacy is a relatively new and growing piece of the PharMedCo portfolio. Hayes brings 20-plus years of experience in long-term care pharmacy to her new role with most of that spent equally in sales, operations, and customer retention. “We have tremendous potential in Tennessee,” Hayes said. “It’s very exciting.”

Keith Spry will oversee the company’s Part B Billing and Therapeutic Shoe Division in Montgomery. The original PharMedCo offering, Medicare Part B billing services, has undergone dramatic changes over the past four years, most notably the addition of therapeutic shoe services to the division in 2010. It now offers custom fitting and billing – along with the shoes themselves – for diabetic patients as well as billing and consulting services for enteral patients in skilled nursing facilities. Spry comes to his new role with more than 30 years in manufacturing, distribution and sales. “I have a lot to learn about the health care industry and how it works, but I look forward to the challenge and to helping make a difference in serving others,” he said. Carol Webb has been named the new general manager for Shared Services and will be stationed in Montgomery. Webb has been a part of the leadership team at PharMedCo for more than 12 years, starting out in human resources and working her way up to operations manager, the position she’s held for the past seven years. “It will be our job to make sure all our other divisions can do theirs,” Webb said. “We’re looking forward to providing service and leadership to all the divisions of PharMedCo.” The two remaining positions – Pharmacy Alabama and Medical Supplies – have yet to be filled. Turenne PharMedCo has 200-plus employees in Alabama, Tennessee, Mississippi, Florida and Louisiana. Its parent company, Turenne & Associates, LLC, employs more than 1,000. Turenne PharMedCo is a full-line medical supply distributor, long-term care pharmacy, and Medicare billing agency serving the healthcare industry in the Southeast.

WALKER360 ADDS BRAND SPECIALIST MONTGOMERY – Walker360 has announced that Jacob Johnson has joined its team of marketing and advertising professionals. A communication graduate of Auburn University, Johnson was an award-winning Jacob Johnson salesman for a national broadcast company before starting his own branding/advertising/public relations consultancy in 2009. He brings a wealth of experience and expertise in creative strategy and content development with a diverse background that spans the retail, manufacturing, automotive, real estate, music television entertainment and all media channels to enhance branding opportunities for Walker360’s clients. “Jacob has worked as an account executive, marketing manager and brand consultant on both the corporate and agency sides of the business,” Walker360 President Taylor Blackwell said. “This well-rounded experience gives him the ability to not only attract new business to the agency, but to contribute by managing and working to grow those brands as well.” Walker360 is an advertising and printing company that offers a range of services from marketing plans and strategies to graphic design and copywriting for radio, TV, print, outdoor, direct mail, websites and packaging. The company, which has offices in Montgomery and Atlanta, has been in business for 60-plus years. STEWART NAMED SHAREHOLDER AT BEASLEY ALLEN MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., announced that Chad E. Stewart is now a shareholder with the firm. Since joining Beasley Allen’s consumer fraud section in 2011, Stewart has focused primarily on Medicaid fraud litigation. He has been involved in several multi-million dollar settlements as well as a $38.2 million verdict. He also works on a number of other commercial fraud cases and class actions protecting the rights of fraud victims. Stewart has successfully litigated on the state and federal levels, both in trial and on appeal, for more than 10 years.

Chad E. Stewart

He graduated from Troy University in 1995 and received his Juris doctor degree from Cumberland School of Law in 1999. • To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.

May 2012 Montgomery Business Journal

New Members Advertising Specialties F & E Sportswear Inc Richard Patino 1230 Newell Parkway Montgomery, AL 36110-3212 334-244-6477

Apartments Apartment Finder Magazine of Montgomery Keli Lynch-Wright 2068 Valleydale Road, Suite C Hoover, AL 35244 205-988-5400 Ext 11 Perry Street Flats Beau Daniel 547 South Perry Street Montgomery, AL 36104 334-657-0296

Architecture/ Civil Engineering Design Support Beeman Enterprises, LLC Martin L. Beeman P.O. Box 640573 Pike Road, AL 36064 334-315-1357

