Montgomery Business Journal – October 2014

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THE

BEST HOME TOWN AIR FORCE IN THE

THE SPECIAL BOND BETWEEN MAXWELL AIR FORCE BASE, GUNTER ANNEX AND MONTGOMERY

Q&A WITH ROBERT SHOFNER PAGE 8

PITCHING FOR THE HORSESHOE CHAMPIONSHIPS PAGE 26

REAL ESTATE REBOUND PAGE 29

October 2014 Montgomery Business Journal

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MONTGOMERY, AL

DOTHAN, AL

PRATTVILLE, AL

WETUMPKA, AL

NASHVILLE, TN

334.834.7660

www.jacksonthornton.com

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Montgomery Business Journal October 2014


CONTENTS

32

CHAMBER NEWS 06 Calendar 16 Reporter’s Notebook 44 Business Buzz 51 Members on the Move 55 Ribbon Cuttings & Ground Breakings 56 New Members 58 Economic Intel

COVER STORY:

Montgomery is touted as the “best hometown in the Air Force.”

FEATURES

MEMBER NEWS 40 Member Profile: Thermalex

OCTOBER 2014

8

Q&A WITH ROBERT SCHOFNER Meet the Air Force IT Solutions Techie

31 MEDICAL SCHOOL Jackson Hospital staff teaches future physicians

20 CYBER SPACE Small Business Resource Center boasts the right fit for IT start-ups

38 ABSOLUTELY OUTRAGEOUS Rep. Martha Roby condemns treatment at local veterans’ facility

24 AIRING OUT THE COST DIFFERENCES Flying out of Montgomery Regional Airport is less expensive than departing from Atlanta

42 HOLIDAY OFFICE PARTY MEANS GAMETIME Corporate tailgate village transforms Camellia Bowl

26 IF THE SHOE FITS Relationships and location helped land World Horseshoe Championships

57 MONTGOMERY INDEX TOPS STATE’S METRO AREAS Capital City executives exude business confidence

29 BACK ON THE HOME STRETCH Montgomery’s real estate market is gaining momentum

October 2014 Montgomery Business Journal

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Robert Fouts ON THE COVER

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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 6, Issue 8 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.

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Montgomery Business Journal October 2014


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October 8 > 60 MINUTE COFFEE Sponsored by Auburn University Montgomery Outreach 8 AM @ AUM Wellness Center 7420 AUM Drive Montgomery Free event, exclusively for Chamber Members

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CHAMBER NEWS

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22 > EGGS & ISSUES WITH CONGRESSMAN BRADLEY BYRNE Presenting Sponsor: Troy University 7:30 AM @ RSA Activity Center 201 Dexter Avenue Montgomery Details and registration: montgomerychamber.com/Byrne

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30 > BUSINESS AFTER HOURS Sponsored by Capri Theatre 5PM @ Capri Theatre 1045 E. Fairview Avenue Montgomery Free event, exclusively for Chamber Members

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Montgomery Business Journal October 2014

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Robert Carl “Shof” Shofner oversees the Program Executive Office for Business and Enterprise Systems as a program executive officer.

Q&A

EMPOWERING PEOPLE interview by David Zaslawsky

Montgomery Business Journal: Please describe your role as the program executive officer for business and enterprise systems. n Shofner: While my title is program executive officer for business and enterprise systems, probably the best way to help correlate that for people is to refer to myself like a chief procurement officer in a company. I’m procuring what we call the business and enterprise systems. That really is software; it’s information technology solutions – from my perspective and from a lot of people’s perspective – the Air Force can’t do without. If we don’t procure the software and the applications the Air Force cannot operate. We touch every single airman every single day. Would you give an example? n One of the things that we help procure for the United States Air Force is Microsoft Office. We have to make sure that there are no vulnerabilities; no weaknesses; no hazards; threats; viruses. It’s part of job to make sure it’s going to work on their computer. We actually buy that software for all of the Air Force. We configure it, make sure it’s safe to use and test it out on laptops every year. It’s for every single airman in the Air Force.

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Montgomery Business Journal October 2014

How many laptops and desktops are we talking about? n I can’t tell you how many we buy, but there are 600,000 airmen when you look at active duty; when you look at our reserve components; when you look at civilians in the military. Every one of them has a computer and a vast majority of them have multiple devices and those have to be replaced every now and then. By the time we buy computers for all the airmen plus all the mission systems computers – it probably reaches a million. I’m not saying we buy a million every single year. Are you also buying tablets, notebooks and smart phones? n There is an increasing demand for mobile devices across our Air Force because it’s seen as enabler – it’s office productivity; it’s data management; it’s communication. Those are all valuable tools that our Air Force members need. We put in place some contract vehicles that allow airmen to buy those. We do it in a way with a technique called strategic sourcing. It’s kind of like your Sam’s Club. Sam’s Club buys in bulk and that’s how they pass on savings to you. We buy in bulk so we can pass on the savings to the Air Force. Continued on page 10


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“One of the biggest things on my mission card is to take care of the people: To enable them, to get them trained, to ensure they are fairly compensated, to clear obstacles.” Robert Schofner, program executive officer for business and enterprise systems Continued from page 8

Is that the NETCENTS program? n Yes, as well as the Information Technology Commodity Council, which focuses a lot on the products. The NETCENTS contracts, for the most part, are much more into the services. The NETCENTS vehicles are another strategic source-type vehicle that allows us to buy in bulk and to save money for the taxpayers. How much money is saved? n Strategic sourcing saves you 20 percent right off the top. By buying in bulk, how much is the Air Force saving? Are you talking about millions of dollars? n Hundreds of millions. What is the Program Executive Office for Business Enterprise Systems? n If I want to talk numbers and people, it’s about 2,400 people. We are in five different states and one country. They are program managers. They are logistic specialists. They are engineers. They are computer specialists. They are medical folks. They are civil engineers. You can see it’s a real mix of people and skill sets spread across the country. We are responsible for about 130 what we call programs or systems that make the Air Force work because we deal with finance; we deal with pay; we deal with personnel records; we deal with the systems that help to assign people to move from one location to another. We have medical support programs. Do you have an example? n When a brand-new airman shows up at a base today, they get assigned a house and the data system that tracks that individual getting assigned that house plus the work orders to fix it and all those such things – that’s an application we do. Please talk about applications. n When I use the term application that gets lost on people sometimes – I know it does me. Do you know Quicken or TurboTax? Quicken is a software application. TurboTax is a software application that enables people to file their taxes. Those are software applications and that is what we build – those types of programs are what we build

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Montgomery Business Journal October 2014

and what we sustain. Those types of programs are the things the men and women that are here at Gunter and four other locations around the U.S. and one overseas – that’s what we do. We either write them ourselves – we have programmers that write the software – or we contract with an industry partner to build some of the software; to sustain it. That’s a big part of our job as well. These programs need to be updated annually and sometimes monthly for different software patches, security issues or enhancements in capabilities. A big part of our mission is that we provide the software applications – those TurboTax-like, those Quicken-like applications that make the Air Force run. What’s another key area of the organization? n Another key area you already highlighted is the NETCENTS. Certainly, a number of the industry partners in the local area (are interested) … those are very large contracts with multiple contractors. Let’s say that Maxwell Air Force Base needs someone to come in and fix their network. Previously, they had to go out all by themselves and do a solicitation – sometimes a very lengthy process to bring on someone to (fix the network). With NETCENTS, we’ve made it a lot easier. We have basically pre-approved a number of vendors to go do the work. We’ve taken a lot of the work out of the Maxwell Air Force Base contracting shop because they can come to NETCENTS. It’s much faster for them to say they need this kind of capability. We have all of these pre-approved vendors. They bid for the work so the cycle time is much, much faster for someone at Maxwell or any Air Force Base. That’s what the NETCENTS vehicles do. How much faster is the cycle? n It could be a year for some of these and now it’s months. It could be three to four months, but still, that is a lot faster than an entire year. We also cut the number of people required. We have good vendors and good prices. We made it easier. What are your responsibilities as the program executive officer or the chief procurement officer? n Chief procurement officer sounds like I’m only about the buying. I am responsible for the men and women of my organization. I have what I call my mission card that I carry in my pocket. What’s on it? n One of the biggest things on my mission card is to take care of the people: To enable them, to get them trained, to ensure they are fairly compensated, to clear obstacles. A big part of my job is taking care of the people that are actually doing the procurement. Another big part of my job is to approve selections. I typically have a large role in the final selection (of a contract). They would bring an analysis to me and I would say based on the analysis, I’m selecting … Continued on page 12


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Continued from page 10

Is your approval authority limited by the dollar-size of a contract? n There are and I don’t want to get too technical. It depends on the type of money, what we call the appropriation. Typically, I have authority for anything that is going to cause an expenditure of $40 million a year or less. That’s a single activity. Or over the course of a life of a program about $500 million. I do have some additional authorities in terms of some of the NETCENTS vehicles that are bigger than that. At the end of the day, for most of those acquisitions, I have decision authority of what we buy and procure. I delegate some of those to my senior leaders because if I had to make 130 decisions a year, I would run out of time real fast. Please elaborate about the 130 decisions a year. n It’s actually much higher than that. The 130 is the programs. In a lot of cases I have different sustainment contracts; I have different analysis contracts. A single program could have a handful – three, four or five different contracts or may have one. That’s why I have a team of senior leaders. What are your priorities? n One of the things that I learned since I’ve been at this job is that we (the Air Force) had really started to focus on the big programs.

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Montgomery Business Journal October 2014

I have a lot of very large programs – one of which was canceled – Expeditionary Combat Support System. Sometimes, it’s really easy to get focused on those and sometimes to the detriment of everything else. One of my priorities is what I call balanced execution. That means that we’re going to make sure that we’re not going to lose the bubble on those big programs, but we’re going to revisit and look at all of our smaller programs as well. I want to make sure my people are trained to manage those programs; they’re getting the resources that they need; that we’re following good systems in generating discipline. I’m just trying to make sure that we don’t keep our eyes just focused on the big programs. We will focus on all programs. We also tended to be focused on sustainment. The organization thinking was much about new capabilities and the Air Force has lots of requirements for new capabilities on these programs. What is another priority? n The second priority is integration. Over the course of time, we tended to treat every single program unto itself. We never really thought about, what are the implications, if I’m doing something on this program does it have an effect on this other program. We never really thought about maximizing what we call the infrastructure of the network. In some cases over time, we allowed individual


programs to build their own network. That’s just very inefficient. One of the things that we’re looking at is what I call to enable integration. So the systems work better together? n Yes, and to drive in some efficiencies. Instead of letting everybody build their own network, why don’t I work with Gen. (Craig) Olson who was the predecessor to me, who does infrastructure and does the networks? Let’s look what we call building some commonality because that’s when you’re going to save some money. We are trying to take a better look across our programs and that’s the integration. It sounds like you’re talking about taking a big-picture approach and moving away from a tunnel-vision approach. n That’s exactly it and that drives efficiencies both in terms of our people and costs. Why don’t we look at combining some contracts? In order to do that, that means we have to be looking outside my office walls, so we created an office that is basically helping program managers look across the cubicles at another program and look for opportunities to drive in some efficiencies; and drive in some of the increase in effectiveness. That to me is integration and we try to do that across five states and (one country).

“I really want to give my folks an opportunity to lead. I want to make sure we’re enabling them; we’re training them; and giving them chances to lead.” Robert Schofner, program executive officer for business and enterprise systems

Isn’t this all about modernizing the systems – moving to 21st century technology or is that too much of a stretch? n No, that’s not too much of a stretch. I would tell you it’s also as much about the process – not just about technology, but how we approach modernizing our systems. Do you have other priorities? n Another is communicating with our stakeholders. Stakeholders are someone outside of us. I am very concerned about how we deal with headquarters; how we deal with other parts of the Air Force; how we talk and communicate with our industry partners. We want to make sure we are communicating with all of our stakeholders; make sure there are no surprises; and just being as transparent with them as we can. Is there a fourth priority? n I really want to give my folks an opportunity to lead. I want to make sure we’re enabling them; we’re training them; and giving them chances to lead. I have to make sure that I’m not a micro-manager. I don’t want my other leaders to be micro-managers. We have incredible talent. I’ve got young, 21-year-old men and women, who are over here writing software just as good as any company that is generating software today. Continued on page 14

October 2014 Montgomery Business Journal

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Continued from page 13

Do you see this organization adding missions and adding personnel? n I’m so glad you asked that. BES – business and enterprise systems – we are growing because … there is a recognition now in the Air Force that we are good at what we do. There are a lot of organizations – the headquarters, the staff – are saying, ‘I’ve been shepherding this program for 10 years. I highly think that Shof and his folks can do a better job than me.’ We’re going through right now what is called a lot of transitions. Those transitions are basically someone else is doing the work, but there is a recognition that my men and women do the job better or for lower cost, so they are bringing work to us. In a lot of cases, that does not necessarily mean people are moving to Montgomery. The responsibility for BES is growing because we are picking up offices in other places. You’re saying it’s unlikely personnel will be added. n We’re really not going to get bigger. The Air Force is not going to get bigger. We have to find smarter ways and more efficient ways to do this.

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Montgomery Business Journal October 2014

How much money does this organization oversee in contracts? n We have authority that reaches about $34 billion. We put in a place a contract and there is a ceiling on it. We anticipate on a contract that we will need over the course of most cases a five-year period – to spend about $7 billion. We have to put in place contracts that allow us to get to that ceiling. The big number you’ve heard is about $34 billion. NETCENTS is a big contributor – some of the NETCENTS contracts are $7 billion to $8 billion. In terms of the actual money that flows through all of BES it’s about $1 billion, but our reach is $34 billion. Those contracts could have a lot of sub-contractors. n Hundreds and thousands. I think again it’s (BES) little known how far we reach from (here) – the entire Air Force; global reach. We touch every airman every single day. There are very few people and very few organizations that can say that. I’m proud that by virtue of what we do the Air Force is able to operate whether it’s logistics; it’s maintenance; it’s medical; it’s finance; human resources – you name it – we touch it. It’s a story we ought to tell more and we couldn’t get there without our industry partners. n


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REPORTER’S NOTEBOOK

Massive Contract

NO. 1 IN AP TESTS

Caddell Construction Co. has

Alabama is the top state when it comes to improvements in passing Advanced Placement tests – a 136 percent gain during a six-year period vs. a national average of 49 percent.

been awarded a $111 million contract to build a nuclear power training facility at Goose Creek, S.C. The project includes both renovation and construction of new buildings. The contract has six options and two planned modifications, which could increase the contract to $158 million.

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A $13.2 million program, started in 2008 to improve AP test scores in Alabama, is now in 118 schools with a goal of 200 schools by 2020. Those

successful test scores surged from 4,037 six years ago to 9,534 this year. “It’s good to be No. 1 in something other than football,� Alabama Gov. Robert Bentley told The Associated Press. The program has saved parents an estimated $36 million from students receiving college credits for passing an AP test.

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MAKING THE LIST Montgomery-based Bell Media was ranked No. 3453 on the Inc. 5000 list of the fastest-growing private companies in 2014. The list was compiled from the percentage of revenue growth from 2010-2013. Requirements included that the companies had at least $2 million in revenue in 2013 and at least $100,000 revenue in 2010.

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THREE CHEERS

BOUNCING BACK

Strange praised a group of Montgomery tech entrepreneurs, who have held a couple of meetings to capitalize on the region’s strength of universities, automotive sector and information technology sector.

Second-quarter residential sales in the Montgomery area were the best in four years with 1,023 units and 3.5 percent better than the same period last year, according to the Alabama Center for Real Estate. Total residential sales in the 2010 second quarter were 1,108 units.

The group’s goal is sharing ideas and finding solutions to make Montgomery a great place to live, work and play. There is talk about holding an event dedicated to solving a single problem. For Strange, “what was so exciting is I don’t know about it. It is not government doing it. It’s the entrepreneurial spirit that’s alive and well and out there.�

The latest quarterly sales were 16.3 percent greater than the three-year average from 2011-2013 and 10 percent more than the five-year average from 2009-2013. The 2014 sales figure is comparable to 2001 (1,069 units) and 2002 (1,069), but still 41 percent below the 2005 high of 1,725 units.

ALLIGATORS MADE DEBUT Alligators have a new home at the Montgomery Zoo. The $300,000-plus exhibit took about 11 months to complete and will eventually have five alligators. “We’ve had so many people talk about what a gem this is,� Strange said about the zoo. “This is truly a great partnership between private industry and government.� The City of Montgomery, Montgomery Area Zoological Society, Rita Sabel, Alabama Power and Hyundai Motor Manufacturing Alabama all contributed to the alligator exhibit.

BRUNCH A SUCCESS The Montgomery Museum of Fine Arts has extended its Saturday brunch through December. The brunch is served 10 a.m.-1 p.m. and prices range from $9 to $13 for such entrees as smoked pork chop, apple kolaches, crab cake benedict, huevas rancheros, a traditional breakfast plate, breakfast sandwich and curry chicken salad. The menu does vary.

FREE SERVICE The Lightning Route Lunch Line offers downtown workers and residents a free ride during lunch hours. Passengers will be picked up at various locations on Commerce Street and Dexter Avenue from 11 a.m.-1:30 p.m. The lunch line, which is operated by David Sadler, is an electric golf cart. It’s being called U-Go-MGM cart.

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October 2014 Montgomery Business Journal

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On the Radar

After it was announced that Whole Foods was coming in 2016 to Chase Corner in East Montgomery, several national companies have shown an interest in the Capital City, according to Montgomery Mayor Todd Strange. “Having Whole Foods come here is huge,” Strange said. “To get a Whole Foods to come to your community … sends the message to the other retailers out there.” It was four years ago that Strange was part of a local contingent that took a

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Montgomery Business Journal October 2014

site visit to Austin, Texas, looking at best practices and areas that might be considered for Montgomery. Strange, along with The Colonial Co. Chairman James Lowder and Dawn Hathcock, vice president, Montgomery Area Chamber of Commerce Convention & Visitor Bureau, visited a corporate office of Whole Foods. They met with the president of the Southeast region and the head of development. The 40,000-squarefoot Whole Foods will be across from the EastChase development off Taylor Road and is part of an Aronov Realty Management project.

OPENING SOON Strange said that “there is light at the end of the tunnel” for Genetta Park. The project has been around for years and is expected to open in October. It is located on the West Fairview Avenue by Interstate 65.

HYUNDAI SALES SIZZLE August was a memorable month for Hyundai sales in the U.S. The company sold 70,003 vehicles for an all-time August record and was only the second time that the Korean automaker topped 70,000 sales in a month. Hyundai also topped 500,000 units for the year in the fastest time in history. “Sales continued to gain momentum as the month progressed and we finished the Labor Day holiday weekend strong, Bob Pradzinski, vice president of national sales for Hyundai Motor America, said in a statement. Elantra sales for August were 22,845 units – its sixth best month and Sonata sales (21,092) were its 10th best month. Sonata sales were up 25 percent from the previous August. Both vehicles are produced at the Hyundai Motor Manufacturing Alabama facility in Montgomery.


Lofty Honor Auburn University at Montgomery has been named one of the best colleges in the Southeast by The Princeton Review while its College of Business was named a 2014 Best Business School by The Princeton Review. The Princeton Review wrote: “It’s easy to understand why undergraduates are attracted to Auburn University at Montgomery. After all, from the moment you set foot on campus, it’s evident that this is a school where professors and administrators are genuinely interested in students’ learning and development. “It is an honor to be recognized by The Princeton Review as a Best Business School, and an extraordinary accomplishment of our college,” Rhea Ingram, dean of the business college, said in a statement. “It speaks volumes to the dedication of our faculty, staff and students. We are committed to excellence, and are constantly noted for our reputation of excellence, faculty who bring in real-world experiences, and connections to the business community.” The College of Business has departments in accounting, information systems and management, economics, finance and marketing.

GRAND OPENING The Montgomery Area Food Bank celebrated the opening of its $2 million, 23,600-square-foot expansion. The organization distributes food to 35 counties and is the largest food bank in the state.

ALABAMA POWER NAMED TO PRESTIGIOUS LIST Alabama Power was one of 10 named to Site Selection magazine’s annual list of the top utilities in economic development.

The food bank helps more than 330,000 people a year, distributing 20 million-plus pounds of food.

The criteria used in determining the list included energy efficiency, innovative programs, renewable energy projects and incentives for clients.

HEALTHY CREDIT UNIONS

“Utilities play a key role as participants in the economic development efforts of cities, regions and all areas working to improve their local business climate,” Mark Arend, editor in chief of Site Selection, said in a statement. “This year’s top utilities were particularly successful in this endeavor in 2013.”

MAX Credit Union and Alabama State Employees Credit Union were both ranked on Top 200 Healthiest Credit Unions in the country by DepositAccounts.com. MAX, which has 295 employees and 104,663 members, was ranked 45th while ASE was ranked No. 141. It has 27,880 members. More than 6,000 credit unions were ranked on such factors as capitalization, deposit growth and loan to reserve ratios.

The article is in the September 2014 edition of Site Selection and online at www.siteselection.com.

October 2014 Montgomery Business Journal

19


CYBER SPACE SMALL BUSINESS RESOURCE CENTER BOASTS THE RIGHT FIT FOR IT START-UPS story by David Zaslawsky

photos by Robert Fouts

When he was an intern with Advanced Computer Technologies, Yigit Balin said he dreamed about coming back to the Montgomery Area Chamber of Commerce Small Business Resource Center to open his own business. That was seven years ago and Balin did realize his dream this year as he moved a home-based company to the Small Business Resource Center (SBRC). He is an information technology consultant for Custom Computer Care. His wife, Talibah Jones Balin, is the CEO. “I always had a vision to have a company in this Small Business Resource Center and then grow it,” he said. “It’s like your little baby. You need to make sure you feed it; you find some clothes for it; and you take care of it.” The business had been at their home for six years until February when Custom Care Computer took up residence at the center. When he talks to a client, “they want to know that I’m not some guy

Above: Nicole Sloan is the president/CEO of DMD Technology Solutions. Right: Yigit Balin is an information technology consultant for Custom Computer Care.

20

Montgomery Business Journal October 2014

from Craigslist or somebody’s friend’s friend that will fix my computer and might not be seeing them again if something breaks down tomorrow. “Now, I’m saying that I have an office here in Montgomery, Alabama. You can come in anytime you want. You can call me anytime you want. I’m a small business.” He did not have to dig very deep in his pocket for the expense of a new office – just $160 a month for about 150 square feet and access to conference rooms and training rooms as well as a receptionist; access to business machines and 24/7 access to his office. “For $160 a month you just can’t beat it,” Balin said. “I can bring five people here and train them at a low cost because it’s free to me. At home, you can’t train anybody.” DMD Technology Solutions is also located in one of the center’s 150-square-foot offices, and with upgrades, Nicole Sloan, the company’s president/CEO, pays about $400 a month. “It’s definitely affordable on our budget,” said Sloan, who graduated from Entrepreneurial University at the center. She also talked about the access to conference rooms and a classroom. “We have the flexibility to accommodate a group of more than 50 people if we need to,” Sloan said. The company specializes in government contracts at the local, state and federal levels and provides web development, system engineering, database administration, help desk management and customer support services. She has two employees who work at the Gunter Annex. The center’s location is so convenient that she can have a box-lunch meeting at the center with the two employees from Gunter and


have them back at work during their one-hour break. She is bidding on some new contracts and hopes to add four more employees, increasing her work force to eight. The Small Business Resource Center is an ideal location for an IT start-up with the presence of Maxwell Air Force Base and Gunter Annex. There are 100-plus IT companies in the region. “We have seen that more and more of our new clients coming in are IT-related companies,” said Dr. Cameron Martindale, senior vice president of the Chamber’s Community Development division, which is located at the Small Business Resource Center. “We think because it’s such a good fit here at the Small Resource Center that we’ll find more and more. The fit is perfect for technology companies that don’t

have a lot of requirements. Because more and more IT companies are coming to Montgomery, more and more (government) contracts are available; and more missions at Maxwell and Gunter around the IT area. We expect at least half of our clients in the future will be IT-related.” Meanwhile, Balin was expecting to hire someone who would work in the Montgomery area while he grows Custom Computer Care by opening an office in Selma. He also hopes to eventually open a Birmingham office. Balin, who either charges $35 an hour or is paid a monthly fee, said his primary clients are doctors, attorneys and small schools. Another client operates 10 title-loan offices. “Small businesses like a doctor’s office don’t want to employ an IT guy,” Balin said. “What they want to do is call a person, get it done and pay. I am that guy.” Continued on page 22

“I always had a vision to have a company in this Small Business Resource Center and then grow it. It’s like your little baby. You need to make sure you feed it; you find some clothes for it; and you take care of it.”

YIGIT BALIN, CUSTOM COMPUTER CARE

© 2014 Alabama Power Company

Safe, affordable, reliable electricity is one form of power we provide, but not the only one. There’s also the power devoted to realizing the amazing potential of our state and its people. T hat’s power to propel business forward. That’s Power to Alabama.

www.amazingalabama.com 32:, )DVW0RYLQJ&RPSDQLHVB0%- LQGG

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October 2014 Montgomery Business Journal

21


Continued from page 21

Custom Computer Care is one of eight IT-related companies either in the Chamber’s Small Business Resource Center incubation program or co-working space. Martindale said that having an office vs. working out of your home makes all the difference. “If you come here as a start-up IT company and you want to get some significant government contracts and you have customers who come and see you , they are greeted at the front desk by your company name. You are notified that a customer is here. The customer is then escorted to one of the conference rooms or training rooms in the facility, where you meet your client. “The customer feels a lot of credibility around that small IT business and that’s really important to those IT businesses getting business. If they are working out of their home and the customer wants to come and meet with them and they are meeting at the dining room table the customer is going to say, ‘What’s the credibility of this business?’ ”

CURRENT IT COMPANIES AT THE SMALL BUSINESS RESOURCE CENTER n

DMD Technology Solutions

n

InDyne Inc.

n

Custom Computer Care

n

Branch Technology

n

n

n

n

Kindred Technology Group, LLC Velox Integration Services, LLC Agile Information Technology Solutions Blueridge Information Technology Solutions

n

Netelysis

n

Hatfield Taylor Co.

The IT-related businesses at the center receive mentoring from the center’s resource clients as well as the Chamber staff who also advocate on their behalf. “We also try to keep them in the loop of information,” said Douglas Jones, executive director of the Small Business Resource Center and vice president of business services for the Chamber. He noted that there are a lot of IT companies at the center that have government contracts. “Because we are part of the Montgomery Chamber’s Community Development division, which includes government and military affairs, we have a lot of centralized interaction with government entities in a way that puts us on the cutting-edge of what’s coming; what’s new,” Jones said. “We are in a position to be able to communicate those things to our technology companies.” Jones “has been beyond helpful,” Sloan said. She has also worked with Frank Jenkins III, the center’s Entrepreneur in Residence and representatives from Service Corps of Resource Executives. One of the Chamber staff at the center is Rick Plaskett, director of Defense Technology Development, who works closely with IT companies. He can introduce an IT start-up at the center to

Proven. MONTGOMERY | TROY | BIRMINGHAM | ATLANTA palomarins.com (800) 489.0105

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Montgomery Business Journal October 2014


other IT companies in the area “to expand their offerings,” Martindale said. Incubation clients have the opportunity to attend dozens of free or low-cost seminars and training sessions – there were 60 last year. Those seminars/ training sessions cover such topics as how to run a business; how to manage employees; how to handle taxes, etc. Sloan said she attends some of those sessions, including ones about government contracts. “There are a lot of ways the center can provide expertise to (IT start-ups) and help them at a really minimal cost,” Martindale said. She said that expertise is “growing a business.”

SUCCESSFUL IT COMPANIES LAUNCHED FROM THE MONTGOMERY CHAMBER’S SBRC n

n

Certified Technical Experts

n

Computer Commuter

n

Decade Consulting

n

n

There is also impact of collaboration with other small businesses at the center whether it’s walking down a hall to another business or having an office at the co-working space, where clients through a membership have a dedicated desk; lockable file cabinet; conference room; 24/7 access; and a receptionist. “You’re in a productive, entrepreneurial space, where there are other people working on their businesses,” Jones said. “When you have a business idea or have a problem you can turn to

Advanced Computer Technologies

n

n

Integrated Computer Solutions Inc. Integrated Solutions Tech Multimedia Communications Services Corp. Software Engineering Services

n

Square Root Interactive

n

Transcendence

n

Up & Running Inc.

somebody and say: ‘Did you have this problem and how do you solve it?’ That’s the term: co-workers. You end up with co-workers – people around you that are working on business activities and have an opportunity to form relationships with.” Martindale said that many of the center’s IT startups need to partner with other IT companies to compete successfully against larger companies. “They join together and are able to do more work and then they’re more attractive to the contracting office to be hired.” She said the Small Business Resource Center is also an ideal location for IT companies outside the area that want to have a presence in Montgomery, near Maxwell Air Force Base and Gunter Annex. “… it costs them very little to start up a new branch here and look at the business environment and to look at opportunities for their businesses here in Montgomery because we have become an IT hub,” Martindale said. n

October 2014 Montgomery Business Journal

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AIRING OUT THE COST DIFFERENCES

Those driving numbers and wait time for Atlanta are very generous. You may want to leave five hours before a scheduled flight to give yourself three hours of driving time and two hours before the flight departs. “We get one complaint a week from people calling this airport complaining that they missed their flight out of Atlanta (because) of driving,” said Chip Gentry, vice president, air service development for the Montgomery Area Chamber of Commerce and Montgomery Regional Airport. Now add driving costs and parking. It costs a company flying an employee, who makes $50,000 year, $285 more to leave from Atlanta. If that employee makes $90,000 a year, the difference is $370. Plus, passengers do lose one hour with the time change traveling to Atlanta, which basically means a company will end up losing one day of work to fly an employee out of Atlanta vs. Montgomery.

by David Zaslawsky

It’s a matter of doing the math. There are tangible costs and also non-tangible costs. Let’s start at the intersection of Eastern Boulevard and Vaughn Road. It’s 294 miles for a round trip to Hartsfield-Jackson Atlanta International Airport and a 28-mile round trip to the Montgomery Regional Airport. The IRS allows 55.7 cents per mile – $163.76 for the Atlanta trip and $15.60 for the Montgomery trip.