Art Galleries

Groceries-Retail

Arts Gone Wild Meg Lewis 200 Tallapoosa Street Montgomery, AL 36104 334-271-5353

Eastbrook Food Outlet Alan S. Langley 439 Coliseum Boulevard Montgomery, AL 36109 334-272-8045

Associations/ Non-Profit

Pharmacies

Common Ground Montgomery Bryan Kelly 1516 Mobile Road Montgomery, AL 36108 334-593-5803

Consulting Services PlaceMakers, LLC Nathan R. Norris 12 Boardwalk Street Pike Road, AL 36064 334-799-3726 Teaching Transformations, LLC Phyllis Hall 3066 Zelda Road PMB 355 Montgomery, AL 36107 334-399-1809

E-Commerce & Search Engine Marketing Condor Consulting Spencer Belkofer 4144 Carmichael Road, Suite 36 Montgomery, AL 36106 334-625-9277

Montgomery Business Journal May 2012

Walgreens Drug Store #15258 Timothy Byars 1758 Park Place,Suite 102 Montgomery, AL 36106 334-240-1537

Political Organization Montgomery County Republican Executive Committee Pat Wilson 2810-V Vaughn Road Montgomery, AL 36116 pwilson517@aol.com

Telecommunications 5 Linx Barry Adams 100 Payne Road Montgomery, AL 36116 334-207-0136

Tire Dealers & Distributors Best Buy Automotive & Tires Bobby Jones 3835 Atlanta Highway Montgomery, AL 36109 334-244-8083

Web Design/ Web Hosting Kindred Technology Group, LLC Kenley Obas 3066 Zelda Road Montgomery, AL 36106 334-224-1882

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

Montgomery Elderly Personal Care Service 3236 Covered Bridge Drive Montgomery, AL 36116 334-590-5274 Jackie Banks - Owner Home Health Services

inMontgomery Media Group 1614 South Decatur Street Montgomery, AL 36104 www.in-montgomery.com Chris D. Thomas - Area Manager Marketing/Market Research

Sweet P’s Eats & Treats 11775 Troy Highway Pike Road, AL 36064 334-288-4900 Kadra Parkman - Owner Restaurants

Ram Jack Foundation Specialists 13387 Edna Brake Lucas Drive Montgomery, AL 36117 334-271-5225 www.ramjackal.com Ted Pinckney - President Foundation

Goody’s 2596 Eastern Boulevard Montgomery, AL 36117 334-395-9881 www.goodysonline.com Ramona Blocton - Store Manager Clothing & Accessories-Retail

Paychex, Inc. 3595 Grandview Parkway, Suite 200 Birmingham, AL 35243 205-542-2807 www.paychex.com Chase Robertson - Sales Consultant Payroll Preparation Service

Walgreens #15258 1758 Park Place, Suite 102 Montgomery, AL 36106 334-240-1537 www.walgreens.com Timothy Byars, RPh - Manager/Pharmacist Pharmacies

Eastbrook Food Outlet 439 Coliseum Boulevard Montgomery, AL 36109 334-272-8045 Alan Langley, Robby Norman & Mark Norman - Owners Groceries-Retail

Ashley Gilbreath Interior Design 514 Cloverdale Road Montgomery, AL 36106 334-262-3231 www.ashleygilbreath.com Ashley Gilbreath, ADID - Owner Interior Design

Arielsys Technologies LLC 8436 Crossland Loop Montgomery, AL 36117 334-239-4519 www.arielsys.com George Mann-CEM Engineers-Specialized