It’s

Let’s say the passenger is gone for four days – $68 for parking at Atlanta ($17 per day) vs. $32 at Montgomery ($8 a day). Those expenses to Atlanta total $231.76 compared with $47.60 to fly out of Montgomery – a difference of $184.16.

cheaper for

The driving time to Hartsfield for a round trip is about five hours and passengers need to be there at least 90 minutes before their flight departs. That’s more than six hours of lost productivity from an employee compared to a one-hour round trip to Montgomery’s airport and being there one hour before the flight. That difference in lost productivity is about $100 for an employee earning $50,000 a year; and about $190 for an employee who makes $90,000 a year.

definitely not common

“You can see the eyes light up,” Gentry said about showing company executives the true cost of flying out of Montgomery instead of Atlanta.

knowledge, but it is businesspeople to fly out of Montgomery than it is to fly out of Atlanta when comparing the actual costs.

It’s difficult to change perceptions. One traveler told Gentry that their parking was free at Hartsfield because they stayed at a hotel, which of course wasn’t free. Meanwhile, a consultant flew from Montgomery to Charlotte for a connection to Portland, Maine, while a group from Montgomery drove to Atlanta to fly to Charlotte for a connection. Naturally, the passenger flying out of Montgomery left several hours later than the group driving. What about a company’s top executives driving to Atlanta to fly out of Hartsfield? The lost productivity could easily top $1,000 not to mention the nontangibles of the easy access and short drive to Montgomery vs. fighting traffic on Interstate 85 and

CHART A - LOST PRODUCTIVITY EMPLOYEE COMPENSATION BASED ON TIME LOST (SEE CHART B)

SALARY

ANNUAL

PER HOUR

TRANSPORTATION SAVINGS WHEN FLYING OUT OF MGM (SEE CHART C)

TOTAL SAVINGS

ATL

MGM

$50,000

$24.04

$152

$48

$104

$184

$288

$60,000

$28.85

$183

$58

$125

$184

$309

$70,000

$33.65

$213

$67

$146

$184

$330

$80,000

$38.46

$243

$77

$167

$184

$351

$90,000

$43.27

$274

$87

$187

$184

$372

$100,000

$48.08

$304

$96

$208

$184

$392

$110,000

$52.88

$335

$106

$229

$184

$413

$120,000

$57.69

$365

$115

$250

$184

$434

Numbers have been rounded.

24

EMPLOYEE COMPENSATION SAVINGS WHEN FLYING OUT OF MGM

Montgomery Business Journal October 2014


then the hassles of dealing with the country’s busiest airport. Gentry even suggests that a company’s top executives might even consider using a chartered service out of Montgomery to save their precious time. Now crunch the airfares. The average base round-trip fare – that’s purchased at least 30 days in advance – is only $60 less in Atlanta than Montgomery, according to Gentry. Of course, there are larger differences for some fares. The airlines have what Gentry called a pricing revenue management department to determine fares. The average fare for Boston was $5 more to fly out of Montgomery; $7 more to Dallas/Fort Worth; $10 more to San Francisco Bay Area; $13 more to St. Louis; $26 more to Charlotte; $27 more to New York/ Newark; $35 more to Las Vegas; and $45 more to the Los Angeles Basin. In comparing fares for September’s issue of the Montgomery Business Journal, Montgomery flights to Charlotte ($23) and Seattle ($55) were cheaper than flying out of Atlanta and many others were less than a $50 difference, including Baltimore ($8), Boston ($31), Chicago ($19), Cincinnati ($19), Detroit ($12), Los Angeles ($11), Memphis ($9), Miami ($40), New York’s JFK ($44), Tampa ($39) and Washington, D.C ($49). There was a $55 difference to Orlando and $84 difference to Las Vegas.

There are deals while the merger between American Airlines and US Air is fully integrated by October 2015. “With Delta’s growth focused on New York City and Seattle right now, the new American Airline is taking full advantage of reducing fares throughout the entire Southeast and Mid-Atlantic region,” Gentry said. n CHART B - TOTAL TIME LOST ATL

MGM

Drive Time Round Trip

4:50

1:00

Arrival Time before Flight

1:30

1:00

Total Time Lost

6:20

2:00

(6.33 Hours)

(2 Hours)

CHART C - TRANSPORTATION COSTS ATL

MGM

294

28

$163.76

$15.60

Parking (4 Days)

$68.00

$32.00

Total Expense

$231.76

$47.60

Mileage Round Trip Mileage Compensation ($0.557/mile)

SAVINGS FLYING OUT OF MGM

$184.16

October 2014 Montgomery Business Journal

25


IF THE SHOE FITS Relationships and Location Helped Land World Horseshoe Championships by David Zaslawsky

It was a customary media briefing for Montgomery Mayor Todd Strange when it was announced – among a number of other things – that the 2016 National Horseshoe Pitchers Association World Championships would be coming to Montgomery. The two-week event is expected to bring 1,200 participants to the Capital City and 2,000-plus overall during that span. The estimated economic impact is an impressive $2.5 million. Why Montgomery? How did the city beat its competition from Wichita Falls, Texas; Spokane, Washington; and Concord, North Carolina, which is just outside Charlotte? In three words: Location, location, location. That was a key factor, according to Ron Simmons, sports sales manager for the Montgomery Area Chamber of Commerce Convention & Visitor Bureau. Of course, it was more complicated than that and many other elements came into play, but “everything tied back to location,” Simmons said. Location actually entailed more than just the site of the 2016 event – the Multiplex at Cramton Bowl. It is centrally located in downtown Montgomery, which is centrally located to hotels, restaurants, attractions and the entertainment district and that Montgomery is centrally located in Alabama and the Southeast.

What also contributed to sealing the deal was the facility itself, the almost-brand-new, 90,000-square-foot Multiplex that features a 70,000-square-foot main floor and a seating capacity of 4,000. The facility certainly drew accolades from Tina Hawkins, the second vice president of the National Horseshoe Pitchers Association, who toured the Multiplex during an invited site visit. “She said it was the nicest facility they’ve had,” Simmons said. “They’ve never been to a facility that nice. We have some amenities such as the Jumbotron that we’re allowing them to use and provide the IT personnel for it. That was huge.” The facility was a top-selling card for Montgomery because it was the only city bidding that could hold the 2016 horseshoe world championships in one building under one roof. “We can put all the practice courts in the same building – the others can’t,” Simmons said. Other competitors have a facility with multiple buildings under one roof. The Multiplex is 12,000 square feet larger than the facility near Buffalo that was the site of the 2014 world championships this past summer. Simmons, who was in New York when the 2016 world championships site was decided, said he stayed at a hotel in West Seneca about 15 miles away from the 2014 world championships in Hamburg. He also said the facility was “tight.” The National Horseshoe Pitchers Association delegates, representing 50 states and Canada, eliminated Wichita

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Montgomery Business Journal October 2014


Hawkins spent four days in Montgomery. She asked technical questions about the Multiplex, Simmons said. She visited hotels; went to restaurants; The Alley; Harriott II Riverboat; and recreational vehicle parks. The city is creating a recreational park village at Garrett Coliseum.

Meanwhile, Montgomery’s group at the presentation was more strategic, according to Dawn Hathcock, vice president, for the Chamber Convention & Visitor Bureau. The Montgomery contingent handed out towels with the message: “Keep Calm, Pitch On.”

“The other thing that impressed (Hawkins) was the amount of things there was to do just in the downtown area,” Simmons said. Her itinerary included a Segway tour of downtown, the riverfront and Riverwalk Stadium, the home of the Montgomery Biscuits AA baseball team.

Those towels were not handed out indiscriminately, but only went to the 200 or so delegates who vote on the site of the world championships. The message on the towels “tied into our presentation,” Simmons said. Montgomery had a booth with a Wii game of horseshoe pitching. The Montgomery video focused on the Multiplex – its size and amenities. “It was kind of a walk-through and you saw how big it was and how it was set up for other sports to get a feel for it,” Hathcock said. For Hathcock, one of the key reasons for Montgomery winning the bid was inviting Hawkins for a site visit. “They had never been invited to a city for a site visit,” Hathcock said. “She saw the proximity of downtown and the city itself and where a lot of the other venues that were pitched were 20 miles out,” Hathcock said.

Another Montgomery strength is partnerships between the city and county and the Chamber. Simmons said that Hawkins was impressed by “how easy it is to work with the people here in Montgomery. The relationship between the CVB and the Parks & Recreation is huge for them – it’s seamless.” Yet for all those reasons, there was something else, and that something else was the friendship Simmons had nurtured with Hawkins over a three-year period. He first met Hawkins at a sports trade show at Orange Beach in September 2011. She introduced Simmons to the horseshoe world championships. “What drew my interest was the number of people and the history that Continued on page 28

© Fouts Photography

Falls, Texas, and Concord, North Carolina, in the first round of voting. The Concord group not only brought their mayor to their presentation, but a NASCAR [race car?] and handed out trinkets – hats, T-shirts, pens, towels, etc. – to everybody. “They put a lot of resources in it,” Simmons said of Concord’s bid.

“The relationship between the CVB and the Parks & Recreation is huge for them – it’s seamless.” Ron Simmons, sports sales manager for the Montgomery Area Chamber of Commerce

October 2014 Montgomery Business Journal

27


Continued from page 27

it had,” Simmons said. He said the event has a 50-plus year history and most importantly, “they don’t miss a year,” Simmons said.

me by Stu and Tina,” Simmons said. He even asked for some documentation from those cities. Simmons then asked for an updated request for proposal.

He received a request for proposal and as a novice when it comes to horseshoe pitching, Simmons assumed the event would be outdoors. It’s an indoors event and requires an air conditioned building. He said that Garrett Coliseum did not meet the requirements and at that time there was no Multiplex. The following year at the same trade show, but this time in Oklahoma City, Simmons and Hawkins talked about again possibly staging the world championships in Montgomery. She encouraged Simmons to bid. The Multiplex was under construction. “In my estimation, we were not ready,” Simmons said.

Simmons met with Hathcock and Scott Miller, director of Leisure Services and Facility Management for the City of Montgomery. It was decided to compete for the 2016 event. A marketing team and strategy was created.

Simmons met Stu Sipma, president of the National Horseshoe Pitchers Association at a sports trade show in Las Vegas. “Now, I’m beginning to develop a relationship with these people,” Simmons said. In 2013, the sports trade show was held in Daytona Beach, Florida, where Simmons again met Hawkins and discussed what the world championships bring to the city. It was time for Simmons to do some serious homework. He talked to city officials where the world championships had been held. “Everyone that I spoke with said it delivers exactly what was communicated to

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Montgomery Business Journal October 2014

“I thought our chances were very good,” Simmons said. “I felt good before we got there because I knew what we had to offer. I knew what we did upfront. We knew we could provide what they are looking for. We knew that we had the personnel.” Hathcock said the two-week event in 2016 “is a great opportunity for us to showcase Montgomery to a group that might not otherwise have a reason to come here.” Being the host site for national or world championships can help in attracting other groups or organizations “with that prestige,” Hathcock said. Simmons said he is always looking at bringing non-traditional sporting events to Montgomery and Quidditch is one such case. He also hopes to have more and larger cheer competitions. n


The state’s construction industry is the most upbeat sector about the third quarter, with an overall index of 63.8 in a quarterly survey. Some of the components are nearly off the charts with a 67.3 index for sales and 65.4 indexes for profits and hiring. The last time the overall Alabama Business Confidence Index was 63.8 or higher was the fourth quarter of 2004. Yes, the construction industry is feeling pretty good about the third quarter in the survey conducted by the Center for Business and Economic Research in the University of Alabama’s Culverhouse College of Commerce. James Lowder, chairman of The Colonial Co., said is he “feeling better” about the real estate market and he is backing that up with an upscale $5 million, 48-apartment complex in Cloverdale that is already under construction on the corner of Fairview Avenue and Boultier Street. It is expected to be completed in March with rents topping $1,500 a month for two- and three-bedroom units. His company will be adding multi-residential projects in the future, but Lowder New Homes is currently adding a lot of new homes at its 10 neighborhoods in the River Region. That’s because there has been a string of good economic news, including unemployment declining; six straight months of 200,000-plus job gains; and incomes are starting to climb. “Business is better,” Lowder said. “Sales are better. Prices are up a little bit from a year ago. I think people are feeling better about everything.” They are and it has shown in U.S. auto sales, which are on pace for nearly 16.5 million units this year – the most since 2006. “Sales of utility vehicles soared in July because American families feel better about the economy than they have in a long time,” GM Vice President of U.S. Sales Kurt McNeil told USA Today. The national gross domestic product jumped from a -2.1 percent in the first quarter this year to 4.0 percent in the second quarter

James Lowder is chairman of The Colonial Co.

– a 6 percent turnaround. “It feels better,” Lowder said. “It feels better. Everyone you’ll talk to says it feels better. Now, we’ve got to translate that to it is better.” The residential real estate numbers for Montgomery back him up. Home sales were up 15.6 percent in June vs. June 2013, according to the University of Alabama’s Center for Real Estate. Sales have increased 11.9 percent above the five-year average for June and jumped nearly 30 percent from the trough in June 2011. Meanwhile, inventory has improved 14 percent since last June to eight months from 9.3 months. The ideal inventory is considered six months. Median sales prices are 2.3 percent more than the five-year average and 17 percent more than the low in June 2004. It’s easy to understand why company executives are definitely feeling better. Aronov Realty Management announced it was developing the 800-acre Ansley Lakes subdivision near Park Crossing High School in East Montgomery. The first phase will have 130 acres of houses and 18 acres of what is called “village-style” retail at the entrance of the development. The first phase will have 278 lots.

BACK ON THE HOME STRETCH Montgomery’s real estate market gains momentum story by David Zaslawsky photo by Robert Fouts

“Ansley Lakes will offer a variety of home types that we feel will appeal to most anyone looking for a home in Montgomery,” Aronov Realty Management Chairman and CEO Jake Aronov said in a statement. Continued on page 30

October 2014 Montgomery Business Journal

29


Continued from page 29

The company also announced that a 40,000-squarefoot Whole Foods Market was coming to Chase Corner in 2016 – across from The Shoppes at EastChase. The center has an additional 14,000 square feet of retail space. Jim Wilson & Associates announced that 34 lots would be available in October at its New Park development in East Montgomery. “There is pent-up demand because we’ve had … really seven years of tough times,” Lowder said from his second-floor office at the Town of Hampstead. “Mortgage rates have stayed historically low so it’s a great time for people (to buy).

“We just tried different things as a response to that competition and looked at what all we have; is there a better way to do it; and what are people responding to,” Lowder said. Woodland Creek now offers the “Grand Mesa,” a 3,379-square-foot home with four bedrooms and 3½ bathrooms for $418,500. Lowder said the large home “is a response to the Stone Martin competition.” The homes at Woodland Creek range from 50-foot lots to 100-foot lots. There are new housing options at such properties as Hampstead, Deer Creek, The Oaks at Sturbridge and StoneyBrooke Plantation to name a few.

“There’s still a lot of room for improvement,” Lowder said. “We’re not fat and happy, but I guess we’re eating again.” Lowder New Homes is offering a wide range of price points at its properties as well as new models and packages. “It’s all part of responding to competition,” Lowder said, citing Stone Martin Builders and D.R. Horton, the country’s largest homebuilder, entering the market. D.R. Horton is one of the available builders at New Park.

Lowder is forecasting 110 new home sales this year – about a 20 percent increase from 2013. He expects that 20 percent increase next year and in 2016 when annual home sales would reach 165, which was the company’s 17-year average. “There is no reason we shouldn’t be able to do it under normal times,” Lowder said. That’s not a stretch goal.” Another positive trend for Lowder New Homes is the reversal of the spec houses and pre-sales mix, which has moved from the historical 60 percent spec and 40 percent pre-sales to 70 percent pre-sales and 30 percent spec. The company tries to have 35 to 40 spec houses available, scattered throughout its properties. n

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Montgomery Business Journal October 2014


Jackson Hospital Staff Teaches Future Physicians Fourteen osteopathic medical students are studying at the newly developed Jackson Hospital medical school campus, which will eventually have 40 students. The students – eight in their third year and six in their fourth year – are from the Alabama Medical Education Consortium, which is being incorporated into the Alabama College of Osteopathic Medicine (ACOM) this fall. ACOM is based in Dothan. “Jackson Hospital has a very strong history of supporting (medical education),” Jackson Hospital President and CEO Joe Riley said at a reception for the medical students. “We are pleased to be leaders in clinical education and programs.” The hospital has been a host site for the last 10 years for the clinical rotations for the consortium students. Dr. Steven O’Mara, who will be Jackson Hospital’s chief of medical staff in July, is the

by David Zaslawsky

program director for the medical school. He is currently vice chair of the medical staff.

students. He said this is an “ideal way” for Montgomery to grow its own physicians.

The River Region and the nation as a whole have been confronting an aging physician work force and a shortage of primary care physicians. The average age of local physicians has been reduced from 55 to 52 over the past three to four years, said Montgomery Mayor Todd Strange.

Dr. Wil Baker, associate dean of ACOM, said that 74 percent of the 100 students who are now in the work force are in the primary care disciplines. “We’re excited about the future,” he said. He said there are currently 111 students in residence training with 58 of those in an Alabama program.

“But what better way to recruit for the future … to have 14 (students) this year; 28 next year; and 40 the next year,” Strange said. “If the third- and fourth-year (students) have a really good experience and we really recruit well, maybe – just maybe we have an opportunity to get them to come back and hang their shingle here.”

“A community-based education site like Jackson Hospital will be a premier teaching site for students,” Baker said in a statement. “We have been connected to Jackson Hospital now for several years and we’ve gotten to know the hospital and the physicians. We’ve time-tested Jackson Hospital and it will be as good as it gets when it comes to educating students for their third and fourth years.”

Craig Lenz, the program’s chief academic officer for ACOM and senior vice president, said that last year’s class had 40 students from Alabama and this year’s class has 48

ACOM takes a holistic approach to medicine and students end up with a doctor of osteopathic medicine. n

October 2014 Montgomery Business Journal

31


THE

BEST HOME TOWN AIR FORCE

IN THE

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Montgomery Business Journal October 2014

Unlike some communities that may offer a 10-percent discount to the zoo with a military identification, there was a small army of volunteers to serve the River Region’s military and family members at the annual Montgomery Zoo event.

There is a special bond between Maxwell Air Force Base, Gunter Annex and Montgomery and the River Region. story by David Zaslawsky photos by Robert Fouts

The Wright Flyers and Montgomery Area Chamber of Commerce staff served nearly 2,300 free meals to military personnel and their families, which included active duty and retired military. The zoo visit was free. It was a large feast to say the least, with 10 cases of hot dogs, 15 cases of hamburgers, 43 cases of potato chips, 1,800 ice cream sandwiches as well as 40 cases of water and 50 bags of ice. This was such an important event that Montgomery Mayor Todd Strange attended as well as business executives. “You can make sure that they had a fun, free day for their families, but also by cooking we get to intermingle,” said Montgomery Area Chamber of Commerce Chairman of the Board of Directors Leslie Sanders. “I met a lot of new people that day – a lot of kids.”


Tullos said that it’s customary for businesses to offer military discounts, “but I’ve never had someone ask me if I was in the military” to give me a discount. “It’s the very subtle ways that a community reaches out to that segment of the population before they even know you are a part of it,” Tullos said. The message is both loud and clear from local government to the business community: Montgomery embraces Maxwell Air Force Base and Gunter Annex and this is no one-sided relationship. “It’s not just lip service,” Strange said. “We get to know them personally. We visit in their home and they visit in our home.” Strange and his wife actually entertained Air University Commander and President Lt. Gen. David Fadok at the mayor’s beach home on the Alabama Gulf Coast. “To me, it’s pretty unbelievable,” said Col. Andrea Tullos, commander of the 42nd Air Base Wing, which oversees the day-to-day operations of Maxwell Air Force and Gunter Annex, who attended the zoo event. “That’s an extraordinary undertaking – that’s all volunteers.” She said the military appreciation day at the zoo is the community’s “expression of thanks.” Tullos sees and experiences that expression of thanks whenever she leaves the base, especially when she is not wearing her uniform. Businesspeople ask her if she is with the military so they can give her a discount. She said that someone paid for her deputy’s lunch and left a note on the back of the check: “Thanks for your service.”

“It doesn’t matter who I call; what their day job is … they are trying to find ways to make space on their calendars and it’s always what can we do to help.” Sometimes, it’s not subtle, as when Sanders along with Strange and Montgomery County Chairman Elton N. Dean Sr. visit various classes at Air University and attend graduation ceremonies. “It may start out as if there might be a professional responsibility to go meet and greet, but it becomes a cherished relationship, that we’re sad when they leave,” Sanders said. “We mourn when the classes go. We just lost the best soccer coach we ever had. The great thing is, I get the impression that a lot of them don’t want to leave either, which reinforces that we have a great quality of life and we appreciate you for you. They are an invaluable part of the community just like everyone else.” Continued on page 34

“To us, Maxwell is the home of the Air Force. It is the one place where everyone intersects.” Col. Andrea Tullos, commander of the 42nd Air Base Wing

October 2014 Montgomery Business Journal

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Continued from page 33

Former 42nd Air Base Wing Commander Col. Kris Beasley said, “The reception that we receive here is incredible. People want to be appreciated and we are appreciated here in a great way. We are certainly appreciated here as much or more than anywhere I’ve ever been.”

“We are certainly appreciated here as much or more than anywhere I’ve ever been.” Col. Kris Beasley, former commander of the 42nd Air Base Wing

And the colonel has been around a lot – around the country and the world. Beasley said that he has been at 20-plus bases and all those communities do appreciate the military. “I’ve never been at a place where we were hands off or not liked at all, but there are places where it’s a much warmer welcome than others. Clearly, here in Montgomery and in the River Region there is a very warm welcome. When our people come in they get that welcome and it’s much more than just, ‘hey, we’re glad you’re bringing some jobs.’ ” Maxwell Air Force Base and Gunter Annex have a combined $2 billion annual economic impact on the River Region. The 42nd Air Base Wing, which includes 40-plus tenant units, has 42,000 personnel including students, families and civilian workers. Maxwell has a $500 million-plus operating budget and combined with the Gunter Annex have an annual payroll of $750 million. “Sometimes there is a perception that is the economy,” Tullos said, “but it’s more than just the economy. It’s the family-side; it’s the recreational-side; it’s the educational-side.” Although the economic figures are huge, that’s not what the area’s relationship with Maxwell/Gunter Annex is about. “It’s a lot more than the money,” said Sanders, who is vice president of Alabama Power Co.’s Southern Division. “It’s about people. It’s about their experience. It is our privilege to help them get interwoven into the fabric of the community so that they don’t skip a beat. They need a guide to know what to do and we can do that professionally and personally.”

Sanders did that personally with Tullos, who has been at her post a little more than four months. The two had dinner at Jubilee Seafood restaurant in Cloverdale. Sanders said she will talk with female military personnel about hair salons, nail salons, doctors, dentists – “all of those things are really important,” she said. All the things that Montgomery does from improving the roads by Maxwell and Gunter Annex to building Freedom Park to building Wright Brothers Park with a replica of a Wright Flyer to a military appreciation night at Riverwalk Stadium to parades and to have Fadok attend Montgomery Area Chamber of Commerce Board of Directors meeting – show the community’s support for the military. “We treat Gen. Fadok like he is an elected leader,” Dean said. “We’ve put a lot of effort in reaching out to the military. We appreciate the military. So often military people retire here and they are some of the best-trained people in technology, management and leadership. They have been valuable assets to Montgomery.” They have been valuable assets in both small and large ways – as volunteers to clean up schools; donate blood; teach Sunday school; and coach sports, among many other activities. Volunteers from Maxwell/Gunter teamed up with Alabama Power volunteers to clean up Boat Ramp Park, removing two barges of debris. They also put down sod. “That shows the kind of partnership between the city, a local business and the military all volunteering their time in early mornings and weekends to get that ready for the city,” Sanders said. The city and Chamber have staff who work closely with the military members of the community who are huge Maxwell/Gunter supporters. “We need to continue to remind this community that we are a military community,” Sanders said. “We get that we’re the state capital, but we’re really a military community. You’ve seen us talk about that and focus and emphasize that through the Chamber this year.” At various events, you’ll hear Strange, Dean, Sanders and Maxwell officials say that Montgomery is the best hometown in the Air Force. That slogan, according to

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Montgomery Business Journal October 2014


Col. Trent Edwards, originated with Col. Chris Bargery four years ago when he was the Mission Support Group Commander for the 42nd Air Base Wing. That slogan “was used to describe the sense of a hometown community that (Bargery’s) Mission Support Group airmen were responsible for providing Maxwell Air Force Base and Gunter Annex,” Edwards wrote in an email. Edwards preceded Tullos as the 42nd Air Base Wing commander earlier this year. He wrote that “there is something special about Maxwell Air Force Base” as most of the Air Force members are at Maxwell during their careers – attending classes. “Our goal at the 42nd Air Base Wing is to create a world-class hometown experience for the tens of thousands of airmen who transit through Maxwell Air Force Base every single year and we are very proud to do so,” Edwards wrote. “We are equally proud of the incredible support and partnership we receive from the River Region community. The opportunity for our airmen to travel outside the base and have quality restaurants, shopping, schools, theater and sports and recreation activities contributes (to) the best hometown and the Air Force experience we’ve created.” Tullos said it’s the Air Base Wing’s responsibility to make the airmen feel like it’s home – a warm, relaxing feeling “that we try to provide everybody that comes to Maxwell, whether they are here just for a week of training or whether they are here for a year of Air War College,” she said. “The installation strives to be one of the crown jewels of the Air Force. People come down here and we want to make it head turning. We want that first impression to be lasting.” Of course, being the best hometown in the Air Force is something that local officials brag about every chance they get. Strange said “that is pretty significant” when Air Force officials say that. “It’s a really good marketing mantra,” he said. “We can use that not only in defenserelated economic development whether it be aerospace or any other manufacturing situation that would have a product or service for the military. You take every advantage that you can get to show your connectivity to the military.” Tullos feels that connectivity. “My impression here is that things are going so well I just need not to screw it up – just stay out of the way. Nothing is broken. You really have to find ways on the margins and just try to keep the momentum going. “To us, Maxwell is the home of the Air Force. It is the one place where everyone intersects.” n

Montgomery County Commission Chairman Elton N. Dean Sr.

Montgomery Area Chamber of Commerce Chairman of the Board of Directors Leslie Sanders

Montgomery Mayor Todd Strange

MONTGOMERY OFFICIALS WORK TO STRENGTHEN MILITARY TIES by David Zaslawsky photos by Robert Fouts

Although the relationship between Montgomery and Maxwell Air Force Base and Gunter Annex has “kicked up several notches,” according to Montgomery Mayor Todd Strange, there is still more that can and will be done. “We’re not going to rest on what we think we’ve done well,” said Leslie Sanders, chairman of the Montgomery Area Chamber of Commerce Board of Directors. “We need to continue.” She talked about some “connectors” between downtown Montgomery and Maxwell as well as some new developments. Sanders said there will be additional P4 (publicprivate and public-public) projects with the base. The city currently leases 10 to 15 acres to the Air Force for $1 a year, according to Strange. Strange said that studies are being conducted to see how the community and military can do more joint projects. “We need to do more of cleaning up

that area along Maxwell Boulevard to help not only the entrance, but the side views, and we are working right now on some land swaps with them (Maxwell officials),” Strange said. “It’s always being at the table – reaching out to them; knowing what their needs are and frankly for them to know what our needs are. If we need volunteers to do the half-marathon or full marathon if they have SOS (Squadron Officer School) classes or officer training school – we get those resources a lot.” Montgomery County Commission Chairman Elton N. Dean Sr. said the Day Street entrance to Maxwell needs to be improved and there needs to be access to Interstate 65 South from Day Street. He expects that Air Base Boulevard to be improved when properties are sold.

“We have our hands in the right place and our minds in the right place to continue to be successful,” Dean said. “We need to continue to ask the Air Force what it needs and continue to partner with them as far as it relates to facilities; engage them more. “We just have to continue reaching out and always feel that pulse and see what they need and see what they’re lacking. We need to make sure that the (military) gets what they’re lacking.” Dean would like to see more facilities on the Riverwalk, which stretches to Maxwell Boulevard. “Montgomery is not dead anymore, but there are some things that could be added to make it more lively than what it is.” n

October 2014 Montgomery Business Journal

35


RELATIONSHIPS ON A SOLID BASE Key connections keep Montgomery on Air Force’s radar by David Zaslawsky

It’s always a good thing to have influential friends in high places, and that’s the case with Montgomery movers and shakers and the Air Force. That very, very close relationship is thanks not only to Maxwell Air Force Base and Gunter Annex being located here, but also because Maxwell has the second highest number of distinguished visitors next to Andrews Air Force Base. Yes, the country’s top Air Force officials come to Montgomery – even the Secretary of Defense as well as many threeand four-star generals. “They know where Montgomery is and with some frequency they will have a dinner; they will come to some event and we try to reciprocate,” Montgomery Mayor Todd Strange said. “I’ve had breakfast with threeand four-star generals a number of times. I’ve had dinner with the Secretary of the Air Force. I had dinner with the Chief of Staff of the Air Force and the four-star AETC (Air Education and Training Command) Commander. “When they’re coming into Montgomery, we try to take advantage of their presence because they are not here long.” Strange said he gets a chance to know those visitors “one-on-one over dinner.” They get to know him. “When I call the AETC commander – they know that Todd Strange, the mayor of Montgomery, knows the commander.”