May 2012 Montgomery Business Journal

Economic Intel Unemployment Data Civilian Labor Force February p 2012

Area Montgomery MA

January r 2012

Unemployment Rate February r 2011

February p 2012

January r 2012

February r 2011

165,869

166,298

171,586

8.00%

8.20%

9.40%

Autauga County

25,000

25,180

26,033

6.70%

7.30%

8.70%

Prattville City

15,786

15,926

16,369

5.80%

6.50%

7.40%

34,643

34,756

35,836

7.40%

7.60%

8.80%

4,226

4,243

4,375

16.00%

16.30%

17.30%

Montgomery County

102,000

102,119

105,342

8.20%

9.40%

Montgomery City

91,739

91,850

94,767

8.00%

8.10%

9.30%

Birmingham-Hoover MA

517,040

515,690

529,859

7.20%

7.30%

9.00%

88,487

87,974

90,901

9.50%

9.40%

11.50%

207,091

207,185

214,699

6.90%

7.00%

7.90%

Elmore County Lowndes County

Birmingham City Huntsville MA Huntsville City Mobile MA

88,983

88,842

92,005

7.00%

7.80%

188,508

187,842

192,320

9.00%

9.10%

10.60%

Mobile City Alabama United States MA=Metropolitan Area. pPreliminary

87,928

87,532

89,814

9.30%

9.20%

11.00%

2,130,817

2,132,180

2,183,857

8.00%

8.10%

9.60%

154,114,000

153,485,000

152,635,000

8.70%

8.80%

9.50%

rRevised

Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2010 benchmark.

Montgomery Business Journal May 2012

Montgomery Regional Airport MARCH 2012 Air Carrier Operations Total Operations

Year over Year % Change

MARCH 2011

YTD 2012

YTD 2011

Year over Year % Change

992

1,042

-4.8%

2,861

2,894

-1.1%

5,456

6,388

-14.6%

15,978

16,211

-1.4%

Enplanements

15,809

15,555

1.6%

41,678

41,312

0.1%

Deplanements

15,978

15,317

4.3%

42,984

41,120

4.5%

Total Passengers

31,787

30,872

3.0%

84,662

82,432

2.7%

Source: Montgomery Regional Airport (MGM) Dannelly Field

Airline Fares

Hyundai Sales

Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. Destination Baltimore (BWI)

Montgomery

Birmingham

VEHICLE

MAR 2012

MAR 2011

YTD 2012

YTD 2011 14,487

Accent

8,337

5,739

18,484

Atlanta

Sonata

23,281

22,894

55,195

51,878

$274

Elantra

19,681

19,255

44,401

41,203

5,853

5,701

14,535

14,292

128

199

159

522

$303

$352

Boston (BOS)

$411

$403

$331

Santa Fe

Charlotte, NC (CLT)

$208

$199

$256

Azera

Chicago (ORD)

$321

$200

$292

Tucson

4,197

4,508

11,049

10,713

Cincinnati (CVG)

$375

$309

$340

Veloster

3,848

N/A

8,781

N/A

Dallas/Ft Worth (QDF)

$384

$348

$208

Veracruz

622

672

1,809

Denver (DEN)

$365

$317

$262

Genesis

3,429

2,664

8,232

6,888

Detroit (DTW)

$341

$369

$290

Equus

Houston (HOU)

$372

$350

$320

Total

Indianapolis (IND)

$411

$403

$276

Las Vegas (LAS)

$532

$434

$412

Los Angeles (LAX)

$411

$409

$330

Memphis (MEM)

$369

$343

$273

Miami (MIA)

$428

$366

$187

Nashville (BNA)

$284

$175

$380

New Orleans (MSY)

$417

$259

$263

New York (JFK)

$392

$316

$322

Orlando (MCO)

$325

$221

$302

Philadelphia (PHL)

$413

$265

$328

Pittsburgh (PIT)

$335

$370

$284

St Louis (STL)

$254

$197

$306

Seattle (SEA)

$491

$453

$380

Seoul, Korea (SEL)

$1,663

$1,700

$1,731

Tampa (TPA)

$321

$174

$302

Washington DC (DCA)

$423

$200

$296

352

241

928

728

69,728

61,873

163,573

142,620

Source: Hyundai Motor America

Date of travel: May 15-20, 2012. Date of pricing: April 8, 2012. Source: travelocity.com