All of those relationships can be very valuable when the current administration or the next one considers a Defense Base Closure & Realignment Commission (BRAC) to reduce bases throughout all branches of the military. Having those influential friends does not mean that Montgomery will be exempt from base reductions, but being known as the “best hometown in the Air Force” coupled with those high-powered relationships certainly helps Montgomery. “When you are looking for additional missions; when you are coming up against somebody else and you have to make a decision between two different communities and you have a reputation and indeed are the best hometown in the Air Force – it would be kind of tough to take something away from the best hometown in the Air Force or not give something to the best hometown in the Air Force.” Montgomery County Commission Chairman Elton N. Dean Sr. pointed out that all the officers that come to Maxwell – the Air Force’s intellectual and leadership center – are leaving with positive impressions and “are going to tell people about Montgomery. Look at all the retired generals we have here in Montgomery.” Of course, that slogan – being the best hometown in the Air Force” is now known across the country and “is going to do a lot for us.” In addition to those dinners and breakfasts and visits, Montgomery invested around $10 million in infrastructure improvements to Maxwell Boulevard and now is spending about $3 million on improvements to Congressman Dickinson Drive, which is the main gate for the Gunter Annex. The city/county as well as the business community work so well with Maxwell/Gunter that the military’s resulting P4 initiatives – public-public and public-private partnerships – have become the prototype for the Air Force, said Leslie Sanders, chairman of the Montgomery Area Chamber of Commerce Board of Directors. The base and city swapped some land that will be used to improve the main entrance on Maxwell Boulevard. Montgomery nearly lost a key component at Gunter Annex during the last BRAC. Now, there is a redundant power supply at Gunter,

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Montgomery Business Journal October 2014

the site of the region’s high-tech hub. That $1 million investment does not guarantee Gunter’s survival in a future BRAC because information technology organizations can be moved. It does make a strong case for both not moving missions from Gunter and to bringing additional missions here. Another $500,000 was invested in Freedom Park inside the Maxwell gate for military families. “If you’re sitting in the Pentagon and you’ve got to make a decision to move this mission here or there – you’re certainly going to remember those bases that embraced you and your family and helped to make your quality of life a positive experience for the time that you were here,” Sanders said. “That’s just human nature.” Col. Andrea Tullos, commander of the 42nd Air Base Wing that includes Maxwell and Gunter, has only been on the job since May 30, but said that Montgomery leaders and the business community “are looking forward. They are not content with staying where they are. I don’t think the Department of Defense would look at Maxwell and Gunter and say, ‘Wow, there are some problems there that we really need to look at.’ There is not a lot that they (Montgomery leaders and businesspeople) haven’t realized in terms of the potential for the base and the community to have a symbiotic relationship. I think they are ahead of the curve in terms of having processes in place to continue that relationship.” The former Secretary of Veterans Affairs who chaired the 2005 BRAC, Tony Principi, is a consultant for Montgomery officials on how to prepare for a future BRAC. Sanders said that Principi said, “When we visited towns, those that showed enthusiasm and support, that meant something.” Sanders: “You can’t fake that. Those that say, ‘We need to protect our base and let’s go love on the military – that doesn’t get it. It has to be real. It has to be sincere. And it has to be built day in and day out.” n


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She said that 57 percent of the employees said that they were directed to alter patients’ wait times for an appointment; that there were secret waiting lists; that 1,200 [colonoscopy?] reports were altered by a doctor; and that X-rays were missing for five years.

‘ABSOLUTELY OUTRAGEOUS’ Roby condemns treatment at local veterans’ facility by David Zaslawsky photo by Robert Fouts

U.S. Rep. Martha Roby launched into a scathing attack of the U.S. Department of Veterans Affairs health care system. In particular, the Republican who represents the congressional Second District, which includes Montgomery, attacked the Central Alabama Veterans Health Care System’s treatment of patients.

“All I can say about this – it’s disgusting and absolutely outrageous that this is how we treat the men and women who have put on the uniform to fight for the very freedom and liberty that allows us to gather in this room today,” Roby said at a Montgomery Area Chamber of Commerce Eggs & Issues at the RSA Activity Center. “And we’re going to keep digging down. Under no circumstances will I allow for this to go unchecked. We find out more and more information every day. I would suggest to you it may get a little worse before it gets better.” Although she had harsh words for the Obama administration’s

handling of foreign policy and the economy, it was no match for the condemnation of the treatment of military personnel at facilities in Montgomery and Tuskegee. Patients at the Montgomery facility had the eighth largest average wait for an appointment – 51.5 days – out of 141 veteran systems nationwide. “There is a culture that has been created,” said Roby, who is seeking a third term in November. “This is not something that started last spring.” She said that “there is no question there has been malpractice and malfeasance.” Roby said she along with U.S. Sen. Richard Shelby (R-Ala.) sent a letter to Robert McDonald, the new secretary of the U.S. Department of Veterans Affairs, inviting him to Montgomery and visit Central Alabama Veterans Health Care System. She talked about asking “the hard questions and see the opportunity for reform on behalf of the men and

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Montgomery Business Journal October 2014


women that we love and hold dear so much.” McDonald has the authority and tools “to swiftly fire senior managers for misconduct for poor performance and we expect him to use it,” she said. “We must hold these individuals accountable and responsible for all the things that they have done, but also make sure that our veterans get the health care that they need right now. Right now.” She worried that other news will drown out the veterans’ care. “We can’t let this be forgotten. We must continue to shine a light on what is happening. We can’t let people move on to the next story. If we can’t keep our promises to our veterans – what are we doing? I will not relent on this fight ...” She praised the reform bill that was signed into law and permits veterans to see civilian doctors if they wait for 30-plus days for an appointment at a veterans’ facility. The bill also allows veterans to see a civilian doctor if they live 40-plus miles from a veterans’ facility. The bill also includes money to hire doctors and medical personnel to alleviate some of the understaffing at veterans’ facilities. Two of the top executives of the Central Alabama veterans’ facility were placed on administrative leave. She also made a blistering attack on Obama’s foreign policy, accusing the Democratic president of not leading. “Whenever there is a void, somebody is going to step up and fill that void,” Roby said. “It’s no mistake what is happening in Ukraine. It’s no mistake what’s happening with the breakdown in peace talks with Israel (and the Palestinians). It’s no mistake what’s happening as ISIS crossed the Syrian border into Iraq and now terrorize innocent people,” she said about the Islamic State in Iraq and the Levant.

She called ISIS “pure evil and al-Qaeda on steroids.” Roby said, “These are bad, bad guys and they hate our freedom. And they hate our liberty and they are killing innocent people.” Roby, who now serves on the House Committee on Appropriations, which controls a wide range of purse strings, said that the American people “want to know is that the leadership they elected regardless of party – will step up and lead when it comes to this crisis in Iraq. “I strongly support us doing what we need to do to stop ISIS. Nobody wants another war. I don’t want another war, but we have a responsibility when it comes to stopping these awful terrorists.” Roby said that was honored to be appointed to a select committee by House Speaker John Boehner to investigate four Americans killed in Benghazi, Libya. She stressed that the committee was on a fact-finding mission and not a political stunt. “I can tell you that our pursuit of the truth and of the facts will be unrelenting and hopefully that’s all you would expect from that committee. The American people deserve to know the truth. This is a legitimate committee.” She defended the House, which has passed numerous bills that failed to move in the Senate, including the Keystone pipeline; small business tax reform; and work programs to help welfare recipients find jobs. Roby said that she hears about “the do-nothing Congress” on a daily basis and is frustrated. “I want to tell you I’m not stopping – we’re not giving up.” She blamed the federal government for squeezing middle-class families’ budgets. “You see the heavy hand of the federal government and how it’s hurting our middle-class families that sit around the kitchen table and do their best to balance their checkbook.” n October 2014 Montgomery Business Journal

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Barry Andrews is Vice President of Thermalex.

When you have to be in your car on a sweltering Alabama day, you probably consider the air conditioner your best friend. An even better friend, however, is Thermalex. Without the components Thermalex manufactures, your car could do little to save you from the heat. “Any kind of heat exchanger in an automobile – and that could be a condenser, an evaporator, oil coolers, transmission coolers – we make the components for it,” said Thermalex Vice President Barry Andrews. “We build the components and then our customer does the assembly.” Those customers reach far and wide. From its Montgomery facility, Thermalex supplies a long list of clients throughout the U.S., Mexico, Canada, South America and Europe. Using Thermalex parts, the clients assemble units that go in automobiles or commercial and residential air conditioning systems worldwide. Closer to home, those units are often installed in Alabama-made vehicles such as Hyundai and Mercedes.

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“Our end-result customers are everybody,” Andrews said. Before that end result is possible, a very specialized and scientific process must take place. It begins with raw material of aluminum that is heated, compressed and forced through a machine that molds it into the various shapes required by clients. Andrews jokingly compares it to using a Play-Doh Fun Factory – the only difference being that fun factory sets don’t typically exert 3,000 tons of pressure. That is what it takes to compress the aluminum after it has been heated to approximately 920 degrees Fahrenheit. Getting the aluminum to a workable state is quite a feat itself. It is shipped to Thermalex’s 320,000-square-foot plant in the form of massive aluminum logs 22 feet in length. The logs are then cut into smaller sections called billets that are easier to manipulate prior to extruding them into different shapes. Depending on the customers’ needs, these shapes can range anywhere from nine inches to nearly 10 feet. On average, Thermalex manufactures about 40 million of these parts monthly. While the complex machinery and cutting-edge technology may make Thermalex seem like a newer company, it’s actually been part of Montgomery for nearly 30 years. In fact, it was one of three existing industries highlighted last fall on the Montgomery Area Chamber of Commerce’s Success Starts Here tour. As Montgomery City Council President Charles Jinright noted at the event, “Alabama is now a popular place for the automotive industry. You were here way before it got real popular in Alabama and it’s real nice to see that you’re still here.” Thermalex began in 1985 as a joint venture between Thermal Components and Mitsubishi Aluminum Co. It remained such until Mitsubishi Aluminum purchased the other half of the company in 2008 and became sole owner.

Much like Thermalex reshapes raw materials, it has also reinvented itself to adapt to changing times. When the automotive industry experienced a downturn in 2008, many of Thermalex’s clients went bankrupt. The once primarily automotivebased company then decided to diversify and expanded its client base. “We went from probably 95 or 96 percent automotive up through 2007, and now we’re probably somewhere in the 80/20 range – 80 percent automotive and 20 percent non-automotive and that non-automotive is commercial and residential air conditioning,” Andrews said. Being able to adapt has paid off. Thermalex’s business has grown so much in recent years that an expansion has been necessary. The company launched a $12 million capital investment in 2013 that has included the purchase of several new cutting machines and an extrusion press. Once the equipment is fully operational this year, Andrews anticipates the company will be able to hire about 15 employees and increase production by 20 percent.

“...you really have to have everybody on the same page and mindset to be successful. I think we have so much business and we’re growing because we probably do a little bit better job of that than our competitors.” Barry Andrews, vice president of Thermalex

Thermalex is successful not only because it has diversified, but also because the company is considered a leader in the industry. It has earned a reputation for using the most technologically advanced methods to expertly manufacture a very specific product. “This company was founded and born to only produce these type components,” Andrews said. “Our competitors, most of them, are extruders of multiple different-type parts. The tolerances are so tight and the requirements are so severe that you really have to have everybody of the same page and mindset to be successful. I think we have so much business and we’re growing because we probably do a little bit better job of that than our competitors.” Thermalex’s future continues to look bright. The company will be busy with projects from new customers and additional business from existing clients. While that is certainly positive for Thermalex, it is also a plus for those of us who like to keep cool. n

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The 2014 Raycom Media Camellia Bowl executive director hopes that when business executives think about their holiday office party they think about college football at Cramton Bowl. That’s because businesses now have an option to stage their holiday office parties at the Camellia Bowl’s corporate tailgate village, which will be both indoors and outside at the Multiplex at Cramton Bowl. There are three basic corporate packages for tailgating – $4,500, $2,500 and $1,250 – with a range of amenities and game benefits. The game, which pits the No. 3 team from the Sun Belt Conference against the No. 4 seed from the Mid-American Conference, is 8:15 p.m. Saturday, Dec. 20 – five days before Christmas. Kick-off is scheduled for 8:15 p.m. on ESPN. Johnny Williams is Executive Director of the Camellia Bowl.

HOLIDAY OFFICE PARTY MEANS GAMETIME story by David Zaslawsky photo by Robert Fouts

“What we tried to do was put together in this package an opportunity for a company to do one-stop shopping,” Camellia Bowl Executive Director Johnny Williams said. The one-stop shopping corporate tailgate packages feature tents, signage with corporate logo; tables and chairs; 40-gallon coolers with unlimited ice; tickets, parking passes, cups, plates, napkins and dinnerware. Those packages do not include food, which a company can bring, or catering is available. For a $4,500 corporate village tailgate package, a company receives two 20-by-20 tents; eight six-foot tables with linen table cloths; 30 folding chairs; green outdoor carpet; 47-inch flat-screen television with satellite service; four coolers and the abovementioned tailgating accessories. That package also includes 100 reserved tickets; eight parking passes; and a full-page, four-color program ad. In addition to the three basic tailgating packages, Williams said companies can opt for a customized package, where imagination is the limit, including the types of tickets; tent size; location of the tent; concessions; game programs or even bowl merchandise. “We’ll sit down with them and see what works for them,” Williams said. “We’re the facilitator to (help) them understand the options. We want this to be their event.” There will also be entertainment and a children’s zone for throwing or kicking footballs or running an obstacle course.

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Williams noted that “tailgating has become a huge facet at most college football games” and has even reached the high school level. “We try to take that concept and create a community-based or corporate-based tailgate village or party atmosphere around this bowl game, where year in and year out people will view this event as a social event,” Williams said. “In building this game, we want community involvement – this is Montgomery’s ballgame. We want this game to succeed long beyond our six-year contract that we currently have.” His goal is having at least 25 to 40 companies at the corporate village, but hopes to grow it so that “it will cover up the whole hillside.” Williams did present the corporate village concept to the Montgomery Area Chamber of Commerce Board of Directors’ meeting. He said some of the game sponsors are very interested in tailgate packages. Having a corporate tailgate village is one way to generate fans to fill up the newly renovated Cramton Bowl, which holds about 25,000 people. Each of the bowl’s teams are guaranteed 2,500 tickets and can purchase more. The annual bowl game in Mobile draws 20,000-plus fans to Ladd-Peebles Stadium, according to Williams. That is where the GoDaddy Bowl will be played this January. Williams is excited about being the last bowl game Dec. 20 and about being on prime time. There are currently four other bowl games scheduled that day: R+L Carriers New Orleans Bowl, Gildan New Mexico Bowl, Royal Purple Las Vegas Bowl and Famous Idaho Potato Bowl. “As we all know, when that television camera comes on for 3½ hours nationwide prime time – every television at every sports bar will have the game on from Montgomery, Alabama,” Williams said. “That’s why there is so much competition for these bowl games.” He said the first day of the bowl season has higher ratings than some of the later games. n For information about the 2014 Raycom Media Camellia Bowl corporate village tailgate packages, call (334) 239-0546 or visit the website camelliabowl.com.



MEMBER NEWS

BUSINESS BUZZ BEASLEY ALLEN ATTORNEY RECEIVES WIEDEMANN & WYSOCKI AWARD MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. shareholder Navan Ward Jr., was selected as a 2014 recipient of the American Association for Justice (AAJ) Wiedemann & Wysocki Award. The award is presented annually to lawyers who demonstrate a deep commitment to the highest standards and who are passionately committed to the principles of the civil justice system and the mission of AAJ – “to promote a fair and effective justice system and to support the

Navan Ward Jr.

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Montgomery Business Journal October 2014

work of attorneys in their efforts to ensure that any person who is injured by the misconduct or negligence of others can obtain justice in America’s courtrooms, even when taking on the most powerful interests.” The Wiedemann Wysocki Award is named in honor of Fritz Wiedemann and James Anthony Wysocki, two New Orleans-based attorneys and active American Association for Justice members who died in a plane crash. The law firm also had 17 attorneys selected for inclusion in the 2015 edition of Best Lawyers in America. The attorneys were the firm’s founding shareholder Jere L. Beasley as well as shareholders J. Greg Allen, Michael J. Crow, Thomas J.

Methvin, J. Cole Portis, W. Daniel “Dee” Miles III, Andy D. Birchfield Jr., Rhon E. Jones, Benjamin E. Baker Jr., Julia Anne Beasley, LaBarron N. Boone, David B. Byrne III, R. Graham Esdale Jr., P. Leigh O’Dell, Roman A. Shaul, W. Roger Smith III and C. Gibson Vance. Additionally, Methvin has been named the 2015 Montgomery Health Care Law “Lawyer of the Year” and Birchfield has been named the Best Lawyers’ 2015 Montgomery Mass Tort Litigation/ lass Actions – Plaintiffs “Lawyer of the Year.” Best Lawyers is based on a peerreview survey in which almost 50,000 leading attorneys cast nearly five million votes on the legal abilities of other lawyers in their practice areas.


TROY UNIVERSITY NAMED ONE OF BEST IN SOUTHEAST TROY – Troy University has been named among the best colleges and universities in the Southeast by The Princeton Review.

Jack Hawkins Jr.

The designation marks the 10th year in a row Troy has been named to the list that includes only 648 colleges and universities nationwide and 139 colleges and universities in the 12-state southeastern region. These institutions represent about 25 percent of the nation’s 2,500 four-year colleges. “The most important thing we do at Troy University is serve students,” Troy University Chancellor Jack Hawkins Jr. said in a statement. “The

fact that we have been recognized every year for a decade is a reflection of this commitment to students.” The designation is the result of a survey that asks students to rate their schools on several topics, including academics/ administration, life at the school, their fellow students and themselves. Surveys are conducted on campuses and via The Princeton Review website.

A MINI FLEX STORAGE EXEC ELECTED TO SELFSTORAGE GROUP BOARD Eric Isaacson

MONTGOMERY – A Mini Flex Storage Operating Partner Eric Isaacson has been elected as vice president of the Alabama Self Storage Association.

He is the first in the Southeast to retrofit his two 152,000-square-foot Montgomery complexes entirely to LED lighting.

LOCAL SCORE CHAPTER CHAIR MOVES UP TO DISTRICT OFFICE MONTGOMERY – The chair of the Alabama Capitol Chapter of the Service Earl Heath Corps of Resource Executives (SCORE) will be the new Alabama district director. Earl Heath said he is looking forward to working with the Alabama SCORE chapters “to bring new insight to operational improvements and volunteer enjoyment.” He has been CONTINUED ON PAGE

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a SCORE mentor since 2002 and served three non-consecutive terms as chapter chair. The Montgomery chapter is located at the Montgomery Area Chamber of Commerce Small Business Resource Center at 600 S. Court St.

FOUR STAR FREIGHTLINER ACCOUNT MANAGER NAMED ONE OF TOP SALES REPS MONTGOMERY – Four Star Freightliner account manager Truman Ingram has been named one of 20 Elite Winners in the 2013Truman Ingram 2014 Leland James Sales Achievement Program for the second straight year. The Leland James Sales Achievement Program, named after the founder of Freightliner Trucks, recognizes the best sales representatives in the Freightliner dealer network.

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“We are very proud of Truman’s accomplishments,� Jerry Kocan, Four Star Freightliner dealer principal, said in a statement. “His professional approach and desire to be the best at what he does makes him who he is. We are most proud that he has achieved this rare distinction two years in a row.� Ingram has been with Four Star Freightliner since 2006. The company, which has a network of dealerships and service centers, has five locations, including Montgomery.

WELCH HORNSBY INVESTMENT CONSULTANT RECEIVES CERTIFIED PRIVATE WEALTH ADVISOR DESIGNATION MONTGOMERY – Welch Hornsby Investment Advisors consultant and shareholder Brian S. Mitchell has received the certified private wealth advisor (CPWA) designation.

The CPWA designation, delivered by Investment Management Consultants Association (IMCA), is the only advanced designation designed for financial advisers and consultants who work with high-net worth clients on the life cycle of wealth. It identifies those individuals who have met the experience requirements; and have successfully completed coursework in advanced wealth management strategies and applied concepts at The University of Chicago Booth School of Business. They must pass a comprehensive examination covering the following areas: advanced tax planning, asset protection, executive compensation plans, stock options, tax-efficient portfolios, business planning, retirement planning, charitable planning and estate planning. Mitchell has worked at Welch Hornsby since 1994 and is primarily responsible for advising high-net worth individuals and families.

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Welch Hornsby, which has its headquarters in Montgomery and offices in Birmingham and Charlotte, N.C., is a registered investment advisory firm.

The two other Resort Collection spas were Battle House Hotel in Mobile (No. 4) and Ross Bridge in Birmingham (No. 7).

THE JACKSON CLINIC OPENS FRIDAY NIGHT SPORTS CLINIC

RENAISSANCE MONTGOMERY SPA TOPS COMPANY RANKINGS MONTGOMERY – The Renaissance Montgomery Hotel & Spa at the Convention Center had the top-ranked Renaissance spa out of 89 hotels. Three of the top seven Renaissance Hotel spas are part of the Resort Collection along Alabama’s Robert Trent Jones Golf Trail. The Retirement Systems of Alabama, which has its headquarters in Montgomery, owns the Resort Collection and golf trail.

Charles Lee

MONTGOMERY – The Jackson Clinic is open Friday nights during football season to assist with sports-related injuries.

Jackson Hospital Sports Medicine, Alabama Orthopaedic Specialists and Rehab Associates will have specialists available to examine and treat athletes at its Friday night sports clinic.

“When an athlete is injured during a game, they don’t need to wait to get help,” Charles Lee, director of sports medicine for Jackson Hospital, said in a statement. “We need to get these players treated quickly so they can start healing and get back in the game faster. This is just one part of our commitment to keeping athletes in the River Region healthy.” The Friday night clinic will be open from 6 p.m.-11 p.m. during football season. It is located at 1801 Pine St. in The Jackson Clinic Family Medicine Center on Jackson Hospital’s campus. CONTINUED ON PAGE

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Montgomery Business Journal October 2014

MONTGOMERY – Two musicals, two Shakespeare productions and three classics highlight the Alabama Geoffrey Sherman Shakespeare Festival’s 2014-2015 season. The new season features the Disney blockbuster, The Little Mermaid, A Christmas Carol, Always…Patsy Cline, Alice in Wonderland, The Importance of Being Earnest, King Lear and As You Like It. “This is a season of transformation,” Geoffrey Sherman, producing artistic director of the Alabama Shakespeare Festival, said in a statement. “The characters in the plays all undergo an intense metamorphosis through the stories told on stage – some obvious like Scrooge’s redemption; Alice’s drinking from a bottle; Ariel’s transformation into a human girl; and others more nuanced as with King Lear’s fall from the noblest of monarchs to madman, or the madly entertaining machinations of the fellows who try to become “Earnest” to win their ladyloves. “Then you have characters in Always…Patsy Cline and As You Like It who are forever changed by a meaningful relationship that alters the course of their lives. It’s the perfect season for the Alabama Shakespeare Festival at this time because we ourselves are transforming – drawing in larger audiences (and more visitors to Montgomery) with a varied selection of world-class theatrical productions.”

Previews for A Christmas Carol begin Nov. 23. Here the dates for when previews begin: Always…Patsy Cline: Jan. 13 Alice in Wonderland: Jan. 24 The Importance of Being Earnest: Feb. 27 As You Like It: March 7 King Lear: April 10 The Little Mermaid: July 8 Memberships for the 2014-15 season are available. Subscribing members receive discounted tickets, flexible date choices, open seating options and waived fees. Members may purchase tickets to all the productions (including The Little Mermaid) before the general public. Family subscriptions are available. For information, visit www.asf.net or call the box office (334) 271-5353. The box office is open 12 p.m.-5 p.m. Monday-Saturday.

AUBURN MONTGOMERY’S MPA PROGRAM RECEIVES REACCREDITATION MONTGOMERY – The Auburn University at Montgomery Master of Public Administration (MPA) program Andrew Cortell has been reaccredited through 2021 by the Network of Schools of Public Policy, Affairs and Administration (NASPAA). NASPAA accreditation is based on a peer-review process using rigorous standards for graduate education in public affairs. Accredited programs are recognized for their demonstrated commitment to excellence in


public service education and their efforts to ensure students are prepared to be successful public service professionals. Auburn Montgomery’s MPA program was the first and is the longestrunning NASPAA-accredited program in Alabama. “NASPAA reaccreditation validates all that we have been working for to strengthen our MPA program,” Andrew Cortell, head of the AUM Department of Political Science and Public Administration, said in a statement. “Being in the state capital, Auburn Montgomery has a real competitive advantage in the state to draw from the knowledge of public administrators locally – whether as teachers or guest speakers, as students or as future professional colleagues.” Auburn Montgomery’s MPA program, is a 36-credit hour program that can be completed in two years. Courses are offered at night and weekends.

AUM CHANCELLOR NAMED TO A-KEEP BOARD MONTGOMERY – AUM Chancellor John G. Veres III has been named to the executive board of John G. Veres III directors and the steering committee for the Alabama-Korea Education and Economic Partnership (A-KEEP). In his role, Veres will help set shortterm and long-term strategies for Alabama-Korea relations and build partnerships between Alabama and Korea. “Dr. Veres is a pioneer in global initiatives and multicultural diversity education in Alabama beyond racial diversity,” Meesoon Han, president

and executive director of A-KEEP, said in a statement. “He brought the Confucius Institute to Montgomery and is committed to nurturing and growing Korean industries in Alabama and leading AUM students to understand the Korean/Asian culture to prepare them for the 21st century’s global society.” A-KEEP was founded in 2011 as a partnership between the Alabama Department of Education and Korea’s Office of Education in the GyeongSangBuk-Do Province. The non-profit organization facilitates cultural exchange between Alabama and Korea and promotes understanding of Korean culture and history. “It is an honor to serve A-KEEP and contribute to its efforts to strengthen Alabama’s ties with Korea and facilitate cultural understanding,” Veres said in a statement. CONTINUED ON PAGE

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METHVIN NAMED MARCH OF DIMES RIVER REGION CITIZEN OF THE YEAR FOR 2014 MONTGOMERY – Thomas J. Methvin has been named the 2014 River Region Citizen of the Year by March of Dimes.

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49 LOCAL NEW YORK LIFE OFFICE SEEKS EIGHT AGENTS MONTGOMERY – New York Life’s Montgomery general office is seeking to increase its field force with eight agent appointments this year. “The Montgomery general office has found success hiring individuals from various backgrounds, especially those seeking a career change,” Michael Hardin, managing partner of the Montgomery general office, said in a statement. “Our agents can customize their career path to match their personal goals whether that means enjoying a lifelong career as an agent or pursuing a career in management.” The firm has 60-plus New York Life agents in the South Central Alabama and Northwest Florida areas. Thomas J. Methvin

Methvin, is the managing shareholder of the law firm Beasley, Allen, Crow, Methvin, Portis & Miles. He was scheduled to be honored at a mid-October dinner, which is a fundraiser for March of Dimes. The annual event has raised more than $1.8 million for the organization, which funds medical research, community service programs as well as education and advocacy to prevent premature birth, birth defects and infant mortality.

For information, visit New York Life’s recruiting websites http://www.newyorklife.com/ careers/sales-careers and www.nylcareersforwomen.com. n

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MEMBERS ON THE MOVE ALFA INSURANCE PROMOTES TWO TO SENIOR VICE PRESIDENT MONTGOMERY – Alfa Insurance has promoted two to senior vice president. Bryan Hubbard is the new senior vice president of the claims Bryan Hubbard department and Tommy Coshatt has been promoted to senior vice president of underwriting. “Alfa has a long history of providing outstanding claims service, and Bryan is committed to continuing that legacy,” Alfa President and CEO Jimmy Parnell said in a statement. “Bryan has more than 25 years’ experience in the claims department, from personally working with customers in the field to providing leadership for a team of adjusters.” Hubbard began his career with Alfa in 1989 as an adjuster and was promoted to district claims manager in 1999. He most recently served as vice president of claims, a role he’s held since 2012. Hubbard received a degree in finance from Troy University and he holds a juris doctorate from Birmingham School of Law. He is replacing Jerry Johnson, who retired in August.

vision and intellect have postured our department for continued success,” Hubbard said in a statement. “Alfa has a history of strong leadership Tommy Coshatt in the Claims Department, and I am honored to be entrusted with the responsibility of leading the department into the future. Coshatt began his career with Alfa as an agent in Hoover in 2006 and was promoted to district manager in 2009. He served as vice president for south Alabama sales from December 2011 to March 2013. Prior to joining Alfa, Coshatt was manager of claims processing for BlueCross and BlueShield of Alabama for three years. He also served as director of human resources for the Birmingham chapter of American Red Cross for six years and was director of disaster services for one year. “Tommy’s experience in sales, marketing management, health insurance claims and his leadership ability will be valuable as we work to develop products, rates and underwriting guidelines that surpass customer expectations,” Parnell said in a statement. “With experience in both insurance sales and operations, Tommy will help Alfa bridge the gap between the home office and the field as we focus on building relationships, improving

MEMBER NEWS

our systems, growing business and increasing membership,” Coshatt is a graduate of Auburn University with a bachelor’s degree in business administration. He received a master’s degree in public administration from The University of Alabama-Birmingham.

ALABAMA NEWS NETWORK HIRES SENIOR SALES SPECIALIST MONTGOMERY – Townie Bulmer Townie Bulmer has joined the Alabama News Network as senior sales specialist. Bulmer will consult with advertisers on CBS8, MeTV, CW Montgomery and Heartland, creating marketing plans for on-air, online and mobile. She was an account executive for WSFA 12 News for the past 15 years and prior to that was in sales at the Montgomery Advertiser. CONTINUED ON PAGE

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“I am humbled by the opportunity to follow Jerry Johnson, who has been an exceptional leader and whose

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PARTNERS REALTY HIRES RESIDENTIAL AGENT MONTGOMERY – Partners Realty announced that Jeh Vinson has joined the firm as a residential sales agent. Partners Realty is a full-service real estate firm, which in addition to traditional brokerage services in residential, Jeh Vinson commercial and multifamily categories, also manages more than 2 million square feet of mixed-use, residential and commercial space in South Alabama.

DEXTERA HR NAMES HUMAN RESOURCES DIRECTOR MONTGOMERY – Dextera HR has named Amanda Smith as its director of human resources.

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Montgomery Business Journal October 2014

In her new role, Smith will be in charge of all human resource compliance and policies, recruiting and consulting with clients on human resourcerelated matters.

clients navigate the complexities of regulations, compliance and talent retention.� Smith was most recently an executive team leader of human resources and logistics at Target. She also served as culture captain in charge of various corporate training initiatives as well as coordinating community service volunteer opportunities. Prior to working at Target, Smith worked for Aramark Facility Services and CARQUEST Auto Parts. At Aramark, she was in charge of all human resource Functions while being the operation manager for her assigned account. Prior to Aramark, she spent a decade with CARQUEST Auto Parts where she was a human resource business partner. She directed 100-plus locations and two distribution centers. She handled all aspects of human resources including employee issues, benefits, training, recruitment and policy and procedure implementation. Smith has a master’s degree in human resources from Troy University and a bachelor’s degree in business management and human resource management from Auburn University at Montgomery.

Amanda Smith

Dextera HR is a human resources, payroll, compliance and benefit administration services provider.