Montgomery Metro Market Home Sales Month/Month % Change

FEBRUARY 2011

Year/Year % Change

Statewide FEBRUARY 2012

$105,500

12.09%

$123,000

-3.86%

$109,214

$124,312

4703.21%

$137,256

-4.18%

$132,731

2,697

0.00%

3,057

-11.78%

33,219

14.7

-11.56%

18.3

-28.96%

12.4

210

184

14.13%

167

25.75%

2,685

105

9.38%

112

-6.25%

172

FEBRUARY 2012

JANUARY 2012

Median Price

$118,250

Average Price

$131,512 2,738 13

Total # Sales Days on Market

Units Listed Months of Supply

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

May 2012 Montgomery Business Journal

Sales Tax Collections YTD 2012

YTD 2011

Year over Year % Change

4.86%

$10,091,100

$9,780,833

3.17%

$7,122,290

5.38%

$23,196,864

$22,696,970

2.20%

$57,681

135.98%

$466,199

$383,411

21.59%

MARCH 2012

MARCH 2011

Montgomery County

$3,220,436

$3,071,047

City of Montgomery

$7,505,602 $136,113

Pike Road Autauga County

Year over Year % Change

$593,602

$567,455

4.61%

$1,916,427

$1,804,672

6.19%

$1,535,975

$1,132,192

35.66%

$5,196,745

$3,764,561

38.04%

Elmore County

$414,489

$399,665

3.71%

$1,246,969

$1,220,800

2.14%

Wetumpka

$457,595

$438,800

4.28%

$1,381,648

$1,346,125

2.64%

Prattville

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook. Note: YTD numbers are January 2010 thru current month. * Did not receive this months numbers.

Quarterly Reports NAME

QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

BB&T

$2.4B

$391M

$0.55

N/A

$2.3B

$208M

Burger King

$580.6M

$29.4M

N/A

(-$93.9M)

Became second-largest hamburger chain behind McDonaldâ&#x20AC;&#x2122;s with 12,512 locations worldwide

Pacific Sunwear

$234.2M

(-$38.1M)

(-$0.56)

(-$0.22)

$237.6M

(-$35.2M)

Closed 87 stores during the quarter

DSW

$513.7M

$19.4M

$0.37

$0.49

$468.5M

$158,000

Revenue increased 9.7%

$2.4B

$192M

$0.85

$2.1B

$162M

Revenue grew 12%

$219.9M

$12.9M

$0.52

$0.49

$190.1M

$10.9M

Profit rose 18.7%

Family Dollar

$2.5B

$136.4M

$1.15

$1.13

$2.3B

$123.2M

Revenue at stores open at least 1 year up 4.5%

Walgreen

$18.6B

$683M

$0.78

$0.77

$18.5B

$739M

Loss of pharmacy network Express Scripts costs company 7 cents a share

Best Buy

$16.6B

(-$1.7B)

(-$4.89)

$2.15

$16.1B

$651M

Closing 50 stores as part of $800M in cost cuts

JoS A. Bank Clothiers

$346.3M

$44.1M

$1.58

$318.3M

$40.9M

Revenue increased 9%

Darden Restaurants (Red Lobster, Olive Garden,

$2.2B

$164.1M

$1.25

$1.24

$2B

$151.2M

Revenue at Olive Garden rose 2%

GameStop

$3.6B

$174.7M

$1.27

$1.73

$3.7B

$237.8M

Sales at stores open at least 1 year declined 3.6%

Pier 1 Imports

$476.8M

$115.2M

$1.04

$0.48

$426.6M

$57.1M

Ruby Tuesday

$324.8M

$4.5M

$0.07

$0.16

$319.1M

$16M

$2.7B

$351M

$1.48

$1.33

$2.5B

$283.5M

Ross Stores Rue21

NOTABLE Quarterly profits jump 88%

LongHorn Steakhouse)

Bed Bath & Beyond

Montgomery Business Journal May 2012

One-time tax benefit totaled $33.8M Plan to close 25 to 27 restaurants Profit jumped 24%

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Post Office Box 79 Montgomery, AL 36101