“I am excited about the experience, knowledge and WSFA 12 energy that NEWS HIRES Amanda brings METEOROLOGIST to the Dextera HR MONTGOMERY – WSFA Amanda Curran team as director of 12 News has added human resources,� Amanda Curran to the Doppler Trey Sylvest, vice president 12 StormVision team. of operations at Dextera HR, said in a statement. “She will be instrumental in helping our


Curran, who is from New Hampshire, graduated from Lyndon State College in Vermont with a bachelor’s degree in atmospheric sciences and an associate’s degree in television studies. At Lyndon State, she worked for the Vermont Center for Community Journalism (VCCJ-News 7), a student-run news station broadcasting to cities and towns in northeastern Vermont. During her time at the VCCJ, she prepared forecasts for the station’s Emmy-Award winning 3 p.m., 5:30 p.m. and online newscasts. “Amanda Curran is a talented meteorologist with amazing potential,” WSFA 12 News Director Scott Duff said in a statement. “She has studied for years and is a great addition to our veteran Doppler 12 StormVision team.” Curran, who replaced Monica Tassoni, will be on the air at noon as well as the 4 p.m., 6 p.m. and 10 p.m. Saturday broadcasts.

“Her passion for learning and enthusiasm for her craft will make her a valuable team member …” WSFA 12 News General Manager Collin R. Gaston said in a statement. She is a Troy University graduate.

RENASANT BANK NAMES SENIOR VICE PRESIDENT MONTGOMERY – Paul Walker has joined Renasant Bank Paul Walker as senior vice president and commercial relationship manager in its downtown Montgomery office.In his new role, Walker will be responsible for building and managing a portfolio of commercial relationships in Montgomery and surrounding communities. He has 20-plus years of banking experience. Walker, an Auburn University graduate, served as senior vice

president for commercial banking in a large regional bank before joining Renasant. “We are extremely glad to have Paul join the Renasant team in Montgomery,” Renasant’s Montgomery City President Pete Knight said in a statement. “He is a proven banker with background and experience that complements Renasant’s commitment to expanding and developing our presence in the River Region.” Renasant Corp. is the parent of Renasant Bank and Renasant Insurance. Renasant is a 110-yearold financial institution with assets of about $5.8 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama and Georgia. CONTINUED ON PAGE

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FOUR PHYSICIANS JOIN THE JACKSON CLINIC MONTGOMERY – Four specialty physicians – Dr. LaToya Clark, Dr. A. Bahadir Ergin, Dr. Reza Seirafi and Dr. Joshua Waits – have joined The Jackson Clinic. Clark specializes in obstetrics and gynecology. She graduated from Xavier University of Louisiana and received her medical degree from the University of South Alabama College of Medicine in Mobile. Her office is at 1758 Park Place, Suite 406. The phone number is (334) 284-1500.

LaToya Clark

A. Bahadir Ergin

Reza Seirafi

Ergin specializes in endocrinology with specific interests in thyroid, adrenal and pituitary gland disorders. He attended medical school at Marmara University School of Medicine. His office is at 1801 Pine St., Suite 203 and the phone number is (334) 293-8877. Seirafi, a longtime general surgeon in Montgomery, has an office at 7201 Copperfield Drive. The phone number is (334) 244-5868. Waits, who specializes in urology, received his medical degree at the University of AlabamaBirmingham School of Medicine and also completed his internship and residency there. He has an office at the Goode Building on 1722 Pine St., Suite 502. The phone number is (334) 293-8588.

Joshua Waits

The Jackson Clinic, which has locations in Montgomery, Prattville and Pike Road, offers family medicine and urgent care, endocrinology, surgery, internal medicine, obstetrics and gynecology, urology and vascular surgery.

54

Montgomery Business Journal October 2014

AUM NAMES ASSISTANT PROVOST FOR INTERNATIONAL PROGRAM MONTGOMERY – Gokhan Alkanat has been named assistant provost for global initiatives at Auburn University at Montgomery.

FOUR STAR FREIGHTLINER ADDS ADMINSTRATIVE SERVICES MANAGER

He will oversee the Office of Global Initiatives and lead AUM’s international Gokhan Alkanat efforts, including recruiting international students, developing and monitoring student exchange programs, overseeing faculty-led, study-abroad programs, and advising current international students. Alkanat was first hired at AUM in 2005 as an English as a Second Language coordinator and was promoted to senior manager of the program in 2012. A native of Turkey, he holds a bachelor’s degree in English language teaching from Anadolu University and served as an elementary and high school English teacher before moving to the U.S. in 2003. He received a master’s degree in teaching English to speakers of other languages from Troy University and a doctorate in higher education administration from Auburn University. Nearly 300 international students from 43 countries are currently pursing degrees at AUM. The university has exchange programs in place with Japan, Korea and Mexico and additional studyabroad programs in Costa Rica, China, England, Ecuador, Sri Lanka and France.

MONTGOMERY – Joann Bartlett has joined Four Star Freightliner Inc. as administrative services manager.

Joann Bartlett

She will serve a dual role with the company as the human resources representative and as the executive assistant to Four Star Freightliner dealer principal Jerry Kocan. Bartlett, a Selma native, has a bachelor’s degree in management of human resources from Faulkner University and an associate’s degree in Accounting from Concordia College. “We are very pleased to have a found an outstanding fit to our management team,” Kocan said in a statement. “This is a very vital and important position in the company. Joann has extensive experience in human resources and in developing and nurturing people to grow inside an organization. We were very fortunate to find an individual like Joann that fit so seamlessly in our organization.” n


CHAMBER NEWS TANDEM EARLY EDUCATION CONSULTING, LLC

CITY OF MONTGOMERY ZOOALLIGATOR HABITAT

8982 Stoneridge Place, Montgomery, AL 36117 334-300-2900 • Linda Ware-Consultant/Partner Dawn Owens-Consultant/Partner Consulting Services/Education

2301 Coliseum Boulevard, Montgomery, AL 36110 334-240-4900 • www.montgomeryzoo.com Doug Goode-Director • Zoo

MONEY MIZER PAWNS & JEWELRY

THE MONTGOMERY AREA FOOD BANK

644 North Eastern Boulevard, Montgomery, AL 36117 334-513-7183 • www.moneymizer.com Brian Walker-Owner/Manager • Pawn Shop

521 Trade Center Street, Montgomery, AL 36108 334-263-3784 • www.montgomeryareafoodbank.org Parke Hinman-Executive Director • Associations/Non-Profit

EASY MONEY

MAKI FRESH

SUCCESS UNLIMITED ACADEMY

1310 Eastern Boulevard, Montgomery, AL 36117 334-523-7020 • www.goeasymoney.com Erica Stoudemire-District Manager • Financial Services

2938 Carter Hill Road, Montgomery, AL 36106 334-356-4504 • www.makifresh.com Jack Belew-Owner • Restaurants-Japanese

4500 Vaughn Road, Montgomery, AL 36106 334-213-0803 • www.suacademy.com Susan Alred-Principal • Private Schools

Facebook...Twitter...LinkedIn... how do you make social media work for your business?

RIBBON CUTTINGS & GROUND BREAKINGS

The AUM Outreach

SOCIAL

NETWORKING Join in the conversation on November 4 at AUM’s Taylor Center. Tickets are $99 per person.

Conference Connect with @AUMOutreach

Learn more and register at www.ce.aum.edu or call 334-244-3804

October 2014 Montgomery Business Journal

55


CHAMBER NEWS

NEW MEMBERS

ASSOCIATIONS/NON-PROFIT

CONVENIENCE STORE

MONTGOMERY CHAPTER, MILITARY OFFICERS ASSOCIATION OF AMERICA John H. Camp 334-272-8061

KNICKER KNACKER MARKET Ron Dean 334-261-4001

REV. DR. A. W. WATKINS SCHOLARSHIP FOUNDATION Yolanda Watkins 334-538-3961 CHILD CARE CENTERS

PROVIDENCE EARLY CHILDHOOD LEARNING ACADEMY Cathy Jones 334-271-2223 CHIROPRACTORS

MISSION SQUARE CHIROPRACTIC Alan Trent 334-649-6330

FINANCIAL SERVICES

AFC PRIMED-VAUGHN ROAD Felicia Fortune 334-323-2050

EASY MONEY Erika Cichanowicz 334-523-7020

INSURANCE-HEALTH

REPUBLIC FINANCE Yvette Dubon 334-274-0977

AFFINITY BENEFIT SOLUTIONS Brian Chambers 334-272-4409

HEALTH & NUTRITION

TSFL-TAKE SHAPE FOR LIFE Ron Pilbin 802-309-8031

COSMETICS/SKIN CARE

HEATING & AIR CONDITIONING SERVICES

MARY KAY BY LISA ANN Lisa Ann Williamson 334-271-6319 EMPLOYMENT AGENCIES

MALONE STAFFING SOLUTIONS Christy Hilyer 334-229-9111 EYEGLASSES & CONTACTS

AMERICA’S BEST CONTACTS & EYEGLASSES Hosea Hopson 334-819-1193

HUNGRY HOWIE’S #2305 Joel Easterwood 334-272-2999

PHOTOGRAPHERS

HUNGRY HOWIE’S #2308 Joel Easterwood 334-262-8988

PHOTOGRAPHY BY DIANNA PAULK DiAnna Paulk 334-324-9533

RESTAURANTS-SEAFOOD

WPI SET REALTY JIMMY HARRIS Jimmy Harris 334-730-4788

HOSPITALS/CLINICS

AFC PRIMEDATLANTA HIGHWAY Felicia Fortune 334-323-2260

SHARX’S FISH & CHICKEN Adam Mahmoud 334-396-9955 TAXI/CAB SERVICE

RESTAURANTS-AMERICAN

GOLDEN CORRAL Steven Jackowiak 334-532-0020

AFC PRIMEDTAYLOR CROSSING Felicia Fortune 334-323-1510

VICKI’S LUNCH VAN Vickie Lammon 334-409-9839 RESTAURANTS-PIZZA

REAL ESTATE SALES AND DEVELOPMENT

CAPITAL REFRIGERATION COMPANY Jeff Lambert 334-263-0201

RESTAURANTSLOCAL FAVORITES

CHECKER & DELUXE CAB COMPANY, INC. Will Wright 334-241-0034

RESTAURANTSICE CREAM/FROZEN YOGURT

THE ICE QUEEN Stephanie Herring 334-590-6172

tŚĂƚ͛Ɛ zŽƵƌ ŚĂůůĞŶŐĞ͍

'ĞŶĞƌĂƚŝŶŐ ƋƵĂůŝĨŝĞĚ ůĞĂĚƐ ĨŽƌ LJŽƵƌ ďƵƐŝŶĞƐƐ͍ ŽŶǀĞƌƚŝŶŐ ůĞĂĚƐ ŝŶƚŽ ĐƵƐƚŽŵĞƌƐ͍ dƵƌŶŝŶŐ ĐƵƐƚŽŵĞƌƐ ŝŶƚŽ ĐůŝĞŶƚƐ͍ /ŶĐƌĞĂƐŝŶŐ ƚŚĞ ǀĂůƵĞ ŽĨ ƚŚĞ ĐůŝĞŶƚ ƌĞůĂƚŝŽŶƐŚŝƉ͍

>Ğƚ͛Ɛ dĂůŬ ^ƚƌĂƚĞŐŝĞƐ Θ ^ŽůƵƚŝŽŶƐ͗ ϭ͘ϯϯϰ͘Ϯϲϯ͘ϯϰϭϵ ŝŶĨŽΛŐƌĂƉŚŝĐƐĂŶĚŵĂŝůŝŶŐ͘ĐŽŵ

ǭ

56

Montgomery Business Journal October 2014

'ƌĂƉŚŝĐƐ Θ DĂŝůŝŶŐ ^ĞƌǀŝĐĞ͕ /ŶĐ͘ ;'D^͕ /ŶĐ͘Ϳ ŽĨĨĞƌƐ ƐŽƵŶĚ ĂŶĚ ƉƌŽǀĞŶ ƐƚƌĂƚĞŐŝĞƐ Θ ƐŽůƵƚŝŽŶƐ ĨŽƌ Ăůů LJŽƵƌ ĚŝƌĞĐƚ ŵĂƌŬĞƚŝŶŐ ĐŚĂůůĞŶŐĞƐ͘ tĞ ĐĂŶ ŚĞůƉ LJŽƵ ĨŝŶĚ ŶĞǁ ĐƵƐƚŽŵĞƌƐ͕ ǁŝŶ ŵŽƌĞ ƐĂůĞƐ ĂŶĚ ŵŽƚŝǀĂƚĞ ƌĞƉĞĂƚ ďƵƐŝŶĞƐƐ ĂŶĚ ƌĞĨĞƌƌĂůƐ͘ dŚĞ ƌĞƐƵůƚ ŝƐ ŝŶĐƌĞĂƐĞĚ ĐƵƐƚŽŵĞƌ ƚƌĂŶƐĂĐƚŝŽŶĂů ǀĂůƵĞ ĂŶĚ ƌĞůĂƚŝŽŶƐŚŝƉ ŐƌŽǁƚŚ͘ 'D^͕ /ŶĐ͘ ƉƌŽǀŝĚĞƐ ƚƌĂĚŝƚŝŽŶĂů ƉƌŝŶƚ ĂŶĚ ĚŝƌĞĐƚ ŵĂŝů ƐƚƌĂƚĞŐŝĞƐ ĂůŽŶŐ ǁŝƚŚ ĞdžĐŝƚŝŶŐ ĚŝŐŝƚĂů ƐŽůƵƚŝŽŶƐ ŝŶĐůƵĚŝŶŐ ƉĞƌƐŽŶĂůŝnjĞĚ ƉƌŝŶƚ ĂŶĚ ĞŵĂŝů ĐĂŵƉĂŝŐŶƐ͘

dĞůů ƵƐ ĂďŽƵƚ LJŽƵƌ ĐŚĂůůĞŶŐĞƐ ƚŽĚĂLJ͊

'ƌĂƉŚŝĐƐ Θ DĂŝůŝŶŐ ^ĞƌǀŝĐĞ͕ /ŶĐ͘ ϮϬϮϲ >ŽĐƵƐƚ ^ƚƌĞĞƚ DŽŶƚŐŽŵĞƌLJ͕ > ϯϲϭϬϳ

ŝƌĞĐƚ DĂƌŬĞƚŝŶŐ ^ƚƌĂƚĞŐŝĞƐ Θ ^ŽůƵƚŝŽŶƐ ϭ͘ϴϬϬ͘ϴϬϭ͘ϯϮϰϳ ǁǁǁ͘ŐƌĂƉŚŝĐƐĂŶĚŵĂŝůŝŶŐ͘ĐŽŵ


Montgomery Index Tops state’s Metro Areas CAPITAL CITY EXECUTIVES EXUDE BUSINESS CONFIDENCE Montgomery being the most optimistic metro in the Alabama Business Confidence Index is now commonplace. It has been ranked No. 1 nearly 70 percent of the time in the past 13 quarters ahead of Mobile, Huntsville and Birmingham-Hoover. Montgomery, which was the most optimistic for the 2014 third-quarter index, has been No. 1 or No. 2 behind Mobile for six straight quarters. The last time Montgomery was not in the top two was the 2013 first quarter when the region was No. 3 behind Birmingham-Hoover and Mobile. Prior to that, Montgomery had a string of six straight No. 1 rankings among the state’s four largest metro areas. That equates to nine top rankings in the last 13 quarters. The region has had a positive index (50 or higher) for six consecutive quarters. Montgomery Mayor Todd Strange said the latest rankings and the region’s top billing nine times since the third quarter in 2011 tells a lot about the city. “Success breeds success,” he said. Montgomery’s 59.0 index for the 2014 third quarter was 3.5 points higher than the state’s overall index of 55.5, the same index as Mobile. Birmingham-Hoover ranked second – 2.1 points behind Montgomery at 56.9 and Huntsville was fourth at 53.4, trailing Montgomery by a whopping 5.6 points. The Montgomery participants in the quarterly survey were particularly optimistic about the state’s economy (62.8 index); industry sales (61.5); and capital expenditures (60.9). Industry profits (57.7) and industry hiring (57.0) were also strong components, where an index of 50-or-more means growth. The national economy had the lowest index of 53.8 in the survey conducted by the Center for Business and Economic Research in the University of Alabama’s Culverhouse College of Commerce. The overall 2014 third-quarter ABCI fell by just 0.1 point to 55.5, but the industry hiring component jumped 3.8 points – the most of any of the six components. The construction sector had the highest overall index at 63.8 with a gain of 4.4 points from the second

by David Zaslawsky

quarter, which included a hiring index of 65.4. Manufacturing was No. 2 with an index of 58.0.

manufacturing, wholesale trade, financial; transportation, information and utilities. INDUSTRY PROFITS This component also retreated from the second quarter, declining 1.6 points to 54.9, but twice as many panelists are upbeat about the third quarter (38 percent) vs. pessimistic (19 percent). About 44 percent expect no change in the quarter.

The following is a breakdown of the index’s six components: NATIONAL ECONOMY The index fell 1.1 points to 51.4. About 29 percent of the panelists expect the third quarter to be somewhat better than the second quarter and another 48 percent expect no change. Another 21 percent are expecting a decline. ALABAMA ECONOMY The index rose 1.0 point to 59.4 and is only of two components to increase in the third-quarter survey. That’s an 8.0-point difference compared with the national economy. The Alabama economy index is the second-highest behind industry sales. About 47 expect an uptick in the state’s economy vs. 11 percent forecasting a decline. About 42 percent expect no change from the second quarter. INDUSTRY SALES The index actually fell 1.9 points, but still has the highest ranking at 59.7. The panelists are overwhelmingly bullish. Nearly four times as many expect sales to increase in the quarter (49 percent) vs. those forecasting fewer sales (13 percent). About 38 percent expect no change from the previous quarter. All sectors expect sales to grow in the third quarter, but the most optimistic sectors are construction,

INDUSTRY HIRING With an index at 54.9, this component is at its highest since the 2006 third quarter. The index rose 3.8 points from the second quarter. About one-third of the panelists expect hiring to increase in the third quarter compared with 13 percent who are forecasting a decline. Nearly 55 percent expect hiring to remain the same as the previous quarter. All sectors expect an increase in hiring except retail trade. The most optimistic sectors are construction, manufacturing, transportation, information and utilities. CAPITAL EXPENDITURES This component also fell from the second quarter – 1.1 points to 52.6. About 56 percent anticipate no change from the previous quarter, but 25 percent expect a moderate increase in capital spending compared with 11 percent who expect a decline in third-quarter spending. The transportation, information, utilities, construction and manufacturing sectors are the most upbeat. n

ALABAMA BUSINESS CONFIDENCE INDEX (ABCI) THIRD QUARTER 2014 Index above 50 indicates expansion. Index below 50 indicates contraction. ALABAMA

MONTGOMERY

BIRMINGHAM

HUNTSVILLE

MOBILE

NATIONAL ECONOMY

51.4

53.8

53.8

50.0

49.3

ALABAMA ECONOMY

59.4

62.8

59.4

58.8

60.3

INDUSTRY SALES

59.7

61.5

61.8

56.8

61.0

INDUSTRY PROFITS

54.9

57.7

56.1

52.0

54.4

INDUSTRY HIRING

54.9

57

56.1

54.2

55.2

CAPITAL EXPENDITURES

52.6

60.9

54.2

48.4

52.9

ABCI

55.5

59.0

56.9

53.4

55.5

Source: Center for Business and Economic Research, The University of Alabama. ABCI™

October 2014 Montgomery Business Journal

57


CHAMBER NEWS

ECONOMIC INTEL UNEMPLOYMENT

Civilian Labor Force AUGUST P 2014

AREA Montgomery MA

JULY R 2014

Unemployment Rate

AUGUST R 2013

AUGUST P 2014

JULY R 2014

AUGUST R 2013

164,858

167,066

166,783

7.40%

7.80%

7.00%

Autauga County

25,164

25,511

25,463

6.40%

6.80%

6.00%

Prattville City

16,070

16,249

16,240

5.60%

5.90%

5.20%

34,615

35,001

35,102

6.40%

6.70%

6.30%

3,889

3,924

3,933

12.90%

12.90%

12.60%

101,189

102,629

102,285

7.80%

8.30%

7.30%

Elmore County Lowndes County Montgomery County Montgomery City

90,565

91,834

91,479

7.70%

8.20%

7.20%

Birmingham-Hoover MA

522,166

531,469

527,551

6.30%

6.60%

6.10%

Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

88,157

89,893

89,196

8.30%

8.80%

8.23%

211,411

213,737

212,248

6.20%

6.70%

5.80%

89,760

90,941

90,277

6.20%

6.90%

6.00%

179,851

182,220

183,667

8.10%

8.70%

7.90%

83,679

84,785

85,478

8.40%

9.10%

8.30%

2,130,738

2,157,978

2,142,500

7.10%

7.70%

6.80%

156,434,000

157,573,000

155,971,000

6.30%

6.50%

7.30%

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2013 benchmark.

AUGUST 2014

YEAR OVER YEAR % CHANGE

YTD 2014

YTD 2013

YEAR OVER YEAR % CHANGE

Montgomery County

$3,317,444

$3,152,144

5.24%

$27,279,886

$26,680,788

2.25%

City of Montgomery

$7,636,012

$7,337,378

4.07%

$64,795,415

$63,196,652

2.53% -2.75%

Pike Road

SALES TAX

AUGUST 2013

$280,927

$155,814

80.30%

$1,264,135

$1,299,916

Prattville

$1,633,762

$1,516,141

7.76%

$13,606,470

$13,454,492

1.13%

Millbrook

$488,088

$516,837

-5.56%

$3,956,931

$3,894,359

1.61%

Autauga County

$622,304

$652,300

-4.60%

$5,215,088

$5,222,091

-0.13%

Wetumpka

$475,555

$501,797

-5.23%

$3,792,213

$4,052,532

-6.42%

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 2014 thru current month.

MONTGOMERY REGIONAL AIRPORT STATS YEAR OVER YEAR % CHANGE

YTD 2014

YTD 2013

950

-4.2%

6,941

7,168

-3.2%

5,609

5,331

5.2%

42,491

39,539

7.5%

Enplanements

14,900

13,090

13.8%

107,701

109,255

-1.4%

Deplanements

16,032

13,544

18.4%

108,845

109,300

-0.4%

Total Passengers

30,932

26,634

16.1%

216,546

218,555

-0.9%

Air Carrier Operations Total Operations

AUGUST 2014

AUGUST 2013

910

Source: Montgomery Regional Airport (MGM) Dannelly Field

58

Montgomery Business Journal October 2014

YEAR OVER YEAR % CHANGE


HYUNDAI SALES VEHICLE

AUG 2014

AUG 2013

YTD 2014

YTD 2013

Accent

4,724

5,117

42,743

40,113

Sonata

21,092

16,917

150,016

138,830

Elantra

22,845

24,700

157,555

174,902

SantaFe

9,302

8,102

69,962

56,105

511

898

5,214

7,618

Tucson

5,266

3,886

33,369

30,042

Veloster

2,981

3,093

20,188

21,005

0

6

1

175

3,029

2,947

20,065

22,191

253

435

2,335

2,135

70,003

66,101

501,448

493,116

Azera

Veracruz Genesis Equus Total Source:HyundaiMotorAmerica

AIR FARES Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. DESTINATION

MONTGOMERY

BIRMINGHAM

ATLANTA

Baltimore (BWI)

$307

$327

$299

Boston (BOS)

$399

$435

$304

Charlotte, NC (CLT)

$255

$259

$276

Chicago (ORD)

$370

$362

$224

Cincinnati (CVG)

$253

$383

$273

Dallas/Ft Worth (DFW)

$393

$335

$149

Denver (DEN)

$399

$318

$204

Detroit (DTW)

$385

$349

$299

Houston (HOU)

$294

$314

$163

Indianapolis (IND)

$357

$382

$213

Las Vegas (LAS)

$417

$495

$365

Los Angeles (LAX)

$356

$444

$318

Memphis (MEM)

$366

$366

$308

Miami (MIA)

$330

$329

$230

Nashville (BNA)

$389

$364

$314

New Orleans (MSY)

$415

$335

$294

New York (JFK)

$363

$349

$300

Orlando (MCO)

$300

$321

$213

Philadelphia (PHL)

$310

$243

$194

Pittsburgh (PIT)

$342

$335

$228

St Louis (STL)

$376

$366

$287

Seattle (SEA)

$354

$383

$424

Seoul (SEL)

$1,573

$1,225

$1,470

Tampa (TPA)

$298

$300

$213

Washington, DC (DCA)

$325

$292

$291

Date Of Travel: Oct. 14-19, 2014. Date Of Pricing: Sept. 7, 2014. Source: Travelocity.com

October 2014 Montgomery Business Journal

59


QUARTERLY REPORTS NAME

QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

Haverty Furniture

$175.1M

$4.8M

$0.21

N/A

$171.1M

$4.8M

Comparable sales rose 3.2%

Papa John’s

$380.9M

$16.7M

$0.41

$0.41

$349.2M

$17.2M

International revenue jumped 21% ($4.4M)

$34.6B

$1.3B

$1.06

$1.10

$31.3B

$1.1B

$261.2M

$75.1M

$0.25

$0.23

$278.3M

$62.9M

System-wide sales grew 5.4%

Advance Auto Parts

$2.3B

$139.5M

$2.08

$2.01

$1.6B

$116.9M

Profit rose 19%

Kohl’s

$4.2B

$232M

$1.13

$1.07

$4.3B

$231M

Comparable sales fell 1.3%

$120.1B

$4.1B

$1.21

$1.21

$116.8B

$4.1B

Revenue at neighborhood markets increased 5.6%

TJX Companies

$6.9B

$517.6M

$0.73

$0.73

$6.4B

$479.6M

Home Depot

$23.8B

$2B

$1.52

$1.44

$22.5B

$1.8B

Dick’s Sporting Goods

$1,7B

$69.5M

$0.57

$0.65

$1.5B

$84.2M

Quarter had $20.4M restructuring charge

Brinker International (Chili’s)

$758.7M

$28.8M

$0.43

N/A

$730.1M

$46.4M

Revenue grew 4%

Red Robin Gourmeet Burgers

$256.1M

$9.5M

$0.68

$0.90

$238.3M

$11.1M

Revenue rose 7.5%

Dillard’s

$1.5B

$34.5M

$0.80

$0.86

$1.5B

$36.5M

Revenue declined 2.7%

J.C. Penney

$2.8B

(-$172M)

(-$0.56)

(-$0.91)

$2.7B

(-$586M)

Same-store sales up 6%

Target

$17.4B

$234M

$0.37

$0.79

$17.1B

$611M

Pre-tax data breach expense of $111M

Lowe’s

$16.6B

$1B

$1.04

$1.02

$15.8B

$94M

Revenue increased 5.7%

PetSmart

$1.7B

$98.1M

$0.98

$0.94

$1.7B

$93.4M

Considers selling the company

L Brands

$2.7B

$188.4M

$0.63

$0.62

$2.5B

$178.9M

Sales increased 6%

$8B

(-$573M)

(-$-5.39)

(-$2.63)

$8.9B

(-$194M)

Nine straight quarters of losses

$1.7B

$24.6M

$0.22

$0.18

$1.4B

$10.5M

Profit more than doubled

The Gap (Banana

$4B

$332M

$0.75

$0.69

$3.9B

$303M

Plans to open 40 stores in India

Dollar Tree

$2B

$121.5M

$0.59

$0.65

$1.9B

$124.7M

Revenue up 9.5%

Hibbett Sports

$193.9M

$8.4M

$0.32

N/A

$186.2M

$10.5M

Profit dropped 21%

American Eagle Outfitters

$710.6M

$5.8M

$0.03

$0.00

$727.3M

$19.6M

Profit fell 70%

Aeropostale

$396.2M

(-$63.8M)

(-$0.81)

(-$0.48)

$454M

(-$33.7M)

Kirkland’s

$103.5M

(-$1.1M)

(-$0.06)

(-$0.04)

$97.1M

(-$600,000)

Ann Inc. (Ann Taylor)

$648.7M

$32.7M

$0.70

$0.70

$638.2M

$35.6M

Cato

CVS Caremark Burger King Worldwide

Wal-Mart

(Victoria’s Secret, Bath & Body Works)

Sears Holdings (Kmart)

GameStop Republic, Old Navy)

Pharmacy benefits management revenue up 16%

Same-store sales up 3% Profit increased 14%

Seven straight quarters of losses Sales rose 6.6% Comparable store sales fell 2.3%

$246.5M

$15.7M

$0.56

$0.52

$231.8M

$14.8M

Sales grew 6.3%

Ross Stores

$2.7B

$239.6M

$1.14

$1.09

$2.5B

$213.1M

Profit up 12%

Foot Locker

$1.6B

$92M

$0.63

$0.05

$1.5B

$66M

DSW

$587M

$34.3M

$0.38

$0.30

$562.1M

$33.7M

Operating expenses fell $10.9M to $118.6M

Best Buy

$8.9B

$146M

$0.42

$0.31

$9.3B

$266M

Profit declined 45%

$1B

$50.7M

$0.53

$0.53

$982M

$48.9M

Comparable store sales increased 5.7%

$671.1M

$30.1M

$0.20

$0.26

$649.5M

$43.6M

Operating income dropped 33.2%

$1.2B

$19.9M

$0.36

$0.35

$1.2B

$18.1M

Comparable store sales rose 1.7%

Williams-Sonoma Chico’s FAS Big Lots 60

NOTABLE

Montgomery Business Journal October 2014

Profit surged 39%


MONTGOMERY METRO MARKET HOME SALES* MONTH/MONTH % CHANGE

STATEWIDE JULY 2014*

JUNE 2014

Median Price

$146,450

$141,000

3.87%

$141,400

3.57%

$139,499

Average Price

$161,240

$158,741

1.57%

$153,006

5.38%

$159,503

2,925

2,953

-0.95%

3,004

-2.63%

34,060

Months of Supply

7.9

8

-1.25%

8.8

-10.23%

7.8

Total # Sales

368

370

-0.54%

342

7.60%

4,373

Days on Market

135

138

-2.17%

114

18.42%

152

Units Listed

JULY 2013

YEAR/YEAR % CHANGE

JULY 2014

Source: Alabama Center for Real Estate (ACRE), The University of Alabama *Current Montgomery homes sales numbers were not available at the time of publication. For updates go to the ACRE website: acre.cba.ua.edu.

BUILDING STARTS

Building Permits AUGUST 2014

JULY 2014

Building Valuations AUGUST 2013

AUGUST 2014

JULY 2014

AUGUST 2013

New Construction

41

45

29

$3,917,797

$8,971,000

$4,040,400

Additions & AlterationsÂ

90

113

70

$4,471,589

$6,799,156

$3,084,000

Others Total

19

24

43

$236,565

$129,100

$338,000

150

182

142

$8,625,951

$15,899,256

$24,873,200

Source:City of Montgomery Building Department

October 2014 Montgomery Business Journal

61


62

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